Operator: Zamsort ltd
Resource: Non-Code Compliant Resource of copper and cobalt
Ore in the Ground: 16.59 million tonnes
Ortac Stake: Effective 19.35%
Stage: Commercial scale demonstration plant under construction
Next Step: Processing 35kt of ore per month with a grade of 1.00% ASCu and 0.20% ASCo. C1 cash costs estimated at $2,500/t of recovered copper.
In March 2015, Ortac entered into a Secured Convertible Loan Note and a Call Option Agreement with Zamsort Limited, a private company located in Zambia. Under the terms of these agreements, an initial subscription by Ortac of US$600,000 Secured Convertible 8% Loan Notes will provide Ortac with a non-dilutable 10.71% stake in Zamsort. Subject to further due diligence by Ortac, under the terms of its one year Call Option Agreement, Ortac may subscribe a further US$600,000 in 8% loan notes to Zamsort, increasing its stake in Zamsort to a non-dilutable 19.35%.
In June 2017, Ortac agreed to convert the Secured Convertible Loan Note and to partially convert the Call Option Agreement into an equity position of 14% in Zamsort, with the remaining balance on the loan notes being extended to the 31st December 2018.
The Zamsort licenses are located in north west Zambia, 800km from Lusaka and 200km from Solwezi. The Small-Scale Mining Licence (SML) has estimated oxide resource of 16.59Mt @ 0.94% copper equivalent (non-JORC). The large prospecting license (LPL) covers an area of approximately 995km2 and is owned 100% by Zamsort. The current LPL encompasses 7 of the top 10 high priority exploration targets identified through the JV prior to Anglo American exiting the country in 2001.
The license area is prospective for copper and cobalt. In addition, nickel and molybdenum have been reported in the historical work conducted in this area. On the east side of the Kabompo Dome lies the Kalumbila prospect (First Quantum’s Enterprise and Sentinal mine development projects) and further to the east are Barricks’s Lumwana mine and First Quantum’s Kansanshi mine, which together contribute more than 80% of Zambia’s copper production.
The licenses are located on the north western trending arm of the Lufilian arc, an orogenic belt stretching from Angola through DRC and Zambia. All known copper and cobalt deposits in Zambia and DRC lie within this belt. The large prospecting license (LPL) covers an area of approximately 995km2 and is owned 100% by Zamsort.
The license comprises prospective Upper and Lower Roan series
sedimentary rocks that overlie the older basement rocks on the west side
of the Kabompo Dome.
Contained within the larger LPL is the 4km2 Kalaba small-scale mining licence (SML) area. This prospect contains non-compliant oxide mineral resources of 16.59Mt @ 0.94% copper ('Cu') equivalent. These non-JORC compliant resources were estimated based on limited exploration drilling carried out during the late 1990's by Equinox Minerals Limited ('Equinox') and Anglo American Prospecting Services ('AAPS') by way of the Zambezi Joint Venture ('JV') through AAPS's affiliate Zamanglo Prospecting Ltd ('Anglo American') during the late 1990s as part of the Kabompo Property.