| TSX:ML: | $0.59 |
Overview
Mercator Minerals Ltd has a triple track organic growth focus:
(1) Based on 2011 feasibility study, LOM assumptions of $2.75/lb Cu.
(2) Based on 2010 preliminary economic assessment, LOM assumptions of $15.00/lb Mo and $2.60/lb Cu.
Mineral Park Mine
Mercator owns 100% of the producing Mineral Park Mine, located in Kingman in northwestern Arizona, approximately 120 kilometres southeast of Las Vegas, Nevada.
Mineral Park with over 360 employees is a conventional open pit truck shovel mine that produces copper, molybdenum and silver. The mine has a 23-year life (as at January 2011) and in 2012 is projected to produce 42.6 million pounds of copper, 10.0 million pounds of molybdenum and over 546,000 ounces of silver. Over the next five years, the mine is expected to produce up to 125.5 million pounds of copper equivalents (1).
El Pilar Deposit
Mercator owns 100% of the El Pilar copper deposit which is located in the State of Sonora, Mexico, approximately 15 kilometres south of the AZ/MX border. The El Pilar property is situated in a highly prospective belt of porphyry copper deposits ranging from La Caridad in the south through to central Arizona in the north.
Mercator recently completed a NI 43-101 compliant feasibility study which supports the construction of a heap leach run-of-mine operation. Over its 12-year life, El Pilar could produce 73 million pounds of copper cathode per year. The feasibility study indicated a net present value (8% discount rate) of US$335.3 million or an internal rate of return of 35.7% with a 1.7 year pay-back. The company is in the process of updating the Nov 2011 feasibility study to further re-risk the project which could increase the project's NPV by as much as 29%. The updated feasibility study is expected Q2-2012.
El Creston Deposit
Mercator owns 100% of the El Creston molybdenum-copper deposit, which is located in the State of Sonora, Mexico, approximately 175 kilometres south of the US Border, 145 kilometers northeast of the city of Hermosillo near the village of Opodepe. Access to the El Creston property is excellent, via paved highways and 22 kilometres of all weather gravel road. In addition a custom molybdenum roaster is located at Cumpas 105 kilometres away.
A feasibility study is expected in 2H-2012.
(1) Copper equivalent calculated using a molybdenum/copper ratio of 5.98.
Gary Simmerman, BSc, Mining Eng. FAusIMM, Mercator's Vice-President Mineral Park Mine, a Qualified Person as defined by NI 43-101 supervised the preparation of and verified and approved the technical information contained on this website in respect of the Mineral Park Mine. Mike Broch, BSc, Geology, Msc, Economic Geology, FAusIMM, the Company's Vice-President Exploration, a Qualified Person as defined by NI 43-101, supervised the preparation of and verified and approved the technical information in respect of the El Pilar project contained on this website. Dave Visagie, P. Geo, the Company's Exploration Manager, a Qualified Person as defined by NI 43-101, supervised the preparation of and verified and approved the technical information in respect of the El Creston project contained on this website.
- increase the production of copper/molybdenum/silver at its 100% owned flagship operation, Mineral Park Mine near Kingman, Arizona, USA;
- develop its 100% owned company transforming El Pilar copper project located in Sonora Mexico; and
- develop its 100% owned El Creston molybdenum/copper deposit located in Sonora Mexico, which is only 140 kilometres south of the El Pilar.
| Mineral Park | El Pilar (1) | El Creston (2) | |
|---|---|---|---|
| Location | Arizona, USA | Sonora, Mexico | Sonora, Mexico |
| Ownership | 100% | 100% | 100% |
| Deposit Type | Cu-Mo Porphyry | Cu Porphyry | Mo-Cu Porphyry |
| Mining Method | Open-Pit | Open-Pit | Open-Pit |
| Mine Life | ~23 yrs | ~12 yrs | ~13 yrs |
| Processing | Flotation producing Cu, Mo and Ag cons | SX-EW processing | Flotation producing Cu and Mo cons |
| Production | Cu = 42.6m lbs Mo = 10m lb (2012 guidance) |
Cu = 73m lbs/yr | Cu = 16m lbs/yr Mo = 24m lbs/yr |
| Capital Cost ($M) | US$400 (complete) | US$245 (est) | US$656 (est) |
(1) Based on 2011 feasibility study, LOM assumptions of $2.75/lb Cu.
(2) Based on 2010 preliminary economic assessment, LOM assumptions of $15.00/lb Mo and $2.60/lb Cu.
Mineral Park Mine (Copper/Molybdenum/Silver)
Mineral Park Mine
Mercator owns 100% of the producing Mineral Park Mine, located in Kingman in northwestern Arizona, approximately 120 kilometres southeast of Las Vegas, Nevada.
Mineral Park with over 360 employees is a conventional open pit truck shovel mine that produces copper, molybdenum and silver. The mine has a 23-year life (as at January 2011) and in 2012 is projected to produce 42.6 million pounds of copper, 10.0 million pounds of molybdenum and over 546,000 ounces of silver. Over the next five years, the mine is expected to produce up to 125.5 million pounds of copper equivalents (1).
El Pilar Deposit (Copper)
El Pilar Deposit
Mercator owns 100% of the El Pilar copper deposit which is located in the State of Sonora, Mexico, approximately 15 kilometres south of the AZ/MX border. The El Pilar property is situated in a highly prospective belt of porphyry copper deposits ranging from La Caridad in the south through to central Arizona in the north.
Mercator recently completed a NI 43-101 compliant feasibility study which supports the construction of a heap leach run-of-mine operation. Over its 12-year life, El Pilar could produce 73 million pounds of copper cathode per year. The feasibility study indicated a net present value (8% discount rate) of US$335.3 million or an internal rate of return of 35.7% with a 1.7 year pay-back. The company is in the process of updating the Nov 2011 feasibility study to further re-risk the project which could increase the project's NPV by as much as 29%. The updated feasibility study is expected Q2-2012.
El Creston Deposit (Molybdenum/Copper)
El Creston Deposit
Mercator owns 100% of the El Creston molybdenum-copper deposit, which is located in the State of Sonora, Mexico, approximately 175 kilometres south of the US Border, 145 kilometers northeast of the city of Hermosillo near the village of Opodepe. Access to the El Creston property is excellent, via paved highways and 22 kilometres of all weather gravel road. In addition a custom molybdenum roaster is located at Cumpas 105 kilometres away.
A feasibility study is expected in 2H-2012.
(1) Copper equivalent calculated using a molybdenum/copper ratio of 5.98.
Gary Simmerman, BSc, Mining Eng. FAusIMM, Mercator's Vice-President Mineral Park Mine, a Qualified Person as defined by NI 43-101 supervised the preparation of and verified and approved the technical information contained on this website in respect of the Mineral Park Mine. Mike Broch, BSc, Geology, Msc, Economic Geology, FAusIMM, the Company's Vice-President Exploration, a Qualified Person as defined by NI 43-101, supervised the preparation of and verified and approved the technical information in respect of the El Pilar project contained on this website. Dave Visagie, P. Geo, the Company's Exploration Manager, a Qualified Person as defined by NI 43-101, supervised the preparation of and verified and approved the technical information in respect of the El Creston project contained on this website.
Last updated: May 16, 2012
