Piedras Verdes: Mexico?s Newest Copper Mine

The Piedras Verdes copper mine is a new run-of-mine (ROM), heap leach, solvent-extraction/electrowinning (SX-EW) operation located 21 km (13 miles) north-northwest of the town of Alamos in the state of Sonora, Mexico. The Piedras Verdes copper mine is wholly owned by Frontera Copper Corp. (FCC), a Canadian corporation, through its 100 percent beneficial interest in Cobre del Mayo S.A. de C.V. (CDM), a Mexican registered company. The January 2008, minable reserves were estimated to be 193.6 Mt (213 million st) at a grade of 0.36 percent copper. The overall recovery of total copper was estimated to be 61.9 percent. The property has an additional 17-year life and is designed to produce 31.7 kt/a (70 million lbs/year) of cathode copper. Construction commenced in early October 2005. The first copper cathode was produced 12 months later at a total capital cost of $100 million. Elevations at the site range from 150 to 300 m (490 to 985 ft) above sea level. The area has excellent infra-structure in the form of towns, power, water, roads, rail, airfield and access to the deepwater port of Guaymas (Fig. 1). The surrounding area is also famous for its numerous polymetallic (lead, zinc, copper, silver and gold) epithermal veins. Some of these were mined for more than 200 years and provided the wealth on which the town of Alamos was built. The original village of Piedras Verdes was located in the area of the proposed openpit mine and, consequently, it was necessary to construct a new townsite 6 km (3.7 miles) to the south before project development could commence. The new town site (Fig. 2), complete with power and water supplies, roads, sewer system, schools, clinic and recreational facilities, was completed and occupied by 49 families in September 2005. CDM received its remaining permits from the Mexican environmental authorities on Sept. 20, 2005. This enabled the company to proceed with full-scale development. CDM owns or controls 27 mining concessions covering the resource. Surface rights to the Piedras Verdes project were controlled by four Ejidos (communal agrarian and/or ranching societies) and five individual landowners. CDM has acquired all surface rights necessary for its mining operations and associated facilities either through outright purchase or long term lease agreements.