Project Summary


The Antakena Joint Venture between AQM Copper and Minera S.A. (the JV operator), is focused on developing a near surface, leachable copper oxide deposit, known as "Elenita," ideally located in the most prolific copper district in the world: the Antofagasta Region in Northern Chile. The Elenita copper oxide deposit is hosted by volcanic and sedimentary rocks of the La Negra Formation. Copper occurs in mantos, veins, hydrothermal breccias, veinlets and disseminated bodies, hosted principally in volcanic and sedimentary rocks and in intrusive rocks in a smaller proportion. Prior to Minera's $11.8M work program and as reported by AQM in March 2009, the compliant resource at Elenita was 19.7M tons at 0.87% TCu of Measured and Indicated resources (at 0.2% cutoff) and 4.8M tons at 0.73% TCu of Inferred resources. The deposit was open in several directions and at depth and Minera's drilling program was designed to test these areas.

Following the signing of the Joint Venture agreement between AQM and Minera SA in April 2009 (See News Release dated April 21, 2009), Minera S.A. has completed a drill program of 9,400m of diamond drilling and 48,000m of reverse circulation drilling, which included drilling for metallurgical samples, condemnation of potential plant-site and waste dump areas, geotechnical, geology, infill and exploration. An updated NI 43-101 compliant resource on Elenita is expected in the third quarter of 2010.

Pre feasibility metallurgical testwork performed by Minera has included bottle tests, short and long column tests, and VAT leaching tests. The results will be included in a pre feasibility report that is being coordinated by MTB (see News Release dated May 27, 2009) and is expected to be completed early in the fourth quarter of 2010.

Originally included as part of the Antakena Joint Venture, the option to purchase the neighboring Madrugador copper oxide deposit was dropped in March 2010 as a result of an Antakena management committee decision, due to the high cost of maintaining the option and lack of progress in consolidating the mining properties surrounding this deposit.

Elenita features the following:
  • 9,587 hectares in the Antofagasta Mining Belt of Northern Chile
  • Nearby mines include:
    • Anglo American's Mantos Blancos Mine, which produced 91,700 tons of fine copper in 20061
    • Antofagasta Minerals Michilla Mine
  • NI 43-101 Compliant Mineral Resource (March 2009):

      Measured (47%) Indicated (42%)> Measured + Indicated (89%) Inferred Resources (11%)
    Cut-off
    [CuT %]    		 Ktons TCu [%] Cont Cu ktons Ktons TCu [%] Cont Cu ktons Ktons TCu [%] Cont Cu ktons Ktons TCu [%] Cont Cu ktons
    1.00 2,247 2.19 49 2,024 1.88 38 4,271 2.04 87 458 1.60 7
    0.50 3,719 1.61 60 3,785 1.33 50 7,505 1.47 110 1,143 1.06 12
    0.30 5,223 1.26 66 5,397 1.05 57 10,620 1.15 122 1,662 0.86 14
    0.20 6,777 1.03 69 7,394 0.84 62 14,171 0.92 131 2,116 0.73 15

  • Drilling by Minera SA in 2009-2010 show high probabilities of increasing resources at Elenita
  • Minera completed 9400m of diamond drilling and 48,000m of reverse circulation drilling
  • Updated NI 43-101 Report expected by 3Q2010
  • Excellent infrastructure in region: rail, paved roads, power, water pipelines, & ports


Option Terms

The terms for the option to buy Elenita from the Chilean private owners are as follows:

Date Amount (US$) Status
On Signing (October 16, 2007)

$ 300,000

Paid
6 months (April 16, 2008) $ 500,000 Paid
12 months (October 16, 2008) $ 2,000,000 Paid *
March 31, 2009 $ 250,000 Paid
June 30, 2009 $ 250,000 Paid
September 30, 2009 $ 250,000 Paid
December 30, 2009 $ 250,000 Paid
30 months (April 16, 2010) $ 2,225,000 Paid
36 months (October 16, 2010) $ 4,600,000  
48 months (October 16, 2011) $ 4,600,000  

TOTAL
$ 15,225,000		  
 
*The Company paid an additional $24,376 to defer a portion of this option payment until November 2008.
The option agreement includes a royalty of 1% net smelter return.