Robert Friedland, Chairman of Ivanhoe Mines (TSX: IVN)(NYSE:
IVN)(NASDAQ: IVN), and David Woodall, Chief Executive Officer of
Altynalmas Gold Ltd. and President of Ivanhoe Mines' Gold Division,
announced today that Altynalmas Gold has completed more than half
of a current, 39,000-metre, deep-level drilling program at its
world-class Kyzyl Gold Project in northeastern Kazakhstan.
"The drilling program now underway is beginning the process of
testing enormous exploration potential in what Ivanhoe's management
considers to be one of the world's highest-grade and largest
undeveloped gold systems," Mr. Woodall said.
"We now have completed 21,000 metres of our phase-one program.
We expect the results to form the basis for upgrading the Kyzyl
Gold Project's current Indicated resources to reserves as part of a
mine plan to be included in an independent pre-feasibility study
being completed by Scott Wilson Roscoe Postle Associates Inc. of
Toronto, Canada."
Ivanhoe Mines owns 50% of Altynalmas Gold, the 100%-owner of the
Kyzyl Gold Project, which includes the Bakyrchik and Bolshevik gold
deposits. An established, privately-owned Kazakh shareholder also
owns 50% of Altynalmas.
Mine production targeted for 2013
Following completion of the pre-feasibility study, Altynalmas
Gold intends to proceed with the detailed design of a phase-one,
1.5-million-tonne per year commercial plant that will treat head
grades in the range of nine or more grams of gold per tonne.
Mr. Woodall said that Altynalmas Gold intends to pursue
sufficient financing arrangements and the necessary regulatory
approvals to initiate project development. Altynalmas is targeting
to begin mine construction in 2011, with production starting in
2013.
In addition, Altynalmas Gold will continue to advance the Kyzyl
Gold Project with a 6,000-metre, near-surface drilling program at
the Bakyrchik property in April to test targets for potential,
initial open-pit development. Altynalmas also plans to continue to
delineate extensions of the mineralization along strike and at
depth to follow-up a significant, high-grade gold intercept that
indicates the continuation of the gold mineralization system at
depth and along strike.
Mr. Friedland announced last week that Ivanhoe Mines has
retained senior investment-banking advisers and is in detailed
discussions with potential strategic investors, including
established gold-industry players and sovereign-wealth funds, which
have expressed keen interest in the development of the Kyzyl Gold
Project.
Mr. Friedland said Ivanhoe and its private Kazakh partner intend
to pursue an independent stock-exchange listing for Altynalmas to
facilitate participation by a broad base of investors.
Unlocking value with fluidized-bed roasting - a proven solution
for optimum gold recovery
Mr. Woodall said that the key to unlocking the value of the
Kyzyl Gold Project has been the significant advances made in
adapting proven roasting technology and the application of
innovative process solutions developed by New Orleans-based
research company Crescent Technology Inc.
"The solutions developed by Crescent Technology evolved through
extensive test work performed during a series of continuous
pilot-plant operations at Hazen Research, Ltd., of Golden Colorado.
The testing program has enabled Altynalmas to achieve gold
recoveries of between 86% and 90% from the Bakyrchik ore using
fluidized-bed roasting."
The majority of the gold in the Kyzyl Shear is encapsulated by
arsenopyrite and, to a lesser extent, pyrite. The associated
sediments contain up to 4% carbon, which is burned in the roasting
process.
The Kyzyl gold system consists of a series of large mineralized
lenses, or lodes - with a true thickness frequently in excess of 50
metres - lying within a large, 15-kilometre-long shear zone. The
world-class geological potential remains untested along 13
kilometres of strike and at depth.
Located approximately 100 kilometres southwest of
Ust-Kamenogorsk, the industrial centre of East Kazakhstan, the
Kyzyl Project is served by an established railway and an
electricity grid, and also has significant, existing underground
workings, shafts and minesite infrastructure.
Current resource potential of one Kyzyl Project deposit
As part of its ongoing commitment to the Kyzyl Project,
Altynalmas Gold has engaged Scott Wilson Roscoe Postle and
Associates (SWRPA) to produce an independent, NI 43 101-compliant
resource estimate for the Bakyrchik Deposit, one of the two
deposits in the Kyzyl Gold Project. The current resource estimate
is providing the input for the ongoing pre-feasibility study being
undertaken by SWRPA.
The current resource estimate is shown in the following
table.
ALTYNALMAS GOLD - KYZYL GOLD PROJECT - MARCH 26, 2010
Bakyrchik Mineral Resources
Indicated Resources Inferred Resources
Contained Contained
Tonnes Grade Gold Tonnes Grade Gold
Lens (000) (g/t Au) (ounces) (000) (g/t Au) (ounces)
---------------------------------------------------------------------------
1 5,881 9.13 1,726,000 10,009 9.03 2,907,000
9 2,711 8.20 714,000 677 8.39 183,000
12 152 8.62 42,200 4,537 9.02 1,316,000
Total 8,744 8.83 2,482,200 15,223 9.00 4,406,000
Notes:
1. CIM definitions were followed in the estimation of Mineral Resources.
2. Mineral Resources are estimated within the wireframes constructed at a
cut-off grade of 3 g/t gold.
3. Mineral Resources are estimated using an average long-term gold price of
$1,000 per ounce gold.
4. A minimum true width of 3 metres was used to provide a vertical mining
width of 4 metres.
5. High gold assays were capped at 35 g/t. Assays were capped prior to
compositing.
6. Average bulk density is 2.7 t/m3.
7. Reported Mineral Resources are exclusive of previous underground mining.
Current resource delineation drilling program at the Bakyrchik
Mine
The current resource delineation drilling program is intended to
upgrade Inferred Resources into the Indicated category to allow
them to be included in future economic analyses. As a result, there
likely will be a significant increase in the project's Indicated
Resources in the near future.
Current drilling to date has been focussed on the middle zone of
Lens 1. Assaying is being completed at an ISO certified laboratory
in Vancouver, Canada.
Ivanhoe Mines will continue to provide updates as the Kyzyl Gold
Project evolves as an important new venture within the company's
asset portfolio.
Qualified Person
Disclosures of a scientific or technical nature in this release
have been reviewed by David Woodall, Ivanhoe Mines' President of
Gold Operations and a Qualified Person as defined by National
Instrument 43-101.
About Ivanhoe Mines
Ivanhoe Mines is an international mining company with operations
focused in the Asia Pacific region. Ivanhoe's core assets include
its world-scale, Oyu Tolgoi copper-gold mine development project in
southern Mongolia.
The company's other core assets are its 65% interest in
Mongolian coal miner SouthGobi Energy Resources (SGQ:TSX &
1878:HK) and an 81% interest in Ivanhoe Australia (IVA: ASX), a
copper-gold-uranium-molybdenum-rhenium exploration and development
company.
Ivanhoe Mines' shares are listed on the New York, NASDAQ and
Toronto stock exchanges under the symbol IVN.
Forward Looking Statements:
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of our
beliefs, intentions and expectations about developments, results
and events which will or may occur in the future, constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation and "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995.
Forward-looking information and statements are typically identified
by words such as "anticipate," "could," "should," "expect," "seek,"
"may," "intend," "likely," "plan," "estimate," "will", "believe"
and similar expressions suggesting future outcomes or statements
regarding an outlook. These include, but are not limited to,
statements respecting Altynalmas Gold's planned exploration and
development work; the planned development work at the Bakyrchik
mine to support a mine producing 1.5 million tones per year; the
timing for completion of the planned prefeasibility study; the plan
to commence mine construction in 2011 and production in 2013; the
plan to pursue an independent stock listing; the ability to
consistently achieve recovery rates between 86% and 90%, and the
likely significant increase in the project's indicated resource in
the near future.
All such forward-looking information and statements are based on
certain assumptions and analyses made by Ivanhoe Mines' management
in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. These statements, however, are subject to a variety
of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking information or statements. Important factors
that could cause actual results to differ from these
forward-looking statements include those described under the
heading "Risks and Uncertainties" elsewhere in the Company's
MD&A. The reader is cautioned not to place undue reliance on
forward-looking information or statements.
Contacts: Ivanhoe Mines Ltd. - Investors Bill Trenaman
+1.604.688.5755 Ivanhoe Mines Ltd. - Media Bob Williamson
+1.604.331.9830 www.ivanhoemines.com
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