KOLWEZI, Democratic Republic of Congo, Nov. 28, 2017 (GLOBE NEWSWIRE) -- Ivanhoe Mines (TSX:IVN) (OTCQX:IVPAF) Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric Johansson today welcomed the positive findings of an expanded, independent preliminary economic assessment (PEA) for the development of the Kakula Discovery at the Kamoa-Kakula Project on the Central African Copperbelt, in the Democratic Republic of Congo (DRC).
Given the dramatic expansion and upgrading of the copper resources delineated at Kamoa-Kakula during the past year, the new PEA incorporates potential increased mining rates that are 50% higher than the rates used in the December 2016 PEA.
The Kamoa‑Kakula Project – a joint venture between Ivanhoe Mines, Zijin Mining Group and the DRC government – has been independently ranked as the world’s largest high-grade, major copper discovery by international mining consultant Wood Mackenzie.
The three potential development scenarios examined include:
- Initial mine development scenario. The Kakula 2017 PEA evaluates the development of a six million-tonne-per-annum (Mtpa) underground mine and surface processing complex at the Kakula Deposit – a discovery announced in early 2016 – as the project’s first phase of development.
- Expanded, two-mine development scenario. The Kakula 2017 PEA also includes an option for an integrated, 12 Mtpa, two-stage development, beginning with initial production from the Kakula Mine, to be followed by a subsequent, separate underground mining operation at the nearby Kansoko Mine, along with the construction of a smelter.
- Kamoa 2017 pre-feasibility study (PFS). The Kamoa 2017 PFS evaluates the development of the Kansoko Mine as a stand-alone six Mtpa underground mine and surface processing complex that would be supplied with ore from the planned development of the Kansoko Sud and Kansoko Centrale areas of the Kamoa Deposit, which were discovered in 2008. The PFS refines the findings of the Kamoa March 2016 PFS, which envisaged a production rate of three Mtpa.
The Kakula 2017 PEA and Kamoa 2017 PFS were independently prepared by OreWin Pty. Ltd., Amec Foster Wheeler E&C Services Inc., SRK Consulting Inc., Stantec Consulting LLC, Golder Associates Ltd., KGHM Cuprum R&D Centre Ltd. and DRA Global.
The Kakula 2017 PEA is preliminary in nature and includes an economic analysis that is based, in part, on Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically for the application of economic considerations that would allow them to be categorized as Mineral Reserves – and there is no certainty that the results will be realized. Mineral Resources do not have demonstrated economic viability and are not Mineral Reserves.
A NI 43-101 technical report will be filed on SEDAR at www.sedar.com and on the Ivanhoe Mines website at www.ivanhoemines.com within 45 days of the issuance of this news release.
While not evaluated in the new PEA, Ivanhoe and Zijin also are exploring potential options to accelerate future production by building the Kakula and Kansoko mines concurrently as well as expansions to 18 Mtpa and beyond as exploration progresses at Kamoa-Kakula and on Ivanhoe’s 100%-owned exploration licences in the Western Forelands area to the west of Kamoa-Kakula, where drilling recently started.
“Kamoa-Kakula is, without a shadow of a doubt, the most disruptive Tier One copper project in the world today,” said Mr. Friedland.
“The 12 million-tonne-per-annum development scenario clearly shows the economic potential for a phased development plan for Kamoa-Kakula to become one of the largest copper mines in existence. However, we are confident that there are more high-grade copper discoveries to be made in the area and the ultimate scale of operations at Kamoa-Kakula will be much larger.
“The exceptionally high copper grades, thickness and continuity of the Kakula Discovery really distinguish this project from anything we have seen during our 35-plus years in the industry. These unique characteristics should allow us to build a world-scale copper mine with an initial capital cost expected to be far lower than other operations of this size.”
Mr. Friedland noted that today’s PEA announcement does not factor in the Kakula West Discovery, which is continuing to be expanded at a remarkable rate. The current study also does not factor in the ongoing drilling programs on new targets at Kamoa-Kakula or the company’s 100%-owned Western Forelands exploration area. Additional exploration success could have a significant influence on the size, value and timing of the overall development plan; as such, the Kamoa-Kakula development plans will be reassessed and amended as the project moves forward to reflect ongoing exploration results.
“We remain focused on unlocking the full potential of the Kamoa-Kakula copper district while expediting the development of the initial Kakula Mine.
“The world’s current top copper mines are aging and their head grades are declining. Given the projected surge in demand for copper from the electric-vehicle revolution and renewable energy technologies, Kamoa-Kakula will be of significant strategic importance for auto makers and clean-energy companies looking to secure a long-term, reliable supply of high-quality copper,” Mr. Friedland added.
Mr. Johansson said that implementation of community-support initiatives are central to mine-planning considerations. “We will be working with our partners Zijin Mining and the DRC government in developing Kamoa-Kakula into the world’s next great copper mine, generating widely shared economic benefits that will help to uplift local communities, and providing skills training to help ensure that area residents can qualify for the thousands of meaningful direct and indirect jobs that will be created.
“It is highly unusual by industry standards that, despite being in the early exploration and engineering phases of a project, Ivanhoe and Zijin are proud to be leading by example and have invested heavily in community development initiatives. Our joint efforts include the “KNOW FOR SURE” anti-malaria campaign utilizing revolutionary technology developed by Fio Corporation of Toronto, Canada. Other initiatives include fish and chicken farming, agricultural projects, and the construction of schools, roads and power infrastructure.
“Everyone at Ivanhoe Mines looks forward to showcasing our three mine development projects – Kamoa-Kakula, Kipushi and Platreef – to investors from around the world as the official site visit of the 2018 Mining Indaba conference that will be held in Cape Town, South Africa, in early February 2018. Those interested in attending our site visit should apply to our investor relations department as soon as possible.”
