Equinox Minerals Limited
TSX : EQN
ASX : EQN

Equinox Minerals Limited

June 14, 2005 10:01 ET

Equinox Restructures the Zambezi Joint Venture to Control an Extensive Property Package in Zambia

TORONTO, ONTARIO--(CCNMatthews - June 14, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Equinox Minerals Limited (TSX:EQN)(ASX:EQN) is pleased to announce that it has restructured the Zambezi Joint Venture with Anglo American Prospecting Services Pty Ltd ("AAPS"), through AAPS's affiliate Zamanglo Prospecting Ltd ("Anglo American"). This agreement provides Equinox with control of an extensive, highly prospective land package in Zambia (the "Zambezi Project") that will enable Equinox to substantially expand its exploration activities in the region.

The Zambezi Project covers approximately 19,300 km2 of tenements in Zambia, covering strategic portions of the highly prospective Central African Copperbelt. Some key exploration properties include:

Kitwe - Mwekere: These properties cover an area of 3,170 km2 in the Zambian Copperbelt, adjoining and surrounding the mining leases of the Mopani, Konkola Copper Mines and First Quantum operations. The most highly prospective of these is the target sequence lying along strike between the Bwana Mkubwa and Mufulira mining leases and extending for approximately 90 kms along the border between Zambia and the DRC. Equinox controls the Zambian side of this zone which includes a total of 30 kms strike of the sequence that hosts First Quantum's Frontier (previously Lufua) and Nina Prospects (located within 2 kms on the DRC side of the border). In addition, at the Ndola West Prospect, Mufulira style copper mineralization has been intersected over 1.8 kms strike length that requires further evaluation.

Mwombezhi Dome: The 2,400 km2 Mwombezhi Dome property in the Northwest Copperbelt covers the south-western lobe of the Mwombezhi Dome. The north-eastern lobe hosts the Lumwana Copper Project ("Lumwana") deposits which are already covered by the Company's Lumwana Large Scale Mining License. Any discovery at Mwombezhi Dome could positively impact Lumwana development.

Kabompo: The Kabompo property covers 5,900 km2 of the Kabompo Dome, the next dome west of the Mwombezhi Dome at Lumwana in the North Western province of Zambia. Widespread copper mineralisation has been identified at Kabompo, including wide zones of low grade copper mineralization intersected at the Kalaba Prospect.

The Zambezi Project has been explored since 1996 when Equinox first established the Zambezi Joint Venture with Anglo American. Equinox and Anglo American have now agreed to restructure the Zambezi Project ownership on terms that include the following:

- The Zambezi Joint Venture is terminated;

- Equinox is transferred a 100% interest in the Zambezi Project properties;

- Anglo American is entitled to a 1.5% net smelter return from any production from the Zambezi properties; and

- If Equinox discovers a Mineral Resource of greater than 3 million tonnes of copper metal (or equivalent), then Anglo American may exercise a "claw-back option" under which it may earn a 70% interest in the Mineral Resource by repaying Equinox 250% of expenditure incurred and funding a Bankable Feasibility Study.

Equinox President and CEO, Craig Williams commented that "Equinox will now be able to re-invigorate exploration on the Zambezi Project which covers an extensive, strategically positioned land package in Zambia. Our exploration team has detailed knowledge of this land package and specific expertise in copper exploration in Zambia, evidenced by the recent blind discovery at Chimiwungo North. We believe that exploration of the highly prospective Zambezi Project may yield further discoveries that could enhance our development activities in Zambia."


Map of the Zambezi Project, Zambia

http://www2.ccnmatthews.com/database/fax/2000/eqn614.pdf


Equinox is a Canadian-Australian listed resource company engaged principally in the exploration and development of mineral properties in Zambia. Equinox has completed a bankable feasibility study at its 100% owned Lumwana Project in Zambia. With Measured and Indicated Resource of 269 million tonnes of ore grading at 0.8% Cu, Equinox plans to develop Lumwana to become a mid-tier copper mining company and to produce cash flow to sustain further exploration and growth, thereby maximizing shareholder returns through capital appreciation.

On Behalf of the Board of Directors of Equinox:

Craig R. Williams - President & Chief Executive Officer

For information on Equinox and technical details on the Lumwana Project please refer to the company website at www.equinoxminerals.com

Forward Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Toronto and Australian securities authorities. Unless otherwise indicated, technical information contained in this release is based on information compiled by a "Qualified Person" who is either a corporate member of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists or the CIM, including Mr. M. Richards, an employee of the Company.

Contact Information

  • Equinox Minerals Limited
    Craig R Williams
    President & CEO
    +61 (0) 8 9322 3318
    or
    Equinox Minerals Limited
    Michael Klessens
    V.P. Finance & CFO
    +61 (0) 8 9322 3318
    or
    Equinox Minerals Limited
    Kevin van Niekerk
    V.P. Investor Relations & Corporate Development
    +1 (416) 865 3393
    www.equinoxminerals.com