La Balsa Scoping Study
March 19, 2010 News Release TSX-V Symbol: BCU
LA BALSA SCOPING STUDY
Vancouver, B.C.: Bell Copper Corporation (“Bell Copper” or the “Company”) (TSX-V Symbol: BCU) is pleased to announce the conclusions of a recently completed Scoping Study on the Company’s La Balsa project located in Lazaro Cárdenas, Mexico. The study was completed by Richard Gresham a registered professional mining engineer based in Phoenix, Arizona. The following summarizes the conclusions of the Scoping Study:
- The La Balsa project currently contains 11.4 million tons at an average grade of .77 copper of which 7.66 million are sulphides and 3.74 million are oxides:
| La Balsa Deposit Mineral Resource Summary | |||||
|---|---|---|---|---|---|
| (Cutoff Grade Is 0.2% Copper) | |||||
| Oxidation Zone | Class | K | Copper (%) | Copper | Copper |
| tonnes | (t) | (M lb) | |||
| Oxide | Measured | 1,069 | 1.16 | 12,370 | 27.3 |
| Indicated | 986 | 0.89 | 8780 | 19.3 | |
| Subtotal | 2,055 | 1.03 | 21,150 | 46.6 | |
| Inferred | 186 | 0.63 | 1,170 | 2.6 | |
| Measured | 848 | 1.08 | 9,140 | 20.1 | |
| Indicated | 854 | 0.81 | 6,930 | 15.3 | |
| Mixed | Subtotal | 1,702 | 0.94 | 16,060 | 35.4 |
| Inferred | 150 | 0.62 | 930 | 2.0 | |
| Measured | 4,086 | 0.74 | 30,410 | 67.0 | |
| Indicated | 3,574 | 0.58 | 20,670 | 45.6 | |
| Sulphide | Subtotal | 7,660 | 0.67 | 51,080 | 112.6 |
| Inferred | 370 | 0.70 | 2,580 | 5.7 | |
| Measured | 6,003 | 0.86 | 51,920 | 114.5 | |
| Indicated | 5,414 | 0.67 | 36,370 | 80.2 | |
| Total | Subtotal | 11,417 | 0.77 | 88,290 | 194.6 |
| Inferred | 707 | 0.66 | 4,680 | 10.3 |
Mineral resources that are not mineral reserves do not have demonstrated economic viability (NI43-101/3.4(e)). Behre Dolbear's mineral resource estimates for the La Balsa deposit have been summarized from Behre Dolbear's ordinary Kriging (OK) block model.
At a cutoff grade of 0.2% copper, the total measured and indicated resources at Iguana Prieta, La Virgen, and Playa Azul are 11.4 million tonnes with an average copper grade of 0.77% containing 88,300 tonnes or 194.6 million pounds of copper metal. In addition, there is an inferred mineral resource of 0.7 million tonnes with an average copper grade of 0.66% containing 4,700 tonnes or 10.3 million pounds of copper metal. The full Report can be accessed at NI43-101 Technical Report - La Balsa Property.
- The open pit mine waste to ore stripping ratio is 1.25:1
- 70.7 Million pounds of copper will be recovered via SX-EW from oxide and mixed copper ores
- 79.4 Million pounds of copper will be recovered via Floatation from sulphide ores
- Total initial project capital is estimated at $ 35.1 M with an additional $26.5 M required for sustaining capital over the life of the project (through cash flow)
- The operating cost per pound of copper with silver credits is US$ 0.81 per pound
- The total cost per pound for copper with capital included is $ 1.22 (with silver credits)
- At $ 2.50 per pound copper the after tax IRR is 24%
- The NPV at $ 2.50 per pound copper and a 10% discount rate is US$ 42 Million
- Expected recovered copper is 150,827,000 pounds and expected recovered silver is 786,000 ounces over an estimated mine life of approximately 7 years
Based on the above conclusions, Bell Copper will proceed to feasibility on the La Balsa project and anticipates that the feasibility study will be completed in the fourth quarter of 2010. As part of the feasibility at La Balsa, the Company will be drill testing the La Balsa porphyry target at depth.
Under the Spinco Transaction announced December 7th 2009, the Residual BellCo to be named Phoenix Copper will retain the La Balsa project and also retain the Macquarie debt obligations relating to La Balsa (within its wholly owned subsidiary Rogue River Resources Corp.) and will focus on repayment of this obligation through financing, in conjunction with the development of the La Balsa project to feasibility. Phoenix Copper will also retain the Granduc Mine project in British Columbia. The Spinco Transaction is subject shareholder as well as court approval and subject to the acceptance of the TSX Venture Exchange. Further particulars will be announced in due course.
Timothy Marsh, PhD, PE, Bell Copper's President is the qualified person on the La Balsa Project.
About Bell Copper
Bell Copper is focused on the exploration and development of copper assets in the Americas through internal efforts and via strategic partnerships. For more information on Bell Copper: www.bellcopper.net
On behalf of the Board of Directors of Bell Copper Corporation
"Michael Werner"
Michael Werner, CEO & Director
For further information please contact the Company Tel: 604 669-1484 or email: [email protected]
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. Forward-looking statements in this release are made pursuant to the ‘safe harbor’ provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties