FREEPORT-McMoRan COPPER & GOLD UPDATES
SECURITIES ANALYSTS ON EXPLORATION
DRILLING RESULTS AT THE GURU RIDGE AREA
NEW ORLEANS--May 17, 2001--Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX - news)
will present information about FCX's operations, exploration, financial and other activities at a
securities analyst meeting to be held this afternoon at 3:00 PM EDT and simultaneously
broadcast on the internet available through FCX's web site ``fcx.com.''
Recent exploration efforts have focused in FCX's Block A area on the Erstberg East Surface
mineralization (previously referred to as ``Guru Ridge''), a 100 million metric ton geological
resource(1) averaging over 1 percent copper equivalent(2) (including the estimated value of gold
in the mineralization). This geological resource is estimated to contain 1.1 billion pounds of
copper and 2.5 million ounces of gold. The Ertsberg East Surface geological resource is at the
surface and in close proximity to FCX's IOZ and DOZ ore bodies already in production and its
underground Dom and undeveloped Ertsberg Stockwork Zone (ESZ) ore bodies. Exploration
drilling and a preliminary study of the Erstberg East Surface resource indicate that open-pit
mining appears promising and FCX continues to study the feasibility of this surface target for
possible near-term development. In addition, FCX is studying the possibility of the development
of the Ertsberg East Surface resource in conjunction with the simultaneous development of the
IOZ, DOZ, Dom and ESZ ore bodies in what could be a large-scale open pit and underground
mining complex encompassing over 500 million metric tons of ore. The close proximity of this
potential mining complex to our existing mine, ore flow and milling infrastructure enhances its
value.
Currently, five exploration drilling rigs are operating from the surface and two from underground
locations to delineate the grades and geometry of the Ertsberg East Surface resource. Recent drill
intercepts at the Ertsberg East Surface geological resource include the following.
Drill
Hole
-----------TES 20-01
TES 21-07
TES 21-08
TES 21-09
TES 21-10
TES 21-11
TES 22-01
TES 22-02
TES 23-06
TES 23-07
TES 23-08
TES 24-01
Interval
Meters
---------250 m
100 m
110 m
90 m
228 m
69 m
271 m
308 m
65 m
138 m
120 m
147 m
Copper
Percent
---------0.61
0.45
0.36
0.45
0.28
0.61
0.50
0.26
0.45
0.49
1.05
0.47
Gold
Grams/
mton
---------0.64
1.44
0.60
0.54
0.13
1.20
1.65
1.35
2.05
2.65
1.89
0.64
Percent
Copper
Eqiv.(2)
--------1.04
1.41
0.74
0.83
0.44
1.39
1.61
1.35
2.02
2.29
2.12
0.91
In addition, delineation drilling continues at the ESZ and at the Grasberg Underground to define
the extent of mineralization in these areas, also within FCX's Block A area consisting of 24,700
acres covered by the contract of work (COW) of FCX's subsidiary, PT Freeport Indonesia (PTFI). Exploration activities relating to the adjacent Block B and areas covered by PT Irja Eastern
Minerals and PT Nabire Bakti Mining contacts of work continues. In the aggregate, FCX's
exploration areas approximate three million acres.
FCX is hosting its annual securities analyst meeting at its corporate offices in New Orleans at
3:00 PM EDT. FCX's management team will present information on operations, exploration,
financial and other matters reported in its annual and quarterly reports which are included in
FCX's public filings with the Securities and Exchange Commission and respond to questions
from the attendees. This meeting will be simultaneously broadcast on the Internet. The meeting
may be accessed through FCX's web site ``fcx.com.'' A replay of the meeting will be available
through June 15, 2001 on the company web site.
FCX explores for, develops, mines and processes ore containing copper, gold and silver in
Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. Additional
information about FCX is available on our Internet web site ``fcx.com.''
Notes:
•
•
(1) The term ``geological resource'' indicates estimated mineralization identified
by drilling which has reasonable potential for economic recovery based on
geological models and assumed continuity. For geological resources to be
reclassified to the proved and probable reserves category, additional drilling,
studies of cut-off grades, defining of mine shapes and plans, estimation of
metallurgical flow sheets and metal recoveries, associated costs and prices of
salable products must be developed that indicate that the resource can be mined
economically. There can be no assurance that the geological resources will
ultimately meet the criteria and be reclassified to the proved and probable
reserves category.
(2) Copper equivalent percentage is used to express the relative value of multimetal ores in terms of one metal, in this case, copper. The calculation expresses
the relative value of the ore using estimates of contained metal quantities, metals
prices, recovery rates, treatment charges and royalties.
Cautionary Statement: This press release contains forward-looking statements regarding
geological resources. The geological resources described herein will not qualify as proved and
probable reserves until a comprehensive evaluation of costs, grade, recoveries and other factors
has established their economic feasibility. Accordingly, no assurance can be given that the
estimated geological resources will become proved and probable reserves. Additionally,
important other factors that might cause future results to differ from these projections are
described in FCX's 2000 Form 10-K filed with the Securities and Exchange Commission.
Contact:
Freeport-McMoRan Copper & Gold Inc.
Financial Contact:
Chris D. Sammons, 504/582-4474
or
Media Contact:
William Collier, 504/582-1750
www.fcx.com