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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. The
Johnson Camp property also includes
a decorative and structural stone
operation which produces landscape
and aggregate rock from the
overburden stockpiles at the Johnson
Camp Mine. The Company currently
leases this landscape and aggregate
rock operation to JC Rock, LLC in
exchange for a sliding scale
royalty. The Company plans on taking
over the landscape and aggregate
rock operation through its
subsidiary, Cochise Aggregates and
Materials, Inc., within the first
year following the reactivation of
the Johnson Camp Mine.
 Based on current reserves the
Johnson Camp is expected to produce
25 million pounds of copper cathodes
annually over a mine life of 16
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.
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Reserves – Johnson Camp Mine |
Reserves(1 ) |
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Description |
Tons (thousands) |
Grade
(% Cu) |
Stripping
Ratio |
|
Proven Reserves |
54,977 |
0.338 |
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Probable Reserves |
18,410 |
0.327 |
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Total |
73,387 |
0.335 |
0.66 |
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(1) |
- The ore reserves
were based upon a
feasibility study
prepared by Bikerman
Engineering & Technology
Associates, Inc. dated
September 2007 which was
prepared in accordance
with Industry Guide 7 of
the Securities Act of
1933, as amended, and
are also in accordance
with the Canadian
Institute of Mining,
Metallurgy and Petroleum
(CIM) guidelines.
- The reserves as
stated are an estimate
of what can be
economically and legally
recovered from the mine
and as such incorporate
losses for dilution and
mining recovery.
- Reserves are based
on a copper price of
$1.50/lb and on total
copper assays.
- Reserves are based
on operating costs
estimated as of the
second quarter of 2007.
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. |
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