ZUG, SWITZERLAND, Aug. 12, 2013 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its Q2 2013 production results and date for release of Q2 2013 financial results.
Highlights during the three and six months ended June 30, 2013
- During the three months ended June 30, 2013 ("Q2 2013"), the Company mined a record 1,979,002 tonnes of ore (a 52% increase over the three months ended June 30, 2012 ("Q2 2012")) at a grade of 4.33% resulting in contained copper in ore mined of 85,661 tonnes (a 58% increase over Q2 2012). During the six months ended June 30, 2013 ("H1 2013"), the Company mined a record 3,092,656 tonnes of ore (a 22% increase over the six months ended June 30, 2012 ("H1 2012")) at a grade of 4.48% resulting in contained copper in ore mined of 138,485 tonnes (a 41% increase over H1 2012).
- Ore mined at KOV Open Pit during Q2 2013 was a record 1,548,374 tonnes, an 83% increase over Q2 2012. The average copper grade of ore mined from KOV Open Pit during Q2 2013 was 4.57%, resulting in contained copper in ore mined of 70,782 tonnes (an 89% increase over Q2 2012). Ore mined at KOV Open Pit during H1 2013 was a record 2,258,260 tonnes, a 36% increase over H1 2012. The average copper grade of ore mined from KOV Open Pit during H1 2013 was 5.12%, resulting in contained copper in ore mined of 110,216 tonnes (a 66% increase over H1 2012).
- In Q2 2013, the Company commissioned five new Caterpillar 793 trucks (240 tonnes load capacity) and four new Caterpillar 777 trucks (100 tonnes load capacity).
- Ore mined and hoisted at KTO Underground Mine during Q2 2013 was 430,628 tonnes, a 6% decrease over Q2 2012. The average copper grade of ore mined from KTO Underground Mine during Q2 2013 was 3.46%, resulting in contained copper in ore mined of 14,878 tonnes (a 12% decrease over Q2 2012). Ore mined and hoisted at KTO Underground Mine during H1 2013 was 834,396 tonnes, a 4% decrease over H1 2012. The average copper grade of ore mined from KTO Underground Mine during H1 2013 was 3.39%, resulting in contained copper in ore mined of 28,269 tonnes (an 11% decrease over H1 2012). Lower mined volumes and grades are a result of ongoing chamber availability issues. Management expects mined volumes and grades to improve by Q4 2013 due to the increased backfill tonnes achieved in Q2 2013, the reintroduction of cement backfill and through the acceleration of primary and secondary development.
- Ore milled at the Kamoto Concentrator ("KTC") during Q2 2013 was a record 1,376,612 tonnes, a 12% increase over Q2 2012. Ore milled at KTC during H1 2013 was a record 2,629,436 tonnes, an 18% increase over H1 2012.
- Notwithstanding the residual power availability issues, copper produced in metal and concentrate for Q2 2013 totalled a production record of 31,674 tonnes, a 30% increase over Q2 2012. Copper produced in metal and concentrate for H1 2013 totalled a production record of 60,274 tonnes, a 40% increase over H1 2012 as a result of the continued commissioning of various elements of the Updated Phase 4 Project.
- In Q2 2013, a record 165,575 tonnes of concentrate containing 37,968 tonnes of copper were produced (Q2 2012 - 133,803 tonnes containing 32,751 tonnes of copper). In H1 2013, a record 312,435 tonnes of concentrate containing 71,776 tonnes of copper were produced (H1 2012 - 239,308 tonnes containing 59,906 tonnes of copper).
- Cobalt produced totalled 693 tonnes for Q2 2013, a 45% increase over Q2 2012. Cobalt produced totalled 1,025 tonnes for H1 2013, a 4% decrease over H1 2012.
- Updated Phase 4 Expansion Project (which is described in Katanga's technical report entitled "An Independent Technical Report on the Material Assets of Katanga Mining Limited, Katanga Province, Democratic Republic of Congo" dated March 30, 2012 and filed on SEDAR at www.sedar.com under Katanga's profile) commissioning highlights for Q2 2013 were:
- Commissioning of the second train of the Solvent Extraction ("SX") plant increasing SX plant capacity to 200,000 tonnes per annum ("tpa") of copper transfer;
- Completion and commissioning of the converted EW facility with all sections brought into operation, increasing the new tankhouse capacity to 200,000 tpa of copper cathode; and
- Commissioning of the new sulphide concentrate receiving section.
- Copper metal produced through the commissioned section of the new plant, as part of the Updated Phase 4 Expansion Project, reached 19,309 tonnes during Q2 2013, a 112% increase over Q1 2013.
The Company expects to release its second quarter 2013 financial results on or about August 14, 2013.
This Press Release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and a "qualified person" as such term is defined in National Instrument 43-101. Mr. Henderson has reviewed and approved the contents of this press release.
About Katanga Mining Limited
Katanga Mining Limited operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT.
Forward Looking Statements
This press release may contain forward-looking statements. Forward-looking statements include, but are not limited to, improved volumes and grades to be mined at KTO Underground Mine. Often, but not always, 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 describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include that the increased development of development metres and backfill tonnes in Q2 2013 will provide access to higher grade zones at KTO Underground Mine.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the actual results of current exploration activities; actual results and interpretation of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, development or construction activities, delays due to strikes or other work stoppage, both internal and external to the Company as well as those factors disclosed in the Company's current annual information form and other publicly filed documents. Although Katanga 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 Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.
SOURCE Katanga Mining Limited