Name of the Project
Mowana copper mine dense-media separation (DMS) plant.

Location
Botswana.

Client
Cradle Arc.

Project Description
The project has a maiden openpit ore reserve estimate of 31.8-million tonnes grading 1.17% copper for 370 800 t contained copper metal, based on the DMS mine plan. Measured and indicated resources are estimated at 55-million tonnes grading 1.17% copper for 640 000 t of contained copper. Inferred mineral resource material is estimated at 3.7-million tonnes grading 0.93% copper for 34 500 t of contained copper, which is being treated as waste in the life-of-mine schedule and represents further potential upside if resource confidence is ultimately improved into the measured and indicated categories.

The DMS upgrades and associated ancillary upgrades are expected to increase nameplate copper in concentrate production from about 12 000 t/y of copper to about 21 000 t/y of copper, peaking at 27000 t/y of copper in Year 3.

The planned DMS upgrades are based on the acquisition, installation and commissioning of two 150 t/h, DMS modular units and associated ancillary circuits and equipment. 

Upgrades to the tailings underflow pumping will be required, as well as remedial works within the tailings storage facility, to ensure efficient and effective operations. 

Certain plant units will also need to be upgraded so that they are aligned with the requirements of the DMS plant and can cater for the additional tonnages required on the dry section, as well as the holding capacity required for concentrate thickening and tailings disposal. Controls will also be enhanced for maximum efficiencies throughout the plant.

Mowana has a mine life of 14 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Current ore reserves at Mowana give the project an after-tax net present value, at an 8% discount rate, of $272.8-million.

Value
The total costs of the DMS plant and associated upgrades are estimated at $20-million.

Duration
Construction work is expected to start later this year, with a construction timetable of about 11 months.

Latest Developments
Cradle Arc’s 60%-owned subsidiary, Leboam, the holding company of the Mowana copper mine, has conditionally obtained a loan facility of $2-million from Cradle Arc's largest shareholder, PenMin Botswana.

Proceeds from the facility will be used to deal with the intermittent equipment breakdowns and continued interruptions at Mowana's processing plant that have adversely affected the company’s production performance.

The facility is conditional on the conclusion of a debt sale agreement with Fujax, which is expected to occur shortly.

Specific areas to be addressed include pumping, piping, conveying and process control remediation, as well as the installation of standby equipment in parallel with areas where a breakdown has an immediate impact on production, and enhanced spare part inventory.

The improvement and rehabilitation work on the processing plant will start immediately and is not expected to materially interrupt existing operations.

Cradle Arc CEO Kevin van Wouw has noted that the plant improvements that will be made over the coming weeks should result in the stabilisation of operations, improved copper recoveries and, ultimately, increased production.

During the third quarter, ended September 30, Mowana produced 712 t of contained copper – a 29.5% quarter-on-quarter improvement.

Key Contracts and Suppliers
Wardell Armstrong International (Mowana resource remodelling).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Cradle Arc, tel +44 20 7499 5881.