Name and Location
Mowana mine (previously Dukwe mine), Botswana.

Project Description
The project will entail the development of an openpit mine (in phases) to produce about 15 000 t/y of copper. The mine will be developed as an openpit to extract near-surface oxide ore amenable to heap-leaching and later to be supplemented by under-ground mining of the sulphide ore to be recovered by flotation concentration.

The total openpit proven and probable reserves have been estimated at 14,8-million tons, grading at 1,11% copper.

The flotation concentrator has been designed for a 3 000-t/d throughput, producing about 44-million pounds of copper in concentrate at full production.

Further, the successful integration of a dense-media separation (DMS) plant into the process design has been confirmed, which is expected to reduce the strip ratio and improve the recoveries of the openpit resource.

The life-of-mine is expected to be 18 years and has the potential for additional future reserves. In addition to the material that will be extracted during the mining of the openpit, the deposit at Mowana has a further 72,87-million tons of estimated, measured and indicated resources, which may be extracted using underground mining techniques. The merit of the underground mine is that it will allow access to the large tonnage of resources that exist at Mowana, expand production and increase the capacity in the processing plant. In addition, lateral, deep, multilevel horizontal development will facilitate optimal underground diamond drill locations for further evaluation and extension of the sulphide mineral resource estimate. Trial mining is required to establish extraction and dilution parameters and mining costs prior to making a full-scale production decision.

Value
The new overall capital cost estimate for the Mowana mine is R892,4-million.

The total capital cost for the processing plant and related facilities, including engineering, procurement and construction management (EPCM) and contingency, is about R464,5-million.

The incorporation of a DMS plant into the design, as well as modifications to the oxide circuit in the concentrator to increase recoveries, is expected to add an estimated R98,3-million to this figure. Further, Read, Swatman & Voigt (RSV) has finalised the practical mine design for the openpit and is estimating preproduction capitalised mining expenditure of R282,3-million.

Working capital is estimated to be R47,3-million.

Duration
Production started in 2008.

Client
African Copper.

Key Contracts and Suppliers
RSV (detailed engineering and design), Senet (process plant designs), RSG (resource estimate), MMB (mining contract), Minero Consulting (plant design modifications), and Turgis Consulting (pit optimisation).

Latest Developments
African Copper has reported that the commissioning of the mill is in its final stage, following the successful resolution of some issues with the mill's bearings and lubrication system during the commissioning process.

High-grade ore is now being put through the mill and the EPCM contractor is currently undertaking the completion guarantees.

The period from the start of construction to final commissioning has been less than 24 months.

The mining operations, which started in January 2008, continue to perform well with over 850 000 t of ore stockpiled, including 300 000 t at 1,74% copper, as at September 8, 2008.

This represents about nine months of production, based on the mill capacity of one-million tons a year.

The mining operations have now exposed ore along a 1,5-km strike length within the pit and have shown an increased presence of supergene (high-grade chalcocite) mineralisation at shallow depths, compared with the geological resource model, which had anticipated primarily oxide mineralisation at these elevations.

As a result of the increased presence of supergene mineralisation, the mixed ore grades encountered are higher than the oxide mineralisation grade predicted in the geological resource model.

The current operational strategy allows the segregation of stockpile ore into a high-grade direct mill feed stockpile and a DMS plant feed stockpile.

African Copper has also undertaken a reconciliation exercise between the geological resource model and all the blocks mined to the end of July 2008.

This indicates that higher ore grades are being mined, primarily owing to the presence of mixed ore and operational grade control measures.

A further in-pit reconciliation of the 980mL bench in the south of the pit confirms this trend and has indicated lower ore tonnages (27% decrease), but a significant increase (57%) in contained copper, as a result of higher grades.

On Budget and on Time?
Yes.

Contact Details for Project Information
African Copper, tel +44 20 7321 3721 or fax +44 20 7321 3722.