Inmet Mining Announces Results of Cobre Panama Economic Pit

Inmet Mining Announces Results of Cobre Panama Economic Pit Price
Sensitivity Analysis 
$3.00/lb Copper Pit Shells Would Add 4.0 Billion Pounds of Contained
Copper 
TORONTO, CANADA -- (Marketwire) -- 01/21/13 --  
Note: all amounts in this press release are shown in US dollars
unless otherwise noted. 
Inmet Mining Corporation (Inmet) (TSX:IMN) is pleased to announce the
results of an economic pit price sensitivity analysis. The current
Cobre Panama mineral reserve estimate (see Table 3) is based on a
conservative copper price of $2.25/lb. In order to assess the
sensitivity of mineral resources contained within economic pit shells
to the $3.00/lb copper price now more commonly used in the industry,
the economic pit limits were analyzed at $0.25/lb increments up to
$3.50/lb. Results are presented in Table 1. At a copper price of
$3.00/lb the estimated mineral resources contained within economic
pit shells increase by 25% to 4,260 Mt and contain an additional 4.0
billion pounds of copper, 1.3 million ounces of gold, 26 million
ounces of silver and 67 million pounds of molybdenum.   
Frank Balint, Vice-President Corporate Development of Inmet
commented, "This pit price sensitivity analysis further illustrates
the inherent option value of a deposit the size and quality of Cobre
Panama." 


 
                                                                            
Table 1: Economic Pit Price Sensitivity Analysis (combined results from all 
 deposits)                                                                  
                                                                            
----------------------------------------------------------------------------
           Contained Mineral Resources(1)                                   
Metal    (greater than = Variable Internal          Incremental Contained   
Price                 Cutoffs)             Strip    Metal From $2.25 Case   
------------------------------------------      ----------------------------
Cu                 Cu     Mo     Au     Ag           Cu     Mo     Au     Ag
$/lb         Mt     %      %    gpt    gpt Ratio (B lb) (M lb) (M Oz) (M Oz)
----------------------------------------------------------------------------
3.50      4,613  0.33  0.005   0.06   1.20  0.74    5.3     89    1.7     35
3.25      4,464  0.33  0.006   0.06   1.21  0.72    4.8     90    1.5     31
3.00      4,260  0.34  0.006   0.07   1.23  0.70    4.0     67    1.3     26
2.75      4,040  0.35  0.006   0.07   1.25  0.68    3.1     44    1.0     20
2.50      3,740  0.36  0.006   0.07   1.28  0.61    1.7     38    0.5     11
2.25      3,408  0.37  0.006   0.07   1.30  0.56      -      -      -      -
2.00      3,016  0.39  0.006   0.07   1.33  0.52   -2.1    -46   -0.6    -14
----------------------------------------------------------------------------
                                                                            
1. Measured and Indicated. Excludes saprolite and inferred mineral          
resources, which are treated as waste in this tabulation.                   

 
A combination of floating cone (FC) and Lerchs-Grossmann (LG)
analyses were conducted to determine the above referenced economic
pit limits for six mineral deposits in the Cobre Panama project
concession: Botija, Colina, Valle Grande (VG), Medio, Botija
Abajo/Brazo (BABr), and Balboa. Prior to computing block values in
the deposit models, metallurgical recoveries were computed and used
to estimate recoverable grades for each block. Price sensitivities
were evaluated in $0.25/lb Cu increments up to $3.50/lb, with a base
case of $2.25/lb Cu, $13.50/lb Mo, $1000/oz Au, and $16.00/oz Ag.
Prices for Mo, Au, and Ag were varied proportionately in all cases.  
The estimates presented in Table 1 should not be confused with
mineral reserves, which are based on open pit designs that
incorporate access, operating, geotechnical and other criteria in
addition to economic constraints. The results of the pit price
sensitivity analyses presented here should not be relied upon, but do
provide an indication of potential mineral reserves that must still
be validated by fully engineered designs. Mineral resources that are
not mineral reserves do not have demonstrated economic viability. 
Qualified Persons and Quality Assurance 
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 and the economic pit price sensitivity analysis was
prepared 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: $2.25 per pound  
--  gold price: $1,000 per ounce  
--  silver price: $16 per ounce  
--  molybdenum price: $13.50 per pound  
--  Mining costs: $1.66 per tonne of ore mined, $1.96 per tonne of waste
    mined and  
--  Milling and general and administration cost: $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 $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 2: Mineral Resources by classification December 2012                  
                                                                            
----------------------------------------------------------------------------
Classification                                                              
of Resources       Quantity          Grade              Contained Metal     
                  ----------------------------------------------------------
                               Cu     Mo    Au   Ag    Cu    Mo     Au    Ag
                         Mt     %      %   gpt  gpt  B lb  M lb   k Oz  M Oz
----------------------------------------------------------------------------
Measured                262  0.56  0.009  0.13  1.5   3.3    54  1,118    13
----------------------------------------------------------------------------
Indicated             3,941  0.34  0.005  0.06  1.2  29.4   472  7,888   157
----------------------------------------------------------------------------
Total                 4,203  0.35  0.006  0.07  1.3  32.7   526  9,006   170
----------------------------------------------------------------------------
Inferred              3,686  0.23  0.004  0.04  1.0  18.3   345  4,396   115
----------------------------------------------------------------------------
Note: Rounding as required by reporting guidelines may result in apparent   
summation differences between tonnes, grade and contained metal content.    
                                                                            
Table 3: Mineral Reserves by classification December 2012                   
                                                                            
----------------------------------------------------------------------------
Classification                                                              
of Reserves                Quantity        Grade          Contained Metal   
                          --------------------------------------------------
                                      Cu    Mo   Au  Ag   Cu   Mo    Au   Ag
                                 Mt    %     %  gpt gpt B lb M lb  k Oz M Oz
----------------------------------------------------------------------------
Proven                          258 0.57 0.010 0.14 1.6  3.3   54 1,118   13
----------------------------------------------------------------------------
Probable                      2,800 0.37 0.006 0.07 1.3 22.7  361 6,170  118
----------------------------------------------------------------------------
Total Proven & Probable       3,058 0.38 0.006 0.07 1.3 25.9  416 7,300  131
----------------------------------------------------------------------------
Note: Rounding as required by reporting guidelines may result in apparent   
summation differences between tonnes, grade and contained metal content.    

 
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, Investor Relations
+1 416 361 4808
www.inmetmining.com 
Laurel Hill Advisory Group, LLC
Penny Rice
+1 877 452 7184 or + 1 416 304 0211
assistance@laurelhill.com 
Media:
Longview Communications
David Ryan
+1 416 649 8007
 
 
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