Notes To Consolidated Financial Statements Average Ore Grade  Proven and Probable  P er  M etric Ton  Recoverable Reserves  Year-End  Ore  Copper  Gold  Silver  Copper  Gold  Silver (Thousand  (Billions  (Millions  (Millions Metric Tons)  (%)  (Gr a ms) (Ounces)  (Grams)  (Ounces)  of Lbs.)  of Ozs.)  of Ozs.) 2000  2,514,532  1.10  1 . 04  .033  3.40  .109  50.9  63.7  139.6 2001  2,583,883  1.13  1 . 05  .034  3.72  .120  52.5  64.5  151.6 2002  2,584,465  1.12 1 . 02  .033  3.73  .120  53.3  62.6  147.6 2003  2,695,883  1.08  0 . 98  .032  3.72  .120  54.4  60.4  159.4 2004  2,769,102  1.09  0 . 97  .031  3.84  .123  56.2  61.0  174.5 By Ore Body at December 31, 2004: Developed and producing: Grasberg open pit  710,607  1.11  1 . 30  .042  2.58  .083  14.9  24.9  29.9 Deep Ore Zone  155,243  0.92  0 . 63  .020  4.98  .160  2.5  2.3  12.6 Undeveloped:  Grasberg block cave  873,792  1.00  0 . 76  .024  2.82  .091  16.2  14.2  42.2 Kucing Liar  498,999  1.30  1 . 18  .038  5.61  .180  12.4  9.3  38.7 Mill Level Zone  158,773  0.87  0 . 76  .024  3.93  .126  2.6  3.0  12.6 Deep Mill Level Zone  146,417  1.22  0 . 95  .031  6.25  .201  3.4  3.4  18.4 Ertsberg Stockwork Zone  121,714  0.49  0 . 90  .029  1.65  .053  1.1  2.7  4.2 Dom block cave  43,651  1.09  0 . 31  .010  5.91  .190  0.8  0.3  4.0 Big Gossan  32,906  2.63  0 . 92  .030  15.72  .505  1.6  0.7  8.1 Dom open pit  27,000  1.80  0 . 43  .014  9.60  .309  0.7  0.2  3.8 Total  2,769,102  1.09  0 . 97  .031  3.84  .123  56.2  61.0  174.5 PT Freeport Indonesia’s share  40.5  46.5  124.5 FCX’s equity share$^{a}$  36.7  42.1  112.8 a. Reflects FCX’s 90.6 percent ownership interest (see Note 2). Estimated recoverable reserves were assessed using a copper  price of $0.85 per pound, a gold price of $270 per ounce and  a silver price of $5.00 per ounce. With respect to the proven  and probable reserves presented above, if metal prices were  adjusted to the approximate average London spot prices for  the past three years, i.e., copper prices adjusted from $0.85  per pound to $0.94 per pound and gold prices adjusted from  $270 per ounce to $361 per ounce, the additions to proven and  probable reserves would not be material to reported reserves. Incremental cash flow attributable to the fourth concentrator  mill expansion is shared 60 percent by PT Freeport Indonesia and  40 percent by Rio Tinto (Note 2). Incremental cash flow consists  of amounts generated from production in excess of specified  annual amounts based on the December 31, 1994, reserves and  mine plan. The incremental revenues from production from  the expansion and total revenues from production from Block  A, including production from PT Freeport Indonesia’s previ- ously existing operations, share proportionately in operating,  nonexpansion capital and administrative costs. PT Freeport  Indonesia receives 100 percent of cash flow from its existing  pre-expansion production facilities as specified by the  contractual arrangements. PT Freeport Indonesia’s estimated  net share of recoverable reserves and FCX’s equity interest in  those reserves follow: PT Freeport Indonesia  FCX$^{a}$  Year-End  Copper  Gold  Silver  Copper  Gold  Silver (Billions  (Millions  (Millions  (Billions  (Millions  (Millions of Lbs.)  of Ozs.)  of Ozs.)  of Lbs.)  of Ozs.)  of Ozs.) 2000  38.9  50.3  108.5  33.4  43.2  93.2 2001  39.4  50.2  114.5  35.7  45.5  103.8 2002  39.4  48.5  110.9  35.7  44.0  100.5 2003  39.7  46.6  116.8  36.0  42.2  105.9 2004  40.5  46.5  124.5  36.7  42.1  112.8 a. Reflects FCX’s 85.9 percent ownership interest through 2000 and 90.6 percent ownershi p interest thereafter (see Note 2). 2004 ANNUAL REPORT  | 79