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 following a phased development approach for the project.

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

The HMS plant was wound down in the September 2014 quarter and superseded by the solvent extraction electrowinning (SX-EW) plant, which produced first cathode in May 2014 and reached nameplate production of 25 000 t/y in September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

The SX-EW plant can potentially 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 when it is approved.

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 the 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 for a 90:10 ratio, following the completion of the power infrastructure upgrade.

Net Present Value/Internal Rate of Return
Not stated.

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 is under way to optimise Phase 3 heap feed and potentially sustain a 50 000 t/y rate without having to spend $46-million on a tank leach using whole ore leaching.

Duration
The Kipoi project achieved nameplate copper cathode production at its Stage 2 SX-EW in May 2014. Kipoi reserves support an expanded 50 000 t/y production rate for ten years.

Latest Developments
Tiger is hoping to reactivate its Kipoi central openpit mine 2016.

The planning process for the reactivation is currently being undertaken as the miner prepares for the end-life of its current floats and stockpiles, which is supporting copper cathode production through its solvent extraction and electrowinning plant

A study for the debottlenecking of the Kipoi SX-EW plant has revealed that copper production could be increased from the nameplate capacity of 25 000 t/y to 32 500 t/y.

The SX-EW plant used an estimated 6.1-million tonnes of residue material, grading 2.4% copper, which was available in the form of floats, slimes and run-of-mine ore stockpiles, and had allowed Tiger to suspend mining operations for a period of two years.

Iterim CEO Michael Griffiths has said limited work will be required to restart the openpit operation, adding that Tiger has maintained its mining team throughout the mining hiatus, which will allow for a quick restart.

“From the top, we have to do a cut-back, so [there is] a fair bit of waste to remove to get to the orebody, but certainly there is no real impediment for us heading down that path. We have plenty of space to put waste; it will be quite a simple restart.”

No capital estimates for the restart of openpit operations have been made available.

Tiger is considering debottlenecking its SX-EW plant, allowing copper cathode production to increase from the nameplate capacity of 25 000 t/y to 32 500 t/y.

The project will require a capital investment of some A$25-million and could result in an average life-of-mine operating cost of $1.27/lb.

The optimsation presumes the resumption of mining in the third quarter of 2016. The production schedule is based solely on Kipoi Central ore feed, with ore to be sourced from Kipoi North and Kileba in later years.

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 when it is approved.

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.