Constancia

The 12,846.35 ha copper property is located in the south-eastern Andes of Peru, in the Chamaca and Livitaca Districts, Province of Chumbivilcas, Department of Cusco. It is an established mining district in the highlands of Southern Peru with access to good infrastructure.

The Constancia Definitive Feasibility Study is based on the Constancia and San Jose zones of mineralization which were the first discoveries within Norsemont's Peruvian concessions. Further potential exist to increase the global Constancia resource with the successful exploration of both the Pampacancha and Chilloroya South discoveries.

The mining process at Constancia will be a conventional modern hard rock open pit operation, supplying the nominal concentrator production capacity of approximately 50,000 tonne per day (tpd). However, throughput, metal recoveries and plant output will vary depending on the ore type being processed.

Average annual production is 149.2 million pounds of recovered copper, 1,180 tonnes of recovered molybdenum, 1.5 million ounces of recovered silver, and approximately 8,900 ounces of gold as a by-product credit over the 15 year mine life.

Over the first five years of production the Constancia mine is expected to produce 224.7 million pounds of recovered copper annually (101,900 tonnes of payable copper annually). Silver and a small quantity of gold at payable levels will report to the copper concentrate.

The proposed mine is largely self-contained with mine, mill, maintenance facilities, administration and fully serviced accommodation camp located on the mine site.

Supporting infrastructure requirements include a new power transmission line to be constructed from an upgraded supply point at Tintaya, 70 km away. The public road to site will be upgraded to meet demands of extra traffic, particularly concentrate trucks and freight services. Raw water will be extracted from bore holes surrounding the open pit, and a tailings dam will be constructed within 5 km of the mine on land owned freehold by Norsemont.

An Environmental and Social Impact Assessment (ESIA) study is scheduled to be delivered to the Peruvian Authorities in December 2009.