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  • Tiger Resources Increases Copper Reserve At Kipoi Central By 112% 0 comments
    Jan 15, 2014 12:21 AM

    Tiger Resources (ASX: TGS) has increased Ore Reserves for the key Kipoi Central Stage 2 open pit in the Democratic Republic of Congo by 112% to 208,200 tonnes.

    This follows on the back of yesterday's production forecast of 39,000 tonnes of copper and a low cash cost of just $0.30 per pound from the Stage 1 heavy media separation plant at the Kipoi Copper Project.

    The increase in the Kipoi Central reserve estimate to 30.14 million tonnes at 1.31% copper is the result of additional drilling undertaken in 2013 and the inclusion of primary material in the mine plan following completion of successful metallurgical test work.

    This increased reserve will be mined and processed through the Stage 2 solvent extraction electrowinning (SXEW) plant which is currently under construction and due to commence production in the second quarter of 2014.

    Production for the SXEW plant is expected to be 25,000t of copper cathode in the first full 12 months of production and 50,000t per annum thereafter.

    The SXEW plant is expected to produce 12,000 tonnes of copper cathode in the 2014 calendar year.

    Tiger will update the market on the benefits of this increase in ore reserves with the economic assessment considering the increased grade and reduced stripping ratio.

    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.

    Ore stockpiles and residues from the HMS plant will provide feed to the SXEW plant for the first two years of operations without the need for further mining.

    Site cash costs for the first two years of the SXEW operations are forecast to be $0.72 per pound.

    Analysis

    Tiger Resources continues to build up its investment case with higher Ore Reserves for the Kipoi Central deposit.

    This adds to the high grades of copper (7% Cu), low cost per pound ($0.30 per pound at the HMS plant for 2014) and high margins.

    With the current copper spot price of about $3.328 we believe that Tiger Resources will draw corporate interest, especially from Chinese or Asian and minerals groups that are actively seeking copper production with low quartile operating costs, high margins and long project life.

    It also underscores just how much there is to look forward to for the company this year including the start-up of production from the Stage 2 SXEW plant.

    On our valuation, Proactive Investors imputes a share price target for Tiger Resources at between A$0.58 to A$0.76 per share.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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