Peru Copper inks deal to add ground near Toromocho

VANCOUVER A definitive agreement with a privately held Peruvian company gives Peru Copper (PCR-T, CUP-X)) rights to acquire concessions in the Morococha mining district, including 60 hectares directly adjacent to its proposed pit at the Toromocho project.

The recent agreement with Austria Duvaz gives Peru Copper an exclusive option to acquire the Morococha concessions and related assets, including a processing plant and workers’ housing, subject to a six-month due diligence period. The land package covers 225 hectares in the district, with 60 hectares adjacent to concessions encompassing the proposed Toromocho pit.

Executive Chairman David Lowell describes the concessions as “excellent exploration targets,” given their close proximity to the Toromocho deposit. Concessions south of Toromocho will also allow the company to push the proposed pit back-slopes further to the south to access additional resources not presently in the mine plan.

Based on a recent pre-feasibility study, Peru Copper envisions an open-pit mine capable of producing an average of 601 million lbs. copper and 11 million lbs. of molybdenum annually, for at least 21 years. Pre-tax operating costs are estimated to be US$0.51 per lb. of copper produced over the life of the mine. After-tax costs, including government royalties, are estimated to be US$0.68 per lb. copper.

Capital costs are estimated at US$1.54 billion, based on a daily milling production rate of 150,000 tonnes per day.

Proven and probable reserves total 1.26 billion tonnes grading 0.53% copper, 0.018% molybdenum and 7.16 grams silver per tonne, while measured and indicated resource add another 715.3 million tonnes at 0.37% copper, 0.02% moly, and 6.55 grams silver.