Lisbon Valley produces copper

Vancouver — Denver, Colo.-based Constellation Copper (CCU-T, CCUDF-O) has harvested the first cathode copper at its wholly owned Lisbon Valley mine near Moab, in Utah’s San Juan Cty.

The solvent extraction-electrowinning (SX-EW) operation was commissioned earlier this year, and so far the company is reporting a smooth startup, with all mining and processing circuits performing near or above 90% of design capacity. Solution-flow volumes are below design capacity, but are expected to build up as planned in the next few months as the mine ramps up to full production.

Constellation expects that Lisbon Valley will reach full production capacity in the third quarter of this year. The mine will then be producing 1.12 million lbs. of cathode copper on a 7-day basis. Annual production is estimated at 54 million lbs. cathode copper, which would be sold under an offtake agreement to a metals company based on COMEX prices plus a cathode-producer premium of about US7-US8 per lb.

At last report, Lisbon Valley hosted reserves and measured and indicated resources totalling 48 million tonnes averaging 0.467% copper. Several satellite deposits and numerous prospects have been identified on the surrounding land package, which includes prospective claims in neighbouring Colorado.

Constellation Copper is also exploring and developing two copper projects in Mexico. The most advanced is the Terrazas zinc-copper project in Chihuahua state. A feasibility study is under way for a proposed open-pit SX-EW operation based on a measured and indicated resource of 58.3 million tonnes of 0.353% copper and 0.57% zinc.

The Terrazas project is serviced by power and has other necessary infrastructure to support a mine and processing plant. The proposed operation is expected to produce about 40 million lbs. copper cathode and about 150 million lbs. zinc ingots annually for at least 13-15 years.

Constellation also holds rights to the San Javier del Cobre project, situated about 100 km east of Hermosillo, in Sonora state. Previous operators, including Penoles, drilled about 30 holes on the property and encountered significant intercepts of copper oxide near surface. One of the best holes intersected 156 metres grading 0.39% copper, starting at a depth of 24 metres.