Kakula Copper Mine underground development far ahead of schedule and surface processing plant advancing rapidly with 4,700-strong workforce Definitive Feasibility Study for the Kakula Mine, and an updated Integrated Development Plan for multiple expansions of the entire
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August 6, 2020
Kakula Copper Mine underground development far ahead of schedule and surface processing plant advancing rapidly with 4,700-strong workforce
Definitive Feasibility Study for the Kakula Mine, and an updated Integrated Development Plan for multiple expansions of the entire Kamoa-Kakula mining licence, nearing completion
Surface stockpiles now contain an estimated 116,000 tonnes of ore grading 6.08% copper, plus 446,000 tonnes grading 2.73% copper, including satellite stockpiles at Kakula South and Kansoko
Kamoa-Kakula moves to level 2 of its COVID-19 safety measures, in line with lifting of restrictions by the DRC government
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX:IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced today that underground development at the Kakula Copper Mine continues to exceed expectations with more than 18.7 kilometres now complete, which is 5.5 kilometres ahead of schedule. In July, the mining team achieved 1,638 metres of underground development – 257 metres ahead of plan for the month.
The majority of the development headings at the Kakula Mine currently are traversing medium-grade sections of the orebody, with average grades ranging between 3% and 5% copper. Several development headings are in higher-grade zones averaging between 5% and 8% copper, and this ore is being placed on a dedicated, high-grade surface stockpile at Kakula North that currently totals approximately 116,000 tonnes grading an estimated 6.08% copper. The lower-grade surface stockpiles at Kakula North, Kakula South and Kansoko together contain an additional 446,000 tonnes grading an estimated 2.73% copper.
As Kakula’s underground development progresses over the next few months, the majority of the working areas are expected to transition into the higher-grade ore zones near the centre of the deposit that have copper grades approximately 5% to 8%.
The high-capacity ore conveyor system at the Kakula North declines, which has a capacity of 2,000 tonnes per hour, is undergoing final commissioning and is expected to begin continuous operations shortly. Once this happens, the ore mined in the northern portion of the Kakula Mine will be combined and be placed on a blended surface stockpile. The Kakula South and Kansoko declines are not equipped with conveyor systems; as such, the ore mined from these deposits will continue to be placed on separate surface stockpiles, based on copper grades.
First copper production at Kakula approximately one year away
Initial production at the Kakula Mine is scheduled for Q3 2021. Kakula is projected to be the world’s highest-grade major copper mine with an initial mining rate of 3.8 million tonnes per annum (Mtpa) at an estimated average feed grade in excess of 6% copper over the first five years of operation.
The Kakula Mine will have one of the most favourable environmental footprints of any tier-one copper mine. It will be powered by clean, renewable hydroelectricity and be among the world's lowest greenhouse gas emitters per unit of copper produced. It also will have a relatively tiny surface footprint as approximately 55% of the mine’s tailings will be pumped back into underground workings.
The Kamoa-Kakula Project is unique as it combines ultra-high copper grades in thick, shallow and relatively flat-lying deposits – allowing for large-scale, highly-productive, mechanized underground mining operations.
More than 300 truckloads, consisting mainly of structural steel and equipment for Kakula’s initial 3.8-million-tonne-per-annum processing plant, are expected to arrive at the mine site before the end of August. Fabrication of the plant’s largest components – two ball mills, each measuring 9.75 metres (32 feet) long and 6.1 metres (20 feet) in diameter – has been completed at CITIC Heavy Industries’ factory in Luoyang, China, and the third and final shipment of ball mill components is expected to be on-site by the end of September.
“The construction team at Kakula, led by Mark Farren, Kamoa Copper’s CEO, has done a fantastic job of keeping the project moving ahead at a rapid pace despite the logistical challenges posed by COVID-19,” said Mr. Friedland. “With each passing month, we are getting increasingly confident that we could be producing copper at Kakula ahead of schedule.”
“We're in a good place at the moment, with the vast majority of the major equipment needed to build the mine and processing plant already fabricated, and either at site, or
| en route to site. Full credit goes to our entire team for | implementing and adhering to |
| early and extraordinary measures to safeguard our workforce and mitigate the impact of | |
| COVID-19 on the mine development and construction operations,” Mr. Friedland added. |
The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government (20%).
Mark Farren, Kamoa Copper’s Chief Executive Officer (left), and Rochelle De Villiers (right), Kamoa Copper’s Co-Chief Financial Officer, with one of the mine’s new Sandvik 63-tonne haul trucks. Mr. Farren and Mr. De Villiers are key members of the mine’s on-site management team driving the project towards completion.
Several of the recently arrived truck loads of equipment for the Kakula Mine. An additional 300 truck loads are scheduled to arrive by the end of August.
Aerial view of the Kakula Mine showing the tonnes and grade of the main pre- production stockpiles. The high-grade stockpile currently contains approximately 116,000 tonnes grading 6.08% copper, and the medium-grade stockpile currently contains approximately 325,000 tonnes grading 2.94% copper.
As underground development progresses at the Kakula and Kansoko mines over the next few months, the grade of the project’s three medium-grade stockpiles is forecast to increase to between 3% - 5% copper.
Kakula southern decline and medium grade ore stockpile currently containing approximately 75,000 tonnes grading 2.18% copper.
Kansoko decline and medium-grade ore stockpile currently containing approximately 46,000 tonnes grading 2.17% copper.
Kakula Mine development progressing towards zone of +8% copper in centre of deposit
Underground development of the Kakula Mine, the first of multiple near-surface copper deposits that are planned to be put into production on the 400-square-kilometre Kamoa- Kakula mining licence, is well ahead of schedule. Mine access drives 1 and 2 (interconnected, parallel tunnels that will provide access to ore zones) continue to advance towards the southern portion of the orebody.
Development also is well advanced on the eastern perimeter drives and the room-and- pillar mining area. Development from the southern portal has reached south access drives 1 and 2, with mining crews working to establish the connection of these drives with mine access drives 1 and 2 from the north side of the orebody. The northern and southern access drives are expected to be joined in Q4 2020.
Once the northern and southern access drives are connected, the majority of mining activities will focus on the initial drift-and-fill mining blocks in the centre of the Kakula deposit, where the average grade is higher than 8% copper. Drift-and-fill stoping is a highly-efficient form of underground mechanized mining and will allow the operation to recover significantly more tonnes from the orebody.
Underground mining also is taking place at the Kansoko Mine, located at the Kamoa deposit, approximately 10 kilometres north of the Kakula Mine. More than 220 metres of advancement was achieved at Kansoko during July by a young Congolese mining crew undergoing training. A second mining crew will be added at Kansoko in August 2020 as the project increases the pace of training new Congolese miners.
The construction of Kakula’s second permanent underground water-handling system is progressing well and commissioning is expected this month. The new system will add 800 litres per second of underground pumping capacity, bringing the total installed capacity to 1,400 litres per second. As mine development progresses, additional underground water dams are planned for the northern and southern perimeter drifts.
The independent Kakula definitive feasibility study (DFS) and an updated Integrated Development Plan for the entire Kamoa-Kakula mining complex is expected to be finalized shortly. The Integrated Development Plan will include details on the planned expansion phases for the greater Kamoa-Kakula mining complex, incorporating updates for mineral resources, production rates and economic analysis.
Basic engineering design and costing for Kamoa-Kakula’s planned Phase 2 expansion, taking production from 3.8 Mtpa to 7.6 Mtpa, also is complete. The scope of facilities for Phase 2 includes underground expansion at the Kakula Mine to reach an annual production rate of 6 Mtpa, the expansion of mining operations at the Kansoko Mine to a steady state 1.6 Mtpa, a second 3.8-Mtpa concentrator plant at Kakula, as well as associated surface infrastructure to support the expansion at the various sites.
Figure 1: The 13.3-kilometre-long Kakula Deposit showing the first five years of planned underground development and production (in the black box at the eastern end of the deposit) focused on the pink area containing average copper grades greater than 8% copper.
More detail of current underground development progress and planned development to the end of September 2020 and to the end of December 2020, is shown in figures 2, 3 & 4.
Kakula North Decline
Kakula South Decline
Figure 2: Underground development completed to the end of July (in black) and scheduled development (green, brown, blue & black) until September 30, 2020. Shown are the 3%, 5% and 8% copper contours and the location where the northern and southern access drives are scheduled to join in Q4 2020 (red star).
+5% copper
+8% copper
+3% copper
Figure 3: Underground development completed to the end of July (in black) and scheduled mine development over the three months ending December 31, 2020. Majority of the development during this period will be in the initial drift-and-fill mining area within Kakula’s high-grade zone (+8% copper).
+5% copper
+8% copper
+3% copper
Figure 4: The eastern portion of Kakula Mine ─ representing less than half of the overall 13.3-kilometre-long Kakula Deposit ─ overlain on southern Manhattan Island to give a sense of the enormous scale of the underground operations.
Geologist Kally Mbumba showing ultra-high-grade, chalcocite-rich ore at Kakula Mine. Chalcocite has the greatest percentage of copper of all the common sulphide-copper-bearing minerals ─ almost 80% copper by weight.
Development ore is loaded into a haul truck from one of Kakula’s two northern access drives. The northern access drives currently are mining ore averaging +5% copper, and soon will be entering the +8% copper zone near the centre of the Kakula deposit.
Blaster Polydor Numbi loading explosives into drilled blast holes at the face of one of Kakula’s 6-metres-high by 6-metres-wide access drives.
Construction on the processing plant and other surface infrastructure remains on track for initial production in Q3 2021
Construction of Kamoa’s 3.8-million Mtpa concentrator plant is progressing well, with more than 16,000 cubic metres of concrete being poured to date. Concrete bases for the ball mills, flotation plant and the concentrate thickener have been partially handed over to the mechanical contractor to commence installation work, and steel erection is currently underway in the flotation and thickener areas. Approximately 3,600 tonnes of structural steel had been shipped by the end of July.
Beijing-based CITIC Construction has been awarded the construction contract for Kakula’s phase 1 backfill paste plant. The backfill plant will be used to blend tailings from the processing plant with cement to produce paste backfill. The backfill will be pumped back into the mine and used to help support mined-out areas. Approximately 55% of the mine’s tailings will be sent back underground, significantly reducing the surface tailings storage.
The Electrical & Instrumentation contract was recently awarded to T3 Construction, a leading South African construction company. This is the final major construction contract required for Kakula’s processing and backfill plants.
Construction of the tailings dam has commenced and is progressing well. The aim is to complete most of the earthworks before the rainy season starts in November.
Ongoing construction of Kakula’s initial 3.8 Mtpa processing plant.