Marula Mining PLC Kinusi Copper Mine Operations Update

RNS Number : 3263K

Marula Mining PLC

31 October 2024

 

 

Marula Mining PLC

("Marula'' or the "Company")

 

31 October 2024

 

Kinusi Copper Mine Operations Update

 

Marula Mining (AQSE: MARU) an African focused mining and development company, is pleased to provide an update on its ongoing mining and exploration activities at Kinusi Copper Mine ("Kinusi") located in the Mpwapwa District of Tanzania's Dodoma Region.

 

Conventional open pit mining of the No. 4 Pit has been ongoing throughout the current quarter, with shallow drilling and blasting of the exposed high-grade copper mineralisation by the Company's partner Takela Mining Tanzania Limited ("Takela Mining"). Stockpiling of the high-grade copper ore continues and is in line with the Company's two-phase mine development and processing plans as announced on 26 September 2024.

 

Three samples, each of 10kg, have been taken following a recent site visit by the Company's executive management, with these samples to be sent to South Africa for test work. The results from this test work will be used to optimise the design of the Phase 1 gravity concentrate, coarse jigging and fines dewatering circuit that is designed to produce 24,000 tonnes per annum ("tpa") of a high-grade saleable copper concentrate. The samples will also be used for hydrometallurgy chemistry test work, copper leach kinetic tests, and heap leaching polymer screening and column tests needed to be completed for the Phase 2 hydrometallurgy fines optimised heap leaching circuit, and copper solvent extraction and electrowinning refining process.

 

The Company is also finalising the sale of three trial shipments, each of between 100 and 250 tonnes ("t") of the stockpiled high-grade copper oxide ores, to one UK-based and two Swiss-based global commodity trading groups. The sales are part of the process to finalise a long-term off-take agreement for the planned export of copper concentrates and copper cathode.

 

Highlights:

·    Open pit drill, blast mining operations and stockpiling of high-grade copper ores has continued by the Company's partner Takela Mining

·    The open pit mining activities are focused on the No. 4 Pit at Kinusi

·    The No. 4 Open Pit lies on the main Sasimo Prospect which has been identified by the Company's independent geological consultants to lie on a copper mineralised corridor at Kinusi and which extends for over 1 kilometre ("km") in length and over 300 metres ("m") in width and where an Exploration Target of between10 and 15 million tonnes ("Mt") deposit of high-grade copper, gold, and other base metals has been estimated

·    Further new mobile mining equipment is scheduled to arrive by 31 December 2024 to allow run-of-mine production to achieve the targeted levels necessary to support the initial Phase 1 processing plant throughput rates to produce 24,000 tpa of a high-grade saleable copper concentrate

·    Stockpiling of the high-grade copper ores extracted from initial open pit mining activities is ongoing and is set to feed the Phase 1 processing circuit

·    The Company's Executive Chairman, Richard Lloyd was able to observe and report back to the Board his positive observations of the current open pit mining activities and stockpiling of high-grade copper ores during a recent site visit with representatives from Takela Mining

·    As part of his site visit, he was also able to oversee the quality assurance and quality control procedures undertaken as part of the sample collection and sample preparation for material being taken from the No. 4 Pit and that is to be sent to South Africa for further metallurgical test work for optimisation and detailed final design work on the Phase 1 and Phase 2 processing circuits

·    Three 10kg samples have been taken, and representative of the key copper ore types that have been observed at Kinusi

·    A Grade Material, which comprises malachite, azurite and bornite copper mineralisation with observed grades of over 30% copper from sampling undertaken by the Company's independent geological consultants

·    B Grade Material, which contains malachite and azurite copper mineralisation with observed grades of between 20% and 30% copper

·    C Grade Material, which contains malachite copper mineralisation with grades of between 10% and 20% copper 

·    The metallurgical testing work will be completed in South Africa and will be overseen by the Company's General Manager Ms Jana van Wyk who has significant operational experience in the copper exploration, mining and processing 

·    The Company remains on schedule to award the Phase 1 contract for approx. £1.4 million by 31 December 2024 and discussions with several mineral processing and engineering groups in South Africa and in East Africa are progressing

·    Three trial shipments of the stockpiled high-grade copper oxide ores are proposed to be completed in the current quarter to a UK-based and two Swiss-based global commodity trading groups

·    These shipments will be for an aggregate maximum amount of up to 750t and are part of the process to finalise a long-term offtake agreement for both the planned export of copper concentrates and export of copper cathode

·    Current sales price for a 20-25% high-grade copper concentrate are in the range of US$1,200/t to US$1600/t and provide robust earnings based on current mining costs of up to US$15/t and quoted contract transport and processing costs of up to US$100/t 

·    The Company will be providing further updates on its mining activities, high-grade copper sample results, process plant contract awards and trial shipments and offtake agreement negotiations throughout the current quarter

 

Jason Brewer, Marula Mining PLC CEO said:

"As we continue with the on-site activities, we are entering an exciting phase in the development of the Kinusi Copper Mine with ongoing open pit mining and the stockpiling high-grade copper ore in preparation for the commissioning of the Phase 1 processing circuit in early 2025.

"During his recent visit, our Chairman, Mr. Lloyd, observed the open pit ore mining activities that were being advanced by our partners Takela Mining and was able to see firsthand the safe and efficient operations and mining practices as well as the commitment to community engagement and employment.

"We are confident that the Kinusi Copper Mine will be a contributor to Marula as we progress the trial copper concentrate shipments this quarter and finalise discussions around copper concentrate and copper cathode offtake agreements."

 

 

The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of UK Market Abuse Regulation.

 

About Marula Mining

Marula Mining (AQSE: MARU A2X: MARU) is an African focused battery metals investment and exploration company and has interests in several high value mining operations and mine development projects in Africa: the Blesberg Lithium and Tantalum Mine, Northern Cape Lithium and Tungsten Project, Korridor Lithium Project  and Kruisrivier Cobalt Mine, all in South Africa; the Larisoro Manganese Mine and Kilifi Manganese Processing Operation both in Kenya; the Kinusi Copper Mine, the Nyorinyori Graphite Project, the NyoriGreen Graphite Project and the Bagamoyo Graphite Project all in Tanzania and the Nkombwa Hill Project in Zambia. As we advance operations at these battery metals focused projects, Marula will continue to build and expand its interests in other high-quality projects in Africa.

Marula's strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and Southern Africa that the Directors believe would deliver returns for its shareholders. The Board and management team aims to establish Marula as a socially and environmentally responsible, sustainable, and profitable producer of critical metals and commodities that are of increasingly strategic importance to modern technologies and the global economy. Marula's shares are traded on AQUIS Stock Exchange (AQSE) in London and A2X Markets in South Africa. Marula is exploring opportunities to admit its shares to trading on Kenya's Nairobi Securities Exchange and South Africa's Johannesburg Stock Exchange.

 

For enquiries contact:

 

Marula Mining PLC Jason Brewer, Chief Executive Officer   Faith Kinyanjui Mumbi Investor Relations	Email : [e-mail]   Email : [e-mail]
AQSE Corporate Adviser Cairn Financial Advisers LLP, Liam Murray / Ludovico Lazzaretti	[phone]
Broker Peterhouse Capital Limited, Charles Goodfellow / Duncan Vasey	[phone]
Financial PR and IR BlytheRay Tim Blythe / Megan Ray / Said Izagaren	[phone]
A2X Advisor AcaciaCap Advisors Proprietary Limited Michelle Krastanov	[phone]

 

 

 

 

Caution:

 

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

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