Name and Location
Kipoi copper project, Democratic Republic of Congo.

Client
Tiger Resources (60%) and La Générale des Carrière et des Mines (40%).

Project Description
The Kipoi project covers an area of 55 km² and is located 75 km north-north-west of the city of Lubumbashi, in Katanga. The project contains a 12 km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.

Joint Ore Reserves Committee-compliant resources have been reported at three of the deposits. The principal deposit is Kipoi Central, which contains a zone of high-grade copper mineralisation within a much larger, lower grade global resource.

A staged development at the project is proposed.

The high-grade zone of mineralisation at Kipoi Central will be exploited during the Stage 1 development. During the three-year operation of Stage 1, the processing of 900 000 t/y of 7% copper is envisioned, which will be processed through a heavy-media separation (HMS) plant, with a recovery rate of 60%, to produce the equivalent of about 36 000 t/y of copper.

The existing infrastructure at Kipoi for the Stage 1 HMS facility will be a springboard for the development of the Stage 2 solvent extraction electrowinning (SXEW) plant, thereby minimising costs for the Stage 2 development. It is envisaged that ore from Kipoi Central, Kipoi North and Kileba, as well as the other deposits within the Kipoi project and the nearby Lupoto project, will be processed during the Stage 2 operations.

The HMS plant is producing more than 36 000 t/y of copper in a 25% concentrate. After a short overlap period, during which the HMS and SXEW facilities will operate simultaneously, the HMS will be superseded in the second quarter of 2014 by the SXEW plant, which will produce LME grade-A copper cathode directly at the mine site.

Value
Stage 1 cost an estimated $30-million.

Stage 2 will cost $160.9-million.

Duration
Stage 2 is targeted to come on stream within three years of the start of the HMS operation.

Latest Developments
About 60% of the bulk earthworks at the Kipoi Stage 2 SXEW plant development project have been completed.

Construction on the SXEW started on January 16 and is on schedule for first production of copper cathode in mid-2014.

Site works and civils are progressing, with a 70-man construction camp erected and permanent site accommodation units nearing completion.

Civil works for the laydown area have been completed and are awaiting fencing. The pad area for a 5 MVA electrical substation is also complete.

Further, lump-sum turnkey contracts have been finalised with principal contractor Senet for the supply of the SXEW plant, an agglomerator and a stacking conveyer system.

Additional fixed-price contracts have been concluded for the accommodation facilities, the power supply, reticulation and earthworks, as well as the supply and installation of the heap leach pads.

Meanwhile, the necessary documentation and approvals process for an $80-million Export Credit Insurance Corporation (ECIC) standby term loan facility are progressing well.

Site visits have been undertaken by the mandated arranging banks, Nedbank Capital and Rand Merchant Bank, and by the nominated independent technical expert.

Execution of the $30-million facility, which has been made available by Nedbank Capital and Rand Merchant Bank in advance of the ECIC standby term loan facility, is advancing, with legal negotiations on the facility agreements currently in progress.

The facility remains subject to the lender’s credit committee approvals, with first drawdown immediately available after the satisfaction of customary conditions precedent.
Meanwhile, the Stage 1 HMS plant at Kipoi continues to generate the cash flow required to meet the SXEW capital expenditure, with March 2013 delivering a new monthly production record of 4 007 t of copper – 37% above nameplate capacity.

Production for the March 2013 quarter of 9 488 t of copper in concentrate exceeded guidance by 3%.

Key Contracts and Suppliers
MCK Mining (mining contract – Stage 1), DRA Mineral Projects (lump-sum turnkey contract  for the design, installation commissioning of the HMS – Stage 1), Group Five (subcontractor – construction works for Stage 1), Arccon Mining Services (scoping study), Cube Consulting (pit optimisations), Coffey Mining (tailings dam – design and costing) and Senet (SXEW).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Tiger Resources, tel +61 8 9240 1933, fax +61 8 9240 2406 or email tiger@tigerez.com.
DRA Mineral Projects, tel +27 11 202 8600, fax +27 11 202 8807 or email dra@drasa.co.za.
Group Five, tel +27 11 806 0111, fax +27 11 803 5520 or email info@groupfive.co.za.
ARCCON Mining Services, tel +61 8 9340 6100, fax +61 8 9340 6150 or email mining@arccon.com.au.
Cube Consulting (South Africa), tel +27 12 665 2154, fax +27 27 665 1176 or email highveld@cubeconsulting.com.
Coffey Mining (South Africa), tel +27 11 679 3331 or +27 11 679 3272.
Senet, tel +2711 409 1300 or  fax +2711 409 1301.