CUP

[lcde]

is it too soon to predict a cup with handle continuation for the whole play from Dec to Feb?

Volume looks right.

[Lucas Scott]

Sold the gap-up on my second position. I'm out for now.

[Terliso]

CUP back on my watchlist 

Volume -- Currently over 1 million traded above average volume

[422fwhp]

You and I are on the same page! 

http://biz.yahoo.com/prnews/060306/to200.html?.v=24

...long....

Peru Copper announces new copper reserve estimate at its Toromocho Project
Monday March 6, 8:00 am ET


VANCOUVER, March 6 /PRNewswire-FirstCall/ - Peru Copper Inc. (TSX:PCR, PCR.WT / AMEX:CUP, CUP.WS / BVL:CUP) ("Peru Copper" or the "Company") announced today that a new independent mineral reserve and resource estimate for its Toromocho Project has been prepared by Independent Mining Consultants Inc. ("IMC").


The Company's chairman, J. David Lowell, said "We are pleased to announce that 1.261 billion tonnes of the measured and indicated resources we previously announced in October 2005 is now classified as proven and probable reserves at our Toromocho project. An additional 715 million tonnes remain as measured and indicated resources. The resulting total reserve and resource estimate of 1.976 billion tonnes is an increase of 142 million tonnes over the previously announced measured and indicated resource of 1.834 billion tonnes. The IMC study also reports 151 million tonnes of inferred mineralized material. Including the inferred material, Toromocho is now estimated to have 22 billion pounds of contained copper and over 840 million pounds of molybdenum."

The new estimate from IMC is based on drilling at Toromocho through October 2005 as well as the results from a pre-feasibility study completed by SNC Lavalin and announced by the Company on February 9, 2006.

"Given its size, excellent economics, low stripping ratio, long life, infrastructure, and location in Peru, Toromocho is clearly one of the very best undeveloped copper projects in the world" continued Mr. Lowell.

Within the new combined reserve and resource is a central core of 1.059 billion tonnes at a grade of 0.60% copper and 0.88% copper equivalent, using a copper equivalent cutoff of 0.60%. The molybdenum grade is 0.023% and there are 8.7 grams of silver per tonne.

Additional mineral reserve and resource material totals 917 million tonnes at 0.32% copper and 0.46% copper equivalent, based on a copper cut-off ranging from 0.27% to 0.59% copper.

The Company's pre-feasibility study projects an estimated average annual production rate of over 600 million pounds of copper (272,788 tonnes) and almost 11.9 million pounds of molybdenum (5,387 tonnes) at a cash cost of $0.514 cents per pound for 21 years. The life-of-mine stripping ratio is estimated to be 0.57 tonnes of waste to 1.0 tonne of mined resource material. The report also estimates a Net Present Value of US$814 million from commencement of construction and an after-tax Internal Rate of Return of 16.0% using a base copper price of $1.10 copper. Recent metal prices are considerably higher than those used in the pre-feasibility study.

Mr. Lowell said "we are confident that as we continue the development of the Toromocho project, more of the resource tonnes will be reclassified as reserves and the mine life will be extended significantly."

The updated IMC mineral reserve and resource estimate for Toromocho is based on 88,000 meters of drilling including work by Peru Copper through October, 2005 combined with 42,000 meters of prior drilling by Cerro de Pasco and Centromin. IMC has confirmed that the data from both drill programs are consistent and can be commingled for determination of mineral reserves and resources.


                                   Table 1
               Toromocho Reserves and Resources, March 6, 2006
     Equivalent Copper Based on $1.00/lb Cu,  $10.00/lb Mo,  $5.58/oz Ag

    Mineral Reserves (1)
    --------------------
                                                            (millions)
                                              Equi-   -----------------------
                Million               Silver  valent     Cu     Moly   Silver
                 Tonnes  Cu %  Moly %  gm/t   Copper%    Lbs.   Lbs.     Oz.
                -------  ----  ------  ----   -------  -------  -----  ------
    Proven       430.8   0.58   0.021  6.61    0.75    5,508.6  199.4    91.5
    Probable     829.9   0.50   0.016  7.45    0.64    9,148.1  292.7   198.7
                 -----   ----   -----  ----    ----    -------  -----  ------

    Proven+
     Probable  1,260.7   0.53   0.018  7.16    0.68   14,656.7  492.1  290.2


    Mineral Resources in Addition to Reserves (2)
    ---------------------------------------------
                                                            (millions)
                                              Equi-   -----------------------
                Million               Silver  valent     Cu     Moly   Silver
                 Tonnes  Cu %  Moly %  gm/t   Copper%    Lbs.   Lbs.     Oz.
                -------  ----  ------  ----   -------  -------  -----  ------
    Measured      98.2   0.42   0.020  6.03    0.96      909.3   43.3    19.0
    Indicated    617.1   0.36   0.020  6.63    0.66     4897.7  272.1   131.5
                 -----   ----   -----  ----    ----    -------  -----  ------

    Measured+
     Indicated   715.3   0.37   0.020  6.55    0.70    5,807.0  315.4   150.5


    Inferred Mineralized Material (2)
    ---------------------------------
                                                            (millions)
                                              Equi-   -----------------------
                Million               Silver  valent     Cu     Moly   Silver
                 Tonnes  Cu %  Moly %  gm/t   Copper%    Lbs.   Lbs.     Oz.
                -------  ----  ------  ----   -------  -------  -----  ------
    Total
     Inferred    151.1   0.46   0.010  7.80    0.61    1,532.3   33.3    37.9


    (1) Cutoff Grades are between 0.32 and 0.52% Equivalent Cu for Mill
        Reserves & between 0.08 and 0.19% Soluble Cu for Leach Reserves
    (2) 0.27% Equivalent Cu Cutoff

The core recovery for the 88,000 meters drilled by the Company through October averages 92%, compared to only 69% core recovery for 42,000 meters of old drilling. No upgrade factor has been applied to the old drilling results and the Company is of the opinion that enhanced core recovery will result in a higher percentage of soluble chalcocite and higher overall copper grade for the deposit.

IMC utilized a floating cone algorithm to establish the mineral resource with "reasonable prospect for eventual economic extraction". To be conservative, the floating cone pit was based on metal prices of $0.90/lb copper, $6.00/lb molybdenum, and $5.50/oz silver with economic benefit applied to measured and indicated category mineralization only. Once that pit geometry was established, copper equivalent calculations within that pit were based on metal prices of $1.00/lb copper, $10.00/lb molybdenum, and $5.58/oz silver along with supportable process recoveries and refining costs.

The total mineral reserves plus mineral resources of 1.976 billion tonnes are based on a cutoff grade of 0.27% equivalent copper cut-off (as shown in the tables above). Contained within that mineral resource is a central core of the deposit totaling 1.059 million tonnes based on a higher 0.60% copper equivalent cut-off.

Peru Copper is involved in the acquisition and exploration of potentially mineable deposits of copper in Peru. On June 11, 2003, Peru Copper entered into the Toromocho Option Agreement with Empresa Minera del Centro del Peru S.A. ("Centromin"), a Peruvian state-owned mining company, whereby Centromin granted the Company the option to acquire its interest in the mining concessions and related assets of the Toromocho Project.

Mr. John Marek, Professional Engineer, of IMC is the independent "qualified person", within the meaning of National Instrument 43-101, that prepared the updated mineral resource estimate and he has reviewed and approved the content of this press release. For sampling and assaying information please refer to the IMC Technical Report dated August 25th, 2004 which is available on SEDAR (www.sedar.com).

For further information please contact Patrick De Witt, Director of Investor Relations at (604) 689-0234 or [email protected]

[Melf Elf]

Jody and Alister,

On Friday, CUP validated the up trendline coming off theJanuary 17 low, prior to that nice Symmetrical Triangle breakout. 

The trendline came in on Friday at 3.16; the low was 3.15, within one penny, then the stock bounced higher.

Yesterday's give back of all of the gains from the open (open and close both were 3.22) can be attributed to weakness in the metals, and to the market weakness in general, but I wouldn't want to see CUP close below that up trendline, and especially wouldn't want to see it take out Friday's 3.15 low.  That likely would indicate some more downside.

The up trendline comes in today, March 7, at 3.20.  It rises two cents per day. 

Good luck, Jody, and Alister, if you play it.

[422fwhp]

I'm not currently in it...just watching closely 

Thanks for your input/charts, I truly appreciate it.

I noticed the touch of the 50(MA)...tomorrow could provide for a nice BWC...or a big red one

laterz...Jody

[Melf Elf]

I'm not currently in it...just watching closely 

Jody,

Glad that you're not in it. 

I wouldn't want to see CUP close below that up trendline, and especially wouldn't want to see it take out Friday's 3.15 low. That likely would indicate some more downside.

The up trendline comes in today, March 7, at 3.20. It rises two cents per day.

CUP broke that validated up trendline yesterday and is getting spanked today for doing it.  It's down 10% from the break.

[Terliso]

Thanks Melf Elf for the advice ... I also did not buy CUP, just on my watchlist (applaud)

by the way IVAN getting ugly it touched the trendline today ..could you spare me some of ur analysis @ IVAN thread...  (thanks)

[nica33]

Maybe this is waking up?

[jorgegr]

CUP is going to move up a lot based on this PR:

Southern Copper in merger talks with four miners
Thu May 4, 2006 3:18 PM ET
LIMA, Peru, May 4 (Reuters) - Southern Copper Corp. (SPC.LM: Quote, Profile, Research)(PCU.N: Quote, Profile, Research), one of the world's top producers of the red metal, is in merger talks with four mining companies, including U.S. rival Phelps Dodge Corp. (PD.N: Quote, Profile, Research), and also aims to purchase Peru's promising Toromocho copper project, the company said on Thursday.

Southern Copper's Chief Executive Oscar Gonzalez told Reuters that the company is holding conversations with London-listed Rio Tinto (RIO.L: Quote, Profile, Research), Swiss-based Xstrata (XTA.L: Quote, Profile, Research) and Anglo American (AAL.L: Quote, Profile, Research), as well as Phelps Dodge, over the possibility of reducing the controlling share of its parent company Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research).

FACT BOX

SPC.LM (Southern Peru Copper Corp)
Last: $98.95
Change: +3.20
Up/Down: +3.34%
 

MayAugNovFeb
Quote
Full Chart
Company Profile
Analyst Research
News for SPC.LM
Southern Copper in merger talks with four miners 
UPDATE 3-SCC struggles with strike, plans new mines 
UPDATE 2-SCC struggles with strike, plans new mines 
Southern Copper last week in a conference call with analysts raised the prospect of a merger, a sell-off, or a dilution of Grupo Mexico's 75 percent stake, but said "nothing is imminent."

"We are seeking value for our shareholders, we are seeking bigger sales and profits. It may be that this is the way to achieve that," Gonzalez said on the sidelines of a gold conference in Lima, adding that the talks were not prompted by labor problems at its Mexican mines.

A month-long strike at Southern Copper's La Caridad mine in Mexico, close to the U.S border, has paralyzed production at the pit and has been declared illegal by the Mexican Labor Ministry. Thousands of miners are taking part in defense of ousted union boss Napoleon Gomez, who is accused of fraud.

Gonzalez said the company is investing whether it can cancel the collective contracts of unionized miners at the pit to try to end the strike.

Gonzalez said Southern Copper, which also operates the Cananea mine in Mexico and the Toquepala and Cuajone pits in Peru, aimed to buy and develop the huge Toromocho project in central Peru, either in a joint venture with its owner, Canada's Peru Copper Inc. (PCR.TO: Quote, Profile, Research), or on its own.

"We are doing the due diligence and revising the data on the site and we're waiting for Peru Copper to decide whether it will allow us to go ahead with this," he said.

Toromocho could be one of Peru's top copper mines from 2010 with production of around 300,000 tonnes of copper a year and a 33-year life.

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060504:MTFH01739_2006-05-04_19-18-15_B80182&symbol=SPC.LM&rpc=44

Actually AH quotation has increased significantly  as itwas underquoted anyway due to the current presidential election in Peru whereas Alan Garcia may be elected.

There is already  a lot of good TA on this board so due your dd andl good luck to all.
I got in some time ago at 2.80

BRgds

jorgegr

[jorgegr]

Confirmation of good news on CUP:

May 05, 2006 06:00 AM US Eastern Timezone
Zacks Bull and Bear of the Day Highlights: Southern Peru Copper, Overstock.com, Group 1 Automotive and Arkansas Best Corporation.
CHICAGO--(BUSINESS WIRE)--May 5, 2006--Zacks Equity Research highlights Southern Peru Copper (NYSE:PCU) as the Bull of the Day and Overstock.com (Nasdaq:OSTK) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Group 1 Automotive (NYSE:GPI) and Arkansas Best Corporation (Nasdaq:ABFS). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.


Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for Southern Peru Copper (NYSE:PCU). We have a positive outlook on Southern Peru's profit picture based on the favorable global demand for copper. Over the next couple quarters, we think the company is well positioned to expand production amidst higher ore grades at its mines. This, in conjunction with high copper prices, provides a favorable backdrop for revenue. Based on these positive fundamental factors, we continue to recommend the purchase of Southern Copper stock. We are using 2006 and 2007 estimates of $12.00 per share and $10.00 per share, respectively. The stock is attractively valued, at only 8.2X our 2006 estimate. Zacks' target price is 11.5X our 2007 estimate or $115 per share.  
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20060505005079&newsLang=en

Believe this one can qualify for long term investment
Perhaps our TA wizards can give us their opinion.

jorgegr

[Terliso]

Applaud for both of you Nica & Jorge for keeping up this one

[jorgegr]

THX  TERLISA  - let's get some green out of this one.

BRgds

jorgegr

[jorgegr]

Sorry,  just noticed you confirmed your gender now signing TERLISO

Wellcome to the boys club 

jorgegr

[Terliso]

Breakout for CUP new HIGH