Equinox Publishes Preliminary Lumwana Production Results for 3rd Quarter 2010

Increases Production Guidance

TORONTO, Oct. 12 /CNW/ - Equinox Minerals Limited (TSX and ASX: EQN) ("Equinox" or the "Company") announced today its preliminary production results for the quarter ended September 30, 2010 ("Q3-2010") from its 100% owned Lumwana Copper Mine ("Lumwana") in Zambia and, following another strong production result in the September quarter, Equinox is increasing full year production guidance to 140,000 tonnes of copper in concentrate.

Lumwana produced 38,445 tonnes of copper in concentrate during Q3-2010. The mine continued to increase the total material movement averaging more than 10 million tonnes per month, while the plant operated at design capacity with 4.94 Mt of ore treated in the quarter. Production for the 9 months to the end of September 2010 totaled 112,751 tonnes of copper in concentrate.

Material movement of 30.4 Mt is the best quarterly result to date and is as a result of continued operational improvements with longer working faces, larger blasts and higher benches, leading to better equipment productivity and utilization. The five new Hitachi EH-4500 trucks have now been commissioned and were operating during the quarter. Mining operations moved into new production stages during Q3-2010, resulting in additional stripping and slightly lower ore production for the quarter at 4.18 Mt, necessitating the drawdown of stockpiles. 

The plant produced at its design rate of 20 Mtpa over the quarter with 4.94 Mt of ore milled. Despite the higher throughput rates, copper production was down relative to the June quarter. This was due to lower head grades (0.87% Cu) as mining moved out of the higher grade Starter Pit and slightly lower copper recovery (89%) with some transitional oxide-sulphide material from the new stages being treated. The lower head grade and recoveries achieved in Q3-2010 are expected to continue into the December quarter.

In addition to the copper ore mined during the quarter, mining of the uranium zones at Valeria South and Valeria North within the Malundwe pit continued during the quarter with 1.15 Mt of uranium-copper material mined.  The uranium stockpile on the ROM pad has increased to 4.5 Mt of 900 ppm uranium and 0.8% copper, and is being classified and expensed as "waste" to the copper project.  This uranium-copper stockpile may be treated at a later date, if and when the Company builds a uranium plant.

Lumwana Mine Production Statistics

Production Statistics	Measure	Q3 2010	Q2 2010	Q1 2010	Q4 2009	Q3 2009
Total material movement	Tonnes (m)	30.39	26.60	14.99	22.23	29.30
Ore mined	Tonnes (m)	4.18	5.09	3.09	4.20	4.02
Ore processed	Tonnes (m)	4.94	4.57	3.59	3.96	3.82
Head grade	Copper %	0.87	1.02	0.93	0.94	0.92
Copper recovery	Copper %	89	94	92	93	80
Concentrate grade	Copper %	41	44	44	46	47
Copper in concentrate	Tonnes	38,445	43,835	30,471	34,626	28,111
Copper in concentrate	Pounds (m)	84.76	96.61	67.18	76.33	61.97

Production Guidance

As a result of both the mine and the plant operating at "nameplate" design and the stronger than expected results in the September quarter, management is increasing its full year production guidance to 140,000 tonnes (308 million pounds) of copper metal in concentrate at an average estimated C1 operating cost⁽¹⁾ of $1.35 per pound. 

Offtake Update

During the quarter, concentrate delivery was predominantly directed to Chambishi Copper Smelter Limited and the Konkola Copper Mines Plc smelter at Nchanga on the Zambian Copperbelt.  Concentrate stocks have remained at similar levels to the June quarter with the stronger than expected production results, but it is anticipated that these will be drawn down over the remainder of the year.

Expansion and Optimization Plans

During the quarter Equinox continued the Expansion Feasibility Study into expanding production at Lumwana to 35 Mtpa and this study is progressing on schedule. It is expected Lumwana will be able to debottleneck the plant to increase production to 24 Mtpa by the end of 2011, with the Chimiwungo pit commencing production towards the end of 2012.

(1)  The term "C1 operating cost" is a non-GAAP measure.  See "Non-GAAP Measures" in the Cautionary Notes below.

Equinox will continue to review and assess opportunities for organic growth and expansion at Lumwana as well as corporate opportunities to grow the Company.

Equinox President and Chief Executive Officer Craig Williams commented "with Lumwana operating at design capacity, the solid performance in Q3-2010 has enabled us to increase production guidance for the 2010 year to 140,000 tonnes of copper in concentrate. The Equinox team is now focusing on continued productivity improvements and our expansion objectives to optimize the potential of Lumwana."

Craig R. Williams - President & Chief Executive Officer

About Equinox

Equinox Minerals Limited is an international mining company dual listed on the Canadian (Toronto) and Australian stock exchanges.

The Company is currently focused on operating its 100% owned large scale Lumwana Copper Mine in Zambia, one of the largest new copper mines to be developed globally over the last few years.

Equinox acquired the Lumwana project in 1999 and following nearly 10 years of feasibility, financing and construction, commissioned the mine, plant and infrastructure in December 2008.

Situated 220 km northwest of the Zambian Copperbelt, Lumwana is now a major copper mine which has established Equinox as one of the world's top 20 copper producing companies.

Lumwana is mining and processing in excess of 20 million tonnes of ore per year, mined at an average life of mine strip ratio of 4.2:1. Lumwana ore, which is predominantly sulphide, is treated through a large, yet conventional plant, producing a copper concentrate for sale to local and international offtakers.

In addition, Equinox is looking at opportunities to grow the Company through both internal expansion and through the international search for mergers and acquisitions.

For information on Equinox and technical details on the Lumwana Project please refer to the company website at
www.equinoxminerals.com

Cautionary Notes

Forward-Looking Statements
Certain information contained or incorporated by reference in this press release, including any information as to the Company's strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, constitutes "forward-looking statements" within the meaning of Canadian securities laws.  All statements, other than statements of historical fact, are forward-looking statements.  Forward-looking statements can often, but not always, be identified by the use of words such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words; or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. 

Without limitation, statements that the uranium stockpile may be treated at a later date if and when the Company builds a uranium plant;  that Management estimates that Lumwana will produce 140,000 tonnes (308 million pounds) of copper metal in concentrates at an average estimated C1 operating cost⁽¹⁾ of $1.35 per pound for the 2010 year; that the Company anticipates that ramp up of the Lumwana mine and process plant to 24 Mtpa by the end of 2011, with Chimiwungo pit commencing production towards the end of 2012; and statements with respect to the expansion and optimization plans, including the timing and other related matters of such statements, are forward-looking statements. The purpose of forward-looking statements is to provide the reader with information about management's expectations and plans for 2010 and subsequent years. Actual results may vary.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Such factors, estimates and assumptions include, but are not limited to, anticipated financial or operating performances of Equinox, it subsidiaries and their respective projects; future prices of copper and uranium; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; estimated costs of future production; the grade, quality and content of the concentrate produced; the sale of production and the performance of offtakers; capital, operating and exploration expenditures; costs and timing of the development of the Lumwana Mine, the costs of Equinox's hedging policy; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; and limitations of insurance coverage.  These risks and uncertainties are fully described in detail in the Company's Annual Information Form dated March 15, 2010 which can be found on SEDAR at www.sedar.com or the Company's website at www.equinoxminerals.com.  While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Without limitation, in stating that the uranium stockpile may be treated at a later date if and when the Company builds a uranium plant, the Company has assumed that the costs of building such a plant will be feasible, that the materials, labour, regulatory approvals and other requirements will be available and that the price and demand for uranium will be profitable and that the underlying assumptions and information in the uranium feasibility study are correct.  Further in relation to the mining of the orebody, it assumes that it will successfully segregate the uranium mineralization within the copper orebody at the lower 200 ppm U cutoff grade and produce concentrates that meet smelter specifications.   In stating that Management estimates that Lumwana will produce 140,000 tonnes (308 million pounds) of copper metal in concentrates at an average estimated C1 operating cost⁽¹⁾ of $1.35 per pound and that the Company will continue to ramp up production to 24 Mtpa by the end of 2011, with the Chimiwungo pit commencing production towards the end of 2012, the Company has assumed that its ongoing efforts towards improving efficiencies will result in continued improvements in mine, mill and processing plant performance and in availability and utilization of the mining fleet.  In making statements with respect to the expansion and optimizations plans, including the schedule and timing, anticipated results and work required to complete the plans and achieve the desired results, the Company has assumed that the preliminary studies completed to date prove to be accurate, any costs associated with completing such plans will be feasible, that the materials, labour, regulatory approvals and expertise will be available and that the price and demand for copper and uranium will be profitable and that it will secure any necessary financing and/or offtake commitments on satisfactory terms and that the underlying assumption and information in the preliminary studies are correct.

Readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Equinox and/or its subsidiaries, including costs, production and returns, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors are fully discussed in the Company's Annual Information Form dated March 15, 2010.  Readers are cautioned that forward-looking statements are not guarantees of future performance.  All of the forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

Although Equinox has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made, and Equinox disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information.

Technical Information
Certain technical information in this press release has been summarized or extracted from the Technical Report on the Lumwana Project, North Western Province, Republic of Zambia dated June 2008 and as re-filed in April 2009 (the "Technical Report").  Scientific and technical information contained in this press release has been prepared under the supervision of Robert Rigo, BEng., FAusIMM, MIEAust, Vice President, Project Development of Equinox who is a "Qualified Person" in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.  Readers are cautioned not to rely solely on the summary of information contained in this release, but should read the Technical Report which is posted on Equinox's website at www.equinoxminerals.com and filed on SEDAR  at www.sedar.com and any future amendments to such report.  Readers are also directed to the cautionary notices and disclaimers contained therein.

Non-GAAP Measures
The term "C1 operating cost" is a non-GAAP performance measure reported in this press release and is prepared on a per-pound of copper produced basis.  The term C1 operating cost does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers.  C1 operating cost is a common performance measure in the copper industry and is prepared and presented herein on a basis consistent with the industry standard definitions.  C1 operating costs includes all mining and processing costs, mine site overheads and realization costs through to refined metal.

For further information:

Craig R. Williams(President and Chief Executive Officer),
Michael Klessens(Vice President - Finance and Chief Financial Officer)
Phone:[phone] Email:  [email protected]

or

Kevin van Niekerk(V.P. Investor Relations)
Phone:  [phone] Email:  [email protected]

or

David Griffiths (Gryphon Management Australia)
Phone [phone] Email: [email protected]