Vancouver – In a move to benefit from buoyant copper prices, Ivanhoe Mines (IVN-T) is ramping up production at its Monywa mine in Myanmar, southeast Asia, a 50/50 joint venture with Mining Enterprise No. 1, a state-owned company.
Copper production from the mine is expected to increase 40% by the third quarter of this year, to 39,000 tonnes (86 million pounds) annually. This is the first of a two-phase increase planned for the mine. Implementation of the second phase will see production further increased to 50,000 tonnes annually.
The mine utilizes a solvent extraction-electrowinning (SX-EW) process and typically produces 99.999%-pure cathode copper, classified as LME Grade A, which trades at a premium to spot copper prices.
The most recently reported operating costs for the mine shows cash costs of 38 (US) per pound. At recent copper prices, the operation is generating cash flow of between 80 cents to US$1.00 per pound.
Additionally, a program of infill drilling has been initiated on an area of high-grade structures at the Sabetaung deposit, Monywa’s principal source of ore. High-grade copper structures southeast of the Sabetaung pit and to depth are being targeted as potential reserve expansion.
Hole SDD0416, drilled from within the pit, intersected 194 metres of 1.5% copper including several two-metre intervals grading from 3% to over 16% copper in zones of primary (hypogene) mineralization.
The Monywa copper mine is composed of four deposits, the Sabetaung, Sabetaung South, Kyisintaung and Letpadaung. The latest figures report proven reserves of 506 million tonnes grading 0.43% copper plus additional probable reserves of 503 million tonnes of 0.39% copper.
Ivanhoe commenced copper production at Monywa in late-1998.
At presstime, the issue was trading around the $8 range. As of the latest figures, Ivanhoe has 271.7 million shares outstanding.
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