Maravi

Copper mine to open in Mkushi

Copper mine to open in Mkushi
By Chiwoyu Sinyangwe
Friday July 11, 2008 [04:00]

MKUSHI is set for a copper mine as CGA Mining Limited and African Eagle Resources plc (AFE) plan to invest about US$60.9 million in the development of an open-pit mine. According to the Environmental Impact Assessment (EIS) submitted to the Environmental Council of Zambia, the mine was expected to have an initial life span of six years and that studies were under way to extend the life span of the mine.

According to the plan, the mine was expected to have a copper ore output of about 1.6 million tonnes per annum.

The EIS stated that the resource drilling model used for the study last year suggested a resource of some 10.7 million tonnes at an average copper grade of 1.11 per cent and that the resource translated into a potential mineable reserve of 9.13 million tonnes at an insitu grade of 1.08 per cent copper.

“It was considered that open pit mining methods would be most appropriate for the initial mining operations,” the EIS stated. “The mine layout was designed such that future extensions, either along strike and at depth, or both, would not be prevented or precluded.

Mining throughput of 1.6 million tonnes per annum was adopted for this study, giving a pit life of just over 6 years based on the initial estimations. Ongoing exploration activity and resource development studies are considered to have the potential to extend the mine life to at least 8 years and further work is expected to increase the mine life beyond that.”

Under the heads agreement, Mkushi mine would be called Mkushi Copper Joint Venture Limited.

CGA acquired a 51 per cent interest while AFE through its wholly owned subsidiary Katanga Resources Limited retained a 49 per cent interest in the project.

CGA is responsible for funding all work required for the completion of a Bankable Feasibility Study, while AFE would manage exploration initiatives outside the initial development zones, with exploration funding proportional to the percentage interest held by each party in the project.

Labels: COPPER

posted by MrK @ 3:45 AM