Baker Steel Resources Trust Ltd Ivanplats
August 07 2013 - 2:00AM
RNS Non-Regulatory
TIDMBSRT
Baker Steel Resources Trust Ltd
07 August 2013
BAKER STEEL RESOURCES TRUST LIMITED
(Incorporated in Guernsey with registered number 51576 under the
provisions of The Companies (Guernsey) Law, 2008 as amended)
7 August 2013
Ivanplats announces lower initial capital cost and significant
smelting capacity are among key elements for a refocused
development study for its Kamoa copper discovery
Baker Steel Resources Trust Limited (the "Company") notes that
key elements have been established for a new study to help set the
stage for the cost-effective development of a mine and processing
plant at the Kamoa copper discovery in the Democratic Republic of
Congo announced yesterday by Ivanplats Limited ("Ivanplats"), the
Company's largest investment:
The refocused Kamoa development study, to be prepared in
conformity with the requirements set out in Canada's National
Instrument 43-101, is expected to result in a declaration of the
first mineral reserves at Kamoa and to report on the establishment
of an appropriately phased approach to achieving first production
and progressive expansion of the Kamoa Project.
Ivanplats is proposing two principal phases of development:
-- The first phase of mining would target production of
high-grade copper mineralisation from shallow, underground
resources to yield a high-value concentrate. Initial mill feed
would come from Kansoko Sud and lead into the Centrale area of
Kamoa's gently-dipping mineralised zones that collectively contain
estimated Indicated Resources of 224 million tonnes grading 3.85%
copper (at a 3.0% copper cut-off and a minimum 3.0-metre vertical
mining thickness). Resource details are contained in the March 2013
Kamoa Technical Report, available at www.sedar.com.
-- The planned second phase would entail a major expansion of
the mine and mill and construction of a large smelter, supported by
the full extent of the Kamoa resources.
Robert Friedland, Chairman of Ivanplats, said the revised mining
scenario was being developed to deliver the best balance of a lower
initial capital cost and shortest time to first production, while
maintaining Ivanplats' commitment and momentum towards a major
mine, mill and smelting operation.
"This scenario, if confirmed by current studies and financial
modelling, could provide for a 2017 start of copper production from
Kamoa's first phase of development, subject to available
financing."
A recommended initial production rate will form part of the
development study being prepared by Hatch Ltd., of South Africa,
one of the world's leading mining engineering consultants.
Projected to be completed in the second half of 2014, the study
will be based on development of the estimated mineral resources
described in the March 2013 Kamoa Technical Report, excluding
Inferred Resources.
In addition, an updated preliminary economic assessment of the
preferred development scenario now underway is expected to be
finished in the fourth quarter of this year.
Building of mine-access decline at Kamoa planned to begin early
next year
Chief Executive Officer Lars-Eric Johansson said that excavation
of the first mine-access decline at Kamoa is expected to begin
early next year. The decline would provide machinery with access to
the high-grade, near-surface copper resources that would be
targeted for the planned first phase of production using the
room-and-pillar mining method.
"To get into production as quickly as possible, our current
strategy is to start with a smaller, simpler and more
capital-efficient mine. Given the Kamoa Project's significant
estimated Mineral Resource tonnage and its large lateral extent, we
continue to believe that potential mining rates of up to 20 million
tonnes per annum eventually could be achieved by operating in
multiple mining areas and completing a series of production
expansions to maximize the mine's capacity."
Construction of smelter an integral part of development plan
Mr. Johansson said Ivanplats is committed to building a smelter
that will have the capacity to serve other mines in the Katanga
district, create hundreds of additional skilled jobs as part of the
project's major economic stimulus to the region and support the
government's policy of adding in-country value to mineral
production.
Timing of the smelter construction is dependent, in part, on the
provision of additional generating capacity within the DRC's power
supply grid.
Discussions well advanced with potential strategic partners
Mr. Friedland said that confidential discussions and the conduct
of due diligence are well advanced with a selected number of
leading international private and state-owned mining companies that
have expressed interest in potential participation in the Kamoa
Project. Ongoing talks could lead to the formation of a significant
strategic partnership or syndicate for continued exploration and
development of the Kamoa discovery and associated
infrastructure.
The Company holds approximately 1.7% of the shares of Ivanplats
which was equivalent to 16.6% of the Company's NAV at 31 July 2013.
The full announcement by Ivanplats is available on its website:
www.ivanplats.com
Further details of the Company and its investments are available
on the Company's website www.bakersteelresourcestrust.com
Enquiries:
Baker Steel Resources Trust Limited +44 20 7389 8237
Francis Johnstone
Trevor Steel
RBC Capital Markets +44 20 7653 4000
Martin Eales
Winterflood Investment Trusts +44 20 3100 0250
James Moseley
Pelham Bell Pottinger
Lorna Spears +44 20 7861 3883
Joanna Boon +44 20 7861 3867
This information is provided by RNS
The company news service from the London Stock Exchange
END
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