LOS CHANCAS

Grupo Mexico informed that in 2009, as part of the complementary studies to define the ore reserves in the deposit, 40,244 meters were diamond drilled. Geotechnical studies will be continued in 2010 as part of the feasibility study.

The exploration program and the final phase of the metallurgical testing were completed in early 2006. The pre-feasibility studies started in mid 2006 and should be completed by early 2007, when new commercially exploitable reserves will be better defined. At the end of 2005 several companies have been invited to present proposals for the execution of the pre-feasibility studies that will begin in 2006. In 2004, the Company completed the final phase of the diamond drilling program, with 10,500 meters drilled. The Company has completed the second and final phase of metallurgical testing and has commenced pre-feasibility studies. Once completed, SPCC will be able to make a determination if more exploration is needed or if the project contains commercially mineable reserves, which would warrant future development after a comprehensive economic, technical and legal feasibility studies were completed. Testing to this period indicate a mineral deposit of 200 million tons with a copper grade of 1.0%, 0.07% molybdenum and 0.12 grams of gold per ton.

Lima-based Southern Copper plans to place an offer on Tuesday (Apr 11) for Australian group BHP Billiton's Tintaya copper mine in Peru, Southern CEO Oscar González Rocha told BNamericas."We are ready to present a proposal next Tuesday along with the other companies that have been invited and have analyzed this sale. We hope ours will be the best," said González in an interview in Santiago, Chile. The Southern executive said he believed a total of four companies had participated in the sale process to date, including Peru's zinc-copper miner Milpo that announced its participation last month.