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The Carlota Mine is a heap leach -- SX-EW operation in the west end of the Miami-Globe mining district of east-central Arizona. Production of copper cathode at the Carlota Mine commenced in December 2008. History: From the early 1900's to the late 1980's, Carlota saw some minor underground mining and underwent exploration and assessment activities by a series of owners. In 1991 Cambior acquired the property and began to development studies towards feasibility and permitting. Cambior spent approximately $68 million and almost 14 years moving the Carlota project through permitting and feasibility studies in readiness for commencement of construction. Quadra acquired Carlota from Cambior Inc in late 2005. Following a project review that included infill drilling, engineering studies, detailed cost estimation and infrastructure development, Quadra produced an updated NI 43-101 technical report and received Board of Directors approval to proceed with development in November 2006. In early 2007, the net proceeds of a US$200 million term loan were secured to fund the construction and development of the Carlota Project. Construction was completed on budget and on schedule during the third quarter of 2008 and the first copper cathode was produced in December 2008. Estimated Operating Parameters: Mining is by conventional open pit methods, using drilling, blasting, loading and truck haulage of ore and waste. LME grade copper cathode will be produced onsite by the heap leach, SX-EW process. The electrowinning plant design has a capacity of 34,000 tonnes (75 million pounds) of copper cathode per year. The mine life is nine years plus two years of residual leach. Copper production projections from the Carlota mineable reserves are based on a yearly mining rate of 28 million tons of total material moved, which is the maximum material that can be moved annually under the Environmental Impact Statement (EIS) and Carlota Air Quality Permit.
Health and Saftey: There hase been one Lost Time Accident or Reportable Incident at the Carlota project since the Company commenced construction in 2007. Carlota Outlook: The operations team is now focused on maximizing the operating efficiencies of the plant. Cathode copper production is expected to be approximately 50 million pounds in 2009 due to the lower early stage head grades as per the mine plan. In accordance with Carlota's previously disclosed Technical Report, increasing head grades are expected to result in an estimated annual production rate of 70 - 75 million pounds in 2010. Total cash operating costs are expected to be approximately $75 million in 2009, increasing to approximately $85 million in 2010, resulting in unit cash operating costs of about $1.50 per pound in 2009 and $1.20 per pound in 2010. These operating cost forecasts exclude royalty payments and assume an acid price of $200/ton and a diesel price of $2.80/gallon. It should be noted that the operation is ramping up and that these costs are estimates that may change with real world data. The Company expects to incur $25 million of capital expenditures at Carlota during 2009 for the construction of the Pinto Creek Diversion which is required to divert a stream system around the pit, environmental bonding and the acquisition of an additional haul truck. Capital expenditures are forecast to be $20 million in 2010, primarily for the expansion of the leach pad. Mineral Resource and Mineral Reserve Estimates: The Carlota resource, which adheres to the 2000 Classification of Mineral Resources and Mineral Reserves of the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with the standards set out in NI 43-101, is classified as Measured, Indicated or Inferred based on the distance to the nearest copper sample and the number of copper composites. The Carlota Mine's mineral resource estimate was updated under the supervision of Scott Hardy, P. Eng of Quadra, to reflect the material mined during the construction and development phase of the project. Carlota Resources
Carlota Probable Mineral Reserves
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