The Tabaco copper property is located 500km north of Santiago Chile.The property is situated on the Domeyko fault system which extends from Chile’s northern border with Peru, over 1,250 km south, almost to Santiago, This system is the main controlling feature for the northern Chile copper porphyry belt, represented by the Collahuasi, Quebrada Blanca, El Abra, Chuquicamata, La Escondida, El Salvador and Potrerillo mines.

The property covers a 5 kilometre, NE elongate zone of copper, silver and gold bearing skarned volcanics and sediments as defined by prospecting, geochemistry, trenching and numerous old workings. This zone lies within a major regional fault system which also carries epithermal gold, silver and copper mineralization. Ten kilometres to the north is Global Copper's Relincho porphyry copper deposit (1,001 million tons grading 0.55% copper) and 50 km to the east is the Xstrata/Metallica La Fortuna copper-gold porphyry deposit (653 million tons grading 0.56% copper).

Tabaco is known to have been worked for silver and gold as far back as the late 1800’s with copper being high graded in the 1930’s through to about the late 1960’s. Ore being taken from the Tabaco District and especially the Tabaco Mine veins reportedly ran over 25% copper, up to 12,500 g/t silver and from 1.5 to 30 g/t gold. The amount of material mined during these periods is not known. In 1962-63 forty four shallow holes drilled in the 0.25 km² Carmen area cut oxidized copper mineralization averaging 1% soluble copper over widths ranging from 10m–70m.

Drilling in 2003 & 2006 indicated a modest resource of 74 million pounds of copper encountered in strong copper skarn mineralization.  In addition company geologists have observed that the extent of surface alteration is representative of a subsurface body much larger than the amount of copper mineralization drilled to date.

Reconnaissance mapping and satellite imagery suggest that the mineralised trend holds a very good potential for further mineralisation in skarnified rocks along the Tabaco structural zone, outside of the areas currently drill-tested by IPBX.

Tabaco Copper Deposit

Mineral resource estimates, using a cut-off of  0.2% copper ($5.50 per tonne based on ($1.25 copper) show the Tabaco deposit to contain an indicated resource of 50.6 million pounds of copper and an inferred resource of 23.7 million pounds of copper. The resource model is based on 25 inclined and vertical holes (3,690 metres) drilled in 2003 and an additional 67 diamond core holes (4,650 metres) in 2006.

The mineral resource statement classified according to CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) is as follows: