Af Copper secures funds for further exploration

Brian Benza
Staff Writer | Tuesday November 30, 2010 00:00

ZCI owns an 82,6 percent share in African Copper.

'We are pleased with ZCI's commitment to assist (African Copper) to explore its growth projects and value-adding activities that could potentially extend mining beyond the current life-of-mine, as well as enhance current operations,' said acting CEO of African Copper, Jordan Soko.

The copper miner will use the loan to fund exploration drilling at its Matsitama project, as well as at the Mowana North deposit. In addition, it will aim to complete a scoping study for the Makala deposits.

The Matsitama project is near African Copper's operating Mowana Mine.

An experienced exploration manager has been appointed to oversee the project in 2011, while a panel of geological experts has been assembled to generate new exploration strategies, refine mineral emplacement and deposit models, and assist in target generation.

Early this year, the company - which closed down during 2009 due to the global economic recession - also  got a US$10 million from ZCI which was to be used to buy new mobile crushing equipment, redesign its secondary and tertiary circuit, and fund short-term working capital requirements at its Mowana Mine.

African Copper is hoping that the work will allow it to apply for retention licences over a portion or portions of the exploration permits by the middle of next year, it noted in a statement.

Further, the company has identified new drill targets at the Mowana North prospect and a drilling programme has been drawn up.

African Copper noted that the drill results from this prospect would have a direct impact on future plans for an underground mine at the Mowana Mine.

The company also plans to undertake a scoping study at the Makala deposit, where previous drilling work has indicated a sufficient resource for a small underground mining operation. The ZCI loan was provided at an interest rate of 12 percent a year and will be repaid by November 30, 2014. Total interest-bearing loans provided to African Copper by ZCI now amount to $41,5 million, excluding a $7,9-million convertible loan.

Meanwhile, the company also plans the construction of a wet tailings facility and a dense media separation plant at the mine.

Deep exploration drilling will also be carried out in and around the Mowana Mine and pre-stripping and mining contractor mobilisation at the nearby Thakadu deposits is expected to start operations in May next year.

Soko noted that African Copper was finalising its five-year strategic plan to fully exploit its assets in Botswana.

'The company now understands all of the issues to be resolved at Mowana and identified solutions that can be quickly implemented,' he told Mining Weekly. 'With the active support of ZCI, we anticipate being able to increase production from our assets and deliver value to all of our investors.'