Dec 14 2010
African Copper Plc (AIM:ACU)(BOTSWANA:AFRICAN COPPER), the AIM-listed copper producer and exploration company, currently focused on Botswana, announces receipt of a Mining Licence from the Botswana Government for its Thakadu copper-silver deposit some 80 km from the Company's Mowana Mine in the north east of the country.
The Mining Licence has been granted on condition that the area declared as an archaeological site is restricted to underground mining processes so as to avoid disturbing the archaeological site contained within the approved mine lease area. All other areas not declared as archaeological sites or national monuments can be mined using open pit mining. It is anticipated that the current interim open pit cut design would allow for extraction of approximately 1.4 million tonnes of ore.
The issued Mining Licence allows full commercial mining to start while awaiting further consultations on mining out the ore reserve directly underneath the Thakadu archaeological site. On successful conclusion of consultations amongst relevant Botswana Government authorities, an update to the issued Mining Licence will be sought by the Company to release the Thakadu Archaeological Site for open pit mining as well.
Thakadu's high grade mineral reserve will be developed in an initially small scale (and relatively low cost) operation with low pre-strip mining requirements and will share the Mowana Mine infrastructure and management. As reported in ACU's Management Discussion & Analysis, announced in June 2010, the principal operational requirement will be to establish sustained transport between the locations and the Company is currently finalizing longer term transportation plans for the project.
A Project Manager was appointed at the start of March 2010 and an initial mining contract awarded to a Botswana company, Strata Mining, until end March 2011. Full mining activities have commenced with a progressive increase in mining volumes anticipated; production is expected to start ramping up in line with the long term mine planning strategy within the next two months.
Commenting, Jordan Soko, Acting Chief Executive of African Copper Plc, said, "The development of Thakadu provides significant economic benefits to our mining operations in Botswana. We will be able to substantially increase capacity utilisation of the enhanced infrastructure at Mowana and take our total production to a new higher level. I am delighted that we have been able to announce a further successful plank in our business strategy. We can now switch our development focus to the nearby Makala deposit and look forward to increasing the resource/reserve base in African Copper's highly prospective licence areas."
The technical information in this announcement has been reviewed and approved by David De'Ath, BSc (Hons), MSc, GDE-Mining, MIMM and MAusIMM the Company's Manager Geology of the Mowana Mine for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009.