Copper 360 and DRD Gold subsidiary consider joint venture
27 March 2024 - 17:23
by Denene Erasmus
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Northern Cape mining company Copper 360 announced on Wednesday that it had signed a memorandum of understanding with Far West Gold Recoveries (Far West), a subsidiary of DRD Gold, to determine the economic viability of copper dumps which could lead to a joint venture between the companies.
The 12-month memorandum of understanding will allow Far West to conduct due diligence on Copper 360’s O’Kiep, Carolusberg, Lower and Upper and Upper NamaCopper tailings dams. Far West will, through an independent expert, determine the total tonnage of tailings material.
Jan Nelson, CEO of Copper 360 said: “We estimate that there are approximately 50-million to 60-million tonnes of dump material with grades varying between 0.18% and 1.5% copper in the dumps with the potential to contain 450,000 tonnes of copper metal in situ.”
If Far West is happy with the results of the assessment of the economic viability of the copper dumps it will enter into a joint venture agreement with Copper 360, including acquiring a 50% interest in the tailings dams at a price to be independently agreed. It will also become the operator of the dumps.
“Copper 360 is currently focused on commissioning two processing plants at the Rietberg Mine and drilling and evaluating five new mines,” Nelson said. “Our expertise and focus is not tailings treatment though we recognise the potential of the copper dumps. It is therefore logical that we have approached Far West to see if a potential partnership could be negotiated.”
Copper 360 said last week it had concluded a new offtake agreement with Fujax UK for copper from its newly acquired Nama Copper plant. The miner announced in November that it was acquiring Nama Copper from Mazule Resources for R200m. It took over the plant on March 13.
The deal, Nelson said at the time, would allow the company to more than double its production capacity and output from 3,899-tonnes to 7,975-tonnes per year by 2025.
In afternoon trade on Wednesday Copper 360’s share price had jumped almost 9% to R3,10 per share. The share has strengthened by 20% since the March 18, after the company announced the new offtake agreement for the Nama Copper plant. However, the share price has decreased by 37% over the last 12 months.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Copper 360 and DRD Gold subsidiary consider joint venture
Northern Cape mining company Copper 360 announced on Wednesday that it had signed a memorandum of understanding with Far West Gold Recoveries (Far West), a subsidiary of DRD Gold, to determine the economic viability of copper dumps which could lead to a joint venture between the companies.
The 12-month memorandum of understanding will allow Far West to conduct due diligence on Copper 360’s O’Kiep, Carolusberg, Lower and Upper and Upper NamaCopper tailings dams. Far West will, through an independent expert, determine the total tonnage of tailings material.
Jan Nelson, CEO of Copper 360 said: “We estimate that there are approximately 50-million to 60-million tonnes of dump material with grades varying between 0.18% and 1.5% copper in the dumps with the potential to contain 450,000 tonnes of copper metal in situ.”
If Far West is happy with the results of the assessment of the economic viability of the copper dumps it will enter into a joint venture agreement with Copper 360, including acquiring a 50% interest in the tailings dams at a price to be independently agreed. It will also become the operator of the dumps.
“Copper 360 is currently focused on commissioning two processing plants at the Rietberg Mine and drilling and evaluating five new mines,” Nelson said. “Our expertise and focus is not tailings treatment though we recognise the potential of the copper dumps. It is therefore logical that we have approached Far West to see if a potential partnership could be negotiated.”
Copper 360 said last week it had concluded a new offtake agreement with Fujax UK for copper from its newly acquired Nama Copper plant. The miner announced in November that it was acquiring Nama Copper from Mazule Resources for R200m. It took over the plant on March 13.
The deal, Nelson said at the time, would allow the company to more than double its production capacity and output from 3,899-tonnes to 7,975-tonnes per year by 2025.
In afternoon trade on Wednesday Copper 360’s share price had jumped almost 9% to R3,10 per share. The share has strengthened by 20% since the March 18, after the company announced the new offtake agreement for the Nama Copper plant. However, the share price has decreased by 37% over the last 12 months.
erasmusd@businesslive.co.za
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