February 24, 2020
Ivanhoe Mines announces that more than 8 kilometres of
underground development has been completed at the high-grade
Kakula Mine, approximately 1.7 kilometres ahead of schedule
On pace for new monthly development record of more than
1.3 kilometres in February
Construction of the first phase, 3.8-million-tonne-per-annum,
copper processing plant at the Kakula Mine is rapidly advancing
and remains on track for initial production in Q3 2021
First loads of equipment for Kakula’s processing plant delivered
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 advance ahead of schedule and that more than eight kilometres of underground development now is completed, which is 1.7 kilometres ahead of plan. This month, the mining team is on pace to set a new monthly development record of 1,310 metres of advancement ─ 380 metres ahead of plan for the month.
The underground development work at Kakula is being performed by mining crews operating large-capacity, semi-autonomous mining equipment, such as jumbo drilling rigs and 50-tonne trucks.
Mine access drives 1 and 2 − interconnected, parallel tunnels being developed from Kakula’s main northern declines that will provide access to Kakula’s high-grade ore zones − continue to make excellent progress. The two south perimeter drives – being developed from Kakula southern decline – also are progressing ahead of schedule and have each been advanced more than 250 metres from the bottom of the decline.
The development ore is being transported to surface and stored on pre-production stockpiles, which are expected to grow to approximately 1.5 million tonnes of high-grade ore and an additional 700,000 tonnes of material grading approximately 1% to 3% copper prior to the start of initial production in Q3 2021.
Based on the results of the February 2019 Kakula pre-feasibility study, Kakula’s average feed grade over the first five years of operations is projected to be 6.8% copper, and 5.5% copper on average over a 25-year mine life.
In parallel with the construction of Kamoa-Kakula’s phase 1 Kakula Mine, work is progressing on the independent Kakula definitive feasibility study (DFS) and an updated Integrated Development Plan for the entire Kamoa-Kakula mining complex, which is expected to be issued in mid-2020. The Kakula DFS will provide an increased level of accuracy for the project economics for the initial phase of mine development at Kakula. 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.
Wide-angle, aerial view of Kakula’s main declines (centre), ore stockpiles (right), Kakula workshops under construction (left) and the first phase of accommodations for 1,000 employees and contractors (upper centre).
A few of the new housing units constructed at the Kakula Village, part of the first phase of accommodations for 1,000 employees and contractors.
Mine engineers at the underground ore transfer station at the Kakula Mine, which is expected to be fully operational in April.
High-volume ducts delivering fresh air to Kakula’s underground workings through the 5.5-metre diameter Vent Shaft #1, allowing for an increase in the number of mine development crews.
Frans Van Tonder, Supervisor (left), with Hope Kabambi, Operator (right), at Kakula’s state-of-the-art operations control room.
Construction progress on the processing plant and other surface infrastructure remains on track for initial production in Q3 2021
Kakula’s original 3.0 million-tonne-per-annum (Mtpa) first processing plant module has already been redesigned during the basic engineering phase to a nameplate capacity of 3.8 Mtpa. Purchase orders have been placed for all major long-lead time mechanical equipment, plant earthworks is complete, and plant civil works are advancing rapidly. The contract for the SMPP (structural, mechanical, piping and platework) supply and erection portion of the plant construction has been awarded and steel fabrication is underway. The capital cost estimate related to the construction of the mining infrastructure (underground and surface), processing plant and surface infrastructure has been estimated to a basic engineering level of accuracy and is being used as the control budget estimate for the project.
The first oversized loads of equipment for Kakula’s initial 3.8 Mtpa processing plant module being transported from Kolwezi to Kamoa-Kakula on the newly constructed road. The equipment, which has been delivered to site, is two low-entrainment flotation cells (Jameson cells) that will be used as cleaner cells to produce a final copper concentrate, before thickening and filtration. This is the first of at least 25 oversizedloads of equipment that are scheduled to be delivered to Kamoa-Kakula in the coming months.
The current updated estimate of the project’s initial capital costs is approximately US$1.3 billion as of January 1, 2019, which assumes commissioning of the first processing plant module in Q3 2021 and includes expanded plant capacity and pre-production ore stockpiles.
Other engineering and construction activities underway at Kamoa-Kakula include the refurbishment of six turbines at the Mwadingusha hydro-electric power plant and associated 220-kilovolt infrastructure to supply the mine with clean hydro-power, finishing construction of a permanent road between the mine site and the Kolwezi airport, construction of the first phase of accommodations for 1,000 employees and contractors, and other surface infrastructure.
More than 4,400 employees and contractors currently are helping to construct the new Kakula Mine, of which approximately 90% are Congolese nationals.
“We’re not just investing in a new mine, roads, hydro-power plants, power lines and other important infrastructure, we’re investing in good-paying jobs and new opportunities for people who live in the DRC. And with our focus on skills training and apprenticeships for young Congolese, we’re helping build the DRC’s next generation of skilled tradespeople,” said Mark Farren, Chief Executive Officer, Kamoa Copper SA.
Excellent progress is being made on the high-volume conveyor system that will transport broken ore from underground to the surface processing plant. The conveyor system is expected to be fully operational in April 2020.
Approximately 90% of Kamoa-Kakula employees and contractors are Congolese nationals. A training program is in place to increase the number of local employees in management positions.
As part of Kamoa-Kakula’s extensive training program, apprentice miners learn to operate Kakula’s fully-automated double-boom jumbo drills on a computerized simulator in the Project’s new training centre.
The Original News Link is https://ivanhoemines.com/news/2020/ivanhoe-mines-announces-that-more-than-8-kilometres-of-underground-development-has-been-completed-at-the-high-grade-kakula-mine/