Kalongwe Copper-Cobalt Project (DRC)
“…Kalongwe is a significant high-grade oxide Cu-Co near surface resource which has potential to be developed into a near term – low CAPEX low OPEX mining operation…”
- Located in the Katanga Province, DRC.
- ~15km from Kamoa, considered to be Africa’s largest recent high-grade copper discovery which boasts an Indicated Mineral Resource of 739 million tonnes grading 2.67% Cu.
- ~45km from the historic copper mining and processing centre at Kolwezi.
- Ownership of PR 12198 (exploitation licence) transferred to Kalongwe Mining SA, a DRC registered company.
- Interest in Kalongwe Mining SA jointly held by Nzuri Copper Limited (30%), the international commodities trading company Traxys Europe SA (30%) and La Generale Industrielle et Commerciale au Congo SPRL (40%).
- Funding for the acquisition, exploration and feasibility studies shared on a 50/50 basis with Traxys, significantly de-risking the development of the Kalongwe Project.
Phase I Diamond Drilling Programme
- Completed June 2014.
- 12-holes; 1,785m; drill density: 100m x 100m.
- Results validated 2006/2007 Ivanhoe drill results, and confirmed Kalongwe deposit as a very high grade Cu-Co resource with oxide mineralisation.
- Significant results included:
- 68.30m @ 4.92% Cu and 0.57% Co 76.70m @ 4.06% Cu and 0.52% Co
- 16.90m @ 8.05% Cu and 1.33% Co 90.23m @ 3.38% Cu and 0.93% Co
- 77.60m @ 4.14% Cu and 0.57% Co 70.00m @ 2.22% Cu and 0.84% Co
Phase II Diamond Drilling Programme
- Completed November 2014.
- 34-holes; 4,287m; drill density: 50m x 50m, 25m x 25m locally.
- Designed to upgrade and reclassify the initial Mineral Resource estimate.
- Significant results included:
- 101.3m @ 4.25% Cu & 0.42% Co from 10.1m 57.30m @ 4.58% Cu & 0.62% Co from 3.80m
- 96.70m @ 3.76% Cu & 0.53% Co from 15.0m 92.10m @ 5.24% Cu & 0.55% Co from 21.0m
- 87.50m @ 3.35% Cu & 0.37% Co from 48.3m 80.50m @ 4.27% Cu & 0.76% Co from 25.7m
- 75.00m @ 6.30% Cu & 0.73% Co from 12.0m 69.00m @ 5.29% Cu & 0.77% Co from 5.50m
- 68.20m @ 3.98% Cu & 0.53% Co from 6.00m 62.90m @ 3.26% Cu & 0.43% Co from 19.5m
Maiden Resources Estimate
- Completed July 2014.
- Based upon 65 drill holes (aggregate of 12,239m) – 2006/2007 Ivanhoe drill data (53 holes) and Phase I drill campaign (12 holes).
- JORC compliant Maiden Inferred Mineral Resource estimate of 276,000t of Cu and 42,500t of Co.
Revised and Re-classified Resources Estimate
- Completed February 2015.
- Data used from ~98 drill holes (~16,000m; 2006/2007 Ivanhoe data and 2014/2015 Kalongwe drill campaigns).
- Revised and re-classified JORC Mineral Resource:
- 17Mt @ 2.70% Cu (0.5% Cu cut off), 302,000t Cu including 29,700t Co, and
- 29Mt @ 0.57% Co (0.2% Co cut off), 13,000t Co.
- ~75% conversion of previously Inferred resource to Measured and Indicated JORC categories.
- Predominantly malachite, deep base of oxidation.
- Broad zones of high-grade Cu-Co extend down dip from surface exposure.
- High-grade Co zones inside the Cu resource.
- Host is the Lower Roan Stratigraphy.
- Multiple thick, high-grade intersections.
- Good continuity between holes.
- Robust geology.
- High-grade mineralisation through structural overprint.
- Mineralisation open at depth and down plunge.
- Depth of oxidation to ~150m.
- Oxide ore suited for upgrading by Heavy Media Separation and spirals to produce +20% Cu concentrate.
- Completed April 2015. Refer to ASX announcements on 21 April 2015 and 3 June 2016 for further details.
- Scoping Study Confirms Project Viability.
- Robust – based on Measured & Indicated JORC Mineral Resource Estimate
- Low CAPEX, OPEX and short payback period are the result of the high grade nature of the deposit.
- Simple mining and beneficiation process.
- Significant opportunities to further enhance the Project economics.
- Potential Stage 2 SX-EW would provide opportunities to extend mine life.
- Planned work will include a number of technical studies to optimise the pit design and mining schedule and refine the processing flow sheet.
- Definitive Feasibility Study – Board will be seeking consent from its JV partners to complete.
- Gearing up to fast track mine development.