Taking into account significant increases in the prices of palladium, rhodium, gold and nickel over the last three years, TSX-listed Ivanhoe Mines has decided to publish an updated definitive feasibility study (DFS) for the Platreef project, along with a preliminary economic assessment, later this year.
Assumed commodity prices in the initial DFS were $1 600/oz for platinum, $815/oz for palladium, $1 300/oz for gold, $1 500/oz for rhodium, $3/lb for copper and $8.90/lb for nickel.
The current prices for the metals contained in the Platreef mineral resource are about $910/oz for platinum, $2 160/oz for palladium, $1 867/oz for gold, $8 900/oz for rhodium, $2.96/lb for copper and $5.96/lb for nickel.
The assessment will detail the phased development production plan for the project, which the company is still contemplating.
Meanwhile, Ivanhoe, through its South African subsidiary Ivanplats, has completed the construction of a 996 m level station at the bottom of the Platreef project’s Shaft 1 – well ahead of schedule.
Shaft 1 now is positioned to be equipped as Platreef’s initial production shaft, if Ivanhoe chooses to proceed with phased development to expedite production at the tier-one palladium/platinum/nickel/copper/rhodium/gold project on the northern limb of South Africa’s Bushveld Complex.
“Given the flurry of recent transactions in precious metals markets, we are actively exploring a number of options that can help us unlock Platreef's extraordinary value for the benefit of all Ivanhoe stakeholders.
"After all, Platreef is among this planet’s largest precious metals deposits,” says Ivanhoe co-chairperson Robert Friedland.
Platreef now has a completed shaft within a few hundred metres of the initial high-grade mining zone. The project has a mining licence, water infrastructure and a team of highly skilled employees.
Platreef’s current inferred mineral resources are 506-million tonnes at a grade of 1.42 g/t platinum, 1.46 g/t palladium, 0.10 g/t rhodium, 0.26 g/t gold, 0.31% nickel and 0.16% copper.
Platreef’s current inferred mineral resources contain 43-million ounces of palladium, 40.4-million ounces of platinum, 7.8-million ounces of gold, 3.1-million ounces of rhodium, 7.7-billion pounds of nickel and 4.1-billion pounds of copper.