ASX-listed Cape Lambert Resources has provided an update on the progress of the Kipushi Cobalt-Copper Tailings Project in the DRC.
The Kipushi Project, located near the town of Kipushi approximately 25 km from Lubumbashi involves the reprocessing of cobalt copper tailings contained in the Kipushi Tailings Storage Facility and is operated by Soludo Lambert Mining, under a 50/50 joint venture arrangement between local entity Paragon Mining SARL and Cape Lambert. Paragon has a 70% interest in the Kipushi Project via a contract with La Patience SPRL that gives it the right to exploit and process the tailings from the Kipushi TSF and sell
Early October 2018 drilling contractor, Solutions for Africa, completed 47 holes for a total of 432 m.
Samples were dispatched to the laboratory of ALS in Lubumbashi for assay with the results expected in the coming week.
Once received, work will commence on preparing the Mineral Resource estimation for the tailings dam.
Preliminary work has been completed to create a three dimensional volume model of the tailings using surveyed topography and depths to base of tailings obtained from recent drilling.
In the area drilled, this work has indicated a potential volume in the order of 2.8 million cubic metres of tailings contained.
The area drilled only represents a subset of the total tailed area and has already indicated a volume greater than what was expected in overall.
In-situ dry density test work is still to be completed which will allow a total tonnage calculation however an initial estimation of tonnage can be determined using a conservative density range of 1.5 t/m3 – 2.0 t/m3 resulting in a potential tonnage of tailings in the range of 4.2 Mt – 5.6 Mt.
This potential volume is conceptual in nature and there has been insufficient exploration to determine accurate tonnage or data received to enable estimation of a mineral resource. It is uncertain if further exploration will result in the estimation of a mineral resource.
Discussions with several potential project financiers have progressed as well as discussions with a major party for an offtake agreement for the cobalt hydroxide product.
Cape Lambert has also been approached by an Engineering, Procurement and Construction Management contractor that has offered to fund and build the Project, with the cost being repaid from production revenue.
Discussions with this company are progressing with a firm costed proposal awaited.
Commenting on the progress so far, chairman Tony Sage says:
“I am confident that financing and off take agreements can be finalised in the very near future.
“I am also encouraged by the offer received for an EPCM contractor to fund the building of the leaching plant, which presents an alternative option to getting into production, so I look forward to receiving their proposal”.