What is Tiger Resources strategy for increasing shareholder value?
Tiger has a planned staged development process at our flagship Kipoi Project in the DRC. The high-grade zone of mineralisation at the Kipoi Central deposit is proposed to be exploited during Stage 1 of production, which commenced in April 2011. During the three-year life of Stage 1, we plan to process a total of 900,000tpa at 7% Cu through a heavy media separation (HMS) plant to produce the equivalent of 35,000tpa of copper.
While production at Kipoi is our current focus, we will seek to grow our resources through exploration programs on the highly prospective Kipoi and Lupoto (Sase Prospect) properties.
How much will Stage 1 of production cost for the Kipoi Project?
The estimated capital cost is approximately US$30 million. The major cost components of Stage 1 are the HMS plant and infrastructure (approximately US$11m) and pre-strip mining (approximately US$13m).
Is Stage 1 of the Kipoi Project funded?
The net proceeds of a US$18.2 million financing, together with a US$15 million debt facility arrangement with Trafigura Beheer B.V will provide the funds required for the US$30 million Stage 1 development at the Kipoi Project. The Company has received all necessary mining and environmental approvals.
What is involved for Stage 2 of the Kipoi Project?
During Stage 1 our plan is to complete feasibility work for Stage 2 of production and then construct a solvent extraction and electrowinning (SXEW) plant by 2014 to produce cathode copper. The expanding resource base at Kipoi has the potential to support a +25,000tpa SXEW production capacity. We will be processing < 3% copper oxide ore from Kipoi Central, Kipoi North, Kileba, Judeira and other deposits.
The feasibility study is expected to take 18 months to complete, followed by an 18-month construction and commissioning phase. Our plan is for the Stage 2 development to be funded through cash flow from Stage 1.
Is the Democratic Republic of Congo (DRC) a politically safe place to operate a copper mine?
The DRC has an improving political environment after having its first free election in more than 40 years in 2006. In July 2002, the government introduced a new mining code to improve the investment climate for the mining industry and encourage international investment.
Economic conditions are improving as a result of recent political stability. Leading the growth is the mining sector, especially in Katanga Province, where we have our prospects.
The DRC has multiple mining companies with substantial investments following improved political environment including Freeport McMoRan Copper & Gold, Anvil Mining, First Quantum, Vale and Katanga Mining.
Will Tiger keep exploring for copper?
We will continue with our exploration programs at Kipoi Central, Kipoi North, Judeira, Kileba South and our 100%-owned Lupoto Project. Drilling is underway at the Sase deposit, which is part of the Lupoto Project.
Who are Tiger’s major shareholders?
Trafigura Beheer B.V
Front Street Capital