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 27 000 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 has secured a $4-million working capital extension from Fujax Minerals and Energy, which Cradle Arc has hailed as a “vote of confidence” in the Mowana project.

Leboam Holdings, a 60%-owned subsidiary of Cradle Arc, has negotiated a 24-month repayment term, with a six-month payment holiday, scheduled to start from April 2019.

The facility will help to ensure that there is sufficient headroom and contingency as management seeks to build upon the stabilised operations and restart the production ramp-up at Mowana.

The Mowana mine continues to suffer from equipment breakdowns. The mine produced 140 t of contained copper in October, compared with management’s original forecast of 392 t.

Production at the mine has been impacted on by intermittent equipment breakdowns.

Cradle Arc has said that funds received from the drawdown of the $2-million loan facility in October have been used to purchase certain essential spare parts and the repair of key items of equipment to improve the reliability and availability of the processing plant going forward.

The crushing and filter sections of the processing plant have been repaired and stable production is expected for the remainder of the quarter.

Mill availability is also improving, and the final concentrate grade achieved throughout the fourth quarter to date has been above forecast levels. A planned mill reline, which is scheduled for the last week of November, will improve mill throughput to its nameplate capacity of 155 t/h.

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.