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|Thu Jul 22, 2004|
Constellation Copper Corporation Announces Receipt of Air Quality Permit for Lisbon Valley Project - Progress Towards Construction
Merit Consultants performed the Construction Management for the dismantling of the Equatorial Copper Plant in Tonapah, Nevada, and is currently undertaking the Project Management for the installation of the new plant at Lisbon Valley, Utah.
TSX:CCU News Release #2004-28
Constellation Copper Corporation (CCU:TSX) is pleased to announce that it has received an Approval Order for the Air Quality Permit issued by the State of Utah for development of the Lisbon Valley heap leach SX-EW copper project located in southeastern Utah. The Air Quality Permit was the last remaining major permit required for development of the project.
With the Air Quality Permit in place, the Company is in position to commence construction of the Lisbon Valley Project upon 1) completion of project financing, 2) adjustment of the initial reclamation bond amount, as stipulated in the existing Reclamation Contract, to allow for inflation since 1997, 3) posting of the initial reclamation bond to the satisfaction of the State of Utah, and 4) reissue of the construction permit for the pads and ponds based upon final review of engineering drawings, which have not changed since these were reviewed and approved in 1997. All of the above are expected to be in place by the end of August, to allow construction to commence by September 1, 2004.
Towards the targeted construction start-up, the Company has completed approximately 90% of the dismantling and relocation of the crushing and processing facilities from Tonopah, Nevada to the Lisbon Valley site, with an estimated completion date of August 6, 2004. In addition, the Company has tendered for the critical contracts for construction including excavation/earthworks, pad and pond installation, and substation design and power line installation. Bid documents for civil and concrete works, and re-erection of the crushing and processing facilities (structural, mechanical, piping, electrical, and instrumentation) will be issued this week. The Company continues to work with equipment suppliers on a lease/purchase arrangement of a mining fleet, and is in final discussions regarding an acid supply and delivery contract.
Documentation and due diligence for the previously announced project loan facility is progressing, as are discussions with metal trading companies regarding an off-take agreement based upon the delivered price of cathode copper in the United States. Currently, the premium price for cathode copper in the United States is up to 10 cents above the COMEX spot price, which is nominally above the LME spot price. The Company anticipates benefiting from a continued high premium for cathode copper in the United States, as supply of cathode copper in the U.S. is, and is expected to remain, limited for the foreseeable future. The Lisbon Valley project has a design capacity of 54 million pounds of cathode copper annually, and is expected to reach full production capacity early in 2006.
On behalf of the Board of Directors
"Gregory A. Hahn"
Gregory A. Hahn
President & CEO, Director
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release
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