Here’s an overview of the mining, processing, metallurgy, and...

Here’s an overview of the mining, processing, metallurgy, and economics for shipments sold from the Kinusi Copper project in Tanzania:

1. Mining

The Kinusi copper project primarily involves open-pit mining at its number four pit, where high-grade copper ore is being actively extracted. Recently acquired equipment has enhanced the mining process, allowing increased productivity. The project utilizes a standard pit mining approach to excavate high-grade copper ore, which is visible within the pit walls and easily accessible for extraction.

2. Processing

The project will implement a two-phase processing plant. The first phase focuses on a gravity jig plant for initial ore processing, which is efficient and quick to set up.

The No. 4 Open Pit lies on the main Sasimo Prospect which has been identified by the Company's independent geological consultants to lie on a copper mineralised corridor at Kinusi and which extends for over 1 kilometre in length and over 300 metres in width and where an Exploration Target of between10 and 15 million tonnes deposit of high-grade copper, gold, and other base metals has been estimated.

The gravity jig separates the copper-rich ore from waste material, allowing for initial concentration on-site. This phase is anticipated to be fully installed and operational by early 2025, with a target production rate of approximately 24,000 tons per annum of copper concentrate. After initial concentration, ore samples are sent to South Africa for further analysis and to trial shipments in Europe and the UK. Phase two will involve installing a solvent extraction-electrowinning (SX-EW) plant, allowing the production of higher-purity copper cathodes.

3. Metallurgy

The Kusi project ore is divided into three grades:

• Grade A: Approximately +30% copper.
• Grade B: Ranges between 20-30% copper.
• Grade C: Between 10-20% copper.

Metallurgical testing of samples in South Africa will optimize the design and operation of the plant, particularly for handling different grades. By testing ores from Grade A to Grade C, the project gains a comprehensive understanding of metal distribution, including gold content. This will allow the team to refine processing techniques and maximize the output and quality of the concentrate.

4. Economics

The economic model is designed to maximize revenue from copper concentrate sales. For a 20% copper concentrate, the project expects payments around 64% of the London Metal Exchange (LME) copper price, which is currently about $9,600 per ton. This translates to an estimated revenue of $1,230 per ton of 20% copper concentrate. When the grade increases to 25% Cu, payments rise to approximately 70% of the LME price, bringing potential revenue closer to $1,700 per ton.

Cost Structure

• Mining Costs: Around $15 per ton.
• Transport Costs: Including crushing, bagging, and shipping to the port in Dar es Salaam, total costs are about $125 per ton.

With these costs, the net income from a 20% concentrate shipment is estimated at around $1,000 per ton after expenses, contributing to favorable project economics. This model allows the company to generate income from concentrate sales while working toward the installation of the phase two processing plant, which will enable the production of copper cathodes and command a higher market price (currently about $9,600 per ton for pure copper).

The phased approach at Kinusi ensures revenue generation from initial concentrate sales while building out the infrastructure to capture full value by producing copper cathodes in the future.