The September 2009 Preliminary Economic Assessment envisages an open pit operation and sulphide concentrator, processing 41,000 tonnes per day of ore feed producing a copper/gold concentrate and an iron rich (67% Fe) magnetite concentrate. The mine plan is based on delivering approximately 15 million tonnes per annum of ore to the crusher at a cut-off net smelter return of $4.00 per tonne.  In-pit sulphide resources in the preliminary pit optimization total 177 million tonnes grading 0.505% Cu, 14.7 % Fe, and 0.088 g/t Au.

Average annual copper production is expected to be 137 million pounds with the average in the first three years totalling 155 million pounds. Average annual magnetite production is expected to be approximately 1.3 million tonnes of concentrate. The expected life of mine cash cost for copper is estimated at $0.82 per pound including by-product credits for iron and gold sales. The after tax net present value is $325 million at a 10% discount rate and the after tax internal rate of return is 25.4%. The payback period is 2.8 years. Commodity prices assumed for the financial analysis are $2.00 per pound of copper, $800 per ounce of gold, and 85 cents per dry metric tonne unit of iron ore fines. All dollar amounts are expressed in US dollars. An exchange rate of 2.20 was used with respect to Brazilian Real-based expenditures.