With exploration drilling slowing down globally over the last two years due to the global capital shortage, Australian based Blackthorn Resources is one of the few exploration companies to have started the process in Zambia within its Mumbwa license, of which Kitumba mine forms a part. “In February, we announced our updated mineral resource statement at Kitumba that entails a 0.5% copper grade cut-off, with copper reserves of 87 million mt at just below 1.2%. Within this there is a high-grade core of 30 million mt at 2%,” said Tony de Santis, Blackthorn’s COO. Although Blackthorn has not started producing yet, De Santis is optimistic about the discovery and progress that has been made so far: “Kitumba is currently in a prefeasibility study phase and is only one of the prospects within the Mumbwa license, which is surrounded by four other licences, totalling 1,037 km2. At Kitumba, we are comparing the economics of open-pit and underground mining. Underground is of interest because the very high copper-grades start at around 200 m. The prefeasibility study will be concluded by the end of July 2013, and subject to a positive outcome, Blackthorn Resources will consider moving into the next phase of feasibility, which will likely take at least another 12 months. Following feasibility, detailed design, engineering and permitting work would be required, with a best-case scenario being that construction could begin some time in 2015.”
BTR Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
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