Return to Asia: Ivanhoe Mines Launches Copper Mine Exploration in Kazakhstan

Robert Friedland, Executive Co-Chairman of Ivanhoe Mines, Weibao Hao, Co-Chairman, and Marna Cloete, President, announced today the formation of an exploration joint venture with a UK-based private company to conduct exploration in the Chu-Sarysu Basin in Kazakhstan, the world's third-largest sediment-hosted copper belt.

The joint venture's exploration license covers an area of 16,000 square kilometers, with significant exploration potential supported by extensive Soviet-era exploration data. The license area is approximately 7.5 times the size of Ivanhoe's Western Foreland exploration project.

Ivanhoe will invest $18.7 million in exploration activities over the first two years and may exercise its earn-in rights to gradually increase its ownership in the joint venture to 80%. Current exploration activities include hiring a specialized exploration team. The tender process for an airborne geophysical survey contract is underway, with evaluations and contract signing expected to be completed soon.

Robert Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, commented: "You might wonder why we are going to Kazakhstan? Because Kazakhstan is a major mining jurisdiction, home to the world's third-largest sediment-hosted copper basin. Ivanhoe has a long history in Kazakhstan. We love this country and its people. We are eager to return to this great nation to further explore and unlock the vast geological potential of the Chu-Sarysu Basin."

"Our achievements at the Kamoa-Kakula copper mine project in the Democratic Republic of Congo (DRC) and the expanding copper discoveries at the Western Foreland project demonstrate our extensive experience and expertise in discovering and developing world-class sediment-hosted copper deposits. Over the past 28 years, we have discovered more than 50 million mt of copper in the DRC, and we continue to make new discoveries. We are building on this success to achieve even greater milestones."

"This strategic partnership provides us with a unique opportunity to leverage our exploration expertise in one of the world's most promising copper-hosting basins. The Chu-Sarysu Basin, with an exploration license area exceeding 16,000 square kilometers, represents the largest landholding in the region and has the potential to become one of the world's largest copper exploration projects."

"Ivanhoe has a proud track record of establishing success in emerging mining jurisdictions, including Kazakhstan. We are committed to using our expertise to create lasting value for our shareholders and the local communities in our host countries. Our commitment extends beyond discovering significant copper resources; we are also focused on sustainable development and creating long-term economic opportunities in Kazakhstan."

"This partnership complements our growing copper exploration portfolio and aligns with the rapid development of the Western Foreland exploration licenses adjacent to Kamoa-Kakula. The Western Foreland licenses represent our second-tier copper production project in the DRC, where we are actively advancing exploration and expect to announce updates soon."

The Chu-Sarysu Basin in Kazakhstan is the world's third-largest sediment-hosted copper basin, following the resource-rich Central African Copperbelt.

The Chu-Sarysu Basin is the world's third-largest sediment-hosted copper basin, with identified copper resources of 27 million mt, ranking behind the Central African Copperbelt and the European Copperbelt.

The Chu-Sarysu Basin hosts several large deposits, including the Zhezkazgan mining district, which has a 100-year history and contains over 22 million mt of copper. The district includes one open-pit mine and six underground mines, producing approximately 200,000 mt of copper annually, along with significant silver by-products.

The U.S. Geological Survey (USGS) estimates that the Chu-Sarysu Basin contains approximately 25 million mt of potential copper resources (note: scientific estimates, not industrially defined resources), highlighting its significant exploration potential. Additionally, the basin hosts lead, zinc, silver, barium, and strontium deposits. Despite its promising prospects, no large-scale greenfield exploration has been conducted in the past 40 years.

The joint venture will leverage Ivanhoe Mines' decades of exploration success, including the discovery of over 50 million mt of sediment-hosted copper at Kamoa, Kakula, Makako, and Kitoko in the Western Foreland of the DRC.

Ivanhoe Mines aims to discover the next major copper deposit within the exploration license area. The license area spans 16,000 square kilometers, 7.5 times the size of the Western Foreland.

Ivanhoe has acquired an initial 20% stake in the joint venture's exploration license and will invest $18.7 million over the next two years for exploration expenditures. The company submitted an exploration license application in Q4 2024, covering a total area of approximately 16,000 square kilometers. Ivanhoe's partner, UK-based Pallas Resources, has compiled and digitized extensive Soviet-era exploration data for the license area. Preliminary analysis has identified multiple potential targets, with further studies planned following the completion of airborne geophysical surveys later this year.

After two years, Ivanhoe will have the right to invest up to $115 million over the subsequent four years (to retain the entire license area) to acquire a controlling majority stake. Ivanhoe may decide on additional exploration expenditures for each license based on exploration results and prospects, adjusting its investment plans accordingly.

In the event of a significant copper discovery, Ivanhoe may fund and complete a pre-feasibility study to acquire up to an 80% stake.

(Distribution of major copper mining areas and large copper projects in Kazakhstan. The U.S. Geological Survey estimates that the Chu-Sarysu Basin contains approximately 25 million mt of potential sediment-hosted copper resources, yet to be explored and discovered.)

Kazakhstan is an underexplored, cost-effective, and mining-friendly jurisdiction.

Kazakhstan, a Central Asian country with a long mining history, is the world's largest uranium producer, the second-largest chromite producer, and a major producer of copper, zinc, iron ore, and coal. Currently, mining and quarrying account for approximately 14% of Kazakhstan's GDP and 17.5% of its exports, equivalent to about $10.5 billion.

Kazakhstan is a highly cost-effective jurisdiction for mineral exploration and mining, with a skilled workforce and relatively low operating costs (including labor and electricity).

Kazakhstan has significant geological potential, but its exploration expenditures are notably lower than those of other major mining jurisdictions. According to S&P Global, Kazakhstan's average annual exploration spending over the past 15 years was approximately $100 million. However, exploration activity has increased significantly over the past 12 months, driven by simplified registration processes for exploration licenses and the availability of Soviet-era geophysical data.

About Ivanhoe Mines

Ivanhoe Mines is a Canadian mining company advancing three flagship projects in Southern Africa: the Kamoa-Kakula copper mine in the DRC, the Kipushi ultra-high-grade zinc-copper-germanium-silver polymetallic mine, also in the DRC, and the Platreef top-tier palladium-nickel-platinum-rhodium-copper-gold project in South Africa.

Ivanhoe Mines is also exploring for new copper resources within the highly prospective Western Foreland exploration licenses. Ivanhoe holds a 60-100% interest in the Western Foreland licenses, which cover an area five times larger than the adjacent Kamoa-Kakula copper mine. Ivanhoe is seeking new sediment-hosted copper resources and plans to expand and delineate high-grade copper resources at Makoko, Kiala, and Kitoko, the company's next major development projects.

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