HELLO ALL

TAKE A GOOD LOOK AT THE CHARTS BELOW. CHECK THIS COMPANY IT SEEMS A GOOD PUNTER BASED ON ITS COPPER MINING POTENTIAL IN PERU.

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RNS Number:9040S
Monterrico Metals PLC
05 December 2003
Monterrico Metals plc
Rio Blanco Pre-feasibility Study
Strong copper prices provide additional lustre to the results of the
Pre-feasibility Study at Rio Blanco in northern Peru.

LONDON: 05 December 2003 : Monterrico Metals plc. ("Monterrico" or the "Company")

is pleased to release highlights from the Pre-feasibility Study which examined
the economics for the development of the Company's 100%-owned Rio Blanco Copper
Project ("Rio Blanco or the "Project").
Discounted cash-flow analysis using data from the Pre-feasibility Study
indicates a pre-tax Project Net Present Value of US$320 million at a discount
rate of 10% and an internal rate of return of 33% using a copper price of 90
cents per pound.
The Pre-feasibility Study was compiled by GRD Minproc whose conclusions where
drawn from individual reports by Snowden Mining Industry Consultants, Vector
Engineering, SGS Lakefield, Golder Associates, Water Management Consultants and
Minproc.
The report appraised four process design options for the development of the
Project, as it is currently understood. The report concluded that the best
financial return for the lowest technical risk was to mine 10 million tonnes of
ore per annum (27,000 tonnes per day) using simple open cut technique and
produce a copper concentrate for shipment to a smelter. Production in this
scenario would average around 100,000 tonnes of copper in concentrate per annum
in the first seven years.
The key advantages at Rio Blanco are;
- The possiblity to mine higher grade ore for the first five years of
production (at an average grade of 1.13% Cu)
- Rapid payback of capital around 3 years and long mine life, 32 years.
- Waste to Ore ratio very low at around 0.7:1 over life of mine.
- Simple metallurgy allows for high recoveries of around 90 - 95% and the
production of a clean high-grade concentrate (30 - 38% Cu)
- Estimated capital cost for the project is US$191 million, which is
modest for its size due to simple mining and processing.
To date, Monterrico has not taken into account the molybdenum present in the
resource. Molybdenum may be extracted in the concentration process and would be
a valuable by-product. The company intends to calculate a molybdenum resource
as the part of the feasibility study, and this has the potential to further
improve the economics of the project.
The Company has recently secured GBP10.2 million (net) to fund the Bankable
Feasibility Study. Drilling contractors have initiated the 20,000 meter infill
drill program to define proven and probable ore reserves. Tunnelling contractors
are extending the "Karlita" tunnel and are presently at 270 meters through
Henry's Hill. Monterrico currently has 20.17 million shares in issue trading at
around 168p and an undiluted market capitalisation of GBP33.9 million.
Chris Eager (CEO) said: "The timing for the Project couldn't be better, there
is sustained international demand for clean high grade copper concentrate and
the outlook for rising copper prices. Rio Blanco looks very attractive at the
current copper price (around 95 c/lb) and sensitivity analysis indicates that
the project could generate robust cash-flows at much lower prices. The
Feasibility Study has begun and results from both the drilling and tunnel should
be released prior to Christmas."
Contact:
Christopher Eager, Monterrico Metals +44 20 7448 5088
Keith Irons, Bankside Consultants +44 20 7444 4155 / 07885 356 639
Richard Chase, Ambrian Partners +44 20 8528 1456

Monterrico plans new study on Peru copper project
Fri 16 July, 2004 20:17
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By Eduardo Orozco

LIMA, Peru, July 16 (Reuters) - Britain's Monterrico Metals Plc MNA.L , which aims to develop what could become Peru's No. 2 copper mine, has agreed to carry out a new, fuller joint environmental impact study with the government to convince farmers that the mine will not pollute land and rivers, the company said on Friday.

Peasants in Peru's northern Andes oppose plans to build the $370 million Rio Blanco copper project and on Thursday rejected conclusions of a government report that said the mine's environmental impact would be minimal, regional authorities said.

"Community leaders reject the report and they want the miners to go. They think the project will contaminate their fields and the rivers," said Tomas Saavedra, a government official for the northern Piura region who was present when the report was presented.

Around 1,000 armed peasants in April attacked the copper project near the Ecuadorean border, seeking to drive out the miners.

"There will be another report and this time the company will take part. It will be much more detailed," said Monterrico spokesman Jose Arrieta from Piura. Monterrico says Rio Blanco could be Peru's No. 2 copper producer from 2007.

The impact of mining on the environment has been a sensitive issue since farmers in the northern fruit-producing region of Tambogrande last year held demonstrations and blocked roads to protest plans for a gold and copper open pit mine right under their town that they said would ruin their crops.

Peru in December canceled its option agreement with Canada's Manhattan Minerals Corp. MAN.TO for not meeting agreement requirements, and Tambogrande residents claimed victory as theirs.

Monterrico said exploration at the remote Rio Blanco site was continuing despite several stoppages caused by local resistance. The company has diamond-drilled some 49,000 feet (15,000 meters) of rock to a depth of up to 980 feet (300 meters) to determine the size of the deposit.

"We expect to drill another 5,000 to 6,000 meters (16,400 to 19,600 feet) at this stage," Arrieta said.

Mining analyst Luis Bravo of Lima-based Centura SAB brokerage said Monterrico needed to investigate peasants' demands more carefully if it were to resolve the conflict.

"It's better to have the opposition before the investment starts. It's very important for the project sponsors to understand a bit better what the people need and to explain the environmental impact and compensation studies," he said.

The mine, which would take between 12 and 18 months to build, would have an average output of 200,000 tonnes a year of copper, Monterrico's Chief Operating Officer Ray Angus told Reuters earlier this year. That production rate would equal a quarter of Peru's total 2003 copper output, Monterrico has said. (Additional reporting by Robin Emmott)

For you guys : press mention in the Guardian Newspaper today

Monterrico Metals, the copper company, was marked 14p higher at 394.5p, amid talk that two Canadian firms have expressed an interest in acquiring it. According to yesterday's gossip, they are prepared to offer around 600p for Monterrico.

http://www.guardian.co.uk/business/story/0,3604,1273290,00.html

I went long these on the latest pullback.

600p is good for me! Thx SueHelen. ;-))

Might consider a couple more early Monday if there's legs in this story.

Hey Monterricans.

Any more hens on the Canucks that want Monterrico. I'm unable to trace anything in Canada...any news would be very welcome.

Might wan't to try checking out www.coppernews.com - gives some updates on the state of copper mining.

Sooner44

Hi, it is up 8.69% today with excellent more that average volumes... maybe some news coming soon.

now 11.31% and volumes rising

and finished at 16.31% By the amount of volume, i would like to think that some good news are on the way very soon. Let see it it breaks the 500 tomorrow with some good news. Thanks

xmortal - Why such a major jump? The Times ran a good article today on the state of Copper and again raised the issue of bid speculation, again suggesting 600p bid price - but nothing bubbling in the rumour grapevine as to bidders...any thoughts?

Sooner44

The rumours been around for at least 2 months so I guess so long it pushes the price up, i dont really care. Lets hope some news are out soon to keep the momentum.

Up 5.58% today. and passed the 500p mark. nice ride

The Indpendent reckons they could reach 700p. There should be some good news soon regarding Rio Blanco. What a great couple of days.

Jacks: could you post the article of the Independent pls?. Thank you.

Hey, currently 519 and rising, and still no news! Like to see the Independant article - that is a big statement, I wonder where they have reahced that figure from?

is it in todays, independent or yesterday?

XMortal. The article is in todays paper. It makes impressive reading. I have made a decent profit and getting a bit twitchy, I will now hold on and not sell as planned. Any tips would be much appreciated with Monterrico

XMortal. Sorry not able to post the article. Gave the paper to a friend at work who now wants to jump on the band wagon.

I first noticed them in an article in shares mag at 80p but really got in at 120p. Then i sold at 370p and went back at 360p So I am in a profit already an twice. I have a feeling some mining co will approach them eventually. I will hold at least till it gets round 550-600p. I dont much about monterrico themselves but Peru itself is more stable now, more and more mining cos are piling at it has huge mineral reserves. It is the second most important industry after fishing. visit: www.peru.com You may get an idea of where the country and some useful links. Beatiful country and yummy food. Been there twice.

Got it:

Fill ya boots.

Todays Independent.

Monterrico Metals jumped 68.5p to 488.5p on talk that the company's management team had given mining majors until 1 October to table bids for the company. Back in May, the group in effect put itself up for sale when it appointed HSBC as a strategic adviser. Numis Securities believes Monterrico's directors, who are major shareholders, are keen to crystallise their interest in the company so that they can go on to start a new mining venture.

Monterrico's major asset is Rio Blanco copper project in Peru and the broker suggested yesterday that it may soon come out with a statement upgrading the size of the find. Numis hiked its price target all the way to 704p.

XMortaling. Will you like me be buying some more? I will be looking to sell at 6.50. What about you/ others?

Hello Jacks. I cant really advised you to buy. The decision is yours. I could add more if only have more cash. My holdings is around 3000 so it is not bad.