Replies to post #20 on Copper

[Ed Monton]

Katanga Mining's Kamoto study nears the finish line


2006-02-16 16:58 ET - News Release

Mr. Arthur Ditto reports

KATANGA MINING LIMITED: KAMOTO JV FEASIBILITY PROGRESS

Katanga Mining Ltd.'s Kamoto feasibility study, under way since August, 2005, is nearing completion and the results of the study will be available on or before April 1, 2006. Katanga currently owns 23.33 per cent of Kinross Forrest Ltd. (KFL) and has an option to acquire the rest of KFL that in turn holds 75 per cent of the Kamoto joint venture (Kamoto JV).

Arthur Ditto, president and chief executive officer, reports from sites in Africa where the feasibility study is being prepared: "The study being prepared under the direction of Hatch's Johannesburg office is defining work and capital required to retrofit the mines and plants of the Kamoto JV. The retrofit will take place in four stages such that copper output is able to increase steadily during a four-year period to a sustained 150,000 tonnes per year.

"Mineral reserves and resources estimates for the Kamoto JV are being prepared in accordance with National Instrument 43-101. This work is well advanced and the report will be available shortly before the feasibility study is complete.

"Mine plans for the Kamoto JV developed during the study now incorporate a cemented tailings fill program that is designed to achieve 79-per-cent ore extraction compared to the historic open-stope methods approximate 54-per-cent recovery. This is expected to yield a significant improvement in the project economics. The Kamoto JV's existing underground installations such as the primary crusher, conveyors and hoisting facilities are in generally good to adequate condition. The mine dewatering system is sound although the primary clear water pumps will be replaced. Open-pit plans for the oxide zones in the study have shown an improvement in available reserves compared to prior expectations.

"Preproduction capital for the mines is principally needed for necessary mobile equipment.

"Capital requirements for the Kamoto JV concentrator are directed at replacement of flotation equipment, conveyor components, piping throughout the plant including the seven-kilometre concentrate lines to the Luilu hydrometallurgical plant and in plant electrical service. Major equipment such as grinding mills and the building structure are in reasonable condition.

"The Luilu hydrometallurgical facility requires the most work and capital for the first phase. It will also take the most time to prepare for production. Extensive repair of a roaster, leaching equipment, replacement of piping and electrical service throughout, replacement of filters in both the copper and cobalt circuits along with tank repair in the electrolytic circuits encompass majority of the work.

"Because of additional metallurgical testwork and industry process control improvements since the original plant design, certain equipment and process changes are incorporated into the retrofits at the Kamoto JV concentrator and Luilu facilities that are expected to result in modest recovery improvements.

"As capital and operating estimates are being refined, Katanga expects that capital requirements relative to production scale will be modest and operating costs per pound of copper produced will be low."

Rick Dye, the vice-president of technical services for KFL and a qualified person under National Instrument 43-101, has reviewed and approved the contents of this press release.