The Johnson Camp Mine
The
Johnson Camp property is located 65
miles east of Tucson, Arizona and is
100% owned by the Company. The
property includes the Johnson Camp
mine which is an existing open pit
copper mine and production facility
that uses the
solvent extraction,
electrowinning (“SX-EW) process.
The Johnson Camp Mine includes two
existing open pits, the Burro and
Copper Chief bulk mining pits.
 Based on current reserves the
Johnson Camp is expected to produce
25 million pounds of copper cathodes
annually over a mine life of 13
years. Additionally, the Company
commenced further exploratory
drilling on the Johnson Camp
property in mid-July 2007 and has
completed the first phase of
preliminary exploratory drilling
around the periphery of the existing
boundaries of the Burro and Copper
Chief pits, but is awaiting assay
results on the samples obtained from
the drilling program.
A summary of the Johnson Camp proven
and probable reserves as of December
31, 2010 are presented in the table
below. Further details about the
reserves on the Johnson Camp
property can be found in the
Technical Report.
|
Johnson Camp Mine
|
|
Summary of Proven and
Probable Reserves
|
|
|
|
|
|
|
|
Copper
|
Copper
|
|
|
Tons Of Ore
|
Ore Grade
|
Ore Grade
|
Contained
|
Recoverable
|
|
Crush Leach
|
(mm)1
|
TCu(%Cu)
|
ASCu(%CU)
|
(mm lb)
|
(mm lb)
|
|
Proven
|
43.7
|
0.31
|
0.17
|
274
|
152
|
|
Probable
|
10.6
|
0.28
|
0.15
|
60
|
33
|
|
Total
|
54.3
|
0.31
|
0.17
|
334
|
184
|
|
|
|
|
|
|
|
|
ROM Leach
|
|
|
|
|
|
|
Proven
|
48.1
|
0.29
|
0.11
|
278
|
108
|
|
Probable
|
8.8
|
0.25
|
0.11
|
44
|
19
|
|
Total
|
56.9
|
0.28
|
0.11
|
322
|
127
|
|
|
|
|
|
|
|
|
Total Ore
|
|
|
|
|
|
|
Proven
|
91.9
|
0.30
|
0.15
|
552
|
260
|
|
Probable
|
19.4
|
0.27
|
0.14
|
103
|
51
|
|
Total
|
111.3
|
0.29
|
0.15
|
656
|
311
|
Notes:
-
The ore reserves were
estimated in accordance
with Industry Guide 7 of
the Securities and
Exchange Commission
(sometimes referred to
in this annual report as
the “SEC”) and CIM
Guidelines.
-
The
actual tonnage and grade
of reserves are
generally expected to be
within 90–95% of the
estimate for proven
reserves, and 70–80% for
probable reserves.
-
Reserves are based on a
copper price of $2.50/lb
and on total copper
assays.
-
Reserve
estimates were based on
operating costs
estimated as of the
second quarter of 2010.
-
The internal cutoff
grade used in the
reserve analysis was
0.04 – 0.08 percent acid
soluble copper
(depending on rock
type). All
inferred resource blocks
were treated as waste,
regardless of their
estimated copper grade
Other
Mineralized Material
In
addition to the above
mentioned reserves,
mineralized material is
contained in the Burro and
Copper Chief deposits at the
Johnson Camp property and
was estimated using the
guidelines established in,
and is compliant with,
Canadian NI 43-101
standards. In addition,
there are numerous other
prospects of mineralized
material that remain to be
explored and tested. |
