Baja Mining Corp. reported that its executive management visited the Boleo Project on October 30 and 31, 2015, and met with operations management of Minera y Metalúrgica del Boleo, S.A. P.I. de C.V. (MMB) to discuss progress at Boleo, including the process plant production ramp-up and both the underground and open pit mining. Copper shipment, Boleo production ramp-up: Baja has been advised by MMB that in late October 2015, Boleo shipped a further 2,750 tonnes of copper cathode and that MMB plant personnel have been working to address process and equipment issues, which have become apparent during the ramp-up of copper production.

The zinc-cobalt circuit is being commissioned and Baja management was informed that zinc sulphate production is now expected to commence in December 2015 and cobalt metal production in January 2016. MMB management reported that the ramp-up and operation of the Boleo plant was significantly disrupted by the access restrictions imposed by the former President of the Municipio of Mulegé at the Boleo site in September 2015. The newly elected President removed these restrictions as one of her first acts after taking office.

MMB management is working to increase copper extraction rates to design levels. The sulphur dioxide (SO2) circuit is being prepared for start-up and is scheduled to come online on November 11, 2015, which is expected to improve copper recovery. Plant management is also investigating other parameters such as operating temperature and acid dosage rates affecting copper recovery in order to make process adjustments in the leaching circuit.

These adjustments are also intended to reduce high levels of gypsum present in the circuit. It may take several months to make these adjustments, particularly if plant design modifications are required. The materials handling circuit is functioning satisfactorily and can achieve design capacity throughput rates.

However, certain modifications are being introduced to address material sizing to improve the performance of the scrubber and crusher, which at times have been hampered by excessive clay in the plant feed. A fourth tailings pump has just been installed to provide added flexibility and back-up. Several minor but disruptive equipment failures have occurred, which plant management have rectified, including the replacement of a number of blades on leach tank agitators.

The plant continues to be fed from low-grade stockpiles while the operation is being ramped up. Baja management was advised that expected total copper production for 2015 will be approximately 7,500 tonnes, as compared to 20,000 tonnes previously targeted. Underground and surface mining: New underground mining methods continue to be evaluated.

MMB mining crews are advancing access tunnels in three mines at the manto level, and Mexican contract miners are carrying out trials using short-wall mining techniques. Underground mining currently employs approximately 140 miners on three production shifts. MMB mine management advised Baja that underground mining conditions remain constrained by very difficult ground conditions, availability of experienced personnel and equipment.

Underground production is averaging approximately 450 tonnes per day. This is programmed to increase to 1,000 tonnes per day before year end with the delivery of additional equipment expected this month. Surface mining continues to provide the bulk of the material delivered to stockpiles.

Year to date through September 2015, surface mining has added approximately 260,000 tonnes to stockpiles with an average grade of 1.43%. Mining strip ratios are currently between 7:1 and 8:1, with an average haul distance of approximately 6 kms. Both surface and underground mining was halted by the site access restrictions imposed by the Municipio. MMB mine management are preparing a long-term mine plan that is expected to be finalized before year end.

Baja management will be attending the next MMB Board meeting scheduled to take place at site in December.