Xstrata Copper has increased the total estimated mineral resources and the measured and indicated resources at the Horse-Ivaal-Trukai (HIT) deposit at the Frieda River copper-gold project in Papua New Guinea. The project is a joint venture between Xstrata Copper (81.82%) and Highlands Pacific (18.18%). Xstrata Copper is project manager. A feasibility study is due for completion in January 2012.
HIT is a copper-gold porphyry deposit located on the border of Sandaun and East Sepik provinces in Papua New Guinea, approximately 200 km from the coast and 70 km from the navigable Sepik river. As of late August 2011, estimated, JORC-compliant measured, indicated and inferred resources totaled 2.1 million mt, grading 0.45% copper, 0.22 g/mt gold, and 0.7 g/mt silver at a copper cut-off grade of 0.2% copper. Contained metal is estimated at 9.4 million mt of copper and 14.8 million oz of gold. The measured resource accounts for 37% of the total, up from 16% in the previous estimate released in February 2011.
The new HIT resource estimate is based on the results of 139,000 m of drilling, with 39,000 m added to the drill database since the last estimate.