Three Valley Copper Suspends Mining Operations and Provides Strategic Review Update

TORONTO, Jan. 24, 2022 (GLOBE NEWSWIRE) -- (TSXV: TVC) (OTCQB: TVCCF) Three Valley Copper Corp. (“Three Valley Copper” or the “Company”) provides a corporate and operating update on its 95.1% owned Minera Tres Valles (“MTV”) property near Salamanca, Region de Coquimbo, Chile.

Operations Update

        Don Gabriel

The underperformance of Don Gabriel, MTV’s open pit operation and primary source of ore for 2021 and 2022, has continued. The Company’s previous belief was that this underperformance was temporary in nature, but Don Gabriel has unfortunately continued to deliver less ore tonnes at lower grades than forecasted. This shortfall has called into question the future economics of the Don Gabriel open pit and the immediate impact to MTV is materially lower current and forecasted cash inflows and revenues resulting in a deteriorating liquidity position.

MTV has prudently decided to temporarily suspend operations and has undertaken to demobilize its contractors and place Don Gabriel into care and maintenance until management and the technical teams have completed their analysis of Don Gabriel and alternatives to the current mine plan.

        Papomono

The initial construction of the Papomono block caving mine has been completed and has reached the stage where the caving operation can commence. This timetable is consistent with what has been reported previously and construction costs are in line with forecasted costs. However, MTV has chosen to temporarily halt the start of the block caving operation as the expected cash flows are not sufficient to fully support the ramp-up of Papomono during 2022. Increasing production input costs and the continued underperformance of its open pit operations at Don Gabriel has significantly impacted MTV’s ability to generate the necessary cash flows to fund the planned ramp-up of the Papomono underground mine. MTV’s management and technical teams have concluded that in the absence of taking this action, there would be a significant risk that Papomono would be destabilized if the caving operation was to start without MTV having the funds to continue its orderly ramp-up of production.