Zincor to take Kipushi option

America Mineral Fields (AMZ-T) reports that Zinc Corp. of South Africa (Zincor) intends to exercise its option at the dormant Kipushi zinc-copper mine in the Democratic Republic of Congo.

Under an agreement reached in early August, Zincor paid AMF a US$100,000 option fee and was granted a 120-day period to carry out a due diligence review of the underground mine.

Through a proposed joint-venture company, the companies plan to study the feasibility of restoring production at Kipushi, which was shut down in 1993.

Zincor, a wholly owned subsidiary of South Africa’s Iscor, can earn up to a 50% interest in the new joint-venture company by matching AMF’s direct expenditures at Kipushi to date. AMF will hold the remaining interest.

AMF says the partners will focus on negotiating a formal agreement with the mine’s owner, Gecamines, regarding such issues as ownership, financing and dividends. Gecamines is owned by the DRC government.

As calculated by Gecamines and verified by Techpro Mining and Metallurgy, Kipushi hosts a measured and indicated resource of 17 million tonnes grading 16.7% zinc and 2.32% copper plus an inferred resource of 9 million tonnes grading 23.32% zinc and 1.93% copper. AMF says there is “considerable potential” for mineralization to extend along strike and downdip.

AMF’s other large venture in the DRC is the Kolwezi copper-cobalt tailings project, co-owned by AMF, with a 30% interest, Anglo American (AAUK-Q), also with 30%, and Gecamines, with 60%. Resources are estimated at 112.8 million tonnes grading 1.49% copper and 0.32% cobalt.