Metminco reports that Runge Pincock Minarco (RPM) has completed the mining study of Los Calatos in accordance with a defined scope of work. Development of Los Calatos will commence with an underground, sub-level caving, mining operation, with a concentrator using conventional sulphide flotation. Favourable economics are estimated at a production rate of 6 Mt/y, producing 765,000 t of copper in concentrate over a life of mine of 17 years. It has been designated a “Project of National Interest” by the Peruvian Government.

Los Calatos is located in southern Peru near, and in a similar geological setting to, three large operating copper-molybdenum mines, namely Cuajone, Toquepala and Cerro Verde. Production from mines in this region exceeded 600,000 t of copper metal in 2012. With the proposed upgrade to the Toquepala, Cuajone and Cerro Verde mines and the development of the Tia Maria and Quellaveco projects, production from this belt is expected to increase to more than 1.3 Mt/y of copper metal. Molybdenum constitutes a significant by-product of copper mining from this belt.

Los Calatos can be accessed via the Pan American Highway from Moquegua, and a 50 km unsealed road north of the highway to the project. The port of Ilo is located about 160 km by road to the southwest of the project area.

Metminco will now engage with financial and strategic partners to fast track development. The next steps are commencement of pre-feasibility / feasibility study, permitting and EIS studies.

Estimated mineable quantity of re is 94 t @ 0.88% Cu and 510 ppm Mo. Annual steady state production rate is expected to be 48,500 t/y of copper in concentrate.

Metminco reports “excellent regional infrastructure. Exploration targets may complement

development,” and there is “expansion potential with increasing copper price.”