SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 8, 1996
FREEPORT-McMoRan COPPER & GOLD INC.
Delaware 1-9916 74-2480931
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
The following news release was issued by Freeport-McMoRan Copper
& Gold Inc. on November 8, 1996:
NEW ORLEANS, LA., November 8, 1996 -- Freeport-McMoRan Copper &
Gold Inc. (FCX) announced today that the Amole tunnel, which is
being driven from the proximity of the mill into the Grasberg
orebody at approximately the 2,900 meter elevation, has
intersected the fringes of heavy sulfide "skarn-type"
mineralization which the company believes could surround the
Grasberg complex. Furthermore, FCX is drilling a horizontal
pilot drill hole in front of the Amole tunnel which has
intersected 65 meters, 40-50 meters true width, of heavy sulfide
"skarn-type" mineralization which averaged 1.40 percent copper
and 0.91 grams of gold per ton yielding a copper equivalent grade
of approximately 2.00 percent. The drill hole continued through
this "skarn-type" mineralization directly into the mineralized
Grasberg intrusive where the hole continues to be drilled with
assays pending.
Intersection of this heavy sulfide "skarn-type" mineralized
zone confirms the results of previous wide-spaced underground
drill results but the continuity of this zone is still under
investigation. The 2.00 percent copper equivalent grade in this
first pilot hole is highly encouraging when combined with the
result of the nearby (approximately 50 meters to the northeast)
vertical hole, the GRS37-209, which was drilled underground from
the 3,700 meter elevation and previously announced on May 15,
1995. The GRS37-209 hole encountered 627 meters of heavy sulfide
"skarn-type" mineralization that averaged 1.22 percent copper and
0.86 grams of gold per ton yielding a copper equivalent grade of
1.78 percent. As previously mentioned, this heavy sulfide
"skarn-type" mineralized zone has the potential to encircle the
Grasberg intrusive, approximately 850 meters in diameter, between
the 2,500-3,100 meter elevations.
Delineation drilling of the Kucing Liar mineralization
within the "Golden Triangle" area at P.T. Freeport Indonesia
Company's (PT-FI) Ertsberg-Grasberg district continues utilizing
six diamond drill rigs from underground sites in the Amole tunnel
and the new northwest-trending Kucing Liar/Lembah Tembaga tunnel.
Underground drill sites are 50-135 meters apart allowing
multiple holes, known as fans, to be drilled from each site
across a portion of the 1.5 kilometer long Kucing Liar
mineralized zone. Based on current information, this mineralized
zone could represent a geologic resource of 250 million metric
tons at an average grade of approximately 2 percent copper
equivalent. On September 18, 1996, FCX announced that it had
drilled 15 delineation holes over a 500 meter interval of the
Kucing Liar 1.5 kilometer long mineralized zone with assay
results on 8 of those holes. Subsequently, 18 additional
delineation holes have been drilled or are in progress on the
Kucing Liar prospect over the same 500 meter interval and 20
additional assays have been completed (4 of which being updates
from the September 18, 1996 announcement). The 20 assays are
summarized below:
Hole Interval % Cu g/tAu %Cu equiv
------- -------- ---- ----- ---------
KL 16-1 (updated) 423.6m 1.97 1.88 3.19
KL 16-2 135.4m 1.25 1.30 2.10
KL 16-3 71.5m 0.79 1.36 1.67
KL 16-4 73.7m 0.74 0.98 1.37
KL 16-5 71.2m 0.82 1.09 1.53
KL 16-6 213.0m 1.21 1.24 2.02
KL 18-4 85.3m 1.05 1.08 1.75
KL 18-5 57.0m 0.97 1.27 1.80
KL 18-6 (updated) 16.1m 1.25 1.25 2.06
KL 20-2 170.0m 1.29 1.35 2.17
KL 20-3 252.5m 1.18 1.17 1.94
KL 20-4 318.7m 1.16 1.03 1.83
KL 22-1 198.0m 0.66 0.58 1.04
KL 22-2 223.6m 0.69 0.63 1.10
KL 23-1 (updated) 196.7m 0.76 0.61 1.16
KL 23-2 (updated) 205.1m 1.30 1.19 2.07
KL 23-3 131.9m 1.21 1.32 2.07
KL 23-4 113.6m 1.07 1.97 2.35
KL 23-5 38.1m 0.48 1.60 1.52
KL 24-1 146.1m 0.96 0.73 1.43
This high grade underground Kucing Liar mineralization,
within the "Golden Triangle" and in close proximity to the mill,
could have a significant positive impact on the grade of the ore
feed to PT-FI's "fourth concentrator mill expansion". The
optimum rate of the expansion is being assessed but is expected
to be at least 190,000 to 200,000 metric tons of ore per day.
Permitting for this expansion is currently underway with a start-
up date anticipated during the second half of 1998.
Exploration drilling activities continue to explore the
extent of the Kucing Liar and heavy sulfide "skarn-type"
mineralization. Once the Amole tunnel has progressed into the
Grasberg orebody, exploration drilling will be conducted from
underground to test the western and northern flanks of the
Grasberg intrusive for Kucing Liar type mineralization, heavy
sulfide "skarn-type" mineralization around the fringes of the
Grasberg, and the deep Grasberg below the presently outlined 600+
million metric ton block-cave reserve that was announced in
December 1995.
FCX is engaged in mineral exploration and development,
mining and milling of copper, gold and silver in Irian Jaya,
Indonesia and the smelting and refining of copper concentrates in
Spain. FCX is also involved in a joint venture to construct and
operate a smelter/refinery in Indonesia.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
FREEPORT-McMoRan COPPER & GOLD INC.
By: /s/ Michael A. Weaver
------------------------------
Michael A. Weaver
Controller-Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: November 21, 1996
