Category: Uncategorized
- Published: 29 November -0001
News Release: Results From the GRDMinproc Engineering Study on the Kansanshi - Copper-Gold Deposit
FIRST QUANTUM MINERALS LTD ("FM-T;FQVLF-0")
- UPDATED RESOURCE CALCULATION - PHASE ONE OPERATING ESTIMATES - All figures expressed in United States dollars)
First Quantum Minerals Ltd. is pleased to announce the results of the Engineering Study ("the Study"), dated June 2002, for Phase One development of First Quantum's 80% owned Kansanshi copper-gold project. The Study was conducted and compiled by GRDMinproc Limited ("Minproc") of Perth, Western Australia and will lead to a Definitive Feasibility Study which is scheduled for completion in the fourth quarter of 2002. The Study considers all aspects of the development of a new, large scale open pit mine at Kansanshi. First Quantum's objective is to develop an operation that recognizes the changing physical nature of the Kansanshi orebody with depth, and consequently minimize capital and maximize profitability.
The Study envisions that the Kansanshi project will be developed in two phases. Phase One development (years 1-11) will focus predominantly on shallow copper oxide and mixed ores. During Phase One copper cathode from a SX/EW facility will comprise approximately 60% of output, while copper in concentrate will account for 40%. Copper in concentrate will be sent to existing Copperbelt smelters for processing. The mineable resource for Phase One is 73 million tonnes grading 1.74% copper and 0.27g/t gold. Phase Two development (years 12-26+) will focus on sulfide ores with a mineable resource, based on the Phelps Dodge Pre-feasibility Study, of 197 million tonnes grading 1.16% copper and 0.12g/t gold. The Company anticipates that, subject to certain conditions, initial construction for Phase One including civil engineering and some earthworks could commence late in 2002, with commissioning in November 2003 and commercial production commencing in early 2004.
Minproc Resource Calculation
The resources tabulated below have been estimated by Minproc in accordance with National Instrument 43-101, Standards Disclosure for Minerals Projects. Mr. Dan Greig and Ms. Annick Manfrino, both employed by Minproc, are the qualified persons responsible for the resource estimate in this release.
Cut-off Class Tonnes Copper Copper Gold Gold"We are very pleased with the outcome of the GRDMinproc
(Mt) (%) (Blbs) (g/t) (ozs)
Cu(t) 0.5% Measured 93.2 1.43 2.94 0.19 569,000
Indicated 208.6 1.06 4.87 0.16 1,073,000
Inferred 111.0 1.11 2.72 0.12 428,000
Total Measured
+ Indicated 301.8 1.17 7.81 0.17 1,642,000
Cu(t) 1.0% Measured 48.4 2.09 2.23 0.25 389,000
Indicated 75.8 1.72 2.87 0.23 561,000
Inferred 41.2 1.81 1.64 0.14 186,000
Total Measured
+ Indicated 124.2 1.86 5.10 0.24 950,000
Minproc Phase One Operating Estimates (Years 1-11 only)
The following parameters have been estimated by Minproc for 100%
interest of the Kansanshi project:
73 Mt grading 1.74% Cu &
0.27g/t Au containing 1.037Mt
(2.29 billion pounds)
recoverable copper and 0.46
Moz recoverable gold
Strip Ratio 2 ; 1
Plant Throughput 6.6 Mtpa
Metallurgical Recovery 82% copper, 73% gold
Total Cathode Copper Production 624,000 t (1.4 billion pounds)
Total Copper in Concentrate Production 413,000 t (0.9 billion pounds)
Average Annual Copper Production 94,286 t (0.2 billion pounds)
Total Gold Production 460,000 oz
Average Annual Gold Production 41,800 oz
Pre-Production Capital Cost $155 million
Operating Cost $12.90 /t ore treated
C1 (Cash) Cost, net of credits $0.35/lb
Engineering Study which demonstrates that the potential for the
Kansanshi deposit, which hosts an insitu resource, assuming a 0.5%
Cu(t) cut-off, of 7.8 billion pounds copper and 2.0 million ounces
gold to be developed as a large, low cost copper producer. We look
forward to working with the Government of the Republic of Zambia, in a
joint effort to expedite the construction of Kansanshi. First Quantum
Minerals is a committed long term investor in Zambia and we believe
that the development of new low cost copper deposits will play an
increasingly important role in the future of Zambia's copper
industry," commented Philip Pascall, Chairman and CEO.
On Behalf of the Board of Directors of First Quantum Minerals Ltd.
G. Clive Newall, President
Certain of the information contained in this news release
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those with respect to the
prices of gold, copper and sulphuric acid, estimated future
production, estimated costs of future production, the Company's
hedging policy and permitting time lines, involve known and unknown
risks, uncertainties, and other factors which may cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include, among others, the actual prices of copper, gold and sulphuric
acid, the factual results of current exploration, development and
mining activities, changes in project parameters as plans continue to
be evaluated, as well as those factors disclosed in the Company's
documents filed from time to time with the British Columbia Securities
Commission and the United States Securities and Exchange Commission.
TEL: 604/688-6577 Geoff Chater, First Quantum Minerals Ltd.,
Bill Iversen, First Quantum Minerals Ltd.
Toll Free: 1 (888) 688-6577
FAX: 604/688-3818
EMAIL: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.first-quantum.com
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