Katanga Mining Announces 2018 Second Quarter Production Results and Date of Release of 2018 Second Quarter Financial Results

ZUG, Switzerland, July 30, 2018 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces its 2018 second quarter production results and date of release of 2018 second quarter financial results. Katanga's unaudited interim financial statements and accompanying Management's Discussion and Analysis will be filed on SEDAR, www.sedar.com.

Production highlights during the three and six months ended June 30, 2018

Commissioning and resumption of production after 2015 suspension

On September 11, 2015, the Company announced the decision to suspend the processing of copper and cobalt during the construction phases of the whole ore leach project ("WOL Project"). The suspension continued throughout most of 2017 with copper production resuming on December 11, 2017.

• During Q2 2018, construction continued on phase 2 of the WOL Project. Progress was made on the high-grade clarifier, receiving thickener and the post-leach clarifier for copper production. The core copper circuit of train 2 is expected to be completed and commissioned during Q3 2018. The final components of the WOL Project being the train 2 counter current decantation ("CCD") wash circuits and electro-winning tank house are scheduled for completion and commissioning by Q4 2018; and
  
  
• Copper cathode production has increased to 35,615 tonnes in Q2 2018 from 27,677 tonnes in Q1 2018. Cobalt contained in hydroxide has increased to 2,429 tonnes in Q2 2018 from 525 tonnes in Q1 2018. The increase in copper cathode and cobalt contained in hydroxide are related to the ongoing ramp-up of production and the commissioning and re-commissioning of related assets.

Mining

Total ore mined increased to 2,854,228 tonnes in Q2 2018 from 1,402,201 tonnes in Q1 2018. Total ore mined increased to 4,256,429 tonnes in H1 2018 from nil tonnes in H1 2017.

Total waste mined increased to 12,484,820 tonnes in Q2 2018 from 9,379,254 tonnes in Q1 2018. Total waste mined increased to 21,864,073 tonnes in H1 2018 from 19,743,595 tonnes in H1 2017.

Total contained copper increased to 58,350 tonnes in Q2 2018 from 28,761 tonnes in Q1 2018. Total contained copper increased to 87,111 tonnes in H1 2018 from nil tonnes in H1 2017.

The increase in total material mined in the open pits in Q2 2018 against Q1 2018 is relating to the seasonal transition from the rainy season to dry season which allowed for greater equipment utilization as well as the ongoing ramp-up of production, in line with the optimized mine plan following the resumption of ore mining activities in Q4 2017. It has been supported by the re-commissioning and commissioning of:

• six CAT 793D trucks for increased hauling capacity;
• one CAT D9R dozer related to the ongoing mining ramp-up;
• one CAT 6060 diesel shovel for increased mining capacity;
• two CAT 745 ADT lube trucks for increased ancillary work;
• one CAT CS74B compactor for road and access maintenance; and
• one CAT 745 ADT service truck to support production ramp-up.

The increase in total contained copper in Q2 2018 compared to Q1 2018 and H1 2018 compared to H1 2017 is driven by an increase in total ore mined due to the suspension of ore mining activity in the 2017 comparable periods and the subsequent resumption of production, in line with the optimized mine plan, to ensure sufficient ore availability for the WOL Project.

The increase in total material mined in the KTO underground in Q2 2018 against Q1 2018 and H1 2018 against H1 2017 is relating to the commencement of training in secondary development (ore) as well as the continuation of training in primary development (waste).

The increase in very low-grade ore and cobalt ore mined in Q2 2018 against Q1 2018 and H1 2018 against H1 2017 is relating to optimization of the long-term feed strategy; very low-grade ore and cobalt ore are currently being stockpiled for future feed into the processing plant.

Kamoto concentrator ("KTC")

Total material milled increased to 1,970,359 tonnes in Q2 2018 from 1,624,655 tonnes in Q1 2018. Total material milled increased to 3,595,014 tonnes in H1 2018 from 690,608 tonnes in H1 2017.

Total concentrate produced increased to 65,519 tonnes in Q2 2018 from 60,450 tonnes in Q1 2018. Total concentrate produced increased to 125,969 tonnes in H1 2018 from 33,786 tonnes in H1 2017.

Total oxide feed received at Luilu increased to 1,020,106 tonnes in Q2 2018 from 819,200 tonnes in Q1 2018. Total oxide feed received at Luilu increased to 1,839,306 tonnes in H1 2018 from nil tonnes in H1 2017.

Total contained copper in concentrate and oxide feed produced increased to 42,612 tonnes in Q2 2018 from 34,996 tonnes in Q1 2018. Total contained copper in concentrate and oxide feed produced increased to 77,608 tonnes in H1 2018 from 4,880 tonnes in H1 2017.

The increase in total material milled, concentrate and oxide feed received at Luilu and total contained copper in concentrate and oxide feed in Q2 2018 compared to Q1 2018 and H1 2018 compared to H1 2017 reflects the resumption of production in December 2017 following the completion of phase 1 of the WOL Project. Processing activities were largely suspended during the comparative periods in 2017. The increases for the year to date have been achieved by:

• increasing the capacity of the hydro mining station to treat KITD material at 500 tonnes per hour;
• an increase in total ore availability, in line with the optimized mine plan, to ensure sufficient ore availability for the WOL Project; and
• re-commissioning of two additional cascade mills to support increased sulphide material throughputs as well as the sulphide floatation circuit comprising of tank cells and two banks of Wemco cleaner cells.

Luilu metallurgical plant

Total copper cathode increased to 35,615 tonnes in Q2 2018 from 27,677 tonnes in Q1 2018. Total copper cathode increased to 63,292 tonnes in H1 2018 from nil tonnes in H1 2017.

Total cobalt contained in hydroxide increased to 2,429 tonnes in Q2 2018 from 525 tonnes in Q1 2018. Total cobalt contained in hydroxide increased to 2,954 tonnes in H1 2018 from nil tonnes in H1 2017.

The increase in copper cathode and cobalt contained in hydroxide in Q2 2018 compared to Q1 2018 and H1 2018 compared to 2017 reflects the resumption of production in December 2017 following the completion of phase 1 of the WOL Project. Processing activities were largely suspended during the comparative periods in 2017. The increases for the year to date have been achieved by:

• increasing total oxide feed to be leached in line with the ramp-up of operations;
• re-commissioning of the sulphide receiving circuit which comprise the thickeners and receiving tanks, roaster 5 and its associated auxiliary equipment and electro-winning 2; and
• commissioning of a low grade solvent extraction circuit, counter current decantation and the cobalt purification plant with the associated utility plants.

Major projects update

WOL Project

The WOL Project includes the construction of optimized copper and cobalt circuits intended to reliably produce up to 300,000 tpa of copper cathode over the life of the mine. This is achieved by adding additional leach capacity at Luilu in order to leach run-of-mine oxide ore directly rather than concentrating the oxide ore at KTC.

Q2 2018 update

• Construction has continued on phase 2 of the WOL Project. Progress was made on the high-grade clarifier, receiving thickener and the post-leach clarifier for copper production; and
  
  
• the core copper circuit of train 2 is expected to be completed and commissioned during Q3 2018. The final components of the WOL Project being the train 2 CCD wash circuits and electro-winning tank house are scheduled for completion and commissioning by Q4 2018.

Cobalt Projects

The objective of the cobalt projects is to upgrade the existing cobalt plant design in order to reduce the bottlenecks and increase production capacity up to 40,000 tpa of cobalt contained in hydroxide by modification to the precipitation, thickening and filtration and drying and bagging processes. The improvements being made as part of the cobalt projects will integrate with the existing WOL processing facilities at Luilu.

Q2 2018 update

• Demolition works have been completed to facilitate future construction, civil and earth works are underway in line with the project schedule and long lead items have been ordered; and
• Estimated completion for the cobalt projects is Q1 2019.

Acid Plant

In Q4 2017, the Board of Katanga approved a US$237 million capital expenditure spread over 2018 and 2019 to construct a sulphuric acid and sulphur dioxide production plant at KCC, which will improve the reliability of the supply of these reagents to the WOL processing circuits.

Q2 2018 update

• In addition to a continuation of design work on the Acid Plant, preliminary earth works have commenced and orders for major long lead items have been placed.

The Company expects to release its second quarter 2018 financial results on or about August 7, 2018.

Outlook

2018 full year guidance remains for 150kt of copper and 11kt of cobalt production.

Qualified Person

Tahir Usmani, PEng, APEGA, Chief Mine Planning Engineer of KCC, has reviewed and approved the scientific and technical disclosure in this news release. Mr. Usmani is a "qualified person" for the purposes of NI 43-101 - Standards of Disclosure for Mineral Projects.

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. 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. This press release may contain forward-looking statements. 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.

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. 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.

SOURCE Katanga Mining Ltd.