Equinox Constructing Lumwana

- Following signing of a $583.8 million debt facility in early December 2006, Equinox Minerals has swung into full construction mode at its Lumwana open-pit copper project in northwest Zambia. Project design calls for mining and processing of 20 million mt/y of ore to produce 188,000 mt/y of copper in concentrate during the first five years of operation. Life-of-mine production will average 150,000 mt/y.

Proven and probable reserves at Lumwana total 321 million mt, grading 0.73% copper. Mine life, including mining of current inferred resources, is projected at more than 37 years. Commissioning is scheduled to begin during the second quarter of 2008.

As of late January, long-lead-time equipment had begun to arrive on site at Lumwana, including the initial 240-mtcapacity Hitachi AC-drive trucks. Other key items scheduled for delivery in 2007 include a gyratory crusher; a 38-ft-dia, 18-MW SAG mill; a 26-ft-dia, 16-MW ball mill; and the regrind mill, gearless mill drives, flotation cells, thickeners, apron feeders, and concentrate filters.

The first mass pour of concrete took place in December 2006, with about 700 mt poured on a continuous basis to complete the initial floor of the SAG mill foundation.

In addition to 27 240-mt-capacity haul trucks, Hitachi will supply Lumwana with four 26-m3 electric face shovels and two diesel-powered excavators. Caterpillar will supply the ancillary fleet, and Sandvik will supply the drill rigs. Workshops to support mine equipment assembly and service programs were under construction.

Approximately 25 km of on-site arterial roads had been completed, along with links to the national highway system. Construction of the main dam embankment wall to ICOLD (International Commission on Large Dams) standards had passed the critical height to allow water storage build-up to begin during the current wet season. Topsoil stripping had been completed over the Malundwe deposit, which will be the site of initial mining operations.

Accommodation capacity at Lumwana had reached approximately 1,000 beds in preparation for the ongoing buildup of personnel. Residential housing development was well under way, with 17 houses available for occupancy. The construction camp will progressively be integrated into the Lumwana town development, which is planned to accommodate about 1,000 employees and their dependants on a permanent basis after commercial mining begins.

A joint venture of Ausenco and Bateman Engineering has the engineering, procurement, and construction contract for the project.

Equinox continues to hold discussions with smelters, primarily in central and southern Africa, for placement of Lumwana’s concentrate production.