FCX reports additional reserves
Wednesday, July 14 2004 - 06:39 PM WIB
PT Freeport Indonesia's (PT-FI's) 2004 exploration program is targeting skarn and porphyry mineralization below its Mill Level Zone (MLZ) ore body, where 2003 drilling activities were successful in defining an approximate 160 million tonne block cave reserve, grading 0.87% copper and 0.76 grams per metric ton gold (aggregate proven and probable reserves of 2.5 billion pounds of copper and 2.9 million ounces of gold, including our joint venture partner's share). The MLZ ore body is located at the 2900-meter elevation, 250 meters below existing Deep Ore Zone (DOZ) mine.
PT-FI has recently completed a 37,000-meter, 65-hole diamond drilling program at Deep MLZ, a 250 million metric ton exploration target, and has extended the drilling program to include an additional 9,000 meters. To date, assay results have been received on 50 holes comprising approximately 31,000 meters. Including the previous assay intervals reported on May 4, 2004, the drilling intercepted mineralized zones in 46 holes with lengths ranging from 24 meters to 737 meters (average of 322 meters) with interval grades ranging from 0.41% to 7.11% copper equivalent (averaging approximately 1.9% copper equivalent). PT-FI has initiated engineering studies on Deep MLZ required for reserve and resource determination.
James R. Moffett, Chairman of FCX, said, "We are pleased with the continued positive drilling results at the Deep MLZ which build on our 2003 reserve additions at MLZ. The drilling results to date indicate the potential of combining this 250 million metric ton target with our MLZ ore body which indicates a potential 400 million metric ton single-level block cave mine. Our positive drilling results on the east side of the district coupled with the success of our DOZ mine, which is currently producing over 45,000 metric tons per day, will allow us to extend the life of our operations and consider opportunities to achieve higher production rates from our underground ore bodies."
Grasberg Operations
FCX also said that during the second quarter of 2004, PT-FI established safe access to the high-grade ore areas in the Grasberg open pit following the fourth quarter 2003 fatal slippage.
?Open pit operations are proceeding normally following a six-month period of accelerated mining of waste material in the affected section of the Grasberg open pit. PT-FI initiated mining activities in higher grade ore areas in April 2004 and is on schedule to meet its previously reported sales estimates of 1.0 billion pounds of copper and 1.5 million ounces of gold in 2004 and 1.5 billion pounds of copper and 2.9 million ounces of gold in 2005,? said FCX.
FCX said safety concerns made the company changed the sequencing of mining, which will result in potential modifications to the timing of access to ore during the 2006 to 2008 time period. The aggregate metal to be produced over the five year 2004-2008 period is projected not to change significantly. In addition, the design would allow PT-FI to access at least 20 million metric tons of high-grade Grasberg underground reserves through the open pit, thereby extending the open pit life through 2015.
FCX operates the huge Papua mine through its subsidiary PT-FI. (alex)