Name of the Project
Khoemacau copper/silver project.

Location
North west Botswana.

Client
Khoemacau Copper Mining (KCM), a subsidiary of Cupric Canyon Capital.

Project Description
KCM plans to build an underground mine at Khoemacau’s high-grade Zone 5 deposit.

The Zone 5 resource contains 100-million tonnes of ore at 2% copper and 20 g/t silver and remains open at depth. A further 54-million tonnes at 2.2% copper and 41g/t silver was recently delineated at the nearby Zone 5 North and Zeta north-east (NE) deposits.

The Zone 5 mine will initially feed the nearby Boseto copper concentrator, which was acquired as part of Cupric’s purchase of Discovery Copper Botswana in July 2015.

The Zone 5 underground mine will be accessed through three declines and will use a highly mechanised, low-cost sublevel open stoping mining method.

The Boseto concentrator will be upgraded from its current three-million-tonne-a-year nameplate capacity to 3.6-million tonnes a year. Metal production from the

Starter project will average 50 000 t/y of copper and 1.4-million ounces of silver a year.

The Zone 5 mine is expected to have a minimum life of 25 years.

Future expansions are expected to increase production at Khoemacau to more than100 000 t/y of copper.

A prefeasibility study with positive results has been completed for a future concentrator to be built at Zone 5,which will process six-million tonnes a year of ore and produce an average of 80 000 t/y of copper.

With exploration success at the nearby Zeta, Zeta NE and Zone 5 north deposits, the next phase of feasibility studies will determine the long-term mining and processing strategy for the whole site. The future concentrator could be sized for Zone 5 and the nearby deposits, or dedicated to Zone 5, which would result in the other deposits being treated at the existing Boseto concentrator. This feasibility work for the new concentrator and in-fill drilling of the Zeta, Zeta NE and Zone 5 north deposits, along with scoping mining studies is expected to start in 2018.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project’s capital cost is estimated at $350-million, with the underground mine development being the biggest single cost component.

Duration
The project is expected to start commercial production in 2020.

Latest Developments
KCM has entered into a $50-million term loan facility agreement with Red Kite Mine Finance to provide funding for KCM’s preconstruction activities..

Proceeds from the loan will be used to fund project development costs and front-end engineering before the start of full-scale construction in 2018.

Curpic CEO Dennis Bartlett believes that Zone 5, combined with the expansion potential offered by the other deposits within the company’s 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 t/m.”

Key Contracts and Suppliers
Fluor Group (engineering, procurement and construction management contract).

On Budget and on Time?
The owners project team is being mobilised while the front-end engineering design phase is under way. Construction expected to start in 2018.

Contact Details for Project Information
Cupric Canyon Capital, tel +1 480 607 6771 or email ccc@cupriccanyon.com.