Inmet Mining Releases First Resource Estimate on Balboa Discovery at Cobre Panama and Highlights Significant Grades Down Plunge
05.03.2012 | Marketwire
Discovery Adds 6 Billion Copper Equivalent Pounds to Indicated Resource, and 2.6 Billion Copper Equivalent Pounds to InferredTORONTO, CANADA -- (Marketwire) -- 03/05/12 -- Inmet Mining Corporation (Inmet) (TSX: IMN) is pleased to announce an initial independent resource estimate and recent drill results for the Balboa copper-gold porphyry discovery originally announced March 8, 2011. The deposit is located on the Cobre Panama property in central Panama and is owned by Minera Panama S.A. (MPSA).
The addition of the Balboa resource increases Cobre Panama's total contained copper in the Measured and Indicated categories by 19% or 4.8 billion pounds to 30.6 billion pounds. Measured and Indicated contained gold increased by 29% or 1.9 million ounces to 8.4 million ounces. In the Inferred category contained copper increases by 13% or 2.1 billion pounds to 18.7 billion pounds. Gold Inferred resources increased by 20% or 0.8 million ounces to 4.8 million ounces. With this addition Cobre Panama further establishes itself one of the world's largest undeveloped copper-gold porphyry systems. While average copper grades at Balboa are similar to the resource grades for the other Cobre Panama deposits, the gold grades are 50% higher than the average resource grades.
Jochen Tilk, President and CEO of Inmet commented, 'The Balboa discovery has significantly increased the resource base for Cobre Panama already, and we are confident that further metallurgical work will allow us to include a meaningful portion of this resource as reserves.'
Frank Balint, Vice President Corporate Development of Inmet commented, 'We are very pleased with the discovery of Balboa resulting from testing one of our first targets outside of the known mineralization on the property and bringing the target into resources in just over a year. With two large airborne geophysical anomalies receiving attention in this year's drill program, we expect that the resources outlined at Balboa could eventually join with the west end of the Colina deposit. We eagerly look forward to testing the additional targets and further expanding the property resources.'
Table 1: Indicated Resource - Balboa
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Contained Metal
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Cut-off Million Cu Mo Au Ag CuEq Cu Mo Au Ag CuEq
(Cu %) tonnes % % g/t g/t %(1) Blb Mlb koz Moz Blb
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0.10 729 0.32 0.002 0.08 1.3 0.40 5.2 29 1,987 30.2 6.4
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0.15 602 0.36 0.002 0.10 1.4 0.45 4.8 24 1,883 27.5 6.0
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0.20 481 0.41 0.002 0.11 1.6 0.51 4.4 19 1,755 24.1 5.4
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0.25 387 0.46 0.002 0.13 1.7 0.57 3.9 15 1,625 21.2 4.9
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0.30 310 0.51 0.002 0.15 1.8 0.63 3.5 12 1,488 18.4 4.3
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0.35 248 0.55 0.002 0.17 2.0 0.69 3.0 9 1,353 15.9 3.8
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0.40 198 0.60 0.002 0.19 2.1 0.75 2.6 7 1,224 13.7 3.3
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Table 2: Inferred Resource - Balboa
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Contained Metal
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Cut-off Million Cu Mo Au Ag CuEq Cu Mo Au Ag CuEq
(Cu %) tonnes % % g/t g/t %(1) Blb Mlb koz Moz Blb
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0.10 418 0.26 0.002 0.07 1.2 0.32 2.4 18 885 15.6 3.0
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0.15 301 0.31 0.002 0.08 1.3 0.39 2.1 15 766 12.9 2.6
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0.20 218 0.36 0.002 0.09 1.5 0.45 1.7 11 656 10.6 2.2
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0.25 160 0.42 0.002 0.11 1.7 0.52 1.5 8 566 8.8 1.8
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0.30 120 0.47 0.002 0.13 1.9 0.58 1.2 6 489 7.2 1.5
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0.35 92 0.51 0.002 0.14 2.1 0.64 1.0 4 427 6.1 1.3
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0.40 70 0.56 0.002 0.17 2.3 0.70 0.9 3 370 5.1 1.1
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(1) Copper Equivalent is calculated using US $2.25/lb Cu, US $1000/oz Au, US
$13.50/lb Mo and US $15.00/oz Ag and is not adjusted for metallurgical
recoveries as these remain uncertain. The formula used is as follows Cu
Eq = Cu% + (Mo% x 6.0) + (Au g/t x 0.65) + (Ag g/t x 0.01).
Table 3: Summary impact of Balboa to Cobre Panama Project contained copper,
gold and copper equivalent
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Cu Au CuEq
(blbs) (mozs) (blbs)
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Cobre Panama Project - March 2010
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Measured + Indicated 25.8 6.5 32.4
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Inferred 16.6 4.0 21.5
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Balboa - March 2012
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Indicated 4.8 1.9 6.0
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Inferred 2.1 0.8 2.6
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Updated Project Total - March 2012
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Measured + Indicated 30.6 8.4 38.4
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+19% +29% +18%
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Inferred 18.7 4.8 24.1
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+13% +20% +12%
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Technical work continues on metallurgical recoveries, pit design and other engineering to allow Balboa to be converted to reserves and ultimately included in the mine plan. We expect to be able to provide an update on this work in the second half of this year.
The initial resource estimate has been calculated based on 102 drill holes with the core of the deposit drilled on a 100m x 100m grid pattern. Indicated and Inferred resources for Balboa, at a range of copper cutoffs, are tabulated in Table 1 and 2 above. The 0.15% Copper cutoff grade represents the current economic cutoff grade for the Cobre Panama Project.
Recent Drill Results
Recent drill results testing the northwest down dip extension of Balboa returned high grades over significant widths: CC11-116 intersected 0.85% Cu and 0.26 g/t Au over 241 metres starting at a depth of 507.9 metres and CC11-095 intersected 0.78% Cu and 0.31 g/t Au over 237 metres starting at a depth of 461 metres. These intersections suggest that the high grade core of the Balboa Deposit remains open to the northwest and increased grades suggest a high potential for discovering a high grade root or feeder in this area. These higher grade zones are within broader mineralized zones assaying 0.57% Cu and 0.17 g/t Au over 409 metres and 0.52% Cu and 0.19 g/t Au over 444 metres, respectively. Please see plan map in Figure 1 for hole locations and the cross section in Figure 2 for the geometry of the higher grade core.
To view 'Figure 1: Plan Map - Balboa Deposit and Cobre Panama Deposits', please visit the following link:
http://media3.marketwire.com/docs/imnet_figure1.pdf.
To view 'Figure 2: Balboa Section at 135 Degrees', please visit the following link:
http://media3.marketwire.com/docs/imnet_figure2.pdf.
Drilling continues at the project with eight rigs in service. A total of 26,000 metres of drilling is planned for the Balboa northwest extension as well as testing 15 new discrete geophysical and geochemical targets elsewhere on the concession that have to date never been drill tested.
Qualified Persons and Quality Assurance
Mineral resources have been prepared in accordance with the definitions and guidelines adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (called the CIM definitions and guidelines), and according to National Instrument 43-101 of the Canadian Securities Administrators.
Mineral resources for the Balboa Deposit were estimated by Robert Sim, P. Geo., of SIM Geological Inc. a qualified person under National Instrument 43-101. Grade estimates are made using ordinary kriging with a nominal block size of 25x25x15 metres. Resources are limited inside a pit shell generated about copper grades in the model using a 40 degree pit slope, $1.75 /t mining cost, $7.02 /t total site cost and a copper price of $2.60 /lb. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Drill core samples from the Balboa zone were assayed at ALS Chemex Laboratories in Lima, Peru (ISO 9001:2000 Certified). Sample preparation is done at site. Duplicate and standard samples are inserted into the sample stream to provide quality control. Copper assays are by AAS after a four-acid digestion (HF-HNO3-HClO4-HCL). Gold analyses are by fire assay and AAS analysis on a 30 gram sample. Silver and molybdenum are included as part of a multi-element ICP-AES scan.
Mr Colin Burge, P.Geo., Inmet's Regional Exploration Manager, Central America and on-site technical manager for MPSA is a qualified person as defined by National Instrument 43-101, and has supervised the drill program and QA/QC procedures, reviewed and verified the information and has reviewed the technical content of this press release.
Core from the Balboa Discovery will be on display at the 2012 PDAC Core Shack (Mineral Panama S.A.), booth number 5023, on Tuesday, March 6 from 10:00 am to 5:30 pm, and Wednesday, March 7 from 9:00 am to 12 noon. The Core Shack will be held on Level 700, South Building of the Metro Toronto Convention Centre. Inmet invites all shareholders to visit the Core Shack and meet the Company's exploration team, and to visit Inmet's booth at the Investor's Exchange, booth number 2904.
About Cobre Panama (Reserves and Resources are as per 2010 FEED study and without Balboa)
The Cobre Panama project hosts Measured and Indicated mineral resources of 3.27 billion tonnes grading 0.36 percent copper, 0.06 grams per tonne gold and 0.007 percent molybdenum. These mineral resources include proven and probable mineral reserves of 2.14 billion tonnes grading 0.41 percent copper 0.07 grams per tonne of gold and 0.008 percent molybdenum. Mineral resources are quoted at a cut-off grade of 0.15 percent copper (see Table 5 below). Mineral resources that are not mineral reserves do not have demonstrated economic viability.
We expect Cobre Panama to produce 289,000 tonnes of copper and 108,000 ounces of gold per year (open pit) during the first 16 years of a 30 year mine life. Project details including estimated capital and operating costs may be found in the 2010 Cobre Panama Front End Engineering and Design Study Executive Summary, the March 31, 2010 Mina de Cobre Panama National Instrument 43-101 Technical Report and the project Environmental and Social Impact Assessment Executive Summary available at www.inmetmining.com.
Mineral resources were estimated by Robert Sim, P. Geo., of SIM Geological Inc. and Bruce Davis, Ph.D., Fellow of the AusIMM (FAusIMM), BD Resource Consulting Inc., both qualified persons under National Instrument 43-101.
Mineral reserves were estimated by William Rose, P.E., of WLR Consulting, Inc., a qualified person under National Instrument 43-101.
Table 4: Mineral reserve estimates by classification
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Contained Metal
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Cu Mo Au Ag CuEq Cu Mo Au Ag CuEq
Mt % % g/t g/t %(1) Blb Mlb koz Moz Blb
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Proven 245 0.59 0.010 0.14 1.61 0.76 3.2 53 1,108 12.7 4.1
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Probable 1,897 0.39 0.007 0.06 1.41 0.49 16.4 306 3,848 86.0 20.3
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Total 2,143 0.41 0.008 0.07 1.43 0.52 19.6 362 4,956 98.7 24.6
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(1) Copper Equivalent is calculated using US $2.25/lb Cu, US $1000/oz Au, US
$13.50/lb Mo and US $15.00/oz Ag and is not adjusted for metallurgical
recoveries as these remain uncertain. The formula used is as follows Cu
Eq = Cu% + (Mo% x 6.0) + (Au g/t x 0.65) + (Ag g/t x 0.01).
These reserves are based on the following assumptions:
Metal prices Mining costs
Copper (Cu): US $2.00 per US $1.33 per tonne of material mined
pound
Gold (Au): US $750 per ounce Milling and general and administration costs
combined
Silver (Ag): US $12.50 per
ounce
US $5.37 per tonne of ore milled
Molybdenum (Mo): US $12.00
per pound
Table 5: Mineral resource estimates by classification
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Contained Metal
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Cu Mo Au Ag CuEq Cu Mo Au Ag CuEq
Mt % % g/t g/t %(1) Blb Mlb koz Moz Blb
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Measured 261 0.56 0.009 0.13 1.50 0.71 3.2 53 1,112 12.9 4.1
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Indicated 3,010 0.34 0.006 0.06 1.20 0.43 22.5 421 5,420 120.3 28.3
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Total 3,271 0.36 0.007 0.06 1.30 0.45 25.8 474 6,533 133.3 32.4
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Inferred 3,194 0.24 0.005 0.04 1.00 0.31 16.6 326 4,003 103.1 21.5
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(1) Copper Equivalent is calculated using US $2.25/lb Cu, US $1000/oz Au, US
$13.50/lb Mo and US $15.00/oz Ag and is not adjusted for metallurgical
recoveries as these remain uncertain. The formula used is as follows Cu
Eq = Cu% + (Mo% x 6.0) + (Au g/t x 0.65) + (Ag g/t x 0.01).
Mineral resources include mineral reserves. 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 $2.30 per pound; the same operating costs used for reserves, and are tabulated at a cut-off grade of 0.15 percent copper. Mineral resources that are not mineral reserves do not have demonstrated economic viability. (NI 43-101 Report - executed May 3rd, 2010)
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 100% of the Cobre Panama development project. This press release is also available at www.inmetmining.com.
Contacts:
Inmet Mining Corporation
Flora Wood
Director of Investor Relations
+1 416 361 4808