Corriente Resources Secures Engineering Services for Mirador Mine Expansion

Corriente Resources Inc. has announced a significant milestone in its Mirador copper-gold mine project in Ecuador, securing the services of SNC-Lavalin Chile S.A. for full Engineering and Procurement Services to start-up and expand the mine. This move comes as the company seeks to address the global shortage of engineering services available to meet the growing demand for metals. With a 38-year mine life estimated in an optimization study, Corriente aims to expand the starter project to 50,000 tpd and generate a 24% pre-tax IRR and a NPV of $US 349 Million.

Key Takeaways:

• Corriente Resources Inc. has signed a Letter of Award with SNC-Lavalin Chile S.A. for Engineering and Procurement Services for the Mirador copper-gold mine expansion in Ecuador.
• The agreement addresses the global shortage of engineering services for new operations, with SNC-Lavalin Chile's experienced engineering group to design and construct the mine.
• The optimization study by Mine Development Associates established a 38-year mine life for the 25,000 tpd starter project, with a potential expansion to 50,000 tpd.
• Tom Milner, President of Corriente Resources, emphasized the company's plan to build a strong mid-tier copper producer with significant growth potential.
• The Mirador mine is one of the few new, sizeable copper projects available for near-term production, with a unique pipeline of copper resource development projects in the Corriente Copper Belt District.
• The company controls a 100% interest in over 50,000 hectares within the Corriente Copper Belt, with three copper and copper-gold porphyry deposits and a fourth deposit in the district, Mirador Norte, where resource delineation drilling is ongoing.

Statistics:

• The estimated mine life for the Mirador starter project is 38 years.
• The plan is to expand the starter project to 50,000 tpd with construction of the expansion underway in year 5 of operations.
• The estimated pre-tax IRR for the overall Mirador mine plan is 24%.
• The estimated NPV is $US 349 Million at an 8% discount rate using a long-term copper price of $US 1.10/lb.
• The Corriente Copper Belt District spans over 50,000 hectares, with three identified copper and copper-gold porphyry deposits.
• Six additional copper and copper-gold exploration targets have been identified in the Corriente Copper Belt.

Sources:

• CCNMatthews via COMTEX, Mar 15, 2006
• Corriente Resources Inc.
• SNC-Lavalin Group of Companies
• Mine Development Associates
• National Instrument 43-101