Mercator expands Mineral Park mine

Vancouver – Mercator Minerals (ML-T) is moving into the next phase of operations at its Mineral Park copper-molybdenum mine in Arizona. The commissioning of phase 1.5 will soon up daily throughput to 29,000 tonnes from 22,700 tonnes as the key component of the mine’s full phase 2 expansion, a new semi-autogenous grinding (SAG) mill, starts turning.

Mercator expects the new SAG mill to be running at capacity by March. Other equipment upgrades being commissioned as part of phase 1.5 include the reclaim conveyors, thickener, most of the water system and the first raise of the tailings impoundment.

Once phase 1.5 is commissioned the company will turns its attention to phase 2. The already paid-for ball mills should arrive in May while Mercator expects to complete the necessary concrete, mechanical and electrical work by the end of the year. Once phase 2 is complete in late 2010, daily mill throughput will be 45,400 tonnes.

Mercator has already arranged a buyer for part of the output, having secured a new off-take agreement with Trafigura for 45,400 tonnes of concentrate, to be delivered this year.

Mineral Park is an open pit copper-molybdenum mine located about 120 km southeast of Las Vegas. The mine has a long history of production, first opening in 1963 under the Duval Corporation. It changed hands several times before Mercator bought it in 2003. The 25-year life-of-mine production is estimated at 1.1 billion lbs. of copper, 257.5 million lbs. of molybdenum and 11.7 million oz. of silver, from a deposit with proven and probable reserves of 520 million tonnes grading 0.13% copper, 0.039% molybdenum, and 2.7 grams silver per tonne.

Mercator merged with Stingray Copper, which owned the El Pilar copper project in Mexico, in late 2009. Following on Stingray’s work, Mercator recently secured the environmental approval necessary to develop an open-pit copper mine at the site, with a mill processing 47,000 tonnes of ore daily to produce 77 million lbs. copper cathode each year. An on-site acid generation plant would produce the sulphuric acid needed to leach copper from crushed ore piles. Proven and probable reserves at El Pilar stand at 229.7 million tonnes grading 0.31% copper. Work continues on large-scale metallurgical testing.

Mercator’s share price increased 6¢ on the day to stand at $2.50. The stock had a 52-week trading range between $3.45 and 34¢ and has 193.7 million shares outstanding.