From 1924 until 1993, the Prince Leopold (Kipushi) Mine close to D.R. Congo mining capital, Lubumbashi, was the richest copper, zinc, and germanium mine in the world, producing 6.6 million tonnes of zinc, 4 million tonnes of copper, and 278 tonnes of germanium from 60 tonnes of material grading 11% zinc and 7% copper.

Kipushi was abandoned in the early 1990's because of political instability, after being mined to the 1,220 metre level, despite mineralization extending to 1,800 metres below surface, based on Gécamines drilling. A lack of care and maintenance in the two decades that followed caused Kipushi to flood in 2011, the same year that Ivanplats (now Ivanhoe Mines) acquired a 68% interest in the project, and began the dewatering process, which has since been ongoing.

Today, assay results from the first drilling by Ivanhoe at depth confirm visual estimates of exceptionally high-grade zinc and copper values, which are also complimented by strong germanium and silver grades.

From the news release (emphasis mine):

  • Three holes drilled to validate historical models of the down-plunge continuity of Big Zinc mineralization returned zinc grades of 40.9% over 348.5 metres, 44.8% over 339.4 metres, and 33.3% over 305.8 metres. The down-plunge geometry of the holes does not allow for estimation of true widths.
  • Internal zones of exceptionally rich mineralization in the first two holes, KPU001 and KPU002, returned zinc grades of 60.4% over 35.1 metres, 56.3% over 18.0 metres, and 56.6% over 71 metres. These internal zones also returned germanium grades of 87.2, 120.4 and 111.9 grams per tonne (g/t), respectively.
  • An internal copper-silver-germanium rich zone in the third hole KPU003 graded 6.1% copper, 44.5% zinc, 144 g/t silver and 66.9 g/t germanium over 31 metres from 197 metres. Historical resource estimates at Kipushi excluded silver and germanium.
  • The third hole, KPU003, also discovered a zone grading 58.6% zinc and 293.8 g/t germanium over 22.3 metres, approximately 180 metres below the historical measured and indicated resources. This exceptional grade intersection may represent an extension to the Big Zinc or the start of a new zinc- and germanium-rich zone, and will be followed up by ongoing drilling.
  • In addition, two holes from Ivanhoe's exploratory drilling program targeting the Série Récurrente ("Recurring Series") zone at the north end of the Kipushi deposit returned very high copper and silver grades. Hole KPU008 intersected 11.4 metres (estimated true width of 11.2 metres) grading 17% copper and 89.6 g/t silver.

"Zinc grades of between 56% and 60% typically are found in high-quality zinc concentrates, rather than primary mineralization," said Robert Friedland, founder, Executive Chairman and roughly 25% owner of the company.

"At current spot prices of approximately $2,000 a kilogram for germanium and $21 an ounce for silver, we expect the germanium and silver grades could add to the overall metal value at Kipushi", said Eric-Lars Johansson, Ivanhoe's CEO. "Sulphur content, particularly in the Big Zinc, also represents a potentially significant value addition given the scarcity of primary sulphur supply in the Copperbelt region, and the demand for acid in conventional in-country oxide recovery circuits."

More information on the assay results, maps as well as an update on the refurbishment of the mine were provided in the company's news release.

Read: First assay results from Ivanhoe Mines' drilling program confirm high zinc and copper grades at the Kipushi Mine in D.R. Congo

Kipushi is the lowest priority of three core projects owned by Ivanhoe, with the world's largest high grade copper project, Kamoa, and the world's richest platinum ore body ever discovered, Platreef, rounding out the roughly $1.05 billion market capitalization company's development portfolio.

A recent $168 million financing will see Kipushi and Kamoa through to pre-feasibility, while the first shaft at Platreef is currently being sunk. Each of the projects are likely 3+ years away from reaching commercial production.

At an Ivanhoe Mines site tour in the D.R.C. this February, Robert Friedland shared extreme enthusiasm for the Kipushi project with his investor guests, myself included.

"Remember Crocodile Dundee when he said, 'That's not a knife, this is a knife,'" Friedland asked in his best Aussie accent.

"THIS... is a zinc mine," he added.

Disclosure: I own Ivanhoe Mines shares as a long term speculation. Always do your own due diligence. Thank you.