Modern Mining April 2018

MINING News

Updated study strengthens the case for Kalongwe

The estimated capex to bring Stage 1 into production is US$53,12 million with payback expected in 17 months. A Preliminary Economic Analysis of SX-EW processing has also been com- pleted which highlights further potential increases to the returns and mine life from higher copper-cobalt output and revenue. One option has been selected for fur- ther evaluation as a potential Stage 2 to the DMS construction, comprising a full SX-EW plant and cobalt circuit to process DMS-generated rejects and cobalt-only ore. This Stage 2 expansion option, which can be funded from cash-flows from the Stage 1 DMS, will be incorporated into the recently commenced front-end engineer- ing design (FEED) programme for Stage 1. Comments Nzuri Copper’s CEO and Executive Director, Mark Arnesen: “The Kalongwe copper-cobalt project con- tinues to go from strength to strength. The updated Stage 1 Feasibility Study has delivered an impressive pre-tax NPV of US$186 million, a 99 % IRR and an increased ore reserve which now underpins an eight-year mine life. This incorporates updated, though still conser- vative, cobalt pricing assumptions. It is also based on an enhanced point-of-delivery at Kolwezi based on advanced discussions with potential off-takers completed since the 2017 Feasibility Study. “In conjunction with these outstand- ing results, the recently completed Stage 2 Preliminary Economic Analysis has cap- tured the value potential of a larger SX-EW development. This has confirmed our view that there is huge upside in the project which can be unlocked through future staged expansions funded from Stage 1 cash-flows. The results provide a clear roadmap that will help guide the detailed front-end engineering and design of the project, which is about to commence. “Our immediate focus over the next few months is to advance appropriate funding solutions and, with the support of our cor- nerstone shareholders, deliver Stage 1 as quickly as we can while keeping in mind the best way of pursuing SX-EW process- ing. At the same time, we are continuing to pursue aggressive exploration aimed at growing our resource inventory and mine life at numerous exciting near-mine and regional targets.” 

The future open-pit area at Kalongwe (photo: Nzuri Copper).

based on the new mining legislation and regulations. Katoro expects to complete the assess- ment referred to above by the end of Q2/ early Q3 2018. The company has decided to suspend all ongoing feasibility work on the Imweru project until it has reached a final decision on the economic viability and fur- ther development of Imweru. The company says it has employed a sensible financial policy, ensuring that expenditure has remained low and that substantial savings over the original bud- get have been realised over the past 12 months. Accordingly, the company currently has a strong cash position of approximately £540 000 that enables it to continue with the execution of its strategy and work programmes.  The project scope and capital require- ments for Stage 1 remain unchanged and comprise an open-pit mine and an on-site 1 Mt/a Dense Media Separation (DMS) pro- cessing plant to produce two high-quality dry saleable concentrate products suitable as a feedstock for off-site SX-EWprocessing. Estimated annual concentrate produc- tion would be 117 kt of DMS product with an average grade of 15 % Cu and 1 % Co and 20,5 kt of spiral product averaging 5,2 % Cu and 0,9 % Co. This is equivalent to an annual average metal production of 18 657 tonnes of Cu and 1 370 tonnes of Co. cobalt compared with the maiden ore reserve published in October 2017.

ASX-listed Nzuri Copper has completed an updated Feasibility Study (FS) for the pro- posed Stage 1 development of its flagship 85 %-owned Kalongwe copper-cobalt proj- ect located in the Kolwezi region of the DRC. The updated Stage 1 FS was based on revised pricing (reflecting contin- ued increases in the cobalt price) and point-of-delivery (Kolwezi as opposed to Lubumbashi). It also includes an updated ore reserve estimate for Kalongwe of 7,99 Mt at 2,94 % Cu and 0,34 % Co for 234 868 tonnes of contained copper and 27 102 tonnes of contained cobalt. This represents an 11 % increase in contained copper and an 8 % increase in contained

Katoro Gold assesses viability of Imweru Katoro Gold, whose shares are quoted on London’s AIM, says it is currently assessing the economic feasibility of its Imweru gold project inTanzania, based on the preliminary pre-feasibility results and the new mining legislation and regulations in Tanzania.

An integral part of the company’s assess- ment will include consideration of a further exploration work programme to enhance and expand the current resource by explor- ing some of the previously identified exploration targets that form part of the Imweru/Lubando gold project. To date, only about 50 % of the Imweru and Lubando project areas has been explored. Katoro says it will also engage with the Tanzanian Ministry of Minerals to seek to agree the mining licence application for Imweru to ensure its economic feasibility

14  MODERN MINING  April 2018