Name and Location
Kamoa copper project, Katanga, Democratic Republic of Congo (DRC).

Client
Ivanhoe Mines holds its 95% interest in the project through an indirect subsidiary company, Kamoa Copper. A 5%, nondilutable interest in Kamoa Copper was transferred to the DRC government on September 11, 2012, for no consideration, pursuant to the DRC Mining Code. Ivanhoe also has offered to sell an additional 15% interest to the DRC on commercial terms to be negotiated.

Project Description
The Kamoa project is a very large, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, about 25 km west of the town of Kolwezi and about 270 km west of the provincial capital of Lubumbashi.

As of January 2013, Ivanhoe Mines had discovered indicated mineral resources of 739-million tonnes grading 2.67% copper, containing 43.5-billion pounds of copper, and inferred mineral resources of 227-million tonnes grading 1.96% copper, containing 9.8-billion pounds of copper. A 1% copper cut-off grade and a minimum vertical mining thickness of 3 m were applied in each classification.

Key elements have been established for a new study to encourage the cost-effective development of a mine and processing plant at the Kamoa copper discovery.

Ivanplats is proposing two principal phases of development:
• The first phase will target production of high-grade copper mineralisation from shallow, underground resources to yield a high-value concentrate. Initial mill feed will come from Kansoko Sud and will lead into the Centrale area of Kamoa’s gently-dipping mineralised zones, which collectively contain estimated indicated resources of 224-million tonnes, grading 3.85% copper at a 3% copper cutoff and a minimum 3 m vertical mining thickness.
• Phase 2 entails a major expansion of the mine and mill, as well as the construction of a large smelter, supported by the full extent of the Kamoa resources.

Value
Not stated.

Duration
If confirmed by current studies and financial modelling, copper production from Kamoa’s first phase of development could start in 2017, subject to available financing.

Latest Developments
Consistent with the phased approach to project development outlined in the 2013 updated Kamoa preliminary economic assessment (PEA), the Kamoa development studies are progressing on the basis of an initial three-million-tonne-a-year mine and concentrator. The mine plan produced in the PEA focused initial mining in the shallower portion of Kansoko Sud, an area previously drilled with holes spaced 400 m apart.

Since completion of the PEA, Ivanhoe has focused on substantially reducing the drill spacing in this area, initially to 100 m spacing on 200-m-spaced, east–west lines and subsequently to a 100-m-spaced grid. The goal of the drilling programme has been to confirm grade and structural continuity of this high-grade zone at potentially elevated cut-offs. Results to date have been encouraging and have confirmed the continuity of the deposit and its copper grades. The close-spaced drilling, combined with a better understanding of geological controls, will allow resource models to be constrained at higher-grade cut-offs than the 1% total copper used to define the mineralised zone in the current estimate.

The three-million-tonne-a-year mine and concentrator can be split into modules to potentially better match the underground ramp-up and further reduce the preproduction development capital. This will be examined in more detail as part of the development studies to provide flexibility to the development of the project.

Meanwhile, construction of the boxcut for the initial decline portals, being performed by Lubumbashi-based Mining Company Katanga, is progressing well.

Work on the boxcut began in July 2014 and is expected to take about five months. Thereafter development of the first set of twin declines will begin. The declines have been designed to intersect the high-grade copper mineralisation in Kansoko Sud area, about 150 m below surface. A recently reported drill hole in Kansoko Sud intercepted 15.7 m (true width) of 7.04% copper, at a 1.5% total copper cut-off.

Key Contracts and Suppliers
Hatch (development study), Mining Company Katanga (construction of boxcut).

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.