Modern Mining Marchh 2017

MINING News

Further step forward for planned Khoemacau mine

US-based Cupric Canyon Capital (Cupric) has announced that its wholly owned subsidiary, Khoemacau Copper Mining (KCM), has entered into a US$50 million, term loan facility agreement with Red Kite Mine Finance to provide funding for KCM’s Khoemacau copper-silver project in Botswana. KCM will construct an underground mine at its high-grade Zone 5 deposit. The Zone 5 resource contains 100 Mt of ore grading 2 % copper and 20 g/t silver. The Zone 5 undergroundmine will be accessed with three declines and will utilise a highly- mechanised, low-cost, sub-level open stoping mining method. The mine will initially feed the nearby Boseto copper concentrator, which was acquired as part of Cupric’s purchase of Discovery Copper Botswana (DCB), announced in July 2015. The Boseto con- centrator will be upgraded from its current 3,0 Mt/a nameplate capacity to 3,6 Mt/a. Metal production from the Starter

power when KCM starts production in 2019. Dennis Bartlett, Cupric’s Chief Executive Officer, said: “Proceeds from the term loan will enable us to continue development work at Khoemacau as we prepare to begin full scale construction of the Starter Project in the second half of 2017. All design, engineering and permitting work is progressing well and on schedule, bol- stering our confidence that production will commence in 2019. “In addition, the most recent drilling results including the discovery of Zone 5 North andmineral resource updates for the deposits acquired last year are very excit- ing. We continue to believe that Zone 5, combined with the expansion potential offered by the other deposits within our licence areas, represents perhaps the most attractive new copper project in the world today, with the potential to ultimately achieve copper production in excess of 120 000 tonnes per annum.” 

Project will average 50 000 tonnes of cop- per and 1,4 million ounces of silver per annum. The Zone 5 mine is expected to have a minimum life of 25 years and aver- age C1 cash costs of around US$1,00 per pound. The total cost to develop KCM’s Starter Project is approximately US$350 million, with underground mine development being the largest single cost component. Efforts are underway to optimise both ore grade and capital expenditures. Within the next few months, the Botswana Environmental Ministry is expected to approve modifications to KCM’s environ- mental permits to facilitate processing Zone 5 ore at the upgraded Boseto plant. The Botswana Power Company is also progressing development of the high-tension power line that will provide commercial power to the north-west region of Botswana. This power-line proj- ect includes a spur line to Boseto and Zone 5, providing low-cost commercial

The Boseto concentrator is to be upgraded from its current 3,0 Mt/a nameplate capacity to 3,6 Mt/a (photo: Arthur Tassell).

Execution of mining right a milestone for Tjate Jubilee, the AIM-quoted and AltX-listed Mine-to-Metals specialist, has announced that Tjate Platinum Corporation Proprietary Limited (Tjate), has executed a mining right with the Department of Mineral Resources in respect of the project com- prising the Farms Dsjate 249 KT, Fernkloof 539KS and Quartzhill 542 KS, situated in the Magisterial District of Sekhukhune in Limpopo Province. Tjate (in which Jubilee is the biggest

milestone in the development of the project and is in line with the company’s Mine-to-Metals strategy. The mining right confirms the significant potential value the project offers to Tjate and contributes to the company’s resource portfolio. The timing of the mining right coincides with the continued global recovery supporting the anticipated improvement in the plati- num markets. The Tjate platinum project is one of the world’s largest undeveloped blocks of platinum and we look forward to unlocking its full potential.” 

shareholder) now has the right to mine and process all platinum group metals, chrome, nickel, copper, gold and certain associated metals and minerals from the project min- ing area, subject to its complying with the terms of the mining right and alignment to the requirements of the Mining Charter. Leon Coetzer, Chief Executive Officer of Jubilee, said: “We are pleased that the Tjate platinum project has received the mining right. The mining right is a major

8  MODERN MINING  March 2017