TINTAYA

Some 20 kilometres of geophysical surveys were completed in the Coroccohuayco area, 10 kilometres southeast of Tintaya, where surface oxide ores have been identified as well as sulphide anomalies

Reported that a final feasibility study, managed jointly by Xstrata Copper and Bechtel, commenced during the first half into the development of the Antapaccay deposit, 10 kilometres southwest of the Tintaya operation. The feasibility study, to be completed by mid 2009, contemplates a large scale open pit mine and initial production of 150,000 tonnes per annum of copper in concentrate from a stand-alone concentrator, with commissioning by the end of 2011, then expanding to 250,000 tonnes per annum. Tintaya is also analysing options to develop the Coroccohuayco orebody, 10 kilometres southeast of the Tintaya operation, as part of the strategy to maintain longer-term copper production from Tintaya at in excess of 100,000 tonnes per annum. Lower ore grades together with adverse wet weather conditions during the first half impacted the volume of sulphide and oxide ore mined, exacerbated by high clay content ores, with a consequential negative impact on concentrator productivity. Copper in concentrate production decreased by 17% and copper cathode production was 28% lower. Gold in concentrate production also decreased compared to the first half of 2007, as a result of lower head grades. Production is expected to improve significantly in the second half as the mine plan focuses on higher grade and lower clay content ores. Initiatives are also under way to improve truck productivity and reduce haulage distances

Reported upgraded resource estimates for the Antapaccay and Coroccohuayco deposit. New Mineral Resources increased 10% to 520 million tonnes at a grade of 0.72% copper, plus gold and molybdenum byproduct credits, using a 0.4% copper cut-off grade.