FCX reports encouraging drilling results at Deep MLZ

US miner Freeport-McMoRan Copper &Gold Inc. (FCX) on Tuesday reported encouraging drilling results at its 'Deep Mill Level Zone? (MLZ) underground exploration target in its mining concession in Papua province.

FCX said assay results 23 holes comprising approximately 9,000 meters showed intercepted mineralized zones in 19 holes with lengths ranging from 24 meters to 737 meters (average of 340 meters) with interval grades ranging from 0.76% copper equivalent to 5.24% copper equivalent (average 1.80% copper equivalent). FCX?s planned 2004 Deep MLZ drilling program encompasses 37,000 meters of diamond drilling in 65 drill holes.

Deep MLZ is located below its Mill Level Zone (MLZ) ore body, where 2003 drilling activities had defined a 159 million tonne mineable block cave reserve, grading 0.87% copper and 0.76 grams per tonne gold (aggregate proven and probable recoverable reserves of 2.5 billion pounds of copper and 2.9 million ounces of gold. The MLZ ore body, a downward extension of Deep Ore Zone (DOZ), is located at the 2900 meter elevation, 250 meters below the DOZ underground mine.

James R. Moffett, Chairman of FCX, said, ?We are encouraged by the positive results to date at Deep MLZ which build on our previous success in the area. Our exploration activities over the past several years in the Ertsberg East area of Block A, which includes DOZ, Erstberg Stockwork Zone and MLZ, have been successful in defining 280 million tonnes of high-grade proven and probable ore reserves. These activities have allowed us to leverage our existing infrastructure to extend the life of our operations on the east side of the district and consider opportunities to achieve higher production rates from our underground ore bodies.?

FCX expects to complete its 2004 drilling activities and engineering studies required for reserve determination associated with the Deep MLZ mineralization by the end of 2004.

Other 2004 exploration drilling targets include in-fill drilling at the Big Gossan underground ore body located between the mill complex and Kucing Liar, deep extensions of the Dom ore body located between the mill complex and the DOZ mine, and exploration along the Big Gossan/Wanagon trend. (alex)