MMG LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
MMG LIMITED五礦資源有限公司
(Incorporated in Hong Kong with limited liability) (HKEX STOCK CODE: 1208) (ASX STOCK CODE: MMG)
MINERAL RESOURCES AND ORE RESERVES STATEMENT AS AT 30 JUNE 2017
This announcement is made by MMG Limited (Company or MMG and, together with its subsidiaries, the Group) pursuant to rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (Listing Rules) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The board of directors of the Company (Board) is pleased to report the Group's updated Mineral Resources and Ore Reserves Statement as at 30 June 2017 (Mineral Resources and Ore Reserves Statement).
The highlights of the Mineral Resources and Ore Reserves Statement as at 30 June 2017 include:
The Group's Mineral Resources (contained metal) have increased for lead (3%) and have decreased for copper (10%), zinc (10%), silver (10%), gold (14%) and molybdenum (3%).
The Group's Ore Reserves (contained metal) have increased for zinc (28%), lead (41%), silver (2%) and molybdenum (1%) and decreased for copper (6%) and gold (11%).
Mineral Resources tonnes at Kinsevere and Dugald River have increased by 4.5Mt and 3.9Mt respectively.
Ore Reserves tonnes at Dugald River and Rosebery increased by 10.3Mt and 0.2Mt respectively.
Las Bambas Mineral Resources tonnes have decreased by 250Mt.
Las Bambas Ore Reserves tonnes have decreased by 0.5Mt.
Mineral Resources and Ore Reserves for Golden Grove and Avebury have been removed from the Mineral Resources and Ore Reserves Statement due to divestment of these assets.
All data reported here is on a 100% asset basis, with MMG's attributable interest shown against each asset within the Mineral Resources and Ore Reserves tables (pages 4 to 8).
MINERAL RESOURCES AND ORE RESERVES STATEMENTA copy of the executive summary of the Mineral Resources and Ore Reserves Statement is annexed to this announcement.
The information referred to in this announcement has been extracted from the report titled Mineral Resources and Ore Reserves Statement as at 30 June 2017 published on 18 October 2017 and is available to view on www.mmg.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Mineral Resources and Ore Reserves Statement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the Mineral Resources and Ore Reserves Statement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the Mineral Resources and Ore Reserves Statement.
By order of the Board
MMG Limited Jiao JianCEO and Executive Director
Hong Kong, 18 October 2017
As at the date of this announcement, the Board comprises nine directors, of which two are executive directors, namely Mr Jiao Jian and Mr Xu Jiqing; three are non-executive directors, namely Mr Guo Wenqing (Chairman), Mr Gao Xiaoyu and Mr Zhang Shuqiang; and four are independent non-executive directors, namely Dr Peter William Cassidy, Mr Leung Cheuk Yan, Ms Jennifer Anne Seabrook and Professor Pei Ker Wei.
EXECUTIVE SUMMARY
Mineral Resources and Ore Reserves for MMG have been estimated as at 30 June 2017, and are reported in accordance with the guidelines in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and Chapter 18 of the Listing Rules. Mineral Resources and Ore Reserves tables are provided on pages 4 to 8, which include the 30 June 2017 and 30 June 2016 estimates for comparison. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources that convert to Ore Reserves. All supporting data is provided within the Technical Appendix, available on the MMG website.
Mineral Resources and Ore Reserves information in this statement has been compiled by Competent Persons (as defined by the 2012 JORC Code). Each Competent Person consents to the inclusion of the information in this report that they have provided in the form and context in which it appears. Competent Persons are listed on page 9.
MMG has established processes and structures for the governance of Mineral Resources and Ore Reserves estimation and reporting. MMG has a Mineral Resources and Ore Reserves Committee that regularly convenes to assist the MMG Governance and Nomination Committee and the Board of Directors with respect to the reporting practices of the Company in relation to Mineral Resources and Ore Reserves, and the quality and integrity of these reports of the Group.
Key changes to the Mineral Resources (contained metal) since the 30 June 2016 estimate have been mostly related to depletion1 together with lower price assumptions which have impacted Las Bambas and resulted in a net decrease in contained copper metal. The divestment of Golden Grove has also contributed to the global copper metal decrease in Mineral Resources. The contained zinc metal in the Mineral Resources has decreased almost entirely due to the divestment of Golden Grove. The sale of the Avebury asset in Tasmania has resulted in the removal of nickel from the Mineral Resources statement.
The MMG Ore Reserves (contained metal) have increased since the 30 June 2016 statement for zinc and lead principally due to increases at Dugald River and Rosebery. Decreases in Ore Reserves (contained metal) for copper are the result of depletion1 at Las Bambas, Sepon and Kinsevere combined with the divestment of Golden Grove. Decreases of Indicated Mineral Resources at Sepon have resulted in a reduction of available material for Ore Reserves conversion.
Total tonnes of Mineral Resources and Ore Reserves have decreased with depletion and divestment. In addition, Mineral Resources have also decreased due to copper price assumptions. Las Bambas Mineral Resources and Ore Reserves have decreased by 250Mt and 0.5Mt respectively. Dugald River Mineral Resources and Ore Reserves tonnes have increased by 4Mt and 10Mt respectively. Sepon Mineral Resources and Ore Reserves have decreased by 2.3Mt and 5.5Mt respectively, while Kinsevere Mineral Resources have increased by 4.5Mt and Ore Reserves have decreased by 4.4Mt.
Pages 10 and 11 provide further discussion of the Mineral Resources and Ore Reserves changes.
1 Depletion in this report refers to material treated by the mill and depleted from the Mineral Resources and Ore Reserves through mining.
MINERAL RESOURCES1
All data reported here is on a 100% asset basis, with MMG's attributable interest shown against each asset within brackets.
2017 | 2016 | |||||||||||||
Deposit | Tonnes (Mt) | Cu (%) | Zn (%) | Pb (%) | Ag (g/t) | Au (g/t) | Mo (ppm) | Tonnes (Mt) | Cu (%) | Zn (%) | Pb (%) | Ag (g/t) | Au (g/t) | Mo (ppm) |
Las Bambas (62.5%) | 2.0 | |||||||||||||
Ferrobamba Oxide Copper | ||||||||||||||
Indicated | 9.3 | 2.0 | 16.8 | |||||||||||
Inferred | 0.6 | 2.5 | 0.7 | 1.9 | ||||||||||
Total | 9.9 | 2.0 | 17.4 | 2.0 | ||||||||||
Ferrobamba Primary Copper | ||||||||||||||
Measured | 542 | 0.64 | 3.0 | 0.06 | 204 | 529 | 0.68 | 3.3 | 0.06 | 198 | ||||
Indicated | 546 | 0.60 | 2.8 | 0.05 | 211 | 527 | 0.59 | 2.7 | 0.05 | 191 | ||||
Inferred | 263 | 0.60 | 2.4 | 0.04 | 158 | 397 | 0.57 | 2.1 | 0.03 | 146 | ||||
Total | 1,351 | 0.62 | 2.8 | 0.05 | 198 | 1,453 | 0.62 | 2.7 | 0.05 | 181 | ||||
Ferrobamba Total | 1,361 | 1,471 | ||||||||||||
Chalcobamba Oxide Copper | 1.5 | |||||||||||||
Indicated | 6.1 | 1.5 | 6.5 | |||||||||||
Inferred | 0.7 | 1.5 | 0.9 | 1.5 | ||||||||||
Total | 6.8 | 1.5 | 7.3 | 1.5 | ||||||||||
Chalcobamba Primary Copper | ||||||||||||||
Measured | 85 | 0.37 | 1.1 | 0.01 | 148 | 94 | 0.40 | 1.2 | 0.01 | 148 | ||||
Indicated | 195 | 0.67 | 2.5 | 0.03 | 141 | 196 | 0.63 | 2.4 | 0.03 | 145 | ||||
Inferred | 36 | 0.52 | 1.8 | 0.02 | 141 | 48 | 0.47 | 1.6 | 0.02 | 131 | ||||
Total | 315 | 0.57 | 2.0 | 0.03 | 143 | 338 | 0.55 | 1.9 | 0.02 | 144 | ||||
Chalcobamba Total | 322 | 345 | ||||||||||||
Sulfobamba Primary Copper | ||||||||||||||
Indicated | 85 | 0.67 | 4.7 | 0.02 | 170 | 103 | 0.60 | 4.1 | 0.02 | 162 | ||||
Inferred | 100 | 0.58 | 6.5 | 0.02 | 119 | 201 | 0.44 | 4.0 | 0.02 | 119 | ||||
Total | 184 | 0.62 | 5.7 | 0.02 | 142 | 304 | 0.50 | 4.0 | 0.02 | 133 | ||||
Sulfobamba Total | 184 | 304 | ||||||||||||
Oxide Copper Stockpile | 0.9 | |||||||||||||
Indicated | 5.5 | 1.0 | 3.4 | |||||||||||
Total | 5.5 | 1.0 | 3.4 | 0.9 | ||||||||||
Primary Copper Stockpile | ||||||||||||||
Measured | 0.2 | 0.85 | 4.5 | 148 | 0.37 | 0.7 | 3.1 | 214 | ||||||
Total | 0.2 | 0.85 | 4.5 | 148 | 0.37 | 0.7 | 3.1 | 214 | ||||||
Las Bambas Total | 1,873 | 2,124 | ||||||||||||
1 S.I. units used for metals of value; Cu=copper, Zn=zinc, Pb=lead, Ag=silver, Au=gold, Mo=molybdenum, Ni=nickel.
MMG Ltd. published this content on 18 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 October 2017 12:05:07 UTC.
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