• Northern Chihuahua State of Mexico
• 60k south and west of El Paso, Texas
• 4,055 acre property 10k long by 3k wide.
• 42.5 million pound copper resource minimum (43-101 verified) on less than 10% of known mineralization zones.
• Estimated 500 million pound copper resource (minimum) with a multi-billion pound potential.
• 4 Year Pilot Mine Project to start in late 2016 and generate over $165 million revenue from the pilot phase only with an assumed copper price of $2.10.
General Info & Timeline:
• VVC optioned 33.75% of the Samalayuca project in October 2013 and assumed management control, increasing that option to 67.5% in 2015.
• This previously producing property was shut down when Asarco closed the Copper Smelter in El Paso in 1970 and copper prices did not justify a local recovery facility.
• Phase 1 production area includes less than 10% of the mineralized zone of the Samalayuca property.
• 43-101 tons of 4.25 million tons of copper ore (42.5 million pounds of copper) completed in April 2013.
• Phase 1 production expected to begin by late 2016 and last for 3 to 4 years and produce between 7 and 8 million tons of ore (70 to 80 million pounds of copper)
• VVC’s 67.25% share of Phase 1 production at $2.10 per pound is expected to be in excess of US $100 million.
Samalayuca Milestones to Production and Cash Flow Positive:
- Agreement with Firex to finance the Phase 1 mine startup costs (up to $7 million ) after permits are in place and the first pit planned.
- Completed contracts with Ejidos (farmer/land owners) 2013.
- Complete land use zoning justification report—June, 2015.
- Land use zoning approval by Advisory Committee—July 2015.
- Land use zoning approval by Regional Director—August 2015.
- Final Approval and public hearing on land use zoning approval by National Director—October 2015.
- Final Publication in Federal Register—Pending*
- In January of 2016, a lawsuit filed by the Ejidos (owners of the land of the Smalayuca Project was finalized in favor of the Ejidos, effectively removing them from control of CONAMP and negating the requirement for a zoning change—if this ruling which has to-date not been appealed holds up, it will over the long run make the operations of the Samalayuca project simpler from the regulatory approval standpoint. It will not change how the Samalayuca project would operate. A final ruling is expected soon and in either case expects to have the zoning issue positively resolved in Samalayuca’s favor.
- File for mining permits—60 days after zoning change—hopefully 3rd quarter of 2016.
- Drilling for first pit, heap leach pad and camp—as soon as the drilling permit is approved.
- Mining Permit approval—2nd half of September 2016.
- Mine construction—late 2016 and early 2017.
- First New Copper Mined—early 2017.
- First Copper Sales—1st half of 2017.