VANCOUVER, BRITISH COLUMBIA, Oct. 28, 2009 (Marketwire) --
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/28/09 -- Baja Mining Corp. (TSX: BAJ)(OTCQX: BAJFF) is pleased to provide shareholders with an update on the Company and its Boleo Project in Baja California Sur, Mexico.
Boleo contains a large copper deposit with significant quantities of cobalt, zinc and manganese. The mine plan envisages a long-life, low-cost operation in a mining-friendly jurisdiction.
Capital Cost and Construction Financing
In April 2009, the Company appointed ICA Fluor, a joint venture between U.S.-based Fluor Corporation and Empresas ICA of Mexico, to perform the engineering, procurement and construction management (EPCM) for Boleo. ICA Fluor began work on Phase I of the EPCM contract in May 2009 by developing an open book capital cost estimate and project construction schedule. The capital cost estimate was expected to be completed by the end of the third quarter of 2009.
"Although slightly delayed, the further investment of time in this review is both necessary and value-adding. I want to assure shareholders that Baja and ICA Fluor have been working hard, including conducting further detailed engineering, to complete the review as soon as possible. It is being done with a thoroughness that will ensure its accuracy and value," says John Greenslade, President and CEO of Baja.
"The capital cost estimate, expected to be released shortly after a final review by the Company, will form the basis for how project financing is structured and negotiated," he says.
ICA Fluor will continue to advance detailed engineering to ensure the accuracy of costs associated with the estimate and to facilitate construction of the mine site and process plant next year.
Also, Baja has been working with its financial advisor, Endeavour Financial International Corporation, to implement an optimum financing package for construction of Boleo. The Company has had significant interest from senior lenders and development agencies.
"A number of key interested parties have visited the Boleo mine site and are continuing their due diligence. They will require time to review the updated capital cost estimate once it is finalized," says Mr. Greenslade.
Mr. Greenslade also commented that "We are working diligently on this process and anticipate we will be able to announce details of our progress in the near future."
Mobilization of Equipment
The steam turbine for an electricity co-generation facility to be installed at Boleo has been mobilized from Siemens' manufacturing plant in the Czech Republic to its European point of departure in Antwerp, Belgium. The steam turbine will depart for its holding destination, Houston, Texas, in November 2009. It will be moved to site once construction on the process plant begins.
