ARC Minerals Limited (LON:ARCM) shares rose in early trading Tuesday after it updated on the construction of a commercial-scale demonstration plant at its Zamsort copper-cobalt project in Zambia.
The mining firm said during November last year the technical team had completed the front end of the plant, comprising two crusher units, screen, a ball mill and conveyors, which had then been commissioned in December and had an initial capacity to process 10,000 tonnes per month.
The back end of the plant is due to be commissioned in the next week, the company said, with initial production scheduled to begin shortly thereafter.
The plant has a fully permitted renewable mining license to 2025 and is funded to initial production, with ARC adding that it was currently in discussions with a number of off-takers regarding future sales.
Nick von Schirnding, ARC’s executive chairman, said the company had been “extremely disciplined” with its capital expenditure requirements over the last year and had met its target of completing the plant on schedule and on budget.
“Since we came on board less than a year ago we have, for a relatively modest investment of under half a million dollars, now got a plant that is capable of producing copper/cobalt concentrates and generate future revenues for the group.”
Schirnding added that the company was finalising it airborne survey and geochemistry analysis conducted last year and that an update was “imminent”.
Shares were up 2.7% at 2.8p.
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