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(Mineral property of Kasempa Mining Limited)
KASEMPA DISTRICT, NORTHWESTERN PROVINCE, ZAMBIA.

Prepared By
Kenneth Ramoutar Seecharran, MSc(Eng), CEng, ACSM, MCIM, FIMM
Consultant Mining Engineer
August 1999 «revised in December 2004
Prepared for and on behalf of Mr. Chris Daka

Further revised in April 2011 for the directors of Kasemba Mining








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1.1 Location and Access
Kasempa Copper Deposit lies in the Kasempa salient in Kasempa
District of Northwestern Province in Zambia. It is bound by the following
Beacon positions, as per the map lodged with the ministry of lands;

A. 385214E/8519960N
B. 384954E/8518334N
C. 386224E/8517627N
D. 386241E/8519544N
It is accessed from Kasempa town by a gravel road.

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Historically, copper was mined in this area for several centuries. It was for this reason
that this area was not affected by the Portuguese and Arab slave trade. The local
inhabitants were able to amicably trade copper and food with the slave traders. The
copper furnace below was discovered in the Luapula watershed, where a cousin to the
predominant tribe in this area, the Ushi, was smelting copper more than two centuries
ago.

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Oxides of copper were smelted in the presence of charcoal as the reducing agent. On
burning, the charcoal removed the hydrogen, oxygen and carbon from the malachite
and azurite, leaving metallic copper as a solid residue. A copious amount of air was
blown through the holes shown at the bottom of the furnace by means of an animal skin
bellows. Such skills were kept within the family. The father, sons and nephews, sons of
his sister, not brother, as these were matrilineal societies.
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The Kasempa area is rich in oxide caps comprising malachite Cu2CO3(OH)2,

chrysocolla (CuAl)2H2Si2O5(OH)4.nH2O and minor azuriteCu3(CO3)(OH)2 ,

cuprite CuO is found only in traces. At lower levels (depth) copper sulphides in

the form of chalcopyrite CuFeS2, predominate. Copper grades can go up to

45% total copper. The following examples of copper minerals were picked from

the site in August 1999.


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Detailed exploration is required to determine the copper ore reserves. This

will be imperative in order to prepare a bankable document. This can be carried
out concurrently with mining operation in order to ease the burden on cash flow.

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5.1 Conclusion
The Kasempa copper deposit contains mineable copper ore. The copper
ore occurs predominantly as malachite and chrysocolla, with minor azurite.
Copper grades can go up to 45% total copper with skilled selection, based
on colour. However, copper sales will be conducted on acid soluble (AS)
copper content and not on total copper. This must be considered in any
financial model! Unless it will be sold to a plant with heap leaching facility,
chrysocolla will not be recovered and will be lost as tailings during agitation
leaching.
5.2 Recommendation

It is being recommended that detailed exploration to determine the

reserves be conducted to determine the reserves, this can be done
simultaneously with mining operation to improve the cash flow. The
chrysocolla found in the ore should be considered as a resource and not as
a reserve, until the Muliashi mine commences operation.
Mining should commence immediately, as there is a flurry of exploration

activity in the area. Should one of the big mining houses discover an
economic deposit, this property will be forced to surrender to them! The
deposit lies in an unspoilt part of Zambia, as a consequence, strict
environmental practices must be adhered to. Exploration is best carried out
by contract labour.

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There are currently two processing plants in Zambia which can treat the ore
produced from the mine, namely Bwana Mukubwa and Sable zinc. Both are

starved of feedstock because of the ban on the export of raw material from
the DR Congo. Bwana Mukubwa was fed by the Lonshi mine and Sable
zinc by material from its sister operation at Ruashi mine near Lubumbashi.
Plans are at an advanced stage to open the Muliashi mine in Luanshya, this
mine will have heap leaching facility. So it is recommended that the
chrysocolla mined be stockpiled and wait for the opening of the Muliashi

facility in 2010/12.

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DOZER $130/hr @ 10 hrs per day for 90d - 1 off $117,000

TRUCKS $65/hr @ 8 hrs per day for 90d - 2off $93,600
DRILLS $60/hr @ 6 hrs per day for 90d - 3 off $97,200
EXCAVATOR $130/hr @ 8 hrs per day for 90d - 1 off $93,600
FRONT/E LOADER $90/hr @ 8 hrs per day for 90 days - 1 off $64,800
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EXPLORATION $20 000/m ± By contractor $60,000
CEO Local $10 000/m $30,000
COO Expat $25 000/m $75,000
MINE MANA Local $5 000/m $15,000
MINE CAPT Local $3 500/m $10,500
ACC/CLERK Local $3 200/m $9,600
DRILLERS Local X 3 $2 500/m each $22,500
BLASTERS Local X 2 $2 500/m each $15,000
DRIVERS Local X 6 $1 600/m each $28,800
O/B STRIP Loc X 5 $2 000/m $30,000
GEN LABOUR X 6 $600/m each $10,800
SECURITY Local X
10 $750/m each $22,500

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EXPLOSIVES $350,000
DIESEL $25,000
OILS/GREASES $5,000
OFFICE ITEMS $3,000
SAFETY ATTIRE/SANITATION/MEDICINES $15,000
FOOD $15,000
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DIESEL GENERATOR PURCHASE @ $8 000 $8,000

COMPUTER PURCHASE @ $2 000 $2,000
PURCHASE @ $15 000
EXPLOSIVES VEHICLE s/hand $15,000
PURCHASE @ $45 000 ea
3 X STAFF VEHICLES new $135,000
PURCHASE @ $25 000
2 X UTILITY VEHICLES s/hand $50,000
ACCOMMODATION BUILDINGS $430,000
OFFICE BUILDING/FURNISHING $40,000
EXPLOSIVES MAGAZINE $20,000
TITLE DEEDS/CHIEF'S/MINISTRY GIFTS $50,000
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100t/DRILLER/d ====> 8 400t IN 28 DAYS

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ASSUMING 50% DISCARD FROM SORTING OPERATION FOR 10-20% GRADE
ASSUMING 60% DISCARD FROM SORTING OPERATION FOR 20-25% GRADE
ASSUMING 65% DISCARD FROM SORTING OPERATION FOR 25-30% GRADE

ASSUMING GRADE OF 10% Cu $1,470,000

ASSUMING GRADE OF 15% Cu $2,205,000

ASSUMING GRADE OF 20% Cu $2,940,000
ASSUMING GRADE OF 25% Cu $2,940,000

ASSUMING GRADE OF 30% Cu $3,087,000

WE ASSUME THAT THE PURCHASER WILL COLLECT THE ORE AT THE MINE SITE

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THIS WILL BE REALISED DURING THE 5 MONTH AFTER STARTING. THIS CATERS FOR MINE DEVELOPMENT

AND TRAINING. >  > ÊÊ Ê
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FOOD WILL BE PROVIDED FOR ALL WORKERS IN THE CAMP





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FREEMAN, P.V, Dr. 1987 Description of some Mineral Deposit

Discovered or Re-Investigated in the post World War II Period.

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