Our principal asset, the Johnson Camp Mine, is a copper mine and production facility located 65 miles east of Tucson, Arizona. The property consists of 64 patented lode mining claims (872 acres), 88 unpatented claims (1,340 acres) and fee simple lands (511 acres), totalling 2,723 acres. The on-site copper production facility includes a 4,600 gallon per minute solvent extraction plant and tank farm, a 52,000 lb/day capacity electrowinning plant with 74 cells, 8 million gallons of solution storage and other related equipment.

We acquired the Johnson Camp property in June, 1999 from Arimetco, Inc, but it has had a long history of development and mining dating back to the early 1880s. A number of underground mines operated in the 1880-1955 period, and open pit mining occurred during the 1975-1996 period. From 1975 to 2003, the Johnson Camp Mine produced copper using the solvent extraction, electrowinning (SX-EW) process. The Johnson Camp Mine was placed on a care and maintenance program in August 2003 due to weak market conditions for copper at that time. During 2003, we completed the environmental remediation of two solution ponds and filed our Aquifer Protection Permit application with the Arizona Department of Environmental Quality.

Our near term objective is to reactivate the Johnson Camp Mine and we are currently exploring financing alternatives to enable us to do so. We have a feasibility study containing a mine plan for the Johnson Camp Mine that was completed by The Winters Company in March 2000. The feasibility study was updated in October 2005 by Winters, Dorsey and Company, LLC, and includes an updated economic assessment of the Johnson Camp Mine based on current capital and operating cost estimates, and updated copper prices.