Name and Location
Tshipi Borwa manganese project, Northern Cape, South Africa.

Project Description

The Tshipi project, located about 20 km south-west of the mining town of Hotazel, in the Kalahari manganese field, is an advanced exploration project with a defined mineral resource estimate of 163-million tons, with a grading of 37.9% manganese. Of the total resource, 62-million tons is classified as an indicated resource, with the remainder classified as an inferred resource.

The project proposes an openpit mining operation using a standard opencast mining approach. Production of between 2.2-million tons a year and 2.6-million tons a year of run-of-mine ore is planned. However, the resources are expected to last for a significant period thereafter.

It is currently proposed that the mining of the openpit will be outsourced to a suitable mining contractor, while all other sections of the operation will be run on an owner/operator basis.

Although the Hotazel area has established road, power and rail infrastructure and water supplies, there is currently no other infrastructure in place on the project mine site. Owing to insufficient transmission and distribution infrastructure, there is currently no additional capacity available to supply power to the mine. The project’s power requirements, which are not significant, will be met by diesel- driven generator units until power from the national grid can be accessed.

Tshipi will also construct its own dedicated rail loading facility, which will join the existing transport rail line a few kilometres from the project site. Discussions have taken place with State-owned transport utility Transnet with respect to obtaining a long-term allocation of rail and port capacity for the export of manganese from the project.

Value

The capital expenditure required for the project is estimated at $200-million.

Duration

Development is expected to start during this year, with first production targeted for 2013. However, alternatives to accelerate the schedule are under investigation.

The mine is expected to have a 24-year life.

Client

Jupiter Mines acquired a 49,9% interest in Tshipi e´ Ntle Manganese Mining in August 2010, the remaining 50,1% being held by Ntsimbintle Mining.

Key Contracts and Suppliers

Turgis Consulting (feasibility study).

Latest Developments

Jupiter Mining has successfully raised A$150-million through a share placement to develop the Tshipi project and to fast-track both the Mount Ida manganese and Mount Mason direct shipping ore projects, in Western Australia.

Jupiter’s portion of the capital required to construct the mine, plant and infrastructure at Tshipi is expected to be $100-million of the $200-million total required.

On Budget and on Time?

Not stated.