Introduction
The Kinsenda copper mine is located in the DRC close to the
Zambian border town of Kasumbalesa, and is the focus of a
bankable feasibility study (“BFS”) to bring the mine back into
production.
Activities over the last 18 months
During the period June 2009 to December 2010, Metorex
continued to advance the BFS along with appointed consultants.
An infill drilling programme was completed in August 2010, and
an updated geological resource model for the western portion
of the mine has been completed by Snowden Mining Industry
Consultants (“Snowden”). Snowden has recommended a further
drilling programme beyond the western section of the mine at
75 metre drillhole spacings to confirm historical drilling and this
recommendation is under consideration. A SAMREC-compliant
resource of 23 Mt at 4,1 percent copper has been declared as
at 31 December 2010.
Snowden has also delivered mining infrastructure and mining
method designs for an envisaged ore mining rate of
40 000 tons per month from 270 metres below surface down
to an ultimate depth of 600 metres. A backfill study is
underway to cater for the drift-and-fill mining method.
Metallurgical testwork is ongoing and MDM Engineering is
designing a metallurgical plant which comprises conventional
crushing and milling followed by flotation of sulphide and oxide
copper minerals to produce both sulphide and oxide copper
concentrates. Metallurgical test work thus far indicates an
overall recovery of copper from run-of-mine ore to concentrate
of 90 percent yielding approximately 22 000 tonnes of copper
contained per annum.
Metago and rePlan have substantially completed the
environmental and social impact assessment (“ESIA”) studies
respectively and wet season studies are underway. Golder Associates was appointed to complete the tailings storage
facility site selection and design, and this work is substantially completed. Groundwater remains a key risk for the project and
mine inflows have been estimated to be between 28 000 m3/d
to 45 000 m3/d when the mine is fully developed. The actual
inflow will depend on how the aquifers respond to pumping
from the deeper levels, and water handling and pumping
infrastructure requirements are in planning. Power reticulation
studies have also largely been ompleted.
Outlook
The schedule for the BFS shows completion by mid-year 2011
at a total expenditure of US$6,1 million. The feasibility report
for the US$130 to US$150 million project is almost complete and has been presented to the DRC authorities whereafter it
will be presented to the Metorex Board. Funding of the project
will be by way of Metorex cash flows supplemented by
US$66 million through debt facilities currently being negotiated
with lenders. The details and terms of these arrangements will
be announced once finalised with the lenders. |
