African Copper PLC-Mowana Mine Project Update
Published November 26th, 2007
African Copper Plc (TSX:ACU)(AIM:ACU)(BOTSWANA:AFRICAN COPPER) -
Highlights:
- Independent consultant, Read, Swatman & Voigt (Pty) Ltd. (”RSV”) has estimated the total pre-production capital costs for the Mowana Mine and finalized the practical mine design for the open-pit
- Proven and Probable Reserves have been reported by RSV and comprise approximately 26% of the total indicated and measured resources on a contained copper basis
- Pre-strip mining and construction activities are on schedule for concentrate production early in the second quarter of 2008
- RSV has confirmed the successful integration of a Dense Media Separation (”DMS”) plant into the process design, which is expected to reduce the strip ratio and improve the recoveries of the open-pit resource
- Drill-blast activities have commenced and ore is now exposed on a number of faces within the open-pit
- An underground pre-feasibility study relating to the remaining measured and indicated resource is expected by year end 2007
- African Copper is finalizing an off-take agreement with a metal broker. The Company expects to have an off-take agreement in place by the end of 2007
- RSV is finalizing a NI 43-101 Technical Report on the Mowana Mine
African Copper Plc (”African Copper” or the “Company”) is pleased to present an update on the progress at the Mowana Mine in Botswana. Technical work completed in the last six months has been aimed at optimizing the extraction of the copper resource from the initial open-pit and maximizing the recoveries of copper through the processing plant. In addition, new pit designs were completed based on a new resource estimate that was released in June 2007 (see the Company’s press release dated 14 June 2007 and the technical report entitled “Dukwe Copper Project -2007 Geological Modelling and Resource Re-estimation” and dated 14 June 2007 by Caracle Creek International Consulting (”CCIC”), both of which are available at www.sedar.com). RSV is finalizing a National Instrument 43-101 Technical Report (the “RSV Report”) that includes the results of these optimizations and pit designs.
“RSV has estimated the capital cost for a DMS plant. This plant provides the opportunity to increase the efficiency of the metal extraction process,” said Joe Hamilton, CEO of African Copper. “The Company’s strategy is to commence mining at Mowana by extracting the open-pit reserve to provide initial production and cash flow. The majority of the Mowana resources are not within open-pit depths. It is the Company’s intention that these resources be extracted utilizing underground access and we have commissioned a pre-feasibility study to investigate the viability of the underground mine. The results of this study should be available by the end of 2007, and if viable, would extend the life of Mowana well beyond 2014.”
Pre-strip mining and construction activities at Mowana are on schedule and on track for concentrate production early in the second quarter of 2008.
Mowana Resources and Reserves:
In the third quarter of 2007, Minero Consulting (Pty) Ltd. (”Minero”) of Johannesburg was commissioned to examine the amenability of the open-pit material to treatment through a DMS plant prior to grinding and flotation. Results from this test work have shown that the incorporation of a DMS plant into the crushing circuit will allow the cut-off mining grade in the open-pit to be reduced to 0.1% copper while still maintaining a mill feed that meets the design criteria for the concentrator. With this improved flow-sheet and recovery profile, Turgis Consulting (Pty) Ltd (”Turgis”) of Johannesburg used the June 2007 CCIC resource block model in conjunction with the pit slopes and recoveries estimated in 2006 to engineer and optimize a new open-pit based on a 0.1% copper cut-off.
RSV has reviewed the mineral resources at the Mowana Mine (in accordance with SAMREC, JORC and NI 43-101 Standards) using a 0.1% copper cut-off (CCIC used different cut-offs in its June 2007 estimates):
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