Drilling to commenceMr. John Greenslade reports
EXPLORATION DRILLING TO COMMENCE IN THE HUMBOLT-MONTADO BASINS, CONTIGUOUS TO THE BOLEO COPPER-COBALT-ZINC DEPOSIT
Baja Mining Corp. has received all necessary permits to undertake an underground test mining program, an in-fill drill program and an exploration drilling program on the Boleo project, Santa Rosalia, Baja California Sur, Mexico.
El Boleo is a copper, cobalt and zinc deposit that is currently proceeding to definitive feasibility study under the direction of Bateman Engineering Pty. Ltd., of Brisbane, Australia. The project is currently envisioned primarily as a 7,500-tonne-per-day underground mine, supplemented by a series of small open cut mines, during the first approximately 17 years of mine life and thereafter an open pit mine at 11,500 tonnes for another approximately 18 years. The preliminary mine plan is currently being completed by the company's independent mining consultant. The final mine plan will not be completed until in-fill drilling of resources that are envisioned to be mined by underground mining methods is completed and which is not anticipated to commence until May, 2005.
The company's 100-per-cent Mexican subsidiary has retained Layne de Mexico S.A. de C.V. of Hermosillo, Sonora, to conduct a nine-hole drill program totalling 2,500-metres, to test the previously undrilled Humbolt and Montado basins. Layne's truck-mounted drill rig is scheduled to arrive in Santa Rosalia on Dec. 5 or Dec. 6, with drilling to commence immediately thereafter. The Boleo deposit was formed as a sedimentary deposit that formed in a shallow sea-floor environment around volcanic islands. To the east of the volcanic islands known as Cerro Montado and Cerro Juanita, a portion of the Boleo deposit was exploited by the Companie du Boleo during the period 1884 to 1934 and produced copper ore grading in excess of 4.8 per cent copper (cobalt and zinc were known to be present but were neither recovered nor assayed for). The company's geological staff and geological consultants (see report of Dave Mehner, PGeo, filed March 29, 2004, at www.sedar.com) have postulated that the area to the west of Cerro Montado and Cerro Juanita would have a similar geological environment and could potentially hold mineralization of similar characteristics (grade and thickness) as the area to the east. A previous operator conducted a geophysical survey (transient electromagnetics) across a portion of the Montado basin that indicated the presence of a potential basin west of Cerro Montado, which has never been drill tested. Dave Mehner, PGeo, a qualified person, will supervise the drill program on behalf of MMB.
Tawn Albinson, managing director of MMB and a qualified person, has reviewed this release and accepts responsibility for its content.