August 19, 2008
TSX:BAJ
PRESS
RELEASE
BAJA
MINING TO TAKE FIRST DELIVERY OF MINING EQUIPMENT
Baja
Mining Corp. (the ?Company? or ?Baja?) is pleased to announce that the first
shipment of major mining equipment for use at its Boleo
project is expected to arrive at site in Baja California Sur
in August or early September 2008. The equipment will immediately be put
into service in development of stockpile benches, access roads to the planned
underground portals, and stripping of the open-cut mines and within the
tailings impoundment facility. It will also be available for preparation
of the process plant site and tailings facility. Subsequent deliveries of the
remaining surface mining equipment will be occurring over the balance of 2008;
and the first arrival of underground production mining equipment is expected in
late December 2008 for startup in first quarter 2009. These initial
deliveries are focused on primary mining equipment and include the continuous
mining machines, roof bolters and other production machines.
Baja
continues to make progress on the construction schedule, targeting start of
commissioning of the process plant in the first quarter of 2010. All testwork on the process technology was completed in 2006 as
part of the Company?s Definitive
Feasibility Study. The process and metallurgical testing took place at two
continuous pilot plant campaigns at a research facility in Ontario, Canada.
The pilot plants finalized the design criteria for recovery of metals and
consumption of key consumables and demonstrated the high clay content of the Boleo deposit does not present a problem for the counter
current decantation circuit, as well confirmed the viability and efficiency of
the recovery process. It is planned that mining will commence approximately one
year in advance of start-up of the process plant to ensure that a sufficient
stockpile of ore is available to the plant at that time. Development of
the underground mines will provide access to the first, high-grade orebodies that are scheduled for production and will also
ensure that all mining personnel are fully trained prior to startup of the
process plant.
At the
plant site, work is well advanced on installation of the construction camp and
associated infrastructure, construction offices and warehouses/lay down areas,
improvements to project wide site access and the desalination plant.
Between the Company and its construction contractors, there are now over 200
workers on site. Contracts have been let for camp catering and administration.
The Company is now well underway in the hiring of the workforce for the
project. The Company has its own internal project management team and has
continued to add additional seasoned veterans from the industry. Work
continues with the potential earthworks and dock contractors have been issued
bid drawings and specifications.
The Boleo
Project will produce copper cathode, cobalt cathode and zinc sulphate at site. After the ramp up period it is
expected that annual production will be approximately 125 million pounds of
copper cathode and 3.7 million pounds of cobalt cathode for the first several
years. Using conservative price estimates for cobalt and zinc sulphate ($15./lb Co and $1250/t zinc sulphate),
the net cash cost of copper production is expected to be close to zero,
providing healthy cash flows to survive any drop in the price of copper.
ON
BEHALF OF THE BOARD OF DIRECTORS OF
BAJA
MINING CORP.
?John
W. Greenslade?
JOHN
W. GREENSLADE, PRESIDENT
For
further information please contact John Greenslade, President, at (604)
685-2323
Some of the
statements contained in this release are forward-looking statements, such as
statements that describe the Company?s expectation
and timing of arrival of mining equipment , projected metal prices, projected
production rates, estimated start up of mining operations, estimated start up
of operations 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.
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