Copper Flat Mine

The Copper Flat Mine (also classified as the Copper Flat Property, the Copper Flat Deposit, the Copper Flat Project, or simply as Copper Flat) is a former producing mine located in southwestern New Mexico that is currently in development. The Project, which is a combination of fee simple properties and lode and patented mining claims, comprises approximately 3,000 acres (1,200 Hectares) and is approximately 23 miles southwest of Truth or Consequences, New Mexico and 5 miles northeast of Hillsboro, New Mexico. On May 18, 2011, the project was purchased from Hydro Resources, Inc. by New Mexico Copper Corporation, which is a wholly owned subsidiary of THEMAC Resources Group Limited (TSXV: MAC).^[1]

History

The Copper Flat Project is located in the Historic Hillsboro Mining District. First gold production was in 1877, and the first copper-matte smelter was built in 1892. Small scale gold and copper production continued in the region until about 1941. Quintana Minerals Corporation mined the property in 1982 and produced 7.4 million pounds of copper, 2,306 ounces of gold, and 55,966 ounces of silver. Quintana ceased operations because of low copper prices after three months, the mining equipment was dismantled and sold, and the Canadian Imperial Bank re-graded the site and buried the foundations for possible reuse in the future. Gold Express of Denver, Colorado and Alta Gold of Henderson, Nevada subsequently attempted to re-establish mining operations but permitting efforts were never completed.^[2]

Geology

The Copper Flat deposit is located within a 4 mile wide stratovolcano complex, with andesitic rocks intruded by a quartz monzonite stock (Copper Flat Stock). This stock is best described as an alkalic Cu-Au mineralized breccia pipe, associated with, and genetically linked to an alkalic porphyry system. The best analogs to Copper Flat are Terrane Metal’s Mount Milligan, British Colombia deposit, and the Continental breccia pipe mined in the nearby Central Mining district in New Mexico.^[3] The Copper Flat copper deposit is a hypogene sulfide deposit with nearly all of the copper occurring as chalcopyrite. The mineralization and alteration at Copper Flat are similar to most hydrothermal porphyry copper deposits in the southwest United States, with significant mineralization hosted in a core breccia pipe. Molybdenite is not abundant in the quartz monzonite porphyry stock. Where it is present, it occurs either in quartz veins or as thin coatings on fractures. Minor sphalerite and galena are present in both carbonate and quartz veinlets in the stock. Pyrite is the other main sulfide mineral.^[4]

Project Economics

An NI 43-101 Preliminary Economic Assessment (“PEA”) dated June 30, 2010 and updated February 25, 2011, has been completed for Copper Flat. The deposit has NI43-101 Indicated Mineral Resources of 107 million short tons grading 0.303% copper and 0.01% molybdenum for 645 million lbs copper and 21.4 million lbs molybdenum, plus Inferred Mineral Resources of 46 million short tons grading 0.24% copper and 0.006% molybdenum for 222 million lbs copper and 5.6 million lbs molybdenum.^[5] The project is estimated to have a 17 year mine life, with the potential to extend, and is expected to employ up to 500 people during construction and up to 200 people throughout its production life. Historic production and metallurgical test work show gold and silver content in the deposit. These minerals will be incorporated into the deposit’s NI 43-101 Mineral Resource statement after completion and interpretation of a re-assay program using historic drill sample pulps.^[6] Civil infrastructure in place at Copper Flat includes a tailings dam, largely pre-stripped open pit, power lines, production water wells and pipeline, access roads, diversion channels and building foundations.

Current Activity

On May 18, 2011, THEMAC Resources Group Limited of Vancouver, B.C. made the final payment to acquire 100% of the Copper Flat Project from Hydro Resources, Inc., of Albuquerque, NM. Final payment to the previous owners was in the amount of $7,000,000. Also, on May 16, 2011, THEMAC Resources Group Limited made a $1,000,000 payment for the water rights which will be necessary for full production. One final water rights payment in the amount of $750,000 is due when plant operations commence. The funds for these purposes amounting to $5 million were advanced by the major shareholder of THEMAC in line with terms of a previously negotiated loan arrangement.^[7] Permitting for a return of the project to production is at an advanced stage. A pre-feasibility study is in progress and targeted for completion by the end of 2011.

References

1. ^ "New Mexico Copper Corporation Parent Company Gains 100% Ownership of Copper Flat" (Press release). SEDAR. 24 May 2011. http://www.sedar.com/FindCompanyDocuments.do. 
2. ^ J Steven Raugust (2003). Open File Report 475: The Natural Defenses of Copper Flat (Report). New Mexico Bureau of Geology and Mineral Resources. http://geoinfo.nmt.edu/publications/openfile/details.cfml?Volume=475. 
3. ^ Virginia McLemore (2001). Geology and Evolution of the Copper Flat Porphyry System, Sierra County, New Mexico (Report). New Mexico Bureau of Mines and Mineral Resources. http://geoinfo.nmt.edu/publications/openfile/details.cfml?Volume=475. 
4. ^ Virginia McLemore (2001). Geology and Evolution of the Copper Flat Porphyry System, Sierra County, New Mexico (Report). New Mexico Bureau of Mines and Mineral Resources. http://geoinfo.nmt.edu/publications/openfile/details.cfml?Volume=475. 
5. ^ = 24 October 2011 "New Mexico Copper Corporation Parent Company Gains 100% Ownership of Copper Flat" (Press release). SEDAR. 24 May 2011. http://www.sedar.com/FindCompanyDocuments.do = 24 October 2011. 
6. ^ "THEMAC Resources Group Appoints New Chief Executive Officer" (Press release). SEDAR. 29 August 2011. http://www.sedar.com/FindCompanyDocuments.do. Retrieved 24 October 2011. 
7. ^ "New Mexico Copper Corporation Parent Company Gains 100% Ownership of Copper Flat" (Press release). SEDAR. 24 May 2011. http://www.sedar.com/FindCompanyDocuments.do. Retrieved 24 October 2011. 

External links

• themacresourcesgroup.com