Kakula Copper Mine underground development far ahead of schedule and surface processing plant advancing rapidly with 4,700-strong workforce Definitive Feasibility Study for the Kakula Mine, and an updated Integrated Development Plan for multiple expansions of the entire
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August 6, 2020
Kakula Copper Mine underground development far ahead of
schedule and surface processing plant advancing rapidly
with 4,700-strong workforce
Definitive Feasibility Study for the Kakula Mine, and an updated
Integrated Development Plan for multiple expansions of the entire
Kamoa-Kakula mining licence, nearing completion
Surface stockpiles now contain an estimated 116,000 tonnes
of ore grading 6.08% copper, plus 446,000 tonnes grading 2.73%
copper, including satellite stockpiles at Kakula South
and Kansoko
Kamoa-Kakula moves to level 2 of its COVID-19 safety measures,
in line with lifting of restrictions by the DRC government
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX:IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced today
that underground development at the Kakula Copper Mine continues to exceed
expectations with more than 18.7 kilometres now complete, which is 5.5 kilometres
ahead of schedule. In July, the mining team achieved 1,638 metres of underground
development – 257 metres ahead of plan for the month.
The majority of the development headings at the Kakula Mine currently are traversing
medium-grade sections of the orebody, with average grades ranging between 3% and
5% copper. Several development headings are in higher-grade zones averaging
between 5% and 8% copper, and this ore is being placed on a dedicated, high-grade
surface stockpile at Kakula North that currently totals approximately 116,000 tonnes
grading an estimated 6.08% copper. The lower-grade surface stockpiles at Kakula
North, Kakula South and Kansoko together contain an additional 446,000 tonnes
grading an estimated 2.73% copper.
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As Kakula’s underground development progresses over the next few months, the
majority of the working areas are expected to transition into the higher-grade ore zones
near the centre of the deposit that have copper grades approximately 5% to 8%.
The high-capacity ore conveyor system at the Kakula North declines, which has a
capacity of 2,000 tonnes per hour, is undergoing final commissioning and is expected
to begin continuous operations shortly. Once this happens, the ore mined in the
northern portion of the Kakula Mine will be combined and be placed on a blended
surface stockpile. The Kakula South and Kansoko declines are not equipped with
conveyor systems; as such, the ore mined from these deposits will continue to be
placed on separate surface stockpiles, based on copper grades.
First copper production at Kakula approximately one year away
Initial production at the Kakula Mine is scheduled for Q3 2021. Kakula is projected to be
the world’s highest-grade major copper mine with an initial mining rate of 3.8 million
tonnes per annum (Mtpa) at an estimated average feed grade in excess of 6% copper
over the first five years of operation.
The Kakula Mine will have one of the most favourable environmental footprints of any
tier-one copper mine. It will be powered by clean, renewable hydroelectricity and be
among the world's lowest greenhouse gas emitters per unit of copper produced. It also
will have a relatively tiny surface footprint as approximately 55% of the mine’s tailings
will be pumped back into underground workings.
The Kamoa-Kakula Project is unique as it combines ultra-high copper grades in thick,
shallow and relatively flat-lying deposits – allowing for large-scale, highly-productive,
mechanized underground mining operations.
More than 300 truckloads, consisting mainly of structural steel and equipment for
Kakula’s initial 3.8-million-tonne-per-annum processing plant, are expected to arrive at
the mine site before the end of August. Fabrication of the plant’s largest components –
two ball mills, each measuring 9.75 metres (32 feet) long and 6.1 metres (20 feet) in
diameter – has been completed at CITIC Heavy Industries’ factory in Luoyang, China,
and the third and final shipment of ball mill components is expected to be on-site by the
end of September.
“The construction team at Kakula, led by Mark Farren, Kamoa Copper’s CEO, has done
a fantastic job of keeping the project moving ahead at a rapid pace despite the logistical
challenges posed by COVID-19,” said Mr. Friedland. “With each passing month, we are
getting increasingly confident that we could be producing copper at Kakula ahead of
schedule.”
“We're in a good place at the moment, with the vast majority of the major equipment
needed to build the mine and processing plant already fabricated, and either at site, or
en route to site. Full credit goes to our entire team for implementing and adhering to
early and extraordinary measures to safeguard our workforce and mitigate the impact of
COVID-19 on the mine development and construction operations,” Mr. Friedland added.
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The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%),
Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC
government (20%).
Mark Farren, Kamoa Copper’s Chief Executive Officer (left), and Rochelle De
Villiers (right), Kamoa Copper’s Co-Chief Financial Officer, with one of the mine’s
new Sandvik 63-tonne haul trucks. Mr. Farren and Mr. De Villiers are key
members of the mine’s on-site management team driving the project towards
completion.
Several of the recently arrived truck loads of equipment for the Kakula Mine.
An additional 300 truck loads are scheduled to arrive by the end of August.
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Aerial view of the Kakula Mine showing the tonnes and grade of the main pre-
production stockpiles. The high-grade stockpile currently contains
approximately 116,000 tonnes grading 6.08% copper, and the medium-grade
stockpile currently contains approximately 325,000 tonnes grading 2.94% copper.
As underground development progresses at the Kakula and Kansoko mines over
the next few months, the grade of the project’s three medium-grade stockpiles is
forecast to increase to between 3% - 5% copper.
Kakula southern decline and medium grade ore stockpile currently containing
approximately 75,000 tonnes grading 2.18% copper.
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Kansoko decline and medium-grade ore stockpile currently containing
approximately 46,000 tonnes grading 2.17% copper.
Kakula Mine development progressing towards zone of +8% copper in centre
of deposit
Underground development of the Kakula Mine, the first of multiple near-surface copper
deposits that are planned to be put into production on the 400-square-kilometre Kamoa-
Kakula mining licence, is well ahead of schedule. Mine access drives 1 and 2
(interconnected, parallel tunnels that will provide access to ore zones) continue to
advance towards the southern portion of the orebody.
Development also is well advanced on the eastern perimeter drives and the room-and-
pillar mining area. Development from the southern portal has reached south access
drives 1 and 2, with mining crews working to establish the connection of these drives
with mine access drives 1 and 2 from the north side of the orebody. The northern and
southern access drives are expected to be joined in Q4 2020.
Once the northern and southern access drives are connected, the majority of mining
activities will focus on the initial drift-and-fill mining blocks in the centre of the Kakula
deposit, where the average grade is higher than 8% copper. Drift-and-fill stoping is a
highly-efficient form of underground mechanized mining and will allow the operation to
recover significantly more tonnes from the orebody.
Underground mining also is taking place at the Kansoko Mine, located at the Kamoa
deposit, approximately 10 kilometres north of the Kakula Mine. More than 220 metres of
advancement was achieved at Kansoko during July by a young Congolese mining crew
undergoing training. A second mining crew will be added at Kansoko in August 2020 as
the project increases the pace of training new Congolese miners.
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The construction of Kakula’s second permanent underground water-handling system is
progressing well and commissioning is expected this month. The new system will add
800 litres per second of underground pumping capacity, bringing the total installed
capacity to 1,400 litres per second. As mine development progresses, additional
underground water dams are planned for the northern and southern perimeter drifts.
The independent Kakula definitive feasibility study (DFS) and an updated Integrated
Development Plan for the entire Kamoa-Kakula mining complex is expected to be
finalized shortly. The Integrated Development Plan will include details on the planned
expansion phases for the greater Kamoa-Kakula mining complex, incorporating updates
for mineral resources, production rates and economic analysis.
Basic engineering design and costing for Kamoa-Kakula’s planned Phase 2 expansion,
taking production from 3.8 Mtpa to 7.6 Mtpa, also is complete. The scope of facilities for
Phase 2 includes underground expansion at the Kakula Mine to reach an annual
production rate of 6 Mtpa, the expansion of mining operations at the Kansoko Mine to a
steady state 1.6 Mtpa, a second 3.8-Mtpa concentrator plant at Kakula, as well as
associated surface infrastructure to support the expansion at the various sites.
Figure 1: The 13.3-kilometre-long Kakula Deposit showing the first five years of
planned underground development and production (in the black box at the
eastern end of the deposit) focused on the pink area containing average copper
grades greater than 8% copper.
More detail of current underground development progress and planned
development to the end of September 2020 and to the end of December 2020, is
shown in figures 2, 3 & 4.
Kakula North
Decline
Kakula South
Decline
Figure 2: Underground development completed to the end of July (in black) and scheduled development
(green, brown, blue & black) until September 30, 2020. Shown are the 3%, 5% and 8% copper contours and the
location where the northern and southern access drives are scheduled to join in Q4 2020 (red star).
+3% copper
+5% copper
+8% copper
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Figure 3: Underground development completed to the end of July (in black) and scheduled mine development
over the three months ending December 31, 2020. Majority of the development during this period will be in the
initial drift-and-fill mining area within Kakula’s high-grade zone (+8% copper).
+8% copper
+3% copper
+5% copper