Esperanza Project Approval
Antofagasta PLC
02 July 2007
Antofagasta plc
ANTOFAGASTA BOARD APPROVES THE ESPERANZA COPPER-GOLD PROJECT
London, 2 July 2007
Antofagasta plc ('Antofagasta' or the 'Group') announces today that it has
approved the development of the Esperanza copper-gold project, located in Chile
's II Region approximately four kilometres south of the Group's El Tesoro mine.
Esperanza is a sulphide deposit which will produce copper concentrate containing
gold and silver by-product credits through a conventional milling and flotation
process. Ore throughput is expected to average 97,000 tonnes per day.
Esperanza has a 15 year mine life based on proven, probable and possible ore
reserves of 535 million tonnes with an average copper grade of 0.55% and an
average gold grade of 0.23 g/tonne, based on a cut-off grade of 0.2% equivalent
copper. The total measured, indicated and inferred sulphide resource (including
reserves) based on a cut-off grade of 0.2% copper is 1,130 million tonnes with
an average copper grade of 0.45%, an average gold grade of 0.16 g/tonne and an
average molybdenum grade of 0.011%. In addition, there is an oxide ore resource
of 119 million tonnes with an average copper grade of 0.35%, which mainly forms
part of the 170 million tonnes of overburden to be removed through
pre-stripping. The Esperanza project is adjacent to Antofagasta's Telegrafo
sulphide deposit which ultimately is expected to utilise the Esperanza plant and
facilities and extend the mine life well beyond the initial 15 year mine plan.
Capital costs are estimated at US$1.5 billion, which includes US$162 million for
pumping, pipeline and desalination facilities to enable all the project's water
needs to be supplied by seawater. First production is expected at the end of
2010 and in its first ten years of operation Esperanza is expected to produce an
annual average of approximately 700,000 tonnes of concentrate containing 195,000
tonnes of payable copper, 229,000 ounces of payable gold and 1,556,000 ounces of
payable silver.
Marcelo Awad, Chief Executive Officer of Antofagasta Minerals S.A., the Group's
mining division, commented, 'We are very pleased to announce the development of
the Esperanza project. This is an important step in the Group's growth strategy,
and when in full production Esperanza is expected to increase overall copper
output by over 40% from current levels. Esperanza is a competitive and
environmentally sound project located in Chile, the world's largest copper
producing country, where the Group has successfully developed its three existing
operations.'
The project and its timing are subject to relevant environmental approvals.
Enquiries
London Santiago
Investor relations - Antofagasta plc Antofagasta Minerals S.A.
Tel: +44 20 7808 0988 Tel: +562 377 5000
www.antofagasta.co.uk Francisco Veloso
Desmond O'Conor - doconor@antofagasta.co.uk Email: fveloso@aminerals.cl
Hussein Barma - hbarma@antofagasta.co.uk
Media enquiries - Bankside Consultants
Tel: +44 20 7367 8873
Keith Irons - keith@bankside.com
Oliver Winters - oliver.winters@bankside.com
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