Freeport to complete studies on Deep MLZ ore reserve

New Orleans-based copper and gold mining firm Freeport-McMoRan Copper & Gold Inc (FCX) said on Tuesday that its Indonesian subsidiary PT Freeport Indonesia (PTFI) had completed a 47,650-meter, 92-hole diamond drilling program at Deep Mill Level Zone (MLZ) in Papua Province.

?The drilling intercepted mineralized zones in 75 of the 92 holes with lengths ranging from 24 meters to 737 meters (average of 326 meters) with interval grades ranging from 0.41% to 7.11% copper equivalent (averaging approximately 1.8% copper equivalent),? FCX said in its quarterly report.

FCX also said PTFI was completing engineering studies to determine ore reserve on the eastern side of the area, while additional engineering studies evaluating drilling results on the western side of the area area expected to be completed in 2005

According the report, the eastern side's ore reserves are currently estimated at 130 million metric tons. With a grade of approximately 1.25 percent copper and 1 gram per metric ton gold, the reserves are equivalent to approximately 3 billion payable pounds of copper and 3 million payable ounces of gold.

MLZ is part of a 24,700-acre area called Block A, where Grasberg mine, which holds the world's largest single gold reserve and one of the largest copper reserves in the world, is located.

Australian mining giant Rio Tinto plc is entitled to a 40 percent interest in any Deep MLZ reserve additions. (Robert)