First Quantum Minerals
Cape Lambert Resources and Paragon Mining are forming a JV to develop the Kipushi cobalt copper tailings project and the Kasombo copper-cobalt project in the DRC.

The companies will also operate the Kipushi processing plant, said Cape Lambert Resources.

On the execution of the agreement and proposed JV, Cape Lambert Resources executive chairman Tony Sage, said: “Cape Lambert Resources 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, its shareholders and all stakeholders.”

“We believe cobalt, as a commodity, has an extremely positive future and with this transaction and the proposed JV, 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. It will be supported by a joint in-country and Australian-based technical and operations 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,” said Sage.

“I believe our shareholders will see immediate and long term value from this proposed joint venture.”

Advanced and near production cobalt projects

The proposed JV with Paragon will initially include the Kipushi cobalt tailings project (Kipushi) and Kasombo copper-cobalt project (Kasombo).

Both projects are located on granted mining licenses in the Katanga copper belt, the location of some of the world’s largest and highest grade copper and cobalt mines.

The projects are also approximately 25 km from the DRC’s second largest city, Lubumbashi.

Kipushi processing plant

The Kipushi processing plant comprises a fully permitted, conventional flotation plant with a throughput of 150 tph (annual throughput of +1 Mt) and has a design capacity to produce 4 000 tpa of cobalt, 10 000 tpa copper and 2 000 tpa of zinc in concentrate.The processing plant has been designed and constructed to treat the Kipushi cobalt tailings.

The Kipushi processing plant has further been designed to produce three separate concentrates: a copper concentrate, a cobalt concentrate grade and a zinc concentrate grade.

Cape Lambert Resources will complete a detailed review of the Kipushi processing plant and the metallurgical testwork that has been completed, as part of its technical due diligence review.

Cape Lambert Resources has executed the agreement with Paragon with the objectives of starting mining activities at Kipushi within six months; to immediately start exploration activities on Kasombo; to complete a feasibility study on Kasombo within 18 months; to start mining activities at Kasombo within 24 months; and to identify and secure other copper, tin, zinc, and cobalt projects in the DRC and Zambia to advance towards commercial production.

Cape Lambert Resources is aiming to complete its legal, technical and financial due diligence by 31 March 2017 and is already well advanced in this process.

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