Resource World Magazine

F E B R U A R Y / M A R C H 2 0 1 5 www.resourceworld.com 51 los andes copper's [LA-TSXV] Vizca- chitas copper-molybdenum project in Chile has flown under the radar screen for a number of years now. The market heav- ily discounted the project because the core claims of the deposit were only 51% held by the operator. This issue hindered explo- ration and plagued the project for several decades. In 2010, Los Andes was able to consolidate the entire property under its ownership and recommence work to fur- ther advance Vizcachitas. This promising copper project once resided in the stable of Ross Beaty's Lumina Copper. In 2005 Vizcachitas was trans- ferred to Global Copper Corp, a successor company of Lumina and was purchased by Los Andes in 2007. Vizcachitas has a NI 43-101 compliant indicated resource of 1,038 million tonnes averaging 0.434% copper equivalent (0.373% Cu and 0.012% Mo). This translates to 8.5 billion lbs of in-situ copper and 281 million lbs of in-situ molybdenum. Inferred resources are 318 million tonnes averaging 0.405% copper equivalent (0.345% Cu and 0.013% Mo) containing an estimated 2.4 billion lbs copper and 88 million lbs molyb- denum. This resource was based on a 0.3% copper equivalent cut-off grade. The property covers 173 km 2 and is about 150 km northeast of Santiago. Only 5% the property has been explored and significant additional porphyry discovery potential exists. The driving time from Santiago is about three hours and 80% of the route is paved. The project is situated at an average elevation of 2,400 metres and Los Andes has secured water rights (250 litres/second) for the project. In addition, the project is only 105 km from a 220 kV substation at Nogales and Los Andes owns a 29 MW run-of-river hydro electric plant on the property. Coldelco's Ventanas copper smelter and deep sea port at Valpariaiso is 180 km by road from Vizcachitas. Another smelter owned by Anglo American is 100 km by road southwest of the project. Los Andes has also completed a Preliminary Economic Assessment. The base case outlined a mine life of 28 years and produced a pre-tax NPV of $746 mil- lion with an IRR of 11.4% based on a flat copper price of US $2.75 per lb and a molybdenum price of US $13.64/lb. Life-of-Mine by-product cash costs were estimated at US $1.69/lb copper. Capex costs were estimated to be $2.9 billion. Vizcachitas is one of the largest undevel- oped copper assets not currently controlled by majors. Towards that end, Los Andes management is evaluating various staged throughput scenarios in order to lower the capex hurdle and ultimately make the asset more attractive to the majors. Los Andes currently has 200.4 million shares outstand- ing and a market capitalization of about $37 million. n MINING Los Andes showcasing Vizcachitas Project Monthly Dividends: Gold, Silver or Cash WWW.GOLDRESOURCECORP.COM Gold Resource Corporation NYSE MKT: GORO

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