Company Profile
Tiger Resources is an Australian company focused on the discovery and development of significant high grade Copper/Cobalt deposits in the highly mineralised “Roan Sequence” of the world-renowned Africa Copper Belt in the DRC.
Tiger has an interest in a number of highly prospective projects covering 1,550sq kms, including the Kipoi, Lupoto and Sakania projects.
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The Company has a staged development strategy for the Kipoi Project. Stage 1 involves processing high grade oxide copper mineralisation through a heavy media separation (“HMS”) plant to produce the equivalent of 116,000 tonnes of copper in concentrate over a three year period. Tiger is targeting mid 2010 as the date for commencement of 25% Cu concentrate production.
Stage 2 of the development is proposed to be the construction of a Solvent Extraction and Electrowinning (“SXEW”) plant to produce cathode copper. The intention is to complete construction of a 25,000tpa (scaleable) SXEW by 2014. The expanding resource base at Kipoi has the potential to support a 100,000tpa SXEW production capacity.
Significant copper drilling intersections from an initial diamond drilling programme at the Sase Project were also reported during the year. Mineralisation has been identified over a strike length of 600m that varies in width between 50 and 200m. Oxide mineralisation extends to 120m in depth and overlies deeper sulphide mineralization. Sase is one of a number copper mineralised zones the Company has discovered within the Lupoto Project. Lupoto is 100% owned by Tiger and is located approximately 15km to the south of the Kipoi Project.
An initial inferred resource has been estimated for Kipoi Central of 13.4Mt at 3.3% Cu for 439,000 tonnes of contained copper, 20,000 tonnes of cobalt and 1,416,000 ounces of silver. This includes a high grade component, upgraded to a Measured and Indicated Resource, of 2.9Mt at 8.1% Cu containing 230,000 tonnes of copper.
During the year the Company announced a 47% increase in the size of the copper resources at Kipoi. The JORC standard Inferred Resource now stands at 644,000t of Copper, 22,600t of Cobalt and 2,788,000oz of Silver. The increase in the copper resource includes maiden Inferred Mineral Resource estimates for Kipoi North and Kileba South deposits.
Tiger has completed a definitive feasibility study for this high grade component.
Arccon Mining Services (“Arccon”) completed an independent review of a revised Stage 1 feasibility study. The proposed Stage 1 development at the Kipoi project now comprises an HMS and spirals plant treating 900,000 tpa of high grade +5% Cu oxide and transition ores to produce approximately 116,000 tonnes of contained copper in concentrate over a period of approximately three years.
Capital expenditure for this development is estimated by Arccon to be USD$30 million. Arccon have estimated cash operating costs to be in the order of USD$0.34/lb. At a copper price of US$2.50/lb the project NPV (at 10%) is USD$96.5 million, IRR 130% and project cash flow USD$146 million. The Company is investigating the possibility of further improving the cash flow of Stage 1 by producing a cobalt concentrate.
The Company is planning for the US$30 million Stage 1 development of the Kipoi Project to be primarily debt funded.
In September 2009 the Company mandated Nedbank Capital (the Investment Banking Business of Nedbank Group Limited) (“Nedbank”), to act as exclusive arranger of an Export Credit Insurance Corporation of South Africa Limited (“ECIC”) supported US$16 million debt facility, for use in the Stage 1 development. The Company has also received indicative debt (up to US$15 million) and offtake proposals from metal trading groups seeking to secure rights to acquire the copper concentrate to be produced.
The Company has also been drilling at the Kipoi North and Kileba deposits within the Kipoi Project. Exploration at the Lupoto (Sase) and Sakania projects is at an early stage but results have been highly encouraging and demonstrate Tiger’s significant growth potential.
During the year the Company announced the results of a 25 diamond hole (for a total of 4,294.3m) drill programme undertaken at the Sase Prospect. The drilling was a follow up to previous Aircore drilling (AC) at Sase. Results of the AC programme outlined significant copper mineralization over an area of 450m by 50m. High grade copper intersects included 67m @ 2.83% Cu and 0.19% Co, 51m @ 1.50% Cu and 34m @ 1.15% Cu.