Constellation Copper Corporation - Lisbon Valley Operations to be Curtailed to Leach Only



    TSX: CCU

    DENVER, CO, Nov. 30 /CNW Telbec/ - Constellation Copper Corporation (the
"Company") (CCU :TSX) is providing an update on the status of its Lisbon
Valley Mine operations.

    Operational Update

    As previously reported on November 23, 2007, the Lisbon Valley Mine (LVM)
continues to produce below planned capacity. The primary reason for the lower
copper production has been the slower than planned leach recovery rate
experienced since the operation started leaching at the end of 2005. Several
significant initiatives to increase production have been undertaken, these
include: selective mining of the ore to minimize dilution and the inclusion of
acid consuming materials; modification of the ore preparation prior to
leaching; increased the mining, crushing and stacking rates; increased the
placement of ore by utilizing trucks to deliver primary crushed ore directly
to the leach pad; increased solution flows through the plant; and the most
recent initiative, construction and commissioning of an Intermediate Leach
Solution (ILS) system. Although each of these efforts has been, or may become
successful on its own, at this time the leach recovery rate limits copper
production at the mine. Implementation of these various initiatives has
required significant cash disbursements which have not been offset by higher
revenues from increased production. Therefore the Company has determined that
the most economic alternative currently available is to convert to a leach
only operation, whereby leaching of the approximately 11 million tons of ore
previously placed on the leach pad will continue as long as enough copper is
recovered to produce a positive cash flow. There remains about 900,000 tons of
ore that is uncovered and will be mined and placed on the heap before the
mining operation is curtailed in early 2008. This ore will be primary crushed
and placed on the pads with trucks. Including this ore, there will be an
inventory of approximately 40 million pounds of contained copper that may be
recoverable over the next 1 to 3 years, based on the leach recovery rate,
copper market prices, and operating costs. The secondary crushing plant,
agglomerator and stacking system will be shut down, cleaned out, and partially
disassembled for eventual sale.
    LVM will reduce its workforce from about 159 to about 58 employees
required for the ongoing leach operation. WARN Act notices will be distributed
this afternoon to those employees whose positions will be eliminated, with the
layoff date in late January and early February, 2008. The Company regrets that
this action has become necessary, and will try to minimize the impact upon the
affected employees.
    The Company continues to evaluate financing alternatives. Negotiations
with the counterparty on the Company's forward sales contracts are progressing
positively. In connection with the negotiations, LVM has closed out half of
its outstanding copper forward sales contracts, 7.385 million pounds, at a
copper price of $3.08 per pound, resulting in a fixed settlement of
approximately $9.0 million, to be paid over the original maturities. In
addition, remaining forward sale contracts, originally placed at an average
price of $1.86 per pound, will be settled at average monthly copper prices.
    Converting LVM to a leach only will assist in minimizing the cash drain
on the Company, but as stated in the November 23, 2007 release, the Company
requires additional cash to continue the reduced operations

    This press release contains certain forward-looking statements. In
certain cases, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not anticipate", or "believes", or
variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, risks related
to changes in commodity and power prices, changes in interest and currency
exchange rates, inaccurate geological and metallurgical assumptions (including
with respect to the size, grade and recoverability of mineral reserves and
resources), unanticipated operational difficulties (including failure of
plant, equipment or processes to operate in accordance with specifications,
cost escalation, unavailability of materials and equipment, delays in the
receipt of government approvals, industrial disturbances or other job action,
and unanticipated events related to health, safety and environmental matters),
political risk, social unrest, and changes in general economic conditions or
conditions in the financial markets. Although the Company has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements
    %SEDAR: 00002465E




For further information:

For further information: Constellation Copper Corporation: Patrick M.
James, Chairman & CEO; Michelle Hebert, Manager-Corporate Affairs; (720)
228-0055, Toll Free: 1-877-370-5400, Fax: (303) 863-1736,
info@constellationcopper.com, www.constellationcopper.com; Renmark Financial
Communications Inc.: Neil Murray-Lyon, nmurraylyon@renmarkfinancial.com;
Barbara Komorowski, bkomorowski@renmarkfinancial.com; Media: Vanessa Napoli,
vnapoli@renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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