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Katanga Mining announces ore reserves and mineral resources

March 4, 2013

ZUG, SWITZERLAND, March 4, 2013 /CNW/ – Katanga Mining Limited (TSX: KAT) (“Katanga” or the “Company“) is pleased to announce its ore reserve and mineral resource estimates
as at December 31, 2012.

Key Updates: Mineral Resources

        --  Overall, the measured and indicated mineral resource for Kamoto
            Copper Company ("KCC") (in which the Company has a 75%
            interest) decreased by 6.0 million tonnes.
      o Changes in the measured mineral resource for KTO and KOV Open Pit
        is a decrease of 1.7 million tonnes each at KTO and KOV Open Pit
        based on the depletion of the mineral resource due to mining in
        2012.
      o Changes in the indicated mineral resource for KOV Open Pit is a
        decrease of 2.6 million tonnes based on the depletion of the
        mineral resource due to mining in 2012.
      o Changes in the inferred mineral resource for KOV Open Pit is a
        decrease of 0.1 million tonnes based on the depletion of the
        mineral resource due to mining in 2012.
      o The RSC lithological component of the T-17 Open Pit below planned
        pit-bottom (8.9 million tonnes) was excluded from the resource
        statement to conform to the reporting of the mineral resources of
        KTO, where the RSC lithological component is excluded due to mining
        method limitations in the underground mines. All of these mineral
        resources are inferred mineral resources.
        --  There are no changes in the mineral resources reported for
            Mashamba East Open Pit, T-17 Open Pit, Kananga Mine and
            Tilwezembe Open Pit, as mining was not undertaken in these
            areas in 2012 and no geological work was done on these areas in
            2012.
        --  A reconciliation table comparing the 2011 and 2012 mineral
            resource estimates is set out in Annexure A.

Key Updates: Ore Reserves

        --  The outcome of the December 31, 2012 ore reserve estimate is a
            decrease of 5.1 million tonnes of ore reserves, based on 5.5
            million tonnes being mined in 2012 and minor, short-term ore
            definition changes and pit design adjustments undertaken in
            2012.
        --  A reconciliation table comparing the 2011 and 2012 ore reserves
            is set out in Annexure Bandthe key mining parameters which
            inform the ore reserve estimates are set outin Annexure C

KATANGA MINING LIMITED
CONSOLIDATED ORE RESERVES AND MINERAL RESOURCES (1, 2, 3, 4, 5, 6, 7, 8, 9)
as at December 31, 2012

     ____________________________________
    |Ore Reserves        |  Mt |%TCu|%Tco|
    |____________________|_____|____|____|
    |Proved              |11.2 |3.40|0.50|
    |____________________|_____|____|____|
    |Probable            |79.7 |4.29|0.44|
    |____________________|_____|____|____|
    |Proved & Probable   |90.9 |4.18|0.45|
    |____________________|_____|____|____|
    |                    |     |    |    |
    |____________________|_____|____|____|
    |Mineral Resources   |     |    |    |
    |____________________|_____|____|____|
    |Measured            |37.1 |4.14|0.55|
    |____________________|_____|____|____|
    |Indicated           |245.5|3.99|0.45|
    |____________________|_____|____|____|
    |Measured & Indicated|282.6|4.01|0.46|
    |____________________|_____|____|____|
    |Inferred            |169.0|2.42|0.31|
    |____________________|_____|____|____|

More detailed ore reserve and mineral resource estimates are as follows:

KATANGA MINING LIMITED
PROVED AND PROBABLE ORE RESERVES (1, 2, 5, 6, 7, 9)
as at December 31, 2012

     _____________________________________
    |Ore Reserves          | Mt |%TCu|%TCo|
    |______________________|____|____|____|
    |KTO                   |30.6|3.59|0.52|
    |______________________|____|____|____|
    |T-17 Open Pit         |2.5 |3.51|0.56|
    |______________________|____|____|____|
    |Mashamba East Open Pit|5.9 |3.00|0.36|
    |______________________|____|____|____|
    |KOV Open Pit          |51.9|4.76|0.42|
    |______________________|____|____|____|
    |TOTAL                 |90.9|4.18|0.45|
    |______________________|____|____|____|

KATANGA MINING LIMITED
MEASURED AND INDICATED MINERAL RESOURCES (1, 2, 3, 4, 5, 6, 8, 9)
as at December 31, 2012

     ________________________________________________________
    |Measured and Indicated Mineral Resources|  Mt |%TCu|%TCo|
    |________________________________________|_____|____|____|
    |KTO                                     |63.3 |4.58|0.58|
    |________________________________________|_____|____|____|
    |T-17 Open Pit                           |13.9 |3.88|0.61|
    |________________________________________|_____|____|____|
    |Mashamba East Open Pit                  |75.0 |1.80|0.38|
    |________________________________________|_____|____|____|
    |KOV Open Pit                            |116.8|5.39|0.42|
    |________________________________________|_____|____|____|
    |Kananga Mine                            | 4.1 |1.61|0.79|
    |________________________________________|_____|____|____|
    |Tilwezembe Open Pit                     | 9.5 |1.89|0.60|
    |________________________________________|_____|____|____|
    |TOTAL                                   |282.6|4.01|0.46|
    |________________________________________|_____|____|____|

KATANGA MINING LIMITED
INFERRED MINERAL RESOURCES (1, 2, 3, 4, 5, 6, 8, 9)
as at December 31, 2012

     __________________________________________
    |Inferred Mineral Resources|  Mt |%TCu|%TCo|
    |__________________________|_____|____|____|
    |KTO                       |11.0 |5.00|0.59|
    |__________________________|_____|____|____|
    |T-17 Open Pit             | 5.2 |4.21|0.98|
    |__________________________|_____|____|____|
    |Mashamba East Open Pit    |65.3 |0.76|0.10|
    |__________________________|_____|____|____|
    |KOV Open Pit              |69.7 |3.58|0.32|
    |__________________________|_____|____|____|
    |Kananga Mine              | 4.0 |2.00|0.98|
    |__________________________|_____|____|____|
    |Tilwezembe Open Pit       |13.8 |1.75|0.60|
    |__________________________|_____|____|____|
    |TOTAL                     |169.0|2.42|0.31|
    |__________________________|_____|____|____|

Notes:

      1. The ore reserve and mineral resource estimates have been prepared
         in accordance with the classification criteria of the Australasian
         Code for Reporting of Exploration Results, Mineral Resources and
         Ore Reserves prepared by the Joint Ore Reserves Committee of the
         Australasian Institute of Mining and Metallurgy, Australian
         Institute of Geoscientists and Minerals Council of Australia, as
         amended ("JORC Code").  If the definitions and classification
         standards adopted by the Canadian Securities Administrators'
         National Instrument 43-101 Standards of Disclosure for Mineral
         Projects ("NI 43-101") had been used instead of those of the JORC
         Code, the estimates of mineral reserves and mineral resources
         would be substantially similar to the estimates of ore reserves
         and mineral resources presented here.
      2. The mineral resource estimates have been prepared by, or under the
         supervision of, Cornelius Willem Ries, PriSciNat and the ore
         reserve estimates have been prepared by, or under the supervision
         of, Jacobus Lotheringen, PrEng each of Golder Associates Africa
         Pty Ltd, who are each a qualified person under NI 43-101.
      3. Mineral resources are inclusive of ore reserves.
      4. Mineral resources which are not ore reserves do not have
         demonstrated economic viability.
      5. For KTO, the ore reserve and mineral resource estimates are for
         KCC's entire interest in such ore reserves and mineral resources,
         whereas the Company owns 75% of KCC.  La Generale des Carrieres et
         des Mines and La Société Immobilière du Congo, state-owned mining
         companies in the Democratic Republic of Congo, own the remaining
         25% of KCC.
      6. Numbers may not add due to rounding.
      7. Unless otherwise noted, the Company's ore reserves are estimated
         using appropriate cut-off grades based on an assumed long term
         price of $4 790 per tonne of copper and long term price of $25 228
         per tonne of cobalt. Ore reserves are estimated using appropriate
         process recoveries, operating costs and mine plans that are unique
         to each property and include estimated allowances for dilution and
         mining recovery.
      8. Unless otherwise noted, the Company's mineral resources are
         estimated using appropriate lithological interpretations, grade
         compositing and grade estimation techniques for copper and cobalt.
      9. The Company's normal data verification procedures have been used
         in collecting, compiling, interpreting and processing the data
         used to estimate ore reserves and mineral resources. Independent
         data verification has not been performed. However the data has
         been independently validated.

Qualified Person and Technical Report
This press release was prepared under the supervision of Tim Henderson,
Technical Consultant, Katanga and a ‘qualified person’ as such term is
defined in NI 43-101. Mr. Henderson has reviewed and approved the
contents of this press release.

The Company’s technical report entitled “An Independent Technical Report
on the Material Assets of Katanga Mining Limited, Katanga Province,
Democratic Republic of Congo” dated March 30, 2012 prepared by Golder
Associates Africa (Pty) Ltd under the supervision of Mr. Willem van der
Schyff as the “qualified person” is in compliance with NI 43-101 is
filed under the Company’s profile on SEDAR at www.sedar.com.

Cautionary Note to US Investors concerning estimates of Measured,
Indicated and Inferred Mineral Resources

The above tables uses the terms “Measured, Indicated and Inferred
Mineral Resources” using the ore reserves and mineral resource
categories of the JORC Code.  We advise US investors that while these
terms are recognized and required by Canadian regulations, the US
Securities and Exchange Commission does not recognize them.  “Inferred
mineral resources” have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility.  It cannot be assumed that all or any part of inferred
mineral resources will ever be upgraded to a higher category.  In
accordance with Canadian rules, estimates of inferred mineral resources
cannot form the basis of feasibility or other economic studies.  US investors are cautioned not to assume that any part or all of the
inferred mineral resource exists, or is economically or legally
mineable.

About Katanga Mining Limited
Katanga Mining Limited operates a major mine complex in the Democratic
Republic of Congo producing refined copper and cobalt. The Company has
the potential to become Africa’s largest copper producer and the
world’s largest cobalt producer. Katanga is listed on The Toronto Stock
Exchange under the symbol KAT.

Forward Looking Statements
This press release may contain forward-looking statements, including
predictions, projections, and mineral reserve and mineral resource
estimates. Forward-looking statements include, but are not limited to,
ore reserve and mineral resource estimates.  Often, but not always,
forward-looking statements can be identified by the use of words such
as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or describes a “goal”, or
variation of such words and phrases or state that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved.

Forward-looking statements involve known and unknown risks, future
events, conditions, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different
from any future results, prediction, projection, forecast, performance
or achievements expressed or implied by the forward-looking statements.
Such factors include, among others, the actual results of current
exploration activities; actual results and interpretation of current
reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of
copper and cobalt; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the
completion of exploration, development or construction activities, as
well as those factors disclosed in the Company’s current annual
information form and other publicly filed documents.  Although Katanga
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements.

The Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information,
future events, or otherwise, except in accordance with applicable
securities laws.

Annexure A

     _____________________________________________________________________
    |  Katanga Mining Limited Mineral Resource Reconciliation at December |
    |                               31, 2012                              |
    |_____________________________________________________________________|
    |              |             |        2012   |        2011   |Variance|
    |Classification|Project Area |_______________|_______________|________|
    |              |             |  Mt |%TCu|%TCo|  Mt |%TCu|%TCo|    Mt  |
    |______________|_____________|_____|____|____|_____|____|____|________|
    |              |KTO          |30.4 |4.36|0.58|32.1 |4.33|0.58|  (1.7) |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Mashamba East| 0.0 |0.00|0.00| 0.0 |0.00|0.00|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |T-17 Open Pit| 4.5 |2.71|0.54| 4.5 |2.71|0.54|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |    Measured  |KOV Open Pit | 2.2 |4.07|0.22| 3.9 |4.25|0.22|  (1.7) |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Kananga Mine | 0.0 |0.00|0.00| 0.0 |0.00|0.00|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Tilwezembe   | 0.0 |0.00|0.00| 0.0 |0.00|0.00|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Subtotal     |37.1 |4.14|0.55|40.5 |4.14|0.54|  (3.4) |
    |______________|_____________|_____|____|____|_____|____|____|________|
    |              |KTO          |32.9 |4.78|0.58|32.9 |4.78|0.58|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Mashamba East|75.0 |1.80|0.38|75.0 |1.80|0.38|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |T-17 Open Pit| 9.4 |4.44|0.65| 9.4 |4.44|0.65|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |   Indicated  |KOV Open Pit |114.6|5.42|0.42|117.2|5.41|0.42|  (2.6) |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Kananga Mine | 4.1 |1.61|0.79| 4.1 |1.61|0.79|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Tilwezembe   | 9.5 |1.89|0.60| 9.5 |1.89|0.60|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Subtotal     |245.5|3.99|0.45|248.1|3.98|0.45|  (2.6) |
    |______________|_____________|_____|____|____|_____|____|____|________|
    |              |KTO          |63.3 |4.58|0.58|65.0 |4.48|0.57|  (1.7) |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Mashamba East|75.0 |1.80|0.38|75.0 |1.80|0.38|   0.0  |
    |              |  Open Pit   |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |T-17 Open Pit|13.9 |3.88|0.61|13.9 |3.88|0.61|   0.0  |
    | Measured and |_____________|_____|____|____|_____|____|____|________|
    |  Indicated   |KOV Open Pit |116.8|5.39|0.42|121.1|5.37|0.41|  (4.3) |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Kananga Mine | 4.1 |1.61|0.79| 4.1 |1.61|0.79|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Tilwezembe   | 9.5 |1.89|0.60| 9.5 |1.89|0.60|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |TOTAL        |282.6|4.01|0.46|288.6|4.00|0.46|  (6.0) |
    |______________|_____________|_____|____|____|_____|____|____|________|
    |              |KTO          |11.0 |5.00|0.59|11.0 |5.00|0.59|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Mashamba East|65.3 |0.76|0.10|65.3 |0.76|0.10|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |T-17 Open Pit| 5.2 |4.21|0.98| 5.2 |4.21|0.98|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |    Inferred  |KOV Open Pit |69.7 |3.58|0.32|69.8 |3.58|0.32|  (0.1) |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Kananga Mine | 4.0 |2.00|0.98| 4.0 |2.00|0.98|   0.0  |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |Tilwezembe   |13.8 |1.75|0.60|13.8 |1.75|0.60|   0.0  |
    |              |Open Pit     |     |    |    |     |    |    |        |
    |              |_____________|_____|____|____|_____|____|____|________|
    |              |TOTAL        |169.0|2.42|0.31|169.1|2.42|0.31|  (0.1) |
    |______________|_____________|_____|____|____|_____|____|____|________|

Note: The KTO indicated mineral resource reported in 2011 was
incorrectly reported in March 2012. The indicated mineral resources for
KTO should have reflected: 32.9Mt; 4.78%TCu; 0.58%TCo, which is
consistent with the reporting of the 2012 mineral resource.  The data
has therefore been corrected in the above table for the 2011 indicated
mineral resource for KTO.  See notes 1 to 6, 8 and 9 on page 3 of this
press release relating to mineral resource estimates.

Annexure B

Katanga Mining Limited Ore Reserve Reconciliation as at December 31,
2012

     __________________________________________________________________
    |Mining operation      |2012 Reserve Estimate|2011 Reserve Estimate|
    |                      |_____________________|_____________________|
    |                      | Mt |%TCu|     %TCo  | Mt |%TCu|     %TCo  |
    |______________________|____|____|___________|____|____|___________|
    |KTO                   |30.6|3.59|     0.52  |32.4|3.59|     0.52  |
    |______________________|____|____|___________|____|____|___________|
    |T-17 Underground      |0.9 |3.51|     0.57  |0.9 |3.51|     0.57  |
    |______________________|____|____|___________|____|____|___________|
    |T-17 Open Pit         |1.6 |3.52|     0.56  |1.6 |3.52|     0.56  |
    |______________________|____|____|___________|____|____|___________|
    |Mashamba East Open pit|5.9 |3.00|     0.36  |5.9 |3.00|     0.36  |
    |______________________|____|____|___________|____|____|___________|
    |KOV Open Pit          |51.9|4.76|     0.42  |55.1|4.74|     0.45  |
    |______________________|____|____|___________|____|____|___________|
    |Total                 |90.9|4.18|     0.45  |96.0|4.18|     0.47  |
    |______________________|____|____|___________|____|____|___________|

Notes: See notes 1, 2, 5 to 7 and 9 on page 3 of this press release
relating to ore reserve estimates.

The ore reserve estimate at KTO is qualified up to 2014. Appropriate
technical design and scheduling study is required to be completed to
enable an ore reserve estimate from 2014 due to the material and
strategic mine planning changes envisaged.  It must be considered that
the mining methods envisaged are more familiar to the mine and have a
higher overall extraction than the current strategy as reflected in the
ore reserves (based on the 2008 SRK study).  The impact of these
changes on the LOM Plan, mining infrastructure requirements and mining
operational costs requires appropriate technical study.

Annexure C

     ____________________________________________________
    |     Ore Reserve Estimation: Key Mining Parameters  |
    |____________________________________________________|
    |Reference Mining Costs (USD $/t)             | 2.40 |
    |_____________________________________________|______|
    |Reference Mining Processing (USD $/t)        |31.81 |
    |_____________________________________________|______|
    |Reference Mining Metal Price for Cu (USD $/t)|4,790 |
    |_____________________________________________|______|
    |Reference Mining Metal Price for Co (USD $/t)|25,228|
    |_____________________________________________|______|
     _____________________________________________________________________
    |Operation  | Mining  |Mining|Geological|Cut-off|Processing|Processing|
    |           |Dilutions| and  |  Losses  | Grade |Recoveries|Recoveries|
    |           |         |Pillar|          | (Cu)  |   (Cu)   |   (Co)   |
    |           |         |Losses|          |       |          |          |
    |___________|_________|______|__________|_______|__________|__________|
    |KTO        |4% to 13%|10% to| 3% to 5% | 0.60% |   90.5%  |   76.6%  |
    |           |         | 50%  |          |       |          |          |
    |___________|_________|______|__________|_______|__________|__________|
    |KOV        |     9%  |   1% |      5%  | 0.60% |     85%  |     65%  |
    |___________|_________|______|__________|_______|__________|__________|
    |T17        |5% to 10%|5% to |      5%  | 0.60% |     85%  |     65%  |
    |Underground|         | 35%  |          |       |          |          |
    |___________|_________|______|__________|_______|__________|__________|
    |T17        |    10%  |  20% |      5%  | 0.60% |     85%  |     65%  |
    |Extension  |         |      |          |       |          |          |
    |Open Pit   |         |      |          |       |          |          |
    |___________|_________|______|__________|_______|__________|__________|
    |Mashamba   |     9%  |  39% |      5%  | 0.60% |     85%  |     65%  |
    |East       |         |      |          |       |          |          |
    |___________|_________|______|__________|_______|__________|__________|

 

 

 

SOURCE Katanga Mining Limited


Source: PR Newswire