Kolwezi,
A total of 16,010 tonnes of copper in concentrate were produced (filtered product) and a total of 16,503 tonnes floated in the reporting month ended
The average floated concentrate copper grade in September improved to 55.7%, up from approximately 48% in August. A total of 46,764 tonnes of copper in concentrate had been produced year-to-date as of
Copper flotation recoveries improved to an average of 85.1% during September, up from an average of 83% during August. The Phase 1, steady-state-design copper recovery is approximately 86%, depending on ore feed grade.
A daily record copper recovery of 88.3% was achieved on
'There are a number of additional adjustments being incorporated into the Phase 1 processing circuit, which will enable the concentrator to achieve better results in the next quarter. These adjustments, which also will be incorporated into the Phase 2 processing circuit, should position us to achieve 2021 copper production in the upper end of our previous guidance of 80,000 to 95,000 tonnes. This gives us the confidence to raise the range to 85,000 to 95,000 tonnes.
'Mining production was steady at 384,000 tonnes produced from the Kakula and Kansoko mines. The mining teams now are well established and are able to consistently outperform our internal budget. We have established a solid base of skilled and motivated Congolese workers, who no doubt will carry us through the ramp-up of Phase 2 and subsequent expansions of our mining footprint. It also is encouraging to note that the Phase 2 concentrator construction remains solidly ahead of schedule and on budget.'
Ivanhoe's production guidance for contained copper in concentrate at Kamoa-Kakula in 2021 has been raised to 85,000 to 95,000 tonnes. The figures are on a 100%-project basis and metal reported in concentrate is prior to refining losses or deductions associated with smelter terms. The guidance assumes ramp-up continues in line with published technical disclosures.
Performance guarantee tests were successfully completed on the Phase 1 concentrator plant during the first three days of September. The performance tests involved a 72-hour continuous run at steady-state design, or above, ore throughput and grind.
Kamoa-Kakula is fast tracking the commissioning of an additional concentrate filter, which has been installed alongside the Phase 1 filter, to be able to take advantage of copper feed grades and milling rates in excess of design parameters. The additional concentrate filter is expected to be fully operational in early
Watch a new video showcasing the ramp-up of copper production at Kamoa-Kakula and the production of blister copper at the local
Phase 2 concentrator plant overall construction more than 50% complete, with the current focus on structural steel, mechanical, piping and platework (SMPP) erection and installation
Construction of the second 3.8-Mtpa concentrator plant (Phase 2) is progressing well, with the overall project more than 50% complete; engineering and procurement activities are effectively complete with fabrication at 86% complete. Civil construction works also are effectively complete, with the focus now on erection of structural steel and the installation of platework and equipment. A 400-tonne crane (the largest in the DRC) has arrived on site and has been used to lift the tailings thickener rake into position. The crane also will shortly be used to install the ball mills, the ball mill shells, girth gear and ball mill ends, all of which are on site.
The bulk of the 2,193 tonnes of structural steel and the 570 tonnes of platework is on site and the bulk of the 18,644 metres of piping is en route to site. The six-kilometre tailings return water piping has been delivered to site and installation is nearing completion. More than 418 truckloads of Phase 2 construction equipment and materials already have been delivered to site and another 49 truckloads are en-route. The Phase 2 concentrator remains on track for completion in Q3 2022.
Commissioning of the Phase 1 backfill is advancing well with C4 (hot commissioning) activities. More than 7,250 cubic metres of paste backfill have been pumped to an underground trial stope in the
Mining continues ahead of schedule, adding to the surface ore stockpiles
A total of 384,000 tonnes grading 5.58% copper was mined during the period from
The project's surface stockpiles now contain approximately 3.66 million tonnes of high-grade and medium-grade ore at an estimated, blended average of 4.73% copper. Contained copper in the stockpiles at the end of August now totals more than 173,000 tonnes (the current copper price is approximately
In September, crews began transporting high-grade ore from the surface stockpile near the Kakula southern decline directly to the Phase 1 concentrator plant or to the main surface stockpiles near the Kakula northern decline.
Kakula is projected to be the world's highest-grade major copper mine, with an initial mining rate of 3.8 Mtpa at an estimated, average feed grade of more than 6.0% copper over the first five years of operations, and 5.9% copper over the initial 10 years of operations. Phase 1 is expected to produce approximately 200,000 tonnes of copper per year, while the Phase 2 expansion is forecast to increase production to approximately 400,000 tonnes of copper annually. The project is on track to complete the Phase 2 expansion in Q3 2022. Based on independent benchmarking, the project's phased expansion scenario to 19 Mtpa would position Kamoa-Kakula as the world's second-largest copper mining complex, with peak annual copper production of more than 800,000 tonnes.
Study work advancing to accelerate Phase 3 mine and concentrator expansion
Study work for the Phase 3 mine and concentrator expansion is underway, which includes optimization work to determine mining production capacity and costs at the various mining areas on the Kamoa-Kakula complex, including expanded facilities at the
This work also will determine the optimal sizing of the Phase 3 concentrator, which was outlined as a further expansion of 3.8 Mtpa in the Kamoa-Kakula Integrated Development Plan announced in
Once the optimization work is completed, Kamoa Copper will advance into a more detailed phase of design and engineering work with its objective to accelerate the Phase 3 concentrator expansion.
In early
Early works related to the removal of sand from area around turbine 5 is in progress, which will allow the engineering team to complete the scoping work. Ivanhoe expects to soon be in a position to provide an update on the expected upgrading costs for turbine 5 as well as the expected timeline for completion of the upgrading project.
Turbine 5 is expected to produce 162 MW of renewable hydropower, providing the
Kamoa Copper partnership continues COVID-19 vaccination efforts for employees and residents who live in host communities
Kamoa-Kakula has successfully focused on prevention, preparation, and mitigation in managing the risks associated with COVID-19. Large-scale testing, combined with focused preventative measures, ensured that positive cases were quickly identified, isolated, and treated, with cross contamination kept to a minimum. Maintaining this high standard of risk management remains the main focus to prevent future cases.
With the support of the
The Kamoa COVID-19 hospital continues to treat patients when required, as construction progresses well for the expansion and upgrade of the primary healthcare wing. Kamoa-Kakula's highly experienced medical team applies the latest medical treatments, supported by a world-leading emergency response and paramedic team.
As the pandemic evolves, the medical team at the Kamoa hospital continues to review and update risk mitigation protocols, while ensuring that new medical advances are investigated and applied to protect the health and safety of employees and community members.
Qualified Persons
Disclosures of a scientific or technical nature regarding development scenarios at the
Other disclosures of a scientific or technical nature regarding the stockpiles in this news release have been reviewed and approved by
The stockpile grade estimates contained in this release are based upon bulk ore sampling from material being fed to the plant from surface stockpiles, and underground vertical channel sample profiles from recent development. Channel sample profiles are cut approximately 15 metres apart in 1-metre vertical increments across the full vertical exposure using a handheld grinder, with a 100-to-150-gram sample collected. The samples are pulverized at the project's onsite laboratory and analyzed using a portable XRF (pXRF) instrument. Kamoa Copper has routinely analyzed its exploration drill core for copper using pXRF, in addition to analysis at a commercial laboratory using four acid digest and ICP-OES. This data has demonstrated that pXRF results can be relied upon for grade control and run-of-mine sampling. Due to rounding, numbers presented throughout this news release may not add up precisely.
Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the
Kamoa-Kakula Integrated Development Plan 2020 dated
The technical report includes relevant information regarding the assumptions, parameters and methods of the mineral resource estimates on the
About
Kamoa-Kakula began producing copper concentrates in
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Forward-looking statements
Certain statements in this 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 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.
Such statements include without limitation, the timing and results of: (i) statements regarding Ivanhoe's guidance for contained copper in concentrate expected to be produced by Kamoa-Kakula for 2021 has been tightened to 85,000 to 95,000 tonnes; (ii) statements regarding the expectation that Phase 2 of the project's development when the Kakula concentrator processing capacity doubles to 7.6 Mtpa is to be commissioned in Q3 2022; (iii) statements regarding Kakula is projected to be the world's highest-grade major copper mine, with an initial mining rate of 3.8 Mtpa at an estimated, average feed grade of more than 6.0% copper over the first five years of operations and 5.9% copper over the initial 10 years of operations; (iv) statements regarding Kamoa-Kakula's Phase 1 is expected to produce approximately 200,000 tonnes of copper per year, and Phases 1 and 2 combined are forecast to produce approximately 400,000 tonnes of copper per year; (v) statements regarding based on independent benchmarking, the project's phased expansion scenario to 19 Mtpa would position Kamoa-Kakula as the world's second largest copper mining complex, with peak annual copper production of more than 800,000 tonnes; (vi) statements regarding Kamoa-Kakula will be among the world's lowest greenhouse gas emitters per unit of copper produced; (vii) statements regarding the adjustments being incorporated into the Phase 1 processing circuit should position Kamoa-Kakula to achieve 2021 copper production in the upper end of the previous guidance of 80,000 to 95,000 tonnes; (viii) statements regarding approximately one half of the mine's tailings will be sent back underground; and (ix) statements regarding an upgraded turbine 5 at Inga II is expected to produce 162 megawatts of renewable hydropower, providing the
As well, all of the results of the Kakula definitive feasibility study, the Kakula-Kansoko pre-feasibility study and the Kamoa-Kakula preliminary economic assessment, constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the
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 below and under 'Risk Factors', and elsewhere in this release, as well as 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 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 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 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 release.
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