FQM.L Regulatory News (FQM)

27 Apr 2005 07:00

First Quantum Minerals Ld26 April 2005 NEWS RELEASE 05-05 April 26, 2005 www.first-quantum.com FIRST QUANTUM'S KANSANSHI COPPER-GOLD MINE BEGINS COMMERCIAL PRODUCTION (All figures expressed in US dollars) First Quantum Minerals Ltd. (TSX Symbol "FM", LSE Symbol "FQM") is pleased toannounce that as at 19 April 2005, the Kansanshi Copper-Gold Mine has commencedcommercial production for GAAP purposes. In determining that commercialproduction had been reached for this purpose it was necessary for both the oxideand sulphide circuit to have run at above 65% of original design capacitycontinuously for a period of at least one week. During the commissioning stage(November 11, 2004 - April 19, 2005) Kansanshi production totaled 6,792 tonnesof copper in concentrate and 1,941 tonnes of finished copper cathode. The GRD Minproc Definitive Feasibility Study (DFS) for Kansanshi envisioned thetreatment of 4 million tonnes of oxide ore and 2 million tonnes of sulphide ore.Capital additions carried out to the sulphide milling circuit during initialconstruction at Kansanshi have doubled design throughput of sulphide ore to 4million tonnes per year. This increased the design output of copper concentrateand is expected to lead to concentrate production in 2005 substantiallyoutperforming DFS forecasts. C1 (cash) cost for the combined oxide and sulphideproduction is expected to be $0.45 per pound of copper produced. A $29 millioncapital program committed for 2005 will further expand the sulphide circuit toeight million tonnes of treatment capacity which will result in an average of145,000 tonnes of finished copper production per year during the period of2006-2009. First Quantum has also been investigating alternative processing routes for aportion of the increased copper concentrate production. To this end, theCompany has purchased a complete "second-hand" pressure oxidation facility. Thepressure oxidation facility is currently being dismantled and over the nextseveral months will be transported to Kansanshi. Once on site, the pressureoxidation facility and ancillary equipment will be reconstructed andcommissioned for use. An additional advantage of this technology at Kansanshiis that it will generate much of the acid required for oxide leaching. It willalso enable the leach circuit to operate at elevated temperatures and hencesubstantially improve copper recovery in mixed ores. A full report of theimpact of this process route is being prepared by independent consultants,Bateman Engineering Pty Ltd. Philip Pascall, Chairman & CEO commented, "The successful development ofKansanshi is a credit to our project team and mine management and firmlyestablishes First Quantum's position in the re-emergence of the ZambianCopperbelt as a leading world producer of copper. This could not have beenachieved without the Government of the Republic of Zambia's initiative ofsupporting new investment in the copper industry". On Behalf of the Board of Directors 12g3-2b-82-4461of First Quantum Minerals Ltd. Listed in Standard and Poor's"G. Clive Newall" Sedar Profile #00006237G. Clive NewallPresident For further information visit our web site at www.first-quantum.com United Kingdom contact: Clive Newall, President1st Floor, Mill House Mill Bay Lane Horsham West Sussex RH12 1TQ United Kingdom Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: clive.newall@fqml.com or Carina Corbett, 4C Communications Ltd, Tel: + 44 20 7907 4761 North American contact: Geoff Chater or Bill Iversen Suite 800, 543 Granville Street, Vancouver, British Columbia, Canada V6C 1X8 Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: info@fqml.com . This information is provided by RNS The company news service from the London Stock Exchange