Katanga Mining Announces Q3 2012 Production Results and Date for Release of Q3 2012 Financial Results
ZUG, SWITZERLAND, Oct. 30, 2012 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its Q3 2012 production results and date for release of Q3 2012 financial results.
Highlights during the three and nine months ended September 30, 2012, and Outlook
- During the three months ended September 30, 2012 ("Q3 2012"), the Company mined 1,596,822 tonnes of ore (29% higher than the three months ended September 30, 2011 ("Q3 2011")) at a grade of 4.29% resulting in contained copper in ore mined of 68,563 tonnes, approximately 274,000 tonnes on an annualized basis. During the nine months ended September 30, 2012 ("Q3 YTD 2012"), the Company mined 4,128,283 tonnes of ore (15% higher than the nine months ended September 30, 2011 ("Q3 YTD 2011") at a grade of 4.04% resulting in contained copper in ore mined of 166,708 tonnes.
- Ore mined and hoisted at KTO Underground Mine during Q3 2012 was a record 505,008 tonnes, a 27% increase over Q3 2011. The average copper grade for Q3 2012 was 3.64%. During Q3 YTD 2012, ore mined and hoisted was 1,377,893 tonnes, a 15% increase over Q3 YTD 2011. The average copper grade for Q3 YTD 2012 was 3.65%.
- Ore mined at KOV Open Pit during Q3 2012 was a record 1,091,814 tonnes, 30% above Q3 2011. The copper grade of ore mined from KOV Open Pit for Q3 2012 averaged 4.59%. During Q3 YTD 2012, the Company mined 2,750,390 tonnes of ore, 38% above Q3 YTD 2011. The copper grade of ore mined averaged 4.24%.
- Higher grade ore has become available during Q3 2012 in Cut 1D as mud has been removed from the bottom of KOV Open Pit.
- Ore milled at the Kamoto Concentrator ("KTC") during Q3 2012 was a production record of 1,274,850 tonnes, an increase of 24% from Q3 2011. During Q3 YTD 2012, 3,511,566 tonnes were milled, an increase of 17%.
- Notwithstanding the power availability issues detailed below, copper produced in metal and concentrate during Q3 2012 totalled a production record of 25,868 tonnes, and an increase of 9% compared to Q3 2011. During Q3 YTD 2012, 68,929 tonnes were produced, with copper metal produced increasing by 14%.
- Cobalt produced totalled 521 tonnes for Q3 2012. During Q3 YTD 2012, 1,591 tonnes were produced.
Copper and cobalt production continued to be adversely affected by
recurrent general power disruptions in the DRC. During Q3 2012,
approximately 516 production hours were lost across the operation due
to power disruptions. This amounts to approximately 21 days of lost
production and includes the time from the power disruption until
equipment is operating at pre power disruption capacity. The lost
production hours across the operation during Q3 YTD 2012 amounted to
approximately 1,187 hours or 49 days. The lost production time excludes
the adverse impact on equipment availability due to the unplanned shut
downs and subsequent start ups of the equipment due to the power
The new convertor as part of the World Bank power project and the new synchronous condenser as part of the refurbishment of the Democratic Republic of Congo's power generating, transmission and distribution systems are expected to be commissioned during the fourth quarter of 2012. Commissioning has been affected by the transport industry strike in South Africa during September and October 2012 as well as the strike at the Kasumbalesa border post during October 2012.
Post commissioning, the Company expects power disruptions to decrease. In the medium to long term, improvements in infrastructure as a result of the Power Project are expected to improve the reliability and stability of electricity supplies.
- Due primarily to the strikes in South Africa and at the Kasumbalesa border post, the Company expects the first copper cathode production through the new Solvent Extraction "SX" plants and converted copper electro-winning facility during the fourth quarter of 2012. Mechanical completion of the Updated Phase 4 Expansion is expected in the third quarter of 2013.
- The first phase of the feasibility study for the potential T17 underground mine is expected to be completed during the first quarter of 2013. This will potentially allow for the exploitation of additional T17 mineral resources below the bottom of the current open pit through underground mining techniques.
The Company will release its third quarter 2012 financial results on or about November 14, 2012.
This Press Release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and a "qualified person" as such term is defined in NI 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, including, but not limited to, the first copper cathode production through the new SX plants, the mechanical completion of the Updated Phase IV expansion, the anticipated decrease in power disruption relating to the upgrade in power infrastructure, the completion of the upgrade in power infrastructure and the completion of the feasibility study for the potential T17 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.
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, deylays 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