Name and Location
Kipoi copper project, Democratic Republic of Congo (DRC).

Client
Tiger Resources.

Project Description
The Kipoi project covers 55 km² and is located 75 km north-northwest of the city of Lubumbashi, in Katanga. The project contains a 12 km sequence of mineralised roan sediments that host at least five known deposits – Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.

Joint Ore Reserves Committee-compliant resources have been reported at three of the deposits. The principal deposit is Kipoi Central, which contains a zone of high-grade copper mineralisation within a much larger, lower-grade global resource.

Tiger is taking a phased development approach at the project.

The first stage of production allowed for only the treatment of high-grade oxide material (malachite) through a heavy-media separation (HMS) plant.

The HMS plant was wound down in the September quarter 2014 and superseded by the solvent extraction electrowinning (SX-EW) plant, which produced first cathode in May 2014 and reached nameplate production of 25 000 t/y in September 2014. The SX-EW facility will produce London Metal Exchange grade-A copper cathode directly at the mine site.

The SX-EW plant has the potential to be expanded to 50 000 t/y for capital expenditure of $111-million representing a very competitive capital intensity of $4 400/t – significantly lower than the global average of future brownfield projects of $11 700/t. The expansion is on hold pending the receipt of appropriate long-term financing solutions, with an expected 14-month development period expected from sanction.

It is envisaged that ore from the Judeira deposit, and other deposits within the Kipoi project area and the nearby 100%-owned Lupoto project, will also be processed during the Stage 2 operations, providing additional returns and increasing the mineral resources available as feedstock to the Stage 2 SX-EW plant. Increased resources will potentially increase the nine-year mine life, demonstrated in the feasibility study, and/or yearly plant throughput.

Tiger expects to produce 25 000 t of copper cathode at cash operating costs in the range of $1.30/lb to $1.40/lb, royalties of $0.12/lb and sustaining capital of $0.15/lb for a Kipoi all-in sustaining cash cost in the range of $1.57/lb to 1.67/lb in 2015.

Power costs are expected to significantly reduce in 2015, as Kipoi switches from diesel generation to predominantly grid power (90:10) following the completion of the power infrastructure upgrade.

Value
SX-EW Phase 2 is budgeted at an estimated $111-million.

The Phase 3 crusher and tank leach is budgeted at $70-million; however, metallurgical testwork under way to optimise Phase 3 heap feed and potentially sustain a 50 000 t/y rate without the need to spend $46-million on a tank leach by using whole ore leaching.

Duration
The Kipoi project achieved nameplate copper cathode production at its Stage 2 SX-EW in September 2014. Kipoi reserves support an expanded 50 ktpa production rate for ten years.

Latest Developments
During the quarter ended December 31, 2014, Tiger deferred the expansion of the Kipoi operation to 50 000 t/y capacity pending the restructure of existing finance facilities. Tiger believes the expansion project represents a high return, low-risk and low-capital-intensive growth option with the potential to create significant value for Tiger shareholders.

Tiger is conducting metallurgical testwork and operational trials to optimise heap-leaching operations and development. The testwork is exploring the potential to sustain a 50 000 t/y production rate by using whole-of-ore leach once the current above-ground stockpiles have been exhausted. If successful, this will eliminate the need for a tank leach, currently included in the definitive study estimates, with a capital cost of $46-million, while also lowering unit operating costs and reducing operational complexity.

More than 200 000 t of a low-grade ore and HMS floats blend will be stacked on the heaps in the third quarter of 2015. The blend is exhibiting good leach characteristics, trending towards recoveries of more than 90% and standing up well under high rainfall events. The long-term blend will continue to be optimised while off-site metallurgical testwork is completed.

Key Contracts and Suppliers
MCK Mining (mining contract – Stage 1); DRA Mineral Projects (lump-sum turnkey contract for the design, installation and commissioning of the HMS – Stage 1); Group Five (subcontractor – construction works for Stage 1); Arccon Mining Services (scoping study); Cube Consulting (pit optimisations); Coffey Mining (tailings dam – design and costing) and Senet (SX-EW plant).

On Budget and on Time?
SX-EW Phase 2 is on hold pending the receipt of appropriate long-term financing solutions, with an anticipated 14-month development period expected from sanction.

Contact Details for Project Information
Tiger Resources, tel +61 8 6188 2000, fax +61 8 6188 2099 or email admin@tigerez.com.
DRA Mineral Projects, tel +27 11 202 8600, fax +27 11 202 8807 or email dra@drasa.co.za.
Group Five, tel +27 11 806 0111, fax +27 11 803 5520 or email info@groupfive.co.za.
Arccon Mining Services, tel +61 8 9340 6100, fax +61 8 9340 6150 or email mining@arccon.com.au.
Cube Consulting (South Africa), tel +27 12 665 2154, fax +27 27 665 1176 or email highveld@cubeconsulting.com.
Coffey Mining (South Africa), tel +27 11 679 3331 or fax +27 11 679 3272.
Senet, tel +27 11 409 1300 or fax +27 11 409 1301.