Though hamstrung by the chronic political instability of central Africa, London-based
In Katanga, a province of the Democratic Republic of Congo (DRC), AMF is exploring the Kolwezi tailings project, where resources are pegged at 110 million tonnes of tailings grading 1.32% copper and 0.32% cobalt.
Kolwezi is held 60% by Congo Mineral Development, which, in turn, is held equally by AMF and
A fourth player in Kolwezi is Brussels-based major
CMD has been in discussions with both the DRC government and Gecamines with an eye towards strengthening CMD’s legal title and providing security to potential investors. A key stumbling block is the failure by the DRC government to grant a presidential decree ratifying CMD’s mining convention.
Meanwhile, on the ground, CMD has brought a bulk sample from Kolwezi to Johannesburg and initiated a pilot plant program that has already produced high-purity copper cathode, as well as cobalt. The pilot plant is expected to operate into October.
As well, CMD is collecting baseline data for an environmental impact study and investigating possible methods of reclaiming the tailings.
CMD has hired the consulting firm Hatch to study the viability of constructing a mine smaller than the originally envisaged operation, which, annually, would have produced 75,000 tonnes copper and up to 12,000 tonnes cobalt. The smaller project would initially produce up to 42,000 tonnes copper and 7,000 tonnes cobalt per year.
Under the current joint-venture agreement, AMF and Anglo must pay a total of US$130 million to Gecamines under the following schedule: an initial US$25 million on receipt of a presidential decree and the transfer of project assets to a subsidiary named KMT Sarl; three equal payments of US$10 million every second month thereafter; US$40 million on completion of a bankable feasibility study and receipt of project financing; and US$35 million when metal is first produced.
Elsewhere in the DRC’s portion of the Katanga-Zambia copper belt, AMF has been reviewing the dormant Kipushi high-grade zinc-copper mine. The junior says it will soon announce the identity of joint-venture partner that will assist in redeveloping the deposit, which hosts resources of 22.6 million tonnes averaging 13.8% zinc and 2.1% copper.
In northern Zambia, AMF recently completed a 13-hole, 2,320-metre program of reverse-circulation drilling on the Katwishi anomaly at the company’s Solwezi licence. The holes intersected some disseminated copper and zinc but no Kipushi-type, massive-sulphide mineralization.
In Angola’s Cuango Valley, AMF has been trying to renegotiate its expired IDAS alluvial-diamond licence areas with the Angolan government and the state-owned company Endiama. If the licences are renewed, AMF will carry out an exploration program.
AMF finished its second quarter with attributable working capital of US$10.2 million and no debt.
For the six months ended April 30, AMF posted a net loss of US$986,997 (3 per share), compared with a loss of US$1.8 million (6 per share) during the corresponding period a year ago. The improvement is due to a drop in AMF’s administrative costs.
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