Mining crews have driven underground development into the high-grade Flatreef platinum, palladium, rhodium, nickel, gold and copper orebody for the first time, as the Platreef mine, in Limpopo, rapidly advances to commercial production later this year.

The significant milestone comes over 30 years since Ivanplats, TSX-listed Ivanhoe Mines’ subsidiary, acquired the first exploration licence and 15 years since the discovery of the 26-m-thick, flat-lying Flatreef orebody was announced.

Ivanhoe says the milestone also comes nine years since the initiation of the sinking of Shaft 1.

After completing the sinking of Shaft 1 to a depth of 996 m in 2021, Ivanhoe has completed 5.5 km of tunnels on three levels; the 750 m, 850 m and 950 m levels.

Ivanplats’ mining crews entered the Flatreef orebody on the 850 m level, with the first blast of high-grade ore on May 7. Underground development on the 750 m and 950 m levels will also enter the Flatreef orebody in the coming weeks.

Ore from the ongoing underground development will be stored on surface ahead of the first feed of ore into the Phase 1 concentrator in the fourth quarter of this year.

Ivanhoe says construction of Africa’s largest hoisting shaft, Shaft 2, is advancing well.

Raiseboring to a depth of 950 m and an initial diameter of 3.1 m was completed at the end of the first quarter. Shaft 2’s expansion out to a final diameter of 10 m will begin in early 2026.

In the meantime, construction of Shaft 2’s concrete and steel headframe is advancing on schedule.

Ivanhoe says completion of Shaft 2 will increase the total hoisting capacity from the Platreef mine to over 12-million tonnes a year.

"Having our thrilled mining crews enter the high-grade Flatreef orebody . . . rich in platinum, palladium, rhodium, nickel, gold and copper . . . represents the culmination of over 30 years of relentless dedication by thousands of our talented and hardworking people.

“Their efforts have spanned decades, from the early stages of discovery to meticulous delineation, permitting, engineering. . . and now the construction of this world-class polymetallic mining complex that will benefit humanity for generations.

"Contrary to predictions that the Platreef mine might not be built, the mine is now a reality . . . This colossal mine will grow in rapidly-phased expansions, positioning the Platreef mine as one of the lowest-cost, if not the lowest-cost, and largest primary producers of platinum group metals on our planet,” says Ivanhoe co-chairperson Robert Friedland.

With a globally significant precious metals endowment exceeding 50-million ounces of gold-equivalent, he describes Platreef as a “world-leading” polymetallic mine in development.

“The discovery remains open in many directions, with vast additional untapped opportunities . . . despite already having proven an astounding mineral inventory containing two-billion tonnes of the world’s richest platinum, palladium, rhodium, nickel, copper and gold system.

"This year, we are excited to offer institutional investors and analysts guided tours of the magnificent Platreef mine. Our guests will witness firsthand the scale, innovation and electrifying possibilities of what will redefine the polymetallic mining landscape,” Friedland adds.

FEASIBILITY STUDY HIGHLIGHTS

Ivanhoe notes that the feasibility study targets first production from Phase 1 in the fourth quarter of this year and for the Phase 2 expansion to be completed in the fourth quarter of 2027.

The first feed of ore into the 770 000 t/y Phase 1 concentrator is expected in the fourth quarter of this year.

Phase 1 annualised production is expected to ramp up to about 100 000 oz of platinum, palladium, rhodium and gold (3PE+Au), plus 2 000 t of nickel and 1 000 t of copper.

Phase 1 will use both Shaft  1 and Shaft  3 for hoisting ore and waste, with a total combined hoisting capacity of up to five-million tonnes a year.

The remaining capital expenditure for Phase 1 is $70-million.

Ivanhoe notes that the feasibility study outlines an increase in the total processing capacity to about 4.1-million tonnes a year. This is achieved from a new 3.3-million-tonne-a-year Phase 2 concentrator module from the fourth quarter of 2027.

The feasibility study ranks the Platreef mine as the lowest-cost primary platinum group metal producer globally, with life-of-mine total cash costs of $599/oz of 3PE+Au, including royalties, streams, and net of by-products. Including sustaining capital, total cash costs are $704/oz of 3PE+Au.

The feasibility study estimates life-of-mine (LoM) annualised production, once fully ramped up, of between 450 000 oz and 550 000 oz of 3PE+Au, plus about 9 000 t of nickel and 5 600 t of copper.

Ivanhoe says this is expected to rank the Platreef mine as the eighth-largest primary PGM producer on a platinum-equivalent basis.

The company notes that the 4.1-million-tonne-a-year feasibility study will initially use Shaft 1 and Shaft 3 for hoisting ore and waste to feed the Phase 2 concentrator module.

Shaft 2 is expected to be initially equipped for hoisting labour and materials from 2029, further increasing total hoisting capacity, providing significant operational flexibility.

The expansion capital cost to 4.1-million tonnes a year is estimated at $1.2-billion, which is expected to be funded from an expanded project finance facility and equity.

The company says the feasibility study estimates an after-tax net present value (NPV) of $1.4-billion and an internal rate of return (IRR) of 20%, based on long-term consensus prices over a mine life of 35 years.

PEA HIGHLIGHTS

Meanwhile, Ivanhoe says a preliminary economic assessment (PEA) that considers output of up to 10.7-million tonnes a year outlines an expansion from 2030 to rank the Platreef mine as one of the largest global primary PGM producers, with significant nickel and copper by-product credits.

The PEA includes a further phase of expansion, Phase 3, to a total processing capacity of 10.7-million tonnes a year, following the completion of two additional 3.3-million-tonne-a-year concentrator modules in 2030 and 2032.

LoM total cash costs for the PEA are expected to be $511/oz of 3PE+Au, net of by-products, benefitting from significant economies of scale. Including sustaining capital, total cash costs are expected to be $641/oz of 3PE+Au, net of by-products.

Annualised production, once fully ramped up, is expected to be between one-million and 1.2 million ounces of platinum, palladium, rhodium and gold, plus about 22 000 t of nickel and 13 000 t of copper.

The company says Phase 3 is expected to rank the Platreef mine as one of the largest primary PGM producers on a platinum equivalent basis, as well as a significant nickel producer.

The PEA uses Shaft 2 and Shaft 3 for hoisting ore and waste with a combined total capacity of over 12-million tonnes a year.

The incremental expansion capital cost for the 10.7-million tonnes a year is estimated at $803-million, leveraging the significant surface and underground infrastructure already constructed during Phase 2.

The 10.7-million tonnes a year PEA delivers an NPV of $3.2-billion and an IRR of 25%, based on long-term consensus prices over an LoM of 29 years.