| Fri 31 Jul 2009, 8:28 | | AGL - Anglo American plc - News release: Anglo American Announces New Los |
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AGL
ANAAL
AGL - Anglo American plc - News release: Anglo American Announces New Los
Sulfatos Copper
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
News release: Anglo American announces new Los Sulfatos copper
prospect in Chile with Inferred Resources of 1.2 billion tonnes
Anglo American announces a significant and high quality new copper prospect
at Los Sulfatos in Chile, near its existing Los Bronces copper operation,
with an Inferred Resource of 1.2 billion tonnes.
The Los Sulfatos porphyry copper and breccia complex is located approximately
6km south of Anglo American`s Los Bronces mine and some 50km to the north-
east of Santiago in central Chile. Results of recent exploration drilling
programmes demonstrate the existence of a world class copper deposit.
Based on 22,000 metres of drilling, the current Inferred Mineral Resources
are estimated at 1.2 billion tonnes at 1.46% Cu and 0.02% Mo containing an
estimated 17.5 million tonnes of copper. The resource estimates are
compliant with the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code) and are quoted
above a zero cut-off but are contained within a nominal 1% Cu envelope. The
deposit is open in various directions and in terms of overall potential for
the Los Sulfatos exploration target, the tonnage is expected to be between
four and five billion tonnes at grades of between 0.8% Cu and 1.0% Cu.
The Chief Executive of Anglo American`s Base Metals business, Brian Beamish,
said, "I am pleased to announce the results of the Los Sulfatos exploration
work, showing a further very sizeable and high quality copper prospect near
our Los Bronces operation. Anglo American has a proud heritage of building
and operating safe, modern mines in Chile and we look forward to working with
the regulatory authorities and local stakeholders to develop Los Sulfatos in
a similar way."
In order to delineate this deposit more efficiently and safely, Anglo
American will be developing an exploration tunnel from which to drill the
deposit. The tunnel is expected to cost in the order of $60 million and will
be excavated by a tunnel boring machine which is currently being assembled on
site. The excavation of the tunnel is expected to take two years.
Location and Geology
The Los Sulfatos prospect sits within and under high mountain ridges at
altitudes between 4,000 and 4,500 metres. Anglo American recognises the
environmentally challenging and sensitive location of the Los Sulfatos
prospect and, as with other operations, remains committed to working with the
regulatory authorities and other stakeholders to achieve high standards of
environmental stewardship during all phases of project development.
The porphyry copper mineralisation is contemporaneous and closely associated
to the mineralisation at Los Bronces and the adjacent Rio Blanco deposit and
is part of a district that is developing into one of the largest known
concentrations of copper mineralisation in the world.
Copper sulphide mineralisation is hosted in a multi-phase porphyry stock and
breccia complex. The central and deeper portions are characterised by
disseminated hypogene bornite-chalcopyrite-(digenite)-molybdenite
mineralisation, hosted in porphyry intrusive and strongly altered andesite
volcanics. Selected drill intercepts in this part of the deposit include
Hole 10, from 13 to 1,003m, 990m @ 1.26% Cu (including 522-1003m, 481m @
1.53% Cu) and Hole 22, from 516 to 1,003 metres, 487 metres @ 1.74% Cu.
To the north, the mineralisation style is dominated by high grade
geometrically complex breccia bodies with chalcopyrite-pyrite mineralisation,
cut by low-grade late stage porphyry intrusions. Hole 13 in this area
intersected from 81m to 798m, 717m @ 3.6% Cu (including 81-363m - 282m @ 6.1%
Cu) in a tourmaline-chalcopyrite breccia body.
A smaller porphyry stock with disseminated chalcopyrite-bornite
mineralisation and grades averaging close to 1% Cu, outcrops in the south of
the prospect. The porphyry complex extends a further one kilometre to the
north on Anglo American property. Due to access difficulties, this extension
has not been drilled and remains untested.
Drilling Campaigns
The first drilling in the prospect was carried out between 1965 and 1967 by
the French company Penarroya, at that time owner of Cia Minera Disputada de
Las Condes. This was followed by drill campaigns in 1991 by Exxon and Anglo
American from 2005 to 2008.
To date, just over 22,000 metres have been drilled in 39 holes on the
prospect. The most recent drilling in 2008 successfully confirmed the extents
and continuity of the high grade mineralisation extending the outline of the
bornite-rich
1.5% Cu mineralisation, which is still open in a number of
directions.
The mineralisation in the central high grade core shows higher molybdenum
contents averaging >0.03% Mo. Gold and/or silver credits are also expected.
The assays for the 2007 and 2008 drill campaigns, which form the basis of the
resource statement, have been subjected to strict quality control and quality
assurance.
Mineral Resource Estimation
For the estimation of mineral resources, grade envelopes were interpreted
manually based on the local geology and assisted by "indicator" techniques.
The grade envelopes were at nominal cut-offs of 0.5% Cu, 0.7% Cu, 1% Cu and
1.5% Cu. There is excellent continuity of the grades in some parts of the
deposit.
Copper and molybdenum grades were interpolated into blocks using ordinary
kriging. Model validation was carried out visually, comparing sample and
block grades on plan and section and no obvious errors were noted. The
average grades within the different zones for both copper and molybdenum also
compare well between blocks and composites.
The mineralisation shows good continuity of grade and therefore, in spite of
relatively limited drilling, the mineralisation within the 1% Cu envelope is
able to be considered as Inferred Resources under the Australasian Code for
the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The
JORC Code - 2004). Only blocks above 3,200 metres above sea level are
classified as resources and are reported at zero cut-off within the envelope.
The 3,200m level is the level of deepest drilling and the deposit is open in
depth. Preliminary mine scoping and valuation studies have shown that the
mineralisation is amenable to open pit and underground mining methods,
confirming that the resources have "reasonable prospects for eventual
economic extraction" as required by the JORC Code.
As such, the Inferred Mineral Resources at Los Sulfatos are currently
estimated at 1.2 billion tonnes at a grade of 1.46% Cu and 0.02% Mo
containing an estimated 17.5 million tonnes of copper. Considering that the
deposit remains open in a number of directions, the overall exploration
target of Los Sulfatos, including the current resources, is expected to
contain between four and five billion tonnes at grades of between 0.8% Cu and
1.0% Cu.
Competent Person Statement
The information in this press release that relates to Resources is based on
information compiled by Graeme Lyall, who is a member of the Australasian
Institute of Mining and Metallurgy. Mr. Lyall is a full-time employee of
Anglo American Chile and has experience which is relevant to the style of
mineralisation and type of deposit under consideration and is qualified as a
Competent Person as defined in the 2004 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. Graeme
Lyall consents to the inclusion in this press release of the matters based on
his information in the form and context in which it appears.
This mineralisation is defined as Resources under the JORC Code and therefore
is considered to have a reasonable prospect of being economically extracted
in the foreseeable future. Estimates of such mineralisation are based
largely on geological information and sampling with only preliminary
consideration of mining, economic and other factors and are not yet
classified as Proved or Probable Reserves. While in the judgment of the
Competent Person there are reasonable expectations that all or part of the
Resources will eventually become Proved or Probable Reserves, there is no
guarantee that this will occur as the result depends on further technical and
economic studies and prevailing economic conditions in the future.
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel : +44 (0)20 7968 8607
South Africa
Anna Poulter, Investor Relations
Tel: +27 (0)11 638 2079
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
About Anglo American
Anglo American plc is one of the world`s largest mining groups. With its
subsidiaries, joint ventures and associates, it is a global leader in
platinum group metals and diamonds, with significant interests in coal, base
and ferrous metals, as well as an industrial minerals business. The Group is
geographically diverse, with operations in Africa, Europe, South and North
America, Australia and Asia. www.angloamerican.co.uk
Dealing disclosure requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any
person is, or becomes, "interested" (directly or indirectly) in 1% or more of
any class of "relevant securities" of Anglo American or Xstrata plc
("Xstrata"), all "dealings" in any "relevant securities" of that company
(including by means of an option in respect of, or a derivative referenced
to, any such "relevant securities") must be publicly disclosed by no later
than 3.30 pm (London time) on the London business day following the date of
the relevant transaction. This requirement will continue until the date on
which the offer becomes, or is declared, unconditional as to acceptances,
lapses or is otherwise withdrawn or on which the "offer period" otherwise
ends. If two or more persons act together pursuant to an agreement or
understanding, whether formal or informal, to acquire an "interest" in
"relevant securities" of Anglo American or Xstrata, they will be deemed to be
a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of either Anglo American or Xstrata by Anglo American or Xstrata,
or by any of their respective "associates", must be disclosed by no later
than 12.00 noon (London time) on the London business day following the date
of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities
in issue, can be found on the Takeover Panel`s website at
www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic
exposure, whether absolute or conditional, to changes in the price of
securities. In particular, a person will be treated as having an "interest"
by virtue of the ownership or control of securities, or by virtue of any
option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on
the Takeover Panel`s website. If you are in any doubt as to whether or not
you are required to disclose a "dealing" under Rule 8, you should consult the
Panel.
Forward-looking statements
This announcement includes forward-looking statements. All statements other
than statements of historical facts included in this announcement, including,
without limitation, those regarding Anglo American`s financial position,
business and acquisition strategy, plans and objectives of management for
future operations (including development plans and objectives relating to
Anglo American`s products, production forecasts and reserve and resource
positions), are forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Anglo American, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements.
Such forward-looking statements are based on numerous assumptions regarding
Anglo American`s present and future business strategies and the environment
in which Anglo American will operate in the future. Important factors that
could cause Anglo American`s actual results, performance or achievements to
differ materially from those in the forward-looking statements include, among
others, levels of actual production during any period, levels of global
demand and commodity market prices, mineral resource exploration and
development capabilities, recovery rates and other operational capabilities,
the availability of mining and processing equipment, the ability to produce
and transport products profitably, the impact of foreign currency exchange
rates on market prices and operating costs, the availability of sufficient
credit, the effects of inflation, political uncertainty and economic
conditions in relevant areas of the world, the actions of competitors,
activities by governmental authorities such as changes in taxation or safety,
health, environmental or other types of regulation in the countries where
Anglo American operates, conflicts over land and resource ownership rights
and such other risk factors identified in Anglo American`s most recent Annual
Report. Forward-looking statements should, therefore, be construed in light
of such risk factors and undue reliance should not be placed on forward-
looking statements. These forward-looking statements speak only as of the
date of this announcement. Anglo American expressly disclaims any obligation
or undertaking (except as required by applicable law, the City Code on
Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the
Disclosure and Transparency Rules of the Financial Services Authority, the
Listings Requirements of the securities exchange of the JSE Limited in South
Africa, the SWX Swiss Exchange, the Botswana Stock Exchange and the Namibian
Stock Exchange and any other applicable regulations) to release publicly any
updates or revisions to any forward-looking statement contained herein to
reflect any change in Anglo American`s expectations with regard thereto or
any change in events, conditions or circumstances on which any such statement
is based.
Nothing in this announcement should be interpreted to mean that future
earnings per share of Anglo American will necessarily match or exceed its
historical published earnings per share.
Certain statistical and other information about Anglo American included in
this announcement is sourced from publicly available third party sources. As
such it presents the views of those third parties, but may not necessarily
correspond to the views held by Anglo American.
31 July 2009
Sponsor
UBS South Africa (Pty) Ltd
Date: 31/07/2009 08:28:01 Produced by the JSE SENS Department.
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