AMN - DRC: JV proposed for cobalt-copper tailings

Cape Lambert Resources has entered into an agreement with Congolese company Paragon Mining SARL to form a 50/50 joint venture to develop the Kipushi cobalt-copper tailings project, the Kasombo copper-cobalt projects and operate the Kipushi processing plant in the Democratic Republic of Congo (DRC).

On execution of the Binding Heads of Agreement and proposed JV, Cape Lambert executive chairman Tony Sage said: “Cape Lambert has built a successful track record of identifying commodities and projects at the right time. By applying our technical, financial and marketing support we can add immediate value to these projects and return significant value to the company.

“We believe cobalt, as a commodity, has an extremely positive future and with this transaction and the proposed joint venture, we believe we are well placed to benefit from significant demand and price increases in this commodity sector.

“This agreement paves the way for a JV that will benefit from advanced, highly attractive and prospective cobalt and copper projects, and that will be supported by a well-credentialed joint in-country and Australian based technical and operation team that includes geologists, mining engineers, process engineers, local logistics, government and community relations professionals.

“With our strong combined track record of project delivery and a corporate team highly capable of accessing sufficient capital to advance the near-term production assets, we look forward to our partnership with Paragon.”

The proposed JV will initially include the Kipushi cobalt tailings project and Kasombo copper-cobalt project. Both are on granted mining licences in the Katanga Copper Belt, the location of some of the world’s largest and highest grade copper and cobalt mines.

The proposed JV will also operate the fully constructed and commissioned Kipushi processing plant to process the Kipushi tailings and treat additional hard rock cobalt and copper material. The Kipushi plant commissioned in 2016, comprises a flotation plant designed to annually produce 4000 tonnes of cobalt, 10,000 tonnes of copper and 2000 tonnes of zinc in concentrate from the Kipushi tailings.

The projects are 25km from the DRC’s second largest city, Lubumbashi, that is accessed by a well maintained sealed road. The projects benefit from excellent, established infrastructure as Lubumbashi is the main service centre for the cobalt and copper mining industry in Haut- Katanga Province.

Paragon has secured the right to mine the Kipushi tailings under an existing agreement with State-owned copper and cobalt mining company, La Générale des Carrières et des Mines(Gecamines).

Under this agreement, Paragon holds a 70% interest in Kipushi and will increase this to 80% as a condition precedent to the transaction.

The Kipushi tailings are from Gecamines’ nearby flotation plant that treated ore from the Lwiswishi open pit cobalt-copper mine. That mine, which was operated under a joint venture between Forrest International Group, OM Group and Gecamines, is reported to have produced 4500 tonnes/year of cobalt in the mid-1990s and accounted for as much as 10% of global supply, with some 4.7 million tonnes of tailings deposited into the Kipushi tails dam with cobalt grades of 0.4% to 0.7% and copper grades of 1.0% to 1.25% reported in the tailings.

Upon successful completion of its due diligence and the establishment of the JV, Cape Lambert will allocate its technical and financial resources to complete further exploration and feasibility study work on Kasombo in order to meet the JV objectives of completing a feasibility study within 18 months.

www.capelam.com.au

News courtesy of International Mining