First Quantum cuts high-grade at Nkana

Vancouver — A 38-hole underground drill program by mid-tier base metal producer First Quantum Minerals (FM-T) has cut up to 3.55% copper and 0.07% cobalt over 140 metres at its Nkana property in Zambia.

Aimed at upgrading current resources to the reserve category, the holes were drilled in a fan pattern from the 3,360 ft. level and targeted the B, C and D ore zones. The latest results extend the strike length of the mineralized bodies to 1 km, over a vertical height of 200 metres. Additional highlights from the program include:

• Hole 2 — 120 metres grading 3.15% copper and 0.08% cobalt,
• Hole 25 — 50 metres grading 3.9% copper and 0.1% cobalt and
• Hole 27 — 135 metres grading 3.2% copper and 0.09% cobalt.

“The drill results received to date show the high-quality nature of the Nkana ore bodies,” says Alan Stephens, First Quantum’s VP of exploration. “Long intersections of high-grade copper will translate into a substantial reclassification of resources to the reserve category.”

At last count, fully and partly developed reserves at Nkana stood at 14 million tonnes grading 2.1% copper and 0.11% cobalt, while undeveloped reserves top 61 million tonnes grading 2.32% copper and 0.14% cobalt.

Based on the latest round of drilling, a new resource/reserve update is expected shortly.

“The ore bodies remain open to the north down-plunge,” add Stephens. “A second round of drilling will provide further definition as well as test for new mineralization to the west.”

First Quantum is coming off a record financial performance in 2000, based primarily on its operations in the Zambian copper belt. Driving the surge was the acquisition of the Nkana and Mufulira copper mines with partner Swiss-based Glencore International (on a 44/46 basis).

The deal required that the pair pay US$20 million up-front. They must, in addition, pay US$23 million in five equal, annual installments, starting in 2003, and commit to US$159 million in capital expenditures over the next three years. Glencore has the right to market any production from the joint venture while First Quantum manages daily operations.

The new operations support First Quantum’s producing Bwana Mkubwa tailings recovery project in the nearby city of Ndola. The additions are expected to quadruple the company’s attributable output this year and increase it to 80,000 tonnes annually by 2004.

At Mufulira, reserves stand at 27 million tonnes grading 3.04% copper within an overall resource of 68 million tonnes averaging 3.09% copper. Bwana Mkubwa holds reserves of 5.7 million tonnes grading 0.73% copper.