While Teck's decision is disappointing, it is not a serious hurdle to the eventual development of Petaquilla. The Study estimates that the proven and probable mineable reserves for the Petaquilla Project total 1.1 billion tonnes. The total recoverable payable metal content contained in these reserves is at least 9.4 billion pounds of copper, 1.37 million ounces of gold, 24.1 million ounces of silver and 131.1 million pounds of molybdenum, not including the contained metal in the low grade stockpile. The effect of milling the additional mineable reserves contained in the low grade stockpile of 130 million tonnes was not included in the Study's financial analyses. The Study also examines, as an alternate case, a number of opportunities which are not included in its main financial analysis.
Discussions are ongoing with power suppliers to examine alternate power supply options.
Teck has advised Adrian that it will continue to pursue the opportunities for the reduction of initial and ongoing capital costs identified in the Study in an effort to reduce any further delays in the development of the Petaquilla project. The mineable reserves outlined in the Study represent only a part of Petaquilla's ultimate potential. Under the Petaquilla Shareholders Agreement, in one year's time Teck must again make an election whether or not to proceed with the development of Petaquilla. This bond takes the form of a letter of credit, jointly guaranteed by Adrian, Teck and Inmet.