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Intrepid unveils new thinking at Kitumba

8th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The Kitumba copper project, in Zambia, has benefited from another update to its prefeasibility study, with owner Intrepid Mines reporting a 35% decline in estimated capital costs.

A 2013 feasibility study by previous owner Blackthorn Resources, estimated that the underground project would cost $358-million to develop, delivering three-million tonnes a year of run-of-mine production for some 39 000 t/y of copper.

The project had initially been estimated to have a mine life of 11 years, delivering 572 000 t of contained copper over the life of the project.

A 2014 update increased the projected capital costs to $680-million, while metal production had been expected to reach 70 000 t/y.

Intrepid reported on Thursday that extensive redesign of the development plan, based on reduced production rates from a high-grade resource, had now confirmed the project’s economic potential based on a long-term copper price of $3.11/lb.

“The outcome of the options study for Kitumba is an important development, confirming that the project has economic potential,” said Intrepid CEO Scott Lowe.

“The reduction in resource tonnage announced as a result of the inclusion of results from the infill drilling programme has required a substantial rethink of the development plan for Kitumba. This announcement demonstrates that, despite the smaller resource and weaker commodity price outlook, Kitumba remains economic at a long-term copper price of $3.11/lb.”

A number of mining and processing plant related scenarios were considered during the option study, resulting in seven case options being evaluated, including a variable mine production profile.

Under the preferred project development option, costs have now been estimated at $433-million, including a $152-million contingency for an engineering, procurement and construction management contract.

Copper cathode production was expected to reach up to 40 000 t/y, with an average of 37 000 t/y produced over the 13-year project mine life. The underground operation would run at a production rate of 1.5-million to 2-million tonnes a year.

Lowe said that, given the current state of the copper market, with spot prices below the long-term copper price forecast level, Intrepid intended to continue drilling high-priority targets in the area surrounding Kitumba, in an effort to find additional resources that could further enhance the project economics.

“The decision whether to take the Kitumba project on to full feasibility will be made early in 2016 following the completion of exploration drilling and metallurgical testing. Importantly, the Kitumba project is subject to a mining licence granted in November 2014 and the present plans are consistent with the expectations of the Zambian government,” he added.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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