The progress comes as the company raised $42.5 million earlier this month to augment existing working capital and for contingent funding.
Construction of the Stage 2 solvent-extraction and electro-winning (SXEW) plant is on schedule and within budget while overall project progress as of the end of October was 74%.
Practical completion and commissioning of the SXEW expected to occur in April 2014, with full handover to Société d' Exploitation de Kipoi SPRL (SEK), Tiger's subsidiary which operates the Kipoi plant, in May 2014.
"It was a standout performance that progress on the construction was continuing ahead of schedule and in a safe environment," managing director Brad Marwood said.
"Construction on the Stage 2 SXEW plant commenced in January and to have the project 74% by the end of October shows how effectively our team and contractors are working.
"The project has remained on budget and there have been zero lost time injuries, which are signs of a project that has been well planned, well managed and well executed."
Tiger plans to produce 25,000 tonnes of copper cathode in the first full 12 months of production at the SXEW plant and increase production to 50,000 tonnes in the next 12-month period.
In addition to the SXEW plant, the company plans to produce 39,000 tonnes of copper concentrate from the heavy media separation (HMS) plant at Kipoi in 2014 at an average operating cost of $0.30/lb of copper produced.
Key elements of the construction progress of the SXEW plant include:
- Bulk earthworks - 83% complete;
- Agglomeration and heap leach pad conveyors - 79% complete;
- Solvent extraction construction - 56% complete;
- Electro-winning construction - 44% complete; and
- 5MVa substation and overhead line (OHL) - 100% complete, Stage 1 HMS plant commenced using grid power from the 5MVa substation in November
The 400 man accommodation facility was commissioned in September and as rooms is completed between now and Christmas more staff will relocate into the new facility. The new village will provide superior accommodation for the operational staff that will all be moved to the village before Christmas.
In addition, the Stage 1 heavy media separation (HMS) plant continues to perform within expectations. The wet season commenced in late October, with more than four months of ore stockpiled to ensure continuity of production throughout the wet season.
Extensive scheduled maintenance was undertaken on the HMS plant during October with the primary crusher liners replaced with heavy duty tungsten carbide teeth liners that will provide continuous service for six months. Modifications were completed to the dense media circuit (DMS) to reduce consumption of ferro-silicon by up to 30%, the highest cost reagent utilised in the HMS plant.
The HMS plant has also commenced operating on grid power supplied from the 5MVa substation, reducing reliance on the higher cost diesel generated power.
Kipoi Copper Project
The Kipoi Project covers an area of 55 square kilometres and is located 75 kilometres north-northwest of the city of Lubumbashi in the Katanga Province of the DRC.
It contains a 12 kilometre sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.
JORC Resources totalling 995,600 tonnes of copper have been reported at the Kipoi Central, Kipoi North and Kileba deposits.
Kipoi Central, which contains a zone of high grade copper mineralisation within a much larger, lower grade global resource, is the principal deposit with 575,000 tonnes of copper.
Tiger had in October secured a $50 million advance payment against production of 100,000 tonnes of copper cathodes from Gerald Metals Group.
Tiger Resources continues to build on recent positive newsflow with the project remaining on track to start copper cathode production.
With offtake for copper cathode in place, funds for any contingent payments, the company is well positioned to grow.
Proactive Investors continues to value Tiger at between A$0.58 to A$0.76 per share.
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