Freeport Copper sees 250 million ton reserve

Freeport Copper sees 250 million ton reserve

NEW ORLEANS, United States (Reuter): Freeport-McMoRan Copper & Gold Inc said Wednesday the 1.5 kilometer long Kucing Liar mineralized zone could represent a 250 million metric ton geological resource at an average grade of greater than two percent copper equivalent.

The company said drilling activities at the Kucing Liar prospect within the "Golden Triangle" area at PT Freeport Indonesia Co's Ertsberg-Grasberg District have moved from the exploration phase to the delineation phase.

It said early results confirm the continuity of extensive skarn-type copper/gold mineralization between drill holes.

To date, 15 delineation holes have been, or are being, drilled over a 500 meter interval, Freeport said, noting this is one- third of the 1.5 kilometer mineralized zone. Assay results from eight holes have been received and visual estimates from all 15 holes suggest continuity between holes and fans.

The company said the Kucing Liar mineralization has an apparent thicknesses of 50 to 250 meters which indicates the applicability of low-cost block caving underground mining.

This high grade underground mineralization, in close proximity to the mill, could have a significant positive impact on the grade of the ore feed to the company's "fourth concentrator mill expansion," Freeport said.

The optimum rate of the previously announced expansion is being assessed but is expected to be at least 190,000 to 200,000 metric tons of ore per day. Permitting for this expansion is currently underway with a start-up date anticipated during the second half of 1998.