Bilbao Project, Zacatecas, Mexico (100% owned by Xtierra)
All of Minco's Mexican interests are held indirectly through its investment (29%) in Xtierra Inc., a company whose shares are listed on the TSX Venture Exchange in Toronto.
Since acquiring its interest in the Bilbao project, located approximately
50 kilometres east of the city of Zacatecas, in March 2006, Bilbao Mining, S.A. de C.V., an indirectly wholly-owned Mexican subsidiary company of Xtierra, has discovered a previously unknown polymetallic zinc/silver sulphide deposit beneath an oxide orebody which was mined during the 1940s. Bilbao Mining has completed over 20,000 metres of diamond drilling and developed a NI 43-101 compliant estimate for sulphide, transition and oxide resources. The deposit remains open to the south and to the northwest and high grade silver veins and breccias representing possible feeder structures, are currently being drill tested. 
In March 2009, Xtierra commenced a two-phase feasibility study on the Bilbao project whioch is expected to be completed during H2 2012. Component parts of the study included an updated NI 43-101 resource estimate, metallurgical test work on the near surface oxide ores, the mixed ores and the sulphide ores, base line environmental studies, geotechnical and hydrological surveys and socio-economic studies. The feasibility study is being led by DRA Americas from their Toronto offices.
The study envisages a 3,000 tonnes per day open pit mine for the initial 6-7 years, folowed by a 1,500 to 2,000 tonne per day underground mine.
Initial estimates suggest a capital requirement of approximately US$50-60 million
The state of Zacatecas is “mining friendly” with a long mining history, established fiscal, legal and permitting regime and a skilled mining labour force. The project area is well served by infrastructure.
Bilbao lies approximately 4 kilometres south of the main four-lane highway
between Zacatecas and San Luis Potosi and within 5 kilometres of the small
town of Panfilo Natera. Electrical grid power is available withing 500-600 metres from the site and artesian ground water is present under the site.