first quantum minerals FM on TSE Message Board

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Gold/Mining/Energy : first quantum minerals FM on TSE

FM 27.19

0.0%

Jan 8 3:00 PM EDT

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To: Stephen O who wrote (341)	11/16/2002 5:24:34 PM
From: Stephen O	Read Replies (1) of 385

Canaccord Analyst Greg Barnes First Quantum Minerals (FM : TSX : C$3.20) - STRONG BUY – 12-month target price: C$6.50 Comment: More high-grade copper at Lonshi, drilling extends current pit First Quantum released results from its recent drilling program at the Lonshi Mine in the Democratic Republic of Congo. Approximately one-third of the holes were in-fill within the current pit limits while the balance was drilled along strike to the south of the pit. The most recent resource figure released by First Quantum dates from October 2001 and totals 5.13 million tonnes grading 5.75% copper. Of this, 2.4 million tonnes grading 6.73% copper is classified as a measured resource and 2.7 million tonnes grading 4.89% copper is classified as indicated. The company indicated in yesterday’s press release that the bulk of the indicated resource is expected to be reclassified into the measured category as a result of the drilling program. The Lonshi ore-bearing horizon extends for a known strike length of several kilometres. The horizon is sinuous – economic accumulations of mineralization are typically found in the synforms, or U-shaped, portions of the horizon. This is a well-known characteristic of Copperbelt mineralization. In our net asset value (NAV) of $6.45/share for First Quantum, we have assumed that only the current resource is mined over a six-year mine life. The expansion to the pit as demonstrated in yesterday’s drilling results will have a positive impact on our valuation. Once we have more detail with respect to the resource additions, we will update our NAV. We are maintaining our $6.50 target price (based upon our NAV) and our STRONG BUY recommendation.

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