Inmet Mining Announces 27% Increase to Cobre Panama Copper Reserves
13.12.2012 | Marketwire
Mine Life Extends to 40 Years with 26 Billion Pounds Contained CopperTORONTO, CANADA -- (Marketwire) -- 12/13/12 -- Inmet Mining Corporation (Inmet) (TSX: IMN) is pleased to announce an increase to proven and probable mineral reserves at its 80 percent owned Cobre Panama project. The additional mineral reserves from the Balboa, Brazo and Botija Abajo deposits increase Cobre Panama's total estimated contained copper by 27 percent to approximately 26 billion pounds. Estimated contained gold increases by 41 percent to approximately 7.3 million ounces. The additional mineral reserves have been integrated into a revised mine plan that extends the estimated mine life from 31 to 40 years. A summary of the revised mine plan is attached as Table 3.
Table 1: Summary of changes to mineral reserves (100% basis)
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Cu Au
(Blb) (Moz)
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Cobre Panama Project at December 2011
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Proven 3.3 1.1
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Probable 17.2 4.0
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Proven + Probable 20.4 5.2
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Addition of Balboa, Brazo and Botija Abajo
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To Probable 5.5 2.1
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Updated Project Total at December 2012
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Proven 3.3 1.1
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Probable 22.7 6.2
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Proven + Probable 25.9 7.3
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+27% +41%
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Table 2: Mineral reserve estimates by classification
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Contained Metal
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Cu Mo Au Ag Cu Mo Au Ag
kt % % g/t g/t Blb Mlb koz Moz
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Cobre Panama at December 2011
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Proven 258,000 0.57 0.010 0.14 1.6 3.3 55 1,130 13
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Probable 2,061,000 0.38 0.007 0.06 1.4 17.2 320 4,040 91
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Total 2,319,000 0.40 0.007 0.07 1.4 20.4 373 5,170 104
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Balboa, Brazo, Botija Abajo Additions
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Probable 740,000 0.34 0.003 0.09 1.1 5.5 43 2,130 27
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Total 740,000 0.34 0.003 0.09 1.1 5.5 43 2,130 27
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Total Cobre Panama at December 2012
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Proven 258,000 0.57 0.010 0.14 1.6 3.3 55 1,130 13
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Probable 2,800,000 0.37 0.006 0.07 1.3 22.7 361 6,170 118
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Total 3,058,000 0.38 0.006 0.07 1.3 25.9 416 7,300 131
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Inmet's share (1) 20.7 333 5,840 105
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(1) Inmet's attributable 80% share before consideration of delivery
obligations under the precious metals stream agreement with a subsidiary of
Franco-Nevada Corporation.
Table 3: Mine Plan (basis 100%)
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Pre-Prod Y1 Y2 Y3 Y4 Y5
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Mining
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Ore kt 52,241 58,062 58,400 58,654 58,400
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Stkpl +
Waste kt 119,037 66,477 57,767 45,431 44,986 45,437
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Total kt 119,037 118,718 115,829 103,831 103,640 103,837
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Milling
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Ore kt 52,241 58,062 58,400 58,654 58,400
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Grade
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Cu % 0.43 0.52 0.54 0.55 0.54
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Mo % 0.008 0.009 0.011 0.009 0.010
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Au g/t 0.09 0.11 0.11 0.11 0.10
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Ag g/t 1.3 1.3 1.4 1.4 1.6
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Contained Metal
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Cu kt 225 303 313 320 316
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Mo kt 4 5 6 5 6
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Au koz 159 201 207 209 186
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Ag koz 2,120 2,500 2,590 2,680 2,940
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Recoverable Metal
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Cu kt 205 280 290 296 292
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Mo kt 2 3 3 3 3
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Au koz 92 119 124 126 108
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Ag koz 1,040 1,180 1,230 1,270 1,390
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Y6 Y7 Y8 Y9 Y10 Y11-15
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Mining
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Ore kt 57,950 58,400 58,400 57,360 85,407 437,152
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Stkpl +
Waste kt 47,479 48,442 51,992 71,612 51,284 249,193
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Total kt 105,429 106,842 110,392 128,973 136,691 686,345
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Milling
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Ore kt 57,950 58,400 58,400 57,360 85,407 437,152
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Grade
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Cu % 0.56 0.57 0.54 0.47 0.45 0.3
9
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Mo % 0.010 0.009 0.009 0.008 0.008 0.007
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Au g/t 0.11 0.13 0.11 0.08 0.08 0.06
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Ag g/t 1.5 1.8 1.7 1.6 1.5 1.4
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Contained Metal
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Cu kt 326 333 314 267 383 1,692
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Mo kt 6 5 5 5 7 29
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Au koz 197 244 200 154 220 810
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Ag koz 2,800 3,330 3,220 2,880 4,070 19,250
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Recoverable Metal
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Cu kt 302 308 289 242 349 1,516
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Mo kt 3 3 3 2 4 16
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Au koz 116 154 121 87 123 403
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Ag koz 1,320 1,580 1,530 1,360 1,920 9,100
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Y16-20 Y21-25 Y26-30 Y31-35 Y35-40 Total
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Mining
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Ore kt 438,000 426,946 391,841 399,947 361,336 3,058,495
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Stkpl +
Waste kt 300,540 320,866 350,400 294,150 51,117 2,216,210
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Total kt 738,540 747,812 742,241 694,097 412,453 5,274,705
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Milling
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Ore kt 438,000 426,946 391,841 399,947 361,336 3,058,495
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Grade
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Cu % 0.38 0.35 0.33 0.33 0.33 0.38
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Mo % 0.008 0.005 0.005 0.005 0.004 0.006
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Au g/t 0.08 0.07 0.06 0.06 0.08 0.07
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Ag g/t 1.3 1.2 1.3 1.2 1.4 1.3
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Contained Metal
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Cu kt 1,678 1,476 1,289 1,331 1,191 11,756
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Mo kt 33 21 18 19 14 189
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Au koz 1,059 950 760 765 973 7,294
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Ag koz 17,700 15,890 17,000 15,690 16,230 130,970
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Recoverable Metal
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Cu kt 1,518 1,295 1,125 1,163 964 10,434
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Mo kt 18 11 10 10 6 101
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Au koz 572 487 410 443 501 3,984
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Ag koz 8,310 6,740 7,500 6,720 5,470 57,660
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Qualified Persons and Quality Assurance
Mineral reserves and resources are shown on a 100 percent basis.
The mineral reserve and resource estimates are prepared in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on November 27, 2010, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003. You will find the definitions and guidelines at www.cim.org.
Mineral resources as at August, 2012, were estimated by Robert Sim, P. Geo., of SIM Geological Inc., a qualified person under National Instrument 43-101. Mineral reserves as at December, 2012 were estimated by William Rose, P.E., of WLR Consulting, Inc., a qualified person under National Instrument 43-101.
Reserve estimates are based on the following assumptions:
-- copper price: US $2.25 per pound
-- gold price: US $1,000 per ounce
-- silver price: US $16 per ounce
-- molybdenum price: US $13.50 per pound
-- Mining costs: US $ 1.66 per tonne of ore mined, US $ 1.96 per tonne of
waste mined and
-- Milling and general and administration cost: US $ 5.27 per tonne of ore
milled, average life of mine metallurgical recoveries: 89 percent for
copper, 55 percent for gold, 44 percent for silver and 53 percent for
molybdenum.
Mineral resources include mineral reserves.
Resource grades are estimated using ordinary kriging with a nominal block size of 25 metres by 25 metres by 15 metres. Resources are limited inside a pit shell defined by a copper price of US $2.60 per pound, $1.75 per tonne mining cost and $7.02 per tonne total site operating cost, and are tabulated at a cut-off grade of 0.15 percent copper.
Table 4: Mineral resource estimates by classification
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Contained Metal
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Cu Mo Au Ag Cu Mo Au Ag
Mt % % g/t g/t Blb Mlb koz Moz
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Measured 262 0.56 0.009 0.13 1.5 3.3 54 1,118 13.0
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Indicated 3,941 0.34 0.005 0.06 1.2 29.4 472 7,888 157.2
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Total 4,203 0.35 0.006 0.07 1.3 32.7 526 9,006 170.3
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Inferred 3,686 0.23 0.004 0.04 1.0 18.3 345 4,396 115.4
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Forward looking information
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.
About Inmet
Inmet is a Canadian-based global mining company that produces copper and zinc. We have three mining operations: Cayeli (Turkey), Las Cruces (Spain) and Pyhasalmi (Finland), and own 80% of the Cobre Panama project, currently in construction. This press release is also available at www.inmetmining.com.
Contacts:
Inmet Mining Corporation
Flora Wood, Director of Investor Relations
+1 416 361 4808
Inmet Mining Corporation
Jochen Tilk, President & CEO
+416 860 3972
www.inmetmining.com