Inmet Mining Corporation

TSX : IMN


Inmet Mining Corporation

December 13, 2012 16:45 ET

Inmet Mining Announces 27% Increase to Cobre Panama Copper Reserves

Mine Life Extends to 40 Years with 26 Billion Pounds Contained Copper

TORONTO, CANADA--(Marketwire - Dec. 13, 2012) - Inmet Mining Corporation (Inmet) (TSX:IMN) is pleased to announce an increase to proven and probable mineral reserves at its 80 percent owned Cobre Panama project. The additional mineral reserves from the Balboa, Brazo and Botija Abajo deposits increase Cobre Panama's total estimated contained copper by 27 percent to approximately 26 billion pounds. Estimated contained gold increases by 41 percent to approximately 7.3 million ounces. The additional mineral reserves have been integrated into a revised mine plan that extends the estimated mine life from 31 to 40 years. A summary of the revised mine plan is attached as Table 3.

Table 1: Summary of changes to mineral reserves (100% basis)
Cu
(Blb)

Au
(Moz)

Cobre Panama Project at December 2011
Proven 3.3 1.1
Probable 17.2 4.0
Proven + Probable 20.4 5.2
Addition of Balboa, Brazo and Botija Abajo
To Probable 5.5 2.1
Updated Project Total at December 2012
Proven 3.3 1.1
Probable 22.7 6.2
Proven + Probable 25.9 7.3
+27 % +41 %
Table 2: Mineral reserve estimates by classification
Contained Metal
kt Cu
%
Mo
%
Au
g/t
Ag
g/t
Cu
Blb
Mo
Mlb
Au
koz
Ag
Moz
Cobre Panama at December 2011
Proven 258,000 0.57 0.010 0.14 1.6 3.3 55 1,130 13
Probable 2,061,000 0.38 0.007 0.06 1.4 17.2 320 4,040 91
Total 2,319,000 0.40 0.007 0.07 1.4 20.4 373 5,170 104
Balboa, Brazo, Botija Abajo Additions
Probable 740,000 0.34 0.003 0.09 1.1 5.5 43 2,130 27
Total 740,000 0.34 0.003 0.09 1.1 5.5 43 2,130 27
Total Cobre Panama at December 2012
Proven 258,000 0.57 0.010 0.14 1.6 3.3 55 1,130 13
Probable 2,800,000 0.37 0.006 0.07 1.3 22.7 361 6,170 118
Total 3,058,000 0.38 0.006 0.07 1.3 25.9 416 7,300 131
Inmet's share 1 20.7 333 5,840 105
1 Inmet's attributable 80% share before consideration of delivery obligations under the precious metals stream agreement with a subsidiary of Franco-Nevada Corporation.
Table 3: Mine Plan (basis 100%)
Pre-Prod Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11-15 Y16-20 Y21-25 Y26-30 Y31-35 Y35-40 Total
Mining
Ore kt 52,241 58,062 58,400 58,654 58,400 57,950 58,400 58,400 57,360 85,407 437,152 438,000 426,946 391,841 399,947 361,336 3,058,495
Stkpl + Waste kt 119,037 66,477 57,767 45,431 44,986 45,437 47,479 48,442 51,992 71,612 51,284 249,193 300,540 320,866 350,400 294,150 51,117 2,216,210
Total kt 119,037 118,718 115,829 103,831 103,640 103,837 105,429 106,842 110,392 128,973 136,691 686,345 738,540 747,812 742,241 694,097 412,453 5,274,705
Milling
Ore kt 52,241 58,062 58,400 58,654 58,400 57,950 58,400 58,400 57,360 85,407 437,152 438,000 426,946 391,841 399,947 361,336 3,058,495
Grade
Cu % 0.43 0.52 0.54 0.55 0.54 0.56 0.57 0.54 0.47 0.45 0.39 0.38 0.35 0.33 0.33 0.33 0.38
Mo % 0.008 0.009 0.011 0.009 0.010 0.010 0.009 0.009 0.008 0.008 0.007 0.008 0.005 0.005 0.005 0.004 0.006
Au g/t 0.09 0.11 0.11 0.11 0.10 0.11 0.13 0.11 0.08 0.08 0.06 0.08 0.07 0.06 0.06 0.08 0.07
Ag g/t 1.3 1.3 1.4 1.4 1.6 1.5 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.3 1.2 1.4 1.3
Contained Metal
Cu kt 225 303 313 320 316 326 333 314 267 383 1,692 1,678 1,476 1,289 1,331 1,191 11,756
Mo kt 4 5 6 5 6 6 5 5 5 7 29 33 21 18 19 14 189
Au koz 159 201 207 209 186 197 244 200 154 220 810 1,059 950 760 765 973 7,294
Ag koz 2,120 2,500 2,590 2,680 2,940 2,800 3,330 3,220 2,880 4,070 19,250 17,700 15,890 17,000 15,690 16,230 130,970
Recoverable Metal
Cu kt 205 280 290 296 292 302 308 289 242 349 1,516 1,518 1,295 1,125 1,163 964 10,434
Mo kt 2 3 3 3 3 3 3 3 2 4 16 18 11 10 10 6 101
Au koz 92 119 124 126 108 116 154 121 87 123 403 572 487 410 443 501 3,984
Ag koz 1,040 1,180 1,230 1,270 1,390 1,320 1,580 1,530 1,360 1,920 9,100 8,310 6,740 7,500 6,720 5,470 57,660

Qualified Persons and Quality Assurance

Mineral reserves and resources are shown on a 100 percent basis.

The mineral reserve and resource estimates are prepared in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on November 27, 2010, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003. You will find the definitions and guidelines at www.cim.org.

Mineral resources as at August, 2012, were estimated by Robert Sim, P. Geo., of SIM Geological Inc., a qualified person under National Instrument 43-101. Mineral reserves as at December, 2012 were estimated by William Rose, P.E., of WLR Consulting, Inc., a qualified person under National Instrument 43-101.

Reserve estimates are based on the following assumptions:

  • copper price: US $2.25 per pound
  • gold price: US $1,000 per ounce
  • silver price: US $16 per ounce
  • molybdenum price: US $13.50 per pound
  • Mining costs: US $ 1.66 per tonne of ore mined, US $ 1.96 per tonne of waste mined and
  • Milling and general and administration cost: US $ 5.27 per tonne of ore milled, average life of mine metallurgical recoveries: 89 percent for copper, 55 percent for gold, 44 percent for silver and 53 percent for molybdenum.

Mineral resources include mineral reserves.

Resource grades are estimated using ordinary kriging with a nominal block size of 25 metres by 25 metres by 15 metres. Resources are limited inside a pit shell defined by a copper price of US $2.60 per pound, $1.75 per tonne mining cost and $7.02 per tonne total site operating cost, and are tabulated at a cut-off grade of 0.15 percent copper.

Table 4: Mineral resource estimates by classification
Contained Metal
Mt Cu
%
Mo
%
Au
g/t
Ag
g/t
Cu
Blb
Mo
Mlb
Au
koz
Ag
Moz
Measured 262 0.56 0.009 0.13 1.5 3.3 54 1,118 13.0
Indicated 3,941 0.34 0.005 0.06 1.2 29.4 472 7,888 157.2
Total 4,203 0.35 0.006 0.07 1.3 32.7 526 9,006 170.3
Inferred 3,686 0.23 0.004 0.04 1.0 18.3 345 4,396 115.4

Forward looking information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.

About Inmet

Inmet is a Canadian-based global mining company that produces copper and zinc. We have three mining operations: Çayeli (Turkey), Las Cruces (Spain) and Pyhäsalmi (Finland), and own 80% of the Cobre Panama project, currently in construction. This press release is also available at www.inmetmining.com.

Contact Information

  • Inmet Mining Corporation
    Flora Wood
    Director of Investor Relations
    +1 416 361 4808

    Inmet Mining Corporation
    Jochen Tilk
    President & CEO
    +416 860 3972
    www.inmetmining.com