Forte progression de la production Avril May 2010
Provides Lumwana Production Update, Awards Lumwana Feasibility Study for 35 Mtpa Expansion and Accelerates Drilling at Chimiwungo
TORONTO, ON, June 1, 2010: Equinox Minerals Limited (TSX and ASX: EQN) (“Equinox” or the “Company”) announced today production progress results for April and May, 2010 from its 100% owned Lumwana Copper Mine (“Lumwana”) in Zambia, the awarding of the contract to undertake a feasibility study into a 35 Mtpa expansion for Lumwana and the approval of an additional $10m to accelerate drilling at the Lumwana Chimiwungo deposit.
April/May 2010 Production Update
The Company is pleased to report that Lumwana production for the first two months of Q2-2010 totaled 29,733 tonnes (66 M lbs) of copper in concentrate, representing a 46% increase on the average monthly production results of Q1-2010 and a 83% increase on the average monthly production results for the corresponding period Q2-2009. Mine material movement has also consistently exceeded 300,000 tonnes per day since the end of the wet season in mid-April, with better equipment availability, productivity and utilization driving improved performance from the mine.
LUMWANA MINE
PRELIMINARY PRODUCTION STATISTICS Q1-2010 April/May 2010 Progress
TOTAL
Total material movement Mt 14.99 16.39 31.38
Ore mined Mt 3.09 3.44 6.53
Ore processed Mt 3.59 2.95 6.54
Head grade Cu % 0.93% 1.07% 0.99%
Copper recovery % 92% 95% 93%
Concentrate grade Cu % 44% 44% 44%
Copper in concentrate tonnes 30,471 29,733 60,204
Copper in concentrate M lbs 67.18 65.55 132.73
New mining areas in the Lumwana Malundwe deposit to the north (pit 3E) and to the south (pit 2E) of the original Starter pits and pit 1E have been opened up and developed in such a way as to provide longer, more productive faces. Ore mined of 3.44 Mt in the two month period exceeded that of the prior three months (3.09 Mt) of Q1-2010 as well as the corresponding period Q2-2009 (3.03 Mt). The average head grade improved from 0.93% copper in Q1-2010 to 1.07% copper.
With the additional ore supply, the Lumwana mill was able to process record tonnes in April (19.8 Mtpa rate) prior to a planned 6-day plant shutdown for a SAG mill reline in May. The higher head grades at 1.07% and increased copper recovery at 95% resulted in 29,733 tonnes (66 M lbs) of copper in concentrate being produced in the two months April and May, 2010. The improvements in mining efficiency, grades and recoveries, together with the resulting higher copper production in the two months April and May have positively impacted C1 costs. Management maintains its full year 2010 guidance of 135,000 tonnes of copper in concentrate at a C1 cash cost of $1.35/lb Cu. Full details of Q2-2010 production and costs will be released in the quarterly report in August 2010.
Equinox Commences Phased Feasibility Study for Lumwana Expansion: Award to Ausenco
Equinox has commenced feasibility studies to investigate the expansion opportunities of the Lumwana copper project with the award, to Ausenco, of a two staged expansion plan for Lumwana.
The Phase 1 expansion to 24 Mtpa throughput rate at Lumwana is a continuation of mine ramp up. It is expected to be largely achieved through project optimization and ‘de-bottlenecking’ with some supplemental ore feed required from Chimiwungo and achieved with limited additional capital and within an 18 month time frame.
The Phase 2 expansion study will investigate the further expansion of the Lumwana operation to 35 Mtpa. A scoping study aimed at identifying the appropriate mining and processing scale for the Lumwana operation has indicated that the Chimiwungo orebody would be capable of sustaining a mining rate of 35 Mtpa of ore feed to an expanded Lumwana plant. Further scoping work has indicated that the plant expansion could be implemented by incorporating an additional SAG mill to support a milling rate of similar scale. Preliminary estimates indicate that an expansion to 35 Mtpa would take approximately 3-4 years to complete and cost in the order of US$300-400 million.
The Ausenco work is expected to take approximately twelve months to complete with results expected by the end of the first quarter 2011.
Accelerated Drilling Program at Chimiwungo
On May 6, 2010, the Company reported that the first hole (drill hole CHI0084) of the substantial Chimiwungo drilling program, designed to determine if and to what extent mineralization extends to the south and east of the current Chimiwungo pit designs, intersected significant intercepts of 127m (225m – 352m) of 0.82% Cu including 64m (288m – 352m) of 1.03% Cu. Subsequent to those encouraging results, the Company reports that it will expend an additional US$10 million in order to accelerate the drilling campaign and evaluate further extensions of known mineralization, particularly to the south and southeast of the currently defined Chimiwungo orebody.
Drilling in this area is ongoing, currently with one RC percussion rig and two diamond core rigs, and the campaign will accelerate during June with the addition of another RC rig and two further diamond core rigs.
Equinox President and Chief Executive Officer Craig Williams said that “Through the continuing improvements in operating performance and the launching of our two stage expansion plans, the Lumwana mine is beginning to demonstrate its full potential. Production in the first two months of Q2-2010 has almost exceeded that for the full quarter of Q1-2010 and, thanks to the dedication of the Lumwana team, the operation is now close to nameplate design throughput of 20 Mtpa. With the award of the phased expansion feasibility studies we intend to continue ramp up to our Phase 1 expansion target of 24 Mtpa and further assess our Phase 2 expansion target of 35 Mtpa. The exciting drill results from Chimiwungo East, although still in its early stages, suggest that there is potential to significantly expand the Chimiwungo resource and extend the life of operations under a Phase 2 expansion.”
Craig R. Williams - President & Chief Executive Officer