Xstrata Copper announces a revised Mineral Resource estimate for the Tampakan copper gold project in the Philippines with significantly improved confidence levels, including a 25% increase in Measured tonnes and a 12% increase in Measured and Indicated tonnes.
The new Measured, Indicated and Inferred Resource estimate totals 2.4 billion tonnes at a grade of 0.6% copper and 0.2 grams per tonne gold and contains 13.5 million tonnes of copper and 15.8 million ounces of gold, using a 0.3% copper cut off grade. The Mineral Resource also contains estimated average grades for molybdenum of 70 parts per million.
The total tonnage of the Mineral Resource has increased by 8%, compared to the 2007 estimate, reflecting increased metal price assumptions. The significant increases in Measured and Indicated tonnes are the result of further drilling work comprising 41 drill holes totaling 14,900 meters.
Mr Peter Forrestal Xstrata Copper executive GM of Project Evaluation said that the latest results confirm Tampakan's position as one of the largest undeveloped copper deposits in South East Asia and its emerging development potential.
Mr Forrestal said that “During our evaluation of the Tampakan project we have increased the size and improved the confidence levels of the Mineral Resource, confirming the potential of the project to make a substantial contribution to Xstrata Copper's organic growth profile. Our current focus is on completing the Feasibility Study during the H1 of 2010 and on managing extensive specialist studies and stakeholder engagement activities for the Environmental and Social Impact Assessment which we expect to complete by the end of 2010. We are committed to advancing the Tampakan project in genuine partnership with our JV partners, the Philippine government and authorities, local institutions and our neighboring communities.”
This is the second resource estimate published by Xstrata Copper since it assumed management control of Tampakan in March 2007 through its Philippines based affiliate Sagittarius Mines Inc. The previous Mineral Resource estimate of 2.2 billion tonnes at 0.6% copper using the same cut off grade was published in December 2007. The Pre Feasibility Study into the development of the Tampakan Project completed earlier 2009, outlined a potential mining operation based on:
1. An annual average copper production of 340,000 tonnes per annum and 350,000 ounces per annum of gold, based on a 20 year operation.
2. Mill recovery rates of 83% to 90% for copper and 60 % to 80% for gold with a copper concentrate grade of 37% to 34%.
3. An initial stage one capital outlay of USD 5.2 billion including provision for associated infrastructure.
4. A potential schedule for development with commissioning and first production in early 2016.
This Mineral Resource update provides additional support for the project’s scale and development potential, for further evaluation during the Feasibility Study program.
Tampakan Measured, Indicated & Inferred Mineral Resources* as of 30 September 2009
Mineral Resources
| | Measured | Indicated | Inferred | Total |
| Tonnes (Mt) | 780 | 890 | 700 | 2400 |
| Copper (%) | 0.71 | 0.55 | 0.5 | 0.6 |
| Gold (g/t) | 0.28 | 0.19 | 0.2 | 0.2 |
| Molybdenum (ppm) | 81 | 69 | 60 | 70 |
| Copper contained (kt) | 5500 | 4900 | 3100 | 13500 |
| Gold contained (kOzs) | 7000 | 5500 | 3300 | 15800 |