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Compañía Minera Doña Inés de Collahuasi SCM announced a revised Mineral Resource estimate with significantly improved confidence levels and an increase to total Mineral Resources and Ore Reserves.
The new Measured, Indicated and Inferred Resource estimate totals 7. 094 billion tonnes at an average grade of 0.82% copper and 269 parts per million (ppm) molybdenum, using a 0.34% copper cut-off grade. This represents 58 million tonnes of contained copper metal.
The total tonnage of the Mineral Resource has increased by 40%, the equivalent of over 2 billion tonnes, compared to the estimate published in December 2009 and taking into account the 47 million tonnes mined during the first six months of 2010. The increase is the result of new drill results, modeling changes and metal price assumption adjustments. Mining reserves have increased by 315 million tonnes to a total of 2.453 billion tonnes at a grade of 0.82% copper compared to December 2009.
Collahuasi’s Measured, Indicated and Inferred Resources* as of June 30, 2010
MINERAL RESOURCES | KTON | % CuT | Fine Cu (ton) | UJINA | 1,836,588 | 0.67 | 12,355,295 | ROSARIO | 3,781,859 | 0.89 | 33,600,782 | ROSARIO OESTE | 1,449,872 | 0.82 | 11,883,831 | EXOTICS | 25,793 | 0.67 | 172,168 | TOTAL | 7,094,112 | 0.82 | 58,012,075 | MINERAL RESERVES | KTON | % CuT | Fine Cu (ton) | UJINA | 873,913 | 0.67 | 5,892,488 | ROSARIO | 1,558,939 | 0.90 | 14,065,398 | ROSARIO OESTE | - | - | - | EXOTICS | 19,995 | 0.66 | 132,902 | TOTAL | 2,452,846 | 0.82 | 20,090,788 | * Estimated mineral resources are reported above a 0.34% copper cut-off and restricted in an optimised pit at a copper price of US$2.50/lb. Mineral reserves are reported above a 0.34% cut-off grade and are contained in an operational pit at a copper price of US$2.05/lb. Competent persons: Mr. Jorge Camacho V. and Mr. Mario Quiñones V., who are full time Collahuasi employees, are responsible for the Quality of exploration data used as the basis for Collahuasi’s Resource estimates, of the geological interpretations that constrain the Resource estimates and the transformation of the Resources into Reserves. Both are Competent Persons under the meaning of the 2004 JORC Code. Jon Evans, Chief Executive Officer of Collahuasi highlighted “The impressive uplift in the mineral resource base at Collahuasi provides a clear indication of the further expansion potential at Collahuasi, at a time when we continue to progressively increase the throughput capacity of the main processing facilities through ongoing operational improvements and staged, incremental capital expansions”. He added that “We are progressing with concept studies into the alternatives to expand Collahuasi’s operations to ultimately produce more than one million tonnes of copper annually, with the view to completing the studies in the first quarter of 2011 prior to a decision on moving into the pre-feasibility study”. |
