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Canada’s Ivanhoe Mines (TSX:IVN) said Monday that drilling on its Western Foreland licences in the Democratic Republic of Congo, immediately north of the company’s flagship Kamoa-Kakula copper project, has hit several extensions of the mine.
The Vancouver-based company, which recently received a C$612 million ($465m) cash injection from China’s state-owned CITIC Metal to fast-track the vast copper project into production, said the find extends the strike length of the shallow, thick copper discovery to at least 550 metres north.
It also shows that the Kamoa far north high-grade shallow copper corridor goes on for at least 400 metres.
New assays return copper grades up to 13.80% over 15.50 metres in the central discovery area, the company said.
“Discovery of KPS-hosted mineralization at Kamoa North opens the door to multiple exploration opportunities at Kamoa-Kakula and the adjoining Western Foreland ground”
Robert Friedland, Ivanhoe Mines’ founder and executive chairman.
“Given the shallow depth of the Kamoa North mineralization and the remarkable copper grades and thicknesses encountered to date, Kamoa-Kakula’s engineering team already is working on conceptual development plans to access the ultra-high-grade mineralization,” billionaire Robert Friedland, the company’s founder and executive chairman said in the statement.
“Kamoa North Bonanza and Kamoa Far North are just getting started. These two zones clearly have room to continue to expand,” BMO analyst, Andrew Mikitchook, said in a note to investors. “Of most impact will be additional Bonanza-style cores of high-grade mineralization.”
Friedland, who made his fortune from the Voisey’s Bay nickel project in Canada in the 1990s, has said the capacity of the project’s first phase could later be easily tripled. He believes Kamoa-Kakula has the potential to become the world’s second-largest copper mine.
When fully developed, the mining complex could produce 382,000 tonnes of copper a year during the first 10 years, climbing to 700,000 tonnes of copper after 12 years of operations. Friedland believes it could restore the DRC to its historical position as one of the world’s top copper producing countries.
Ivanhoe Mines has been working on Kamoa-Kakula for ten years. In 2015, its now partner Zijin Mining Group, China’s No.1 gold producer got on board by acquiring a stake in the company. Citic Metal followed suit last year, becoming Ivanhoe’s largest shareholder.
Shares in Ivanhoe jumped 1.5% on the news to C$4.15 in in Toronto early in the day. Year-to-date, the stock is up a whooping 76%, valuing the company at about C$4.2 billion ($3.2 billion).
Comments
SOPHIE MELLISSA CHIBALE IMASIKU
Heartfelt congratulations Mr. Friedland. Sincerely Kamoa-Kakula has the potential to become the world’s second-largest copper mine. and could restore the DRC to its historical position as one of the world’s top copper producing countries! I worked tirelessly at Rhokana Copper Mines, changed to Nkana Copper Mines and later ZCCM Copper Mines in Kitwe, Zambia, for more than 30 years, mainly in the Metallurgical plants. Even in such a harsh political environment, we were able to export copper via Lobito and Nacala ports. But now in this new political dispensation, there is so much political intervention/interference in the running of the Mines by people who have little knowledge about this lucrutive industry!! . Wishing you and your team all the best for the DRC.