Low copper prices force Similco closure

Once again, the Similco open-pit copper mine in southern British Columbia is forced to shut down as a result of weak copper prices.

Princeton Mining (PMC-T) plans to suspend operations in December, throwing 226 employees out of work.

The company has been unable to secure forward sales for its 1997 copper production at an attractive price. The mine is a high-cost producer, in the US$1-per-lb. range. Its 1996 production was hedged at above US$1 per lb.

A return to production will depend on two factors: an improvement of copper prices and the success of the current 40,000-ft. drill program. To date, 11 holes comprising 5,000 ft. have tested the Alabama area, returning values in the range of 0.31-0.55% copper and 0.007 oz. gold. The deposit is estimated to contain a resource of 29 million tons grading 0.352% copper and 0.005 oz.

gold.