CLA-mining considerations

RE- I and apparently the market seems to have been getting a little concerened about mining viability at Opowu.

So given my own and some mates large holdings in CLA, I recently set about doing some research on the matter for my own edification - This inculded recently speaking to three mining experts two of whom are those tasked with planning the CLA mine. In the interests of my own bullishness, shareing and brotherly love on HC let me share the main points they mentioned to me.

First as a disclaimer I am keeping things relatively vague here (partly cos im not a mine engineer expert)- excuse any basic errors, but mainly because there is still a lot of drill/assay and EM data still to come in before any final calls will be made and the guys I spoke to naturally dont want to be quote exact details commitments statements predictions as yet. So the points below are just their best indications to me from existing data from CLA holes so far. This is my reserach and unofficial and can change depending on forthcomming data - BB has already announced that official CLA mining data and plans and costings will be released firstly with the JORC in Feb, then with the scoping study resuits in April. This is just a pre-taster off my own back.

That all said with now 160 holes drilled and a majority of them assayed there is sufficient data already for some pretty intelligent/realistic anaylses to be made.

1. From the current Data in hand in the opinion of the experts mining looks absolutely viable at Opowu- all agreed.
2. It will be done by a combo of open pit (OP) using longwall and trenching methods that are most efficient for the DOF shape and then by underground mining (UG) to go on deeper.
3.One expert said that the constant 4-7 meter thickness and dip/orientation/charecteristics of the DOF makes it a "Perfect" orebody for UG mining the others agreed it was very positive for such.
4. The main variable to define now is simply at which depth will it become more economic to switch UG from OP.
5. OP will be cheap at first - One expert guesstimated mining costs of 1.50-2.50 per ton(PT) . Also that Strip ratios deeper down would reach around 8-9 times. So OP total costs should be under 20 PT and final seperated concentrate ore could probably be delivered to Walvis Bay port (industrial zone) for under 50$ a ton.
7 As has been announced, in the west of the drilled section the holes indicate the DOF is wider (up to 19 meters) so strip ratios will be better there. Also more defenition work needs to be done on the recently discovered bonus second DOF formation recently intersected - As this also improve stripo ratios.
8.They said the DOF shape/ softer sulphates so far discovered - and the cheap mining environment in Namib (cheaper than OZ and much cheaper than DRC) ...means UG will be viable and should also cost probably around 20$ a ton at first.(but with more upfront CAPEX cost). They guessed finished UG produced concentrate to Walvis Bay will also be around 50$ a ton.
9. Depending on payability of the concentrate - in order to maximise profits at Walvis bay a decsion will then need to be made whether to simply sell the concentrate or to process it further there (where they have all the facilities) into Copper cathode metal and Cobalt sulphate powder to sell them seperately for consdiereably more. The Nambib govt of course would prefer CLA to value add in Nambia and tax credits are available for that.
10. Their average guesstimatres were that Capex to start open pit minning would be between 100-160 mill AUD. Capex to start UG would be nearer 300 million but that can be done easily if cashflow already going fromn OP ops.

I discussed many other points but much still depends on final resource shape, details and charecteristics now being defined and to be announced over the following weeks. The main point is that they were all positive and have personally put my mind at ease about the viability of both OP and UG methods at Upowo.

10) If any of you want to do any further research there are examples of other very similar mines - part OP part UG minning a resource with similar ore features and orientation (4-7 meters wide and sloping quite steeply). - Any of you better versed in mining engineering than me may want to compare and comment the best example mines they mentioned as models were .
1. The Kitwe and Ndola (Mopani mines)in Zambia with very similar shape, thickness and ore shale (dolomitic marlstone,dolostone) to CLA's OPUWO site.
2. The Lubambe Copper mine also in neighbouring Zambia is very simlar
3. The Ruasha Copper cobalt mine a bit further north in DRC.
4. Further a field the Greman expert mentioned the Kupferschifer copper mine in Poland which has similar sized orebody and ore type and size being succesfully mnined since the 70's now down to almost 1,500 meters today and still feasable and making loadsamoney .

In short my own concerns about the mining vibality at OPUWO have now been put to bed. I am now even more confident that we have an Effin huge Co/Cu resource viable to mine. IMO: This SP is going to go much higher as the gory details of the above general info are released and confirmed. I'm so bullish now gonna buy a few more!!!.