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Introduction |
Geology |
Resources and Reserves |
Permitting |
Mining |
Processing |
Power |
Water |
Marketing |
Further Near-Mine Development Potential
Introduction During the second quarter of 2007, with development of the mine well underway, African Copper decided to rename its 100% owned "Dukwe Mining Project" the Mowana Mine, after the spectacular Boab tree on the mine's property. "Mowana" means Boab in the local language, Setswana. The Mowana mine is located close to Botswana's second largest city, Francistown, in the north-eastern part of the country, in an area which has been mined for the past 400 years. Mowana is currently Botswana's only pure copper mine. Geology The Mowana Mine lies within a PaleoProterozoic sedimentary basin of the southern African Shield. The Dukwe deposit is an epigenetic quartz-carbonate vein hosted copper deposit. The mineralization lies within a near-vertically dipping, extensive belt of the early Proterozoic Matsitama Supergroup metasedimentary rocks. Enclosed by sheared granite-gneisses and granites within the broader structural domain of the Bushman lineament. The primary sulphide consists of chalcopyrite mineralization within a complex assemblage of quartz-calcite veins, breccias and carbonaceous calcareous sediments developed within a limestone horizon of the Matsitama Group sediments. The near surface parts of this zone have been enriched in a supergene blanket, while the parts closest to surface have been oxidized with the development of copper-carbonates and copper-oxide minerals. The near surface tenor of the orebody at Mowana is characterized by the mixed nature of oxide and supergene enrichment extending from surface to a maximum depth of approximately 70m. With increasing depth supergene chalcocite mineralization continues and dominates with a nominal transition to Chalcopyrite-bearing hypogene mineralization at around 150m below surface. Resources and Reserves Mowana Mine Resources: Measured + Indicated + Inferred
(effective date; 26 November 2007)
Note: The key assumptions, parameters and methods used to estimate the mineral resources are the same as set out in the Company's 14 June 2007 press release and CCIC's 14 June 2007 technical report, Caracle Creek International Consulting Inc., "Dukwe Copper Project", June 14, 2007 (PDF, 3.1 MB). RSV has reported, in accordance with SAMREC, JORC and NI 43-101 Standards that the Mowana Mine copper mineral reserves and resources contained within the engineered pit designs are as follows: Mowana Mine Open-pit Proven and Probable Reserves and In-Pit Inferred Resources
(effective date; 26 November 2007)
Note: Reserves are based on copper prices on the prevailing forward curve for copper, a 0.1% mining cut-off and include 95% extraction and 105% dilution, and utilize estimated metallurgical recoveries during first two years of 44% and during last five years of 64%, based on the Company's press release dated Nov 26, 2007. Off-site costs of US$65/t treatment charge and 6.5¢ per pound refining charge and US$100/t transport were utilized. Botswana tax of 25% and a mineral royalty of 3% are included. Additional details are included in the RSV Global, "Mowana Mine Botswana"; November 26, 2007 (PDF, 4.2 MB). Note: The following is a glossary of commonly used mining and geological terms and phrases that may be of assistance. Download Glossary of Technical Terms (PDF, 31 KB) Permitting African Copper has a 25-year mining licence, valid from the end of 2006, and is subject to a 3% royalty payable to the Government of Botswana. Mining Moolmans Mining Botswana is under a five year contract for the open-pit mining at Mowana. Mining costs are based on contract prices with MMB, and on haulage distances, strip ratios and depths based on the practical pit designs. Mixed oxide-supergene and supergene ores comprise 35% and 45% respectively of the open-pit reserves, with the sulphide ore contributing the remaining 20%. Production from the open pit will come mainly from this material, with the current life of mine between 7 -- 9 years. Processing The process plant at Mowana is standard flotation process technology and has been designed to produce saleable copper concentrates from the treatment of approximately 1 million tonnes per annum of oxide, supergene and sulphide ores. The process plant has two floatation circuits. Sulphide minerals are separated first, and tailings from the sulphide roughers are sent to an oxide circuit. Most other mineral species are recovered in the oxide flotation process. Concentrates are filtered to recover excess process water, as are tailings. Tailings will be dry stacked. Water recovered in the dewatering stages will be recycled to the various parts of the plant as process water. Power Power is supplied via a 132kV overhead line from a switching station on the national grid, 19km west of the site. Water Water for the entire plant is supplied from well fields approximately 13.5km north of the site and there is a 6,000 m3 dam, which will allow for 3 days retention time to enable ore processing in case of borehole failure. Marketing In January 2008, African Copper signed a five year, renewable "Take or Pay" off-take agreement with MRI Trading for 100% of all copper products shipped from the mine. Treatment and refining charges are based on annual global benchmarking. As part of the off-take agreement, MRI invested US$10 million and have a 5% holding in African Copper. Further Near-Mine Development Potential African Copper is assessing a number of near-mine development opportunities and hopes to update investors throughout the remainder of 2008 and 2009: 1. Northern extension to Mowana open pit 2. Southern extension to Mowana open pit 3. Erasmus extension to open pittable reserves 4. Underground sustainability and expansion potential 5. Thakudu | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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