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

Client
Tiger Resources.

Project Description
The Kipoi project covers 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 copper mineralisation at Kipoi Central is being exploited during the Stage 1 development. During the three-year operation of Stage 1, an estimated 900 000 t/y of 7% copper is planned to be processed through the heavy-media separation (HMS) plant, with a recovery rate of 55% to produce 132 000 t of copper in concentrate over its 42-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 (SX-EW) plant, thereby minimising costs for the Stage 2 development. It is envisaged that ore from the Judeira deposit, and other deposits within the Kipoi project area and 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 SX-EW 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 After a short period, during which the HMS and SX-EW facilities will operate simultaneously, the HMS will be superseded in the second quarter of 2014 by the SX-EW plant, which will produce London Metal Exchange grade-A copper cathode directly at the mine site.

The SX-EW plant is expected to produce 25 000 t in its first full year of operation and 50 000 t in subsequent years.

Value
Stage 1 cost an estimated $30-million.

Stage 2 will cost $160.9-million.

Duration
The Kipoi project recently achieved commercial copper cathode production at its Stage 2 SX-EW.

Latest Developments
Tiger has reported a significant surge in production after its SX-EW plant at its Kipoi project reached nameplate capacity.

First copper cathode was produced in May this year, and the SX-EW plant reached its nameplate production rate of 25 000 t/y by September.

During the three months to September, copper cathode production reached 5 620 t, compared with the 1 499 t produced in the previous quarter.

The miner is completing an updated study to increase the SX-EW capacity to an estimated 50 000 t/y of copper cathode, and has told shareholders that it will only pursue this option once long-term financing is in place.

However, it points out that the expansion to 500 000 t/y is one of the lowest capital-intensive expansion opportunities in the current copper industry, and will essentially replicate the current installed SX-EW infrastructure at Kipoi, carrying an execution risk significantly lower than that of competing projects in the copper sector.

About 3 801 t of copper-in-concentrate was also produced during the quarter from the HMS plant.

With the successful ramp-up of the SX-EW plant, Tiger has decided to close its HMS plant and, as a result, full-year copper-in-concentrate production is expected to reach only 16 222 t.

Meanwhile, Tiger has completed the acquisition of the remaining 40% shareholding in the SEK, the owner of the Kipoi copper project.

SEK is currently a wholly owned subsidiary of Tiger, with the deal having followed the drawdown of $50-million against Tiger’s finance facility with the Taurus Mining Finance Fund.

A 2.5% gross turnover royalty payable by SEK will be retained by the vendor, Gécamines, while Tiger also intends to cede a 5% interest in SEK to the DRC government to bring the mining title into alignment with local mining law and regulations.

Key Contracts and Suppliers
MCK Mining (mining contract – Stage 1); DRA Mineral Projects (lump-sum turnkey contract for the design, installation and 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 (SX-EW).

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 fax +27 11 679 3272.
Senet, tel +27 11 409 1300 or fax +27 11 409 1301.