TORONTO, Nov. 13 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol: "EQN") ("Equinox" or the "Company") today released its results of operations and financial condition for the three and nine months ended September 30, 2009, and its financial position as at September 30, 2009.

All currencies specified in this press release are denominated in U.S. dollars.

HIGHLIGHTS FOR THE QUARTER

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- Copper production increased 15% over Q209 and 26% over Q109, with

28,111 tonnes of copper produced at an average (C1) operating cost of

$1.46 per pound;

- Operating profit increased 77% over Q209 with the achievement of

$64.1 million operating profit for the three month period ended

September 30, 2009 (commercial production commenced April 1, 2009);

- Operating profit was subsequently offset by non-cash derivative

instrument losses resulting from the rising copper price leading to a

net loss position, after tax, of $56.3 million, primarily related to

the remaining hedge book being marked to market at the current

strengthening copper price. Revenue was positively impacted by the

strengthening copper price;

- Realized copper price, net of smelter treatment charges, was $2.58

per pound and 16,632 tonnes of payable copper provisionally priced at

$2.79 per pound ($6,153 per tonne) remain subject to final pricing

adjustment during Q409;

- Total material movement increased by 44% compared to Q209 and ore

mined increased by 33% compared to Q209;

- Lower metallurgical recoveries continued to impact production due to

the proportion of transitional ore processed. Orebody studies by

consultants Golder & Associates show that the Malundwe resource

reconciliations are consistent with the original mine design. These

studies also confirm original estimates that the transitional ore

constitutes about 5% of the orebody;

- Mining of the uranium zones at Valeria South and Valeria North within

the Malundwe pit has produced a stockpile of 1.94mt (at) 1,044 ppm

uranium and 0.81% copper to the end of Q309;

- Pit preparation has been substantially enhanced for the forthcoming

2009/2010 wet season;

- Hitachi has agreed to mobilize an additional five x EH4500 dump

trucks in order to expedite the recovery of lost availability hours

on the existing fleet. These additional trucks are scheduled to be on

site by mid 2010;

- Equinox took delivery of an additional Caterpillar light mining fleet

including 16 x 40-tonne dump trucks, 5 x 100-tonne dump trucks, 2 x

excavators and 3 x bulldozers, which are being used primarily to

accelerate stripping of weathered material;

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Performance Three months ended Nine months ended

September 30 September 30

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2009 2008 2009 2008

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Gross sales

(in thousands) $170,798 n/a $298,531 n/a

Net income/(loss)

(in thousands) ($56,266) ($680) ($155,598) ($10,616)

Earnings/(loss) per

share ($0.08) ($0.00) ($0.24) ($0.09)

Payable copper in

tonnes 26,465 n/a 50,100 n/a

Payable copper in

pounds 58,344,166 n/a 110,450,470 n/a

Average (C1)

operating cost $1.46 n/a $1.46 n/a

Realized copper price

per pound (net of

smelter treatment

charges) $2.58 n/a $2.38 n/a

Cash and cash

equivalents (in

thousands) $119,862 $51,327 $119,862 $51,327

Number of shares

outstanding 704,618,212 592,959,858 704,618,212 592,959,858

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At the end of Q309, the Company had 16,632 tonnes of payable copper provisionally priced at $2.79 per pound ($6,153 per tonne) remain subject to final pricing adjustment during the fourth quarter.

OVERALL PERFORMANCE

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Operations

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An operating profit was achieved by the Company for the three month period ending September 30, 2009. An operating profit of $64.1 million was generated at the Lumwana Mine during the quarter, a 77% improvement on Q209. The operating profit was subsequently offset by a non-cash hedging instrument loss of $88.4 million related to the remaining hedge position which no longer qualifies for hedge accounting, leading to a net loss position, after tax, for the quarter of $56.3 million or $0.08 per share.

During the quarter, the Lumwana mine continued to ramp up both the mine and process plant operations. Ore processed at the Lumwana Mine for the quarter was 3.82 million dry metric tonnes of ore, producing 59,652 dry metric tonnes of concentrate at an average copper grade of approximately 47.1%. This represents an increase in processed tonnes of 8.0% from the prior quarter due to continued improvement from the mining activities, resulting in copper produced in concentrate of 28,111 tonnes (61.97 million pounds) at an average (C1) operating cost of $1.46 per pound.

Mine productivity continued to improve during the quarter, with ore mined increasing to 4.02 million tonnes, an increase of 33% compared to Q209 and total material movement increasing 44% to 29.3 million tonnes. The Malundwe Orebody at Lumwana is currently operating from four sub-pits which will ultimately merge into one large pit. Ore production to date has primarily been from the 'Starter' and '1E' pits. As additional sub-pits are opened up along the strike of the ore body, further transitional (mixed sulphide- oxide) ore continues to be encountered. However, as further mining in Malundwe exposes more consistent sulphide ore, the negative impact of mixed ores on recoveries will diminish.

While ore production continued to increase from last quarter, actions being taken to further improve mine production include the following:

- Improving availability of the Hitachi mine truck and shovel mobile

equipment fleet. Although the general trend is improving over the

year, the availability needs to further improve and be maintained to

meet production targets.

- Hitachi is responsible for the maintenance and repair contract on the

Hitachi fleet at Lumwana and is initiating measures to ensure that

contract availability rates are achieved and to make up hours of

availability lost to date. Hitachi has agreed to mobilize an

additional five EH 4500 dump trucks (240t) in order to expedite the

recovery of lost availability on the existing fleet. These additional

trucks are scheduled to be on site by mid 2010. Subsequent to the

making up of lost hours, Equinox will purchase those trucks at their

depreciated value. This is envisaged to occur in mid 2011. Other

improvement initiatives include Hitachi Japan taking direct control

of the management of the maintenance and repair contract,

implementation of a new operating structure, increasing spare parts

stock levels for Hitachi equipment and increasing personnel and

resources.

- The purchase of additional mining fleet equipment during the quarter:

- Equinox took delivery of an additional Caterpillar light fleet

comprising 16 x 40-tonne articulated dump trucks, 5 x 100-tonne

dump trucks; 2 x excavators and 3 x bulldozers. This fleet is

primarily being utilized to accelerate stripping of weathered

material. Sub-contractor light fleets are also operating for

civil works and stripping; and

- The Company also purchased an additional 3 x Sandvik D45K

drilling rigs to accelerate drill and blast operations in the

pit, which will enhance material movement.

- The Equinox team continued to work with mining productivity experts

Jamieson Group to assist our site management to improve productivity

performance in the mine. While excellent gains have been made we

continue to see further room for improvement.

- The second stage of the trolley assist infrastructure was

commissioned during the quarter, providing trolley access from the

main ramp to the Starter pit. Utilization of the extended trolley

lines will improve ramp speeds and consequently reduce cycle times,

as well as reducing the hybrid diesel-electric truck operating costs.

- Wet season preparations are well advanced, following the experience

of mining at Lumwana during the 2008/2009 wet season. Wet season pit

preparations have been substantially enhanced for the forthcoming

2009/2010 wet season with:

- diversion channels to control surface water ingress into the pit;

- substantial sumps excavated for the collection of in-pit water;

- pumping capacity doubled since 2008; and

- all main ramps and roads have been sheeted and surfaced to

improve road conditions, particularly during wet periods.

Lower metallurgical recoveries continued to impact production during the quarter due to the proportion of transitional ore being processed. For Lumwana ore, recoveries in transition material typically range between 50 - 60% whereas those in sulphide ore typically range between 90 - 95%. Orebody studies by consultants Golder & Associates show that the Malundwe resource reconciliations are consistent with the original estimate. The Malundwe reserve reconciliations are showing good correlation with metal content, although grade dilution is occurring as a consequence of using higher bench heights of 8m as opposed to the 4m used in the original mine plan. Although further transitional ore will be encountered in the weathering zone of each new pit to be developed at Lumwana, the proportion of transition ore to sulphide ore is reducing as the pits deepen along the length of the orebody.

Mining of the uranium zones at Valeria South and Valeria North within the Malundwe pit has produced a stockpile of 1.94mt (at) 1,044 ppm uranium and 0.81% copper to the end of Q309. This copper- uranium ore is being diverted away from the copper concentrator, and is being classified as "waste" to the copper project. This uranium- rich copper ore stockpile may be treated at a later date, if and when the Company builds a uranium plant.

The 20 Mtpa processing plant continues to perform to expectation and is capable of producing in excess of its design capacity based on achieved through put rates to date.

Lumwana Mine Production Statistics

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Q1 Q2 Q3 Total

Production Statistic Measure 2009 2009 2009 to-date

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Total mine material

movement Tonnes (m) 8.88 20.80 29.3 59.57

Ore mined Tonnes (m) 1.84 3.03 4.02 8.89

Ore processed Tonnes (m) 2.88 3.03 3.82 9.73

Head grade Copper % 0.93 0.98 0.92 0.94

Copper recovery Copper % 83 82 80 82

Concentrate grade Copper % 39 39 47 42

Copper produced in

concentrate Tonnes 22,263 24,413 28,111 74,787

Copper produced in

concentrate Pounds (m) 49.08 53.82 61.97 164.87

Average (C1)

operating cost Per Pound - $1.46 $1.46 $1.46

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Production Guidance

Management believes that based on the work underway in preparation for the forthcoming wet season, a continuing focus on mining fleet productivity, the commissioning of further trolley- assist infrastructure to help improve truck cycle times and the increasing exposure of new sulphide ore zones, that the fourth quarter of 2009, subject to wet season conditions, should demonstrate additional improvement on quarterly production to date. As such, management estimates production guidance for the full 2009 calendar year should be between 105,000 and 110,000 tonnes (231 - 242 million pounds) of copper metal in concentrates at an average estimated (C1) operating cost of between $1.35 and $1.50 per pound.

Management believes that it is taking appropriate remediation action to meet the challenges specified in this report.

Expansion and Optimization Plans

Significant opportunities exist at the Lumwana Mine following the completion of ramp up to further expand and optimize the concentrator and mine throughput rate, to assess and evaluate the additional near mine deposits discovered to date and to develop the Lumwana Mine uranium resource. Equinox will continue to assess these opportunities for expansion and organic growth at the Lumwana Mine.

Equinox has also completed the uranium feasibility study ("UFS") investigating the onsite treatment of discrete and high grade uranium mineralization contained within the Lumwana Mine copper pitshells. The UFS has confirmed the potential viability of onsite uranium treatment. Should Equinox be successful in negotiating viable uranium offtake agreements and securing the requisite project capital financing, the Company estimates plant construction to take approximately 18 to 24 months. The decision to proceed with the development of the Lumwana Uranium Project will depend, subject to Board approval, on a number of factors including satisfactory financing and offtake terms being negotiated. The stockpiling of Lumwana Mine uranium ore is ongoing and to the end of Q309 the stockpile totaled 1.94mt (at) 1,044 ppm uranium and 0.81% copper.

Equinox will continue to review and assess opportunities for organic growth and expansion, and corporate opportunities to grow the Company.

ZESCO Update

The Company previously announced that it is in dispute with ZESCO Limited ("ZESCO"), Zambia's national power supply utility, over electricity charges believed by ZESCO to be incurred by the Company between 2007 and 2008. ZESCO has claimed invoice values totaling $9.0 million for the period up to December 31, 2008. However, based on legal advice, the Company has determined a value of $2.0 million is payable based on the terms of the contract. The Company disputes ZESCO's claim, and has paid $2.0 million to ZESCO while conducting negotiations in an effort to resolve the matter. The Zambian Government has replaced the board and Chief Executive Officer of ZESCO, the ZESCO Notice of Termination has been withdrawn and discussions continue with the new management of ZESCO. Equinox believes that the matter can be resolved in a reasonable manner.

Zambian Tax Legislation

The Government of the Republic of Zambia ("GRZ") enacted on April 1, 2008, a number of changes to the Zambian tax regime, particularly in relation to mining companies. This includes changes to the tax treatment that would increase corporate tax from 25% to 30%, the mining royalty from 0.6% to 3%, and a number of other proposed additional imposts including a "variable profit tax", a "windfall tax" and treatment of hedging income as separate source income.

On January 30, 2009, the Minister of Finance of the GRZ announced changes to the 2009 Budget which include the abolition of a number of changes enacted in 2008, including the removal of the hedging activity quarantine provisions. The 2009 changes took effect on April 1, 2009. The Company has applied the tax changes from the effective date.

In 2005 the Company entered into a Development Agreement with GRZ for its Lumwana Mine which provides LMC with a 10 year stability period in the regulatory environment, including taxation, and rights of independent arbitration in the event of any dispute. Following local and international legal advice, the Company believes that its Development Agreement overrides the current changes to the Zambian tax regime. Until it has resolved the uncertainty surrounding the application of the Development Agreement, the company has measured in the current year its taxation balances on the basis of the enacted legislation.

If the Company had calculated its taxation related balance based on the terms of the Development Agreement the royalty expense for the nine months ended September 30, 2009 would have reduced by $6.1 million and the income tax benefit for the nine months ended September 30, 2009 would have increased by $11.2 million. The retained earnings loss position at September 30, 2009 would have reduced by $8.0 million.

Offtake Update

During the quarter, concentrate delivery was predominantly directed to Chambishi Copper Smelter Limited ("CCS") and the Konkola Copper Mines Plc ("KCM") smelter at Nchanga on the Zambian Copperbelt.

Town Development

The Lumwana town development continues to advance with 637 houses completed to the end of Q309. The commercial and retail developments, including the recently opened Lumwana supermarket, are advancing and a self-sustaining modern town environment is being developed.

Corporate Activities

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In September 2009, the Company's subsidiary, Lumwana Mining Company Limited ("LMC") exercised its option to extinguish the right held by Phelps Dodge Mining (Zambia) Limited ("PD Zambia") to receive a 1% Lumwana Mine net smelter return royalty under the purchase and sale agreement (the "Purchase and Sale Agreement") dated December 8, 2004 between PD Zambia and the Company.

Between August 1999 and June 2003, the Company earned a 51% interest in Lumwana as a result of expending $10 million and completing a bankable feasibility study. Under the Purchase and Sale Agreement, the Company acquired the remaining 49% interest in the Lumwana Mine.

The Purchase and Sale Agreement provided that PD Zambia would retain the right to a 1% Lumwana Mine net smelter royalty which could be terminated by the Company at its option under certain conditions.