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Cape Lambert identifies potential high-recovery pathway at cobalt copper tailings project, shares up

Last updated: 04:00 27 Mar 2018 BST, First published: 23:12 26 Mar 2018 BST

Aerial view of Kipushi tailings dam and processing plant
Several traders have indicated their interest in offtaking the project's concentrate

Cape Lambert Resources Ltd (ASX:CFE) has received results from test work completed at the Kipushi Cobalt-Copper Tailings Project in the Democratic Republic of Congo.

The Kipushi Project is 50:50 joint venture and consists of a tailings dam and nearby processing plant on a mining licence.

WATCH: Cape Lambert seeing ‘extreme’ interest from potential offtakers for Kipushi concentrate

The company has been undertaking flotation test work for the purposes of finding offtake partners.

Shares were up 30% intra-day to 4.8 cents.

Leaching test work recovered 95.8% for copper and 83.5% for cobalt

Test work indicated that the recovery of copper and cobalt in the flotation process would be in the order of 55% to 65% for copper and 40% to 50% for cobalt.

Significantly, leach extraction testing was then conducted to investigate its use as a possible alternative.

Results were very encouraging, showing recoveries of 95.8% for copper and 83.5% for cobalt at a 75-micron grind size after three hours of leaching.

Investigating the development of a leaching plant

Further work is now underway aimed at optimising the leach extraction process and providing a reduction in operating cost.

Given the positive leaching results, Cape Lambert’s joint venture partner is considering a separate leaching plant to go alongside the flotation plant undergoing an upgrade.

A leaching plant would aim to produce a high-grade copper and cobalt hydroxide product.

Further testing is being undertaken to determine the quality of hydroxide product that can be achieved.

12-week pre-feasibility study underway

To progress the development of a potential leaching plant, the company will undertake a pre-feasibility study on the leach extraction plant.

This is expected to take about 12 weeks to complete.

Indicative terms for offtake agreements near

Sample concentrates produced in the December quarter grading between 10%-12% copper and 1.8% to 2% cobalt were dispatched to various traders for testing.

Several traders have now indicated their interest in offtaking the concentrate produced and will soon provide indicative terms for a potential offtake agreement.

Cape Lambert seeing ‘extreme’ interest from potential offtakers for Kipushi...

Tony Sage, executive chairman for Cape Lambert Resources Ltd (ASX:CFE) speaks to Proactive Investors from Mines and Money Asia, where he says sentiment is buoyant on cobalt. The company recently acquired two synergistic cobalt copper tailings projects, in the Democratic Republic of Congo...

on 6/4/18