AMN - DRC – Ivanhoe boosts Kipushi resources

An independently prepared estimate has resulted in a significant increase in measured and indicated mineral resources at Ivanhoe Mines’ high-grade, Kipushi zinc-copper-silver-germanium mine in the DRC.

The new resource estimate is the first update to be issued for Kipushi since Ivanhoe Mines published its initial, independent NI 43-101 estimate in January 2016.

Kipushi now contains 11.8 million tonnes at 35.34% zinc, containing 9.2 billion pounds of zinc, 8.7 million ounces of silver and 24.4 million ounces of germanium.

In addition, copper-rich measured and indicated resources increased to 2.3 million tonnes at 4.03% copper, containing 204 million pounds of copper, 1.6 million ounces silver and 1.4 million ounces germanium

The new estimate prepared by the MSA Group, of Johannesburg, South Africa, has increased Kipushi’s measured and indicated zinc-rich resources by 16%, with an increase in zinc grade from 34.89% to 35.34%.

The grade is more than twice as high as the world’s next-highest-grade zinc project, independently ranked by Wood Mackenzie, an international industry research and consulting group, based on contained zinc.

Zinc-rich inferred resources total an additional 1.14 million tonnes at grades of 33.77% zinc, 1.24% copper, 12 g/t silver and 62 g/t germanium.

In addition, the measured and indicated copper-rich resources have increased by 40%, with a slight increase in copper grade from 4.01% to 4.03%. Copper-rich inferred resources total an additional 440,000 tonnes at grades of 3.89% copper, 10.77% zinc, 19 g/t silver and 55 g/t germanium.

The new resource estimate incorporates Ivanhoe’s second phase of underground drilling at Kipushi that was completed late last year, with a total of 9,706 metres drilled in 58 holes.

Eight holes were drilled for metallurgy, 31 holes in the Southern Zinc and Big Zinc, five holes in the Nord Riche and 14 holes in the Série Récurrente.

The 2017 drilling program demonstrated that zinc and copper mineralization of the Kipushi system remain open laterally and at depth.

The updated resource will be used in the preparation of the Kipushi definitive feasibility study (DFS), which is expected to be finalised later this year or early in 2019.

The DFS will update and refine the findings of the preliminary feasibility study (PFS) issued last December. Similar to the PFS, the DFS will focus on the initial mining of Kipushi’s Big Zinc Zone.

Ivanhoe’s executive chairman Robert Friedland said the new resource estimate was very positive for mine planning purposes, adding another 1.6 million tonnes of measured and indicated zinc-rich resources and, at the same time, improving the overall zinc grade of the resources.

“We have always believed that Kipushi held the potential to host significantly more high-grade zinc, copper, silver and germanium resources than were initially reported in the mineral inventory when we acquired our 68% interest in the mine in 2011.

“Kipushi operated for more than 60 years as a high-grade copper mine, with significant germanium production, before it was placed on care-and-maintenance in the 1990s. With continued exploration success, we are confident Kipushi could remain in production for at least several more decades.

“While our initial mine plan focuses on mining Kipushi’s exceptionally high-grade Big Zinc deposit, the adjacent Fault Splay and Southern Zinc zones are compelling, near-term development targets as they have thick, zinc-rich mineralisation zones grading up to 45% zinc. In addition, the copper-rich zones offer further opportunities to expand and diversify the mine plan once production recommences,” he said.

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