Ivanhoe Mines activity updates on Kipushi Zinc Mine in the DRC

The Kipushi zinc-copper-germanium-silver-lead mine in the DRC is adjacent to the town of Kipushi, approximately 30 kilometres southwest of Lubumbashi on the Central African Copper Belt. Kipushi is approximately 250 kilometres southeast of the Kamoa-Kakula Copper Complex and less than one kilometre from the Zambian border.

Ivanhoe acquired its 68% interest in the Kipushi Project in November 2011, through Kipushi Holding which is 100%-owned by Ivanhoe Mines. The balance of 32% in the Kipushi Project is held by the state-owned mining company, Gécamines.

In Q1 2022, Kipushi Holding and Gécamines signed a new agreement to return the ultra-high-grade Kipushi Mine to commercial production. The new agreement sets out the commercial terms that will form the basis of a new Kipushi joint-venture agreement establishing a robust framework for the mutually beneficial operation of Kipushi for years to come and is subject to execution of definitive documentation.

Once the agreement is concluded, it is anticipated that Ivanhoe Mines’ ownership in the Kipushi Project will reduce to 62%, with Gécamines holding the balance of 38%.

Kipushi will be the world’s highest-grade major zinc mine, with an average head grade of 36.4% zinc over the first five years of production.

Surface construction activities are advancing on schedule to return Kipushi to production in Q3 2024

Detailed design for the Kipushi concentrator and associated surface infrastructure is effectively complete, with procurement activities well advanced.

Orders for all twelve long lead items of equipment have been placed, as well as the contract for the supply and installation of structural steel, piping and plate work (SMPP). Long lead order equipment packages are expected to commence delivery to the site in late summer.

This includes the ball mill, currently being fabricated by CITIC in China. Construction work on site is advancing on schedule, with earthworks effectively complete and civil work advancing well. First concentrate is on schedule to occur during Q3 2024.

Civil work on the foundations for Kipushi’s processing plant is progressing on schedule. Shaft 5, its head frame in the background, will haul ore to the surface and an overland conveyor will stockpile it on a new run-of-mine (ROM) pad (left of picture).

Underground development work at Kipushi advancing ahead of schedule, access drive development focused around the top of the Big Zinc orebody

Underground mine development around Kipushi’s Big Zinc orebody is advancing ahead of schedule. Stope perimeter drives are being developed on the 1,245m, 1,260m, 1,290m and 1,320m levels, with stope access development at the 1,335-metre level advancing well. Waste rock and low-grade mineralized rock from the advancement of the perimeter and access drives are being hoisted to the surface through Shaft 5 and stockpiled.

Shaft 5 is planned to be the main production shaft once operations commence, with a maximum hoisting capacity of up to 1.8 Mtpa. The bottom of Shaft 5 provides primary access to the lower levels of the mine, including the Big Zinc orebody, along the 1,150-metre haulage level.

Mining will be conducted using highly productive, mechanized methods. Cemented rock fill will be utilized to backfill open stopes, with tailings from the surface, to reduce surface tailings and maximize ore extraction. Ore is crushed underground, and conveyed to the base of the P5 shaft, where it will be hoisted to the surface and conveyed to the nearby run-of-mine stockpile, adjacent to the 800,000-tonne-per-annum concentrator.

Stoping of the Big Zinc orebody is expected to commence no later than early 2024, to build a high-grade ore stockpile ahead of processing plant commissioning in Q3 2024.

Bernice Monga Mutombo, Drill Operator, operating a drilling rig at the 1,220-metre level.

New commercial border crossing to provide a significant advantage to the Kipushi Mine and the local region

Ivanhoe signed a memorandum of understanding (MOU) with the provincial government of Haut-Katanga to study options for upgrading the DRC-Zambia border crossing in the town of Kipushi for commercial imports and exports. As part of the MOU, Ivanhoe agreed to complete a scoping study investigating various border options. The study has been completed and issued to the provincial government for consideration .

Results of the scoping study were presented and adopted by Ivanhoe Mines and Haut-Katanga, identifying a preferred option for the construction of a new border crossing and the rehabilitation of the existing border crossing. Further studies are underway on the Zambian road network to identify the preferred route to link Kipushi and facilitate efficient export to international ports.

A new commercial border crossing will provide a significant advantage to the Kipushi Mine as a direct means of importing materials and consumables, clearing customs, and will provide socio-economic benefits to the town and Province of Haut-Katanga. The border crossing will also benefit logistics for Kamoa-Kakula’s operations.

Work continues to improve processes for clearing copper and zinc products for export and to open alternative export border crossings between the DRC and Zambia, to alleviate congestion at the existing border crossings at Kasumbalesa and Sakania in Haut-Katanga Province.