JOHANNESBURG (miningweekly.com) – TSX-listed Ivanhoe Mines expects to finalise the prefeasibility study (PFS) for its Kamoa copper project, in the Democratic Republic of Congo (DRC), in early 2016, aligning with the project’s first phase of development, as outlined in a 2013 preliminary economic assessment (PEA).

Phase 1 would see the construction of an underground operation producing three-million tons of copper a year and feeding an adjacent concentrator.

Metallurgical testwork had indicated that copper recoveries averaging 86% and concentrate grades averaging 39% copper were achievable.

Meanwhile, Ivanhoe noted in a statement on Tuesday, that initial shaft-sinking activities at Shaft 1 of the platinum, palladium, nickel, copper, gold and rhodium Platreef project, in South Africa’s North West province, had started on October 26, following successful construction of the shaft collar and ventilation plenum.

Shaft 1 would have an internal diameter of 7.25 m and was projected to intersect the Flatreef deposit at a depth of 777 m below surface in late 2017, and reach a final depth of 975 m in 2018.

Selected mining areas in the current Platreef mine plan occurred at depths ranging from about 700 m to 1 200 m below surface.

Meanwhile, in early August, Ivanhoe Mines began work on a feasibility study that would cover the first phase of mine development at the Platreef project.

“The study will build on the findings of the PFS completed in January, which considered the construction of an underground mine, an initial four-million-ton-a-year concentrator and associated infrastructure to support initial concentrate production by 2019,” it said

The PFS estimated a planned initial, average production rate of 433 000 oz/y of platinum, palladium, rhodium and gold, as well as 19-million pounds of nickel and 12-million pounds of copper a year, at an estimated cost of $322/oz.

“There will be opportunities to refine and modify the timing and capacities of subsequent phases of production to suit market conditions during the development and commissioning of the first phase,” Ivanhoe noted.

The company also expected to start Shaft 2 early work, including civil work for the boxcut and hitch foundation, in 2016.

Shaft 2 would have an internal diameter of 10 m and would be capable of hoisting six-million tonnes a year. Murray & Roberts Cementation was contracted to undertake the design and engineering of the shaft.

Designs for the boxcut had been completed and the contract for the early engineering works for the winding equipment had been awarded to FLSmidth.

At the Kipushi zinc-copper project, in the DRC, 2 708 m in six drill holes were completed in the third quarter, taking the metres of drilling executed since the start of the programme in March 2014 to 24 035 m.

Ivanhoe was working to finalise an updated mineral resource estimate for the project that would incorporate all of the drill results received to date.

The independent estimate was expected to be completed and issued during the fourth quarter, after which a PEA would be undertaken based on the updated resource estimate.

Turning to the financial performance of the company in the third quarter under review, Ivanhoe posted a total comprehensive loss of $12.9-million for the period, with the $25.7-million year-on-year retraction attributed to the gain from a subsidiary held for partial sale of $8-million.

Exploration and project expenditures for the three months were $14.8-million less than for the same period in the prior year.

With the focus also on development at the Platreef project, $8-million of the total $8.6-million exploration and project expenditure related to Kipushi, where the drilling programme and upgrading of the underground and surface infrastructure continued.

Expenditure at the Kipushi project decreased by $5.1-million compared with the same period in the prior year.