First Quantum Minerals Ltd. (“First
Quantum” or “the Company”) (TSX:FM) today
announced the filing of an updated National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”)
Technical Report dated November, 2020 for the Taca Taca development
project (the “Report”). Taca Taca is a copper, molybdenum and gold
project located in the Puna (Altiplano) region of Salta Province,
in northwest Argentina. The Report documents an updated Mineral
Resource model and a significant maiden Mineral Reserve estimate
derived from an open pit mine design and plan which contemplates
processing throughput of up to 60 million tonnes per annum through
a conventional flotation circuit with a mine life of approximately
32 years. The recovered copper reaches a peak of approximately
275,000 tonnes within the first ten years of operations. The design
is based on the process plants which the Company has successfully
constructed and operated at its Sentinel and Cobre Panama
operations.
A decision to proceed with the construction of
Taca Taca is not expected until sometime in 2023 or 2024. The
Company remains focused on deleveraging its balance sheet over this
period. Work will continue to advance the project and to further
refine and optimize the plan while obtaining the required approvals
and permits and suitable assurances with respect to the Argentinian
fiscal regime in advance of a formal construction decision.
The updated Measured and Indicated Mineral
Resource is 2,203.3 million tonnes of grading 0.43% copper for
9,450.7 kt of contained copper, 264.5 kt of molybdenum and 6,052.1
koz of gold. The Proven and Probable Mineral Reserve has been
estimated at 1,758.5 Mt of ore grading 0.44% copper for 7,734.7 of
contained copper, 213.5 kt of Mo and 5,086.7 koz of Au. (See Table
1 and 2. For further detail refer to the NI 43-101 Taca Taca
Project, November, 2020 available on SEDAR).
This increases the Company’s total Mineral
Reserves to over 29 million tonnes of contained copper which is the
fifth-largest copper reserve base globally, and substantially
increases the geographic diversification of the Company’s copper
reserves.
Table 1: Mineral Resource statement as at
October 2020, using a 0.13% Cueq cut-off grade
Classification |
Volume(Mbcm) |
Tonnes(M/t) |
Density(t/m3) |
Cu grade(%) |
Mo grade(%) |
Au grade(g/t) |
Cu metal(kt) |
Mo metal(kt) |
Au metal(koz) |
Measured |
157.7 |
421.5 |
2.67 |
0.60 |
0.016 |
0.14 |
2,542.8 |
67.02 |
1,852.6 |
Indicated |
671.6 |
1,781.8 |
2.65 |
0.39 |
0.011 |
0.07 |
6,908.0 |
197.52 |
4,199.5 |
Measured & Indicated |
829.3 |
2,203.3 |
2.66 |
0.43 |
0.012 |
0.09 |
9,450.7 |
264.54 |
6,052.1 |
Inferred |
269.4 |
716.9 |
2.66 |
0.31 |
0.009 |
0.05 |
2,206.0 |
65.15 |
1,182.7 |
Note: The copper equivalent cut-off (“Cueq”) grade
accounts for a $3.00/lb copper price, a $1,200/oz gold price, and a
$12.00/lb molybdenum price. Inventory and classification are guided
by the design ultimate pit. The stated Mineral Resource includes
the Mineral Reserve.
Table
2: Mineral
Reserve statement as at October 2020
Classification |
Tonnes(M/t) |
Cu grade(%) |
Mo grade(%) |
Au grade(g/t) |
Cu metal(kt) |
Mo metal(kt) |
Au metal(koz) |
Proven |
408.3 |
0.59 |
0.016 |
0.13 |
2,401.6 |
63.3 |
1,749.8 |
Probable |
1,350.2 |
0.39 |
0.011 |
0.08 |
5,333.1 |
150.2 |
3,336.9 |
Proven & Probable |
1,758.5 |
0.44 |
0.012 |
0.09 |
7,734.7 |
213.5 |
5,086.7 |
Note: The estimated Mineral Reserve was
determined using metal prices of $3.00/lb for copper, $12.00/lb for
molybdenum, and $1,200/oz for gold. The actual marginal cut-off
grade for the Mineral Reserve varies according to the copper
recovery assigned to various mineralogical groupings. However, the
overall average marginal copper cut-off grade is in the order of
0.13% Cueq.
The Report also provides an update on permitting
and approvals, engineering progress, detailed production planning,
development designs, technical analyses, cost estimates and
economic analysis. Work will continue to advance the Taca Taca
project and to further refine and optimize the plan. In particular,
First Quantum intends to evaluate sources of energy for the project
which are more environmentally friendly, including potentially
100% renewables or a combination of renewables and natural gas, and
to optimize the energy intensity of the project. The impact of the
current carbon tax regime in Argentina is currently not material to
the project economics; First Quantum will have full regard for the
projects decarbonisation, environmental and social impact prior to
the development of Taca Taca.
Qualified PersonsThe Taca Taca
Technical Report was prepared under the direction and supervision
of the following First Quantum personnel who are Qualified Persons
for the purposes of NI 43-101: David Gray (QP) BSc (Geology),
MAusIMM, FAIG, Group Mine and Resource Geologist, FQM (Australia)
Pty Ltd, Michael Lawlor (QP) BEng Hons (Mining), MEngSc, FAusIMM,
Consultant Mining Engineer, FQM (Australia) Pty Ltd, Andrew Briggs
(QP) BSc (Eng), ARSM, FSAIMM, Group Consultant Metallurgist, FQM
(Australia) Pty Ltd.
The scientific and technical information
regarding the Taca Taca Mineral Resource and Mineral Reserve
estimates set out in this news release has been reviewed and
approved by John Gregory (QP) BSc (Eng) Hons, ARSM, CEng, MIMMM,
MAusIMM, Group Consultant – Mining, FQM (Australia) Pty Ltd, who is
a Qualified Person as defined by NI 43-101.
For further information visit our website at
www.first-quantum.com
North American contact: Lisa
Doddridge, Director, Investor RelationsTel: (416) 361-3400 Toll
free: 1 (888) 688-6577 United Kingdom contact:
Clive Newall, PresidentE-Mail: info@fqml.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATIONCertain statements and information herein,
including all statements that are not historical facts, contain
forward-looking statements and forward-looking information within
the meaning of applicable securities laws. The forward-looking
statements include estimates, forecasts and statements as to the
Company’s expectations of production, Mineral Resources and Mineral
Reserves at Taca Taca, and the development of Taca Taca (including
the timing, cost and details thereof) and are subject to, among
other things, the impact of ore grades on future production; the
potential of production disruptions; potential production,
operational, labour or marketing disruptions as a result of the
COVID-19 global pandemic; capital expenditure and mine production
costs; a decision to pursue the development of Taca Taca; the
outcome of mine permitting, other required permitting; the outcome
of legal proceedings which involve the Company; information with
respect to the future price of copper, gold, silver, nickel, zinc,
pyrite, cobalt, iron and sulphuric acid; estimated Mineral Reserves
and Mineral Resources; First Quantum’s exploration and development
program; estimated future expenses; exploration and development
capital requirements; and the Argentinian fiscal and regulatory
regime. Often, but not always, forward-looking statements or
information can be identified by the use of words such as “plans”,
“expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate” or “believes” or variations of such words and
phrases or statements that certain actions, events or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved.
With respect to forward-looking statements and
information contained herein, the Company has made numerous
assumptions including among other things, assumptions about
continuing production at all operating facilities, the price of
copper, gold, silver, nickel, zinc, pyrite, cobalt, iron and
sulphuric acid, anticipated costs and expenditures and the ability
to achieve the Company’s goals. Forward-looking statements and
information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information. These factors include,
but are not limited to, future production volumes and costs, the
temporary or permanent closure of uneconomic operations, costs for
inputs such as oil, power and sulphur, political stability in
jurisdictions in which the Company operates, adverse weather
conditions that impact the Company’s operations, labour
disruptions, potential social and environmental challenges
(including the impact of climate change), power supply, mechanical
failures, water supply, procurement and delivery of parts and
supplies to the operations, the production of off-spec material and
events generally impacting global economic, political and social
stability.
See the Company’s Annual Information Form dated
March 30, 2020 for additional information on risks, uncertainties
and other factors relating to the forward-looking statements and
information. Although the Company has attempted to identify factors
that would cause actual actions, events or results to differ
materially from those disclosed in the forward-looking statements
or information, there may be other factors that cause actual
results, performances, achievements or events not to be
anticipated, estimated or intended. Also, many of these factors are
beyond First Quantum’s control. Accordingly, readers should not
place undue reliance on forward-looking statements or information.
The Company undertakes no obligation to reissue or update
forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. All forward-looking statements and information
made herein are qualified by this cautionary statement.
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