La Balsa
Introduction & Location
The La Balsa project is a 100% owned, near-term copper production asset located in the State of Michoacan, Mexico. The property encompasses over 20 square kilometres of mineral concessions located 14 kilometres inland from the industrial port city of Lazaro Cardenas. The La Balsa copper mine is targeting initial copper production in the late summer of 2009.
In early 2008, a NI43-101 Technical Report on the La Balsa copper project was completed by Behre Dolbear, an internationally respected independent engineering firm. The report focused on the three initial deposits (La Virgen, Iguana Prieta and Playa Azul), and identified a mineral resource of +190,000,000 lbs of copper.
Production will occur in two phases: (1) SXEW soluble copper and (2) near-surface sulphide copper. Cash flow from the initial production will be utilized to develop and implement the second phase of production. Suspected deeper, large-scale porphyry copper mineralization conceptually might support a third phase of production.
Many characteristics of the La Balsa project are unusual, but three stand out: high grade, good continuity, and excellent infrastructure. An anticipated production grade of approximately 1.0% soluble copper is several times the grade of some mines currently in production. The continuity of the deposits and proximity to the surface allow them to be mined with a minimum of stripping and cost. The infrastructure of the project, the combination of power, port and rail, makes transportation costs of materials in and out of the mine much lower than elsewhere in the world.
