NI43-101 Technical Report For Piedras Verdes

 

MEXICO CITY, MEXICO - Frontera Copper Corporation reported that it has filed an independent technical report which is compliant with Canadian National Instrument 43-101 (Mineral Project Disclosure Standards) and which updates operations and economic analyses of the Company's Piedras Verdes heap leach copper mine in Sonora State, Mexico.

As discussed in the Report, current pit designs and a mine plan forecast the leaching of 125.1 million tonnes (Mt) of ore at an average grade of 0.40% copper over a nine-year period. With copper recovery projected to average 61.7% annual production of approximately 70 million lbs of cathode copper is projected. The total mineralized material within the final pit design is 534 Mt, resulting in an overall strip ratio of 3.27:1. The run-of-mine ore tonnage placed on the leach pad varies by year based upon ore grade and metallurgical ore type. The rate of ore placement on the heap varies from 10.9 to 17.2 Mt per year. Between 2009 and 2024, when copper extraction is forecast to be completed, a total of 726.2 million lbs of copper will have been produced and sold (including existing inventory). The sustaining capital requirements for the mine over that period are estimated at $135 million excluding reclamation of some $27 million. (all monetary figures herein are US$)

The estimated average reported copper cash cost for the life-of-mine is $1.41/lb of cathode copper produced, including royalties. Using a copper price of $3.30 for 2010, $3.20 for 2011, $2.35 for 2012 and $2.00/lb onward, the mine returns a projected pre-tax net present value of $148M using a 12.5% discount rate. The Report assumes that the Company has been able to expend all capital expenditures and other operating expenses necessary to bring the mine to full operation during the forecast period. The Company continues to actively pursue recapitalization initiatives that would allow for the most productive operation of its business.

The company’s address is 14350 N. Frank Lloyd Wright Blvd, Suite 9, Scottsdale, AZ 85260, (480) 477-6500, fax: (480) 477-6688, email: [email protected].