ZUG, Switzerland,
Jan. 31, 2018 /CNW/ - Katanga
Mining Limited (TSX: KAT) ("Katanga" or the
"Company") is pleased to announce its ore reserve and
mineral resource estimates as at December
31, 2017.
Key Updates: Mineral Resources
- Overall, the measured and indicated mineral resource for Kamoto
Copper Company SA ("KCC") (in which the Company has a 75% interest)
increased by 7.7 million tonnes since December 31, 2016, consisting of the
following:
-
- Changes in the indicated mineral resource are related to the
addition of 7.8 million tonnes in the Kamoto Interim Tailings Dam
("KITD"), as a result of the 2017 drilling program.
- Changes in the indicated mineral resource for the KOV Open Pit,
KOV Underground, and KTE is a decrease of 0.1 million tonnes due to
mining depletion during 2017.
- Changes in the inferred mineral resource category for KOV Open
Pit, KOV Underground and KTE is a decrease of 0.2 million tonnes
due to mining depletion during 2017.
- There are no changes in the measured, indicated or inferred
mineral resources reported for Mashamba East, KTO Underground, T-17
Open Pit / T-17 Underground Mine, Kananga Mine and Tilwezembe Open
Pit Mine, as no mining and no geological work was undertaken in
these areas in 2017.
- A reconciliation table comparing the 2016 and 2017 mineral
resource estimates is set out in Annexure A.
Key Updates: Ore Reserves
- The result of the December 31,
2017 ore reserve estimate is a net increase of 13.4 million
tonnes of ore reserves since December 31,
2016, of which 6.0 million tonnes is attributable to
optimization and design updates for KOV Open Pit and KTO
Underground. In addition, 7.4 million tonnes of reserves were added
from the KITD tailings.
- A reconciliation table comparing the 2016 and 2017 ore reserves
is set out in Annexure B and the key mining parameters which
inform the ore reserve estimates are set out in Annexure
C
KATANGA MINING
LIMITED CONSOLIDATED ORE RESERVES
AND MINERAL RESOURCES 1, 2, 3, 4, 5, 6, 7, 8,
9 as at December 31, 2017
|
|
|
|
|
Ore
Reserves
|
Mt
|
%TCu
|
%TCo
|
Proved
|
8.8
|
3.55
|
0.55
|
Probable
|
129.4
|
3.13
|
0.51
|
Proved &
Probable
|
138.1
|
3.15
|
0.51
|
|
|
|
|
Mineral
Resources
|
|
|
|
Measured
|
16.4
|
3.58
|
0.57
|
Indicated
|
267.1
|
3.60
|
0.53
|
Measured &
Indicated
|
283.5
|
3.60
|
0.54
|
Inferred
|
167.8
|
3.79
|
0.44
|
More detailed ore reserve and mineral resource estimates are as
follows:
KATANGA MINING
LIMITED PROVED AND PROBABLE ORE RESERVES 1, 2, 5, 6,
7, 9 as at December 31, 2017
|
|
|
|
|
Ore
Reserves
|
Mt
|
%TCu
|
%TCo
|
KTO
|
26.9
|
3.40
|
0.54
|
T-17
Underground
|
11.3
|
3.65
|
0.62
|
T-17 Open
Pit
|
0.0
|
0.00
|
0.00
|
Mashamba East Open
Pit
|
32.1
|
2.13
|
0.60
|
KOV Open
Pit
|
60.5
|
3.70
|
0.48
|
KITD Tailings (KCC
PE525)
|
4.4
|
1.51
|
0.16
|
KITD Tailings (GCM
PE8841)
|
2.9
|
1.46
|
0.17
|
TOTAL
|
138.1
|
3.15
|
0.51
|
KATANGA MINING
LIMITED MEASURED AND INDICATED MINERAL RESOURCES 1,
2, 3, 4, 5, 6, 8, 9 as at December 31,
2017
|
|
|
|
|
Measured and
Indicated Mineral Resources
|
Mt
|
%TCu
|
%TCo
|
KTO
|
78.1
|
3.92
|
0.48
|
Mashamba East Open
Pit
|
60.0
|
1.68
|
0.62
|
T-17 Open Pit/T-17
Underground
|
13.6
|
3.89
|
0.61
|
KOV Open Pit/KOV
Underground/KTE Underground
|
110.4
|
4.75
|
0.53
|
Kananga
Mine
|
4.1
|
1.61
|
0.79
|
Tilwezembe Open
Pit
|
9.5
|
1.89
|
0.60
|
KITD
Tailings
|
7.8
|
1.49
|
0.16
|
TOTAL
|
283.5
|
3.60
|
0.54
|
KATANGA MINING
LIMITED INFERRED MINERAL RESOURCES 1, 2, 3, 4, 5, 6,
8, 9
as at December 31, 2017
|
|
|
|
|
Inferred Mineral
Resources
|
Mt
|
%TCu
|
%TCo
|
KTO
|
48.5
|
3.83
|
0.38
|
Mashamba East Open
Pit
|
18.3
|
2.85
|
0.47
|
T-17 Open Pit/T-17
Underground
|
5.2
|
4.21
|
0.98
|
KOV Open Pit/KOV
Underground/KTE Underground
|
78.0
|
4.40
|
0.38
|
Kananga
Mine
|
4.0
|
2.00
|
0.98
|
Tilwezembe Open
Pit
|
13.8
|
1.75
|
0.60
|
KITD
Tailings
|
0.0
|
0.00
|
0.00
|
TOTAL
|
167.8
|
3.79
|
0.44
|
Notes:
- The ore reserve and mineral resource estimates have been
prepared in accordance with the classification criteria of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves prepared by the Joint Ore Reserves
Committee of the Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of
Australia, as amended ("JORC
Code"). If the definitions and classification standards adopted
by the Canadian Securities Administrators' National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") had been used instead of those of the JORC Code, the
estimates of mineral reserves and mineral resources would be
substantially similar to the estimates of ore reserves and mineral
resources presented here.
- The mineral resource estimates have been prepared by, or under
the supervision of, Christiano Santos
Goncalves, (MAusIMM CP (Geo) 306 079) and the ore reserve
estimates have been prepared by, or under the supervision of,
Jacobus Lotheringen, PrEng each of Golder Associates Africa Pty
Ltd, who are each a qualified person under NI 43-101.
- Mineral resources are inclusive of ore reserves.
- Mineral resources which are not ore reserves have not
necessarily demonstrated economic viability.
- The ore reserve and mineral resource estimates are for KCC's
entire interest in such ore reserves and mineral resources, whereas
the Company owns 75% of KCC. La Générale des Carrières et des Mines
("GCM") and La Société Immobilière du Congo, state-owned mining companies in the
Democratic Republic of Congo, own
the remaining 25% of KCC.
- Numbers may not add due to rounding.
- Unless otherwise noted, the Company's ore reserves are
estimated using appropriate cut-off grades based on an assumed long
term price of $6,500 per tonne of
copper and long term price of $55,000
per tonne of cobalt. Ore reserves are estimated using appropriate
process recoveries, operating costs and mine plans that are unique
to each property and include estimated allowances for dilution and
mining recovery.
- Unless otherwise noted, the Company's mineral resources are
estimated using appropriate lithological interpretations, grade
compositing and grade estimation techniques for copper and
cobalt.
- The Company's normal data verification procedures have been
used in collecting, compiling, interpreting and processing the data
used to estimate ore reserves and mineral resources. Independent
data verification has not been performed, however, the data has
been independently validated.
- The total KITD Reserve of 7.4 Mt resides on lease boundaries
PE525 and PE8841. PE525 contains 4.4 Mt of the total Ore Reserve;
PE8841 contains the remaining 2.9 Mt of Ore Reserve. PE8841 belongs
to GCM, however, KCC has stated that it has the legal right to mine
the tailings discharged from its KTC operations as per the
provisions of the JVA concluded with GCM.
Qualified Person and Technical Report
This press
release was prepared under the supervision of Tahir Usmani, PEng, APEGA, an employee of
Katanga and a 'qualified person' as such term is defined in NI
43-101. Mr. Tahir Usmani has
reviewed and approved the contents of this press release.
The Company's technical report entitled "NI 43-101 Technical
Report on the Material Assets of Katanga Mining Limited, Lualaba
Province, Democratic Republic of
Congo" dated March 31, 2017 is
filed under the Company's profile on SEDAR at www.sedar.com.
Cautionary Note to US Investors concerning estimates of
Measured, Indicated and Inferred Mineral Resources
The above
tables use the terms "Measured, Indicated and Inferred Mineral
Resources" in accordance with the ore reserves and mineral resource
categories of the JORC Code. We advise US investors that while
these terms are recognized and required by Canadian regulations,
the US Securities and Exchange Commission does not recognize them.
"Inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of
inferred mineral resources will ever be upgraded to a higher
category. In accordance with Canadian rules, estimates of inferred
mineral resources cannot form the basis of feasibility or other
economic studies. US investors are cautioned not to assume that any
part or all of the inferred mineral resource exists, or is
economically or legally mineable.
Unless otherwise specified, all $ amounts referred to in this
press release are U.S. dollars.
About Katanga Mining Limited
Katanga Mining
Limited operates a major mine complex in the Democratic Republic of Congo producing refined
copper and cobalt. The Company has the potential to become
Africa's largest copper producer
and the world's largest cobalt producer. Katanga is listed on the
Toronto Stock Exchange under the symbol KAT.
Forward Looking Statements
This press
release may contain forward-looking statements, including, but not
limited to, statements concerning the mineral resources and ore
reserves of the company, economic feasibility thereof, and the
overall expected improvement of recoveries and grades. Often, but
not always, forward-looking statements can be identified by the use
of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs
and assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements. All of the
Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although the
Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the
forward-looking statements. The key assumptions that have been made
in connection with the forward-looking statements include the
following: the operations of the Company during the ramp up of
production following the commissioning of the Whole Ore Leach
("WOL") Project remaining consistent with management's
expectations, there being no significant disruptions affecting the
operations of the Company whether due to labour disruptions, supply
disruptions, power disruptions, rollout of new equipment, damage to
equipment or otherwise; permitting, development, operations,
expansion and acquisitions at the Project being consistent with the
Company's current expectations; continued recognition of the
Company's mining concessions and other assets, rights, titles and
interests in the DRC; political and legal developments in the DRC
being consistent with its current expectations; the continued
provision or procurement of additional funding from Glencore for
operations; the completion of the T17 Underground Mine, phase 2 of
the WOL Project and the Power Project (as defined in the Annual
Information Form of the Company for the year ended December 31, 2016 dated March 31, 2017); that new equipment performs to
expectations; the exchange rate between the US dollar, South
African rand, British pound, Canadian dollar, Swiss franc,
Congolese franc and Euro being approximately consistent with
current levels; certain price assumptions for copper and cobalt;
prices for diesel, natural gas, fuel oil, electricity and other key
supplies being approximately consistent with current levels;
production and cost of sales forecasts for the Company meeting
expectations; the accuracy of the current ore reserve and mineral
resource estimates of the Company (including but not limited to ore
tonnage and ore grade estimates); and labour and material costs
increasing on a basis consistent with the Company's current
expectations.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the actual results of current exploration activities;
actual results and interpretation of current reclamation
activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of copper
and cobalt; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the
completion of exploration, development or construction activities,
delays due to strikes or other work stoppage, both internal and
external to the Company as well as those factors disclosed in the
Company's current annual information form and other publicly filed
documents. Although Katanga has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events, or otherwise, except in accordance with
applicable securities laws.
Annexure A
Katanga Mining
Limited Mineral Resource Reconciliation at December 31, 2017 and
2016
|
Classification
|
Project
Area
|
2017
|
2016
|
Variance
|
Mt
|
%TCu
|
%TCo
|
Mt
|
%TCu
|
%TCo
|
Mt
|
Measured
|
KTO
|
12.2
|
3.90
|
0.59
|
12.2
|
3.90
|
0.59
|
0.0
|
Mashamba East Open
Pit
|
0.0
|
0.00
|
0.00
|
0.0
|
0.00
|
0.00
|
0.0
|
T-17 Open
Pit/T-17
Underground
|
4.2
|
2.66
|
0.51
|
4.2
|
2.66
|
0.51
|
0.0
|
KOV Open Pit/KOV
Underground/KTE
Underground
|
0.0
|
0.00
|
0.00
|
0.0
|
0.00
|
0.00
|
0.0
|
Kananga
Mine
|
0.0
|
0.00
|
0.00
|
0.0
|
0.00
|
0.00
|
0.0
|
Tilwezembe Open
Pit
|
0.0
|
0.00
|
0.00
|
0.0
|
0.00
|
0.00
|
0.0
|
KITD
Tailings
|
0.0
|
0.00
|
0.00
|
0.0
|
0.00
|
0.00
|
0.0
|
Subtotal
|
16.4
|
3.58
|
0.57
|
16.4
|
3.58
|
0.57
|
0.0
|
Indicated
|
KTO
|
65.9
|
3.92
|
0.46
|
65.9
|
3.92
|
0.46
|
0.0
|
Mashamba East Open
Pit
|
60.0
|
1.68
|
0.62
|
60.0
|
1.68
|
0.62
|
0.0
|
T-17 Open
Pit/T-17
Underground
|
9.4
|
4.44
|
0.65
|
9.4
|
4.44
|
0.65
|
0.0
|
KOV Open Pit/KOV
Underground/KTE
Underground
|
110.4
|
4.75
|
0.53
|
110.5
|
4.75
|
0.53
|
(0.1)
|
Kananga
Mine
|
4.1
|
1.61
|
0.79
|
4.1
|
1.61
|
0.79
|
0.0
|
Tilwezembe Open
Pit
|
9.5
|
1.89
|
0.60
|
9.5
|
1.89
|
0.60
|
0.0
|
KITD
Tailings
|
7.8
|
1.49
|
0.16
|
0.0
|
0.00
|
0.00
|
7.8
|
Subtotal
|
267.1
|
3.60
|
0.53
|
259.4
|
3.66
|
0.54
|
7.7
|
Measured and
Indicated
|
KTO
|
78.1
|
3.92
|
0.48
|
78.1
|
3.92
|
0.48
|
0.0
|
Mashamba East Open
Pit
|
60.0
|
1.68
|
0.62
|
60.0
|
1.68
|
0.62
|
0.0
|
T-17 Open
Pit/T-17
Underground
|
13.6
|
3.89
|
0.61
|
13.6
|
3.89
|
0.61
|
0.0
|
KOV Open Pit/KOV
Underground/KTE
Underground
|
110.4
|
4.75
|
0.53
|
110.5
|
4.75
|
0.53
|
(0.1)
|
Kananga
Mine
|
4.1
|
1.61
|
0.79
|
4.1
|
1.61
|
0.79
|
0.0
|
Tilwezembe Open
Pit
|
9.5
|
1.89
|
0.60
|
9.5
|
1.89
|
0.60
|
0.0
|
KITD
Tailings
|
7.8
|
1.49
|
0.16
|
0.0
|
0.00
|
0.00
|
7.8
|
TOTAL
|
283.5
|
3.60
|
0.54
|
275.8
|
3.66
|
0.55
|
7.7
|
Inferred
|
KTO
|
48.5
|
3.83
|
0.38
|
48.5
|
3.83
|
0.38
|
0.0
|
Mashamba East Open
Pit
|
18.3
|
2.85
|
0.47
|
18.3
|
2.85
|
0.47
|
0.0
|
T-17 Open
Pit/T-17
Underground
|
5.2
|
4.21
|
0.98
|
5.2
|
4.21
|
0.98
|
0.0
|
KOV Open Pit/KOV
Underground/KTE
Underground
|
78.0
|
4.40
|
0.38
|
78.2
|
4.39
|
0.38
|
(0.2)
|
Kananga
Mine
|
4.0
|
2.00
|
0.98
|
4.0
|
2.00
|
0.98
|
0.0
|
Tilwezembe Open
Pit
|
13.8
|
1.75
|
0.60
|
13.8
|
1.75
|
0.60
|
0.0
|
KITD
Tailings
|
0.0
|
0.00
|
0.00
|
0.0
|
0.00
|
0.00
|
0.0
|
TOTAL
|
167.8
|
3.79
|
0.44
|
168.0
|
3.78
|
0.44
|
(0.2)
|
Notes: See the
footnotes on page 3-4 of this press release.
|
Annexure B
Katanga Mining Limited Ore Reserve Reconciliation as at
December 31, 2017 and 2016
Mining
operation
|
2017 Reserve
Estimate
|
2016 Reserve
Estimate
|
Variance
|
Mt
|
%TCu
|
%TCo
|
Mt
|
%TCu
|
%TCo
|
Mt
|
KTO
|
26.9
|
3.40
|
0.54
|
25.5
|
3.60
|
0.47
|
1.4
|
T-17
Underground
|
11.3
|
3.65
|
0.62
|
11.3
|
3.65
|
0.62
|
0.0
|
Mashamba East Open
pit
|
32.1
|
2.13
|
0.60
|
32.1
|
2.13
|
0.60
|
0.0
|
KOV Open
Pit
|
60.5
|
3.70
|
0.48
|
55.9
|
4.23
|
0.47
|
4.6
|
KITD Tailings
(KCC
PE525)
|
4.4
|
1.51
|
0.16
|
0.0
|
0.00
|
0.00
|
4.4
|
KITD Tailings
(GCM
PE8841)
|
2.9
|
1.46
|
0.17
|
0.0
|
0.00
|
0.00
|
2.9
|
Total
|
138.1
|
3.15
|
0.51
|
124.7
|
3.51
|
0.52
|
13.4
|
Notes: See the
footnotes on page 3-4 of this press release.
|
Annexure C
Operation
|
Mining
Dilutions
|
Mining and
Pillar Losses
|
Geological
Losses
|
Cut-off Grade
(Cu)
|
Processing
Recoveries
(Cu)
|
Processing
Recoveries
(Co)
|
KTO
Underground
|
5% to 10%
|
5%
|
5%
|
1.50%
|
76.2%
|
65%
|
KOV Open
Pit
|
20%
|
5%
|
0%
|
0.65%
|
85%
|
65%
|
T17
Underground
|
8%
|
8%
|
8%
|
1.20%
|
85%
|
65%
|
T17 Open
Pit
|
Converted to
underground
|
Mashamba East Open
Pit
|
7.9%
|
5%
|
0%
|
0.65%
|
85%
|
65%
|
SOURCE Katanga Mining Limited