Indochina Goldfields boosts reserves in Myanmar

Indochina Goldfields (ING-T) has increased the reserves of its Monywa copper project in west-central Myanmar by 219 million lbs. contained copper.

Pit-optimization work by consultant Resource Service Group of Perth, Australia, has expanded the reserves of the Sabetaung deposit to 55.1 million tonnes grading 0.48% copper at a 0.15% cutoff, up from 27.1 million tonnes grading 0.61% copper at the same cutoff.

As well, the overall stripping ratio has declined to 0.2-to-1 from 0.5-to-1.

Sabetaung is part of the first-phase S&K project, where mining is scheduled to begin in March and copper-cathode production is slated to begin late in the second quarter of 1998.

The total reserves of the three neighboring deposits (the existing Sabetaung pit, the satellite Sabetaung South deposit and the adjacent Kyisintaung deposit) are now estimated at 154.7 million tonnes grading 0.47% copper at a 0.15% cutoff, for about 1.6 billion lbs. contained copper. This is up from the 126.7 million tonnes grading 0.49% copper (1.37 billion lbs. copper) delineated in the March 1996 feasibility study.

Total resources in all categories for the three deposits at Monywa were previously pegged at 2.2 billion tonnes grading 0.32% copper.

Indochina Goldfields says the reserve boost will not only lower the cash costs of the project, but will also extend the mine life of the Sabetaung pit by five years, to about 10 years, and extend the life of the S&K project to more than 25 years.

Currently at Monywa, a pilot solvent-extraction electrowinning plant is producing 1 tonne of copper cathode daily, while construction continues on the first phase. That phase will be in full commercial production at an annual rate of 25,000 tonnes (55 million lbs.) of highly refined copper cathode by the end of this year, with a cash operating cost of about US48cents per lb.

“The Phase I S&K project will be one of the largest and lowest cost SX-EW copper mines in Asia,” says IG President Edward Flood. “And this operation will be dwarfed by the Phase II expansion at the adjacent Letpadaung orebody.”

Letpadaung will initially produce an additional 63,500 tonnes (140 million lbs.) of copper cathode annually, before expanding to 125,000 tonnes (275 million lbs.) annually over three years.

A draft version of a bankable feasibility study for the second phase of expansion is complete, and a final version is anticipated in March.

IG, which is developing Monywa with its 50% joint-venture partner, state-owned Mining Enterprise No. 1., says it has begun discussions regarding project financing and construction services for the second phase of expansion.