Princeton gets nod for Huckleberry

Princeton Mining (TSE) has received federal approval to proceed with development of the Huckleberry open-pit copper mine near Houston, B.C.

Princeton is developing the mine in concert with a consortium of Japanese smelters, which will acquire a 40% interest by providing a US$60-million loan and committing to a long-term concentrate purchase agreement. Including working capital, the cost of the project is projected at US$100 million.

Part of the mine’s development includes the creation of an alternate fish habitat, as operations are expected to diminish the flow of water into two streams containing rainbow trout. Princeton expects the plan to be approved soon.

The mine is on schedule for a mid-1997 production start.

Minable reserves stand at 90.9 million tonnes grading 0.512% copper and 0.014% molybdenum, as well as 0.062 gram gold and 2.81 grams silver per tonne.

Output from the proposed 15,500-tonne-per-day mine is forecast at 65 million lb. copper and 1 million lb. moly per year during the first five years. The cash cost is estimated at US65 cents per lb.

The road to production may become bumpy, however, as some members of the Cheslatta Carrier Nation (a local native band), together with the Sierra Legal Defense, have filed a petition against the province claiming lack of due process in the permitting process. Princeton received provincial approval for the mine in January, following completion of an environmental assessment.