Ivanhoe Mines Ltd. (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN) -
-- Average annual production estimated at 1.2 billion pounds of copper and
650,000 ounces of gold for the first 10 years
-- Plan declares first underground mineral reserves for Hugo Dummett block-
cave mine
-- Oyu Tolgoi on track to become one of the world's top three copper-gold
mines
A new, independent Integrated Development Plan confirms that
Ivanhoe Mines' Oyu Tolgoi Project in southern Mongolia has the
mineral resources to become one of the world's top three
copper-gold producers and an industry model of responsible,
environmentally-sound mineral development, Ivanhoe's Executive
Chairman Robert Friedland and President and Chief Executive Officer
John Macken announced today.
The new plan, IDP-10, is a comprehensive update of the original
2005 Integrated Development Plan and supports Ivanhoe Mines'
commitment to advance Oyu Tolgoi into full construction, with
production of copper and gold expected to begin in 2013.
The Oyu Tolgoi development blueprint contains the first
published declaration of underground reserves for the planned Hugo
Dummett block-cave mine. It also presents the results of extensive
studies of two complementary development scenarios:
1. A Reserve Case, based only on Proven & Probable Mineral Reserves
established to this point in time, which would sustain mining for a
projected 27 years.
2. A Life-of-Mine Sensitivity Case, which adds to the Reserve Case a large
base of resources identified through exploration to date but currently
classified only to the level of Inferred Resources under Canada's
internationally recognized definitions standards. Inferred mineral
resources are considered too speculative geologically to have the
economic considerations applied to them that would allow them to be
categorized as mineral reserves, and there is no certainty that the
Life-of-Mine Sensitivity Case will be realized. The IDP-10 estimates
that the Life-of-Mine Sensitivity Case would sustain mining at Oyu
Tolgoi for a projected 59 years. Part of the ongoing exploration program
at Oyu Tolgoi is directed at upgrading Inferred Resources to higher
classifications, as has been progressively accomplished during the past
nine years of exploration and discovery at the project.
In both cases, the average production at Oyu Tolgoi over the
first ten years would exceed 1.2 billion pounds (544,000 tonnes) of
copper and 650,000 ounces of gold.
IDP-10 independent report prepared by international experts
The 2010 Integrated Development Plan is an independent report
commissioned for the project by Ivanhoe Mines from a team of the
world's foremost engineering, mining and environmental consultants,
led by Australia-based AMEC Minproc and including U.S.-based
Stantec Engineering. The complete Plan, a technical report
compliant with Canada's 43-101 reporting standing, will be
available on the SEDAR document retrieval service within 45
days.
The scale of the Oyu Tolgoi project has increased significantly
since the release of the first Integrated Development Plan in 2005.
In accordance with its corporate responsibilities as a public
company, Ivanhoe Mines, the project's controlling shareholder, has
commissioned updates that reflect independent analyses of project
economics, increased mineral resources and reserves and revised
valuation estimates. Disclosure of this accumulated information
incorporated in the updated IDP-10 has been triggered by the
completion of the Oyu Tolgoi Investment Agreement, which took full
legal effect on March 31, 2010, which enabled use of the
agreement's fiscal provisions in modelling for the IDP-10.
The IDP-10 was prepared independently of Rio Tinto and the joint
Ivanhoe Mines-Rio Tinto Oyu Tolgoi Technical Committee. The IDP-10
recommends that Oyu Tolgoi LLC, the Mongolian company that is
developing and will operate the mining complex, conduct a
comprehensive review to establish a baseline for the Project with a
goal of improving or optimizing value. The IDP-10 also recommends
that its conclusions be reviewed and analyzed by the joint
Technical Committee to help determine detailed plans for the
ongoing implementation of the Project.
New IDP a green light to launch Oyu Tolgoi construction
Mr. Macken said that the IDP-10, developed within the terms of
the Investment Agreement signed with the Government of Mongolia in
October 2009, consolidates the extensive planning and construction
activities that have been conducted as part of the Oyu Tolgoi
Project since the completion of the original IDP in 2005.
"Given the scale of our discoveries and the outstanding
economics of this project, this updated plan gives us the green
light we were expecting from this process to continue proceeding
straight into construction and operation of a world-class mine. The
increase in value and the amount of mineral reserve, with the first
inclusion of underground reserves, will support our financing plans
as we begin our drive toward operations at Oyu Tolgoi," Mr. Macken
said.
"This 2010 IDP incorporates the thinking of many of the world's
leading, independent authorities on efficient development of
natural resources and best-practice environmental management. The
plan is further confirmation that Oyu Tolgoi will positively and
significantly contribute to Mongolia's economic growth and social
development for generations to come."
Mr. Friedland said that the Life-of-Mine Sensitivity Case
generates a 95% increase in potential feed for the ore processing
plant over projections in the 2005 IDP. "This case increases
estimated copper production by 50%, to 52.5 billion pounds, or 23.8
million tonnes, and increases estimated gold production by 126%, to
26.4 million ounces, over projections reported in the 2005 IDP.
"Ivanhoe Mines believes that these results will continue to
improve and that Oyu Tolgoi will stand tall with established giants
like Grasberg and Escondida in the pantheon of the world's greatest
mines," Mr. Friedland added.
"The tremendous increase in gold production spotlighted in this
latest plan is especially significant in light of the current
expectations for the price of gold.
"We also believe that our current, projected 59-year mine life
from the Life of Mine Sensitivity Case will prove to be very
conservative. We have a very successful record in upgrading
resources and recent discoveries have intersected additional
high-grade copper and gold mineralization in new, deep targets
identified at Oyu Tolgoi with the first field application of the
unique, Zeus induced-polarization exploration technology."
Scenario 1: Highlights of the Reserve Case
The Reserve Case sets out the likely path of development for the
initial phases of the Oyu Tolgoi group of deposits (stages 1
through 9 of the open pit on the Southern Oyu deposits and the
first lift, Lift 1, of the Hugo North Deposit's underground
block-cave mine).
-- The first lift of the planned underground block cave on the Hugo North
Deposit contains 437 million tonnes of Probable Reserve at 1.90% copper
and 0.42 grams of gold per tonne - the project's first declaration of an
underground reserve since discoveries began at Oyu Tolgoi in 2001.
-- The planned open pit on the Southern Oyu copper and gold deposits
contains a Proven and Probable Reserve of 955 million tonnes at 0.49%
copper and 0.35 grams of gold per tonne.
-- The total mineral reserve (Proven & Probable) contains 1.393 billion
tonnes at 0.93% copper and 0.37 grams of gold per tonne.
-- Total production of 25.2 billion pounds (11.5 million tonnes) of copper
and 13.1 million ounces of gold is projected from mining only the open
pit on the Southern Oyu deposits and the first lift of the underground
block cave on the Hugo North Deposit.
-- Production is expected to commence in mid-2013.
-- The ore processing plant would be expanded from an initial 36.5 million
tonnes per year to 58 million tonnes per year (100,000 to 160,000 tonnes
per day) by the end of the fifth year of operations.
-- Peak single-year production is estimated at 1.7 billion pounds (800,000
tonnes) of copper and 1.1 million ounces of gold.
-- The economic analysis projects an after-tax Net Present Value (NPV) of
US$4.536 billion at an 8% discount rate, an IRR of 16.33% and a payback
period of 6.32 years (based on $2.00/lb. copper and $850/oz. gold).
-- Based on current metal prices of $3.23/lb. copper and $1,200/oz. gold,
the NPV would be US$12.6 billion, with an IRR of 26.3% and a payback
period of 4.73 years.
Scenario 2: Highlights of the Life-of-Mine Sensitivity Case
The Life-of-Mine Sensitivity Case reflects the development
flexibility that exists with later phases of the Oyu Tolgoi group
of deposits, which currently include the Heruga Deposit, the Hugo
South Deposit and the second lift of the Hugo North Deposit. These
subsequent phases will require separate development decisions in
the future based on conditions prevailing at the time and the
accumulated experience gained from developing and operating the
initial phases of the project.
The Life-of-Mine Sensitivity Case reflects the development
flexibility that exists with respect to later phases of the Oyu
Tolgoi group of deposits (Heruga, Hugo South and the second lift of
Hugo North), which will require separate development decisions in
the future based on then prevailing conditions and the development
experience obtained from developing and operating the initial
phases of the Project. Accordingly, the Life of Mine (Sensitivity)
Case is effectively a preliminary assessment. Insofar as the
Life-of-Mine Sensitivity Case includes an economic analysis that is
based, in part, on Inferred Mineral Resources, the Life-of-Mine
Sensitivity Case does not have as high a level of certainty as the
Reserve Case. Inferred Mineral Resources are considered too
speculative geologically to have the economic considerations
applied to them that would allow them to be categorized as Mineral
Reserves, and there is no certainty that the Life-of-Mine
Sensitivity Case will be realized.
-- Oyu Tolgoi has been independently affirmed to be a world-class mineral
resource. The Life-of-Mine Sensitivity Case is intended to show the
significant, long-term potential of all classifications of the entire
mineral resource that has been identified to date at Oyu Tolgoi.
-- The Life-of-Mine Sensitivity Case would produce more than twice as much
copper and gold as projected under the shorter-term Reserve Case, which
is limited to the Southern Oyu open pit and the first lift from the Hugo
North underground mine.
-- With a mine life projected to be 59 years, Oyu Tolgoi would process an
average of 58 million tonnes of ore per year (160,000 tpd), yielding
total production of 52.5 billion pounds of copper (23.8 million tonnes)
and 26.4 million ounces of gold.
-- The projected 59-year mine life incorporates the Reserve Case's Proven
and Probable mineral reserves at the Southern Oyu open pit and the Hugo
North block-cave's Lift 1 - and also adds Inferred Resources from the
Hugo North block-cave's Lift 2 and the Hugo South and Heruga deposits.
-- Mining of all resources delivers an after-tax NPV of US$5.614 billion
(based on $2.00/lb. copper and $850/oz. gold).
-- A Real Options analysis produces an after-tax NPV of US$7.55 billion,
based on stochastic modelling with long-term prices of $2.00/lb. copper
and $850/oz. gold. (An accompanying IDP-10 presentation will be
available at www.ivanhoemines.com)
-- Based on current metal prices of $3.23/lb. copper and $1,200/oz. gold,
the NPV would be US$15.3 billion, with an IRR of 26.7% and a payback
period of 4.62 years.
The IDP-10 is based on updated Oyu Tolgoi mineral resources that
have been identified through Ivanhoe Mines' ongoing exploration.
Currently identified Oyu Tolgoi resources include:
-- 1.4 billion tonnes classified as Measured and Indicated at an average
grade of 1.33% copper and 0.47g/t gold.
-- In addition, 2.4 billion tonnes now are classified as Inferred at an
average grade of 0.78% copper and 0.33g/t gold - an increase of 10% over
the resource reported in March 2008.
-- The Measured and Indicated resource classifications contain an estimated
40.7 billion pounds of copper and 21 million ounces of gold. The
Inferred classification contains an additional 40.6 billion pounds of
copper and 25.4 million ounces of gold.
-- Less than half of the 20-kilometre-long mineralized trend at Oyu Tolgoi
has been extensively drill-tested to date. An ongoing exploration
program using Zeus™ proprietary, induced-polarization technology has
identified numerous additional world-scale mineral exploration and
development targets. Drilling continues to be directed at expanding the
project's resources and reserves.
Production and Financial Results
----------------------------------------------------------------------------
Life of Mine
Description Reserve Case (Sensitivity) Case
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Mineral Reserve plus
Inventory Mineral Reserve Inferred Resources
----------------------------------------------------------------------------
Peak Production Rate 58 mt/a 58 mt/a
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160,000 tpd 160,000 tpd
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Total processed 1 393 million tonnes 3 019 million tonnes
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NSR US$32.57/t US$32.37/t
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Copper grade 0.93% 0.89%
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Gold grade 0.37g/t 0.34g/t
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Copper recovered 25.2 billion lb. 52.6 billion lb.
----------------------------------------------------------------------------
Gold recovered 13.1 million oz. 26.2 million oz.
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Mine life 27 years 59 years
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Initial Capital - (100,000 tpd
concentrator - Southern Oyu
Open Pit) US$3.5 billion US$3.5 billion
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Pre-production underground
capital US$1.1 billion US$1.1 billion
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Total project cash requirement US$4.6 Billion US$4.6 billion
----------------------------------------------------------------------------
10-year cash cost (net of gold
credits) 0.45 cents/lb. 0.44 cents/lb.
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NPV (8%) After Tax US$4 536m US$5 614m
----------------------------------------------------------------------------
IRR after tax 16.33% 16.73%
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Payback period 6.32 years 6.22 years
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The Life-of-Mine Sensitivity Case includes an economic analysis
that is based, in part, on Inferred Resources that do not have as
high a level of certainty as the Reserve Case. Inferred mineral
resources are considered too speculative geologically to have the
economic considerations applied to them that would allow them to be
categorized as mineral reserves, and there is no certainty that the
Life-of-Mine Sensitivity will be realized.
Metal Price Sensitivities (project Net Present Value at 8% discount; US$M)
----------------------------------------------------------------------------
Metal Price Sensitivity - Reserve Case
----------------------------------------------------------------------------
After-tax values Gold price/oz
----------------------------------------------------------------------------
$850 $1,200
Copper price/lb $750 (Base) $1,000 (Current) $1,500 $1,750 $2,000
----------------------------------------------------------------------------
$1.50 1,346 1,680 2,173 2,824 3,784 4,580 5,377
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$2.00 (Base) 4,218 4,536 5,011 5,648 6,602 7,391 8,188
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$2.50 7,035 7,353 7,826 8,460 9,416 10,210 11,000
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$3.23 (Current) 11,145 11,464 11,937 12,569 13,516 14,309 15,100
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$3.50 12,663 12,979 13,452 14,084 15,037 15,827 16,617
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$4.00 15,469 15,788 16,265 16,899 17,847 18,638 19,428
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$5.00 21,097 21,413 21,887 22,520 23,464 24,250 25,039
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$6.00 26,715 27,029 27,502 28,134 29,083 29,870 30,654
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Metal Price Sensitivity - Life-of-Mine Sensitivity Case
----------------------------------------------------------------------------
After-tax values Gold price/oz
----------------------------------------------------------------------------
$850 $1,200
Copper price/lb $750 (Base) $1,000 (Current) $1,500 $1,750 $2,000
----------------------------------------------------------------------------
$1.50 1,777 2,137 2,671 3,377 4,412 5,269 6,126
----------------------------------------------------------------------------
$2.00 (Base) 5,268 5,614 6,127 6,815 7,840 8,698 9,559
----------------------------------------------------------------------------
$2.50 8,703 9,043 9,556 10,244 11,277 12,131 12,986
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$3.23 (Current) 13,715 14,056 14,568 15,253 16,287 17,143 17,999
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$3.50 15,563 15,905 16,422 17,111 18,140 18,996 19,852
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$4.00 19,002 19,346 19,859 20,544 21,571 22,427 23,285
----------------------------------------------------------------------------
$5.00 25,865 26,208 26,725 27,412 28,442 29,300 30,155
----------------------------------------------------------------------------
$6.00 32,740 33,083 33,597 34,280 35,305 36,158 37,014
----------------------------------------------------------------------------
Resources continuing to increase at Oyu Tolgoi
The IDP-10 is based on updated Reserve and Resource estimates
filed on March 31, 2010. Total resources for the deposits at Oyu
Tolgoi now are estimated to contain 1.4 billion tonnes at a grade
of 1.33% copper and 0.47 grams of gold per tonne in the Measured
and Indicated category. These classifications contain an estimated
40.6 billion pounds (18.4 million tonnes) of copper and 20.9
million ounces of gold - providing a total copper equivalent of
49.8 billion pounds (22.6 million tonnes).
In the Inferred category, Oyu Tolgoi now is estimated to contain
an additional 2.4 billion tonnes at a grade of 0.78% copper and
0.33 grams of gold per tonne. This Inferred Resource contains:
-- an estimated 40.6 billion pounds (18.4 million tonnes) of copper, an
increase of 2.4 billion pounds (1.1 million tonnes), or 6.2%, since
March 2008;
-- 25.3 million ounces of gold, an increase of 1.1 million ounces, or 4.8%,
since March 2008; and
-- a copper equivalent of 53.2 billion pounds (24.1 million tonnes), an
increase of 3.2 billion pounds (1.5 million tonnes), or 6.4%, since
March 2008.
Significantly, the revised estimate of mineral reserves adds
underground reserves of 437 million tonnes. The revised estimate
also extends the reserves in the proposed open-pit mine to 955
million tonnes, an increase of 2.6% since February 2006.
Total Oyu Tolgoi Project Mineral Resources based on the March 31, 2010(1)(2)
Technical Report
(based on a 0.60% copper equivalent (CuEq) cut-off)
----------------------------------------------------------------------
Resource Category Tonnes Cu (%) Au (g/t) Mo (ppm)
----------------------------------------------------------------------
Measured 101,590,000 0.64 1.10 -
----------------------------------------------------------------------
Indicated 1,285,840,000 1.38 0.42 -
----------------------------------------------------------------------
Measured + Indicated 1,387,430,000 1.33 0.47 -
----------------------------------------------------------------------
Inferred 2,367,130,000 0.78 0.33 50
----------------------------------------------------------------------
--------------------------------------------------------------------------
Contained Metal(4)
-------------------------------------------
CuEq(3)('000
Resource Category CuEq(3) (%) Cu ('000 lbs) Au (ounces) lbs)
--------------------------------------------------------------------------
Measured 1.34 1,430,000 3,590,000 3,000,000
--------------------------------------------------------------------------
Indicated 1.65 39,120,000 17,360,000 46,770,000
--------------------------------------------------------------------------
Measured + Indicated 1.63 40,680,000 20,970,000 49,860,000
--------------------------------------------------------------------------
Inferred 1.02 40,610,000 25,390,000 53,280,000
--------------------------------------------------------------------------
Notes:
(1) Resource classifications conform to CIM Standards on Mineral Resources
and Reserves referred to in National Instrument 43-101. Mineral
Resources that are not Reserves do not have demonstrated economic
viability. Measured and Indicated Resources are that part of a mineral
resource for which quantity and grade can be estimated with a level of
confidence sufficient to allow the application of technical and
economic parameters to support mine planning and evaluation of the
economic viability of the project. An Inferred Resource is that part
of a mineral resource for which quantity and grade can be estimated on
the basis of geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade continuity.
(2) This table includes estimated resources on the Hugo North Extension
Deposit and the Heruga Deposit. These deposits are located on mineral
licences owned by Entree but subject to the Entree Joint Venture.
These resources consist of indicated resources of 117,000,000 tonnes
grading 1.8% copper and 0.61 g/t gold and Inferred Resources of
910,000,000 tonnes grading 0.48% copper and 0.49 g/t gold and a 141ppm
molybdenum at a 0.6% cut-off grade on the combined Hugo North
Extension and Heruga Deposits.
(3) CuEq has been calculated using assumed metal prices ($1.35/lb. for
copper and $650/oz for gold and $10/lb for molybdenum); %CuEq. =
Cu+((Au(i)18.98)+(Mo(i)0.01586))/29.76. Mo grades outside of Heruga
are assumed to be zero for CuEq calculations. The equivalence formula
was calculated assuming that gold and molybdenum recovery was 91% and
copper recovery was 72%.
(4) The contained gold and copper represent estimated contained metal in
the ground and have not been adjusted for the metallurgical recoveries
of gold and copper. Differences in measured and indicated totals
relate to rounding associated with tonnes and grade.
The estimates were based on 3-D block models utilizing
commercial mine planning software (MineSite®). Industry-accepted
methods were used to create interpolation domains; these domains
were based upon mineralization and geology. Grade estimation was
performed by ordinary kriging. A separate resource model was
prepared for each of the deposits. Only hypogene mineralization was
estimated, with the exception of a zone of supergene mineralization
at Central Oyu. The estimation plans, or sets of parameters used
for estimating blocks, were designed using a philosophy of
restricting the number of samples for local estimation, as it was
found to be an effective method of reducing smoothing and producing
estimates that match the Discrete Gaussian change-of-support model
and ultimately the actual recovered grade-tonnage
distributions.
Modelling consisted of grade interpolation by ordinary kriging.
Only capped grades were interpolated in the Southern Oyu and Hugo
South deposits. Nearest neighbour grades were interpolated for
validation purposes. For copper and gold, on all deposits except
Hugo South, an outlier restriction was used to control the effect
of high-grade composites. In the Southern Oyu deposits, resource
grades also were adjusted to reflect likely occurrences of internal
and contact dilution from unmineralized post-mineral dykes.
Validation procedures included Discrete Gaussian change-of-support
method, comparisons using a nearest neighbour model and visual
checks.
The base case copper-equivalent cut-off grade assumptions for
each deposit were determined using cut-off grades applicable to
mining operations exploiting similar deposits.
Common start-up plan creates base for two development
scenarios
As studied in the IDP-10, both the Reserve Case and the
alternative Life-of-Mine Sensitivity Case share the same underlying
plan for the construction and operation of an initial concentrator
facility that would process 100,000 tonnes of ore per day (36.5
million tonnes per year). By the end of the fifth year of
operation, the concentrator would be expanded to a capacity of
160,000 tonnes per day (58 million tonnes per year).
Under the common start-up plan, ore initially would be sourced
from the open-pit mine on the Southern Oyu deposits while the
adjacent, higher-grade underground mine on the Hugo Dummett Deposit
is developed toward full production of 85,000 tonnes per day. The
expansion would be timed to provide for the processing of ore to be
mined from underground, as well as the open pit, when operations
reach full capacity. The initial infrastructure to be constructed
to support the mining also is common to both cases.
All the Proven and Probable ore included in the Reserve Case
would be from mineral resources classified as Measured and
Indicated, which would be mined from the open pit on the Southern
Oyu deposits and the first lift of the underground block cave on
the Hugo North Deposit.
Expanding on the Reserve Case, the Life-of-Mine Sensitivity Case
is based on the addition of Inferred Resources from the proposed
second lift of the Hugo North block cave, as well as Inferred
Resources from additional block caves at the Hugo South and Heruga
deposits. This expanded development plan would create a much larger
resource base for mining. The study of this case shows the possible
development plan for all of the currently identified future mining
areas at Oyu Tolgoi and the significant, long-life potential of the
entire mineral resource at Oyu Tolgoi.
"Although our focus is on the design, construction and
commissioning of Oyu Tolgoi in line with the Reserve Case, the
Life-of-Mine Sensitivity Case represents the ultimate realization
of the inherent value of Oyu Tolgoi's resources," Mr. Macken
said.
The economic analysis of the Reserve and Life-of-Mine cases used
a price assumption of US$2.00/lb. for copper and US$850/oz. for
gold at a discount rate of 8%. The basis of the operational
framework of the mine used in the analysis is current Mongolian
legislation and also the terms of the October 2009 Investment
Agreement between Ivanhoe Mines, its strategic partner, Rio Tinto,
and the Government of Mongolia.
Additional features of the IDP-10
-- Mining of the open pit on the Southern Oyu deposits and the first lift
of the underground block cave on the Hugo North Deposit is confirmed as
the foundation for long-term development plans.
-- Total cash costs are estimated at US$0.45 per pound of payable copper
produced, after gold credits, over the first 10 years (using a gold
price of US$850/oz.). Total cash costs are conservatively defined to
include minesite costs and all treatment, refining, transport and
royalty costs arising from product sales.
-- Cash costs for the Life-of-Mine Sensitivity Case, after gold credits,
will be $0.73/lb.
-- The initial capital cost required to achieve first production from the
open-pit mine on the Southern Oyu deposits is forecast at US$4.6
billion. This amount includes $1.1 billion to be spent advancing
underground development at the Hugo North Deposit in preparation for the
start of block-cave mining.
-- Alternative production options indicate that flexibility with mine
development could further enhance value and possibly support additional
production expansions to 265,000 tonnes per day - which would make
production at the Oyu Tolgoi complex among the largest in the global
mining industry. Economic analysis for these scenarios has not been
undertaken and thus the feasibility is uncertain.
Summary of key results of the 2010 IDP
Economic results have been generated using metal prices of
US$2.00/lb. copper and US$850/oz. gold. Under these assumptions,
capital expansion programs would be funded from mine
operations.
Detailed baseline capital estimates originally were prepared for
plant and infrastructure in Q4 2007. These estimates have been
trended for the IDP-10 up to December 2009, with reference to scope
changes and to changes in the underlying escalation indices in the
United States, Mongolia and China.
No provision has been made for escalation during construction.
All other anticipated pre production cash costs of Oyu Tolgoi LLC
have been classified as capital for the purposes of IDP10,
including the prepayment of taxes to the Government of Mongolia
required under the terms of the Investment Agreement.
Capital and project-schedule assumptions will continue to be
updated during initial construction activities as project financing
discussions progress.
International team of industry experts helped produce IDP-10
The preparation of the IDP-10 was led by AMEC Minproc, of
Adelaide, Australia, with supporting input from the following
prominent international engineering consultants and professional
services advisory firms:
-- Quantitative Geoscience Pty. Ltd. (Quantitative Group), Perth,
Australia.
-- Stantec Engineering (formerly McIntosh), Tempe, Arizona, USA.
-- Rio Tinto Technology and Innovation, Melbourne, Australia.
-- Golder Associates, Vancouver, Canada.
-- SRK Consulting, Vancouver, Canada.
-- Ernst & Young LLP, Toronto, Canada.
-- Fluor Corporation, Irving, Texas, USA.
-- AMEC Americas Limited, Vancouver, Canada.
-- SGS Lakefield Research Limited, Lakefield, Canada.
-- MinnovEx Technologies Inc., Toronto, Canada.
-- Klohn Crippen Berger Inc., Vancouver, Canada.
-- Knight Piesold Pty. Limited, Perth, Australia.
-- Aquaterra Consulting Pty. Ltd., Perth, Australia.
-- Eco-Trade Co. Ltd., Ulaanbaatar, Mongolia.
-- The Mongolian Academy of Sciences' Institute of Archaeology,
Ulaanbaatar, Mongolia.
-- Sustainability Pty. Ltd., Perth, Australia.
-- Teshmont LP Consultants, Winnipeg, Canada.
-- AMMTEC Pty. Limited, Perth, Australia.
Next steps in the development of Oyu Tolgoi
On October 6, 2009, Ivanhoe Mines, Rio Tinto and the Government
of Mongolia signed a long-term Investment Agreement for the
construction and operation of the Oyu Tolgoi Mine. The Investment
Agreement established terms for bringing the Government of Mongolia
into the project as a 34% shareholder and also established the
long-term, stable, fiscal and legal environment that Ivanhoe Mines
and Rio Tinto required before committing to the construction and
production phases of the project's development.
In late 2009, the joint Ivanhoe Mines-Rio Tinto Oyu Tolgoi
Technical Committee conditionally approved a $758 million budget
for 2010 to begin full-scale construction of Oyu Tolgoi. The budget
for 2010 contains Ivanhoe Mines' repurchase from Rio Tinto of major
items of mining and milling equipment completed in March 2010 at a
value of $195.4 million. The equipment includes principal
components for the 100,000-tonne-per-day Oyu Tolgoi phase-one
copper-gold concentrator, including two large, 38-foot-diameter,
semi-autogenous grinding (SAG) mills, four ball mills, re-grind
mills, crushers, motors, gearless drives, conveyors and flotation
cells. Also included is the hoist and major components for the
sinking of Shaft #2 - the 10-metre-diameter, main production shaft
for the underground block-cave mine at the Hugo North Deposit.
The 2010 budget provides for an early start on a site-wide
development program.
Work in 2010 is planned to include:
-- Resumption of the sinking of the 10-metre-diameter Shaft #2, which will
be used to hoist ore to the surface from the deep, underground, copper-
gold-rich Hugo Dummett Deposit.
-- A start on construction of a 97-metre-tall (approximately 31-storey),
reinforced-concrete headframe for Shaft #2.
-- Pouring the concrete foundation for the 100,000-tonne-per-day
concentrator and deliveries of building materials for the concentrator
and infrastructure.
-- Installation of a 20-megawatt power station and 35-kilovolt distribution
system.
-- Initial earthworks for the open-pit mine at the Southern Oyu deposits.
-- Continuation of lateral underground development off Shaft #1 at the Hugo
Dummett Deposit.
-- A start on construction of a 105-kilometre highway link to the Mongolia-
China border, which will be fully paved by the time production begins.
-- A start on construction of a regional airport, with a concrete runway to
accommodate Boeing 737-sized aircraft.
Ivanhoe Mines advancing project financing plan
Ivanhoe Mines is advancing its financing plan for the project.
Ivanhoe's consolidated cash position at March 31, 2010 was
approximately US$1.32 billion, of which US$590 million is solely
available for use by Ivanhoe Mines. This amount, combined with the
future proceeds from the expected exercise by Rio Tinto of its
Ivanhoe warrants valued at a total of approximately US$1.2 billion,
will provide the foundation for the funding of the Oyu Tolgoi
Project.
In January 2010, Ivanhoe Mines appointed New York-based leading
global investment banking firm Citi and independent mining-sector
specialist Hatch Corporate Finance, of London, England, to evaluate
and advise the company on a range of strategic options to further
enhance shareholder value.
Citi and Hatch are assisting Ivanhoe's management to evaluate a
range of options that include, but are not limited to, potential
debt/equity offerings, a credit facility, the sale of subsidiaries,
equity investments, project financing and/or various corporate
transactions.
Citi specializes in providing tailored, strategic advisory
services on M&A transactions and capital-raising activities,
including mergers, acquisitions, divestitures, financial
restructurings, underwriting and distributing equity, debt and
derivative securities. Hatch Corporate Finance, a leading,
independent corporate finance adviser focused exclusively on the
global metals and mining sectors, specializes in providing tailored
advice in M&A transactions (acquisitions, divestitures, mergers
and joint ventures), capital markets activities and debt advisory
services.
Commitment to sustainable communities and best-practice
environmental management
Oyu Tolgoi seeks to work in partnership with communities and
leaders to ensure that demonstrable sustainable benefits from the
Oyu Tolgoi business reach Mongolians in the South Gobi region and
nationally. These partnerships are driven by strategies and plans
that align the development aspirations of the Mongolian government
and the people of Mongolia with Oyu Tolgoi's business objectives.
At the heart of these partnerships are enduring relationships with
Mongolian communities, government, civil society and like-minded
international stakeholders based on trust, openness and the joint
pursuit of mutual interests.
Sound environmental practices are key to sustainable
communities. Oyu Tolgoi is complying with internationally accepted
standards and policies regarding environmental performance and the
management of socio-economic effects on communities, as described
in Ivanhoe Mines' Statement of Values and Responsibilities. The
Values Statement declares Ivanhoe's support of the United Nations
Universal Declaration of Human Rights, commitment to best
environmental practices, respect for cultural diversity, support of
local businesses, creation of opportunities for skills acquisition
and assurance of safe and healthy working conditions.
Present status of work at Oyu Tolgoi
Shaft No. 1 has been completed to a depth of 1,385-metres and is
supporting the initial development program underway for the Hugo
North underground mine. The underground lateral development
currently covers a total of approximately 1,700 metres and
development rates are exceeding initial estimates. In addition,
surface works for the construction of Shaft No. 2 have been
completed.
Site earthworks have been undertaken in preparation for the
laying of the concentrator foundation. An initial 1,800-person
construction camp has been built and the construction warehousing
facility was completed in early 2010.
By March 2010, engineering for the copper concentrator facility
was 75% complete and engineering for the required infrastructure
was 50% complete.
Key management for construction and operations has been engaged
and is in place in Mongolia in preparation for the start of
full-scale construction.
Oyu Tolgoi Project resources
In 2001, Ivanhoe Mines discovered the copper-gold porphyry
potential in South Oyu, Southwest Oyu and Central Oyu - now known
as the Southern Oyu deposits. In late 2002, Ivanhoe drilled a hole
in the far northern portion of the property, now known as the Hugo
Dummett Deposit, to test a broad, induced-polarization high. More
than 800,000 metres of drilling now have been completed at Oyu
Tolgoi, including related exploration on the adjoining
joint-venture licences with Entree Gold.
In November 2009, Ivanhoe announced the completion of an initial
five-month field survey of the 12-kilometre-long chain of deposits
at Oyu Tolgoi utilizing the proprietary Zeus induced-polarization
technology. The survey results have helped better define the
spatial extent of the known ore bodies and revealed potential
mineralization at depths of up to 3,500 metres. Based on these
results, Ivanhoe has begun a new exploration program to drill
previously unexplored areas around the deposits on strike and at
depth. Details of the Zeus exploration are contained in a news
release and accompanying investor presentation issued by Ivanhoe
Mines on November 17, 2009
(http://www.ivanhoemines.com/i/pdf/Zeus-update-Nov-18-09.pdf).
Please visit the following link to view a Zeus Induced
Polarization image of the Oyu Tolgoi chain of deposits, set to
scale over Manahattan Island, NY:
http://media3.marketwire.com/docs/OyuTolgoi%20.jpg
Measured and Indicated resources at Oyu Tolgoi now total
approximately 1.4 billion tonnes at an average grade of 1.33%
copper and 0.47g/t gold, plus an additional 2.4 billion tonnes of
Inferred Resources at an average grade of 0.78% copper and 0.33g/t
gold. The estimated mineral reserves, a sub-set of the resources,
total 1.39 billion tonnes.
----------------------------------------------------------------------------
Oyu Tolgoi mineral resource summary based on the March 31, 2010 Technical
Report
----------------------------------------------------------------------------
Copper
Deposit Tonnage (t) Copper (%) Gold (g/t) Equiv. (%)
----------------------------------------------------------------------------
Southern Oyu Deposits
----------------------------------------------------------------------------
Measured 101 590 000 0.64 1.10 1.34
Indicated 465 640 000 0.62 0.43 0.89
Measured + Indicated 567 230 000 0.62 0.55 0.97
Inferred 88 500 000 0.47 0.41 0.73
----------------------------------------------------------------------------
Hugo Dummett Deposits
----------------------------------------------------------------------------
Indicated (Hugo North -
Ivanhoe) 703 200 000 1.82 0.39 2.07
----------------------------------------------------------------------------
Indicated Shivee Tolgoi
(Hugo North -EJV) 117 000 000 1.80 0.61 2.19
----------------------------------------------------------------------------
Indicated (All Hugo
North) 820 200 000 1.82 0.42 2.08
----------------------------------------------------------------------------
Inferred (Hugo North -
Ivanhoe) 722 800 000 0.97 0.30 1.17
----------------------------------------------------------------------------
Inferred Shivee Tolgoi
(Hugo North -EJV) 95 500 000 1.15 0.31 1.35
----------------------------------------------------------------------------
Inferred (All Hugo
North) 818 300 000 1.00 0.30 1.19
----------------------------------------------------------------------------
Inferred (Hugo South) 490 330 000 1.05 0.09 1.11
----------------------------------------------------------------------------
Inferred (Hugo North and
South) 1 308 630 000 1.02 0.22 1.16
----------------------------------------------------------------------------
Heruga Deposit
----------------------------------------------------------------------------
Heruga Javkhlant EJV 910 000 000 0.48 0.49 0.87
----------------------------------------------------------------------------
Heruga Ivanhoe 60 000 000 0.48 0.37 0.78
----------------------------------------------------------------------------
Inferred (All Heruga) 970 000 000 0.48 0.48 0.86
----------------------------------------------------------------------------
Oyu Tolgoi Project Grand Total
----------------------------------------------------------------------------
Measured 101 590 000 0.64 1.10 1.34
----------------------------------------------------------------------------
Indicated 1 285 840 000 1.38 0.42 1.65
----------------------------------------------------------------------------
Measured + Indicated 1 387 430 000 1.33 0.47 1.63
----------------------------------------------------------------------------
Inferred 2 367 130 000 0.78 0.33 1.02
----------------------------------------------------------------------------
------------------------------------------------------------------------
Oyu Tolgoi mineral resource summary based on the March 31, 2010
Technical Report
------------------------------------------------------------------------
Contained Metal
------------------------------------------------
Copper Equiv.
Deposit Copper (000 lb) Gold (oz) (000 lb)
------------------------------------------------------------------------
Southern Oyu Deposits
------------------------------------------------------------------------
Measured 1 430 000 3 590 000 3 000 000
Indicated 6 360 000 6 440 000 9 140 000
Measured + Indicated 7 750 000 10 030 000 12 130 000
Inferred 920 000 1 170 000 1 420 000
------------------------------------------------------------------------
Hugo Dummett Deposits
------------------------------------------------------------------------
Indicated (Hugo North -
Ivanhoe) 28 220 000 8 820 000 32 090 000
------------------------------------------------------------------------
Indicated Shivee Tolgoi
(Hugo North -EJV) 4 640 000 2 290 000 5 650 000
------------------------------------------------------------------------
Indicated (All Hugo
North) 32 910 000 11 080 000 37 610 000
------------------------------------------------------------------------
Inferred (Hugo North -
Ivanhoe) 15 460 000 6 970 000 18 640 000
------------------------------------------------------------------------
Inferred Shivee Tolgoi
(Hugo North -EJV) 2 420 000 950 000 2 840 000
------------------------------------------------------------------------
Inferred (All Hugo
North) 18 040 000 7 890 000 21 470 000
------------------------------------------------------------------------
Inferred (Hugo South) 11 350 000 1 420 000 12 000 000
------------------------------------------------------------------------
Inferred (Hugo North and
South) 29 430 000 9 260 000 33 470 000
------------------------------------------------------------------------
Heruga Deposit
------------------------------------------------------------------------
Heruga Javkhlant EJV 9 570 000 14 300 000 17 390 000
------------------------------------------------------------------------
Heruga Ivanhoe 670 000 700 000 1 090 000
------------------------------------------------------------------------
Inferred (All Heruga) 10 240 000 15 000 000 18 480 000
------------------------------------------------------------------------
Oyu Tolgoi Project Grand Total
------------------------------------------------------------------------
Measured 1 430 000 3 590 000 3 000 000
------------------------------------------------------------------------
Indicated 39 120 000 17 360 000 46 770 000
------------------------------------------------------------------------
Measured + Indicated 40 680 000 20 970 000 49 860 000
------------------------------------------------------------------------
Inferred 40 610 000 25 390 000 53 280 000
------------------------------------------------------------------------
Notes:
1. The contained gold and copper estimates in the tables have not been
adjusted for metallurgical recoveries.
2. The 0.6% CuEq cut-off has been used to enable comparison with previous
disclosures.
3. The mineral reserves are not additive to the mineral resources.
4. CuEq was calculated using the following formula: CuEq = %Cu + (g/t
Au(i)11.25)/17.64.
5. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
6. EJV is the Entree Gold Joint Venture. Ivanhoe Mines' rights in the
Shivee Tolgoi and Javkhlant mining licences are included in the
Contract Area covered by the Oyu Tolgoi Investment Agreement.
Activities in the Contract Area will be the responsibility of Oyu
Tolgoi LLC, which will receive 70-80% of cash flows from the EJV
licences after capital and operating costs.
----------------------------------------------------------------------------
Total Oyu Tolgoi Project Mineral Reserve, May 2010
----------------------------------------------------------------------------
Recovered Metal
----------------
NSR Copper Gold
Deposit Ore (Mt) ($/t) Cu (%) Au (g/t) (Mlb) (koz)
----------------------------------------------------------------------------
Southern Oyu Deposits
---------------------------
Proven 127 21.38 0.58 0.93 1 399 2 994
Probable 828 10.81 0.48 0.27 6 980 5 229
----------------------------------------------------------------------------
Mineral Reserve (Proven +
Probable) 955 12.21 0.49 0.35 8 380 8 223
Hugo Dummett Deposits
---------------------------
Probable (Hugo North -
Ivanhoe) 410 51.12 1.90 0.40 15 823 4 368
Probable (Hugo North - EJV
Shivee Tolgoi) 27 55.57 1.85 0.72 1 032 531
----------------------------------------------------------------------------
Mineral Reserve (Probable)
(All Hugo North) 437 51.40 1.90 0.42 16 855 4 899
----------------------------------------------------------------------------
Oyu Tolgoi Project Mineral
Reserve
---------------------------
Proven 127 21.38 0.58 0.93 1 399 2 994
Probable 1 266 24.84 0.97 0.32 23 835 10 127
----------------------------------------------------------------------------
Mineral Reserve (Proven +
Probable) 1 393 24.52 0.93 0.37 25 234 13 121
----------------------------------------------------------------------------
Notes:
1. Metal prices used for calculating the Southern Oyu Open Pit NSR are
copper $1.30/lb., gold $500/oz., and silver $9.50/oz., based on long-
term metal price forecasts at the beginning of the mineral reserve
work. The analysis indicates that the reserve is still valid at these
metal prices.
2. Metal prices used for calculating the Hugo North Underground NSR are
copper $1.50/lb., gold $640/oz. and silver $10.50/oz., based on long-
term metal price forecasts at the beginning of the mineral reserve
work. The analysis indicates that the reserve is still valid at these
metal prices.
3. The base case financial analysis has been prepared using current long
term metal price estimates of copper $2.00/lb., gold $850/oz. and
silver $13.50/oz.
4. For the open pit, the processing and general administration operating
costs that have been used to determine cut-off grades are: Southwest
and Central Chalcopyrite $3.88/t, Central Chalcocite and Central
Covellite $3.41/t.
5. The NSR has been calculated with assumptions for smelter refining and
treatment charges, deductions and payment terms, concentrate
transport, metallurgical recoveries and royalties.
6. For the underground block cave, all material within the shell has been
converted to mineral reserve. This includes inferred material with
zero grade that has been treated as dilution.
7. Only measured resources were used to report proven reserves and only
indicated resources were used to report probable reserves.
8. EJV is the Entree Gold Joint Venture. Ivanhoe Mines' rights in the
Shivee Tolgoi and Javkhlant mining licences are included in the
Contract Area covered by the Oyu Tolgoi Investment Agreement.
Activities in the Contract Area will be the responsibility of Oyu
Tolgoi LLC, which will receive 70-80% of cash flows from the EJV
licences after capital and operating costs.
9. The mineral reserves are not additive to the mineral resources.
43-101F1 Technical Report
The IDP-10 is a technical report compliant with Canada's
43-101F1 reporting standards. Details surrounding the key
assumptions, parameters and methods used to estimate the mineral
resources and reserves surrounding the resource and reserve
estimate, as well as information relating to the QPs' data
verification procedures, are found in the 43-101F1 Technical Report
for the Oyu Tolgoi Project, a copy of which will be filed on SEDAR
within 45 days and available at www.sedar.com and on Ivanhoe's
website at www.ivanhoemines.com.
Details of Conference Call to discuss IDP-10
Ivanhoe Mines will host a telephone conference call and webcast
on Tuesday, May 11, at 5 p.m. Eastern Time (2 p.m. Pacific Time) to
discuss the new Integrated Development Plan. A portion of the
conference call will follow a series of presentation slides
containing details of the development plan, which will be posted on
the Ivanhoe Mines home page at www.ivanhoemines.com and available
ahead of the conference call.
The conference call may be accessed by dialling 1-877-240-9772
in Canada and the United States, or 1-416-340-8527 in the Toronto
area and internationally. An operator will register participants. A
simultaneous webcast of the conference call will be provided
through www.ivanhoemines.com. The conference call will be archived
for later playback until May 25 and may be accessed by dialling
1-800-408-3053 or 1-416-695-5800 and entering the pass code
1833536.
Ivanhoe shares are listed on the Toronto, New York and NASDAQ
stock exchanges under the symbol IVN.
Preparation of IDP and Qualified Persons
The IDP-10 was prepared under the supervision of AMEC Minproc
Limited. Bernard Peters, as Oyu Tolgoi Study Director for AMEC
Minproc Limited and Qualified Person as defined in National
Instrument 43-101, has reviewed, verified and approved the
technical contents of this news release.
The Qualified Persons and their areas of responsibility in
relation to this news release are:
-- Bernard Peters, B.Eng. (Mining), M. AusIMM (201743), employed by AMEC
Minproc Limited as Principal Mining Consultant, was responsible for the
overall preparation of the report and, in particular, the open-pit
mineral reserve estimate of the Technical Report.
-- Scott Jackson, B.Sc. (Hons), CFSG, M. AusIMM (201735), employed by
Quantitative Geoscience Pty. Ltd. (trading as "Quantitative Group" and
"QG") as Principal Consultant, was responsible for preparation of the
Mineral Resources.
-- John Vann, B.App.Sc., B.Sc. (Hons), M.Sc., F.Aus.I.M.M. (103352),
F.A.I.G., M.S.E.G, employed by Quantitative Geoscience Pty. Ltd.
(trading as "Quantitative Group" and "QG") as Principal Consultant, was
responsible for preparation of the Mineral Resources.
-- Albert Chance, B.App.Sc., Association of Professional Engineers of the
Province of British Columbia (no. 16370), an employee of Golder
Associates Ltd., was responsible for preparation of the subsection on
Open Pit Mine Geotechnical.
-- George R Stephan, E.M. (Engineer of Mines), MBA, Qualified Professional
Member Mining and Metallurgical Society of America an employee of
Stantec Mining (formerly McIntosh Engineering), was responsible for the
underground mineral reserve estimate of the Technical Report.
-- Jarek Jakubec, C.Eng., an employee of SRK Consulting Inc., was
responsible for preparation of the subsection on Underground Mine
Geotechnical Sections.
-- Dean David, B.App.Sc. (Metallurgy), AusIMM.(102351), employed by AMEC
Minproc Limited as Process Consultant, was responsible for preparation
of the Processing Sections.
-- Bruce Brown, PE.PhD., employed by Rio Tinto Technology and Innovation as
Principal Advisor - Water, Waste and Tailings, was responsible for
preparation of the Tailings Storage Facility Sections.
Quality Assurance and Quality Control
John Vann, Principal and Director, and Scott Jackson, Principal
and Director of Quantitative Group, of Perth, Australia, performed
an independent audit at the Oyu Tolgoi site on Ivanhoe's
exploration practices and resource estimation parameters and found
them to be in line with industry best practices.
SGS Mongolia LLC prepares the split core at the project site and
assays all samples at its facility in Ulaanbaatar, Mongolia.
Ivanhoe's QA/QC program is monitored by independent consultant Dr.
Barry Smee, P.Geo., and managed on site by Dale Sketchley, M.Sc.,
P.Geo. In-house, matrix-matched copper-gold-molybdenum standards
and blanks are inserted at the sample preparation lab on the
project site to monitor the quality control of the assay data.
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, Oyu
Tolgoi becoming one of the World's largest copper and gold
producers; timing for first production; expansion of processing
plant from 36.5 mtpy to 58 mtpy by the sixth year; expected payback
period of capital; mine life under the reserve and Life-of-Mine
(Sensitivity) Case and the anticipated yearly production, including
average annual production; peak single year production; the ability
of the mine development to support an expansion to 265,000 tonnes
per day; anticipated production and financial results; launching
the Oyu Tolgoi Training and Development Strategy; Rio Tinto's
exercise of its Ivanhoe Warrants; the ability to fund the remaining
funding requirements for the project through debt; statements
respecting anticipated business activities; planned expenditures;
corporate strategies; proposed acquisitions and dispositions of
assets; discussions with third parties respecting material
agreements; the expected timing and outcome of the fulfillment of
conditions precedent for an Investment Agreement in respect of the
Oyu Tolgoi Project; the timing of commencement of full construction
of the Oyu Tolgoi Project; the estimated timing and cost of
bringing the Oyu Tolgoi Project into commercial production;
anticipated future production and cash flows; target milling rates;
the ability of the partners to arrange financing for construction
of the Oyu Tolgoi Project; the impact of amendments to the laws of
Mongolia and other countries in which IVN carries on business; the
potential of plans to make non-core projects self-funding; and
other statements that are not historical facts.
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 filed on Sedar. The reader is cautioned not to place undue
reliance on forward-looking information or statements.
The release also contains references to estimates of mineral
reserves and mineral resources. The estimation of reserves and
resources is inherently uncertain and involves subjective judgments
about many relevant factors. The accuracy of any such estimates is
a function of the quantity and quality of available data, and of
the assumptions made and judgments used in engineering and
geological interpretation, which may prove to be unreliable. There
can be no assurance that these estimates will be accurate or that
such mineral reserves and mineral resources can be mined or
processed profitably. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Except as
required by law, the Company does not assume the obligation to
revise or update these forward-looking statements after the date of
this document or to revise them to reflect the occurrence of future
unanticipated events.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investors
+1.604.688.5755 Ivanhoe Mines Ltd. Bob Williamson Media
+1.604.331.9830 www.ivanhoemines.com
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