International Base Metals Limited (‘IBML’) works with Cube Consulting to develop Omitiomire project economics


International Base Metals Limited (‘IBML’) works with Cube Consulting to develop Omitiomire project economics

Challenge:

Craton Mining and Exploration Company (Pty) Ltd, the Namibian based subsidiary of IBML, has the Omitiomire Copper project as its premier asset. The ultimate mission for the company is to explore for, develop and operate mines, initially in Namibia, with a number of critical steps along the way. The challenge for the company is to “right-size” any potential mine, with the overall resource of Omitiomire being 136 million tonnes at 0.53% Cu at a 0.25% Cu cut-off grade.

As the PFS for the development of the full deposit did not meet investment hurdles, a new approach was required. It was agreed to test if the project could be developed in two phases. The challenge was to see if a small shallow oxide mine could be viable as a stand-alone operation. If so, this could then be developed as Phase 1.

The first step was to gain board approval for a Phase 1 mine plan that makes economic sense – the mine plan also needed to be aligned with the overall company objectives. This mine planning exercise involved a series of pit optimisations with appropriate parameters, practical pit designs and a life-of-mine schedule to establish acceptable project economics.

Solution:

IBML engaged Cube Consulting to develop the life-of-mine plan as part of a DFS study into the Omitiomire Phase 1 project, working with Principal Mining Engineer, Quinton de Klerk. The mine plan has achieved in principle board approval and the company applied for a mining licence for Phase 1 in December 2013.

Benefits:

Cube Consulting has a really good understanding of the shortcomings and advantages of the various technical software packages and is able to interpret the results appropriately.

Operational mining experience translated into better mine plans.

Past history of productive work engagements.

International Base Metals Case Study