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PERTH (miningweekly.com) – A scoping study into the Kalongwe copper/cobalt project, in the Democratic Republic of Congo, has proven highly encouraging, owner Regal Resources said on Tuesday.
On a base case of one-million tonnes a year of heavy mineral separation (HMS) throughput, the Kalongwe project was expected to deliver some 21 249 t/y of copper, and would require a capital investment of A$38.9-million.
The project was estimated to have a net present value of A$77.9-million and an internal rate of return of 81%, with a pay-back period of some 13 months.
Operating costs have been estimated at some A$1.01/lb, or A$1.38/lb with transport costs included.
“The completion of a scoping study just some 15 months after the start of the first drilling programme at Kalongwe represents a significant achievement for both Regal and the Kalongwe mining joint venture (JV),” said Regal MD David Young.
He noted that the outcome of the study enhanced the project’s economic and development potential, and confirmed Regal’s exploration strategy of identifying and securing an interest in high-grade copper/cobalt oxide deposits that had the potential to be developed as standalone, low capital cost, openpit mining operations, generating strong cash flows.
“While we view the HMS processing option as an efficient and cost effective way to fast-track the development of the mining operation, the study has highlighted multiple opportunities to improve the project economics and to significantly extend the mine life,” Young added.
Studies were now under way to evaluate the transitioning from a starter Stage 1 HMS project to a longer-life Stage 2 solvent extraction and electrowinning development.
The JV was also looking to further improve the project economics by reducing transport costs, generating higher grade copper and cobalt concentrates, and identifying alternative ways of marketing the product.
“At a corporate level, Regal is making good progress in moving towards finalising an agreement to acquire Traxys Europ’s 30% interest in Kalongwe Mining, that would take the company’s direct holding in the asset to 60%,” Young said.
He noted that the company was also hoping to maximise the value from any potential mine development at Kalongwe by entering into JV agreements over the areas surrounding the permit area, which were considered to be highly prospective for similar types of deposits.