Cobre Limited is initiating a study to assess the feasibility of extracting copper and silver from their Ngami Copper Project in Botswana. The study will evaluate a technique called In-Situ Copper Recovery (ISCR) alongside other methods. METS Engineering Group, a recognised consultant in the mining industry, will conduct the study which is expected to be completed by the end of Q3 2024. 

Recently, Cobre achieved a significant milestone in its Ngami Copper Project (NCP) located in Botswana's Kalahari Copper Belt. Along with the discovery of very high-grade copper, the company also checked the box for In-Situ copper recovery. The news isn't quite about a discovery of high-grade copper, but rather a step forward in how to extract it! 

They successfully completed the first stage of testing a new method to mine copper called In-Situ Copper Recovery (ISCR), and now have launched a feasibility test. METS Engineering Group (METS) has been appointed to conduct the study, which will be undertaken in five stages:

Five stages of the study

Stage 1: Gap Analysis

The initial phase aims to evaluate the technical and economic feasibility of the project by conducting a comprehensive analysis of engineering and process aspects at a strategic level.

Stage 2: Optimal Extraction Method Selection

 The next stage is to delve into the trade-offs associated with various extraction methods, namely ISCR (In Situ Copper Recovery), underground in-stope leaching, and open-pit heap leaching. The primary focus is on the extraction of copper-silver at NCP (Name of the Copper-Silver Mining Site). 

Stage 3: Process Design Study

This stage will further develop the optimal extraction method chosen in Stage 2.

Stage 4: Pilot Study Design

This stage will plan the engineering, construction, and commissioning of a pilot operation to test the chosen extraction method.

Stage 5: Economic Study

This stage will develop a financial model based on the findings of Stage 3, including pricing and cost assumptions, cash flow assessment, and calculations for key financial metrics like Internal Rate of Return (IRR), Return on Equity (ROE), and Net Present Value (NPV).

The results of the scoping study will be progressively reported to the market upon completion of each key stage, with final results anticipated by the end of Q3 2024. Management’s reaction to the operations of a company tells about the future of the company and on the news CEO Adam Wooldridge commented recently shared his thoughts. 

CEO Adam Wooldridge’s comments on the news were very positive indicating this could be a big thing for the company, he said:

"Based on the encouraging outcomes of our ongoing hydrogeological test work, we're excited to initiate a comprehensive scoping study to fully evaluate our proposed ISCR program at NCP. METS Engineering, with its impressive track record and expertise in hydrometallurgy, is the ideal partner for undertaking this study.  In addition to determining the project's engineering feasibility, the study will provide the financial metrics essential for unlocking the project's value."

Bottom Line

Cobre has hit the jackpot with the 40 km long high-grade copper that no competitor has found in their site in Kalahari Copper Belt and the In-Situ will work as an economic advantage for the company. Cobre's progress with ISCR also signifies a potential long-term strategic advantage in the copper mining industry. 

With this comprehensive scoping study underway, Cobre is well-positioned to unlock the full potential of the Ngami Copper Project and solidify its place as a key player in the future of copper production.