At a glance
The Khoemacau flagship +60ktpa copper and +2Mozpa silver metal in concentrate Project has involved the development of the Zone 5 underground mine and associated infrastructure, and the upgrade and expansion of the existing Boseto processing plant. The Phase 2 Expansion will see production rise to +130ktpa copper and +5Mozpa silver metal in concentrate.
The Zone 5 deposit currently has a 22-year mine life, with a total mineral resource of 92Mt at 2.2% Cu and 22g/t Ag. This high grade deposit offers a 4.2km strike length and with average widths over 10m is ideally suited to modern, highly mechanised mining, delivering C1 cash costs over the life estimated at approximately $1.30 per pound* of copper and $1.80* per pound on an all-in sustaining basis.
The Project was fully funded, through the US$650 million facilities raised in 2019. The total Project development capital costs were approximately $412m (within 3% of the original budget), and commissioning of the process plant was completed in July 2021. Ramp of mining is underway and due to reach full capacity in Q4 2022.The process plant and infrastructure has demonstrated operations at full capacity and design specifications.
Resource development drilling and feasibility studies of the Phase 2 Expansion exploiting the Zone 5 N, Zeta NE and Mango NE deposits, which offer total mineral resources of 76Mt at 2% Cu and 34g/t Ag, are underway, while regional exploration continues to define additional exploration targets.
Steady state production from the Current Operations will be +60ktpa copper and +2Mozpa silver metal in concentrate, growing to +130ktpa and +5Mozpa respectively as part of the Phase 2 Expansion with the ability to extend production to +150ktpa and +6Moz respectively.
* net of silver credits at consensus pricing