RESOURCES, DILUTED at 0.25% Cu Grade Cut-off	COPPER	GOLD Credits
Estimated in-pit Mineral Resource [37.3 M tonnes]	405.6 M lbs.	416,000 oz
Estimated net recoverable metal	358.0 M lbs.	385,900 oz.
Average Annual Production	31.5 M lbs.	33,900 oz.
Assumptions: Base Case metal prices	$ 2.50 per lb.	$ 825 per oz.
Life of mine	11.4 years
Average strip ratio	1.78

CAPITAL COSTS FOR LIFE OF MINE:

CAPITAL COST ESTIMATE	ELEMENTS	ESTIMATED COSTS
Pre-Production	Permits, EIS & community, moving adjacent road and power line, SX-EW and heap leach plants, tailings storage facility, project design	$ 30 M
Mill	Floatation plant, tailings storage lifts, closure	$ 77 M
Sustaining	Heap Leach Plant and Floatation Plant	$ 4 M
Contingency	10%	$ 11 M
		$ 122 M

ECONOMIC RESULTS USING BASE CASE METAL PRICES
Cumulative gross copper revenues	$ 2.50 per lb.	358.0 M lbs.	$ 895 M
Cumulative gross gold credits	$ 825 per oz.	385,900 oz	$ 318 M
			$ 1,213 M
Royalties			$ 35 M
Cumulative operating costs			$ 855 M
Cumulative operating profit			$ 323 M
Life of mine capital costs			$ 122 M
Net cashflow earnings before income tax, depreciation and amortization [“EBITDA”]			$ 201 M
EBITDA NPV at 5% discount			$ 117 M
Internal Rate of Return (“IRR”)			37%
EBITDA payback period of pre-production costs from heap leaching revenues			1.5 years
EBITDA payback period including deferred capital for floatation plant start in year 3 & 4			4.9 years

HIGHLIGHTS OF THE PROJECT:

• A low risk, low capital expenditure Project with robust economics and good blue sky potential; majority of capital expenditures deferred to Years 3 and 4 which limits risk exposure to currency and metal price fluctuations.
• Open pit, heap leach operation for first 3.5 years; transitioning to a conventional floatation mill thereafter;
• Internal Rate of Return of 37% at Base Case $2.50 Cu and $825 Au; and
• Payback period of pre-production costs from early heap leaching production revenues of 1.5 years.

• At a copper price of US$3 per pound and a gold price of US$990 per Troy ounce the undiscounted, EBITDA NPV of the Project increases to $410 million and the EBITDA IRR increases to 66%.
• Mineralized zones remain partially open at depth and on strike;
• Scoping Study sensitivities indicate that the cut-off should be reduced to 0.2% Cu;
• Pit slopes are conservatively designed;
• Silver and molybdenum credits were not included in the Study.
• The Company is convinced that the gold values are under reported as a consequence of non 43-101 compliant data not being included in the resource calculation (ie., early Asarco drilling and Cambior trenches);
• Mining costs are predicated on a contractor operated, new, leased mine fleet.
• Metallurgical recoveries have not been optimized.

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