467 & 469 - The world's primary copper/cobalt area

CAMEC has the rights to the highly prospective 429 km² 467, 469 (previously named C19 & C21) concession areas in the DRC which contain extensive copper and cobalt mineralisation. There are currently over 40 identified mines which a number including Kakanda and Taratara are already in production and fuelling the Company's Luita copper cobalt facility.

The resource estimate on the concessions, using existing data obtained from Gecamines and Union Miniere, has been quantified at 1.5 million tonnes of copper and 500,000 tonnes of cobalt, contained in 70 million tonnes of ore. Multiple quality targets, many of world class super-pit potential, have now been identified following the implementation of an extensive airborne magnetic, radiometric and electromagnetic geophysical survey and are being prioritised for drilling.

Whereas historical mining was based on exposed mineralisation, the new targets are large shallow hidden and previously undiscovered anomalies believed to have potential to host very significant ore bodies. These anomalies will be prioritised for further exploration and evaluation, which will involve the establishment of logistics, geological mapping, soil and stream sediment sampling, and the identification and prioritisation of coincident anomalies for exploration drilling and compliant resource estimations.

In addition to the geophysical surveys, a radar-based Lidar survey has been flown, which produced an accurate digital terrain model that will assist with mine planning and importantly, allow for the rapid estimation of the tonnages contained within the many historical copper and cobalt bearing ore stockpiles. A JORC or Samrec compliant assessment of the resources and reserves contained in these stockpiles is on-going.

The radiometric data sets have also yielded a number of large uranium anomalies. These anomalies, which compare favourably with known and exposed mineralised areas, are accorded a high priority for follow-up exploration as they are direct indicators of potentially significant uranium mineralisation below surface. The evaluation of these anomalies will follow the same standard exploration procedures as those of the base metal anomalies and evaluation drilling is expected to commence before year end.

Whilst the identification and rapid assessment of new exploration targets is one of CAMEC's prime objectives, the Company is also fortunate in having within 467 & 469 a number of large, partially exploited deposits, some of which have been major producers in the past. In the current economic climate the resources remaining beneath many of these pits have great economic potential and evaluation programmes to quantify these resources are underway. Gecamines gave access to extensive records held in its Likasi archive and after a general study CAMEC made the Menda area (154 sq km) a primary exploration target. It is already evident that the concession hosts significant copper and cobalt mineralization and has the potential to host exploitable deposits.

At the Disele South Pit, trenching and sampling of the current pit bottom has been completed and a 24-hole drilling campaign totalling 1,815 metres will be conducted. This and associated work is expected to confirm to JORC standards in excess of 2.6 million tonnes of ore at +3% copper. A two-phase drilling programme has also been designed to quantify the resource remaining in the deposit exploited next to the Kakanda North Pit. Here a 20-hole drilling campaign of 12,100 metres, which includes holes of length 900 metres, will probe the depth extension of the deposit and is expected to confirm to JORC standards 5.8 million tonnes of ore at +3% copper.

A similar programme is currently being designed to investigate the depth extension of the mineralisation beneath the old Kakanda South pit. It is predicted that this work will confirm the existence of in excess of 8.9 million tonnes of ore at +3% copper.

There are also already a number of stockpiles at the Disele South concession area. Records show that 1.3 million tones of ore @ 2.08% Cu & 0.17% Co containing 27,040 tonnes of copper and 2,210 tonnes of cobalt lie available for immediate exploitation. JORC standard evaluation programmes have commenced on the Disele South, Kakanda North, Kakanda South on C19 and at Manda on the C21 concession.