Lifezone Metals announces two-phased development plan for Kabanga Nickel Project

Lifezone Metals provided an update on progress of the Definitive Feasibility Study underway at its Kabanga Nickel Project, located in north-west Tanzania, and at Kahama, where Kabanga’s Hydromet refinery will be located. Kabanga is believed to be one of the world’s largest and highest grade undeveloped nickel sulfide deposits. The Kahama Hydromet Refinery will allow for in-country beneficiation of nickel, copper and cobalt with low carbon dioxide and zero sulfur dioxide emissions. Lifezone Metals has determined that a two-phase development plan for its Kabanga Nickel Project will form the base case of the Definitive Feasibility Study. Design work and mine planning to-date supports an expected 3.4 million tonnes per year operation in the aggregate, comprised of a 1.7 million tonne per year Phase 1 and an additional 1.7 million tonne per year Phase 2 expansion. The Company continues to collaborate closely with its project partner on this two-phased development plan, as well as numerous other Definitive Feasibility Study work streams. Lifezone Metals is working to evolve and integrate sustainability across Project planning, implementation and in-country operational readiness. The Kabanga Nickel Project Definitive Feasibility Study, which evaluates the technical specifications and economic business case of the Kabanga Underground Nickel-Copper-Cobalt Mine, Kabanga Concentrator and Kahama Hydromet Refinery, is a work-in-progress and mine planning continues, including the application of modifying factors to establish the economic viability of Mineral Reserves, with various major capital items tendered. The study remains on track for completion by the end of Q3 2024. Separate programs of extensive metallurgical testing continue in support of process designs for the Kabanga Concentrator and the Kahama Hydromet Refinery. Kabanga Concentrator test work conducted on a range of variability composite samples sourced from the 2023 drilling program, representative of massive sulfide and ultramafic lithology types from the Kabanga North and Tembo zones, has demonstrated high recoveries of nickel, copper and cobalt to concentrate. The fully optimized locked-cycle test on an Early Years Blend Composite with a feed grade of 2.03% nickel achieved a nickel recovery of 88.2% to a concentrate grading 18.8% nickel. The associated copper and cobalt recoveries into the concentrate were 98.2% and 91.0% at feed grades of 0.30% and 0.17%, respectively. These recoveries are notably higher than the assumed 87.2% nickel, 85.1% copper and 88.1% cobalt flotation recoveries used to calculate the December 2023 Mineral Resource Update. This test has confirmed the historical pilot-plant results and is also in good agreement with the recovery potential as indicated from mineralogy. Lifezone Metals considers these recoveries to be excellent, the high concentrate grades present an exceptional refinery feed with low levels of deleterious elements. Further variability test work on freshly drilled core intervals was initiated in January 2024 and is currently underway to test variation in lithology. Historical test work included bench scale, batch open-circuit and locked-cycle flotation test work and two continuous pilot-plan test campaigns. Additional test work in support of the concentrator design for the Kabanga Definitive Feasibility Study has been completed at the Bureau Veritas Laboratory in Perth, under the management of technical teams from Lifezone Metals and DRA Global – the principal consulting engineer responsible for the Kabanga Definitive Feasibility Study. Over 120 bench-scale, batch open-circuit flotation tests, 116 bench-scale, bulk open-circuit flotation tests and one fully optimized locked-cycle test have been undertaken to date in the current phase of work.