Modern Mining February 2016

MINING News

Kipushi mineral resource estimate exceeds expectations

Ivanhoe Mines, listed on the TSX, has announced the receipt of a new, inde- pendent, mineral resource estimate for its historic, high-grade, Kipushi zinc-copper- germanium-lead-silver mine in the DRC. Kipushi is a joint venture between Ivanhoe Mines and Gécamines, the state-owned mining company. Highlights of this initial estimate, prepared by the MSA Group, include measured and indicated (M&I) mineral resources in the Big Zinc Zone of 10,2 Mt at grades of 34,89 % zinc, 0,65 % copper, 19 g/t silver and 51 g/t germanium, at a 7 % zinc cut-off, containing an estimated 7,8 billion pounds of zinc. The zinc grade of Kipushi’s M&I mineral resources in the Big Zinc Zone 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 mineral resources total an additional 1,9 Mt at grades of 28,24 % zinc, 1,18 % copper, 10 g/t sil- ver and 53 g/t germanium. The inferred resources are contained partially in the Big Zinc Zone and partially in the Southern Zinc Zone. Kipushi’s copper-rich M&I mineral

resources contained in the adjacent Fault Zone, Fault Zone Splay and Série Récurrente Zone total an additional 1,63 Mt at grades of 4,01 % copper, 2,87 % zinc and 22 g/t silver, at a 1,5 % copper cut-off, containing 144 million pounds of copper. Copper-rich inferred resources in these zones total an additional 1,64 Mt at grades of 3,30 % copper, 6,97 % zinc and 19 g/t silver. “This independent estimate of Kipushi’s mineral resources has exceeded our expec- tations. We are convinced that significant additional mineral resources can be delin- eated at Kipushi,” comments Robert Friedland, Executive Chairman of Ivanhoe. “With a current resource now estab- lished, we are evaluating technical and infrastructure options to best advance the project. The exceptionally high grades that consistently are being discovered at Kipushi are unique in the international mining industry and provide further con- firmation that this project has the potential to benefit the people of the Democratic Republic of Congo for decades to come when it returns to production.” The Kipushi mine is on the Central African Copperbelt in the DRC’s southern Haut-Katanga province, one of Africa’s major mining hubs. Themine, which began

operations in 1924, is located approxi- mately 30 km south-west of the provincial capital, Lubumbashi, and less than 1 km from the DRC-Zambia border. Friedland noted that since Ivanhoe assumed responsibility at Kipushi, sig- nificant progress has been made in rehabilitating the surface and under- ground infrastructure. The dewatering programme, implemented by Ivanhoe in late 2011, has been successful and the water levels are now being maintained below Kipushi’s main pumping station on the 1 210-m level. Three new, high-capacity Grifo pumps have been purchased and will be installed at the main pumping station alongside the five existing high-capacity Sulzer pumps that are being refurbished. The expected cost of the upgrade and refurbishment of the main pumping sta- tion is expected to be approximately US$3,8 million. The new Grifo pumps are expected to be commissioned in the third quarter of this year and, in conjunction with the refurbished Sulzer pumps, will provide suf- ficient pumping capacity to keep the entire mine dewatered with a 100 % pumping redundancy. Originally named the Prince Léopold mine, Kipushi is one of Katanga’s

most famous mines. Approximately 60 Mt grading 11 % zinc and 7 % copper were mined between 1924 and 1993, producing a total of 6,6 Mt of zinc and 4,0 Mt of copper. The mine also produced 12 673 tonnes of lead and approximately 278 tonnes of germanium between 1956 and 1978. The lower levels of the mine flooded in early 2011 due to a lack of pumping maintenance over an extended period. Ivanhoe Mines (formerly Ivanplats) acquired a 68 % interest in Kipushi in November 2011 and has assumed responsibility for ongoing redevelop- ment, dewatering and drilling. 

Two of three new high-volume Grifo pumps to be installed at the main pumping station 1 210 m below surface (photo: Ivanhoe).

12  MODERN MINING  February 2016