Press Release
Accelerating Timeline to Potential Cu-Zn-Pb-Ag Production at the 100%-owned
Murray Brook Deposit: PEA Planned for H1 2025
Toronto, October 28th, 2024 – Canadian Copper Inc. (CSE:CCI) (“Canadian Copper” or the “Company”) announced today the signing of a Term Sheet (“Term Sheet”) and Exclusivity Agreement (“Exclusivity Agreement”) providing the Company the exclusive right to acquire the Caribou Processing Plant Complex (“Caribou Complex”). The transaction represents a material acceleration and derisking step in bringing the Murray Brook Cu-Zn-Pb-Ag deposit to production.
Transaction Highlights
Purchase Price: $6,225,000.
Term Sheet Signature Date: October 28th, 2024.
Transaction Closing Date: July 11th, 2025.
Deposit: $225,000 of which $125,000 is refundable against purchase price.
The Caribou Complex: Includes a 3,000 tonne per day (“tpd”) milling facility consisting of a primary grinding circuit with one SAG mill and one ball mill, two regrinding circuits with three ISAmills and one ball mill, a differential sulphide flotation plant and associated reagents preparation and addition systems, metallurgical and geochemical laboratories, a tailings management facility, an underground mine with a historical Proven and Probable 4.5 million tonnes[1] (“Mt”) Reserves, and other infrastructure such as connected grid power and water supply for operations. The New Brunswick government has managed Care and Maintenance for the site since January 2023. Caribou operated until August 2022 at which point a Concentrator Care and Maintenance shutdown occurred by the previous operator. Please click for drone footage.
Simon Quick, CEO of Canadian Copper. “The proposed transaction creates important synergies for Canadian Copper. By integrating our large Murray Brook deposit with an already permitted and constructed Caribou Complex that operated as recently as August 2022, we aim to significantly reduce the schedule, capital cost, and permitting time required to produce copper, zinc, and lead concentrate from Murray Brook. The combination of a large open pit polymetallic Mineral Resource with a nearby processing plant represents a material acceleration and derisking effort to create a new leader in critical metals production in Eastern Canada.”
Next Steps
The Company and several consultants completed a Caribou Complex audit October 2nd, 2024. The Company has also engaged three groups responsible for the design, development, and processing of the Murray Brook deposit at the Caribou Complex under the combined operation strategy (“Combined Operation”). These Qualified Persons’ primary objectives are to verify the internal Company’s estimates of the Combined Operation which will be the basis for publishing a Preliminary Economic Assessment (“PEA”) in the first half of 2025.
Engineering contracts have been awarded to:
Table A: Schedule of Activities for the Combined Strategy
Funding Strategy
The Company is advancing several financing options to fund both the purchase price and additional development capital required to advance the Combined Operation through the engineering and provincial permitting stages. As the financial model and PEA progress in Q1 2025, the Company will solicit parties to participate in a competitive financing process.
To date, discussions include:
Future Reclamation Liabilities: $6,200,000[2]. The Company is in discussions with surety bond providers to minimize cash attributed to this requirement. Further, future long-term water treatment for closure liabilities exist that are separate from the above that are pending further discussion with the New Brunswick government. The Company is exploring design modifications to substitute the water treatment plans and substitute this solution for a closure dam that will both increase tailings capacity for mine operations as well as act as a closure solution.
[1] Trevali Mining Corporation – Caribou Technical Report 2018
Figure A: Location Map of Murray Brook and Caribou Processing Complex
Mineral Resource Estimate Completed by P&E Consultants Inc.
This MRE[3] for Murray Brook is based on data with an effective date of October 3, 2023.
Frequently Asked Questions (“FAQ”)?
Please click here for access to the FAQ’s.
Qualified Person
Mr. Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc. is an independent Qualified Person as defined in NI 43-101. Mr. Puritch is responsible for the Murray Brook MRE.
Disclosures Regarding the Caribou Complex
Trevali Mining Corporation issued a press release entitled “Trevali Reports 2020 Mineral Reserves and Resources; Increasing Mineral Reserves at Rosh Pinah and Caribou Mines” on March 31, 2021 and further indicated in its 2020 Annual Information Form filed on www.sedarplus.ca referencing The Caribou Underground Mine Mineral Reserve estimate prepared by an non-independent mine engineering consultants effective December 21, 2020. The Trevali Mining Corporation – NI 43-101 Technical Report entitled “Technical Report on the Caribou Mine, Bathurst, New Brunswick, Canada” dated May 31, 2018, effective December 31, 2017, prepared by Roscoe Postle Associates Inc, under the supervision of Torben Jensen, Ian T. Blakley, Tracey Jacquemin and Shaun C. Woods and filed on www.sedarplus.ca is the historical technical report on the Caribou Complex (the “Caribou Technical Report 2018”) Canadian Copper is not treating the historical” proven or probable reserve” as a “current resources estimate” or “mineral reserves”, as it has not taken steps to identify what work needs to be done to verify, upgrade or re-classify the historical “mineral reserve” using a qualified person.
About Canadian Copper Inc.
Canadian Copper is a Canadian-based mineral exploration company with a copper and base metals portfolio of historical resources and grassroots projects. The Company is focused on the prolific Bathurst Mining Camp (BMC) of New Brunswick, Canada. There are currently 90,044,762 shares issued and outstanding in the Company.
[1] See “Disclosures Regarding the Caribou Complex” below.
[2] Trevali Mining Corporation – Caribou Technical Report 2018
[3] Canadian Copper Inc. “Technical Report and Updated Mineral Resource Estimate of the Murray Brook ZN-PB-CU-AG Project New Brunswick Canada” (effective October 3, 2023) prepared by P&E Mining Consultants Inc, and filed on www.sedarplus.ca
For more information, please contact:
Simon Quick, Director and CEO | (905) 220-6661 | simon@canadiancopper.com | ir@canadiancopper.com
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