Tamerlane exercises option and acquires 100% interest in Los Pinos
Tamerlane Ventures Inc. announced that it has exercised its option on the Los Pinos copper project in Peru, and as a result the Company now owns 100% of the Los Pinos project. Los Pinos is located in the Coastal Cordillera of southern Peru. The concessions comprise Los Pinos No. 1 (600 hectares), Los Pinos No. 6 (90 hectares) and El Pino (100 hectares).
The Los Pinos deposit is an oxide copper deposit developed on a porphyry system. The deposit consists of three mineralized zones, and has the potential for open pit mining, heap leaching followed by solvent extraction/electrowinning to recover the copper.
Tamerlane originally announced the option to acquire Los Pinos on March 27, 2007. The total acquisition cost was US$1,000,000. There is no royalty payable on the Los Pinos project.
In 1994, Pincock, Allen & Holt (PAH) carried out an evaluation of the Los Pinos Project for Asarco Inc. PAH’s report summarized the resource modeling methodology, resource estimate, mine plans, and mineable reserves. Capital and operating costs were reviewed and mine plans were generated. PAH provided data for ASARCO Inc. to incorporate into a prefeasibility-level evaluation of the project. The historical geologic resource estimated by PAH in 1994 was 63,191,000 tonnes with an average grade of 0.36% total copper at a cut-off grade of 0.22% copper. Within the geologic resource, a floating cone pit was designed at $0.90 per pound copper that contained 40 million tonnes of ore at a grade of .41% oxide copper. A mine plan and production schedule demonstrated mining 3.6 million tonnes per year for 10 years at an average grade of 0.40% copper with a strip ratio of 1 to 1 producing approximately 25 million pounds of cathode copper per year. The copper price used in the 1994 study was US$0.90 per pound compared to about US$1.56 per pound at present. Investors are advised that the PAH feasibility data is outdated, and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon
