Frequently Asked Questions
1. Does Cuervo have an NI 43-101-compliant resource report for the Cerro Ccopane Property and, if not, when will it have one?
The Company expects to have an NI 43-101-compliant resource report completed in June 2008.
2. Can the sulphur and copper that have been reported in the drilling results from Cerro Ccopane be removed?
Yes, the Company believes they can be removed through the application of a low-intensity magnetic separation. A Davis Tube test carried out in November of 2007 on a small suite of samples removed most of the sulphur and copper and upgraded the iron content of the resulting magnetite concentrate to between 66% and 69% Fe.
Evidence that the sulphur- and copper-bearing minerals (e.g. pyrite and chalcopyrite) have been observed to be coarse (rather than fine) grained also bodes well for the process since only limited grinding is necessary to affect their separation from the magnetite.
3. What grade of iron does the steel industry require from the mines?
The steel industry requires a grade of between 62% and 69% Fe for iron ore.
4. What size of deposit is needed to be economical?
A deposit of 200 million to 300 million tonnes is needed.
5. How would the iron ore get from the Cerro Ccopane site to port if it was mined?
The iron ore would first be moved by trucks over 105 km of upgraded roadway and then for 712 km over the existing railway to port.
6. What are the economics of transporting the iron ore to port?
The Company has commissioned a preliminary transportation study that supports the feasibility of transporting the material to port using existing infrastructure and off-the-shelf engineering. The report does not give costs and the Company will have to commission a complete transportation study at a later date, if warranted, to determine those costs.
7. How will the iron ore be mined?
The known mineralization at Cerro Ccopane is found at or near surface. This indicates that the iron ore could be mined by a low-cost open-pit method.