SANTO TOMAS PORPHYRY COPPER PROJECT
Major parameters scoped in 1994 Prefeasibility Study by Bateman Engineering- 60,000, 90,000 and 120,000 MTPD productionratesstudied. SupportingmetallurgicaltestworkfromMountainStatesR&DInternational,Inc.andresource estimates from Mintec, Inc.
• Favorable Deposit Characteristics; Size and low strip ratio: The >900 million tonne deposit, containing approximately 8 billion pounds (3.6 million Tonnes) of copper and equivalent, exposed at surface, is comprised of fracture and disseminated Cu & Mo sulphides, with significant Ag & Au. The central part of the North Zone occurs under a ridge, minimizing the stripping ratio.
• Metallurgy: Ore responds favorably to conventional flotation, common flotation reagents and a 200-mesh grind - 94.83 % copper recovery. A 26 to 28 % copper concentrate with no deleterious elements is likely with minimal concentrate cleaning.
• Established Infrastructure: Adjacent to the Chihuahua-Pacific Railway (35 km), federal highway (6 km), and upgraded Pacific Ocean seaport of Topolobampo (160 km from proposed mill site). Power and water are available locally.
• Favourable Jurisdiction: Mexico is a mining powerhouse, recognized as a Top Five jurisdiction, (Behre Dolbear, “Where to invest in Mining,” 2015)
• Positive NPV: No major risks were identified and the study yielded a positive Net Present Value
• Potential to expand and improve grade: Resource in the North and South Zone was identified as “likely to increase in grade with additional exploration” (Bateman Engineering, 1994) The deposit remains open on strike to the North and South, down-dip to the West and to depth. 24 exploration holes drilled ended in ore grades. An estimated Inferred Resource of several hundred million Tonnes exists, is considered “waste” in conceptual pit and mine design, yet a significant portion of this can be expected to be ungraded to M&I resource, increasing mineable tonnage and lowering the strip ratio.
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