ZUG, Switzerland, Jan. 31, 2019 /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, 2018.
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)
decreased by 7.9 million tonnes since December 31, 2017, and inferred mineral resource
decreased by 2.9 million tonnes since December 31, 2017, attributable to depletion due
to mining activities in 2018.
- 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 2018.
- A reconciliation table comparing the 2017 and 2018 mineral
resource estimates is set out in Annexure A.
Key Updates: Ore Reserves
- The result of the December 31,
2018 ore reserve estimate is a net decrease of 5.5 million
tonnes of ore reserves since December 31,
2017, which is attributable to depletion due to mining
activities in 2018.
- A reconciliation table comparing the 2017 and 2018 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, 2018
Ore
Reserves
|
Mt
|
%TCu
|
%TCo
|
Proved
|
8.7
|
3.56
|
0.55
|
Probable
|
124.0
|
3.15
|
0.51
|
Proved &
Probable
|
132.7
|
3.18
|
0.52
|
|
|
|
|
Mineral
Resources
|
|
|
|
Measured
|
16.3
|
3.58
|
0.57
|
Indicated
|
259.3
|
3.64
|
0.54
|
Measured &
Indicated
|
275.6
|
3.64
|
0.54
|
Inferred
|
164.9
|
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, 2018
Ore
Reserves
|
Mt
|
%TCu
|
%TCo
|
KTO
|
26.6
|
3.40
|
0.54
|
Mashamba East Open
Pit
|
31.6
|
2.15
|
0.60
|
T-17
Underground
|
11.3
|
3.65
|
0.62
|
KOV Open
Pit
|
57.5
|
3.72
|
0.48
|
KITD Tailings (KCC
PE525)
|
2.8
|
1.42
|
0.16
|
KITD Tailings (GCM
PE8841)
|
2.9
|
1.45
|
0.17
|
TOTAL
|
132.7
|
3.18
|
0.52
|
KATANGA MINING LIMITED
MEASURED AND INDICATED MINERAL RESOURCES 1, 2, 3, 4, 5, 6, 8,
9
as at December 31, 2018
Measured and
Indicated Mineral Resources
|
Mt
|
%TCu
|
%TCo
|
KTO
|
77.7
|
3.92
|
0.48
|
Mashamba East Open
Pit
|
57.8
|
1.72
|
0.63
|
T-17 Open Pit/T-17
Underground
|
13.6
|
3.89
|
0.61
|
KOV Open Pit/KOV
Underground/KTE Underground
|
106.8
|
4.80
|
0.53
|
Kananga
Mine
|
4.1
|
1.61
|
0.79
|
Tilwezembe Open
Pit
|
9.5
|
1.89
|
0.60
|
KITD
Tailings
|
6.1
|
1.44
|
0.17
|
TOTAL
|
275.6
|
3.64
|
0.54
|
KATANGA MINING LIMITED
INFERRED MINERAL RESOURCES 1, 2, 3, 4, 5, 6, 8,
9
as at December 31, 2018
Inferred Mineral
Resources
|
Mt
|
%TCu
|
%TCo
|
KTO
|
48.4
|
3.83
|
0.38
|
Mashamba East Open
Pit
|
15.9
|
2.72
|
0.51
|
T-17 Open Pit/T-17
Underground
|
5.2
|
4.21
|
0.98
|
KOV Open Pit/KOV
Underground/KTE Underground
|
77.6
|
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
|
164.9
|
3.78
|
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 $60,000
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 validation has also been performed as a part of Company's
standard peer review procedure.
- The total KITD Reserve of 5.7 Mt resides on lease boundaries of
KCC's operating permit PE525 and Gécamines operating permit
PE8841. KCC has the legal right to mine the tailings
discharged from its KTC operations as per the provisions of the
joint venture agreement concluded with Gécamines.
Qualified Person and Technical Report
This press
release was prepared under the supervision of Mr. Tahir Usmani, P.Eng, APEGA, Chief Mine Planning
Engineer 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, 2018 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 KCC 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 and the
Power Project (as defined in the Annual Information Form of the
Company for the year ended December 31,
2017 dated April 2, 2018);
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, 2018 and
2017
|
Classification
|
Project
Area
|
2018
|
2017
|
Variance
|
Mt
|
%TCu
|
%TCo
|
Mt
|
%TCu
|
%TCo
|
Mt
|
Measured
|
KTO
|
12.1
|
3.90
|
0.59
|
12.2
|
3.90
|
0.59
|
(0.1)
|
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
|
16.3
|
3.58
|
0.57
|
16.4
|
3.58
|
0.57
|
(0.1)
|
Indicated
|
KTO
|
65.6
|
3.92
|
0.46
|
65.9
|
3.92
|
0.46
|
(0.3)
|
Mashamba East Open
Pit
|
57.8
|
1.72
|
0.63
|
60.0
|
1.68
|
0.62
|
(2.2)
|
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
|
106.8
|
4.8
|
0.53
|
110.4
|
4.75
|
0.53
|
(3.6)
|
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
|
6.1
|
1.44
|
0.17
|
7.8
|
1.49
|
0.16
|
(1.7)
|
Subtotal
|
259.3
|
3.64
|
0.54
|
267.1
|
3.60
|
0.53
|
(7.8)
|
Measured and
Indicated
|
KTO
|
77.7
|
3.92
|
0.48
|
78.1
|
3.92
|
0.48
|
(0.4)
|
Mashamba East Open
Pit
|
57.8
|
1.72
|
0.63
|
60.0
|
1.68
|
0.62
|
(2.2)
|
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
|
106.8
|
4.80
|
0.53
|
110.4
|
4.75
|
0.53
|
(3.6)
|
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
|
6.1
|
1.44
|
0.17
|
7.8
|
1.49
|
0.16
|
(1.7)
|
TOTAL
|
275.6
|
3.64
|
0.54
|
283.5
|
3.60
|
0.54
|
(7.9)
|
Inferred
|
KTO
|
48.4
|
3.83
|
0.38
|
48.5
|
3.83
|
0.38
|
(0.1)
|
Mashamba East Open
Pit
|
15.9
|
2.72
|
0.51
|
18.3
|
2.85
|
0.47
|
(2.4)
|
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
|
77.6
|
4.40
|
0.38
|
78.0
|
4.40
|
0.38
|
(0.4)
|
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
|
164.9
|
3.78
|
0.44
|
167.8
|
3.79
|
0.44
|
(2.9)
|
Notes: See the footnotes on page 3-4 of this press release.
Annexure B
Katanga Mining Limited Ore Reserve Reconciliation as at
December 31, 2018 and 2017
Mining
operation
|
2018 Reserve
Estimate
|
2017 Reserve
Estimate
|
Variance
|
Mt
|
%TCu
|
%TCo
|
Mt
|
%TCu
|
%TCo
|
Mt
|
KTO
|
26.6
|
3.40
|
0.54
|
26.9
|
3.40
|
0.54
|
-0.3
|
T-17
Underground
|
11.3
|
3.65
|
0.62
|
11.3
|
3.65
|
0.62
|
0.0
|
Mashamba East Open
pit
|
31.6
|
2.15
|
0.60
|
32.1
|
2.13
|
0.60
|
-0.5
|
KOV Open
Pit
|
57.5
|
3.72
|
0.48
|
60.5
|
3.70
|
0.48
|
-3.0
|
KITD Tailings (KCC
PE525)
|
2.8
|
1.42
|
0.16
|
4.4
|
1.51
|
0.16
|
-1.6
|
KITD Tailings (GCM
PE8841)
|
2.9
|
1.45
|
0.17
|
2.9
|
1.46
|
0.17
|
0.0
|
Total
|
132.7
|
3.18
|
0.52
|
138.1
|
3.15
|
0.51
|
-5.5
|
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%
|
Mashamba East Open
Pit
|
7.9%
|
5%
|
0%
|
0.65%
|
85%
|
65%
|
SOURCE Katanga Mining Limited