Baja Mining Corp.

Baja Mining Corp.

April 04, 2007 15:53 ET

Baja Mining Definitive Feasibility Study Resources

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2007) - Baja Mining Corp. (the "Company") (TSX:BAJ) is pleased to announce updated resource estimates incorporating the final 20,000 meters of the 2006-2007 in-fill core drilling program for the Boleo Cu-Co-Zn-Mn project located at Santa Rosalia, Baja California Sur, Mexico.

As a result of including data from this drill program and updating the 3D resource models, the Company has increased all resource categories. Measured resources are up by 15.6 million tonnes, Indicated resources up by 33.5 million tonnes and Inferred resources up by 42.1 million tonnes over the resource estimate released February 7, 2007.

Boleo Deposit
Measured, Indicated and Inferred Resources
April 3, 2007
Tonnes CuEq% Cu% Co% Zn% Mn%
Category (1) (2) (3)
Measured (Ms) 74,600,000 1.92 0.93 0.080 0.48 2.72
Indicated (Ind) 202,600,000 1.50 0.62 0.050 0.66 3.10
Total Ms+Ind 277,200,000 1.61 0.70 0.060 0.62 3.00

Inferred 254,600,000 0.95 0.39 0.040 0.63 2.65

1. Using a 0.5% CuEq cut-off
2. CuEq equals Cu + 15 x Co/1.50 + 1.20 x Zn/1.50
3. Mn is not considered in the equivalency formula

Reporting of this resource from Hellman & Schofield Pty Ltd ("H&S") is NI 43-101 compliant and now contains the results of all 40,000 meters of in-fill drilling completed to the end of February 2007. The Company has been working with its mining consultants to incorporate these results into an optimized mining plan for inclusion into the Definitive Feasibility Study Technical Report ("DFS"). Underground mine planning is being completed by Agapito Associates ("AAI") of Grand Junction, Colorado, the open cut plan by Australian Mine Design and Development ("AMDAD") of Sydney, Australia Inc. and the surface infrastructure plan is being developed by Wardrop Engineering ("Wardrop") of Vancouver, Canada.

John Greenslade, President and CEO of Baja Mining Corp, commented, "We are very pleased with the additional resource tonnes defined by the completion of the 2006-07 drilling program. We have increased the overall Measured and Indicated Resource tonnes by more than 20% and now are well advanced in the process of scheduling the first 20 years of mining in the higher grades of copper and copper equivalent resources."

Project Description

The Boleo Cu-Co-Zn-Mn project is located on the east coast of Baja California Sur, Mexico near the town of Santa Rosalia. The deposit contains seven (7) mineralized seams, called "mantos", stacked within a single formation, all dipping gently to the east towards the Sea of Cortez in a step-like fashion, due to post depositional faulting.

The Project consists of roughly 11,000 hectares of mineral concessions and 7,000 hectares of surface occupancy rights, each assembled as a contiguous titled block. The project is located within the "buffer zone" of the El Vizcaino Biosphere, a Mexican National environmental reserve. The required Environmental Impact Manifest (EIM), submitted in early 2006, was approved in November 2006 and the compensation agreement with the Mexican authorities that administer the El Vizcaino Biosphere was received by the Company in January 2007 allowing the project to be built and to operate in the biosphere.

The Project is developing into a series of underground mines using conventional soft rock mining methods, along with small open-cut mines feeding ore to a processing plant utilizing a two stage leaching circuit followed by solid/liquid separation and Solvent Extraction - Electrowinning to produce up to 60,000 tonnes/annum copper and 3,100 tonnes/annum cobalt as metals and 36,000 tonnes/annum zinc as zinc sulphate monohydrate salt.

Going Forward

The resource model provided by H&S is currently being incorporated into optimized underground and surface mine plans by AAI, AMDAD and Wardrop Engineering. These mining plans will support the economic analysis prepared in accordance with the DFS now targeted for release in late April 2007.

Discussions for construction financing are progressing well through the Company's investment advisors, Endeavour Financial International Limited. These efforts are focusing on raising the necessary capital for construction of the process plant and mining infrastructure. The financing is expected to be committed by June, 2007 at which time, ground breaking for site construction is expected to commence.

William Yeo, PhD of Hellman & Schofield (H&S), a Qualified Person, has reviewed the Resource Estimate and technical disclosure contained herein and accepts responsibility for such disclosure.



Some of the statements contained in this release are forward-looking statements, such as statements that describe the Company's expected timing on the DFS; expected timing of ground breaking for site construction; expected timing for commitment of construction financing and other statements. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements by their nature inherently involve unknown risks, uncertainties, assumptions and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements. Material factors that could cause actual revenues to differ materially from those contained in such forwarding-looking statements include (i) fluctuations on the prices of copper, cobalt, zinc and manganese, (ii) interpretation of contract terms, (iii) accuracy of the Company's and consultants' projections, (iv) the Company's ability to finance, receive permits for, obtain equipment, construct and develop the El Boleo Project, (v) the effects of weather; operating hazards; adverse geological conditions and global warming, (vi) impact of availability of labor, materials and equipment; and (vii) changes in governmental laws, regulations, economic conditions or shifts in political attitudes or stability.

These forward-looking statements represent the Company's views as of the date of this release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statements.

Contact Information

  • Baja Mining Corp.
    John Greenslade
    (604) 685-2323
    (604) 629-5228 (FAX)