X Reserves Resources 201112 PDF
X Reserves Resources 201112 PDF
Resources
& Ore
Reserves
as at 31 December 2011
Contents
We report our resources and reserves in
2. Alloys 4 1
accordance with the 2004 edition of the
2 Alloys Copper
South African chromite, vanadium and PGM’s (platinum group Xstrata Copper has adopted the 2004 Australasian Code for
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
metals) resources and reserves in this report are reported in Reporting Exploration Results, Mineral Resources and Ore
accordance with the 2004 Australasian Code for Reporting Reserves (the JORC Code) as its standard for all public reports
Exploration Results, Mineral Resources and Ore Reserves of its exploration results, mineral resources and ore reserves.
(the JORC Code), December 2004.
The Mineral Resource and Ore Reserve Statement is consistent
The Chromite, Vanadium and PGM’s Mineral Resource and Ore with the JORC Code and is based on the Guidelines for
Reserve Statement at 31 December 2011 is consistent with the “The Estimation and Public Reporting of Exploration Results,
JORC code and is based on the Xstrata Alloys “Procedure for Mineral Resources and Ore Reserves Xstrata Copper”
the Estimation of Mineral Resources and Ore Reserves”, reference
The resources and reserves estimates are compiled and verified
No. 10000027570. Definitions of all the terms used in this report
by Neal O’Connor Xstrata Copper.
can be found in the relevant code.
The resource and reserve statements have been reviewed and Iron Ore
Iron ore resources and reserves are presented in accordance
the relevant data extracted and compiled by Pieter-Jan Gräbe,
with the 2004 Australasian Code for Reporting Exploration
Xstrata Alloys (SACNASP).
Results, Mineral Resources and Ore Reserves (the JORC Code)
Coal prepared by the Joint Ore Reserves Committee of the
Australian coal resources and reserves are estimated and Australasian Institute of Mining and Metallurgy, Australian
presented in accordance with the JORC Code. Institute of Geoscientists and Minerals Council of Australia.
South African and Colombian coal resources and reserves are The resources and reserves estimates are compiled and verified
estimated and presented in accordance with the SAMREC Code by Jonathan Romcke, Xstrata Iron Ore.
and the JORC Code.
Nickel
Canadian coal resources and reserves have been prepared The majority of the resources and reserves estimates are prepared
in CIM Definition Standards and with reference to GSA Paper in accordance with the Canadian Institute of Mining, Metallurgy
88-21, A Standardised Coal Resource/Reserve Reporting and Petroleum (CIM) Definition Standards on Mineral Resources
System for Canada. and Mineral Reserves, adopted by CIM Council on 11 December
2005, and the CIM Estimation of Mineral Resources and Mineral
The Coal Reserve and Coal Resource Statement at 31 December Reserves Best Practice Guidelines, adopted by CIM Council
2011 is consistent with these Codes and is based on the Xstrata on 23 November 2003, using geostatistical and/or classical
Coal Resource and Reserve Estimation and Reporting Standard, methods, plus economic and mining parameters appropriate
Version 30/06/2010. to each project.
Coal resources have been estimated for potentially mineable The resources and reserves estimates at Xstrata Nickel Australasia
seams within mining leases or exploration licenses and are limited (Cosmos, Sinclair) have been prepared in compliance with
by major cadastral, geological and economical boundaries. the 2004 Australasian Code for Reporting Exploration Results,
Coal resources exclude areas where the seam has been affected Mineral Resources and Ore Reserves (the JORC Code),
by igneous bodies, extracted by mining and areas where coal December 2004.
has been sterilised by mining to 31 December 2011. Minor heat The resources and reserves estimates are compiled and verified
affected coal resources (low volume) are included at a number by Chester Moore, P. Eng., P. Geo., consultant with Scott Wilson
of Queensland coal projects. Roscoe Postle Associates an external auditor for Xstrata Nickel.
Resources do not include out-of-seam dilution. Underground
resources are typically reported on a full seam or working
section basis, and may contain a small amount of intra-seam
partings material.
MR = Mineral Resource
Mt = Million tonnes
OR = Ore Reserve
UG = Underground
Saleable Coal Reserve is the tonnage and coal quality that will
be available for sale, either in the raw ROM state at a specific
moisture content or after beneficiation of the ROM coal reserve
has produced materials at specified qualities, moisture contents
and size ranges.
Definitions of all the terms used in this report can be found in the
relevant codes.
Alloys
6 Changes in the year on year Ore Reserves tonnage and grade cell sizes. Tonnages and grades are reported from these block
estimates are mainly due to mining depletion and changes due to models for each mine and project. There is a high degree of
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
additional geological information gained through exploration. confidence in the tonnage and grade estimations derived from
Kroondal Gemini had a net change in Ore Reserves of 1.66Mt due the block models. This is confirmed by the monthly and yearly
to Inferred Mineral Resources upgraded to Indicated Mineral reconciliation between the block model estimates and the actual
Resources and subsequently modified to Probable Ore Reserves on mine production done for each operating mine.
and a revised mining extraction rate, after mining depletion. The
Competent Persons
Ore Reserves of Marikana West had been declared for the first
PJG – Pieter-Jan Gräbe, Xstrata Alloys, (SACNASP). Overall
time with the construction of appropriate mine plans. The same
Responsibility for Resources and Reserves.
applies to Horizon Mine. Thorncliffe had a net Ore Reserve
change of 2.80Mt due to the conversion of Inferred Mineral BS – Brian Smith, Xstrata Alloys, (PLATO). Overall Responsibility
Resources to Indicated Mineral Resources and subsequently for Resources and Reserves. Brian Smith has since left the
modified to Probable Ore Reserves and tonnage movement due employment of Xstrata Alloys.
to re-estimation, after mining depletion.
NM – Nathi Mntungwa, Xstrata Alloys, (SACNASP). Overall
The tonnage and grade estimations are done by geostatistical Responsibility for Resources and Reserves. Nathi Mntungwa has
analysis of the exploration drill hole data. This confirms the high since left the employment of Xstrata Alloys.
degree of continuity of grade and thickness of the chromitite
DR – Dean Richards, Obsidian Consulting Services (SACNASP).
layers and derives the most appropriate parameters for the
Responsible for geostatistical analysis of data, Mineral Resource
construction of block models for the various ore-bodies (LG6 and
classification and construction of tonnage and grade block
MG1). Block model estimates are verified using geostatistical
models and reporting of tonnage and grades from block models.
parameters such as Kriging Efficiency and others to test the
stability of the variograms used and the suitability of the selected
Vanadium Mineral Resources 7
Measured Mineral Indicated Mineral Measured and Inferred Mineral
Definitions The Ore Reserves had a net increased of 6.16Mt due to the
OC = Opencast upgrading of Inferred Mineral Resources to Indicated Mineral
Resource and subsequent modification to Probable Ore Reserves,
UG = Underground
new pit designs for Pit 1 and Pit 6 and new areas being drilled,
Notes after mining depletion.
Tonnages are quoted as million metric tonnes
Obsidian Consulting Services has estimated the Mineral
Grades are quoted as %V2O5 Resources for Pit 1 (previously referred to as Pit 1, 2, 3 and the
Leeupen area) and Pit 6 (previously referred to as Pit 4, Pit 6 and
The Measured and Indicated Mineral Resources are inclusive of
Pit 6W). An updated structural and grade block model was
those Mineral Resources modified to produce Ore Reserves.
constructed during August and September 2011, following
Xstrata Alloy's vanadium mining operations are mining the exploration drilling during the 2010 – 2011 reporting period.
vanadiferous magnetite deposits developed within the Bushveld
A&B Global Mining has estimated the Ore Reserves for Pit 1 and
Complex, South Africa. The 2060Ma year old Bushveld Complex
Pit 6. The Ore Reserve estimation was preceded by an open pit
is the largest known deposit of chrome, vanadium and platinum
optimization exercise for Pit 1 and Pit6W. The optimization study
group elements (PGE’s) ore in the world.
was done to determine the economic pit depths with current
The magnetite ore is mined from shallow dipping (6o – 25o) economic input parameters. Newly constructed pit lay-outs and
stratified magnetite ore bodies. Various ore zones have been mining schedules were designed within the optimized pit shells.
identified in the ore-body. The ore zones are defined based on
The tonnage and grade estimations are done by geostatistical
their magnetite and vanadium content. The ore zones form the
analysis of the exploration drill hole data during which the most
basis for the estimated Mineral Resources. Portions of the ore
appropriate parameters are derived for the construction of block
body where the magnetite content is less than 15% were not
models for the various ore zones in Pit 1 and Pit 6. The block
considered in the Mineral Resource estimation.
model estimates are verified using geostatistical parameters such
The magnetite ore is mined through opencast mining methods. as Kriging Efficiency and others to test the stability of the
variograms used and the suitability of the selected cell sizes.
Changes in the year on year tonnage and grade estimates are
Tonnages and grades are reported from the block models for
mainly due to mining depletion, re-classification and changes in
each ore zone and composited for the various open pits. The
the Mineral Resource and Ore Reserve tonnages and grades due
degree of confidence in the tonnage and grade estimations
to additional geological information gained through exploration.
derived from the block models is reflected in the classified
There was a net gain of 4.88Mt in the total Mineral Resource resource classes.
estimate due to the addition of new areas brought about by
Competent Person
exploration drilling on strike next to and down-dip of the existing
PJG – Pieter-Jan Gräbe, Xstrata Alloys, (SACNASP). Overall
pits, after mining depletion.
Responsibility for Resources and Reserves.
Alloys continued
8 DR – Dean Richards, Obsidian Consulting Services, (SACNASP). AvW – Anton von Wielligh, A & B Global Mining, (Pr. Eng.).
Responsible for data validation, geostatistical analysis of data, Responsible for pit optimization, pit design and scheduling and
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
construction of tonnage and grade block models and reporting of the Ore Reserves estimation.
tonnage and grades from block models for Mineral Resource
estimates.
Definitions
OC = Opencast
UG = Underground
Notes Eland Zilkaatsnek and Schietfontein 9
Tonnages are quoted as million metric tonnes Eland, Zilkaatsnek and Schietfontein are contiguous Mining - and
Definitions The ore is mined through opencast mining methods and the ROM
OC = Opencast (Run-of-Mine) ore is crushed, washed and sized on site to produce
a final sized and quality graded product. No silica cut-off grades
Notes
are applied to the Mineral Resource estimation. The quartzite is
Tonnages are quoted as million metric tonnes
mined mainly to supply the Xstrata Alloys furnaces with silica.
Grades are quoted as %SiO2.
Changes in the year on year tonnage and grade estimates are
Xstrata Alloy's silica mining operation is an opencast mining mainly due to mining depletion, reclassification of the Mineral
operation, mining a massive quartzite deposit of the Resource categories and changes in the Mineral Resource
Magaliesberg Formation of the Pretoria Group, Transvaal Super tonnages and grades due to additional geological information
Group of South Africa. The Magaliesberg Formation forms a gained through exploration.
prominent quartzite ridge striking north – south along the
No significant changes have been recorded in the year-on-year
Magaliesberg Mountain Range. The formation is a few hundred
Mineral Resource estimation. The average grade of the deposit
meters thick and dips towards the east at over 20o. The Rietvly
came down by 6% with the analytical results of three core
quartzite ore body is a very pure quartzite with a silica content of
boreholes drilled through the deposit.
over 90% SiO2.
Competent Person
PJG - Pieter-Jan Gräbe, Xstrata Alloys (SACNASP). Overall
Responsibility for Resources.
Coal
Resources Total – Coal Australia (Mt) 5,734 5,244 4,846 4,726 14,220 13,189
Australia Coal Reserves – New South Wales 13
Marketable Total Marketable
Reserves Total – Coal Australia (Mt) 2,428 840 1,837 649 2,487 2,265
16 Aquila seam thickness (+47.5Mt). Resource depletion from Reserve increase due to re-classification of resources and
mining (-19Mt). confidence in the BLN & BUB pits (+4Mt), tonnage increase
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
Undeveloped/Projects
Oogiesfontein(g) 100.0% Thermal Coal (Mt) 36 35.8 40 40.3 – – MS
CV (kcal/kg) 4,700 4,720 4,850 4,840 – –
Elandspruit(h) 100.0% Thermal Coal (Mt) 30 30.5 – – – – MS
CV (kcal/kg) 5,000 5,020 – – – –
Zonnebloem(f) 100.0% Thermal Coal (Mt) 210 136.1 30 20.4 5 6 MS
CV (kcal/kg) 5,100 4,860 4,700 4,960
Paardekop(i) 100.0% Thermal Coal (Mt) – – 450 451.0 400 399 MS
CV (kcal/kg) – – 5,400 5,390
Undeveloped Resources(j) 100.0% Thermal Coal (Mt) – – 12 15.7 190 190 MS
CV (kcal/kg) – – 5,000 5,400
Resources Subtotal –
Undeveloped/Projects (Mt) 276 202 532 527.4 595 595.0
Resources Total –
Coal South Africa (Mt) 2,276 2,231 657 625 664 642
Coal continued
Name of operation interest method Commodity 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 Person*
(k)
Bajo de la Alumbrera 50% OC (Mt) 248 293 8 9 256 302 JBN
Cu (%) 0.37 0.39 0.28 0.32 0.37 0.39
Au (g/t) 0.37 0.39 0.24 0.28 0.36 0.39
Mo (%) 0.013 0.013 0.014 0.015 0.013 0.013
Total – Alumbrera (Mt) 248 293 8 9 256 302
Name of operation interest method Commodity 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 Person*
(p)
Antamina 33.75% OC Sulphide Cu (Mt) 90 75 476 441 565 516 MM
Cu (%) 1.05 1.10 0.95 1.05 0.96 1.06
Zn (%) 0.16 0.17 0.14 0.17 0.15 0.17
Ag (g/t) 8.2 8.6 8.9 9.7 8.8 9.5
Mo (%) 0.033 0.037 0.027 0.031 0.028 0.032
Sulphide Cu -Zn
(Mt) 43 29 177 131 220 160 MM
Cu (%) 0.82 0.92 0.83 1.06 0.83 1.03
Zn (%) 1.79 1.84 1.99 1.98 1.95 1.95
Ag (g/t) 15.0 17.0 14.3 17.6 14.5 17.5
Mo (%) 0.006 0.007 0.006 0.008 0.006 0.008
Tintaya(q) 100% OC (Mt) 30 39 19 27 49 66 HB
Cu (%) 1.12 1.12 0.84 1.02 1.01 1.08
Au (g/t) 0.14 0.16 0.10 0.15 0.12 0.16
Antapaccay(r) 100% OC (Mt) 176 176 365 365 541 541 HB
Cu (%) 0.66 0.66 0.56 0.56 0.59 0.59
Au (g/t) 0.14 0.14 0.12 0.12 0.13 0.13
Ag (g/t) 1.63 1.63 1.45 1.45 1.51 1.51
Mo (%) 0.005 0.005 0.005 0.005 0.005 0.005
Total – Peru (Mt) 339 319 1,037 964 1,375 1,283
28 was removed and 2.42Mt @ 1.7% Cu from within the Block figures are obtained from the Resource Block Model (ALUN)
Cave design (below Pit46) was added into the 1100 Orebody which was constructed in May 2008 using Ordinary Kriging
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
30 economical extraction. The Mineral Resource estimation was (u) El Pachon: Located in the south west of San Juan Province of
completed in 2010 and includes more than 162,320 m of Argentina the El Pachón orebody is a porphyry copper-
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
diamond and reverses circulation drilling. The estimate is molybdenum deposit in which two major stages of sulphide
based on a block model with grade interpolation by Ordinary mineralisation contributed to the formation of the orebody.
Kriging. Resources are stated at defined internal copper cut- The bulk of the ore takes the form of disseminated
off. It keeps the same amount of reserves and resources Chalcopyrite-Molibdenite primary sulphides on top which an
executed by June 30, 2010. inmature, relatively small copper enrichement blanket has
been developed. In this upper part of the deposit Chalcosite
(s) Coroccohuayco: The Coroccohuayco copper-gold skarn
and minor Covellite are partially replacing the primary
deposit is located nine kilometres southeast of Tintaya.
Chalcopyirite ore. Mineral Resources stated herein are based
Together with Tintaya and Antapaccay this orebody is part of
on assay and geology information from 120,000m of mainly
the Tintaya mineralised district. The main copper bearing
diamond drill holes. Over 50,000 of new infill and step out
minerals are bornite, chalcopyrite and chalcocite. The
drilling have been included in this Mineral Resource update.
Coroccohuayco orebody is defined as a copper skarn
Mineral Resources have been classified using a combination
deposit, which consists of Cretaceous sedimentary rocks of
of criteria including geological continuity and kriging
the Ferrobamba and Mara formation intruded by monzonitic
parameters being the infuential the drill hole data density.
plutons of the Eocene-Oligocene Andahuaylas-Yauri
Mineral Resources are constrained by the use of an economic
batholiths. The deposit geology model and Resource
pit shell determined using Measured, Indicated and Inferred
estimate has been updated in August 2011 using a drill hole
Resources and current assumption for the economic and
database that now includes over than 112,000m of drilling
technical modifying factors conditioning the Resource pit.
data. The major variations from the 30 June 2010 published
Differences in the Mineral Resource in relation to previous
Resource statement are due to the inclusion of an Open Pit
statement are due mainly to the incorporation of the new
scenario driven by the additional Mineral Resources found in
drilling to the geological model and Resource estimate, plus
the upper part of the ore body, previous Mineral Resources
updated modifying factors including long term metal prices,
published in 2010 included 92Mt with 3%Cu for an
mining and processing cost and metallurgical recovery.
underground mining scenario.
Numbers may not be exact as they are rounded for
(t) Las Bambas: The Las Bambas district is located in the central tabulation.
part of the skarn-porphyry belt in south-central Perú. Skarn-
(v) Tampakan: The Tampakan deposit is a copper-gold
related alteration and mineralisation is associated with a suite
porphyry with a strong high sulfidation ephithermal
of intrusives that are in contact with carbonate rocks. The
mineralising event system developed on top and above the
porphyry style mineralisation occurs in quartz-monzonite to
porphyry intrusive. Located in Mindanao, Southern Phillipines
granodiorite rocks. Hypogene copper sulphides are the main
the mineralised orebody is hosted by the stratovolcanic
copper bearing minerals with minor occurrence of supergene
Tampakan Andesite sequence. The high sulphidation
copper oxides and carbonates near surface. During 2010
enargite-chalcocite-bornite-covellite mineralisation
over 28,000m of infill diamond core were drilled at the main
assemblage occurring within an advanced argillic blanket is
Ferrobamba deposit aiming to increase confidence in the
the main source of ore, this locally penetrates down and
Mineral Resource. The Mineral Resource Estimate of
overprints the underlying porphyry system. After the project
Ferrobamba has been updated to reflect the new available
Feasibility study and Mineral Resource evaluation completed
dilling data, as such the geological model, grade estimates
in 2009, an infill drilling campaign consisting of 54 new drill
and resource classification have been updated in May 2011.
holes amounting 17.400m of core was completed in 2010
The resource classification scheme chosen is a combination
followed by an update of the deposit geology, block grade
of various interpolation parameters designed to reflect data
interpolation and new Mineral Resource estimate. The new
density and the perceived geological continuity of the ore
geological model now considers an improved definition of
body. The Chalcobamba and Sulfobamba deposits block
the high sulfidation zone based on seven discrete Alteration
models remains as per the previous 2010 estimates. The
domains. Block grade interpolation results from the use of
Mineral Resources quoted herein are constrained by the use
Ordinary Kriging in some cases combined with an Indicator
of an economic pit shell determined using Measured,
Kriging approach that helps to better define the high grade
Indicated and Inferred Resources and long term metal prices
zonation, particularly for the arsenic model. Resource have
and cost assumptions; the ecomonic pits have been updated
been classified in Measured, Indicated and Inferred using
for the three deposits. The economic cutoff grade remains as
similar criteria as per previous estimates regarding the
at 0.2% TCu, all other modifying factors used on the
amount of drill hole information required for the resource to
determination of this Resource pit are the same as those
fall within a particular category. Mineral Resource is now
used for the Project Feasibility Study. Numbers may not be
reported using a 0.2% Copper cut off within a pit shell
exact as they are rounded for tabulation.
developed using Measured-Indicated and Inferred
Resources. Differences in the Resource in relation to previous
estimates is mainly due to the incorporation of the new
drilling, enhanced definition of the Alteration zones and the
change of cut off grade from 0.3 % Copper to current 0.2%
Copper. Numbers may not be exact as they are rounded for
tabulation.
(w) Frieda River: The Frieda River Project is located on the Competent Persons: 31
border of the Sandaun and East Sepik provinces in Papua AM = Adrianus Moerman, Xstrata Copper (Association of
34 by a well defined banding pattern, with individual bands (h) Zanaga Project: Zanaga Project is owned 100% by Jumelles
(“mesobands”) averaging 5-10mm thick. The exposed BIF Limited. The Zanaga ELs are located within a north-south
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
appears to be reasonably homogeneous along the entire oriented greenstone belt which extends for over 47 km in
strike length, a characteristic confirmed by the 2008 drilling. length, and vary between 0.5 to 3 km in width. The
The drilling at Lebtheinia Centre shows that mineralisation mineralisation is hosted by metamorphosed volcano-
extends to at least 400m vertically below the natural surface sedimentary itabirites, and is interbedded with amphibolites
and is open at depth. Lebtheinia Centre comprises a hanging and mafic schists. The contact with the crystalline basement
wall of (variously) quartzite, amphibolite, rhyolite, is typically faulted and sheared. The principal ore lithologies
clay/saprolite (altered amphibolite) and a footwall of quartzite consist of itabirites, interbedded with basic lavas, which are
or amphibolite. The depth of weathering (oxidation) of the later altered to amphibolites. Typically, the itabirites consist
BIF is variable, averaging approximately 50m. Within this of layers of iron-rich and quartz rich meta-sediments, on a
zone the degree of oxidation is variable. Generally, in the millimetre to centimetre scale. The orebody lithologies are
lower two thirds or so of the oxidised zone (the Lower crosscut by late intrusions and dolerite dykes, oriented NE-
Oxidised Zone, “LOX”) the degree of oxidation is less, as SW. The deposit comprises a sequence of weathering
reflected by the higher magnetic susceptibility values domains, which overlay an un-weathered “proto” ore
recorded, compared with the more oxidised upper third. It is comprising itabirite. The weathered sequence observed at
the LOX material that is the subject of the LOX resource Zanaga is typical of iron ore deposits, where the surficial
estimate. The main mineralised BIF unit splits in the southern material demonstrates enrichment in iron above the proto
part of Lebtheinia Centre and forms two discrete BIF units ore due to a mass reduction and associated leaching of the
separated by a relatively thin (~25m) internal waste zone silicate layers.
comprising grey quartzite and a leucocratic quartz feldspar
Competent Persons:
schist/mylonite. A series of sub-vertical dolerite dykes,
AM = Alan Miller, Golder Associates Pty Ltd (MAusIMM (CP)). Mr
striking NE-SW to NNE-SSW and crosscutting the BIF were
Miller is the Competent Person responsible for the construction of
mapped at surface and their presence was confirmed during
the geological block model, the grade interpolation and the
the 2008 drilling. The Lebtheinia Resource Statement for
Mineral Resource estimation (tonnage and grade) and
Fresh Iron Ore is unchanged since 30 June 2010. It is
classification.
reported at 20% Davis Tube mass recovery cut-off, using
Davis Tube testwork at low intensity (1 Amp) setting JA = John Arthur, SRK Consulting (UK) Limited, (MIoM3)
conducted on 3m drill samples pulverized to a liberation
RB = Ross Bertinshaw, Golder Associates Pty Ltd (FAusIMM (CP))
grind size of 95% passing 80 micron (0.080mm). The
Lebtheinia Resource Statement for the Oxidised Iron Ore was SvdM = Dr Schalk van der Merwe, Sphere Minerals (SACNSP). Dr
originally published by Sphere Minerals on 22 October 2009. van der Merwe is the Competent Person responsible for the
A cut-off of 14 SI x 10-3 units of magnetic susceptibility, geological interpretation for the Mineral Resource estimation
measured on RC drill cuttings, was used to define the LOX (wireframe model), and the drill hole data set used in these
mineralisation envelope. The LOX resource has been defined resource estimation.
as all mineralisation within the envelope with effectively no
SK = Dr Sia Khosrowshahi, Golder Associates Pty Ltd (MAusIMM
block grade cut-off applied.
(CP))
(g) Jumelles: Following exercise of its call option in February
2011, Xstrata owns 50% plus one share in Jumelles Limited
being the ultimate parent company of MPD Congo SA the
holder of the Zanaga exploration licences in the Republic of
Congo.
Nickel
Name of operation interest method Commodity 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 Person*
(a)
Cosmos 100% UG (Mt) 0.04 0.24 0.53 0.14 0.57 0.38 SVDM
Ni (%) 2.88 4.45 2.66 3.43 2.68 4.07
Falcondo(b) 85.3% OC (Mt) 44.0 49.6 29.7 29.7 73.7 79.2 ED
Ni (%) 1.28 1.21 1.36 1.36 1.31 1.26
Koniambo(c) 49% OC (Mt) 17.2 17.2 45.3 45.3 62.5 62.5 GB
Ni (%) 2.50 2.50 2.36 2.36 2.40 2.40
Raglan(d) 100% UG (Mt) 4.13 5.32 5.30 6.26 9.4 11.6 PD
Ni (%) 2.22 2.11 3.73 3.50 3.07 2.86
Cu (%) 0.65 0.61 0.88 0.86 0.78 0.75
Co (%) 0.05 0.05 0.08 0.08 0.07 0.06
Sinclair(a) 100% UG (Mt) 0.29 0.09 0.32 0.62 0.61 0.71 JW
Ni (%) 2.02 3.48 1.93 2.24 1.97 2.36
Sudbury(e) 100% UG (Mt) 8.66 7.32 9.44 7.47 18.11 14.79 SK
Ni (%) 1.39 1.50 1.39 1.14 1.39 1.32
Cu (%) 2.37 1.60 1.74 3.82 2.04 2.72
Co (%) 0.03 0.03 0.04 0.01 0.03 0.02
Total (Mt) 74 80 91 90 165 169
44 The Ore Reserves were based on a mine plan crushing engineering and located in 16 remaining mining zones.
approximately 3.3 Mtpa for feed into a HMP, which is under Average expected overbreak dilution for stopes is 12.6%
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com
construction. Rejection rates for each ore type (based on while average expected mining recovery is 82.5%. A total of
laboratory testing) of between 15% and 24% were applied, 43 of these 112 stopes consist of Measured Mineral
to result in a milling rate of 2.85 Mtpa. It was assumed that Resources converted to Probable Ore Reserves due to
the proportion of concentrate sold as bulk Zn-Pb concentrate "modifying factors" such as technical risks, sequencing
would reduce over the next 3 years as a new process for uncertainties ("tail end" stopes) or marginal profitability.
creating a Zn concentrate is ramped up. The process for
There are 3 geo-metallurgical ore types with different Net
creating the zinc concentrate is currently at pilot plant scale.
Smelter Return (NSR) economic models. Short term NSR
Refining using the Xstrata’s Proprietary Hydrometallurgy
parameters (essentially for year 2012), in particular the metal
Technology Plant was not considered. The final pit design
price and exchange rate assumptions provided by Xstrata
was based on pit optimisation in Whittle. Variable cut-off
Group Business Development, were used to individually
grades from 7.6% to 9.5%ZnEq were applied to optimise the
evaluate for economic viability the Ore Reserve stopes
mine plan.
scheduled in the remaining Life of Mine plan.
The Reserves and Resources have been depleted by a total
(g) Perseverance Mine: The Perseverance resource comprises
of 3.5Mt that were mined during the 1July 2010 to 31
three separate and distinct polymetallic volcanogenic
December 2011 reporting period.
massive sulphide deposits (Perseverance, Equinox and
(f) Brunswick Mine: The Brunswick orebody is a volcanogenic Perseverance West).
massive sulphide (VMS) deposit in which lead-zinc-copper-
The bulk of the zinc-copper-silver mineralisation is present as
silver mineralisation occurs in complexly deformed massive
banded massive sulphides composed predominately of
sulphide lenses hosted in sedimentary and volcanic rocks.
pyrite, sphalerite, chalcopyrite and pyrrhotite. Less abundant
The deposit extends from surface to a depth of 1,150 meters.
sulphides are also present as stringer stockwork in adjacent
The mine has been in continuous production since 1964. alteration zones.
Historical production as of 31 December 2011 is 133.1Mt at
A 3-D geological model was re-built from the 2009 and 2001
8.8 %Zn, 3.5 %Pb, 0.4 %Cu and 102 g/t Ag. Current
diamond drill holes totalling 101,196m. A geostatistical
underground mining method is open stoping with delayed
analysis and a block model were generated by Xstrata in
paste back fill.
2009. Neither the geological models nor the resource block
Total mine production from 1 July 2010 to 31 December models integrated geological data from the 2001
2011 was 4.5Mt at 7.8 %Zn, 3.0 %Pb, 0.5 %Cu and 96 g/t Ag. metallurgical and geotechnical drilling programmes, because
However, the Ore Reserves decreased only by 4.0Mt during the metallurgical and geotechnical drill holes were bulk
the period due to upgrade of Mineral Resources to Ore assayed on a hole-by-hole basis to conserve sample weight,
Reserves and stope design optimisation. During the same and were drilled after the block models were created.
period, a total of 8,938 meters of diamond drilling has been
Total mine production from 1 July 2010 to 31 December
performed to better define and delineate additional potential
2011 was 1.6Mt at 13.6 %Zn and 1.0 %Cu. Ore Reserves
Mineral Resource blocks. The diamond drilling program
decreased accordingly by 1.6Mt. One low-grade stope at the
complemented an extensive engineering study and
bottom of the Equinox deposit on mining level 255 has been
economical analysis that has been in progress since 2006 in
removed from the Ore Reserves in 2011 (0.03Mt) essentially
order to identify the most potential Resource blocks among
for ground control conditions, while the crown pillar of the
all the mining remnants. The diamond drilling and Resource
small ‘P2’ lens (0.03Mt) is still under evaluation and is not
evaluation is now completed.
included yet in the Ore Reserves.
Mineral Resources and Ore Reserves are based on a 3-D
The above mentioned Mineral Resources are based upon a
geological and grade block model derived from 350 surface
3.5 %Zn equivalent grade cut-off.
diamond drill holes, over 9,900 underground diamond drill
holes and extensive underground geological mapping. The above mentioned Ore Reserves are based upon a
Grade interpolation in the block model is done by Inverse US$72.47 Net Smelter Return (NSR) cut-off. An averaged
Distance Weighting to the power of 2, with octant search 95% stope recovery factor has been applied. The Reserves
declustering. encompass, in average, 10.0% of internal dilution, 7% of
external dilution for primary stopes and 12% external dilution
Total identified Mineral Resources represent 112 individual
for secondary stopes.
blocks of mineralisation located from the 425m level down to
the 1,125m level. All blocks are categorized as Measured. (h) Bracemac-Mcleod Project: The Bracemac and McLeod
Geological confidence categorization is essentially based on deposits are polymetallic volcanogenic massive sulphide
1) the density of diamond drilling information, 2) the deposits of the same age and derived from the same ore-
availability of geological mapping at the under and/or over forming hydrothermal system as the rest of the Matagami
cuts and 3) the thickness, continuity and interpreted camp deposits. They are located 4.5km southeast of Xstrata's
structural complexities of the mineralisation. Mattagami concentrator and offices.
Included in the Mineral Resources, the Ore Reserves consist The Bracemac deposit comprises three stacked lenses; the
of 112 individual stopes designed at various levels of deepest one, located along the Key Tuffite, is the largest.
The McLeod deposit consists of a lense located along the The four principal sulphide occurrences from west to east, 45
Key Tuffite and an underlying sub-parallel copper-rich are the East Cleaver, Boot Lake, Main Zone, and Jo Zone
46 Competent Persons
MS = Max Shawcross, Project Manager, Xstrata Zinc, (AusIMM).
Xstrata | Reserves and Resources as at 31 December 2011 | www.xstrata.com