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Conculsions
Simberi will have to go back to basic principles in order to update the overall feasibility study for both the tailings and hard rock resources. Consideration should be given to the rationale for developing the tailings first and then switching to open pit mining when the tailings are exhausted. Other simultaneous, consecutive or overlapping development scenarios are possible that might be more efficient for current expected economic conditions. MPH concludes that at least a preliminary appraisal of the various development scheduling models is prudent at this time.
| Resources |
Tonnes
(mm) |
Cu% |
Co% |
Contained Copper
(million lbs) |
Contained
Cobalt
(million lbs) |
Tailings
(Indicated) |
18.4 |
1.22 |
0.15 |
494.7 |
60.8 |
Hard Rock
(Inferred) |
11.3 |
3.25 |
0.20 |
809.4 |
49.8 |
MPH concludes that the preliminary DCF model shows robust profitability for the stand-alone Kakanda tailings project, even at a high 20% discount rate. If verified the addition of the possibly higher grade tailings deposited since 1997 would extend the tailings project life as well as significantly improve the economics. Also if verified, the open-pit mineable inferred resource of 11.3 million tonnes @ 3.25% TCu and 0.20% TCo with a stripping ratio of approximately 8.8:1 at the Kakanda North Pit is expected to have a further major positive impact on the economics.
MPH concludes that the Kakanda Copper Cobalt Property represents a good opportunity to develop a mining operation in a world class copper-cobalt producing region. Although the DRC has a long history of colonial occupation and civil conflict, recent general elections and international efforts have reduced its instability and may permit it to restore its status as an important mineral producer.
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