Katanga Mining Announces Ore Reserves and Mineral Resources

ZUG, Switzerland, Jan. 31, 2018 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") is pleased to announce its ore reserve and mineral resource estimates as at December 31, 2017.

Key Updates: Mineral Resources

• Overall, the measured and indicated mineral resource for Kamoto Copper Company SA ("KCC") (in which the Company has a 75% interest) increased by 7.7 million tonnes since December 31, 2016, consisting of the following:
• Changes in the indicated mineral resource are related to the addition of 7.8 million tonnes in the Kamoto Interim Tailings Dam ("KITD"), as a result of the 2017 drilling program.
• Changes in the indicated mineral resource for the KOV Open Pit, KOV Underground, and KTE is a decrease of 0.1 million tonnes due to mining depletion during 2017.
• Changes in the inferred mineral resource category for KOV Open Pit, KOV Underground and KTE is a decrease of 0.2 million tonnes due to mining depletion during 2017.

• There are no changes in the measured, indicated or inferred mineral resources reported for Mashamba East, KTO Underground, T-17 Open Pit / T-17 Underground Mine, Kananga Mine and Tilwezembe Open Pit Mine, as no mining and no geological work was undertaken in these areas in 2017.
• A reconciliation table comparing the 2016 and 2017 mineral resource estimates is set out in Annexure A.

Key Updates: Ore Reserves

• The result of the December 31, 2017 ore reserve estimate is a net increase of 13.4 million tonnes of ore reserves since December 31, 2016, of which 6.0 million tonnes is attributable to optimization and design updates for KOV Open Pit and KTO Underground. In addition, 7.4 million tonnes of reserves were added from the KITD tailings.
• A reconciliation table comparing the 2016 and 2017 ore reserves is set out in Annexure B and the key mining parameters which inform the ore reserve estimates are set out in Annexure C

KATANGA MINING LIMITED CONSOLIDATED ORE RESERVES AND MINERAL RESOURCES ^1, 2, 3, 4, 5, 6, 7, 8, 9as at December 31, 2017
Ore Reserves	Mt	%TCu	%TCo
Proved	8.8	3.55	0.55
Probable	129.4	3.13	0.51
Proved & Probable	138.1	3.15	0.51
Mineral Resources
Measured	16.4	3.58	0.57
Indicated	267.1	3.60	0.53
Measured & Indicated	283.5	3.60	0.54
Inferred	167.8	3.79	0.44

                                                                                                                                           

More detailed ore reserve and mineral resource estimates are as follows:

KATANGA MINING LIMITED PROVED AND PROBABLE ORE RESERVES ^1, 2, 5, 6, 7, 9as at December 31, 2017
Ore Reserves	Mt	%TCu	%TCo
KTO	26.9	3.40	0.54
T-17 Underground	11.3	3.65	0.62
T-17 Open Pit	0.0	0.00	0.00
Mashamba East Open Pit	32.1	2.13	0.60
KOV Open Pit	60.5	3.70	0.48
KITD Tailings (KCC PE525)	4.4	1.51	0.16
KITD Tailings (GCM PE8841)	2.9	1.46	0.17
TOTAL	138.1	3.15	0.51

KATANGA MINING LIMITED MEASURED AND INDICATED MINERAL RESOURCES ^1, 2, 3, 4, 5, 6, 8, 9as at December 31, 2017
Measured and Indicated Mineral Resources	Mt	%TCu	%TCo
KTO	78.1	3.92	0.48
Mashamba East Open Pit	60.0	1.68	0.62
T-17 Open Pit/T-17 Underground	13.6	3.89	0.61
KOV Open Pit/KOV Underground/KTE Underground	110.4	4.75	0.53
Kananga Mine	4.1	1.61	0.79
Tilwezembe Open Pit	9.5	1.89	0.60
KITD Tailings	7.8	1.49	0.16
TOTAL	283.5	3.60	0.54

KATANGA MINING LIMITED INFERRED MINERAL RESOURCES ^1, 2, 3, 4, 5, 6, 8, 9 as at December 31, 2017
Inferred Mineral Resources	Mt	%TCu	%TCo
KTO	48.5	3.83	0.38
Mashamba East Open Pit	18.3	2.85	0.47
T-17 Open Pit/T-17 Underground	5.2	4.21	0.98
KOV Open Pit/KOV Underground/KTE Underground	78.0	4.40	0.38
Kananga Mine	4.0	2.00	0.98
Tilwezembe Open Pit	13.8	1.75	0.60
KITD Tailings	0.0	0.00	0.00
TOTAL	167.8	3.79	0.44

Notes:

1. The ore reserve and mineral resource estimates have been prepared in accordance with the classification criteria of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, as amended ("JORC Code"). If the definitions and classification standards adopted by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") had been used instead of those of the JORC Code, the estimates of mineral reserves and mineral resources would be substantially similar to the estimates of ore reserves and mineral resources presented here.
2. The mineral resource estimates have been prepared by, or under the supervision of, Christiano Santos Goncalves, (MAusIMM CP (Geo) 306 079) and the ore reserve estimates have been prepared by, or under the supervision of, Jacobus Lotheringen, PrEng each of Golder Associates Africa Pty Ltd, who are each a qualified person under NI 43-101. 
3. Mineral resources are inclusive of ore reserves.
4. Mineral resources which are not ore reserves have not necessarily demonstrated economic viability.
5. The ore reserve and mineral resource estimates are for KCC's entire interest in such ore reserves and mineral resources, whereas the Company owns 75% of KCC. La Générale des Carrières et des Mines ("GCM") and La Société Immobilière du Congo, state-owned mining companies in the Democratic Republic of Congo, own the remaining 25% of KCC. 
6. Numbers may not add due to rounding.
7. Unless otherwise noted, the Company's ore reserves are estimated using appropriate cut-off grades based on an assumed long term price of $6,500 per tonne of copper and long term price of $55,000 per tonne of cobalt. Ore reserves are estimated using appropriate process recoveries, operating costs and mine plans that are unique to each property and include estimated allowances for dilution and mining recovery.
8. Unless otherwise noted, the Company's mineral resources are estimated using appropriate lithological interpretations, grade compositing and grade estimation techniques for copper and cobalt.
9. The Company's normal data verification procedures have been used in collecting, compiling, interpreting and processing the data used to estimate ore reserves and mineral resources. Independent data verification has not been performed, however, the data has been independently validated.
10. The total KITD Reserve of 7.4 Mt resides on lease boundaries PE525 and PE8841. PE525 contains 4.4 Mt of the total Ore Reserve; PE8841 contains the remaining 2.9 Mt of Ore Reserve. PE8841 belongs to GCM, however, KCC has stated that it has the legal right to mine the tailings discharged from its KTC operations as per the provisions of the JVA concluded with GCM.

Qualified Person and Technical Report
This press release was prepared under the supervision of Tahir Usmani, PEng, APEGA, an employee of Katanga and a 'qualified person' as such term is defined in NI 43-101. Mr. Tahir Usmani has reviewed and approved the contents of this press release.

The Company's technical report entitled "NI 43-101 Technical Report on the Material Assets of Katanga Mining Limited, Lualaba Province, Democratic Republic of Congo" dated March 31, 2017 is filed under the Company's profile on SEDAR at www.sedar.com.

Cautionary Note to US Investors concerning estimates of Measured, Indicated and Inferred Mineral Resources
The above tables use the terms "Measured, Indicated and Inferred Mineral Resources" in accordance with the ore reserves and mineral resource categories of the JORC Code. We advise US investors that while these terms are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them. "Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of inferred mineral resources will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. US investors are cautioned not to assume that any part or all of the inferred mineral resource exists, or is economically or legally mineable.

Unless otherwise specified, all $ amounts referred to in this press release are U.S. dollars.

About Katanga Mining Limited
Katanga Mining Limited operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT.

Forward Looking Statements
This press release may contain forward-looking statements, including, but not limited to, statements concerning the mineral resources and ore reserves of the company, economic feasibility thereof, and the overall expected improvement of recoveries and grades. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the operations of the Company during the ramp up of production following the commissioning of the Whole Ore Leach ("WOL") Project remaining consistent with management's expectations, there being no significant disruptions affecting the operations of the Company whether due to labour disruptions, supply disruptions, power disruptions, rollout of new equipment, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at the Project being consistent with the Company's current expectations; continued recognition of the Company's mining concessions and other assets, rights, titles and interests in the DRC; political and legal developments in the DRC being consistent with its current expectations; the continued provision or procurement of additional funding from Glencore for operations; the completion of the T17 Underground Mine, phase 2 of the WOL Project and the Power Project (as defined in the Annual Information Form of the Company for the year ended December 31, 2016 dated March 31, 2017); that new equipment performs to expectations; the exchange rate between the US dollar, South African rand, British pound, Canadian dollar, Swiss franc, Congolese franc and Euro being approximately consistent with current levels; certain price assumptions for copper and cobalt; prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; production and cost of sales forecasts for the Company meeting expectations; the accuracy of the current ore reserve and mineral resource estimates of the Company (including but not limited to ore tonnage and ore grade estimates); and labour and material costs increasing on a basis consistent with the Company's current expectations.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the actual results of current exploration activities; actual results and interpretation of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, development or construction activities, delays due to strikes or other work stoppage, both internal and external to the Company as well as those factors disclosed in the Company's current annual information form and other publicly filed documents. Although Katanga has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Annexure A

Katanga Mining Limited Mineral Resource Reconciliation at December 31, 2017 and 2016
Classification	Project Area	2017			2016			Variance
		Mt	%TCu	%TCo	Mt	%TCu	%TCo	Mt
Measured	KTO	12.2	3.90	0.59	12.2	3.90	0.59	0.0
	Mashamba East Open Pit	0.0	0.00	0.00	0.0	0.00	0.00	0.0
	T-17 Open Pit/T-17 Underground	4.2	2.66	0.51	4.2	2.66	0.51	0.0
	KOV Open Pit/KOV Underground/KTE Underground	0.0	0.00	0.00	0.0	0.00	0.00	0.0
	Kananga Mine	0.0	0.00	0.00	0.0	0.00	0.00	0.0
	Tilwezembe Open Pit	0.0	0.00	0.00	0.0	0.00	0.00	0.0
	KITD Tailings	0.0	0.00	0.00	0.0	0.00	0.00	0.0
	Subtotal	16.4	3.58	0.57	16.4	3.58	0.57	0.0
Indicated	KTO	65.9	3.92	0.46	65.9	3.92	0.46	0.0
	Mashamba East Open Pit	60.0	1.68	0.62	60.0	1.68	0.62	0.0
	T-17 Open Pit/T-17 Underground	9.4	4.44	0.65	9.4	4.44	0.65	0.0
	KOV Open Pit/KOV Underground/KTE Underground	110.4	4.75	0.53	110.5	4.75	0.53	(0.1)
	Kananga Mine	4.1	1.61	0.79	4.1	1.61	0.79	0.0
	Tilwezembe Open Pit	9.5	1.89	0.60	9.5	1.89	0.60	0.0
	KITD Tailings	7.8	1.49	0.16	0.0	0.00	0.00	7.8
	Subtotal	267.1	3.60	0.53	259.4	3.66	0.54	7.7
Measured and Indicated	KTO	78.1	3.92	0.48	78.1	3.92	0.48	0.0
	Mashamba East Open Pit	60.0	1.68	0.62	60.0	1.68	0.62	0.0
	T-17 Open Pit/T-17 Underground	13.6	3.89	0.61	13.6	3.89	0.61	0.0
	KOV Open Pit/KOV Underground/KTE Underground	110.4	4.75	0.53	110.5	4.75	0.53	(0.1)
	Kananga Mine	4.1	1.61	0.79	4.1	1.61	0.79	0.0
	Tilwezembe Open Pit	9.5	1.89	0.60	9.5	1.89	0.60	0.0
	KITD Tailings	7.8	1.49	0.16	0.0	0.00	0.00	7.8
	TOTAL	283.5	3.60	0.54	275.8	3.66	0.55	7.7
Inferred	KTO	48.5	3.83	0.38	48.5	3.83	0.38	0.0
	Mashamba East Open Pit	18.3	2.85	0.47	18.3	2.85	0.47	0.0
	T-17 Open Pit/T-17 Underground	5.2	4.21	0.98	5.2	4.21	0.98	0.0
	KOV Open Pit/KOV Underground/KTE Underground	78.0	4.40	0.38	78.2	4.39	0.38	(0.2)
	Kananga Mine	4.0	2.00	0.98	4.0	2.00	0.98	0.0
	Tilwezembe Open Pit	13.8	1.75	0.60	13.8	1.75	0.60	0.0
	KITD Tailings	0.0	0.00	0.00	0.0	0.00	0.00	0.0
	TOTAL	167.8	3.79	0.44	168.0	3.78	0.44	(0.2)

Notes: See the footnotes on page 3-4 of this press release.

Annexure B

Katanga Mining Limited Ore Reserve Reconciliation as at December 31, 2017 and 2016

Mining operation	2017 Reserve Estimate			2016 Reserve Estimate			Variance
	Mt	%TCu	%TCo	Mt	%TCu	%TCo	Mt
KTO	26.9	3.40	0.54	25.5	3.60	0.47	1.4
T-17 Underground	11.3	3.65	0.62	11.3	3.65	0.62	0.0
Mashamba East Open pit	32.1	2.13	0.60	32.1	2.13	0.60	0.0
KOV Open Pit	60.5	3.70	0.48	55.9	4.23	0.47	4.6
KITD Tailings (KCC PE525)	4.4	1.51	0.16	0.0	0.00	0.00	4.4
KITD Tailings (GCM PE8841)	2.9	1.46	0.17	0.0	0.00	0.00	2.9
Total	138.1	3.15	0.51	124.7	3.51	0.52	13.4

Notes: See the footnotes on page 3-4 of this press release.

Annexure C

Operation	Mining Dilutions	Mining and Pillar Losses	Geological Losses	Cut-off Grade (Cu)	Processing Recoveries (Cu)	Processing Recoveries (Co)
KTO Underground	5% to 10%	5%	5%	1.50%	76.2%	65%
KOV Open Pit	20%	5%	0%	0.65%	85%	65%
T17 Underground	8%	8%	8%	1.20%	85%	65%
T17 Open Pit	Converted to underground
Mashamba East Open Pit	7.9%	5%	0%	0.65%	85%	65%

SOURCE Katanga Mining Limited

Johnny Blizzard, CEO, Tel: [phone]; Grant Sboros, CFO, Tel:[phone]

Related Links

www.katangamining.com