JOHANNESBURG (miningweekly.com) – TSX-listed Ivanhoe Mines expects a new mineral resource estimate for the entire Kakula discovery, in the Democratic Republic of Congo (DRC), by the end of the year, based on the current delineated strike extent of least 12 km, the company said in a statement on Thursday.
The new evaluation will expand the May 2017 estimate and include an initial resource estimate for the Kakula West discovery and the saddle area between the existing Kakula mineral resource area and the Kakula West discovery.
The Africa-focused megaproject developer reported that its comprehensive drilling programme at the Kamoa-Kakula copper project continued during the third quarter ended September 30. Ten rigs are currently focused on expanding and upgrading copper resources at the Kakula discovery, while four rigs are testing other targets on the 400 m2 Kamoa-Kakula mining licence.
In May, a mineral resource estimate for the then-defined 7.7 km strike length of the Kakula discovery contained indicated mineral resources of 116-million tonnes at 6.09% copper, plus inferred resources of 12-million tonnes at 4.45% copper, at a 3% cutoff.
Underground development at Kamoa’s Kansoko mine, comprising service and conveyor declines, was completed in September.
The high-grade Kansoko Sud copper mineralisation was reached and about 13 500 t of development ore was stockpiled at surface. Various development options for Kansoko are being assessed in conjunction with the ongoing mine development activities at Kakula.
In October, the surface box cut at the Kakula discovery was completed. Development of twin underground declines will begin in November.
“In light of the successful step-out drilling at Kakula West, as well as the potential to find additional resources in high-priority targets located in the untested parts of the Kamoa-Kakula project area, the Kamoa-Kakula development plans will be reassessed and amended as the project moves forward. Phased mine development options totalling up to 18-million tonnes a year are being assessed.”
A prefeasibility study (PFS) for a six-million-tonne-a-year, Phase 1 mine at Kakula is also currently being undertaken.
Given the ultrahigh-grade copper mineralisation at Kakula, Ivanhoe’s initial development focus at Kamoa-Kakula is on fast-tracking advancement of Kakula.
PLATREEF
In November, Ivanhoe announced that the sinking of Limpopo-based Platreef’s Shaft One had reached a depth of more than 500 m below surface. Development of the first of four planned shaft stations – the 450-metre-level substation – had been completed.
Shaft One is expected to reach the top of the Flatreef mineralised zone, at a depth of 783 m, in the third quarter of 2018. Sinking of the shaft will continue to a planned final depth of 980 m.
Early-works surface construction for Platreef’s Shaft Two began last May, with initial curtain grouting around the box cut.
Further work includes the excavation of a surface box cut to a depth of about 29 m and construction of the concrete hitch for the 103-metre-tall concrete headgear (headframe) that will house the shaft’s permanent hoisting facilities and support the shaft collar. The early-works construction is expected to be completed in the fourth quarter of next year.
“Ivanhoe is focused on advancing the Platreef project along its critical path. The continued development of Shafts 1 and 2 will provide access to the Flatreef deposit and help to ensure that the project is able to meet the scheduled, first-phase start-up of the underground mine and concentrator by 2022,” the company said.
The Platreef mine is projected to be Africa’s lowest-cost producer of platinum-group metals, with a cash cost of $351/oz of 3PE+Au, net of by-products, including sustaining capital cost. There is good potential for relatively quick and capital-efficient expansion to six- and eight-million tonnes a year, and beyond, using start-up infrastructure.
KIPUSHI
Ivanhoe is currently preparing a PFS for the redevelopment of the Kipushi zinc/copper/germanium/lead/silver mine, in the DRC.
The comprehensive new study is expected to be issued before the end of this year. It will update and refine Ivanhoe’s May 2016 preliminary economic assessment of Kipushi’s proposed redevelopment.
Continuing strategic discussions concerning Ivanhoe Mines and its projects are ongoing, with several significant mining companies and investors across Asia, Europe, Africa and elsewhere.
Several investors that have expressed interest have no material limit on the provision of capital. There can be no assurance that the company will pursue any transaction or that a transaction, if pursued, will be completed.