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Ivanhoe Mines Ltd T.IVN

Alternate Symbol(s):  IVPAF

Ivanhoe Mines Ltd. is a Canada-based mining, development, and exploration company. It is focused on the mining, development and exploration of minerals and precious metals from its property interests located primarily in Africa. Its projects include Kamoa-Kakula Complex, Western Foreland, Kipushi and Platreef. The Kamoa-Kakula Complex project is a stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometers (kms) west of the town of Kolwezi and approximately 270 kms west of the provincial capital of Lubumbashi. The 17 licenses in the Western Foreland cover a combined area of 2,407 square kilometers to the north, south and west of the Kamoa-Kakula Copper Complex. The Kipushi Project lies adjacent to the town of Kipushi and 30 kms southwest of the provincial capital of Lubumbashi. Its Platreef project is situated approximately eight km from Mokopane and 280 km northeast of Johannesburg, South Africa.


TSX:IVN - Post by User

Bullboard Posts
Post by bloomfield18on Mar 14, 2018 2:41pm
187 Views
Post# 27715118

Kakula: 49.6 million Troy ounces at 8.89 gram/tonne Au Eq

Kakula: 49.6 million Troy ounces at 8.89 gram/tonne Au EqWith 21.5 billion lbs copper at the 3% cutoff,this works out to 49.6 million troy oz of VERY HIGH GRADE gold equivalent priced at $1300 oz gold. I thought it would be interesting to translate the copper into gold and see what kind of gold mine would be required to match Kakula in value. And remember Kakula is still expanding. All values from Feb 26 news release. Here are the calculations in USD:

For an average 5.62% copper at the 3% cutoff:

0.0562 x 2204 lb/tonne = 123.86 lb Cu/t 
123.86 lb Cu/t x $3/lb Cu = $371.59/t 
($371.59/t) / ($1300/Troy oz gold) = 0.2858 t.oz AuEq / tonne copper ore

31.1 grams/Troy oz x 0.2858 t.oz AuEq = 8.89 grams/tonne AuEq

Then we know there are 21.5 billion lbs copper at the 3% cutoff:

21.5 billion lbs x $3/lb = $64.5 billion 
$64.4 billion / $1300/t.oz gold = 49.6 million Troy ounces

And that would be for a Very High Grade gold mine with ore at 8.89 grams/tonne. That is equivalent to the Goldfields South Deep mine with a resource (not reserves) of 68.4 million oz at a grade of 6.4 g/t Au. South Deep is the second largest gold mine in the world. Grasberg is first, although at far lower grades.
Bullboard Posts