Boleo is a copper-cobalt-zinc-manganese project located near the town of Santa Rosalia in Baja California Sur, Mexico. Boleo is fully permitted and fully funded. Construction at Boleo re-commenced in November 2010. Copper production is targeted for early 2013.
Boleo was staked in 1992 and since then, as part of a Definitive Feasibility Study (DFS), two test mining programs, two process pilot campaigns, and a +38,000 metre in-fill drill program have been carried out. The DFS was completed in 2007 followed by a Technical Report update issued in March 2010.
Boleo Snapshot
| Ownership: | 70% Baja Mining, 30% Korean Consortium |
|---|---|
| Resource: |
Measured+Indicated 265Mt (of which P+P=85Mt) Inferred 160Mt |
| Deposit: | 7 flat-lying soft rock ore beds |
| Products: | Copper and cobalt metals, zinc sulphate and possibly manganese |
| Mining: | Underground (10,000 wt/d) + Open Cut |
| Access: | On the ocean and main highway from USA |
| Water: | All process (except electrowinning) to run on sea water |
| Power: | 42MW acid plant, 20M heavy fuel oil plant |
Boleo Economics(1)
| Capex | US $889M |
|---|---|
| Mine Life | 23 years |
| Net Cash Costs | Negative US$ 0.29/lb of Cu |
| After Tax NPV (8%) | US $1.3 Billion |
| After Tax IRR | 25.60% |
Y1-Y6
| Copper Grade | Above 2.00% |
|---|---|
| Avg Yr Production |
Cu 125Mlb, Co 3.7Mlb, Zn 55.8 Mlb Cu 56.7kt, Co 1.7kt, Zn 25.4kt |
|
After Tax Yr Avg Cash Flow |
US$ 300 M |
LIFE of MINE
| Copper Grade | 1.33% |
|---|---|
| Avg Yr Production |
Cu 84Mlb, Co 3.6Mlb, Zn 65.0Mlb Cu 38.1kt, Co 1.6kt, Zn 29.5kt |
| Revenue Distribution | Cu 66%, Co 25%, Zn 9% |
(1) Based on March 2010 Technical Report - Cu US $2.91/lb, Co US $26.85/lb. Zn US $0.53/lb
