KRS Mining Limited

105 Trelowarren Street, Camborne, Cornwall TR14 8AW, UK

emails: krs.mining@gmx.com or krs.mining@engineer.com
Skype: kseecharran Phones: +44 75 0303 4457 or +91 88282 08843
Company registration number: 8764893

COMMENTS ON THE COLUMBIAN COPPER PROJECT

SUMMARY:
Four samples from the property were submitted for chemical analysis. The results are extremely high
(Figure 1) with an average of 3.65% Cu. This is high by world standard. If the two lowest samples are
taken as representative, the deposit is in line with those of mines globally. These results have been
used in the financial model. Sample No 4516 corroborates this assertion as it returned an assay of
1.3% Cu.

Figure 1: Grab samples taken from the property

There is no doubt that copper mineralisation lies on the property. The copper stains on the rock
surface verify this, Figure 2.

Figure 2: Copper mineralisation on the property

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Most likely, the deposit contains a mixture of oxide and sulphide mineralisation. This is common for
deposits of this type. Oxide will be closer to the surface and this will transition into sulphide, at
depth.
Enough data is not available to prepare a bankable feasibility study. Such study requires at least 5
000 metres of drilling and assaying results. These results will be used to establish the extent of the
copper reserve. It is this reserve that is used as collateral for a bank loan.
Photographic evidence of sulphide minerals (chalcopyrite) are not convincing, Figure 3. Such samples
could have been taken into the property and photographed. An independent professional needs to
verify this.

Figure 3: Sulphide copper mineral "suspected" to be from the property

Financial models indicate that the project is highly profitable. This covers the entire spectrum from
the lowest possible conditions, to the most favourable. This assumes that mining will commence with
the oxide deposit. Cash generated from oxide mining can then be used to drill and delineate the
deeper deposit. This drilled data can be used to prepare a bankable feasibility study for the main
(sulphide) deposit.
DISCUSSION:
Being a mixture of oxide and sulphide, oxide mineralisation will be found closer to surface, with
sulphide at depth. Treating an ore body of this type has several commercial implications, as follows:
1. Oxide is cheaper and easier to mine and process
2. Less capital equipment is required to process oxide ore. No mills, flotation cells and
concentrate thickening and filtration equipment are required
3. LME grade "A" copper can be produced from an oxide deposit on site. A sulphide deposit will
require smelting and refining
4. Often, mining of the oxide cap is borne by the sulphide project. This is treated as overburden
to expose the sulphide
5. Skilled labour to process oxide ore is very low
6. Oxide processing can be easily automated
7. The chemicals needed to process oxide ore can be easily, and readily, obtained from Chile or
Southern USA

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8. Cash generated from oxide processing can be used to finance and expand the sulphide
deposit (the bulk of the ore body), as was done at Benkala copper mine in NW Kazakhstan,
Figure 4.

Figure 4: LME grade "A" copper cathodes produced from oxide at Benkala mine
9. With copper price at a six-year low, Figure 5, processing oxide profitably will instil investors'
confidence in the project

Figure 5: Copper price chart showing the fall in selling price

10. Market for the finished product is not far away if the USA is to be targeted

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11. Cheap sulphuric acid for processing oxide ore can be procured from Peru or Chile
12. Mining and geotechnical skills can be learnt at shallower depths while oxide is being mined in
preparation for mining the deeper sulphide ore body
13. The economics of contract mining vs owner mining can be experimented with while oxide is
being mined, Figures 6 and 7. Contract mining will reduce capital dependency immensely

Figure 6: Contract mining

Figure 7: Owner mining

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14. Transition ore (oxide/sulphide mixture) can be stockpiled and processed when the sulphide
plant is built
15. The economics of processing oxide ore, via the leaching/solvent extraction/electrowinning
route, Figure 8, is highly profitable for all scenarios, Table 1

Figure 8: Leaching/solvent extraction/electrowinning for treating an oxide ore

Table 1: Profitability at least, and most, favourable conditions

Profit per day ($)

5,000
1.1
60
72,765
1.7
123,701
22
110,000
13,701

Profit per month ($)

411,015

Daily tonnes ore mined

Feed grade, after dilution (% Cu)
Plant recovery (%)
Daily copper produced (lbs)
Copper selling price
Sales value ($)
Production/Process cost ($/t)
Cost of production/day ($)

9,000
1.3
70
180,590
1.9
343,120
14
126,000
217,120

Daily tonnes ore mined

Feed grade, after dilution (% Cu)
Plant recovery (%)
Daily copper produced (lbs)
Copper selling price
Sales value ($)
Production/Process cost ($/t)
Cost of production/day ($)

Profit per day ($)

Profit per month ($)

6,513,602

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CONCLUSION:
The author has experience with an identical project. It was the design of the Aktogay Mine in
Kazakhstan. That mine was in two parts. A 16m tpa oxide mine was followed by a 25m tpa sulphide
mine.
To prepare a bankable feasibility study for the project, an estimate of the ore reserves of the
property needs to be established. This can only be completed after the ore body has been drilled and
the samples collected, chemically analysed. Drilling cost could be in the range of $65-$85 per metre.
At least 5 000 metres of drilling are needed to be convincing. This can be done after cash has been
generated from treating oxide ore.
With the downturn in the copper mining industry, there is a wide range of second-hand equipment
that can be procured cheaply. This will reduce the capital need of the project immensely.
A site visit of the property is warranted. This is needed to:

Establish, photograph and document the extent of the deposit

Collect rock, soil and sediment samples for further chemical analyses
Establish a practical and cheap pit sampling exercise of the property, and
Analyse the vegetation for copper trace elements in the soil. This will give qualitative results,
in the absence of drilled data

Ramoutar Seecharran
Mining Consultant

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