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Inmet Mining Announces 27% Increase to Cobre Panama Copper


Inmet Mining Announces 27% Increase to Cobre Panama Copper Reserves

Mine Life Extends to 40 Years with 26 Billion Pounds Contained Copper

TORONTO, CANADA -- (Marketwire) -- 12/13/12 -- Inmet Mining Corporation (Inmet) (TSX:IMN) is pleased to announce an increase to proven and probable mineral reserves at its 80 percent owned Cobre Panama project. The additional mineral reserves from the Balboa, Brazo and Botija Abajo deposits increase Cobre Panama's total estimated contained copper by 27 percent to approximately 26 billion pounds. Estimated contained gold increases by 41 percent to approximately 7.3 million ounces. The additional mineral reserves have been integrated into a revised mine plan that extends the estimated mine life from 31 to 40 years. A summary of the revised mine plan is attached as Table 3.


 
Table 1: Summary of changes to mineral reserves (100% basis)      
                                                                  
------------------------------------------------------------------
                                                        Cu     Au 
                                                     (Blb)  (Moz) 
------------------------------------------------------------------
Cobre Panama Project at December 2011                             
------------------------------------------------------------------
Proven                                                 3.3    1.1 
------------------------------------------------------------------
Probable                                              17.2    4.0 
------------------------------------------------------------------
Proven + Probable                                     20.4    5.2 
------------------------------------------------------------------
Addition of Balboa, Brazo and Botija Abajo                        
------------------------------------------------------------------
To Probable                                            5.5    2.1 
------------------------------------------------------------------
Updated Project Total at December 2012                            
------------------------------------------------------------------
Proven                                                 3.3    1.1 
------------------------------------------------------------------
Probable                                              22.7    6.2 
------------------------------------------------------------------
Proven + Probable                                     25.9    7.3 
------------------------------------------------------------------
                                                       +27%   +41%
------------------------------------------------------------------
                                                                            
Table 2: Mineral reserve estimates by classification                        
                                                                            
----------------------------------------------------------------------------
                                                             Contained Metal
                                                         -------------------
                                       Cu    Mo   Au   Ag   Cu  Mo    Au  Ag
                                 kt    %     %   g/t  g/t  Blb Mlb   koz Moz
----------------------------------------------------------------------------
Cobre Panama at December 2011                                               
----------------------------------------------------------------------------
Proven                       258,000 0.57 0.010 0.14  1.6  3.3  55 1,130  13
----------------------------------------------------------------------------
Probable                   2,061,000 0.38 0.007 0.06  1.4 17.2 320 4,040  91
----------------------------------------------------------------------------
Total                      2,319,000 0.40 0.007 0.07  1.4 20.4 373 5,170 104
----------------------------------------------------------------------------
Balboa, Brazo, Botija Abajo Additions                                       
----------------------------------------------------------------------------
Probable                     740,000 0.34 0.003 0.09  1.1  5.5  43 2,130  27
----------------------------------------------------------------------------
Total                        740,000 0.34 0.003 0.09  1.1  5.5  43 2,130  27
----------------------------------------------------------------------------
Total Cobre Panama at December 2012                                         
----------------------------------------------------------------------------
Proven                       258,000 0.57 0.010 0.14  1.6  3.3  55 1,130  13
----------------------------------------------------------------------------
Probable                   2,800,000 0.37 0.006 0.07  1.3 22.7 361 6,170 118
----------------------------------------------------------------------------
Total                      3,058,000 0.38 0.006 0.07  1.3 25.9 416 7,300 131
----------------------------------------------------------------------------
                                       Inmet's share (1)  20.7 333 5,840 105
----------------------------------------------------------------------------
(1) Inmet's attributable 80% share before consideration of delivery         
 obligations under the precious metals stream agreement with a subsidiary of
 Franco-Nevada Corporation.                                                 
                               
Table 3: Mine Plan (basis 100%)
                               
-------------------------------
                    Pre-Prod       Y1       Y2        Y3        Y4        Y5
----------------------------------------------------------------------------
Mining                                                                      
----------------------------------------------------------------------------
  Ore         kt               52,241   58,062    58,400    58,654    58,400
----------------------------------------------------------------------------
  Stkpl +                                                                   
   Waste      kt     119,037   66,477   57,767    45,431    44,986    45,437
----------------------------------------------------------------------------
  Total       kt     119,037  118,718  115,829   103,831   103,640   103,837
----------------------------------------------------------------------------
Milling                                                                     
----------------------------------------------------------------------------
  Ore         kt               52,241   58,062    58,400    58,654    58,400
----------------------------------------------------------------------------
Grade                                                                       
----------------------------------------------------------------------------
  Cu          %                  0.43     0.52      0.54      0.55      0.54
----------------------------------------------------------------------------
  Mo          %                 0.008    0.009     0.011     0.009     0.010
----------------------------------------------------------------------------
  Au          g/t                0.09     0.11      0.11      0.11      0.10
----------------------------------------------------------------------------
  Ag          g/t                 1.3      1.3       1.4       1.4       1.6
----------------------------------------------------------------------------
Contained Metal                                                       
      
----------------------------------------------------------------------------
  Cu          kt                  225      303       313       320       316
----------------------------------------------------------------------------
  Mo          kt                    4        5         6         5         6
----------------------------------------------------------------------------
  Au          koz                 159      201       207       209       186
----------------------------------------------------------------------------
  Ag          koz               2,120    2,500     2,590     2,680     2,940
----------------------------------------------------------------------------
Recoverable Metal                                                           
----------------------------------------------------------------------------
  Cu          kt                  205      280       290       296       292
----------------------------------------------------------------------------
  Mo          kt                    2        3         3         3         3
----------------------------------------------------------------------------
  Au          koz                  92      119       124       126       108
----------------------------------------------------------------------------
  Ag          koz               1,040    1,180     1,230     1,270     1,390
----------------------------------------------------------------------------
 
                         Y6       Y7        Y8        Y9       Y10    Y11-15
----------------------------------------------------------------------------
Mining                                                                      
----------------------------------------------------------------------------
  Ore         kt     57,950   58,400    58,400    57,360    85,407   437,152
----------------------------------------------------------------------------
  Stkpl +                                                                   
   Waste      kt     47,479   48,442    51,992    71,612    51,284   249,193
----------------------------------------------------------------------------
  Total       kt    105,429  106,842   110,392   128,973   136,691   686,345
----------------------------------------------------------------------------
Milling                                                                     
----------------------------------------------------------------------------
  Ore         kt     57,950   58,400    58,400    57,360    85,407   437,152
----------------------------------------------------------------------------
Grade                                                                       
----------------------------------------------------------------------------
  Cu          %        0.56     0.57      0.54      0.47      0.45      0.39
----------------------------------------------------------------------------
  Mo          %       0.010    0.009     0.009     0.008     0.008     0.007
----------------------------------------------------------------------------
  Au          g/t      0.11     0.13      0.11      0.08      0.08      0.06
----------------------------------------------------------------------------
  Ag          g/t       1.5      1.8       1.7       1.6       1.5       1.4
----------------------------------------------------------------------------
Contained Metal                                                             
----------------------------------------------------------------------------
  Cu          kt        326      333       314       267       383     1,692
----------------------------------------------------------------------------
  Mo          kt          6        5         5         5         7        29
----------------------------------------------------------------------------
  Au          koz       197      244       200       154       220       810
----------------------------------------------------------------------------
  Ag          koz     2,800    3,330     3,220     2,880     4,070    19,250
----------------------------------------------------------------------------
Recoverable Metal                                                           
----------------------------------------------------------------------------
  Cu          kt        302      308       289       242       349     1,516
----------------------------------------------------------------------------
  Mo          kt          3        3         3         2         4        16
----------------------------------------------------------------------------
  Au          koz       116      154       121        87       123       403
----------------------------------------------------------------------------
  Ag          koz     1,320    1,580     1,530     1,360     1,920     9,100
----------------------------------------------------------------------------
 
                      Y16-20   Y21-25   Y26-30    Y31-35    Y35-40     Total
----------------------------------------------------------------------------
Mining                                                                      
----------------------------------------------------------------------------
  Ore         kt     438,000  426,946  391,841   399,947   361,336 3,058,495
----------------------------------------------------------------------------
  Stkpl +                                                                   
   Waste      kt     300,540  320,866  350,400   294,150    51,117 2,216,210
----------------------------------------------------------------------------
  Total       kt     738,540  747,812  742,241   694,097   412,453 5,274,705
----------------------------------------------------------------------------
Milling                                                                     
----------------------------------------------------------------------------
  Ore         kt     438,000  426,946  391,841   399,947   361,336 3,058,495
----------------------------------------------------------------------------
Grade                                                                       
----------------------------------------------------------------------------
  Cu          %         0.38     0.35     0.33      0.33      0.33      0.38
----------------------------------------------------------------------------
  Mo          %        0.008    0.005    0.005     0.005     0.004     0.006
----------------------------------------------------------------------------
  Au          g/t       0.08     0.07     0.06      0.06      0.08      0.07
----------------------------------------------------------------------------
  Ag          g/t        1.3      1.2      1.3       1.2       1.4       1.3
----------------------------------------------------------------------------
Contained Metal                                                             
----------------------------------------------------------------------------
  Cu          kt       1,678    1,476    1,289     1,331     1,191    11,756
----------------------------------------------------------------------------
  Mo          kt          33       21       18        19        14       189
----------------------------------------------------------------------------
  Au          koz      1,059      950      760       765       973     7,294
--------------------
--------------------------------------------------------
  Ag          koz     17,700   15,890   17,000    15,690    16,230   130,970
----------------------------------------------------------------------------
Recoverable Metal                                                           
----------------------------------------------------------------------------
  Cu          kt       1,518    1,295    1,125     1,163       964    10,434
----------------------------------------------------------------------------
  Mo          kt          18       11       10        10         6       101
----------------------------------------------------------------------------
  Au          koz        572      487      410       443       501     3,984
----------------------------------------------------------------------------
  Ag          koz      8,310    6,740    7,500     6,720     5,470    57,660
----------------------------------------------------------------------------

Qualified Persons and Quality Assurance

Mineral reserves and resources are shown on a 100 percent basis.

The mineral reserve and resource estimates are prepared in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on November 27, 2010, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003. You will find the definitions and guidelines at www.cim.org.

Mineral resources as at August, 2012, were estimated by Robert Sim, P. Geo., of SIM Geological Inc., a qualified person under National Instrument 43-101. Mineral reserves as at December, 2012 were estimated by William Rose, P.E., of WLR Consulting, Inc., a qualified person under National Instrument 43-101.

Reserve estimates are based on the following assumptions:


 
--  copper price: US $2.25 per pound 
--  gold price: US $1,000 per ounce 
--  silver price: US $16 per ounce 
--  molybdenum price: US $13.50 per pound 
--  Mining costs: US $ 1.66 per tonne of ore mined, US $ 1.96 per tonne of
    waste mined and 
--  Milling and general and administration cost: US $ 5.27 per tonne of ore
    milled, average life of mine metallurgical recoveries: 89 percent for
    copper, 55 percent for gold, 44 percent for silver and 53 percent for
    molybdenum. 

Mineral resources include mineral reserves.

Resource grades are estimated using ordinary kriging with a nominal block size of 25 metres by 25 metres by 15 metres. Resources are limited inside a pit shell defined by a copper price of US $2.60 per pound, $1.75 per tonne mining cost and $7.02 per tonne total site operating cost, and are tabulated at a cut-off grade of 0.15 percent copper.


 
Table 4: Mineral resource estimates by classification                       
                                                                            
----------------------------------------------------------------------------
                                                     Contained Metal        
                                                  --------------------------
                              Cu    Mo    Au    Ag    Cu    Mo      Au    Ag
                        Mt     %     %   g/t   g/t   Blb   Mlb     koz   Moz
----------------------------------------------------------------------------
Measured               262  0.56 0.009  0.13   1.5   3.3    54   1,118  13.0
----------------------------------------------------------------------------
Indicated            3,941  0.34 0.005  0.06   1.2  29.4   472   7,888 157.2
----------------------------------------------------------------------------
Total                4,203  0.35 0.006  0.07   1.3  32.7   526   9,006 170.3
----------------------------------------------------------------------------
Inferred             3,686  0.23 0.004  0.04   1.0  18.3   345   4,396 115.4
----------------------------------------------------------------------------

Forward looking information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains forward-looking information. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, expect, anticipate, and believe or other similar words. Capital and operating cost estimates are forward-looking statements, and are based on assumptions that we believe to be reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our respective business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements.

About Inmet

Inmet is a Canadian-based global mining company that produces copper and zinc. We have three mining operations: Cayeli (Turkey), Las Cruces (Spain) and Pyhasalmi (Finland), and own 80% of the Cobre Panama project, currently in construction. This press release is also available at www.inmetmining.com.

Contacts: Inmet Mining Corporation Flora Wood Director of Investor Relations +1 416 361 4808

Inmet Mining Corporation Jochen Tilk President & CEO +416 860 3972 www.inmetmining.com

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