Omico Copper has done sufficient Phase 4 test work to restart the bankable feasibility study process at its Omitiomire Copper Project, about 140 km northeast of Windhoek in central Namibia.
Omico, through its Namibian subsidiary, Craton Mining and Exploration (Pty) Ltd, holds mining licenses 197 and 8550, together with a 30,000-ha license area, which makes up the Omitiomire Copper Project. The mining license is valid until March 2036.
Omico also holds Exploration Licence EPL 3589 covering 735 km2, broadly described as the ground surrounding the mining license.
The Omitiomire Project has the potential to be a long-life, low-capital-intensive project with an unconstrained CIM measured and indicated resource of 81.2 million tons at 0.60% total copper for 490,000 t of copper (0.29% Cu cut-off grade).
The deposit is about 10 m thick near the surface but thickens to the east, where some drill holes have intersected over 100 m of copper mineralisation.
The development base case anticipates the production of 25,000 to 30,000 tonnes per annum of LME Grade A copper cathode for at least ten years, targeting only open-pit mineralisation.
Omico has re-engaged all the major project consultants to complete the bankable feasibility study in Q4 2024.
The company stated in its 2Q 2024 report that it had completed the first two Phase 4 metallurgical columns, demonstrating significant acid consumption reduction to 10-15 kg/t with a copper recovery of 73-75% and a leach time of 120 days.
It also said it had completed and submitted the Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP) to the relevant regulatory authorities for the application for the Environmental Clearance Certificate to build and operate the mine.
Omico is a joint venture between Greenstone Resources LP, a private equity fund specialising in the mining and metals sector, and International Base Metals Limited, an Australian natural resources public company.
Greenstone Resources LP manages the joint venture.
International Base Metals Limited owns 46.3% of Omico Copper Limited based in Mauritius, which in turn owns 95% of Craton Mining and Exploration (Pty) Ltd in Namibia.
Craton maintains mining license 197, which covers the Omitiomire Copper project areas. Omico Copper Limited is fully funded and committed to investing US$5 million in producing a bankable feasibility study.
Drilling by the company has identified a JORC-indicated and inferred resource of 137 million tons of ore at 0.54% Cu for 740,000 t of copper at a 0.25% Cu cut-off grade.
In August 2014, Bloy Resource Evaluation provided an updated resource estimate of 137 million tons at an average grade of 0.54% copper at a cut-off grade of 0.25% copper.
In addition, Bloy reported Exploration Target material at a cut-off grade of 0.25% Cu in the 76 Mt–155 Mt range for 430,000t–650,000t of metal grading between 0.4% and 0.6% Cu.
Craton plans the initial development of a minor, shallow “Mini-Mining” operation to bring the project into production quickly and cheaply.
The “oxide copper” minerals are readily leached (dissolved) in dilute sulphuric acid, making the oxide zone amenable to treatment by acid leach, solvent extraction (‘SX’), and electro-winning (‘EW’) technology.
The plan involves mining a modest tonnage (10,000 tonnes per month) of oxide copper ore in a small open-cut mine to a depth of 16 m.
The mine will be designed to have minimum impact on existing infrastructure, particularly avoiding an existing public road.
The ore will be treated with heap leach (SX-EEW) to produce cathode copper.
Craton plans metallurgical testing on a bulk sample to ascertain the need for aggregation and to confirm the bench-scale test results.
The plan involves mining a modest tonnage (10,000 tonnes per month) of oxide copper ore in a small open-cut mine to a depth of 16 m.
The mine will be designed to have minimum impact on existing infrastructure, particularly avoiding an existing public road.
Craton intends to commence a Phase 2 Definitive Feasibility Study (‘DFS’) when the “Mini Mine” is in operation, providing cash flow for the study.
The larger project is anticipated based on the more profound sulphide copper resource at Omitiomire and other copper resources that might be discovered within the trucking distance of Omitiomire.
This project will require a separate SEIA and Environmental Management Plan.
The financial model shows a maximum drawdown of about N$50 million two months after production start-up and an undiscounted payback period of two years at US$ 2.50/lb. These financials are indicative at this stage; some costs must be confirmed to update the financial model.
