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Ivanhoe Mines Announces Exceptional Results of Independent 2022 Feasibility Study for Tier-one Platreef Palladium, Rhodium, Nickel, Platinum, Copper and Gold Project in South Africa

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Figure by OreWin, 2022.

Figure 11: Platreef 2022 Feasibility Study estimated 3PE+Au recovered metal and nickel/copper recovered metal for the life-of-mine.

 

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Figure by OreWin, 2022.

Table 4: Platreef 2022 Feasibility Study unit operating costs and cash costs after credits.

US$ per ounce of 3PE+Au
Phase 1 Average (1) Phase 2 Average (2) LOM Average
Mine site 822 419 429
Transport 13 13 13
Treatment & Refining 369 366 366
Royalties 8 90 88
Total cash costs before credits 1,212 887 895
Nickel credits 334 351 351
Copper credits 84 92 92
Total cash costs after credits 794 443 452
Sustaining capital costs [(] [3] [)] - 63 62
All-in cash costs after credits (4) 794 506 514

 

  1. Phase 1 production over 3.3 years from 2024 to 2027 at 0.7 Mtpa.

  2. Phase 2 production over 25.0 years from 2028 to 2052 at 5.2 Mtpa.

  3. Phase 1 operating costs include allowance for sustaining capital costs.

  4. All-in cash costs include sustaining capital costs.

Table 5: Platreef 2022 Feasibility Study capital investment summary.

Description Initial Capital Expansion Capital Sustaining Capital Total
US$M US$M US$M US$M
MINING
Exploration and geology 9 31 32 72
Mining 187 697 861 1,744
Subtotal 195 728 893 1,816
CONCENTRATOR
Concentrator 73 273 2 349
Subtotal 73 273 2 349
INFRASTRUCTURE
Infrastructure 95 251 25 371
Subtotal 95 251 25 371
INDIRECTS
Owners Cost 93 126 2 222
Closure - - 11 11
Subtotal 93 126 13 233
CAPITAL EXPENDITURE BEFORE CONTINGENCY 456 1,378 933 2,768
Contingency 32 101 1 134
CAPITAL EXPENDITURE AFTER CONTINGENCY 488 1,480 934 2,902

 

Note: Initial capital reflects the capital costs from January 1, 2022, to achieve initial production of 0.7 Mtpa, followed by expansion capital to reflect the capital costs to achieve full production of 5.2 Mtpa. Expansion capital includes US$50 million spent during the Phase 1 pre-production period to continue construction on Shaft 2.

Figure 12: Platreef Mine 2022 Feasibility Study projected operating surplus, total capital costs and cumulative net cash flow after tax, at base case assumptions.

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Figure by OreWin, 2022.

Platreef Mineral Resources

The mineral resources used in the Feasibility Study were those amenable to underground selective mining.

Table 6: Mineral Resources amenable to underground selective mining methods (base case is highlighted).

Indicated Mineral ResourcesTonnage and Grades
Cut-off3PE+Au Mt Pt(g/t) Pd (g/t) Au (g/t) Rh (g/t) 3PE+Au (g/t) Cu (%) Ni (%)
3 g/t 204 2.11 2.11 0.34 0.14 4.70 0.18 0.35
2 g/t 346 1.68 1.70 0.28 0.11 3.77 0.16 0.32
1 g/t 716 1.11 1.16 0.19 0.08 2.55 0.13 0.26
Indicated Mineral ResourcesContained Metal
Cut-off 3PE+Au Pt(Moz) Pd Moz) Au(Moz) Rh(Moz) 3PE+Au(Moz) Cu(Mlb) Ni(Mlb)
3 g/t 13.9 13.9 2.2 0.9 30.9 800 1,597
2 g/t 18.7 18.9 3.1 1.2 41.9 1,226 2,438
1 g/t 25.6 26.8 4.5 1.8 58.8 2,076 4,108
Inferred Mineral ResourcesTonnage and Grades
Cut-off3PE+Au Mt Pt (g/t) Pd (g/t) Au (g/t) Rh (g/t) 3PE+Au (g/t) Cu (%) Ni (%)
3 g/t 225 1.91 1.93 0.32 0.13 4.29 0.17 0.35
2 g/t 506 1.42 1.46 0.26 0.10 3.24 0.16 0.31
1 g/t 1,431 0.88 0.94 0.17 0.07 2.05 0.13 0.25
Inferred Mineral ResourcesContained Metal
Cut-off 3PE+Au Pt(Moz) Pd Moz) Au(Moz) Rh(Moz) 3PE+Au(Moz) Cu(Mlb) Ni(Mlb)
3 g/t 13.8 14.0 2.3 1.0 31.0 865 1,736
2 g/t 23.2 23.8 4.3 1.6 52.8 1,775 3,440
1 g/t 40.4 43.0 7.8 3.1 94.3 4,129 7,759

 

  1. Mineral Resources were estimated and finalized April 22, 2016. On 28 January 2022, updated criteria for assessing reasonable prospects of eventual extraction were reviewed to ensure the estimate remained current. The updated effective date is 28 January 2022. The Qualified Person for the estimate is Mr. Timothy Kuhl, RM SME.

  2. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

  3. The 2 g/t 3PE+Au cut-off is considered the base-case estimate and is highlighted. The rows are not additive.

  4. Mineral Resources are reported on a 100% basis. Mineral Resources are stated from approximately -200 m to 650 m elevation (from 500 m to 1,350 m depth). Indicated Mineral Resources are drilled on approximately 100 x 100 m spacing; Inferred Mineral Resources are drilled on 400 x 400 m (locally to 400 x 200 m and 200 x 200 m) spacing.

  5. Reasonable prospects for eventual economic extraction were determined using the following assumptions. Assumed commodity prices are US$1,600/oz. platinum, US$815/oz. palladium, US$1,300/oz. gold, US$1,500/oz. rhodium, US$3.00/lb copper, and US$8.90/lb nickel. It has been assumed that payable metals would be 82% from smelter/refinery and that mining costs (average US$34.27/t) and process, general and administrative costs, and concentrate transport costs (average US$15.83/t of mill feed for a four-Mtpa operation) would be covered. The processing recoveries vary with block grade but typically would be 80%-90% for platinum, palladium and rhodium; 70-90% for gold; 60-90% for copper; and 65-75% for nickel.

  6. 3PE+Au = platinum, palladium, rhodium and gold.

  7. Totals may not sum due to rounding.

Platreef 2020 Feasibility Study Mineral Reserve

The mineral resources used as the basis of the Feasibility Study were those amenable to underground selective mining.

Table 7: Probable Mineral Reserves - tonnage and grades as at January 26, 2022.

Method Mt NSR($/t) Pt(g/t) Pd(g/t) Au(g/t) Rh(g/t) 3PE+Au(g/t) Cu(%) Ni(%)
Ore development 11.0 142 1.79 1.85 0.27 0.12 4.03 0.15 0.31
Long-hole 93.9 152 1.88 1.95 0.29 0.13 4.25 0.16 0.33
Drift-and-fill 20.3 184 2.30 2.25 0.37 0.15 5.07 0.18 0.37
Total 125.2 156 1.94 1.99 0.30 0.13 4.37 0.16 0.34

 

Method Mt Pt(Moz) Pd(Moz) Au(Moz) Rh(Moz) 3PE+Au(Moz) Cu(Mlb) Ni (Mlb)
Ore development 11.0 0.6 0.7 0.1 0.04 1.42 37 76
Long-hole 93.9 5.7 5.9 0.9 0.40 12.84 336 687
Drift-and-fill 20.3 1.5 1.5 0.2 0.10 3.31 83 166
Total 125.2 7.8 8.0 1.2 0.54 17.57 455 929

 

  1. Mineral Reserves have an effective date of January 26, 2022. The Qualified Person for the estimate is Curtis Smith (OreWin), MAusIMM (CP).

  2. A declining NSR cut-off of US$155/t to US$80/t was used for the Mineral Reserve estimates.

  3. The NSR cut-off is an elevated cut-off above the marginal economic cut-off.

  4. Metal prices used in the Mineral Reserve estimate are as follows: US$1,600/oz. platinum, US$815/oz. palladium, US$1,300/oz. gold, US$1,500/oz. rhodium, US$8.90/lb nickel and US$3.00/lb copper.

  5. Metal-price assumptions used for the Feasibility Study economic analysis are as follows: US$1,100/oz. platinum, US$1,450/oz. palladium, US$1,600/oz. gold, US$5,000/oz. rhodium, US$8.00/lb nickel and US$3.50/lb copper.

  6. Tonnage and grade estimates include dilution and mining recovery allowances.

  7. Total may not add due to rounding.

  8. 3PE+Au = platinum, palladium, rhodium and gold.

Platreef to be mined primarily using highly productive mechanized methods

Mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. Mining will be performed using highly productive mechanized methods, including long-hole stoping and drift-and-fill. Each method will utilize cemented backfill for maximum ore extraction.

Figure 13 shows the proposed shaft and ventilation raise locations, and the main access levels in an elevated view (looking north-east). Mining access ramps will connect the haulage levels with the mining sublevels and other infrastructure. The mining sublevels will be developed from the ramps at regular vertical intervals in the production areas. Drilling and extraction levels for stopes will be driven from the sublevels.

Figure 13: Platreef underground mine access layout.


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Figure by OreWin, 2022.

Following the completion of the changeover of Shaft 1, off-shaft development would start in April 2022 with the initial aim of enabling construction of the critical ventilation shaft 1 (Figure 14). This ventilation shaft not only enables future development of underground infrastructure but is planned to be the secondary means of egress from the mine until Shaft 2 is complete. Once Phase 1 ore production commences in Q3 2024, mining will focus on the higher-grade area approximately 450 metres from Shaft 1 (Figure 14), requiring less underground infrastructure to access.

Figure 14: Underground mine layout of initial development.



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Figure by Ivanhoe, 2022.

During Phase 2, primary access to the mine will be by way of a 1,104-metre-deep, 10-metre-diameter production shaft (Shaft 2). Secondary access to the mine will be via the 996-metre-deep, 7.25-metre-diameter ventilation shaft (Shaft 1). During mine production, both shafts also will serve as ventilation intakes. During Phase 2, ore will be hauled from the stopes to a series of internal ore passes and fed to the bottom of Shaft 2, where it will be crushed and hoisted to surface.

Conventional metallurgical flowsheet for Phase 1 and 2

Metallurgical testwork has focused on maximizing recovery of platinum-group elements (PGE) and base metals (mainly nickel) while producing an acceptably high-grade concentrate suitable for further processing and/or sale to a third party. The three main geo-metallurgical units and composites tested produced smelter-grade final concentrates averaging 85 g/t PGE+Au, at acceptable PGE recoveries. Testwork also has shown that the material is amenable to treatment by conventional flotation without the need for mainstream or concentrate re-grinding. Extensive bench-scale testwork comprising of open-circuit and locked-cycled flotation testing, comminution testing, mineralogical characterization, tailings dewatering, and rheological characterization was performed at Mintek of South Africa, an internationally accredited metallurgical testing facility and laboratory.

Comminution and flotation testwork have indicated that the optimum grind for beneficiation is 80% passing 75 micrometres. Platreef ore is classified as being "hard" to "very hard", and thus not suitable for semi-autogenous grinding; a multi-stage crushing and ball-milling circuit has been selected as the preferred size reduction method.

Improved flotation performance has been achieved using high-chrome grinding media, as opposed to carbon steel media. The inclusion of a split-cleaner flotation circuit configuration, in which the fast-floating fraction is treated in a cleaner circuit separate from the medium- and slow-floating fractions, resulted in improved PGE, copper and nickel recoveries and concentrate grades.

A phased development approach was adopted for the flow-sheet design in the 2022 Feasibility Study. Phase 1 comprises a stand-alone concentrator with a design capacity of 770 ktpa. Phase 2 comprises an additional two 2.2-Mtpa modules, which will be constructed sequentially to meet the mine ramp-up schedule.

Both Phase 1 and Phase 2 flowsheets incorporate a three-stage crushing circuit, feeding crushed material to the milling and flotation modules. Flotation is followed by concentrate thickening, concentrate filtration, tailings handling and tailings disposal facility. It is expected that plant performance over life-of-mine will achieve 3PGE+Au recovery of 86% at a concentrate grade averaging 85 g/t 3PGE+Au.

Members of the Orion Mine Finance and Nomad Royalty teams, with members of Platreef's mine development team, on the top platform of the Shaft 1 headgear.



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Kgalalelo Tladi, Chief Safety Officer, conducting a safety inspection of the Shaft 1 underground equipping stage.



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Sustainable, dry stacking tailings storage methodology

The tailings storage facility (TSF) design in the 2022 Feasibility Study is based on the dry stack methodology. Previously, a hybrid paddock deposition methodology was considered; however, Ivanplats opted to change the TSF deposition methodology from conventional upstream design to dry stacking, which has numerous benefits.

Dry stacking facilities are deemed to be inherently safer, as there is no hydraulic deposition; hence, in the unlikely event of a catastrophic failure, the risk of flooding the surrounding areas with tailings will be minimal. Stacked tailing storage facilities also are more water efficient in that most of the water in the tailings is captured in the dewatering plant, pumped directly back to the concentrator and re-used within the process.

During the 2022 Feasibility Study mine life, approximately 53 million tonnes of tailings will be stored in the dry stack TSF, with the remainder of the tailings (approximately 60% overall) to be used as backfill in the underground mine, further reducing the project footprint.

The TSF design also caters for a potential future expansion to 8-Mtpa production capacity, to be explored in future studies.

It is envisaged to use the approved rock-dump footprint within the immediate Platreef mine and concentrator areas as a dry stacking tailings facility during Phase 1. Golder Associates currently is performing the design work to apply for the relevant licences and/or amendments to the existing authorizations.

Ivanplats signs new agreement to provide local, treated water for Platreef's Phase 1 and 2 operations; supply of electricity also secured

The water requirement for the Phase 1 operation is projected to peak at approximately three million litres per day, which will then increase to nine million litres per day once the Phase 2 expansion is complete. On January 17, 2022, Ivanhoe announced the signing of new agreements for the rights to receive local, treated water to supply the bulk water needed for the phased development plan at Platreef. These agreements replace those originally signed in 2018.

Under the terms of a new offtake agreement, the Mogalakwena Local Municipality (MLM) has agreed to supply at least three million litres per day of treated effluent, up to a maximum of 10 million litres per day for 32 years, from the date of first production, sourced from the town of Mokopane's Masodi Waste Water Treatment Works, currently under construction.

Ivanplats also has signed a sponsorship agreement where Ivanplats has undertaken the commitment to complete the partially constructed Masodi Waste Water Treatment Works, which was halted in 2018. Ivanplats anticipates spending approximately ZAR 215 million (US$14 million) to complete the works, whereby Ivanplats' financial contribution will take the form of a sponsorship in favour of the municipality. Ivanplats will purchase the treated water at a reduced rate of ZAR 5 per thousand litres. Arrangements are underway to re-commence the construction works in Q3 2022, which are scheduled to take approximately 18 months.

On February 24, 2017, the 5 million-volt-ampere (MVA) electrical power line connecting the Platreef site to the Eskom public electricity utility was energized and now is supplying electricity to Platreef for shaft equipping and construction activities.

Ivanplats has reached an agreement with Eskom for the supply of a total of 100 MVA of power, which represents Platreef's electrical power requirement for the full Phase 2 mine, concentrator and associated infrastructure. As part of the 2022 Feasibility Study, Ivanhoe negotiated the load build-up with Eskom to cater for Phase 1's construction requirement of up to 8 MVA, Phase 1's production requirement of 25 MVA and later ramping up to 100 MVA for Phase 2.

Ivanplats opted for a self-build, with the construction contract awarded. The construction of the 2 X 27km Overhead lines for the 100MVA power supply commenced in November 2021. The contractors site establishment is completed, with bush clearing, and soil nomination tests under way, for the structure foundations.

Ivanplats arranges offtake for Platreef's Phase 1 production; evaluating options for Phase 2

Ivanplats recently signed documents relating to offtake for 100% of Phase 1's PGM concentrate production of approximately 40,000 tonnes per year, based on standard commercial terms for PGM mines in South Africa. The ability to place Phase 1 PGM concentrate reflects its high quality, which contains six payable metals including palladium, rhodium, platinum, nickel, copper and gold.

The offtake arrangements are with Northam Platinum Limited and Heron Metals Pty Ltd., a joint venture in which Trafigura Pte. Ltd. ("Trafigura"), a Singaporean registered company, has a majority shareholding. Northam Platinum is an independent, fully empowered, integrated PGM producer, with primary operations in South Africa including the wholly owned Zondereinde Mine and metallurgical complex, and Booysendal Mine. The Trafigura Group is one of the world's leading independent commodity trading and logistics houses.

The terms of the proposed offtake with Heron Metals / Trafigura are based on a non-binding indicative term sheet and are subject to negotiation and execution of definitive documentation for a concentrate sales agreement.

Ivanplats is evaluating alternatives for the processing of concentrate production during Phase 2, from 2028 onwards. This includes placing concentrates with smelters in South Africa or elsewhere, where additional capacity is expected to become available by the time steady-state production is achieved. Ivanplats is also considering standalone downstream processing options, including both conventional smelting and refining, and hydrometallurgical processes.

Shaft 1 changeover nearing completion with Shaft 2 early works underway

The construction of the 996-metre-level station at the bottom of Shaft 1 was completed in July 2020. Shaft 1 initially will be used to access the orebody and is approximately 450 metres away from a high-grade area of Flatreef that is planned for mining in Phase 1. The three development stations that will provide initial, underground access to the high-grade orebody also have been completed on the 750-, 850-, and 950-metre levels.

Shaft equipping commenced in May 2021 and remains on track to be completed in March 2022. Following the completion of the changeover work in the shaft, underground stations, and establishment of the ore and waste passes, lateral underground mine development will commence toward high-grade ore zones.

Lateral mine development on the 950-metre level toward the Flatreef orebody is expected to begin in Q2 2022. The initial development will use battery electric M2C drill rigs and 14-tonne load haul dumpers being manufactured by Epiroc, a leading mining equipment manufacturer, at its facilities in Örebro, Sweden. The partnership with Epiroc for emissions-free mining equipment is an important first step toward reducing the carbon footprint of the mine, with learnings to be applied across Ivanhoe Mines' operations. The battery electric mining fleet is expected to arrive on site in March 2022.

The contract for the initial mine development has been adjudicated and is in the final stages of negotiation. Newly designed rock chutes on surface will connect the conveyors feeding the concentrator plant and the waste rock area; from there the waste rock will be crushed and used as cemented backfill underground for maximum ore extraction, as well as for protection berms to contain storm water and reduce noise emissions.

Pilot drilling of the first main ventilation shaft will commence in Q2 2022, after which it will be reamed to its final diameter of 5.1 metres, providing the main return airway for the Phase 1 development. On completion, this ventilation shaft also will serve as a second egress from the mine.

Early-works surface construction for Shaft 2, including the excavation of a surface box-cut to a depth of approximately 29 metres below surface and construction of the concrete hitch for the 103-metre-tall concrete headframe, have been completed. The Shaft 2 headframe construction, from the hitch to the collar level, is progressing well with the third and fourth headgear lifts well advanced. Ten civil lifts are to be constructed in total, including a ventilation plenum and personnel access tunnel, with targeted completion in May 2022.

Phillip Ramphisa, Platreef's Environmental Manager, Business Sustainability, analyzing project water samples. Ivanhoe Mines is committed to responsible water use at all its projects in support of the  United Nations' Sustainable Development Goals .



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Development of human resources and job skills

Current and future human resource development at the Platreef Project is one of the largest contributors to the sustainable development of the project. Ivanplats has a commitment and dedication to being a Mine of the Future and an employer of choice, underpinned by excellence, and overseen by strategic and valuable recruitment, human resource development and workplace safety programs, among others. The Platreef Project's first five-year Social and Labour Plan (SLP) contributed R67 million (US$4 million) for the development of job skills among local residents.

Implementation of the second SLP currently is underway, through which Ivanplats plans to build on the foundation laid in the first SLP and continue with its training and development suite, which includes 15 new mentors, internal skills training for 78 staff members, a legends program to prepare retiring employees with new/other skills, community adult education training for host community members, core technical skills training for at least 100 community members, portable skills, and more.

Local economic development projects will contribute to community water source development with the Mogalakwena Municipality boreholes program, educational program in partnership with Department of Education, and significant funding for sanitation infrastructure at the municipality. The refurbishment and equipping of a health clinic in Tshamahansi Village, which will be conducted in partnership with other parties, will enable better access to health services for local residents.

Ivanplats proudly launched its first cadetship program, providing opportunities to 50 local youths every year. The program seeks to enhance gender diversity, with 54% of the students being female; and offers these cadets, who are scheduled to graduate in March, a national certificate in health and safety, as well as mining competencies, such as utility vehicle operations.

Chuene Matlala, Platreef's Senior Project Officer, responsible for the implementation of local economic development initiatives as part of the project's Social Labour Plan.



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Hendrietta Sarila, Project Geologist and Environmental Management Coordinator and Chairperson of the Women in Mining Committee, at the Platreef Project, a member of Deloitte's Women in Mining Class of 2021.

 



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Ivanplats draws down initial US$75-million tranche of US$300 million streaming facilities; financing focus now on securing US$120 million in senior debt

Ivanplats recently concluded stream-financing agreements for a US$200 million gold-streaming facility and a US$100 million palladium- and platinum-streaming facility, which will fund a large portion of the Phase 1 capital costs, with initial production scheduled in 2024. The stream facilities are to be drawn in two tranches, with the first tranche of US$75 million drawn in December 2021, and the second tranche of US$225 million to be drawn upon satisfaction of certain conditions precedent.

The conclusion of the stream-financing agreements allows Ivanplats to focus efforts on finalizing the senior debt facility for up to US$120 million. Both the gold stream facility and palladium and platinum stream facility will be subordinated to any senior secured financing.

The senior debt facility is anticipated to be used only after the stream facilities are fully drawn. Ivanplats remains flexible to raise additional capital at a later date.

Future expansion options

The 2022 Feasibility Study considers Platreef's Phase 1 and Phase 2 development, including only one third of the Indicated Resources above an US$80/t NSR cut-off. If the remainder of the Indicated Resources were to be converted to Mineral Reserves, it would provide an opportunity to significantly expand production.

The full indicated and inferred resource base at Platreef may support additional expansions and larger production capacity. As development and stoping continues, an infill drilling program from underground is recommended to increase confidence and potentially expand the resource base, which would underpin future studies on further mine expansions.

Qualified persons

The 2022 Feasibility Study and Technical Report has been prepared by:

  • OreWin of Adelaide, Australia - Overall report preparation and economic analysis, Mineral Reserve estimation and mine plan.

  • Mine Technical Services of Nevada, USA - Mineral Resource estimation.

  • SRK Consulting of Johannesburg, South Africa - Mine geotechnical recommendations.

  • DRA Global of Johannesburg, South Africa - Process and infrastructure.

  • Golder Associates Africa of Midrand, South Africa - Water and tailings management.

The independent qualified persons responsible for preparing the Platreef 2022 Feasibility Study, on which the technical report will be based, are Bernard Peters (OreWin); Curtis Smith (OreWin); Timothy Kuhl (Mine Technical Services); William Joughin (SRK); Val Coetzee (DRA Global); and Riaan Thysse (Golder Associates). Each qualified person has reviewed and approved the information in this news release relevant to the portion of the Platreef 2022 Feasibility Study for which they are responsible.

Other scientific and technical information in this news release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines' Vice President, Project Geology and Evaluation, a Qualified Person under the terms of NI 43-101. Mr. Torr is not considered independent under NI 43-101 as he is the Vice President, Project Geology and Evaluation of Ivanhoe Mines. Mr. Torr has verified the technical data disclosed in this news release.

Sample preparation, analyzes, and security

During Ivanhoe's work programs, sample preparation and analyses were performed by accredited independent laboratories. Sample preparation is accomplished by Set Point laboratories in Mokopane. Sample analyses have been accomplished by Set Point Laboratories in Johannesburg, Lakefield Laboratory (now part of the SGS Group) in Johannesburg, Ultra Trace Laboratory in Perth, Genalysis Laboratories in Perth and Johannesburg, SGS Metallurgical Services in South Africa, Acme in Vancouver, and ALS Chemex in Vancouver. Bureau Veritas Minerals Pty Ltd assumed control of Ultra Trace during June 2007 and is responsible for assay results after that date.

Sample preparation and analytical procedures for samples that support Mineral Resource estimation have followed similar protocols since 2001. The preparation and analytical procedures are in line with industry-standard methods for platinum, palladium, gold, copper and nickel deposits. Drill programmes included insertion of blank, duplicate, standard reference material (SRM), and certified reference material (CRM) samples. The quality assurance and quality control (QA/QC) program results do not indicate any problems with the analytical protocols that would preclude use of the data in Mineral Resource estimation.

Sample security has been demonstrated by the fact that the samples were always attended or locked in the on-site core facility in Mokopane.

Information on sample preparation, analyses and security will be contained in the Technical Report to be filed on SEDAR at www.sedar.com within 45 days of this news release, and which will be made available on the Ivanhoe Mines website at www.ivanhoemines.com .

About Ivanhoe Mines

Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of major new, mechanized, underground mines at the Kamoa-Kakula copper discoveries in the Democratic Republic of Congo and at the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the Democratic Republic of Congo.

Kamoa-Kakula began producing copper concentrates in May 2021 and, through phased expansions, is positioned to become one of the world's largest copper producers. Kamoa-Kakula is being powered by clean, renewable hydro-generated electricity and is projected to be among the world's lowest greenhouse gas emitters per unit of metal produced. Ivanhoe Mines has pledged to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) at the Kamoa-Kakula Copper Mine. Ivanhoe also is exploring for new copper discoveries on its Western Foreland exploration licences in the Democratic Republic of Congo, near the Kamoa-Kakula Project.

Information contacts

Investors: Bill Trenaman +1.604.331.9834 / Media: Matthew Keevil +1.604.558.1034

Cautionary statement on forward-looking information

Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the company, the Platreef Project, 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 news release.

The forward-looking statements and forward-looking information in this news release include without limitation, statements that (i) the Phase 1 mine is advancing towards first production in Q3 2024; (ii) Shaft 2 commissioning is accelerated to 2027; (iii) Phase 2 annual forecast production is more than 590,000 ounces of palladium, platinum, rhodium and gold, plus more than 40 million pounds of nickel and copper; (iv) Platreef is to have a cash cost of US$514 per ounce 3PE + AU; (v) changeover of Shaft 1 to a production shaft is expected to be completed in March 2022; (vi) earthworks for the first concentrator is planned to begin in Q2 2022; (vii) civil works and ordering of long lead items is planned for H2 2022; (viii) rock hoisting is to commence in Q2 2022; (ix) two 2.2 Mtpa concentrator modules will be commissioned in 2028 and 2029 once Shaft 2 is complete; (x) steady state production in Phase 2 is 5.2 Mtpa; (xi) the re-commencement of construction of the Masodi Waste Water Treatment is expected to begin in Q3 2022, and construction is expected to take approximately 18 months; (xii) lateral mine development is expected to begin on the 950-metre level in Q2 2022; (xiii) the battery electric mining fleet is expected to arrive at Platreef in March 2022; and (xiv) the senior debt facility of US$120 million is anticipated to be used only after the stream facilities are fully drawn; (xv) Platreef is projected to become one of the world's largest and lowest-cost producers of palladium, platinum, rhodium, nickel, copper and gold.

In addition, all of the results of the Platreef 2022 Feasibility Study constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price assumptions, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Platreef 2022 Feasibility Study. These include estimates of internal rates of return after-tax of 18.5% at long term consensus metal prices and 29.3% at spot metal prices with payback periods of 7.9 years and 6.6 years respectively; net present values at an 8% discount rate of US$1.7 billion at long term consensus metal prices and US$4.1 billion at spot metal prices; future production forecasts and projects, including average annual production of 590koz 3PE+Au; estimates of net total cash cost, net of copper and nickel by-product credits and including sustaining capital costs of US$514/oz; mine life estimates, including a 28.3 year mine life; initial capital costs of US$448 million and US$1.5 billion for expansion capital costs; Phase 1 average annual production of 113,000 ounces of 3PE + Au; cash flow forecasts; estimates of 3PE+Au recoveries of 86%. Readers are cautioned that actual results may vary from those presented.

All such forward-looking information and statements are based on certain assumptions and analyses made by Ivanhoe Mines' management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, industrial accidents or machinery failure (including of shaft sinking equipment), or delays in the development of infrastructure, and the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading "Risk Factors" in the company's most recently filed MD&A as well as in the most recent Annual Information Form filed by Ivanhoe Mines. Readers are cautioned not to place undue reliance on forward-looking information or statements. Certain of the factors and assumptions used to develop the forward-looking information and statements, and certain of the risks that could cause the actual results to differ materially are presented in technical reports available on SEDAR at www.sedar.com and on the Ivanhoe Mines website at www.ivanhoemines.com .

This news release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources and Mineral Reserves 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 or Mineral Reserve estimates may have to be re-estimated based on, among other things: (i) fluctuations in platinum, palladium, gold, rhodium, copper, nickel or other mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies; (iv) changes to proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licences.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115055

COMTEX_403229131/2523/2022-02-28T07:02:04

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