Project Summary


The Zafranal Project is a rapidly growing high-grade, copper-gold porphyry discovery in Southern Peru. The Project consists of 6 separate targets:

  • Main Zone
  • Sicera Norte
  • Sicera Sur
  • Campanero
  • Rosario
  • Ganchos

Overview

  • Discovered by Teck Resources in 2003; Teck drilled 32 RC holes and 4 Diamond drill holes prior to offering Zafranal in a tender process
  • Located within the northern segment of the Southern Copper Belt, Peru
  • AQM has completed approximately 68,000m of drilling in 2010 in a total of 149 Diamond Drill holes and 52 RC holes
  • A NI 43-101 Compliant Resource is being prepared by AMEC Minproc, and is to be published in Q4 of 2010.
  • Porphyry copper-gold style mineralization with a blanket of secondary copper enrichment, measuring over a 3.3km strike length, up to 600m width and up to 500m thick of which the supergene blanket is between 50-150m thick
  • High grade copper mineralization encountered in segment at least 2.8km long and up to 600m wide
  • High grade copper-gold zone at shallow depth
  • Expansion potential. The Zafranal Main Zone is open to the East and is open in certain areas to the North, South and at depth.
  • 5 additional porphyry copper-gold satellite targets (Sicera Norte, Sicera Sur, Campanero, Rosario, & Ganchos) with known phyllic alteration; exploration drilling program has been initiated at Sicera Norte and Sicera Sur
Terms of Joint Venture with Teck Resources

AQM Copper Inc. is the operator of a 50/50 Joint Venture (JV) with Teck Resources on the Zafranal Project. The JV was announced on July 8, 2010, and replaces the original terms for Teck's exercise option, back-in right and royalty announced in the May 13, 2009 Option/JV Agreement.

Under the revised terms, AQM Copper's obligation includes the issuance of 5M common shares, after completing an initial US$7.5M in work commitment expenditures, which occurred in May 2010. AQM Copper then fund the next US$10.7M in work commitment which was completed in October 2010, after which Teck and AQM each will be required to participate in the continued funding of the program to maintain their 50%, or else be diluted under standard dilution terms.

Under the JV, AQM is the operator until a production decision is made, at which time Teck may elect to be the operator. The JV will be administered by a Board of Directors representing both parties according to their participating interests.