MINERAL RESERVES

The Rosemont Deposit is a large tonnage, copper-molybdenum deposit

located in close proximity to the surface and amenable to open pit
mining methods. The proposed pit operations will be conducted from 50-
foot high benches using large-scale mining equipment.
The mine has a 21-year life, with sulfide ore to be delivered to the
processing plant at an initial rate of 75,000 tpd. Provisions are included to
increase production to 90,000 tons of ore per day (tpd) in year 12 of
operations.
 MINERAL RESERVES CNTD
Rosemont mineral reserves have been estimated from only measured and
indicated mineral resources; all inferred resources have been treated as
waste.
The reserves reflects an optimum pit at metal price of $1.88 /lb, Cu $11.07
/lb Mo, and $14.87 /oz Ag. Proven and probable sulfide mineral reserves
within the designed final pit total nearly 667 million tons grading 0.44% Cu,
0.015% Mo and 0.12 oz Ag/ton. There are 1.24 billion tons of waste
materials, resulting in a stripping ratio of 1.9:1 (tons waste per ton of ore).
Total material in the pit is 1.9 billion tons. Contained metal in the sulfide
(proven and probable) mineral reserves is estimated at 5.88 billion pounds
of copper, 194 million pounds of molybdenum and 80 million ounces of
silver.
 Nearly 46% of the sulfide mineral reserves in the Rosemont ultimate
pit are classified as proven and the remainder (54%) is considered
probable. The classifications are based on the exploration drilling in
the Rosemont Deposit.
All of the mineral reserve estimates presented in this presentation are
dependent on market prices for the contained metals, metallurgical
recoveries and ore processing, mining and general/administration
cost estimates. Mineral reserve estimates in subsequent evaluations
of the Rosemont Deposit may vary according to changes in these
factors.
Effects of changing metal price on the reserve
 A 20% increase in metal prices boosts the ore-grade measured and
indicated mineral resources by only 3%, while a 20% decrease in
prices reduces them by about 6%. Figure in the previous slide is a
graphical presentation of the sensitivity to metal prices. Similarly, a
20% mine operating cost increase lowers ore-grade mineral resources
by 1% and a 20% cost decrease adds to these resources also by about
1% in tonnage.
Effects of operation costs on the mine reserve
If mine operating costs increase as much as 50%, there is only a 4%
decrease in the contained resource. The graph below shows how
operation costs affects the reserves