WOW!!!

Ivanhoe Mines Announces Results

https://ceo.ca/@marketwired/ivanhoe-mines-announces-results-of-a-positive-independent

Summary of the PEA's key results for an initial Kakula Phase 1 Mine
Very high-grade initial phase of production is projected to have a grade of 8.1% copper in year two and an average grade of 7.52% copper over the initial five years of operations, resulting in estimated average annual copper production of 209,000 tonnes.
 
Peak annual copper production is estimated at 262,000 tonnes in year three.
 
Initial capital cost, including contingency, is estimated at US$1.0 billion, approximately US$200 million lower than previously estimated in the March 2016 Kamoa pre-feasibility study.
 
Average mine-site cash cost of US$0.37/lb of copper during the first 10 years (see details Table 4, page 10).
 
After-tax NPV, at an 8% discount rate, of US$3.7 billion, an increase of 272% compared to the after-tax NPV, at an 8% discount rate, of US$986 million estimated in the March 2016 Kamoa pre-feasibility study.
 
After-tax internal rate of return (IRR) of 38.0%, which is more than double the IRR of the 2016 Kamoa pre-feasibility study, and a payback period of 2.3 years.
 
Kakula is expected to produce a very-high-grade copper concentrate in excess of 50% copper, with extremely low arsenic levels.
 
Greatly expanded production scenario now under study as part of a new PEA could double the mining rate and is expected to further improve net present value

Sweet -

BERNSTEIN STARTS WITH OUTPERFORM; TARGET C$10 - Reuters
Alerts History
09-Dec-2016 05:54:29 AM - IVANHOE MINES LTD IVN.TO: BERNSTEIN STARTS WITH OUTPERFORM; TARGET PRICE C$10
IVANHOE MINES LTD IVN.TO: BERNSTEIN STARTS WITH OUTPERFORM; TARGET PRICE C$10 - Reuters News

Read more at http://www.stockhouse.com/companies/bullboard?symbol=ivn&postid=25576600#x1Q4cuqj7SeMQGWM.99

1.6 million shares traded on IVN.TO already. + .17

Any news out there?

From Stockhouse: Portion of the 11/28 conference call. Robert Friedland speaking. The conference call has been archived for later playback until December 12, 2016 and may be accessed by dialling +1 905-694-9451 or 1-800-408-3053 and entering the passcode 4305756.


Kipushi

On Financing:

I think we can just tell you that great mines always get financed.  That's rule number one.  And I can also make the editorial observation that the wind is very clearly now at our backs.  We used to be developing these assets with the wind blowing in our face.  So we now have a favourable tail wind, to say the least.  In fact, earlier today copper nearly touched $6,000 a tonne in London, and we don't think the rally's over yet.  So it's fair to say, as we've said in the past, that we have been approached by numerous — primarily financial — investors, as well as international industry participants in all of our assets.  So a lot of the capital cost to put Kipushi in production has already been borne; every day we're effectively putting the mine back in production.  When we rebuild the winders and the shafts and the skips and the Maryannes and the underground development, we are essentially going ahead with the capital to redevelop the mine.  So when we give you a new pre-feasibility study in the second quarter of 2017 we do expect the capital cost to be lower than it was a year or two ago by virtue of the fact that we are developing the mine now!  It's essentially being redeveloped now.

On Corporate Activity:

So far as our alternatives are concerned, as we've indicated publicly in the past, they range from bankers and investors interested in us taking Kipushi public as a pure play on zinc, which could be done with or without our partner, Gecamines, through a joint venture, or a joint public listing with other parties, or do an outright and complete sale.  If our shareholders think that that is an attractive thing to do we might go in that direction.  We don't negotiate against ourselves in the media, and we don't negotiate in public.  All we can tell you is that we are feeling better about our condition in the industry and in the evolution of these assets than we have ever felt in a twenty year period.  We have never been as strong as we are today, and we've never felt that we had as many suitors that would like to marry us as we have this evening.  So I'll just leave it at that.  Thank you.

On Developments in the Zinc Market:

We've also seen a very significant reduction in transportation costs.  So there's clearly a panic for zinc concentrate by the smelters.  That's definitely the case, since we've had an incredible decline in the costs [treatment charges].  We've also seen an incredibly significant reduction in transport costs.  So all the factors are now at the moment quite beneficial, with higher metals prices, greater interest from industry and financial people, and reduced treatment and transportation costs.  So I hope you keep tuned to the second quarter of 2017 when the Big Zinc will nearly be back in production.

On Progress at the Big Zinc:

You can go up there and literally kiss the Big Zinc.  When we bought the asset the mine was flooded, and the Big Zinc was sort of like the Loch Ness Monster: some people claimed to have seen it many times, but it was definitely under water.  Now you can go down there and kiss Loch Ness Monster any time you like.  We think an 80-metre-thick ore body with 35% zinc — with all the other metals, 42 or 43% equivalent — speaks for itself.

On Capital Savings:

We do think the capital cost is coming down.  And how far is it coming down?  Well, the more the better, actually.  But as the price of the metal skyrockets - last time I checked it's up 70% since January 1 — we are less and less sensitive to capital costs.  So we are looking at extremely attractive rates of return.  Now, how good is extreme?  Well, we'll let you know at the end of the second quarter when the numbers are independently audited.

On a Production Decision: 

I think we've already made the decision to put the richest zinc deposit in the world into production.  It's just that we can't give you the parameters around that decision without announcing an independent study.  We've spoken to Chinese players who've said, "why are you even bothering to do a feasibility study on the richest zinc mine in the world?!"  It's by definition richer than the other zinc deposits by a very wide margin, so by definition, it should be more economic, given that the capital has already been sunk.  This is a brownfields restart, not a greenfields development.  I think Kipushi is an asset that is not really understood by the mining industry.  I think that the continued drilling down-dip, the scale of the potential resource, and the unique geologic setting reminds me of what Dr Murray Hinzman told me.  Dr Hinzman is the head of the geology department at the Colorado School of Mines, and he made the remark that he thought that "the crack in the earth at Kipushi is the richest crack in the earth, period, full stop."  It rivals any ore in the world.  It's a lot more valuable per tonne than Voisey's Bay was, and you can go down and touch it.

Kamoa-Kakula

On Capital Commitments:

There are no particular capital commitments in our agreement with the Congolese government.  There is no reference to the capital commitments.  We are the owner of the licence.  We have all the rights, environmental rights and approvals, to go ahead and develop the mine, but we are not subject to any particular schedule or capital commitments.  Of course, we want to develop a historically important groundbreaking mine as quickly as we can do so safely and efficaciously.

On Exploration Opportunities:

We hold about a 460 square kilometer mining licence, which holds essentially a perpetual mining right.  Everything developed on that licence would be subject to this new agreement with the Congolese government and in fact with Zijin, our current partner.  Outside of that area we hold a lot of very important proprietary geological information about where there very well might be additional Kamoas or Kakulas.  However, all of that work would be only for our own account, subject to the government's interest of 5% under the 1912 mining law.  So we do have a broad regional interest in exploration which would be held totally by Ivanhoe Mines and would not involve our joint venture with Zijin or in fact this new agreement with the Congolese government.  And in future I hope we can tell you more good news about where we hope to find more Kakulas.

On Financing:

We see no issue in procuring debt finance in China, let alone from other international sources.  The highest grade copper mine in the world always gets financed.

On Kansoko Sud vs. Kakula:

The declines in both cases are production declines.  And there's nothing to say you can't mine 4 million tonnes a year at Kakula, and also mine 1 or 2 million tonnes a year of much higher-grade ore out of Kansoko Sud.  They can both supplement each other.  They're both giant resources.  It's just that the very best is the enemy of what used to be the very best, but is no longer the very best.  It's in the miserable nature of our business that the best ore always is supposed to get to the concentrator first.  It's a nice, elegant problem to have.
 
On Kakula Resource Estimation:
 
When we announced the first estimate it was already obsolete by the time we announced it.

On the Current Drill Programme:

We're running about five rigs to the rain.  We have been doing some step-out drilling, particularly to the north-west, and I think I can tell you that we will probably be updating the Kakula resource for many years.  For many years.  Geologically it's open in many directions, and there may be more Kakulas to come!!!

Read more at http://www.stockhouse.com/companies/bullboard?symbol=ivn&postid=25549905#MQyfQ1hA3HhWwswm.99

From Stockhouse -

DR congo peaceful transition agreement
Ignore the media noise , read the facts of the agreement signed on by the vast majority of opposition leaders ...the population has had enough of violent transitions and will prove it to the world in 18 months , this country can become the richest in Africa if all work for the greater good .

 “The DRC is at a pivotal moment in its history. For the first time, a peaceful transition of power at the end of the president’s mandate is possible.” (11/14/16)   French Ambassador to the United Nations

https://ambardcusa.org/drc-national-dialogue-agreement-and-steps-toward-presidential-election/

Read more at http://www.stockhouse.com/companies/bullboard?symbol=ivn&postid=25544322#7JYj8xaeuRSZLOXY.99

That is a very informative and extremely bullish article.

More to come!!!

Happy Thanksgiving to all that believe in free markets!!!

The great Thanksgiving hoax

Editor’s Note: On this Thanksgiving Day, we share an essay on the real story of Thanksgiving... the one that’s been deleted from the history books. Our friend Richard Maybury presents it to you. Richard is a master historian, philosopher, and economist.


Edited by J. Reeves | November 24, 2016 | Delray Beach, Fla.

From Richard Maybury, publisher, The Early Warning Report: Each year at this time, schoolchildren all over America are taught the official Thanksgiving story.

Newspapers, radio, TV, and magazines devote vast amounts of time and space to it. It’s all very colorful and fascinating.

It’s also very deceiving. This official story is nothing like what really happened. It’s a fairy tale, a whitewashed and sanitized collection of half-truths that divert attention away from Thanksgiving’s real meaning.

The official story has the pilgrims boarding the Mayflower, coming to America, and establishing the Plymouth Colony in the winter of 1620–1621. This first winter is hard, and half the colonists die.
But the survivors are hardworking and tenacious, and they learn new farming techniques from the Indians. The harvest of 1621 is bountiful. The pilgrims hold a celebration and give thanks to God.
They’re grateful for the wonderful new abundant land He has given them.

--

The official story then has the pilgrims living more or less happily ever after, repeating the first Thanksgiving each year.
Other early colonies also have hard times at first, but they soon prosper and adopt the annual tradition of giving thanks for this prosperous new land called America.

The problem with this official story is the harvest of 1621 was not bountiful, nor were the colonists hardworking or tenacious. 1621 was a famine year, and many of the colonists were lazy thieves.

In his History of Plymouth Plantation, the governor of the colony, William Bradford, reported that the colonists went hungry for years because they refused to work in the fields.

Instead, they preferred to steal food. He says the colony was riddled with “corruption” and “confusion and discontent.” The crops were small because “much was stolen both by night and day, before it became scarce eatable.”

In the harvest feasts of 1621 and 1622, “all had their hungry bellies filled,” but only briefly. The prevailing condition during those years was not the abundance the official story claims.
It was famine and death.

The first “Thanksgiving” was not so much a celebration as it was the last meal of condemned men.

But in subsequent years, something changed. The harvest of 1623 was different. Suddenly, “instead of famine, now God gave them plenty,” Bradford wrote, “and the face of things was changed, to the rejoicing of the hearts of many, for which they blessed God.”
Thereafter, he wrote, “any general want or famine hath not been amongst them since to this day.” In fact, in 1624, so much food was produced, the colonists were able to begin exporting corn.

--

What happened?
After the poor harvest of 1622, writes Bradford, “they began to think how they might raise as much corn as they could, and obtain a better crop.” They began to question their form of economic organization.

This had required “all profits and benefits that are got by trade, working, fishing, or any other means” to be placed in the common stock of the colony, and that “all such persons as are of this colony, are to have their meat, drink, apparel, and all provisions out of the common stock.”

A person was to put into the common stock all he could and take out only what he needed.

This “from each according to his ability, to each according to his need” idea was an early form of socialism, and it’s why the pilgrims were starving.

Bradford writes “young men that are most able and fit for labor and service” complained about being forced to “spend their time and strength to work for other men’s wives and children.”
Also, “The strong, or man of parts, had no more in division of victuals and clothes than he that was weak.” So the young and strong refused to work, and the total amount of food produced was never adequate.

To rectify this situation, Bradford abolished socialism in 1623. He gave each household a parcel of land and told them they could keep what they produced or trade it away as they saw fit.
In other words, he replaced socialism with a free market, and that was the end of famines.

Many early groups of colonists set up socialist states, all with the same terrible results.

At Jamestown, established in 1607, out of every shipload of settlers that arrived, less than half would survive their first 12 months in America. Most of the work was being done by only one-fifth of the men, the other four-fifths choosing to be parasites.
In the winter of 1609–1610, called “The Starving Time,” the population fell from 500 to 60.

Then the Jamestown colony was converted to a free market, and the results were every bit as dramatic as those at Plymouth.
In 1614, Colony Secretary Ralph Hamor wrote that after the switch, there was “plenty of food, which every man by his own industry may easily and doth procure.” He said that when the socialist system had prevailed, “we reaped not so much corn from the labors of 30 men as three men have done for themselves now.”

--

Before these free markets were established, the colonists had nothing for which to be thankful. They were in the same situation as Ethiopians are today, and for the same reasons.

But after free markets were established, the resulting abundance was so dramatic, the annual Thanksgiving celebrations became common throughout the colonies.

And in 1863, Thanksgiving became a national holiday.

Thus the real reason for Thanksgiving, deleted from the official story, is: Socialism does not work. The one and only source of abundance is free markets, and we thank God we live in a country where we can have them.

The great Thanksgiving hoax

Editor’s Note: On this Thanksgiving Day, we share an essay on the real story of Thanksgiving... the one that’s been deleted from the history books. Our friend Richard Maybury presents it to you. Richard is a master historian, philosopher, and economist.


Edited by J. Reeves | November 24, 2016 | Delray Beach, Fla.

From Richard Maybury, publisher, The Early Warning Report: Each year at this time, schoolchildren all over America are taught the official Thanksgiving story.

Newspapers, radio, TV, and magazines devote vast amounts of time and space to it. It’s all very colorful and fascinating.

It’s also very deceiving. This official story is nothing like what really happened. It’s a fairy tale, a whitewashed and sanitized collection of half-truths that divert attention away from Thanksgiving’s real meaning.

The official story has the pilgrims boarding the Mayflower, coming to America, and establishing the Plymouth Colony in the winter of 1620–1621. This first winter is hard, and half the colonists die.
But the survivors are hardworking and tenacious, and they learn new farming techniques from the Indians. The harvest of 1621 is bountiful. The pilgrims hold a celebration and give thanks to God.
They’re grateful for the wonderful new abundant land He has given them.

--

The official story then has the pilgrims living more or less happily ever after, repeating the first Thanksgiving each year.
Other early colonies also have hard times at first, but they soon prosper and adopt the annual tradition of giving thanks for this prosperous new land called America.

The problem with this official story is the harvest of 1621 was not bountiful, nor were the colonists hardworking or tenacious. 1621 was a famine year, and many of the colonists were lazy thieves.

In his History of Plymouth Plantation, the governor of the colony, William Bradford, reported that the colonists went hungry for years because they refused to work in the fields.

Instead, they preferred to steal food. He says the colony was riddled with “corruption” and “confusion and discontent.” The crops were small because “much was stolen both by night and day, before it became scarce eatable.”

In the harvest feasts of 1621 and 1622, “all had their hungry bellies filled,” but only briefly. The prevailing condition during those years was not the abundance the official story claims.
It was famine and death.

The first “Thanksgiving” was not so much a celebration as it was the last meal of condemned men.

But in subsequent years, something changed. The harvest of 1623 was different. Suddenly, “instead of famine, now God gave them plenty,” Bradford wrote, “and the face of things was changed, to the rejoicing of the hearts of many, for which they blessed God.”
Thereafter, he wrote, “any general want or famine hath not been amongst them since to this day.” In fact, in 1624, so much food was produced, the colonists were able to begin exporting corn.

--

What happened?
After the poor harvest of 1622, writes Bradford, “they began to think how they might raise as much corn as they could, and obtain a better crop.” They began to question their form of economic organization.

This had required “all profits and benefits that are got by trade, working, fishing, or any other means” to be placed in the common stock of the colony, and that “all such persons as are of this colony, are to have their meat, drink, apparel, and all provisions out of the common stock.”

A person was to put into the common stock all he could and take out only what he needed.

This “from each according to his ability, to each according to his need” idea was an early form of socialism, and it’s why the pilgrims were starving.

Bradford writes “young men that are most able and fit for labor and service” complained about being forced to “spend their time and strength to work for other men’s wives and children.”
Also, “The strong, or man of parts, had no more in division of victuals and clothes than he that was weak.” So the young and strong refused to work, and the total amount of food produced was never adequate.

To rectify this situation, Bradford abolished socialism in 1623. He gave each household a parcel of land and told them they could keep what they produced or trade it away as they saw fit.
In other words, he replaced socialism with a free market, and that was the end of famines.

Many early groups of colonists set up socialist states, all with the same terrible results.

At Jamestown, established in 1607, out of every shipload of settlers that arrived, less than half would survive their first 12 months in America. Most of the work was being done by only one-fifth of the men, the other four-fifths choosing to be parasites.
In the winter of 1609–1610, called “The Starving Time,” the population fell from 500 to 60.

Then the Jamestown colony was converted to a free market, and the results were every bit as dramatic as those at Plymouth.
In 1614, Colony Secretary Ralph Hamor wrote that after the switch, there was “plenty of food, which every man by his own industry may easily and doth procure.” He said that when the socialist system had prevailed, “we reaped not so much corn from the labors of 30 men as three men have done for themselves now.”

--

Before these free markets were established, the colonists had nothing for which to be thankful. They were in the same situation as Ethiopians are today, and for the same reasons.

But after free markets were established, the resulting abundance was so dramatic, the annual Thanksgiving celebrations became common throughout the colonies.

And in 1863, Thanksgiving became a national holiday.
Thus the real reason for Thanksgiving, deleted from the official story, is: Socialism does not work. The one and only source of abundance is free markets, and we thank God we live in a country where we can have them.

Happy Thanksgiving Day!!!

BMO Nesbitt Burns reinstates IVN with a $3.25 target
Read more at http://www.stockhouse.com/companies/bullboard?symbol=ivn&postid=25435497#QFlibvwl88Zi6AhO.99

Kakula Is Copper-Grade Royalty; Reinstating Coverage at Outperform

Bottom Line: We are reinstating coverage of Ivanhoe Mines with an Outperform rating driven by our assessment of the Kakula discovery’s exceptional initial resource (October 2016) and development implications. In our opinion, the market has only partially reflected the value at Kakula and we expect further revaluation from delivery of engineering and development milestones.

Key Points

The October 12 initial resource at Kakula - in our opinion - elevates the discovery's value above Ivanhoe’s other assets and should attract the majority of the market’s attention. Kakula’s exceptionally high grades should allow early mining at almost twice the grade of Kamoa in addition to being thicker, flatter, and shallower. Kakula is the only large discovery we are aware of minable at 6+% copper.

For its three largest assets, Ivanhoe has arranged joint ventures to reduce financing risk. Zijin Mining is currently earning into a 32% interest in Kakula and Kamoa (with US$82.4mm in payments left to complete) and holds a 9.9% interest in Ivanhoe mines. JOGMEC has purchased a 10% interest in the Platreef deposit. In our opinion, joint ventures on these sizeable assets still leave significant exposure for Ivanhoe’s shareholders and do not extinguish potential takeover upside – a significant portion of world-class assets owned/developed/operated under joint ventures.
In our opinion, the most apparent risks visible for Ivanhoe investors is financing and political risks. We expect that by accessing debt, relying on their joint venture partners, and staggering development timelines of their assets, management should be able to secure financing requirements. While there remain uncertainties within the DRC, we would suggest that the operating track record of the large operating copper deposits in Southern Congo, several owned by major producers, shows that development and operations are possible.
Potential Catalysts:
Late 2016 - Kakula PEA (Preliminary economic assessment) and fast-tracking
towards development
Early 2017 – Platreef Feasibility – targeting grade scheduling and costs improvements
Early 2017 - Kipushi Feasibility - targeting capital cost reductions
Kakula Exploration Upside – ongoing extensional drilling to NW/SE and potential for additional targets on the larger Kamoa mining concession.

A look at the proposed changes to the DRC's mining code. The proposed changes were dropped in February.

Activists in the Democratic Republic of Congo are pressing the government to revive plans for a new mining code, claiming the country, which is Africa’s top copper producer and the world’s largest source of cobalt, needs the higher revenues a revised legislation would generate.

Congo began reviewing the 2002 mining code in 2012 and last year it proposed hiking profit taxes to 35% from 30%, raising the state’s free share of new mining projects to 10% from 5% and royalties on copper and cobalt revenue to 3.5% from 2%.

In February, however, authorities dropped the planned changes as the move could have driven away investors at a time of historically low commodity prices and energy shortages that were driving down output in the country.

http://www.mining.com/activists-urge-congo-government-to-pass-new-mining-code/?utm_source=digest-en-mining-161028&utm_medium=email&utm_campaign=digest

Good post!

Just a little clarification -

The Japanese paid $290,000,000 for 10% of the Platreef Project in South Africa. They have no ownership in Kapushi or Kamoa. They felt that Platreef, alone, was worth $2.9 billion back in 2010/2011.

Ivanhoe's Platreef Project's drilling program vastly extended the size and volume of resources since then -

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-announces-platreef-project-less-than-br-greater-than-in-south-africa-s-limpopo-province-n-672728

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-announces-platreef-project-less-than-br-greater-than-in-south-africa-s-limpopo-province-n-672728

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-announces-platreef-project-less-than-br-greater-than-in-south-africa-s-limpopo-province-n-672728

I firmly believe that Ivanhoe would have a higher current market cap without the Congo assets, although, these assets should add a huge amount of share price appreciation in the future.


Ivanhoe has a 64% indirect ownership stake in the project; the South African beneficiaries of the approved broad-based, black economic empowerment structure have a 26% stake and the remaining 10% will continue to be owned by a Japanese consortium of ITOCHU Corporation; ITC Platinum Development Ltd., an ITOCHU affiliate; Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation. The Japanese consortium’s 10% interest in the Platreef Project was acquired in two tranches in 2010 and 2011 for a total investment of US$290 million; the remaining proceeds of the consortium’s investment are continuing to fund development work on the project.
https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-announces-platreef-project-less-than-br-greater-than-in-south-africa-s-limpopo-province-n-672728

More cash -

VANCOUVER, CANADA — Ivanhoe Mines (TSX:IVN) announced today that it has received the third installment of US$41.2 million owing from a subsidiary of Zijin Mining Group Co., Ltd. as part of a strategic co-development agreement under which Zijin acquired 49.5% of Ivanhoe’s majority stake in the Kamoa-Kakula copper discovery now being jointly developed by Ivanhoe and Zijin in the Democratic Republic of Congo.

Zijin – through its subsidiary, Gold Mountains (H.K.) International Mining Company Limited – agreed to pay US$412 million for a 49.5% interest in Ivanhoe subsidiary Kamoa Holding Limited that presently owns 95% of the Kamoa-Kakula Project. Zijin paid an initial US$206 million at closing in December last year, followed by the payment of the first two of five scheduled US$41.2 million installments in March and July of this year.

The receipt of the third installment from Zijin has increased Ivanhoe’s consolidated working capital to approximately US$395 million (C$529 million). This represents approximately C$0.68 per issued and outstanding common share of Ivanhoe Mines.
The remaining US$82.4 million is required to be paid in two further equal installments, every 3.5 months, with the next installment due on February 8, 2017. The installment payments are secured by a pledge of shares of Kamoa Holding Limited with proportionate releases of the security on the pledged shares following receipt of each installment payment.

Serbia: Canadian Nevsun investing USD 60 million in gold exploration around Bor

http://miningsee.eu/serbia-canadian-nevsun-investing-usd-60-million-in-gold-exploration-around-bor/

16 Oct, 2016 MiningSee

The Canadian mining company Nevsun, which has recently acquired exploration rights at the Cukaru Peki site near Bor, potentially the richest copper and gold site in the world, intends to complete geological exploration of the area by late 2017, following which the preparations for the opening of the mine will begin.

With USD 60 million at its disposal, Nevsun intends to explore 113 kilometers more by September 2017, after which they will start preparing the feasibility study and the study on opening the mine, which, as it has now been confirmed, will be exploited through underground mining methods, as the copper and the gold are located at great depths.

Parallel to this, Nevsun plans to carry out all the accompanying work, like getting the necessary permits for opening the mine, purchasing the land, preparing the study on environmental impact, the manner of exploitation and ore processing.

Nevsun will invest up to USD 40 million in the exploration of the upper zone of the Cukaru Peki site and explore 50,000 meters. They will invest USD 20 million in the lower zone of the site, where they are partners with the American mining corporation Freeport McMoran, in order to explore an additional 67,000 meters and definitely put an end to the geological exploration of this area.
The latest research shows that, in one of the boreholes, at the depth of 179 meters, a layer of 84 meters has been found, with the copper content of 10.75% and gold at 10.86 grams per ton. In another borehole, a deposit of the incredible 15.85% of cooper and as much as 16.77 grams of gold per ton has been found in a 46 m layer.

For comparison, ore with no more than 0.4% of copper is currently being exploited in the mines belonging to MSC Bor. Sites containing 1% of copper, if accompanied by adequate amounts of ore, are considered profitable. The best indication on how rich the site is is the fact that in the past 110 years of mining at Bor, five million tons of copper and nearly 160 tons of gold have been extracted.

The starting resources of 1.7 million tons of copper and 98 tons of gold have been determined at the Cukaru Peki site. At the depth of 558 to 559 meters, a resources of the incredible 25.7% of copper and 50.3 grams of gold per ton has been discovered, which makes it the richest borehole on the planet so far.

source: ekapija.com

I jumped in this morning. Really like what I see here.

From today's PR -

Indicated Resources are defined when the drill-hole spacing approximates a 400-metre grid, while Inferred Resources are defined when the drill-hole spacing approximates an 800-metre grid.

Kamoa-Kakula Project Now Demonstrated to Be the Largest Copper Discovery Ever Made on the African ContinentKamoa-Kakula Ranks Among the World's 10 Largest Copper Deposits - and Stands as the World's Largest, High-Grade Copper Deposit - Following a New Mineral Resource Estimate Kakula - the Second Major Discovery at Kamoa - Contains Indicated Mineral Resources Estimated at 66 Million Tonnes at 6.59% Copper Plus Inferred Resources of 27 Million Tonnes at 5.26% Copper, at a 3% Cut-Off Kakula Also Contains Indicated Mineral Resources Estimated at 192 Million Tonnes at 3.45% Copper Plus Inferred Resources of 101 Million Tonnes at 2.74% Copper, at a 1% Cut-Off Kakula's Addition Boosts the Combined Kamoa-Kakula Indicated Mineral Resources to 944 Million Tonnes at 2.83% Copper Plus Inferred Resources of 286 Million Tonnes at 2.31% Copper, at a 1% Cut-Off

MARKETWIRE - CANADA 6:30 AM ET 10/12/2016
Symbol Last Price Change
IVPAF 1.648down 0 (0%)
QUOTES AS OF 03:59:52 PM ET 10/11/2016

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO--(Marketwired - Oct. 12, 2016) - Robert Friedland, Executive Chairman of Ivanhoe Mines(IVPAF) , and Lars-Eric Johansson, Chief Executive Officer, announced today that the company has completed an independently verified, initial Mineral Resource estimate for the extremely-high-grade Kakula Discovery on the Tier One Kamoa Copper Project, near the mining centre of Kolwezi in the Democratic Republic of Congo (DRC). The Kamoa-Kakula Project is a joint venture between Ivanhoe Mines(IVPAF), Zijin Mining and the Government of the Democratic Republic of Congo.

Kakula is the second major discovery on the Kamoa mining licence in the past eight years. Now, with the addition of Kakula's Mineral Resources, research by Wood Mackenzie - a prominent, international industry research and consulting group, based in the U.K. - has independently demonstrated that the Kamoa-Kakula Project is the largest copper discovery in Zambia and the DRC, making it the largest copper discovery ever made in the history of mining on the African continent. In addition, research by Wood Mackenzie also shows that Kamoa-Kakula already ranks among the 10 largest copper deposits in the world.

"With the initial resource now established, we are evaluating technical and infrastructure options to rapidly advance the development of the near-surface, highest-grade copper resources at Kakula," said Mr. Friedland. "Our mine planning will focus on how to expeditiously develop the zones of thick, bottom-loaded chalcocite, grading in excess of 6% copper, near the centre of Kakula's high-grade area.

"Given that the copper grades at Kakula are significantly higher than the average grades found elsewhere at Kamoa, we are highly confident that fast-tracking the development of Kakula will have a profound and positive impact on the economics of the overall Kamoa-Kakula Project."

The 60-square-kilometre Kakula Exploration Area is approximately 10 kilometres southwest of Kamoa's initial mine development presently underway at the Kansoko Sud Discovery (see Figure 1). Ivanhoe and Zijin have been conducting an aggressive drilling program at the Kakula exploration target since April 2016. More than 31,000 metres of drilling already have been completed. Given the outstanding success to date in delineating high-grade copper resources, the Kakula drilling program has been expanded by 60,000 metres and will continue unabated into 2017.

Highlights of the initial Kakula Mineral Resource estimate, prepared by Ivanhoe Mines(IVPAF) under the direction of Amec Foster Wheeler E&C Services Inc. (Amec Foster Wheeler), of Reno, Nevada, in accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves:


-- Indicated Resources total 192 million tonnes at a grade of 3.45% copper,
containing 14.6 billion pounds of copper at a 1% copper cut-off. At a 2%
copper cut-off, Indicated Resources total 115 million tonnes at a 4.80%
copper grade, containing 12.1 billion pounds of copper. At a higher cut-
off of 3% copper, Indicated Resources total 66 million tonnes at a grade
of 6.59% copper, containing 9.6 billion pounds of copper.
-- Inferred Resources total 101 million tonnes at a grade of 2.74% copper,
containing 6.1 billion pounds of copper at a 1% copper cut-off. At a 2%
copper cut-off, Inferred Resources total 51 million tonnes at a 3.92%
copper grade, containing 4.4 billion pounds of copper. At a higher cut-
off of 3% copper, Inferred Resources total 27 million tonnes at a grade
of 5.26% copper, containing 3.2 billion pounds of copper.
-- The average true thickness of the selective mineralized zone (SMZ) at a
1% cut-off is 14.27 metres in the Indicated Resources area and 10.33
metres in the Inferred Resources area. At a higher 3% cut-off, the
average true thickness of the SMZ is 5.91 metres in the Indicated
Resources area and 5.15 metres in the Inferred Resources area.

This Kakula Mineral Resource has been defined by drilling covering a total area of 8.7 square kilometres within the larger 60-square-kilometre Kakula Exploration Area. The total areal extent of Indicated Resource is 4.6 square kilometres at a 1% cut-off and the areal extent of the Inferred Resource is 3.3 square kilometres at a 1% cut-off. The average dip of the mineralized zone in the Indicated Resource area is 13 degrees, while the average dip is 16 degrees in the Inferred Resource area.

Mineralization is open along trend to the northwest and the southeast, while the remainder of the Kakula exploration area remains untested (see Figure 2). The Mineral Resource estimate is based on the results from approximately 24,000 metres of drilling in 65 holes. An additional 13 holes totalling more than 7,000 metres have been completed and assay results are pending.

Indicated Resources are defined when the drill-hole spacing approximates a 400-metre grid, while Inferred Resources are defined when the drill-hole spacing approximates an 800-metre grid.

The Kakula Mineral Resource estimate was prepared by Ivanhoe Mines(IVPAF) under the direction of Dr. Harry Parker and Gordon Seibel, both RM SME, of Amec Foster Wheeler. Dr. Parker and Mr. Seibel are the Qualified Persons for the estimate, which has an effective date of October 9, 2016. A technical report will be filed on SEDAR at www.sedar.com and on the Ivanhoe Mines(IVPAF) website at www.ivanhoemines.com within 45 days of the issuance of this news release.

The Kakula Mineral Resources, along with sensitivities at various cut-offs, are shown in tables 1, 2 and 3.



Table 1. Indicated and Inferred Mineral Resources at a 1% cut-off grade,
Kakula Discovery.

----------------------------------------------------------------------------
Contained Contained
Category Tonnage Area Copper True Thickness Copper Copper
(Mt) (km2) (%) (metres) (kTonnes) (billion lbs)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indicated 192 4.6 3.45 14.3 6,630 14.6
----------------------------------------------------------------------------
Inferred 101 3.3 2.74 10.3 2,763 6.1
----------------------------------------------------------------------------

Notes:


1. Ivanhoe's Mineral Resources Manager George Gilchrist, a Member of the
Geology Society of South Africa and Professional Natural Scientist (Pr.
Sci. Nat) with the South African Council for Natural Scientific
Professions (SACNASP), estimated the Mineral Resources under the
supervision of Dr. Harry Parker and Gordon Seibel, both RM SME, who are
the Qualified Persons for the Mineral Resources. The effective date of
the estimate is October 9, 2016. Mineral Resources are estimated using
the CIM Definition Standards for Mineral Resources and Reserves (2014).
2. For the Kakula Discovery, Mineral Resources are reported using a total
copper (TCu) cut-off grade of 1% TCu and an approximate minimum
thickness of 3 metres. A 1% TCu cut-off is a natural cut-off grade on
the Central African Copperbelt. There are reasonable prospects for
eventual economic extraction under assumptions of a copper price of
US$3.00/lb, employment of underground, mechanized, room-and-pillar and
drift-and-fill mining methods, and that copper concentrates will be
produced and sold to a smelter. Mining costs are assumed to be $38/t.
Concentrator and General and Administrative (G&A) costs are assumed to
be $19/t. Metallurgical recovery is assumed to be 77% at the 1% TCu cut-
off and 88% at the average grade of the Mineral Resource.. Ivanhoe is
studying (Preliminary Economic Assessment in progress) reducing mining
costs using a convergence backfill method.
3. Reported Mineral Resources contain no allowances for hanging wall or
footwall contact boundary loss and dilution. No mining recovery has been
applied.
4. Rounding as required by reporting guidelines may result in apparent
differences between tonnes, grade and contained metal content.


Table 2. Kakula Discovery Indicated Mineral Resources, Sensitivity Cases.

----------------------------------------------------------------------------
Contained
Cut-off Tonnes Area Copper True Contained Copper
Category Grade (millions) (Sq. km) Grade Thickness Copper (billion
(Cu%) (metres-m) (kTonnes) lbs)
----------------------------------------------------------------------------
Indicated 7.0 27 1.4 8.25% 6.3 (m) 2,242 4.9
----------------------------------------------------------------------------
Indicated 6.0 42 2.1 7.69% 6.6 (m) 3,220 7.1
----------------------------------------------------------------------------
Indicated 5.0 51 2.7 7.29% 6.5 (m) 3,711 8.2
----------------------------------------------------------------------------
Indicated 4.0 62 3.4 6.78% 6.1 (m) 4,211 9.3
----------------------------------------------------------------------------
Indicated 3.0 66 3.8 6.59% 5.9 (m) 4,351 9.6
----------------------------------------------------------------------------
Indicated 2.5 75 4.0 6.13% 6.3 (m) 4,579 10.1
----------------------------------------------------------------------------
Indicated 2.0 115 4.3 4.80% 9.2 (m) 5,504 12.1
----------------------------------------------------------------------------
Indicated 1.5 139 4.4 4.24% 10.9 (m) 5,899 13.0
----------------------------------------------------------------------------
Indicated 1.0 192 4.6 3.45% 14.3 (m) 6,630 14.6
----------------------------------------------------------------------------

Table 3. Kakula Discovery Inferred Mineral Resources, Sensitivity Cases.

----------------------------------------------------------------------------
Contained
Cut-off Tonnes Area Copper True Contained Copper
Category Grade (millions) (Sq. km) Grade Thickness Copper (billion
(Cu%) (metres-m) (ktonnes) lbs)
----------------------------------------------------------------------------
Inferred 7.0 1 0.1 7.47% 4.2 (m) 72 0.2
----------------------------------------------------------------------------
Inferred 6.0 8 0.4 6.50% 6.2 (m) 490 1.1
----------------------------------------------------------------------------
Inferred 5.0 18 0.9 5.89% 6.4 (m) 1,076 2.4
----------------------------------------------------------------------------
Inferred 4.0 23 1.3 5.60% 5.8 (m) 1,283 2.8
----------------------------------------------------------------------------
Inferred 3.0 27 1.8 5.26% 5.2 (m) 1,445 3.2
----------------------------------------------------------------------------
Inferred 2.5 31 2.0 4.98% 5.2 (m) 1,537 3.4
----------------------------------------------------------------------------
Inferred 2.0 51 2.2 3.92% 7.7 (m) 2,018 4.4
----------------------------------------------------------------------------
Inferred 1.5 75 2.6 3.21% 9.8 (m) 2,412 5.3
----------------------------------------------------------------------------
Inferred 1.0 101 3.3 2.74% 10.3 (m) 2,763 6.1
----------------------------------------------------------------------------

High-grade Kakula Discovery presents game-changing opportunities for Kamoa-Kakula development

Mineralization at Kakula is substantively thicker and higher grade than elsewhere on the Kamoa mining licence; it also is consistently bottom-loaded and will support the construction of selective mineralized zone (SMZ) composites at cut-offs up to at least 3% copper. The lateral consistency of mineralization at these higher cut-offs presents significant opportunities for mine planning, with large areas of the resource having average grades in excess of 6% when using the 3% SMZ.

The Kakula resource model was constructed using a series of nested grade shells at 1%, 2% and 3% cut-offs. A minimum thickness of 3.0 metres was applied to the 3% grade shell and the outer shells were nested above and below this central shell. The resultant model allows the flexibility to show distribution of grades and thicknesses across the various grade shells and highlight Kakula's outstanding, high-grade potential.

Figures 3 and 4, below, show the distribution of grades and thicknesses across the 3% copper shell, while figures 5 and 6 show the distribution of thicknesses and grades across the base-case 1% copper shell.

Kakula Exploration Area provides significant potential for resource expansion.

The Kakula Discovery remains open along a northwesterly-southeasterly strike and there is considerable potential for resource expansion within the Kakula Exploration Area. High-grade copper mineralization has been outlined along a corridor that is currently approximately one kilometre wide and at least four kilometres in length. This high-grade corridor lies within an area of 8.7 square kilometres over which resources have been delineated.

Encompassing the area of defined resources, the highly-prospective, 66-square-kilometre Kakula Exploration Area remains largely unexplored (see Figure 2). Four drill rigs are focusing on expanding the Inferred Resource, drilling step-out holes to the southeast and northwest of Kakula's currently defined high-grade core. One rig is drilling infill holes to expand the Indicated Mineral Resource, while a sixth rig is focusing on shallow drilling to define stratigraphy and the weathering profile in the area outlined for a potential box cut.

To view Figure 1. Kamoa-Kakula Project map shows the planned initial mining area at Kansoko Sud and the adjacent Kakula Discovery exploration area, please visit: http://media3.marketwire.com/docs/1072252f1.jpg

To view Figure 2. Kakula Exploration Area showing grade of Indicated and Inferred Resource blocks at a 3% selective mineralized zone cut-off, please visit: http://media3.marketwire.com/docs/1072252f2.jpg

To view Figure 3. Average grades of Indicated and Inferred blocks in Kakula's 3% selective mineralized zone, please visit: http://media3.marketwire.com/docs/1072252f3.jpg

The Indicated and Inferred Resource perimeters indicate a confidence classification. Cut-off criteria are applied within the perimeters to state Mineral Resources.

To view Figure 4. Average true thickness of Kakula's 3% selective mineralized zone Indicated and Inferred blocks, please visit: http://media3.marketwire.com/docs/1072252f4.jpg

The Indicated and Inferred Resource perimeters indicate a confidence classification. Cut-off criteria are applied within the perimeters to state Mineral Resources.

To view Figure 5. Average grades of Indicated and Inferred blocks in Kakula's 1% selective mineralized zone, please visit: http://media3.marketwire.com/docs/1072252f5.jpg

The Indicated and Inferred Resource perimeters indicate a confidence classification. Cut-off criteria are applied within the perimeters to state Mineral Resources.

To view Figure 6. Average true thickness of Kakula's 1% selective mineralized zone Indicated and Inferred blocks, please visit: http://media3.marketwire.com/docs/1072252f6.jpg

The Indicated and Inferred Resource perimeters indicate a confidence classification. Cut-off criteria are applied within the perimeters to state Mineral Resources.

Kakula's newly defined resources add to an already world-class resource base at the Kamoa-Kakula Project

Kakula's estimated resources are in addition to the Mineral Resources delineated elsewhere on the Kamoa mining licence that were disclosed by Ivanhoe Mines(IVPAF) in a news release on February 23, 2016.

The combined Kamoa-Kakula Indicated Mineral Resources now total 944 million tonnes grading 2.83% copper, containing 58.9 billion pounds of copper at a 1.0% copper cut-off grade and a minimum thickness of three metres.

Kamoa-Kakula now also has Inferred Mineral Resources of 286 million tonnes grading 2.31% copper and containing 14.6 billion pounds of copper, also at a 1.0% copper cut-off grade and a minimum thickness of three metres.


The total consolidated Mineral Resource for the Kamoa-Kakula Project is shown in Table 4 and the sensitivity of the resource at various cut-offs is shown in Table 5.




Table 4. Consolidated Mineral Resource Statement, Kamoa-Kakula Project -
October 9, 2016, 1% copper cut-off over minimum thickness of 3 metres.

----------------------------------------------------------------------------
Contained
Tonnes Area Copper True Contained Copper
Deposit Category (millions) (Sq. km) Grade Thickness Copper (billion
(metres-m) (kTonnes) lbs)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Kamoa Indicated 752 50.5 2.67% 5.2 (m) 20,110 44.3
--------------------------------------------------------------------
Inferred 185 16.8 2.08% 3.8 (m) 3,840 8.5
----------------------------------------------------------------------------
Kakula Indicated 192 4.6 3.45% 14.3 (m) 6,630 14.6
--------------------------------------------------------------------
Inferred 101 3.3 2.74% 10.3 (m) 2,763 6.1
----------------------------------------------------------------------------
Total
Kamoa
Project Indicated 944 55.1 2.83% 6.0 (m) 26,740 58.9
--------------------------------------------------------------------
Inferred 286 20.1 2.31% 4.9 (m) 6,603 14.6
----------------------------------------------------------------------------

Notes to Accompany Kamoa Project Mineral Resource Table:


1. Ivanhoe's Mineral Resources Manager, George Gilchrist, Professional
Natural Scientist (Pr. Sci. Nat) with the South African Council for
Natural Scientific Professions (SACNASP), estimated the Mineral
Resources under the supervision of Dr. Harry Parker and Gordon Seibel,
both RM of Society of Mining, Metallurgy and Exploration (SME), who are
the Qualified Persons for the Mineral Resource estimate. The effective
date of the estimate is 9 October 2016. Mineral Resources are estimated
using the 2014 CIM Definition Standards for Mineral Resources and
Mineral Reserves.
2. Mineral Resources are estimated assuming underground mining methods, a
copper price of US$3.30/lb (Kamoa) and US$3.00/lb (Kakula Discovery), a
cut-off of 1% total copper, a minimum thickness of 3 m, and that
concentrates will be produced and sent to a smelter.
3. Tonnage and contained-copper tonnes are reported in metric units,
contained-copper pounds are reported in imperial units and grades are
reported as percentages.
4. Rounding as required by reporting guidelines may result in apparent
summation differences between tonnes, grade and contained metal content.


Table 5. Indicated and Inferred Mineral Resources, Kamoa-Kakula Project -
October 9, 2016.

----------------------------------------------------------------------------
Cut-off Contained Contained
Category Grade Tonnes Area Copper Copper Copper
(Cu%) (millions) (Sq. km) Grade (kTonnes) (billion lbs)
----------------------------------------------------------------------------
Indicated 3.0 304 18.0 4.43% 13,471 29.7
----------------------------------------------------------------------------
Indicated 2.5 458 27.9 3.86% 17,669 39.0
----------------------------------------------------------------------------
Indicated 2.0 665 38.7 3.37% 22,384 49.3
----------------------------------------------------------------------------
Indicated 1.5 825 48.2 3.05% 25,179 55.5
----------------------------------------------------------------------------
Indicated 1.0 944 55.1 2.83% 26,740 58.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cut-off Contained Contained
Category Grade Tonnes Area Copper Copper Copper
(Cu%) (millions) (Sq. km) Grade (kTonnes) (billion lbs)
----------------------------------------------------------------------------
Inferred 3.0 47 3.5 4.50% 2,145 4.8
----------------------------------------------------------------------------
Inferred 2.5 83 6.1 3.74% 3,107 6.9
----------------------------------------------------------------------------
Inferred 2.0 144 9.8 3.12% 4,488 9.8
----------------------------------------------------------------------------
Inferred 1.5 211 14.5 2.67% 5,652 12.4
----------------------------------------------------------------------------
Inferred 1.0 286 20.1 2.31% 6,603 14.6
----------------------------------------------------------------------------

Kamoa-Kakula now ranks among the world's 10 largest copper deposits

The initial Kakula estimate vaults the Kamoa-Kakula Project into the ranks of the 10 largest copper deposits ever discovered in the world - and its copper grades are the highest, by a wide margin, of the copper world's top 10 (see Figure 7). Significantly, both the Kakula Discovery and Kamoa's earlier Kansoko Discovery continue to remain open for expansion in numerous directions.

Research by Wood Mackenzie also shows that the Kamoa-Kakula Project's distinctions include the world's largest, high-grade (greater than 2.5% copper) copper deposit and the world's largest, undeveloped copper deposit, based on contained copper in the project's Measured and Indicated Resources.

To view Figure 7. Among the world's largest copper deposits by contained copper, Kamoa-Kakula has the highest copper grades by a wide margin, please visit: http://media3.marketwire.com/docs/1072252f7.jpg

To view Figure 8. World's largest undeveloped copper deposits, please visit: http://media3.marketwire.com/docs/1072252f8.jpg

To view Figure 9. World's largest high-grade (above 2.5% copper) copper deposits, please visit: http://media3.marketwire.com/docs/1072252f9.jpg

To view Figure 10. Central African Copperbelt discoveries, ranked by resources and historical production, please visit: http://media3.marketwire.com/docs/1072252f10.jpg

Preliminary Economic Assessment underway for a four-million-tonne-per-year mine and mill at Kakula

With the initial Kakula estimate completed, Kamoa Copper has retained OreWin Pty. Ltd., of Adelaide, Australia, to prepare a Preliminary Economic Assessment (PEA) for the development of the Kakula deposit. The PEA, which is expected to be completed before the end of 2016, will concentrate on establishing the economic parameters of potential mining operations at Kakula, including capital and operating costs for an underground mine.

The PEA also will analyze process facilities, mining planning and scheduling, including capital costs and operating costs for both mining and concentrator operations. The PEA will draw on recommendations from the Kamoa 2016 pre-feasibility study, including the potential to increase production up to four million tonnes per year from the proposed initial mining area.

Kakula mineralization is characteristically bottom loaded. The resource estimate demonstrates that opportunities exist to mine Kakula at much higher lateral and vertical cut-offs than at Kamoa's Kansoko Sud. The clear zonation and grades in the central high-grade core should provide sequencing opportunities to mine at significantly elevated grades.

"The Kakula PEA will allow Kamoa's engineers and consultants to maximize opportunities for project enhancements as we move the Kamoa-Kakula Project forward," said Mr. Johansson.

To help advance the mine-planning work at Kakula, the Kamoa technical team is rapidly proceeding with the engineering and construction of a box cut at Kakula to accommodate decline ramps that will provide underground access to the deposit.

Kakula's chalcocite-dominant mineralogy expected to produce very-high-value, low-arsenic concentrate

The initial metallurgical test results received in July 2016 from a sample of drill core from the Kakula Discovery zone achieved copper recoveries of 86% and produced a copper concentrate with an extremely high grade of 53% copper. The July results also indicated that material from Kamoa's Kakula and Kansoko zones could be processed through the same concentrator plant, which could yield significant operational and economic efficiencies.

Earlier metallurgical testwork indicated that the Kamoa concentrates contain arsenic levels that are extremely low by world standards - approximately 0.02%. Given this critical competitive marketing advantage, Kamoa-Kakula concentrates are expected to attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines. The Kamoa-Kakula concentrates will help to enable high-arsenic concentrates from mines in Chile and elsewhere to meet the limit of 0.5% arsenic imposed by Chinese smelters, via blending, to meet China's new environmental restrictions.

Qualified Person and Quality Control and Assurance

The independent qualified persons for the Kakula Mineral Resource estimate are Dr. Harry Parker and Gordon Seibel, both of Amec Foster Wheeler.

Other scientific and technical information in this news release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines'(IVPAF) Vice President, Project Geology and Evaluation, a Qualified Person under the terms of National Instrument 43-101. Mr. Torr is not independent of Ivanhoe Mines(IVPAF). Mr. Torr has verified the technical data disclosed in this news release not related to the current Mineral Resource estimate disclosed herein.

Ivanhoe Mines (IVPAF) maintains a comprehensive chain of custody and QA/QC program on assays from its Kamoa-Kakula Project. Half-sawn core is processed at the Kamoa-Kakula 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(IVPAF) at www.sedar.com.

Ivanhoe Mines (IVPAF) will be filing a NI 43-101 Technical Report in respect of the current Mineral Resource estimate disclosed herein, within 45 days of this news release.

Data verification

Dr. Parker and Mr. Seibel, (collectively the Amec Foster Wheeler QPs), reviewed the sample chain-of-custody, quality-assurance and quality-control (QA/QC) procedures, and the accreditations of analytical laboratories used by Ivanhoe. The Amec Foster Wheeler QPs are of the opinion that the procedures and QA/QC are acceptable to support Mineral Resource estimation. Amec Foster Wheeler also audited the assay database, core logging and geological interpretations and found no material issues with the data as a result of these audits.

In the opinion of the Amec Foster Wheeler QPs, the data verification programs undertaken on the geological and assay data collected from the Kakula Discovery support the geological interpretations and the analytical and database quality, and the data collected, can support Mineral Resource estimation.

About Ivanhoe Mines(IVPAF)

Ivanhoe Mines
(IVPAF) is advancing its three principal projects in Sub-Saharan Africa: Mine development at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South Africa's Bushveld Complex; mine development and exploration at the Kamoa-Kakula Copper Project on the Central African Copperbelt in the DRC; and upgrading at the historic, high-grade Kipushi zinc-copper-lead-germanium mine, also on the DRC's Copperbelt. 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 the evaluation of technical and infrastructure options to rapidly advance the development of the near-surface, highest-grade copper resources at Kakula; (2) mine planning focusing on how to expeditiously develop the zones of thick, bottom-loaded chalcocite, grading in excess of 6% copper, near the centre of Kakula's high-grade area; (3) statements regarding Ivanhoe being highly confident that fast-tracking the development of Kakula will have a profound and positive impact on the economics of the overall Kamoa-Kakula Project; (4) statements regarding the Kakula drilling program will continue into 2017 and its expansion to 60,000m; (5) statements regarding the high-grade Kakula Discovery presents game-changing opportunities for Kamoa-Kakula development; (6) statements regarding the bottom-loaded mineralization at Kakula will support the construction of selective mineralized zone (SMZ) composites at cut-offs up to at least 3% copper; (7) statements regarding there being considerable potential for resource expansion within the Kakula Exploration Area; (8) statements regarding the bottom-loaded nature of the gently-dipping, stratabound chalcocite mineralization at Kakula offers the potential for selective, mechanized, underground mining at copper grades greater than 7% copper; (9) statements regarding the expectation that the Kakula PEA will be completed before the end of 2016; (10) statements regarding the Kakula PEA will draw on recommendations from the Kamoa 2016 pre-feasibility study, including the potential to increase production up to 4 Mtpa from the proposed initial mining area; (11) statements regarding clear zonation and grades in the central high-grade core at Kakula should provide sequencing opportunities to mine at significantly elevated grades; (12) statements regarding material from Kamoa's Kakula and Kansoko zones could be processed through the same concentrator plant, which could yield significant operational and economic efficiencies; and (13) statements regarding that Kamoa-Kakula concentrates are expected to attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines and that the Kamoa-Kakula concentrates will help to enable high-arsenic concentrates from mines in Chile and elsewhere to meet the limit of 0.5% arsenic imposed by Chinese smelters, via blending, to meet China's new environmental restrictions.

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'(IVPAF) 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, including the price of copper; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the results of economic studies and evaluations. 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(IVPAF). 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 copper prices 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, or changes to any such permits, approvals or 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.

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The average IVN.TO trading volume is about 10x IVPAF.

When buying or selling IVPAF, one should check the bid and ask size for IVN.TO. Right now IVPAF shows 900 shares at an ask of 1.62. IVN.TO shows 33,400 shares at an ask of 2.16.

An IVPAF buyer should be able to buy 33,400 shares at 1.62 even though IVPAF only shows 900 at the ask. The trade would be routed through the TSX and 2.16 Canadian$ = $1.62 U.S. or a fraction of a penny lower.

Very good site for checking futures -

http://www.finviz.com/futures.ashx

Move your cursor into the box of a commodity and a 3 month chart comes up. You'll see that metals have had a rough 4 days while the U.S. dollar has spurted higher.

Click the box for a one year chart.

The site automatically updates every minute.

Even more remarkable -

Rick Rule on BNN -

The average grade of copper production worldwide is about .4%.
http://www.bnn.ca/market-call-tonight/rick-rule-s-top-picks~961394 ;

@newstracker "Kakula is just a puppy, it is growing. I am confident it can deliver 8 to 12 per cent copper" #RobertFriedland $IVN #MinesMoney
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=125436538


8 to 12% copper is 20 to 30 times the world wide average!!!

Friedland at the Mines and Money Conference -

Drilling at Kakula with seven rigs in the last 90 days, delineated about “45 million equivalent ounces of gold,” Friedland said. An initial resource for Kakula should be out shortly.

Remarkable: 45 million equivalent ounces of gold, at $1,300 an ounce for gold, would be $58,500,000,000 worth of copper delineated in the last 90 days.


http://www.northernminer.com/news/friedland-sees-growing-demand-platinum-copper/1003777946/

Friedland sees growing demand for platinum, copper
Posted By: Salma Tarikh September 30, 2016

Robert Friedland, a renowned mining financier and promoter, took the stage at the recent Mines and Money Americas conference in Toronto, to highlight the growing need for platinum and copper, as rapid global urbanization continues. Both are among the metals that his company, Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF), intends to extract.
“I am not here to depress the gold bugs in this room. I’m just here to get you excited about copper and other metals that we need in our new society,” Friedland said.
The executive — whose successes include selling Voisey’s Bay, a large nickel-copper-cobalt deposit in Labrador, to Inco for $4.3 billion in 1996, and discovering the large Oyu Tolgoi copper-gold project in Mongolia in 2001 — noted that there would be about a billion more people living in urban environments by 2030. As a result, more people will be living in cities filled with “toxic smog,” he said, citing 6.5 million people die a year from air pollution.
To combat air pollution, Friedland noted the automotive industry plans to use more platinum to manufacture hydrogen-powered cars and more copper to produce electric cars, in an aim to reduce carbon dioxide emitted from traditional vehicles.
Honda’s new hydrogen-powered Clarity Fuel Cell, uses an ounce of platinum, Friedland said, noting other car manufacturers, including a portion of the Volkswagen Group, will follow suit in making greener cars.
Meanwhile Tesla’s Model 3 employs a copper induction motor, the executive said, adding newer electric cars will contain larger amounts of copper and no expensive rare earth metals. (The latter was a sector typically dominated by Chinese suppliers.)
“I’m glad we finally killed this rare earth thing,” Friedland commented. “Don’t worry about the Chinese squeezing our testicles,” he added. “We don’t need them any more.”
According to the mining entrepreneur, rare earth metals, along with lithium, will fall out of favour in the application of new technologies. “Most lithium miners will also end in tears,” he predicted, citing drones fly longer when powered by hydrogen fuel cells as opposed to lithium-ion batteries.
Strengthening his case for platinum, Friedland said China is spending $32 billion over the next four years to expand its hydrogen-powered tram system to address its air pollution problem.
Platinum is also conveniently a metal Friedland plans to extract at Ivanhoe’s large Platreef project in South Africa. The platinum, palladium, nickel, copper, gold and rhodium project sits on the Northern Limb of the Bushveld Complex, some 280 km northeast of Johannesburg.
“The orebody is as thick as an eight-storey building,” Friedland said. It is also flat, high-grade and shallow, making it easy to mine.
The company expects to build the underground mine in three phases. It would initially process 4 million tonnes per year, before doubling that in the second phase, and then expanding to 12 million tonnes per year in phase three.
Meanwhile, in the Democratic Republic of the Congo, Ivanhoe is developing the large Kamoa copper project, where in August it made the even larger Kakula copper discovery.
Drilling at Kakula with seven rigs in the last 90 days, delineated about “45 million equivalent ounces of gold,” Friedland said. An initial resource for Kakula should be out shortly.
After highlighting the potential at Kamoa-Kakula, Friedland described Chile’s aging copper mines, including El Teniente, as “little old ladies lying in bed waiting to bed.”
Elsewhere in the DRC, Ivanhoe is working on the Kipushi zinc-copper project.

http://www.bnn.ca/market-call-tonight/rick-rule-s-top-picks~961394 ;

Robert Friedland spoke yesterday -

The current lithium frenzy will end badly while gold bugs should look at the riper opportunities available in copper and platinum, according to mining financier Robert Friedland.
In a sprawling, exuberant and at times politically incorrect speech at the Mines and Money Americas conference in Toronto, the veteran promoter demonstrated he hasn’t lost his sales mojo as he ticked off all the reasons why the properties owned by his Ivanhoe Mines Ltd. just happen to be ideally positioned for the next wave of automotive technology.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/copper-platinum-key-to-auto-industry-future-mining-financier-says/article32086630/

Apparently, @newstracker was at the conference. He posted the following -

@newstracker I think I just witnessed the best investment pitch of my life. #RobertFriedland #MinesMoney

@newstracker "Kakula is just a puppy, it is growing. I am confident it can deliver 8 to 12 per cent copper" #RobertFriedland $IVN #MinesMoney

@newstracker "When you cut open a lithium battery, you copper, lithium, cobalt, and very little lithium." #lithium #RobertFriedland #MinesMoney

@newstracker Instead of finding a third rate resource in a safe jurisdiction, find the best resource in a funky environment and figure out how to protect. We wave the Canadian flag. #RobertFriedland at #MinesMoney

@newstracker More than a million miles of drill holes at Ivanhoe. $IVN #MinesMoney #RobertFriedland

@newstracker "Voisey Bay and Lac de Grass pimples on an ass compared to kakula."

@newstracker Flatreef Orders of magnitude bigger than hemlo and it is under one company

@newstracker Twice the nickel and 50 per cent more copper than neighboring Anglo property. $IVN

@newstracker Ore body the size of manhattan. $IVN

@newstracker "Africa, the next China"

@newstracker Apparently everything will have to be copper to fight the coming super bugs

@newstracker China to build out electric grid, need copper, copper use in medical devices. Friedland making the case for copper with all its uses against a China demand backdrop. #copper #MinesMoney

@newstracker "When you cut open a lithium battery, you copper, lithium, cobalt, and very little lithium." #lithium #RobertFriedland #MinesMoney

@newstracker No platinum in central bank vaults

@newstracker "Platinum is critical to cleaner air, but there is a market deficit." #pgm

@newstracker Friedland affecting an Indian accent describing pollution in India.

@newstracker "When the Germans change what they are doing, then the Japanese, then the Americans (referring to converting car production to electric)"

@newstracker "The copper induction motor does not need any rare earths. I am glad we killed this rare earth thing. Do not worry about the Chinese squeezing our testicles. They are not rare. We have copper. Most Lithium miners are going to end in tears." - Friedland #MinesMoney #lithium

@newstracker "Fuel cells use platinum particles as a catalyst to split hydrogen fuel into ions and electrons." - Friedland #MinesMoney

https://ceo.ca/index

https://ceo.ca/robertfriedland?00eebb8fe30d

RF gets a feather in his hat for partnering with the Chinese for Kamoa's mother load!

China and the Congo -

http://pulitzercenter.org/projects/congo-china-economy-development-investments-rich-minerals

http://www.the-american-interest.com/2014/01/10/chinas-congo-plan/

The Kakula Discovery remains open along a northwesterly-southeasterly strike, while high-grade copper mineralization has been outlined along a corridor that now is at least 3.5 kilometres in length.

Ivanhoe Mines and Zijin Mining Announce More High-Grade Copper Results from Ongoing Drilling at the Kakula Discovery on the Kamoa Copper Project in the Democratic Republic of CongoKakula's Chalcocite-Rich Corridor Further Expanded to at Least 3.5 Kilometres in LengthInitial Kakula Mineral Resource Estimate Expected in Early October
MARKET WIRE 6:30 AM ET 9/22/2016
Symbol Last Price Change
IVPAF 1.58up 0 (0%)
QUOTES AS OF 03:54:48 PM ET 09/21/2016
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO -- (Marketwired) -- 09/22/16 -- Robert Friedland, Executive Chairman of Ivanhoe Mines(IVPAF) , and Lars-Eric Johansson, Chief Executive Officer, today announced assay results from another sixteen 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). The Kamoa Project is a joint venture between Ivanhoe Mines(IVPAF) and Zijin Mining.

"Kakula is continuing to demonstrate that it is substantially richer, thicker and more consistent than other mineralization that we have found elsewhere on the Kamoa Project," said Mr. Friedland.

"Given the consistent and thick intercepts at shallow depths of very-high-grade copper mineralization, Kakula is quickly becoming a key focus in our planning for the development of the Kamoa Project."

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

DD1024 intersected 6.14 metres (true width) of 6.52% copper at a 3.0% copper cut-off, beginning at a downhole depth of 312.0 metres; 8.21 metres (true width) of 5.58% copper at a 2.5% copper cut-off; 12.99 metres (true width) of 4.34% copper at a 2.0% copper cut-off; and 14.42 metres (true width) of 4.10% copper at a 1.0% copper cut-off.


DD1036 intersected 5.48 metres (true width) of 6.90% copper at a 3.0% copper cut-off beginning at a downhole depth of 274 metres; 7.38 metres (true width) of 5.77% copper at a 2.5% copper cut-off; 13.05 metres (true width) of 4.31% copper at a 2.0% copper cut-off; and 13.99 metres (true width) of 4.13% copper at a 1.0% copper cut-off.


DD1039 intersected 11.91 metres (true width) of 6.23% copper at a 3.0% copper cut-off beginning at a downhole depth of 332 metres; 17.87 metres (true width) of 5.08% copper at a 2.5% copper cut-off; 18.56 metres (true width) of 4.98% copper at a 2.0% copper cut-off; and 20.55 metres (true width) of 4.65% copper at a 1.0% copper cut-off.


DD1041 intersected 4.04 metres (true width) of 7.39% copper at a 3.0% copper cut-off beginning at a downhole depth of 615 metres; 4.80 metres (true width) of 6.63% copper at a 2.5% copper cut-off; 6.70 metres (true width) of 5.42% copper at a 2.0% copper cut-off; and 13.36 metres (true width) of 3.37% copper at a 1.0% copper cut-off.


DD1043W1 intersected 4.21 metres (true width) of 9.44% copper at a 3.0% copper cut-off beginning at a downhole depth of 346.74 metres; 4.89 metres (true width) of 8.48% copper at a 2.5% copper cut-off; 12.50 metres (true width) of 4.69% copper at a 2.0% copper cut-off; and 15.24 metres (true width) of 4.09% copper at a 1.0% copper cut-off.


DD1045 intersected 8.44 metres (true width) of 6.96% copper at a 3.0% copper cut-off beginning at a downhole depth of 505.22 metres; 9.31 metres (true width) of 6.59% copper at a 2.5% copper cut-off; 11.44 metres (true width) of 5.81% copper at a 2.0% copper cut-off; and 13.94 metres (true width) of 5.03% copper at a 1.0% copper cut-off.


DD1047 intersected 7.90 metres (true width) of 8.85% copper at a 3.0% copper cut-off beginning at a downhole depth of 359 metres; 8.89 metres (true width) of 8.17% copper at a 2.5% copper cut-off; 14.37 metres (true width) of 5.89% copper at a 2.0% copper cut-off; and 21.28 metres (true width) of 4.47% copper at a 1.0% copper cut-off.


Kakula copper mineralization continuing to be shown to be consistently bottom-loaded and chalcocite dominant

The consistent, bottom-loaded nature of Kakula mineralization supports the creation of selective mineralized zones at cut-offs of between 1.0% and 3.0% copper, and potentially higher. The recent assay results are shown at various cut-offs in Table 1, while the accumulation of copper and thickness of mineralized intercepts at 1.0%, 2.5% and 3.0% cut-offs are shown in figures 5 through 8.

The Kakula copper mineralization displays vertical mineral zonation from chalcopyrite (approximately 35% copper) to bornite (approximately 63% copper) to chalcocite (approximately 80% copper), with the highest copper grades associated with the siltstone unit consistently characterized by chalcocite-dominant mineralization (see Figure 4 for strip-logs showing typical Kakula-style mineralization in holes DD1047 and DD1039).

Chalcocite (copper sulfide, Cu 2 S) is high-tenor mineral that is opaque and dark-gray to black with a metallic lustre (see figures 1 and 3 for examples of high-grade chalcocite drill core from Kakula). Due to its very high percentage of contained copper by weight (the tenor, the percentage of the mineral that is actual metal to be extracted, is 80% copper by weight) and its capacity to produce an exceptionally clean, high-grade concentrate, chalcocite is considered to be the most valuable copper mineral.

To view Figure 1. Drill core from DD1041 with disseminated chalcocite in diamictite at a depth of 619 metres (chalcocite is approximately 80% copper by weight), please visit http://media3.marketwire.com/docs/1070266f1.jpg.

The Kakula Discovery remains open along a northwesterly-southeasterly strike, while high-grade copper mineralization has been outlined along a corridor that now is at least 3.5 kilometres in length. The high-grade copper zone is less than 300 metres below surface in the central section, and gently dips to the southeast and northwest.

A total of seven rigs are drilling at Kakula. Two rigs are drilling step-out holes to the southeast of Kakula's currently defined high-grade core, looking to extend the high-grade mineralization beyond the current 3.5-kilometre strike length. Two other rigs are drilling step-out holes further to the northwest to test the possible extension of the high-grade core.

Two additional rigs are drilling in-fill holes and one is drilling a large-diameter core hole for the second phase of metallurgical test work. The initial metallurgical test results received in July 2016 from a sample of drill core from the Kakula Discovery zone achieved copper recoveries of 86% and produced a copper concentrate with an extremely high grade of 53% copper. The July results also indicated that material from Kamoa's Kakula and Kansoko zones could be processed through the same concentrator plant, which would yield significant operational and economic efficiencies.

Earlier metallurgical testwork indicated that the Kamoa concentrates contain arsenic levels of approximately 0.02%, which are extremely low by world standards. Given this critical competitive marketing advantage, Kamoa's concentrates are expected to attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines. The Kamoa concentrates will help to enable high-arsenic concentrates from mines in Chile and elsewhere to meet the limit of 0.5% arsenic imposed by Chinese smelters to meet China's new environmental restrictions.

Independent Mineral Resource estimate for the Kakula Discovery on track for completion in early October

Approximately 27,000 metres of drilling has been completed since the current Kakula drilling program began earlier this year. The initial plan was to drill a total of approximately 34,000 metres in 2016. However, given the outstanding success of the program, plans are being developed to expand the 2016 drill program and extend it into 2017.

Kamoa Copper intends to prepare an initial independent Mineral Resource estimate for the Kakula Discovery in early October, 2016. Results for nine holes remain outstanding that will be included in the estimate. Amec Foster Wheeler, of Reno, Nevada, has been engaged to oversee the estimate.

The main objective of the current drilling program at Kakula is to confirm and expand the thick, flat-lying, bottom-loaded zone of very-high-grade, stratabound copper mineralization at the southern part of the Kakula Discovery area (see Figure 2) that has the potential to be amenable to bulk, mechanized mining and therefore could have a significant, positive impact on the Kamoa Project's future development plans. The 60-square-kilometre Kakula exploration area is approximately 10 kilometres southwest of Kamoa's planned initial mining area at Kansoko Sud.

To help advance the ongoing evaluation of Kakula, 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. A preferred site for the box-cut development has been chosen and geotechnical work has begun.

To view Figure 2. Kamoa Project map shows the planned initial mining area at Kansoko Sud and the adjacent Kakula exploration area, please visit http://media3.marketwire.com/docs/1070266f2.jpg.

To view Figure 3. Intercept from DD1055, an in-fill hole in the north-west of the Kakula Discovery, with massive chalcocite at a depth of 347 metres (chalcocite is approximately 80% copper by weight), please visit http://media3.marketwire.com/docs/1070266f3.jpg.

To view Figure 4. Strip-logs of drill holes DD1047 and DD1039 showing typical Kakula-style mineralization, please visit http://media3.marketwire.com/docs/1070266f4.pdf.

To view Figure 5. Kakula Discovery Area. Drill-hole location plan for the Kakula Area shows holes completed and in progress, superimposed on 1% composite grade thickness contours, please visit http://media3.marketwire.com/docs/1070266f5.jpg.

To view Figure 6. Recent assay results at a 1.0 % copper cut-off, please visit http://media3.marketwire.com/docs/1070266f6.jpg.

To view Figure 7. Recent assay results at a 2.5% copper cut-off, please visit http://media3.marketwire.com/docs/1070266f7.jpg.

To view Figure 8. Recent assay results a 3.0% copper cut-off, please visit http://media3.marketwire.com/docs/1070266f8.jpg.

To view Figure 9. New cross-section A-A' of Kakula Discovery area, showing true thicknesses of drill intercepts at a 2.5% copper cut-off, please visit http://media3.marketwire.com/docs/1070266f9.jpg.

To view Figure 10. New cross-section A-A' of Kakula Discovery area, showing true thicknesses of drill intercepts at a 3.0% copper cut-off, please visit http://media3.marketwire.com/docs/1070266f10.jpg.

To view Table 1. Assay composites from newly released Kakula drill holes at various copper cut-offs, please visit http://media3.marketwire.com/docs/1070266t1.pdf.

To view Table 2. Collars of completed drill holes, please visit http://media3.marketwire.com/docs/1070266t2.pdf.

Kamoa Copper Project description

The Kamoa Copper Project, a joint venture between Ivanhoe Mines Ltd.(IVPAF) 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. Kamoa's Indicated Mineral Resources presently total 752 million tonnes grading 2.67% copper and containing 44.3 billion pounds of copper at a 1.0% 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.

The initial independent Mineral Resource estimate for the Kakula discovery, which is expected to be issued in early October, 2016, will be in addition to the Indicated and Inferred Mineral Resources announced on February 23, 2016.

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'(IVPAF) 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 (IVPAF) 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(IVPAF) at www.sedar.com.

The Chinese are being challenged by the Democratic Republic of Congo's state-owned Gecamines for Freeport's 56% stake in the high-grade Tenke Fungurume mine.

http://www.mining.com/freeports-2-7b-sale-african-copper-mine-hits-snag/?utm_source=digest-en-mining-160907&utm_medium=email&utm_campaign=digest

The Chinese want that mine and will end up with it. They will end up buying out Ivanhoe's Congo assets too. There is no stopping them, IMO.

A little love from Rick Rule –

Andrew Nelson: On the note of high quality companies, what are your largest positions you are holding in your personal portfolio that are resource focused?

Rick Rule: The largest speculation of my career by cost is Ivanhoe Mines (TSE: IVN) which of course was presenting at the Sprott Symposium back in July 2016 in Vancouver, BC. It is a very large position for me. To be honest, I just can’t help myself as the quality of these deposits relative to the enterprise value (Market Capitalization minus Cash), is so extraordinarily out of balance, that I just can’t help being speculatively inclined towards this company.

http://www.mining.com/web/sprott-urging-clients-to-hold-physical-precious-metals/

Stars aligning for platinum price -

http://www.mining.com/stars-aligning-platinum-price/?utm_source=digest-en-mining-160911&utm_medium=email&utm_campaign=digest

September 12, 2016
Ivanhoe Mines to be added to S&P/TSX Composite Index
effective September 16


TORONTO, CANADA – Ivanhoe Mines’ (TSX: IVN) Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric Johansson announced today that Standard and Poor’s (S&P) has added Ivanhoe Mines to the S&P/TSX Composite Index, effective after the close of trading on September 16, 2016.
The S&P/TSX Composite Index includes the largest companies on the Toronto Stock Exchange, as measured by market capitalization and liquidity. It is widely considered to be the leading indicator of broad market activity in Canadian equity markets.
“Ivanhoe’s addition to the S&P/TSX Composite Index represents a significant milestone for our company and reflects the tremendous efforts and successes of our entire team,” said Mr. Friedland.
“We have made substantial progress in advancing our three mine development projects in Sub-Saharan Africa toward production. Ivanhoe’s inclusion in the headline index in Canada will increase our exposure to a broader range of potential investors and should provide enhanced trading liquidity for our shareholders.”
About Ivanhoe Mines
Ivanhoe Mines is advancing its three principal projects in Sub-Saharan Africa: Mine development at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South Africa’s Bushveld Complex; mine development and exploration at the Kamoa Copper Project — which includes the remarkable Kakula high-grade copper discovery — on the Central African Copperbelt in the DRC; and upgrading and exploration at the historic, high-grade Kipushi zinc-copper-lead-germanium mine, also on the DRC’s Copperbelt. For details, visit www.ivanhoemines.com.
Information contacts
Investors
Bill Trenaman +1.604.331.9834
Media
North America: Bob Williamson +1.604.512.4856
South Africa: Jeremy Michaels +27.82.939.4812

The following may, or may not, have been responsible for Friday's price action, during which, 247,870 shares of IVN.TO were sold at the bid at 16:00:00 (the close).

September 10, 2016 — 6:54 AM CDT

The Democratic Republic of Congo’s border with Zambia, the main export route for the country’s copper, re-opened this morning after a 24-hour shutdown prompted by clashes between residents and security forces.

“Trucks have started to cross the border again this morning,” Eric Monga, a spokesman for the Chamber of Mines in the southeastern Haut Katanga province, said by phone on Saturday.
http://www.bloomberg.com/news/articles/2016-09-10/congo-s-copper-export-route-re-opened-after-24-hour-shutdown

Ivanhoe plans to ship by rail, not truck -

The Kipushi Station and connecting rail line from Kipushi to Manama, and through to the Zambian border at Ndola, are owned and operated by La Société Nationale des Chemins de Fer du Congo (SNCC).

The proposed export route is to utilize the SNCC network from Kipushi to Ndola, connecting to the North-South Rail Corridor from Ndola to Durban. The Kipushi to Manama branch line will require a significant refurbishment over 30 kilometres (the required capital is expected to be repaid through the estimated transport cost of $250 per tonne). The North-South Rail Corridor from Sakania to Durban via Zimbabwe is fully operational and has a capacity of 5 Mtpa. Ivanhoe Mines is working with Grindrod Limited, of South Africa, a leading and experienced freight services, shipping and financial services logistics operator in Southern Africa, to advance discussions with SNCC regarding the concession from Kipushi to Manama.


A phased logistics solution is proposed in the Kamoa 2016 PFS. Initially the corridor between southern DRC and Durban in South Africa is viewed as the most attractive and reliable export route. As soon as the railroad between Kolwezi and Dilolo, a town near the DRC-Angolan border, is rehabilitated, Kamoa’s production is expected to be transported by rail to the port of Lobito in Angola.

Nice summary of Ivanhoe Mines!

And that's not all -

The $140 billion doesn't include Kakula, which is still open on both ends.

Kipushi is open at depth and to the south.

Platreef is open to the south.

http://seekingalpha.com/article/3991196-copper-bullish-decade-coming

According to the AME Group, the world's miners have an average copper ore grade of .4% and it is declining as the cost to mine it rises.

No wonder Robert Friedland called Kakula a game-changing discovery -

“The consistent frequency of thick intersections of exceptionally-high-grade copper mineralization from both infill and step-out drill holes enhances our absolute confidence that Kakula is a game-changing discovery for the Kamoa Project,” Mr. Friedland said.

“While some of the recent drill intercepts are up to 20 metres thick at a 1% cut-off grade, if we focus only on the best intercepts of six metres - which is considered to be an optimal initial mining width for a flat-lying, stratabound deposit like Kakula - six of the eight holes drilled within Kakula’s high-grade core returned grades of between 6% and 11% copper.”


The ore grade of the initial Kamoa Project discovery is eye-popping in its own right -

Highlights of the Kamoa 2016 PFS:

•Annual mine production of 3 Mtpa at an average grade of 3.86% copper over a 24-year mine life, resulting in annual copper production of approximately 100,000 tonnes.

I have my fingers crossed hoping that the step-out drill holes continue to amaze.

Step-out drilling testing the extension of the high-grade mineralization beyond the current three-kilometre strike length

Two rigs are drilling step-out holes to the southeast of Kakula’s currently defined high-grade core, looking to extend the high-grade mineralization beyond the current three-kilometre strike length. Two more rigs are drilling step-out holes further to the northwest to test the extension of the high-grade core in that direction.

Two other rigs are drilling in-fill holes and one is drilling a large-diameter core hole for the second phase of metallurgical test work. The initial metallurgical test results received in July 2016 from a sample of drill core from the Kakula Discovery zone achieved copper recoveries of 86% and produced a copper concentrate with an extremely high grade of 53% copper. The July results also indicated that material from Kamoa’s Kakula and Kansoko zones could be processed through the same concentrator plant, which would yield significant operational and economic efficiencies.

Earlier metallurgical testwork indicated that the Kamoa concentrates contain extremely low arsenic levels, by world standards: approximately 0.02%. Given this critical, competitive marketing advantage, Kamoa’s concentrates are expected to attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines. The Kamoa concentrates will help to enable high-arsenic concentrates from mines in Chile and elsewhere to meet the limit of 0.5% arsenic imposed by Chinese smelters to meet China’s new environmental restrictions.

I know that Ivanhoe has offered 15% in addition to the mandatory 5%. I was pointing out that 20% to the government is probably the limit. I provided an example to back it up.

Also, I gave an example of a company that has worked harmoniously with the DRC since 2009.

Good stuff, I thought.

Freeport McMoran’s Tenke Fungurume is the largest copper producer in the Democratic Republic of Congo (DRC). They have been producing since 2009.

Gécamines owns 20%. Gécamines SA,, is a Congolese commodity trading and mining company headquartered in Lubumbashi, in the Katanga Province of the Democratic Republic of Congo. It is a state-controlled corporation founded in 1966.
http://www.fcx.com/operations/tenke/fastfacts/Tenke_fast_facts_english.pdf


Ivanhoe -

The Kipushi Project, in the DRC's province of Haut-Katanga and southeast of the company's Kamoa discovery, is adjacent to the town of Kipushi and approximately 30 kilometres southwest of the provincial capital of Lubumbashi. Ivanhoe Mines acquired its 68% interest in the Kipushi Project in November 2011; the balance of 32% is held by the DRC's state-owned mining company, Gécamines.

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 has offered to transfer an additional 15% interest to the DRC government on terms to be negotiated.

September Presentation -

http://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1bsemm1-Ivanhoe%20Mines%20progress%20gallery%20September%202016.pdf

A large number of warrants outstanding is another negative for most emerging companies. Ivanhoe has 0 warrants!

Does Ivanhoe Mines have any warrants?

No. Ivanhoe Mines had 115,000,767 tradable warrants outstanding at the strike price of C$1.80; however, the warrants expired on December 10, 2015. Prior to their expiry, the warrants traded on the Toronto Stock Exchange under the ticker symbol IVN.wts.

https://www.ivanhoemines.com/investors/stock-shareholder-info

I'm very excited by what I see in Ivanhoe and I have been loading up. All 3 of the Company's projects should be huge winners.

Scratching the surface on what I like -

Platreef Project

By 6/3/11, a Japanese consortium had invested $290 million for a 10% stake in Platreef.

https://www.ivanhoemines.com/news/news-releases/participation-in-the-exploration-and-development-of-pgms-up-front-investment-to-553403

https://www.ivanhoemines.com/news/news-releases/ivanplats-announces-third-quarter-results-557387

That would value Platreef at $2.9 billion before these discoveries -

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-reports-unprecedented-90-metre-intersection-less-than-br-greater-than-of-4-51-grams-of-pl-607892

https://www.ivanhoemines.com/news/news-releases/exploration-drill-hole-intersects-48-6-metres-of-high-grade-less-than-br-greater-than-platinum-group-me-642998

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-reports-an-increase-in-indicated-mineral-resources-of-58-and-also-an-accompanying-increase-in-inferred-mineral-resources-of-21-at-its-platreef-platinum-group-metals-gold-nickel-and-copper-project-in-south-Africa

Kamoa Project

Ivanhoe Mines and China's Zijin Mining Group sign landmark agreement to co-develop the world-scale Kamoa copper discovery in the Democratic Republic of Congo

Zijin to acquire 49.5% of Ivanhoe's Kamoa stake
for a total cash consideration of US$412 million

Upon closing of the transaction, each shareholder is required to fund Kamoa Holding in an amount equivalent to its proportionate shareholding interest.

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-and-china's-zijin-mining-group-sign-landmark-agreement

The above landmark agreement valued Kamoa before the "game changing" Kakula discovery -

https://www.ivanhoemines.com/news/news-releases/exceptional-grades-and-widths-of-mineralization-confirmed-june-20-2016

https://www.ivanhoemines.com/news/news-releases/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

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-announces-more-outstanding-drilling-results-from-the-kakula-discovery-on-the-kamoa-copper-project-in-the-democratic-republic-of-congo

Kipushi Project

“This independent estimate of Kipushi’s Mineral Resources has exceeded our expectations. We are convinced that significant additional Mineral Resources can be delineated at Kipushi,” said Mr. Friedland.

“With a current resource now established, we are evaluating technical and infrastructure options to best advance the project. The exceptionally high grades that consistently are being discovered at Kipushi are unique in the international mining industry and provide further confirmation that this project has the potential to benefit the people of the Democratic Republic of Congo for decades to come when it returns to production.”

https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-2016-01-27-nr

Executive Chairman Robert Friedland

https://www.ivanhoemines.com/news/news-releases/ivanhoe-congratulates-robert-friedland-for-his-induction-into-the-canadian-mining-hall-of-fame

Think zinc: miners bet big on revival in key base metal market
REUTERS 2:12 AM ET 8/24/2016
Symbol Last Price Change
HRLDF 0.1294down 0 (0%)
MMLTF 0.25up 0 (0%)
IVPAF 1.2528down 0 (0%)
QUOTES AS OF 02:43:22 PM ET 08/05/2016
* Production drying up at big zinc mines

* That is curbing oversupply, boosting prices

* Zinc market up nearly 50 pct this year

* Miners rushing to invest in new zinc output

* But some analysts caution that demand could ease in second-half

By James Regan

SYDNEY, Aug 24 (Reuters) - Resource companies are racing to dig zinc mines, betting that markets for the metal used to rust-proof steel and protect noses from sunburn have finally turned after a decade in the doldrums.

A supply glut is evaporating as big zinc mines run dry, commodity analysts say, helping drive up prices by nearly half this year and triggering investments in new and long-dormant projects from Greenland to Africa.

"There is a sense of urgency that the zinc price will continue to appreciate in coming years and we want to start construction as soon as possible to take advantage of that," said Simon Smith, finance manager of Heron Resources(HRLDF), which is spending A$190 million to return a landfill site in Australia to its former life as a zinc mine.

The global supply pool has been contracting as reserves are exhausted at huge mines in Australia, Canada and Ireland, while other major producing nations such as Peru have seen output drop as richer ores are mined out.

Macquarie Bank calculates that global supply has plunged by as much as 14.5 percent in the first half of 2016 alone.

"There is no doubt the supply side of this market is declining and supporting the case for new mines," said commodities analyst Daniel Morgan of UBS, adding that companies that buy zinc to refine had become "panicky" about supply.

Not everybody is sure zinc prices will keep going up.

Analysts at Capital Economics caution that zinc's upcycle could be clipped, if, as it predicts, Chinese steel prices weaken again in the second half of the year, reducing demand in the biggest consumer of the base metal.

And investment bank Liberum warns that high prices may tempt China's miners to dig more metal, leaving little room for further upward price moves.

Chinese zinc output has been running around 1.3 million tonnes below its 2014 peak, with local media reports that mines have been shuttered as part of a government crackdown on pollution.


MOVING QUICKLY

Miners remain optimistic on the long-term outlook for prices, however.

"We were looking very hard for zinc, which is offering some of the greatest opportunities for growth, and wanted to move quickly," said Craig Mackay, managing director at Golden Rim Resources.

Golden Rim last month paid $2.29 million for the Paguanta zinc project, a 40-mile expanse of exploration ground near Chile's border with Bolivia.

Andrew Michelmore, chief executive of China'sMMG Ltd(MMLTF) , said the company was digging a new mine in Australia costing $1.5 billion, with up to $550 million in loans from China Development Bank Corp and Bank of China.

"The supply crunch has finally come," he said, adding that few opportunities exist to acquire operating zinc mines anywhere in the world.

"Most of our focus is: how do we find it ourselves?"

After years of exploring for copper in Mongolia, Ivanhoe Mines(IVPAF) chairman Robert Friedland wants to restart the long-dormant Kipushi zinc mine in the Democratic Republic of Congo.

"We believe that market conditions are ideal as we evaluate the available options to return Kipushi to production," Friedland said in a statement announcing the prospect of restarting the mine at a cost of $409 million.

Meanwhile, Jonathan Downes, chief executive of Australia'sIronbark Zinc, said he is closer than ever to developing a mine in Greenland discovered 23 years ago.

China Non Ferrous (NFC) has already agreed to construct the mine and provide 70 percent of the debt funding in exchange for 30 percent of the zinc.

Separately, Ironbark has entered into a $50 million funding and supply arrangement with mining giant Glencore, its biggest shareholder.

"With zinc inventories down and the price up, our stars are starting to align," Downes said.

(Reporting by James Regan; Additional reporting by Mitra Taj in Lima and Ruby Lian in Shanghai; Editing by Joseph Radford)