DODOMA - Marula Mining PLC (AQSE: MARU A2X: MARU), an African-focused mining and development company, has announced progress on its initial copper sales from the Kinusi Copper Mine in Tanzania's Dodoma Region. Despite experiencing delays due to extended timelines for receiving metallurgical testwork and assay results, the company is finalizing sales of up to 1,000 tonnes of copper ore to four commodity trading groups based in Switzerland and the UK, with completion expected by January 31, 2025.
The delay, originally communicated on November 19, 2024, was attributed to the holiday period impacting the receipt of critical data from South African laboratories and metallurgical consultants. The awaited results, which are essential for finalizing copper concentrate product specifications and optimizing the mine's processing plant design, are anticipated by the end of January.
Marula Mining is currently developing Kinusi in two phases. Phase 1 involves the creation of a gravity concentrate, coarse jigging, and fines dewatering circuit, projected to produce 24,000 tonnes annually of high-grade copper concentrate. The subsequent Phase 2 will incorporate a hydrometallurgy fines optimized heap leaching circuit and a copper solvent extraction and electrowinning refining process, with an initial output of 10,200 tonnes per annum of copper cathode.
Preliminary feedback from metallurgical consultants on various tests, including hydrometallurgy chemistry and copper leach kinetics, has been positive, indicating metallurgical performance surpassing industry standards.
In the meantime, Takela Mining Tanzania Limited, Marula's local partner, continues open-pit mining at the No. 4 Open Pit Mine, with stockpiled high-grade copper ore ready for sale. The company has recently concluded budgetary and planning meetings in Nairobi and expects to intensify mining and processing activities at Kinusi within the current quarter.
Marula's newly appointed trading and commodity sales consultant, Mr. Richard Hawken, is overseeing the final negotiations of the initial sales contracts and advising the Board on long-term sales strategies. CEO Jason Brewer has also engaged in discussions with offtake groups in South Africa regarding long-term agreements and associated financial structures.
Despite the initial setbacks, the company remains confident in its ability to finalize these initial sales and continues to focus on securing strategic offtake agreements and non-dilutive funding structures for Kinusi.
This update is based on a press release statement by Marula Mining and contains information that is considered inside information for UK Market Abuse Regulation purposes.
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