2007
REVIEW AND FINANCIAL RESULTS
Vancouver, B.C., February 26 2008 –
Copper Mountain Mining Corporation (“CMMC” or “Copper Mountain”
or the “Company)
would like to announce its key achievements of the Company’s first full
year of activities with its financial statements for the year ended December
31, 2007.� Copper Mountain was founded in 2006 with the
vision of building a mid-tier copper producer within 4 years.�
HIGHLIGHTS OF 2007:
- On December 22, 2006 the Company acquired
all of the issued and outstanding common shares of Similco Mines Ltd., a
former producer of just under 2 Billion pounds of Copper.�
- Copper Mountain was successful in
retrieving over 400,000
meters of historical drilling, and converted this
into a digital geological database.�
- A diamond drill program was immediately
initiated in January 2007 and with successful results was expanded to 44,000 meters -
one of the largest exploration drill programs in British Columbia.
- Drilling confirmed continuity of
mineralization between existing pits and an interim independent NI43-101
compliant resource estimate was completed in September, 2007, based on
drilling up to July 20th (see news release Sept 6, 2007). �
- A Summary of this interim resource is:
� Measured and Indicated resources, based on a
0.25% Cu cut-off grade, are 163 million tons grading 0.43% Cu containing 1.4
billion pounds of copper.*
� Inferred resources at 0.25% Cu cut-off grade
are 113 million tons grading 0.37% Cu containing 0.8 billion pounds of copper.*
� Gold and silver grades were not reported on,
however, historical production records indicate that approximately 12% of the
concentrate value was from silver and gold credits and data from the current
exploration program suggests that future production will have similar credits. �
�
A Preliminary
Assessment Report (“PA Report”) completed by Merit Consultants
International Inc
confirmed the Super-Pit concept and contained production parameters, operating
costs, capital costs and financial projections.
�
The PA Report has
attractive economics with anticipated production of more than 100 million lbs
Cu per year with production beginning in late 2010
�
The PA Report base case
pretax net present value (NPV) with a capital cost of $366 million, a long term
copper price of US$1.80/lb, and a 5% discount rate over the 15 year mine life
is Cdn$406 million.� The pre tax internal
rate of return (IRR) is 25.56% for the project with a capital payback of 2.69
years and the project exceeded the Company’s investment hurdle rate. �
�
In November Hatch
Engineering was contracted to complete a detailed Feasibility Study as
recommended by the PA Report which is expected to be completed in early 2008. �
� A deep penetration geophysical survey completed near year end identified
several large chargeability anomalies, both near surface and at depth.�� These anomalies provide large “Blue
Sky” targets which will be drill tested starting in early 2008.
Financial Results
All of the expenditures relating to the
acquisition and exploration of the Copper Mountain Project have been deferred
during the year.� A total of $7,244,592
in exploration expenditures on the property were incurred during the year
ended, December 31, 2007, as compared to $1,224,361 in acquisition and
exploration expenditures for the prior period. The Company now has total assets
of $18.9 million at year end December 31, 2007 as compared to $7 million for
the comparative period.� The Company
recorded a loss of $837,560 or $0.05 per share for the period ended December
31, 2007 as compared to a loss of $236,593 for the comparative period last
year.� The increase in loss is
attributable to the increased activity at head office that has lead to the
significant advancement of the Copper Mountain Project during 2007.� At year end the Company had a working capital
of $5.4 million as compared to $3.3 million for the comparative period.� The Company’s financial statements are
now posted on Sedar and the Company’s web page for further viewing.
�About
Copper Mountain Mining Corp.:
CMMC is a new public BC resource company.� The Company owns 100% of the Copper Mountain
Project located 15 km
south of the town of Princeton in southern British Columbia.� The developed infrastructure, substantial resource, and extensive
historical data base provides an exceptional project.� Copper Mountain Mining Corporation’s shares trade on the TSX
Venture Exchange under the symbol CUM.�
Additional information
is available on the Company’s web page at www.CuMtn.com. �
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
“Rod Shier”
Rodney A. Shier
Chief Financial Officer
Contact Don Graham Director Investor Relations
604 682 2992 ext. 224 for further information.
Or
B&D Capital 604-685-6465
* Regulatory Requirements
“The resource estimated was prepared by Giroux Consultants Ltd.
of Vancouver British Columbia, an independent qualified
person as defined by Canada’s
National Instrument 43-101.� Methods used
in determining and reporting the resources are consistent with CIM Best
Practices Guidelines for the estimation of mineral resources and mineral
reserves”. �
Note:� This release contains
forward-looking statements that involve risks and uncertainties.� These statements may differ materially from
actual future events or results.� Readers
are referred to the documents, filed by the Company on SEDAR at www.sedar.com,
specifically the most recent reports which identify important risk factors that
could cause actual results to differ from those contained in the
forward-looking statements.� The Company
undertakes no obligation to review or confirm analysts’ expectations or
estimates or to release publicly any revisions to any forward-looking
statements.
