Name and Location
Platreef platinum group metals, copper, nickel and gold project, Limpopo, South Africa.



Client
Ivanhoe Mines.

Project Description
The Platreef project involves the construction of a mechanised underground mine to access the underground Flatreef discovery at Ivanhoe’s Platreef project, on the northern limb of the Bushveld Igneous Complex, in Mokopane, Limpopo. The company is sinking a bulk-sample shaft to obtain mineralised bulk samples for further studies.

The Flatreef mineral resource, with a strike length of 6 km, predominantly lies within a flat to gently-dipping portion of the Platreef mineralised belt at relatively shallow depths of about 700 m to 1 100 m below surface.

As of March 2013, Flatreef's National Instrument 43-101-compliant, indicated mineral resources were 214-million tonnes, grading 4.1 g/t platinum, palladium, gold and rhodium (4PE), 0.34% nickel and 0.17% copper at a 2.0 g/t 4PE cutoff grade, containing an estimated 28.5-million ounces of 4PE, 1.61-billion pounds of nickel and 794-million pounds of copper.


Shaft 1, with an internal diameter of 7.25 m, will initially extend to about 800 m below the surface and facilitate the collection of a mineralised bulk sample in the latter half of 2015 to complete the company’s development assessment of the Flatreef deposit. This will further assist the mine planning work and complement the understanding of the deposit. This understanding has been developed since 2002 using the results of 1 134 exploration drill holes.

About 250 contract employees will work on the shaft once the sinking work begins.



Value
Shaft 1 is expected to cost an estimated $80-million and will be fully funded by a Japanese consortium's 10% interest in the Platreef project, acquired in two tranches in 2011 for a total investment of $290-million.

Duration
Ivanhoe received approval in September 2013 from the Department of Mineral Resources (DMR) to proceed with the bulk-sample shaft. Terrace and shaft-collar designs have been completed and issued for construction. Contractor mobilisation and site preparation works started in November 2013.


Latest Developments
Ivanhoe Mines has completed a positive preliminary economic assessment (PEA) of the Platreef project.

The PEA recommends a phased approach to the development of a large, mechanised, underground mine.

Ivanhoe's plan for the project entails three phases of potential development for an underground mine and the concentrator processing facility:
• Phase 1 – a four-million-tonne-a-year mine and concentrator.
• Phase 2 – an eight-million-tonne-a-year mine and concentrator (base case).
• Phase 3 – a 12-million-tonne-a-year mine and concentrator.

The base case for the Platreef PEA analysis is the eight-million-tonne-a-year mine and concentrator production scenario.
The base-case is targeting of 785 000 oz/y of 4PE production, at an estimated preproduction capital requirement of about $1.7-billion, including $381-million in contingencies.
The development phases will be implemented depending on market demand, smelting and refining capacity and capital availability. It could even consider an expansion beyond the third phase, subject to further study.

Key Contracts and Suppliers
Aveng Mining (primary sinking contractor) and DRA Mineral Projects, in consultation with Stantec, SRK, Geotail, Golder Associates and Digby Wells (PFS).

On Budget and on Time?
The Platreef project is on target for initial underground development in 2018 and concentrator startup in the fourth quarter of 2019.



Contact Details for Project Information
Ivanhoe Mines VP communications & public affairs, Jeremy Michaels, tel +27 11 088 4300 or email jeremy.michaels@ivanplats.com.
Ivanhoe Mines, VP and project director, Gerick Mouton, tel +27 11 088 4300 or email gerickm@ivanplats.com.