Exploration at Chambishi mine

Table of Contents 1.0 2.0 3.0 4.0 5.0

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INTRODUCTION .................................................................................................................................... 2 THE EXPLORATION PROGRAM ......................................................................................................... 3 ENVIRONMENTAL ASPECTS .............................................................................................................. 6 ENVIRONMENTAL IMPACTS IDENTIFICATION, ANALYSIS, AND MITIGATION MEASURES 7 CONCLUSIONS .................................................................................................................................... 14

1.0

INTRODUCTION

NFC – Africa Mining Limited has been operating Chambishi Mine since 1998 when it took over the then closed asset from ZCCM at the start privatization of the mines. The mining license mineral rights area extends from Chambishi mine area to near Garneton on the western edge of Kitwe town. This covers an area approximately 36sqKm. This area has been explored for Copper and Cobalt since 1905. As a result of this earlier exploration, the drilling identified resources at various locations along the Kitwe – Chingola road between Mufulira turnoff and Chambishi mine turnoff. In a bid to expand operations and increase the life span of the mine NFC – Africa Mining Plc has embarked on verification exploration of various known occurrences of ore resources on the eastern part of the current mining operations. This has been done mainly to prove the quality and quantities of the previously identified resources. The whole exploration exercise will be an ongoing one in order to increase production at Chambishi Mine. The Google map below indicates the areas where current verification drilling has been going on.

Google map showing the locations where exploration drilling took place and will continue to go on.

Figure1: Aerial location of targeted drilling areas along the Chingola - Kitwe road

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Since inception of operations, NFC –Africa Mining has been trying to expand its operation to meet increased demand of Copper and Cobalt on the international market. The first expansion was the west orebody, which was achieved in 2008. The current exploration work is aimed at expanding the underground mining operation from current Chambishi mine to Sabina area near the turnoff to Mufulira along the Chingola – Kitwe road.

2.0

THE EXPLORATION PROGRAM

NFC-Africa Mining Plc has identified a potential for eastward expansion of the underground mining activities to exploit both Copper and cobalt. The potential area runs from the current Chambishi mine to the Sabina – Mufulira road almost parallel to the Chingola - Kitwe road. The identified resources lie on both the southern side of the road (near Chambishi current mining operations) and on the northern from Lusala stream to Hybrid poultry farm on the western side of Mufulira road - N2 and N1 orebody respectively (see figure1 above). Historical information indicates existence of an orebody, southern off shoot of the Chambishi basin where the current mining operations are taking place. The orebody hosts both copper and cobalt in varying ranges both in grade and tonnage. The depth location ranges from 500m in the east to about 2060m on the western end near the Chambishi mine. The exploration program is phased into three stages; • Stage one was to do confirmatory drilling for the existence of economically viable orebody in N1 and N2 orebodies or rich zones previously delineated from historical drilling • Stage two was to conduct the geotechnical exploration drilling of ground condition at depth at locations where service facilities mainly service and ventilation shafts will be. • Stage three is to proceed with further verification of the quality and quantity of ore in the zones outside zones N1 and N2 – dubbed S1 and S2. This stage is mainly to carter for future expansion and sustainability of operations insurance. NFC – Africa Mining Plc sought the expert experienced services of Sinomine Resource Exploration Company Limited of China to conduct a detailed exploration to verify the historical data on the existence of the southeast off shoot of the Chambishi basin orebody. This work started with re-examination of the available data and delineated its boundaries. The work started in earnest in December 2008 and by September 2009, the zones had been identified and verification drilling commenced thereafter. The studies identified two main resources; N1 and N2 orebodies separated by a barren zone. The quantities identified are tabulated below in tables 1 & 2:

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Table1: Estimation Summary Sheet of Southeast ore field N1 Ore Body Copper Cobalt Total Resource (Northern orebody) Ore body No.

Resource Code

Mineral quantity (ten thousand ton)

Weight (t/m3)

1

333 334 Total

4647.34 242.57 4889.91

2.6 2.6 2.6

Average grade (%) TCu Co 2.30 0.118 2.45 0.070 2.30 0.116

Metal Cu (t)

Metal Co (t)

1067070 59480 1126550

55030 1700 56730

Table2: Estimation Summary Sheet of Southeast ore field N1 Ore Body Copper Cobalt Total Resource (southern orebodies) Total resource Total resource classifica tion

Ore body numbe r

Mineral quantity (ten thousand ton)

North ore block

333

N2

South ore block

333

S1 S2 Total

Sum-total

333

Ore block name

Grade (%)

Metal quantity (ten thousand ton)

TCu

Co

Cu

Co

4647.34

2.30

0.118

106.71

5.503

362.17 2023.73 2385.90 7033.24

1.89 1.86 1.87 2.15

0.110 0.110 0.110 0.116

6.86 37.64 44.50 151.21

0.400 2.230 2.630 8.133

Exploration verification had to be carriedout to confirm these values. The work commenced in September 2009. The work involved creation of road ways and the actual camping and 12 hour drilling shifts. Though the area under consideration was within the mining rights boundary and largely covered by NFC – Africa mining surface rights, the company realized the need to take stock and identify the Environmental Aspects and the Impacts associated with the surface exploration activities. In this report the environmental aspects and impacts are identified and the mitigation measures put in place to control and minimize the impacts.

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' 53

1239. 14- 1111. 40

' 47

0. 72- ( TCu) 1. 33%

NN61

- 9000

- 10000

NN60

1218. 81- 990. 68

北N

' 41

3. 68- ( TCu) 1. 91%

' 35 ZK47- 2/ 1030m

NN58

53 16000

1235. 94- 1128. 00 22. 92- ( TCu) 2. 21%

&

' 29

1235. 94- 1200. 00 2. 74- ( TCu) 1. 69%

16000

ZK47- 1/ 1100. 45m 1100. 45m 995. 87m- 1014. 55m

' 23

18. 68m 2. 02% 0. 077%

47

NN51

1205. 95- 1006. 1

1219. 44-

NN49BNo Or e I nt er sect ed

14. 21- ( TCu) 2. 68%

NN50 已修养鸡场路

ZK35- 2/ 980m

1003. 93m

1206. 57- 828. 70 0. 71- ( TCu) 0. 61%

' 17

N- 1Co2

ZK41- 2 962. 72m- 964. 66m 2. 35%

1. 94m 0. 039%

Co0. 05%

41

NN53D1

ZK29- 1/ 900m

1232. 95- 934. 36

NN63

4. 92- ( TCu) 2. 15%

NN54 No Or e I nt er sect ed 1220. 06-

1216. 78- 899. 50 18. 41- ( TCu) 2. 11%

NN59

ZK29- 2/ 890m 920. 20m ZK35- 4 911. 55m - 913. 10m

35

5m 51

15000

NN48B

1231. 75- 810. 00

1. 55m 1. 42% 0. 049%

863. 50m ZK29- 3 824. 22m - 825. 75m

NN44D1 6. 63- ( TCu) 5. 95% 1214. 65- 775. 50

1. 50m 2. 66% 0. 050%

NN45

4. 67- ( TCu) 2. 06%

713. 20m ZK23- 4 693. 15m - 696. 13m

ZK17- 3/ 815m 1215. 75- 789. 26

NN42

1218. 19- 729. 84 10. 39- ( TCu) 2. 32%

NN55

23

621. 85m 587. 65m- 590. 91m

3. 26m 2. 01% 0. 060%

ZK17- 5

1219. 61- 581. 00

NN43

5. 32- ( TCu) 1. 74%

NN55A 3. 02- ( TCu) 2. 04%

15000

16. 27- ( TCu) 2. 29%

MJZC- 8

711. 55m

1. 00m 2. 21% 0. 051%

NN46

ZK5- 1 554. 20m- 556. 20m 593. 35m

2. 00m 0. 44% 0. 025%

6'

1218. 69- 558. 50 1. 38- ( TCu) 3. 38%

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图例 孔深( m) ZK23- 4 见矿深度( f r om- t o)

NN36

14000

5

NN16

见矿厚度( m) TCu( %) Cobal t ( %)

NN14

2009年9月底已完工钻孔

ZK29- 1

2009年正在施工钻孔

- 10000

0 ZK23- 4

NN35

1218. 64- 483. 41 2. 41- ( TCu) 0. 81%

NN15

6

1203. 67- 487. 25 5. 0- ( TCu) 1. 48%

1210. 54- 470. 92

' 12

266ppm

1209. 9- 519. 23 1. 43- ( TCu) 4. 48%

- 9000

14000

0'

8. 90m 2. 42% 0. 121%

145m

ZK11- 5 573. 45m- 574. 45m

1210. 03-

No Or e I nt er sect ed

668. 50m ZK11- 4 641. 60m - 650. 50m

5'

1218. 06- 687. 85 12. 02- ( TCu) 2. 93%

1219. 61- 583. 00

17

NN47

N- 1Co1

2. 98m 2. 40% 0. 056%

HYBRI D BOUNDARI ES

29

' 11

Co0. 10%

ZK23- 1/ 870m

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The expenditure on exploration of the Northern Area of the Southeast orebody project was as follows: US$ 2544000 was spent on exploration borehole drilling. 5

US$ 600000 was spent on road construction, core-shed construction, power line extension and water supply. US$2500000 was spent on purchasing the 14.89km2 Munkulumpe farm which lies in the vicinity of the Southeast orebody project. In 2010 schedule it was planned to drill 11 exploration bore holes with a total length of 8875m at an estimated cost of US$2271000 and US$400000 for roads power, water and other services. In 2011schedule it is planned to drill 7 exploration bore holes with a total length of 7100m at a cost of US$1968000 and US$300000 for roads, power, water and other services.

3.0

ENVIRONMENTAL ASPECTS

Surface geological exploration drilling is a semi-permanent operation. It involves shifting from one point to the next. The shifting arrangement involves the creation of temporarily camp sites. The creation of the camp site involves cutting and clearing the bush to make rough road ways to transport equipment and allow support services to the crew. Temporary shelters for the crew will be made, exploration drilling pads will be made, recycle drilling mud pits will be dug and other temporal or mobile services facilities made such as mobile toilets or pit latrines. Disposal of some solid waste material like leftover food stuffs. The whole operation will also require fresh water for use by the crew and cleaning of the equipment. In all the surface exploration operations will be associated among others with the following Environmental Aspects: • Dust generation • Noise • Oil spills • Drilling fluid spills • Solid waste generation • Waste water handling • Risk of bush fire • Communicable disease

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4.0 ENVIRONMENTAL IMPACTS IDENTIFICATION, ANALYSIS, AND MITIGATION MEASURES Geological surface exploration drilling is by and large an environmental involvement by virtue of the activity and associated activities being carriedout through partial disturbance of undisturbed land or partially disturbed land. The southeast orebody expansion project by NFC – Africa Mining Plc is located in partially disturbed land that has to some extent re-stabilized to natural eco-system. The area under consideration is semi-inhabited; one the southern side off the ChingolaKitwe road, the area is partially on mining surface rights and partially on a private farm which has since been acquired by NFC – Africa Mining Plc. The southern orebodies and service facilities such as shafts will be located in this area. On the northern side of the Chingola – Kitwe road (N1 orebody), the area is largely under surface mining rights and partially private. This area is currently occupied by squatter subsistence farming communities. Environmental impacts were identified on the basis of the information obtained from the environmental baseline data that was gathered during a site visit to the project area. Other impacts were identified during stakeholder discussions with officials from the Forestry Department and Kalulushi Municipal Council. The identified impacts were classified according to the nature of impact, that is positive or negative and significance of impact. Impact significance was determined through consideration of such issues as the likelihood of occurrence, the anticipated magnitude of impact, and duration of the impact. The following possible impacts were identified:Positive impacts  Employment opportunities for the local population  Acquisition of new skills by the local people  Improvement of social infrastructure close to the prospect Negative impacts  Dust generation along access roads and during Reverse Circulation (RC) Drilling and sample handling and transport  Increase in ambient noise and vibration levels  Occupational and inadvertent exposure to dust hazards  Loss of vegetation during access roads and drill pads preparation  Accidental spillage and leakage of oil at storage areas and drill sites  Potential increase in the spread of communicable disease such as HIV and AIDS These impacts could in turn affect the quality of receptor environmental components such as air quality, noise and vibration, water quality, soil and land use, and the socio-economic environment. The possible impacts on respective environmental components are summarized below together with the suggested mitigation measures.

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POSITIVE IMPACTS Socio-economic impacts The project required local labor throughout the life of the project. This has brought about employment opportunities for the local people in Chambishi area. The project employs at least 106 casual workers who constitute the trenching crew, and the others have been working as the sampling crew. In this regard, the project has imparted new skills to the local people through training them on the job. The project has also led to improvements in other social infrastructure. Mitigation measures • Priority has been given to the local people for employment NEGATIVE IMPACTS Air Quality Dust generated by trucks and other vehicles along access roads or by the RC Drilling activities may impact on ambient air quality. Bulldozing activities during preparation of access roads may also generate dust and cause a short term impact on air quality. This however has not affected the local people because the prospect is quite far from the dwellings. Mitigation measures • Access roads will be sprayed with water or molasses to minimize dust generation. • Convenient speed limits will be observed to minimize dust along access roads • A wet drilling technique will be employed through injection of water into the drill hole to minimize dust. • Dust will immediately settle after bulldozing activities. Noise and Vibration Drilling, trucks, and other vehicles may cause an increase in ambient noise levels. This will not affect the local population since the prospect is located far from the dwellings. However, the drilling crew will have to be protected from elevated noise levels.

Mitigation measures • Drilling sites are far from the dwellings; Workers at the drill site will be provided with the necessary Personal Protective Equipment (PPE) such as ear plugs or ear muffs to protect them from the elevated noise levels • All exploration vehicles will be regularly serviced to ensure that they are in good working condition to minimize noise generation due to faulty engines • Where the access road passes close to the dwellings, convenient speed limits will be observed to minimize noise levels

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Water Quality Siltation and contamination of surface water bodies may occur due to dust generated from drill sites and access roads. Accidental spillage or leakage of oil at storage areas or at the drill site may also cause minimal groundwater contamination. Mitigation measures • Access tracks will be sprayed with water or molasses. • Wet drilling technique will be employed through injection of water into the drill hole thereby minimizing dust generation at the drill rig. • Oil and fuel storage areas will be well paved and bunded to prevent leakage to the soil. • Drill sites will be cleaned as soon as the hole is completed to remove any spilled materials and dispose them appropriately. • All exploration vehicles and trucks will be regularly serviced to ensure that they are in good working condition to minimize oil leakages. Flora/Vegetation Clearance of vegetation during the preparation of access roads and drill pads may result in moderate loss of vegetation in the area. Mitigation measures • Access roads will be prepared along pre-existing tracks to minimize loss of vegetation. • Cutting of bigger trees will be avoided by restricting drill pads away from bigger trees. • Cleared vegetation will be allowed to regenerate at the end of the project. Fauna There will be no significant impact on fauna in the area. Soil Accidental oil spillages and leakages at drill sites or oil storage facilities may lead to soil contamination. Mitigation measures • Oil and fuel storage areas will be well paved and bunded to prevent leakage to the soil. • Drill sites will be cleaned as soon as the hole is completed to remove any spilled materials and dispose of them appropriately. • All exploration vehicles and trucks will be regularly serviced to ensure that they are in good working condition to minimize oil leakages. Safety and Health Dust generated during RC drilling may lead to occupational exposure to the drilling crew. Dust generated during handling of samples and disposal of used sample bags 9

may also pose hazards to workers handling the samples. Mitigation measures • Wet drilling through water injection into the drill hole will be employed to minimize dust generation during drilling; • Appropriate PPE such as dust masks, safety goggles, and overalls will be provided to the workers at the drill rig and at the sample storage facility to protect them from dust Solid waste Solid waste generated at the exploration camp may pose disposal challenges. Mitigation measures • Waste generated at the camp will be disposed off at a designated dump site within the NFCA facility Socio-economic impacts Increase in the number of workers moving to the area in search of employment may lead to a corresponding increase in the spread of communicable diseases, particularly HIV and AIDS. Mitigation measures • NFCA will facilitate educational programmes on HIV and AIDS in the project area

Table 3 Environmental impacts of the project and the suggested mitigation measures ENVIRONMENTAL COMPONENT

ENVIRONMENTAL IMPACT

NATUTURE OF IMPACT

SOURCE IMPACT

OF

SIGNIFICANCE OF IMPACT

MITIGATION MEASURES

Moderate

Dust will settle as soon as the bulldozer has moved Access tracks will be sprayed with water or molasses to minimize dust; Convenient speed limits will be observed to minimize dust along access

Bulldozing activities during preparation of access tracks

Air Quality

10

Dust generation may impact on ambient air quality

Negative

Trucks and 4x4 vehicles may generate dust along the access tracks

ENVIRONMENTAL COMPONENT

ENVIRONMENTAL IMPACT

NATUTURE OF IMPACT

SOURCE IMPACT

OF

SIGNIFICANCE OF IMPACT

MITIGATION MEASURES

roads

RC Drilling

Trucks and 4x4 vehicles

Noise Vibration

and

Increase ambient levels

in noise

Negative

Moderate

RC Drilling

Water Quality

11

Siltation and contamination of surface water bodies due to dust generated from drill sites and access roads

Possible groundwater contamination

Negative

Dust generated from access roads and drill sites

Low

Negative

Oil spillages and leakages at drill sites or oil

Low

Wet drilling will be employed through injection of water into the drill hole thereby minimizing dust generation at the drill site All exploration vehicles will be regularly serviced to ensure that they are in good working condition; Where the access road passes close to the villages, convenient speed limits will be observed to minimize noise levels Drilling sites are far from the villages; Workers at the drill site will be provided with the necessary Personal Protective Equipment (PPE) to protect them from the elevated noise levels Access tracks will be sprayed with water or molasses to minimize dust; Wet drilling will be employed through injection of water into the drill hole thereby minimizing dust generation at the drill site Oil and fuel storage areas will be well paved

ENVIRONMENTAL COMPONENT

ENVIRONMENTAL IMPACT

NATUTURE OF IMPACT

due to leakage and spillage of oil

Landscape and Land use

OF

SIGNIFICANCE OF IMPACT

storage facilities may lead to groundwater contamination

MITIGATION MEASURES

and bunded to prevent leakage to the soil; drill sites will be cleaned as soon as the hole is completed to remove any spilled materials and dispose them appropriately; all exploration vehicles and trucks will be regularly serviced to ensure that they are in good working condition to minimize oil leakages

No significant impact expected to occur. This is because there are no farming activities in the prospect area.

Soil

Soil contamination with oil

Flora/Vegetation

Loss of vegetation during access roads and drill

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SOURCE IMPACT

Negative

Oil spillages and leakages at drill sites or oil storage facilities may lead to soil contamination

Low

Negative

Clearance of vegetation during the preparation of access roads

Moderate

Oil and fuel storage areas will be well paved and bunded to prevent leakage to the soil; drill sites will be cleaned as soon as the hole is completed to remove any spilled materials and dispose them appropriately; all exploration vehicles and trucks will be regularly serviced to ensure that they are in good working condition to minimize oil leakages Access roads will be prepared along pre-existing tracks to

ENVIRONMENTAL COMPONENT

ENVIRONMENTAL IMPACT

NATUTURE OF IMPACT

pads preparation

Employment opportunities for the local people

Acquisition of new skills by the local people

Positive

Positive

Increase in communicable diseases, particularly HIV and AIDS

Negative

Improvement of social infrastructure in Chambishi

Positive

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No significant impact expected to occur

OF

SIGNIFICANCE OF IMPACT

and drill pads

Socio-economic

Fauna

SOURCE IMPACT

The project will require local labor throughout the life of the project The project will impart new skills to the local people through training them on the job Increase in the number of immigrants moving to the area in search of employment The project will lead to improvements in road infrastructure which will bring about subsequent improvements in other social infrastructure; at the moment there are no water supply boreholes in the area because it is not possible to bring drilling rigs through the bad access roads

MITIGATION MEASURES

minimize loss of vegetation; Cutting of bigger trees will be avoided by restricting drill pads away from bigger trees; Cleared vegetation will be allowed to regenerate at the end of the project;

Moderate

Priority will be given to the local people for employment

High

Priority will be given to the local people for employment

High

NFCA will facilitate educational programmes on HIV and AIDS in the project area

High

ENVIRONMENTAL COMPONENT

Health Safety

and

Solid Waste

5.0

ENVIRONMENTAL IMPACT

NATUTURE OF IMPACT

SOURCE IMPACT

OF

Occupational exposure to dust

Negative

Dust generated during handling of samples and disposal of used sample bags

Solid waste generated at the camp may pose disposal challenges

Negative

Exploration camp

SIGNIFICANCE OF IMPACT

High

Low

MITIGATION MEASURES

Appropriate PPE such as dust masks, safety goggles, and overalls will be provided to the workers at the drill rig to protect them from dust Waste generated at the camp will be disposed off at a designated dump within NFCA facility

CONCLUSIONS

The geological surface drilling current being undertaken by NFC – Africa Mining Plc will among others be associated with the following environmental aspects: • Dust generation • Noise • Oil spills • Drilling fluid spills • Solid waste generation • Waste water handling • Risk of bush fire • Communicable disease The likely impacts associated with the aspects identified are not likely to cause serious environmental concerns and the mitigation measure put in place are adequate to address the impacts. From the above, it can be concluded that all the potential adverse impacts of the project are either of low significance or can be mitigated.

MOKA ENVIRONMENTAL AND GEOTECHNICAL CONSULTANTS

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