8
MODERN MINING
March 2017
MINING News
US-based Cupric Canyon Capital (Cupric)
has announced that its wholly owned
subsidiary, Khoemacau Copper Mining
(KCM), has entered into a US$50 million,
term loan facility agreement with Red
Kite Mine Finance to provide funding for
KCM’s Khoemacau copper-silver project in
Botswana.
KCM will construct an underground
mine at its high-grade Zone 5 deposit. The
Zone 5 resource contains 100 Mt of ore
grading 2 % copper and 20 g/t silver. The
Zone 5 undergroundmine will be accessed
with three declines and will utilise a highly-
mechanised, low-cost, sub-level open
stoping mining method.
The mine will initially feed the nearby
Boseto copper concentrator, which was
acquired as part of Cupric’s purchase
of Discovery Copper Botswana (DCB),
announced in July 2015. The Boseto con-
centrator will be upgraded from its current
3,0 Mt/a nameplate capacity to 3,6 Mt/a.
Metal production from the Starter
Execution of mining right a milestone for Tjate
Jubilee, the AIM-quoted and AltX-listed
Mine-to-Metals specialist, has announced
that Tjate Platinum Corporation Proprietary
Limited (Tjate), has executed a mining
right with the Department of Mineral
Resources in respect of the project com-
prising the Farms Dsjate 249 KT, Fernkloof
539KS and Quartzhill 542 KS, situated in
the Magisterial District of Sekhukhune in
Limpopo Province.
Tjate (in which Jubilee is the biggest
shareholder) now has the right to mine and
process all platinum group metals, chrome,
nickel, copper, gold and certain associated
metals and minerals from the project min-
ing area, subject to its complying with the
terms of the mining right and alignment to
the requirements of the Mining Charter.
Leon Coetzer, Chief Executive Officer
of Jubilee, said: “We are pleased that the
Tjate platinum project has received the
mining right. The mining right is a major
milestone in the development of the
project and is in line with the company’s
Mine-to-Metals strategy. The mining right
confirms the significant potential value
the project offers to Tjate and contributes
to the company’s resource portfolio. The
timing of the mining right coincides with
the continued global recovery supporting
the anticipated improvement in the plati-
num markets. The Tjate platinum project
is one of the world’s largest undeveloped
blocks of platinum and we look forward to
unlocking its full potential.”
Project will average 50 000 tonnes of cop-
per and 1,4 million ounces of silver per
annum. The Zone 5 mine is expected to
have a minimum life of 25 years and aver-
age C1 cash costs of around US$1,00 per
pound.
The total cost to develop KCM’s Starter
Project is approximately US$350 million,
with underground mine development
being the largest single cost component.
Efforts are underway to optimise both ore
grade and capital expenditures. Within
the next few months, the Botswana
Environmental Ministry is expected to
approve modifications to KCM’s environ-
mental permits to facilitate processing
Zone 5 ore at the upgraded Boseto plant.
The Botswana Power Company is
also progressing development of the
high-tension power line that will provide
commercial power to the north-west
region of Botswana. This power-line proj-
ect includes a spur line to Boseto and
Zone 5, providing low-cost commercial
Further step forward for planned Khoemacau mine
The Boseto concentrator is to be upgraded from its current 3,0 Mt/a nameplate capacity to 3,6 Mt/a (photo: Arthur Tassell).
power when KCM starts production in
2019.
Dennis Bartlett, Cupric’s Chief Executive
Officer, said: “Proceeds from the term loan
will enable us to continue development
work at Khoemacau as we prepare to
begin full scale construction of the Starter
Project in the second half of 2017. All
design, engineering and permitting work
is progressing well and on schedule, bol-
stering our confidence that production will
commence in 2019.
“In addition, the most recent drilling
results including the discovery of Zone 5
North andmineral resource updates for the
deposits acquired last year are very excit-
ing. We continue to believe that Zone 5,
combined with the expansion potential
offered by the other deposits within our
licence areas, represents perhaps the most
attractive new copper project in the world
today, with the potential to ultimately
achieve copper production in excess of
120 000 tonnes per annum.”