Optimised Feasibility Study Results Significantly Improve Economics For Development Of Mining Operation At Kipoi Project DRC

    PERTH, Western Australia, April 16 /CNW/ - Perth-based emerging copper
miner Tiger Resources Limited ("Tiger" or the "Company") (ASX/TSX: TGS) is
pleased to report the completion of the Optimised Feasibility Study (the "OS")
for the proposed Stage 1 development of the Kipoi Project (the "Kipoi Project"
or the "Project") located in the Katanga Province in the Democratic Republic
of Congo ("DRC"). The results of the OS demonstrate significantly enhanced
economics and a substantial reduction in pre-production capital expenditure.
The OS is based on producing a high grade +25% copper concentrate only, and
includes many improvements to the September 2008 Definitive Feasibility Study
(DFS), that should facilitate the securing of project financing to enable the
commencement of mining operations at Kipoi.


    -   Optimised Feasibility Study completed for Stage I of the Kipoi

        -  Significantly improved project economics: Internal rate of return
           of 87%

        -  Substantial reduction in capital expenditure and cash costs:
           Capital expenditure reduced to US$30 million with cash costs of
           US $0.33/lb

        -  Shorter payback and construction/pre-strip period: 1.3 years
           payback period

        -  Increase in copper recovery: 8% increase over DFS levels

        -  Earlier production than under DFS

    -   Upgraded Resource estimation for Kipoi Project:

        -  Total inferred resource 644,000 tonnes of contained copper and
           2.79 million ounces of silver

    -   Project cash flow could be considerably increased by cobalt mining,
        processing and sale previously not considered in DFS

    -   DRC contractual agreement regarding Kipoi Project concluded

    -   Financing discussions for the Kipoi Project well advanced

    The key outcomes of the OS are as follows:

    OS Project Economics Based on Copper Price of US$2.00/lb compared to
    DFS Project Economics Based on Copper Price US$2.50/lb

    Financial Model                               OS RESULTS    DFS RESULTS
    Capital expenditure                               US$30M         US$59M
    Cash cost per pound                              US$0.33        US$1.20
    Project cash flow                                US$100M        US$138M
    Net present value (at 10% discount rate)          US$55M         US$58M
    Internal rate of return (after tax and
     royalties)                                          87%            51%
    Payback                                        1.3 years      1.5 years
    Construction and Pre-Strip Period               6 months      12 months

    The above economics are at the Project level, on a 100% Project basis and
exclude any finance costs. See "Project Ownership", below. The above economic
analysis is not based on inferred resources.

    Optimisation Study

    Following the completion of the DFS, prepared by Lycopodium Engineering
Pty Ltd, in September 2008 and in response to the tightening in global debt
markets, an OS internally managed by the Company has been carried out. The key
objectives of the OS were to revise the DFS so as to be able to minimise
pre-production capital expenditure and debt payback period, to maximise the
Project's return on capital, and to bring the Project into early production.
    The strategy outlined in the DFS was for a two stage development within
the Kipoi Project. Stage 1 was a start up processing operation producing a
high grade copper concentrate to be smelted in two shaft furnaces to produce
32,000tpa of black copper. A Heavy Media Separation ("HMS") plant would
operate for approximately 3 years before being replaced by the Stage 2 leach,
Solvent Extraction and Electrowinning ("SXEW") processing plant to be
constructed on site adjacent to Stage 1, which would utilise much of the
infrastructure developed to support Stage 1.
    Stage 1 was only feasible due to the exceptionally high grade of the
Kipoi Central Measured and Indicated Resource (refer Table 1) that would feed
the HMS plant with 900,000 tonnes per annum of material having a head grade of
+7% Cu.
    The strategy proposed in the OS remains a two stage development at the
Kipoi Project. Stage 1 is simply a mining, HMS and spiral operation to produce
a +25% copper concentrate (at a rate of approximately 150,000 tonnes of copper
concentrate per annum) to be sold at the mine gate to a metal trader or direct
to processing operations in the Katanga province or across the border in
Zambia. The HMS plant would operate for approximately 3 years before being
replaced by the Stage 2 SXEW processing plant.
    During the life of the HMS plant operation it is expected that a total of
4.8Mt @ 2.97% Cu ore and unrecovered material from Stage 1 processing will be
stockpiled and then used as feed in the planned Stage 2 SXEW processing plant.

    Key Improvements

    The key improvements resulting from the OS that have significantly
enhanced the Stage 1 project economics include:

    -   Removing the two shaft furnaces (and associated infrastructure) and
        thereby reducing the scope of the Stage 1 operation to mining and
        processing ore through an HMS plant to produce a 25% Cu concentrate.
        Capital expenditure has been significantly reduced as a result of the
        removal of all costs associated with the inclusion of furnaces.

    -   Introducing a spiral system into the processing circuit to recover
        additional copper from fines material. The concept of upgrading the
        recovery of copper through use of gravity was identified by Intermet
        Engineering in the course of the DFS. Metallurgical testwork results
        have demonstrated that the inclusion of the spiral system, for
        additional capital expenditure of approximately US$1 million, will
        result in an 8% increase in overall copper recovery from the
        HMS plant.

    -   Reduced or removing other costs where efficiencies could be
        identified in the design of the remaining facilities including
        simplification of power requirements and the crushing plant,
        reflecting the less complex and smaller process facility than that
        incorporated within the DFS design.

    -   In the DFS mining costs were based on an 'owner operator' approach
        with the maintenance of the mobile fleet conducted by original
        equipment manufacturers under a maintenance and repair contract
        arrangement. In the OS mining costs were revisited to take account of
        the substantial reduction in contract mining rates brought about by
        the downturn in mining activities which has resulted in the current
        surplus of mining equipment in the Katanga Region. Tiger also
        recognises the potential benefits of using contractors in the early
        stages of project development to defer capital expenditure, and
        reduce operating performance risk.

    -   Further reductions in mining costs have also been identified as a
        result of recent geotechnical investigations that identified that
        most of the Stage 1 ore could be excavated via "free dig" or with
        minimal drill and blast requirements.

    The Board of Directors of Tiger considers that the revised OS provides a
sound development position allowing the Company to get into early production
and generate significant cash flow that will allow for acceleration of the
development of the long mine life Stage 2 SXEW operation and continuation of
development drilling targeted at expanding the current Project resources and
reserves (refer Table 1).

    Mineral Resources and Reserves

    In July 2008 an upgraded Resource estimation for Kipoi Central, focussed
on the area that forms the first three years of production within the Stage 1
Pit design, was estimated as follows:

    Table 1: Kipoi Central Project Classified Resource (greater than)5%

    Classifi-            Tonnes Copper Copper  Cobalt  Cobalt  Silver Silver
     cation    Category    Mt      %   (000't)    %    (000't)  g/t  (000'oz)
    Measured     Oxide    1.5    8.4     125    0.2        3    4.6     222
              Transition  0.3    8.8      24    0.1      0.3    5.9      52
                 Fresh    0.2    8.2      14    0.1      0.2    3.9      21
    Indicated    Oxide    0.2    6.9      17    0.1      0.3    3.4      27
              Transition  0.2    7.5      12    0.1     0.22    5.4      27
                 Fresh    0.5    7.6      39    0.1     0.57    5.5      91
    Total                 2.9    8.1     232   0.15        4    4.8     441

    Total Mineral Reserves at Kipoi Central were estimated in September 2008
    as follows:

    Table 2: Kipoi Central Project - Stage 1 Mineral Reserve by Material Type

                                                              Contained Metal
    Destin-   Reserve    Material  Cutoff Tonnes  Cu  Co  Ag   Cu   Co   Ag
    ation     Category               Cu%    Mt     %   %  g/t (kt) (kt) (koz)
    HMS Feed  Proven    Oxide,      +3.25  2.54  7.1 0.2  4.5  181  4.1  371
              Probable  Oxide,      +3.25  0.14  5.5 0.1  3.4    7  0.2   15
     Reserves                       +3.25  2.68  7.0 0.2  4.5  188  4.3  386

    Note - the Measured and Indicated Mineral Resources are inclusive of
           those Mineral Resources modified to produce the Ore Reserves.

    Inferred Resources

    In March 2008 an initial Inferred Resource for Kipoi Central of 13.4Mt at
3.3% Cu containing 439,000 tonnes of copper, 20,000 tonnes of cobalt and
1,416,000 ounces of silver was estimated.
    In April 2009 an initial Inferred Resources of 5.3Mt at 1.36% Cu and 8.1%
Ag containing 72,000 tonnes of copper and 1,372,000 ounces of silver for Kipoi
North and 9.5Mt @ 1.40% Cu containing 133,000 tonnes of copper for Kileba
South were estimated.
    The total current inferred resource for the Kipoi Project now stands at
644,000 tonnes of copper and 2,788,000 ounces of silver.

    Further Work - Stage 1

    The Company is also continuing to look for other ways to improve cash
flow for the Stage 1 development. In the DFS no consideration was given to the
recovery and sale of the substantial high grade cobalt reserves that would be
mined during Stage 1. The intention had been that the cobalt ore would be
stockpiled and processed in Stage 2 through a circuit incorporated into the
Leach and SXEW design to produce a cobalt product.
    During the course of the OS Tiger commenced reviewing the feasibility of
selectively mining and processing a distinctive cobalt rich zone that outcrops
at surface and is contained within the Stage 1 pit shell. The unit classified
at the COZ zone averages (greater than)0.75% cobalt. Refer Table 1 for an
estimation of cobalt reserves. The cobalt occurs as the mineral heterogenite
composed of 64% cobalt. Heterogenite has a specific gravity of around 4.3
which should make it amenable to be upgraded by gravity separation. A bulk
sample taken from the COZ zone has been collected and shipped to Perth for
metallurgical testwork.
    Testwork on the bulk sample is expected to be finalised in late June
2009. If testwork confirms the ability to produce a saleable cobalt
concentrate, and capital and operating cost for such equipment is minimal,
then there is the opportunity to considerably improve the cash flow generated
by the Stage 1 development. Market research shows there is a strong demand
from metal traders and furnace operators in the DRC for cobalt concentrate of

    Further Work - Stage 2

    Tiger has recently commenced feasibility work for the planned Stage 2 of
the Kipoi Project development. Stage 2 would involve the installation of an
SXEW plant including either heap leach pads or leach and solids liquids
separation components. Based on preliminary work undertaken to date:

    -   Tiger expects an SXEW plant will give a recovery of copper from ore
        of between 80% to 90%.

    -   Tiger plans to initially focus on an SXEW plant with a 15,000tpa -
        20,000tpa capacity. Tiger believes, depending on the leach process
        employed and availability of certain second hand components, that
        capital expenditure will be between US$60M to US$100M. The plant
        capacity could be expanded.

    -   Tiger expects feasibility work for Stage 2 to take approximately 6
        months to complete.

    -   Tiger considers that a leach and SXEW operation will be the most
        efficient and cost effective means of processing (less than)3% oxide
        copper ore not just from the Kipoi Central deposit but also for the
        satellite Kipoi North, Kileba North and South and Judeira deposits
        that fall within the Kipoi Project area.

    -   Tiger will be examining ways to introduce an SXEW operation as early
        as it is feasible to do so.

    Project Ownership

    The project area is covered by PE533 and a part of surrounding PR1063.
SEK sprl has the rights to the Kipoi Project and is a DRC registered company
jointly owned by Congo Minerals sprl (60%) and La Générale des Carrières et
des Mines (Gécamines) (40%), a DRC State-controlled mining company. The
Company is acquiring a 60% interest in SEK sprl through its arrangements to
acquire 100% of Congo Minerals and Tiger Congo sprl.
    On 27 January 2009 Tiger announced that a revised agreement has been
signed with Gécamines in respect of the contractual arrangements governing the
Kipoi Project. This brought to a conclusion the review by the Government of
the DRC of the contractual arrangements governing the Kipoi Project. As part
of the revised contractual arrangements Tiger Congo has made a US$3 million
pas de porte or entry premium payment to Gécamines, with such amount to be
deducted from the payment due to the vendors of the shares in Congo Minerals
by Tiger Congo in July 2009 (and as a result of making the payment Tiger Congo
has increased its interest in Congo Minerals sprl from 13% to 27%).


    Tiger is now targeting finalising discussions with a number of banking
institutions and potential metal offtakers in Australia, Europe and South
Africa regarding financing of the Stage 1 Project. Groups selected have shown
keen interest in lending funds for development of the Kipoi Project in
conjunction with the South Africa Government Export Credit Insurance
Corporation (ECIC) scheme. The ECIC scheme facilitates and encourages South
African export trade by underwriting bank loans and investments outside the
country. Benefits of the ECIC scheme include reduced interest rates and
political risk insurance. Tiger expects to secure project finance for the
Stage 1 Project in the third quarter of 2009, and is targeting commencement of
production in the second quarter of 2010.

    Additional Notes:

    The Information in this report that relates to Mineral Resources at Kipoi
Central and Kipoi North is based on resource estimates compiled by Mr Ted
Hansen and Mr Rick Adams, both of whom are members of the Australasian
Institute of Mining and Metallurgy ("AusIMM"). Mr Hansen and Mr Adams are
directors and full time employees of Cube Consulting Pty Ltd. Mr Hansen and Mr
Adams each has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" (the "JORC Code") and to qualify as a
"Qualified Person" under National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101"). Mr Hansen and Mr Adams consent to the
inclusion in this report of the matters based on their information in the form
and context in which it appears.
    The Information in this report that relates to Mineral Resources at
Kileba South is based on information compiled by Dr Simon Dorling, who is
member of the Australian Institute of Geoscientists ("AIG"). Dr Dorling is a
full time employee of CSA Global Pty Ltd. Dr Dorling has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and 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 NI 43-101. Dr Dorling consents to the inclusion in this report
of the matters based on the information in the form and context in which it
    The Information in this report that relates to Ore Reserves is based on a
Reserve estimate compiled by Mr Quinton de Klerk, a member of AusIMM. Mr de
Clerk is a director and full time employee of Cube Consulting Pty Ltd. Mr de
Clerk has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and 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 NI 43-101. Mr de Clerk
consents to the inclusion in this report of the matters based on his
information in the form and context in which it appears.

    Caution Regarding Forward Looking Statements and Forward Looking
Information: This news release contains forward-looking statements and forward
looking information, which are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements and forward looking information, including but not limited to those
with respect to the development of a Stage 1 mining, HMS and spiral system
operation, a Stage 2 SXEW plant at Kipoi Central, the earning by Tiger of its
interest in the Kipoi Project through its acquisition of the remaining 15%
interest in Tiger Congo and its acquisition of 100% of Congo Minerals, and its
plans to secure project finance for the Stage 1 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 current exploration, the availability of debt financing for a
company that does not have any producing properties, the volatility currently
being experienced in global financial markets, 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 Annual Information Form, under the heading "Risk Factors". The
Company's Annual Information Form is available under the Company's profile on
SEDAR at www.sedar.com.

For further information:

For further information: in respect of the Company's activities, please
contact: David Young, Managing Director, Tel: (+61 8) 9240 1933, Email:
dyoung@tigerez.com; Reg Gillard, Chairman, Tel: (+61 8) 9240 1933, Email:
gillardr@tigerez.com, Company website: www.tigerresources.com.au

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