DRDGOLD expects to complete the initial test work on various tailings dams owned by Copper 360 around Okiep in the Northern Cape within nine months according to COO Jaco Schoeman.
He added that, if the outcome is positive, it would take another year to 18 months to develop a recovery project on site “depending on project flow and licencing.”
DRDGold signed a memorandum of understanding (MOU) in March this year with Copper 360 to carry out a due diligence on the company’s copper tailings dams which Copper 360 estimates contain some 50m to 60m tons of material with grades varying between 0.18% to 1.5% copper.
According to a statement issued by Copper 360 the MOU signed is for 12 months for a due diligence on the O’Okiep, Carolusberg, Lower and Upper NamaCopper copper tailings dams.
Answering questions at an investor presentation of DRDGold’s results for the year to end-June CEO Neil Pretorius commented, “I think it’s an exciting opportunity for us but how long it takes depends 100% on the outcome of the test work.
“If the test work is favourable there is absolutely no reason why we cannot get going because this is an asset where there is existing infrastructure than can be used. There’s an available tailings dam and there is a plant that can be upgraded. We have an option to acquire half that resource.”
Pretorius said Okiep fitted in well with DRDGold’s development strategy which was that the group intended sticking to projects “within the current Sibanye group portfolio of assets” which were gold and platinum tailings with the only metal to be looked at outside of those being copper “at this stage.”
He added assessing the dumps around Okiep would be a valuable learning process for DRDGold when it came to evaluating other possible copper retreatment projects.
Pretorius commented, “the copper tailings recovery project being looked at near Okiep is substantial as well as relatively cheap and relatively accessible compared with some of the other copper opportunities out there.
“When it comes to learning the geology and the metallurgy associated with copper tailings, we think it’s a very good place to go. You can gather a lot of information and build up a knowledge base without stretching the balance sheet.
“So we want to do that on a relatively conservative budget. We will build up a knowledge base that sets us up with confidence to tackle other resources.”
