MOVERS & Shakers areas of exploration potential within the Kakula exploration area . Using the results from the eight holes drilled in the 19-square-kilometre Kakula Discovery area , Ivanhoe has de ned an exploration target of between 580 million and 870 million tonnes at grades ranging from 1.5 % to 2.3 % copper . Ivanhoe cautions that the potential quantity and grade of the Kakula Discovery target is conceptual in nature , and there has been insufficient exploration to delineate a mineral resource . It is uncertain if further exploration will result in the target being delineated as a mineral resource . Mineralization at Kakula appears to be consistent in nature with downward vertical zonation from chalcopyrite to bornite to chalcocite in every hole . Mineralization is consistently bottom loaded , with grades increasing downhole toward the contact between the host Grand Conglomerate and the underlying Mwashia sandstone . �e highest copper grades are associated with a siltstone / sandstone unit and the base of an overlying diamictite unit . �ese units overlie a less mineralized , thin , sandy clast-rich diamictite above the Mwashia sandstone contact .
Kamoa Copper Project description �e Kamoa Copper Project is a very large , stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt , approximately 25 kilometres west of the town of Kolwezi and ab out 2 7 0 k i l ometre s west of Lubumbashi . �e original Kamoa copper deposit was discovered by Ivanplats in 2008 , which subsequently adopted the Ivanhoe Mines name as part of a corporate restructuring in 2013 . In August 2012 , the DRC government granted mining licences to Ivanhoe Mines for the Kamoa Copper Project that cover a total of 400 square kilometres . �e licences are valid for 30 years and can be renewed at 15-year intervals . Mine development work at the Kamoa Copper Project began in July 2014 with construction of a box cut for the decline ramps that will provide underground access to the initial high-grade mining area in Kansoko Sud . In December 2012 , an independent Mineral Resource estimate was prepared by Amec
Foster Wheeler E & C Services of Reno , Nevada . Based on this estimate , the Kamoa copper deposit was ranked by Wood Mackenzie as Africa ' s largest high-grade copper discovery and the world ' s largest undeveloped high-grade copper discovery . As of January 2013 , Ivanhoe Mines had reported Indicated Mineral Resources at the Kamoa Copper Project totalling 739 million ton nes g r a d i ng 2 . 6 7 % c opp e r and containing 43.5 billion pounds of copper , plus Inferred Mineral Resources of 227 million tonnes grading 1.96 % copper and containing 9.8 billion pounds of copper . A 1 % copper cut-off grade and a minimum vertical mining thickness of three metres were applied in each classi cation . �e true thickness of the Kamoa copper mineralization within the currently de ned resources varies from 2.4 metres to 17.6 metres , at a 1 % copper cut-off . �e deposit is relatively at lying , dipping between 0 and 20 degrees . �e deposit dips generally west to east and at its deepest has been intersected at more than 1,500 metres below surface . H i g h - g r a d e b o r n i t e - c h a l c o c i t e mineralization remains open down-dip to the east and along strike to the south . Today , Ivanhoe Mines owns a 49.5 % share interest in Kamoa Holding Limited ( Kamoa Holding ), an Ivanhoe subsidiary that presently owns 95 % of the Kamoa Copper Project . Zijin Mining Group Co ., Ltd . owns a 49.5 % share interest in Kamoa Holding , which it acquired from Ivanhoe in December 2015 for an aggregate cash consideration of US $ 412 million . �e remaining 1 % interest in Kamoa Holding is held by privately-owned Crystal River Global Limited . A 5 %, non-dilutable interest in Kamoa Copper SA , the Ivanhoe Mines subsidiary that owns the Kamoa Project , was transferred to the DRC government on September 11 , 2012 , for no consideration , in accordance with to the DRC Mining Code . Ivanhoe also has offered to transfer an additional 15 % interest to the DRC government on terms to be negotiated . Constructive and cordial negotiations between Ivanhoe Mines , Zijin and senior DRC government officials have been continuing in this regard . �e 2013 Kamoa preliminary economic assessment ( PEA ), available at www . sedar . com , presented a two-phased approach to development of the Kamoa Copper Project ( https :// www . youtube . com / watch ? v = Tb3v8 OBHhs0 ). �e rst phase of mining will target high-grade copper mineralization from shallow , underground resources to produce approximately 100,000 tonnes of contained copper per year in a high-value concentrate . �e Kamoa PEA estimated that the pre-production capital required for the project ' s rst phase of development would be approximately US $ 1.4 billion . �e proposed second phase will entail a major expansion of the mine and mill , and construction of a smelter to produce approximately 300,000 tonnes of blister copper each year . �e Kamoa pre-feasibility study is progressing and the completed report is expected to be nalized in early 2016 . �e updated Independent Technical Report based on the pre-feasibility study also will include revised exploration target information .
Quali ed Person and Quality Control and Assurance �e scienti c and technical information in this release has been reviewed and approved by Stephen Torr , P . Geo ., Ivanhoe Mines ' Vice President , Project Geology and Evaluation ; a Quali ed Person under the terms of National Instrument 43-101 . Mr . Torr has veri ed the technical data disclosed in this news release . Ivanhoe Mines maintains a comprehensive chain of custody and QA-QC program on assays from its Kamoa Project . Half-sawn core is processed at its on site preparation laboratory in Kamoa , prepared samples then are shipped by secure courier to Bureau Veritas Minerals ( BVM ) Laboratories in Australia , an ISO17025 accredited facility . Copper assays are determined at BVM by mixed-acid digestion with ICP nish . Industry-standard certi ed reference materials and blanks are inserted into the sample stream prior to dispatch to BVM . For detailed information about assay methods and data veri cation measures used to support the scienti c and technical information , please refer to the current technical report on the Kamoa Copper Project on the SEDAR pro le of Ivanhoe Mines at www . sedar . com .
FMDZ | May - June 2016 | Page33