TIBESTI COPPER DEVELOPMENT PROJECT REPUBLIC OF CHAD

Transcription

1 TIBESTI COPPER DEVELOPMENT PROJECT REPUBLIC OF CHAD TIBESTI COPPER PROJECT SCOPING STUDY HIGHLIGHTS A long-term significant cash-flow Pre-feasibility study to begin to evaluate the project optimisations, resource and expansions CASETRA Limited and its central Africa regional bureaux is pleased to announced that the scoping study demonstrate the company s planned Copper Project in north-western of Chad in the Tibesti region which will provide significant long-term cash- flow for a modest capital outlay. Disclaimer This presentation includes forward-looking statements, based on information and assumptions we know now. They are subject to risks and uncertainties, many of which are outside our control. Actual results may differ from the forward-looking statements in this document. For example, our results will be affected by: general economic conditions; future capital requirements and our ability to raise that capital; exploration and development risks; operational risks; personnel risks; regulatory risks; environmental risks; and risks under agreements with third parties. The information in this document does not take into account your individual investment objectives, financial situation or particular needs. It does not contain personal advice. Pre feasibility study remains the best way of confirming definite and/or more accurate resources details. Key project parameters: Open pit mining of Indicated Mineral Resource and deposits Initial 10 year mine life at a 3Mtpa processing rate Initial project specific capital cost of A$83 million. Average life-of-mine cash costs of approximately US$2.24/Ib. Total project after-tax cash-flow of approximately A$492 million.

2 The scoping study confirms that the Tibesti Copper project has the potential to provide a steady long-term cash-flow stream and secure additional prospective exploration and development activities. We believe optimisations as part of the pre-feasibility study particularly the processing operating costs can provide an even more robust project. An extraordinary mineral system taking shape at the long-ignored Chad minerals deposits and the potential for optimisations of the current project in both Mineral Resource delineation and operating improvements as followed: (a) Evaluating the potential to treat other types of copper ore within the existing Tibesti reserves (b) Upside potential from resource drilling and resource definition. (c) Evaluating alternative leaching methods and technologies these elements will be studied in the prefeasibility study (d) Exploration of the Tibestian and neighbouring regions is also expected to result in further delineation of base minerals deposits Mineral Resource It is important to note that Chad is still very much under-explored compared to other African countries. There has been no systematic reconnaissance using modern exploration techniques, no airborne geophysical data for example are available for 95% of the country. The only area covered by an aeromagnetic and radiometric survey is the Mayo Kebbi area. The Tibesti massif is thought to be one of Chad s most attractive areas for mineral development. It is known to host significant occurrences of tungsten, tin, niobium and tantalum. Preliminary exploration has also indicated that further studies should be made on the Tibesti volcano sedimentary formations for gold, silver, base metals, as well as precious and semi-precious gemstones associated with the granitic stocks. To date, Chad mineral resources was updated in 1995 following discoveries of base metals such as Copper sulphides, silver bearing galena and traces of zinc were also found in breccias in the Ofouni granitic stock in Tibesti. The UNDP/DRGM programme also discovered copper sulphides and galena in the gold-bearing veins of Massonebare and in Poyeme. Malachite is reported in various locations south of Teubara and in hornblendes east of Mourbame. The Tibesti scoping study is based on the Leachable Copper Zone which contains an estimated Mineral Resource of: 47.5 million 0.61% copper in an Indicated Mineral Resource; and 7.4 million 0.48% copper in an Inferred Mineral Resource Project Details The Tibesti scoping study was designed to assess the viability of mining and Processing in the Leachable Copper Zone of the Tibesti potential mining and processing rates ranging from one to five million tonnes per annum were investigated to assess the project s optimal scale. Further mining processing and exploration upside potential will be assessed during the prefeasibility study to refine the project s operating and capital cost profile with key conclusions from the scoping study such as: - Mine optimisation results in one large and other small copper oxide/leachable Sulphide open pits based on mining 0.75% Cu of Indicated Mineral

3 Resource and 0.70% Cu of Inferred Mineral Resource - 3-million-tonne-per-annum heap-leach solvent extraction/electrowinning plant. - Steady-state average annual production of approximately 19,000tpa of cathode copper assuming an 85% metallurgical recovery year mine life at a 3 Mtpa processing rate. - Estimated initial project-specific capital cost is A$83 million. - Average life-of-mine operating cash costs estimated at approximately US$2.24 (A$2.69) per pound of copper (excluding storage/transport). Average life-of-mine operating cash costs estimated at US$30.60 (A$36.80) per tonne of ore (excluding storage/transport). - Potential upside scope currently under study includes: - Mineral resource extensions in the Tibesti deposit; - Optimisation of capital and operating costs; and - Identification of other leachable copper resources in the region. Financials Independent source has adopted a pricing case of US$4.00 per pound copper and Australia America s exchange rate of 0.83 to assess a likely ongoing price scenario for the Tibesti Copper project The project s total after-tax (pre-financing) cash flow under this scenario would be approximately A$492 million The project after-tax and other royalty is A$260 million at discount rate (subject to further government concessions).the annual steady state after tax and royalty (pre-financing) cash-flow for the project using IAL s pricing case is approximately A$ 60 million per annum. Tables (a) and (b) provide a range of results for the Tibesti Copper Project for after-tax (pre-financing) returns and discounted cash-flo Analysis Table A. Tibesti Project after-tax (pre-financing) cash flow various Potential for Project Optimisations Project Scale, (Mtpa) Copper Price (US$/Ib A$M A$M A$M A$M A$M

4 Table B. Tibesti Project NPV various copper prices (A$ Millions) Project Scale, (Mtpa) Copper Price (US$/Ib A$M A$M A$M A$M A$M Potential for Project Optimisations Further work will be done during the pre-feasibility phase to identify project optimisations in the following areas: (a) Evaluating the potential to mine and treat other types of copper ore within the existing Tibesti mineral resource. The scoping study only assessed the mining and treatment of the Tibesti Leachable Copper Zone (b) Upside potential from further resource drilling and resource definition during the pre-feasibility study a number of options aimed at improving the project economics will be evaluated. These would include alternative leaching methods and technologies that could enhance project economics through reduced capital or operating costs. Ongoing Exploration Potential There is strong potential for the discovery of additional leachable copper ore silver - gold in the Tibesti region and on nearby tenements. Key area of potential are Ofouni and the Tibestian volcano sedimentary zone which contains gold, silver, base metals, as well as precious and semi-precious gemstones associated with the granitic stocks. Our sources indicate that no drilling has yet to be made in that area which is continually gaining interest. The Tibestian volcano sediment -mineralisation at, approximately 3,446 metres of altitude and extended at about 100,000 sq metres, the Mount may extend eastward under the shallow granite cover. Further Studies A pre-feasibility study can now begin with aim to examine a number of mining, processing and infrastructure options to develop the Tibesti deposit. The subsequent feasibility study will then focus on the preferred development option and produce the financial data for project approval. Environmental permitting will be undertaken in parallel with the studies. The Environmental Impact Statement (EIS) is expected to take between months to completion. Report

5 The Tibesti Copper development project scoping study was used as the basis for a report, compliant with standards, under the Chad government laws and regulations, as part of the Tibesti Copper development Project and Preliminary Economic Assessment. LOCATION Tibesti Region is one of Chad s newest region create in 2008 as part of the former Borkou Ennedi Tibesti region. Now responsible for 3 sub regions/ departments, the region if well known for its inactive volcano now very much as a mountain; with over 3100km high, sprayed at about Square kilometers the mountain as recently become an attractive destination for minerals explorations and studies. PRECAMBRIAN The two largest areas of basement rock are Tibesti in the north, and Ouadday which covers most of the eastern side of Chad extending from Ouadday down the Guera massif. Other notable areas of basement rock are Baibokoum and Mayo Kebbi in the far south. Gneisses and granites are the main rock types found at Guera and in the northern part of the Ouadday massif, while greenstones dominate Mayo Kebbi, Tibesti and the southern part of Ouadday. The basement rocks have been structurally and regionally overprinted by the Panafrican orogenesis, which occurred at the end of the Proterozoic. There are two main Precambrian formations at Tibesti, separated by an unconformity. They have been intruded and weakly metamorphosed by post-tectonic granites. The lower metamorphic assemblage outcrops in the north Tenere and Enneri Misky massif and comprises amphibolites, pyroxenites, quartzites, marbles, gneisses and mica schists. The upper assemblage consists of a basal conglomerate overlain by thick layers of arkosic sandstone, pelitic schists and limestones. These are interlayered with rhyolites and mafic lava flows or sills. Precambrian volcanosedimentary rocks occur at Ouadday and have been intruded by various cal alkaline and alkaline granitoid stocks, as well as being separated by a large batholiths comprising granitoids, migmatites and gneisses.

6 C AS E T R A Tibesti Copper development project is 100% owned by CASETRA Limited Australia For further information, please contact us: Telephone: This information is available on our website: Scoping study report issued on 19 September 2011 (Original version French)