Name and Location
Boleo copper/cobalt/zinc/manganese mine, Baja California Sur, Mexico.

Client
Baja Mining, with a 70% share, and a group of Korean companies holding the remaining 30% share in the project.

Project Description
The Boleo project is an advanced stage polymetallic (copper, cobalt, zinc, manganese) project, located near Santa Rosalía, on the tidewater of the east coast of the Baja peninsula. It is one of the largest copper deposits under development in North America.

The Boleo property covers about 11 000 ha of mineral concessions and 7 000 ha of surface occupancy rights. It will be developed as a series of underground mines and small opencut mines feeding a central processing plant.

The project contains 265-million tons of measured and indicated resources, grading at 1,5% copper equivalent, with a further 159-million tons of inferred resources, grading at 1,15% copper equivalent.

The envisaged average yearly production for the Boleo project’s first four years at full operating capacity is expected to be 56 697 t of copper cathode, 1 708 t of cobalt cathode and 25 364 t of zinc sulphate monohydrate.

The project has a minimum mine life of 23 years, with expected cash costs in the lowest quartile of world production.

Value
In April 2012, Baja Mining reported that it expected to exceed its initial $1.14-billion estimate to construct the Boleo project by about $246-million.

Duration
Copper production is expected to start in the first quarter of 2013, with the cobalt and zinc circuits to follow in the middle of the year.

Latest Developments
Baja Mining has been advanced an additional $115-million by the Korea Resources Corporation (Kores) for the continued construction of the Boleo project.

The advance was made through Baja’s 49%-owned subsidiary Minera y Metalúrgica del Boleo (MMB) and was paired with an extension to the third standstill agreement, which expired on January 15.

The third extension to the pay freeze is subject to an $84-million cash injection to MMB by the Korean consortium, which took place on November 2, 2012, and initially extended the standstill agreement to November 20.

In July last year, the Korean consortium also threw Baja a $90-million lifeline, following its announcement in April that it expected to exceed its initial $1.14-billion estimate by about $246-million to construct the project.

The company said that, in August it had received about $73.5-million of the $90-million of the Stage 1 financing agreement it entered into with Kores, triggering a reduction in its ownership of subsidiary MMB.

In October, it received a $20-million cash injection from the consortium.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Baja will require additional funding of about $246-million to complete the project.

Contact Details for Project Information
Baja Mining, tel +1 604 685 2323 or fax +1 604 629 5228.