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AQM Copper Releases Updated Preliminary Economic Assessment for the Zafranal Copper Gold Project

AQM Copper Releases Updated Preliminary Economic Assessment for the Zafranal 
Copper Gold Project 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/12/13 -- AQM
Copper Inc. (TSX VENTURE:AQM)(BVL:AQM) ("AQM" or the "Company") is
pleased to announce the completion of a positive, independent Updated
Preliminary Economic Assessment ("PEA Update ") of the Company's
Zafranal Project ("Project") located in the Southern Peru Porphyry
Copper Belt. This PEA Update follows the PEA issued on January 18,
2013 ("January 2013 PEA") that was based on concentrator throughput
of 80,000 tonnes per day (t/d), producing an average of 93,907 tonnes
per annum (t/a) of copper in concentrate and a heap leach and
electrowinning process expected to yield an average of 9,276 t/a of
high quality copper cathode from oxide and secondary sulphide
material.  
The PEA Update was commissioned to examine opportunities to develop a
smaller, less capital-intensive project that would incorporate an
alternative water source to desalinated seawater, while using the
same long-term forecasted copper (Cu) and gold (Au) prices as those
used in the January 2013 PEA, US$3.00/lb and US$1,274/oz,
respectively.  
The PEA Update was completed by Tetra Tech, and contains production
parameters, capital costs, operating costs, pre-tax and post-tax
financial projections for an open pit mine processing 44,000 t/d of
mill feed, producing an average of 54,556 t/a of copper in
concentrate and a heap leach and electrowinning process expected to
yield an average of 5,949 t/a of copper cathode. The Project is
projected to yield the following financial results:  


 
                       Summary of Financial Results(1)                      
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Description                                           Pre-tax    Post-tax(2)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Initial Capital Cost (US$ million)                      1,122          1,122
----------------------------------------------------------------------------
Net Cash Flow (US$ million)                             3,592          2,068
----------------------------------------------------------------------------
Net Present Value at 5% discount rate (US$                                  
 million)                                               1,855            988
----------------------------------------------------------------------------
Net Present Value at 8% discount rate (US$                                  
 million)                                               1,261            616
----------------------------------------------------------------------------
Net Present Value at 10% discount rate (US$                                 
 million)                                                 971            435
----------------------------------------------------------------------------
Payback (years)(3)                                        2.6            3.2
----------------------------------------------------------------------------
Internal Rate of Return (%)                              25.4           18.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:                                                                      
(1) Valuation based on 100% Project and 100% Equity. The Zafranal Project is
owned through a 50/50 corporate joint venture between Teck Resources Limited
and the Company's operating subsidiary, Minera AQM Copper Peru S.A.C.       
("MAQM"). MAQM is owned 60% by the Company and 40% by Mitsubishi Materials  
Corporation. As such, the Company has a 30% beneficial ownership interest in
the Zafranal Project.                                                       
(2) Includes mining royalty, special mining tax, corporate income tax and   
workers' profit sharing                                                     
(3) From the start of mill operations                                       

 
Tetra Tech prepared the PEA Update including a new resource estimate
based on a revised geological model of the Zafranal Main and Victoria
Zones, which incorporates 39 additional drill holes. The resource
estimate included in the PEA Update pertains to the Main and Victoria
Zones, whereas the January 2013 PEA also included resources from the
Sicera Norte and Sicera Sur Zones. Sicera Norte and Sicera Sur Zones
were excluded from the updated resource estimation, as these deposits
were deemed uneconomical given their tonnage and grade of
mineralization and distance from the proposed process facilities. A
summary of the mineral resource for the PEA Update at a 0.2% and a
0.3% copper cut-off grade appears in the following tables: 


 
Zafranal Main and Victoria Zones Kriged Resource at 0.2% Copper Cut- 
 off                                                                 
                                                                     
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                       Cu          Au
DESCRIPTION                           TONNAGE         (%)       (g/t)
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main Measured            185,431,844        0.45        0.09
Victoria Measured                  27,303,116        0.29        0.04
---------------------------------------------------------------------
Total Measured                    212,734,960        0.43        0.09
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main Indicated           340,207,216        0.35        0.08
Victoria Indicated                 68,000,158        0.26        0.03
---------------------------------------------------------------------
Total Indicated                   408,207,374        0.34        0.07
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
---------------------------------------------------------------------
Total Measured & Indicated        620,942,335        0.37        0.08
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main Inferred             36,692,919        0.27        0.11
Victoria Inferred                  12,539,388        0.26        0.04
---------------------------------------------------------------------
Total Inferred                     49,232,307        0.26        0.09
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main and Victoria Zones Kriged Resource at 0.3% Copper Cut- 
 off                                                                 
                                                                     
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                       Cu          Au
DESCRIPTION                           TONNAGE         (%)       (g/t)
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main Measured            114,076,693        0.57        0.10
Victoria Measured                   8,960,982        0.39        0.05
---------------------------------------------------------------------
Total Measured                    123,037,675        0.56        0.10
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main Indicated           139,911,533        0.51        0.09
Victoria Indicated                 13,344,577        0.35        0.05
---------------------------------------------------------------------
Total Indicated                   153,256,110        0.50        0.09
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
---------------------------------------------------------------------
Total Measured & Indicated        276,293,785        0.52        0.09
---------------------------------------------------------------------
---------------------------------------------------------------------
                                                                     
Zafranal Main Inferred              6,997,829        0.41        0.22
Victoria Inferred                   2,075,345        0.36        0.05
---------------------------------------------------------------------
Total Inferred                      9,073,174        0.40        0.18
---------------------------------------------------------------------
---------------------------------------------------------------------

 
The reader should be aware that this economic assessment is
preliminary in nature, and includes inferred mineral resources that
are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves. Mineral resources that are not
mineral reserves do not have demonstrated economic viability. The
valuation is based on 100% of the Project and 100% Equity. The reader
should also be aware that there is no certainty that the results
projected in the preliminary economic assessment of the Project will
be realized.  
PEA UPDATE HIGHLIGHTS 


 
--  The portion of the reported resource within an economic pit shell ("in-
    pit mineral resource") suitable as feed to a concentrator totals 352.6
    Mt grading 0.41%Cu and 0.08 g/t Au, and it is expected to produce 2.77
    billion pounds of copper and 427,000 ounces of gold over the life of the
    Project. 
--  The in-pit mineral resource suitable as feed to a leach facility totals
    61.1 Mt grading 0.34% Cu, and it is expected to produce 275.4 million
    pounds of copper over the life of the Project. 
--  Conventional open pit operation with mine life of approximately 25 years
    (including two years of pre-stripping and two years of stockpiled feed
    processing) with a strip ratio of 0.70: 1 
--  Conventional porphyry copper concentrator rated at a nominal 44,000 t/d
    throughput producing an average of 54,556 t/a of copper in concentrate
    over a 23-year period. 
--  Thickened tailings disposal in a natural basin approximately 1.6
    kilometers (km) downhill from the plant site. 
--  A 3.7 km tunnel will feed material from the pit to the mill. 
--  Permanent heap leach pad and solvent extraction and electrowinning (SX-
    EW) plant designed to produce an average of 5,949 t/a of high quality
    copper cathode from oxide and secondary sulphide material over a 21-year
    period. 
--  MAQM has ongoing dialogue with regional and local authorities and the
    representatives of organizations of water users to assess various
    options for sourcing water for the Project. For this PEA Update, the
    fresh water supply for the Project is assumed to come from the Majes
    River basin during the wet season, when river flow is in flood
    conditions, typically exceeding 32 m3/s. The water intake on the Majes
    River would be situated approximately 35 km from the proposed plant
    site. The water would be stored on site in a section of the Tailings
    Management Facility (TMF) and reclaimed for use as process water all
    year round. 
--  The Zafranal Property lies outside areas of agricultural activity and
    there are no communities located on the Property. 
--  MAQM has an ongoing extensive stakeholder relations program implemented
    in an effort to ensure that the Company fully engages with the local
    communities and regional authorities, informs on project activities,
    addresses concerns and reduces or mitigates the potential impacts of the
    Project. 
--  Additional exploration targets have been identified on the property and
    drilling is planned for early 2014. 

 
Bruce Turner, President and Chief Executive Officer of AQM states,
"We are very pleased with the results of the PEA Update as it
provides the Company with an attractive alternative project
development to that considered in the January 2013 PEA on the basis
of water supply, site layout, and capital and operating costs. As a
result of our engagement with the regional and local authorities and
representatives of organizations of water users, we believe the Majes
River will provide a viable water supply alternative to the
previously proposed desalination plant and we will continue to
discuss this option with communities located in the Majes River
Basin. In addition, changes to the layout and mine plan, which now
include a 3.7 km tunnel to feed material from the pit to the mill
coupled with the reduced production requirements has significantly
reduced our capital and operating cost estimates. We believe the
revised plan to be an attractive option and the proposed production
levels provide an opportunity to optimize feed grade throughout the
life of the mine. We are now in a position to decide on an
appropriate development scenario for the project and take it to the
next level of engineering." 
PEA SUMMARY 
LOCATION: 


 
--  The Zafranal Project is located in southern Peru about 150 km by road
    (90 km straight-line distance) northwest of the city of Arequipa, 80 km
    from tidewater and approximately 150 km by road from the Port of
    Matarani. 
--  The regional climate is arid, with average temperatures ranging between
    12 degrees C in winter and 28 degrees C in summer. The elevation of the
    proposed open pits ranges from 2,775 to 2,295 meters above sea level.
    Precipitation is scarce and agriculture is generally possible only in
    river valleys where there is irrigation. 

 
GEOLOGY: 


 
--  The occurrence of mineralized porphyries is structurally controlled by a
    northwest trending series of strike-slip faults belonging to the
    Incapuquio fault system, and regional east-west trending structures. The
    intersections of these two fault systems appear to be the main
    mineralization control on the Property. 
--  Additional exploration targets have been explored along both main
    structural trends, with new geophysical and geochemical anomalies found
    on several of them. Two of these anomalies, Ganchos and Campanero are
    programmed for exploration in 2014. 

 
MINERAL RESOURCE: 


 
--  The Mineral Resource was calculated using ordinary kriging on 62,025
    samples from 114,922 m of drilling that resulted from 335 diamond and
    reverse circulation drill holes. 
--  The resource considered mineralized material greater than 0.2% Cu from
    two deposits on the Property: Main Zone and Victoria Zone. 
--  Measured and Indicated Resource at a 0.2% Cu cut-off is 620.9 Mt grading
    0.37% Cu and 0.08 g/t Au. 
--  Inferred Resource is 49.2 million tonnes grading 0.26% Cu and 0.09 g/t
    Au. 
--  The Measured and Indicated Resource for the Main Zone and Victoria Zone
    at a 0.3% Cu cut-off is 276.3 Mt grading 0.52% Cu and 0.09 g/t Au.

 
MINING: 


 
--  An in-pit mineral resource suitable as feed to a concentrator was
    identified in the Main Zone and Victoria Zone porphyries totalling 352.6
    Mt grading 0.41% Cu and 0.08 g/t Au, and this resource is expected to
    produce 2.77 billion pounds of copper and 427,000 ounces of gold in
    copper concentrate over the life of the Project. 
--  An in-pit mineral resource suitable as feed to a leach facility was
    identified in the Main Zone and Victoria Zone porphyries totalling 61.1
    Mt grading 0.34% Cu and this resource is expected to produce 275.4
    million pounds of copper cathode over the life of the Project. 
--  The in-pit mineral resources identified are amenable to open pit mining,
    generating two contiguous pits with a combined strike length of 3.1 km,
    a maximum width of 780 m, and a maximum depth of 420 m. 
--  Strip ratio (including pre-production tonnage) is equal to 0.70 t of
    waste to 1.0 t of mineralized material. 
--  Pre-production stripping of 44 Mt will be required prior to the start up
    of the leach facility. Total material movement of 76 Mt will be required
    prior to the start up of the concentrator. 
--  Conventional open pit with mine life of approximately 25 years starting
    with approximately 2 years of pre-stripping, followed by 21 years of
    mining and 2 years of low-grade stockpile re-handling. 
--  Revised pit slope design determined steeper overall slope angles ranging
    from 40 degrees to 45 degrees, as compared to a range of 38 degrees 
    to 43 degrees in the previous design that was used for the January 2013
    PEA. 
--  Peak daily movement of 141,000 t of material occurs in production year
    3.

 
MILLING: 


 
--  The proposed flotation feed does not present any significant technical
    difficulties for beneficiation and the Zafranal mill facility will
    resemble other concentrators processing typical copper porphyry
    mineralization. 
--  Average copper and gold recoveries to concentrate are estimated to be
    87.7% and 49.0%, respectively. 
--  Copper concentrate grade is expected to average 28% Cu and contain an
    average of 3 g/t of gold. A total of 4.48 million dmt of concentrate
    will be produced over the life of the Project. 
--  No deleterious elements in any significant concentration were found in
    the copper concentrate produced from the test work, and all the impurity
    elements were found to be below smelter penalty limits.

 
LEACHING: 


 
--  A permanent heap leach pad and SX-EW plant have been designed to produce
    a nominal 10,000 t/a of high quality copper cathode from oxide and
    secondary sulphide material grading in the range of 0.15 to 0.5% Cu,
    with an average grade of 0.34% total copper. 
--  The overall copper recovery is based on 60% of total contained copper. 

 
SITE ACCESS: 


 
--  The main access to the site will be via an upgraded and partially new 50
    km paved road from the plant site to Pedregal de Majes on the Pan
    American Highway. 
--  Product will be transported approximately 150 km from the plant site to
    the Port of Matarani via truck. An alternative truck/rail system for
    transporting concentrate will be studied in the next phase of
    engineering design. 
--  A new 37 km gravel topped access road will also be constructed from
    Corire to the plant site for transporting personnel and supplies. 

 
FRESH WATER SUPPLY AND DISTRIBUTION: 


 
--  MAQM has ongoing dialogue with regional and local authorities and
    representatives of organizations of water users to investigate the
    alternative of extracting water from the Majes River during the five
    months of wet season when river flows are in flood condition and
    typically exceed 32m3/s. Such an arrangement could see the Company
    providing benefits to the local water users along the Majes River in the
    form of infrastructure projects such as construction and maintenance of
    river defenses and water intakes. The PEA Update has considered the use
    of Majes River as the Project's water supply on the basis that a full
    year's water requirement would be extracted only during the wet season
    when the river flow exceeds an agreed-to-minimum. The water would be
    stored on site in a section of the Tailings Management Facility and
    reclaimed for use as process water all year round. 

 
POWER SUPPLY AND DISTRIBUTION: 


 
--  The power delivery and site power distribution systems are based on a
    total installed power requirement of 89 MW and the peak demand of 84 MW.
--  Power supply for production is scheduled to be available from the New
    Socabaya Substation that will be located close to Arequipa. This will
    require the installation of an approximately 120 km long transmission
    line to a proposed 220 kV substation that will be located adjacent to
    the concentrator.

 
SOCIAL AND ENVIRONMENT: 


 
--  Environmental and social baseline studies for the Project have been
    conducted to compile a Semi-Detailed Environmental Impact Assessment
    (EIAsd) in order to obtain environmental certifications and permits for
    the exploration programs of the Project. A second modification to the
    EIAsd has been approved for the 2013/2014 exploration program on the
    Property. 
--  Formal baseline studies for the Project will commence in the next phase
    of engineering and these will form the basis of the Environmental Impact
    Assessment (EIA) for the Project.

 
INITIAL CAPITAL COSTS: 


 
--  The initial capital cost for the Project is estimated at US$1,122
    million with an expected accuracy range of +/-35%. 
--  The capital cost summary and its distribution by area in US Dollars is
    shown below:
 
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                    Total                                  
                                   Labour            Total            Total
                                     Cost         Material     Construction
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Direct Costs                                                               
---------------------------------------------------------------------------
Open Pit Mining                25,673,219       55,115,966          235,945
---------------------------------------------------------------------------
Process Plant                  11,783,276       52,537,187        8,511,875
---------------------------------------------------------------------------
Leach Area                      2,067,575       13,948,439        3,876,163
---------------------------------------------------------------------------
Tailings and Water                                                         
 Management                       183,463       38,899,961           58,990
---------------------------------------------------------------------------
Infrastructure                  7,895,296       51,725,458       53,615,800
---------------------------------------------------------------------------
Fresh Water Supply             10,450,263       24,960,829       10,591,656
---------------------------------------------------------------------------
Power Supply and                                                           
 Distribution                      59,136       38,468,760           39,000
---------------------------------------------------------------------------
Indirect Costs                                                             
---------------------------------------------------------------------------
Project Indirects               3,483,280      202,890,245                -
---------------------------------------------------------------------------
Owner's Costs                                                              
---------------------------------------------------------------------------
Owner's Costs                       3,456       82,766,363                -
---------------------------------------------------------------------------
Project Contingency                                                        
---------------------------------------------------------------------------
Contingencies                           -      138,821,208                -
---------------------------------------------------------------------------
Total                          61,598,964      700,134,416       76,929,429
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 
----------------------------------------------------------
----------------------------------------------------------
                                    Total                 
                                Equipment        Total US$
----------------------------------------------------------
----------------------------------------------------------
Direct Costs                                              
----------------------------------------------------------
Open Pit Mining               105,535,529      186,560,659
----------------------------------------------------------
Process Plant                 105,035,430      177,867,768
----------------------------------------------------------
Leach Area                     28,273,886       48,166,063
----------------------------------------------------------
Tailings and Water                                        
 Management                     4,087,967       43,230,381
----------------------------------------------------------
Infrastructure                 18,164,726      131,401,280
----------------------------------------------------------
Fresh Water Supply             22,310,245       68,312,993
----------------------------------------------------------
Power Supply and                                          
 Distribution                           -       38,566,896
----------------------------------------------------------
Indirect Costs                                            
----------------------------------------------------------
Project Indirects                       -      206,373,525
----------------------------------------------------------
Owner's Costs                                             
----------------------------------------------------------
Owner's Costs                           -       82,769,819
----------------------------------------------------------
Project Contingency                                       
----------------------------------------------------------
Contingencies                           -      138,821,208
----------------------------------------------------------
Total                         283,407,783    1,122,070,592
----------------------------------------------------------
----------------------------------------------------------

 
PRODUCTION QUANTITIES: 


 
--  The average life of project material tonnages, grades and metal
    production are shown below:
 
---------------------------------------------------------
---------------------------------------------------------
Description                                         Value
---------------------------------------------------------
---------------------------------------------------------
Mine Life (Years)                                   25(4)
---------------------------------------------------------
Material Milled/Leached                                  
---------------------------------------------------------
Total Tonnes to Mill ('000)                       352,637
---------------------------------------------------------
Average Annual Tonnes to Mill ('000)               15,332
---------------------------------------------------------
Total Tonnes to Leaching ('000)                    61,096
---------------------------------------------------------
Average Annual Tonnes to Leaching ('000)         2,909(5)
---------------------------------------------------------
Average Grade                                            
---------------------------------------------------------
Copper (%) - Mill                                   0.409
---------------------------------------------------------
Gold (g/t) - Mill                                   0.077
---------------------------------------------------------
Copper (%) - Leaching                               0.341
---------------------------------------------------------
                                                         
---------------------------------------------------------
Total Production                                         
---------------------------------------------------------
Copper ('000 lb) - Mill                         2,766,346
---------------------------------------------------------
Gold ('000 oz) - Mill                                 427
---------------------------------------------------------
Copper ('000 lb) - Leaching                       275,439
---------------------------------------------------------
Average Annual Production                                
---------------------------------------------------------
Copper ('000 lb) - Mill                           120,276
---------------------------------------------------------
Gold ('000 oz) - Mill                                  19
---------------------------------------------------------
Copper ('000 lb) - Leaching                     13,116(5)
---------------------------------------------------------
---------------------------------------------------------
Note: (4) Concentrator active for 23 years, leaching active for 21 years.   
(5) Based on a 21 year life                                                 

 
OPERATING COSTS 


 
--  Average life of mine operating cost is estimated to be $1.09/lb Cu
    produced from plant feed material processed, including mining, re-
    handling, milling, flotation and leaching as shown below:
 
---------------------------------------------------------------
---------------------------------------------------------------
                                                      Unit Cost
Cost Item                                   Unit          (US$)
---------------------------------------------------------------
---------------------------------------------------------------
Mining                                 $/t mined        1.57(6)
---------------------------------------------------------------
Mining                                $/t milled           2.94
---------------------------------------------------------------
Milling                               $/t milled           4.54
---------------------------------------------------------------
Tailings Management                   $/t milled           0.10
---------------------------------------------------------------
G&A                                   $/t milled           0.86
---------------------------------------------------------------
Concentrator                          $/t milled           8.44
---------------------------------------------------------------
Leaching                             $/t leached           5.47
---------------------------------------------------------------
                                                               
---------------------------------------------------------------
Concentrator                    $/lb Cu produced           1.08
---------------------------------------------------------------
Leaching                        $/lb Cu produced           1.21
---------------------------------------------------------------
Concentrator & Leaching         $/lb Cu produced           1.09
---------------------------------------------------------------
---------------------------------------------------------------
 Note: (6) Excluding two-year pre-stripping                                 
                                                                            
 
--  The average C1 cash cost is estimated at $ 1.31 per payable (7) pound of
    copper, for the life of mine, (as defined by Wood Mackenzie). 
 
(7) Produced pounds of copper net of transport losses and smelter           
deductions.                                                                 

 
FINANCIAL SENSITIVITIES: 


 
--  In addition to the Base Case post-tax evaluation using a copper price of
    $3.00/lb, Initial Capital Cost of US$1,122 million and a discount rate
    of 8%, three alternate case scenarios were developed as a function of
    varying copper price. The following sensitivity table provides net
    present value, internal rate of return and payback period reported from
    the start of mill operations for the post-tax base case and the post-tax
    alternate case scenarios:
 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                    Base   Alternate   Alternate   Alternate
Item Description                    Case      Case 1      Case 2      Case 3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Copper Price (US$/lb)               3.00        2.50        2.70        3.30
----------------------------------------------------------------------------
Gold Price (US$/oz)                1,274       1,274       1,274       1,274
----------------------------------------------------------------------------
Net Present Value (US$                                                      
 million)                            616         228         385         844
----------------------------------------------------------------------------
Internal Rate of Return (%)         18.2        12.2        14.7        21.4
----------------------------------------------------------------------------
Payback (years)                      3.2         4.1         3.6         2.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
--  The PEA Update was compared with the January 2013 PEA and summarized in
    the following table:
 
----------------------------------------------------------------------------
                                                  UPDATED PEA   JAN 2013 PEA
                                       UNIT OF        44 KTPD        80 KTPD
ITEM DESCRIPTION                       MEASURE   CONCENTRATOR   CONCENTRATOR
----------------------------------------------------------------------------
Concentrator Feed                       '000 t        352,637        425,310
----------------------------------------------------------------------------
 Copper Grade                                %           0.41           0.38
----------------------------------------------------------------------------
 Gold Grade                                g/t           0.08           0.07
----------------------------------------------------------------------------
Leach Feed                              '000 t         61,096         87,256
----------------------------------------------------------------------------
 Copper Grade                                %           0.34           0.23
----------------------------------------------------------------------------
Waste                                   '000 t        291,363        543,931
----------------------------------------------------------------------------
Total Open Pit                          '000 t        705,096      1,056,495
----------------------------------------------------------------------------
Strip Ratio                                              0.70           1.06
----------------------------------------------------------------------------
Concentrator Operation                   years             23             15
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Recoverable Cu from Concentrate       '000 lbs      2,766,342      3,105,452
----------------------------------------------------------------------------
Recoverable Au from Concentrate        '000 oz        426,995        478,841
----------------------------------------------------------------------------
Recoverable Cu from Cathode           '000 lbs        275,438        265,863
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Initial Capital Expenditure           '000 US$      1,122,071      1,519,673
----------------------------------------------------------------------------
Sustaining Capital Expenditure        '000 US$        234,615        191,458
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
After Tax Total Cash Flow             '000 US$      2,067,732      1,813,801
----------------------------------------------------------------------------
After Tax NPV @ 8% Discount                                                 
 Rate                                 '000 US$        616,063        588,170
----------------------------------------------------------------------------
After Tax IRR                                %           18.2           17.4
----------------------------------------------------------------------------
After Tax PayBack                        years            3.2            2.6
----------------------------------------------------------------------------

 
Qualified Persons 
The NI 43-101 Technical Report has been prepared by an integrated
engineering team led by Tetra Tech in Vancouver, British Columbia,
Canada. The Technical Report will be filed on SEDAR within 45 days of
the Press Release date. Further information regarding geology,
sampling methods, data verification, QA/QC and assay lab is provided
in the NI 43-101 Technical Report dated May 7, 2012, and the
Technical Report and Preliminary Assessment of the Zafranal Project
dated January 16, 2013,filed on SEDAR at www.sedar.com and can be
found on the Company's website at www.aqmcopper.com. 
The following Qualified Persons have reviewed and approved the
technical disclosure contained in this press release:  


 
--  Gregory Z. Mosher, P.Geo., a Tetra Tech employee, regarding geological
    setting, deposit types, exploration, drilling data verification and
    mineral resource estimates 
--  Anoush Ebrahimi, P.Eng., a Tetra Tech employee at the time of completion
    of the PEA Update, regarding mining methods 
--  Marinus Andre De Ruijter, P.Eng., a Tetra Tech employee, regarding
    mineral processing and metallurgical testing, recovery methods and
    process capital and operating costs 
--  Hassan Ghaffari, P.Eng., a Tetra Tech employee, regarding
    infrastructure, tailings and water management and capital and operating
    cost estimate 
--  Sabry Abdel Hafez, Ph.D., P.Eng., a Tetra Tech employee, regarding
    mining capital and operating costs and the economic analysis 
--  Monica Danon-Schaffer, Ph.D., P.Eng., a Tetra Tech employee at the time
    of completion of the PEA Update, regarding environmental studies and
    permitting

 
On Behalf of the Board 
AQM COPPER INC. 
Bruce L. Turner, President and Chief Executive Officer 
About AQM Copper 
AQM Copper Inc. is a Canadian mineral exploration company exploring
and developing copper deposits in South America. Through its Peruvian
subsidiary, Minera AQM Copper Peru S.A.C. (MAQM), the Company is
developing the Zafranal Copper-Gold Porphyry Project located in
Southern Peru. MAQM is the operator of a 50/50 Joint Venture with
Teck Resources Limited through a sole purpose Peruvian company,
Compania Minera Zafranal. MAQM is owned 60% by AQM Copper Inc. and
40% by Mitsubishi Materials Corporation pursuant to a transaction as
outlined in the Company's press release of July 2, 2013. 
The Company published a favourable independent Preliminary Economic
Assessment ("PEA") in January 2013 which reported a NI 43-101
compliant Measured and Indicated Resource of 557.2 Mt grading 0.36%
Cu and 0.07 g/t Au. The PEA was completed by Tetra Tech WEI Inc.,
("Tetra Tech"), and contains production parameters, capital costs,
operating costs, pre-tax and post-tax financial projections for an
open pit mine processing 80,000 t/d of mill feed and a leach
operation based on the treatment of approximately 20,000 t/d of oxide
and secondary sulphide material. Using long-term forecasted copper
and gold prices of US$3.00/lb and US$1,274/oz respectively; and an
initial capital cost of US$ 1,520 million, the Project is projected
to yield a post-tax Net Present Value at 8% discount rate, of US$ 588
million and an internal rate of return (IRR) of 17.4%. The valuation
is based on 100% of the Project and 100% Equity. The reader should be
aware that the preliminary economic assessment is preliminary in
nature, and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. The reader should also be aware that there is no certainty
that the results forecast in the preliminary economic assessment will
be realized. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. 
The Company's management and directors have extensive experience
working for the world's largest mining copper producers and
investment banking backgrounds. Please refer to the Company's website
at www.aqmcopper.com, for further information regarding the Company
and the Zafranal Project. 
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 
Except for statements of historical fact relating to AQM Copper Inc.,
certain information contained herein constitutes "forward-looking
statements". Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as "expects", "anticipates",
"plans", "believes", "considers", "intends", "targets", or negative
versions thereof and other similar expressions, or future or
conditional verbs such as "may", "will", "should", "would" and
"could". We provide forward-looking statements for the purpose of
conveying information about our current expectations and plans
relating to the future and readers are cautioned that such statements
may not be appropriate for other purposes. By its nature, this
information is subject to inherent risks and uncertainties that may
be general or specific and which give rise to the possibility that
expectations, forecasts, predictions, projections or conclusions will
not prove to be accurate, that assumptions may not be correct and
that objectives, strategic goals and priorities will not be achieved.
These risks and uncertainties include but are not limited to those
identified and reported in AQM Copper Inc's public filings, which may
be accessed at www.sedar.com. Other than as specifically required by
law, we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which
such statement is made, or to reflect the occurrence of unanticipated
events, whether as a result of new information, future events,
results or otherwise. 
To speak with an Investor Relations representative, please see the
contact information below.
Contacts:
Pinnacle Capital Markets LTD.
Spyros P. Karellas
(416) 443-5696 / (416) 800-8921
spyros@pinnaclecapitalmarkets.ca