Search Results for "Africa"

East Africa Metals Announces SinoTech Elects to Exercise $805,000 in Warrants

VANCOUVER, BC–(Marketwired – August 23, 2016) – East Africa Metals Inc. (TSX VENTURE: EAM) (“East Africa” or the “Company”) is pleased to report that long time shareholder SinoTech (Hong Kong) Corporation Limited (“SinoTech”) has elected to exercise 3,500,000 warrants at a price of $0.23 realizing $805,000 CDN for the Company. The exercise will bring SinoTech’s total holdings to 37,788,062 or 32.1% of the Company. SinoTech is a private share company incorporated October 26, 2010, that has supported East Africa’s advancement activities for a number of years.

The proceeds will be used for ongoing technical, permitting and exploration expenditures as the Company prepares to advance the Terakimti Oxide Gold Project to the development stage, and prepare the Mato Bula and Da Tambuk deposits for mine permitting.

East Africa’s management anticipates an active Fall program on the development and exploration fronts as the Company looks to address corporate objectives including; completion of mine permitting, close project financing and on receipt of the mining permit initiate development for the Terakimti Oxide Gold project, the initiation of operations at Magambazi in Tanzania, and continuing to grow the Company’s mineral resource base in Ethiopia through exploration and definition drilling.

The Company’s current resource base in Ethiopia comprises 926,000 gold equivalent ounces in the indicated category plus 860,000 gold equivalent ounces in the inferred category (see table below and news release dated June 29, 2016) from Terakimti, Mato Bula and Da Tambuk. Exploration targets planned to be tested to continue the growth of the resource base include the VTEM09 and Mayshehagne prospects, and additional targets along the largely underexplored Mato Bula/Da Tambuk trend.

“The continued support of SinoTech as we develop our Ethiopian assets is greatly appreciated”, stated Andrew Lee Smith, Company President and CEO. “East Africa Metals expects to continue to benefit from the contributions of our Beijing-based partner as we continue to advance the Harvest and Adyabo Projects”.

East Africa’s Mineral Resources at Harvest (Terakimti) and Adyabo Projects

Project Ownership Resource Summary
Adyabo 3(Indicated) 100% 446K Ounces AuEquiv
Adyabo 3(Inferred) 100% 434K Ounces AuEquiv
Terakimti Oxide Update 1 (Indicated) 70% (Permit Pending) 132K Ounces AuEquiv
Terakimti Sulphide 2 (Indicated) 70% 348K Ounces AuEquiv 139M lbs CuEquiv
Terakimti Sulphide 2 (Inferred) 70% 426K Ounces AuEquiv 170M lbs CuEquiv

The resources stated above have been previously disclosed in News Releases. (Terakimti Initial Resource Estimate disclosed via news release dated January 27, 2014; effective date January 17, 2014. Terakimti Gold Oxide disclosed via news release October 27, 2015; effective date October 18, 2015. Subsequent to the release of the Terakimti Gold Oxide Resource update, a review by the resource QP identified an error in the tabulation of mineral resources. The corrected resource information was disclosed via news release on January 11, 2016. Adyabo project updated mineral resource estimate disclosed via news release dated June 14, 2016; effective date May 31, 2016).

1Terakimti Gold Oxide Resource update disclosed October 27, 2015; effective date October 18, 2015. Full mineral resource estimate disclosure can be found in the company’s news release dated October 27, 2015, available at www.eastafricametals.com or at www.sedar.com. Subsequent to the release of the Terakimti Gold Oxide Resource update, a review by the resource QP identified an error in the tabulation of mineral resources. The corrected resource information was disclosed via news release on January 11, 2016. Metal prices for gold and silver are $1,300/oz and $17.50/oz, respectively.

2Terakimti Initial Resource Estimate disclosed via new release dated January 27, , 2014; effective date January 17, 2014. Full mineral resource estimate disclosure can be found on the company’s website or at www.sedar.com. Metal prices for gold, silver, copper, and zinc are $1,400/oz, $25.00/oz, $3.50/lb, and $0.90/lb, respectively.

3Adyabo project updated mineral resource estimate disclosed via news release dated June 14, 2016; effective date May 31, 2016. Metal prices for gold, silver, and copper are $1,400/oz, $20.00/oz, and $3.20/lb, respectively. Metallurgical recoveries of 88.5% for gold, 87.5% for copper and 50% for silver were applied at Mato Bula and Mato Bula North. Metallurgical recoveries of 97% for gold, 72% for copper, and 50% for silver were applied at Da Tambuk.

Gold Equivalent grade calculator (Au, Ag, Cu):Au g/t + (Ag g/t*$Au/$Ag) + (Cu %*22.0462*$Cu)/($Au/31.1035)|||Gold Equivalent grade calculator (Au, Ag, Cu, Zn):Au g/t + (Ag g/t*$Au/$Ag) + (Cu %*22.0462*$Cu)/($Au/31.1035) + (Zn %*22.0462*$Zb)/($Au/31.1035)|||Copper Equivalent grade calculator (Cu, Au, Ag):Cu % + ((Au g/t*$Au)+(Ag g/t*$Ag)/(22.0462*$Cu*31.0135)|||Copper Equivalent grade calculator (Cu, Au, Ag, Zn):Cu % + ((Au g/t*$Au)+(Ag g/t*$Ag)/(22.0462*$Cu*31.0135) + Zn%*$Zn/$Cu|||31.1035 is a grams/ounce conversion factor. 22.0462 is a tonne/pound conversion factor.

About East Africa

The Company’s principal assets and interests include both the 70%-owned Harvest polymetallic VMS exploration Project, which hosts the Terakimti Deposit and which covers approximately 86 square kilometres in the Tigray region of Ethiopia, 600 kilometres north‐northwest of the capital city of Addis Ababa, and the Adyabo Project, hosting the Mato Bula trend Adyabo Resource, covering 225 square kilometres immediately west of the Harvest Project. The Company owns 80% of the Adyabo Project, and upon execution of a net smelter return agreement the Company will own 100% of the Adyabo Project, subject to a 2% NSR. East Africa now has mineral resources defined at both projects in Ethiopia and plans to continue to test priority targets. Additionally, the Company owns the 91 square kilometre Handeni Property located in north-eastern Tanzania. Handeni includes the Magambazi Project, a gold deposit discovered in 2009. East Africa has entered into a definitive agreement with an arm’s length private exploration and development company to advance the project.

More information on the Company can be viewed at the Company’s website: www.eastafricametals.com. Jeff Heidema, P.Geo., a Qualified Person under the definitions of National Instrument 43-101, has reviewed and approved the contents of this news release.

On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO

Cautionary Statement Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”, “could”, “might”, “should” or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by East Africa as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of East Africa to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of the Terakimti Gold Oxide Resource mining permit; closing of project finance; early exploration; the closing of the agreement with the exploration and development company to advance the Magambazi Project or identify any other corporate opportunities for the Company; mineral exploration and development; metal and mineral prices; availability of capital; accuracy of East Africa’s projections and estimates, including the initial mineral resource for the Adyabo, Harvest and Magambazi Projects; estimated exploration licence extensions; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; foreign taxation risks; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined, as well as those risk factors set out in East Africa’s management’s discussion and analysis for the year end December 31, 2015; management’s discussion and analysis for the three months ended March 31, 2016; East Africa’s listing application dated July 8, 2013 and Tigray Resources Inc. Management Information Circular dated March 28, 2014. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The contained gold, copper and silver figures shown are in situ. No assurance can be given that the estimated quantities will be produced. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the successful integration of Tigray Resources Inc.’s business with the Company; the price of gold, silver, copper and zinc; the demand for gold, silver, copper and zinc; the ability to carry on exploration and development activities; the timely receipt of any required approvals including mining permits; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, the renewal or extension of exploration licences, and such other assumptions and factors as set out herein. Although East Africa has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not update or revise forward looking information even if new information becomes available unless legislation requires the Company do so. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information contact:
Nick Watters
Business Development
Telephone +1 (604) 488-0822
Email investors@eastafricametals.com
Website www.eastafricametals.com

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Ivanhoe Mines Announces What Could Prove to Be Africa’s Most Significant Copper Discovery at Kakula on the Kamoa Copper Project in the Democratic Republic of Congo

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO–(Marketwired – Aug. 11, 2016) - Robert Friedland, Executive Chairman of Ivanhoe Mines (TSX:IVN), and Lars-Eric Johansson, Chief Executive Officer, today announced assay results from an additional eight holes of the ongoing 2016 drilling campaign at the Kakula Discovery on the company’s Tier One Kamoa Copper Project, near the mining centre of Kolwezi in the Democratic Republic of Congo (DRC).

“Earlier discoveries already have established Kamoa as the world’s largest, undeveloped, high-grade copper discovery,” said Mr. Friedland.

“Now, our latest drilling results indicate that Kakula, in the southern portion of the Kamoa Project, could prove to be Africa’s most significant copper discovery.”

The Kamoa Project became a joint venture between Ivanhoe Mines and Zijin Mining in December 2015.

“In 2003, Ivanhoe’s geologists started our initial exploration program at Kamoa, which at the time was nothing more than an unknown grass-roots prospect generated by our geological team and covered with a thin layer of Kalahari sand, sitting in a previously unrecognized district within the Central African Copperbelt,” said Mr. Friedland.

“We made our initial significant discovery at Kamoa in 2008. The quest, which by 2013 showed that Kamoa is the world’s largest, undeveloped, high-grade copper discovery, took more than 12 years of dogged exploration, dedicated geological and geotechnical expertise and a total investment of several hundred million dollars.”

Mr. Friedland added: “Our perseverance and eventual success in unlocking Kamoa’s world-scale potential was recognized by the Prospectors & Developers Association of Canada in March 2015 with the presentation of the prestigious Thayer Lindsley International Discovery Award to key members of the Ivanhoe Mines exploration team.

“However, given the remarkable exploration success we have had to date at the Kakula Discovery, as it has been progressively revealed during the past year, we believe that this new copper discovery is substantially richer, thicker and more consistent than other mineralization that we have found elsewhere on the Kamoa Project. The results speak volumes: The Kakula Discovery is a complete game changer in our planning for the development of the Kamoa Project.”

The DRC government holds a 5%, non-dilutable interest in the Kamoa Project, which was transferred to the government in 2012 in accordance with the DRC Mining Code. Ivanhoe also has offered to transfer an additional 15% interest to the DRC government on terms to be negotiated.

Mr. Johansson said constructive and cordial negotiations between Ivanhoe Mines, Zijin Mining and senior DRC government officials are continuing on this matter and Ivanhoe expects a mutually beneficial agreement to be achieved in the near future that will provide long-lasting, positive benefits to the DRC government and the Congolese people.

Development of initial mine at Kamoa progressing ahead of plan

Mr. Johansson also noted that underground mine development at Kamoa’s planned initial mining area at Kansoko Sud is progressing ahead of plan and within budgeted costs. The twin declines, incorporating both a service and a conveyor tunnel, each have advanced more than 130 metres since the first excavation blast occurred in May of this year. Development of the underground mine is designed to reach the high-grade copper mineralization at the Kansoko Sud deposit during the first quarter of 2017.

The planned Kansoko Sud initial mining footprint contains high-grade intercepts of up to 7.04% copper and a potential mining thickness of more than 15 metres. The mineralized horizon is expected to be intersected by the declines at approximately 150 metres vertically below surface, where initial mining operations will commence. Byrnecut Underground Congo SARL is the contractor for the development of the declines.

Independent Mineral Resource estimate for the Kakula Discovery expected around the end of Q3 2016

The primary objective of the current drilling program at Kakula is to confirm and expand a thick, flat-lying, bottom-loaded zone of very high-grade, stratabound copper mineralization at the southern part of the Kakula Discovery area (see Figure 1) that has the potential to be amenable to bulk, mechanized mining and have a significant, positive impact on the Kamoa Project’s future development plans. Ivanhoe expects to have an initial independent Mineral Resource estimate prepared for the Kakula Discovery around the end of Q3 2016.

Highlights of the latest drill results, which confirm the exceptional grades and shallow, flat-lying geometry of the Kakula mineralized zone, include:

  • DD1005 intersected 7.36 metres (true width) of 8.11% copper at a 2.5% copper cut-off, 10.13 metres (true width) of 6.52% copper at a 2% copper cut-off and 20.71 metres (true width) of 3.85% copper at a 1% copper cut-off.
  • DD1011 intersected 6.78 metres (true width) of 7.52% copper at a 2.5% copper cut-off, 11.01 metres (true width) of 5.47% copper at a 2% copper cut-off and 15.20 metres (true width) of 4.40% copper at a 1% copper cut-off.
  • DD1012 intersected 7.63 metres (true width) of 7.90% copper at a 2.5% copper cut-off, 13.76 metres (true width) of 5.36% copper at a 2% copper cut-off and 25.17 metres (true width) of 3.59% copper at a 1% copper cut-off.
  • DD1017 intersected 10.31 metres (true width) of 6.92% copper at a 2.5% copper cut-off, 10.31 metres (true width) of 6.92% copper at a 2% copper cut-off and 12.35 metres (true width) of 6.04% copper at a 1% copper cut-off.

Figure 1. Kamoa Project map shows the planned initial mining area at Kansoko Sud and the nearby Kakula exploration and discovery area: http://media3.marketwire.com/docs/1065612_fig1.jpg

Holes DD1011 and DD1017 are of particular importance, representing substantial step outs to the southeast and northwest, respectively (see Figure 2 legend and plan). Both holes intersected significant, bottom-loaded, Kakula-style mineralization and have expanded the high-grade core area of the Kakula target to at least two kilometres in length.

A full listing of additional drilling results is contained in Table 1, while hole locations are shown in Figure 2.

Figure 2. Kakula Discovery Area. Drill-hole location plan for the Kakula Area shows holes completed and in progress, superimposed on 1% composite grade thickness contours: http://media3.marketwire.com/docs/1065612_fig2.jpg

New drilling leads to a substantial expansion of the Kakula Discovery

In addition to the eight new holes for which assays were received, as shown in Table 1, Ivanhoe has completed an additional 28 holes in the Kakula Discovery area that are being processed and for which final assays are pending. Holes pending results include both infill and expansion drilling. The list of holes completed is shown in Table 2 and hole locations are shown in Figure 2.

Expansion drilling along the axis of this central high-grade core continues to intersect characteristic, bottom-loaded, chalcocite (nearly 80% copper by weight) mineralization associated with the basal siltstone layer. Significant step-out holes have been drilled in both directions along the axis and holes pending results are mentioned below. Ivanhoe cautions that the reporting of this visual mineralization does not confirm the extension of the high-grade zone; however, the presence of a similar style of mineralization as seen in other holes with high-grade assays is considered significant.

Drill hole DD1041 (assays pending) intersected a zone of well-mineralized diamictite between 611 metres and 617.153 metres below surface, before intersecting a zone of chalcocite-rich siltstone between 617.13 metres and 620.15 metres below surface (see Figure 3, below). This hole is located 550 metres southeast of the known high-grade zone at Kakula (southeast of hole DD1011).

Figure 3. Massive chalcocite mineralization at a depth of 619 metres in hole DD1041: http://media3.marketwire.com/docs/1065612_fig3.jpg

Hole DD1045 (assays pending) was drilled 550 metres northwest of DD1017 (10.31 metres of 6.92% copper at a 2.5% copper cut-off) and 420 metres south of DD930 (3.0 metres of 4.2% copper, at a 2.5% copper cut-off). DD1045 intersected a highly mineralized Kakula siltstone from 509.35 to 515.76 metres downhole, before passing through mineralized, clast-rich diamictite, then entering the footwall Mwashia sandstone at 518.09 metres downhole. The highest copper grades at Kakula typically are associated with the siltstone unit above the top of the Mwashia sandstone contact.

The combination of step-out holes DD1041 and DD1045 potentially extends the footprint of the well-mineralized Kakula Discovery zone to more than 3.1 kilometres in length.

Figure 4. Intense chalcocite mineralization in siltstone layer at a depth of 511.6 metres in hole DD1045: http://media3.marketwire.com/docs/1065612_fig4.jpg

Game-changing drill results lead to an expansion of the Kakula drilling program

As a result of the ongoing success of the Kakula program and the extension along trend of the central, well-mineralized, chalcocite-rich core to the northwest and southeast at relatively shallow depths, the Kakula drilling program has been expanded by an additional 9,000 metres, to a total of 34,000 metres of exploration drilling. As the full extent of the discovery becomes apparent, further expansions to the program will be accelerated. To help advance the ongoing exploration and delineation of the Kakula deposit, the Kamoa technical team is proceeding with the engineering and preparation of tender documents for the construction of a box cut at Kakula to accommodate decline ramps that will provide underground access to the deposit.

“To date, the deposit has grown with virtually every step-out hole we have drilled,” said Louis Watum, Kamoa Copper’s General Manager. “In a country known for its high-grade copper deposits, Kakula is quickly establishing itself as the exceptional discovery.”

The 60-square-kilometre Kakula exploration area is approximately 10 kilometres southwest of the Kamoa Project’s planned initial mining area at Kansoko Sud now being developed.

Kakula-style mineralization – consistently bottom-loaded and chalcocite dominant

The recent results support findings that mineralization at Kakula is consistently bottom-loaded, with grades increasing downhole toward the contact between the host Grand Conglomerate and the underlying Mwashia sandstone. The highest copper grades are associated with a siltstone/sandstone unit occurring within the Grand Conglomerate, located approximately one metre above the top of the Mwashia sandstone unit (see figures 10-13 for cross-sections across the Kakula Discovery area).

Mineralization displays vertical mineral zonation from chalcopyrite to bornite to chalcocite, with the highest grades associated with the siltstone unit consistently characterized by chalcocite-dominant mineralization (see Figure 5 for three schematic strip logs showing typical, Kakula-style mineralization).

“Kakula’s combination of thick intersections of very high-grade copper mineralization and the bottom-loading of the grade profile allows for the testing of a number of potential mining scenarios at different cut-offs,” said Mr. Johansson.

Figure 5. Strip logs of holes DD1011, 1017 and 997, showing typical, Kakula-style mineralization: http://media3.marketwire.com/docs/1065612_fig5.pdf

The consistent nature of Kakula mineralization supports the creation of selective, mineralized zones at cut-offs up to 2.5% and 3.0% copper. The recent assay results are shown at various cut-offs in Table 1, while the accumulations of copper and thicknesses of mineralized intercepts at 1%, 2.5% and 3.0% cut-offs are shown in figures 7, 8 and 9.

In parallel with the Kamoa 2016 pre-feasibility study, an alternative mining method – controlled-convergence room-and-pillar mining, developed by Poland-based KGHM – was investigated for its suitability for use on the Kamoa Kansoko deposits. The method has been successfully implemented by KGHM at its copper mining operations in Poland for the past 20 years. Given the thick, mineralized widths encountered to date in the Kakula drilling program, controlled-convergence room-and-pillar mining also will be investigated for its suitability for use at Kakula.

Figure 6. A 17-tonne loader in operation at an approximate six-metre-high, underground room-and-pillar potash mine in Canada (for illustration purposes only). Kamoa’s Kansoko Sud and Kakula deposits are expected to use similar underground mining methods and equipment: http://media3.marketwire.com/docs/1065612_fig6.jpg

Figure 7. Recent assay results at a 1% copper cut-off: http://media3.marketwire.com/docs/1065612_fig7.jpg

Figure 8. Recent assay results at a 2.5% copper cut-off: http://media3.marketwire.com/docs/1065612_fig8.jpg

Figure 9. Recent assay results at a 3% copper cut-off: http://media3.marketwire.com/docs/1065612_fig9.jpg

Figure 10. Cross-section A-A’ of Kakula Discovery area, showing true thicknesses of drill intercepts at a 2.5% copper cut-off: http://media3.marketwire.com/docs/1065612_fig10.jpg

Figure 11. Cross-section A-A’ of Kakula Discovery area, showing true thicknesses of drill intercepts at a 3.0% copper cut-off: http://media3.marketwire.com/docs/1065612_fig11.jpg

Figure 12. Cross-section B-B’ of Kakula Discovery area, showing true thicknesses of drill intercepts at a 2.5% copper cut-off: http://media3.marketwire.com/docs/1065612_fig12.jpg

Figure 13. Cross-section B-B’ of Kakula Discovery area, showing true thicknesses of drill intercepts at a 3.0% copper cut-off: http://media3.marketwire.com/docs/1065612_fig13.jpg

Table 1. Assay composites from newly released Kakula drill holes at various copper cut-offs: http://media3.marketwire.com/docs/1065612_tab1.pdf

Table 2. Collars of completed drill holes: http://media3.marketwire.com/docs/1065612_tab2.pdf

Kamoa Copper Project description

The Kamoa Copper Project, a joint venture between Ivanhoe Mines and Zijin Mining Group Co., Ltd., is a very large, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi. The Kamoa mining licence covers approximately 400 square kilometres.

In 2015, Ivanhoe sold a 49.5% share interest in Kamoa Holding Limited, the company that presently owns 95% of the Kamoa Project on an indirect basis, to Zijin Mining for an aggregate cash consideration of US$412 million. In addition, Ivanhoe sold a 1% share interest in Kamoa Holding to privately-owned Crystal River Global Limited for US$8.32 million, which Crystal River will pay through a non-interest-bearing, 10-year promissory note.

Kamoa is the world’s largest, undeveloped, high-grade copper deposit. On February 23, 2016, an updated Mineral Resource estimate was issued for the Kamoa Project, with an effective date of May 5, 2014. Kamoa’s Indicated Mineral Resources presently total 752 million tonnes grading 2.67% copper and containing 44.3 billion pounds of copper at a 1% copper cut-off grade and minimum thickness of three metres. In addition to the Indicated Resources, the updated estimate included Inferred Mineral Resources of 185 million tonnes grading 2.08% copper and containing 8.5 billion pounds of copper, also at a 1.0% copper cut-off grade and a minimum thickness of three metres.

Qualified Person and Quality Control and Assurance

The scientific and technical information in this release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines’ Vice President, Project Geology and Evaluation, and a Qualified Person under the terms of National Instrument 43-101. Mr. Torr has verified the technical data disclosed in this news release.

Ivanhoe Mines maintains a comprehensive chain of custody and QA-QC program on assays from its Kamoa Project. Half-sawn core is processed at Kamoa’s on-site preparation laboratory and prepared samples then are shipped by secure courier to Bureau Veritas Minerals (BVM) Laboratories in Australia, an ISO17025-accredited facility. Copper assays are determined at BVM by mixed-acid digestion with ICP finish. Industry-standard certified reference materials and blanks are inserted into the sample stream prior to dispatch to BVM. For detailed information about assay methods and data verification measures used to support the scientific and technical information, please refer to the current technical report on the Kamoa Copper Project on the SEDAR profile of Ivanhoe Mines at www.sedar.com.

About Ivanhoe Mines

Ivanhoe Mines is advancing and developing its three principal projects in Sub-Saharan Africa: the Platreef platinum-palladium-gold-nickel-copper discovery in South Africa; and the Kamoa copper discovery and the high-grade Kipushi zinc-copper-lead-germanium mine in the DRC. For details, visit www.ivanhoemines.com.

Cautionary statement on forward-looking information

Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including without limitation, the timing and results of: (1) statements regarding Ivanhoe’s discovery of what could prove to be Africa’s most significant copper discovery at Kakula; (2) statements regarding Ivanhoe’s belief that Kakula’s copper discovery is substantially richer, thicker and more consistent than other mineralization found elsewhere on the Kamoa Project; (3) statements regarding the Kakula Discovery being a game changer in the planning for the development of the Kamoa Project; (4) statements regarding the expectation to have an initial independent Mineral Resource estimate prepared for the Kakula Discovery around the end of Q3 2016; (5) statements regarding the primary objective of the current drilling program is to confirm and expand a thick, flat-lying, bottom-loaded zone of very high-grade copper mineralization at the southern part of the Kakula Discovery area that has the potential to have a significant, positive impact on the Kamoa Project’s future development plans; (6) statements regarding the planned expansion of the Kakula drilling program to 34,000 metres of drilling; (7) statements regarding the high-grade Kakula zone remains open to the southeast and northwest; (8) statements regarding the development of the twin declines at Kamoa and the expectation that development will reach the high-grade copper mineralization during the first quarter of 2017; (9) statements regarding the expectation that the mineralized horizon at Kansoko Sud is to be intersected by the declines at approximately 150 metres vertically below surface and the expectation that initial mining operations will commence in this location; (10) statements regarding the planned Kansoko Sud initial mining footprint contains potential mining thickness of more than 15 metres; (11) and statements regarding the timing and terms of transfer of an additional 15% interest in the Kamoa Project to the DRC government. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of this release.

All such forward-looking information and statements are based on certain assumptions and analyses made by Ivanhoe Mines’ management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe 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 including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, and the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading “Risk Factors” in the company’s most recently filed MD&A as well as in the most recent Annual Information Form filed by Ivanhoe Mines. Readers are cautioned not to place undue reliance on forward-looking information or statements. The factors and assumptions used to develop the forward-looking information and statements, and the risks that could cause the actual results to differ materially are set forth in the “Risk Factors” section and elsewhere in the company’s most recent Management’s Discussion and Analysis report and Annual Information Form, available at www.sedar.com.

This news release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i) fluctuations in platinum, palladium, gold, rhodium, copper, nickel or other mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies; (iv) changes to proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licences.

Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

Investors
Bill Trenaman
+1.604.331.9834Media
North America:
Bob Williamson
+1.604.512.4856

South Africa:
Jeremy Michaels
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“Act of Vandalism” at Nevsun’s Bisha Mine Reported as Ethiopian Bombing by African Media

An article put out by the Financial Post on Monday stated that what Nevsun Resources (TSX:NSU) reported as an “act of vandalism” at its Bisha Mine was actually an attack by Ethiopian fighter jets, according to reports from African Media. Nevsun reported only minor damage of the mine, but media outlets from Ethiopia and Sudan both reported that the Ethiopian air force bombed the mine.

Haywood Securities analyst Stefan Ioannou told the Post that he believed Nevsun’s representation of events, stating that there would have been “a lot more collateral damage” in the case of an air strike.

As quoted in the publication:

In a statement released Sunday, Nevsun said vandals caused minor damage to the base of a tailings thickener at the mine during the night shift on Friday, releasing water into the plant area.

But the Ethiopian news site Tigrai Online said it had confirmed a report that the Ethiopian air force bombed the mine on Friday. Sudanese newspaper Al-Sahafa was the first to report that the attack was a military operation from Ethiopia.

Click here to read the full article from the Financial Post.


Ivanhoe Mines Hires BMO and Morgan Stanley to Review African Copper Projects

Mining.com reported that Ivanhoe Mines (TSX:IVN) has hired Morgan Stanley & Co and BMO Capital Markets to act as financial advisors. BMO and Morgan Stanley will conduct a strategic review of Ivanhoe’s projects in the Democratic Republic of Congo.

As quoted in the publication:

In May the Vancouver, B.C.-based firm had said among the options it was evaluating to deal with insufficient funds for those ventures were splitting the company’s projects into separate publicly-traded entities, asset sales, joint ventures, or alternative stock exchange listings. A few days later it announced it had entered into agreements to raise C$150 million ($137.6 million) to develop the two projects.

Click here to read the full Mining.com article.


Copper in Africa: South Africa, DRC, Zambia

Copper in Africa: South Africa, DRC, ZambiaAfrica is one of the most important sources of copper in the world, with production coming primarily from Zambia, South Africa and the Democratic Republic of the Congo’s (DRC) Katanga Province. In 2008, South Africa produced 89,700 tonnes of copper while Zambia produced 131,400 tonnes, according to Mining Intelligence Database (MID).

Other copper mines in Africa can be found in Marrakech, Morocco, as well as in Cameroon and Botswana.

South Africa

South Africa is where commercial-scale copper mining in Africa started. In 1966, Palabora Mining Company (OTCMKTS:PBOAF) opened the region’s first open-pit copper mine in the Loolekop central zone in Northwestern South Africa. The mine has remained one of the largest and deepest open-pit mines in the world. Today, Palabora produces about 80,000 tonnes of copper a year.

Democratic Republic of the Congo

Katanga Province is located on the Central African Copperbelt and is known for its vast mineral resources, including copper, cobalttinuranium and diamonds. Copper is the province’s most important commodity.

One of the largest-scale copper miners in the DRC is Katanga Mining (TSX:KAT), which is working on two joint ventures Kamoto Copper Company (KCC) and DRC Copper and Cobalt Project (DCP).

KCC produced its first copper cathode at the end of 2007 once Phase I of a four-phase refurbishment of the brownfield site was complete, the company’s website states. Katanga aquired DCP in 2008 through its merger with Nikanor. Both ventures operate on adjacent properties in the DRC. Katanga is looking to merge KCC and DCP in the future.

Australia-listed Tiger Resources (ASX:TGS) is also a copper-cobalt producer in the DRC. Tiger is looking forward to producing its first 25,000-tpa copper cathode from the SXEW plant at the Kipoi project in the coming months. It is also planning for the next phase in the project’s development.

Also in the DRC is Ivanhoe Mines (TSX:IVN), which has been exploring in Africa since 1994. The company is working on developing two copper projects — the Kamoa copper project and Kipushi zinc-copper project — in the Central African Copperbelt.

Zambia

Zambia is Africa’s biggest copper producer. The metal accounts for more than 70 percent of the country’s export revenues.

Zambia’s mines minister, Yamfwa Mukanga, said in April that the country expects copper output to reach 1.1 million tonnes annually by 2015, an increase of 34 percent from current levels, according to Bloomberg. As of 2009, Zambia was the eighth-largest copper producer in the world, as per MID.

A major copper mine in Zambia is the Chibuluma South mine, which reached full production in July 2006, producing 40,000 tonnes of copper ore a month, Mining Weekly reported. The mine’s owner, Metorex (OTCMKTS:MRXLY), began commercial operations at the location a year earlier. The company is focused mainly on copper and cobalt production in the Central African Copperbelt. It produced 76,409 tons of copper in 2010.

Here are some snippets on a few of the other copper mining companies operating in Zambia:

  • First Quantum Minerals (TSX:FM): This mineral exploration and development company focuses on producing copper, gold, nickel and acid. One of its main projects is the Sentinel copper mine in Zambia, which is located in the northwest part of the country, approximately 93 miles west of Solwezi. The project spans nearly 600 miles. First Quantum received approval for the project in May 2012 and construction began shortly after. The mine is expected to have a lifespan of 15 years. It’s expected that Sentinel will have a production rate as high as 300,000 tonnes of copper annually during its first six years of activity.
  • Vedanta Resources (LSE:VED): In addition to copper mining, Vedanta is engaged in iron ore, zinc, aluminum and oil and gas exploration and development. Its projects include an integrated copper operation in Zambia that spans three mines: Konkola, Nchanga and Nampundwe. The company’s copper business is owned by Konkola Copper Mines. The Konkola underground copper mine has a minimum of a 24-year lifespan and produces a grade of 3.55 percent. During the 2013 fiscal year, Vedanta’s Zambian copper operations produced 216,000 tonnes of copper.
  • Equinox Minerals (private): Equinox’s primary asset is its 100-percent-owned Lumwana copper mine in Zambia, which produces 2 tonnes of ore annually. The project has proven and probable reserves of approximately 24.4 tonnes of copper. The mine is also estimated to contain 30 tonnes of uranium.
  • Glencore Xstrata (LSE:GLEN): Glencore has more than 150 mining and metallurgical sites worldwide, including a number of copper mining sites in Africa. These projects include the Mopani copper-cobalt mine in Zambia. The project consists of four underground mines. The company also operates the newly developed Mutanda copper project, which contains high-grade copper and cobalt. This project is located in Katanga Province. Glencore Xstrata’s Kansuki copper and cobalt pre-development project borders the Mutanda development.

Mwana Africa Signs JV for 28 DRC Copper Licenses

Mining Weekly reported that Mwana Africa has signed a joint venture (JV) agreement with China’s Zhejiang Hailiang for copper licesnses in the DRC.

As quoted in the market report:

This JV allows our copper exploration and development programme in the DRC to be significantly accelerated. We are also excited at the prospect of advancing Kibolwe in the near term. We look forward to working closely with Hailiang in what we expect will be a very productive relationship,” Mwana CEO Kalaa Mpinga said in a statement.

To view the whole Mining Weekly report, click here.


African Copper’s Q3 Output Jumps 47 Percent

Mining Weekly reported that African Copper’s output for the third quarter 2012 rose by 47 percent, mostly due to a push in production at their Botswana-based Mowana and Thakadu mines.

As quoted in the market report:

African Copper acting CE Jordan Soko said the company was on track to achieve record copper production this year as mine plans continued their successful implementation, resulting in increased throughput, efficiency and plant use.

To view the full Mining Weekly report, click here.


African Copper Updates on its Mowana and Thakadu Mines

African Copper Plc (AIM:ACU) has provided an update on its Mowana and Thakadu mines.

As quoted in the press release:

In April, a total of 704 tonnes of copper in concentrate was produced at a high recovery rate of 67.7%, owing to the treatment of predominantly sulphide ore from the Thakadu mine, at an open pit depth of 50m.

Click here to read the African Copper Plc (AIM:ACU) press release.


African Copper Plc: Production Activities on Mowana and Thakadu Mines

African Copper Plc (LSE:ACU) has updated on its production activities on Mowana and Thakadu Mines.

As quoted in the press release:

The majority of ore processed at the Mowana processing facility during March 2012 was sourced from the higher grade Thakadu mine where mining operations are moving closer to sulphide ore. Trucking operations from Thakadu to Mowana also improved with a total of 80,521 tonnes being moved.

Click here to read the African Copper Plc (LSE:ACU) press release.


Copper Mining in Africa

By Shihoko Goto — Exclusive to Copper Investing News

Copper Hotspot: Africa

The race for natural resources in Africa includes copper, and South Africa, Zambia, and the Congo are particularly rich in the red metal. The continued rise in the price of copper, coupled with tighter supply worldwide, has intensified the desire of both large and small miners to increase their investment across Africa. At the same time, governments across the continent are demanding greater shares in profits from the country’s natural wealth, and the rights of mine workers are coming under closer scrutiny.

With interest in copper mines across Africa expected to continue increasing, legislators and corporate executives alike will be closely monitoring how local governments balance their economic needs with social and environmental concerns. Investors should be increasingly wary of changes in mining tax policies, as the possibility of labor unrest affecting output may increase.

Shift from South Africa to the Congo

South Africa is one of the continent’s biggest copper producers, with the Palabora mine producing about 75 percent of the country’s total red metal output. The financial future of the mine, however, is hazy as its two largest multinational shareholders announced last September that they plan to sell their respective stakes amid increasing political risks in the country. Rio Tinto (ASX:RIO) currently holds a 57.7 percent stake in Palabora Mining Company Ltd. (OTC Pink:PBOAF), while Anglo American (LSE:AAL) holds a 16.8 percent interest. Both companies stated that they are looking to invest in larger, longer-life assets, even as Palabora accounted for eight percent of Rio Tinto’s mined copper production in the first half of 2011. Mining giants in other commodities have also been retreating from South Africa in recent months as the ruling national party mulls the possibility of nationalizing mineral assets.

The Congo, meanwhile, is attracting more investors after years of civil unrest, including mining entrepreneur Robert Friedland. The Executive Chairman of privately-held Ivanplats, and CEO of Ivanhoe Mines (NYSE:IVN), said in early February that Ivanplats will be developing the Kamoa mine, Africa’s largest copper project in the country. Friedland commented that the mine will have a lifespan that can be “measured in generations as opposed to decades.”

China’s growing dominance

The Congo is also attracting the attention of Chinese investors, including Minmetals Resources (HKG:1208), which completed its $1.3 billion bid for Toronto’s Anvil Mining (TSX:AVM) in February. Anvil is heavily invested in the Congo, most notably in the Kinsevere copper mine in the Katanga province. Minmetals is a subsidiary of the Chinese state-owned Minmetals Group, and is the latest among publicly-owned Chinese companies to secure mining deals in Africa as the country looks to secure access to natural resources.

Last November, China’s Jinchuan Group successfully bid for copper and cobalt producer Metorex with the blessing of the governments of South Africa and Zambia, having beaten out Brazil’s Vale (NYSE:VALE).

China’s thirst for mineral resources is viewed by some industry analysts as an opportunity for junior miners to expand in order to meet growing international demand for copper mines.

Impact of resource nationalism

Heightened interest in Africa from mining companies has enticed governments to nationalize their mineral assets, or at least to impose hefty taxes on foreign investors. South Africa’s African National Congress is looking into the possibility of slapping a 50 percent mining tax on international producers, and a 50 percent capital gains tax on the sale of prospecting rights, which has led many multinational corporations to reassess their operations in the country.

Zambia has doubled its royalties on copper to six percent, while the government of Guinea has taken a 15 percent stake in all mining projects with an option to buy an additional 20 percent interest. As for Namibia, all new mining and exploration efforts have been transferred to a state-owned company.

Such moves by African governments have led resource nationalism to become one of the biggest international concerns for the world’s top 30 miners, according to a survey by Ernst & Young. The consultancy group said that the latest political shifts in South Africa have increased miners’ interests in Botswana, Mozambique, and Namibia instead.

Labor and environmental concerns

Labor unrest has continuously been a source of worry for mining groups regardless of location, and the surge in interest in African mines has increased awareness of how workers are treated. A Human Rights Watch report last November highlighted the abuse faced by Zambian copper miners at Chinese projects in particular. The New York-based advocacy group stated that “miners in Chinese-run companies have been subject to abusive health, safety, and labor conditions and longtime government indifference.”

Similarly, there is growing concern among citizens across the continent about the environmental impact of mining activities. At the Investing in African Mining Indaba conference held in Cape Town in February, Gold Fields (NYSE:GFI) Chairperson Mamphela Ramphela stated that “the mining industry was urged to take the lead in promoting sustainable development policies that add social and economic value.”

 

Securities Disclosure: I, Shihoko Goto, hold no direct investment interest in any company mentioned in this article.


African Copper Receives Additional USD2.0 Million

African Copper (LSE:ACU) has secured an additional loan of USD2.0 million from ZCI Limited.

As quoted in the press release:

The new USD2.0 million loan from ZCI is a secured loan facility with an interest rate of 9.0 per cent., repayable on 31 March 2013 (the “Facility”). Interest will be accrued annually and interest payments deferred until 31 March 2013.

Click here to read the African Copper (LSE:ACU) press release.


Sama Resources Updates on Samapleu Nickel-Copper Project, Cote d’Ivoire, Africa

Sama Resources Inc. (TSXV:SME) reported positive results from heavy media separation tests at “Samapleu Main poly-metallic deposit” and “Samapleu Extension 1 poly-metallic deposit” in Côte d’Ivoire.

As quoted in the press release:

Tests showed that in treating ore material with a calculated head grade of 0.35% nickel and 0.33% copper, float rejects of 0.092% nickel and 0.17% copper were produced with the sink material upgraded to 0.66% nickel and 0.53% copper, while rejecting 55% of the feed material mass. The tests are continuing using a range of ore feed materials.

Click here to read the Sama Resources Inc. (TSXV:SME) press release.


African Copper plc: Final Results for the Year to 31 March 2011

African Copper plc (LON:ACU) reports its preliminary audited results for the year ending 31 March 2011.

The press release is quoted as saying:

As a result of the Company changing its accounting reference date during 2009 from 31 December to 31 March to align with major shareholder, ZCI Limited, the comparative period to 31 March 2010 is for 15 months.

Click here to access the entire press release


Brazil’s Vale to Buy S. African Copper Producer

ABC News reports that Vale (NYSE:VALE) plans to acquire Metorex for more than $1.1 billion in cash.

The market news is quoted as saying:

Rio de Janeiro-based Vale SA says Metorex Ltd.’s board has agreed to its offer of 7.35 South African rand per share. The deal, which requires approval from holders of 75 percent of Metorex’s shares, is worth nearly $1.13 billion (7.52 billion rand).

Click here to access the entire news


Minmetals Aims to Add Copper Assets in Africa, South America

Bloomberg reports that Minmetals Resources Ltd. (HKG:1208) plans to add copper assets in Africa and South America in the next three to five years.

The market news is quoted as saying:

Mining companies are competing to secure assets after a dearth of new global projects and demand from China drove copper prices to a record this year. Minmetals yesterday announced a C$6.3 billion ($6.5 billion) unsolicited cash offer for Equinox Minerals Ltd. The deal, China’s biggest minerals takeover, would give Hong Kong-based Minmetals control of the Lumwana copper mine in Zambia and Saudi Arabia’s biggest copper deposit.

Click here to access the entire news


African Eagle to Invest $50 Million in Zambian Copper

Bloomber reports that African Eagle Resources Plc plans to invest between $40 million and $50 million this year developing “small” copper mining operations in Zambia.

The market news is quoted as saying:

The London-listed miner will begin operations in Zambia’s Mkushi district this year before moving into large-scale copper mining next year, the Lusaka-based newspaper said.

Click here to access the entire market news.


African Metals Assay Results Highlight Zones of Copper and Cobalt Mineralization, Democratic Republic of Congo

African Metals Corporation (TSXV:AFR) reports that the Company has received final assay results from the 42 Reverse Circulation (RC) drill holes completed on the stockpile at its Luisha South Project in the Katanga Provence of Democratic Republic of Congo.

The press release is quoted as saying:

A 42 hole, reverse circulation (RC) drilling program conducted on top of the historic Luisha South open pit stockpile produced 416 samples from 383 metres of drilling.

Analytical results of the RC samples indicate that the stockpile hosts zones of elevated grades of copper (>1%) and cobalt (>1%) mineralization.

Click here to access the entire press release.