PERTH (miningweekly.com) – A feasibility study (FS) into the Stage 1 development of the Kalongwe oxide copper/cobalt project, in the Democratic Republic of Congo, has estimated that the project would require a capital investment of $53.12-million.
The Stage 1 operation will comprise an openpit mine and a one-million-tonne-a-year dense media separation processing plant, which will deliver 19 360 t/y of copper and 1 507 t/y of cobalt, ASX-listed Nzuri Copper revealed on Monday.
The FS estimated a life-of-mine of about seven years, with C1 cash costs estimated at $1.35/lb. The project’s pre-tax net present value has been estimated at $116-million and its internal rate of return at 71%.
“The results of this high quality FS show that Kalongwe is an outstanding project, characterised by high copper and cobalt grades, low capital and operating costs and strong financial returns,” said Nzuri CEO and executive director Mark Arnesen.
“The relative simplicity of the Stage 1 project and the anticipated 12-month timeline to production, once funding and board approvals are secured, make this a very attractive foundation project for Nzuri.”
The FS included a maiden ore reserve estimate of 6.98-million tonnes, at 3.03% copper and 0.36% cobalt, for 211 494 t of contained copper and 25 128 t of contained cobalt.
Arnesen added that the FS also highlighted the significant upside that could be unlocked through future project expansions, including the potential for leaching of cobalt-only ore and mineralised rejects, potential offtake to some of the closer new solvent extraction-electro winning plants under construction in the region, and the significant exploration upside both in the immediate Kalongwe licence and regionally.
“Nzuri is already actively pursuing these and other opportunities, which offer significant potential to increase mine life and production from Kalongwe above and beyond the Stage 1 project. With the Stage 1 FS now complete, Nzuri already has a wide range of options available to secure a funding package that will minimise dilution to existing shareholders and maximise returns from the project.”
Arnesen said that these include funding provided by potential offtake and strategic partners, as well as conventional debt funding.
“Our immediate focus over the next few months will be to close-out one or more of these opportunities while working hard to unlock the huge upside on offer, both at Kalongwe and within our Fold Trust Belt joint venture.”