In addition, Ivanhoe is pleased to provide an update on the restart of Kipushi, with both surface construction activities and underground development tracking ahead of schedule for first production, expected in the second quarter of 2024.
The signing of the new joint venture agreement heralds the beginning of a new era of production for the
Gecamines' Chairman, Guy-Robert Lukama Nkunzi, commented: 'The relaunch of the Kipushi mine is a source of pride for all of Gecamines' employees, the local communities of Kipushi town, the
'Thanks to this agreement, Gecamines will immediately increase its stake in KICO to 38%, then to 43% in 2027, strengthening its position in the joint venture. More importantly, Gecamines working alongside its world-class partner, will unlock the substantial potential of this unique, ultra-high-grade zinc deposit, with notable quantities of germanium, copper and other metals critical for global growth.
'The successful development of Kipushi will create prosperity on many levels. We will be creating local employment and developing the local economy, and we will also structurally strengthen Gecamines and the
'We would like to commend the dedicated Kipushi team, our joint-venture partner Gecamines, and the hardworking Congolese people for their exceptional contributions towards restarting this historic mine. The project is advancing ahead of schedule, in line with our track record of operational excellence. Kipushi's restart follows the timely and cost-effective delivery of Phases 1 and 2 at the
Highlights of the joint-venture agreement between
As announced on
From
Throughout the exploitation of the Big Zinc, estimated at 12 years, Gecamines will have the option to purchase and locally process the concentrate produced by KICO.
Once a minimum of the current proven and probable reserves and up to 12 million tonnes have been mined and processed, an additional 37% of the share capital and voting rights in KICO shall be transferred from
A new supervisory board and executive committee, with appropriate shareholder representation, is in the process of being established.
New initiatives will be implemented focusing on the development of Congolese employees, including individual development, the identification of future leaders, succession planning and the promotion of gender equality across the workforce.
Dedicated Kipushi commercial border crossing to unlock direct export and import access to
The commercial border crossings at Kasumbalesa and Sakania, also in Haut-Katanga province, handle most of the DRC Copperbelt's imports and exports.
The appointment of the road-building contractor, by the Haut-Katanga province, has also been made. The contractor will construct the 13-kilometre sealed, bypass road around the town of Kipushi that will connect the existing N37 main road to the Kipushi site. Mobilization of the construction contractor is expected to commence imminently.
Concurrently, work is underway by the Zambian government to upgrade roads for commercial traffic on the Zambian side of the border, connecting the T5 highway to the new commercial Kipushi border. Upgrades have commenced on some sections of road, with further infrastructure upgrades and all-weather proofing planned over the coming year.
A new commercial DRC-Zambia border crossing at Kipushi will not only benefit the
Off-take and financing discussions to be concluded this quarter
Following the
Negotiations are advancing with numerous parties, including facilities of
New Kipushi concentrator is 79% complete and ahead of schedule for first production in Q2 2024
The new 800,000-tonne-per-annum concentrator includes dense media separation, milling and a flotation circuit, and is expected to produce more than 250,000 tonnes of zinc per annum over the first five years of production. Design recoveries are targeted at 96%, with a concentrate grade averaging 55% contained zinc. The project is 79% complete and is tracking ahead of schedule, with commissioning expected to take place in the second quarter.
Detailed engineering, procurement and fabrication activities are now all complete, and ahead of schedule. All major equipment has also been delivered to site, including the ball mill fabricated by
Underground development ahead of schedule, with over 4,500 metres of lateral and decline development completed since
In line with the 2022 Kipushi Feasibility Study, mining will focus on the zinc-rich Big Zinc and Southern Zinc zones, with an estimated 11.8 million tonnes of Measured and Indicated Mineral Resources grading 35.3% zinc. Kipushi's exceptional zinc grade is more than twice that of the world's next-highest-grade zinc project, according to
In the first quarter of 2023, the underground mining contractor was appointed, and the subsequent phased on-site mobilization of mining crews and equipment was completed during the fourth quarter. The primary mining fleet is supplied by
The underground mining operation is fully mechanized, highly efficient and designed to enable a quick ramp-up to steady state. The underground mining team consists of four mining crews. Each mining crew is made up of five miners per shift and equipped with a primary fleet consisting of an
Stoping of ultra-high-grade Big Zinc orebody started ahead of schedule
The mining method of the Big Zinc orebody is transverse sublevel open stoping, with high-grade ore extracted from the stopes in a primary and secondary sequence. The void of the mined-out stopes will be filled with cemented aggregate to maximize the extraction of the ultra-high-grade ore.
The height of each long-hole stope is approximately 60 metres, comprising an upper 30-metre-high stope and a lower 30-metre-high stope. Stopes will be separated by a 15-metre-high sill pillar. The long-hole stopes will be mined with a bottom-up mining sequence, with the lower stope extracted first followed by the upper stope.
Underground development is taking place concurrently on multiple access levels around the Big Zinc orebody. Perimeter and access drives are under development on the 1,335-metre and 1,365-metre levels, concurrently with the profiling of the stope drill and extraction drives into the Big Zinc orebody. In addition, stope extraction drives (used for accessing and extracting blasted ore from the stopes) and stope drill drives are being developed on the 1,260-metre, 1,290-metre and 1320-metre levels inside the Big Zinc orebody.
Stoping (mining) of Kipushi's ultra-high-grade Big Zinc orebody commenced in December. Stoping started on a trial-mining basis to complete the training of the underground mining crews in preparation for the commencement of commercial operations this quarter. Ore will be stockpiled on surface adjacent to the concentrator ahead of commissioning in the second quarter.
Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the
The Kipushi 2022 Feasibility Study dated
This technical report includes relevant information regarding the effective date and the assumptions, parameters and methods of the mineral resource estimates on the
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Forward-looking statements
Certain statements in this news release constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as 'may', 'would', 'could', 'will', 'intend', 'expect', 'believe', 'plan', 'anticipate', 'estimate', 'scheduled', 'forecast', 'predict' and other similar terminology, or state that certain actions, events, or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance and results and speak only as of the date of this news release.
Such statements include, without limitation: (i) statements that construction of the new concentrator and underground development at Kipushi is ahead of schedule for first production in Q2 2024; (ii) statements regarding Kipushi producing more than 250,000 tonnes of zinc annually over the first five years, and the concentrate grades and design recoveries for the project; (iii) statements that the new Kipushi commercial border crossing and bypass road will unlock value for Kipushi and Kamoa-Kakula, that mobilization of the construction contractor for the bypass road is expected to commence imminently and the particulars of the bypass road; (iv) statements regarding Phase 3 expansion at Kamoa-Kakula being ahead of schedule, with first production expected in Q3 2024; (v) statements regarding the terms and conditions of the joint venture agreement with Gecamines; (vii) statements regarding expected infrastructure upgrades and weatherproofing to the roads on the Zambian side of the border; (viii) statements regarding the new commercial DRC-Zambia border crossing at Kipushi providing socio-economic benefits to the community of Kipushi and the city of Lubumbashi, the capital of Haut-Katanga province; (ix) statements regarding sources of alternative financing and offtake options, if commercially viable, to further finance the remaining initial capital for the
Also, all of the results of the Kipushi 2022 Feasibility Study constitute forward-looking statements or information and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the
Furthermore, concerning this specific forward-looking information concerning the operation and development of the
This news release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Estimates of Mineral Reserves provide more certainty but still involve similar subjective judgments. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the company's project, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that ultimately may prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in zinc, copper, silver or other mineral prices; (ii) results of drilling; (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans after the date of any estimates and/or changes in mine plans; (vi) the possible failure to receive required permits, approvals and licences and (vii) changes in law or regulation.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed above and under the 'Risk Factors' section in the company's MD&A for the three and nine months ended
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the 'Risk Factors' section in the company's MD&A for the three and nine months ended
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