Enterprise project, Zambia
The maiden mineral resource estimate for the Enterprise nickel deposit has been identified at 40.1 Mt at 1.07% nickel. This supports proven and probable mineral reserves of 32.7 Mt at 1.10% nickel and based on a 4 Mtpa operation, the mine life would be approximately eight years producing 38,000 to 40,000 tonnes of nickel per annum. There is further potential to increase both the mineral resource and reserve as drilling continues in the adjacent Enterprise South West Zone. The Enterprise deposit is located approximately 12 kilometres north west of the Sentinel project.
The longest lead equipment items being the SAG mill and the ball mill have been ordered, and engineering design is progressing with area layouts approved. Geotechnical investigation of the mill, crusher and stockpile are complete showing favourable ground conditions. Earthworks are set to begin on the Enterprise haul road and first concrete placement is planned for Q2 2013.
Target completion for the Enterprise project is between late 2014 and early 2015.
Cobre Panama, Panama
Following the successful acquisition of Inmet, the Company has commenced a detailed review of the Cobre Panama project. The objective is to re-establish the project on a more 'self-perform' basis to maximize the benefit of the Company's core project development skills. To this end a number of key contracts, including the main engineering, procurement and construction management contract, have been modified or cancelled and a rationalization of the work force is currently under way.
This review is expected to take between two and four months before a revised capital cost estimate and project timetable will be available.
Exploration programs continued at a sustained level in most areas with ongoing drilling campaigns active in Finland, Mauritania and Zambia.
A considerable review process has now commenced to integrate the Inmet exploration activities into First Quantum. Other than ongoing drilling at Cobre Panama, the Inmet exploration portfolio includes projects in Finland and Peru which complement the Company's current position as well as several early stage copper porphyry prospects in Chile, Mexico and the USA. The objective of the review is to ensure that the best projects from both organizations are selected and prioritized in line with the Company's corporate objectives.
Five rigs are currently active on the Trident project. At Sentinel the program includes holes focused on resource infill, communition testing and geotechnical assessment. These will assist the first stage pit optimization program which is on target for completion by mid-2013. A small resource extension drilling program commenced at Enterprise and should also be complete by mid-year.
Ground geophysical surveys are planned over the new Bream prospect as well as areas around Enterprise and Intrepid. A technical review of the Trident datasets has generated several new targets that will be drill tested during the latter part of 2013.
Exploration and resource drilling continued during Q1 2013. Exploration of the Rocky Hill prospect between South East Dome and Main pit continued to return mineralized intercepts that should provide an extension to the South East Dome optimized pit.
With the completion of much of the Kansanshi near mine exploration program, objectives have now extended to exploring for similar mineralization styles around the Solwezi Dome immediately south of the mine. Analysis of historical data with the benefit of current knowledge from Kansanshi suggests that considerable potential exists in this area.
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