NEWS RELEASE
Positive Results from the Kingamiambo and Luilu Copper/Cobalt Tailings Dumps
July 13, 1998 Trading Symbol: FM
The Company is pleased to announce results from the evaluation program on the Kingamiambo and Luilu tailings dumps. As reported previously, First Quantum Minerals has been awarded the rights to evaluate and conduct feasibility studies on four tailings dumps at Kolwezi and Likasi in the Copperbelt of the Democratic Republic of Congo. Subject to a positive feasibility study, FQM has the right to enter a Mining Convention with the Government to mine the copper/cobalt tailings. The first phase of the feasibility study on the Kingamiambo and Luilu tailing dumps, which included dump resource estimation with measured grade and tonnage's, has been completed.
A total of 331 auger drillholes (161 holes at Kingamiambo and 170 holes at Luilu) located on a 100 X 100 meter grid was completed by geotechnical consultants Dump and Dune Drillers Pty. Ltd. of South Africa ("Dump & Dune"). Each drill hole was sampled at 1.5 metre intervals through the tailings to refusal in the underlying soil. Samples were collected in sealed plastic bags by Dump & Dune and delivered to a Performance Laboratories representative in Kolwezi. Samples were wet and dry weighed, sieved, blended, split and shipped for analysis and archived. Performance Laboratories of Johannesburg analysed each sample for total copper, cobalt, acid soluble copper and cobalt. Approximately 10% of samples were submitted to Anglo American Laboratories in South Africa as check samples. The check assay samples did not show any significant deviation from the original assay results.
Digital Mining Services Pty. Ltd. of South Africa was contracted by the Company to evaluate the tailings dumps. Semi-variogram analyses were conducted on the assayed elements to complete the resource evaluation. The kriged resource estimate for the two tailings dumps indicates that the resource could be classified as measured. A total tailings volume of 11.4 million cubic metres and 10.6 million cubic metres is calculated at the Kingamiambo and Luilu tailings dumps, respectively. Bulk density testing of the dumps is in progress, however if a conservative estimate for specific gravity of 1.3 is applied, the following measured resources are defined:
Tonnage Total Copper (%) Total Cobalt (%)
Kingamiambo Tailings 14,820,000 1.13 0.26
Luilu Tailings 13,780,000 1.98 0.35
For comparison, excluding cobalt credits, the contained copper, in the Kingamiambo and Luilu tailings dumps is over 7 times greater than the contained copper in the reserves at the Company's Bwana Mkubwa Copper Mine in Zambia.
Additionally, drilling has now been completed on the Shituru and Panda tailings dumps located near Likasi. Results will be announced when resource estimation including grade and tonnage's has been finalised.
Further studies on all four tailings dumps leading up to a full bankable feasibility study have been awarded to Hatch Associates of Toronto, a leading international consulting and engineering firm.
On Behalf of the Board of Directors
of First Quantum Minerals Ltd.
12G3-2b-82-4461
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