Positive Feasibility Study provides basis for Copper Mountain Production Decision



    Web Site: www.CuMtn.com
    TSX.V: CUM

    VANCOUVER, July 28 /CNW/ - Copper Mountain Mining Corporation ("CMMC" or
the "Company) is pleased to announce results of a positive independent
Feasibility Study Report ("Feasibility Study") on the Company's 100% owned
Copper Mountain project located near Princeton, British Columbia.
    The Feasibility Study was prepared by Hatch Ltd. ("Hatch"), together with
other consultants, and describes the scope, design features and economic
viability of bringing back into production a conventional open pit mine with a
35,000 tonnes per day mill. The mine, a former producer, is designed to
produce approximately 100 million pounds of copper per year in a copper
concentrate with gold and silver credits. The capital cost is estimated at
$402 million (excluding a $35.4 million contingency allocation) with
production scheduled to commence at the end of 2010. The project would create
274 permanent jobs over an initial 15 year mine life.
    The Feasibility Study considered a Base Case that used the London Metal
Exchange ("LME") forward pricing as of June 18, 2008 for the first three years
and then a long term copper price of US$1.80 for the balance of the mine life.
Gold and silver long term pricing used was US$675/oz and US$12/oz
respectively. All amounts are in Canadian funds unless otherwise stated.

    
    Base Case Highlights            Years 1-5     Years 6-10   LOM (15 Years)
    -------------------------------------------------------------------------
    Metal Production
    ----------------
      Copper (lbs)                 480,949,000    469,823,000  1,119,202,000
      Gold (oz)                        138,856        137,128        339,292
      Silver (oz)                    1,478,041      1,523,293      3,562,159

    Total Operating Costs
     (US$/lb net of Ag/Au Credits)     US$1.28        US$1.13        US$1.27

    Pre-Tax Payback (years)                                              2.7

    Pre-Tax Internal Rate of Return (%)                                20.2%

    Pre-Tax NPV at 5% discount rate                             $263 million
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Mr. O'Rourke, Chief Executive Officer of Copper Mountain stated: "this
positive Feasibility Study is a material step forward for the Company in the
restart of this past copper and precious metals producer. The Feasibility
Study describes the development and operations plan that successfully combines
long-term commercial viability with responsible environmental stewardship. The
production start at the end of 2010 meets our initial target and equipment
deliveries have been arranged to match this schedule. We are pleased with the
Feasibility Study results and are particularly encouraged by the 2008
exploration drill results which are expected to further improve the mine plan.
The company plans to continue an aggressive drilling program to increase the
grade and tonnage within the Super Pit while continuing to test the Titan 24
geophysical targets for new discoveries."

    Mineral Resource and Mineral Reserve

    The Copper Mountain copper-gold-silver porphyry deposits contain a
Measured and Indicated Mineral Resource of 260.2 million tons averaging
0.357% Cu containing 1.8 billion lb copper (see Mineral Resource table below).
The Feasibility Study is based on this resource which was prepared by Giroux
Consultants Limited and includes drill data up to December 20, 2007. The
NI 43-101 compliant Mineral Resource estimate used data from approximately
450,000 meters of drilling in more than 5,000 drill holes. The Company employs
a system of quality control for drill results which includes the use of
blanks, certified reference material (standards) and check assaying. Core is
logged on site and split with a diamond saw. Samples are shipped to Pioneer
Laboratories for geochemical analysis of copper with all values of greater
than 1,000 ppm copper being re-analysed by assay methods for copper, gold and
silver. The drilling program is being supervised by Peter Holbek, M.Sc.,
P.Geo., a qualified person as defined by National Policy Instrument 43-101
    A summary of the resources developed by Giroux Consultants Ltd based on
drilling up to December 20, 2007 are provided in the table below:

    
              Mineral Resource(*)(Inclusive of Mineral Reserve)

       Measured Plus Indicated Resource              Inferred Resource

              Tons                              Tons
    Cut-off  (st x             Contained       (st x           Contained
      %Cu    000's)   Grade   Copper (lbs)     000's)  Grade  Copper (lbs)
    ---------------------------------------  --------------------------------
    0.15    365,920   0.304  2,224,800,000    299,480  0.237 1,419,500,000
    0.20    260,220   0.357  1,858,000,000    164,000  0.290   951,200,000
    0.25    185,960   0.411  1,528,600,000     92,070  0.344   633,400,000
    0.30    137,910   0.459  1,266,000,000     54,760  0.393   430,400,000
    ---------------------------------------  --------------------------------
    ---------------------------------------  --------------------------------
    (*) The resource estimate was prepared by Giroux Consultants Ltd. of
    Vancouver British Columbia. Gary Giroux, P.Eng MASc. is, the independent
    qualified person as defined by Canada's National Instrument 43-101.
    Methods used in determining and reporting the resources are consistent
    with CIM Best Practices Guidelines for the estimation of mineral
    resource.
    

    The Mineral Reserve is the portion of the resource that is included in
the open pit design as estimated by Hatch and is based on an economic cutoff
of 0.15% Cu. The Proven and Probable Mineral Reserve totals 194.6 million tons
averaging 0.33% Cu containing 1.3 billion lb copper and a summary of the
mineral reserve is provided in the table below. The figures below include an
allowance for dilution and ore loss.

    
                             Mineral Reserve(xx)

                                Tons             Cu             In-situ Cu lb
    Category                (st x 000's)         (%)              (Millions)
    -------------------------------------------------------------------------
    Proven                    79,126           0.36                  569,707
    Probable                 115,435           0.30                  692,610
    -------------------------------------------------------------------------
    Total                    194,561           0.33                1,262,317
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (xx) The reserve estimate was prepared by Hatch Ltd. of Vancouver British
    Columbia. John Schillabeer, P.Eng, an employee of Hatch Ltd is the
    independent qualified person as defined by Canada's National Instrument
    43-101. Methods used in determining and reporting the reserves are
    consistent with CIM Best Practices Guidelines for the estimation of
    mineral reserves.
    

    Drilling at the site has been continuous since December 2007 with 5
drills completing an additional 35,000 meter by mid July as part of the
50,000 meter drill program planned for 2008. The 2008 drill results have not
been incorporated into the above numbers. The Company plans to update the
resources in the near future.

    Capital Cost

    The capital cost is estimated at $437.4 million, including a
$35.4 million contingency, in June 2008 Canadian dollars with no allowance for
price escalation or fluctuations in currency exchange rates and has been
estimated with an intended level of accuracy of +/- 15%. All cost estimates
and other financial projections referenced in this Press Release are subject
to important qualifications, assumptions and exclusions, all of which are
detailed in the Feasibility Study. Therefore, in order to fully understand the
estimates and projections set out above, the Feasibility Study should be read
in its entirety.

    
    The capital cost breakdown is shown in table the below:

                                Capital Costs

    Description                                                     $(000's)
    -------------------------------------------------------------------------
    Direct Costs
      Mining & preproduction Development                              96,301
      Crushing & Conveying                                            28,855
      Processing                                                     166,304
      Tailings & Water Supply                                         22,043
      Plant Site Infrastructure                                       18,056
                                                                    ---------
      Total Direct Costs                                             331,559
                                                                    ---------
    Indirect Costs
      Owner's Costs                                                   11,355
      Construction Support                                             7,007
      EPCM                                                            52,088
                                                                    ---------
      Total Indirect Costs                                            70,450
                                                                    ---------
    Total Direct and Indirect Capital Costs                          402,009
    Contingency                                                       35,400
                                                                    ---------
    Total Capital Costs with Contingency                             437,409
                                                                    ---------
                                                                    ---------

    -------------------------------------------------------------------------
    

    Production

    The open pit mine design is based on processing 35,000 tonnes per day of
mill feed and producing a copper concentrate containing gold and silver. The
initial five year average grade of mill feed is 0.39% Cu (0.43% Cu Equivalent)
resulting in an average annual production of 96 million pounds copper for the
same period. The lower grade material (below 0.25% Cu) will be stockpiled for
processing towards the end of the mine life. The average waste to ore ratio
for the life of mine is 1.8:1. Metallurgical testing indicates a recovery of
89.2 percent for copper, 65 percent for gold, and 49 percent for silver.
Metallurgical test results were comparable to the operating results reported
from prior operations.

    
    A summary of the production forecast based on the current mine design is
provided in the table below:

                             Production Summary

                                      Years         Years            LOM
    Item Description                  1 - 5         6 - 10        (15 Years)
    -------------------------------------------------------------------------
    Total Tonnes Mined             279,428,000    197,470,000    492,581,000
    Total Waste Mined              187,996,000    113,157,000    316,636,000
    Total Mill Feed Mined           91,433,000     84,315,000    175,944,000
    Strip Ratio (W:O)                    2.1:1          1.3:1          1.8:1

    Tonnes Milled                   63,113,000     63,492,000    175,944,000
    Grade (% Cu)                         0.39%          0.38%          0.33%
    Copper Production (Lbs)        480,949,000    469,823,000  1,119,202,000
    Silver Production (Oz)           1,478,041      1,523,293      3,562,159
    Gold Production (Oz)               138,856        137,128        339,292
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The resource model that formed the basis for the Feasibility Study is
based on drill data up to December 20, 2007. The 2008 drill data will be
applied to the resource model and mine plan as available with the objective of
maximizing the copper production in the first five years.


    Operating Costs

    The Life of Mine (LOM) mine operating cost is estimated at $7.31 per
tonne of ore milled as summarized in the table below:

    
                               Operating Costs

                                                                     $/tonne
    Description                                                       Milled
    -------------------------------------------------------------------------
    Mining (including waste)                                           $3.52
    Processing                                                         $3.54
    General and Administrative                                         $0.25
                                                                    ---------
    Total Operating Costs                                              $7.31
                                                                    ---------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Operating costs have been calculated based on June 2008 dollars and the
labour costs used are in the upper quartile of wages paid at B.C. mines.
Operating costs are estimated at US $1.28/lb Cu (net of gold and silver
credits) in years 1 to 5, US $1.13/lb Cu (net of gold and silver credits) in
years 6 to 10, and US $1.27/lb Cu average (net of gold and silver credits) for
the life of mine.

    Economics:

    Economic modeling results are based on commodity prices in U.S. dollars
with all other values in Canadian dollars. The long-term US/Canadian exchange
rate used in the Feasibility Study was 0.95. The Base Case metal prices used
are those from the June 18, 2008 London Metal Exchange forward prices to 2013
(2011 - US $3.18/lb Cu, 2012 - US $3.06/lb Cu, 2013-US$2.94/lb Cu) and US
$1.80 per pound copper for the balance of the fifteen year mine life.

    A summary of the net sales revenue and operating costs are provided in
the table below:

    
                       Estimated Life of Mine Revenue

                                         1 - 5         6 - 10           LoM
                                         Years          Years          Total
    Item                                 000's          000's          000's
    -------------------------------------------------------------------------
    Gross Value
      Copper                        $1,222,989       $859,034     $2,389,985
      Gold                             $98,512        $92,894       $234,813
      Silver                           $18,654        $17,317        $42,348
    Total Gross Value               $1,340,155       $969,245     $2,667,146
    Smelter, Refining and
     Transportation costs             $192,685       $178,591       $435,422
    Net Sales Revenue               $1,147,470       $790,654     $2,231,724
    Base Case Copper
     Price ($/lb Cu)                  US $2.56       US $1.80       US $2.13
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The Feasibility Study calculated the net present value of the project at
various discount rates. The Base Case financial evaluation is in the following
table:

                             Financial Evaluation

                                                    $ (000's)      $ (000's)
    Item Description                               Before Tax      After Tax
    -------------------------------------------------------------------------
    NPV @ 5%                                       262,590        226,135
    NPV @ 8%                                       183,071        154,374
    Internal Rate of Return                             20.2%          18.8%
    Capital Payback                                 2.7 Years      2.8 Years
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The after tax IRR at 18.8% exceeds the Company's investment hurdle rate
and the Company is advancing financing discussions to meet the Feasibility
Study schedule for commissioning at the end of 2010. The Company believes it
will obtain operating permit amendments in a timely manner and can meet the
recommended development schedule due to the established infrastructure and
favorable project location.

    Feasibility Study Recommendations:

    In the Feasibility Study Report Hatch advises CMMC that in Hatch's
opinion, the Project is technically feasible and "the Feasibility Study
provides sufficient basis for CMMC to refer the Project to its Board of
Directors to make a decision respecting the further development and
construction of the Project." Infill drilling is recommended within the
ultimate pit to upgrade inferred resources that are currently scheduled as
waste as per NI 43-101 regulations. The NI 43-101 Technical Report for the
Copper Mountain Feasibility Study Report will be filed on SEDAR with 45 days
of the date of this news release.

    Conference Call

    CMMC will host a conference call on Monday July 28, 2008 at 10:00 AM PST
to discuss the Feasibility Study Report. A recording of the conference call
will be available on the Company's website. Call-in information is as follows:
    Toll Free Dial-in Number (within the US and Canada): 1 800 732 9382
    International Dial-in Number: +1 212 231 6049

    About Copper Mountain Mining Corporation:

    CMMC is a BC resource company, that on June 29, 2008, celebrated it's
first anniversary as a public company. The Company owns 100% of the Copper
Mountain Project located 15 km south of the town of Princeton in southern
British Columbia. The Company filed an Independent 43-101 Technical Report
pertaining to the interim resource estimate and has completed a video
presentation on the Copper Mountain Project, all of which may be found on the
company's website. Copper Mountain Mining Corporation's shares trade on the
TSX Venture Exchange under the symbol CUM and additional information is
available on the Company's web site at www.CuMtn.com.

    On behalf of the Board of
    COPPER MOUNTAIN MINING CORPORATION

    "Rod Shier"

    Rod Shier
    Chief Financial Officer

    Note: This release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents, filed by the Company
on SEDAR at www.sedar.com, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements.





For further information:

For further information: Don Graham, Director Investor Relations, (604)
682-2992 ext. 224; Or B&D Capital (604) 685-6465


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