The Drilling Program is part of a US$30 Million PFS, which was approved by the Joint Venture Partners of Compañia Minera Zafranal ("CMZ") as per the Company’s press release of July 2, 2014.
The Zafranal coppergold project ("the Zafranal Project") is located in southern Peru approximately 90 kms northwest from the city of Arequipa. The Zafranal PFS will comply with National Instrument 43-101 Canadian Guidelines for a PFS and incorporate the results of this Drilling Program.
In addition, the Company will carry out a formal Environmental and Social Baseline Study and other engineering and environmental studies that will be required for the eventual preparation of an Environmental Impact Assessment for the Project. The PFS is planned for completion by early 2016, with an associated peak workforce of approximately 240 employees and contractors.
AQM’s US$9 Million share of the PFS expenditure will be funded from the US$19 Million in cash currently held in its 60% owned Peruvian subsidiary, Minera AQM Copper Peru ("MAQM"), for the purpose of funding AQM’s share of expenditures related to the Zafranal Project.
The Company is also pleased to announce that it continues as Operator for the Zafranal Project and that the arrangement regarding the Operator’s Fee payable by CMZ, primarily to cover oversight by the Company, has been modified from a variable to a fixed annual amount, of which US$788,000 is directly payable to AQM in Canada, thus offsetting general expenses at the parent company level. AQM currently holds C$2.3 Million in cash to fund its corporate requirements. MAQM will also receive US$180,000 per annum in service fees from CMZ to partly offset the general and administration expenses at the subsidiary level.
AQM CEO, Bruce Turner stated, "The ability to progress the Zafranal Project in a very depressed resource market deserves special recognition by investors, as it is indicative of the high quality of this asset and its management team."
