Tiger Resources Delivers Positive Definitive Feasibility Study for Stage 2 of Kipoi Copper Project

Figure 2 Process Plant Final Flowsheet (CNW Group/Tiger Resources Limited)

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

After-Tax Net Present Value of US$378 million

Highlights include:

  • Production of 443kt Cu from Kipoi Central, Kipoi North and Kileba deposits over a nine-year period.
  • Annual production initially 25,000t LME Grade A copper thereafter 50,000t LME Grade A copper metal; cash operating costs of US$0.72/lb during first two years with no additional mining required (average US$1.13/lb life of mine (LOM)).
  • After-tax Internal Rate of Return (IRR) of 44% (base case)
  • After-tax Net Present Value (NPV) of US$378 million using 8% discount rate and a copper price of US$3.40/lb during 2014-2017 and US$3.00/lb from 2018
  • DFS initial project capital cost of $160.9 million. LOM capital cost, including sustaining capital and mine closure costs, of $383.5 million
  • Ongoing exploration is expected to increase the operating life with Judeira and the Lupoto  Mineral Resources  delivering a potential of a further four years plant feed

PERTH, Western Australia, Jan. 9, 2013 /CNW/ - Tiger Resources Limited (ASX/TSX code: TGS) ("Tiger" or "the Company") is pleased to announce it has completed a definitive feasibility study (DFS)  for the Stage 2 Solvent Extraction Electrowinning ("SXEW") facility at Tiger's Kipoi Copper Project in the Democratic Republic of Congo (DRC).

The DFS has confirmed the Stage 2 SXEW operation as a low-cost, high-margin project which can be commissioned after 16 months of development for a low capital cost.

Gecamines, Tiger's joint venture partner, is currently completing its review of the DFS and any material changes arising out of that review will be notified to the market.

Tiger Resources Managing Director Brad Marwood said: "The results from the DFS underline the robust economics of Kipoi and this should add significant value to our shareholders and the DRC."

"The results are very encouraging and demonstrate that Kipoi should generate significant cash flow based on the forecasted low cash operating costs."

The DFS is based on a copper price of US$3.40/lb in 2014-2017 and US$3.00/lb from 2018 onwards, generating an after-tax IRR of 44% and an NPV (at a discount rate of 8%) of US$378 million. Copper prices of $3.50 and $4.00 would increase the NPVs to $483 million and $659 million respectively, and the IRRs to 49% and 62% respectively.

The existing infrastructure at Kipoi for the Stage 1 Heavy Media Separation ("HMS") facility will act as a springboard for development of Stage 2, thereby minimising costs for the Stage 2 development. The HMS plant is currently producing above 36,000 tonnes per annum of copper in a 25% concentrate. After a short overlap period when the HMS and SXEW facilities will operate simultaneously, the HMS will be superseded in Q2-2014 by the SXEW plant, which will produce LME Grade A copper cathode directly at the mine site.

Significantly, the Stage 2 operation will initially process residues from the HMS plant with approximately 4.9Mt at 2.8% Cu which will provide feedstock to the SXEW plant for the first two and half years. On this basis, mining would not be required to recommence at Kipoi until 2016.

"The Company's immediate aim was to further improve the Kipoi economics by expanding the resource, complete the feasibility study, and move Stage 2 into development," Mr Marwood said.

"The combined Kipoi Stage 1 and Stage 2 projects are fully funded on the basis of current average copper price projections."

"However, management considered it prudent to secure copper price hedging during the development of Stage 2 to ensure stability of revenue."

"In conjunction with this hedging, Tiger has mandated Nedbank Capital, a division of Nedbank Limited and Rand Merchant Bank, a division of First Rand Bank Limited as joint mandated lead arrangers and book runners  to provide a US$80 million project debt facility to partially fund the development of Stage 2. The facility is the subject of a separate news release issued by Tiger today." A detailed summary of the DFS results is contained in Appendix A to this news release.

BACKGROUND

The Kipoi Project (Tiger Resources 60%) covers an area of 55 square kms and is located 75km north‐north‐west of the city of Lubumbashi in the Katanga Province of the DRC. The project contains a 12km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe.

The Company has reported resources at three of the deposits in accordance with the JORC (2012) guidelines. The principal deposit is Kipoi Central, which contains a zone of high grade copper mineralisation within a much larger lower grade global resource.

The Company proposes a staged development at the Kipoi Project. The high grade zone of mineralisation at Kipoi Central will be exploited during the Stage 1 Operations.

The Company has completed a feasibility study to evaluate the economic viability of constructing a SXEW plant (Stage 2), targeted to come on stream within three years of the start of the HMS operation. It is envisaged that ore from Kipoi Central, Kipoi North and Kileba and the other deposits within the Kipoi Project and within the nearby Lupoto Project would be processed during the Stage 2 operations.

Technical Information

Additional information on Tiger and its projects and operations is in technical reports filed under the Company's profile on the SEDAR website (sedar.com)

The DFS (Economic Assessment ("EA")) for the Stage 2 SXEW is based on Measured and Indicated Mineral Resources. The EA is final in nature and thus has excluded the Inferred Mineral Resources. There is no certainty that the outcomes described in the Economic Assessment will be realised. Mineral Reserves do have demonstrated economic viability as presented in this announcement.

The Indicated and Inferred Mineral Resources referred to in the news release and pertinent to the EA, in respect of Kipoi Central, Kipoi North and Kileba are reproduced below:

APPENDIX A
Stage 2 Economic Assessment

The DFS was prepared by engineering consultants ARCCON (WA) Pty Ltd, incorporating input from other specialist consultants, Cube Consulting Pty Ltd (Geology, Resources and Reserves), Worley Parsons Pty Ltd (Geotechnical, Tailings Dam, water dam and site hydrology) and DRC Green Mining and Engineering (Environmental and Sustainable development planning).The DFS objective was to demonstrate the economic viability and commercial exploitability with sufficient technical confidence to meet international standards of the Kipoi project area deposits. The DFS has been assessed to have an accuracy of -5% and +15%. The DFS provided capital costs and operating cost estimates for the evaluation of developing a Stage 2 facility at the Kipoi Copper Project with a SXEW plant circuit incorporating two separate 25,000tpa SXEW trains to be commissioned sequentially, based on:

  • Mining schedule-pit optimisations and mining schedules developed by Cube
  • Processing plant - flow sheet design and major equipment selection for processing of Stage 1 HMS residues  and mined ore from Stage 2 mining schedule
  • Tailings dam - design and costing by Worley

Mineral Resources

During 2012 SEK has completed the drilling of the Kipoi Central Deposit, Kipoi North deposit and the Kileba Deposit. Cube Consulting Pty Ltd (Cube) has been commissioned the review the drilling and associated resource definition works to ensure that international standards are met. Further numerous site visits have been conducted where effort has focused on confirming the findings of the SEK geological team. Details of this effort and the resource works will be issued in an updated NI43-101 to follow this announcement.

The resource drilling results were compiled by CSA Global Pty Ltd then verified and returned to SEK staff prior to forwarding to Cube for the mineral resource estimation to be completed. Cube has been involved with the resource estimation of the Kipoi deposits since 2009 and has been auditing the grade control activities since commencement of operations. Cube knowledge of the deposits is second only to SEK geological staff.

As drilling was completed in each deposit Cube has been preparing mineral resource estimations. The following tables detail the mineral resource estimations completed and used the DFS.

Table 1 Stage II Kipoi Central Mineral Resource Tabulation > 0.5% Copper, depleted 31st March 2012

                         
Classification   Category   Tonnes (mt)   Copper (%)   Copper (000't)   Cobalt (%)   Cobalt (000't)
    Oxide   0.0   0.0   0   0.0   0.0
Measured   Transitional   0.1   1.5   1   0.0   0.0
    Sulphide   0.1   2.4   3   0.1   0.1
    Total   0.2   2.0   4   0.1   0.1
    Oxide   10.0   1.2   124   0.1   6.3
Indicated   Transitional   4.8   1.5   73   0.1   3.0
    Sulphide   4.6   2.3   109   0.1   2.8
    Total   19.4   1.6   306   0.1   12.1
    Oxide   10.0   1.2   124   0.1   6.3
Measured +   Transitional   4.9   1.5   74   0.1   3.0
Indicated   Sulphide   4.7   2.3   112   0.1   2.9
    Total   19.6   1.6   310   0.1   12.2
    Oxide   4.2   1.0   42   0.1   4.5
Inferred   Transitional   1.1   1.0   12   0.1   1.1
    Sulphide   2.6   1.1   28   0.1   3.5
    Total   7.9   1.0   82   0.1   9.1
                         

Table 2 Total Kileba Mineral Resource Tabulation > 0.5% Copper, August 2012

                         
Classification   Category   Tonnes (mt)   Copper (%)   Copper (000't)   Cobalt (%)   Cobalt (000't)
Indicated   Oxide   6.0   1.46   87.0   0.06   3.4
  Transitional   2.1   1.60   33.2   0.05   1.0
  Sulphide   0.5   1.43   8.0   0.04   0.2
  Total   8.6   1.49   128.2   0.05   4.6
Inferred   Oxide   0.7   0.81   6.1   0.04   0.3
  Transitional   0.5   0.78   3.6   0.04   0.2
  Sulphide   1.0   1.75   17.7   0.04   0.4
  Total   2.2   1.23   27.4   0.04   0.9
                         

Table 3 Total Kipoi North Mineral Resource Tabulation > 0.5% Copper, October 2012

                         
Classification   Category   Tonnes (mt)   Copper (%)   Copper (000't)   Cobalt (%)   Cobalt (000't)
Indicated   Oxide   3.4   1.36   46.1   0.05   1.6
  Transitional   0.5   1.21   6.4   0.03   0.2
  Sulphide   0.1   1.05   1.0   0.04   0.0
  Total   4.0   1.33   53.5   0.05   1.8
Inferred   Oxide   0.4   1.20   4.1   0.04   0.2
  Transitional   0.4   1.06   3.9   0.03   0.1
  Sulphide   0.3   1.05   3.6   0.03   0.1
  Total   1.1   1.10   11.6   0.03   0.4

These Mineral Resources have been developed conforming to the JORC standard In accordance with the JORC (2004) guidelines for reporting of Mineral Resources as detailed in Appendix B to this news release.

Mineral Reserves and Mine Plan

The Stage 2 SXEW Mineral Reserves are a combination of existing stockpiles resulting from the Stage 1 HMS operations being rejects stockpiles, medium grade stockpiles and in-pit Mineral Reserves all with demonstrated economic viability.

The stockpiles and Stage 1 HMS rejects are Mineral Reserves and have been classified as Probable Mineral Reserves and are either on stockpiles or exist in the Stage 1 pit as Mineral Reserves to be mined and placed on the stockpiles over the next 18 months.

Kipoi Central Course Rejects            1.6M tonnes at 3.00% Cu
Kipoi Central Fine Rejects           0.9M tonnes at 3.00% Cu
Kipoi Central Stockpiles           2.4M tonnes at 2.40% Cu

These Probable Mineral Reserves contain 137,400 tonnes of copper and will be fed to the SXEW plant prior to the commencement of mining approximately two years after processing begins. The stockpiles have been estimated by SEK.

The Mineral Resources stated above were subject to economic assessment using an open pit mining strategy. Cube completed the analysis using current operating cost parameters from the existing operations and processing parameters provided by ARCCON who were the overall managers of the DFS. The following table presents the results from the development of Probable Mineral Reserves from the Mineral Resources stated above and the stockpiled Mineral Reserves.

Table 4 Total Reserves for the Kipoi Stage 2 SXEW Project

Mineral
Reserves
Classification Tonnes
(Mt)
Copper
%
Copper
(000't)
Kipoi Central Probable 15.5 1.20 186
Kileba Probable 5.2 1.87 98
Kipoi North Probable 1.2 1.94 24
SUBTOTAL Probable 21.9 1.41 308
Kipoi Central Stockpiles Probable 4.9 2.80 137
TOTAL Probable 26.8 1.66% 445

Pit optimisation studies were undertaken on the three principal deposits, namely Kipoi Central, Kipoi North and Kileba based on the following input parameters:

  • Copper Price: US$2.62/lb
  • Mining Costs: as per current mining contract
  • Pit Slopes: minus 37° to 42 °
  • Metallurgical Recovery: 85% based on 83% recovery from heap leach and 90% recovery from tank leach.

The remainder of the input parameters have been taken directly from current operations at Kipoi.  All inferred oxide, transitional and primary mineralisation was assigned zero recovery for purposes of the mine optimisation and thus excluded from the Reserves. The mining schedule was developed to maximise early cash flow thus improving the NPV and IRR. The follow table presents the mining production schedule. Noting that mining commences in 2016 while stockpiled plant feed will commence during Q2-2014.

Table 6 Mining Schedule for the Stage 2 SXEW Project

Table 6 is available in a release that has been filed with SEDAR and is posted on the Company's website at www.tigerresources.com.au

Figure 1: Scheduled Annual Mining Schedule by Deposit and Phase starting in 2016 after the HMS stockpiles have been depleted. Figure 1 is available in a release that has been filed with SEDAR and is posted on the Company's website at www.tigerresources.com.au

Processing

The processing facility will be a conventional solvent extraction electrowinning (SXEW) processing plant capable of 50,000t per annum copper cathode production through two parallel 25ktpa SXEW trains.

Plant feed will be crushed and washed to separate the +0.3 mm fraction from the slimes and the fines. The +0.3 mm fraction will be sent to heap leach pads where recoveries are anticipated to be 83%of contained copper while the slimes and fines will be directly fed to a tank leach system where the anticipated recoveries will range from 88% to 90%.

This split processing system allows flexibility in the process pathway offering options for high, medium and low grade ores. The HMS generates streams of feed material available for processing in Stage 2; 1.5 Mt floats at 3% Cu, 0.9Mt slimes at 3% Cu and 2.4Mt medium grade at 2.6% Cu.

The plant feed schedule will allow the HMS stockpile of the float rejects to be processed through the heap leach facility followed by the medium grade stockpile mined during the Stage 1 HMS operation.  The tank leach facility will be commissioned in the first half of 2016, with the slimes processed through the tank leach facility.

Table 7 Plant Feed and Production schedule for Stage 2 SXEW Project

Table 7 is available in a release that has been filed with SEDAR and is posted on the Company's website at www.tigerresources.com.au

Capital costs

Costs are estimated to an accuracy of +15% and -5% including contingency, are unescalated, including import duties and are expressed in US dollars.

The breakdown of costs below demonstrates $160.9 million of cost to first production with a total LOM capital cost of $385.2million, including sustaining capital. The capital cost has been phased over the three phases of development of the Stage 2 SXEW development. The phases are defined as follows:

  • Phase 1: 25,000tpa SXEW infrastructure and stockpile management
  • Phase 2:  second 25,000tpa SXEW and crushing circuit
  • Phase 3:  1.0Mtpa tank leach circuit

Table 8 Capital Cost Estimate for Phase 1, 2 and 3

Table 8 is available in a release that has been filed with SEDAR and is posted on the Company's website at www.tigerresources.com.au

Operating Costs

Costs are estimated to an accuracy of + 15% - 5%, are unescalated, exclusive of duties and taxes and expressed in US dollars.

The operating costs will be $0.72/lb ($0.83/lb year 1 and $0.69/lb year 2) during the initial two years of operations, during which the benefit of treating available leach stockpiles from the Stage 1 HMS operation will be realised. Thereafter, the slimes stockpiles and run-of-mine (ROM) material will be processed at an average operating cost of$1.29/lb. The average LOM site cash operating cost is US$1.13/lb.

The low gangue acid consumption of the Kipoi deposits, coupled with the low cost of electricity, results in process operating costs considered to be within the lowest quartile of industry standards.

Table 9 Operating Direct Cash Cost Summary

Table 9 is available in a release that has been filed with SEDAR and is posted on the Company's website at www.tigerresources.com.au

The following table details the average operating costs over the life of the mine including costs for delivery of product to market, depreciation amortisation and royalties.

Table 10 Average Operating Costs

Direct
Opex*
($/lb)
Transport +
Export costs
($/lb)
C1

($/lb)
Depreciation
Amortisation
($/lb)
Royalties

($/lb)
Total Cost
C1+C2
($/lb)
$1.13 $0.26 $1.39 $0.46 $0.12 $1.98

Note: The above costs do not assign any benefits or credits from by-products, export discounts; freight delivery credits etc. as they vary will from time to time and generally currently are approximately $0.10/lb

DFS

The DFS was prepared using the expected capital and operating costs shown above. Modelling incorporates fiscal aspects of the DRC mining laws and conventions applicable to the Kipoi project, including:

  • 30% DRC corporate tax rate
  • 2% DRC state net smelter return royalty
  • 3% import duties,
  • 60% depreciation rate of capital expenditure (in year of occurrence and straight line thereafter)
  • 2.5% Gecamines gross income royalty

A financial model was developed for a base case scenario using a copper price forecast of US$3.40/lb (2014-2017) and US$3.00/lb (2018 onwards). The results are shown in Table 11, together with the results of upside cases using copper prices of $3.50 and $4.00 to demonstrate a measure of the sensitivity of the project economics to copper prices.

Table 11: Summary of Results

Copper price IRR Net Free
Cashflows
NPV (8%) Payback
(Initial Capital)
US$/lb Cu (%) US$M US$M Months
Base Case 44 680 378 16
3.50 49 860 483 16
4.00 62 1,135 659 15

Note: Initial Capital is Stage 2 Phase 1 Capital of US$160.9M for 25,000t Cu production.

The above financial analysis excludes costs related to exploration, feasibility, financing and interest charges, no benefit has been attributed for the value remaining in the HMS project.

Project Implementation and Timing

The DFS provides guidance for the development period of the project, the Stage 2 SXEW project will take 40 months for all three Phases to be completed. The Stage 2 Phase 1 will be completed within 16 months from commencement. Phase 2 has a duration of 19 months while phase 3 is planned to take 22 months. There is some overlapping of these schedules such that all development works can be completed within 40 months.

Project Opportunities - Exploration Upside

The biggest impact on the Kipoi project value is likely to be achieved through increasing the Mineral Resource base available as feed to the Kipoi infrastructure, which has the potential to increase the mine life and/or annual plant throughput. Tiger is therefore committed to intensive exploration programmes.

Tiger is actively pursuing opportunities to increase landholdings within economic haulage distance of the central processing facility at Kipoi.

Potential also exists to add to the Mineral Resource at the 100%-owned Lupoto Copper Project just 25 km from Kipoi, where a maiden Mineral Resource was recently declared for the Sase Central deposit of 200,000t Copper contained. During 2013 Sase Central will be assessed for its potential to deliver supplemental feed to a central processing facility.

Technical report

A Canadian NI 43-101 technical report on the DFS is in progress and will be filed on the Company's profile on SEDAR within 45 days of this news release.

Appendix B: Mineral Resource Reporting Notes

ESTIMATION AND REPORTING OF KIPOI CENTRAL MINERAL RESOURCES

  1. The updated Mineral Resource estimate for the Kipoi Central copper and cobalt deposit was completed in April 2012 by Cube Consulting Pty Ltd on behalf of Tiger Resources Ltd.
  2. Mineralisation at the Kipoi Central deposit is hosted in the Mwashya sediments (R.4) that form part of a "fragment" embedded by breccias of possible diapiric origin of the Lower RAT Group (R1). The host rocks consist of a steeply southeast dipping and northeast striking succession of dolomites, siltstones and volcaniclastic rocks. It is interpreted that deformation resulted in northeast striking and south southeast dipping reverse faults that offset the host rock succession and led to the formation of broad zones of brittle deformation and brecciation. The drill database used in the Mineral Resource estimate is based on 148 diamond drill holes, 26 Resource Definition Reverse Circulation (RC) holes and 1,579 Grade Control Reverse Circulation (GCRC) holes. Sample recovery is considered to have been to industry standard for the lithologies under consideration for both RC and diamond cored drilling.
  3. Resource definition drilling was carried out along east - west fences typically at 25 x 25 and 50 x 50 metre drilling patterns.
  4. While Cube provided support during the drilling and wireframe development Cube has accepted the database from Tiger as validated.
  5. Wireframes were generated on cross sectional interpretations based on available geology and assay data available. A nominal lower cut off of approximately 0.3% Cu was used to define the mineralised envelope. The interpretation is an attempt to encompass the complete mineralised distribution and produce a model that reduces the risk of conditional bias.
  6. Data was domained by host lithologies and weathering classification.
  7. Variography was used to characterise the spatial continuity within the mineralised domains and to determine appropriate estimation inputs to the interpolation process.
  8. The deposit was interpolated using Ordinary Kriging of 5 metre downhole composited drilling data into a three dimensional block model of panel size 25(Y)m x 25(X)m x 5(Z)m.  A further process of Local Uniform Conditioning (LUC) was applied to produce a model suitable for reporting above grade cut-offs and for mine planning based on an SMU size of 5(Y)m x 5(X)m x 2.5(Z)m and a selection of grade cut-offs.  The LUC has also incorporated an Information Effect correction to allow for some effect of incomplete information on the local recoverable model result.
  9. The Mineral Resource has been classified and reported in accordance with the JORC Code 2012 guidelines.  Resource classification is based on confidence in the geological domaining, drill spacing and geostatistical measures.
  10. The current resource model provides a robust global estimate of the in situ Cu and Co mineralisation in the Kipoi Central deposit.

ESTIMATION AND REPORTING OF KILEBA MINERAL RESOURCES

  1. The updated Mineral Resource estimate for the Kileba copper and cobalt deposit was completed in August 2012 by Cube Consulting Pty Ltd on behalf of Tiger Resources Ltd.
  2. The mineralisation at Kileba is divided into a north-eastern and a south-western segment, with artisanal workings extending intermittently over a distance of about 1.1km. The drill database used in the Mineral Resource estimate is based on 102 diamond drill holes and 40 Resource Definition Reverse Circulation (RC) holes. Sample recovery is considered to have been to industry standard for the lithologies under consideration for both RC and diamond cored drilling.
  3. Resource definition drilling was carried out along southwest - northeast fences typically at 25 x 25 and 100 x 25 metre drilling patterns.
  4. While Cube provided support during the drilling and wireframe development Cube has accepted the database from Tiger as validated.
  5. Wireframes were generated on cross sectional interpretations based on available geology and assay data available. A nominal lower cut off of approximately 0.3% Cu was used to define the mineralised envelope. The interpretation is an attempt to encompass the complete mineralised distribution and produce a model that reduces the risk of conditional bias.
  6. Data was domained by host lithologies and weathering classification.
  7. Variography was used to characterise the spatial continuity within the mineralised domains and to determine appropriate estimation inputs to the interpolation process.
  8. The deposit was interpolated using Ordinary Kriging of 5 metre downhole composited drilling data into a three dimensional block model of panel size 20(Y)m x 20(X)m x 5(Z)m.  A further process of Local Uniform Conditioning (LUC) was applied to produce a model suitable for reporting above grade cut-offs and for mine planning based on an SMU size of 5(Y)m x 5(X)m x 2.5(Z)m and a selection of grade cut-offs.  The LUC has also incorporated an Information Effect correction to allow for some effect of incomplete information on the local recoverable model result.
  9. The Mineral Resource has been classified and reported in accordance with the JORC Code 2012 guidelines.  Resource classification is based on confidence in the geological domaining, drill spacing and geostatistical measures.
  10. The current resource model provides a robust global estimate of the in situ Cu and Co mineralisation in the Kileba deposit.

ESTIMATION AND REPORTING OF KIPOI NORTH MINERAL RESOURCES

  1. The updated Mineral Resource estimate for the Kipoi North copper and cobalt deposit was completed in October 2012 by Cube Consulting Pty Ltd on behalf of Tiger Resources Ltd.
  2. Mineralisation at the Kipoi North deposit is hosted within the Lower Roan (R2) sedimentary rocks. It is predominantly secondary stratabound mineralisation concentrated in the DStrat, RSF, and RSC units. The bulk of mineralisation occurs as malachite (supergene copper carbonate mineral) which is best developed as thin layer parallel veins, fill within dissolution vughs and fracture fill. The drill database used in the Mineral Resource estimate is based on 104 diamond drill holes, 22 Resource Definition Reverse Circulation (RC) holes. Sample recovery is considered to have been to industry standard for the lithologies under consideration for both RC and diamond cored drilling.
  3. Resource definition drilling was carried out along north - south fences typically at 25 x 25 metre drilling pattern.
  4. While Cube provided support during the drilling and wireframe development Cube has accepted the database from Tiger as validated.
  5. Wireframes were generated on cross sectional interpretations based on available geology and assay data available. A nominal lower cut off of approximately 0.2% Cu was used to define the mineralised envelope. The interpretation is an attempt to encompass the complete mineralised distribution and produce a model that reduces the risk of conditional bias.
  6. Data was domained by host lithologies and weathering classification.
  7. Variography was used to characterise the spatial continuity within the mineralised domains and to determine appropriate estimation inputs to the interpolation process.
  8. The deposit was interpolated using Ordinary Kriging of 5 metre downhole composited drilling data into a three dimensional block model of panel size 15(Y)m x 25(X)m x 5(Z)m.  A further process of Local Uniform Conditioning (LUC) was applied to produce a model suitable for reporting above grade cut-offs and for mine planning based on an SMU size of 5(Y)m x 5(X)m x 2.5(Z)m and a selection of grade cut-offs.  The LUC has also incorporated an Information Effect correction to allow for some effect of incomplete information on the local recoverable model result.
  9. The Mineral Resource has been classified and reported in accordance with the JORC Code 2012 guidelines.  Resource classification is based on confidence in the geological domaining, drill spacing and geostatistical measures.
  10. The current resource model provides a robust global estimate of the in situ Cu and Co mineralisation in the Kipoi North deposit.

Competent &Qualified Persons Statement:

Information in this news release that relates to the DFS has been prepared under the supervision of Mr John McCowan, a director and employee of Arccon (WA) Pty Ltd, and a member of the Australasian Institute of Mining and Metallurgy ("AusIMM").

The mineral resources section of the DFS was prepared under the supervision of Mark Zammit of Cube Consulting Pty Ltd. Mr Zammit is a full-time employee of Cube Consulting Pty Ltd and is a member of the Australasian Institute of Geoscientists ("AIG"). Mr Zammit has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code and a "Qualified Person", as such term is defined in the Canadian National Instrument 43 - 101. Mr Zammit consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.

The mining engineering section of the DFS was prepared under the supervision of Quinton de Klerk of Cube Consulting Pty Ltd. Mr de Klerk is a director of Cube Consulting Pty Ltd and is a fellow of the Australasian Institute of Mining and Metallurgy ("AusIMM").  Mr de Klerk has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code and a "Qualified Person", as such term is defined in the Canadian National Instrument 43 - 101. Mr de Klerk consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears of the DFS, which includes open pit optimisation and production schedules, was prepared under the supervision of Quinton de Klerk, of Cube Consulting Pty Ltd.

Scientific or technical information in this news release other than relates to the DFS has been prepared by Mr Bradley Marwood, Managing Director and a full-time employee of the Company and a fellow of the Australasian Institute of Mining and Metallurgy ("AusIMM"). Mr Marwood has sufficient experience which is relevant to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and to qualify as a "Qualified Person" under Canadian National Instrument 43-101. Mr Marwood consents to the inclusion in this news release of the matters based on his information in the form and context in which it appears.

Caution Regarding Forward Looking Statements:

The forward-looking statements made in this report are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements, including but not limited to those with respect to the Stage 1 mining operation and the planned Stage 2 mining operation at the Kipoi Project involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper, cobalt and silver, the actual results of future mining, processing and development activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filed documents.

There can be no assurance that the Stage 1 HMS plant will operate in accordance with forecast performance, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified within the project, that future required regulatory approvals will be obtained, that the Stage 2 expansion of the Kipoi Project will proceed as planned and within expected time limits and budgets or that, when completed, the expanded Kipoi Stage 2 project will operate as anticipated. 

Image with caption: "Figure 2 Process Plant Final Flowsheet (CNW Group/Tiger Resources Limited)". Image available at: http://photos.newswire.ca/images/download/20130109_C4767_PHOTO_EN_22373.jpg

SOURCE: Tiger Resources Limited

For further information:

For further information in respect of the Company's activities, please contact:

Brad Marwood 
Managing Director
Tel: (+61 8) 9240 1933
Email: bmarwood@tigerez.com

Stephen Hills
Chief Financial Officer
Tel: (+61 8) 9240 1933
Email: shills@tigerez.com

Nathan Ryan
Investor Relations
Tel: (+614) 20 582 887
Email: nryan@tigerez.com

Company website: www.tigerresources.com.au