Minto Metals Corp (TSX-V:MNTO) revealed operational results for the 2021 year that show a 46% increase in copper production from its Minto mine in Yukon compared to 2020 levels.
The Whitehorse, Yukon-based firm said the Minto operation produced 26 million pounds of payable copper throughout the 12-month period to end December 31, 2021, compared to 17.8 million pounds last year.
Minto delivered an average of 3,000 tonnes per day of ore processed through the mill and 6.1 million pounds of payable copper in November and December, which Minto Metals called a “strong finish” to the year.
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The mine also produced 11,783 ounces of gold and 135, 354 ounces of silver, which was a 54% and 101% increase over 2020 levels, respectively.
CEO Chris Stewart hailed the “encouraging” performance and credited the “drive and passion” of Minto’s employees.
"Our operation is showing positive momentum thanks to the efforts of our employees and contractors at our Minto mine located in the central Yukon,” Stewart said in a statement.
"From the mine's performance to the enhancements we have seen in our milling operation, we are pleased with the production growth in 2021. “All indicators are giving us reasons to be encouraged about the bright future ahead."
2022 guidance
As for its 2022 guidance, Minto said it plans to operate the mill at an average throughput of 3,000 tonnes per day for the first half of 2022 and 3,250 tonnes per day during the second half and ultimately ramp up to the permitted capacity of 4,200 tonnes per day.
In total, Minto is targeting between 28 million and 31 million pounds of payable copper production per year at a cash cost of between US$2.70 to $2.90 per pound.
The firm is budgeting around C$13 million to develop new areas of the mine, and is expecting to spend between C$6 million to $9 million on exploration throughout the year.
It also transitioned from contract to in-house mining at the beginning of the year, for the first time in the mine’s history of operations.
"This change signals a significant investment in our people and continues our cultural shift to delivering consistent, improved performance across the business and we believe our new employees, along with our current employees, are motivated to safely deliver on our targets for 2022,” Stewart added.
Amended agreement with Capstone Mining
Separately, the company said it reached an agreement with Capstone Mining Corp (TSX:CS) to defer paying part of Minto's purchase price obligation.
Under an agreement between Pembridge and Minto announced on December 1, 2021, payments to Capstone of the purchase price are to be made by Minto. Of the total purchase price of US$20 million, US$5 million was paid by Minto on March 30, 2021, and the remaining US$15 million (with the contingent requirements having been met) was due in December 2021.
As per the new agreement with Capstone, the amount to be paid in December 2021 was adjusted to US$10 million, which was paid to Capstone before December 31, 2021, and the remaining US$5 million is now payable on January 15, 2023.
The Minto mine has been in operation since 2007 with underground mining commencing in 2014. Approximately 500 million pounds of copper have been produced from the Minto mine to date.
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