| Fri 31 Jul 2009, 8:42 | | AGL - Anglo American Plc announces new San Enrique Monolito copper prospect |
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AGL
ANAAL
AGL - Anglo American Plc announces new San Enrique Monolito copper prospect
in Chile with Inferred Resources of 900 million tonnes
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 San Enrique Monolito copper
prospect in Chile with Inferred Resources of 900 million tonnes
Anglo American announces a significant and high quality new copper prospect
at San Enrique Monolito in Chile, near its existing Los Bronces copper
operation, with an Inferred Resource of 900 million tonnes.
The San Enrique Monolito (SEM) porphyry copper prospect is located
immediately adjacent to Anglo American`s Los Bronces mine, some 50km to the
north-east of Santiago in central Chile. Exploration at SEM has been
ongoing since 2005 and to date some 60,000m have been drilled. Due to its
proximity to Los Bronces, the models of the mineralisation have been
combined and some 1.2 billion tonnes (at an average grade of approximately
0.4%Cu) of the SEM mineralisation have already been reported as Mineral
Resources that were published for Los Bronces in the 2008 Annual Report.
These resources fell within the resources shell that was run to test for
reasonable prospects of eventual economic extraction.
A recent preliminary scoping exercise for an underground block cave
operation has indicated potential viability of the deeper parts of the SEM
mineralisation. As such, there is an additional Inferred Mineral Resource
of 900 million tonnes at a grade of 0.81% Cu and 0.02%Mo containing
approximately 7.2 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
constrained within the outlines of potential block caves. The SEM deposit
is open laterally and vertically and shows increasing grade with depth.
The Chief Executive of Anglo American`s Base Metals business, Brian
Beamish, said, "I am pleased to announce the additional resources at San
Enrique Monolito, providing us with further significant and high quality
development options around our world class Los Bronces mine in Chile."
Location, Geology and Sampling
At Los Bronces a copper-molybdenum bearing multi-phase porphyry stock and
breccia complex is mined in the high mountains of central Chile, at an
altitude between 3,400m and 4,100m. The south east extension to the Los
Bronces mineralisation is known as San Enrique Monolito (SEM) located under
the Monolito peak which is one kilometre from the current mining site.
The near surface geology is characterised by relatively small mineralised
tourmaline breccia bodies encompassing a large, late stage weakly
mineralised porphyry intrusive. With depth the mineralisation gives way to
largely disseminated copper mineralisation hosted mainly in the San
Francisco quartz monzonite and locally in inter-mineral porphyries and
breccia bodies.
Whilst the near the surface hydrothermal breccias exhibit some secondary
copper enrichment resulting in locally elevated copper grades, the deeper
disseminated mineralised zone is characterised by chalcopyrite, pyrite with
minor bornite sulphide mineralisation. The mineralisation shows a clear
depth transition towards larger and richer copper and molybdenum
concentrations. Mineralisation below the currently recognised deposit
remains open and is a target for further exploration.
The mineralisation at SEM has been determined through drilling of some
60,000m reaching depths of approximately 1.5 km below surface. Two of the
drill holes that demonstrate increasing grade with depth in parts of the
deposit are: Mo-115 from 12 to 1,559m, 1,547m @ 0.73%Cu, 0.017%Mo
(including from 895 to 1,559m, 664m @ 0.94%Cu, 0.029%Mo), and Mo-116B from
410 to 1,561m, 1,151m @ 0.83%Cu, 0.034%Mo (including from 1,145 to 1,445m,
300m @ 1.2%Cu, 0.035%Mo). Some 28,000m of drilling in 56 holes supports the
area below the current resources shell. Data gathering and quality control
has been carried out to the same high standards as those applied at the Los
Bronces mine.
Mineral Resource Estimation
Based on the drilling information, lithology, alteration and mineralisation
models were developed on cross sections and plans and used as a basis for
grade interpolation into blocks using ordinary kriging. Validation of the
block grade estimates was carried out visually on plan and on section by
comparing them with the sample grades and no obvious errors were noted. In
addition, average grades of samples and blocks compare well within the
various units used in the resource estimation.
The current block model below the current resources shell indicates that
the SEM body of mineralisation (exploration target) could contain between
2.5 and 3.5 billion tonnes at grades of between 0.65%Cu and 0.75%Cu at a
cut-off of 0.5%Cu.
As part of the strategic planning for the Los Bronces district, preliminary
scoping studies have been carried out to mine part of this mineralisation
by underground block caving. This exercise indicates that an underground
block cave operation is viable and therefore the mineralisation contained
therein passes the test for reasonable prospects for eventual economic
extraction and may be quoted as a Mineral Resource.
Therefore, at SEM there is an additional Inferred Mineral Resource of 900
million tonnes at a grade of 0.81%Cu and 0.02%Mo containing approximately
7.2 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 constrained within the
outlines of potential block caves.
The mineralisation remains open both laterally and vertically and 56,000m
of drilling has been proposed for 2010 with the purpose of increasing the
Mineral Resources and improving the classification.
Competent Person Statement
The information in this press release that relates to Resources is based on
information compiled by Sergio Godoy, who is a member of the Australasian
Institute of Mining and Metallurgy. Mr. Godoy 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.
Sergio Godoy 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 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
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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 08:42:00 Produced by the JSE SENS Department.
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