Equinox Preliminary Lumwana Production Results show Continued Improvement for
the 3rd Quarter 2009
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LUMWANA MINE PRODUCTION STATISTICS Q1 2009 Q2 2009 Q3 2009*
Total mine material movement tonnes(m) 8.88 20.80 29.89
Ore mined tonnes(m) 1.84 3.03 4.02
Ore processed tonnes(m) 2.88 3.03 3.82
Head grade Cu % 0.93% 0.98% 0.92%
Copper recovery Cu % 83% 82% 80%
Concentrate grade Cu % 39% 39% 47%
Copper produced in concentrate tonnes 22,263 24,413 28,111
Copper produced in concentrate pounds(m) 49.08 53.82 61.97
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* Preliminary production statistics.
During the quarter, the Company's key areas of focus were as follows:
- Total material movement increased by 44% compared to Q2-2009.
Productivity of both the mine truck and shovel mobile equipment fleet
continued to improve with added focus being applied to further
improve mining fleet productivity. Productivity experts Jamieson
Group remain engaged assisting site management to improve
productivity performance;
- Equinox took delivery of an additional Caterpillar light fleet
(comprising 16 x 40t articulated dump trucks, 5 x 100t dump trucks, 2
excavators and 3 bulldozers). This fleet has primarily been utilized
to accelerate stripping of weathered material. Sub-contractor light
fleets are also operating for civil works and stripping;
- Ore mined increased by 33% compared to Q2-2009. Malundwe is currently
operating from 4 sub-pits. As additional sub-pits are opened up along
the strike of the ore body, further transitional (mixed sulphide-
oxide) ore continues to be encountered. However as further mining in
Malundwe exposes more consistent sulphide ore, the negative impact of
mixed ores on recoveries will diminish;
- Lower metallurgical recoveries continued to impact production due to
the proportion of transitional ore being processed. For Lumwana ore,
recoveries in transition material typically range 50-60% whereas
those in full sulphide ores range 92-94%. Orebody studies by
consultants Golder & Associates show that the Malundwe resource
reconciliations are consistent with the original mine design,
although grade dilution is occurring as a consequence of using higher
bench heights of 8m as opposed to the 4m used in the original mine
plan. Bench heights have been increased to improve mining efficiency.
These studies also confirm original estimates that the transition ore
constitutes about 5% of the orebody;
- Uranium: Mining of the uranium zones at Valeria South and Valeria
North within the Malundwe pit has produced a stockpile of 1.94mt @
1,044 ppm U and 0.81% Cu to date. This copper-uranium ore is being
diverted away from the copper concentrator, and is being classified
as 'waste' to the copper project. This uranium-rich copper ore
stockpile may be treated at a later date, if and when the Company
builds a uranium plant; and
- Wet Season Preparation: Following the experience of mining at Lumwana
during the 2008-09 wet season, pit preparation has been substantially
enhanced for the forthcoming 2009-10 wet season. Diversion channels
to control surface water ingress into the pit have been constructed,
substantial sumps excavated for the collection of in-pit water and
pumping capacity has been doubled since 2008. In addition, all main
ramps and roads have been sheeted and surfaced with bitumen emulsion
to improve road conditions, particularly during wet periods.
Management believes that based on the work underway in preparation for the forthcoming wet season, a continuing focus on mining fleet productivity, the commissioning of further trolley-assist infrastructure to help improve truck cycle times and the increasing exposure of new sulphide ore zones, that Q4-2009, subject to wet season conditions, should demonstrate additional improvement on quarterly production to date. As such, the Company expects production of approximately 110,000 tonnes of copper for full calendar year 2009. Full details for the quarter will be provided in the Company's Q3-2009 results expected to be released mid-November 2009.
Commenting,
Craig R. Williams - President & Chief Executive Officer
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Cautionary Language and Forward Looking Statements
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This press release contains certain information which may constitute
"forward-looking statements" and/or "forward-looking information" within
the meaning of securities laws. Forward-looking information can often,
but not always, 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. Forward-looking
information may relate to management's future outlook and anticipated
events or results and may include statements or information regarding its
future plans or prospects of the Company. Without limitation, statements
that the uranium stockpile may be treated at a later date if the Company
builds a uranium plant; the fourth quarter should be a further
improvement on quarterly production; 2009 production will be in the range
of 110,000 tonnes of copper; the Company expects some constraints during
the upcoming wet season; and that mine productivity should continue to
improve in the fourth quarter and into the 2010 dry season,, are forward-
looking statements. The purpose of forward-looking information is to
provide the reader with information about management's expectations and
plans for 2009.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, anticipated financial or operating
performances of Equinox, its subsidiaries and their respective projects;
future prices 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; the sale of future production and the performance of off-
takers; 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. Without limitation, in stating that the uranium stockpile may
be treated at a later date if the Company builds a uranium plant, the
Company has assumed that the costs of building such a plant will be
feasible, that the materials, labour, regulatory approvals and other
requirements will be available and that the price and demand for uranium
will be profitable. In stating that the fourth quarter should be a
further improvement on quarterly production; and that mine productivity
should continue to improve in the fourth quarter and into the 2010 dry
season, the Company has assumed that the distribution of the copper
mineralization described in the Amended Technical Report dated April 2009
is accurate and that it will successfully mine through the oxide and
transition mineralization in the weathering profile and reach the more
consistent sulphide ore and that its ongoing efficiency programs and
efforts will continue to result in productivity improvements. Further in
relation to mining of the orebody, it assumes that it will successfully
segregate the uranium mineralization within the copper orebody at the
lower 200ppm U cutoff grade. In stating that the Company expects some
constraints during the upcoming wet season, the Company has assumed that
similar constraints to those in the first and second quarters may reoccur
and although the Company has implement various proactive measures to
mitigate such constraints it may not be possible to completely eliminate
them. In stating that 2009 production guidance will be in the range of
110,000 tonnes of copper metal in concentrates, the Company has assumed
that its efficiency study by its third party consultants will be
completed or substantially completed and that the results of the study
will confirm its forecast. While the Company continues to evaluate and
address its productivity issues, the full impact of them on the Company's
annual production target, earnings and ability to meet its obligations
can not be ascertained at this time. Similarly, there can be no assurance
on the affect of these issues on the Company's debt service obligations
or loan covenants under its banking facilities and its offtake
obligations. The Company is actively evaluating and addressing these
issues with the expectation of mitigating them in the near term.
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.
These factors include risks inherent in the exploration and development
of mineral deposits; operational risks inherent in the conduct of mining
activities; risks relating to changes in copper and uranium prices;
changes in demand and supply of copper and uranium; uncertainties
inherent in the estimation of mineral reserves and resources; risks
inherent in the estimation of future production and future production
costs; the estimation of cash costs of copper production; risks related
to the Company's indebtedness including risks related to meeting its
financial covenants; financing risks; risks related to interest rates,
exchange rates; inflation or deflation; changes in the value of the U.S.
dollar to foreign currencies; political and economic conditions of major
copper-producing countries; risks inherent in securing off-take
arrangements and terms and/or enforcing such terms; insurance, government
regulation, licences and permits and environmental risks; risks inherent
in the estimation of reclamation costs; risks related to the Company's
hedging activities; litigation; competition and reliance on key
personnel. These risks are discussed in the section entitled "Risk
Factors" in the Company's Annual Information Form dated March 27, 2009.
Although Equinox has attempted to identify statements containing
important factors that could cause actual actions, events 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.
Scientific and technical information contained in this press release has
been prepared under the supervision of Robert Rigo, BEng., FAusIMM,
MIEAust, Vice President, Project Development of Equinox who 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 information contained in this release,
but should read the Amended Technical Report which is posted on Equinox's
website at www.equinoxminerals.com and filed on SEDAR at www.sedar.com
and any future amendments to such report. Reader are also directed to the
cautionary notices and disclaimers contained therein.
Readers are cautioned not to rely solely on the summary of such
information contained in this release, but should also read the final
prospectus dated April 16, 2009 and the documents incorporated by
reference therein, particularly, the Annual Information Form dated March
27, 2009, all of which are filed on SEDAR (www.sedar.com). Readers are
also directed to the cautionary notices and disclaimers contained herein.
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For further information: Craig R. Williams, (President and Chief Executive Officer), Michael Klessens, (Vice President - Finance and Chief Financial Officer), Phone: +61 (0) 8 9322 3318, Email: [email protected] Or Kevin van Niekerk, (V.P. Investor Relations), Phone: (416) 865-3393, Email: [email protected]; 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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