Kipushi Cobalt-Copper Tailings Project - Market Update

Highlights

-          Engineering Study updated;

-          Major equipment packages tendered;

-          Concrete works being tendered;

-          Design work for Leach Residue Storage Facility awarded.

Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) is pleased to provide an update on the progress at the Kipushi Cobalt-Copper Tailings Project (Project) in the Democratic Republic of Congo (DRC).

The Project is held by Soludo Lambert Mining SAS (Soludo Lambert), under a 50/50 joint venture arrangement with local entity Paragon Mining SARL (Paragon) and Cape Lambert. The Project involves the reprocessing of copper-cobalt tailings contained in the Kipushi Tailings Storage Facility (TSF) located near the town of Kipushi approximately 25km from Lubumbashi, refer Figure 1.

Figure 1: Project Location

As noted in the CFE June 2018 Quarterly Report, precipitation tests completed produced a mixed hydroxide precipitate (MHP) with copper and cobalt grades ranging from 22.8% - 31.9% and 9.77% - 18.4% respectively. The value of 18.4% cobalt was for a precipitate produced after the removal of copper and indicated that a higher grade cobalt MHP could be produced as an alternative to the mixed copper/cobalt MHP (refer ASX announcement dated 31 July 2018).

Based on this testwork, the Engineering Study recently completed by Minnovo Pty Ltd was updated to provide for the production of a copper-rich MHP and a cobalt-rich MHP separately. The production of separate products is advantages as the copper-rich MHP can be sold to copper focused companies whereas, the cobalt-rich MHP can be sold to cobalt focused companies, therefore, greatly expanding the potential buyer base.

The updated process flow sheet developed by Minnovo is shown in Figure 2.

Figure 2: Kipushi Process Flowsheet

The capital costs, presented in second quarter 2018 in United States dollars (USD) to an accuracy of ±35%, were updated by Minnovo for the revised process circuit, with inputs from Soludo Lambert, are summarised in Table 1.

Table 1: Capital Cost Estimate Summary

The capital cost was developed from a number of sources as summarised in Table 2.

Table 2: Basis for Capital Cost Estimate

The operating costs updated by Minnovo, with inputs from Soludo Lambert, presented in second quarter 2018 in United States dollars (USD) to an accuracy of ±35% are summarized in Table 2.

Table 2: Kipushi Operating Costs

The operating cost estimate was developed from a number of sources as detailed in Table 3.

Table 3: Basis for Site Operating Cost Estimate

Following the commencement of the detailed design by Minnovo, tenders for the major pieces of equipment (thickeners, filter presses, horizontal belt filter, SO2 scrubber and clarifier) were issued, with responses due back shortly.

Soludo Lambert has issued the tender document for the concrete works at the leaching plant to four reputable companies operating in the DRC, with proposals due at the end of August 2018.

Soludo Lambert has also awarded the design of the leach residue storage facility (LRSF) to Golder Associates Africa, with a site visit to occur shortly to undertake geotechnical investigations at the proposed LRSF location.

Cape Lambert’s Chairman, Tony Sage, said “I am very pleased that the updated Engineering Study has provided for the production of separate cobalt-rich and copper-rich MHP products that we anticipate it will attract a much wider market of buyers and that the engineering design works are progressing with equipment and construction works out to tender.”

Yours faithfully

Cape Lambert Resources Limited

Tony Sage

Executive Chairman

Cape Lambert Resources Limited (ASX: CFE) is a fully funded mineral development company with exposure to iron ore, cobalt, copper, gold, uranium, lithium and lead-silver-zinc assets in Australia, Europe, Africa and South America.

Australian Securities Exchange

Code: CFE

Ordinary shares

1,011,734,914

Unlisted Options

15,336,363 ($0.07 exp 12 Mar 2020)

7,667,727 ($0.07 exp 19 Mar 2020)

5,250,000 ($0.04 exp 31 Mar 2020)

Board of Directors

Tony Sage 

Executive Chairman

Tim Turner 

Non-executive Director

Stefan Müller

Non-executive Director

Melissa Chapman
Company Secretary

Cape Lambert Contact

Investor Relations

Phone:  +61 8 9380 9555

Email: info@capelam.com.au

www.capelam.com.au

The Metallurgical testwork data in this presentation is based on information compiled by Mr Chris Larder who has 35 years experience in the mining and mineral processing industries. Mr Larder has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration. Mr Larder is a consultant to Cape Lambert Resources Limited and consents to the results being released in the form and context in which they appear