Name of the Project
Kalongwe copper/cobalt project.

Location
Katanga province, Democratic Republic of Congo.

Client
Nzuri Copper (formerly Regal Resources).

Project Description
A scoping study on the Kalongwe project has indicated the potential for an economically viable, robust and standalone project.

The mining study assumes development of the Kalongwe using conventional truck and excavator openpit mining methods, including drill and blast, and load and haul.

It is expected that mining will be undertaken by a contract miner using a fleet of 40 t to 50 t articulated dump trucks, loaded by 90 t to 110 t excavators. A mixed ancillary fleet will also be used to support load-and-haul operations.

Total material movement over the life-of-mine is estimated at 13-million tonnes, including 5.2-million tonnes of ore for a 1.52 life-of-mine strip ratio. More than 97% of the material is classified as oxide. Strongly oxidised material is expected to be free dig, with paddock-scale drill and blast required for the remainder of the material.

The base case process facility assumes a one-million-tonne-a-year-capacity heavy-media separation (HMS) plant with an average run-of-mine feed rate of 150 t/h and a maximum of 180 t/h, with no provision for future expansion.

During Stage 1, about 2.47-million tonnes of HMS rejects will be produced, with an estimated average grade of 1.35% copper.

This material represents a significant opportunity to improve the value of the project by recovering copper through a heap-leach process.

There are no existing services currently available on site to support the proposed development of the Stage 1 HMS processing option at Kalongwe. As a result, the development of the project will require investment in several areas – an on-site power plant, road upgrades, a camp or accommodation, and a water supply.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV), at a 10% discount rate, of $77.9-million and an internal rate of return of 81%, with payback in 13 months.

Value
Capital cost to initial production is estimated at $38.9-million.

Duration
Not stated.

Latest Developments
Nzuri Copper will raise A$4.78-million through a share placement to institutional and sophisticated investors, to complete the definitive feasibility study (DFS) at its Kalongwe copper project, in the Democratic Republic of Congo (DRC).

Nzuri said on March 16 that it would an estimated 21.1-million shares, priced at 22.7c each, to raise the funds.

Thhe participants in the placement include several institutional investors and other sophisticated or professional investors that are likely to be long-term supportive shareholders of the company.

Funds raised under the placement will be used to complete the DFS at Kalongwe, as well as fund early project development and exploration for Nzuri’s earn-in agreement with Ivanhoe Mines.

The two companies in 2015 struck a deal under which Nzuri, then Regal, could earn an 80% interest in five permits held by Ivanhoe by spending an initial $3-million on exploration within a three-year period. Nzuri could increase its shareholding in the projects to 90% by spending a further $3-million on the project areas in the following two years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Nzuri Copper, tel +61 8 6355 6888.