Mine Development Opportunities

The copper and gold project is located in Saudi Arabia some 350 km north-east of Jeddah.

A Definitive Feasibility Study was completed and results published in December 2009 - the study takes onto consideration underground mining of two of the three lodes. Mining inventory stands at 24.4 Mt in reserves grading 2.3% Cu, 0.3 g/t Au and 10g/t Ag. The pre-production capital cost is US$280M at a cash cost of US$0.97/lb (after precious metals credits).

The mining method is sub level open stopes and CAF, CRF, sand and rock backfilling. The annual output is expected to total 2.6 Mt of ore. Mining and development are to be contracted out. An existing 2.1 km decline passes through all three known lodes facilitating a short lead time to production. Haulage is to be done by underground road trains up to 100t. Ventilation would be done by employing large variable speed surface fans.

Processing is to be done at surface in a facility that has a 3Mtpa capacity. The floatation circuit has the following specifications: - Sag Mill: 7.92m diam. X 4.75m, 5.5Mw (26' X 15.6'); - Bal Mill: 5.5m diam. X 9.0m, 4.5 MW (18' X 29.5'); - Grind size: P80 of 150 micrometers; - Rougher: 7 X 70m3 tank cells/ 4 X 8 m3 trough cells; - Recovery and Grade: 96% (2% Cu head and 25% Cu conc.); - Dewatering: 3 X horizontal filter press - target 15% moisture; it is to be trucked to the dry tailings storage facility.

The mine is expected to produce an average of 250,000 wmt per annum concentrate containing 57,000 tpa copper. The concentrate would be trucked to Yanbu. The precious metals production over the life of mine is estimated at 146,257 oz gold and 5,846,732 oz silver.

Site and infrastructure would include: 33MW power; 1 million m3 of process water with onsite raw water storage of 11,000m3; and a 590 man camp.

Major regional infrastructure is located close to the project site, such as sealed highway access.