Zambia Daily Mail
By NKOLE MULAMBIA
AUSTRALIAN mining company Blackthorn Resources intends to invest over US$600 million in its copper project in Zambia.
Blackthorn, which is listed on the Australian Securities Exchange, plans to invest US$680 million in the Kitumba copper mine in Mumbwa.
The firm has previously indicated that it will explore all avenues to realise shareholder value for the project.
Blackthorn, which announced the investment in its fourth quarter activities report on July 31, is currently discussing with a number of potential partners with a view to supporting the feasibility study and future stages of the project.
“These discussions have progressed with various potential partners undertaking due diligence.
The project development cost is estimated at US$680 million with capital intensity of US$11,700 per annual tonne of copper produced and a payback of 3.5 years after start of production,” the report says.
The report further says the company applied for a large-scale mining licence for the copper project in Zambia.
The mining licence application is for a three-million metric tonne per year underground mine, processing facility and associated infrastructure development.
Recently the company confirmed that it had commenced a feasibility study on the Kitumba project to determine the value of the project.
The firm says the immediate tasks would be the critical drilling programme and the employment of study manager, as well as the acquisition of the mining licence.
The feasibility study commenced with three drilling rigs, targeting infill boring for additional resource definition and further metallurgical, geo-technical and hydro-eological assessments.