Our exploration strategy is focused on the discovery of world-class copper deposits.

Our exploration strategy is focused on the discovery of world-class copper deposits and we have increased our exploration efforts to ensure that we develop and maintain a pipeline of future growth opportunities.

Over the last five years we have focused on areas surrounding our operations to maximize the value of our existing investments by extending the life of the mine or increasing mill output. At Çayeli and Pyhäsalmi, the exploration team has targeted volcanogenic massive sulphide (VMS) deposits within trucking distance of our mills. VMS deposits provide good growth opportunities in the vicinity of existing operations but tend to be smaller and have limited potential to become a large scale producer.

To expand on our strategy, we set an objective this year to look for exploration opportunities that have the potential of adding 100,000 tonnes of annual copper production to Inmet’s portfolio.

We have been gradually directing our activities into new areas where we believe the probability of achieving this growth objective is highest. This has meant revisiting both the type of copper deposit we look for, and the geographical areas we explore in. We believe that the discovery of copper-gold and copper-molybdenum porphyry, sediment-hosted copper, skarn and iron oxide copper gold (IOCG) deposits is the best way to achieve our growth objectives. We have ranked countries on the basis of geological potential, quality of existing database, political risk, infrastructure, and level of competition and selected Peru, Sweden, Finland, Mexico, northern Chile and the porphyry belts of Turkey for near term generative exploration programs. Quality opportunities in other jurisdictions will also be considered on a case-by-case basis. Here are some examples of our exploration projects:

• In Sweden, we continue to explore in the Bergslagen district which has demonstrated skarn and IOCG potential. 
• In the Lapland region of Finland, we are assessing a number of properties for the potential of hosting IOCG type and sedimentary-hosted copper deposits and expect to be drill-testing a number of geophysical targets within favourable geology. 
• In Mexico, we have acquired a number of properties with potential for porphyry copper deposits under pediment cover. Geophysical surveys will be carried out in 2008 to hopefully generate targets that will be drill tested later in the year. 
• In Peru, several properties have been acquired that cover large-scale polymetallic skarn mineralization, porphyry and sediment hosted copper mineralization. Geophysical surveys and drill testing is scheduled for 2008. 
• A number of properties in northern Chile have been acquired or are currently being negotiated that cover areas exhibiting IOCG-style deposit signatures. Geophysical surveys and possible drilling is planned for 2008. 
• An option agreement has been signed to explore the Grizzly copper-gold porphyry prospect in northern British Columbia.

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Canadian Institute of Mining, Metallurgy and Petroleum
the leading technical society of professionals in the Canadian minerals, metals, materials and energy industries