Lumwana uranium potential growing for Equinox (November 26, 2007)

Vancouver — The completion of infill drilling at what will be Africa’s largest copper mine has shown definitively that the orebody also hosts discrete zones of high-grade uranium mineralization, and Equinox Minerals (EQN-T, EQXMF-O) plans to turn those drill results into a uranium feasibility study as soon as possible.

The Malundwe copper orebody is the larger of two deposits at Lumwana, Equinox’s wholly owned project in northwestern Zambia, and it is the orebody that also hosts uranium.

A 2003 feasibilty study for Lumwana included a uranium resource of 9.5 million tonnes grading 0.093% U3O8 in the indicated category as well as 2.6 million inferred tonnes averaging 0.042% U3O8, for a combined 21.4 million contained pounds U3O8.

In order to upgrade the Malundwe uranium resources to the measured and indicated categories, Equinox just completed an infill program including 158 reverse-circulation (RC) holes and 12 diamond-drill holes spread along the 2-km strike length of mineralization. The program brought drill spacing to a 50-metre grid.

Of 170 holes drilled, 135 intersected uranium mineralization of greater than 0.02% U3O8. Hole 62 returned the longest uranium intersection, cutting 17 metres of 0.56% U3O8 starting from 10 metres depth. Hole 159 hit 11 metres of 0.75% U3O8 from 67 metres depth.

The program also produced some short, high-grade intersections. Hole 115 returned 2.56% U3O8 over 2 metres from 81 metres down-hole, and hole 192 cut 6 metres grading 1.41% U3O8.

The deposit holds significant uranium mineralization along the central portion of the copper orebody’s western flank, primarily within two discrete bodies. Mineralization lies preferentially associated with the hangingwall and footwall contact of the Malundwe copper sulphide orebody and, significantly, also extends into the footwall suite of rocks that are copper-barren. Uranium occurs almost exclusively as uraninite, varying from coarse aggregates of up to 3 cm long to fine-grained disseminations.

Lumwana is a 1,355-sq.-km project hosting measured and indicated reserves of 321 million tonnes averaging 0.73% copper, plus 417 million inferred tonnes of 0.6% copper. Construction is under way at the fully permitted site, where Equinox plans to sequentially mine by open pit the Malundwe and Chimiwungo deposits, which are 7 km apart.

When completed, Lumwana will produce an average of 169,000 tonnes copper in concentrates for the first six years of its 37-year mine life. The mill, which will process 20 million tonnes of ore per year, will also rank as the largest in Africa. In August, Equinox closed a US$583.8-million project debt facility made up of subordinated and senior project financing, giving the company enough capital to complete construction at Lumwana.