At a glance
The Khoemacau flagship c.60ktpa copper and c.2Mozpa silver metal in concentrate Project involved the development of the Zone 5 underground mine and associated infrastructure, and the upgrade and expansion of the existing Boseto processing plant. The Phase 2 Expansion will see production rise to c.130ktpa copper and c.5Mozpa silver metal in concentrate.
The Zone 5 deposit currently has a 20 year mine life, with a total mineral resource of 92.9Mt at 2.0% Cu and 21.3g/t Ag*. This high grade deposit offers a 4.2km strike length and with average widths over 10m is ideally suited to modern, highly mechanised mining, delivering C1 cash costs over the life estimated at approximately c.$1.15 per pound* of copper and c.$1.85** per pound on an all-in sustaining basis.
The Project was fully funded, through the US$650 million facilities raised in 2019. The total Project development capital costs were $412m (less than or equal to 4% variance from budget), and commissioning of the process plant was completed in July 2021. Ramp up of Current Operations to full production was completed in Q4 2022.
Resource development drilling and feasibility studies of the Phase 2 Expansion exploiting the Zone 5 N, Zeta NE and Mango NE deposits, which offer total mineral resources of 73.4Mt at 1.9% Cu and 32g/t Ag, are underway, while regional exploration continues to define additional exploration targets.
Steady state production from the Current Operations will be c.60ktpa copper and c.2Mozpa silver metal in concentrate, growing to c.130ktpa and c.5Mozpa respectively as part of the planned Expansion.
* The 2022 Zone 5 mineral resource estimate is reported (with internal dilution included within an NSR mining shell and depleted) as at 31 December 2022. The Z5 mineral resource is constrained by a $65/t NSR underground mining shell. This is a change from the previously reported Z5 mineral resource, which was based on the mineralisation only, above a 1% Cu cut off. On this basis the 2022 Z5 mineral resource @ 1% cut-off (depleted as at 31 December 2022) would be 86.7Mt at a 2.3% Cu and 24g/t Ag grade and the undepleted 2022 Z5 resource model would be 90.0Mt at a 2.3% Cu and 24g/t Ag grade.
** C1 cost shown pre Ag stream & AISC shown post Ag stream