Freeport reports significantly higher Q1 copper, gold production
Wednesday, April 20 2005 - 01:32 AM WIB
Ore grades, mill recoveries and milling rates were significantly higher than the 2004 first quarter. Realized copper and gold prices also were higher than in 2004's first quarter.
First Quarter |
2005 |
2004 |
| Copper (000s of recoverable pounds): | ||
| Production | 335,600 | 107,100 |
| Sales | 328,100 | 105,400 |
| Average realized price per pound | $ 1.51 | $ 1.34 |
| Gold (recoverable ounces): | ||
| Production | 609,400 | 125,300 |
| Sales | 595,300 | 123,800 |
| Average realized price per pound | $ 426.74 | $ 411.42 |
First-quarter 2005 copper ore grades averaged 1.14 percent, compared with 0.50 percent for the first quarter of 2004. First-quarter 2005 copper recovery rates were 89.6 percent, compared with 83.8 percent for the first quarter of 2004.
For the first quarter of 2005, gold ore grades averaged 1.62 grams per metric ton (g/t), compared with 0.41 g/t for the first quarter of 2004. Gold recovery rates averaged 82.7 percent for the first quarter of 2005, compared with 73.8 percent for the first quarter of 2004.
Mill throughput averaged 199,400 metric tons of ore per day in the first quarter of 2005 compared with 151,800 metric tons of ore in the first quarter of 2004. Mill rates in the first quarter of 2005 reflect the processing of hard ores and mill maintenance activities. Mill rates are projected to average over 230,000 metric tons of ore per day during the remainder of 2005. Production from PT-FI's Deep Ore Zone (DOZ) underground mine averaged 42,100 metric tons of ore per day in the first quarter of 2005, representing 21 percent of mill throughput as it continued to perform above design capacity of 35,000 metric tons of ore per day. PT-FI is expanding the capacity of the DOZ underground operation to a sustained rate of 50,000 metric tons per day with the installation of a second crusher and additional ventilation expected to be completed by 2007. The DOZ mine, a block cave operation, is one of the world's largest underground mines.
PT-FI expected its sales for 2005 to approximate 1.5 billion pounds of copper and 2.9 million ounces of gold, with sales for the second quarter of 2005 to approximate 340 million pounds of copper and 650 thousand ounces of gold.
Meanwhile, FCX also reported that PT-FI's exploration efforts in 2005 would focused on testing extensions of the Mill Level Zone (MLZ) and Deep MLZ deposits to the northwest, expansion of the Deep Grasberg resource and testing reconnaissance targets along the Wanagon and Idenberg Fault trends, which are expected to result in approximately $15 million of exploration costs during 2005.
In 2004, PT-FI commenced its Common Infrastructure project, which will provide access to its large undeveloped underground ore bodies located in the Grasberg mining district through a tunnel system located approximately 400 meters deeper than its existing underground tunnel system. The Common Infrastructure project is progressing according to plan.
PT-FI is also completing studies for the development of Big Gossan, a high-grade deposit located near the existing milling complex. The engineering design for Big Gossan includes 44 million metric tons of ore, grading 2.5 percent copper and 1.2 g/t of gold, expected to yield aggregate payable copper of 2.3 billion pounds and aggregate payable gold of 1.1 million ounces. Aggregate capital expenditures for Big Gossan to be incurred over a four-year period beginning in 2006 total approximately $225 million, $195 million net to PT-FI, with a ramp-up to full production of 7,000 metric tons per day by 2010 (average annual aggregate incremental production of 135 million pounds of copper and 65,000 ounces of gold, with PT-FI receiving 60 percent of these amounts).
PT-FI operates one of the world?s copper and gold mining complex in the easternmost province of Papua. (alex)