Wallbridge Mining said its board has approved the production decision for the Broken Hammer copper and platinum group metal project at Sudbury in Ontario, Canada.
The project is an open pit operation with plans to extract about 195,000t of in-pit copper, nickel and platinum group elements mineral reserves.
The ore will be transported to Northern Sun's Redstone facility in Timmins, Ontario, after which the concentrates will be under contract with a nearby copper smelter.
Wallbridge said the definitive agreement with Northern Sun is to be finalised soon with construction and production anticipated to commence in April.
The open pit mining stage is anticipated to be completed within ten to 12 months at an average daily rate of about 800t of ore per day.
Wallbridge Mining president and CEO Marz Kord said that, based on the results of the 2011 bulk sample and the 2012 pre-feasibility study as well as the contract mining and milling and smelting terms which have now been secured, the Broken Hammer project has the potential to not only generate positive cashflow in the near future, but is also open at depth and to the west leaving the possibility of extending its mine life."
Kord noted that the company's annual exploration activities at Wisner Properties, where it has already initiated a geophysics and drilling programme for possible extensions as well as new targets, surrounds the Broken Hammer deposit.
Wallbridge owns a large package of properties in Sudbury, including Broken Hammer and exploration joint ventures with Lonmin, Impala Platinum and Glencore.