Ivanhoe Mines Reports Unprecedented 90-Metre Intersection of 4.51 Grams of
Platinum, Palladium, Rhodium and Gold Per Tonne, Plus 0.37%
Nickel and 0.20% Copper, at Flatreef, South Africa
Intercept includes a 40-metre section grading 6.88 grams of platinum,
palladium, rhodium and gold per tonne, plus 0.51% nickel and 0.21%
JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 10/16/13 -- Robert
Friedland, Executive Chairman of Ivanhoe Mines (TSX:IVN) (formerly
Ivanplats (TSX:IVP)), and Lars-Eric Johansson, Chief Executive
Officer, announced today that the company has intersected
mineralization containing 4.51 grams per tonne of platinum,
palladium, rhodium and gold (4PGE) over 90.64 metres (297 feet) at a
1 g/t 3PE cut-off in a recently drilled hole at the underground
Flatreef platinum, palladium, nickel, copper, gold and rhodium
discovery, which is part of the company's Platreef Project in South
Africa's Bushveld Complex.
The 90.64-metre intersection in Hole TMT006 also includes:
-- a 40.79-metre (134-foot) section grading 6.88 grams per tonne 4PGE at a
3g/t 3PE cut-off;
-- additional nickel and copper mineralization grading 0.37% nickel and
0.20% copper, plus a platinum-to-palladium ratio of approximately 1 to
1, over the entire 90-metre intersection.
"This is an extraordinary drill hole," said Mr. Friedland. "The
90-metre thickness of the intercept, which roughly is the same height
as a 30-storey building, is unprecedented at Flatreef and I believe
it also is without precedent in an underground platinum discovery in
"The scale of the mineralized intercept has obvious implications for
the contained PGMs and base metals in the open-ended Flatreef
poly-metallic discovery. The combined grade and thickness of the PGMs
and base metals mineralization seen in this hole far exceeds anything
we've previously encountered in all of our years of delineating
resources on our Platreef Project."
The gentle dips in the Flatreef Discovery area mean that the drilled
thickness approximates true thickness.
Hole TMT006 was collared approximately 360 metres south of the
location of the bulk-sample shaft, which recently received approval
to proceed from the South African government's Department of Mineral
Resources. The high-grade mineralization started at a depth of 803.43
metres below surface and continued to a depth of 894.07 metres. The
two mineralized reefs that comprise the uppermost mineralized portion
of the Flatreef Discovery - T1M and T2 - are adjacent to each other
in this area, which is a contributing factor to the size of the
Previous drilling by Ivanhoe Mines at the Flatreef Discovery produced
combined intercepts of the T1M and T2 zones that averaged 24 metres
in thickness. This is exceptional for the Bushveld, where many
underground platinum mines have averaged thicknesses of 0.4 to 1.5
Within the project area, the separation between the T1M and T2 reefs
varies considerably, but with a general thinning from east to west.
The separation between the T1M and the T2 reefs is controlled by the
thickness of the T1 feldspathic pyroxenite that can vary from a few
metres to more than 100 metres and appears to be controlled by
syn-intrusive structures. Drill holes adjacent to TMT006 also show
unusually thick mineralized intersections varying from 21.0 metres to
48.8 metres. What makes TMT006 exceptional is the extent and
continuity of the mineralization that extends into the footwall of
the T2 reef.
Hole TMT006 is one of seven metallurgical and geotechnical holes
drilled since June 2013 and for which Ivanhoe Mines has received
assay results. Assays from the initial seven holes are listed below
in Table 1. Rhodium assays are pending for holes TMT001 to TMT005,
and also for TMT007. In addition, individual assays of intercepts for
hole TMT006 are listed in Table 2 at the end of this release.
Additional assay results will be made available as they are received.
A Platreef Project map, showing the location of the seven new drill
holes relative to the bulk-sample shaft, is below Table 1.
The current development drilling program is being conducted in an
area around the site for the bulk-sample shaft that forms part of the
planned, initial five years of underground mining at Flatreef. The
company will use the results from the metallurgy and geotechnical
holes for feasibility study test work.
Ivanhoe Mines has 14 drill rigs at the Platreef Project, with nine
rigs drilling metallurgical/geotechnical holes and five exploration
rigs targeting a potential contiguous, high-grade mineralized zone to
the southeast of Flatreef's Zone 1. The exploration drilling program
is focused on delineating the target - Ga-Madiba - that is believed
to represent the southern continuation of the shallow Flatreef
Since drilling resumed at the Platreef Project in June 2013, a total
of 24,759 metres have been drilled in 22 holes and 11 deflections,
representing approximately 70% of the planned 2013 development
drilling program. Ivanhoe expects to complete the 2013 drilling
program in mid-December.
Ivanhoe Mines now has drilled more than 709,400 metres at the
Platreef Project since the prospecting rights for the Turfspruit and
Macalacaskop licences were acquired in February 1998.
To view Table 1: Ivanhoe Mines Platreef Project drilling results
October 2013 and a Map of Location of recent drill holes
TMT001-TMT007 relative to the bulk-sample shaft, please visit the
following link: http://media3.marketwire.com/docs/iva1016_T1-Map.pdf.
3-D seismic survey to better define shape and size of Flatreef
Ivanhoe Mines will undertake a 3-D geophysical seismic survey over
the Flatreef Discovery before beginning site preparation work for the
bulk-sample shaft. The seismic survey is expected to begin later this
week and be completed in early November 2013.
Mr. Johansson said that it has become standard practice at many South
African mines to conduct 3-D seismic surveys prior to sinking new
shafts or beginning major underground developments. The seismic
survey will provide Ivanhoe's engineers with high-resolution imaging
of the Flatreef mineralized zones ahead of the planned mining
Preparation of site bulk-sample shaft to begin in December
Terrace and collar designs for the 7.25-metre-diameter bulk-sample
shaft (Shaft #1) have commenced and contractor mobilization and site
preparation is expected to start in December, once the preliminary
results have been received from the 3-D survey. Approximately 250
contract employees will be working on the shaft once the sinking work
begins. The vertical shaft will extend to a depth below surface of
800 metres and facilitate the collection of a mineralized bulk sample
in the second half of 2015 to complete the company's development
assessment of the Flatreef.
Shaft #1, including some initial lateral underground development
work, is expected to cost US$80 million (ZAR 818 million), which is
expected to be fully funded from the approximately US$180 million in
dedicated funds remaining in Ivanhoe's treasury from the US$280
million received in 2011 for the sale of an 8% interest in the
Platreef Project to a Japanese consortium of Itochu Corporation,
Japan Oil, Gas and Metals National Corporation (JOGMEC) and JGC
Ivanhoe Mines is working with the Japanese consortium on an
integrated Flatreef development plan based on an exclusively
underground mining operation of up to 12 million tonnes pe
utilizing multiple shafts. The study is expected to be completed late
this year or early next year.
South Africa-based Aveng Mining, the sinking contractor for Shaft #1,
has been working on shaft engineering and design since June 2013.
Mr. Johansson said that when the shaft sinking begins, the Platreef
Project will directly employ approximately 550 workers, including
full-time staff, drillers and shaft-sinking contractors.
About the Platreef Project
The Platreef Project is a Tier One discovery of platinum-group
elements, nickel, copper and gold that contains the Flatreef
underground deposit, on the Bushveld's Northern Limb, north of the
town of Mokopane and approximately 280 kilometres northeast of
Johannesburg. The project is located on two contiguous rights,
Turfspruit and Macalacaskop, which adjoin Anglo Platinum's
Mogalakwena mining operations.
In June 2013, Ivanhoe Mines filed a Mining Right Application (MRA)
for the Platreef Project with the Department of Mineral Resources. A
Mining Right allows a company to mine and process minerals optimally
from the mining area for a period of 30 years, which may be extended
The Flatreef Mineral Resource, with a strike length of six
kilometres, predominantly lies within a flat to gently dipping
portion of the Platreef mineralized belt at relatively shallow depths
of approximately 700 to 1,100 metres below surface.
The Flatreef Deposit is characterized by its very large vertical
thicknesses of high-grade mineralization and the
platinum-to-palladium ratio of approximately 1:1, which is
significantly higher than other PGM discoveries on the Bushveld's
Northern Limb. The grade shells used to constrain mineralization in
the Flatreef Indicated Resource area have average true thicknesses of
approximately 24 metres at a 2.0 grams per tonne (g/t) 3PE
(platinum-palladium-gold) cut-off grade, with an equivalent average
resource grade of 4.1 g/t 4PE (platinum-palladium-gold-rhodium),
0.34% nickel and 0.17% copper. Flatreef's Indicated Mineral Resources
of 214 million tonnes contain an estimated 28.5 million ounces of
platinum, palladium, gold and rhodium, 1.6 billion pounds of nickel
and 800 million pounds of copper.
At the same cut-off of 2.0 g/t 4PE, the latest Flatreef estimate
includes Inferred Mineral Resources of 415 million tonnes grading 3.5
g/t 4PE, 0.33% nickel and 0.16% copper, containing an estimated
additional 47.2 million ounces of platinum, palladium, gold and
rhodium, 3.0 billion pounds of nickel and 1.5 billion pounds of
copper. Inferred mineral resource estimates, under the CIM
guidelines, do not have demonstrated economic viability and may never
achieve the confidence to be mineral reserve estimates or to be
Qualified Person, Quality Control and Assurance
The scientific and technical information in this release has been
reviewed and approved by Stephen Torr, Ivanhoe Mines' Vice President,
Project Geology and Evaluation, a Qualified Person under the terms of
National Instrument 43-101. Mr. Torr has verified the data disclosed
in this press release.
Base metals and other major elements assays were determined by
multi-acid digestion with ICP finish and PGEs were determined by
conventional fire assay and ICP finish at Ultra Trace Geoanalytical
Laboratories in Perth, Australia, an ISO 17025-accredited laboratory.
Ivanhoe Mines utilized a well-documented system of inserting blanks
and standards into the assay stream and has a strict chain of custody
and independent laboratory re-check system for quality control. For
detailed information about data verification measures used to support
the scientific and technical information, please refer to the current
technical report on the Platreef Project on the SEDAR profile of
Ivanhoe Mines at www.sedar.com.
In March 2013, Ivanplats received an independent Technical Report for
the Flatreef Deposit. The Technical Report, prepared by AMEC in
accordance with CIM Guidelines and directed by AMEC Technical
Director Dr. Harry Parker, is available at www.ivanhoemines.com and
About Ivanhoe Mines
Ivanhoe Mines (TSX:IVN) (formerly Ivanplats (TSX:IVP)), with offices
in Canada, the United Kingdom and South Africa, is advancing and
developing its three principal projects:
-- The Kamoa copper discovery in a previously unknown extension of the
Central African Copperbelt in the DRC's Province of Katanga.
-- The Platreef Discovery of platinum, palladium, nickel, copper, gold and
rhodium on the Northern Limb of the Bushveld Complex in South Africa.
-- The historic, high-grade Kipushi zinc, copper and germanium mine, also
on the Copperbelt in the DRC and now being dewatered and upgraded to
support a future return to production of copper, zinc and other metals
following a care-and-maintenance program conducted between 1993 and
Ivanhoe Mines also is evaluating other opportunities as part of its
objective to become a broadly based international mining company.
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors disclosed here and elsewhere in the company's periodic
filings with Canadian securities regulators. When used in this
document, the words such as "could", "plan", "estimate", "expect",
"intend", "may", "potential", "should" and similar expressions, are
forward-looking statements. Information provided in this document is
necessarily summarized and may not contain all available material
Statements in this release that constitute forward-looking statements
or information include, but are not limited to: statements regarding
additional assay results will be made available as they are received;
statements regarding the company will use the results from the
metallurgy and geotechnical holes for Feasibility Study test work;
statements regarding Ivanhoe expects to complete the 2013 drilling
program in mid-December; statements regarding Ivanhoe Mines will
undertake a 3-D geophysical seismic survey over the Flatreef
Discovery prior to beginning site preparation work for the
bulk-sample shaft and that the survey is expected to be completed in
early November; statements regarding contractor mobilization and site
preparation for the 7.25-metre-diameter Shaft #1 is expected to begin
in mid-November and that approximately 250 contract employees will be
working on the shaft once the sinking work begins; statements
regarding the shaft will extend to a depth below surface of 800
metres and facilitate the collection of a mineralized bulk sample in
the second half of 2015; statements regarding Shaft #1 is expected to
cost US$80 million (ZAR 818 million), which is expected to be fully
funded from the approximately US$180 million in dedicated funds
remaining in Ivanhoe's treasury; statements regarding integrated
Flatreef development plan is expected to be completed late this year
or early next year; and statements regarding that when the shaft
sinking begins, the Platreef Project will directly employ
approximately 550 workers, including full-time staff, drillers and
shaft sinking contractors.
All such forward-looking information and statements are based on
certain assumptions and analyses made by Ivanhoe Mines' management in
light of their expe
rience and perception of historical trends,
current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
These statements, however, are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information or statements. Important factors that
could cause actual results to differ from these forward-looking
statements include those described under the heading "Risk Factors"
in the company's most recently filed MD&A. Readers are cautioned not
to place undue reliance on forward-looking information or statements.
To view Table 2: Individual assays for Hole TMT006 (approximately
one-metre intercepts), please visit the following link:
Ivanhoe Mines - Investors
Ivanhoe Mines - Media
Ivanhoe Mines - Media
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