Citadel Nearing Construction Start at Jabal Sayid

Citadel Resource Group, a Melbournebased Australian junior company, has awarded SNC-Lavalin the EPCM contract for the Jabal Sayid underground copper project in Saudi Arabia and is planning to begin construction in January 2010. The Jabal Sayid project is a 50:50 joint-venture between Citadel and CMCI, a Saudi company. The project is located about 300 km northeast of Jeddah and will produce about 60,000 mt/y of copper contained in 225,000 to 240,000 mt/y of concentrate. Capital cost to develop the project is estimated at $249.5 million, and cash operating costs are estimated at $0.94/lb of copper produced.

The Jabal Sayid resource is mostly pyrite-chalcopyrite stockwork mineralization hosted in rhyodactic volcanics. The project has a current inferred and indicated resource of 100 million mt, including a high-grade zone of 40 million mt grading 2.3% copper. The deposits are still open along strike and at depth.

Mine planning is based on 32.3 million mt at a 1% copper cut-off. Underground extraction will be from largescale open stopes, using cemented aggregate backfill in the primary stopes. The ore will be trucked via ramps to the surface.

Metallurgical testwork based on conventional crush, grind, flotation processing indicates a 92% recovery in a 29% copper concentrate at a concentrator throughput of 3 million mt/y. The concentrate will not be subject to deleterious element penalties and will be shipped from the port of Yanbu on the Red Sea to smelters in Europe, India and East Asia. Gold and silver content in the concentrate will be high enough to result in precious metals credits from smelters.

Concentrator tailings will be produced as a dry filtercake and transported to a lined tailings storage facility. Dry tailings storage was chosen to reduce water consumption. Approximately onethird of the tailings produced will be deslimed and returned underground as a component in the cemented aggregate fill for primary stopes.

As featured in Womp 2009 Vol 09 -