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.

Tiger is taking a phased development approach at the project.

The high-grade zone of mineralisation at Kipoi Central will be exploited during the Stage 1 development. The Stage 1 heavy-media separation (HMS) plant is in production and is expected to process 2.7-million tonnes of ore grading about 7% copper to produce a total of 113 000 t of copper in concentrate over its 39-month life.

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 Judeira and other deposits within the Kipoi project area and within the nearby 100%-owned Lupoto project, will also be processed during the Stage 2 operations, providing additional returns and increasing the mineral resources available as feedstock to the Stage 2 SXEW plant. Increased resources will potentially increase the nine-year mine life, demonstrated in the feasibility study and/or yearly plant throughput.

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 After a short overlap period, during which the HMS and SXEW facilities will operate simultaneously, the HMS will be superseded in the second quarter of 2014 by the SXEW plant, which will produce LME grade-A copper cathode directly at the mine site.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
The Stage 2 SXEW plant is targeted to come on stream in 2014.

Latest Developments
The Stage 1 HMS plant is consistently producing copper in concentrate above guidance, and construction of the Stage 2 SXEW plant is on schedule. When available the results from a 14-hole programme drilling at Kipoi Central assays will be used to update the resource estimate planned for the December quarter 2013.

Oxide ore grades at the Kipoi Central pit are exceeding 14%, resulting in higher-than-usual concentrate grades and recoveries at the HMS plant.

The HMS has been working at near 200% nameplate capacity, delivering high-grade concentrate for sales within the DRC. The stockpile of feed for export now contains an estimated 270 000 t or three months of feed.

In the next six months, mining will continue to accelerate as the stripping ratio goes below 1 unit of waste to 1 unit of ore. The operating costs are currently consistently below $0.50/lb. Based on grade control results, the operating team at Kipoi is predicting about 40 000 t of copper in concentrate production for the next ten months.

The heap-leach pads for the SXEW plant are ready for finishing before the placement of the plastic liners. The solvent extraction module is progressing well, with the concrete foundations in place and tank walls being formed. The electrowinning building is ahead of schedule and is expected to be completed before the scheduled first feed in the June quarter of 2014. Construction of the SXEW plant continues on schedule and within budget.

The feasibility study for the SXEW identified 190 000 t of inferred resources that will be included within the economic limits of mining once drilled to indicated resource status. The drilling of 14 holes has been completed at Kipoi Central, with assays pending. The aim of the drilling programme is to convert inferred resources to indicated status in the resource update scheduled to be released in the fourth quarter of 2013.

At Judeira, a deposit within Kipoi, trenching continues to improve the company’s understanding of the complex faulting, breaking the 2 200-m-long orebody into 50 m blocks. Tiger expects to announce a maiden resource estimate at Judeira before the end of the year.

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.