Ivanhoe Mines to Begin Sinking Bulk-Sample Shaft At Its Platreef Platinum-Group Metals, Nickel, Copper and Gold Project on South Africa's Bushveld Complex

The South African government's Department of Mineral Resources has notified Ivanhoe Mines of its approval of the planned bulk-sampling procedure.

Contractor mobilization and site preparation for the 7.25-metre-diameter Shaft #1 will begin in Q4 2013 and approximately 250 contract employees will be working on the shaft once the sinking work begins. The vertical shaft will extend to a depth below surface of 800 metres and facilitate the collection of a mineralized bulk sample in the second half of 2015 to complete the company's development assessment of the Flatreef.

Shaft #1 is expected to cost US$80 million (ZAR 818 million), which is expected to be fully funded from the approximately US$180 million in dedicated funds remaining in Ivanhoe's treasury from the US$280 million received in 2011 for the sale of an 8% interest in the Platreef Project to a Japanese consortium of Itochu Corporation, Japan Oil, Gas and Metals National Corporation (JOGMEC) and JGC Corporation.

Read More: finance.yahoo.com/news/ivanhoe-mines-begin-sinking-bulk-112247119.html