FQM.L Regulatory News (FQM)

13 May 2005 07:00

First Quantum Minerals Ld13 May 2005 NEWS RELEASE 05-07 May 12, 2005 www.first-quantum.com FIRST QUANTUM MINERALS UPDATES COPPER RESOURCE AT FRONTIER PROJECT -1.88 MILLION TONNES OF CONTAINED COPPER IN MEASURED & INDICATED RESOURCE- -PROJECT ENGINEERING STUDY NEARS COMPLETION- First Quantum Minerals Ltd. (TSX Symbol "FM", LSE Symbol "FQM") is pleased toannounce the results of a new independent copper resource estimate completed atits wholly owned Frontier Project (formerly Lufua), Haut Katanga Province,Democratic Republic of Congo (DRC) (see attached map). First Quantum hasconducted three phases of reverse circulation drilling, and two phases ofdiamond drilling since shallow, first pass air core drilling initially outlinedthe Frontier deposit in 2002. This resource estimate is based on 252 drill holes(33,451.7 metres). A previous resource estimate for this deposit was released onMay 31, 2004. Frontier Copper Resource At a 0.50% total copper cut off, the measured and indicated copper resource isestimated to be as follows Total Acid Soluble Total Total Category Ore Copper Copper Contained Soluble (tonnes) Grade Grade Copper Copper (%) (%) (tonnes) (tonnes)Sulphide Measured 91,526,100 1.17 - 1,070,850 -Indicated 47,960,600 1.14 - 546,750 - Total Sulphide 139,486,700 1.16 - 1,617,600 - Oxide/Mixed Measured 17,388,100 1.24 0.87 215,610 151,280Indicated 3,910,200 1.33 0.98 52,000 38,320 Total Oxide/Mixed 21,298,300 1.26 0.89 267,610 189,600 Measured 108,914,200 1.18 - 1,285,190 -Indicated 51,870,800 1.15 - 596,510 - Total Measured& Indicated 160,785,000 1.17 - 1,881,700 189,600 Frontier Copper Resource (cont) In addition, inferred copper resources for sulphide and oxide / mixed materialare estimated to be as follows Total Acid Soluble Total Total Copper Copper Contained Soluble Ore Grade Grade Copper CopperCategory (tonnes) (%) (%) (tonnes) (tonnes) Inferred Sulphide 34,300,000 1.05 - 360,150 -Oxide/Mixed 318,000 1.12 0.80 3,560 2,540 Total Inferred 34,618,000 1.05 - 363,710 2,540 Frontier Cobalt Resource A discrete cobalt inferred resource that occurs within the measured andindicated copper resource stated above, and is not additive to it, has beencalculated. At a 0.5% total copper cut off and 0.025% total cobalt cut off, this resource isestimated to be as follows; Acid Contained Acid Soluble Total Total Contained Soluble Contained Total Copper Copper Cobalt Total Copper Cobalt Grade Ore Grade Grade Copper ( tonnes) (tonnes) (%)Category (tonnes) (%) (%) (tonnes) Inferred Sulphide 5,193,700 1.25 - 0.054 64,920 - 2,800Oxide/Mixed 2,287,300 1.20 0.65 0.085 27,450 14,870 1,940 Total Inferred 7,481,000 1.23 - 0.063 92,370 14,870 4,740 Mineralization at Frontier is hosted predominantly within altered and veinedKatangan metapelites, interpreted to be contained within a shallow southeastwardly plunging, north eastward dipping, overturned anticline, with thethickest mineralization developed in the nose region of this fold. Oxidationextends to variable depths across the deposit, and is strongly influenced bypost mineral faulting. Higher grade cobalt mineralization is preferentiallydeveloped on the upper limb of the anticline. The deposit is open down plunge tothe southeast, and the lower limb is open down dip to the northeast. Clive Newall, President commented, " This updated estimate represents an 84%increase in the overall measured and indicated contained total copper resource,compared to last year's figures. Virtually all of this increase is a result of aquadrupling of the measured sulphide category resource, with the indicatedsulphide category resource also increasing by 14%. The oxide and mixed categoryresource is essentially unchanged, but 80% is now classed as measured resource,compared to 64% previously. The cobalt resource classification has been reducedto inferred from indicated; while the tonnage of this resource increased, thegrade has declined significantly, resulting in a 50% reduction in containedcobalt tonnage. Further drilling will take place during 2005 to convert some ofthe substantial inferred copper resource tonnage to indicated category, and tocontinue the exploration of the deposit. Environmental assessment, hydrologicaland geotechnical studies are underway at Frontier, and the project engineeringstudy is nearing completion, with publication expected in the second quarter of2005. " Frontier is located near the town of Sakania in the DRC, within 2 km of theZambian border, and the paved highway that parallels it, roughly equidistantbetween the city of Ndola (35 kilometres) to the southeast and the Mopani CopperMines smelter at Mufulira (30 kilometres) to the northwest. It is alsoapproximately 45 kilometres from First Quantum's Bwana Mkubwa SX/EW facility.The main railway from the Copperbelt in Zambia to Lubumbashi in the DRC passeswithin 5 kilometres of the property. The Frontier resource estimate is based on a total of 44 diamond drill holes(12,369.7 metres) and 91reverse circulation (RC) drill holes (15,757 metres),for which total copper, acid soluble copper and total cobalt assays areavailable. In addition, a total of 30 shallow (Phase I) RC holes (1,584 metres)and 87 shallow air core drill holes (3,741 metres) for which only total copperand acid soluble assays are available, were utilized in the resource estimate. The Frontier independent resource estimate was produced to JORC (Joint OreReserve Committee of the Australasian Code for Reporting of Mineral Resourcesand Reserves, September 1999.) standards, by Gayle Hanssen of Digital MiningServices, Harare, Zimbabwe, and reconciled to the standards specified inNational Instrument 43-101 "Standards of Disclosure for Mineral Projects" issuedby the Canadian Securities Commissions. Ms. Hanssen is a professional naturalscientist of the South African Council for Natural Scientific Professions(SACNASP), an acceptable "member of a professional association" under NationalInstrument 43-101 and is the Qualified Person for the estimate of the mineralresource. The Company will file a Technical Report with the SecuritiesCommission pursuant to National Instrument 43-101. Drilling at Frontier was carried out by SDS Drilling, a subsidiary of BoartLongyear Inc and Stanley Mining Services Ltd, a subsidiary of Layne ChristensenCompany. Survey and Technical Services (STS), Masvingo, Zimbabwe surveyed alldrill hole collars. Down hole surveys were completed on 30 of the diamonddrillholes and partial or complete down hole surveys were completed on 32 of thereverse circulation drill holes. Diamond drill holes were drilled at HQ size,with reduction to NQ as required. Half core samples were taken with individualsample intervals reflecting geology and respecting core loss, and a minimumsample interval of 0.5 metres. Core recovery was generally better than 90%. AllRC samples were split to normal industry standards. First Quantum personnelconducted all sampling, and supervised the chain of custody from the drill siteto the laboratories. All samples were prepared to normal industry standards, with all diamond andPhase II & III RC drill hole and assayed for total copper, ambient temperatureacid soluble copper and total cobalt, at Scientific Services (Pty.) Ltd inCapetown, South Africa or Genalysis Laboratory Services Pty Ltd of Maddington,Western Australia. Phase I RC drillholes and air core holes were assayed fortotal copper and ambient temperature acid soluble copper at Antec Laboratories,Kwekwe, Zimbabwe. Appropriate standards, blanks and duplicates were employed. Alaboratory check assaying program, comparing Scientific Services (Pty.) Ltd withGenalysis Laboratory Services Pty Ltd, was performed with acceptable results. Alan J. Stephens FIMMM, a geologist with more than 29 years of experience, andpreviously Vice President of Exploration for, and since January 1st 2005Consultant to, First Quantum Minerals, was responsible for the design andconduct of the program, and is the qualified person for the purposes of NI43-101. On Behalf of the Board of Directors 12g3-2b-82-4461of First Quantum Minerals Ltd. Listed in Standard and Poor's Sedar Profile #00006237 "G. Clive Newall"G. Clive NewallPresident For further information visit our web site at www.first-quantum.com or contact Geoff Chater or Bill Iversen Suite 450-800 West Pender Street, Vancouver, British Columbia, Canada V6C 2V6 Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: info@first-quantum.com The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Certain of the information contained in this news release constitute "forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Such forward-looking statements, including butnot limited to those with respect to the prices of gold, copper and sulphuricacid, estimated future production, estimated costs of future production, theCompany's hedging policy and permitting time lines, involve known and unknownrisks, uncertainties, and other factors which may cause the actual results,performance or achievements of the Company to be materially different from anyfuture results, performance or achievements expressed or implied by suchforward-looking statements. Such factors include, among others, the actualprices of copper, gold and sulphuric acid, the factual results of currentexploration, development and mining activities, changes in project parameters asplans continue to be evaluated, as well as those factors disclosed in theCompany's documents filed from time to time with the British Columbia SecuritiesCommission and the United States Securities and Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange