Katanga Mining announces Q3 2013 production results and date for release of Q3 2013 financial results
ZUG, SWITZERLAND, Oct. 30, 2013 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its Q3 2013 production results and date for release of Q3 2013 financial results.
Highlights during the three and nine months ended September 30, 2013
- During the three months ended September 30, 2013 ("Q3 2013"), the Company achieved records in KOV Open Pit waste mining, Kamoto Concentrator ("KTC") ore milling and concentrate production and Luilu copper metal production.
- During Q3 2013, the Company mined 1,571,617 tonnes of ore (a 2% decrease over the three months ended September 30, 2012 ("Q3 2012")) at a grade of 3.69% resulting in contained copper in ore mined of 57,919 tonnes (a 16% decrease over Q3 2012). During the nine months ended September 30, 2013 ("Q3 YTD 2013"), the Company mined a record 4,664,273 tonnes of ore (a 13% increase over the nine months ended September 30, 2012 ("Q3 YTD 2012")) at a grade of 4.21% resulting in contained copper in ore mined of 196,404 tonnes (an 18% increase over Q3 YTD 2012).
- Ore mined at KOV Open Pit during Q3 2013 was 1,102,207 tonnes, a 1% increase over Q3 2012. The average copper grade of ore mined from KOV Open Pit during Q3 2013 was 3.83%, resulting in contained copper in ore mined of 42,214 tonnes (a 16% decrease over Q3 2012). This decrease was in line with management's expectation as part of its focus on stripping activity during the quarter. Ore mined at KOV Open Pit during Q3 YTD 2013 was a record 3,360,466 tonnes, a 22% increase over Q3 YTD 2012. The average copper grade of ore mined from KOV Open Pit during Q3 YTD 2013 was 4.70%, resulting in contained copper in ore mined of 152,430 tonnes (a 31% increase over Q3 YTD 2012).
- Waste mined at KOV Open Pit during Q3 2013 was a record 10,646,705 tonnes, a 133% increase over Q3 2012. Waste mined at KOV Open Pit during Q3 YTD 2013 was a record 22,228,863 tonnes, a 33% increase over Q3 YTD 2012.
- Ore mined and hoisted at KTO Underground Mine during Q3 2013 was 448,206 tonnes, an 11% decrease over Q3 2012. The average copper grade of ore mined from KTO Underground Mine during Q3 2013 was 3.30%, resulting in contained copper in ore mined of 14,801 tonnes (a 20% decrease over Q3 2012). Ore mined and hoisted at KTO Underground Mine during Q3 YTD 2013 was 1,282,602 tonnes, a 7% decrease over Q3 YTD 2012. The average copper grade of ore mined from KTO Underground Mine during Q3 YTD 2013 was 3.36%, resulting in contained copper in ore mined of 43,070 tonnes (a 14% decrease over Q3 YTD 2012). Lower mined volumes and grades are a result of near-term chamber availability issues. Management expects mined volumes and grades to improve by Q4 2013 due to the increased backfill tonnes achieved in Q3 2013 and the acceleration of primary and secondary development.
- Ore milled at KTC during Q3 2013 was a record 1,478,387 tonnes, a 16% increase over Q3 2012. Ore milled at KTC during Q3 YTD 2013 was a record 4,107,823 tonnes, a 17% increase over Q3 YTD 2012.
- Copper produced in concentrate and metal for Q3 2013 totalled 34,512 tonnes, a 33% increase over Q3 2012. Copper produced in concentrate and metal for Q3 YTD 2013 totalled 94,786 tonnes, a 38% increase over Q3 YTD 2012.
- As a result of the continued commissioning of various elements of the Updated Phase 4 Project and notwithstanding the residual power availability issues, copper metal production for Q3 2013 totalled a record 24,511 tonnes, a 51% increase over Q3 2012. Copper metal production for Q3 YTD 2013 totalled a record of 59,064 tonnes, a 25% increase over Q3 YTD 2012.
- In Q3 2013, a record 172,862 tonnes of concentrate containing 41,370 tonnes of copper were produced (Q3 2012 - 134,539 tonnes containing 34,117 tonnes of copper). In Q3 YTD 2013, a record 485,297 tonnes of concentrate containing 113,146 tonnes of copper were produced (Q3 YTD 2012 - 373,847 tonnes containing 94,022 tonnes of copper).
- Cobalt produced totalled 741 tonnes for Q3 2013, a 42% increase over Q3 2012 and the highest amount of cobalt produced in a quarter since Q4 2010. Cobalt produced totalled 1,766 tonnes for Q3 YTD 2013, an 11% increase over Q3 YTD 2012.
- The feasibility study for extending the T17 Open Pit mine into an underground mining operation was completed during Q3 2013. The results of the feasibility study and the next phase of the process are under consideration by management.
- The Updated Phase 4 Expansion Project commissioning highlights for Q3 2013 include new floatation circuit at KTC and the oxide receiving, leaching and CCD facilities at Luilu. The third train of SX plant, the new roaster, and the new lime loading and storage plant are now expected to be completed during Q4 2013. Total project cost remains $769 million as previously announced.
- Construction has commenced on Phase 5, which includes EW3 (2 x 30,000 tonnes per annum capacity Electro-Winning "EW" tankhouse units) and CM5 (mill of 11,700 tonnes per day nameplate capacity), and is now expected to be completed in Q4 2014.
The Company expects to release its third quarter 2013 financial results
on or about November 14, 2013.
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, completion of the third train of the SX plant, the new roaster and the new lime loading and storage plant being completed in Q4 2013 and Phase 5 being completed in Q4 2014. 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 Q3 2013 will provide access to higher grade zones at KTO Underground Mine and all necessary equipment and parts will be delivered and installed on schedule for Updated Phase 4 and Phase 5.
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.
This press release and the information forming the basis hereof 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.
SOURCE Katanga Mining Limited