Ivanhoe’s mining crews have entered the giant Flatreef platinum- palladium-rhodium-nickel-gold-copper orebody after 30 years of efforts
May 8, 2025
Ivanhoe’s mining crews have entered the giant Flatreef platinum-
palladium-rhodium-nickel-gold-copper orebody after 30 years of efforts
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Platreef Mine is destined to become the world’s leading polymetallic
mining complex
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Flatreef discovery contains 59 million ounces of precious metals in
Indicated Resources and 94 million ounces in Inferred Mineral
Resources at 1 g/t cut-off
MOKOPANE, SOUTH AFRICA – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) Executive Co-
Chairman Robert Friedland and President and Chief Executive Officer Marna Cloete
announced today that mining crews have driven underground development into the high-
grade platinum, palladium, rhodium, nickel, gold, and copper orebody for the first time,
as the mine rapidly advances to commercial production later this year.
The significant milestone comes over 30 years since Ivanplats, the company’s
subsidiary, acquired the first exploration licence and 15 years since the discovery of the
26-metre thick, flat-lying Flatreef orebody was announced. Today’s milestone also comes
nine years since the initiation of the sinking of Shaft #1. After completing the sinking of
Shaft #1 to a depth of 996 metres in 2021, Ivanhoe has completed 5.5 kilometres (over 3.4
miles) of tunnels on three levels; the 750-metre level, 850-metre level, and 950-metre
level.
Ivanplats’ mining crews entered the Flatreef orebody on the 850-metre level, with the first
blast of high-grade ore on May 7, 2025. Underground development on the 750-metre and
950-metre levels will also enter the Flatreef orebody in the coming weeks. Ore from the
ongoing underground development will be stored on surface ahead of the first feed of
ore into the Phase 1 concentrator in the fourth quarter of this year.
Construction of Africa’s largest hoisting shaft, Shaft #2, is advancing well. Raiseboring to
a depth of 950 metres and an initial diameter of 3.1 metres was completed at the end of
the first quarter. Shaft #2’s expansion out to a final diameter of 10 metres will commence
in early 2026. In the meantime, construction of the Shaft #2’s concrete and steel
headframe is advancing on schedule. The completion of Shaft #2 will increase the total
hoisting capacity from the Platreef Mine to over 12 million tonnes per annum (Mtpa).
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Watch a new video showcasing the Platreef Mine’s momentous occasion:
https://vimeo.com/1081483861/85e4d23fe6
Ivanhoe Mines’ Founder and Executive Co-Chairman, Robert Friedland commented:
"Having our thrilled mining crews enter the high-grade Flatreef orebody… rich in
platinum, palladium, rhodium, nickel, gold, and copper… represents the culmination
of over 30 years of relentless dedication by thousands of our talented and
hardworking people… Their efforts have spanned decades, from the early stages of
discovery to meticulous delineation, permitting, engineering… and now the
construction of this world-class polymetallic mining complex that will benefit
humanity for generations.
"Contrary to predictions that the Platreef Mine might not be built, the mine is now a
reality… This colossal mine will grow in rapidly-phased expansions, positioning the
Platreef Mine as one of the lowest-cost, if not the lowest-cost, and largest primary
producers of platinum group metals on our planet.
"With a globally significant precious metals endowment exceeding 50 million
ounces of gold-equivalent, Platreef is the world-leading polymetallic mine in
development. The discovery remains open in many directions, with vast additional
untapped opportunities… despite already having proven an astounding mineral
inventory containing 2.0 billion tonnes of the world’s richest platinum, palladium,
rhodium, nickel, copper and gold system.
"This year, we are excited to offer institutional investors and analysts guided tours
of the magnificent Platreef Mine. Our guests will witness firsthand the scale,
innovation, and electrifying possibilities of what will redefine the polymetallic
mining landscape."
All figures are in U.S. dollars unless otherwise stated.
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Ivanplats’ mining crews looking at the Flatreef orebody that they first reached on
May 7, 2025. The Flatreef orebody consists of two mineralized zones (T1 & T2
mineralized zones), which combined are up to 29 metres thick.
Ivanplats’ mining crews entered the Flatreef orebody after over 30 years of effort,
since the first exploration licence was received.
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Platreef’s 30-year journey from tier-one discovery to construction of one of
the world's largest, and lowest-cost, primary platinum group metal
producers
The Platreef Mine is located on the “Northern Limb” of the Bushveld Complex in South
Africa, approximately 11 kilometres from Mokopane, and 280 kilometres northeast of
Johannesburg. The Northern Limb is the newest mining area in the Bushveld Complex,
which currently contains only one other operating mine, Anglo American Platinum’s
Mogalakwena Mine, as shown in Figure 1.
Platinum, palladium, rhodium, nickel, gold, and copper mineralization in the Northern
Limb is primarily hosted within a mineralized sequence over 30 kilometres in strike,
called the Platreef.
Ivanplats acquired a prospecting permit for Macalacaskop and Turfspruit in February
1998 and began a series of drilling campaigns, totaling more than 726,000 metres, to
delineate Platreef from a greenfield exploration project initially focused on shallow
mineralized zones, before shifting exploration focus in 2007 to deeper extensions of this
original discovery. A significant breakthrough came in 2010 when Ivanhoe’s geologists
discovered that the thick, high-grade, down-dip extension of the system started to flatten
out from a depth of between 750 and 850 metres, hence the name Flatreef.
Upon the discovery of Flatreef, Ivanplats conducted a major exploration program in 2011
of 260,000 metres, which had at the height of the drilling campaign 30 diamond drill rigs
producing more than 10,000 metres of core per week.
Surface infrastructure of the Platreef Mine, showing Shaft #2 (left) and Shaft #3
(bottom) which are under construction.
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Figure 1: Plan map of South Africa’s Bushveld Complex.
The Flatreef orebody consists of two mineralized zones (T1 & T2 ), which combined are
up to 29 metres thick. This thickness is exceptional when compared to the typical,
approximately one-meter-thick reefs currently mined by incumbent platinum group metal
mining operations in the Western and Eastern Limbs of South Africa's Bushveld
Complex.
The Flatreef orebody is situated on two contiguous properties, Turfspruit and
Macalacaskop, which total approximately 78 square kilometres (km2). The northern edge
of the Turfspruit licence borders with, and is contiguous along strike from, Anglo
Platinum’s Mogalakwena Mine.
A Japanese consortium, led by ITOCHU Corporation and ITC Platinum Development Ltd.,
acquired a 10% interest in the Platreef project via two tranches. The first 2% interest was
acquired in September 2010 for $10 million and the further 8% interest was acquired in
2011 for $280 million. A 26% interest in the Platreef project was also transferred in 2014
to a Broad-Based Black Economic Empowerment (B-BBEE) vehicle in conformance with
South Africa’s mining laws and in fulfillment of the requirements of the company’s
Mining Right application. The remaining 64% is owned and operated by Ivanhoe Mines
indirectly through its subsidiary, Ivanplats.
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The polymetallic Flatreef orebody is unique, with a diversified basket of
metals, including large, highly valuable gold and rhodium by-products
The polymetallic Flatreef orebody is both the largest undeveloped precious metals
project, as well as one of the world’s largest undeveloped nickel sulphide resources in
the world. The Flatreef orebody also possesses several unique characteristics compared
with other platinum group metal operations in the Bushveld Complex.
The Flatreef orebody is high-grade, thick and flat lying, which is ideal for safe, large-
scale, modern mechanized mining for maximum ore extraction. Additionally, the
polymetallic orebody comprises a platinum-to-palladium ratio of approximately 1:1,
together contributing approximately 55% of the revenue basket at spot prices. Rhodium
and gold together contribute approximately 20% of the revenue basket, with the
remaining 25% derived from nickel and copper.
The Flatreef orebody has 93 million ounces in Indicated Platinum Equivalent Mineral
Resources, at 1.0 g/t cut off of platinum, palladium, rhodium and gold. The Flatreef also
contains 144 million ounces in Inferred Platinum Equivalent Mineral Resources, at 1.0 g/t
cut-off of platinum, palladium, rhodium and gold.
The Flatreef orebody has exceptional exploration upside for further resource expansion
across the 78-square-kilometre licence area, with the potential to extend mining
operations for generations to come. Drilling was stopped in 2015 to focus on mine
development, with mineralization continuing to be open in all directions with 48% of the
licence area untested, as shown in Figure 2. As underground development progresses,
further drilling from underground will be undertaken with the goal of increasing
confidence, as well as expanding Mineral Resources for future expansions.
Flatreef orebody’s Indicated Mineral Resources contain an estimated 4.3 million ounces
of gold, while Inferred Mineral Resources contain an additional 6.9 million ounces of gold
at a 1.0 g/t cut-off of platinum, palladium, rhodium, and gold. Gold has recently traded
near all-time highs of $3,500 per ounce.
In addition, the Flatreef’s Indicated Mineral Resources contain an estimated 1.8 million
ounces of rhodium, while Inferred Mineral Resources contain an additional 2.7 million
ounces of rhodium at a 1.0 g/t cut-off of platinum, palladium, rhodium, and gold.
Rhodium is a rare, silvery-white, corrosion-resistant transition metal used in many
applications, including jewelry, catalytic converters, and microelectronics. Rhodium has
recently traded as high as $6,000 per ounce, with prices spiking above $25,000 per ounce
in 2021.
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Figure 2. The Platreef Mine, which is already has one of the world’s largest
precious metals orebodies in development, has significant potential for further
resource expansion with the mineralization open in all directions and 48% of the
licence area untested.
Two independent studies completed in February 2025 highlight the
outstanding potential of the Platreef Mine
On February 18, 2025, Ivanhoe announced the completion of two completed independent
studies covering the three-phase development of the Platreef Mine. This included an
updated Feasibility Study on the Phase 2 expansion to 4.1 Mtpa of processing capacity
(4.1 Mtpa FS), followed by a Preliminary Economic Assessment covering a new Phase 3
expansion to 10.7 Mtpa of processing capacity (10.7 Mtpa PEA). The ramp-up schedule of
the three phases is shown in Figure 3.
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The excellent results from both studies reinforce the industry-leading margins of the
multi-generational Platreef Mine. The estimated life of mine (LOM) total cash cost for the
4.1 Mtpa FS is $599 per ounce of platinum, palladium, rhodium, and gold, net of nickel
and copper by-product credits. Life-of-mine total cash costs fall to $511 per oz. of
3PE+Au in the 10.7 Mtpa PEA. This compares with a near-multi-year low basket spot price
of $1,205 per ounce of platinum, palladium, rhodium, and gold, as at February 17, 2025.
This ranks the Platreef Mine as the lowest-cost primary platinum-group-metals producer
globally, as shown in Figure 4.
Compared with other Southern African and North American primary platinum group
metal producers, Platreef Mine’s low cash costs are predominantly due to its unique,
thick orebody. The Flatreef orebody will be mined using safe, mechanized, and highly
productive bulk mining methods, achieving superior economies of scale. In addition, the
Flatreef orebody has high grades of nickel and copper as payable by-products.
The study outlines Phase 1 production from Q4 2025, followed by the Phase 2 expansion
two years later in Q4 2027. Phase 2 delivers, as outlined in the 4.1 Mtpa FS, a nearly five-
fold increase in platinum, palladium, nickel, rhodium, and gold production to over
460,000 oz. of 3PE+Au, plus approximately 9,000 tonnes of nickel and 6,000 tonnes of
copper. The 4.1 Mtpa FS generates a net present value (NPV8%) of $1.4 billion and an
internal rate of return (IRR) of 20%, at consensus long-term metal prices.
The 10.7 Mtpa PEA considers the Phase 3 expansion once the major Shaft #2 is available
for hoisting in 2029. This expansion further doubles the annualized platinum, palladium,
rhodium, and gold production to over 1 million ounces of 3PE+Au, plus approximately
22,000 tonnes of nickel and 13,000 tonnes of copper. The 10.7 Mtpa PEA is expected to
rank Platreef Mine as one of the world’s largest primary platinum group metal producers
on a platinum-equivalent basis, as shown in Figure 5. The 10.7 Mtpa PEA generates an
NPV8% of $3.2 billion, and an IRR of 25%, at consensus long-term metal prices.
The PEA is preliminary and includes an economic analysis that is based, in part, on
Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative
geologically for the application of economic considerations that would allow them to be
categorized as Mineral Reserves — and there is no certainty that the results will be
realized. Mineral Resources do not have demonstrated economic viability and are not
Mineral Reserves.
The Platreef Mine has the potential to be a significant platinum, palladium, rhodium, and
gold producer for many generations to come. The 35-year mine life, reflected in the 4.1
Mtpa FS, is based only on Indicated Mineral Resources using drilling across
approximately one-third of Platreef Mine’s licence package, with mineralization open in
multiple directions.