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Ivanhoe extends Kamoa North bonanza zone

Developer Ivanhoe Mines (TSX: IVN) says drilling has confirmed its discovery zone of “bonanza-grade copper mineralisation” at Kamoa-Kakula continues over at least 350m.
Ivanhoe extends Kamoa North bonanza zone Ivanhoe extends Kamoa North bonanza zone Ivanhoe extends Kamoa North bonanza zone Ivanhoe extends Kamoa North bonanza zone Ivanhoe extends Kamoa North bonanza zone

Bornite mineralisation from DD1522, testing the eastern limit of the 350m zone, with assays pending

Staff reporter

The latest assay highlights from 10 holes at the Kamoa North bonanza zone include 13.6m at 18.48% copper from 208m, and 16.7m at 15.84% copper from 215m.

The zone at the joint venture project in the Democratic Republic of Congo was discovered in January with an "unprecedented" result of 22.3m at 13.05% copper.

Ivanhoe said it was moving quickly to establish a resource estimate, with the zone - 18km from Kamoa-Kakula's planned initial mine - having the potential to enhance initial cash flow.

The controlling growth structure is projected to extend onto Ivanhoe's adjacent, 100%-owned Western Foreland exploration licences.

Ivanhoe unveiled a "mind-boggling" prefeasibility study for Kakula in February, outlining a 6 million tonne per annum operation with an initial US$1.1 billion capex, an after-tax NPV (8% discount) of $5.4 billion and an IRR of 46.9%.

An updated preliminary economic assessment showed an alternate three-phase development, starting with Kakula, building to 12Mtpa with feed from the Kansoko mine and a further 6Mtpa from Kakula West.

Ivanhoe and Zijin Mining, both 39.6% owners, are co-funding Kamoa-Kakula's development.

The remainder is owned by the DRC government (20%) and Crystal River Global (0.8%).

Ivanhoe shares closed 4.4% higher on Friday to C$3.55, a 52-week high and capitalising it at $3.6 billion.

It is retracing its steps towards the $4 mark it was trading at in early 2018, before its share price slumped on changes to the mining code in the DRC, where it is also redeveloping the Kipushi zinc-copper-germanium-silver mine.