A High Grade Open Pit Copper-molybdenum Project

Location & Setting

  • Sonora State, Mexico
  • Located near Santa Ana, ~200 km southeast of Hermosillo (pop. 800K)
  • Property accessible via paved Federal Highway 16 connecting Hermosillo and Chihuahua City
  • Close to Guaymas shipping port with concentrate blending facilities
  • Excellent site infrastructure

Mine Plan / Stage
  • PEA completed in 2008 and re-issued in 2012
  • Construction permits issued in 2009, updates ongoing

Los Verdes Background
The Los Verdes project is comprised of 18 concessions covering 7,760 hectares located in Sonora Mexico, approximately 200 kilometers east-southeast of the capital city of Hermosillo. 

Utilizing only the project’s South Deposit, the most recent PEA report was based on a resource estimate that contained a total resource (measured + indicated) of 7.7 million tonnes – 0.64% copper, 0.12% molybdenum, 0.07% tungsten, 4.75 g/t silver. At a mine production rate of 3,000 tonnes per day and an initial capital cost of $92 million, the project demonstrated pre-tax net cash flows of $163 million and an internal rate of return of 34% (see Company’s press release dated January 10, 2012).

In 2011, Minera Alamos acquired the North Deposit area (previously known as Potreritos) located approximately 2 km north of the Los Verdes property limits. Historic estimates for the North Deposit include 1.4 million tonnes of indicated resources (0.47% Cu / 0.12% Mo) and 0.8 million tonnes of inferred resources (0.22% Cu / 0.033% Mo) (see Company’s press release dated October 27, 2011).

The Company is currently considering strategic alternatives for Los Verdes based on current industry/market expectations and a resizing of the planned operations.