Development Plan Finalized

RNS Number:8414A
African Copper PLC
03 April 2006






PRESS RELEASE

3 April 2006



www.africancopper.com



AIM: ACU

BSE: African Copper

TSX: ACU




                               AFRICAN COPPER Plc

                      ("African Copper" or the "Company")

                        Dukwe Development Plan Finalized



African Copper is pleased to release a technical report (the "Technical Report")
from its independent consultants A.C.A Howe International Limited ("Howe")
covering all the work that the Company has carried out in 2005/6. The Technical
Report also outlines a development plan for the Dukwe deposit.



  * Estimates of the contained copper in the northern 600 metres of the 2,000
    metre Dukwe deposit has increased to approximately 600 million pounds of
    copper (indicated resources of 39.2 million tonnes at 0.71% Cu with no
    cut-off).  In the Technical Report Howe recommends an underground
    exploration programme to convert the deeper sulphide resources into reserves
    that may ultimately to be included in a mining plan. This programme is
    estimated by Howe to cost US$ 32 million over a 2 to 3 year period.

  * Underground exploration will simultaneously allow access to the near
    surface (above 170 m vertical depth) supergene and transition indicated
    resources estimated at 4.24 million tonnes at 2.43% Cu, cut and fully
    diluted including mining recovery.  This material could be used to feed a
    flotation concentrator at the rate of 1,000,000 tonnes per year.

  * The incremental investment, estimated at US$ 49 million, for the
    construction of the flotation concentrator and related facilities (the "
    Process Plant") indicates an internal rate of return ("IRR") of 16.9% based
    on 100% equity utilizing only the 4.24 million tonnes of near surface
    indicated resources.  Base case annual production is estimated to be about
    44 million pounds of copper for 4.5 years.  The IRR and project economics
    may be improved by an extension of the mine life.

  * Further resources to extend the mine life beyond this initial phase may
    exist in the underlying sulphides, and the underground exploration program
    to convert resources into reserves will be completed concurrently with
    mining of the near surface supergene and transition resources.

Engineering Studies

African Copper has been active throughout 2005 and early 2006 at its Dukwe
Project in north-eastern Botswana conducting a major exploration and engineering
programme. These 2005/06 programmes and future recommended programmes have been
summarized in the report by Howe entitled "Technical Report on the Dukwe Copper
Project and the Matsitama Prospecting Licences Botswana, Africa," dated March
30, 2006 that can be found on SEDAR at www.sedar.com and on the Company's
website at www.africancopper.com.  The programmes that have been reviewed
include the following:



  * a detailed engineering study focused on a 2,250 tonnes per day ("t/d")
    open pit heap-leach solvent extraction-electrowinning ("SX/EW") facility to
    treat the near surface oxide, supergene and transition material that exists
    within 170 metres of surface;
  * process plant design and costing on a 3,000 t/d crushing, ball mill and
    flotation plant with dry stacked tailings for treating the supergene,
    transition and deeper sulphide portions of the deposit;
  * a geotechnical drilling program to define pit-slope stability;

  * metallurgical testwork including bench scale flotation batch tests and
    locked cycle tests on the sulphide and supergene portions of the deposit;
  * further column tests on the oxide and supergene mineralization;
  * mining investigations for a selective underground mining operation to
    support the flotation plant, including underground access options, mining
    methodology and geotechnical testing, design and costing;
  * updates of environmental, archaeological, and water resources studies and
    permitting applications;
  * access road design and construction;

*         copper concentrate sales and marketing investigations;

  * a 38,000 metre resource definition drill program consisting of
    metallurgical holes, twinned and scissor verification holes, and outline and
    infill holes.



Dukwe development plan



The Dukwe deposit development plan as recommended by Howe includes:



*         underground trial mining and exploration, and

*         construction of a flotation concentrator.



African Copper plans to commence the development of the underground access in
early Q3 of this year, subject to arranging appropriate financing and awarding
excavation contracts.  This program will allow access to both the near surface
resources (above 170 m vertical depth), and provide a platform for further
exploration of the underlying sulphides.  The underground development plan for
Dukwe has been estimated to cost about US$32.3 million.



Howe concludes in the Technical Report that the construction of the Process
Plant can be justified if the current near surface indicated resource is
extracted through the proposed underground exploration access.  Howe has
investigated the project economics for the construction of the Process Plant
based solely on the near surface material bearing the full cost of the plant.



The near surface deposit contains high grade supergene and transition indicated
resources estimated at 4.24 million tonnes at 2.43% Cu. These grades and tonnage
include 12.5% dilution at 0.5% Cu cut-off and a 90% mining extraction.
Underground trial mining is required to verify these dilution and extraction
parameters and to move these resources into a reserve category, but this will be
done concurrently with the development of underground access.

The Technical Report proposes that the Company construct a 1,000,000 tonnes per
year processing plant which includes 3-stage crushing followed by floatation
circuits.  Tailings will be dry stacked and a paste backfill plant has been
sized.  The estimated capital cost for this portion of the project, including
all surface infrastructures, EPCM, contingency and working capital, is US$49
million.



Based on the indicated resources that are proposed to be extracted in the first
4.5 years, the operation could produce approximately 44 million pounds of copper
per year at a cost of about US$31 per tonne (cash costs between US$0.60 and
US$0.70 per pound).  Including treatment, refining and transportation, the total
operating costs are estimated at US$49 per tonne.  Process recoveries are
estimated to be 86%.  Based on 100% equity, the Technical Report shows that the
return on the incremental capital required for the construction of the Process
Plant has a 16.9% IRR and a payback of 2.1 years.



The project economics do not include the US$32.3 million cost of the underground
development programme, nor does it include estimates for interest and government
royalties. The financial model incorporates fixed copper prices based on the
current LME forward contract prices using US$1.80/lb for the first year of
mining, US$1.50/lb for the second year, US$1.30/lb for the third year and
US$1.20/lb thereafter. Based on the sensitivity analysis undertaken by Howe,
copper grade and copper price have the greatest impact on cash flow and
therefore the return of the Process Plant capital investment. This assessment is
preliminary in nature and there is no certainty that it will be realized.



During the initial years of production, exploration of the underlying sulphide
portions of the deposit may result in additional material being added to the
mining plan. This may extend the mine life assuming the proposed underground
exploration confirms the grade, tonnage and continuity of the underlying
sulphide resources.  Mineral resources that are not mineral reserves do not have
demonstrated economic viability.



The Technical Report is compliant with National Instrument 43-101. Unless
otherwise indicated, technical information contained in this release is based on
information compiled by Howe.  Messrs. F. Lee, H. Coates, M. Newbury, and D.
Titaro, who are employees of, or consultants to Howe and are independent of
African Copper are the qualified persons (as defined in National Instrument
43-101) overseeing preparation of the Howe report and are responsible for the
technical information contained therein . This press release has been prepared
under F. Lee's supervision.



In addition to the Dukwe Project the Company's other interests are the 4,000 sq
km Matsitama exploration concession adjacent to Dukwe, which contains two known
copper deposits and numerous base metal exploration targets.



African Copper is a tri-listed (AIM, TSX, Botswana Stock Exchange) international
exploration company.  African Copper has approximately 52 million shares
outstanding.



                                    - Ends -



This document may contain "forward looking statements". Forward looking
statements include, but are not limited to, statements with respect to the
future price of copper, the estimation of mineral reserves and resources, timing
of the development of the Company's projects, budgets, capital and operating
cost estimates and forecasts, results of mining operations, mining extraction
and recovery rates, the conversion of mineral resources to mineral reserves,
estimations of mine life, success of exploration activities, permitting time
lines, requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and the timing and possible outcome of pending and future
regulatory applications. In certain cases, forward looking statements can be
identified by the use of words such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will be taken", "occur" or "be achieved"
and include the negative variation of such phrases. Forward looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the actual results, performance or achievements of the Company or the Company's
projects, or any of them, to be materially different from any future results,
performance or achievements expressed or implied by the forward looking
statements. Such factors include, among others, risks related to conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of copper; unexpected increases in capital or operating
costs; possible variations in mineral resources or reserves, grade or recovery
rates; failure of equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; delays in obtaining
governmental consents, permits, licences and registrations or financing or in
the completion of development or construction activities.  Although the Company
has attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward looking
statements, there may be other factors that cause actions, events or results not
to be as anticipated, estimated or intended. There can be no assurance that
forward looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward looking
statements.

The Toronto Stock Exchange does not accept responsibility for the adequacy or
accuracy of this release.

For further information please visit www.sedar.com or our website at
www.africancopper.com  or contact:

African Copper Plc                Numis Securities Limited (NOMAD)         Parkgreen Communications
David Jones / Joseph Hamilton     John Harrison / Nick Westlake            Justine Howarth / Ana Ribeiro
[phone]               [phone]                      [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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