Equinox Minerals Limited

Equinox Minerals Limited

June 29, 2005 10:13 ET

Equinox Signs Letter of Intent with Ongopolo for the Supply & Purchase of Copper Concentrates from the Lumwana Mine in Zambia

TORONTO, ONTARIO--(CCNMatthews - June 29, 2005) -


Equinox Minerals Limited (TSX:EQN)(ASX:EQN) ("Equinox") is pleased to announce that its 100% owned Zambian subsidiary Equinox Copper Ventures Limited ("ECV") has signed a Letter of Intent ("LOI") for the future supply and sale of copper concentrate from its Lumwana Project in Zambia ("Lumwana") with Ongopolo Mining & Processing Limited ("Ongopolo") of the Republic of Namibia.

As with the recent announcement regarding the signing of an LOI with Palabora, the objective and purpose of this LOI is to conclude terms and conditions for a Long Term Contract ("Sales Agreement") between the parties for the supply and sale of a proportion of the copper concentrate produced at Lumwana from the commencement of commercial production (scheduled to occur in 2007). The Sales Agreement is expected to be finalized between Equinox and Ongopolo later this year. The LOI establishes a framework for the negotiation of the Sales Agreement between the parties.

Commenting on signing the LOI, Craig R. Williams, President & Chief Executive Officer of Equinox said "the signing of this LOI further strengthens the long term future for both Lumwana and Ongopolo and demonstrates the continued progress Equinox is making towards the development of Lumwana."

Equinox is currently conducting similar off-take discussions with other smelters, within and outside Zambia, for the future supply and sale of copper concentrates expected to be produced from Lumwana.

Definitive engineering design by Equinox and GRD Minproc, and the arrangement of project financing with the Equinox bank working group, continue to progress on schedule with financing and design completion scheduled for late 2005.

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. The independent feasibility study, prepared by Aker Kvaerner, Golder Associates and Investor Resources Ltd has been disclosed in the Technical Report dated April 2004, and is compliant with the JORC Code and National Instrument 43-101. 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. With respect to statements relating to exploration activities, the Qualified Person is Mr. Michael Richards, an employee of the Company.

Contact Information

  • Equinox Minerals Limited
    Craig R Williams
    President and Chief Executive Officer
    +61 (0) 8 9322 3318
    Equinox Minerals Limited
    Michael Klessens
    V.P. Finance and CFO
    +61 (0) 8 9322 3318
    Equinox Minerals Limited
    Kevin van Niekerk
    V.P. Investor Relations/Corporate Development
    +1 (416) 865 3393