Dear Sir/Madam,
Equinox latest PR: Releases Results for Quarter Ended
September 30, 2007:
Summary:
Equinox Minerals Limited (TSX and ASX symbol:
“EQN”) ("Equinox"or
the "Company") has
released its Management Discussion and Analysis of Financial Conditions and
Results of Operations for the Quarter ended September 30, 2007:
HIGHLIGHTS FOR THE QUARTER - LUMWANA PROJECT DEVELOPMENT
Construction highlights for the quarter included:
Ø
Total on-site
construction workforce increased to over 3,500 employees;
Ø
Pre-stripping
operations of the Malundwe Stage 1 pit continued throughout the quarter with
4.5Mt of waste mined to date the majority of which was delivered to various
bulk-fill activities in support of construction program;
Ø
By quarter end
19 of the 27 x Hitachi EH4500 diesel/AC drive
(“Euclid”)
250 tonne trucks ordered have been delivered to site. 7 trucks have been
commissioned and operational which is more than sufficient for the current
pre-strip program. In addition 2 primary loading units are operational along
with various support and ancillary equipment;
Ø
Both the SAG and
Ball Mill shell and wrap-around motor segments were placed into position and
installation commenced along with the requisite feed and discharge ends;
Ø
Civil activity
during the quarter focussed on:
·
handing over of
the mill foundation areas;
·
commencement of
the second floor slab for the primary crusher; and
·
pouring of the
second floor walls in the reclaim area, tails thickener floor and lower level
floor at the classification building;
Ø
Structural steel
erection commenced late in the quarter in the classification area;
Ø
Tailings and
water storage facilities were largely completed by the end of quarter;
Ø
The extension of the Kansanshi substation was largely
completed by quarter end. Progress on the 72km transmission line remains on
schedule with tower erection 50% complete and cable stringing approximately 25%
complete. Lumwana substation construction is well advanced with two 330/33kV
transformers in place and all significant structural steel erected.
Commissioning of reticulated power is planned for late 2007; and
Ø
Town development
activities progressed with all main infrastructure (water, power and sewerage)
progressing ahead of housing construction activities. By quarter end
approximately 250 houses were complete and ready for occupancy.
The project remains on schedule and budget with commissioning scheduled
for late Q2-2008.
Key development highlights include:
Ø
Equinox’s
wholly owned subsidiary Lumwana Mining Company Limited signed concentrate sale and purchase agreements with Mopani Copper Mines Plc and Glencore International AG for a total minimum
contractual “take and pay” tonnage of 600,000 dry metric tonnes of
Lumwana copper concentrates. Combined
with the contract previously signed with Chambishi Copper Smelter Limited (the
joint venture between China Nonferrous Metal Mining (Group) Co. Ltd. and Yunnan
Copper Industry (Group) Co. Ltd), jointly, these concentrate sale and purchase agreements now provide for the processing of 100% of the
scheduled concentrate output expected to be produced in each of the first 5
year’s of Lumwana production;
Ø
The Company
successfully achieved financial close on its US$583.8 million Lumwana Project
finance debt facility concluding all requisite funding for completion of
construction of the Lumwana Project. Following satisfaction of all material
conditions precedent and completion of all equity expenditure on the project as
required by the lenders, the process of drawdown commenced.
Ø
Equinox completed
its Lumwana copper hedging program as required under its debt finance
facilities. Combined, the Company has hedged 30% of the initial 3 years of
expected Lumwana copper production. Of this, only half (or 15% of planned
production) has been committed to forward contracts, the other half by way of
deferred premium put options, thereby leaving 85% of annual production during
these 3 years exposed to the upside of a rising copper price;
Ø
In connection
with the execution of the US$407.6 million Lumwana Project fixed price EPC
construction contract (“EPC”) Equinox issued to the EPC
Contractors, a total of 1,108,544 common shares (“Common Shares”)
to the value of C$4,317,890 (US$4,314,000) that being a portion of the second
quarterly milestone payment under the terms of the EPC contract. Remaining
quarterly Common Share issuances will be made progressively over the term of
the EPC contract and will total US$8,628,000. The milestone payment signifies
that the completion of Lumwana construction has now passed the 50% mark.
URANIUM FEASIBILITY STUDY
Highlights for the quarter included:
Ø
The Company completed all scheduled Lumwana Uranium
Feasibility Study (“UFS”) drilling at Malundwe with 152 holes
(totaling 14,606m) drilled by reverse circulation percussion drilling and 10
holes (totaling 778m) completed by diamond drilling. Samples were despatched
for assay, with the results from approximately 50 holes still outstanding;
Ø
The Company
released the first update on drilling progress for the UFS. High-grade results
of note include MLW0055 which intersected 11m @ 0.75% U3O8
from 24m including 3m of 2.66% U3O8 from 25m. All results
are presented in Table 1 in the press release dated July 24, 2007 available on
the Company’s website;
Ø
Ausenco Projects
Limited, UFS consultants, made scheduled progress on engineering design and
project costing of the Lumwana uranium plant. Metallurgical test work for
uranium leaching and copper extraction is ongoing; and
Ø
The UFS remains
on schedule to be delivery to the Company in late Q1 2008.
EXPLORATION
Highlights for the quarter included:
Ø
At Kababisa,
approximately 5km north of the Lumwana process plant, drilling was undertaken
with the completion of 28 holes (4,456m) drilled by reverse circulation
percussion drilling and two holes (292m) completed by diamond drilling. Assay
results for this program are awaited. The target remains open to the north and
south and down dip;
Ø
At Ndola West,
the Company’s major project on the Copperbelt 300km east of Lumwana,
drilling was initiated with one drill rig completing 14 holes (1,031m) drilled
by reverse circulation percussion drilling by the end of the quarter. The
program is on-going;
Ø
North of the
Ndola West prospect and within the same lease, Equinox is investigating another
target named Ngala. IP was conducted at Ngala during the quarter; and
Ø
Within the
Kabompo lease located 120km west of Lumwana, extensive fieldwork comprising
prospecting, soil sampling and reconnaissance field mapping was conducted. This
work has identified priority targets for both copper and uranium mineralization
and two of these are currently being drill tested.
CORPORATE
Ø
Equinox recorded
a consolidated net loss for the three months ended September 30, 2007 of US$9.3
million, or US$0.016 loss per share. This compares to a consolidated net loss
of US$4.3 million, or US$0.008 loss per share, for the previous three months
ended June 30, 2007. As at September 30, 2007, Equinox had cash resources of
US$51.4 million and undrawn debt facilities of US$451.5 million.
Equinox is an international mineral exploration and
development company listed on both the TSX and ASX (TSX and ASX symbol:
“EQN”). Lumwana, owned 100% by Equinox,
is located in the North Western Province
of the Republic
of Zambia. The Lumwana
mine is expected to produce an average of 169,000 tonnes of copper metal per
year contained in concentrates for the first 6 years of its expected 37 year
mine life and construction is on schedule for commissioning in Q2 2008.
A copy of Equinox’s Q3
Financial Statements and the MD&A are available at www.sedar.com, www.asx.com.au
and at www.equinoxminerals.com
Act.
Thank you for your interest in Equinox and
the Lumwana project.
Kind regards
Kevin
Kevin J. van Niekerk
Vice President
Investor Relations &
Corporate Development
EQUINOX MINERALS LIMITED
155 University Avenue
Suite 1701
Toronto ON
M5H 3B7
Canada
Work: (416) 865-3393 x6226
Fax: (416) 865-3394
Mob: (416) 904-5340
www.equinoxminerals.com
