Ivanhoe Mines’ Updates on their Platreef Project in South Africa

The Platreef Project is owned by Ivanplats (Pty) Ltd (Ivanplats), which is 64%-owned by Ivanhoe Mines. A 26% interest is held by Ivanplats’ historically disadvantaged, broad-based, black economic empowerment (B-BBEE) partners, which include 20 local host communities with approximately 150,000 people, project employees and local entrepreneurs. A Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation, and Japan Gas Corporation, owns a 10% interest in Ivanplats, which it acquired in two tranches for a total investment of $290 million.

The Platreef Project hosts an underground deposit of thick, platinum-group metals, nickel, copper, and gold mineralization on the Northern Limb of the Bushveld Igneous Complex in Limpopo Province – approximately 280 kilometres northeast of Johannesburg and eight kilometres from the town of Mokopane.

On the Northern Limb, platinum-group metals mineralization is primarily hosted within the Platreef, a mineralized sequence traced for more than 30 kilometres along the strike. Ivanhoe’s Platreef Project, within the Platreef’s southern sector, is comprised of two contiguous properties: Turfspruit and Macalacaskop. Turfspruit, the northernmost property, is contiguous with, and along strike from, Anglo Platinum’s Mogalakwena group of mining operations and properties.

Since 2007, Ivanhoe has focused its exploration and development activities on defining and advancing the down-dip extension of its original discovery at Platreef, now known as the Flatreef Deposit, which is amenable to highly mechanized, underground mining methods. With Shaft 1, the initial access to the deposit, now in operation and hoisting development rock from underground, Ivanhoe is focusing on construction activities to bring Phase 1 of Platreef into production by Q3 2024.

Platreef development is currently funded by $300-million stream financing, with efforts to finalize additional senior debt facility targeted for completion in the first half of 2023.

Surface construction activities are underway, while lateral underground mine development is progressing well

Underground development work has been focused on the vertical development of waste passes between the 750-metre, 850-metre and 950-metre levels, and lateral development towards the orebody, as well as lateral development required for underground infrastructure on each level including access to the bottom of Shaft 3 on the 950-metre level. Shaft 3 is currently being reamed and is planned to be complete in Q4 2023. More than 750 metres of lateral development has been completed across all three levels, as well as over 200 metres of vertical development between the three levels.

Construction for Platreef’s Phase 1 concentrator has commenced, with the first production on schedule for Q3 2024. Earthworks construction is now underway, with mill foundation civil activities advancing well. Long-lead equipment orders were placed with the majority of items to be delivered during the third quarter of 2023. The structural steel, piping and plate work (SMPP) contractor has been appointed and mobilization to the site is expected in mid-March 2023. Over 650 tonnes of structural steel are in fabrication, with over 150 tonnes ready for delivery.

Concrete pouring for Platreef’s Phase 1 concentrator is underway, showing foundations for the concentrate thickener and tailings thickener in the foreground and flotation cells in the background.

Construction of Platreef’s first solar-power plant commenced in Q3 2022 with commissioning expected in 2023. The solar-generated power from the plant will be used for mine development and construction activities.

The 10-metre diameter Shaft 2, which is required for the Phase 2 expansion, will be among the largest hoisting shafts on the African continent and is currently under construction. Construction during the quarter included the 104-metre-tall headframe, which commenced in December 2022 on schedule. Shaft 2’s headframe will be equipped with up to 8 Mtpa of hoisting capacity. The headgear concrete slide construction commenced in November 2022 with more than 70 metres of the 104 metres in total completed to date.

Shaft 2 headgear slide under construction (on the right), next to Shaft 1 headgear (on the left), which has been used for hoisting since February 2022. More than 70 metres of the 104-metre Shaft 2 headgear have been completed to date.

Ivanhoe Mines executive team members, together with investors, on the 950-metre-level standing in front of the 5.1-metre reamer head that recently commenced the raise boring of Shaft 3.

Underground mining crew working on lateral development on the 950-metre level.

Marna Cloete, President of Ivanhoe Mines, joined by executive management and investors, starting the pilot drill hole for the raise boring of Shaft 2 (in the background). Shaft 2 will have a hoisting capacity of up to 8 Mtpa.

The drilling of the pilot drill in Shaft 2 down to the mine’s workings commenced in the first quarter of 2023 and is on schedule to finish during the second quarter, whereafter reaming of a 3.1-metre diameter hole is planned. Raise-boring of the 5.1-metre-diameter ventilation shaft (Shaft 3) also commenced in the first quarter of 2023. Reaming is expected to be completed in Q4 2023.

Construction of the Masodi Wastewater Treatment Plant is on schedule for completion in Q3 2023. Treated water from the facility available for offtake will be sufficient for Platreef’s Phase 1 and Phase 2 water requirements.

Ivanhoe Mines commences optimization work to potentially accelerate Platreef’s Phase 2 expansion

Ivanhoe has initiated optimization work to identify value-accretive options for installing hoisting capacity in Shaft 3. Shaft 3, which is currently under construction and was originally planned as a ventilation-only shaft, with a diameter of 5.1 metres, is now planned to be equipped for hoisting which provides an alternative option to remove ore and waste from the underground mine. This has the benefit of de-risking the development and ramp-up of the Phase 1 mine and may be used to accelerate the ramp-up of underground mining activities for Phase 2, in advance of the completion of Shaft 2, which is expected in 2027.