KOLWEZI, Democratic Republic of Congo, Nov. 21, 2017 (GLOBE NEWSWIRE) -- Ivanhoe Mines (TSX:IVN) (OTCQX:IVPAF) Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric Johansson today announced that the Kamoa-Kakula mine development team has celebrated the first blast marking the start of work on the twin declines at the ultra-high-grade Kakula Copper Discovery on the company’s Tier One Kamoa-Kakula Copper Project, near the mining centre of Kolwezi in the Democratic Republic of Congo (DRC).
The Kakula box cut was successfully completed on October 26, 2017, and the first blast for the twin declines at Kakula took place on November 16, 10 days ahead of schedule. The Kakula decline development work is being undertaken by JMMC, a DRC subsidiary of JCHX Mining Management of Beijing, China. Depending on ground conditions, the 3,600-metre decline development contract is scheduled for completion in approximately one year.
In response to the spectacular exploration success at the Kakula Discovery, Ivanhoe Mines and Zijin Mining are fast-tracking the mine development program at Kakula. The Kakula Copper Deposit is a gently-dipping blanket of thick, chalcocite-rich copper mineralization. Initial mine development is planned to begin in the flat, near-surface zone which, at a 3% cut-off, is between 7.1 metres and 11.7 metres thick and with copper grades between 8.11% and 10.35% along the deposit’s axis.
Fourteen rigs are continuing to drill at Kamoa-Kakula, including 10 rigs focused on expanding and upgrading the resources in the Kakula high-grade zone along trend to the west and southeast. A fresh resource estimate for Kakula is being prepared and is expected to result in a major upgrade and expansion of the Kakula Mineral Resources.
The area encompassed by the May 2017 Kakula Mineral Resource and the location of the Kakula box cut and declines are shown in Figure 1.
New expanded-case Kamoa-Kakula preliminary economic assessment (PEA) scheduled for completion this quarter
The new Kamoa-Kakula Project PEA is progressing well and is expected to be completed this quarter. The PEA is based on an initial mine capacity of six million tonnes per annum (Mtpa) at Kakula, using the May 2017 Mineral Resource estimate, with an additional six-Mtpa mine at Kansoko, serving a centralized concentrator at Kakula, for a projected mine production of approximately 12 Mtpa from the presently delineated Kamoa and Kakula deposits.
In addition to the new PEA study, preliminary work is underway on a six-Mtpa pre-feasibility study at Kakula that will be based on the upcoming, January 2018 resource model. The study will be considered as the base case for the first phase of development at Kamoa-Kakula. In light of the successful step-out drilling at Kakula West, the Kamoa-Kakula development plans will be reassessed and amended as the project moves forward.
Potential phased mine developments of up to 18 Mtpa also are being assessed for the Kamoa-Kakula copper complex.
The new drill results are expected to result in a major upgrade and expansion of the Kakula Mineral Resource
Results from drill holes completed to the end of October 2017 will form the basis of the planned updated mineral resource estimate encompassing the entire strike length of the Kakula Discovery, which now extends to at least 12 kilometres. This would represent an increase of approximately 60% in the strike length that will be used to calculate the new resource estimate, as compared to the 7.7-kilometre strike length covered by Kakula’s May 2017 resource estimate. The updated resource estimate is expected to be issued in January 2018.
“We’re looking forward to providing our shareholders and all Kamoa-Kakula stakeholders with another substantial resource expansion soon after the coming holiday season,” said Mr. Friedland.
About the Kamoa-Kakula Project
The Kamoa-Kakula Project is a very large, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, located approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi. The Kamoa Copper Deposit was discovered by Ivanhoe Mines (then named Ivanhoe Nickel & Platinum) in 2008, followed by the discovery of the Kakula Deposit in early 2016.
Based on a May 2017 Mineral Resource estimate prepared under the direction of Dr. Harry Parker and Gordon Seibel of Amec Foster Wheeler, the combined Kamoa-Kakula Indicated Mineral Resources total approximately one billion tonnes grading 3.02% copper, containing 66 billion pounds of copper, plus another 191 million tonnes of Inferred Resources at 2.37% copper, at a 1.4% copper cut-off grade.
In August 2012, the DRC government granted mining licences to Ivanhoe Mines for the Kamoa-Kakula Project that cover a total of 397 square kilometres. The licences are valid for 30 years and can be renewed at 15-year intervals. Mine development work at the project began in July 2014 with construction of a box cut for the decline ramps for the planned Kansoko Sud Mine.
Ivanhoe Mines and Zijin Mining each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River Global Limited holds an indirect 0.8% interest and the DRC government holds a direct 20% interest.
Qualified Person and Quality Control and Assurance
The scientific and technical information in this release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines’ Vice President, Project Geology and Evaluation, and a Qualified Person under the terms of National Instrument 43-101. Mr. Torr, who is not independent of Ivanhoe Mines, has verified the technical data disclosed in this news release.
Ivanhoe Mines maintains a comprehensive chain of custody and QA-QC program on assays from its Kamoa-Kakula Project. Half-sawn core is processed at Kamoa-Kakula’s on-site preparation laboratory and prepared samples then are shipped by secure courier to Bureau Veritas Minerals (BVM) Laboratories in Australia, an ISO17025-accredited facility. Copper assays are determined at BVM by mixed-acid digestion with ICP finish. Industry-standard certified reference materials and blanks are inserted into the sample stream prior to dispatch to BVM. For detailed information about assay methods and data verification measures used to support the scientific and technical information, please refer to the Kakula 2017 Resource Update, June 2017 technical report available on the SEDAR profile of Ivanhoe Mines at www.sedar.com or under technical reports on the Ivanhoe Mines website at www.ivanhoemines.com.
About Ivanhoe Mines
Ivanhoe Mines is advancing its three principal projects in Southern Africa: 1) Mine development at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South Africa’s Bushveld Complex; 2) mine development and exploration at the Tier One Kamoa-Kakula copper discovery on the Central African Copperbelt in the Democratic Republic of Congo; and 3) upgrading at the historic, high-grade Kipushi zinc-copper-silver-germanium mine, also on the DRC’s Copperbelt. For details, visit www.ivanhoemines.com.
