The board of directors of Huckleberry Mines Ltd. has formally approved the main zone optimization plan, which will extend the life of the mine to 2021.
The mine, which is located 123 kilometres southwest of Houston is 50 per cent owned by Imperial Metals Corporation. The remaining 50 per cent interest is held by Mitsubishi Materials Corporation, Marubeni Corporation, Dowa Mining Co. Ltd. and Furukawa Co.
Imperial Metals Corporation recently announced the approval of the extension will preserve 230 full time and 30 contract positions at the mine. In addition they estimate the expansion will create approximately 70 new full time permanent positions at the mine.
The expansion will take advantage of a mineral reserve located beneath the original main zone pit and will also require the construction of a new tailings storage facility. According to an Imperial Metals Corporation third quarter report, on site work for the expansion has already begun, including logging to accommodate the new tailings pond.
Byng Giraud, executive advisor to the president of Huckleberry Mines Ltd. said the expansion project did not require an environmental certificate to be issued, as the project fits within the mine's already approved footprint.
He said the existing permit for the mine, which was issued in the late 1990s, already encompasses the area of expansion. "Everything we are doing is still within the permitted disturbance area."
Giraud said the plans still had to be submitted to all permitting agencies for inspection and final approval, and it was determined by the agencies that there were no triggers that required an environmental permit to be issued.
He said one of the main environmental triggers is fish habitat and there isn't any bodies of water in the expansion area.
He said the expansion plans were first discussed in July of 2010 and a formal application for the expansion was submitted during spring of 2011, with the final go ahead given to proceed just before Christmas.
The company was issued with a number of permits including an Amendment to the Mines Act permit, an Environmental Management Act permit and a License to cut, due to the logging required to accommodate the tailings pond.
Giraud confirmed on site timber clearing had already been completed during fall. "Cheslatta Carrier Nation did the clearing work for the tailings facility," he said, adding that the company also signed agreements with the Office of the Wet'suwet'en and Cheslatta Carrier Nation.
"The agreements encompass existing mine capacity support and provide the Office of the Wet'suwet'en and Cheslatta Carrier Nation with an opportunity to comment on permits, as well as provide employment and contracting opportunities [to their members]."
Cheslatta Carrier Nation Chief Richard Peters said, "We have had our differences in the past and our relationship was very difficult at times. However, after a change in management early last year, we immediately opened up a new dialogue that lead to Cheslatta forming a modern partnership with Huckleberry Mines. This has been a very positive arrangement for both parties and we are comfortable that changes in environmental monitoring systems have given us comfort that the mine is compatible to the marine environment in the Cheslatta territory."
Requests for proposals have now been issued for earth works at the mine.
Over the life of the seven year expansion, Huckleberry Mines Ltd. is expected to spend $254 million on wages and benefits, excluding contractors, $119 million on new acquisitions and $82 million on dam construction.
A total of $119 million worth of new equipment will be purchased for the expansion and $82 million will be spent on construction of the tailings pond.
The expansion is estimated to have a net value of $150 million in resources, which Imperial Metals Corporation are basing on a U.S. estimate of $3.40 per pound for copper in 2012 and a price of U.S. $3.14 per pound for copper from 2013 to 2021.
To the end of 2010, the mine produced 870 million pounds of copper, eight million pounds of molybdenum, 105,000 ounces gold and 3.4 million ounces silver.
Imperial Metals Corporation estimate that production from 2011 to 2021 is estimated to be a further 424 million pounds copper, with copper production averaging 43.2 million pounds per year from 2011 to 2019.
Production in 2020 and 2021 will be reduced as low grade stockpiles are milled.
Huckleberry Mines Ltd. consists of a mining lease covering approximately 1,911 hectares and 37 mineral claims encompassing approximately 19,366 hectares.
Imperial Metals Corporation also owns the Mount Polley Mine located 100 kilometres Northwest of Williams Lake and is developing the Red Chris property 80 kilometres South of Dease Lake.