Metminco Limited Project: Los Calatos

Los Calatos

Background

The Los Calatos Project is located in southern Peru, in the Moquegua district, geographically approximately 70km south-east of the regional city of Arequipa. It occurs in dry desert topography near the coast, at an elevation of approximately 2,900 metres.

Los Calatos is well positioned for potential development. It occurs near established infrastructure in an existing important mining region. Southern Copper Corporation owns and operates two large open pit copper mines to the south east (Cuajone and Toquepala) and also large copper smelting and refining operations at the port of Ilo, approximately 160 km (by road) to the southwest. Freeport McMoran owns (53.6%) and operates the large Cerro Verde copper mine to the northwest, near Arequipa.

At Los Calatos Hampton holds tenements totalling 214 km2:

• 186 km2 are held through a wholly owned subsidiary, Hampton Peru,

• 28 km2 are held through North Hill which will become a wholly owned subsidiary of Metminco following completion of the North Hill Purchase Agreement. These tenements are the location of all the exploration drilling to date.

Location

The Los Calatos project lies within the major Paleocene / early Eocene belt of copper-molybdenum porphyry deposits (mineralization approximately 55 million years old) located in the far south Peru and generally near the coast:

· The Cuajone and Toquepala deposits to the south east (both large existing mines, owned by Southern Copper Corporation, which also owns smelting and refining operations near the port of nearby Ilo),

· the Quellaveco deposit (now seeking permitting for development, owned 81.6% by Anglo American) also southeast, and

· Cerro Verde to the northwest (large existing mine, owned 53.6% by Freeport McMoran), close to and SW of Arequipa.

This major northwest-southeast structural trend includes the major Incapquio Fault.

Location of Los Calatos within Paleocene / early Eocene belt if copper-molybdenum porphyry deposit in far south Peru

Tenements

Tenements at Los Calatos, total 214km2 (including applications), showing:

· Outline of current drilled area (area approx. 1km x 0.5km)

· Eight (8) clustered targets, over an area of 68km2

· Mineralisation trend is well covered by Hampton licences

Geology

Hampton’s management continues to develop an overall understanding of the most likely geological model applying to the main Los Calatos area. The model, illustrated in two figures below, suggest the presence of a not untypical multi-phase porphyry system. The main Los Calatos geology and mineralising events can be described as follows;

1. The earliest porphyry was regional in extent and was not mineralised.

2. The second phase of porphyry injection ¨stoped out¨ most of the original porphyry and was accompanied by a low grade copper mineralising event (0.1 to 0.3% Cu and less than 100ppm Mo).

3. The third phase of porphyry injection resulted in significant brecciation of the earlier porphyry and was accompanied by high grade copper and molybdenum mineralisation (>0.4% Cu and >200ppm Mo)

4. The fourth phase of porphyry injection was accompanied by brecciation of previous phases and introduced a molybdenum mineralising phase with or without copper present. Upgrading of the phase 3 event with pervasive molybdenum veining may have occurred.

5. The fifth and final phase is seen as porphyry dykes cutting through the entire system. The dykes are generally vertical, limited in width and are generally barren.

Generalised schematic cross section (north-south), current drilled area, Los Calatos.

Schematic regional cross section (NW-SE), Los Calatos, including current drilled area

Mineral Resources

Following the phase 2 drilling program the Los Calatos Project now carries JORC compliant mineral resources as follows:

Mineral Resource Statement for the Los Calatos Project Peru, June 2010

Resource Classification	Tonnage, 000 tonnes	Copper%	Molybdenum%
Indicated	111,264	0.39	0.038
Inferred	814,970	0.37	0.026

Notes: Refer to the Mineral Resource Statement by C. Sinclair (Appendix 1 click here). Cut-off grade of 0.2% Cu

Following phase 1 drilling, Hampton reported in June 2009 total resources for the Los Calatos Project of 262 million tonnes (at a cut-off grade of 0.2% Cu), subdivided into:

· Indicated Resources of 69.2 million tonnes at 0.44% Cu and 0.051% Mo, and

· Inferred Resources of 192.4 million tonnes at 0.42% Cu and 0.038% Mo.

Following the mid 2010 resources revision total resources at a range of cut-offs are as follows:

Cut-off Grade%	Indicated Resources	Indicated Resources	Indicated Resources	Inferred Resources	Inferred Resources	Inferred Resources
	T ('000)	Cu(%)	Mo(%)	T ('000)	Cu (%)	Mo(%)
0.40	36,795	0.59	0.062	296,699	0.55	0.034
0.35	49,036	0.54	0.055	365,562	0.52	0.034
0.30	64,108	0.49	0.049	463,465	0.47	0.032
0.25	86,325	0.43	0.044	594,390	0.43	0.030
0.20	111,264	0.39	0.038	814,970	0.37	0.026
0.15	136,269	0.35	0.034	1,049,445	0.33	0.022

Total contained copper equivalent metal (CuEq), and average grade (%CuEq), for a range of cut-offs are as follows:

Cut-off Grade%	Total Tonnes('000)	Contained CuEq Metal('000) t	Average grade CuEq (%)
0.40	333,674	2,470	0.74
0.35	414,598	2,920	0.71
0.30	527,573	3,400	0.64
0.25	680,715	4,010	0.59
0.20	926,234	4,720	0.51
0.15	1,185,714	5,330	0.45

Note: Copper equivalence assumes a ratio of Cu/Mo prices of 5.

At the 0.2% Cu cutoff grade, the drilling to date defines a mineralized porphyry body with a drill tested strike length of 900m (previously 600m), a maximum drill tested width of 500m (previously 300m), and a drill tested vertical depth of 1100m (previously 800m). Hence the considerable increase in the previous resource estimate.

The cutoff grade of 0.2% Cu is broadly consistent with a development concept of large scale open pit mining.

Mineralization drilled to date occurs within a major NW-SE oriented alteration zone over 10 km long, outlined by a systematic and ongoing surface exploration program.

Drilling

Following completion of the phase 2 drilling program at Los Calatos, Hampton announced a major resources upgrade to 926 million tones, an increase of approximately 350% compared to the previously released June 2009 resources estimation, using a cut off grade of 0.2% Cu.

The phase 2 drilling campaign consisted of 10 core holes totaling 9,516m from November 2009 to March 2010, supplementing 13 cored holes previously drilled by Hampton (phase 1, totaling 6,387m), and 39 cored and reverse circulation holes drilled previouosly by Phelps Dodge and Barrick. Total metres drilled on the Los Calatos Project to June 2010 are 21,261m, of which 20,393 was considered in the revised June 2010 resource estimate.

Surface mapping & sampling

Exploration of the Los Calatos project is at an early stage.

At Los Calatos Hampton continues to undertake a comprehensive surface geological mapping and sampling program, focused on a major northwest-southeast trending zone of alteration that includes the mineralized zone being drilled and which parallels the regional structural trend.

The tenements figure above shows the Los Calatos tenements held by Hampton and also surface alteration and geochemical anomalies identified to date.

It shows seven zones of prospective exploration interest, in addition to the area of current drilling. These areas will be followed up in due course, seeking to define additional drilling targets.

Note that volcanic ash from geologically recent eruptions is obscuring underlying geology across significant tracts of the tenements.

Metallurgy

Recent preliminary flotation testing on composite samples from drill core returned favourable results

Planned work program

Hampton is currently planning to commence a 50,000 metre phase 3 drilling program at Los Calatos, seeking to extend current resources, and to drill test other nearby exploration targets.

Management & technical team

Metminco and Hampton have an experienced board and senior management team. They have the technical, financial and commercial skills necessary to explore Hampton’s properties, and to develop and commission mines.

Metminco recently strengthened its team with the appointment to the board of Mr. Tim Read and Mr. Francisco Vergara Irarrazaval. Mr. Read is based in the United Kingdom and was formerly an investment banker and corporate executive and has over forty years experience in the mining and metals sector. Mr. Vergara is senior partner of a law firm in Santiago, Chile and has extensive experience in the resources sector in Chile and in other Latin American countries.

Regional setting of the Los Calatos Project

Porphyry deposits typically occur in clusters or belts.

Hampton’s Los Calatos tenement holdings are located in the Moquegua district of Southern Peru, and within a major Paleocene / early Eocene belt of copper-molybdenum porphyry deposits (mineralization approximately 55 million years old):

· The Cuajone and Toquepala deposits to the south east, both large existing mines, owned by Southern Copper Corporation (SCC, a subsidiary of Grupo Mexico), which also owns smelting and refining operations located at nearby port of Ilo.

· The Quellaveco deposit, now seeking permitting for development, owned 81.9% by Anglo American) also southeast, and

· The Cerro Verde deposit to the northwest, near Arequipa, a large existing mine operated and owned (53.6%) by Freeport McMoran.

The deposits occur along a major northwest-southeast structural trend associated with the major Incapquio Fault.

Cuajone and Toquepala mines:

Production started at Toquepala in 1960 and at Cuajone in 1976. At end 2007 the Toquepala and Cuajone pits were approximately 700 metres and 800 metres deep, respectively. Under the then mine planning configurations both pits will reach ultimate depths of approximately 1,200 metres (source: SCC 10-K report for 2007).

Reserves at SCC’s mines at end calendar 2009 (assuming metal prices of US$2.90 per lb for Cu and US$23.4 per lb for Mo) were:

· Toquepala 3734 million tons at 0.442% Cu and 0.022% Mo, based on a cutoff grade of 0.177% Cu (Strip ratio 4.37 to 1).

· Cuajone 2765 million tons at 0.517% Cu and 0.017% Mo, based on a cutoff grade of 0.152% Cu (Strip ratio 2.61 to 1).

Assuming metal prices of US$1.80 per lb Cu and US$11 per lb Mo then reserves at the respective mines were:

· Toquepala 2212 million tons at 0.48% Cu and 0.018% Mo, based on a cutoff grade of 0.244% Cu (Strip ratio 5.42 to 1).

· Cuajone 1914 million tons at 0.51% Cu and 0.018% Mo, based on a cutoff grade of 0.203% Cu (Strip ratio 2.38 to 1).

Mine production by Southern Copper Corporation (SCC) at Toquepala in calendar 2009 was 127,100 tons of copper in concentrate and 5,300 tons molybdenum in concentrate, and at Cuajone 188,950 tons of copper in concentrate and 3,600 tons molybdenum in concentrate. In addition SCC produced 38,000 tons of cathode copper from combined leach copper feed from both mines (source of data: public releases by SCC).

Cerro Verde mine:

Production started in 1976 from SX-EW leach operations. In late 2006 Cerro Verde started producing copper in concentrate from treatment of primary copper-molybdenum ores.

Proven and Probable Reserves at December 2009 were 2809m tonnes @ 0.40% Cu, 150ppm Mo (assumed metal prices assumed: copper US$1.60 per lb, and Mo US$8.0 per lb, cutoff grade 0.20% Cu).

Mine production at Cerro Verde in calendar 2009 was 662m lb copper (300,000 tonnes) and 2m lb of molybdenum (900 tonnes). (Source of data: public releases by Freeport McMoran).