copper,silver up 3% but..., page-7

Sounds like deals are being done in DRC with big players (Kumba). Fast tracked development times. AVM next?

16/8/04

International mining company Adastra Minerals, formerly American Mineral Fields, yesterday announced that it has restarted negotiations with La Générale des Carrières et des Mines (Gécamines), the state mining company of the Democratic Republic of Congo (DRC), aimed at finalising a framework agreement related to the Kipushi zinc-copper project located in the southern region of the country.

Zinc and copper were produced profitably at the Kipushi mine from 1925 until 1993, when the facilities were placed on care and maintenance due to insufficient foreign exchange to maintain operations.

The Kipushi mine is a world-class deposit, with a measured and indicated resource of 16,9-million t with an average grade of 16,7% zinc and 2,2% copper.

“Our management team is convinced that Kipushi, with its existing high grade zinc-copper resource, is a valuable asset for development, particularly given the recovery in the zinc price in recent months,” said Tim Read, president and CEO of Adastra Minerals.

“Adastra enjoys a good relationship with Gécamines and the government of the DRC with respect to the Kolwezi cobalt-copper tailings project. Our agreement on the Kolwezi project, the first to be negotiated under the new mining code, will serve as a template for the redevelopment of Kipushi. Although significant investment will be required on surface facilities and mobile equipment, the Kipushi underground mine is highly developed, offering the potential for a fast track to production when compared to any green-field project.”

Adastra has an option to redevelop the Kipushi mine through its wholly owned subsdiairay Zincongo.

Kumba Base Metals (Kumba), Adastra’s joint venture partner, has, in turn, an option to earn up to 50% of Zincongo.

During the latest round of negotiations between Zincongo and Gécamines, the parties agreed to a number of principles including: a final round of negotiations will begin as soon as possible to conclude the framework agreement; once the framework agreement is executed, Gécamines will transfer the mine’s exploitation permit to a Congolese joint venture company controlled by Zincongo and Gécamines; and Zincongo will start the technical and financial feasibility study once the framework agreement is executed.