VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2012) - Imperial Metals Corporation (News - Market indicators) reports the Province of British Columbia has issued a Mines Act permit for Red Chris. Mine development will include a 30,000 tonne per day milling operation and related open pit mine with reserves of 301.5 million tonnes grading 0.359% copper and 0.274 grams per tonne gold. Red Chris is located 80 km south of Dease Lake in northwestern British Columbia and is 100% owned by Imperial Metals, subject to a 1.8% net smelter royalty that can be bought down to 1.0% prior to commencement of production.
The Red Chris project received British Columbia Environmental Assessment Certification in 2005 and Canadian Environmental Assessment Act (CEAA) approval in 2006. In July 2010, the Company submitted an Application for a Mines' Act Permit following confirmation by the Supreme Court of Canada on a challenge under CEAA that there was no evidence before it of dissatisfaction with the environmental assessments conducted by the BC Environmental Assessment Office or the responsible authority and no evidence of dissatisfaction with the assessment process from anyone else. The Supreme Court of Canada held that the project could go ahead.
Electrical power will be supplied by a connection to the Northwest Transmission Line (NTL) at Bob Quinn. The NTL is expected to be complete by May 2014. Imperial plans to connect to the NTL and begin commissioning of the Red Chris plant as soon as the NTL is complete.
During operations the project will employ approximately 300 hourly, salaried and contract personnel, operating on a fly-in/fly-out basis on a two week rotation. During construction the workforce is expected peak at 500 workers. Chartered aircraft will fly all non-local employees to a nearby airstrip from where they will be bused to Red Chris.
Engineering and procurement for Red Chris mine development is proceeding with approximately 38% of the detailed engineering complete, and major long lead items including the SAG mill, ball mill, primary crusher and truck fleet procured. In 2010, capital costs were estimated to be approximately $450 million.
Imperial is a mine development and operating company based in Vancouver, British Columbia. The Company's key properties are two open pit mines: Mount Polley copper/gold mine and Huckleberry copper/molybdenum mine, both in British Columbia, as well as the development stage Red Chris copper/gold property in British Columbia, and the Sterling gold property in Nevada.
Cautionary Note Regarding "Forward-Looking Information":
This news release contains "forward-looking statements" within the meaning of Canadian and United States securities laws. Except for statements of fact relating to the Company, certain information contained herein constitutes forward-looking statements. When we discuss mine plans; costs and timing of current and proposed development; capital expenditures; the construction of the northwest transmission line; estimates of ore reserves; receipt of permits; or other things that have not yet happened in this news release we are making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. We refer to them in this review as forward-looking information.
We can give no assurance that the forward-looking information will prove to be accurate. It is based on a number of assumptions management believes to be reasonable, including but not limited to: the continued operation of the company's mining operations, that the mining operations will operate and the mining projects will be completed in accordance with their estimates and achieve stated production outcomes, and such other assumptions and factors as set out herein. It is also subject to risks associated with our business, including but not limited to: risks inherent in the mining and metals business; commodity price fluctuations and hedging; competition for mining properties; sale of products and future market access; mineral reserves and recovery estimates; currency fluctuations; interest rate risk; financing risks; environmental risks; foreign activities; legal proceedings; and other risks that are set out in our annual information form and management's discussion & analysis. If our assumptions prove to be incorrect or risks materialize, our actual results and events may vary materially from what we currently expect as set out in this news release.
We recommend you review our annual information form and annual management's discussion and analysis, which include a discussion of material risks that could cause actual results to differ materially from our current expectations. Forward-looking information is designed to help you understand management's current views of our near and longer time prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.