Princeton set to resume operations at Similco mine

The Similco copper mine near Princeton, B.C., will resume production in early August.

The decision by owner Princeton Mining (TSE) reflects a 40 cents-per-lb. increase in the price of copper since operations were suspended last November. Mitsubishi Materials will provide Similco with a US$3.6-million advance payment facility, payable against production and delivery of concentrate. These funds will be used for mine startup and for working capital. Princeton says its unionized workers are “supportive of the startup” and voted overwhelmingly in favor of ratifying a 2-year extension of their existing collective agreement.

A price protection program has been put into place for about 30 million lb. copper over the first 12 months. Under this program, Similco is assured of at least US$1 per lb.

Similco has produced an average 55 million lb. copper, 25,000 oz. gold and 350,000 oz. silver annually over the past five years.