Name and Location
Lumwana copper project, Zambia.

Project Description
Lumwana is covered by LML-49, a 1 355-km² mining licence that hosts two large undeveloped copper/cobalt/uranium deposits - Malundwe and Chimiwungo - situated 7 km apart and 25 exploration prospects.

The mine development plan envisages that the Malundwe and Chimiwungo deposits will be mined sequentially by openpit mining methods. The orebodies are 95% sulphide and very consistent, so large-scale bulk-mining methods will be employed. Five pits in total will be developed with the deepest - Chimiwungo South - going down to 287 m.

Sulphide ore will be processed on site by conventional crushing, grinding and flotation to produce copper concentrates for shipment to off-site smelters. Metallurgical testwork has indicated that recoveries of greater than 95% copper, producing average concentrate grades of 43,3% copper for Malundwe and 29,5% copper for Chimiwungo, are achievable.

The flotation plant will have a design capacity to treat at least 20-million tons a year of ore and will, in the first six-year period, produce in concentrate 169 000 t/y of copper metal. The life-of-mine production will average 156 000 t/y of copper metal based on the 20-million tons a year throughput.

Value
Total preproduction capital expenditure is expected to be $814-million.

Duration
Project construction started in early 2006.

In July 2008, an electrical fire incident delayed commissioning and the start of copper concentrate production from the project. Commissioning is expected in December 2008, with full production expected in 2009.

Client
Equinox Minerals owns 100% of the Lumwana copper project.

Key Contracts and Suppliers
Ausenco Bateman joint venture (engineering, procurement and construction (EPC)).

Latest Developments
Equinox has accepted handover of the process plant and other related infrastructure at the Lumwana project, reaching practical completion and attaining the final milestone under the EPC contract.

Equinox reported on October 7, 2008 that the crushing of material at the primary crusher had started with the 4,5-km conveying circuit transporting crushed material to the fine-ore stockpile at the copper concentrator. Plant commissioning will now start and plant ramp-up will take place over the coming months.

Concentrate production has started, with shippable quantities of commercial grade concentrate from December 2008.

On Budget and on Time?
An electrical fire incident at the project in July 2008 caused damage to the 20-MVA transformer and adjacent 11-kV substation subsequently delaying commissioning and the start of copper concentrate production from the project.

Total preproduction capital expenditure is expected to be $814-million, compared with the budget of $758-million estimated prior to the transformer incident, which delayed the project for four months.

Contact Details for Project Information
Equinox Minerals, tel +61 8 9322 3318,
fax +61 8 9324 1195
or email: equinox@equinoxminerals.com.
Bateman Minerals & Metals,
tel +27 11 899 9111 or
email basemetals@BatemanEngineering.com.