Nzuri has a copper project with “significant” cobalt upside, says Patersons

17th November 2017
Resources Rising Stars

Emerging copper-cobalt miner Nzuri Copper (ASX: NZC) has attracted the attention of Perth broker Patersons Securities with a dealing desk note highlighting its exposure to two “in-vogue” metals, copper and cobalt.

“Nzuri is focused on developing Stage 1 of the 85%-owned Kalongwe copper-cobalt project located in the Democratic Republic of Congo (DRC),” says Patersons resource analyst Simon Tonkin.

He says the Study demonstrated a robust and relatively low-cost copper-cobalt project, with Stage 1 based on mining and processing oxide material via a simple crush and Dense Media Separation plant before the concentrate is expected to be sent for a nearby SX/EW plant for further refining and processing.

“There are significant opportunities to improve the project economics and increase mine life through a Stage 2 expansion and the processing of a high-grade cobalt stockpile (1Mt at 0.64% Co) located at site,” he said.

“In addition the project is located 15km from Ivanhoe’s giant Kakula-Kamoa copper deposit which has a resource of >1Bt at 2.5% Cu.”

Tonkin says he sees significant opportunities in Stage 2, with Nzuri investigating the viability of processing the on-site cobalt-only stockpile which has some $400 million of contained metal value.

“The Company is focused on progressing off-take and funding negotiations, hence optimising the transport and advancing the project towards development.”

Key upcoming catalysts include off-take or funding and exploration success.

To read a full copy of the new Patersons desk note on Nzuri Copper Limited, click here.

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