Name and Location
Lumwana copper mine expansion project, North West province, Zambia.

Project Description
Lumwana is a major copper mine, comprising the Malundwe and Chimiwungo deposits, with a design capacity of over 20-million tons of ore a year.

Equinox Minerals is currently undertaking a first-stage feasibility study to expand the mine.

When this study started in early 2010, it was based on the resources defined at that time and was aimed at evaluating a plant expansion from the Lumwana plant nameplate capacity of 20-million tons a year of ore to an increased capacity of 35-million tons a year. However, as a consequence of the potential for a substantial increase in the Chimiwungo resource and the upward shift in the outlook for copper prices, the study is now being conducted on the basis of a Chimiwungo mining inventory of 1-billion to 1,5-billion tons a year at 0,6% copper. The assumed mining inventory would support a much larger scale operation with a throughput rate of 45-million tons a year of ore. Under the mining inventory assumption, Lumwana would have a mine life in the range of 27 to 37 years at a 45-million-ton-a-year processing rate.

An expanded copper concentrator processing 45-million tons a year of ore would be expected to produce an estimated 260 000 t/y of copper in concentrate.

Value
The expansion of the concentrator would essentially be a replication of the existing Lumwana concentrator, with preliminary capital of $450-million to $550-million for the plant expansion.

Duration
The first-stage feasibility study is due to be completed by the second quarter of 2011.

The expansion investment decision is expected in early 2012, with expanded production expected to start by 2015.

Client
Equinox Minerals.

Key Contracts and Suppliers
None stated

Latest Developments
Subsequent to the discovery of the Chimiwungo East shoot at Lumwana, in early 2010, a continuous six-rig drilling programme of 45 000 m has been conducted to delineate the degree of copper mineralisation at Chimiwungo East and down-plunge on the Chimiwungo main shoot. This drilling programme is ongoing, using eight rigs over 12 months for a planned additional 110 000 m.

The results of the 2010 drill programme suggest the potential to substantially increase the previously stated Chimiwungo resource within the pits being proven mineral reserves of 82-million tons at 0,7% copper, probable mineral reserves of 119-million tons at 0,6% copper and inferred mineral resources of 413-million tons at 0,6% copper.

Pit optimisation studies using the new drill data and applying various long-term pricing scenarios that are more consistent with current copper price expectations indicated scope to extend the Chimiwungo pit substantially to the south and east, potentially increasing the scale of the Chimiwungo resource in the range of 1-billion tons to 1,5-billion tons of copper ore at a similar grade to the current resource.

The 2010 mineral reserves and resources statement is expected to be released in the second quarter of 2011. The 2011 drill programme will focus on bringing the Chimiwungo East shoot and the down-plunge extension of the Chimiwungo main shoot into the mineral resources and reserves category.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Equinox Minerals, tel +61 8 9322 3318, fax +61 8 9324 1195 or  email equinox@equinoxminerals.com