Tampakan Holds Largest Copper Deposits In South East Asia

Xstrata Copper announces that the Mineral Resource estimate for the world-class Tampakan copper-gold project in the Philippines has been increased by over 10% in both tonnes and contained copper, consolidating Tampakan's position as one of the largest undeveloped copper deposits in South East Asia.

The upgraded Measured, Indicated and Inferred Resource totals 2.2 billion tonnes at a grade of 0.6% copper and 0.2 grams per tonne gold and contains 12.8 million tonnes of copper and 15.2 million ounces of gold using a 0.3% copper cut-off grade. The Mineral Resource, which includes 24,700 metres of drilling conducted in 2007, also includes estimated average grades for molybdenum of 70 parts per million (ppm).

This is the first resource estimate published by Xstrata Copper since it assumed management control of Tampakan in March 2007 through its Philippines based affiliate Sagittarius Mines, Inc. The previous Mineral Resource estimate of 2 billion tonnes at 0.6% copper, using the same cut-off grade, was published in April 2006.

Xstrata Copper Executive General Manager Project Development Peter Forrestal said the Tampakan deposit represents the largest development project in Xstrata Copper’s portfolio.

"We continue to look for growth opportunities through improvements at existing operations, acquisitions and the development of our strong project pipeline. The promising mineral resource estimate at Tampakan indicates the project has excellent potential to make a substantial contribution to Xstrata Copper's growth profile," Forrestal, who is also President of Sagittarius Mines, said in a statement sent to the Mindanao Examiner.

"We are committed to evaluating and developing the Tampakan project in genuine partnership with the Philippine government and authorities, local institutions and our neighbouring communities."

"As such, our current focus is on feasibility-related studies, which we aim to complete in the second half of 2009, and on advancing our sustainable development programs with local communities," said Forrestal.