EQN 0.00% $7.85 equinox minerals limited

full steam ahead in zambia

  1. 440 Posts.
    G'day all,

    The development of Equinox Resources giant Lumwana copper project in ZAMBIA draws ever closer with today's ann.(att.)

    This follows the separate appointments over recent months of a Major Projects Financing Specialist and a Chief Operating Officer for Lumwana.

    In further Zambian copper developments, First Quantum Resources has started production from their 80% owned Kansanshi Mine which is set up to deliver >100 000 tpa Cu.

    If you like the copper story, then the Lumwana project is well worth a look.

    Cheers .... WJ


    January 12, 2005
    Equinox Acquires 100% of Lumwana Copper Project
    New Copper Deposit Discovered Close to Proposed
    Process Plant
    Equinox Minerals Limited (TSX and ASX symbol: “EQN”) (“Equinox”) has made substantial progress towards
    development of the major Lumwana Copper Project in Northwestern Zambia. Key achievements are as follows.
    Equinox Acquires 100% of the Lumwana Project
    Equinox is pleased to announce that it has completed the acquisition of the remaining interest in Lumwana from
    Phelps Dodge Zambia Limited (“Phelps Dodge”), giving the Company a 100% interest in the Lumwana Project.
    The Minister for Mines and Minerals Development of the Republic of Zambia has consented to the transfer of Large
    Scale Mining License LML-49 to Equinox.
    Equinox formed a joint venture with Phelps Dodge in August 1999 and acquired a 51% interest in the Lumwana
    Project by completing a Bankable Feasibility Study (“BFS”) and expending in excess of US$10.0 million. In June
    2003, Equinox and Phelps Dodge signed a Letter of Intent providing Equinox with an option to acquire the
    remaining Phelps Dodge interest in the Project. This option has now been exercised and title transferred to
    Equinox.
    Phelps Dodge will retain a 1% net smelter return, which Equinox has a further option to acquire either for a
    payment of US$10.6 million on a development decision, or for a payment of US$12.8 million on the
    commencement of commercial production.
    Lumwana represents one of the largest undeveloped copper projects in the world, and is one of the few that has
    advanced to the point where feasibility is completed and the project is preparing for development. Equinox
    President and CEO Craig Williams said “the acquisition of a 100% interest in Lumwana has placed Equinox in a
    stronger position to fully realize the benefits of our development plans.”
    Discovery of a New Copper Deposit 3km from Proposed Plant
    Equinox has discovered a new copper deposit called Chimiwungo North, about 300m north of the planned
    Chimiwungo Main open pit at Lumwana and approximately 3km from the proposed 18Mtpa process plant. Copper
    mineralization has been identified in 28 of the 30 reverse circulation (“RC”) drill holes completed at Chimiwungo
    North. The mineralized zone extends over an area of 700 m (N-S) by 450 m (E-W), and remains open to the east
    and north. Significant sulphide intercepts at Chimiwungo North include
    Equinox Minerals Limited
    Announcement 12 January 2005
    2
    A north-south oriented cross section through the centre of Chimiwungo North and a table of all drill intercepts and
    assays are attached. Note that assays from the last two holes, EQCHI292 and 293, are expected next week.
    The Chimiwungo North deposit is located on the north side of the Chimiwungo North Fault which has dropped
    down the mineralized zone to the north. The orebody was previously thought to have been eroded off in this area,
    but was recently identified by Equinox as a strong induced polarization (“IP”) geophysical anomaly.
    The grades and widths of the Chimiwungo North deposit are similar to the previously announced Chimiwungo
    orebody (the latter having a Measured & Indicated Resource of 139.1 Mt of 0.76% Cu). The Chimiwungo North
    mineralization is predominantly copper sulphides, hosted within a shallow (less than 100 m), flat-lying zone of ore
    schists similar to those hosting the Chimiwungo resource. Above the sulphide zone there appears to be a
    substantial zone of copper oxide mineralization developed in the weathered portions of the deposit. The
    Chimiwungo North deposit is close to the planned Lumwana plant site, is shallow, has a significant width and a
    shallow southerly dip, in an area of flat topography that facilitates development by an open pit.
    Golder Associates have been engaged to conduct a preliminary resource estimate on Chimiwungo North and it is
    anticipated that this will be completed by February 2005.
    Craig Williams commented that “the Chimiwungo North mineralization is the first new copper deposit to be
    identified at Lumwana since the mid-1970’s. The Chimiwungo North discovery confirms the outstanding potential
    of the Lumwana region to host additional copper deposits and validates the Equinox exploration strategy applying
    geological concepts and modern geophysical technology to discover previously unrecognized copper
    mineralization.”
    Lumwana Pre-Development Activities
    Equinox is conducting an ongoing program in preparation for development at Lumwana including
    • Metallurgical drilling: A 3,800 m (35 drill holes) large diameter (PQ) core drilling program will be completed
    in February to provide samples for metallurgical testwork. A total of 30 tonnes of metallurgical sample is
    being shipped to Australia for further comminution and flotation testwork to assist in the final definition of
    process equipment specifications.
    • Geotechnical drilling: A 500m (18 drill holes) program is nearing completion to provide geotechnical
    information for all key infrastructure required for development of the project.
    • The tender process for the engagement of the Engineering, Procurement and Construction Management
    (“EPCM”) Engineer is at an advanced stage and should be concluded in February 2005. Following its
    appointment, the EPCM Engineer will commence the definitive engineering phase of the Project prior to
    construction.
    Drill Hole Interval (m) Width Copper Grade
    From To (m) (% Cu)
    EQCHI-263 50 74 24 0.9
    EQCHI-266 30 48 18 0.8
    EQCHI-272 36 58 22 1.0
    EQCHI-280 40 84 44 0.9
    Equinox Minerals Limited
    Announcement 12 January 2005
    3
    Expansion of Equinox Board and Management Team
    The Equinox team has been substantially expanded to provide the operating and financial skills necessary for
    Lumwana development. As previously announced, key people that have recently joined the Equinox team are
    • Harry Michael – Chief Operating Officer and Director;
    • Brian Penny – Non-executive Director and Chair of the Equinox Audit Committee; and
    • Mark Arnesen – Project Finance Specialist.
    In addition, key people that have been recruited to the Lumwana Project Team for construction and operations
    include the Mine, Process and Finance Managers, all of which have extensive international mine management
    experience in large-scale open pit mines in addition to substantial African experience.
    Equinox has strengthened its Board and management capacity and will continue to recruit other key executives in
    line with the Lumwana development schedule. Craig Williams stated “We are making good progress towards
    project financing and are expanding our operating team in preparation for development. The Company is
    expeditiously moving Lumwana towards project financing and development.”
    For further information please contact
    Craig R Williams (Chief Executive Officer), Michael Klessens (Chief Financial Officer)
    +61 (0) 8 9322 3318 or
    Steve Dawson (Investor Relations)
    +1 (416) 865 3393
    Email: [email protected] Website: www.equinoxminerals.com
 
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