Katanga Mining Ltd.: Announces Ore Reserves and Mineral Resources

ZUG, SWITZERLAND, Feb. 10, 2015 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") is pleased to announce its ore reserve and mineral resource estimates as at December 31, 2014.

Key Updates: Mineral Resources

• Overall, the measured and indicated mineral resource for Kamoto Copper Company SA ("KCC") (in which the Company has a 75% interest) decreased by 4.9 million tonnes.
  • Changes in the measured mineral resource for KTO, KOV Open Pit and T17 Open Pit Mines is a decrease of 1.9 million tonnes at KTO, nil tonnes at KOV Open Pit and 0.1 million tonnes at T17 Open Pit based on the depletion of the mineral resource due to mining in 2014. 
  • Changes in the indicated mineral resource for KOV Open Pit is a decrease of 2.9 million tonnes based on the depletion of the mineral resource due to mining in 2014.
  • Changes in the inferred mineral resource for KOV Open Pit is a decrease of 0.5 million tonnes based on the depletion of the mineral resource due to mining in 2014.

• There are no changes in the measured, indicated or inferred mineral resources reported for Mashamba East Open Pit Mine, Kananga Mine and Tilwezembe Open Pit Mine, as mining was not undertaken in these areas in 2014 and no geological work was done on these areas in 2014.

• A reconciliation table comparing the 2013 and 2014 mineral resource estimates is set out in Annexure A.

Key Updates: Ore Reserves

• The outcome of the December 31, 2014 ore reserve estimate is a net decrease of 6.9 million tonnes of ore reserves, the net decrease in reserve is based on 7.4 million tonnes being mined in 2014 and minor, short-term ore definition changes and pit design adjustments undertaken in 2014.
• A reconciliation table comparing the 2013 and 2014 ore reserves is set out in Annexure B and the key mining parameters which inform the ore reserve estimates are set out in Annexure C

Katanga Mining Ltd.
CONSOLIDATED ORE RESERVES
AND MINERAL RESOURCES ^{1, 2, 3, 4, 5, 6, 7, 8, 9}
as at December 31, 2014

More detailed ore reserve and mineral resource estimates are as follows:

Katanga Mining Ltd.
PROVED AND PROBABLE ORE RESERVES ^{1, 2, 5, 6, 7, 9}
as at December 31, 2014

Katanga Mining Ltd.
MEASURED AND INDICATED MINERAL RESOURCES ^{1, 2, 3, 4, 5, 6, 8, 9}
as at December 31, 2014

Katanga Mining Ltd.
INFERRED MINERAL RESOURCES ^{1, 2, 3, 4, 5, 6, 8, 9}
as at December 31, 2014

Notes:

1. The ore reserve and mineral resource estimates have been prepared in accordance with the classification criteria of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, as amended ("JORC Code").  If the definitions and classification standards adopted by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") had been used instead of those of the JORC Code, the estimates of mineral reserves and mineral resources would be substantially similar to the estimates of ore reserves and mineral resources presented here.
2. The mineral resource estimates have been prepared by, or under the supervision of, Christiano Santos Goncalves, (MAusIMM CP (Geo) 306 079) and the ore reserve estimates have been prepared by, or under the supervision of, Jacobus Lotheringen, PrEng each of Golder Associates Africa Pty Ltd, who are each a qualified person under NI 43-101. 
3. Mineral resources are inclusive of ore reserves.
4. Mineral resources which are not ore reserves do not have demonstrated economic viability.
5. For KTO, the ore reserve and mineral resource estimates are for KCC's entire interest in such ore reserves and mineral resources, whereas the Company owns 75% of KCC.  La Generale des Carrieres et des Mines and La Société Immobilière du Congo, state-owned mining companies in the Democratic Republic of Congo, own the remaining 25% of KCC. 
6. Numbers may not add due to rounding.
7. Unless otherwise noted, the Company's ore reserves are estimated using appropriate cut-off grades based on an assumed long term price of $6,500 per tonne of copper and long term price of $24,250 per tonne of cobalt. Ore reserves are estimated using appropriate process recoveries, operating costs and mine plans that are unique to each property and include estimated allowances for dilution and mining recovery.
8. Unless otherwise noted, the Company's mineral resources are estimated using appropriate lithological interpretations, grade compositing and grade estimation techniques for copper and cobalt.
9. The Company's normal data verification procedures have been used in collecting, compiling, interpreting and processing the data used to estimate ore reserves and mineral resources. Independent data verification has not been performed. However the data has been independently validated.

Qualified Person and Technical Report
This press release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and a 'qualified person' as such term is defined in NI 43-101. Mr. Henderson has reviewed and approved the contents of this press release.

The Company's technical report entitled "An Independent Technical Report on the Material Assets of Katanga Mining Ltd., Katanga Province, Democratic Republic of Congo" dated March 30, 2012 prepared by Golder Associates Africa (Pty) Ltd under the supervision of Mr. Willem van der Schyff as the "qualified person" is in compliance with NI 43-101 is filed under the Company's profile on SEDAR at www.sedar.com.

Cautionary Note to US Investors concerning estimates of Measured, Indicated and Inferred Mineral Resources
The above tables uses the terms "Measured, Indicated and Inferred Mineral Resources" using the ore reserves and mineral resource categories of the JORC Code.  We advise US investors that while these terms are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them.  "Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of inferred mineral resources will ever be upgraded to a higher category.  In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies.  US investors are cautioned not to assume that any part or all of the inferred mineral resource exists, or is economically or legally mineable.

About Katanga Mining Limited
Katanga Mining Ltd. operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT.

Forward Looking Statements
This press release may contain forward-looking statements, including, but not limited to, the depletion of ore reserves and mineral resources. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include: there being no significant disruptions affecting the operations of the Company whether due to labour disruptions, supply disruptions, power disruptions, rollout of new equipment; damage to equipment or otherwise; permitting and development, being consistent with the Company's current expectations; continued recognition of the Company's mining concessions and other assets, rights, titles and interests in the Democratic Republic of Congo ("DRC"); political and legal developments in the DRC being consistent with its current expectations; prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; and labour and material costs increasing on a basis consistent with the Company's current expectations.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the actual results of current exploration activities; actual results and interpretation of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, development or construction activities, delays due to strikes or other work stoppage, both internal and external to the Company, as well as those factors disclosed in the Company's current annual information form and other publicly filed documents. Although Katanga has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Annexure A

Annexure B

Notes: See notes 1, 2, 5 to 7 and 9 on page 3 of this press release relating to ore reserve estimates.

Annexure C

SOURCE Katanga Mining Ltd.