Baja Mining Corp. (TSX:BAJ; OTCQX:BAJFF) is a Canadian mine development company with a 70% interest in the Boleo copper-cobalt-zinc-manganese project located near Santa Rosalia, Baja California Sur, Mexico. Boleo is fully permitted, fully funded, currently under construction and targeted for copper production in early 2013.
Boleo is a copper-cobalt-zinc-manganese project located near the town of Santa Rosalia in Baja California Sur, Mexico. Boleo is fully permitted and fully funded. Construction at Boleo re-commenced in November 2010. Copper production is targeted for early 2013.
Boleo was staked in 1992 and since then, as part of a Definitive Feasibility Study (DFS), two test mining programs, two process pilot campaigns, and a +38,000 metre in-fill drill program have been carried out. The DFS was completed in 2007 followed by a Technical Report update issued in March 2010.
|Ownership:||70% Baja Mining, 30% Korean Consortium|
|Resource:|| Measured+Indicated 265Mt (of which P+P=85Mt)|
|Deposit:||7 flat-lying soft rock ore beds|
|Products:||Copper and cobalt metals, zinc sulphate and possibly manganese|
|Mining:||Underground (10,000 wt/d) + Open Cut|
|Access:||On the ocean and main highway from USA|
|Water:||All process (except electrowinning) to run on sea water|
|Power:||42MW acid plant, 20M heavy fuel oil plant|
|Mine Life||23 years|
|Net Cash Costs||Negative US$ 0.29/lb of Cu|
|After Tax NPV (8%)||US $1.3 Billion|
|After Tax IRR||25.60%|
|Copper Grade||Above 2.00%|
|Avg Yr Production|| Cu 125Mlb, Co 3.7Mlb, |
Zn 55.8 Mlb
Cu 56.7kt, Co 1.7kt,
| After Tax Yr Avg|
|US$ 300 M|
LIFE of MINE
|Avg Yr Production|| Cu 84Mlb, Co 3.6Mlb,|
Cu 38.1kt, Co 1.6kt,
|Revenue Distribution||Cu 66%, Co 25%, Zn 9%|
The company has a website that can be accessed at www.bajamining.com.
There is another company that I view as a decent value at present. This company is called Nevada Copper (TSX:NCU).
Nevada Copper owns 100% of the Pumpkin Hollow Copper Development Property in the Walker Lane mineralized belt of Western Nevada.
Pumpkin Hollow is an advanced stage copper property and as at March 2011 contains:
- Measured and Indicated Resources totalling 5.9 Billion pounds of Copper plus additional Inferred Resources of 3.7 Billion pounds of Copper (all using a 0.2% copper cutoff grade);
- 1.6 million ounces of gold in Measured and Indicated Resources plus 716,000 ounces in Inferred resources;
- 42 million ounces of silver in Measured and Indicated Resources plus 21.8 million ounces in Inferred resources.
- 111 million tons of contained iron in 341 million tons at an average grade of 33% iron at a 20% iron cutoff in the Measured and Indicated Category.
The updated PEA assuming a High Grade Case demonstrated that at a US$2.50 copper price, The Pumpkin Hollow Copper Project has a US$498 Million NPV at an 8% discount with an IRR of 44% and Capex of $192 Million. At a US$3.00 copper price the project's discounted NPV at an 8% discount increases to US$ 784 Million. The NI43-101 compliant technical report highlighted several additional areas that have the potential to further improve the already solid economic base. The detailed PEA can be accessed at http://www.nevadacopper.com/i/pdf/PumpkinPEA-01-13-10Rev-Final.pdf.
The link to the company's website is www.nevadacopper.com and everyone who is interested should start their due diligence there. For disclosure I have received no compensation of any kind for this post. I do not own either of these stocks at present but I do plan to purchase some shares of NCU in the near future.