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Re: News Releases - Tuesday, April 24, 2007
FRONTERA COPPER OPERATIONS AND CORPORATE UPDATE
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Toronto, ON -- April 24, 2007 -- Frontera Copper Corporation (FCC: TSX,
FCC.NT, FCC. NT.A: TSX) is pleased to report on recent corporate and
operations activity.
On April 19th an inaugural ceremony was held at the Piedras Verdes
operation to recognize the completion of construction, commissioning
and ramp up toward full production. Distinguished guests representing
the Federal and State Governments of Mexico, the Canadian Ambassador to
Mexico, other mining companies, contractors and employees of Cobre del
Mayo attended the ceremony.
The company is pleased to report that during the week of the
inauguration celebration, cathode copper production reached an average
daily rate of 87.5 metric tons, or 99.0% of design capacity, including
a peak 24 hour plating rate of 91.8 tonnes (104% of total plating
capacity). Full production can be expected to be announced once these
rates have been sustained over an appropriate period of time.
These performance levels are the result of the success of the
adjustments made in the heap leaching process and the regular placement
of fresh ore under leach. The average PLS grade for April to date is
approximately 1.90 g/l and the average PLS flow to the SX plant over
the same period has averaged 1,803 cubic meters per hour. Ore is being
placed on the heap leach pad in lifts of five meters (previously 10
meter lifts). To accelerate copper dissolution and improve solution
grade, approximately two thirds of the ultimate acid application is
being applied by pre-soaking the ore with a strong solution of sulfuric
acid prior to rinsing it with normal raffinate solutions.
Phases 2A and 2B of leach pad area are nearly complete and ore
placement has begun. Pre-soaking with acid will begin in mid-May, once
the construction of the second PLS pond and pumping station has been
completed. These construction projects are included in the
approximately $30 million 2007 capital estimate.
"I am very pleased with the progress that our operation has made in
recent weeks," says Gary Loving, President and CEO Frontera Copper
Corporation. "Each mine has its unique challenges, and generating the
solution to allow filling of the plant to capacity represents the final
step in completing the project. Our focus will now be to continue to
improve the efficiencies and costs of the operation while evaluating
further opportunities to improve shareholder value."
The company recently completed the limited hedging program, adopted to
ensure that sufficient revenues are generated from its copper cathode
sales over the next two years to cover certain known financial
obligations. For the total program, the Company has placed contracts
for 30,575 metric tons of copper at an average price of $2.85 per pound
over the 24-month period from March 2007 through February 2009. The
average monthly prices received range from a high of $3.11 in May 2007
to a low of $2.58 in February 2009.
The upcoming financial obligations include the repayment of the debt
currently issued as free trading notes and planned sustaining capital
expenditures. The program provides that the Company may hedge up to 50%
of its forecasted production over a two-year period, which would
represent about 7% of the recoverable copper contained in the present
13 year mine plan.
The company is also very pleased to announce the appointment of Mr. Tim
J. Swendseid as Vice President of Engineering of Frontera Copper
Corporation. Mr. Swendseid has over twenty years of underground and
open pit experience in various management, supervisory and engineering
roles with Phelps Dodge Mining Company (a subsidiary of
Freeport-McMoRan Copper & Gold Inc.) and Asarco Inc. Most recently he
was the Director of Mining of Phelps Dodge's North American One Mine
organization. Previously, he worked at Phelps Dodge operations in
Arizona and Chile. Mr. Swendseid holds a Bachelor of Science degree in
mining engineering from the Montana College of Mineral Science and
Technology and an MBA from the Eller Graduate School of Management,
University of Arizona. He is a Licensed Professional Engineer in
Arizona and Idaho, a Registered Member of SME and a Member in the
Instituto de Ingenieros de Minas de Chile.
Annual General Meeting
Frontera Copper will hold its Annual General Meeting on June 27, 2007
at 3:00 p.m. The meeting will be held in Toronto at The Dominion Club
"Melinda Gallery," One King Street West.
About Frontera Copper
Frontera Copper is a Canadian mining, development and exploration
company whose principle activity is the production of copper cathode
from the Piedras Verdes run-of-mine heap-leach copper operation in
Sonora, Mexico. Production commenced in October, 2006 and is expected
to reach the operations' full annual production capacity of 70 million
pounds of copper cathode in 2007. A total of 942 million pounds of
copper is projected to be produced during the 18-year life of the
operation. Existing resources and prospective exploration targets
adjacent to the main open-pit have the potential to extend the life of
the project.
For further information, please see Frontera Copper's website at
www.fronteracopper.com or contact:
Ann Gibbs
Manager of Investor Relations
Tel.: 416 350-5132
Toll-free: 888 323-0973
Email: ann@fronteracopper.com
Dave Peat
Chief Financial Officer
Tel.: 602 667-3202
Email: dave.peat@fronteracopper.com
Information in this news release that is not current or historical
factual information may constitute forward-looking information or
statements within the meaning of applicable securities laws. Implicit
in this information, particularly in respect of statements as to future
operating results and economic performance of the Company, and
resources and reserves at the Piedras Verdes operations, are
assumptions regarding projected revenue and expense, copper prices and
mining costs. These assumptions, although considered reasonable by the
Company at the time of preparation, may prove to be incorrect. Readers
are cautioned that actual results are subject to a number of risks and
uncertainties, including risks relating to general economic conditions
and mining operations, and could differ materially from what is
currently expected. The Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
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Copyright (c) 2007 FRONTERA COPPER CORPORATION (FCC) All rights
reserved. For more information visit our website at
http://www.fronteracopper.com/ or send
mailto:emaillist@fronteracopper.com
Message sent on Tue Apr 24, 2007 at 6:36:12 AM Pacific Time
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