Mkushi Copper Project
Joint Venture Partner
CGA Mining Limited (“CGA”) has entered into a Heads of Agreement with African Eagle Resources plc (“AFE”) to joint venture the Mkushi Project in Zambia. CGA will acquire a 51% interest in the project, with AFE retaining a 49% interest in the project. CGA will be responsible for funding all future work up to completion of a bankable feasibility study for each of the projects, while AFE is managing exploration initiatives outside the initial development zones, with funding proportional to the percentage interest held by each party in the project.
The joint venture partners are currently negotiating a full form joint venture agreement and awaiting approval from the Zambian Ministry of Mines for transfer of the licence into the joint venture vehicle.
Location
The Mkushi copper project is located close to the southern limb of the Zambian copperbelt approximately 60 kilometres from the regional centre of Kapiri Mposhi and 250 kilometres north of the State capital of Lukasa. Kapiri Mposhi is the Zambian terminus for the Tanzam railway which was established in the 1970’s for the dedicated purpose of transporting copper products to the port of Dar es Salaam in neighbouring Tanzania. Ndola, the main town servicing the copperbelt is approximately 180 kilometres North of Kapiri Mposhi. Ndola is serviced by an international airport with connecting daily flights to Johannesburg and a railway connected to neighbouring Zimbabwe and Botswana both of which feed through to South Africa.
Drawing Number 1 Map of Zambia
History
Discovered in 1922, the Mkushi project deposits were first mined by underground workings, then developed as an open pit operation in the late 1960’s. The open pit ore was delivered to a conventional copper sulphide concentration plant which successfully produced a concentrate that was sold into the international markets. The majority of the process plant remains on site but it is considered too small to be of use in the future operations conceptualised by CGA.
The operation closed due to the nationalisation of the Zambian copper industry in the 1970’s. Available archives indicate that the mine operated at a grade of approximately 1.5% Cu and that there is still abundant material of similar grade left in the ground. The local infrastructure in the Mkushi area is excellent and the brownfield site should allow project development permitting to be straightforward.
Tenure
The Mkushi project is the subject of Prospecting Licence Number PL 114 dated 18 October 1999 in respect of Katanga Resources Limited which is a wholly owned subsidiary of AFE. AFE has also received a letter of offer for a prospecting licence covering 465 square kilometres surrounding PL114.
Drawing Number 2 Licence Area
Technical
The deposits have simple chalcopyrite mineralogy that will enable a high grade sulphide concentrate to be produced. Metallurgical testwork is presently ongoing.
Indications are that a process flowsheet, resulting in a reasonable capital cost, can be designed. Mkushi is thought to be the only Zambian copper mine in rocks older than the Katangan sequence which hosts the well known strataform copperbelt deposits.
AFE has completed in excess of 55 diamond and percussion drill holes for a total approaching 10 000m. Details of all mineralised intercepts to date and a map can be viewed at http://www.africaneagle.co.uk/downloads/Mkushi-Project-Sheet-Web.pdf.
Indications to date suggest a grade of 1.5% Cu could be achieved in future operations. A wide area surrounding the old mines is presently being explored. Geophysical induced polarisation surveys covering an area of approximately 30 km2 have revealed additional anomalies in the area. These anomalies will be drill tested to add to the project resources. (refer DWG N03)
Drawing Number 3 Project Geology
