Copper Mountain Reports Revenues Of $67.6 Million

VANCOUVER - Copper Mountain Mining Corporation reported revenues of $67.6 million after pricing adjustments and treatment charges for the three months ended September 30, 2013.

Total production for the 2013 third quarter at Copper Mountain Mine (100%) was 17.7 million pounds of copper, 6,400 ounces of gold and 79,300 ounces of silver. Copper concentrate shipments contained approximately 16.6 million pounds of copper, 6,300 ounces of gold, and 77,100 ounces of silver during the quarter. Mining activities continued at a steady rate of 154,300 tones per day mined during the third quarter of 2013.

Milling activities continued to improve - Average throughput rate was 29,130 tones per day (tpd) in the third quarter of 2013, as compared to 26,000 tpd for the first half of the year. Copper Recoveries were 87.2% in the third quarter as compared to 85.0 % for the first half of the year.

Copper Mountain's flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Company has a strategic alliance with Mitsubishi Materials Corporation who owns the remaining 25%. The Copper Mountain mine commenced production in the latter half of 2011, and has continued to improve its operations during the year. The 18,000 acre site has a resource of approximately 5 billion pounds of copper and remains open laterally and at depth. The mine has significant exploration potential that will need to be explored over the next few years to fully appreciate the properties full development potential.

Jim O'Rourke, President and CEO of Copper Mountain, remarked "we are very pleased with the progress that is being made at the site. SAG Mill throughput has continued to improve with our recently implemented short term improvements which will continue while the longer term permanent secondary crusher is installed. September was an excellent month with mill availability exceeding budget and mill throughput averaging 31,925 tpd, a 22.8 percent increase over the 26,000 tpd average for the first half of the year. Production of 6.8 million pounds copper has been our best month of production since start up. We are cash flow positive and we will be continuing to improve the operation as we further increase the amount of minus 2 inch ore being fed to the SAG Mill".

O'Rourke continued,"Looking forward, management's efforts are fully focused on the installation of a secondary crusher and we are continuing to work with our partner and project banks to get the installation advanced as soon as possible."

Production during the quarter totaled 17.7 million pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver. Sales for the quarter were 16.6 million pounds of copper, 6,300 ounces of gold, and 77,100 ounces of silver, generating an EBITDA of $29.5 million for the quarter. The Company ended the quarter with $17.1 million in cash which helped eliminate the working capital deficit of the previous quarter

During the quarter, the company completed three shipments of concentrate containing approximately 16.6 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $67.6 million, realizing a gross profit of $16.4 million. The total cash cost of copper sold for the three months ended September 30, 2013 was US$2.22 per pound of copper after gold and silver by-product credits.

Mining activities continued in the Pit #3 and Pit#2 area during the quarter. A total of 13.3 million tones of material was mined, including 3.9 million tones of ore and 9.4 million tones of waste at an average mining rate of 154,300 tpd moved during the third quarter of 2013. The ore grade averaged 0.34% Copper for the third quarter. Site cash costs were $1.68 per pound of copper after gold and silver by-product credits.

The mine exited the quarter on a positive note with the mill availability averaging 94.2% and copper production of 6.8 million pounds for the month of September. Mine production was 17.7 million pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver during the three months of operations ended September 30, 2013. This brought production for the nine months to 47.6 million pounds of copper, 17,400 ounces of gold and 214,500 ounces of silver.

Production improvements can be attributed to the increased average mill throughput rate made possible with the short term secondary crushing strategies that have been implemented and improved in late July. These short term strategies include: utilizing an increased powder factor in the blasting of ore to create more fines; continuing with a contract portable crusher to crush plus 5,000 tpd of ore to minus two inches; and the introduction of the Company's own small portable crusher that was purchased and installed at the coarse ore stockpile during the quarter. The combination of these three activities is designed to create between 12,000 tpd and 13,000 tpd of minus two inch ore feed for the SAG mill. These short term measures have had positive results towards increasing mill throughput.