Technical Report for Lumwana Copper and Uranium Project



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S./

    TORONTO, June 16 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol:
"EQN") announces that it's latest independent technical report, prepared in
accordance National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("Technical Report") for the Lumwana Project in Zambia ("Lumwana")
has been released on SEDAR (www.sedar.com). The Technical Report provides an
update on the Lumwana Copper Project and the proposed Lumwana Uranium Project
for which a feasibility study has recently been completed.
    A summary of the key points from the Technical Report are as follows:

    Resource and Reserve Determination

    The Lumwana Project includes the Malundwe and Chimiwungo deposits. The
Lumwana Mineral Resources were defined by Golder Associates Pty. Ltd.
("Golder") in accordance with the JORC Code and CIM NI 43-101 Standards, using
a 0.2% copper cut-off.

    
    -------------------------------------------------------------------------
         Lumwana Copper Resources : Measured + Indicated + Inferred
    -------------------------------------------------------------------------
    Category         Tonnage (Mt)       Cu (%)       Co (ppm)       Au (g/t)
    -------------------------------------------------------------------------
    Measured            129.5            0.89          238           0.03
    Indicated           228.7            0.68          153           0.02
    -------------------------------------------------------------------------
    Total M + I         358.2            0.76          184           0.02
    -------------------------------------------------------------------------
    Inferred            564.4            0.63           46           0.01
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Within this copper Resource, Golder and SRK Consulting (Australasia)  Pty
Ltd have also defined a JORC Code and CIM NI 43-101 Standard Uranium Resource
using a 0.012% U(3)O8 cut-off as follows:

    -------------------------------------------------------------------------
               Lumwana Uranium Resources : Indicated + Inferred
    -------------------------------------------------------------------------
    Category           Tonnage (Mt)          U(3)O(8) (%)        U(3)O8 (lbs)
    -------------------------------------------------------------------------
    Malundwe
    -------------------------------------------------------------------------
    Indicated             4.7                  0.095               9 920 000
    Inferred              3.9                  0.047               4 009 000
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Chimiwungo
    -------------------------------------------------------------------------
    Inferred              2.2                  0.056               2 660 000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Uranium occurs within the Malundwe and Chimiwungo deposits as discrete
uranium-enriched zones that will be selectively mined and stockpiled during
the copper mining operation. Stockpiling of the higher grade uranium
mineralization ensures that there is no contamination of the copper
concentrates and the uranium mineralization can be used as feed to the
proposed uranium processing plant.
    The Lumwana Copper Ore Reserve and Mineral Resource contained within the
engineered pit designs are as follows:

    
    -------------------------------------------------------------------------
       Lumwana Sulphide Reserves and Resources Within Engineered Pits -
                               Development Case
    -------------------------------------------------------------------------
    Deposit                         Tonnage (Mt)                       Cu (%)
    -------------------------------------------------------------------------
    Malundwe

    Proved                             42.9                             1.09
    Probable                           76.3                             0.79
    -------------------------------------------------------------------------
    Total Mineral Reserves            119.2                             0.90
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred Resource                   4.2                             0.77
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Chimiwungo

    Proved                             81.5                             0.70
    Probable                          118.7                             0.57
    -------------------------------------------------------------------------
    Total Mineral Reserves            200.2                             0.62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred Resource                 413.0                             0.60
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Combined Malundwe + Chimiwungo

    Proved                            124.4                             0.83
    Probable                          195.0                             0.66
    -------------------------------------------------------------------------
    Total Mineral Reserves            319.4                             0.73
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred Resource                 417.2                             0.60
    -------------------------------------------------------------------------

    The Mineral Reserve and Resource were determined by Golder on the basis
    of 12.5mx12.5mx4m block models, including mining dilution and recovery,
    and optimised by Whittle 4X software and generated in 3D Vulcan models.
    The cut-offs applied were based on $1.20/lb Cu, resulting in sulphide
    cut-off grades of 0.16% for Malundwe and 0.21% for Chimiwungo.

    The Lumwana Uranium Ore Reserve and Mineral Resource contained within the
engineered pit designs are as follows:

    -------------------------------------------------------------------------
       Lumwana Uranium Reserves and Resources Within Engineered Pits -
                               Development Case
    -------------------------------------------------------------------------
    Deposit      Tonnage      Grade      Grade      Contained      Contained
                   (Mt)       U(3)O8      Cu          Metal          Metal
                                 %         %        U(3)O(8) lbs   Cu tonnes
    -------------------------------------------------------------------------
    Malundwe

    Probable       3.3         0.123     1.00        9 006 000        32 900
    -------------------------------------------------------------------------
    Total Mineral
     Reserves      3.3         0.123     1.00        9 006 000        32 900
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred
     Resource

    Malundwe       1.0         0.086     0.91        1 893 000         9 100

    Chimiwungo     1.4         0.072     0.69        2 200 000         9 500
    -------------------------------------------------------------------------
    The uranium cut-off grade at 0.024% U(3)O8 (200 ppm U) is based on costs
    and recoveries for the proposed separate uranium treatment plant.
    

    Development Plan

    The Lumwana Copper Project is largely constructed and is in the process
of being commissioned. The first copper concentrate production is expected in
July 2008. The Lumwana Copper Project 'Base Case' is designed to mine and
process 20 million tonnes per year of ore, producing copper concentrates
containing an average of about 156,000 tonnes (340 million pounds) of copper
metal per year. Due to the higher head grades during the first five years,
average annual production is estimated to be 172,000 tonnes (380 million
pounds) copper metal over this period. The development plan for Lumwana
involves the mining and processing of sulphide ore on-site to produce copper
concentrates to be processed at third party smelters to extract copper.
    The Lumwana Copper Project received permits and approvals on the basis
that high grade uranium mineralization, located in discrete zones within the
designed open pits, would be mined and stockpiled separately. The Uranium
Feasibility Study ("UFS") was undertaken from April 2007 to May 2008 to
evaluate the viability of processing stockpiled uranium mineralization. The
UFS has shown that it is economically viable to treat the uranium
mineralization onsite.
    The Technical Report is based on the "Development Case" which
contemplates a mining schedule that contains 45% Measured and Indicated
Resources and 55% Inferred Resources being mined over a 37 year mine life.
Financial/economic evaluation contained in the Technical Report has been
carried out based on the "Base Case" which utilizes a mining schedule that
contains only Measured and Indicated Resources (no Inferred Resources as
required under NI43-101) for a period of 11 years. Equinox intends to develop
the Lumwana Project in accordance with the Development Case, which it believes
is the optimal approach for the project and is realistic given Equinox's
historic and anticipated conversion of Inferred Resources to Indicated
Resources.
    The key financial parameters were developed by Investor Resources Finance
Pty Ltd at a copper price of $1.50/lb Cu and $2.50/lb Cu for comparative
purposes. The net revenue from the proposed uranium processing plant
production is included as a copper credit.

    Key Lumwana Base Case development financial parameters are as follows:

    
    -------------------------------------------------------------------------
                                                  Copper         Copper
    Element                           Units        Price          Price
                                                  $1.50/lb       $2.50/lb
    -------------------------------------------------------------------------
    Pre-tax NPV (8% real)(1)          $ M          1,610          3,826
    -------------------------------------------------------------------------
    Post-tax NPV (8% real)(1)         $ M          1,238          2,821
    -------------------------------------------------------------------------
    Net Cash Flow Before
     Capital and Tax(2)               $ M          2,798          6,090
    -------------------------------------------------------------------------
    Net Cash Flow After Capital
     and Before Tax(2)                $ M          1,840          4,136
    -------------------------------------------------------------------------
    Average Cash Cost - Life
     of Mine(3)                      c/lb Cu        67.7           77.8
    -------------------------------------------------------------------------
    Copper Project Pre-Production
     Capex (Spent to 30 April 2008)   $ M          669.6          669.6
    -------------------------------------------------------------------------
    Copper Project Pre-Production
     Capex Remaining                  $ M           88.2           88.2
    -------------------------------------------------------------------------
    Copper Project Deferred Capex     $ M          177.1          177.1
    -------------------------------------------------------------------------
    Copper Project Total
     Project Capex                    $ M          934.9          934.9
    -------------------------------------------------------------------------
    Payback Period                    years          2.7            1.4
    -------------------------------------------------------------------------
    Uranium Project Pre-Production
     Capex                            $ M          199.6          199.6
    -------------------------------------------------------------------------
    Uranium Project Deferred Capex    $ M           26.3           26.3
    -------------------------------------------------------------------------
    Uranium Project Total Capex       $ M          225.9          225.9
    -------------------------------------------------------------------------
    Copper Produced from Smelting      kt          1,714          1,714
    -------------------------------------------------------------------------
    Uranium Oxide Production          M lb          8.25           8.25
    -------------------------------------------------------------------------
    Copper Price                     $/lb Cu        1.50           2.50
    -------------------------------------------------------------------------
    Average Uranium Price          $/lb U(3)O(8)      77             77
    -------------------------------------------------------------------------
        Notes
           1. NPVs are as at 1 May 2008.
           2. Cash flows are from 1 May 2008 and exclude sunk capital.
           3. Includes uranium credits. Short term costs may vary from the
              projected figures.
    

    Based on the Development Case, copper produced from the smelting of
concentrate would total 4,449 kt over the life of the Project, providing net
cash flow after capital and before tax of $3,771M (at $1.50/lb Cu) and $9,198M
(at $2.50/lb Cu). Pre and post tax NPV's for the Development Case, at an 8%
discount, are $2,057M and $1,477M (at $1.50/lb Cu) and $5,208M and $3,578M (at
$2.50/lb Cu).
    The capital cost estimate for the Development Case includes an additional
$314M as deferred capital over the life the Lumwana Copper Project and $26M
over the life of the Lumwana Uranium Project. The life of project operating
costs for the Development Case are estimated to be $0.82 per pound of copper
produced or $0.76 per pound of copper produced, inclusive of uranium credits.

    Project Implementation

    The Lumwana Copper Project is largely constructed and is in the process
of being commissioned. The first copper concentrate production is expected in
July 2008.
    An Environmental Impact Assessment ("EIA") is being finalized for the
Lumwana Uranium Project and is expected to be submitted to the Environmental
Council of Zambia (ECZ) during June 2008, as part of the permitting process
required by the Government of the Republic of Zambia.
    Front End Engineering Design ("FEED") for the Lumwana Uranium Project has
commenced and will include detailed engineering design for project
implementation. Product marketing discussions and uranium project financing
will be conducted concurrent with the FEED and permitting process. On the
basis that government and financing approvals are received followed by final
Equinox board approval, it is envisaged that site construction activities may
commence during the third quarter of 2008 with the aim of commissioning the
uranium processing plant during 2010.

    On Behalf of the Board of Directors of Equinox:

    Craig R. Williams - President & Chief Executive Officer
    -------------------------------------------------------


    -------------------------------------------------------------------------
    Notes to Resources and Reserves
    -------------------------------
    As required by the National Instrument 43-101, Equinox's designated
qualified persons required for the supervision of exploration projects are
John Cooke and Mike Richards, both of whom are employees of the Corporation.
Raw drilling data that formed the basis of the uranium resource and uranium
reserve estimates have been presented previously in the Corporation's earlier
public releases of July 24, 2007 and November 14, 2007, and readers are
referred thereto.
    Daniel Guibal, of SRK Consulting (Australasia) Pty Ltd ("SRK"), and Ross
Bertinshaw of Golder Associates Pty Ltd ("Golder"), are the Qualified Persons
for the resource statement. The resource figures derive from two sources: the
new data, used by SRK, are derived from the extensive drill program completed
in 2007 within the area of most coherent mineralization in the Malundwe pit
shell; and the balance of the material quoted by Golder is from the 2003 BFS
statement.
    SRK has validated all raw data, undertaken a QAQC review of the assay
data and has completed variographic analysis of the uranium distribution. SRK
utilized uniform conditioning in their estimation of the uranium resources
within the area of increased drill density at Malundwe.
    Ross Bertinshaw of Golder is the Qualified Person who developed the
mining reserves for the uranium mineralization at Lumwana. The reserves have
been separately estimated based on the drilling specifically carried out
during 2007 for that purpose. The uranium cut-off grade at 0.024% U(3)O8 (200
ppm U) is based on costs and recoveries for the proposed separate uranium
treatment plant.

    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    This press release contains "forward-looking statements" and
"forward-looking information", which may include, but is not limited to,
statements with respect to the future financial or operating performances of
Equinox, its subsidiaries and their respective projects, the future price of
copper and uranium, the estimation of mineral reserves and resources, the
realization of mineral reserve estimates, the timing and amount of estimated
future production, estimated costs of future production, capital, operating
and exploration expenditures, costs and timing of the development of the
Lumwana Project, the costs of Equinox's hedging policy, costs and timing of
future exploration, requirements for additional capital, government regulation
of exploration, development and mining operations, environmental risks,
reclamation and rehabilitation expenses, title disputes or claims, and
limitations of insurance coverage. Often, but not always, forward-looking
information can be identified by the use of words such as "plans", "expects",
"is expected", "is expecting", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes", or variations (including
negative variations) of such words and phrases, or state that certain actions,
events or results "may", "could", "would", "might", or "will" be taken, occur
or be achieved. The purpose of forward-looking information is to provide the
reader with information about management's expectations and plans for the
Company. Readers are cautioned that forward-looking information involves known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Equinox and/or its subsidiaries to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking information. Such factors include,
among others, those factors discussed in the section entitled "Risk Factors"
in the Company's annual information form, which is available at www.SEDAR.com.
Although Equinox has attempted to identify statements containing important
factors that could cause actual actions, event or results to differ materially
from those described in forward-looking information, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking information contained
herein are made as of the date of this document based on the opinions and
estimates of management on the date statements containing such forward looking
information are made, and Equinox disclaims any obligation to update any
forward-looking information, whether as a result of new information, estimates
or opinions, future events or results or otherwise. There can be no assurance
that forward-looking information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on forward
looking information.
    Technical information in this release is summarized or extracted from the
"Amended Technical Report on the Lumwana Copper Project, North Western
Province, Republic of Zambia" dated June 2008 (the "Technical Report"),
prepared by Michael Davis, Process Manager, Ausenco Ltd. ("Ausenco"), Ross
Bertinshaw, Principal of Golder Associates Pty Ltd. ("Golder"), Andrew Daley,
Director, of Investor Resources Finance Pty Ltd ("IRF"), Daniel Guibal,
Corporate Consultant (Geostatistics and Resources), of SRK Consulting
(Australasia) Pty Ltd ("SRK") and Robert Hanbury, Associate Director, of
Knight Piésold Pty Ltd. ("Knight Piésold"), each of whom is a "Qualified
Person" in accordance with National Instrument 43-101 -Standards of Disclosure
for Mineral Projects.
    Readers are cautioned not to rely solely on the summary of such
information contained in this release, but should read the Amended Technical
Report which is posted on Equinox's website (www.equinoxminerals.com) and
filed on SEDAR (www.sedar.com) and any future amendments to such report.
Readers are also directed to the cautionary notices and disclaimers contained
herein. All currency in this release is U.S. dollars unless otherwise stated.
    -------------------------------------------------------------------------

    %SEDAR: 00020823E




For further information:

For further information: Craig R. Williams (President and Chief
Executive Officer), Michael Klessens (V.P. Finance and CFO), Phone: +61 (0) 8
9322 3318, Email: equinox@equinoxminerals.com or Kevin van Niekerk (V.P.
Investor Relations/Corporate Development), Phone: (416) 865-3393, Email:
kevin.van.niekerk@equinoxminerals.com; For information on Equinox and
technical details on the Lumwana Project please refer to the company website
at www.equinoxminerals.com

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