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Ivanhoe Mines Provides 2022 Production and Cost Guidance for Kamoa-Kakula Copper Complex
2022 production guidance of between 290,000 to 340,000 tonnes of copper in concentrate
Kamoa Copper produced 105,884 tonnes of copper in concentrate in 2021, exceeding the upper end of the guidance range, reflecting outstanding ramp-up of the Phase 1 operation
Record monthly production of 18,853 tonnes achieved in December, with plant recovery averaging 88.5%
Phase 2 expansion now 80% complete, expected to start operations in Q2 2022; pre-commissioning activities underway
Phase 3 concentrator expansion targeted for 2024, with earthworks to access new mining areas well underway
Kamoa Copper's outstanding growth profile is aligned with first-class sustainability and social initiatives in keeping with the project's goal of producing the world's "greenest copper"
Riyadh, Saudi Arabia--(Newsfile Corp. - January 10, 2022) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland announced today, ahead of the inaugural Future Minerals Forum, that the 2022 annual production guidance for the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC) is between 290,000 and 340,000 tonnes of copper in concentrate.
The figures are on a 100%-project basis and metal reported in concentrate is prior to refining losses or deductions associated with smelter terms.
The guidance range for cash costs (C1) per pound of payable copper in 2022 is between $1.20 and $1.40 per pound of payable copper. Cash costs (C1) per pound of payable copper for Q3 2021 totaled $1.37/lb, while cost of sales per pound of payable copper sold for Q3 2021 was $1.08/lb. "Cash costs (C1) per pound" is a non-GAAP financial performance measure. Additional information is provided in the Non-GAAP Financial Performance Measures section of this news release.
Kamoa Copper's copper-in-concentrate production for the year ended December 31, 2021, totalled 105,884 tonnes, exceeding the upper end of the increased guidance range of 92,500 to 100,000 tonnes. The year-end total was boosted by record monthly production of 18,853 tonnes achieved in December.
2021 guidance had been raised from an initial range of 80,000 to 95,000 tonnes, during the course of the successful ramp-up of Kamoa Copper's Phase 1 concentrator plant, which began operations in late May 2021 and reached commercial operations on July 1, 2021.
During the month of December, a record 372,000 tonnes of ore were milled at an average feed grade of 5.98% copper, exceeding the monthly design run rate of 316,667 tonnes by more than 17%.
Copper flotation recoveries also achieved a record 88.5% in December. The Phase 1, steady-state design copper recovery is approximately 86%, depending on ore feed grade.
Kamoa Copper expects to begin operations at the Phase 2 concentrator plant in Q2 2022. The Phase 2 concentrator plant is identical to the Phase 1 concentrator, with a nameplate milling capacity of 3.8 million tonnes per annum (Mtpa), and a similar ramp-up profile for the new concentrator is targeted, with the benefit of additional knowledge gained during the commissioning of Phase 1.
The Phase 3 expansion also is advancing, with work ongoing on new box cut to open up the Kamoa Mine. An updated pre-feasibility study (PFS), including the Phase 3 expansion, is expected in Q3 2022.
Watch a new video showcasing Phase 1 operations and the Phase 2 and Phase 3 expansion work underway at the Kamoa-Kakula Copper Complex: https://vimeo.com/663982551/a4a47fa41f
Chart 1: Cumulative tonnes of copper produced from May 2021 to December 31, 2021.
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2022 Guidance for Kamoa-Kakula
Guidance is based on a number of assumptions and estimates as of December 31, 2021, including among other things, assumptions about the timing of the Phase 2 expansion and anticipated costs and expenditures. Production and cost guidance assumes the Phase 2 concentrator plant will commence copper production in Q2 2022 and that ramp-up will be in line with what was achieved with Phase 1. Guidance involves estimates of known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different.
Kamoa-Kakula 2022 Guidance | |
Contained copper in concentrate (tonnes) | 290,000 - 340,000 |
Cash cost (C1) ($ per pound) | 1.20 - 1.40 |
Cash costs (C1) per pound of payable copper for Q3 2021 of $1.37/lb reflected the measured ramp-up of production at Kamoa-Kakula to steady-state, and are expected to trend downward as the Phase 2 concentrator plant is commissioned and the mine's fixed operating costs are spread over increased copper production.
C1 cash cost is a non-GAAP measure used by management to evaluate operating performance and include all direct mining, processing, and general and administrative costs. Smelter charges and freight deductions on sales to final port of destination (typically China), which are recognized as a component of sales revenues, are added to C1 cash cost to arrive at an approximate cost of delivered finished metal.
Cost of sales per pound of payable copper sold for Q3 2021 was $1.08/lb. For historical comparatives see the Non-GAAP Financial Performance Measures section of this news release. Please also see the Management's Discussion and Analysis for the three and nine months ended September 30, 2021, for discussion of non-GAAP measures. All figures in the above table are on a 100%-project basis.
"Kamoa Copper's outstanding operational success in 2021 is a product of the culture and values promoted throughout the organization," said Mr. Friedland. "We are focused on training and empowering our young, talented Congolese workforce to operate this globally significant copper mining and smelting complex for generations to come. We invest deeply in our people and we celebrate their diversity, as diversity is a core value and a key to our strength. Collectively we are determined to create long-term stakeholder and shareholder value through continued investment in discovering and developing world-class orebodies, technological innovation, strong corporate governance, environmental stewardship, empowering our host communities and intense focus on health and safety.
"The Phase 2 expansion remains significantly ahead of schedule, and we are well on the way to doubling our annualized copper production to more than 400,000 tonnes starting early in Q2 2022, vaulting Kamoa Copper into the ranks of the world's ten largest copper mines.
"Our outstanding team of geologists are confident that the Kamoa and Kakula mines are just the initial discoveries of a major new mining district, which extends the storied African Copperbelt in a southwesterly direction all the way to the Zambian border. We will be conducting an extensive drilling campaign on our majority-owned Western Foreland exploration licences this year to unlock the potential of this highly-prospective ground."
The Kamoa Copper Complex with the Phase 1 and Phase 2 concentrator plants at the Kakula Mine. A small portion of Ivanhoe's Western Foreland exploration licences are in the background.
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Muhemba Richard (left), operating an ore-truck simulator under the guidance of trainer Kasongo Kabila at Kamoa Copper's state-of-the-art training centre.
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A 3D illustration of Kamoa-Kakula's Phase 2 concentrator flotation cells. The picture below shows the current progress, which is approximately 80% complete.
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A convoy of trucks transporting Kamoa Copper's copper concentrate for export to international markets.
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Kamoa-Kakula's Phase 1 (at top) and Phase 2 ball mills.
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Phase 2 expansion now 80% complete, expected to start operations in Q2 2022
Construction of the second 3.8-Mtpa concentrator plant (Phase 2) continues to progress ahead of schedule with hot commissioning expected to start in Q2 2022. Engineering, procurement and fabrication activities all are effectively complete, with construction activities well advanced. As of the end of December, the overall project was approximately 80% complete. Some pre-commissioning activities have started.
The main construction focus now has shifted from structural steel erection and installation of platework, equipment and piping (SMPP) to electrical, control and instrumentation (EC&I) installation. Most areas have been handed over from the SMPP contractor to the EC&I contractor. All of the Phase 2 surface piping has been installed. Installation of cable racking is nearing completion and cable pulling and instrument installation is well advanced.
More than 675 truckloads of Phase 2 plant construction equipment and materials already have been delivered to site.
Updated PFS study, including Phase 3 expansion, expected in Q3 2022; work on new box cut to open up the Kamoa Mine advancing
Kamoa Copper also is advancing the Phase 3 expansion, with operations at the first stream of the Phase 3 concentrator expected by the end of 2024. The Phase 3 concentrator will be located adjacent to the Kansoko Mine (at the Kansoko Sud orebody) and is being designed as two identical streams with a common dry front end, the same as the Phase 1 and 2 concentrators, but at a larger nameplate milling capacity per stream than the 3.8-Mtpa capacity of the Phase 1 and 2 concentrators.
The Phase 3 concentrator is expected to be supplied with ore from the established mine at Kansoko, as well as from two new planned mines, named Kamoa 1 and Kamoa 2. The Kamoa 1 and Kamoa 2 mining areas will be accessed via a twin-decline system (the Kamoa Mine decline), and the box cut for the declines is under construction.
Phase 3 also includes the construction of a direct-to-blister smelter, with a production capacity of 500,000 tonnes per annum of blister copper. Basic engineering, led by China Nerin Engineering Co., Ltd. of Jiangxi, China, is ongoing and expected to be completed in Q2 2022.
The planned smelter is to be built adjacent to the Phase 1 and 2 concentrator plants, and is designed to meet the International Finance Corporation's emissions standards. The smelter has been sized to process the majority of the copper concentrate forecast to be produced by Kamoa-Kakula's Phase 1, Phase 2 and Phase 3 concentrators. With a nameplate capacity of 500,000 tonnes per annum of blister copper, it is projected to be one of the largest, single-line blister-copper flash smelters in the world, and the largest in Africa.
Power for the Phase 3 expansion will be supplied by the upgrading of turbine 5 at the Inga II hydropower complex to provide an additional 162 megawatts (MW) of renewable hydropower. Basic engineering for the design of a new turbine wheel and runners is ongoing at the Heidenheim offices of contractor Voith Hydro, and the contractor's team is preparing to mobilize on site.
Study work on all aspects of the Phase 3 expansion is progressing well, with further information to be provided in Q2 2022 as estimates are completed, and an updated PFS expected to be released in Q3 2022.
Mining crews produce 756,000 tonnes grading 5.25% copper from the Kakula and Kansoko mines in December
Underground mine production from the Kakula and Kansoko mines was 756,000 tonnes grading 5.25% copper from November 21st to December 31st, including 272,000 tonnes grading 6.53% copper from the Kakula Mine's high-grade centre and 77,600 tonnes grading 4.15% copper from the Kansoko Mine. The production measuring month was longer than normal in order to close out the year.
Production levels from the mine are well above target, and will be boosted by three additional underground ore trucks commissioned on December 28, 2021.
The project's surface stockpiles now contain approximately 4.19 million tonnes of high-grade and medium-grade ore at an estimated, blended average of 4.63% copper. Contained copper in the stockpiles at the end of December now totals more than 194,000 tonnes (the current copper price is approximately $9,600 per tonne).
Chart 2: Growth in cumulative tonnes of contained copper in surface stockpiles from May 2020 to December 31, 2021.
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Chart 3: Cumulative tonnes and grade of contained copper in surface stockpiles from May 2020 to December 31, 2021.
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Ore stockpiles at the Kakula North decline containing 2.04 million tonnes grading 5.13% copper as of December 31, 2021.
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Ore stockpiles at the Kakula South decline containing 1.45 million tonnes grading 4.26% copper as of December 31, 2021.
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The Kansoko Mine decline and ore stockpiles containing 696,000 tonnes grading 3.92% copper as of December 31, 2021.
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Floribert Monga, Instrument Technician, wiring a distribution box for a control valve in the Phase 2 concentrator plant.
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Boris Kitupa, Security Supervisor (left), and Philo Nsenga, Security Controller, monitoring security cameras in the Kakula North control room.
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Stani Kayinda, Assistant Boilermaker, working on the Phase 2 concentrator plant.
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Jean Mabungu, Fitter, at the Phase 2 concentrator plant.
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About the Kamoa-Kakula Copper Complex
Kamoa-Kakula is projected to be the world's highest-grade major copper complex, with an initial mining rate of 3.8 Mtpa at an estimated, average feed grade of more than 6.0% copper over the first five years of operations, and 5.9% copper over the initial 10 years of operations. Phase 1 is expected to produce approximately 200,000 tonnes of copper per year, while the Phase 2 expansion is forecast to increase production to more than 400,000 tonnes of copper annually.
Based on independent benchmarking, the project's phased expansion scenario to 19 Mtpa would position Kamoa-Kakula as the world's second-largest copper mining complex, with peak annual copper production of more than 800,000 tonnes.
The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the Government of the Democratic Republic of Congo (20%). A 2020 independent audit of Kamoa-Kakula's greenhouse gas intensity metrics performed by Hatch Ltd. of Mississauga, Canada, confirmed that the project will be among the world's lowest greenhouse gas emitters per unit of copper produced.
Non-GAAP Financial Performance Measures
Cash costs (C1) and cash costs (C1) per pound are non-GAAP financial measures. These are disclosed to enable investors to better understand the performance of the Kamoa-Kakula Project in comparison to other copper producers who present results on a similar basis. Cash costs (C1) are prepared on a basis consistent with the industry standard definitions by Wood Mackenzie cost guidelines but are not measures recognized under IFRS.
Below is a reconciliation of Kamoa-Kakula's historical cost of sales to cash costs (C1), including on a per pound basis:
Kamoa-Kakula | |||
Q3 2021 | |||
$'000 | |||
Cost of sales | 98,663 | ||
Logistics, treatment and refining charges | 37,915 | ||
General and administrative expenditure | 34,265 | ||
Royalties and production taxes | (25,137 | ) | |
Depreciation | (24,061 | ) | |
Movement in finished goods inventory | 286 | ||
General and administrative expenditure of other group entities | (410 | ) | |
C1 cash costs | 121,521 | ||
Cost of sales per pound of payable copper sold ($ per lb) | 1.08 | ||
C1 cash costs per pound of payable copper produced ($ per lb) | 1.37 |
All figures above are on a 100% basis. See the Management's Discussion and Analysis for the three and nine months ended September 30, 2021, for further discussion of non-GAAP measures.
Qualified Persons
Disclosures of a scientific or technical nature regarding development scenarios at the Kamoa-Kakula Project in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Kamoa Copper's Head of Projects. Mr. Amos has verified the technical data disclosed in this news release.
Other disclosures of a scientific or technical nature regarding the stockpiles in this news release have been reviewed and approved by George Gilchrist, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Gilchrist is not considered independent under NI 43-101 as he is the Vice President, Resources of Ivanhoe Mines. Mr. Gilchrist has verified the other technical data related to the stockpiles disclosed in this news release.
The stockpile grade estimates contained in this release are based upon bulk ore sampling from material being fed to the plant from surface stockpiles, and underground vertical channel sample profiles from recent development. Channel sample profiles are cut approximately 15 metres apart in 1-metre vertical increments across the full vertical exposure using a handheld grinder, with a 100-to-150-gram sample collected. The samples are pulverized at the project's onsite laboratory and analyzed using a portable XRF (pXRF) instrument. Kamoa Copper has routinely analyzed its exploration drill core for copper using pXRF, in addition to analysis at a commercial laboratory using four acid digest and ICP-OES. This data has demonstrated that pXRF results can be relied upon for grade control and run-of-mine sampling. Due to rounding, numbers presented throughout this news release may not add up precisely.
Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the Kamoa-Kakula Project, which is available on the company's website and under the company's SEDAR profile at www.sedar.com:
- Kamoa-Kakula Integrated Development Plan 2020 dated October 13, 2020, prepared by OreWin Pty Ltd., China Nerin Engineering Co., Ltd., DRA Global, Epoch Resources, Golder Associates Africa, KGHM Cuprum R&D Centre Ltd., Outotec Oyj, Paterson and Cooke, Stantec Consulting International LLC, SRK Consulting Inc., and Wood plc.
The technical report includes relevant information regarding the assumptions, parameters and methods of the mineral resource estimates on the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of major new, mechanized, underground mines at the Kamoa-Kakula copper discoveries in the Democratic Republic of Congo and at the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the Democratic Republic of Congo.
Kamoa-Kakula began producing copper concentrates in May 2021 and, through phased expansions, is positioned to become one of the world's largest copper producers. Kamoa-Kakula is being powered by clean, renewable hydro-generated electricity and is projected to be among the world's lowest greenhouse gas emitters per unit of metal produced. Ivanhoe Mines has pledged to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) at the Kamoa-Kakula Copper Mine. Ivanhoe also is exploring for new copper discoveries on its Western Foreland exploration licences in the Democratic Republic of Congo, near the Kamoa-Kakula Project.
Information contacts
Investors: Bill Trenaman +1.604.331.9834 / Media: Matthew Keevil +1.604.558.1034
Forward-looking statements
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, 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.
Such statements include without limitation, (i) that 2022 production guidance for the Kamoa-Kakula Copper Complex is between 290,000 to 340,000 tonnes of copper in concentrate; (ii) that 2022 cost guidance for the Kamoa-Kakula Copper Complex is between $1.20 and $1.40 per pound of payable copper on a cash cost (C1) basis; (iii) all statements regarding the Phase 2 expansion is expected to start operations in Q2 2022; (iv) all statements regarding the Phase 3 expansion expected to begin operations by the end of 2024; (v) statements regarding Kakula is projected to be the world's highest-grade major copper mine, with an initial mining rate of 3.8 Mtpa at an estimated, average feed grade of more than 6.0% copper over the first five years of operations and 5.9% copper over the initial 10 years of operations; (vi) statements regarding Kamoa-Kakula's Phase 1 is expected to produce approximately 200,000 tonnes of copper per year, and Phases 1 and 2 combined are forecast to produce more than 400,000 tonnes of copper per year; (vii) statements regarding based on independent benchmarking, the project's phased expansion scenario to 19 Mtpa would position Kamoa-Kakula as the world's second largest copper mining complex, with peak annual copper production of more than 800,000 tonnes; (viii) statements regarding Kamoa-Kakula will be among the world's lowest greenhouse gas emitters per unit of copper produced; and (ix) statements that the updated PFS for Phase 3 expansion is expected to be completed in Q3 2022.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed below and under "Risk Factors", and elsewhere in this release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this 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 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 release.
The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth below in the "Risk Factors" section in the company's 2021 Q3 MD&A and its current annual information form.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/109513
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Geophysics Reveal Further Highly Prospective Targets at Mt Oxide Project
HIGHLIGHTS
- Three MIMDAS Induced Polarisation (IP) and Magnetotelluric (MT) lines at the historic Mt Gordon Copper Mine and Aquila prospect have revealed multiple unexplored geophysical targets with similar signatures to the Vero Cu-Ag-Co resource at Mt Oxide.
- Mt Gordon – Three new shallow and untested anomalies, similar to the Vero resource, have been identified and are partially coincident with historic drilling intersections, including 1.9m @ 3.0% Cu from 106m downhole in ECM11.
- Aquila –Chargeability highs of 15mV/V from two MIMDAS lines spaced 85m apart are coincident with mapped iron oxide-rich breccias which returned up to 0.94% Cu in rock chip samples2.
- A 20m wide, shallow highly chargeable anomaly associated with a 150m long trend of fault breccias with anomalous Cu +/- Ag-As-Bi and no previous drilling.
- A 20m wide and up to 25m deep +25mV/V chargeability and <250ohm.m conductivity anomaly, un-drill tested and correlating with a Dorman trending structure 80m below surface.
- Next Steps
- The geophysical survey is nearing completion with processing pending on Ivena North and an additional line being undertaken at Camp Gossans to test the strike extent of the anomaly at Camp Gossans and the new Black Marlin target3.
- True North Copper’s Exploration team are currently sampling recently identified mineralised structures at Aquila, Rhea and Black Marlin.
- The new geophysics will be integrated with ongoing mapping and surface geochemical sampling campaigns to identify and prioritise targets for future drill campaigns.
- Heritage clearance and access planning for drilling has commenced.
COMMENT
True North Copper’s Managing Director, Bevan Jones said:
“Our geophysical survey at Mt Oxide has revealed several new, highly prospective targets that share similar characteristics with our high-grade Vero deposit. The results of this survey, which has been supported by a Queensland Government CEI Grant, have uncovered significant anomalies at both the historic Mt Gordon Copper Mine and Aquila prospect. These results are in addition to the positive results at Vero and Camp Gossans announced in August. With these exciting developments, we’re optimistic about expanding our exploration footprint and identifying additional drill targets. The continued integration of geophysics, mapping, and sampling will be key to advancing our future exploration programs at Mt Oxide, including the design of the next phase of drilling.”
Figure 1. Location of the Mt Oxide Project, within context of Mt Isa Inlier.
Mt Oxide MIMDAS Survey Results Summary
In July 2024, TNC announced it had commenced its leading edge MIMDAS Induced Polarisation (IP), Resistivity and Magnetotellurics (MT) geophysical survey (MIMDAS survey) at Mt Oxide4. Partial funding of $300k was granted to TNC in Round 8 of the Collaborative Exploration Initiative (CEI) to undertake the survey (Figure 6).
The MIMDAS survey has aimed to identify potential sulphide mineralisation developed below numerous leached gossan zones and build an improved understanding of the regional scale structural and geological architecture. Two previously reported lines identified chargeability anomalies correlating with mineralisation in the Vero resource and a series of untested anomalies including a chargeability anomaly 1km east of Vero, and two chargeability high responses at Camp Gossans3 beneath outcropping breccias with similar surface geochemical signatures to the Esperanza Deposit5. The coincidence of anomalies directly associated with the Vero resource highlights the applicability of MIMDAS to target copper-silver mineralisation within the Mt Oxide District.
Three additional lines have recently been completed, including two lines 85m apart for 2.3 line-kms over the highly prospective Aquila prospect and one line for 1.5 line-kms over the historic Mt Gordon Copper Mine (Figure 2).
At Aquila, the survey has identified two (2) chargeability responses in the Mount Gordon Fault Zone and the Dorman fault trend, and one conductivity response below a geochemically anomalous fault breccia.
At Mt Gordon, the survey has identified four (4) chargeability responses in the Mount Gordon Fault Zone and in resistive sandstone over a 600m wide chargeability trend.
The geophysical survey is nearing completion with processing pending on Ivena North and an additional line at Camp Gossans, 150m northeast of the line completed in August that returned a very high-order chargeability anomaly coincident with mapped Gossans and defined the new Black Marlin Target3.
Click here for the full ASX Release
This article includes content from True North Copper, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
VVC – Extension of Series AG Warrants
VVC Exploration Corporation, dba VVC Resources, ("VVC" or the "Company") announces the following:
Warrant Extension
VVC has applied to the TSX Venture Exchange (“TSXV”) for a 1-year extension for 57,567,800 Series AG share purchase warrants (“warrants”) presently expiring on September 30, 2024. The warrants, exercisable at $0.075 per share, were issued pursuant to a Private Placement in September 2020 with a 3-year expiry and were extended last September for an additional year. The warrants have been out-of-the-money for some time. If approved by the TSXV, the warrants will expire on September 30, 2025.
Annual General Meeting of Shareholders
The Annual General Meeting of shareholders (the "AGM") will be held virtually on December 4, 2024, at 11:00 am (ET), with a Record Date of October 21, 2024. Following the mailing of Proxy Material to shareholders around October 29, shareholders will be able to download the Proxy Material, including the Information Circular Booklet, from www.sedarplus.ca and/or from the Company’s website at: www.vvcresources.com/shareholders-meeting.
The deadline for Proxy Voting will be 11:00 am (ET) on December 3, 2024, however shareholders are encouraged to vote early. Registered Shareholders will be allowed to vote in-person at the AGM using their Control Numbers. All other shareholders, NOBOs and OBOs, are required to vote by proxy at least 24 hours in advance.
Following the formal business session, management will update the Company’s activities and projects, and will be available to answer questions from shareholders, subject to Securities Laws regarding "Selective Disclosure".
"We look forward to meeting our shareholders at the AGM," said Terry Martell, Chairman of VVC. "We will be providing an update on our projects and investments."
About VVC Resources
VVC is engaged in the exploration, development, and management of natural resources - specializing in scarce and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel, and the expanding green economy. Our portfolio includes a diverse set of multi-asset, high-growth projects, comprising: Helium & industrial gas production in western U.S.; Copper & associated metals operations in northern Mexico; and Strategic investments in carbon sequestration and other green energy technologies. VVC is a Canada-based, publicly-traded company on the TSXV (TSX-V:VVC) and on the OTC Market (OTCQB:VVCVF). To learn more, visit our website at: www.vvcresources.com.
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Cobre and BHP in Talks for Copper-Silver Exploration in Botswana
Cobre (ASX:CBE) and a wholly owned subsidiary of BHP (ASX:BHP,NYSE:BHP,LSE:BHP) have signed a letter of intent to exclusively negotiate a material earn-in joint venture agreement.
The partnership will target Cobre’s Kitlanya West and East copper projects, both of which are located on the northern and southern basin margins of the Kalahari Copper Belt in Botswana.
According to Cobre's Monday (September 23) press release, the news follows its participation in BHP’s Xplor program, which funded a recently completed seismic survey at the Kitlanya West site.
Results from the survey are expected toward the end of this quarter.
“Participating in the BHP 2024 Xplor cohort has provided the opportunity to do a belt scale review of the Kalahari Copper Belt, culminating with the collection of seismic data over the prospective northern margin of the belt,” said Adam Wooldridge, CEO of Cobre. Xplor is a critical minerals accelerator program launched by BHP in 2022.
He added that the proposed transaction with BHP would allow Cobre to fully fund follow-on exploration programs at the Kitlanya West and East assets. The company is confident that both projects have the potential to host Tier 1 copper-silver deposits, and said working with BHP would maximise its chances of making new significant discoveries.
Cobre's deal with BHP is subject to approval and the execution of formal binding documents, along with the completion of BHP’s investigations within the exclusivity period.
Final details will be shared with the public once long-form documents have been completed.
Separate from its work with BHP, Cobre said it will keep moving forward at its Ngami copper project, with plans to publish a scoping study in early October. It is also aiming to drill further at its Okavango copper project.
Ngami and Okavango are also both located in Botswana.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Greenpeace: Deep-Sea Mining in Norway Could Harm Marine Biodiversity
Plans to open the Arctic seabed for deep-sea mining are raising alarms among environmentalists, particularly in light of new findings highlighting the potential damage to one of the world’s least explored ecosystems.
A recent report by Greenpeace warns that Norway’s decision to allow mineral exploration in Arctic waters could irreparably harm marine biodiversity, including species that are vital to the region’s ecological balance.
The area in question lies within the Norwegian Exclusive Economic Zone, specifically a section of the Arctic Ocean known as the Mohns Ridge. This region is believed to be rich in rare minerals like cobalt, nickel and manganese — elements that are critical for modern technology, including electric vehicles and renewable energy infrastructure.
However, the unique and fragile ecosystems found in these deep waters are poorly understood, and scientists argue that mining operations could have unintended consequences.
Greenpeace’s report, published on Friday (September 20), outlines several potential risks associated with seabed mining. The removal of seafloor habitats, disturbance of underwater ecosystems and the release of toxic sediments could alter the marine food chain and affect species such as whales, dolphins and deep-sea corals.
These organisms, which thrive in cold, nutrient-rich waters, are particularly sensitive to changes in their environment, and even small disruptions could have long-lasting impacts.
Activists and researchers are calling for Norway to reconsider its deep-sea mining strategy, emphasizing that more time is needed to study the region's ecology before proceeding with industrial activity.
Norway previously committed to managing 100 percent of its ocean areas sustainably by 2025 as part of the High Level Panel for a Sustainable Ocean Economy. Critics believe its deep-sea mining plans run counter to these commitments.
Haldis Tjeldflaat Helle, a campaigner for Greenpeace Nordic, voiced concerns over the inconsistency between Norway’s environmental pledges and its push for industrial expansion.
“The measure of a nation’s success is not how many promises it makes, but how it honors them and how much of its ecosystem is safeguarded for present and future generations," she said. “While Norway claims to be a respectable nation with responsible policies on ocean management, it’s rolling out the red carpet for deep sea mining companies to deploy machines that will cause irreversible harm to the Arctic’s unique and vulnerable biodiversity."
Norway is pressing ahead with its plans, backed by companies eager to tap into the region’s mineral wealth.
Loke Marine Minerals, a startup founded in 2019, is one firm vying for exploration licenses. The company aims to extract minerals such as cobalt and manganese from the Arctic seabed using advanced robotic technology.
Another Norwegian company, Green Minerals (FWB:F5P), is also looking to explore the Arctic seabed for resources, with a focus on extracting copper from seafloor massive sulfide deposits. Green Minerals CEO Ståle Monstad has said that test mining could start as early as 2028, depending on the outcome of exploratory research.
Industry experts believe deep-sea mining could potentially reduce the environmental damage caused by land-based mining. Proponents argue that the concentration of valuable metals in deep-sea deposits is higher compared to on-land deposits, meaning that less material would need to be extracted to meet global demand.
However, environmental groups caution that this does not justify the risks posed to Arctic ecosystems, which remain some of the least understood and most vulnerable on the planet. The Norwegian Institute of Marine Research has recommended a pause of five to 10 years on deep-sea mining to allow for further scientific studies.
In addition to resistance from environmental advocates, some of the world’s biggest companies and 32 countries have voiced support for either a ban or a pause on deep-sea mining in international waters.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
American West Signs Formal Agreement for A$18.8 Million Royalty Funding for the Storm Copper Project, Canada
Funds under the royalty package to be accessed this week
American West Metals Ltd (American West or the Company) (ASX: AW1 | OTCQB: AWMLF) is pleased to announce that the Company has signed a definitive formal agreement with TMRF Canada Inc., a subsidiary of Taurus Mining Royalty Fund L.P. (Taurus) whereby Taurus will provide funding of up to US$12.5 million (A$18.8 million1) under a royalty package for the Storm Copper Project.
- Definitive formal agreement signed with TMRF Canada Inc., a subsidiary of Taurus Mining Royalty Fund L.P. (Taurus) to provide US$12.5 million (A$18.8 million1) in exchange for a royalty over Storm
- The first payment under the royalty package is US$5m (approximately A$7.5m) – US$1m (approximately A$1.5m) will be advanced to American West this week with the balance to be provided upon completion of registration of the royalty at the Nunavut Mining Recorder’s Office, expected within 2-3 weeks
- Further payments under the royalty package are:
- US$3.5m (approx.. A$5.25m) upon delivery of a Prefeasibility Study( PFS) for Storm and submission of permitting documents for a development at Storm
- US$4m (approx.. A$6m) upon announcement of an increase in the JORC compliant resource for Storm to at least 400,000 tonnes of contained copper at a resource grade of at least 1.00% Cu
- American West Metals and Aston Bay Holdings will share funds under the royalty package in accordance with their respective interests under the unincorporated joint venture for Storm, being 80% for American West Metals and 20% for Aston Bay Holdings
- The funding has enabled an expansion of exploration and development activities at Storm including:
- Expansion of the 2024 drill program with more than 22,000m of drilling completed to date – more than double the previous largest annual drill campaign as Storm, and which will underpin a significant upgrade to the maiden Storm resource
- An investment in the 2025 field activities with bulk supplies being delivered to site this week by ship charter – saving circa. $4m on the potential logistics costs for the 2025 program
- Completion of environmental, mining and development studies – including detailed testwork that supports the potential for a Direct Shipping Ore (DSO) operation – which will support delivery of a PFS in early 2025
Dave O’Neill, Managing Director of American West Metals, commented:
“We are very pleased to have finalised formal documentation of the royalty funding which allows us to commence accessing substantial non-dilutive funding for the Storm Copper Project.
“The royalty funds have allowed us to expand activities at Storm this year, resulting in considerable advancement of the project which is rapidly taking shape as a potentially globally significant copper mining operation.
“The investment from Taurus recognises the the strong foundations for growth established by American West to date, and is an endorsement of both the American West team and the production potential at Storm.”
Michael Davies, Taurus Chief Investment Officer, also commented:
“We continue to be impressed with achievements at the Storm Copper Project and its potential to be a significant mining operation. We are delighted to be supporting the team at American West Metals as they continue to grow Storm’s copper resources and progress development plans for the project.”
The royalty arrangements with Taurus do not impose any royalty on American West’s other projects, namely the West Desert and Copper Warrior Projects in Utah, USA.
For further details on the royalty package under the Taurus arrangement, see our ASX Release dated 24 June 2024 ‘$18.8M Royalty Financing’.
ABOUT THE STORM COPPER PROJECT
The Storm Copper Project is located on Somerset Island, Nunavut, Canada. The Project covers an area of over 2,200 square kilometres within the Polaris mineral district, and is just 120km south of Resolute Bay, the regional community and logistics hub.
Aston Bay is a deep-water bay located on the Northwest Passage, a seasonal ice-free waterway historically used to ship concentrate from the World Class Polaris and Nanisivik zinc – lead mines. Excellent facilities, including a 60-person camp, are in place to enable exploration and resource activities to be undertaken.
American West owns 80% of the Storm Project, and partners with Aston Bay Holdings (TSX:BAY) who own 20% of the Project.
Maiden Resource Estimate
American West delivered a maiden independent JORC Code - 2012 Indicated and Inferred Mineral Resource Estimate (MRE) for the Storm Project in January, 2024. The MRE consists of 17.5Mt @ 1.2% Cu and 3.4g/t Ag (0.35% Cu cut-off), which includes 205Kt of copper and 1.9Moz of silver (Table 1).
The maiden MRE for the Storm Project has delivered the foundations to what American West Metals believe will be a globally significant copper district.
Immediate Resource Upside Potential
The shallow copper mineralisation within the Storm Deposits is open in all directions. The host stratigraphy and structures have been shown to be laterally and vertical extensive and therefore rank as high priority areas for resource growth.
Click here for the full ASX Release
This article includes content from American West Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
BHP and CBE Sign Letter of Intent to Explore for Tier 1 Copper-Silver Deposits in Botswana
Cobre Limited (ASX: CBE, Cobre or Company) is pleased to announce that it has executed a letter of intent to negotiate exclusively with a wholly owned subsidiary of BHP Group Ltd (BHP) for a material earn-in joint venture agreement over Cobre's Kitlanya West and East Copper Projects (Kitlanya Projects), located on the northern and southern basin margins of the Kalahari Copper Belt in Botswana (Proposed Transaction). The Proposed Transaction follows on from Cobre's successful participation in the BHP Xplor program which also provided funding for the recently completed seismic survey on the Kitlanya West project (see ASX announcements of 23 January 2024 and 22 August 2024)
The Proposed Transaction underscores Cobre's confidence in the potential for its projects to host Tier 1 copper-silver deposits. A partnership with BHP would provide the exploration scale and expertise to maximise our chances of making significant new discoveries on our basin margin exploration ground while retaining 100% ownership of our Ngami and Okavango Copper Projects which are excluded from the Proposed Transaction.
The Proposed Transaction is subject to approval and execution of formal binding documents (Definitive Agreements) and the completion of BHP's due diligence investigations within the exclusivity period. Final details of the Proposed Transaction will be released to the market following completion of the long-form documents.
Commenting on the Proposed Transaction, Adam Wooldridge, Cobre’s Chief Executive Officer, said:
“Successful negotiation and completion of this significant transaction with BHP, one of the world’s leading mining companies, will be a major moment in time for Cobre as a company. Participating in the BHP 2024 Xplor cohort has provided the opportunity to do a belt scale review of the Kalahari Copper Belt, culminating with the collection of seismic data over the prospective northern margin of the belt. The Proposed Transaction with BHP would allow us to fully fund our follow-on exploration programmes and focus on discovering the Tier 1 deposits we believe may be hosted in our Kitlanya West and East Projects.
Independently, Cobre will continue advancing its 100% owned in-situ copper recovery development at Ngami – with a scoping study due in early October - along with further drilling at Cobre’s 100% owned Okavango project. This combined strategy provides exposure to potential Tier 1 discoveries, a development opportunity at Ngami and short-term discoveries on our Okavango project.”
A locality map illustrating the project locations is provided in Figure 1.
Figure 1. Locality map illustrating the position of Cobre’s project areas. Green licenses are relevant tothe Proposed Transaction, dark grey licenses will be run independently by Cobre.
Cobre will continue to provide shareholders with further updates on material developments in respect of the Proposed Transaction.
This ASX release was authorised on behalf of the Cobre Board by: Adam Wooldridge, Chief Executive Officer.
Click here for the full ASX Release
This article includes content from Cobre Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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