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Mineral Park Mine
Overview
The Mineral Park Mine is a open pit copper mine with an estimated 23 year life (as at January 2011), currently producing copper, molybdenum and silver in concentrates and cathode copper by solvent extraction/electrotwinning ("SX/EW") leach extraction. Through a two-phase expansion program, Mercator completed in the third quarter 2011 the Phase II expansion to 50,000 tons per day of throughput.
The Mineral Park operation provides investors with exposure to a cash flow -positive operation and near term exposure to increased copper, molybdenum and silver production at one of the largest molybdenum/copper milling operations in North America. Mineral Park is the flagship cornerstone operation for Mercator.
The Mineral Park Mine is an open pit copper-molybdenum mine located in northwestern Arizona, approximately 120 kilometres southeast of Las Vegas, Nevada.
Investment highlights of Mineral Park include:
- The project is fully permitted;
- 23 year remaining life of mine (as at January 2011)
- Recoverable production of approximately 1.0 billion lbs of copper, 249 million lbs of molybdenum and 14.1 million ounces of silver*;
- Short ore and waste hauls; the milling facility is in the center of the pit;
- Low life-of-mine strip ratio of 0.18 to 1 *
- High metallurgical recoveries (80% for copper and 75% for molybdenum)*;
- Mercator has a highly experienced operating team at Mineral Park.
History
The Mineral Park Mine has a long history of copper production. The Duval Corporation commenced production at Mineral Park in 1963 as a 12,000 ton per day ("tpd") mill and concentrate operation. Mineral Park was acquired by Cyprus Mining Company in 1986 and was converted to an SX-EW operation in 1995. 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.
Mineral Park produces copper, molybdenum and silver in concentrates and cathode copper by SX/EW leach extraction, and currently has an estimated 23 year mine life based on the Proven and Probable Mineral Reserves. 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 phase expansion at Mineral Park with the construction of a 50,000 tpd milling operation.
In 2007, the Company commenced construction of the 50,000 tpd mill facility at Mineral Park as a two phase expansion, the first phase at 25,000 tpd and the second phase to 50,000 tpd. During the second quarter of 2009, the Company completed the commissioning of and attained commercial production of the first phase of the 25,000 tpd mill. Phase II of the expansion, increasing to 50,000 tpd was completed in the third quarter 2011.
As a result of constructing the milling operation, Mineral Park is producing copper, molybdenum and silver concentrates in addition to the existing SX-EW copper production.
With the successful commissioning of Phase II on September 30, 2011, the Company released a five-year operating plan as follows:
Five-year Operating Plan Forecast (as at October 2011), with 2012 guidance recently updated (January 2012)
| Production | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|
| Copper in concentrate (million lbs) | 46-51 | 54.0 | 45.9 | 42.4 | 38.0 | |
| Cathode copper (million lbs) | 3.6 | 4.0 | 4.2 | 4.9 | 6.3 | |
| Total Copper (million lbs) | 49-54 | 58.0 | 50.1 | 47.3 | 44.3 | |
| Molybdenum in concentrate (million lbs) | 9-10 | 11.4 | 11.4 | 12.0 | 13.6 | |
| Silver (000 ounces) | 455 | 461.7 | 562.1 | 250.9 | 734.7 | |
| Copper equivalent(1) (million lbs) | 90 -100 | 126.4 | 118.6 | 119.3 | 125.5 | |
| Milled tons (million tons) | 18.8 | 20.1 | 20.1 | 20.1 | 20.1 | |
| Copper grade (%) | 0.17% | 0.17% | 0.14% | 0.13% | 0.12% | |
| Molybdenum grade (%) | 0.037% | 0.038% | 0.038% | 0.040% | 0.045% | |
| Copper recoveries (%) | 80.0% | 80.0% | 80.0% | 80.0% | 80.0% | |
| Molybdenum recoveries (%) | 75.0% | 75.0% | 75.0% | 75.0% | 75.0% |
Reserves/Resources
The following table summarizes Proven and Probable Mineral Reserves by destination (as at January 2011):
Mineral Park Mine Reserves
| Resource Class |
Tons (million) |
Copper % |
Molybdenum % |
Silver (opt) |
Copper (m lbs) |
Molybdenum (m lbs) |
Silver (m oz) |
|---|---|---|---|---|---|---|---|
| Mill | |||||||
| Proven | 333.5 | 0.15 | 0.041 | 0.079 | 988.1 | 271.3 | 26.4 |
| Probable | 84.6 | 0.11 | 0.036 | 0.085 | 179.1 | 60.8 | 7.2 |
| TOTAL | 418.1 | 0.14 | 0.040 | 0.080 | 1,167.2 | 332.1 | 33.6 |
| Leach | |||||||
| Proven | 74.4 | 0.07 | 104.3 | ||||
| Probable | - | - | - | ||||
| TOTAL | 74.4 | 0.07 | 104.3 | ||||
Notes:
- Reserves calculated in accordance with CIM Guidelines
- Metal Prices used for calculation of reserves were $1.40 Cu, $7.50 Mo, and $7.50 Ag
- Metallurgical recoveries are 82% for supergene Cu, 80% for hypogene Cu, 75% for supergene Mo, 76% for hypogene Mo, and 70% for leach Cu
- Cut‐off grades used were variable, but based on breakeven cut‐offs of 0.283% CuEquiv for supergene & 0.237% CuEquiv for hypogene mineralization
- Moly Factor ("MF") = [((Mo_Price‐FS&R Cost) * Mo_Rec) / ((Cu_Price‐FS&R Cost) * Cu_Rec)]
- Copper Equivalent ("CuEquiv") = Cu% + Mo%*[MF]
- Some figures may not foot due to rounding
- Mining recovery is estimated at 100% and dilution is nil.
Technical Report
Preliminary Feasibility Study on Phase I & Phase II
Copper-Moly Milling Expansion
Mineral Park Mine
Mohave County, Arizona
December 29, 2006
Click here to view PDF (14MB)
Photo Gallery
Click to view photo galleryGary Simmerman, BSc, Mining Eng. FAusIMM, Mercator's Vice-President Mineral Park Mine, a Qualified Person as defined by NI 43-101 supervised the preparation of and verified and approved the technical information contained on this website in respect of the Mineral Park Mine.
Last updated: January 23, 2012
