TORONTO, April 25 /CNW/ --
TORONTO, April 25 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol: 'EQN') ('Equinox' or the 'Company') announced
today its preliminary production results for the quarter ended March
31, 2011 ('Q1-2011') from its 100% owned Lumwana Copper Mine
('Lumwana') in Zambia.
Ore mined for the quarter was 4.29 million tonnes, with 4.85 million
tonnes of ore milled at a head grade of 0.66% copper and recoveries of
89.2% copper for production of 28,621 tonnes (63 M lbs).
Mined ore grade of 0.61% Cu was down on 4Q10 (0.69% Cu) as a result of
the majority of ore being sourced from Stage 4 of the Malundwe Pit
during the quarter. Grades for the remainder of the year are expected
to increase as the percentage of Stage 3 ore mined increases with the
average 2011 grade to be around 4Q10 levels.
Material movements of 19.4mt showed a significant increase (+29%) on the
corresponding quarter for 2010, which is the relevant comparison due to
the seasonal impact of the wet season on the operation. Key wet season
management initiatives included the sheeting of haul roads in and out
of the pit with basalt, increased pumping capacity and hot seat change
overs.
Increased tyre wear during the quarter resulted in lower than expected
fleet availability which hampered mining rates during the quarter.
While tyre wear is expected to be higher during the wet season, it will
reduce in the coming months. Productivity during the wetter conditions
was also lower than usual and impacted the material movement.
Plant throughput for the quarter was 4.85mt which is within 3% of design
capacity. Copper recoveries of 89.2% exceeded expectations and were in
line with 4Q10 despite a drop in feed grade to 0.66% (4Q10: 0.69%).
C1 operating costs were $1.93 per pound which was an increase from Q410
($1.64), due to the impact of lower head grades and resulting lower
production and higher mining costs during the wet weather. Increased
tyre wear and above budget diesel costs were the major reasons for
increased unit mining costs during the quarter.
Sales for the quarter were impacted by operating issues at both the
Chambishi Copper Smelter Limited operated by China Non-ferrous Metal
Mining and Yunnan Copper (oxygen plant failure), and the Konkola Copper
Mines Plc smelter at Nchanga on the Zambian Copperbelt (foaming
incident).
Management reaffirms the production guidance for Lumwana for the 2011
year will be 145,000 tonnes of copper metal in concentrates at an
average estimated C1 operating cost of $1.45 per pound. Equinox however
notes that industry wide cost pressure such as diesel, consumables and
expatriate labour present risks to cost guidance.
Lumwana Mine Production Statistics
Production Measure Q1 Q4 Q3 Q2 Q1
Statistic 2011 2010 2010 2010 2010
Total Tonnes 19.37 28.52 30.37 26.60 14.99
material (m)
movement
Ore mined Tonnes 4.29 5.22 4.18 5.09 3.09
(m)
Ore Tonnes 4.85 5.48 4.94 4.57 3.59
processed (m)
Head grade Copper 0.66 0.69 0.87 1.02 0.93
%
Copper Copper 89 90 89 94 92
recovery %
Concentrate Copper 39 37 41 44 44
grade %
Copper in Tonnes 28,621 33,939 38,445 43,835 30,471
concentrate
Copper in Pounds 63.10 74.82 84.76 96.64 67.18
concentrate (m)
Copper sold Tonnes 24,125 33,421 35,784 35,929 26,596
C1 Per $1.93 $1.64 $1.21 $1.19 $1.60
operating Pound
cost((1))
Equinox President and Chief Executive Officer Craig Williams said that
'Whilst copper in concentrate was lower than Q1-2010 it is pleasing to
see the strong mining and process figures in this first quarter of
2011. We reiterate our 2011 production guidance of 145,000 tonnes of
copper in concentrate at a C1 operating cost of $1.45/lb.'
About Equinox
Equinox Minerals Limited is an international mining company dual-listed
on the Canadian (Toronto) and Australian stock exchanges.
The Company is currently focused on operating its 100% owned large scale
Lumwana Copper Mine in Zambia and construction of the Jabal Sayid
Copper-Gold project in the Kingdom of Saudi Arabia.
Equinox acquired the Lumwana project in 1999 and following nearly 10
years of feasibility, financing and construction, commissioned the
mine, plant and infrastructure in December 2008. Situated 220
kilometres northwest of the Zambian Copperbelt, Lumwana is now a major
copper mine which has established Equinox as one of the world's top 20
copper producing companies.
Equinox recently acquired its interest in the Jabal Sayid project (70%
owned; Equinox is in the process of acquiring the remaining 30%) as the
project entered the construction phase with first production scheduled
for 2012. Jabal Sayid is located within the Arabian Shield minerals
province, 350 kilometres north-east of the Red Sea port city of Jeddah,
the commercial capital of Saudi Arabia, and 120 kilometres south-east
of Medina.
For information on Equinox and technical details on the Lumwana and
Jabal Sayid projects please refer to the company website at www.equinoxminerals.com
_____________________________________________________________________
|Cautionary Notes |
| |
|Forward-Looking Statements |
|Certain information contained or incorporated by reference in this |
|press release include forward-looking statements, which may include, |
|but is not limited to, statements with respect to the future |
|financial or operating performances of Equinox, its subsidiaries and |
|their respective projects, the timing and amount of estimated future |
|production, estimated costs of future production, capital, operating |
|and exploration expenditures, costs and timing of the expansion of |
|the Lumwana copper mine in Zambia and development of the Jabal Sayid |
|copper-gold project in the Kingdom of Saudi Arabia, the future price |
|copper and uranium, the estimation of mineral reserves and mineral |
|resources, the realization of mineral reserve estimates, the costs of|
|Equinox's hedging policy, costs and timing of future exploration, |
|requirements for additional capital, government regulation of |
|exploration, development and mining operations, environmental risks, |
|reclamation and rehabilitation expenses, title disputes or claims, |
|and limitations of insurance coverage. All statements, other than |
|statements of historical fact, are forward-looking statements. |
|Forward-looking statements can often, but not always, be identified |
|by the use of words such as 'plans', 'expects', 'budget', |
|'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', |
|'predicts', 'potential', 'continue' or 'believes', or variations |
|(including negative variations) of such words; or statements that |
|certain actions, events or results 'may', 'could', 'would', 'should',|
|'might', 'potential to', or 'will' be taken, occur or be achieved or |
|other similar expressions concerning matters that are not historical |
|facts. The purpose of forward-looking statements is to provide the |
|reader with information about management's expectations and plans. |
|Readers are cautioned that forward-looking statements are not |
|guarantees of future performance. |
| |
|Forward-looking statements are necessarily based on a number of |
|factors, estimates and assumptions that, while considered reasonable |
|by Equinox as of the date of such statements, are inherently subject |
|to significant business, economic and competitive uncertainties and |
|contingencies. Such factors, estimates and assumptions of the Company|
|contained in this news release include, but are not limited to, |
|anticipated financial or operating performances of Equinox, its |
|subsidiaries and their respective projects; future prices of copper |
|and uranium; the estimation of mineral reserves and resources; the |
|realization of mineral reserve estimates; the timing and amount of |
|estimated future production; estimated costs of future production; |
|the grade, quality and content of the concentrate produced; the sale |
|of production and the performance of offtakers; capital, operating |
|and exploration expenditures; costs and timing of development and |
|expansion of Lumwana and Jabal Sayid; the costs of Equinox's hedging |
|policy; the costs and timing of future exploration; requirements for |
|additional capital; government regulation of exploration, development|
|and mining operations; environmental risks; reclamation and |
|rehabilitation expenses; title disputes or claims; there being no |
|significant risks relating to the Company's mining operations, |
|including political risks and instability and risks related to |
|international operations; and limitations of insurance coverage. |
|While the Company considers these assumptions to be reasonable based |
|on information currently available to it, they may prove to be |
|incorrect. |
| |
|Readers are cautioned that forward-looking statements involve known |
|and unknown risks, uncertainties and other factors which may cause |
|the actual results, performance or achievements of Equinox and/or its|
|subsidiaries to differ materially from those expressed or implied in |
|the forward-looking statements, including the risk that the Offer |
|will not be completed for any reason. Certain of these risks and |
|uncertainties are described in more detail in the section entitled |
|'Risks Factors' in the Company's Annual Information Form dated March |
|14, 2011 and in the Company's most recently filed Management's |
|Discussion and Analysis, to which readers are referred and which are |
|incorporated by reference in this news release. The Company's Annual |
|Information Form and its most recently filed Management's Discussion |
|and Analysis are available on SEDAR at |
|www.sedar.com and on the Company's|
|website at |
|www.equinoxminerals.com.|
| |
|Although Equinox has attempted to identify statements containing |
|important factors that could cause actual actions, events or results |
|to differ materially from those described in forward-looking |
|information, there may be other factors that cause actions, events or|
|results to differ from those anticipated, estimated or intended. |
|Forward-looking information contained herein are made as of the date |
|of this document based on the opinions and estimates of management on|
|the date statements containing such forward looking information are |
|made, and Equinox disclaims any obligation to update any |
|forward-looking information, whether as a result of new information, |
|estimates or opinions, future events or results or otherwise, except |
|as required by law. There can be no assurance that forward-looking |
|information will prove to be accurate, as actual results and future |
|events could differ materially from those anticipated in such |
|information. Accordingly, readers should not place undue reliance on |
|forward looking information. |
|_____________________________________________________________________|
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