Metric Tonnes millions Copper % Molybdenum % Contained Copper M lbs Contained Molybdenum M lbs Measured (M) 660.4 0.34 0.008 5,014.3 119.4 Indicated (I) 902.5 0.28 0.006 5,491.8 123.4 Total MI 1,563.0 0.30 0.007 10,506 242.8 Inferred 58.2 0.23 0.005 298.5 6.8 1. Mineral Resources are reported inclusive of Mineral Reserves. 2. Totals may not sum exactly due to rounding.

The March 2014 Mineral Resource was estimated by Kirkham Geosystems Ltd. The updated Mineral Resource statement, based on additional drill hole information not included in the previous Mineral Resource Estimate, increased the Mineral Resource by 75.0 million tonnes from the last Mineral Resource Estimate completed in December 2013. The Mineral Resource Estimate includes the Mineral Reserve.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resource Estimates do not account for mineability, selectivity, mining loss and dilution. These Mineral Resource Estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that these Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves, once economic considerations are applied.

Mineral Reserves

The Mineral Reserve evaluation is constrained by the permitted capacity of existing tailings facilities, thereby limiting the mine life to 12.3 years. The Mineral Reserve was developed by tabulating the contained measured and indicated (proven and probable) material inside of the designed pit at the mill cut-off grades.

Mineral Reserve Estimate, January 1, 2014^1,2,3

align="left">Classificationvalign="bottom" align="center">Ore M tonnesvalign="bottom" align="center">Cu %valign="bottom" align="center">Moly %valign="bottom" align="center">Contained Copper M lbs align="center">218.97 align="center">0.33align="center">0.008 align="center">1,593.1 align="center">13.25 align="center">0.33align="center">0.008

				Contained Molybdenum M lbs
Proven
		38.6
Probable

align="center">96.4 2.3

Proven + Probable

align="center">232.22 align="center">0.33 align="center">0.008 align="center">1,689.5 41.0 1. Economic inputs to the block model were $2.75 per pound copper, mining $2.02 per tonne moved, mill $5.50 per tonne processed, G $1.65 per tonne processed and an average copper recovery of 88%. 2. Cut-off Grade -- 0.18% Cu 2014-2022, excess ore below 0.20% Cu was stockpiled for processing in 2025-2026. An internal cut-off grade of 0.17% Cu was applied in 2023-2025. 3. QP - John Marek, Independent Mining Consultants Inc.

The mine design was completed using standard open pit assumptions and slope design angles as defined by geotechnical consultants.

Mine Production Schedule

The PV2 project will extend production at the Pinto Valley Mine to 2026 from the BHP Billiton Ltd. (BHPB) published Mineral Reserve which was being mined under a plan that operated until 2018. Mine production will increase from 22.6 million metric tonnes in 2014 to approximately 42.3 million metric tonnes in 2016 to 2019 and then decrease through to 2025. The PV2 LOM strip ratio is 0.65.

Pinto Valley Mine Schedule _blank>0> Click to enlarge

Low grade ore (0.18-0.20% copper) will be stockpiled from 2014 to 2022 for planned processing in 2025 and 2026. In 2023 to 2025 a breakeven cut-off grade of 0.17% copper is used. Material grading 0.10% to 0.18% copper (leach) will be stockpiled and leached. The leach solution will be sent to the existing SX/EW plant for the production of copper cathode. Waste material below 0.10% copper will be stored separately.

Ore production in the PV2 PFS is constrained, first by the permitted capacity of the tailings dam, and eventually would become further constrained by the surface ownership. There is a significant amount of additional Mineral Resource that could potentially be mined if the constraints were removed.

The PFS has identified the need for additional mining equipment from 2014 to 2017 to meet the increased production requirements, costing approximately $48 million.

Major Mining Equipment

Additional auxiliary fleet will also need to be purchased, which is included in the capital estimate.

Processing

Ore feed to the mill is planned to continue at 50,000 metric tonnes per day, or 18.2 million metric tonnes per year for the first two years followed by an increase to 52,000 metric tonnes per day or 18.9 million metric tonnes per year for the remaining life of the mine. Low grade ore that will be stockpiled earlier in the mine life will be processed in 2025 and 2026. Metal recoveries average 88.0% for copper and 42.8% for molybdenum.

Mill Ore

	Current Fleet	Additional Fleet
Drills	2	1
Cat 994 Loaders	3	-
Hydraulic Shovel	-	2
Cat 789	15	4

colspan="2" align="center">Yearalign="center">Cut-off align="center">Ore align="center">Cu align="center">Moly align="center">Cu% align="center">M tonnes align="center">%

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.