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