Ivanhoe Mines reaches agreement to rebuild a railway spur line
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October 30
Ivanho
to supp
KIPUSHI, D
Executive C
announced
Kipushi Min
Lubumbash
The Kipush
a memoran
railway com
The DRC na
Copperbelt
Tanzania an
Daily train
Mr. Friedlan
economical
approximat
The World B
he main DR
The work ha
sleepers (cr
equipment
“A daily tra
safety and e
and border
“The reactiv
of Kipushi a
ransportat
“Given Kipu
US$1.40 and
highest-gra
prospective
developmen
0, 2017
oe Mine
port a ne
EMOCRAT
Chairman R
today that
ne with the
hi.
hi-Munama
dum of und
mpany, Soc
ational railw
to major s
nd Lobito in
ns for exp
nd said the
l and reliab
tely 530,000
Bank is ove
RC nationa
as focused
rossties) an
also has be
in from Kip
environme
congestion
vated spur
and the sou
ion of supp
ushi’s incre
d $1.50 a p
ade, major z
e project fin
nt at the m
es reach
ew era o
in the D
TIC REPUBL
Robert Fried
t the compa
DRC natio
spur line, w
derstandin
ciété Nation
way is a ke
eaports at
n Angola.
ports to in
resumptio
ble solution
0 tonnes of
erseeing an
l railway be
d on replac
nd heavier-
een installe
pushi will re
ntal benefi
n and decr
line also w
uthern DRC
plies to and
edible zinc
ound, we’r
zinc mine.
nanciers to
ine.”
hes agre
of opera
Democra
LIC OF CO
dland and C
any has ag
nal railway
which has
g (MOU) sig
nale des Ch
ey part of th
Durban an
nternation
on of rail se
n for the tra
f zinc conc
nd financin
etween Lub
ing the bal
-gauge ste
ed along th
eplace the
ts to the DR
reased air p
will provide
C provinces
d from the a
grades of
re confiden
Discussion
o fast-track
eement
ation at
atic Rep
NGO (DRC)
Chief Exec
reed to reb
y at Munam
been inact
gned by Iva
hemins de
he internati
nd Richards
nal ports
ervice along
ansportatio
centrates.
ng the reha
bumbashi a
last beneat
el rails. Ne
he line.
equivalent
RC, Zambia
pollution,”
e significan
s of Haut-K
area.
approxima
nt that Kipu
ns are ongo
completio
to rebu
t the Kip
public o
) – Ivanhoe
cutive Offic
build 34 kilo
ma, south of
ive since 2
anhoe Mine
Fer du Con
ional rail co
s Bay in So
g the Kipus
on of Kipus
bilitation a
and the Zam
th the track
w signallin
t of 50 road
a, Zimbabw
Mr. Friedla
nt economic
Katanga and
ately 35% a
shi is on tr
oing with o
n of the rem
uild a ra
pushi zi
of Cong
e Mines (TS
er Lars-Eri
ometres of
f the minin
2011, will be
es and the
ngo (SNCC)
orridor that
outh Africa,
shi spur lin
shi’s projec
and upgrad
mbia borde
ks and inst
ng and telec
d trucks, re
we and Sou
and added.
c and socia
d Lualaba,
and current
rack to bec
our partner,
maining inf
ilway sp
nc-copp
o
SX: IVN; OT
c Johanss
f track to co
g capital of
e rebuilt un
DRC’s stat
).
t links the D
, Dar es Sa
ne is the mo
cted annual
ing of large
er crossing
talling new
communica
esulting in s
uth Africa, r
al benefits
allowing fo
t zinc prices
come the w
, Gécamine
frastructur
pur line
per min
TCQX: IVPA
on
onnect the
f
nder terms
te-owned
DRC
laam in
ost
l output of
e sections
g at Sakania
concrete
ations
significant
reduced roa
to resident
or efficient
s of betwee
world’s
es, and
re
e
AF)
of
of
a.
ad
ts
en
T
(6
K
f
M
t
C
i
The Kipush
68%) and G
Katanga, is
rom the int
Maps show
o Kipushi
Copperbel
n Tanzani
hi Mine is ow
Gécamines
approxima
ternational
w Ivanhoe
, the natio
t to major
a and Lob
wned by K
(32%). Kip
ately 30 kilo
border wit
's Kipushi
onal railwa
r seaports
bito in Ang
Kipushi Cor
pushi, on th
ometres so
th Zambia.
i and Kam
ay and the
at Durban
gola. Inset
rporation (K
he Central A
outhwest of
moa-Kakula
internatio
n and Rich
t shows th
KICO), a join
African Co
f Lubumba
a projects
onal rail co
hards Bay
he Kipushi
nt venture
pperbelt in
ashi and les
, the railw
orridor tha
in South A
to Munam
between Iv
n the provin
ss than one
way spur lin
at links the
Africa, Da
ma spur lin
vanhoe Min
nce of Haut
e kilometre
ne
e DRC
ar es Salaa
ne.
2
nes
t-
e
am
F
o
U
d
t
e
Iv
M
a
“
p
t
C
M
h
O
e
in
p
H
S
f
c
Front-end
of rebuild
Under the te
design stud
he main Lu
end of this y
vanhoe wil
Mr. Johanss
a key consi
“This coope
partnership
he rehabili
Copper Pro
Mr. Johanss
has experie
Our decisio
economic s
ncreasing v
private-pub
Heavy-gau
SNCC’s ma
financed b
componen
d enginee
ing spur
erms of the
dy to asses
ubumbashi
year and c
l finance th
son said th
deration in
eration agr
p with the D
tation of th
oject.”
son added
enced a rev
on to opt fo
stability of t
volumes of
blic coopera
uge rails a
ain line fro
by the Wor
nts will be
ring desi
line
e MOU, Ivan
ss the scop
-Sakania ra
onstruction
he rebuildin
hat as with
n planning f
reement on
DRC’s state
hree hydrop
: “During t
vival in freig
or rail as ou
the railway
f copper an
ation agree
nd concre
om Lubum
rld Bank, u
used on t
gn study
nhoe will a
pe and cost
ailway at M
n on the Ki
ng.
any mine d
for produc
n the railwa
e-owned po
power plan
he past five
ght volume
ur primary m
y operators
nd cobalt b
ements to r
ete crossti
mbashi to S
utilized cro
he planne
to asses
ppoint con
t of rebuild
Munama. Th
ipushi-Mun
developme
tion at Kipu
ay project is
ower compa
nts to suppo
e years, the
es between
mode of ex
s along this
being expor
rebuild othe
es (sleepe
Sakania, a
ossties pr
ed upgradi
s the sco
nsultants to
ing the spu
he study is
nama spur
nt project,
ushi.
s similar to
any, La Soc
ort our dev
e 3,000-kilo
n South Afr
xport transp
s entire cor
rted from D
er sections
ers) being
at the Zam
roduced at
ing of the
ope and c
o conduct a
ur line from
scheduled
line could s
safe and re
o our succe
ciété Natio
velopment o
ometre, nor
ica and the
port will fur
ridor. Give
DRC, we exp
s of the DRC
installed
bian borde
t a Lubum
spur line t
ost
a front-end
m the Kipus
d to begin b
start in late
eliable tran
essful, ongo
nale d’Elec
of the Kam
rth-south r
e African C
rther enhan
n the large
pect to see
C railway s
on a secti
er. The up
mbashi plan
to the Kip
engineerin
shi Mine to
before the
e 2018.
nsportation
oing
ctricité, for
moa-Kakula
ail corridor
opperbelt.
nce the
e and
e more
system.”
ion of
pgrading,
nt. Similar
ushi Mine
3
ng
n is
r
r
e.
E
o
R
a
Existing po
of the plan
Represent
at Munama
ortion of t
nned upgra
atives of t
a railway s
rack on th
ading.
the SNCC
station.
he Kipushi
national r
i-Munama
railway co
spur line
mpany an
to be rebu
nd Ivanhoe
uilt as par
e's Kipush
rt
hi team
4
5
Kipushi underground upgrading program nearing completion
KICO has made excellent progress in modernizing the Kipushi Mine’s underground infrastructure
as part of preparations for the resumption of commercial production. With the underground
upgrading nearing completion, KICO’s focus now will shift to modernizing and upgrading
Kipushi’s surface infrastructure to handle and process the mine’s high-grade zinc and copper
resources.
The current mine redevelopment plan, as outlined in the May 2016 independent, preliminary
economic assessment (PEA), has a two-year construction period with quick ramp-up to a
projected, steady-state, annual production of 530,000 tonnes of zinc concentrate.
A pre-feasibility study (PFS) is underway to refine the findings of the PEA and to optimize the
mine’s redevelopment schedule, life-of-mine operating costs and initial capital costs required to
return the mine to production, taking into consideration the significant capital already invested to
date on critical rehabilitation work. The PFS, which Ivanhoe expects to complete before the end of
this year, will focus on the mining of Kipushi’s Big Zinc Deposit, which has an estimated 10.2
million tonnes of Measured and Indicated Mineral Resources grading 34.9% zinc. This
exceptional grade is more than twice as high as the Measured and Indicated Mineral Resources
of the world’s next-highest-grade, major zinc project, according to Wood Mackenzie, a leading,
international industry research and consulting group.
In addition to the Big Zinc Deposit, Kipushi has several copper-rich zones that also contain silver,
germanium and zinc. Measured and Indicated Mineral Resources contained in the copper-rich
Série Récurrente Zone, Fault Zone, and Fault Zone Splay total 1.63 million tonnes at grades of
4.01% copper, 2.87% zinc and 22 g/t silver, at a 1.5% copper cut-off, containing 144 million
pounds of copper. Inferred Mineral Resources in these zones total an additional 1.64 million
tonnes at grades of 3.30% copper, 6.97% zinc and 19 g/t silver.
Qualified Person, Quality Control and Assurance
The scientific and technical information in this news release has been reviewed and approved by
Stephen Torr, P.Geo., Ivanhoe Mines’ Vice President, Project Geology and Evaluation, a Qualified
Person under the terms of National Instrument 43-101. Mr. Torr is not independent of Ivanhoe
Mines.
Ivanhoe has prepared and filed a current, independent, NI 43-101-compliant technical report for
the Kipushi Project, titled “Kipushi Zn-Cu Project, Kipushi 2016 Preliminary Economic
Assessment”, dated May 2016, which is available under the company’s SEDAR profile at
www.sedar.com and on the company’s website at www.ivanhoemines.com. The technical report
includes relevant information regarding the effective dates and the assumptions, parameters and
methods of the mineral resource estimates on the Kipushi Project cited in this release, as well as
information regarding data verification, exploration procedures, sample preparation, analysis and
security, and other matters relevant to the scientific and technical disclosure contained in this
release regarding the Kipushi Project.
6
About Ivanhoe Mines
Ivanhoe Mines is advancing its three principal projects in Southern Africa: 1) mine development
at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South
Africa’s Bushveld Complex; 2) mine development and exploration at the tier-one Kamoa-Kakula
copper discovery on the Central African Copperbelt in the Democratic Republic of Congo; and 3)
upgrading at the historic, high-grade Kipushi zinc-copper-silver-germanium mine, also on the
Copperbelt in the DRC. For details, visit www.ivanhoemines.com.
Information contacts
Investors
Bill Trenaman +1.604.331.9834
Media
North America: Bob Williamson +1.604.512.4856
South Africa: Jeremy Michaels +27.82.772.1122
Website www.ivanhoemines.com
Cautionary statement on forward-looking information
Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the
meaning of applicable securities laws, including without limitation: (1) statements regarding Ivanhoe Mines’
commitment to rebuild 34 kilometres of track to connect the Kipushi Mine with the DRC national railway at Munama;
(2) statements regarding Kipushi’s projected annual output of approximately 530,000 tonnes of zinc concentrates;
(3) statements regarding a daily train from Kipushi will replace the equivalent of 50 road trucks, resulting in
significant safety and environmental benefits to the DRC; (4) statements regarding the reactivated spur line also will
provide significant benefits to residents of Kipushi and the provinces of Lualaba and Haut-Katanga; (5) statements
regarding Ivanhoe’s expectations that Kipushi is on track to become the world’s highest-grade, major zinc mine; (6)
statements regarding the front-end engineering design study is scheduled to begin before the end of this year and
construction on the Kipushi-Munama spur line could start in late 2018; (7) statements regarding Ivanhoe’s
expectation to see more private-public cooperation agreements to rebuild other sections of the DRC railway
system; and (8) statements regarding Ivanhoe’s expectation to complete the Kipushi pre-feasibility study before the
end of this year.
All such forward-looking information and statements are based on certain assumptions and analyses made by
Ivanhoe Mines’ management in light of their experience and perception of historical trends, current conditions and
expected future developments, as well as other factors management believe are appropriate in the circumstances.
These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the forward-looking information or statements
including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable
authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity
prices; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, and the
failure of exploration programs or other studies to deliver anticipated results or results that would justify and support
continued studies, development or operations. Other important factors that could cause actual results to differ from
these forward-looking statements also include those described under the heading “Risk Factors” in the company’s
most recently filed MD&A as well as in the most recent Annual Information Form filed by Ivanhoe Mines. Readers
are cautioned not to place undue reliance on forward-looking information or statements. The factors and
assumptions used to develop the forward-looking information and statements, and the risks that could cause the
actual results to differ materially are set forth in the “Risk Factors” section and elsewhere in the company’s most
recent Management’s Discussion and Analysis report and Annual Information Form, available at www.sedar.com.
7
This news release also contains references to estimates of Mineral Resources. The estimation of Mineral
Resources is inherently uncertain and involves subjective judgments about many relevant factors.
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, which may prove to
be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical
inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-
estimated based on, among other things: (1) fluctuations in zinc or other mineral prices; (2) results of
drilling; (3) results of metallurgical testing and other studies; (4) changes to proposed mining operations,
including dilution; (5) the evaluation of mine plans subsequent to the date of any estimates; and (6) the
possible failure to receive required permits, approvals and licences.
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.