Capstone Copper Achieves Milestone: First Ore Processed at Mantoverde Project

Capstone Copper Corp has initiated commissioning activities at its Mantoverde Development Project (MVDP) in Chile, with a focus on ensuring a safe, efficient, and phased project commissioning and ramp-up. The successful completion of all elements required to commence commissioning, according to Capstone's Chief Executive Officer John MacKenzie, highlights the project's on-time progress. MacKenzie further emphasized that the MVDP, with a total capital cost guidance of $870 million, is poised to significantly increase the company's consolidated copper production by over 40%, coupled with a notable reduction in unit operating costs.

Excitingly, on November 29, the primary crusher at Mantoverde received its first ore, marking a crucial step in the commissioning process. Capstone Copper is set to systematically commission the concentrator plant, aiming to achieve nameplate production levels of 32,000 tons per day by mid-2024. Cashel Meagher, Capstone’s President and Chief Operating Officer, announced the successful completion of the hiring process, bringing on board an experienced workforce of over 130 skilled individuals to oversee the sulphide operations. Meagher highlighted the collaboration with Ausenco to ensure the safe and efficient ramp-up of production. Consolidated production, cost, and capital guidance for 2024 will be released by Capstone in late January.

The existing Mantoverde project currently utilizes heap and dump run-of-mine leaching, along with conventional SX-EW processes, to treat oxide ore, producing high-purity Grade 'A' copper cathodes. The project encompasses four pits along the Mantoverde fault, each containing both sulphide and oxide ores.

The Mantoverde Development Project (MVDP) represents a significant expansion, increasing copper production from approximately 49,000 tons (cathodes only) between April 1 and December 31, 2022, to a projected run-rate of around 120,000 tons in 2024. The addition of a new concentrator plant allows for the treatment of sulphide material to produce copper concentrate, while the existing SX-EW plant continues to process oxide ores. The mining operations persist with conventional open-pit methods, utilizing truck-and-shovel technology.

The MVDP's processing of sulphide ores occurs in a concentrator with a substantial capacity of 12.3 million tons per year. The project has advanced under a lump-sum turn-key engineering, procurement, and construction (EPC) contract with Ausenco, ensuring a streamlined and comprehensive approach to the project's development. The MVDP, as noted by Capstone Copper, represents a transformative endeavor that lays the foundation for significant growth in the Mantoverde-Santo Domingo District. The successful commissioning and ramp-up will contribute to the company's strategic goals and further solidify its position in the copper production landscape.