Lihir announced that reserves were up 25% last year:
Significant increase in reserve
Announced by:LIHIR GOLD LIMITED (LHG)
Announced on: 29 Jan 2002 3:02:00 PM
1125 words
Status: Not market sensitive (N)
Industry Sub Group: Gold Producer (11)
------------------------------------------------------------------------
LIHIR GOLD LIMITED 2002-01-29 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
* TOTAL RESERVES INCREASE BY 3.0 MILLION OUNCES (+25%) TO 15.1
MILLION OUNCES
The ore resources and reserves in the table below are based on a
major review of Lihir's resource model completed in December 2001.
Since the previous model review in 2000, substantial diamond drilling
has been carried out in North East Minifie (23 holes), Borefields/
ROM zones (113 holes) and in the eastern half of the Lienetz deposit
(44 holes). Holes included in the revised resource model are those
available to the end of September 2001. These reserves do not include
results from drilling conducted during the fourth Quarter 2001, nor
do they include results from any drilling from the northwest
extension of Lienetz (refer to the diagram at the end of this
report).
As reported during the year, new mineralised extensions to the
Lienetz and Borefields zones have been identified and are now
represented in the resource model for the first time.
Based on the additional data, and a full review of mining and
processing costs, a new optimised pit design has also been completed.
On this basis, the Measured, Indicated and Inferred Mineral
Resources, inclusive of the Ore Reserves, are 353.8 million tonnes
averaging 3.04 grams of gold per tonne for 34.6 million ounces of
contained gold. Included within this are Proved and Probable Ore
Reserves of 120.8 million tonnes averaging 3.90 grams of gold per
tonne for 15.1 million ounces of contained gold.
The following tables show the composition of Lihir's 34.6 million
ounces of resource and 15.1 million ounces of reserves.
IDENTIFIED MINERAL RESOURCES(1) (RESOURCES ARE INCLUSIVE OF RESERVES)
RESOURCE TONNES AVERAGE CONTAINED
CATEGORY GRADE OUNCES(3)&(4)
(millions) (g Au/t) (millions)
Minifie, Lienetz, Measured 30.8 3.44 3.4
Borefields, Coastal Indicated 192.7 3.36 20.8
& Kapit Deposits Inferred 130.4 2.16 10.3
TOTAL RESOURCES(2) 353.8 3.04 34.6(5)
(1) Cutoff grade 1.5g Au/t (equivalent to US$400 per ounce cutoff
grade)
(2) Inferred Resource material falling within the planned mining pit,
along with indicated material between the Resource cutoff of 1.5g
Au/t and the Reserve cutoff (1.6 to 2003 and 2.1g Au/t beyond) within
the mine pit, is not included in Resources. This identified material
accounts for an additional 46.1Mt @ 1.9g Au/t containing 2.8 M oz.
(3) Resources for the period have been depleted by mining, conversion
to reserves, and revised modeling of marginal resources at the limits
of the Minifie and Coastal deposits.
(4) The number of contained ounces does not indicate the ounces that
will ultimately be recovered. The ounces ultimately recovered and
available for sale depends on whether, and to the degree which,
Mineral Resources are converted to Ore Reserves and upon mining and
processing efficiency.
(5) 2000 resource was 428.9 Mt at 2.69g Au/t for 37.1 M oz Au.
ORE RESERVES(1)
RESOURCE TONNES AVERAGE CONTAINED
CATEGORY GRADE OUNCES(4)
(millions) (g Au/t) (millions)
Reserves at 31/12/2001 Proved 10.3 4.55 1.5
Probable 90.2 4.05 11.8
Sub total 100.4 4.10 13.3
Stockpiled Ore(2) Proved 20.4 2.87 1.9
TOTAL RESERVES(3) 120.8 3.90 15.1
(1) Reserve tonnages have been depleted during 2001 by mining
activity. Reserves quoted are those remaining below the 31 December
2001 mining surface, within a revised ultimate pit design (January
2001), based on the December 2001 revised Resource model.
(2) Cutoff grade for the reserve calculations is fixed at 1.6g Au/t
for the first 6.5 years of mining operations (till end of 2003),
increasing to the economic cutoff, currently 2.1 g Au/t for the
remaining mine life. This is required under the Mining Development
Contract with the state of PNG.
(3) Stockpiled ore totals reflect ore above cutoff currently on
stockpile at 31 December 2001.
(4) The reserves reflect an assumed life-of-mine gold price of
US$300 per ounce. The number of contained ounces does not indicate
the ounces that will ultimately be recovered. The company currently
estimates an overall recovery of 13.6million ounces of gold from the
15.1 million contained ounces.
(5) 2000 reserve was 108.8 Mt at 3.65 g Au/t for 11.8 M oz Au (US$300
oz).
Lihir continues to use a long-term gold price assumption for grade
cutoff and pit design purposes of US$300 per ounce. The company
believes this to be in line with general industry expectations and
peer group reporting assumptions.
In order to assess the potential impact of a lower metal price, a
reserve sensitivity case at $280 per ounce reduces the reserve by
2.2% to 115.2mt @ 4.00g Au/t for 14.8 M oz contained gold.
COMPARISONS
The US$300 estimate at end-December 2000 was a proved and probable
reserve of 12.8moz, in comparison to the current 15.1 M oz at end
2001, representing a 2.3 M oz or 18% reserve increase (net of 2000
depletion) achieved during the year.
Comparison of the end-December 2001 position on the previous model
(December 2000) shows an increase of 3.0 M oz or 25% in reserves over
the same period.
END-DECEMBER 2000 END-DECEMBER 2001 END-DECEMBER 2001
@ US$300/OZ 2000 MODEL 2000 MODEL 2001 MODEL
Proved & probable
Mt g Au/t Moz Mt g Au/t Moz Mt g Au/t Moz
In Pit 92.2 3.71 11.2 84.0 3.78 10.2 100.4 4.10 13.3
Ore
Stockpile 16.6 3.03 1.6 20.4 2.87 1.9 20.4 2.87 1.9
Ore
TOTAL
RESERVE 108.8 3.65 12.8 104.4 3.76 12.1 120.8 3.90 15.1
FURTHER DEVELOPMENTS
During the resource and mine optimisation studies, a substantial
tonnage of indicated resource at moderate depth has been identified
in the Northern Lienetz area. Given the proximity of this resource to
the coastline, engineering studies to test the full economic
potential of the mineralisation have commenced.
Drilling is also continuing on the central and western flanks of
Lienetz, and will continue in this area, and further to the west of
Minifie, throughout 2002. A reserve update is planned for mid-2002,
to take into account data collected since September 2001.
The information in this report that relates to Mineral Resources or
Ore Reserves is based on information compiled by the Company's Chief
Geologist, Steve Hunt, who is a member of the Australian Institute of
Geoscientists and a full-time employee of the Company. Steve Hunt has
sufficient experience which is relevant to the style of
mineralisation and the type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as
defined in the 1999 Edition of the "Australasian Code for Reporting
of Mineral Resources and Ore Reserves". Steve Hunt consents to the
inclusion in the report of the matters based on their information in
the form and context in which it appears.
For further information, please contact:
Rod Antal
COMPANY SECRETARY AND INVESTOR RELATIONS
Telephone: 0402 89 3229
A full copy of the Accompanying Diagram is available for purchase
from ASX Customer Service on 1 300 300 279. Charges apply. |
