Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By ZACHARY MARANO
LONGUEIL, Quebec — The Canadian copper development company Highland Copper Company reported on Wednesday that it is aiming to initiate construction activities at its Copperwood Project in Gogebic County in early 2023, depending in part on the results of an updated feasibility study of the project.
On Feb. 28, Highland Copper Company reported that it initiated an updated feasibility study on the Copperwood Project north of Wakefield. According to the company website, the last feasibility study of the project was published in June 2018.
“We are pleased with the progress on the updated feasibility study and remain on track to complete it in June 2022,” Highland Copper Company CEO Denis Miville-Deschênes said. “We recently had an exciting team session at site reviewing the execution plan for the Copperwood project.”
“Copperwood is one of very few copper projects, advanced both from a permitting and study perspective, and located in a Tier 1 jurisdiction. We also spent time considering our plans at White Pine North, a past producer that has the potential to significantly scale production growth in Michigan. We look forward to updating the market in the near-term,” Miville-Deschênes continued.
The updated study, which is being undertaken by the Brossard, Quebec-based G Mining Services Inc., will evaluate project opportunities and review capital and operating costs, supply chain issues and the project execution plan.
In their third quarter and year-to-date update on Wednesday, the company said that approximately 90% of the underlying engineering work was completed and they are targeting to complete the updated feasibility study, including a development schedule, within a week.
According to the company website, the June 2018 feasibility study reported proven and probable reserves of 25.4 million tons at 1.43% copper and 3.83 grams per ton silver, containing 801.8 million pounds of copper and 3.1 million ounces of silver, an internal rate of return of 18% after tax, capital cost of $275 million and an average payable copper production of 61.7 million pounds per year.
The company also plans to initiate baseline environmental studies over the coming months at White Pine North in Ontonagon County and will consider a conversion drilling program over the 2022-2023 winter season. It plans to begin a feasibility study on this project in 2023.
The Wednesday news release also says a range of steps have been taken to prepare Highland Copper for funding and development of its assets in Michigan. The sale of the company’s exploration assets and an equity raise in the first half of the year facilitated payment of all outstanding corporate debt.
The company realized a net income loss of $1.5 million during the quarter. Expenditures relate primarily to the ongoing updated feasibility study for Copperwood, the release says.
