Mt. Polley mine enters commercial production

Though not yet completely commissioned, the Mt. Polley mine near Williams Lake, B.C., has officially opened.

Imperial Metals (IPM-T) is operating the project, in which it owns a 55% interest. The remainder is held by Japanese metal-trading giant Sumitomo.

Reserves total 82 million tonnes grading 0.3% copper and 0.42 gram gold per tonne. The resource is divided among three pits: Central, Bell and Springer, which, taken together, have a stripping ratio of 1.16-to-1.

The project, which employs 170 people, has a conventional flotation mill with a daily capacity of 18,000 tonnes.

Development was completed on time and within the $123.5-million budget. Cash production costs are projected to be US$170 per oz. gold, and, over the first four years of the mine’s life, annual production will likely average 100,000 oz. gold and 11,000 tonnes copper.

Gold grades decrease and copper grades increase with depth, and the current mine plan calls for a mainly-gold operation during the first four years.

Copper will take over as the workhorse commodity in the remaining years of the mine’s life.

Exploration in the area started in 1964, and the company announced its intention to mine Mt. Polley in 1992, during a depressed copper market.

After several false starts, Imperial brought in Sumitomo as a 45% partner in 1995, and construction started in the following year.

Imperial Metals posted earnings of $1.9 million (or 3 cents per share) in the first half of 1997, most of which came from gains accounted after operating income. Actual operating revenue was $830,000.

The mine is expected to provide substantial operating revenue beginning in the third quarter.