1. BHP COPPER
SAN MANUEL OPERATIONS
OXIDE ORE RESERVES REPORT
JUNE 1, 1999
Prepared by
Technical Oxide Planning and Projects Group

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TABLE OF CONTENTS
1. Introduction 4
2. Executive Summary 5
3. Property Description 6
3.1 Location and Access 6
3.2 Land Status 6
3.3 History 6
3.4 Production 7
3.4.1 In Situ Leaching 7
3.4.2 Residual Heap Leaching 8
3.5 Development 8
3.6 Exploration 8
3.7 Plant and Equipment 8
3.7.1 Solvent Extraction Plant 9
3.7.2 Electrowinning Plant 9
3.7.3 In Situ Leaching 9
4. 20F Statement 11
5. Current Recalculation 12
6. Geology 13
6.1 Regional Geology (Within Sulfide Report) 13
6.2 Geologic History (Excerpt from Sulfide Report) 13
6.3 Deposit Geology 15
6.3.1 Rock Types 15
6.3.2 Structure 18
6.3.3 Alteration and Mineralization 20
7. Database 23
7.1 Components 23
7.1.1 Sulfide 23
7.1.2 Reverse Circulation 23
7.1.3 1990 Drilling Campaign 23
7.2 Verification and Manipulation 25
7.3 Sampling 26
7.4 Quality Process Control 26
7.5 Copper Assays 26
8. Block Model 27
8.1 Geologic Model 27
8.2 Model Database 31
8.3 Assay Data 32
8.4 Topography 33
8.5 Composite Data 34
8.6 Model Statistics 34
8.6.1 Assays 34
8.7 Geostatistics 38
8.8 Interpolation 39
8.9 Minesight 40
8.9.1 Drillholes 40

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8.9.2 Grids 41
8.9.3 3D Geometry 41
8.9.4 Models 44
8.9.5 VBM 44
8.10 Previous Modeling 45
8.10.1 Early Modeling 45
8.10.2 Fault Zone Model 46
8.10.3 1995 Model 47
9. Geologic Resources 50
10. Metallurgy 51
10.1 Residual Heap Leaching 51
10.2 In Situ Leaching 51
11. Hydrology 52
12. Mine Planning 53
12.1 Optimization 53
13. Mine Design 54
13.1 Mineable Resource 54
13.1.1 Final Pit Design 54
13.1.2 In Situ Leaching Design 55
14. Ore Reserves 59
14.1 Resource Recovery Test 60
14.2 Economic Cutoff 60
15. Reconciliation 61
16. Updates 62
17. Opportunities 63
17.1 Increasing Saturation 63
17.2 San Manuel Resource Definition Project 63
18. Risks 64
19. Conclusions and Recommendations 65
19.1 Geology 65
20. References 66

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1. Introduction
This internal ore reserve report is designed to complement and serve as a source of backup
information for the 20-F statement for the oxide leaching portion of the San Manuel Operation’s
ore reserves.
This document contains a partial history of the oxide ore reserves. Within it is the methodology
used for estimating the ore reserves as of May 31, 1999. To complement the methodology, a
description of the property and infrastructure is included. A description of the regional and
deposit geology is also included.
The report concludes with statements around the updates, opportunities, risks, conclusions and
recommendations for the future.

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2. ExecutiveSummary
This internal ore reserves report of the San Manuel Operations Oxide deposit is to serve
as backup information for the 20F statements. The details of the oxide resource and reserve
calculation will be found in this document.
The San Manuel Oxide Project has experienced tremendous success in extracting copper
from leachable copper minerals using open pit/heap leach and in situ mining methods. Reserves
remaining in the ground as of May 31, 1999 contain xxx.x million kilograms of recoverable
copper. It is also expected that another 9.0 million kilograms will be recovered from the heap
leach before its operation is terminated. As the table below illustrates, most of the recoverable
pounds (kg) remaining are contained in the in situ mining reserve.
Total Oxide Resource
Mineral Zone Tonnes TCu Contained Cu (kg)
Total
Total Oxide Ore Reserves
Ore Type Tonnes TCu ASCu Recoverable Cu
(kg)
In Situ – Proven
In Situ –
Probable
Heaps
Total
The last external audit on in-situ reserves was completed in late 1993-by the Winters Group,
Tucson, Arizona.
State the major changes from last year.
*Percent Acid Soluble Copper as determined by San Manuel Metallurgical standard test number AP-101

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3. Property Description
3.1 Location and Access
The Oxide Leaching operation at San Manuel shares land and facilities with the
Underground block caving operation.
3.2 Land Status
All Oxide operations occur on patented land. The SX-EW facility resides on some of the
oldest claims in the district dating to the 1870's. The heap and open pit is located on land
claimed as part of the San Manuel deposit.
3.3 History
During early 1945 through late 1947 the now-merged International Smelting and
Refining Company drilled a series of churn drill holes (CD series) to attempt to locate two
extensions to two known mineralized deposits in the immediate vicinity, namely the St. Anthony
(Tiger) Mine and the San Manuel Mine. At the time, International owned the lease on the
Houghton group of claims adjacent to the San Manuel Copper Corporation (later Magma)
property on the eastern most side. A total of seventeen churn drill holes and one directional
diamond core hole were drilled with the intent of locating these possible mineral deposit
extensions. The total footage drilled for churn drilling, deepening churn drill holes with diamond
core drilling, and directional diamond core drilling was 29,793 feet. This drilling discouraged
the exploration for an extension to the Dream Vein in the St. Anthony Mine but encouraged the
exploration for an extension to the San Manuel mineral deposit. The exploration program
delineated an estimated 15,960,000 tons of primarily sulfide-rich rock at a reported grade of
0.849 weight percent total copper and 0.116 weight percent acid soluble copper in a 285 foot
thick blanket-like geometry. This tonnage of sulfide mineralized rock was considered too little
to justify the investment in developing the area for mining. At the time the oxidized zone over
this sulfide rock was delineated and assayed, but according to H.J. Steele (1948), "the tonnage of
oxidized ore within the area was not sufficient to consider in a tonnage estimate".
The oxide resource at San Manuel has been known since shortly after the beginning of
exploration of the site. Early estimates from the churn drilling completed in the 1940's set the
resource at 205 million tons at 0.491% acid soluble copper (ASCu), based on a 0.6% total copper
(TCu) cutoff.
A serious study of the oxide resource started in 1982, which resulted in a favorable
feasibility study completed in September 1984. This study confirmed the resource with reverse
circulation drilling (ARM series). The original churn drill holes were translated in space to
account for subsidence induced by the block caving operation. The resource was then believed
to be approximately 286 million tons at 0.39% ASCu at a 0.30% TCu cutoff.

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The open pit mine designed in the feasibility study, was estimated to contain 51.5 million
tons of oxide ore at 0.730% TCu and 0.483% ASCu. The cutoff grade was set at 0.20% ASCu.
The waste to ore ratio was 2.39 to 1. This pit design had several restrictions placed on it that
were revised after production began. The final pit slope was set at 38 degrees. No part of the pit
could extend above the north boundary of the 2615 underground mining level. The pit bottom of
this design was at the 2300 elevation.
The project was approved based on this reserve, a capital requirement of $68 million, and
$0.80 per pound copper produced, to yield a return on investment of 13.3%. The study predicted
the operating cost to be $0.475 per pound.
Mining commenced in the 4th quarter of 1985. The first copper cathode was harvested in
June 1986. The SX-EW plant had a capacity at that time of 50 million pounds per year.
Investigation of the feasibility of in situ leaching of a portion of the rockmass began around that
time.
The plant design capacity was expanded in 1989 to 100 million pounds per year. In-Situ
production and increased open pit production was scheduled to fill the new capacity. The best
production month from the plant exceeded 11 million pounds. Open pit operations terminated in
January 1995. During the shutting down of pit operations, in-situ expansion began. In-Situ
expansion continued through the end of 1995 and operations continue to date.
3.4 Production
3.4.1 In Situ Leaching
In-Situ production during the last year has ranged from 2.1 to 2.6 million copper lbs per
month or 70,000 to 90,000 copper lbs per day. Total PLS flow rates have ranged from 7,400 to
8,100 GPM. During the year the average grade varied between 0.81 and 0.93 g/l. Total
production from in-situ operations in fiscal 1998 was approximately 28 million pounds of
cathode copper. The fiscal 2000 budget predicts that 36 million pounds of cathode copper will
be produced by the in situ operation.
Surface production has remained steady during most of the year. Newly constructed
wells have offset the normal production decline from aging wellfields.
Underground production has declined from 1.0 million lbs to 0.7 million lbs due to the
natural production decline. Wells targeted for underground did not arrive there, instead they
contributed to surface contribution. This left underground production below plan.
The production modeling for in-situ leaching was performed for the fiscal 2000 budget in
accordance with state-of-the-art leach modeling techniques. The estimate of PLS copper
production is optimized for flow rate, grade, and development cost within the context of the most
recent underground block cave schedule. The corresponding production model parameters are
generated from detailed analyses of historic leachfields and from an extensive literature review
of technical subjects pertinent to in-situ and dump leach modeling.

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The production timing schedule is based upon the optimum utilization of the minimum
number of drill rigs coupled with the availability of suitable surface area on a pit wall to allow
maximum copper production at the minimum development cost. The production design that is
developed for the model is based upon 6 inch cased wells set in a pattern of 50-foot centers. A
detailed well field design for each bench in each mineralogically and structurally discrete fault
zone block is developed and linked to a development (mining) schedule to create a composite
production plan for each individual fault block/leaching zone.
3.4.2 Residual Heap Leaching
The oxide open pit successfully completed mining operations on January 16th, 1995.
The base of the heap-leaching pad covers 242 acres. The base was contoured, compacted
and entirely covered with HDPE liner prior to placement of any material. The heap rises to a
maximum elevation of 3480 feet above sea level.
Total production from the heap leach pad in fiscal 1999 was xx.x million pounds (6.7
million-kg) of cathode copper. Since 1986, the Heaps have produced 691.4 million pounds
(313.6 million-kg) of cathode, equivalent to a recovery of 84.3% of all acid soluble copper place
on the pad. When the ultimate recovery of 87.5% is reached, the Heaps will have produced an
additional 22 million pounds (10.0 million-kg) of copper. This recovery is expected to be
reached in the year xxxx.
3.5 Development
Development of new wellfields consists of drilling wells and hooking up the necessary
utilities for those wells. Drilling is typically done by mud rotary technique with the company
owned drill rig. At times, additional drill rigs are used by contracting out work to local drilling
companies.
3.6 Exploration
The San Manuel Resource Definition Project began in late 1996. This study is exploring
the possibility of reopening the oxide pit. The early result of this study was to provide a better
and more comprehensive drill hole database that included all of the drilling ever done on the
property. From an excess of 2,000 drill holes, many were removed that existed within the block
cave area. However, a few hundred still remained and these holes indicated that more oxide
orebody existed at depth. The potential was great enough to justify a drilling program, which
was completed in 1997. Further modeling and planning is still underway.
3.7 Plant and Equipment

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3.7.1 Solvent Extraction Plant
PLS flows by gravity from the feed pond to four independent stainless steel tank trains.
Each train has a mixer, extractor and stripper thus allowing one train to be shut down without
effecting the other three. All four trains combined have a capacity of 16,000 gallons per minute
of PLS feed. Flow from the trains goes either to the electrowinning plant or to the raffinate
pond.
3.7.2 Electrowinning Plant
The electrowinning tank house has 188 concrete cells each containing 61 lead anodes and
60 stainless steel mother blanks. With a plating cycle of seven days, the tank house is capable of
producing 50,000 tons per year of cathode copper.
All SX-EW functions are fully instrumented for automatic operations and are directed
from the control room located in the tank house. All staff and technical offices are located in the
tank house.
3.7.3 In Situ Leaching
Magma Copper Company began limited scale in situ (in place) leaching of copper
mineral occurrences above and adjacent to the San Manuel underground mine in 1986. The in-
situ leaching project at San Manuel was initially designed to utilize gravity flow leaching to
recover acid soluble copper from partially rubblized rock that was spatially situated adjacent to
an abandoned portion of the block cave underground mine. During the construction of this in-
situ leaching system, an underground drainage gallery collection facility was adapted by utilizing
existing haulage and panel drifts. An underground pumping system capable of lifting about
10,000 gallons per minute of PLS to the surface was also constructed. Due to structurally
complex geologic conditions, a relatively competent and unbroken rock mass, and requirements
of concurrent open pit mine plans, the opportunity to economically expand production from the
underground collection facility was not achievable. The development and design of the well-to-
well leaching system was initiated as a production replacement for the underground collection
facility.
By 1989, in-situ leaching had become a viable and cost effective method of SXEW
cathode copper production. The viability of the in-situ leaching method evolved with the
technical development of well-to-well leaching utilizing dilute sulfuric acid solution circulating
within the hydraulic influence of a specially designed well pattern comprised of specially
constructed injection and extraction wells. The average depths of these in-situ wells are between
500 and 600 feet with a maximum depth of 1100 feet. The current well pattern design
incorporates a universal well construction (uni-well) design for both injection and production
wells in hydrogeologically defined patterns coupled with optimized well spacing so that the
pattern geometrically fits on an open pit wall catch bench. The purpose of a uni-well design is to
have the flexibility to rearrange injection and production wells during their lifetime. The final

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wall in-situ catch benches are designed to be about 50 ft. wide from crest to toe. Along the
length of the bench, the uni-well pattern is linked or coupled in a manner that allows design
modifications to be made to optimize the position of the linked patterns to fit the localized
structural geology. The well pattern design of the bench must also correlate to and interact with
the well pattern on the benches above and below it to provide optimum sweep efficiency of the
rock mass.
Residual vertical leakage solution collection is achieved utilizing the existing 2375 level
underground collection facility. In a hydrologic environment like that of the San Manuel Mine,
existing shaft facilities and the associated hydrologic cone of depression around the collection
area and the shafts have captured in the past and will capture and recover in the future all
planned pregnant leach solutions for SX-EW processing. Barren leach solution for injection is
derived from SX raffinate and may or may not be acidified to about 20 grams per liter free acid
depending upon the residual free acid remaining after electrowinning. All pregnant leach
solution is pumped to the SX plant utilizing a multiple booster pump station system.
The booster pump system allows PLS from the pit bottom to be pumped to the 2460 in-
pit lift station. PLS is then pumped to the 2800 booster pump station which lifts the PLS to the
3100 booster pump station. This 3100 pump station can lift the PLS to the SX-EW plant feed
pond or the PLS can be diverted to the heap leach PLS pond for pumping to the SX-EW plant
feed pond. Injection solution is delivered to the well pattern manifolds through a complex
system that dissipates fluid pressure through the use of pressure reducing valves and by
dynamically choking the flow in restricted diameter pipelines. The installation of a MacGyver
bypass to reduce fluid pressure while generating electricity was installed in 1995. The leach
solution distribution system allows a roughly 900 foot drop in elevation (390 psi.) at about 3000
gallons per minute flow rate to be reduced to a potential zero pressure (and flow) at the bottom of
the pit.
The power distribution system originates from the main mine power grid and is fed to a
main substation located on the pit perimeter. Power is sequentially transformed to appropriate
voltages at the various booster pump stations. Power transmission in the pit area is by shielded
ground cable and outside the pit is by overhead lines. Final transformation to 460-volt power is
made at individual transformers near the production well locations. All production wells extract
PLS with fully stainless steel submersible pump/motor units. All down-hole and surface
construction materials are required to be either stainless steel, polyvinylchloride (PVC), or high
density polyethylene plastics due to the acidic copper-rich nature of the barren leach and PLS
solutions.

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4. 20F Statement
BHP COPPER - ORE RESERVE DECLARATION AS OF 31 MAY 1998
Copper Page 1 of 3
1 Deposit/mine name: San Manuel Mine BHP Interest (%): 100
2 Brief description of the type of mine and processing facilities:
Two independent operations at minesite. Sulfide operation is block caving method.
Oxide operation is in-situ leaching and residual heap leaching.
3 Resource/Ore Reserve:
Please report all copper grades and recoveries in terms of Total Copper (including leach projects). Report Au and Ag in grams/tonne.
Please report the Identified Mineral Resources as the tonnage remaining after removing the Ore Reserves.
IN-SITU LEACHING Ore Reserves Identified Mineral Resources
Proved Probable Total (a) Measured Indicated Inferred Total (b) Comments
Tonnes (000,000) 107.0 88.2 195.2 26.9 14.8 15.6 57.3
TCu Grade 0.612 0.550 0.584 0.642 0.550 0.561 0.596
ASCu Grade 0.401 0.353 0.379 0.436 0.353 0.378 0.399
TCu Cutoff ~0.30 ~0.30 ~0.30 ~0.30 ~0.30 ~0.30 ~0.30 0.20% Acid Soluble Copper Used
RESIDUAL HEAP LEACHING
Proved Probable Total (a) Measured Indicated Inferred Total (b) Comments
Tonnes (000,000) 84.4 84.4
TCu Grade 0.617 0.617
ASCu Grade 0.468 0.468
TCu Cutoff ~0.20 ~0.20 0.10% Acid Soluble Copper Used
Copper and other metals: Copper in tonnes, Au in ounces (Accounting for milling and smelting/refining recoveries)
Proved Probable Total (c) Assigned Unassigned
For Sulfide / Millable
- as Concentrate Conversion Factors Table
1 million metric tonnes = 1.1023 million short tons
For Leachable / SX/EW - as Cathode 1 pound = 0.454 kilogram
In-Situ Leaching 138,900 156,200 295,100 295,100 1 troy ounce = 0.0311 kilogram
Residual Heap Leaching 10,000 10,000 10,000
Total Oxide Operation 148,900 156,200 305,100 305,100

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5. CurrentRecalculation

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6. Geology
The San Manuel Oxide pit was mapped as a part of the San Manuel In Situ Commissioning
effort17. Although geological mapping had been conducted throughout the life of the open pit
operations, the mapping had not been compiled to show the distribution of geological features
over the pit surface. Lithology, structure, hydrothermal alteration, and distribution of oxide
mineralization all affect solution flow within the leach field; thus, the locations and character of
these features need to be documented in order to interpret hydrological and geochemical data
collected from the in situ well fields. This mapping program was intended to provide a
geological framework to the San Manuel in situ facilities, and should not be considered to be the
only mapping needed to support on-going leaching operations.
The mapping was done at a scale of 1:2400 and conducted from late May to early July, 1996
by: F. Bain, Consulting Geologist; C. Hoag, Sr. Geologist, Growth and Technology, Florence
Project; R. Moulton, Consulting Geologist, Florence Project; R. Parker, SMURM Geologist, San
Manuel Sulfide; and R. Preece, Sr. Geologist, Growth and Technology, Resource Development
and Technology Group. Logistics, supplies, and general support to the mapping effort were
provided by the San Manuel Oxide Technical Work Group. A map showing pit topography and
in situ well locations was used as a base, with control outside the leach fields provided by
surveyed ground stakes. An overview of the San Manuel geology was given by L. Hobbs,
Geologist, San Manuel Sulfide, through a geological tour of the Lower Kalamazoo. The mapping
was presented in a geological tour conducted for all interested parties on July 12, 1996. This
document is modified from the tour guide prepared for and distributed at that time (Preece, et al,
1996).
6.1 Regional Geology (Within Sulfide Report)
6.2 Geologic History (Excerpt from Sulfide Report)
The San Manuel and Kalamazoo Ore bodies are situated in the Black Hills, an area of
block-faulted mountains consisting of Precambrian granite and Upper Cretaceous intrusive rock
covered by Middle Tertiary volcanic and sedimentary rocks. Figure 5 is a generalized geologic
map of the district bounded in the north by the Tortilla Mountains and in the south by the Santa
Catalina and Rincon Mountains. To the west is the Tortolita Mountains and to the east are the
Galiuro Mountains. Cross section A-A’ of Figure 5 shows in greater detail the result of the
structure and tectonism of the Middle Tertiary, and later basin and range faulting in the ore body
area.
Figure 6 is a generalized stratigraphic column of the rocks found in the San Manuel-
Kalamazoo area. The host rock for the San Manuel and Kalamazoo ore bodies is a 1.4 billion-
year-old quartz monzonite, referred to locally as the Oracle Granite, a coarse-grained porphyritic
biotite and two mica monzogranite. Scattered fine-grained dikes of aplite and diabase occurs
throughout the Oracle Granite. 1.1 billion year old diabase dikes were intruded into the Oracle
Granite. These Precambrian rocks were intruded by a Laramide monzonite (Schwartz, 1953) or
granodiorite porphyry (Creasey, 1965) in the form of a dike swarm. Geothermometric data from
fluid inclusion studies indicate a depth of emplacement of the Laramide dike swarms at

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approximately one mile (Davis, 1974). The idea of an orthomagmatic model to explain the
transport of hydrothermal fluids and copper mineralization from the Laramide porphyries into the
host Pre-Cambrian quartz monzonite is supported by all the people who have studied the ore
geneses at San Manuel and Kalamazoo including Lowell and Guilbert (1970), Davis (1974),
Chaffee (1975), Farmer and De Paolo (1987). The dacite porphyry, though very close in age to the
other porphyries, is believed to be post-ore because of its low grade and weak alteration. The age
of the porphyries is estimated at 67-69 million years old by Hail (1968).
A few post-ore dikes cut all of the older rocks. The older of the post-ore dikes are andesite
or andesite porphyries that are probably 26 to 29 million years old. They typically form small
dikes from 1 to 10 feet and up to 20 feet maximum thickness. The andesite usually forms along
fault zones such as the Vent Raise Fault Zone located in the San Manuel ore body. Schwartz
(1953) suggests the andesite is an intrusive equivalent of some of the thick andesitic tuffs of the
Cloudburst Formation.
The youngest rock to intrude the San Manuel and Kalamazoo ore bodies is rhyolite.
Rhyolite cuts all the older rock types including the Cloudburst andesites and conglomerates. It
forms large pod-like masses and dikes in both the San Manuel and Kalamazoo ore bodies. The
rhyolites in the mine area are approximately 22 million years old and can be correlated to those
exposed in the Tiger area located just to the north of the mine.
Igneous breccia is exposed in both the shaft pillar and footwall portions of the San Manuel
Fault, usually near the quartz monzonite-granodiorite porphyry contacts. The igneous breccia is a
very hard rock consisting of mostly quartz monzonite with rock fragments of granodiorite
porphyry, quartz monzonite and other porphyries in a matrix of potassic feldspar veins and calcite.
The breccia is mostly low in copper grade (<0.4% total copper) suggesting a post-ore origin.
Two conglomerates cover most of the ore bodies. The older is the Cloudburst Formation,
which is described by Heindal (1963), Creasey (1965) and Weibel (1981). It is composed of up to
6,000 feet of inter-layered conglomerates, sedimentary breccias, and volcanic rocks. It is estimated
to be from 23 to 28 million years old and is intruded by the previously mentioned rhyolites.
Disconformably overlying the Cloudburst Formation is the younger conglomerate, the San Manuel
Formation which was named by Heindl (1963). It is very similar to the Cloudburst and is at least
22 million years old at the base. It reaches a thickness of up to 4,000 feet and contains boulders of
quartz monzonite, rhyolite, diabase, Laramide porphyries, and other rocks. The lower unit, the
Kanally Member, consists of fragments of volcanic and fanglomeritic rocks derived from the
Cloudburst.
Most of the surface area above the San Manuel and Kalamazoo ore bodies is covered by
conglomerate. As a result, the older faults in the area are not recognized on the surface. These
faults tend to trend roughly parallel to the axis of the ore bodies. A good example in the San
Manuel ore body is the Vent Raise Fault, which is a post-ore, but pre-conglomerate fault that
bisects the ore body along the longitudinal axis. An example of a similar fault in the Kalamazoo is
the Virgin Fault.
J. David Lowell (1968) suggested that the Laramide monzonite dike swarm was emplaced
in the quartz monzonite, and the copper ore shells formed as a near vertical cylindrical or pipe-

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shaped body near the contacts. In his interpretation (Figure 7), Mr. Lowell indicates the sequence
that took place following the intrusion. He estimates that the ore body rotated approximately 70°
before it was cut by the San Manuel Fault. Paleomagnetic surveys done in the area around the
mine (Force, 1993) indicate that the post ore rotation may have been 33±12° instead of the 70°
proposed by Lowell. This would make the orientation of the dike swarm closer to 50 or 60° rather
than vertical. Regardless, the dike swarm and incipient San Manuel Fault was rotated to
approximately 20°. The San Manuel Fault, the most significant fault in the area, is a low angle
normal fault that strikes northwest-southeast and dips 10 to 45° to the southwest. The fault
displaced the upper half of the Kalamazoo ore body 8,000 feet down dip, and is interpreted to be of
at least early Miocene in age. Figure 8 is a cross-section looking northwest that shows the
relationship of the two ore bodies. The San Manuel segment resembles a distorted U or canoe
while the Kalamazoo is a near mirror image.
The oxidation deposition in the San Manuel is interpreted to have occurred in at least three
distinct steps, based on the main erosional cycles. The main erosional cycles are pre-Cloudburst
Formation, pre-San Manuel Formation, and the present erosional cycle. The first stage of
supergene enrichment of primary chalcocite occurred between the intrusion of the porphyry and
the deposition of the Cloudburst Formation. The second stage of supergene enrichment of
widespread oxidation of chalcocite to chrysocolla may also have occurred before major tilting and
San Manuel faulting. Minor chalcocite blankets and oxidation have occurred in the more recent
post-San Manuel formation erosional cycle. Basin and range faulting have displaced the oxide and
sulfide zones, and established oxidation and leaching deeper in the San Manuel segment of the
system. A sequence of high angle normal faulting cut the San Manuel ore body and the San
Manuel fault. The largest of these faults are the Cholla Fault, East Fault, West Fault, and the
Hangover Fault. The Hangover Fault forms a natural protection boundary for the shaft pillar in the
San Manuel ore body. These basin and range faults trend northwest-southeast and dip to the east
toward the San Pedro basin.
6.3 Deposit Geology
6.3.1 Rock Types
Numerous authors have described the rock types found in the San Manuel area so only a
brief overview will be given, with selected articles listed in the bibliography. Maps are included
as Figures 1 and 2, representing the base geology and mineralization/alteration overlay,
respectively. The rock types at San Manuel essentially consist of Precambrian, Cretaceous, and
minor Tertiary intrusive rocks overlain by a thin sequence of Oligocene to Pliocene
unconsolidated sediments. The coarse-grained Precambrian quartz monzonite (Oracle granite)
(1.44 + 0.02 Ga) and minor Precambrian diabase dikes (1.04-1.1 Ga) were intruded in Laramide
time (67-69 Ma) by dike swarms and irregular masses of porphyry variously described as quartz
monzonite porphyry, monzonite porphyry, granite porphyry, granodiorite porphyry, and (biotite)
dacite porphyry (e.g. Hausen, 1975). These units are intruded by minor volumes of Tertiary
subvolcanics and unconformably overlain by consolidated and unconsolidated Tertiary
sediments.

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The oldest unit in the San Manuel open pit is the Proterozoic Oracle granite, known locally
as the quartz monzonite. The unit is a coarse-grained equigranular granite to quartz monzonite.
Eastoe (1996) described the samples collected in the mine as being highly deformed, as
undulatory extinction in quartz and highly irregular mineral grain boundaries are commonly
observed in thin section. The rock is composed of 8-10 mm quartz, orthoclase, and plagioclase
grains, with porphyritic and aplitic phases present. Accessory minerals include biotite,
muscovite, zircon, and apatite. The Oracle granite lies predominantly in the western portion of
the pit, with only minor amounts present in the northwest portion.
The Laramide San Manuel porphyry was divided into two mapping units on the basis of
hand specimen descriptions. These varieties were characterized by grain size differences of the
groundmass, and were labeled granodiorite and dacite porphyry for phaneritic and aphanitic
textures, respectively. Similar differences had been noted by previous workers, with between
two (e.g. Lowell and Guilbert, 1970) and five (Hausen, 1975) textural and/or compositional
varieties noted. In addition to the mapped textural variations, differences in phenocryst size and
abundance were also noted, but unmapped.
In the San Manuel open pit, unaltered granodiorite porphyry is medium to light gray, and
contains zoned oligoclase to andesine plagioclase and biotite phenocrysts as the prominent
mineral phases in a fine-grained granular to mosaic matrix of quartz and orthoclase. Only rare
quartz phenocrysts are noted in hand specimens, although quartz can be relatively abundant in
the matrix. Phenocrysts make up 15 to 50 percent of the rock, and are generally less than 4 mm
in diameter, although feldspar phenocrysts up to 8 mm may occur. Two textural varieties of the
granodiorite porphyry were noted in hand specimen. One of the varieties contains 40 to 50
percent 3-4 mm phenocrysts that generally are in contact with each other in a crowded texture.
The other variety is characterized by lesser amounts of up to 5-8 mm phenocrysts that are
typically supported by a fine-grained granular matrix.
Dacite porphyry was mapped in the bottom of the San Manuel pit and elsewhere as isolated
dikes. Except for a phenocryst population that has a slightly greater abundance of biotite and
only rare quartz, the dacite porphyry has almost identical mineral composition as the granodiorite
porphyry. In general, dacite porphyry has an aphanitic dark gray to black matrix with zoned
plagioclase and biotite phenocrysts. The dacite porphyry also was observed in two textural
varieties. Both types are comprised of matrix-supported plagioclase and biotite phenocrysts,
with one variety characterized by 2-4 mm phenocrysts, and the other containing 4-6 mm
phenocrysts, with occasional phenocrysts up to 10 mm long. The dacite porphyry is thought to
be very close in age to the granodiorite porphyry, although it is usually unmineralized and
weakly altered.
Both the dacite and granodiorite porphyries were mapped in the lower portions of the pit,
although in a relatively simplified manner. The porphyries were often observed to alternate, and
were generally lumped as to the dominant porphyry over a particular bench face exposure. The
ability to distinguish between the granodiorite and dacite porphyries was very difficult above the
2100 to 2160 levels as textures are partially obliterated by the intensity of argillic alteration that
increases toward the base of Tertiary sediments. In addition, thin section analyses (Eastoe, 1996;
Hausen, 1975) indicate that groundmass texture is not a significant criteria for subdividing the
San Manuel porphyry. Both workers believed that groundmass grain size and mineralogy are

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modified by hypogene alteration. The mapped distinctions, therefore, may not be due to
different intrusions, but instead be only a reflection of supergene and hypogene alteration. The
eastern portion of the mine area consists predominantly of the two porphyries, with northeastern-
trending dikes present in the western half of the pit. Only one intrusive contact was measured; it
was found to dip at a low angle to the south.
Mid-Tertiary andesite dikes visible in the upper benches of the San Manuel pit crosscut
Laramide granodiorite porphyry and Precambrian quartz monzonite. The olive gray to dark
greenish gray intrusive rocks are aphanitic to fine-grained with minute interlocking plagioclase
and pyroxene grains; these dikes may correlate to Late Cretaceous/Tertiary diabase dikes
reported by Thomas (1966). Occasional phenocrysts and calcite-filled vesicles were noted,
especially at higher elevations. Thin section analysis by Eastoe (1996) reported compositions
and ferromagnesian contents that bordered andesite and basalt. On the 2580, 2520, and 2460
benches, especially within the failure zones on the north wall, high-grade exotic chrysocolla and
copper wad mineralization is hosted by an andesite dike sub-parallel to the bench wall. Above
the 2520 bench in the northeast corner of the pit, the same andesite dike was intruded along the
Mafic fault, but it is not mineralized in the upper benches. On the 2880 bench, the dike is
present on the hanging wall of the fault, pinching out just above the Cloudburst/San Manuel
contact. One bench higher, the andesite appears to be capped with a layer of caliche and overlain
by Recent (?) stream sediments. A dike of apparently the same composition is present in the
northwestern portion of the pit.
Tertiary rhyolite and rhyolite breccia crosscuts all of the older igneous host rocks and the
Tertiary Cloudburst Formation, but not the Tertiary San Manuel Formation; thus the rhyolite has
an approximate date of 22 Ma. White, pinkish gray and light brownish gray rhyolite occurs as
10-50 foot-wide dikes, brecciated often along both borders. The rhyolite is a microcrystalline
mixture of quartz and feldspar; with minor 1 to 2 mm quartz, plagioclase, and biotite
phenocrysts. Devitrification textures and lithic fragments were observed in thin section, and
contained foliation textures resembling a felsic lava or ash-flow tuff. In the oxide zone, rhyolite
fracture surfaces are commonly coated with copper wad and chrysocolla, and are coated with
iron oxides in the leached cap. A white, 50-foot wide dike with distinctive tabular and columnar
jointing patterns is visible on the 2160 and 2220 benches in the west bottom corner of the pit.
On the south wall of the pit on the 2280 and 2340 benches, fragments of granodiorite porphyry
were noted within the rhyolite breccia dike; the breccia matrix and rims around the fragments are
stained an intense brick red or moderate reddish brown by hematite and goethite.
The Tertiary (upper Oligocene to lower Miocene) Cloudburst Formation is the oldest of the
tilted conglomerate units in the mine area. Basaltic lava near the base of the type section of the
Cloudburst Formation in Cloudburst wash has a whole rock date of 28.3 +0.6 Ma (Dickinson and
Shafiqullah, 1989). A rhyolite clast from rhyolitic breccia and tuff-breccia from the uppermost
Cloudburst Formation has a K-Ar date of 22.5 + 0.5 Ma. Regionally, this formation is reported
to be more than 10,000 feet thick, but within the open pit the Cloudburst Formation is less than
100 feet thick due to erosion before deposition of the San Manuel Formation. Regionally, the
lower member consists of interbedded intermediate-composition volcanic rocks and
volcaniclastic conglomerates up to 4,900 feet thick. The upper member comprises conglomeratic
units containing clasts of all the older units in the area, as well as muddy, arkosic and
volcaniclastic redbeds. Within the open pit, the Cloudburst Formation consists of pyroclastic

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flows and maroon-colored conglomerate beds that dip 40 degrees to the east. The present mean
strike and dip of the Cloudburst Formation in the structural blocks containing the San Manuel
porphyry system is N20W, 30NE (Force and Dickinson, 1994).
Locally termed the Gila Formation, the Tertiary (lower Miocene) San Manuel Formation is
in depositional contact with the Cloudburst Formation and San Manuel porphyry along the
northeast and eastern edges of the San Manuel pit, and in fault contact with the underlying
igneous rocks on the north, northwest, west and south sides of the pit. The unit consists of
loosely to moderately consolidated conglomerate cemented by a red to gray, calcareous arkosic
and silty matrix. The poorly sorted, subangular to subrounded conglomerate clasts include all of
the older rock types including Oracle granite, diabase, granodiorite porphyry, andesite, and
rhyolite. In the Mammoth area, the lower Kanally member of the formation is nearly 1,200 m
thick. The upper Tucson Wash member consists of fragments of the Cloudburst Formation and
older rocks and is approximately 300 m thick (Sandbak and Alexander, 1995). The present mean
strike and dip of the San Manuel Formation in the structural blocks containing the San Manuel
porphyry system is N35W, 30NE (Force and Dickinson, 1994). Within the open pit, the San
Manuel Formation dips 25 to 35 degrees to the southeast and northeast, although dips as low as
11 degrees to the northeast were recorded. Bedding trends in all of the overburden units have
been affected by ground subsidence related to the underground block caving. Thin rhyolitic ash-
fall (?) tuffs are present locally, generally less than 1 m in thickness, and rarely exposed for more
than 10 m in strike.
The youngest unit, visible around the periphery of the San Manuel pit, is the mid-Miocene
to Pliocene (Dickinson, 1993) Quiburis Formation. The Quiburis consists of relatively flat-lying
fluvial deposits of pale yellowish brown, well-sorted silt, sand, and gravel lenses in
nonconformable contact with the tilted San Manuel Formation. Within the open pit, the Quiburis
dips 11-25 degrees to the southeast. The Quiburis Formation is one of the most extensively
exposed valley fill units within the San Pedro River trough (Agenbroad, 1967).
6.3.2 Structure
The structure of the San Manuel area involves a complex history of extension evidenced by
post-ore tilting and normal faulting. Following emplacement of the San Manuel porphyry, the
San Manuel/Kalamazoo ore body was tilted approximately 35 degrees to the east during the mid-
Tertiary (Force et al, 1995) through a series of extensional events that followed, or was coeval
with, the deposition of each of the conglomerate units. After tilting, the ore body was cut by the
San Manuel fault that displaced the Kalamazoo segment 8000-ft. (2400m) to the southwest. The
San Manuel ore body was then cut by a series of northwest trending, northeast dipping faults
associated with regional Basin and Range extension. Several northeast trending, southwest
dipping structures have been mapped within the San Manuel ore body, but the timing of these
structures has had various interpretations. The crosscutting relationships of these structures as
observed during the recent mapping project is discussed below. The following is a list of the
major, through-going faults observed during the mapping project with their corresponding
orientations and descriptions:

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 Cholla fault: N30ºW, 70ºNE; separates Quiburis Fm and San Manuel Fm in the
northeastern side of the pit. The fault typically consists of 2 to 4 inches of brecciation and
shearing, with calcite present in the most northern exposures. The fault appears to
shallow and horsetail as it encountered the Cloudburst and underlying granodiorite
porphyry, and could not be traced below the 2640 level.
 Cactus fault: N25ºW, 63ºNE; cuts San Manuel Fm and defines part of San Manuel Fm/
Cloudburst contact along the northeastern side of the pit. The fault is very similar in
appearance to the Cholla fault, being a breccia and shear zone several inches to as much as
one foot wide. Calcite is locally present.
 East (Mammoth) fault: N20ºW, 58-80ºNE; cuts several lithologies within northeast
central portion of pit, and consists of multiple faults planes within a 100’ zone;
characterized by failure zones where it is cut by the Mafic fault on the 2460 and 2520
benches. The individual fault strands are generally 1- to 3-foot wide argillized breccia
zones that vary in width along strike. The most dramatic variation can be seen from a 6-
foot wide breccia located on the 2280 that pinches down to 2 inches 300 feet along strike
on the 2460 bench. The fault zone was traced to the haul road on the 2280, at which point
bench face exposures are subparallel to the fault. Several faults were mapped that are
similar in orientation, but none that were along strike.
 Mafic fault: N20-50ºE, 70ºSE; cuts northeast wall of pit from 2880 down to 2520(?);
intruded in part by andesite dike. The fault is an argillized breccia zone normally a few
feet in thickness, but can be up to 8 feet wide. The fault appears to be truncated by the
San Manuel Formation, with an apparent erosional surface and caliche layer
 Marty fault: N65ºE, 65ºSE; cuts northeast side of pit; it was not identified during the
recent mapping project, but fault segments on the following benches are possible
candidates: 2100-2160, 2220, 2400-2460. The Marty fault has been interpreted as a major
control on the distribution of oxide mineralization and fluid flow (Burt, et al, 1994), and
needs to be systematically located from projected drill hole intercepts and traced on the
surface.
 San Manuel fault: pre-mining orientation was N66ºW, 26ºSW (Creasey, 1965), block
caving has rotated the fault from N5ºW, 35ºSW to N45ºE, 35ºSE from north to south (Fig.
1); the fault defines contact between conglomerates and crystalline rocks in western half
of pit; within the pit, the structure is defined by a 6 to 12 inch red clay gouge zone; locally
with 5 to 15 feet of gouge and shearing in the crystalline footwall. In contrast, the San
Manuel fault consists of 75 to 100-foot wide shear and breccia zone where both the
hanging wall and footwall are crystalline (Thomas, 1966)
 Vent Raise fault: N59ºE, 80-90ºSE; cuts granodiorite in southeastern portion of the pit;
located between north and south ore body in the upper portions of the underground
workings. Because the fault is parallel to the bench faces, projections from drill hole
intercepts and underground workings are required to extend the fault trace east along
strike.
 West fault: N34ºW, 61ºNE; cuts north wall from surface to bottom of pit; fault zone
dimensions vary from <1 to 30 feet; usually contains several inches to several feet of clay
gouge zones that occur in en echelon fashion within a larger brecciated and fractured

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zone. Although the West fault is easily traced along the northern pit wall, it appears to
have undergone right-lateral displacement along a north-dipping fault traversing the
bottom of the pit. It is believed that the high-angle fault that places San Manuel
Formation against granodiorite porphyry in the south pit wall is the southern extension of
the West fault.
Previous interpretations of the timing of the Vent Raise and Marty faults have been varied.
Both of these structures have been interpreted as “post-ore, pre-conglomerate faults” (Sandbak
and Alexander, 1995). The Marty fault has been mapped previously within the open pit as
cutting the San Manuel Formation (M. Rex, pers. comm.). The Vent Raise fault may cut the San
Manuel Formation along the east wall of the pit, however relationships are unclear due to failures
and runoff material covering the bench faces. These timing relationships are further complicated
by subsidence due to block caving within the underground operations. Where not intruded by
andesite, the Mafic fault has a similar orientation to the Marty fault and is mapped as cutting the
East fault on the 2340-2400 benches. The intrusion of an andesite dike within part of the Mafic
fault suggests a pre- or syn-Cloudburst structure. The Mafic fault places Cloudburst and
unconsolidated gravels against Oracle granite on the 2820 and 2880 benches, and was not traced
into San Manuel Formation on the 2940 which also indicates pre-San Manuel Formation
movement. However, the East fault cuts the San Manuel Formation (Creasey, 1965), which
should make it younger than the Mafic fault. Clearly any interpretation of timing of particular
structures must incorporate the various phases of the complex structural history of the area
together with any recent subsidence due to block caving
Fault breccia and gouge zones observed during the geological mapping are generally less
than 3 feet in width, and are frequently cross cut by small-scale fractures. Only the West fault
appeared to be significant in width and strike length to have a large-scale influence on fluid flow.
Although small-scale heterogeneties are certainly related to the mapped faults, there are
numerous short-strike length faults that were unmapped that may also provide equally important
small-scale discontinuities to fluid flow. These can be easily observed by the numerous seeps
present in the in situ well field that occurred along small fractures equally as often as along
major faults.
6.3.3 Alteration and Mineralization
This report includes a color copy of the 1:2400 scale alteration and mineralization map
completed in July 1996. Alteration assemblages mapped in the San Manuel pit followed the
nomenclature of Lowell and Guilbert (1968), although the presence of supergene argillization
often masks the nature of hydrothermal alteration.
Hydrothermal alteration and vein assemblages observed during mapping included:
 Potassic; consisting largely of quartz + K-feldspar veinlets, occasionally accompanied
with biotite veinlets.
 Phyllic; characterized by quartz + sericite veinlets and 5-7 vol. % sulfides.
 Propylitic; chlorite + minor epidote, mostly as pervasive alteration.

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In general, quartz + K-feldspar veins were observed in rocks with relatively low intensity of
supergene argillic alteration, so that hypogene assemblages were not obliterated. Although not
always observed in hand specimen, it is assumed that potassic alteration occurs throughout the
remainder of the mineralized zones. The alteration overlay map shows that phyllic alteration
occurs in the northern portion of the pit. San Manuel porphyry that is essentially unmineralized
and weakly altered (containing only minor chlorite after biotite and sericite after plagioclase) is
present in a NNE-trending zone in the southern portion of the mine. Although not large enough
to map, local areas of propylitic alteration were observed on the southern margin of the pit.
Supergene alteration consists largely of clay minerals that pervasively alter mineralized
rocks. Where oxide mineralization occurs, the supergene alteration tends to be moderately
developed as pervasive replacements of plagioclase and biotite. Near the eastern edge of the
deposit, intense argillic alteration underlies the Cloudburst and San Manuel formations, resulting
in a very low-strength rock. It is believed on the basis of map patterns that this intense
argillization is related to the Cloudburst-aged topographic surface, and may be a 100- to 150-foot
thick leached capping zone that is underlain by typical oxide mineralization.
The hypogene sulfide mineralization consists of chalcopyrite, pyrite, and molybdenite in
veinlets, disseminated blebs, and fracture coatings. Larger veins of pyrite + chalcopyrite +
magnetite are occasionally visible, and tend to be northeast trending and moderate to low dips.
In the sulfide ore body, total sulfide contents are approximately 2 to 4 percent and pyrite to
chalcopyrite ratios are approximately 1:1 to 1:3 (Lowell and Guilbert, 1970, Sandbak and
Alexander, 1995). Molybdenite is associated with the higher-grade chalcopyrite ore and occurs
as fracture coatings and in quartz-molybdenite + chalcopyrite veinlets. Within the San Manuel
Oxide pit, the only exposed sulfides are located within the phyllic alteration boundary (Fig. 2).
Here, the Oracle granite contains 3 to 15 percent total sulfides on fractures and veinlets, with
pyrite to chalcopyrite ratios of 10:1 to 30:1. Molybdenite within quartz veinlets is common, but
nowhere abundant. Chalcocite coats pyrite and chalcopyrite and is especially visible on the 2520
to 2220 benches on the northwest walls of the pit.
The dominant supergene oxide minerals include chrysocolla and copper wad with minor
cuprite, malachite, and traces of native copper. Goethite dominates the limonite mineralogy in
the oxide and leached capping areas, and jarosite in the areas where sulfides still remain.
Transported limonites are generally more abundant than indigenous, and sulfide boxworks are
completely filled. Most of the leached capping appears to be poorly developed, and does not
indicate that significant enrichment was developed. A small area of well developed leach cap
was noted in the uppermost northern pit wall on the hanging wall of the West fault that is within
the phyllic alteration zone. This area may be underlain by significant grades of chalcocite
mineralization, although due to the lack of surface area containing attractive capping
characteristics, the tonnage is likely to be low.
Alteration and mineral precipitation related to the in situ leaching operations were also
noted, as mining and in situ leaching had been conducted simultaneously since 1985, and the
current mining levels are now within volumes that had been previously leached. The major
affects observed in the field include:

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 partial dissolution of chrysocolla, varying from a greenish yellow discoloration of
the chrysocolla to visible reaction fronts that have removed portions of chrysocolla
from individual fracture plane leaving a core of residual chrysocolla; and
 mineral precipitation products that certainly include gypsum and may include other
phases such as goethite, clays, and aluminum sulfates.
Gypsum was observed to be in two major forms, thin coats that tended to form on
chrysocolla, and acicular sprays of crystals that generally formed on barren portions of fractures
and open spaces. Both types of gypsum could often be observed on a single fracture. Both the
goethite content of the iron oxides and the clay alteration intensity appeared to be higher in the in
situ leach fields, compared to oxide mineralization that have not been leached in situ. These
differences may be due to slightly different geological histories, as these areas occur on opposite
sides of the West fault, or may be due to the effects of in situ leaching.

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7. Database
The San Manuel Oxide Resource Model database includes a combination of churn, core,
and reverse circulation drill holes. The drilling is divided into two distinct groups based on the
drilling target. The first group consists of drilling to define the sulfide ore body and the second
group contains drilling to define the oxide ore body.
The San Manuel Resource Definition Project began in late 1996. This study is exploring
the possibility of reopening the oxide pit. The early result of this study was to provide a better
and more comprehensive drill hole database that included all of the drilling ever done on the
property. From an excess of 2,000 drill holes, many were removed that existed within the block
cave area. However, a few hundred still remained and these holes indicated that more oxide
orebody existed at depth. They project has then gone onto drilling over 100 additional holes to
better define the orebody. Modeling and planning are still underway.
7.1 Components
7.1.1 Sulfide
The sulfide drilling is a subset of the database for the San Manuel Sulfide. The early
drilling consisted of churn drilling from 1944 to 1953 by the Bureau of Mines, San Manuel
Copper Corporation, and the Houghton group. This drilling includes 131 holes representing
223,720 feet of drilling.
Underground diamond drilling started in 1949 and continued through 1980. A total of
1,000 diamond drill holes were included in the database. These holes were identified as either
partially or entirely outside of the underground mining panels. Some of these holes are no longer
valid due to the block caving.
The churn and diamond drilling was assayed on five foot intervals. Assays for total copper and
acid soluble copper as well as the rock type and the alteration type were included in the database.
7.1.2 Reverse Circulation
The oxide drilling occurred generally after block caving to confirm the geologic resource
of the supergene enriched zone and better define the moving (caving) oxide ore body. This
drilling was started in 1983 and continues to date as part of various drilling campaigns. A total
of 224 reverse circulation holes, assayed on 10 foot intervals, were drilled through 1995.
7.1.3 1990 Drilling Campaign
Ten diamond drill holes were drilled in June of 1990 and assayed on five-foot intervals
into the oxide resource. These holes include 5 surface core holes totaling 2,904 feet and 5 UGIP

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(Underground Injection Program) core holes totaling 3,420 feet. The Oxide drilling campaign
assayed for total copper, acid soluble copper, iron, sulfur, aluminum, calcium, magnesium, and
manganese.
7.1.4 1996 Drilling Campaign
During this period, 16 core holes were drilled13 to investigate the possibilities of
increasing the acid soluble copper resources of this operation and to study the nature of specific
geological structures as they relate to the In situ mining process. Both of these objectives were
achieved. The eastern and southeastern limits of the orebody have been extended, and we have a
better understanding of the West and Vent Raise faults. The geological block model has now
being updated.
Two major rock types are present in the area: the Precambrian quartz monzonite and the
Tertiary monzonite porphyry. The major host for the acid soluble copper mineralization in the
area currently in production is the monzonite porphyry. The orebody is intensely fractured and
faulted. Major structural trends are northwest and northeast. Several, sub-parallel, northwest-
trending faults have sliced the orebody into large blocks which were then down-dropped relative
to each other in an northeasterly direction. One of these is the West fault which is a major
structure that separates zones with good oxide copper mineralization to the east from poorly
mineralized rocks to the west. This fault is a potential barrier to flow. Fluids originating in the
In situ fields on the east side of the fault have a high probability to be blocked by the West fault.
Based on pre- and post-In situ geologic mapping, fracture and fault sets with a northeasterly
trend and with dips paralleling the northern wall of the pit exist in the pit area. Structures falling
in this category need to be better understood, however. In a wide sense, the general attitude of
these structures appears to correlate with the orientation of the Vent Raise fault complex.
The dominant alteration effects are evident as pervasive argillization. In the leach field
areas, supergene processes and underground block caving have had additional effects on the
amount of clays primarily by increasing their abundance. Quartz-sericitic alteration effects are
evident in the sulfide-rich zones west of the West fault and on the northern edges of the pit.
Most of the leachable copper mineralization occurs as fracture-filling chrysocolla. Only
very minor amounts of acid soluble copper are tied up to the rock matrix as copper compounds
staining feldspar phenocrysts.
The principal structure that will have drastic effects on fluid migration is the West fault.
It is interpreted as being a potential barrier to flow. Structures of the Basin and Range type,
which parallel the West fault, are most likely conduits to fluid flow. These structures are not as
powerful as the West fault. In the leach field areas, they occur within a single, well-fractured
rock type (monzonite porphyry). The Vent Raise fault complex, because of its spatial location
above the mineralized zones, will not be an issue to gravity-controlled fluid flow originating in
the deeper mineralized portions of Zone 11. However, structures parallel or sub-parallel to the
Vent Raise, including those paralleling the north wall of the pit, are conductive to fluid flow.
Although intense fracturing and faulting in the mineralized area promote and support gravity-

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controlled fluid flow, the major problem that the underground recovery process will be facing is
fluid (PLS) loss. It is an issue that deserves further and detailed investigation.
One of the critical elements in this operation that needs additional detailed attention is the
structural control of the distribution of acid soluble copper mineralization. Fractures and faults
affect fluid flow either by promoting it (open fractures), or by obstructing it (gouge-rich faults).
We have learned much about the West and the Vent Raise faults, and about how they affect the
leaching operations, but we have not investigated the behavior of other important faults. The
East fault was intersected at depth by the vertical hole SMO9607 between 400 and 600 feet, but
the structure could not be identified exactly since numerous fault structures were encountered
throughout this zone. An angle hole through the East fault at a shallower depth would be
helpful, but there is a lack of a suitable drill site on the narrow and crowded benches. In order to
learn more about these structures, it is recommended that the possibilities of implementing a
detailed mapping program be discussed and evaluated by the geology team. The original
fracturing of the rocks in the pit area has been affected by subsequent blasting and mining,
making it difficult to discern the original fracturing from the fracture patterns now evident in the
pit. We must discuss and surpass this structural complexity by deciding on the type of pertinent
observations the geologist must record in the field. This mapping program must also include the
West Block area (to the west of the West fault) since this will be the future copper sources of this
operation. Furthermore, this detailed mapping will help establish the continuity of known
structures, notably the Marty fault and other structures parallel or sub-parallel to it, and will help
us understand more clearly the age relationships among major structures. Much of the area has
been mapped on several occasions, but perhaps not at the degree of detail needed for an
operation of this type.
7.1.5 1997 Drilling Campaign
7.2 Verification and Manipulation
The current drillhole database was created by double entry of historic hand written logs.
The double entry allowed for checking of the data entry and the reduction of errors within it.
This work was outsourced to Geo-Temps of Tucson during 1996. This includes all drillholes up
to 1995.
The 16 diamond drillholes that were cored during 1996 were logged into Excel
worksheets. Assay data was brought in from Ascii files that the San Manuel Metallurgical
Laboratory provided. As a control, all logging included an estimate of the acid soluble copper
grade to compare with the assay result. This methodology found approximately 20-25 assays
that were incorrect. For these assays the core was rechecked to check for plausibility and either
the reject or the pulp was re-assayed. The re-assay always closely matched the expected the
value and the first analysis was discarded.

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Statistical analysis of all values in the database was performed to identify outlying points
and check them for accuracy. Less than a dozen were found to be in error from probable
typographic errors.
7.3 Sampling
Sampling techniques have changed numerous times over the 50-year life of the deposit.
Older techniques are no longer known with any certainty. The current practice in the sulfide
operation is to whole sample the bulk of the core and retain only a small representative sample
from each logging interval (skeletonizing). Most of the DD series of holes are done by this
method although very few are used for modeling the oxide portion of the orebody.
ARM series holes which are primarily reverse circulation make up the bulk of the database
that is used for modeling the oxide orebody. The pulps from these holes are stored in the old
coreshed.
Starting with the 1996 diamond drilling campaign all core was split and the unsampled half
is stored in the Tiger coreshed.
7.4 Quality Process Control
The 1996 drilling campaign was the first time that a set of check assays was performed.
7.5 Copper Assays
Nearly all assaying of recent times has been done by the San Manuel Metallurgical
Laboratory. Older assaying was only done for total copper and acid soluble copper. Recently
this now includes a multi-element analysis of Iron, Sulfur, Aluminum, Calcium, Magnesium, and
Manganese.
*Acid Soluble Copper is determined by San Manuel Metallurgical standard test number AP-101.

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8. Block Model
8.1 Geologic Model
Items in the Model
Holename - The name of the hole.
From - The beginning of each logged interval.
To - The end of each logged interval.
AI - The length of the logged interval.
Rock Type - Code for the rock type.
0 = Unknown
1 = Gila Conglomerate (San Manuel Formation)
2 = Cloudburst Formation
3 = Rhyolite
4 = Andesite
5 = Diabase Dikes
6 = Monzonite Porphyry (San Manuel Porphyry)
7 = Quartz Monzonite (Oracle Granite)
8 = Quartz Monzonite Breccia (Intrusive Breccia)
9 = Unnamed Faults
10 = San Manuel Fault
11 = Dacite Porphyry Dike
12 = Aplite Dikes
13 = Syenite
14 = Latite Porphyry
15 = Fault Zones
16 = Shear Zones
Alteration Type - Code for the alteration type.
0 = Fresh
1 = Argillic
2 = Phyllic
3 = Potassic
4 = Propylitic
5 = Silicic
6 = Structural Clay
7 = Hydrothermal Clay
8 = Iron Oxidation
9 = Cupric Oxidation
10 = Aplitic
11 = Aphanitic

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%TCu - Total copper assay.
%ASCu - Acid soluble assay done by San Manuel method.
%Fe - Iron assay.
%S - Sulfur assay.
%Al - Aluminum assay.
%Ca - Calcium assay.
%Mg - Magnesium assay.
%Mn - Manganese assay.
Recov - % Recovery of core for each run.
Frac - The number of fractures counted in a 1 foot interval.
Leach - Code for estimation of the % chrysocolla dissolved, gypsum present, etc.
Gypsm - Code for percentage of gypsum.
Clay - Code for percentage of clay.
Flag - Tag for hole accuracy (1=bad, 0=good)
Zone - Zone assay is in (oxide/sulfide)
VBMS
SMOX25.SEC - This VBM contains features on the standard set of cross-sections.
The sections match the geology grid with an azimuth of 150 and a vertical dip. Section numbers
-2200 to 4000 are included.
VBM Feature Table
101 - Oxide Ore Contour (0.20% ASCu)
102 - International Zone (0.20% ASCu)
301 - Gila Conglomerate (San Manuel Formation)
306 - San Manuel Porphyry
307 - Quartz Monzonite (Oracle Granite)
501 - Fourier Fault
502 - Seep Fault
503 - Uzle Fault
504 - West Fault
505 - Vent Raise Fault
506 - East Fault
507 - Marty Fault
508 - Inferred Fault
509 - Harry Fault
510 - Magma Fault
511 - Mox Fault
512 - Mafic Fault
513 - West End Fault
514 - West Fault Zone
515 - West Boundary Fault
516 - Cactus Fault

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517 - Oxide Fault
518 - Cholla Fault
520 - Unnamed Faults
801 - Underground Drifts
SMOX25.TOP - This VBM contains the original and current topography.
Feature Table
901 - Current Topography
910 - Original Topography
SMOX25.PL3 - This VBM contains plan slices of the solid of the orebody built in Minesight.
Feature Table
101 - Main Orebody
102 - International Zone
The slices were cleaned up to remove stray points.
Cross-Section Plots
Cross-sections are run with the custom procedure gsplt.dat. This procedure was created by
modifying secplt.dat and adding the ability to bring in the old topography. This new procedure
can be found in the custom menu, gary.mnu. The standard set of cross-sections are -2,200 to
4,000 E every 200 feet. Each section has northings of -1,500 to 2,500 N, which are put on the
section with userf north.geo. The elevation range is 750 to 3,500 feet asl. A legend is added
with the userf legend.gs.
Plot.geo is a file that sets colors for geology feature plots
Legend.gs is a userf that plots a legend on the bottom of the cross-sections.
North.geo is a userf that plots northing lines every 500 feet on standard cross-sections.
Color.tab is a file that allows screen colors to match plot colors.
Plot.inf is the plotting initialization file.
Digit.inf is the digitizing initialization file.
*.F2 are userf files that contain overlays with ore contours, faults, etc.
*.HP are plot files of sections
Collar Plot
Two collar plots were made of holes drilled from surface by selecting collar elevations between
2,070 and 3,500 feet with z-col variable in file 12. Eastern collar plot covers 9,000-12,250 E and
7,500-13,000 N. Western collar plot covers 12,250-15,500 E and 7,500-13,000 N.

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Block Model
Variable Minimum Maximum Precision Description
TOPO 0 100 1 % Block Below Topography
ROCK 0 20 1 Rock Type Code
TCU 0 20 0.001 Total Copper
ASCU 0 15 0.001 Acid Soluble Copper
ORE 0 100 1 % Block is Ore
AL 0 10 0.1 Aluminum
FE 0 20 0.01 Iron
S 0 10 0.01 Sulfur
TNFAC 10 20 0.01 Tonnage Factor
KVAR 0 1 0.001 Kriging Variance
REC% 0 100 0.1 % Recovery
ALTER 0 20 1 Alteration Code
ZONE 0 10 1 Main or International
DIST 0 500 1 Dist to Closest Composite
COMPS 0 20 1 # Composites Used
ASCU2 0 15 0.001 Remaining ASCu Grade
CULBS 0 200,000 1 Copper Pounds in Block
Add TOPO% to Block Model
The variable TOPO is set by running procedure P63301.DAT. This procedure uses the variable
TOPOG from File 13 to calculate the percent of the block in File 15 that is below the surface.
Calculating Ore (%)
Minesight was used to calculate the percent of the block within a solid model of the main
orebody and of the International zone.
Coding item Zone
Minesight was used to code the zone variable with a 1 for inside the main orebody and a 2 within
the International zone.
Coding item Rock
Minesight was used to code the item Rock. The Rock item was initially set to 6 for the San
Manuel Porphyry. Then two solids were built. Solid one is for the San Manuel Formation.
Solid two is for the Quartz Monzonite. These two solids were used to code the Rock item in the
block model.

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Coding item Tnfac
The model has 3 rock types set. Rock type 1 is the San Manuel Formation, which has a tonnage
factor of 14.2. Rock type 6 is the San Manuel Porphyry, which has a tonnage factor of 12.7.
Rock type 7 is the Quartz Monzonite, which has a tonnage factor of 13.15.
International Zone
The International Zone was coded by using a solid model in Minesight. The procedure for
building a solid and updating the model is as follows.
 Ascii out feature 102 from SMOX25.SEC with plane orientation to file 102.VBM
 Create VBM set International
 Import Medsystem VBM (Ascii) file - 102.VBM
 Redefine Endpoints to common point
 Create Geometry set International
 Build solid with Link Editor
 Update model - code item only for item Zone in block model
 Update model - percent item only for item Ore in block model
Fluid Surface Models
Given a file of x, y, z points this procedure will build you a nice surface file for MineSight.
1. Contour Survey Data (P60791) - FLDLVL.VBM
2. Initialize File 25 - SMOX25.FLD
3. Ascii in FLDLVL.VBM
4. Topo Grid, VBM-DTM (P65702) - GRID.DTM
5. Import Medsystem DTM to 3D Geometry member
A basic surface with lower resolution can also be built for MineSight as follows
1. Create DTM (P63501) - FLDLVL.DTM
2. Import Medsystem DTM to 3D Geometry member
8.2 Model Database
Adjusted SMURM Database
The SMURM project had all prior drilling entered into a database. This database was then used
by the Growth and Technology group (Todd Carstensen, Ken Schuler) and Gary Sutton to model
the effects of block caving and build a resource model. This entailed shifting and deleting
drillholes. This new adjusted drillhole database is now included in the 1997 In-Situ model. The
SMURM database includes variables for: MOS2, AU, AG, FLAG that are not used in older
models.

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8.3 Assay Data
SMOX11.NEW
The total number of holes in the database is 1406.
Series Total Deleted Remaining Year Description
ARM 172 5 167 1984-94 Open Pit
CD-# 126 45 81 1945-73 Churn
CD-X 29 0 29 1944-46 Churn
CR 9 0 9
DD 1001 343 658 1950-80 Diamond Drill
DDHADD 5 0 5 1990
H 31 0 31 Houton
IC 23 0 23 1945-53 International
K 214 202 12 Kalamazoo
LIH 39 0 39 1983-91 Leach Injection
LIHECHO 8 0 8 1989-90 Leach Injection
LIHEXP 11 1 10 1990-91 Leach Injection
MM 103 0 103 Tiger
PH 243 78 165 1951-80
PHK 24 11 13 Pilot
R 2 0 2 1984
SHAFT 8 0 8
SMO 16 0 16 1996 1996 pit holes
UGIP 5 0 5 1991 UG Injection
Z 22 0 22 1996 Created Holes
2091 685 1406
The items carried are:
Variable Minimum Maximum Precision Actual-Min. Actual-Max.
REF# 0 5,000 1
FROM 0 6,000 0.1 0.0 3,130.0
-TO- 0 6,000 0.1 1.0 3,740.0
-AI- 0 6,000 0.1 0.1 2,029.0
ROCK 0 20 1 0 15
TCU 0 20 0.001 0.000 16.381
ASCU 0 15 0.001 0.000 13.160
FE 0 20 0.01 0.00 10.00
S 0 10 0.01 0.03 7.00

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AL 0 20 0.1 0.0 9.8
CA 0 10 0.1 0.0 5.8
MG 0 10 0.01 0.00 3.40
MN 0 10 0.01 0.00 0.20
MOS2 0 1 0.001 0.00 0.38
AU 0 10 0.001 0.00 1.021
AG 0 10 0.001 No Data No Data
ALTER 0 20 1 0 11
FLAG 0 10 1 0 1
RECOV 0 100 1 0 100
FRAC 0 100 1 1 50
LEACH 0 10 1 0 7
GYPSM 0 10 1 1 6
CLAY 0 10 1 0 7
ZONE 0 10 1 No Data No Data
XTRA1 0 100 1 No Data No Data
XTRA2 0 10 0.1 No Data No Data
XTRA3 0 1 0.01 No Data No Data
8.4 Topography
The topography file SMOX25.TOP contains the 1995 flyover topography and the original
topography.
The original topography comes from a digitizing effort done in November 1996. The original
Fairchild maps were digitized for each 10-foot contour. The area of coverage is 7,000 to
19000 E and 5,000 to 16,000 N. The precision of the data is 0.1 feet. The data will be loaded to
the topography vbm with a feature code of 910. Feature 910 has a minimum of 2,820 and a
maximum of 3,490.
The current topography comes from the flyover performed in early 1995 after the closure of the
pit activities. The area of coverage is 9,000 to 16,000 E and 8,000 to 13,000 N. The precision of
the data is 0.1 feet. The contour interval is 5 feet. The data is loaded in the topography vbm
with a feature code of 901. Feature 901 has a minimum of 2,080 and a maximum of 3,480.
The topography file contains 2,258 features and 347,031 points.
Surface File 13
File 13 was initialized with the variable TOPOG.
Procedure P65701.DAT (TOPO GRID from VBM) was run.
Input parameters were SMOX25.TOP, Feature 901.
Minimum = 2,080 elev. Maximum = 3,409 elev.

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8.5 Composite Data
Composites
Composites are every 10 feet down the hole with respect to rock type, Flag range set to 1. The
items interpolated are TCu, ASCu, MOS2, Fe, S, Al, Ca, and Mg. Items coded are Flag and
Zone.
Variable Minimum Maximum Precision Description
REF# 0 5,000 1 Reference Number
EAST 8,000 16,000 0.1 Easting
NORTH 7,000 13,500 0.1 Northing
ELEV. 150 3,450 0.1 Elevation
-TO- 0 4,000 0.1 Downhole Distance
LENGTH 0 10 0.1 Length of Composite
ROCK 0 20 1 Rock Type Code
TCU 0 20 0.001 Total Copper
ASCU 0 15 0.001 Acid Soluble Copper
FE 0 20 0.01 Iron
S 0 10 0.01 Sulfur
AL 0 10 0.1 Aluminum
CA 0 10 0.1 Calcium
MG 0 10 0.01 Magnesium
MN 0 1 0.01 Manganese
MOS2 0 1 0.001 Molybdenum
AU 0 2 0.001 Gold
ALTER 0 20 1 Alteration Code
FLAG 0 10 1 Assay Reliability Tag
ZONE 0 10 1 Interpolation Tag
8.6 Model Statistics
8.6.1 Assays
Statistics were run for both total copper and acid soluble copper for the 5 main rock types that
make up over 95% of the assigned rock types for assay intervals. From this population the two
main rock types (San Manuel Porphyry and Quartz Monzonite) make up over 96% of the
assigned rock types for assay intervals within the model area. Therefore for modeling purposes
only these two main rock types will be assigned to the model and interpolation will be done
honoring the two rock types.

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San Manuel Porphyry
A total of 17,056 acid soluble copper assays are available. The maximum value is 3.71%. A
total of 8,604 assays were above 0.20%. From this population, the mean is 0.458% with a
variance of 0.545. The distribution is almost log normal.
A total of 17,420 total copper assays are available. The maximum value is 7.76%. A total of
10,883 assays were above 0.30%. From this population the mean is 0.608% with a variance of
0.528. The distribution is almost log normal.
Quartz Monzonite
A total of 7,329 acid soluble copper assays are available. The maximum value is 2.66%. A total
of 2,613 assays were above 0.20%. From this population the mean is 0.545 with a variance of
0.568. The distribution is almost log normal.
A total of 7,338 total copper assays are available. The maximum value is 5.18%. A total of
4,581 assays were above 0.30%. From this population the mean is 0.732 with a variance of
0.552. The distribution is almost log normal.
Other Rock Types
From all other assays that have rock types assigned to them and are not San Manuel Formation
or Cloudburst Formation add up to 915 assays. This makes up a little over 3% of the assays. At
the same time, modeling of these lithologic units is difficult with the limited number of drilling
intersections and their wide spacing.
The minor units were discarded from modeling and interpolation runs. Lithologic units will be
restricted to the San Manuel Porphyry, Quartz Monzonite (Oracle Granite), and overburden (San
Manuel Formation and Cloudburst Formation).

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Assay statistics for each rock type:
Total Usable 101 Avg. 102 Avg.
Rock Rock Type Tnfac Assays Assays Assays Grade Assays Grade
0 Unknown 13.00 859 0 0 0.000 0 0.000
1 Gila Conglomerate 14.20 2,578 1,184 21 0.240 2 0.130
2 Cloudburst 14.20 1,024 95 0 0.000 0 0.000
3 Rhyolite 13.30 2,820 572 339 0.239 0 0.000
4 Andesite 13.00 230 73 25 0.494 0 0.000
5 Diabase 13.00 75 59 34 0.541 0 0.000
6 San Manuel Porphyry 12.70 21,306 17,924 8,277 0.377 353 0.367
7 Quartz Monzonite 13.15 9,640 8,957 3,799 0.440 0 0.000
8 Quartz Monzonite Breccia 13.15 1,178 37 28 0.280 0 0.000
9 Unnamed Faults 15.00 4 0 0 0.000 0 0.000
10 San Manuel Fault 15.00 0 0 0 0.000 0 0.000
11 Dacite Porphyry 13.00 321 251 19 0.664 0 0.000
12 Aplite 13.00 30 32 21 0.338 0 0.000
13 Syenite 13.00 51 0 0 0.000 0 0.000
14 Latite Porphyry 13.00 0 0 0 0.000 0 0.000
15 Fault Zones 15.00 455 431 180 0.410 0 0.000
16 Shear Zones 15.00 0 0 0 0.000 0 0.000
Subtotal 40,571 29,615 12,743 0.393 355 0.365
-1 Undefined 78,090 1,182 0.368 0 0.000
Outside Elevation 622 0 0.000 0 0.000
Total Assays 119,283 13,925 0.391 355 0.365

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Composite statistics around ore zone:
101 Avg. 102 Avg.
Rock Code Rock Type Comps Grade Comps Grade
0 Unknown 0 0.000 0 0.000
1 Gila Conglomerate 21 0.240 1 0.130
2 Cloudburst 0 0.000 0 0.000
3 Rhyolite 273 0.204 0 0.000
4 Andesite 21 0.486 0 0.000
5 Diabase 20 0.523 0 0.000
6 San Manuel Porphyry 6,028 0.392 227 0.346
7 Quartz Monzonite 2,622 0.458 0 0.000
8 Quartz Monzonite Breccia 25 0.251 0 0.000
9 Unnamed Faults 0 0.000 0 0.000
10 San Manuel Fault 0 0.000 0 0.000
11 Dacite Porphyry 19 0.664 0 0.000
12 Aplite 15 0.344 0 0.000
13 Syenite 0 0.000 0 0.000
14 Latite Porphyry 0 0.000 0 0.000
15 Fault Zones 171 0.417 0 0.000
16 Shear Zones 0 0.000 0 0.000
Subtotal 9,215 0.406 228 0.345
-1 Undefined 797 0.406 0 0.000
Total Comps 10,012 0.406 228 0.345
Model Statistics
International zone solid has a volume of 5,225,945 cubic yards.
Below topography:
ZONE = 1, ROCK = 1 259 Blocks
ZONE = 1, ROCK = 6 16,444 Blocks
ZONE = 1, ROCK = 7 6,769 Blocks
ZONE = 1 23,472 Blocks
ZONE = 2, ROCK = 6 1,470 Blocks
TOTAL 24,942 Blocks

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8.7 Geostatistics
Variograms
Variograms were tested for rock type 6 and 7. For each one different windowing angles were
used. A wide window was first used to approximate the primary directions then successive
narrowing was done. Overall a small amount of anisotropy could be found for either rock type.
San Manuel Porphyry
Numerous variograms were created to get a feel for the anisotropy. The final set of variograms
were run with windowing angles of 7.5 and lags of 100 or 200 feet. The expected direction
would be along one of the major fault axis. The greatest range was generated when an azimuth
of 150 to 165 was used. A contour plot of the variances indicates a trend of 145. The best
azimuth was chosen as 150. Variograms run at 175 with changing dip found that the best
range was achieved with a dip of -75. The range at this plunge or primary direction is 300 feet.
The nugget and sill were determined from the 3D global variogram to represent the average for
the whole system. These are close to the ones found in the plunge and is in between other
variograms with similar plunges. The nugget is 0.015 and the sill is 0.045.
The minor axis was found by generating variograms perpendicular to the plunge. This showed
that the secondary axis should follow the 150-azimuth plane and the tertiary axis should follow
the 060 azimuth plane. The DIPE variable needs to be set to -90. The respective ranges are
250 and 200 feet respectively.
Quartz Monzonite
Numerous variograms were created to get a feel for the anisotropy. The final set of variograms
were run with windowing angles of 7.5° and lags of 100 feet. A contour plot of the variances
showed a trend along an azimuth of 130°. Variograms also indicated the longest range along this
azimuth. The best dip was found to be -90°. The DIPE variable should be set to 0. Ranges are
275, 225, and 175 feet. The nugget is 0.039 and the sill is 0.082.
International Zone
Variograms showed a highly irregular pattern in all directions due to the discontinuity of the ore
zone. No best direction could be found. Variogram modeling based on 3d global curve. A
spherical method will be used with a nugget of 0.017, sill of 0.077, and range of 150 feet.

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8.8 Interpolation
International Zone
For interpolating the International Zone the same criteria were used as above with respect to the
International Zone. The list of drillholes used can be found in the appendix. In summary the San
Manuel Porphyry has 353 assays averaging 0.367% ASCu and no other rock types are present.
Their are 227 composites of San Manuel Porphyry averaging 0.346% ASCu.
Main Oxide Zone
For interpolation purposes, the drillhole assays were hand picked to reflect the original grade of
the orebody. Assays needed to be reliable for their grade and their location. This screened out a
number of drillholes. The list of drillholes used can be found in the appendix. In summary the
San Manuel Porphyry has 8,277 assays averaging 0.377% ASCu and the Quartz Monzonite has
3,799 assays averaging 0.440% ASCu.
The composites being used for interpolation include 6,028 composites averaging 0.392% ASCu
of San Manuel Porphyry and 2,622 composites averaging 0.458% ASCu of Quartz Monzonite.
These two rock types comprise 96% of the rock types within the modeling area.
Interpolation
For each of the three zones the Kriging runs were done in three stages. The first run has broad
enough parameters to fill in every block in the zone. The second run has more restrictions than
the first and fills approximately 90% of the blocks. The third run has the parameters determined
from variogram analysis and fills approximately 80% of the blocks. Only 1% of the blocks were
filled manually and these blocks are relatively unimportant.
San Manuel Formation - 259 Blocks
Same run as San Manuel Porphyry.
60 blocks filled at 0.239% ASCu, 0.290% TCu.
Rest filled with average.
San Manuel Porphyry - 16,444 Blocks
Nugget = 0.015
Sill = 0.030
Azm = 150 Range1 = 300
Dip = -75 Range2 = 250
Dipe = -90 Range3 = 200
16,444 blocks filled at 0.393% ASCu, 0.554% TCu.

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Quartz Monzonite - 6,769 Blocks
Nugget = 0.039
Sill = 0.043
Azm = 130 Range1 = 275
Dip = -90 Range2 = 225
Dipe = 0 Range3 = 175
6,683 blocks filled at 0.435% ASCu, 0.791% TCu.
Rest filled with average.
International Zone - 1,470 Blocks
Nugget = 0.017
Sill = 0.060
Range1 = 150
1,470 blocks filled at 0.377% ASCu, 0.560% TCu.
8.9 Minesight
The following is a list of Minesight features in the model as of June 11, 1997.
8.9.1 Drillholes
Create-Attach MEDS files : SMOX10.DAT, SMOX11.NEW, SMOX12.NEW
SET - AllWells
Members: Screens
Screens contains the wells showing the screened interval.
SET - Assays
Members: Cu, ASCu
Cu cutoffs at 0.2, 0.4, 0.6, 0.8, 1.0, 1.2, 1.4, 1.6, 1.8, 2.0
ASCu cutoffs at 0.2, 0.5, 1.0
SET - Rock
Members: Geology
Geology cutoffs at 1, 3, 6, 7, 8, 9, 11, 15
1 lumps together Gila Conglomerate and Cloudburst both as overburden.
3 lumps together Rhyolite, Andesite, and Diabase as dikes.

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6 shows the San Manuel Porphyry
7 shows the Quartz Monzonite (Oracle Granite)
8 shows the Quartz Monzonite Breccia
9 lumps together all faults
11 lumps together Dacite Porphyry, Aplite, Syenite, and Latite Porphyry as dikes.
15 lumps together all fault and shear zones.
SET - Screens
Members: Scr
Scr shows the screens in the automatic valve test area.
8.9.2 Grids
SET - Contours
Members: -1800 - 3600 (200’)
Correspond to cross-sections
SET - E-W
Members: 8,000 - 12,500 (50’)
SET - FluidLevel
Members: 1,930 - 2,780 (10’)
SET - Horizontal
Members: 150 - 3,450 (60’)
SET - HorOffset
Members: 180 - 3,420 (60’)
SET - International
Members: 2,600 - 3,600 (200’)
SET - Longitudinals
Members: 1-21
Correspond to longitudinal sections
SET - N-S
Members: 9,000 - 15,000 (50’)
8.9.3 3D Geometry

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SET - FluidLevel
Members: Level, Level2
Level has the fluid level surface with minimum data points.
Level2 has a more detailed and smoothed fluid level surface.
SET - Levels
Members: Numerous underground panels, drifts, lines and shafts.
SET - Surface
Members: TOPOG
Import Medsystem model surface.
SET - Ore
Members: Zone (Solid of orebody)
Orebody closed with 200’ dissipation to a point.
Total volume calculated to be 144,409,164 cubic yards.
SET - Gila
Members: 301, 301solid
301 is the Gila contact.
301solid is the solid of the Gila
SET - OreBelowSurface
Members: Slice
Slice shows a solid of the orebody below topography.
SET - QM
Members: 307, 307solid, 301307
307 is the Quartz Monzonite contact
307solid is the solid of the Quartz Monzonite
301307 is the QM-Gila contact
Update Model - using this solid the file 15 item zone was set to 1 if any part of the block falls
within the solid.
SET - Rock
Members: 301306
The contact between San Manuel Formation and San Manuel Porphyry

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SET - International
Members: 102 are the International contours and solid.

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8.9.4 Models
Attach Medsystem model.
Create a model view.
SET - SMOX15
Members: TOPO, ASCu, Zone
TOPO is the % block above topography
ASCu is the ASCu grade
Zone is for main and international zones
8.9.5 VBM
SET - 101Offset
Members: 101
101 is the ore contours at the HorOffset Grid.
SET - 102Plan
Members: 102
102 is the ore contours of the international zone.
SET - 102PlanOffset
Members: 102
102 is the international zone contours at the HorOffset Grid.
SET - FluidLevel
Members: 911
911 is the contours of the fluid level surface.
SET - Longitudinals
Members: 101
101 is the longitudinal ore contours of the main orebody.
SET - LongInt
Members: 102
102 is the longitudinal ore contours of the International Zone.
SET - Contours

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Members: all vbm features on cross-sections.
SET - Plan
Members: 101
With the solid selected, slice view was used with the Horizontal Grid Set to generate the plan
contours. 101 is the plan contours generated by slicing the 3D Geometry set-ore member-zone.
101 was exported to ASCII into the file 101.PLN which will be used to load to SMOX25.PLN.
SET - International
Members: 102
102 is the International Zone contours.
8.10 Previous Modeling
8.10.1 Early Modeling
The first computer model of the San Manuel oxide resource was developed for the
original construction AFE in 1984 using Newmont software. A modified drillhole database was
created using the churn holes adjusted vertically for block cave mining and the early reverse
circulation drilling. The assays were composited on a 30-foot bench height. The acid soluble
copper was modeled utilizing an inverse distance cubed method.
The first Medsystem model was created in 1991. This model was used to optimize and
design the final pit. The block model was updated in 1992 using the Medsystem EMPC
software. The model uses a block size of 50 foot by 50 foot with a 30-foot bench height
extending down to roughly the 2615 underground level.
The modeling process in 1992 was much more detailed than the models generated utilizing
the Newmont software. The raw data was composited on 30-foot lengths. The composites were
then plotted on geologic sections at 200-foot intervals across the ore body, increased to 400-foot
intervals on the fringe of the deposit. These sections are roughly S30E looking in a northeasterly
direction. The current surface topography and underground draw are also plotted on the section.
The open pit uses a set of prisms to record slope movement. The data has shown surface
movement and subsidence due-to underground draw of up to nine feet per month on the
southeast side of the pit. This is a result of panel draw of around 50 feet per month. Figure 3
shows the final pit with an outline of the underground panels.
The drill holes affected by the underground draw are noted and the appropriate
adjustments are determined. The conglomerate/rock contact as noted in recent drilling or from
actual blast hole data was used as much as possible to help guide the adjustments. These
adjustments to the original drilling account for up to an estimated maximum 1,786 feet of sulfide

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draw. A modified drillhole file was created from this data. This drillhole file contains 130,198
feet of assays averaging 0.342% soluble copper excluding conglomerate and sulfide drilling.
The deposit was then manually zoned in section and subsequently in plan for grade
zones. The identified faults, rock type contacts, and structural zones were used as appropriate to
help define grade zone boundaries.
The manual grade zoning process is a major time consuming task. The zoning from a
previous modeling effort is affected by the normal changes resulting from additional drilling or a
re-interpolation based on field mapping. However, the major effect on the San Manuel oxide
resource is a result of the underground draw/subsidence since the last model. An attempt was
made to reduce the task through the use of solid modeling in section. The solid modeling
process was unsuccessful, due to software and documentation problems, and manual zoning for
the 91 benches in plan was required.
Distinct total copper grade contour zones were evident on some of the sections, however,
they were not apparent on other sections. The grade contour zones could not be reconciled
between sections and they were combined in plan. The discontinuity of the grade zones within
the post subsidence oxide zone was confirmed by contoured blast hole maps throughout the
deposit. No attempt was made to determine if this was true of the original deposit or strictly a
result of mixing and/or displacement due to subsidence. A variogram distance of 300 feet was
used as a search limit for the composites. Short composites, those less than 15 feet, were not
used in the interpolation. The length of the composite was used as a factor for the interpolation.
An octant search was used with a limit of two composites per octant. A minimum of two
composites was required for the interpolation.
The rock type was not zoned throughout the deposit. The decision not to zone the rock
type and the alteration zones was based on the difficulty of determining the continuity of the
geology after subsidence. A second factor in the decision was the time and effort to update the
zoning based on ongoing underground draw. The polygonal method was chosen to assign the
model a rock type and a alteration zone.
The tonnage factor in the first Medsystem model was fixed based on the mineral zone.
This was later changed to a tonnage factor based on the relative effect of subsidence on the area.
These tonnage factors were already in effect for the planning models on the Harris System.
The tonnage factor was set to 13.5 cubic feet per ton for intact rock on the north west side
in the red hill and four-shaft area. The factor was increased to the south east up to a maximum of
17 cubic feet per ton for the rubblized material approximately over the 2615 level. The average
tonnage factor is approximately 15 cubic feet or about 5,000 tons per block.
8.10.2 Fault Zone Model
The fault zone model was constructed as a culmination of the hydrogeologic
interpretation of the San Manuel mineralized resource. This geologic interpretation was essential

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to the detailed design of the current in-situ leaching program and to the understanding of fluid
flow paths in relation to their potential effects on the adjacent open pit and block rave mines.
This interpretation also afforded the opportunity to interpret and define the different structural,
mineralogical, and textural features of the oxidized zone of the Sari Manuel deposit. The first
step in the design of the fault zone model is the development of a detailed three dimensional
hydrogeologic interpretation of the rock mass in question by utilizing all available hydrogeologic
information including pit wall mapping, historical churn and reverse circulation drill logs,
previous sectional interpretations of the oxide zone, logging of drillhole cuttings from current
resource development drilling, logging of in-situ production and injection well drill hole cuttings,
hydrogeologic interpretations of in-situ drilled benches, interference pump testing of production
wells, and review of the composite geologic models created during previous geologic
investigations.
Once a structural (fault) interpretation is refined and its validity is positively tested within
the context of the information available at the time of the interpretation, fault zones are defined,
These fault zones are compiled and grouped by characterizing rock type, mineralogical, rock
mass properties, and geostatistical characteristics to be able to assign similar fault-bounded
blocks to one another to create a fault zone. This fault zone, which is usually a composite of
several fault blocks, is projected onto sections and level maps and tested for continuity and
accuracy. Once the zonation is considered acceptable, the fault zones are projected onto block
model level intervals for digitizer input to merge with the grade block model.
8.10.3 1995 Model
The creation of the 1995 Oxide Medsystem Model was built from drill hole data files
from the previous model. The previous model was completed in 1991 with little or no updating
taking place during the last four years. Since the completion of the last model we have acquired
new drill hole information. Fault delineation was left incomplete in the old model. Fault
structures have been better defined now. Better constraints and better interpolation techniques
are used on the new model.
The first step in building the model was gathering all the drill hole information. Many
files containing drill hole information were located including a set of modified and unmodified
data. The modified data reflects the effect of caving. Additionally, new drill hole data has been
collected during the last four years. A drill hole file was created from unmodified data from a
combination of; an ASCII output of the old model assay file, other DAT201 files found, new
drillhole information. This file contains all drillhole data compiled to March 1995 up to and
including the ARM series hole number 166. For the most part the unmodified data files were
used except where known and measurable caving has taken place.
Initialization of the Medsystem files was done. Several maps were found containing fault
structures. This included a set of plans for each bench elevation. A solid was built from the set
of plans and then sliced by Cross-Section. Drillhole cross-sections were plotted with this fault
information and from the pit contours. These maps were overlain with all the structural maps
found and combined into one master set of maps. These were then redigitized into OXID25.FAL
which contains all fault information and ore contours on Cross-Section. Ore contours are