Katanga Mining announces first quarter 2015 production results and date for release of Q1 2014 financial results

ZUG, Switzerland, May 4, 2015 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces first quarter 2015 production results and date for release of Q1 2015 financial results.

Highlights during the three months ended March 31, 2015, and Outlook

Mining

• During Q1 2015 the Company increased the ore production by 39%, when compared to Q1 2014, this is principally due to an increase of 58% at KOV Open Pit where 4 new Caterpillar 793D haul trucks were commissioned in Q2 2014.  KTO contributed with a 13% increase in ore production, compared to Q1 2014 due to higher stope availability resulting from increased backfilling and development.  Waste tonnes mined were 4% higher than Q1 2014.
• Q1 2015 ore tonnes mined were comparable to Q4 2014, despite dewatering issues encountered at KOV during the DRC rainy season.  This effect also resulted in the lower average copper grade achieved as higher grade material at the pit bottom was not as accessible. The Q1 2015 contained copper increased by 23% compared to Q1 2014 and reduced by 16% compared to Q4 2014.
• In Q1 2015, the Company commissioned:
  • Two new Caterpillar R2900G loaders to increase the underground mining volumes;
  • One new fuel truck for use underground;
  • Two Caterpillar D11 dozers and one Caterpillar 834K dozer to optimize mined waste management; and
  • Six new Atlas Copco 282 Rocket Boomers used for roof support and rehabilitation underground.

Processing

• Ore milled at KTC during Q1 2015 reached a record level driven by the increased volumes milled at CM5 (commissioned in Q4 2014 as part of the Phase 5 project).  CM5 is currently milling at 90% of design capacity.
• Finished copper metal produced at Luilu increased by 18% over Q1 2014 driven by the increased volumes throughput partly offset by the lower mined grades.  Finished copper metal produced was a 13% decrease over Q4 2014 driven by the lower mined grades specifically at KOV Open Pit where mining was affected by inclement weather leading to variable grade feed at KTC.
• Cobalt metal produced totalled 884 tonnes for Q1 2015, a 66% increase from Q1 2014 due to the increased volume fed together with improved recoveries thereon.
• In Q1 2015, the Company commissioned the following at Luilu in order to improve throughputs and recoveries:
  • An upgrade to the existing water filtration plant;
  • A new oxide receiving thickener; and
  • Enhancements to the roaster for utilities, calcine cooling and gas treatment.

Outlook

• During Q2 2015, the Company expects to commission:
  • Five new Caterpillar 793D haul trucks operating in KOV to increase ore and waste mining capacity; and
  • Improvements to the froth skimmers in the KTC oxide flotation section.

The Company expects to release its first quarter 2015 financial results on or about May 14, 2014.

This press release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and a "qualified person" as such term is defined in NI 43-101. Mr. Henderson has reviewed and approved the contents of this press release.

About Katanga Mining Limited
Katanga Mining Ltd. operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT.

Forward Looking Statements
This press release may contain forward-looking statements, including, but not limited to, the commissioning of new haul trucks and improvements to froth skimmers at KTC. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include: there being no significant disruptions affecting the operations of the Company whether due to labour disruptions, supply disruptions, power disruptions, rollout of new equipment, damage to equipment or otherwise; permitting and development, being consistent with the Company's current expectations; continued recognition of the Company's mining concessions and other assets, rights, titles and interests in the Democratic Republic of Congo ("DRC"); political and legal developments in the DRC being consistent with its current expectations; prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; and labour and material costs increasing on a basis consistent with the Company's current expectations.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the actual results of current exploration activities; actual results and interpretation of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, development or construction activities, delays due to strikes or other work stoppage, both internal and external to the Company, as well as those factors disclosed in the Company's current annual information form and other publicly filed documents. Although Katanga has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

SOURCE Katanga Mining Ltd.