Frontera Copper Corporation
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Frontera Copper Corporation

September 20, 2005 15:52 ET

Frontera Copper Receives Permits to Commence Construction at Piedras Verdes

TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2005) - All dollar amounts are expressed in United States currency unless otherwise noted.

Frontera Copper Corporation (TSX:FCC)(TSX:FCC.NT)(TSX:FCC.WT) is pleased to announce that the Secretariat of Environment and Natural Resources (SEMARNAT) of Mexico has issued the required permits that will allow Cobre del Mayo, S.A. de C.V. (CDM), a wholly owned subsidiary of Frontera Copper to commence construction of the Piedras Verdes copper mine in Sonora, Mexico.

SEMARNAT issued two "Change of Land Use" Permits. The first authorizes construction and development of the mine site, and the second permits the building of a new power line and access road.

The permits and licenses received by CDM are from Federal, State and local authorities and are required to initiate construction of the project. "With the receipt of these permits, we remain on schedule to be producing LME grade "A" copper cathode in the second half of 2006. We are ready to mobilize the construction crew at Piedras Verdes and will commence construction activities immediately. Grupo PEAL, the mining contractor, has begun mobilizing equipment and staff to begin pre-production development in the last quarter of 2005," says Gary Loving, President and CEO of Frontera Copper.

Basic engineering has advanced and is nearing completion. Detailed engineering has also commenced. In addition, commitments of over $18 million have been made toward project development. Used buildings have been disassembled and prepared for shipment from the Phelps Dodge Hidalgo Smelter in New Mexico, and long lead items such as rectifier-transformers and copper cathode stripping machines, are in fabrication.

In May 2005, the National Water Commission granted the company a water consumption license for 2.4 million m3 of the annual 4 million m3 of water required for the project. Water exploration activities for the remaining 1.6 million m3 are complete and water wells are now being constructed in the well fields established earlier by the company. The well field is approximately four kilometres east of the mine site with additional wells adjacent and to the north of the mine site. Once the wells have been constructed with their appropriate surface rights established, the remaining water consumption license will be obtained.

CDM's Director of Operations Jesús Gutiérrez Bastida has hired key management and operational staff who are now set up in temporary office facilities in Alamos, Sonora. They will relocate to the mine site as soon as the mine office facilities are built and communications have been established.

About Frontera Copper

Frontera Copper was incorporated in March 2002 to purchase and bring into production the Piedras Verdes open pit, run-of-mine, heap leach, SXEW copper project in Sonora, Mexico. The company plans to begin construction activities in the third quarter of 2005. Copper production is expected to commence in the second half of 2006 at an annual rate of 70 million pounds per year of LME Grade A cathode at an average life-of-mine cash operating cost of $0.58 per pound. A total of 942 million pounds of copper is projected to be produced during the 18 year life of the project. Existing resources and prospective exploration targets adjacent to the proposed open pit have the potential to improve the economics and extend the life of the project.

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