Baja revises resource figure

Infill drilling for the Boleo final feasibility study has increased resources on the copper project for Baja Mining (BAJ-T).

The new measured and indicated resource is 277 million tonnes grading 0.7% copper, 0.06% cobalt, 0.62% zinc and 3% manganese. That figure supersedes a 2006 calculation of 233 million tonnes at 0.79% copper, 0.06% cobalt, 0.52% zinc and 2.75% manganese.

The new figure moved inferred tonnage into indicated resources, but added inferred tonnage as well. The new inferred resource is 254 million tonnes, at 0.39% copper, 0.04% cobalt, 0.63% zinc and 2.65% manganese, an increase of about 40 million tonnes.

The estimates used a cutoff grade of 0.5% copper-equivalent, neglecting any contribution from manganese. The equivalency formula assumed prices of US$1.50 per lb. (US$3,300 per tonne) for copper, US$15 per lb. for cobalt, and US$1.20 per lb. (US$2,640 per tonne) for zinc.

Consultants are currently working on a mixed open-pit and underground mining plan for the deposit, in Mexico’s state of Baja California Sur. A final feasibility study should be out in April and the company expects to line up financing by June.