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.