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Kipushi Copper-Cobalt Project Leaching Engineering Study Completed

-          Engineering Study on Kipushi Leaching Plant completed;

-          Metallurgical testing shows recoveries of 90% for copper and 85% for cobalt achievable;

-          Board of Soludo Lambert Mining SAS decide to proceed to build the Kipushi Leaching Plant.

Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) is pleased to announce that an Engineering Study for a leaching plant at the Kipushi Cobalt-Copper Tailings Project (Project) in the Democratic Republic of Congo (DRC) was recently completed by consultants Minnovo Pty Ltd (Minnovo).

The Engineering Study was undertaken following the excellent results achieved from a leach testwork program at the Project, with recoveries of 90% for copper and 85% for cobalt being achieved from laboratory scale testwork undertaken to date.

The Project is held by Soludo Lambert Mining SAS (Soludo Lambert), which is 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

The tailings will be processed through a newly built 1Mtpa acid leach plant, adjacent to the existing flotation plant, designed to produce a mixed hydroxide precipitate (MHP) product.

The process flow sheet developed by Minnovo based on the testwork completed is shown in Figure 2.

Figure 2: Kipushi Process Flowsheet

The capital costs estimated by Minnovo, with inputs from Soludo Lambert, presented in second quarter 2018 in United States dollars (USD) to an accuracy of ±35% 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 estimated by Minnovo, with inputs from Soludo Lambert, presented in second quarter 2018 in United States dollars (USD) to an accuracy of ±35 % and is 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

Based on the preliminary details delivered by Minnovo prior to the completion of the Engineering Study the Board of Soludo Lambert made a decision to pursue construction of the leaching plant and appointed Minnovo in May 2018 to undertake the detailed design.

Cape Lambert’s Chairman, Tony Sage, said “I am very pleased that we pursued the leaching alternative to process the Kipushi tailings, as the recoveries for the leaching are far superior than achieved with the existing flotation plant. Preliminary details from the Engineering Study provided the basis for the decision to build the plant, which will be done in earnest to capitalise on the current high price for cobalt”.

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

949,310,216

Unlisted Options

23,500,000 ($0.05 exp 31 Dec 2018)

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 Muller

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

Please follow this link to view entire original news:

https://www.asx.com.au/asxpdf/20180716/pdf/43wk1nwgfn43h6.pdf

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.