Ivanhoe Mines announces completion of Platreef's Production Shaft 1 at the tier-one palladium, rhodium, nickel, platinum, copper and gold project in South Africa
May 9, 2022
Ivanhoe Mines announces completion of Platreef's Production Shaft 1
at the tier-one palladium, rhodium, nickel, platinum, copper and gold
project in South Africa
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Platreef Phase 1 production on schedule for Q3 2024
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First blast on Platreef’s 950-metre level completed on April 22, lateral
mine development toward Flatreef orebody commences
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Ivanplats takes delivery of first battery-electric mining fleet, planning of
Platreef’s initial solar power plant well underway
CAPE TOWN, SOUTH AFRICA – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) Executive Co-
Chair Robert Friedland and President, Marna Cloete, announced today at the African
Mining Indaba Conference, the completion of the Shaft 1 production changeover at the
company’s tier-one Platreef palladium, rhodium, nickel, platinum, copper and gold
project in South Africa.
Shaft 1 will serve as Platreef's initial production shaft and is approximately 450 metres
away from the first high-grade area of the Flatreef orebody scheduled to be mined during
Phase 1 production. On April 22, 2022, Ivanplats celebrated the first blast at Platreef’s
950-metre level, marking the commencement of lateral mine development, with first
production anticipated in the third quarter of 2024.
Underground mine development will use battery-electric M2C drill rigs and 14-tonne load
haul dumpers being manufactured by Epiroc, a leading mining equipment manufacturer,
at its facilities in Örebro, Sweden. The partnership with Epiroc for emissions-free mining
equipment is an important first step toward reducing the carbon footprint of the mine,
with learnings to be applied across all of Ivanhoe Mines’ operations.
Watch a May video highlighting mine development activites at Platreef:
https://vimeo.com/707495611/caee06c0d1
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On April 22, 2022, Ivanplats celebrated the first blast on Platreef’s 950-metre level,
marking the commencement of lateral mine development toward the high-grade
Flatreef ore body.
“The completion of changeover is another noteworthy milestone in the growth of Ivanhoe
Mines into a major, diversified miner; one with top ESG credentials and an industry-
leading portfolio of tier-one assets,” said Ms. Cloete. “Given our string of successes at
Kamoa-Kakula, Platreef, Kipushi, and Western Foreland, it is a great time to be part of the
exceptional Ivanhoe team, and continue our track record of delivering world-scale
projects on schedule and on budget. I’m extremely proud of how we all work together to
keep things on the right track.”
“Platreef is very scalable. The Phase 1 mine is only the beginning of a multi-stage, multi-
generational mining complex underpinned by an enormous, high-grade resource and
vast exploration upside. Future expansions to 12 million tonnes of ore per annum and
beyond, as demonstrated in previous studies, would position Platreef among the world’s
largest and lowest-cost nickel and PGM mines: producing more than 24,000 tonnes of
nickel and 1.1 million ounces of palladium, rhodium, platinum and gold per year. We
expect Platreef to join Kamoa-Kakula in our portfolio as a long-life, leading producer of
critical metals that provides outstanding returns for our shareholders and local
communities.”
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"Platreef is well on track for historic first PGM and base metal production by the third
quarter of 2024," Mr. Friedland said. "Since acquiring the Macalacaskop and Turfspruit
prospecting permits in 1998, Ivanplats has successfully advanced Platreef to where it is
today – the world's greatest precious metals deposit under development, with a peerless
endowment of palladium, rhodium, platinum, and gold; as well as highly significant
quantities of strategic 'electric' metals such as nickel and copper. We are counting down
to production less than 30 months from now, and this achievement will only mark our
first milestone. We plan to expand this tier-one operation into one of the largest and
lowest-cost, integrated PGM operations on the planet … all while creating a world-scale,
long-life economic driver for South Africa, and generating outstanding returns on capital
for a major, disruptive mine.
"Platreef will align with our goal of 're-inventing mining' and leverage the most
sustainable technologies available … as evidenced by our commitment to zero-emission,
battery-powered equipment, green solar power, and the adoption of the safest possible
tailings method utilizing dry-stack technology, which has the added benefit of minimizing
water consumption. We will build on our achievements at the Kamoa-Kakula Copper
Complex in the Democratic Republic of Congo, and leverage the valuable experiences
from its industry leading phased development model, to build South Africa's next great
PGM complex.
Finally, let us also not forget ... Platreef still has vast potential to significantly expand an
already enormous resource base … as well as a plethora of new nickel-sulphide
exploration opportunities, many of which are near surface.”
Platreef’s Shaft 1 headframe on the left and Shaft 2 construction, raising the
headframe from the hitch to the collar, on the right.
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Shaft 1 changeover enables underground mining to commence; first blast
on Platreef’s 950-metre level complete on April 22
Three development stations on Shaft 1 have been completed on the 750-, 850-, and 950-
metre levels. Underground development now is focused on completing the mine’s first
ventilation raise, as well as the ore and waste-rock passes connecting the 750-metre level
to the 950-metre level.
With the completion of the first blast on Platreef’s 950-metre level on April 22, 2022,
Ivanplats has started lateral mine development towards the high-grade Flatreef orebody,
which is approximately 450 metres from the 950-metre-level station.
The thick Flatreef orebody is flat lying, which is ideal for safe, bulk-scale, mechanized
mining optimized for maximum ore extraction. Flatreef is characterized by its high-grade
mineralization and a palladium-to-platinum ratio of approximately 1:1, which is
considerably higher than other PGMs discoveries on the Northern Limb of the Bushveld.
Newly designed rock chutes on surface will connect the conveyors feeding the
concentrator plant and the waste-rock area. The waste rock will be crushed and used as
cemented backfill underground for maximum ore extraction, as well as for protection
berms to contain storm water and to reduce noise emissions.
The Ivanplats team preparing for the first blast on Platreef’s 950-metre level.
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Installation of the conveyor belt for the waste-rock conveyor system leading from
Shaft 1.
Detailed engineering studies are well underway on Platreef’s initial 700,000-tonnes-per-
annum (700-ktpa) mine and concentrator.
Earthworks for the first concentrator plant are planned to begin in the second quarter of
2022, followed by civil works and the ordering of long-lead-time items in the second half
of 2022. First ore feed to the concentrator is planned for the third quarter of 2024.
Phase 1 average annual production is estimated at 113,000 ounces (oz.) of platinum,
palladium, rhodium and gold (3PE+Au), plus five million pounds of nickel and three
million pounds of copper.
Early-works surface construction for Shaft 2, including the excavation of a surface box-
cut to a depth of approximately 29 metres below surface and construction of the concrete
hitch for the 103-metre-tall concrete headframe, has been completed. The Shaft 2
headframe construction, from the hitch to the collar level, is progressing well. Ten civil
lifts are to be constructed in total, including a ventilation plenum and personnel access
tunnel, with targeted completion in May 2022.
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Shaft 2 headframe construction, from the hitch to the collar level, which is
progressing well.
Ivanplats takes delivery of initial battery-electric vehicles, construction of
first solar power plant now underway
Ivanplats initial order with Epiroc of Stockholm, Sweden, for its primary mining fleet
includes emissions-free, battery-electric jumbo face drill rigs, 14-tonne battery
scooptrams, battery-electric bolting rigs and 42-tonne battery dump trucks. Ivanplats has
received Platreef’s first battery powered underground equipment; a ST14 scooptram and
a Manitou MHTX 790 telehandler, which have successfully been slung down to the 950-
metre level.
Construction of Platreef’s initial solar-power plant is scheduled to commence in August
2022, with commissioning expected in 2023. The solar-generated power from the initial
plant will be used for mine development and construction activities, as well as for
charging Platreef’s battery-powered underground mining fleet.
“Ivanhoe Mines is committed to being an ESG leader and the implementation of electric
vehicles and solar-generated power at Platreef aligns with our goals of limiting emissions
and environmental impacts,” commented Executive Vice President, Technical Services,
Pierre Joubert. “We plan to continue to assess and implement leading-edge renewable
technologies across our world-scale mineral portfolio.”
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Ivanplats’ first Epiroc ST14 battery Scooptram removing blasted rock from the
initial access drive on the 950-metre level.
2022 Feasibility Study envisions Platreef becoming one of the world's
largest and lowest-cost PGM producers
Platreef’s Phase 2, 5.2-million-tonnes-per-annum steady state production rate would rank
it as the world’s fifth largest primary platinum-group metals mine on a palladium
equivalent basis, with annual forecast production of more than 590,000 ounces of
palladium, platinum, rhodium and gold, plus more than 40 million pounds of nickel and
copper.
The Platreef 2022 Feasibility Study reflects the initial two phases of development for the
Platreef Mine. Previous studies have demonstrated the resource base for future
expansions up to 12 million tonnes per annum.
Through phased development, Platreef is projected to become one of the world’s largest
and lowest-cost producers of palladium, rhodium, nickel, platinum, copper and gold. The
2022 Feasibility Study considers Phase 1 and Phase 2 development, including only one
third of Platreef’s Indicated Resources above an US$80/tonne Net Smelter Return (NSR)
cut-off.
As development and stoping of the project progresses, additional drilling from
underground will be undertaken with the goal of increasing the confidence of the current
mineral resources, as well as to expand the resource base.
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Riggers Paul Matjekane and Innocent Nchabeleng preparing Platreef's first
battery-electric ST14 Scooptram Loader for delivery to the 950-metre level.
Platreef’s thick mineralization, which will be mined with highly productive mechanized
methods, combined with higher nickel and copper grades, contribute to lower cash costs
compared to other primary platinum-group-metal producers. Among global primary
platinum-group-metals producers, Platreef’s estimated net total cash cost of US$514 per
3PE+Au ounce, net of copper and nickel by-product credits and including sustaining
capital costs, ranks at the bottom of the cash-cost curve.
Platreef’s Indicated Mineral Resources contain an estimated 18.9 million ounces of
palladium, 18.7 million ounces of platinum, 3.1 million ounces of gold, and 1.2 million
ounces of rhodium (a combined 41.9 million ounces PGMs plus gold), plus 2.4 billion
pounds of nickel and 1.2 billion pounds of copper, at a 2.0 g/t 3PE+Au cut-off.
Platreef’s Inferred Mineral Resources contain an additional 23.8 million ounces of
palladium, 23.2 million ounces of platinum, 4.3 million ounces of gold, and 1.6 million
ounces of rhodium (a combined 52.8 million ounces PGMs plus gold), plus 3.4 billion
pounds of nickel and 1.78 billion pounds of copper, also at a 2.0 g/t 3PE+Au cut-off.