Ivanhoe Mines announces an outstanding pre-feasibility study for the rebirth of the historic Kipushi zinc-copper-silver-germanium mine in the Democratic Republic of Congo
- Redevelopment plan to bring Kipushi’s Big Zinc Zone into production in less than two years, with life-of-mine average annual production rate of 225,000 tonnes of zinc and cash costs of US$0.48/lb of zinc
- Big Zinc Zone has estimated 10.2 million tonnes of Measured and Indicated Mineral Resources grading 34.9% zinc
- Successful restoration of production to establish Kipushi as the world’s highest-grade major zinc mine
- After-tax NPV of US$683 million and 35% IRR, based on long-term zinc price of US$1.10/lb, with pre-production capital of US$337 million
- Kipushi has after-tax NPV of US$1.2 billion and IRR of 51% at current zinc price of approximately US$1.40/lb
- Memorandum of understanding signed with leading mining contractor Byrnecut
- Memorandum of understanding to rebuild railway spur line signed with DRC national railway to facilitate exports of concentrate
KIPUSHI, Democratic Republic of Congo, Dec. 13, 2017 (GLOBE NEWSWIRE) -- Robert Friedland, Executive Chairman of Ivanhoe Mines (TSX:IVN) (OTCQX:IVPAF), and Lars-Eric Johansson, Chief Executive Officer, today announced the positive findings of an independent, pre-feasibility study (PFS) for the planned redevelopment of the company’s historic, high-grade, Kipushi zinc-copper-silver-germanium mine.
The study anticipates annual production of an average of 381,000 tonnes of zinc concentrate over an 11-year initial mine life at a total cash cost of approximately US$0.48 per pound of zinc.
The PFS focuses on the initial mining of Kipushi’s Big Zinc Zone, which has an estimated 10.2 million tonnes of Measured and Indicated Mineral Resources grading 34.9% zinc. The planned return to production would establish Kipushi as the world’s highest-grade major zinc mine. Its exceptional zinc grade is more than twice as high as the Measured and Indicated Mineral Resources of the world’s next-highest-grade zinc project, according to Wood Mackenzie, a leading, international industry research and consulting group.