Base metals exploration and development company Force Commodities announced last month that it expected to finalise key exploration, mining and beneficiation contracts for the new openpit lead/silver mine in Malawi by the end of September.

At the time of writing, Force Commodities had yet to release a statement confirming finalisation of the contracts.

The company had already pre-sold its entire high-grade lead/silver entitlement – from a mine yet to be built – to a major Swiss global trading house.

Speaking at the Africa Down Under mining conference in September, Force Commodities MD Jason Brewer said the key project milestones would coincide with a start to a new on-site drill programme at the company’s 51%-owned, 1 400 km2 Tshimpala base metals project, in Malawi.

Phase 1 exploration and development activities will commence following completion of legal and technical due diligence and execution of acquisition documentation which is expected shortly.

This programme aims to delineate an initial Joint Ore Reserves Committee-compliant resource for Tshimpala and builds on other bulk and sampling assays returning a minimum of 60% lead and 735 g/t silver with up to 80% lead grades in some chemical assays results.

“Encouragingly, Tshimpala will come to market at a time the base metals outlook is positive with increasing pricing in both the lead and silver markets,” Brewer said at the time.

“We are currently finalising openpit and mine development studies for Tshimpala with negotiations well advanced with short-listed contractors for both the mining and

beneficiation contracts.”

As manager and operator for Tshimpala, Force Commodities is responsible for all funding to establish all mining operations and the marketing and sale of all lead and silver production from the mine.

Mining activities at Tshimpala are anticipated to be conventional shallow openpit

operations with no drilling or blasting required. Detailed operating and capital costs are currently being finalised.

Further, an environmental-impact study is also being finalised in Malawi in conjunction with the ongoing consultation with key project stakeholders, namely, local communities and the district commission.

“Pricing under the offtake agreement is to be based on market standard terms and for material transported in sealed containers from the mine site to port,” Brewer noted.

The agreement provides for provisional payments to Force Commodities upon delivery of material at the port of Beira, in Mozambique, against assays, and the balance upon delivery.

Additionally, the company had also executed an agreement, in August this year, with Malawi-based engineering and construction company Shire Civils Limited, to acquire mobile crushing and screening plant and equipment for the project.

Commissioning and delivery of the mobile plant and equipment by Shire is scheduled to be completed at the Tshimpala project site in the December 2019 quarter.

In addition, under the agreement, Shire will also be engaged to establish the platforms for the mobile equipment at the processing site, transportation of the mobile equipment from Lilongwe to the processing site, full commissioning of the mobile equipment and training of the company’s planned employees from the surrounding communities, who will operate the equipment.

“Locking these contracts down will [follow] the recent award of the transport contract to Bollore for the export of lead and silver concentrate from the mine to the port of Beira and through to agreed major ports in Asia,” Brewer added, referencing the relatively strong position the company now enjoys.

Commissioning and delivery of the mobile plant and equipment by Shire is scheduled to be completed at Tshimpala in the December 2019 quarter.