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



Client
Ivanhoe Mines.

Project Description
The Platreef project involves the development and construction of a highly mechanised underground mine to access the underground Flatreef discovery at Ivanhoe’s Platreef project, on the northern limb of the Bushveld Igneous Complex, near Mokopane, in Limpopo. The company is sinking a bulk-sample shaft to obtain mineralised bulk samples for further studies. Ivanhoe has started the sinking of Shaft No 1 to obtain a mineralised bulk sample to complete the development assessment of the Flatreef.

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.

A preliminary economic assessment (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 785 000 oz/y of platinum, palladium, rhodium and gold production.

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.

Value
The base case scenario is targeting an estimated preproduction capital requirement of about $1.7-billion, including $381-million in contingencies.

Duration
Phase 1 to establish an operating platform to support the start of production at a nominal plant capacity of four-million tonnes a year is expected by 2020. Phase 2, which includes a ramp-up to a plant capacity of eight-million tonnes a year, is expected by 2024 and Phase 3, to a steady-state plant capacity of 12-million tonnes a year, is expected by 2028.

Latest Developments
Surface construction work for Shaft No 1 was suspended on May 26, 2014, and will resume once the mining right, which was approved in May this year, has been executed. To complete Ivanhoe's development assessment of the Flatreef, a concrete-lined, 7.25-m-diameter shaft is planned to be sunk 800 m below surface to enable the collection of a mineralised bulk sample, expected in the second half of 2016. Shaft-sinking contractor Aveng Mining is responsible for the excavation of the boxcut access for the shaft collar and vent plenum. Off-site upgrading of stage and hoisting equipment to be installed in the shaft headframe is continuing.

Shaft No 1, including some initial lateral, underground development work, is expected to be fully funded from dedicated funds remaining in Ivanhoe’s treasury from the $280-million received in 2011 for the sale of an 8% interest in the Platreef project to an Itochu-led Japanese consortium.

Ivanhoe awarded the contract for the design and engineering of Shaft No 2, the main production shaft, to Murray & Roberts Cementation in June 2014. This will enable the company to start Shaft No 2 development works in the first quarter of 2015, subject to necessary approvals and funding.

Completion of a prefeasibility study (PFS), which is currently focused on the Phase 1, four-million-tonne-a-year production case, is targeted for the second half of 2014. Studies will continue on the Phase 2, eight-million-tonne-a-year base case and the Phase 3, 12-million-tonne-a-year production scenarios.

Metallurgical testwork is under way at the Mintek laboratory, in Johannesburg. The main focuses of the current phase of work are the improvement of concentrate quality and simplification of the flow sheet.

Key Contracts and Suppliers
Aveng Mining (primary sinking contractor); DRA, in consultation with Stantec, SRK, Geo Tail, Golder Associates and Digby Wells (PFS); Murray & Roberts Cementation (design and engineering of Shaft No 2) and Mintek (metallurgical testwork).

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.
Aveng Mining, tel +27 11 821 1800.
DRA, tel  +27 11 202 8600 or email info@DRAglobal.com.
SRK, tel +27 11 441 1111, fax +27 11 880 8086 or email johannesburg@srk.co.za.
Geo Tail, tel +27 12 348 1051, fax +27 86 686 9023 or email ejc@geotail.co.za
Golder Associates, Elize Herselman, tel +27 21 912 1060, fax +27 86 582 1561 or email eherselman@golder.co.za
Digby Wells, tel +27 11 789 9495, fax +27 11 789 9498 or email info@digbywells.co.za.
Murray & Roberts Cementation, tel +27 11 201 5000, fax +27 11 201 5500 or email info.cementation@murrob.com
Mintek, tel +27 11 709 4111 or fax +27 11 793 2413.