Click here for Feasibility Study Summary Report 43-101 (10 MB)

With the recent release of the NI 43-101 compliant Definitive Feasibility Study (DFS), Baja Mining is now in a position to fast-track project development to achieve production in mid-2009.  The DFS is a compilation of the results of two test mining programs, two process pilot campaigns, and a +38,000 metre in-fill drill program completed on the Boleo project.

Highlights

• Commercial life of mine average cash cost of negative $0.07/lb of produced copper, net of by-products
• Average annual production, for the first four years of production:
  • Copper cathode: 55,750 tonnes
  • Cobalt cathode: 1,535 tonnes
  • Zinc contained metal: 6,300 tonnes
• Total Capital Cost is $568.4 million
• Proven and probable reserves provide for 25 year mine life
• Measured and Indicated resources: 277.2 million tonnes grading 1.77% copper equivalent
• Inferred resources: 253.2 million tonnes grading 1.29% copper equivalent
• After-tax IRR of 24.7%, or 46.0% at current market prices
• After-tax NPV (at 8% discount rate) of $700 million, or $2.3 billion at current market prices
• Upside from potential manganese production is still available and will increase the base case NPV by an additional $302 million
• Manganese (contained in manganese carbonate) production could exceed 100,000 tonnes/year at the current design capacity

Current Activity:

Site Preparation:Environmental permit requirements to re-locate flora and fauna at several identified areas prior to construction are currently underway.  Groundwater monitoring and baseline environmental data collection work is continuing.  Geo-technical drilling and trenching is currently being conducted at the future sites of the process plant, the marine dock and tailings dam.

Financing:
Strong support of the Boleo project has been shown by the financial community, including project finance lenders and metal off-take parties. Baja has been working closely with its advisor, Endeavour Financial, and is proud to announce that a debt facility has been secured for US$515 million. Baja is also excited to report that it has arranged a CDN$45 million equity financing in order to facilitate the construction activities that are commencing on site at Boleo.

Engineering and Construction:
Contracts are being finalized for basic engineering and construction.  Wardrop Engineering in Vancouver, BC has commenced the set-up and basic engineering phase.  It is expected that they will be supported by Bateman Engineering for Process Engineering and by a major construction company with experience in Mexico for constructability and pricing reviews during this phase.

Minor metals and Laboratory work:
Work is continuing in investigation of low energy methods for production of manganese and zinc sulphate products.  As well reviews are being conducted into the possible recovery of minor metals such as indium, gallium and germanium.

DFS ADVISORS
The DFS incorporates capital and engineering estimates prepared by Bateman Engineering (“Bateman”) and Wardrop Engineering (“Wardrop”) for the process plant and mine plan developed by Agapito Associates, Inc (“AAI”), Australian Mine Design and Development (“AMDAD”) and Wardrop in accordance with NI 43-101 standards.