Name and Location
Kalongwe copper/cobalt project, Katanga province, Democratic Republic of Congo.

Client
Regal Resources.

Project Description
A scoping study on the Kalongwe project has indicated the potential for an economically viable, robust and standalone project.

The mining study assumes development of the Kalongwe using conventional truck and excavator openpit mining methods, including drill and blast, and load and haul.

It is expected that mining will be undertaken by a contract miner using a fleet of 40 t to 50 t articulated dump trucks, loaded by 90 t to 110 t excavators. A mixed ancillary fleet will also be used to support load-and-haul operations.

Total material movement over the life-of-mine is estimated at 13-million tonnes, including 5.2-million tonnes of ore for a 1.52 life-of-mine strip ratio. More than 97% of the material is classified as oxide. Strongly oxidised material is expected to be free dig, with paddock-scale drill and blast required for the remainder of the material.

The base case process facility assumes a one-million-tonne-a-year-capacity heavy-media separation (HMS) plant with an average run-of-mine feed rate of 150 t/h and a maximum of 180 t/h, with no provision for future expansion.

During Stage 1, about 2.47-million tonnes of HMS rejects will be produced, with an estimated average grade of 1.35% copper.

This material represents a significant opportunity to improve the value of the project by recovering copper through a heap-leach process.

There are no existing services currently available on site to support the proposed development of the Stage 1 HMS processing option at Kalongwe. As a result, the development of the project will require investment in several areas – an on-site power plant, road upgrades, a camp or accommodation, and a water supply.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV), at a 10% discount rate, of $77.9-million and an internal rate of return of 81%, with payback in 13 months.

Value
Capital cost to initial production is estimated at $38.9-million.

Duration
Not stated.

Latest Developments
Regal considers the outcomes of the scoping study to be highly encouraging, as it indicates that the project, employing conventional mining and processing methods common for these types of copper deposits in the Katangan Copperbelt, is technically sound and economically viable at current copper prices. The study supports the development of an HMS Stage 1 starter project that has potential to generate strong positive cash flows that could support the future growth and development of Regal.

A range of opportunities and alternatives to further optimise the Kalongwe project and improve the economics have been identified and these will be assessed in future work programmes scheduled for this year.

Planned work will include several technical studies to optimise the pit design and mining schedule and refine the processing flowsheet. A review will be undertaken to identify savings in operating costs.

Some of the options to be considered will include leasing or buying trucks to transport concentrate.

Earlier metallurgical testwork results have indicated that a high proportion of copper contained within the gravity concentrates produced from samples of oxide ore is acid-leachable. Further testwork is being considered to assess the heap-leach potential of the HMS rejects.

A specific metallurgical testwork programme will also be conducted to determine a cost-effective process design to produce a high-grade cobalt concentrate, the sale of which will be expected to result in a further significant improvement in the NPV of the project.

A hydrogeological investigation will have to be carried out to assess the risk of groundwater inflow rates accompanying the establishment of a mining operation.

Meanwhile, studies are under way to evaluate the transition from a starter Stage 1 project to a longer-life Stage 2 solvent extraction and electrowinning development

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Regal Resources, tel +61 8 6355 6888.