ZUG, Switzerland, Feb. 1, 2017 /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, 2016.
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 68.5 million tonnes since December 31, 2015, consisting of the following:
- Change in the measured mineral resource for KTO is an increase
of 2.7 million tonnes due to new drilling, stope mapping,
validation and incorporation of historical drillholes, and
reclassification methodology resulting in an updated geological
model.
- Changes in the indicated mineral resource for KTO, KOV Open Pit
and Mashamba East Open Pit is a decrease of 7.0 million tonnes at
KTO, an increase of 39.1 million tonnes at KOV Open Pit and an
increase of 33.8 million tonnes at Mashamba East Open Pit based on
new drilling, validation and incorporation of historical
drillholes, and reclassification methodology resulting in an
updated geological model.
- Changes in the inferred mineral resource for KTO, KOV Open Pit
and Mashamba East Open Pit is a decrease of 0.7 million tonnes at
KTO, a decrease of 12.8 million tonnes at KOV Open Pit and a
decrease of 18.9 million tonnes at Mashamba East Open Pit based on
new geological models being developed due to additional drilling
and reclassification of resources.
- There are no changes in the measured, indicated or inferred
mineral resources reported for 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 2016.
- A reconciliation table comparing the 2015 and 2016 mineral
resource estimates is set out in
Annexure A.
Key Updates: Ore Reserves
- The result of the December 31,
2016 ore reserve estimate is a net increase of 26.2 million
tonnes of ore reserves since December 31,
2015, the entirety of which increase is attributable to
Mashamba East Open Pit. The net increase in ore reserves is based
on an updated resource model and completion of a prefeasibility
study of the Mashamba East Open Pit.
- A reconciliation table comparing the 2015 and 2016 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, 2016
|
Ore
Reserves
|
Mt
|
%TCu
|
%TCo
|
Proved
|
10.4
|
3.62
|
0.40
|
Probable
|
114.3
|
3.50
|
0.53
|
Proved &
Probable
|
124.7
|
3.51
|
0.52
|
|
|
|
|
Mineral
Resources
|
|
|
|
Measured
|
16.4
|
3.58
|
0.57
|
Indicated
|
259.4
|
3.66
|
0.54
|
Measured &
Indicated
|
275.8
|
3.66
|
0.55
|
Inferred
|
168.0
|
3.78
|
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, 2016
|
Ore
Reserves
|
Mt
|
%TCu
|
%TCo
|
KTO
|
25.5
|
3.60
|
0.47
|
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
|
55.9
|
4.23
|
0.47
|
TOTAL
|
124.7
|
3.51
|
0.52
|
KATANGA MINING
LIMITED
MEASURED AND INDICATED MINERAL RESOURCES 1, 2, 3, 4, 5,
6, 8, 9 as at December 31, 2016
|
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
|
110.5
|
4.75
|
0.53
|
Kananga
Mine
|
4.1
|
1.61
|
0.79
|
Tilwezembe Open
Pit
|
9.5
|
1.89
|
0.60
|
TOTAL
|
275.8
|
3.66
|
0.55
|
KATANGA MINING
LIMITED INFERRED MINERAL RESOURCES 1, 2, 3, 4, 5, 6,
8, 9
as at December 31, 2016
|
Inferred Mineral
Resources
|
Mt
|
%TCu
|
%TCo
|
KTO
|
48.5
|
3.8
|
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
|
78.2
|
4.39
|
0.38
|
Kananga
Mine
|
4.0
|
2.00
|
0.98
|
Tilwezembe Open
Pit
|
13.8
|
1.75
|
0.60
|
TOTAL
|
168.0
|
3.78
|
0.44
|
Notes:
1.
|
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.
|
2.
|
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.
|
3.
|
Mineral resources are
inclusive of ore reserves.
|
4.
|
Mineral resources
which are not ore reserves do not have demonstrated economic
viability.
|
5.
|
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 and La Société
Immobilière du Congo, state-owned mining companies in the
Democratic Republic of Congo, own the remaining 25% of
KCC.
|
6.
|
Numbers may not add
due to rounding.
|
7.
|
Unless otherwise
noted, the Company's ore reserves are estimated using appropriate
cut-off grades based on an assumed long term price of $6,750 per
tonne of copper and long term price of $30,000 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.
|
8.
|
Unless otherwise
noted, the Company's mineral resources are estimated using
appropriate lithological interpretations, grade compositing and
grade estimation techniques for copper and cobalt.
|
9.
|
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.
|
Qualified Person and Technical Report
This press
release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and
a 'qualified person' as such term is defined in NI 43-101. Mr.
Henderson has reviewed and approved the contents of this press
release.
The Company's technical report entitled "An Independent
Technical Report on the Material Assets of Katanga Mining Limited,
Katanga Province, Democratic Republic of Congo" dated
March 30, 2012 prepared by Golder
Associates Africa (Pty) Ltd under the supervision of Mr.
Willem van der Schyff as the
"qualified person" is in compliance with NI 43-101 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 production
suspension and timeline for the recommencement of operations
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, the Whole Ore Leach Project
("WOL Project") and the Power Project (as defined in the Annual
Information Form of the Company for the year ended December 31, 2015 dated March 30, 2015); 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, 2016 and
2015
|
Classification
|
Project
Area
|
2016
|
2015
|
Variance
|
Mt
|
%TCu
|
%TCo
|
Mt
|
%TCu
|
%TCo
|
Mt
|
Measured
|
KTO
|
12.2
|
3.90
|
0.59
|
9.5
|
3.91
|
0.48
|
2.7
|
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
|
Subtotal
|
16.4
|
3.58
|
0.57
|
13.7
|
3.53
|
0.49
|
2.7
|
Indicated
|
KTO
|
65.9
|
3.92
|
0.46
|
72.9
|
3.84
|
0.43
|
(7.0)
|
Mashamba East Open
Pit
|
60.0
|
1.68
|
0.62
|
26.2
|
1.51
|
0.71
|
33.8
|
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
|
110.5
|
4.75
|
0.53
|
71.4
|
4.16
|
0.51
|
39.1
|
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
|
Subtotal
|
259.4
|
3.66
|
0.54
|
193.6
|
3.53
|
0.52
|
65.8
|
Measured and
Indicated
|
KTO
|
78.1
|
3.92
|
0.48
|
82.4
|
3.85
|
0.43
|
(4.3)
|
Mashamba East Open
Pit
|
60.0
|
1.68
|
0.62
|
26.2
|
1.51
|
0.71
|
33.8
|
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
|
110.5
|
4.75
|
0.53
|
71.4
|
4.16
|
0.51
|
39.1
|
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
|
TOTAL
|
275.8
|
3.66
|
0.55
|
207.3
|
3.53
|
0.52
|
68.5
|
Inferred
|
KTO
|
48.5
|
3.83
|
0.38
|
49.2
|
4.44
|
0.34
|
(0.7)
|
Mashamba East Open
Pit
|
18.3
|
2.85
|
0.47
|
37.2
|
2.33
|
0.53
|
(18.9)
|
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
|
78.2
|
4.39
|
0.38
|
91.0
|
4.44
|
0.36
|
(12.8)
|
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
|
TOTAL
|
168.0
|
3.78
|
0.44
|
200.3
|
3.81
|
0.43
|
(32.3)
|
Notes: See the
footnotes on page 3-4 of this press release.
|
Annexure B
Katanga Mining
Limited Ore Reserve Reconciliation as at December 31, 2016 and
2015
|
Mining
operation
|
2016 Reserve
Estimate
|
2015 Reserve
Estimate
|
Variance
|
Mt
|
%TCu
|
%TCo
|
Mt
|
%TCu
|
%TCo
|
Mt
|
KTO
|
25.5
|
3.60
|
0.47
|
25.5
|
3.60
|
0.47
|
0.0
|
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
|
5.8
|
2.68
|
0.37
|
26.2
|
KOV Open
Pit
|
55.9
|
4.23
|
0.47
|
55.9
|
4.23
|
0.47
|
0.0
|
Total
|
124.7
|
3.51
|
0.52
|
98.5
|
3.91
|
0.48
|
26.2
|
Notes: See the
footnotes on page 3-4 of this press release.
|
Annexure C
Ore Reserve
Estimation: Key Mining Parameters
|
Reference Mining
Costs Open Pit (USD $/t)
|
4.7
|
Reference Mining
Costs Mashamba East Open Pit (USD $/t)
|
3.5
|
Reference Mining
Costs Underground (USD $/t)
|
61.8
|
Reference Oxide Ore
Processing (USD $/t)
|
66.9
|
Reference Sulphide
Ore Processing (USD $/t)
|
12.2
|
Reference Mining
Metal Price for Cu (USD $/t)
|
6,750
|
Reference Mining
Metal Price for Co (USD $/t)
|
30,000
|
Operation
|
Mining
Dilutions
|
Mining and
Pillar Losses
|
Geological
Losses
|
Cut-off Grade
(Cu)
|
Processing
Recoveries
(Cu)
|
Processing
Recoveries
(Co)
|
KTO
|
5% to 10%
|
5%
|
5%
|
1.50%
|
76.2%
|
65%
|
KOV
|
8%
|
5%
|
0%
|
0.65%
|
85%
|
65%
|
T17
Underground
|
8%
|
8%
|
8%
|
1.20%
|
85%
|
65%
|
T17 Open
Pit
|
Converted to
underground
|
Mashamba
East
|
7.9%
|
5%
|
0%
|
0.65%
|
85%
|
65%
|
SOURCE Katanga Mining Limited