Ivanhoe Mines commences exploration for sediment-hosted copper in Central Kazakhstan ■ Joint venture formed to explore Chu-Sarysu Basin, the world’s third-largest sedimentary copper basin ■ Licence package of up to 16,000 km2, the largest in the
February 12, 2025
Ivanhoe Mines commences exploration for sediment-hosted
copper in Central Kazakhstan
■
Joint venture formed to explore Chu-Sarysu Basin, the world’s
third-largest sedimentary copper basin
■
Licence package of up to 16,000 km2, the largest in the
Chu-Sarysu Copper Basin
■
Ivanhoe to leverage its decades of exploration expertise in
discovering Tier-One sediment-hosted copper deposits in the
Western Foreland shelf
ALMATY, KAZAKHSTAN – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) Executive Co-
Chairman Robert Friedland and President Marna Cloete announced today that an
Exploration Joint Venture has been formed to explore the Chu-Sarysu Copper Basin in
Kazakhstan, the world’s third-largest sediment-hosted copper district.
The Joint Venture, with UK-based private company Pallas Resources, covers a highly
prospective licence package of up to 16,000 km2, which spans an accumulated dataset
of Soviet-era exploration data. For comparison, the licence package is approximately
7.5 times the size of Ivanhoe’s Western Forelands Exploration Project.
Ivanhoe has committed to fund $18.7 million in exploration activities over an initial two
year period, with earn-in rights to further increase ownership up to 80% over time.
Exploration activities are underway, including the hiring of a dedicated exploration
team. An airborne geophysics contract is currently under tender and is expected to be
awarded imminently.
Ivanhoe Founder and Executive Co-Chairman Robert Friedland commented:
“You may be wondering why we are going to Kazakhstan? It is because Kazakhstan is a
major mining jurisdiction and host to the world’s third largest sedimentary copper
basin. The Ivanhoe Group has a long history in Kazakhstan …we love the country, we
love its people and we look forward to returning to this tremendous country to further
unlock the significant geological potential of the Chu-Sarysu Basin.
“We know how to find tier-one sedimentary copper deposits, and we know how to mine
them. The landmark development of the Kamoa-Kakula Copper Complex and the
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expanding discoveries of the Western Forelands, in the Democratic Republic of Congo,
are testament to this. We will be building on our successes over the past 28 years here,
where we have discovered over 50 million tonnes of copper… and counting.
“Ivanhoe’s strategic partnership marks an exceptional opportunity to utilize our
exploration expertise in one of the world’s most prospective sedimentary copper
basins. With over 16,000 km² of license applications in the Chu-Sarysu Basin—the
largest land-holding position in the region—we are poised to become one of the most
significant global copper exploration stories.
“With a legacy of accomplishments in emerging mineral jurisdictions, including
Kazakhstan, Ivanhoe takes pride in applying its expertise to generate lasting value for
our shareholders and the communities in which we operate. Our commitment extends
beyond discovering vital copper resources, focusing on sustainable development and
creating long-lasting economic opportunities in Kazakhstan.
"This partnership marks an excellent addition to our growing copper exploration
portfolio to further accompany the rapidly advancing Western Forelands licenses
adjacent to Kamoa-Kakula. Western Forelands underpins the next stage of our
aggressive copper production growth story, and we expect to update the market on
these exciting exploration efforts in the Democratic Republic of Congo shortly."
Kazakhstan’s Chu-Sarysu Basin is the world’s third-largest sedimentary
copper basin, after the prolific Central African Copperbelt
The Chu-Sarysu is the world’s third-largest sediment-hosted copper basin, after the
Central African Copperbelt and European Kupferschiefer, hosting 27 million tonnes of
known copper.
It includes major deposits such as the 100-year-old Zhezkazgan complex, which
contains over 22 million tonnes of copper. The vast complex produces approximately
200,000 tonnes of copper per annum, along with significant silver by-products, from one
open pit mine and 6 underground mines.
The United States Geological Survey (USGS) estimates that there remains
approximately 25 million tonnes of undiscovered copper in the Chu-Sarysu Basin,
highlighting its untapped potential. In addition, the basin includes occurrences of lead,
zinc, silver, barium and strontium. Despite its significant prospectivity, greenfield
exploration has been largely neglected across the entire region for over 40 years.
The Joint Venture intends to leverage Ivanhoe Mines’ decades of exploration success in
discovering over 50 million tonnes of sediment-hosted copper deposits in the Western
Foreland shelf of the Democratic Republic of Congo, including the Kamoa, Kakula,
Makoko and Kitoko discoveries.
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The world’s richest sediment-hosted copper districts, with the Chu-Sarysu basin
ranked as the third-largest worldwide.
Ivanhoe searches for the next major copper discovery over a 16,000-km2
licence package, 7.5 times the size of the Western Forelands
Ivanhoe has acquired an initial 20% equity interest in the joint venture licence package
and commits to $18.7 million in exploration expenditure over the next two years.
Licence applications were made in Q4 2024, totalling approximately 16,000 km2.
Ivanhoe’s joint venture partner, UK-based Pallas Resources, has accumulated and
digitized a large dataset of Soviet-era exploration data spanning the licence package.
Initial analysis of the digitized historic dataset has highlighted a number of potential
targets, which will be investigated further following the completion of an airborne
geophysics program later this year.
After the initial two-year period, Ivanhoe has the right to earn a majority interest by
spending up to $115 million, based on retaining the entire licence package, over the
subsequent four years. This additional exploration expenditure is at Ivanhoe’s
discretion on a licence-by-licence basis and it has the right to adjust the program
accordingly, subject to exploration success and prospectivity.
In the event of a major new copper discovery, Ivanhoe can earn up to an 80% equity
interest by funding and completing a pre-feasibility study.
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Map of Kazakhstan's major copper producing regions and major copper
operations. According to USGS, the Chu-Sarysu Basin, contains approximately
25 million tonnes of undiscovered sediment-hosted copper.
Kazakhstan is a low-cost, mining-friendly jurisdiction that is underexplored
Kazakhstan has a rich history in mining. The Central Asian country currently ranks as
the world’s largest uranium producer, the world’s second-largest chromite producer,
and is also a major producer of copper, zinc, iron ore and coal. Mining and quarrying
currently account for approximately 14% of the country’s gross domestic product (GDP)
and 17.5% of the country's exports, equivalent to approximately US$10.5 billion.
Kazakhstan is a highly cost-effective jurisdiction for mineral exploration and mining,
with a skilled workforce and a relatively low cost of operations, including labour and
power.
Despite its geological potential, exploration expenditure in Kazakhstan has notably
lagged behind other major mining jurisdictions. On average, approximately $100 million
has been spent per annum on exploration activities over the past 15 years, according to
data by S&P Global. However, the past 12 months have seen a notable increase in
exploration activity following a newly streamlined exploration licence registration
process, as well as the availability of Soviet-era geophysical data.
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About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal
projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the
DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine,
also in the DRC; and, the phased development of the tier-one Platreef palladium-nickel-
platinum-rhodium-copper-gold project in South Africa.
Ivanhoe Mines is also exploring across its highly prospective, 60-100% owned
exploration licences in the Western Forelands, covering an area over 5 times larger than
the adjacent Kamoa-Kakula Copper Complex. Ivanhoe is exploring for new sedimentary
copper discoveries, as well as expanding and further defining its high-grade Makoko,
Kiala, and Kitoko copper discoveries as the company’s next major development
projects.
Information contact
Investors
Vancouver: Matthew Keevil +1.604.558.1034
London: Tommy Horton +44 7866 913 207
Media
Tanya Todd +1.604.331.9834
Forward-looking statements
Certain statements in this 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 release.
Such statements include without limitation: (i) statements that the Joint Venture covers a highly
prospective licence package of up to 16,000 km2, which is approximately 7.5 times the size of
Ivanhoe’s Western Forelands Exploration Project; (ii) statements that Ivanhoe commits to fund $18.7
million in exploration activities over an initial two year period, with earn-in rights to further increase
ownership up to 80% over time; (iii) statements that an airborne geophysics contract is expected to be
awarded imminently; (iv) statements that the United States Geological Survey estimates that there is 25
million tonnes of copper remains undiscovered in the Chu-Sarysu Basin; (v) statements that the Joint
Venture intends to leverage Ivanhoe Mines’ decades of exploration success in discovering over 50
million tonnes of sediment-hosted copper deposits in the Western Foreland shelf; (vi) statements that
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the initial analysis of the digitized soviet-era historic dataset has highlighted a number of potential
targets that will be investigated following the completion of an airborne geophysics program later this
year, and; (vii) statements that in the event of a major new copper discovery, Ivanhoe can earn up to an
80% equity interest by funding and completing a pre-feasibility study.
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, however not limited to,
the factors discussed above and under the “Risk Factors” and elsewhere in the company’s MD&A for
the three and nine months ended September 30, 2024 and in its current annual information form, as
well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities;
the failure of parties to contracts with the company to perform as agreed; social or labour unrest;
changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated
results or results that would justify and support continued exploration, studies, development or
operations.
Although the forward-looking statements contained in this 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 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 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 September 30, 2024 and its current annual information form.