Adastra Minerals (AMZ-T) (formerly America Mineral Fields) has resumed talks with state-owned La Generale des Carrieres et des Mines (Gecamines) aimed at finalizing a framework agreement for the mothballed Kipushi zinc-copper project in the Democratic Republic of Congo, on the Zambian border.
Adastra CEO Tim Read says his company’s recently inked deal at the Kolwezi cobalt-copper tailings project elsewhere in the DRC will serve as a template for the redevelopment of Kipushi.
Kolwezi’s tailings hold a resource totalling 113 million tonnes at grades of 1.49% copper and 0.32% cobalt. Adastra owns an 82.5% interest in the project; Gcamines has a 12.5% stake and the government retains 5%.
While significant investment will be required for a total rehabilitation of above ground infrastructure and mobile equipment at Kipushi, Read expects to fast track production from the highly developed past-producing underground mine.
Once an agreement is in place, Gecamines will transfer Kipushi’s exploitation permit to a joint venture controlled by Adastra’s wholly owned subsidiary Zincongo and Gecamines; Zincongo will then begin technical and financial feasibility studies.
Kipushi is home to a NI-43-101-compliant measured and indicated resource amounting to 16.9 million tonnes averaging 16.7% zinc and 2.2% copper. The resource remains open along strike and down dip.
The mine operated from 1925 until 1993, when it was placed on care and maintenance. Adastra has already spent some $3.5 million on identifying commercially viable rehabilitation options.
Kumba Base Metals can earn a 50% stake in the mine from Adastra’s wholly owned subsidiary Zincongo.
Be the first to comment on "Adastra eyes revived Kipushi"