Name and Location
Kipushi mine rehabilitation and redevelopment project, Katanya, Democratic Republic of Congo.

Client
Kipushi Corporation, in which Ivanplats acquired a 68% share in 2011.

Project Description
In the Kipushi mine’s 70 years of operation, 60-million tonnes of materials were extracted at a grade of 6.78% copper and 11.03% zinc. In addition, 400 000 t of lead, 45 000 t of cadmium and 120 t of germanium were extracted through the existing processing plant.

Ivanplats is dewatering the Kipushi mine to access the original workings, known as the Fault Ore. An additional deposit has been identified at a level below the original workings.

Value
The value of the project is still to be determined.

Duration
The timeframe for the project is still to be determined.

Latest Developments
Work began in early March 2014 on the planned underground diamond-drilling programme at the Kipushi project, a major advance made possible by the ongoing dewatering programme directed by Ivanhoe during the past three years following its acquisition in November 2011.

The mine, which had been placed on care and maintenance in 1993, flooded in early 2011, owing to a lack of pump maintenance over an extended period. Water reached 851 m below surface at its peak. A major milestone was reached in December 2013 when Ivanhoe restored access to the mine's principal haulage level at 1 150 m below surface.

Since then, crews have been upgrading underground and surface infrastructure to support the drilling programme. Recent improvements have included the fabrication of an air deflector for ventilation Shaft 4 to reduce noise impact, tie-in of the water piping from shafts P1Ter and P15 to the 1 112-m-level dam, and the start of the removal of corroded ventilation columns from Shaft 5.

Water levels are stabilised below the 1 150-m-level haul way and the 1 272-m-level hanging wall drift, enabling access for drilling, with two rigs targeting the Série Récurrente and Big Zinc mineralisation.

Meanwhile, Ivanhoe's Kipushi underground drilling programme, designed to confirm and update Kipushi's estimated historical resources and to further expand the resources along strike and at depth, has completed more than 10 000 m of drilling by the end of the third quarter.

A total of 5 148 m, in 37 drill holes, was completed in the same quarter. Drilling initially focused on the Série Récurrente zone, with 2 361 m drilled in 21 holes. The focus of drilling subsequently switched to the Big Zinc as the 1 272-m-level drill drift was dewatered and rehabilitated, with 2 787 m completed in 16 holes.

Série Récurrente exploration continued to test areas to the east and below the historical measured and indicated resources. A final drill section was completed from the 1 251-m-level and three additional sections were completed from a drill station on the 1 261 m level. Two holes tested the Nord Riche area, where the Série Récurrente intersects the fault zone.

Ivanhoe released additional drill results from the Kipushi project on September 5, 2014. The majority of the drill results were from drilling in the Série Récurrente.

Key Contracts and Suppliers
MDM (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ivanplats investor relations, Bill Trenaman, tel +1 604 688 6630 or email billtr@ivancorp.net.
MDM, tel +27 11 993 4300.
MSA Group, tel +27 11 880 4209, fax +27 11 880 2184 or email info@msagroupservices.com.