(TSXV: TVC) Three Valley Copper Corp. (“
Three Valley
Copper” or the “
Company”) is pleased to
provide a corporate and operating update on its 91.1% owned Minera
Tres Valles (“
MTV”) property near Salamanca,
Region de Coquimbo, Chile.
Papomono Masivo Block Caving Underground
Construction and Resulting Preliminary Guidance
Construction began on this project in December
2020. Papomono Masivo (“PPM”) has proven and
probable reserves of approximately 102 million pounds of contained
copper with an average grade of 1.51%4. The development of PPM
currently is at 71% for horizontal works and 85% for vertical works
and the Company’s continued expectation is that PPM will be
completed end of 2021/early 2022 with the planned ramp-up of
production during 2022.
“We continue to improve the development rate of
this project during the month of August (the advance rate being the
best month on record), and we expect the fourth quarter’s projected
advance rate to be similar,” said Joe Phillips, COO of the Company.
“We have completed the critical ventilation shaft and the ore pass
which will further accelerate the speed of our continued advance.
We remain on track to commence the caving/mining process in
December 2021 or early 2022.”
The resulting progress of the PPM project has
provided the Company with the opportunity to provide preliminary
guidance for 2022 and 2023. Copper production is expected to
significantly increase in 2022 compared to 2021’s production range
of 4,500 to 5,500 tonnes as the initial construction of the PPM
project concludes and mining of PPM begins during the 2022 ramp-up
year. Thereafter, it is expected that annual production between
13,000 and 16,000 tonnes of copper cathode will be attained in 2023
approaching the operation’s full production capacity. The Company’s
production profile includes mineralized material from both Don
Gabriel and PPM during 2022 and predominantly from PPM during 2023
together with material from ENAMI and third-party miners expected
during both years. Looking forward to 2022 and 2023, Cash Costs are
expected to fall significantly driven by higher grades from PPM and
throughput coupled with decreased capital development and other
sustaining capital programs. As the Company exits 2021 and
completes its budgeting process, updates to this preliminary
guidance may be required.
The preliminary outlook1 for 2022 and 2023 at
MTV is as follows:
Operating
information |
Year Ended |
Year Ended |
|
Copper (MTV Operations) |
Dec. 31,
2022 |
Dec. 31,
2023 |
|
|
|
|
|
Cu Production (tonnes) |
8,000 –
10,000 |
13,000 –
16,000 |
|
Cu Production (pounds) |
17.6M –
22.0M |
28.7M –
35.3M |
|
Cash Cost per Pound Produced2 |
$2.75 -
$3.25 |
$1.80 -
$2.30 |
|
Capital Expenditures3 ($ millions) |
$5 -
$10 |
$2 -
$5 |
|
- Preliminary
guidance is based on certain estimates and assumptions, including
but not limited to, mineral reserve estimates, grade and continuity
of interpreted geological formations, metallurgical performance and
foreign exchange rates. Please refer to the amended and restated
technical report prepared by Wood Independent Mining Consultants,
Inc., in respect of the Minera Tres Valles Copper Project (the
“Technical Report”) dated May 27, 2021 and to the Company’s SEDAR
filings for complete risk factors related to the Company and
MTV.
- Cash Cost is a
non-IFRS measure – Cash costs of production include all costs
absorbed into inventory less non-cash items such as depreciation.
Cash costs per pound produced are calculated by dividing the
aggregate of the applicable costs by copper pounds produced.
- Planned capital
expenditures (“CAPEX”) for 2022 and 2023 are focused primarily on
open pit expansion, plant CAPEX and sustaining CAPEX of PPM for the
inclined block-caving mining project. It is expected that by early
2022, the underground operation at PPM will begin production and
the resulting production growth is expected to lower per unit
operating costs in 2022 and 2023 as the results of this CAPEX are
realized.
- As per the
Technical Report.
Copper Porphyry Target Identified
Further to the press release on September 15,
2021 announcing the commencement of the near-mine exploration
drilling program at MTV, the Company announces that it has
identified a new copper porphyry target in its license area.
The target is within an area previously mapped
as a late Cretaceous granitoid intrusive. The identified target
shows likely hydrothermal alteration characteristics of the phyllic
zone of porphyry copper deposits, determined by processing ASTER
satellite data sourced from the United States Geological Survey.
The characteristic minerals produced by phyllic hydrothermal
alterations can be detected using ASTER data in areas without thick
vegetation and/or soil cover like this part of Chile because of
their spectral absorption features. When exposed at the Earth’s
surface, they preferentially absorb certain frequencies of sunlight
in the short-wave infrared range, and ASTER has the spectral bands
to enable the detection of their resulting spectral signature.
The identified central core has dimensions of
approximately 2km by 1km, which outlines the surface footprint of
the target. It is surrounded by a darker shade topographically
elevated rim. There is also a nearby copper deposit described as a
skarn, and it is notable that copper skarns are often nearby
porphyry deposits, providing another positive indicator for this
target.
“John Mortimer, our exploration consultant, has
identified an exciting target for the Company,” stated Michael
Staresinic, President and CEO of the Company. “Copper porphyry
deposits are associated with some of the largest long life copper
mines in the world, with Chile hosting the greatest concentration
of these deposits. This target is an example of the broader
potential of this property as we continue to identify additional
targets on our 46,000 hectare land package. This target forms part
of our new exploration section in our corporate presentation
available on our website at https://www.threevalleycopper.com.”
Following the completion of the recently
announced exploration campaign focusing on 6,000 to 8,000 meters of
proposed drillings near MTV’s existing mines, additional efforts
will be directed towards this copper porphyry target.
Figure 1
Copper Porphyry Target
Identified
Arbitration Update
In August 2021, the Company increased its
ownership stake in MTV from 90.3% to 91.1% after a further
opportunity to subscribe for newly issued shares of MTV. Consistent
with its past actions, the minority shareholder of MTV did not
participate in the subscription resulting in the dilution of their
MTV ownership from 9.7% to 8.9%. Both the Company, through its 100%
ownership in SRH Chile SpA, and the minority shareholder have
selected their respective arbitrators, that together, with a to be
agreed upon neutral third arbitrator, will form the arbitral
tribunal that will adjudicate the shareholders’ dispute.
The Company remains confident in its position
that the allegations made by the minority shareholder are baseless
and unsubstantiated and reflect the minority shareholder’s attempt
to receive preferential treatment contrary to the terms of the
shareholders agreement (“SHA”). The Company and
its legal counsel are of the strong and steadfast position that the
claim is without merit and the Company has acted appropriately and
in accordance with Chilean law, the Judicial Reorganization
Agreement, the by-laws of MTV and the SHA in all respects. At this
time and based on the timelines agreed to in the SHA, the Company
estimates the arbitration process could take up to 10 to 12 months
to complete.
Qualified Person
Dr. John Mortimer, a consultant to Three Valley
Copper, a qualified person under National Instrument 43–101 –
Standards of Disclosure for Mineral Projects has reviewed the
technical contents of this news release and has approved the
disclosure of the technical information contained herein.
About Three Valley Copper
Three Valley Copper, headquartered in Toronto,
Ontario, Canada is focused on growing copper production from, and
further exploration of, its primary asset, Minera Tres Valles.
Located in Salamanca, Chile, MTV is 91.1% owned by the Company and
MTV's main assets are the Minera Tres Valles mining complex and its
46,000 hectares of exploratory lands. For more information about
the Company, please visit www.threevalleycopper.com.
Cautionary Statement Regarding Forward-Looking
Information
Certain statements in this news release, contain
forward-looking information (collectively referred to herein as the
"Forward-Looking Statements") within the meaning
of applicable Canadian securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify Forward-Looking Statements. In
particular, but without limiting the foregoing, this news release
contains Forward-Looking Statements pertaining to: the significance
of any particular exploration program or result and the Company’s
expectations for current and future exploration plans including,
but not limited to, planned areas of additional exploration; the
estimation of mineral reserves; development progress of the
Company’s mineral projects; statements with respect to the timing
and production of copper at the Don Gabriel and PPM sites; planned
capital and operating costs; advancement of ongoing projects,
including the progress and timing of completion of the inclined
block-caving mining project, and the estimated capital costs
required for completion; future operating costs given the
completion of the block -caving mining project; the expectation
that the Company will continue to receive mineralized materials
from ENAMI and third-party miners; and the status and timing of the
arbitration process with the minority shareholder.
Although TVC believes that the Forward-Looking
Statements are reasonable, they are not guarantees of future
results, performance or achievements. A number of factors or
assumptions have been used to develop the Forward-Looking
Statements, including: there being no additional significant
disruptions affecting the development and operation of MTV; the
availability of certain consumables (including water) and services
and the prices for power and other key supplies; expected labour
and materials costs and available supply; expected fixed operating
costs; permitting and arrangements with stakeholders; certain tax
rates, including the allocation of certain tax attributes, being
applicable to MTV; the availability of financing for the Company's
and MTV’s planned operations and development activities;
assumptions made in mineral resource and mineral reserve estimates
and the financial analysis based on these estimates, including (as
applicable), but not limited to, geological interpretation, grades,
commodity price assumptions, metallurgical performance, extraction
and mining recovery rates, hydrological and hydrogeological
assumptions, capital and operating cost estimates, and general
marketing, political, business and economic conditions, the
continued availability of quality management, critical accounting
estimates, all terms of the restructuring agreement and facility
agreement to which MTV and the Company are parties will be
satisfied in the future including no events of default, existing
water supply will continue, supplemental water availability will
continue, the geopolitical risk of Chile will remain stable,
including risks related to labour disputes, the construction and
expansion of mining operations including the Papomono Masivo
incline block caving underground mining project, as well as the
timing thereof and production therefrom; favorable outcomes of
litigation and /or arbitration initiated by the minority
shareholder of the Company’s operating subsidiary, MTV; the timing
of production and results for the recently restarted Don Gabriel
mine; and expected timelines for drawdown and repayment of
indebtedness of MTV.
Actual results, performance or achievements
could vary materially from those expressed or implied by the
Forward-Looking Statements should assumptions underlying the
Forward-Looking Statements prove incorrect or should one or more
risks or other factors materialize, including: (i) possible
variations in grade or recovery rates; (ii) copper price
fluctuations and uncertainties; (iii) delays in obtaining
governmental approvals or financing; (iv) risks associated with the
mining industry in general (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the
uncertainty of estimates and projections relating to mineral
reserves, production, costs and expenses; and labour, health,
safety and environmental risks) and risks associated with the other
portfolio companies' industries in general; (v) performance of the
counterparty to the ENAMI Contract; (vi) risks associated with
investments in emerging markets; (vii) general economic, market and
business conditions; (viii) market volatility that would affect the
ability to enter or exit investments; (ix) failure to secure
additional financing in the future on acceptable terms to the
Company, if at all; (x) commodity price and foreign exchange
fluctuations and uncertainties; (xi) risks associated with
catastrophic events, manmade disasters, terrorist attacks, wars and
other conflicts, or an outbreak of a public health pandemic or
other public health crises, including COVID-19; (xii) those risks
disclosed under the heading "Risk Management" in TVC’s Management’s
Discussion and Analysis for the period ended December 31, 2020; and
(xiii) those risks disclosed under the heading "Risk Factors" or
incorporated by reference into TVC’s Annual Information Form dated
March 3, 2021. The Forward-Looking Statements speak only as of the
date hereof, unless otherwise specifically noted, and SRHI does not
assume any obligation to publicly update any Forward-Looking
Statements, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable
Canadian securities laws.
Cautionary Note to United States
Investors Concerning Estimates of measured, indicated and inferred
mineral resources
This news release may use the terms "measured",
"indicated" and "inferred" mineral resources. Historically, while
such terms were recognized and required by Canadian regulations,
they were not recognized by the United States Securities and
Exchange Commission (the “SEC”). The SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities and Exchange Act of
1934, as amended (the “Exchange Act”). These
amendments became effective February 25, 2019 (the “SEC
Modernization Rules”) with compliance required for the
first fiscal year beginning on or after January 1, 2021. The SEC
Modernization Rules replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7, which will be rescinded from and after the
required compliance date of the SEC Modernization Rules. As a
result of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “measured”, “indicated” and “inferred”
mineral resources. In addition, the SEC has amended its definitions
of “proven mineral reserves” and “probable mineral reserves” to be
substantially similar to the corresponding Canadian Institute of
Mining, Metallurgy and Petroleum definitions, as required by NI
43-101. Investors are cautioned that "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to
assume that all or any part of measured or indicated mineral
resources will ever be converted into mineral reserves. United
States investors are also cautioned not to assume that all or any
part of an inferred mineral resource exists or is economically or
legally mineable.
For further information:
Michael StaresinicChief Executive OfficerT:
(416) 943-7107E: mstaresinic@threevalleycopper.com
Renmark Financial Communications Inc.Joshua
Lavers: jlavers@renmarkfinancial.comT: (416) 644-2020 or (212)
812-7680www.renmarkfinancial.com
Source: Three Valley Copper.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Three Valley Copper (TSXV:TVC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Three Valley Copper (TSXV:TVC)
Historical Stock Chart
From Jul 2023 to Jul 2024