27th Oct 2005 16:41
Rio Tinto PLC27 October 2005 Rio Tinto's 68.4 per cent owned subsidiary, Energy Resources of Australia (ERA),issued the following news release in Australia today. Increase in Ranger mine's reserves and resources • Total reserves increased by 6,285 tonnes contained uranium oxide. • Total resources increased by 14,923 tonnes contained uranium oxide. • These increases result from a reduction in the cut-off grade from 0.12 per cent to 0.08 per cent uranium oxide. • The additional reserves will be processed between 2011 and 2014, adding three years to the predicted operational life of Ranger. Recent increases in the market price of uranium oxide have warranted a review ofthe cut off grade for processing Ranger ore (the cut off grade is the level downto which it is deemed to be economic to process ore). For at least the last tenyears, ERA has deemed the economic cut off grade to be 0.12 per cent uraniumoxide. ERA expects that this lower grade material will be processed over the period2011 to 2014, and will result in significantly lower uranium oxide productionduring those years. ERA has previously stated that mining at Ranger was expectedto continue until at least 2008 with milling operations continuing until atleast 2011. Mining activities at Ranger are still expected to cease in 2008. ORE RESERVES AND MINERAL RESOURCES As at 30 September 2005 As at 31 December 2004 Cut-off grade 0.08% U3O8 Cut-off grade 0.12% U3O8 ORE (MT) GRADE CONTAINED ORE (MT) GRADE CONTAINED (% U3O8) U3O8, (% U3O8) U3O8, tonnes tonnes RANGER ORE RESERVESCurrent stockpiles 9.24 0.152 14,028 6.34 0.20 12,878Ranger #3 PitIn-situ oreProved 4.73 0.25 11,997 4.15 0.29 12,186Probable 8.87 0.22 19,260 7.50 0.25 18,831Sub total Proved and Probable Reserve 13.60 0.23 31,257 11.65 0.27 31,017 Total Ranger #3Stockpile, Proved and Probable Reserve 22.84 0.20 45,285 17.99 0.24 43,895RANGER MINERAL RESOURCES IN ADDITION TO THE ABOVE RESERVE Measured 1.47 0.148 2,178 0.80 0.19 1,529Indicated 12.67 0.144 18,219 6.26 0.19 12,020Sub total Measured and Indicated Resource 14.14 0.144 20,398 7.06 0.19 13,549Inferred Resource 16.17 0.140 22,594 7.86 0.18 14,520Total Resources 30.31 0.142 42,992 14.92 0.19 28,069 Ranger reserves Reconciliation Reserves at 31 December 2004 43,895Additional Reserves 6,285Depletion of Reserves due to processing -4,895Reserve as at 30 September 2005 45,285 As required by the Australian Stock Exchange, the above Ranger Mineral Resourcestable contains details of other mineralisation that has a reasonable prospect ofbeing economically extracted in the future but which is not yet classified asProven or Probable Reserves. This material is defined as Mineral Resources underthe JORC Code. Estimates of such material are based largely on geologicalinformation with only preliminary consideration of mining, economic and otherfactors. While in the judgment of the Competent Person there are realisticexpectations that all or part of the Mineral Resources will eventually becomeProven or Probable Reserves, there is no guarantee that this will occur as theresult depends on further technical and economic studies and prevailing economicconditions in the future. Resources are stated as additional to the reserves reported in the table above. The information in this report that relates to Mineral Resources or Ore Reservesis based on information compiled by the company's Geologist, Stephen Dinkowitzand Mining Engineer, Dayle Kenny, who are members of the Australasian Instituteof Mining & Metallurgy and full time employees of the company. Stephen Dinkowitzand Dayle Kenny have sufficient experience which is relevant to the style ofmineralisation and the type of deposit under consideration, and to the activitywhich they are undertaking to qualify as Competent Persons as defined in the2004 Edition of the "Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves". Stephen Dinkowitz and Dayle Kenny consentto the inclusion in the report of the matters based on their information in theform and context in which it appears. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsMaria Darby Walker Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7725 036 544 Mobile: +61 (0) 408 360 101 Investor Relations Investor RelationsNigel Jones Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 David Ovington Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792 Website: www.riotinto.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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