Leadville Mining & Milling (NASDAQ) will sell to Asarco (NYSE) sulphide ores produced from its Hopemore mine in Colorado.
The polymetallic ores will be shipped to Asarco’s nearby Black Cloud mill at the rate of 100 to 150 tons per day.
Ore deliveries were expected to have begun on July 1. At current metals prices, the pretax income is estimated at US$51-68 per ton of ore.
The company will process oxide ores from its own 180-ton-per-day mill at the Hopemore mine.
The deal provides Leadville with a reliable source of income and eliminates the need for a separate smelting contract.
Leadville is continuing rehabilitation work at its second exit, the Hunter shaft. Retimbering is still necessary to reopen a caved area. However, the company is on schedule to begin production and resume exploration by September.
When full production is realized, the operation should be able to mine about 300 tons per day.
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