About Quadra FNX

Our Company

Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. Quadra FNX produces copper and platinum group metals from its operating mines: the Robinson mine in Nevada, the Carlota mine Arizona, Franke mine in northern Chile, and the McCreedy West, Levack and Podolsky mines in Sudbury, Ontario. The company possesses several advanced development projects, including the Sierra Gorda copper-molybdenum project in Chile, the Morrison deposit in Sudbury, and the Malmbjerg molybdenum development project in Greenland.

Our intention is to grow our business by pursuing both internal and external growth opportunities. We have a strong combined history of making smart, entrepreneurial acquisitions and we will continue to explore opportunities. We will also advance our promising pipeline of development projects while supporting our operating mines. The combined skills and expertise of Quadra FNX people will be a central component of our future growth.

Our Assets

The Robinson Mine

The Robinson Mine is an open pit copper and gold mine located in eastern Nevada near the town of Ely. Quadra acquired the mine from BHP Billiton in 2004 and recommenced operations that year. The operation consists of an open pit mine and processing facility with the associated infrastucture. Approximately 160 million pounds of copper and 138 thousand ounces of gold were recovered from the processed ore in 2008. Based on current reserve estimates, the mine plan provides for mining activity until 2016, with processing of stock pile ores until 2017.

The Carlota Mine

The Carlota Mine is a heap leach - Solvent Extraction Electrowinning ("SX-EW") operation in the west end of the Miami-Globe mining district of east-central Arizona. Production of copper cathode at the Carlota Mine commenced in December 2008. The plant design has a capacity of 70 million pounds of copper cathode production per annum over its estimated 11 year mine life.

The Franke Mine

The Franke Mine is a heap leach - SX/EW operation in northern Chile. The Franke processing plant is designed with a nominal design capacity of 70 million pounds of copper cathode production per annum over its estimated current 8.6 year mine life. The Franke process facilities are complete and producing cathode copper under pre-start-up testing.

The Podolsky Mine

The Podolsky Mine began commercial production on January 1, 2008. Unlike the other Sudbury operations, the Podolsky Mine had no historic underground infrastructure, which necessitated sinking a 2,600 ft deep vertical production shaft, developing the underground headings, driving an access ramp and constructing all surface facilities. The Podolsky Mine is situated on the northeast rim of the Sudbury Basin and hosts the copper-nickel-precious metal Footwall 2000 Deposit.

The Levack Complex

The Levack Complex includes both the McCreedy West and Levack Mines, located on the Sudbury Basin's North Range. The two mine properties are contiguous and are joined underground by a 6,700 ft long tracked tramway on the 1600 level.
The McCreedy West Mine has the potential to produce from within the same underground infrastructure both copper-precious metal Footwall ore and nickel-copper Contact ore.

Production from the Levack Mine in 2009 was limited to mining approximately 39,000 tons of nickel-copper-precious metal ore from the LFD1 or the upper portion of the Morrison Deposit The ore in the LFD1 is transitional between the nickel-rich Contact ore and the copper-nickel-precious metal Footwall ore. Generally it contains equal amounts of nickel and copper, usually each in the 1.5-2.5% range and 1-3 grams per ton of precious metals.

The Sierra Gorda Project

The 100% owned Sierra Gorda Project is a development-stage copper project located in the Atacama Desert of Region II, northern Chile with an NI 43-101 compliant resource of 22.5 billion pounds of contained copper equivalent. Initial engineering studies indicate that Sierra Gorda is expected to produce an LOM average of 400+ MM lbs Cu-equivalent average per annum for a mine life of over 25 years. Quadra is now advancing the project towards a pre-feasibility/feasibility level study and pursuing partnership opportunities to fund its development.

The Morrison Deposit

The Morrison Deposit(formerly known as the "LFD") was discovered behind the Levack Mine in 2005 by the FNX exploration team. It is located close to the Levack Mine underground infrastructure and is currently being developed on two fronts. At the end of 2009, NI 43-101 measured and indicated mineral resources for the LFD stood at 1.35 million tons grading 8.66% copper, 1.75% nickel and 8.2 grams per ton platinum, palladium and gold.

The Malmbjerg Project

Quadra holds a 99% interest in the Malmbjerg molybdenum development project which is located on the east coast of Greenland. Initial engineering studies indicate that Malmbjerg is capable of producing 7,500 - 10,400 tonnes of molybdenum a year over a 15 - 20 year mine life. Malmbjerg is one of the highest grade open-pitable molybdenum deposits in the world, and now has the advantage of being fully permitted. With that in place, Quadra is now pursuing partnership opportunities to fund its development.

Our Business Strategy

Quadra FNX's strategic plan is based on growing to a production rate in excess of 500 million pounds of copper equivalent per year from diverse operations and with a pipeline of development projects in place for long term sustainability and growth. Our strategy is to expand our base metals production capabilities, to reduce the average cash costs across our projects,to maintain our profitability throughout the commodity price cycle and generate cash flow to fund attractive investment opportunities.

  • Increase Production and Diversify Operating Assets. We plan to reinvest cash flow generated from operations to fund our inventory of development projects and expand our operations. In addition, we plan to pursue acquisitions that will be value-enhancing and will grow our reserves and production base. Our acquisition strategy focuses on acquiring assets within our established core areas of expertise that are expected to create long-term value and are in poltically secure jurisdictions.

  • Reduce Cash Costs. We are focused on reducing our cash costs to maintain profitability throughout commodity price cycles.

  • Focus on Copper. We have considerable technical expertise and have achieved significant success in developing and operating base metal mines including copper and zinc projects. We plan to continue to focus on finding and developing long-life base metal assets that are expected to be profitable and provide us with an attractive return on capital.