Freeport reports new copper find

Freeport-McMoRan Copper & Gold (NYSE) has discovered a copper deposit about 1 km southwest of its Grasberg deposit in Irian Jaya, Indonesia.

The discovery was made at the company’s Lembah Tembaga prospect, along a 240-metre interval that averages 1.16% copper, 0.1 grams gold and 6 grams silver per tonne. The mineralization was intercepted within an igneous intrusion.

The hole was drilled at a 45 angle from a surface elevation of 3,707 metres and intersected the intrusion at 366 metres downhole from surface. At 785 metres downhole from surface, stockwork-like copper mineralization was intercepted and continues to 1,025 metres (yielding the assays above). Drilling is continuing downhole below 1,025 metres where the hole remains in mineralization. Since only one exploration hole has been drilled into this intrusion, Freeport is unable to predict the extent of the mineralization. But if a commercial deposit is present, the company will have the option of mining Lembah Tembaga through the possible extension of the Grasberg open pit or underground through block caving.

The company is exploring several prospects within its 9-million-acre area in Irian Jaya.