Tiger Resources Limited (ASX:TGS) December 2013 Quarterly Activities Report.
KIPOI COPPER PROJECT (TIGER: 60%)
The Kipoi Copper Project is located approximately 75km NNW of Lubumbashi in the Katanga Province of the DRC. Tiger has a 60% interest in La Societe d'Exploitation de Kipoi SPRL (SEK), a DRC-registered company which is the operator at Kipoi.
Tiger is undertaking a phased development at Kipoi, where the Stage 1 heavy media separation (HMS) plant is currently in production, and on the basis of recently completed grade control drilling Tiger now expects to process 3.5Mt of ore grading approximately 7% Cu to produce a total of 132,000 tonnes of copper-in-concentrate over its 42-month life.
Stage 1 HMS operations are planned to produce stockpiles with 147,000 tonnes of contained copper. These stockpiles will provide the feed for the Stage 2 solvent-extraction and electro-winning (SXEW) plant for the first three years of operations. The current stockpile status is as follows:
Kipoi Central Stockpiles available as SXEW feed As at 31 December 2013
Planned maintenance activities during the quarter reduced the plant availability to 76%. The Company offset this by increasing the plantthroughput rate to 184 tonnes per hour.
Direct cash costs (mining, processing and administration) for the quarter totalled $51.9 million, representing a cost of $0.57/lb of copper produced.Excluding certain prior yearmining cost adjustments and other general administration costs, underlying direct cash operating costs were $45.1 million or $0.50/lb of copper produced in concentrate.
Mining costs were 12% higher than budget due to a 7.8% increase in the volume of material moved and unit costs being 4% higher than budget due to higher fuel consumption from the mining fleet that is nearing the end of its life, higher explosive costs, and higher than planned mined volumes of low-grade ore involving additional haulage distances to the Kipoi SXEW plant ROM stockpiles.
Processing costs were higher than planned due to the grid power connection not being available until December 2013 and the consequent increased volume of power sourced from higher cost diesel-generated power; increased water royalty payments; and higher than budgeted maintenance costs due to increased ore processing throughput and higher abrasivity of the ore processed.
A total of $8.9 million was paid in royalties during the quarter, representing a cost of $0.10/lb of copper produced.
A total of 41,864 tonnes of concentrate was sold during the quarter for revenue of $42.9 million at an average realised copper price of $6,764/t. This represents contained copper--concentrate of 9,410 tonnes and a payable copper content of 6,340 tonnes.
Approximately 64% of concentrate was sold under existing offtake arrangements to local smelters within the DRC, and the remaining 36% was exported to China. Export selling costs, including taxes and charges, clearing, transport and concentrate treatment/refining charges, totalled $11.5 million for the quarter.
To view the quarterly report, with diagrams, please visit:
About Tiger Resources Limited:
Tiger Resources Limited (ASX:TGS) has established itself as a producing copper/cobalt company with excellent growth potential after making the transition from an explorer. We have a highly-rated portfolio of properties, all strategically located on the world renowned Katanga Copperbelt in the Democratic Republic of the Congo (DRC), central Africa.
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|Date:||Jan 29, 2014|
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