Constellation Copper Corporation Reports on Production Enhancement Projects



    TSX: CCU

    DENVER, CO, Sept. 18 /CNW Telbec/ - Constellation Copper Corporation
(CCU:TSX) (the "Company") reported today on the progress of the production
enhancement projects underway at Lisbon Valley As noted in the 2007 second
quarter report, the Company's immediate focus has been increasing the amount
of contained pounds of copper placed on the leach pad and expediting
construction of an Intermediate Leach Solution (ILS) system.
    During July and August 2007, Lisbon Valley commissioned a fleet of three
100-ton capacity trucks and started hauling and stacking primary crushed ore
onto an 800,000 ton capacity section of the leach pad. Previously, all ore was
processed through a secondary crushing system before being loaded on the leach
pad.
    The decision to leach primary crushed ore resulted from the inability to
process all of the ore being mined through the secondary crushing and stacking
system. Any excess ore is now being hauled directly to the leach pad, with a
goal of placing at least 6 million pounds of contained copper per month on the
pad. As of the end of August, 383,000 tons of primary crushed ore, containing
approximately 5 million pounds of copper, had been stacked. Initial leaching
of this ore began during the first half of September 2007. Continuation of the
truck stacking program will depend on an assessment of the effectiveness of
the program once we have seen the initial leach results.
    Traditional secondary crushing and stacking of ore has continued and a
combined total of approximately 13 million pounds of contained copper was
placed on the leach pad in July and August of 2007. The monthly average of
6.5 million pounds of contained copper placed on the pad in July and August is
100% higher than the average during the first six months of 2007, when lower
grade ore was being mined and limitations on the crushing and stacking systems
were being experienced. The mining of higher grade ore is expected to continue
through the remainder of 2007 and into 2008.
    Offsetting the increase in contained pounds being loaded on the leach pad
is an increase in the percentage of sulfide ore as we mine deeper in the pit.
Sulfide ore has a slower leach cycle than oxide ore. The average of sulfide
ore was 27% year to date at the end of August, compared to 7% for all of 2006.
The percentage of sulfide ore is expected to increase in the remainder of 2007
and through the remaining mine life.
    As discussed in the 2007 second quarter report, the ILS system is
expected to double the amount of ore maintained under leach and help offset
the expected slower recovery of sulfide copper. In addition, copper
concentration in the Pregnant Leach Solution (PLS) should increase
significantly as a result of recycling leach solution back over the leach pads
before it is processed through the SX/EW facility. The earthwork part of the
ILS project was completed in early September 2007, and in mid-September the
contractor will start lining the pond, assembling the pumping plant, and
installing the large piping system required to facilitate doubling the leach
solution flow rate. Lisbon Valley expects to start the ILS system in
November 2007, and have it at full capacity by mid-spring 2008.
    In order to mitigate many of the problems Lisbon Valley experienced last
winter with low solution temperatures, plastic insulating balls are being
installed on all three solution ponds. Another cold weather mitigation
project, completed in the spring 2007, was converting the solvent extraction
plant to parallel flow to allow slower solution flows through each SX
extractor, while increasing the total flow rate 16%.
    Lisbon Valley copper cathode production has been limited to between 1.6
and 1.8 million pounds per month as a result of a low copper grade of the PLS
being processed through the SX/EW facility. Placing significantly more pounds
of copper in ore on the leach pad and putting the ILS system into operation is
expected to significantly increase copper cathode production. We should be
able to determine the sustainable production level for the Lisbon Valley Mine
once the effects of the current enhancements are known.
    The Company continues to settle its forward sales contracts monthly as
they come due, at approximately $1.8 million per month at current market
prices. Outstanding forward sale contracts, at an average settlement price of
$1.90 per pound, as well as lower than expected cathode production, have
limited the Company's ability to participate in the current favorable copper
price environment. Capital costs of production improvements have been in line
with estimates, but have been substantial during the third quarter of 2007. In
addition, working capital expenditures increased as a result of additional
mining costs associated with doubling the pounds placed on the pad.
    The Company's cash balance was $15.2 million at the end of August 2007
compared to $25.8 million at June 30, 2007. In case fourth quarter production
does not increase from current levels, the Company is conserving cash by
delaying non-critical exploration and development activities, reducing outside
consulting expenditures, and deferring capital expenditures not directly
related to production enhancements. The Company is also evaluating strategic
financing alternatives in the event that additional cash may be needed to
continue normal operations into 2008.

    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
James, 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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