Ivanhoe Mines to quadruple 2024 exploration budget
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December 7, 2023
Ivanhoe Mines to quadruple 2024 exploration budget
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Exploration focused on the Western Foreland, following the high-
grade Kitoko copper discovery
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Kitoko’s newly discovered copper horizon on the Kibaran
Basement significantly increases prospectivity of the Western
Foreland for tier-one discoveries
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Expanded 2024 exploration program targets expansion of
Kitoko’s 1.9-kilometre length, open in all directions
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Ivanhoe Mines to test geologic model discovered in hole DD008 in
vast areas of the Western Foreland with newly enhanced
prospectivity
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Ivanhoe Mines in discussions with multiple potential strategic
investors
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO — Ivanhoe Mines (TSX: IVN; OTCQX:
IVPAF) Founder and Executive Co-Chair Robert Friedland and President Marna Cloete
announced that the company is substantially increasing its group exploration activities
and budget for 2024. The group budget for 2024 will quadruple to approximately $90
million, with exploration activities primarily focused on the 2,654-square-kilometre
Western Foreland Exploration Project. The budget increase follows the November 28,
2023 announcement of the geologically significant, high-grade Kitoko copper discovery,
as well as the maiden Mineral Resource estimates for the Makoko and Kiala high-grade
copper discoveries, as announced on November 13, 2023, in the Western Forelands.
The Kitoko discovery confirms the presence of a globally significant high-grade copper
mineralizing system. Kitoko’s copper mineralization is hosted in near flat-lying siltstone
of the lower Grand Conglomerate, similar to the geologic setting observed at the
Kamoa, Kakula, Makoko and Kiala high-grade, sedimentary copper discoveries. All of
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these discoveries, including Kitoko, in the Western Foreland share the same
characteristics of mineralization being bottom-loaded with the highest copper grades
occurring at the base of each sedimentary, copper-mineralized horizon.
However, what differentiates the Kitoko discovery from the previous Kakula, Kamoa,
Makoko and Kiala discoveries, is that the Kitoko discovery exhibits two remarkably
different characteristics. Firstly, the mineralization is hosted within the Grand
Conglomerate, directly overlying the Kibaran Basement rocks (see Figure 1) with no
underlying Mwashia sandstones. This is significant as Ivanhoe Mines’ geology team
previously conceived that the sandstones are the primary sedimentary aquifer allowing
the circulation of oxidized copper-bearing basinal fluids, which precipitated copper
when they were brought into contact with overlaying pyrite-rich reduced sediments. The
remarkable Kitoko discovery proves the potential for copper mineralization to occur
across a greater variety of underlying aquifer conditions rather than being limited to
areas where the Mwashia sandstones are present. Secondly, mineralization at Kitoko
occurs across at least two distinct, high-grade, sedimentary horizons. This emphasizes
the strength of the mineralizing system, as sufficient copper remains in the fluid
following the interaction with the lower reductant, to be able to subsequently mineralize
a second horizon.
As a result, the Ivanhoe Mines’ exploration model has been disrupted by the Kitoko
discovery, significantly increasing the proportion of the Western Foreland that is
prospective for world-class, high-grade, sedimentary copper systems.
Ivanhoe Mines’ Board of Directors has just approved a quadrupled groupwide
exploration budget to $90 million for 2024. The increased budget will focus on activities
around the Kitoko discovery, as well as testing additional new targets developed in light
of the Company’s new geological understanding.
The recent exploration success further reinforces the vital role of the Democratic
Republic of the Congo as the future of the world's copper supply. As announced on
November 13, 2023, the Makoko discovery ranks as the world’s third-largest and
highest-grade copper discovery since Kakula in 2016.
Ivanhoe is in discussions with multiple potential strategic investors, including major
international corporations and sovereign wealth funds, regarding matters including, but
not limited to, fast-tracking the development of the Western Foreland.
Ivanhoe Mines’ Founder and Executive Co-Chairman, Robert Friedland commented:
“Given the ongoing exploration success across the Western Foreland, highlighted by
the recently announced high-grade Kitoko copper discovery and the release of the
Makoko and Kiala maiden Mineral Resource estimates, we are really accelerating our
exploration drilling into 2024.
“The goals of this expanded exploration effort will be threefold. Firstly, we will continue
to expand the Kitoko copper discovery with additional drill rigs, thereby increasing our
knowledge of its substantial exploration opportunities. Kitoko highlights the potential
for high-grade copper mineralization across a much greater area, and within a wider
variety of geological conditions, than previously conceived by our geologic team who
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have decades of experience in the Democratic Republic of the Congo and Zambia.
Second, we will advance our understanding of the Makoko and Kiala deposits and
optimize our studies for near-term copper mine production on our majority-owned
licences. Finally, we will continue to evaluate high-priority targets across the Forelands,
based on our fast-evolving proprietary database and geologic models for additional tier-
one, high-grade copper discoveries.”
Watch a timeline video, dated October 2023, chronicling Ivanhoe Mines’
exploration success in the DRC. An updated version, including Ivanhoe’s
more recent developments, will be released in the new year.
https://vimeo.com/872226324/4d1eb6bf65?share=copy
Selected drill holes at the Kitoko Copper Discovery include:
• DD003 (the Kitoko discovery hole) intersected 3.37 metres (true width) of 3.54%
copper, at a 1.0% copper cut-off, from a downhole depth of 1,077 metres.
• DD004 intersected 6.43 metres (true width) of 4.92% copper, at a 1.0% copper cut-
off, from a downhole depth of 1,071 metres.
• DD006 intersected 4.18 metres (true width) of 3.60% copper, at a 1.0% copper cut-
off, from a downhole depth of 1,065 metres.
• DD007 intersected 6.79 metres (true width) of 3.35% copper at a 1.0% copper cut-
off, from a downhole depth of 1,089 metres.
• DD008 intersected two separate high-grade mineralized zones: 3.09 metres (true
width) of 3.67% copper from a downhole depth of 1,118 metres, and a higher
grade zone of 5.19 metres (true width) of 11.64% copper from a downhole depth
of 1,135 metres, at a 1.0% copper cut-off.
For more information on the drill results listed above, including assays and locations,
see announcement dated November 28, 2023
Ivanhoe’s evolving experience of the Western Foreland geology has
disrupted the regional scale prospectivity for world-class, high-grade,
sedimentary copper discoveries
Ivanhoe began exploration activities on its extensive Western Foreland land position in
July 2017. Initially, activities were focused on the construction of approximately 120
kilometres of all-season access roads, bridges and the development of new camp
facilities. In parallel, Ivanhoe undertook airborne and ground-based geophysical
surveys and revisited previously acquired geophysical and geochemical data sets.
Targets, and subsequent discoveries, were initially identified based on analysis of
geological models from the airborne and ground geophysics, as well as surface and
sub-surface geochemical sampling, and ultimately discovered by diamond drilling. By
year-end 2023, the company expects to have completed more than 160,000 metres of
Western Foreland diamond drilling since 2017, including almost 40,000 metres
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completed year-to-date. Total drilling completed on the Western Foreland, including
across the Kamoa-Kakula Copper Complex, is approximately one million metres
(approximately 650 miles) since project inception.
Kitoko’s fine-grained copper mineralization is hosted in near flat-lying siltstone of the
lower Grand Conglomerate, like that observed at the tier-one Kamoa and Kakula
deposits.
The newly discovered high-grade mineralization at Kitoko is associated with siltstone
and inter-banded gritty layers of sandstone, formed in periods of relatively low
sediment input into the basin, within a large package of Grand Conglomerate diamictite.
The siltstones contain early pyrite that reacted with basinal fluids to deposit
sedimentary copper systems. Multiple packages, or layers, of pyritic siltstones, have
been identified and are exploration targets when they occur in prospective basin
locations.
The Kitoko discovery is approximately 20 to 30 kilometres due west of the ultra-high-
grade Kakula Mine, and approximately five kilometres south and southeast of the
Makoko copper discovery. Kitoko was discovered inside a package of newly acquired
joint venture licences and remains open for expansion into the adjoining licences held
by Ivanhoe Mines. The new package of licences increases Ivanhoe’s highly prospective
Western Foreland land position by 10% to 2,654 square kilometres. Ivanhoe is currently
earning up to 60% of the licence package containing the initial Kitoko discovery area
and the company holds additional rights with respect to this licence package.
Figure 1. The Kitoko discovery is hosted within the Grand Conglomerate,
overlaying the Kibaran basement directly, which differs from the high-grade
copper mineralization at the Kakula, Kamoa, Makoko and Kiala deposits that
occurs where the Grand Conglomerate is dominantly underlain by Mwashia
sandstones.
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In contrast to the Kamoa and Kakula copper discoveries, the copper mineralization at
Kitoko is hosted in the lowest reductant sedimentary layer to have been discovered in
the Western Forelands. The deposition of copper mineralization occurs where the
circulating copper-bearing fluids are focused into sub-basins and shelf edges.
Ivanhoe’s 80-to-100%-owned exploration licences, plus the new joint venture licence
package, cover approximately 175 kilometres of prospective strike length for this world-
champion district of high-grade sedimentary copper mineralization.
(L-R) Samples of typical Kamoa, Kakula and Kitoko copper discovery core
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Ivanhoe Mines’ exploration team with a diamond drill rig in the Western Foreland
Qualified Persons and Quality Assurance and Control
Disclosures of a scientific or technical nature at the Western Foreland Exploration
Project in this news release have been reviewed and approved by Tim Williams, who is
considered, by virtue of his education, experience and professional association, a
Qualified Person under the terms of NI 43-101. Mr. Williams is not considered
independent under NI 43-101 as he is Ivanhoe Mines’ Executive Head, Exploration.
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 construction of the tier-one Platreef palladium-nickel-platinum-rhodium-
copper-gold project in South Africa; and the restart of the historic ultra-high-grade
Kipushi zinc-copper-germanium-silver mine, also in the DRC.
Ivanhoe Mines also is exploring for new copper discoveries across its circa 2,400km2 of
80-100% owned exploration licences, as well as on the 247km2 of newly acquired joint
venture licences, in the Western Foreland located adjacent to the Kamoa-Kakula Copper
Complex in the DRC.
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Information contact
Investors
Vancouver: Matthew Keevil +1.604.558.1034
London: Tommy Horton +44 7866 913 207
Media
Tanya Todd +1.604.331.9834
Cautionary statement on forward-looking information
Certain statements in this news 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
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be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”,
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“will” be taken, occur or be achieved. Readers are cautioned not to place undue reliance on
forward-looking information or statements. These statements reflect the company’s current
expectations regarding future events, performance and results and speak only as of the date of
this news release.
Such statements include without limitation: (i) statements regarding the company’s further
exploration and spending commitments in 2024, which are expected to allow the company to
increase its interest in the newly acquired joint venture licenses containing the initial Kitoko
discovery area to 60%; (ii) statements that the Kitoko discovery confirms the presence of a
globally significant high-grade copper mineralization system; (iii) statements that by year-end
2023, the company expects to have completed more than 160,000 metres of diamond drilling
since 2017 over the area comprising the Western Foreland licenses; (iv) statements that the
company will test geological model discovered in hole DD008 in vast areas of Western
Foreland which have newly enhanced prosperity; (v) statements regarding discussions with
multiple potential strategic investors; and, (vi) statements regarding the 2024 exploration
program and its budget.
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 or not such results will be achieved. A number of factors could cause
actual results to differ materially from the results discussed in the forward-looking statements
or information, including, but not limited to, the factors discussed under “Risk Factors” and
elsewhere in the company’s MD&A for the three and nine months ended September 30, 2023,
and its Annual Information Form, as well as the inability to obtain regulatory approvals in a
timely manner; the potential for unknown or unexpected events to cause contractual conditions
to not be satisfied; 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
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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 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.
The company’s actual results could differ materially from those anticipated in these forward-
looking statements as a result of the factors set forth in the “Risk Factors” section and
elsewhere in the company’s MD&A for the three and nine months ended September 30, 2023,
and its Annual Information Form.