FIRST QUANTUM ACQUIRES EXPLORATION PORTFOLIO FROM PHELPS DODGE
First Quantum Minerals Ltd. (TSE Symbol "FM") is pleased to announce the acquisition of the assets of Cyprus Amax Zambia ("Cymax") from Phelps Dodge Exploration Corporation. Cymax's assets include; three wholly owned Prospecting Licenses, Mwinilunga, Luamata and Solwezi, covering 10,840 square kilometers, and the Luswishi Prospecting License, covering 4,388 square kilometers, in which Casmyn Corp retains a 15% participating interest after an expenditure of $3 million has been made by Cymax ; and key infrastructure, data, records and interpretations of the prolific Zambia Copperbelt.
In consideration, Phelps Dodge Exploration Corporation will receive US $25,000 and a 2-3% Net Proceeds Interest. Phelps Dodge Exploration Corporation will also retain a one-time back-in right to acquire a 20% participating interest in any or all of the wholly owned Prospecting Licenses upon First Quantum completing expenditures of $5 million at Mwinilunga, $2 million at Luamata and $3 million at Solwezi.
Since 1996, Cymax's geological team reviewed the copper and cobalt mineralization of the world class deposits that make up the Zambian Copperbelt. These deposits contained pre-production resources of approximately 2 billion tonnes grading 3% copper. Cymax concluded that the geology of the Copperbelt is poorly understood, and noted that all major Copperbelt deposits were discovered from surface exposures; and that exploration for concealed or leached deposits has been limited. Cymax's geological team developed a new model for the ore controls of Copperbelt mineralization, which was then integrated with government and private exploration data and Landsat imagery, to produce a state of the art data compilation of the entire Lufilian Arc. This major geological feature hosts the world class Nkana, Mufulira, Konkola and Nchanga copper deposits in Zambia and the enormous Tenke Fungurume and Kolwezi copper cobalt deposits, located in the Democratic Republic of Congo.
The Prospecting Licenses acquired by Cymax cover areas representing highly prospective geological environments, as identified by the newly developed model. In particular, the Mwinilunga and Luamata licences are believed to cover the southwestward continuation of the Congolese portion of the Lufilian Arc back into northwestern Zambia. Each Prospecting License has been evaluated utilizing airborne magnetics and radiometrics followed by "ground truthing" via reconnaissance geologic mapping and soil geochemistry surveys. Initial trenching and drill testing has been carried out on several targets. At Luamata, initial trench results from a small portion of a 6 kilometre long soil anomaly averaged 5.4 metres grading 2.61% copper and 0.39% cobalt. No drilling has yet been carried out at Luamata.
First Quantum is also pleased to announce the appointment of Alan Stephens to the position of Vice President Exploration. Mr. Stephens was Exploration Manager-International for Cyprus Amax with responsibility for all exploration activities in Africa, Asia and Europe. Mr. Stephens was responsible for developing the Kansanshi Copper Project in Zambia (approximately 150 million tonnes at 1.5%Cu,) from exploration through to the pre-feasibility study stage. Mr. Stephens' 25 year career also included various senior geological positions with Amax Exploration, Tenneco Minerals, and Echo Bay Mines. First Quantum shall, subject to regulatory approval, issue 50,000 finder's fee shares, subject to vesting, to Mr. Stephens for his efforts, prior to joining First Quantum, in identifying and securing the acquisition of Cymax.
On Behalf of the Board of Directors 12g3-2b-82-4461
of First Quantum Minerals Ltd. Listed in Standard and Poor's
"Clive Newall" Sedar Profile #00006237
Clive Newall
President
For further information contact: Geoff Chater, Bill Iversen or Keith Neumeyer
Suite 450-800 West Pender Street, Vancouver, British Columbia, Canada V6C 2V6
Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: info@first-quantum.com
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain of the information contained in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the prices of gold, copper and sulphuric acid, estimated future production, estimated costs of future production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of copper, gold and sulphuric acid, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities and Exchange Commission |
