Ivanplats to begin early-works construction for Shaft 2 at the Platreef platinum-group metals, nickel, copper and gold mine in South Africa Shaft 2 to be Platreef’s main production shaft with a hoisting capacity of six million tonnes a year
April 12, 2017
Ivanplats to begin early-works construction for Shaft 2
at the Platreef platinum-group metals, nickel,
copper and gold mine in South Africa
Shaft 2 to be Platreef’s main production shaft
with a hoisting capacity of six million tonnes a year
MOKOPANE, SOUTH AFRICA – Robert Friedland, Executive Chairman of Ivanhoe Mines (TSX: IVN;
OTCQX: IVPAF), and Lars-Eric Johansson, Chief Executive Officer, announced today that the company
has approved the start of early-works construction for Shaft 2, which will be the main production shaft
at the Platreef platinum-group metals, nickel, copper and gold mine now being developed in South
Africa.
Ivanplats, Ivanhoe Mines’ 64%-owned subsidiary, is expected to begin the two-part, early-works
program for Shaft 2 in Q2 2017. The program will consist of:
excavation of a surface box cut to a depth of approximately 29 metres below surface; and
construction of the concrete hitch (foundation) for the 103-metre-tall concrete headgear
(headframe) that will house the shaft’s permanent hoisting facilities and support the shaft collar.
The early-works construction is expected to take approximately 12 months and cost approximately R70
million (US$5.5 million).
Shaft 2 will be located approximately 100 metres northeast of Shaft 1, where permanent sinking has
been underway for eight months. Shaft 2, with an internal diameter of 10 metres, will be lined with
concrete and sunk to a planned, final depth of more than 1,100 metres below surface. It will be
equipped with two 40-tonne rock-hoisting skips capable of hoisting a total of six million tonnes of ore
per year – which will be the single largest hoisting capacity at any mine in Africa. The headgear for the
permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation.
“This is another key milestone in the building of a new, state-of-the-art underground mine in South
Africa,” said Mr. Friedland. “Shaft 2 is the key to unlocking Platreef’s full potential and we believe that
the time is right to prudently move forward with the development of this world-scale project.”
Dr. Patricia Makhesha, Ivanplats’ Managing Director, added: “We are committed to developing Platreef
into South Africa’s next great platinum-group metals mine, generating widely shared economic
benefits to the South African economy and helping to deliver important jobs, skills training and
enterprise development opportunities to the communities in the Mokopane area.”
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Illustration shows two perspectives of Shaft 2’s 103-metre-tall concrete headgear, the
hitch (foundation) and internal permanent hoisting facilities.
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Shaft 1 sinking advancing at a rate of 45 to 50 metres per month
Shaft 1, with an internal diameter of 7.25 metres and also concrete lined, is in its main sinking phase
and has reached a depth of approximately 305 metres below surface. Sinking rates in Q1 2017 have
been between 45 and 50 metres per month.
Shaft 1 is expected to reach its projected, final depth of 980 metres below surface in 2018. It will be
used for underground development of the Flatreef Deposit and ultimately will become the primary
ventilation intake shaft during the project’s four-million-tonne-per-annum (Mtpa) initial production
case. Shaft stations to provide access to horizontal mine workings for personnel, materials and
services will be developed at depths of 750, 850 and 950 metres below surface.
The selected Flatreef mining areas occur at depths ranging from approximately 700 to 1,200 metres
below the surface. The planned mining of the Flatreef Deposit will incorporate low-cost, mechanized
mining methods, including long-hole stoping and drift-and-fill mining. Mined-out areas are to be
backfilled with a mixture of tailings from the processing plant and cement. The ore will be hauled from
the mining stopes to a series of ore passes that will connect to a main haulage level leading to a
primary rock crusher near Shaft 2, from where it will be hoisted to the surface for processing.
Shaft-sinking team members operating the jumbo drill in Shaft 1.
Feasibility study expected to be released in Q2 2017
The definitive feasibility study for Platreef’s first-phase, four Mtpa production scenario is expected to
be completed and released in Q2 2017. The study, which began in August 2015, is being prepared by
principal consultant DRA Global, with specialized sub-consultants including Stantec Consulting,
Murray & Roberts Cementation, SRK Consulting, Golder Associates and Digby Wells Environmental.
The feasibility study will further refine and upgrade the findings of the Platreef January 2015 pre-
feasibility study that covered the first phase of development, which includes construction of a highly-
mechanized underground mine, concentrator and other associated infrastructure to support initial,
estimated concentrate production of 433,000 ounces of platinum-group metals per year.
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Ivanplats plans to develop the Platreef Mine as an underground mining operation in three phases: 1)
an initial annual rate of four Mtpa to establish an operating platform to support future expansions; 2) a
doubling of production to eight Mtpa; and 3) another expansion phase to a steady-state 12 Mtpa. At a
projected production rate of 12 Mtpa, Platreef would be the largest platinum-group metals mine in the
world, producing more than 1.2 million ounces of platinum-group metals per annum.
The development scenarios describe a staged approach structured to provide opportunities to expand
the operation based on demand, smelting and refining capacity and capital availability. As the first
phase of development is placed into production, there is expected to be an opportunity to modify and
optimize the subsequent phases, allowing for changes to the timing of capacity expansions to suit
market conditions.
About the Platreef Project
The Platreef Project is a Tier One discovery by Ivanhoe Mines’ geologists on the Northern Limb of
South Africa’s Bushveld Igneous Complex, the world’s premier platinum-producing region.
Ivanhoe Mines owns 64% of the Platreef Project through its subsidiary, Ivanplats, and is directing all
mine development work. The South African beneficiaries of the approved broad-based, black economic
empowerment structure have a 26% stake in the Platreef Project. The remaining 10% is owned by a
Japanese consortium of ITOCHU Corporation; ITC Platinum Development Ltd., an ITOCHU affiliate;
Japan Oil, Gas and Metals National Corporation; and JGC Corporation.
Qualified person
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 (NI 43-101). Mr. Torr has verified the technical
data disclosed in this news release.
Information on sample preparation, analyses and security is contained in the Platreef Project 2016
Resource Technical Report, dated June 24, 2016, filed on SEDAR at www.sedar.com and on the
Ivanhoe Mines website at www.ivanhoemines.com.
About Ivanhoe Mines
Ivanhoe Mines is advancing its three principal projects in Sub-Saharan 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 Kamoa-Kakula copper discovery on
the Central African Copperbelt in the Democratic Republic of Congo (DRC); and upgrading at the
historic, high-grade Kipushi zinc-copper-lead-germanium mine, also on the DRC’s Copperbelt. 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 +27.11.088.4300
Website www.ivanhoemines.com
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FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the
meaning of applicable securities laws, including without limitation, (i) statements regarding the early-works program for
Shaft 2 is expected to begin in Q2 2017; (ii) statements regarding early-works construction is expected to take
approximately 12 months and cost approximately R70 million (US$5.5 million); (iii) statements regarding Shaft 2 is to be
sunk to a planned, final depth of more than 1,100 metres below surface; (iv) statements regarding Shaft 2 being the key to
unlocking Platreef’s full potential; (v) statements regarding the Platreef Project generating widely shared economic
benefits to the South African economy, and helping to deliver important jobs and enterprise development opportunities to
the communities in the Mokopane area; (vi) statements regarding Shaft 1 is expected to reach its projected, final depth of
980 metres below surface in 2018; (vii) statements regarding the planned mining of the Flatreef Deposit will incorporate
low-cost, mechanized mining methods, including long-hole stoping and drift-and-fill mining; (viii) statements regarding the
Platreef feasibility study expected to be completed and released in Q2 2017; (ix) statements regarding the first phase
estimated concentrate production of 433,000 ounces of platinum-group metals a year; (x) statements regarding Ivanplats
plans to develop the Platreef Mine as an underground mining operation in three phases — 4 Mtpa, 8 Mtpa and 12 Mtpa;
and (xi) statements regarding at a projected production rate of 12 Mtpa, Platreef would be the largest platinum-group
metals mine in the world producing over 1.2 million PGE ounces per annum.
Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results,
performance or achievements of the company, 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 by the use of 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.
Readers are cautioned that actual results may vary from those presented.
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, industrial accidents or machinery failure (including of shaft sinking equipment), 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. Certain
of the factors and assumptions used to develop the forward-looking information and statements, and certain of the risks
that could cause the actual results to differ materially are presented in the “Platreef 2016 Resource Technical Report”
dated June 24, 2016, available on SEDAR at www.sedar.com and on the Ivanhoe Mines website at
www.ivanhoemines.com.
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.