Ivanhoe Mines (OTCMKTS:IVPAF), a base metals and platinum development company, advanced in afternoon trading after saying a large mine and smelter would be developed using a two-phased approach in the Democratic Republic of Congo.
Ivanhoe shares added 3.2 percent to $2.10 at 12:40 p.m. in New York, trimming this year's losses to 51 percent.
The preliminary economic assessment of its Kamoa copper discovery indicated the project would cost $1.4-billion to construct and at a steady-state, would target output of 300,000 tonnes per year of blister copper, the Vancouver, British Colombia-based company said in a statement today.
That output target would establish Kamoa as one of the world's largest and highest-grade copper mines, according to Ivanhoe.
The assessment gave the asset a $4.3-billion pre-tax net present value (NPV) at an 8 percent discount rate and confirmed Kamoa to be in a class of its own.
The Kamoa project is a newly discovered, very large, stratiform copper deposit, with adjacent prospective exploration areas within the Central African copperbelt, and would be developed into a large mine and smelter in two phases.
"Kamoa has the rare combination of a very high copper grade and very large tonnage, qualities that position Kamoa to become a substantial copper producer with one of the lowest cash costs anywhere in the world," the statement quoted Robert Friedland, founder and executive chairman, a saying.
Kamoa would also produce an estimated 1,600 tonnes of sulphuric acid per day. The acid would be sold to copper-oxide miners on the Central African copper belt that currently purchase acid from Zambia or from overseas, Ivanhoe Mines said.