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Press release from CNW Group

Katanga Mining announces ore reserves and mineral resources

Monday, March 04, 2013

Katanga Mining announces ore reserves and mineral resources08:31 EST Monday, March 04, 2013ZUG, SWITZERLAND, March 4, 2013 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") is pleased to announce its ore reserve and mineral resource estimates as at December 31, 2012.Key Updates: Mineral ResourcesOverall, the measured and indicated mineral resource for Kamoto Copper Company ("KCC") (in which the Company has a 75% interest) decreased by 6.0 million tonnes.Changes in the measured mineral resource for KTO and KOV Open Pit is a decrease of 1.7 million tonnes each at KTO and KOV Open Pit based on the depletion of the mineral resource due to mining in 2012.Changes in the indicated mineral resource for KOV Open Pit is a decrease of 2.6 million tonnes based on the depletion of the mineral resource due to mining in 2012.Changes in the inferred mineral resource for KOV Open Pit is a decrease of 0.1 million tonnes based on the depletion of the mineral resource due to mining in 2012.The RSC lithological component of the T-17 Open Pit below planned pit-bottom (8.9 million tonnes) was excluded from the resource statement to conform to the reporting of the mineral resources of KTO, where the RSC lithological component is excluded due to mining method limitations in the underground mines. All of these mineral resources are inferred mineral resources.There are no changes in the mineral resources reported for Mashamba East Open Pit, T-17 Open Pit, Kananga Mine and Tilwezembe Open Pit, as mining was not undertaken in these areas in 2012 and no geological work was done on these areas in 2012.A reconciliation table comparing the 2011 and 2012 mineral resource estimates is set out in Annexure A.Key Updates: Ore ReservesThe outcome of the December 31, 2012 ore reserve estimate is a decrease of 5.1 million tonnes of ore reserves, based on 5.5 million tonnes being mined in 2012 and minor, short-term ore definition changes and pit design adjustments undertaken in 2012.A reconciliation table comparing the 2011 and 2012 ore reserves is set out in Annexure B andthe key mining parameters which inform the ore reserve estimates are set out in Annexure CKATANGA MINING LIMITEDCONSOLIDATED ORE RESERVES AND MINERAL RESOURCES 1, 2, 3, 4, 5, 6, 7, 8, 9as at December 31, 2012Ore ReservesMt%TCu%TcoProved11.23.400.50Probable79.74.290.44Proved & Probable90.94.18 0.45    Mineral Resources   Measured37.14.140.55Indicated245.53.990.45Measured & Indicated282.64.010.46Inferred169.02.420.31More detailed ore reserve and mineral resource estimates are as follows:KATANGA MINING LIMITEDPROVED AND PROBABLE ORE RESERVES 1, 2, 5, 6, 7, 9as at December 31, 2012Ore ReservesMt%TCu%TCoKTO30.63.590.52T-17 Open Pit2.53.510.56Mashamba East Open Pit5.93.000.36KOV Open Pit51.94.760.42TOTAL 90.94.18 0.45 KATANGA MINING LIMITEDMEASURED AND INDICATED MINERAL RESOURCES 1, 2, 3, 4, 5, 6, 8, 9as at December 31, 2012Measured and Indicated Mineral ResourcesMt%TCu%TCoKTO63.34.580.58T-17 Open Pit13.93.880.61Mashamba East Open Pit75.01.800.38KOV Open Pit116.85.390.42Kananga Mine4.11.610.79Tilwezembe Open Pit9.51.890.60TOTAL282.64.010.46KATANGA MINING LIMITEDINFERRED MINERAL RESOURCES 1, 2, 3, 4, 5, 6, 8, 9as at December 31, 2012Inferred Mineral ResourcesMt%TCu%TCoKTO11.05.000.59T-17 Open Pit5.24.210.98Mashamba East Open Pit65.30.760.10KOV Open Pit69.73.580.32Kananga Mine4.02.000.98Tilwezembe Open Pit13.81.750.60TOTAL169.02.420.31Notes:The ore reserve and mineral resource estimates have been prepared in accordance with the classification criteria of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, as amended ("JORC Code").  If the definitions and classification standards adopted by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") had been used instead of those of the JORC Code, the estimates of mineral reserves and mineral resources would be substantially similar to the estimates of ore reserves and mineral resources presented here.The mineral resource estimates have been prepared by, or under the supervision of, Cornelius Willem Ries, PriSciNat and the ore reserve estimates have been prepared by, or under the supervision of, Jacobus Lotheringen, PrEng each of Golder Associates Africa Pty Ltd, who are each a qualified person under NI 43-101.Mineral resources are inclusive of ore reserves.Mineral resources which are not ore reserves do not have demonstrated economic viability.For KTO, the ore reserve and mineral resource estimates are for KCC's entire interest in such ore reserves and mineral resources, whereas the Company owns 75% of KCC.  La Generale des Carrieres et des Mines and La Société Immobilière du Congo, state-owned mining companies in the Democratic Republic of Congo, own the remaining 25% of KCC.Numbers may not add due to rounding.Unless otherwise noted, the Company's ore reserves are estimated using appropriate cut-off grades based on an assumed long term price of $4 790 per tonne of copper and long term price of $25 228 per tonne of cobalt. Ore reserves are estimated using appropriate process recoveries, operating costs and mine plans that are unique to each property and include estimated allowances for dilution and mining recovery.Unless otherwise noted, the Company's mineral resources are estimated using appropriate lithological interpretations, grade compositing and grade estimation techniques for copper and cobalt.The Company's normal data verification procedures have been used in collecting, compiling, interpreting and processing the data used to estimate ore reserves and mineral resources. Independent data verification has not been performed. However the data has been independently validated.Qualified Person and Technical ReportThis press release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and a 'qualified person' as such term is defined in NI 43-101. Mr. Henderson has reviewed and approved the contents of this press release.The Company's technical report entitled "An Independent Technical Report on the Material Assets of Katanga Mining Limited, Katanga Province, Democratic Republic of Congo" dated March 30, 2012 prepared by Golder Associates Africa (Pty) Ltd under the supervision of Mr. Willem van der Schyff as the "qualified person" is in compliance with NI 43-101 is filed under the Company's profile on SEDAR at www.sedar.com.Cautionary Note to US Investors concerning estimates of Measured, Indicated and Inferred Mineral ResourcesThe above tables uses the terms "Measured, Indicated and Inferred Mineral Resources" using the ore reserves and mineral resource categories of the JORC Code.  We advise US investors that while these terms are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them.  "Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of inferred mineral resources will ever be upgraded to a higher category.  In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies.  US investors are cautioned not to assume that any part or all of the inferred mineral resource exists, or is economically or legally mineable.About Katanga Mining LimitedKatanga 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 StatementsThis press release may contain forward-looking statements, including predictions, projections, and mineral reserve and mineral resource estimates. Forward-looking statements include, but are not limited to, ore reserve and mineral resource estimates.  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. 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, 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.Annexure AKatanga Mining Limited Mineral Resource Reconciliation at December 31, 2012ClassificationProject Area20122011VarianceMt%TCu%TCoMt%TCu%TCoMtMeasuredKTO30.44.360.5832.14.330.58(1.7)Mashamba East Open Pit0.00.000.000.00.000.000.0T-17 Open Pit4.52.710.544.52.710.540.0KOV Open Pit2.24.070.223.94.250.22(1.7)Kananga Mine0.00.000.000.00.000.000.0Tilwezembe Open Pit0.00.000.000.00.000.000.0Subtotal37.1 4.14 0.55 40.5 4.14 0.54 (3.4)IndicatedKTO32.94.780.5832.94.780.580.0Mashamba East Open Pit75.01.800.3875.01.800.380.0T-17 Open Pit9.44.440.659.44.440.650.0KOV Open Pit114.65.420.42117.25.410.42(2.6)Kananga Mine4.11.610.794.11.610.790.0Tilwezembe Open Pit9.51.890.609.51.890.600.0Subtotal245.5 3.99 0.45 248.1 3.98 0.45 (2.6)Measured andIndicatedKTO63.34.580.5865.04.480.57(1.7)Mashamba East Open Pit75.01.800.3875.01.800.380.0T-17 Open Pit13.93.880.6113.93.880.610.0KOV Open Pit116.85.390.42121.15.370.41(4.3)Kananga Mine4.11.610.794.11.610.790.0Tilwezembe Open Pit9.51.890.609.51.890.600.0TOTAL282.6 4.01 0.46 288.6 4.00 0.46 (6.0)InferredKTO11.05.000.5911.05.000.590.0Mashamba East Open Pit65.30.760.1065.30.760.100.0T-17 Open Pit5.24.210.985.24.210.980.0KOV Open Pit69.73.580.3269.83.580.32(0.1)Kananga Mine4.02.000.984.02.000.980.0Tilwezembe Open Pit13.81.750.6013.81.750.600.0TOTAL169.0 2.42 0.31 169.1 2.42 0.31 (0.1)Note: The KTO indicated mineral resource reported in 2011 was incorrectly reported in March 2012. The indicated mineral resources for KTO should have reflected: 32.9Mt; 4.78%TCu; 0.58%TCo, which is consistent with the reporting of the 2012 mineral resource.  The data has therefore been corrected in the above table for the 2011 indicated mineral resource for KTO.  See notes 1 to 6, 8 and 9 on page 3 of this press release relating to mineral resource estimates.Annexure BKatanga Mining Limited Ore Reserve Reconciliation as at December 31, 2012Mining operation2012 Reserve Estimate2011 Reserve EstimateMt%TCu%TCoMt%TCu%TCoKTO30.63.590.5232.43.590.52T-17 Underground0.93.510.570.93.510.57T-17 Open Pit1.63.520.561.63.520.56Mashamba East Open pit5.93.000.365.93.000.36KOV Open Pit51.94.760.4255.14.740.45Total90.9 4.18 0.4596.0 4.180.47Notes: See notes 1, 2, 5 to 7 and 9 on page 3 of this press release relating to ore reserve estimates.The ore reserve estimate at KTO is qualified up to 2014. Appropriate technical design and scheduling study is required to be completed to enable an ore reserve estimate from 2014 due to the material and strategic mine planning changes envisaged.  It must be considered that the mining methods envisaged are more familiar to the mine and have a higher overall extraction than the current strategy as reflected in the ore reserves (based on the 2008 SRK study).  The impact of these changes on the LOM Plan, mining infrastructure requirements and mining operational costs requires appropriate technical study.Annexure COre Reserve Estimation: Key Mining ParametersReference Mining Costs (USD $/t)2.40Reference Mining Processing (USD $/t)31.81Reference Mining Metal Price for Cu (USD $/t)4,790Reference Mining Metal Price for Co (USD $/t)25,228OperationMiningDilutionsMining andPillar LossesGeologicalLossesCut-off Grade(Cu)ProcessingRecoveries(Cu)ProcessingRecoveries(Co)KTO4% to 13%10% to 50%3% to 5%0.60%90.5%76.6%KOV9%1%5%0.60%85%65%T17 Underground5% to 10%5% to 35%5%0.60%85%65%T17 Extension Open Pit10%20%5%0.60%85%65%Mashamba East9%39%5%0.60%85%65%   SOURCE: Katanga Mining LimitedFor further information: Jeff  Best CEO Tel: +41 (041) 766 71 10 Paul Inbona CFO Tel:+41 (041) 766 71 10