Mineral Park


The Mineral Park Mine is an open pit copper-molybdenum mine located in northwestern Arizona, approximately 74 miles southeast of Las Vegas, Nevada. The Duval Corporation commenced production at Mineral Park in 1963 as a 12,000 tpd mill and concentrate operation. Mineral Park was acquired by Cyprus Mining Company in 1986 and was converted to an SX-EW operation in 1994. Equatorial Mining of Australia purchased Mineral Park in 1997. In 1998 Equatorial increased the SX-EW capacity to 6000 gpm. Mercator purchased Mineral Park from Equatorial in 2003.

In 2007, the Company commenced construction of a 50,000 tpd mill facility at Mineral Park as a two staged expansion, the first Stage at 25,000 tpd and the second stage expanded to 50,000 tpd. During the second quarter of 2009, the Company completed the commissioning of and attained commercial production of the first stage of the 25,000 tpd mill. Mineral Park produces copper, molybdenum and silver in concentrates and copper by SX/EX leach extraction, and currently has an estimated 25 year mine life based on the proven and probable mineral reserves. Management's plan for Mineral Park is focused on a significant increase in average annual production to 56.4 million lbs of copper per year, the addition of 10.3 million lbs of molybdenum and 600,000 ounces of silver per year over the first 10 years of the 25 year mine life.Mineral Park has a significant measured and indicated resource base which is not currently included in the mine plan, which may extend the mine life.Further, the deposit is open at depth.

Mercator commissioned and received a preliminary feasibility study in September 2006, which was subsequently updated in December 2006, supporting the two stage expansion at Mineral Park with the construction of a 50,000 ton per day milling operation.

Stage I was commissioned and the Company achieved commercial production in the second quarter of 2009, with a production capacity of 25,000 tons of ore per day through the mill.Stage II of the expansion, increasing to 50,000 tons per day of ore through the mill is expected to come on stream in late 2010.

As a result of constructing the milling operation, Mineral Park is producing copper-silver and molybdenum concentrates in addition to the current SX-EW copper production.

Investment highlights of Mineral Park include:

  • The project is fully permitted including the expansion;
  • 25 year Life of Mine production of approximately 1.1 billion lbs of copper, 257.5 million lbs of molybdenum and 11.7 million ounces of silver*;
  • Short ore and waste hauls; the new milling facility is being built in the centre of the pit;
  • Extremely low Life of Mine strip ration of 0.18 to 1
  • High metallurgical recoveries;
  • The project is profitable at life of mine base case metals prices of US$1.53 /lb Copper, US$10.16 /lb Molybdenum and US$7.50 /oz Silver and extremely economically robust at current prices;
  • Average of US$55 million in operating cash flow per year after taxes during the first 10 years of operations at base case metals prices;
  • Mercator has a highly experienced operating team.

* Metal Prices used for calculation of reserves and payable production were US$1.40 Cu, US$7.50 Mo, and US$7.50 Ag

 

Reserves and Resources

Please examine our December 2006 updated Reserve And Resource Estimate Tables.

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