Ivanhoe Mines (TSX:IVN) has released results of a preliminary economic assessment for the company’s Kipushi zinc-copper mine in the Democratic Republic of Congo. Ivanhoe is looking to redevelop Kipushi as an underground mine.
As quoted in the press release:

Highlights of the PEA include:

• After-tax net present value (NPV) at an 8% real discount rate is $533 million.
• After-tax real internal rate of return (IRR) is 30.9%.
• After-tax project payback period is 2.2 years.
• Leveraging existing surface and underground infrastructure significantly lowers the redevelopment capital compared to a greenfield development project, as well as the time required to reinstate production.
• Life-of-mine average planned zinc concentrate production of 530,000 dry tonnes per annum (tpa), with a concentrate grade of 53% zinc, is expected to rank Kipushi, once in production, among the world’s major zinc mines (see Figure 1, below).
• Life-of-mine average cash cost of US$0.54/lb of zinc is expected to rank Kipushi, once in production, in the bottom quartile of the cash cost curve for zinc producers globally.

Ivanhoe Chairman, Robert Friedland, said:

This preliminary mine redevelopment plan supports our view that Kipushi is the best brownfield zinc project in the world. Kipushi’s zinc grade of almost 35% puts the project into a class of its own.

Click here for the full press release.