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SPENCE BRIEFING
BACKGROUND
The Spence copper deposit was first discovered in 1996
during an exploration program conducted by Rio Algom
Limited, which was subsequently purchased by Billiton
Plc in October 2000. Since discovery, the deposit has
been subject to several studies, with the current
feasibility study being completed in July 2004. The
future Spence Copper Project will consist of an open-cut
mine and associated Leaching, Solvent Extraction and
Electrowinning (SX-EW) processing facilities. The Spence
project is 100% owned by BHP Billiton and will be
included in the Base Metals Customer Sector Groups
portfolio of assets.
GENERAL DESCRIPTION
The Spence deposit is located at an elevation of 1,700
meters above sea level in the arid Atacama Desert
The main freight railroad line lies just outside the project
The photo above shows a view looking southwest from the project area.
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stages for oxide PLS, two parallel extraction stages for sulphide
PLS, one strip stage, one wash stage and one loaded organic
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- Agglomeration circuit
rate averaging 93 million tonnes per annum during the first eleven
The mine will operate over a 19-year mine life which includes
Proven and Probable ore reserves for the Spence orebody are
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0.88% acid soluble copper, and 231 million tonnes of heap leach
sulphide ore at a grade of 1.13% total copper, both at a total
copper cut-off of 0.3%. The break down of proven and probable
ore reserve categories is presented below.
POLITICAL ENVIRONMENT
Chile is currently undergoing a political debate around its mining
investment and taxation framework. BHP Billiton has agreed to
this further investment based on their long-term presence in the
country, the confidence in the national political parties ability to
reach reasonable outcomes, the clarity of their rights as investors
under the Chilean legal framework, and the fact that the project
cost and low-risk copper mining and processing and increases the
summarized as follows:
MARKETING
Chile is located such that shipment of copper cathode to all of the
consuming regions of the world is possible and economical. It is
anticipated that copper cathode produced from the Spence Project
will be shipped to fabricators of copper, such as wire, rod and
Ore Reserve
(at 0.3% TCu Cut-off)
Reserve Category
Million Tonnes
% Total Copper
Proven Probable
40
38
1.35
1.01
1.00
0.76
Proven + Probable
79
1.18
0.88
Proven Probable
107
124
1.38
0.92
na
Proven + Probable
231
1.13
na
Proven + Probable
310
1.14
na
Oxide Ore
Sulphide Ore
Total Ore
Prices for this product will reflect those set by the major
All tonnes and grade information has been rounded; hence small differences may be present in the totals
The information upon which this press release is founded and which relates to Spence Ore Reserves is based on information compiled by Mr. Paul Satchwell, who is
a Member of The Australasian Institute of Mining and Metallurgy. Mr. Satchwell is employed by Mining Technical Services International S.A. He has sufficient
experience with the estimation, assessment, evaluation and economic extraction of large-scale copper mining operations and projects. This experience is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, and as such he qualifies as a Competent Person as
defined in the 1999 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Satchwell consents to the
inclusion in this document of the matters based on their information in the form and context in which it appears.
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