The Company's core development asset is the copper-gold-iron Serrote da Laje project in Brazil. The Company is considering a revised development and operating plan that may require lower capital expenditures and that features an earlier phased execution schedule than that reported in the technical report dated October 15, 2012, with an effective date of September 4, 2012, and entitled “NI 43-101 Technical Report on the Feasibility Study for the Serrote da Laje Project, Alagoas State, Brazil” prepared by Micon International Limited under the guidance of SNC-Lavalin Inc.
The project (formerly, the Arapiraca project) is fully permitted for construction and the Company has commenced negotiations for project financing and development.
The Serrote project is readily accessible from Maceio, the capital city of the State of Alagoas, via paved highways, located 160 kilometres from the Serrote Project. The Zumbi dos Palmares international airport also serves the area and lies just north of Maceio, approximately 140 kilometres from the Serrote project. Infrastructure in the area is well-established with electric energy, communication and transportation networks, including paved highways, all located within the property boundaries of the Serrote project. A one-metre gauge railroad, four kilometre distance from the Serrote project, passes through the city of Arapiraca and links directly to three deep-sea ports (Suape, Aracaju and Salvador), which are capable of shipping iron-ore and copper concentrates. In addition, the Serrote project is 450 kilometres by road and 580 kilometres by rail to Camacari, Bahia State, the site of Brazil’s only copper smelter (Caraiba Metais).