ZUG, Switzerland, May 3, 2017 /CNW/ - Katanga Mining
Limited (TSX: KAT) ("Katanga" or the
"Company") today announces its 2017 first quarter production
results and date for release of 2017 first quarter financial
results.
Highlights during the three months ended March 31, 2017, and Outlook
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Three months
ended
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Mar 31,
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Dec 31,
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Mar 31,
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2017
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2016
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2016
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Mining
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Waste
mined
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tonnes
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7,547,604
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2,152,986
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1,142,672
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Ore mined
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tonnes
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-
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Average copper
grade
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%
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Contained copper in
ore mined
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tonnes
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Processing
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Ore milled
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tonnes
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-
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Finished copper metal
and concentrate
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tonnes
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-
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-
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Finished
cobalt
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tonnes
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-
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-
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Ongoing suspension of production
- On September 11, 2015, the
Company announced the decision to suspend the processing of copper
and cobalt during the construction phase of the Whole Ore Leach
Project ("WOL Project"). The suspension continued through the first
quarter of 2017 and production is not expected to resume until the
WOL Project is commissioned, which is expected to commence in Q4
2017.
- Mining operations continued during 2017 and 2016 at KOV and
Mashamba East Open Pits with a focus on waste mining.
Mining
- Waste mined in Q1 2017 was 5,394,618 tonnes (250.6%) higher
than in Q4 2016 and 6,404,932 tonnes (560.5%) higher than in Q1
2016 due to increased waste mining activities in 2017 in view of
the commissioning of the WOL Project, which is expected to commence
in Q4 2017;
- There was no ore mined in Q1 2017 due to the revised waste
mining plan (pre-strip) in the open pits which was put in place
following the suspension of copper and cobalt processing at the end
of Q3 2015. The revised waste mining plan aims to secure
sufficient ore availability for processing once the suspension of
copper and cobalt processing ends, while minimizing costs during
the suspension period; and
- In Q1 2017, the Company commissioned:
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- 4 CAT 793 haul trucks at the KOV Open Pit mine.
Processing
- Due to the plant shutdown, there was no copper or cobalt metal
produced for sale in Q1 2017.
- During Q1 2017 work continued on the WOL Project:
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- Significant progress was made on the Structural, Mechanical,
Platework and Piping (SMPP) activities on the acid tanks, Preleach,
Leach and CCD trains. The SCADA and control system programming is
well advanced and the final design packages are expected to be
completed in Q2 2017;
- Related capital expenditures amounted to $31.1 million in Q1 2017, which related to SMPP
activities and procurement of various long lead time items (Q4 2016
- $16.7 million; Q1 2016 -
$35.1 million); and
- Concurrent with the construction of the WOL Project plant and
infrastructure, the current Life of Mine
Plan continues to be optimized to ensure the appropriate
blend will be supplied to the WOL Project process when complete, in
order to maximize copper and cobalt recovery and to minimize
operating cost per unit.
Outlook
- During Q2 2017:
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- Open pit mining operations are expected to continue with a
focus on waste mining following the revised mine plan, which aims
to secure sufficient ore availability for processing once the
suspension of copper and cobalt processing ends, while minimizing
costs during the suspension period;
- High pressure backfill operations at KTO are expected to
continue to ensure underground stability;
- Care and maintenance activities in the underground mine, KTC
and Luilu are expected to continue;
- Work is expected to continue on construction of the WOL Project
according to the defined project plan. Commissioning of the WOL
Project is expected to commence in Q4 2017; and
- Various initiatives relating to cost reductions, consumable
inventory reductions, staff training and process improvements are
expected to continue to be developed and implemented.
The Company expects to release its 2017 first quarter financial
results on or about May 11, 2017.
This press release was prepared under the supervision of
Tim Henderson, Technical Consultant
and Director of 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.
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, the ongoing suspension of copper and cobalt processing,
the resumption of production following the commissioning of the WOL
Project, Open Pit waste mining activities, remediation activities,
high-pressure backfill operations, care and maintenance activities,
ongoing design optimization, construction and commissioning of the
WOL Project, and other cost-base reduction initiatives, consumable
inventory reductions, staff training and process improvements.
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 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, 2016);
that new equipment performs to expectations; the exchange
rate between the US dollar, South African rand, British pounds,
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, operating expenses 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 unforeseen delays or changes to the WOL Project;
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.
SOURCE Katanga Mining Limited