The option agreement with BHP Copper is unaffected by this declaration. TFM holds the mining concessions. The sediment hosted copper-cobalt deposits have been known and studied in detail since the early 1900's. The deposits have never been exploited on a commercial basis although substantial investigations and improvements have been made to the property. These deposits were to have been the site of mining operations in the early 1970's and considerable sums were expended on the property between 1971 and 1976 on exploration, various studies, equipment and improvements.
Substantial improvements remain on-site.
A main highway, rail line and power line pass through the property. The deposits remain under-explored. Stripping ratios are initially low, about 3 to 1, but will increase gradually as the open pits become deeper. Underground methods are applicable for the deeper sulphide ores. Conventional grinding and leaching with low acid consumption.