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Drill results confirm copper resource at Ivanhoe’s DRC play

23rd May 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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A recent exploration and drilling programme at Ivanhoe Mines’ Kamoa copper property, in the Democratic Republic of Congo (DRC), has confirmed the 2012 indicated resource estimate of 739-million tonnes, grading 2.67% copper, containing 43.5-billion pounds of the metal.

While the existing resource had traditionally been cited at a 1% cutoff, recent drilling showed that grade continuity exists at a 1.5% cutoff, which should enable selective mining of higher-grade areas in early years and, thus, improve the economics.

Infill drilling continued, which would be fed into an upcoming prefeasibility study.

Analysts at Griffiths McBurney (GMP) Secu-rities described the results as “useful”, as high-grade continuity could materially improve the early years’ grade and the project’s eco- nomics.

GMP Securities mining analyst Brock Salier said, while the infill results were of “little materiality”, the fact that the higher- grade zones had good continuity was a “useful addition”.

“This means that once the bankable feasibility study, including detailed mine plan, is completed, the potential exists for Ivanhoe to selectively mine the higher-grade ore in the early years, depending on the mining method.

“The impact to economics is less clear though, given that the existing 2013 preliminary economic assessment already incorporates a life-of-mine headgrade of 3% copper – but perhaps this can be improved on,” he commented.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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