Name and Location
Kitumba copper project, Central province, Zambia.

Client
Intrepid Mines.

Project Description
The Kitumba project has benefited from another update to its 2013 prefeasibility study (PFS).

The project has proven and probable reserves of 21.9-million tonnes at 2.2% copper.

Under the options studied, an extensive redesign of the development plan, based on a reduced production rate, has confirmed the economic potential of the project, based on a long-term copper price of $3.11/lb.

A number of mining and processing plant-related scenarios were considered, resulting in seven case options being evaluated, including a variable mine production profile.

Under the preferred project development option, copper recovery of 91% is envisaged, with copper cathode production of up to 40 000 t/y, with an average of 37 000 t/y produced over the project’s 13-year mine life.

The underground operation will produce 1.5-million tonnes to 2-million tonnes a year run-of-mine, with an average head grade of 2.2% copper.

The project’s mine life has been increased from 11 years to 13 years.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at an 8% discount rate, of $164-million and an internal rate of return of 15%, with a payback of 5.1 years after the start of construction, based on a copper price of of $3.11/lb from 2019.

Value
Based on the updated PFS project, costs have been reduced by 35% to $433-million, including $152-million for the engineering, procurement and construction management contractor, owner’s cost and contingency.

Duration
Not stated.

Latest Developments
A decision to progress the Kitumba project to full feasibility will be made in early 2016, following the completion of exploration drilling and metallurgical testing.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Intrepid Mines, tel +61 2 935 579 000, fax +61 293 321336 or email info@intrepidmines.com.