Robert Friedland, Chairman of Ivanhoe Mines Ltd. (TSX: IVN)(NYSE:
IVN)(NASDAQ: IVN) and Altynalmas Gold Ltd., and David Woodall,
President and Chief Executive Officer of Altynalmas Gold, announced
today that the ongoing resource expansion and exploration drilling
program is continuing to confirm the grades and extent of
high-grade gold mineralization that was used to calculate the
former Soviet-era gold resources at Altynalmas's Kyzyl Gold Project
in northeastern Kazakhstan. Ivanhoe Mines owns 50% of Altynalmas
Gold.
Recent received assays of significant intercepts (which
approximate truth widths) of high-grade gold mineralization drilled
between October 2009 and April 2010 include:
-- 42 metres of 13.56 g/t gold in hole BAK-48-2010;
-- 37 metres of 11.95 g/t gold in hole BAK-46-2010;
-- 21 metres of 13.37 g/t gold in hole BAK-54-2010;
-- 34 metres of 12.59 g/t gold in hole BAK-58-2010; and
-- 10 metres of 15.21 g/t gold in hole BAK-62-2010.
A complete summary of recent drill results is included in the
accompanying Table 2 (and also are shown on illustrations on
Ivanhoe's website at www.ivanhoemines.com).
As of July 31, Altynalmas had completed a total of 52,563 metres
of drilling. The company is continuing its aggressive drilling
program designed to expand and upgrade the NI 43-101-compliant
resources and reserves at the Kyzyl Project, with a further 39,000
metres planned for completion in 2010.
"These new assay results were not included in the June 2010
Pre-Feasibility Study. Based on the ongoing successes that we are
experiencing in our drilling program, we expect that we will see
additional increases in the project's NI 43-101 reserves and
resources by the end of this year, which will further improve
project economics," Mr. Woodall said.
"It also is very encouraging that our drilling continues to
yield improved grades and widths of gold intercepts over Soviet-era
discoveries."
Fluor Canada retained to undertake Feasibility Study for Kyzyl
Gold Project
Mr. Woodall said that Altynalmas Gold has retained Fluor Canada
Ltd., of Vancouver, Canada, to complete a detailed Feasibility
Study as the next step in the development plan for the Kyzyl Gold
Project. The study is expected to be completed in the first quarter
of 2011.
Altynalmas is focused on building a new, state-of-the-art gold
mine designed to produce a first-stage average of 368,000 ounces of
gold per annum over a 16-year mine life. Based on current
parameters, the operation initially would treat an estimated 1.5
million tonnes of ore per year at an estimated average gold grade
of 8.53 g/t. The current metallurgical test-work programs have
achieved gold recoveries of between 86% and 90% using fluidized-bed
roasting.
In June 2010, Scott Wilson Inc., of London, England, produced an
independent National Instrument 43-101-compliant Technical Report
on the Kyzyl Gold Project that confirmed the economics of
Altynalmas Gold's development plan. Scott Wilson estimated probable
mineral reserves contained in Lenses 1 and 9-10 of the Bakyrchik
Deposit - one of several deposits comprising the Kyzyl Gold Project
- total 13.58 million tonnes, with a grade of 8.65 g/t gold,
containing 3.78 million ounces of gold, using a cut-off grade of
4.0 g/t gold and a gold price of US$900 per ounce.
In the Scott Wilson Technical Report, estimated NI 43-101
mineral resources (inclusive of reserves) total 13.82 million
tonnes at a grade of 9.36 g/t gold for indicated resources and, in
addition, 12.02 million tonnes at a grade of 8.58 g/t gold for
inferred resources.
Table 1: Bakyrchik Deposit Mineral Resources Inclusive of Reserves (as of
30/04/2010)
---------------------------------------------------------------------------
Lens Indicated Inferred
----------------------------------------------------------------------
Grade Contained Grade Contained
Tonnes (cut) Gold Tonnes (cut) Gold
('000) Au (g/t) ('000 oz) ('000) Au (g/t) ('000 oz)
---------------------------------------------------------------------------
1 11,036 9.61 3,411 6,833 8.35 1,834
---------------------------------------------------------------------------
9-10 2,640 8.32 706 653 7.89 166
---------------------------------------------------------------------------
12 142 8.68 40 4,537 9.03 1,317
---------------------------------------------------------------------------
Total 13,818 9.36 4,157 12,023 8.58 3,317
---------------------------------------------------------------------------
Notes:
1. Mineral Resources were estimated within wireframes constructed at a
nominal cut-off grade of 3.00 g/t gold, with an incremental cut-off
grade of 2.00 g/t gold where warranted.
2. A minimum true width of three metres was used to provide a minimum
mining width of four metres.
3. High gold assays were capped at 35 g/t gold. Assays were capped prior to
compositing.
4. Mineral Resources were estimated using an average long-term gold price of
US$1,000 per ounce.
5. Block sizes are 5 m x 5 m x 5 m.
6. Inverse distance squared was used to interpolate block grades.
7. Mineral Resources are reported at a block cut-off grade of 3.00 g/t gold.
8. Bulk density is 2.7 t/m3.
9. Summation errors are due to rounding.
The Technical Report's Base Case economic assessment is based
only on reserves and calculated an after-tax net present value of
US$406 million using a 5% discount rate. A Life-of-Mine Sensitivity
Case, completed to better reflect the Kyzyl Gold Project and the
size of the resource, calculated an after-tax net present value of
US$820 million, using the same economic parameters. (See Ivanhoe
Mines' June 30, 2010, news release for further details on the
Pre-Feasibility Study.)
New Altynalmas Drill Results
The assay results from new drilling in Lens 1 of the Bakyrchik
Deposit are listed below (and also shown on accompanying
illustrations). Intersection widths and grades correlate well with
the results of the earlier, Soviet-era drilling results. All the
holes intercepted significant widths of high-grade gold
mineralization, with multiple intercepts grading at or above one
ounce of gold per ton (34.3 grams per tonne).
---------------------------------------------------------------------------
Table 2 - Bakyrchik Deposit Drill Results: Lens 1, July 27, 2010
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Interval
Hole-ID Section From (m) To (m) Length (m) Au (g/t)
---------------------------------------------------------------------------
BAK-06-2009 435300E 354.0 394.0 40.0 10.96
---------------------------------------------------------------------------
incl 383.0 387.0 4.0 23.55
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-26-2010 435325 488.0 489.0 19.0 12.19
---------------------------------------------------------------------------
incl 502.0 505.0 3.0 21.95
---------------------------------------------------------------------------
and 520.0 549.0 29.0 9.10
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-29-2010 435375 390.0 413.0 23.0 7.76
---------------------------------------------------------------------------
and 459.0 463.0 4.0 14.18
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-32-2009 435375 491.0 522.0 36.0 7.07
---------------------------------------------------------------------------
and 553.0 574.0 21.0 34.71
---------------------------------------------------------------------------
incl 554.0 569.0 15.0 45.49
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-33-2010 435350E 294.0 319.0 25.0 9.70
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-34-2010 435275E 467.0 509.0 42.0 13.56
---------------------------------------------------------------------------
incl 472.0 488.0 16.0 20.77
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-35-2010 435175E 504.0 531.0 27.0 9.73
---------------------------------------------------------------------------
incl 507.0 510.0 3.0 18.70
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-37-2010 435400E 424.0 429.0 5.0 7.49
---------------------------------------------------------------------------
and 502.0 505.0 3.0 6.26
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-38-2010 435225E 404.0 416.0 12.0 15.89
---------------------------------------------------------------------------
incl 405.0 412.0 7.0 23.40
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-40-2010 435375E 530.0 565.0 35.0 17.78
---------------------------------------------------------------------------
incl 541.0 556.0 15.0 29.73
---------------------------------------------------------------------------
---------------------------------------------------------------------------
and 571.0 579.0 8.0 6.62
---------------------------------------------------------------------------
and 588.0 592.0 4.0 5.10
---------------------------------------------------------------------------
and 601.0 607.0 6.0 3.02
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-41-2010 435150E 499.0 508.0 9.0 20.42
---------------------------------------------------------------------------
incl 500.0 507.0 7.0 23.19
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-42-2010 435450E 291.0 295.0 4.0 6.35
---------------------------------------------------------------------------
and 353.0 368.0 15.0 7.23
---------------------------------------------------------------------------
BAK-43-2010 435175E 533.0 541.0 8.0 9.35
---------------------------------------------------------------------------
incl 536.0 539.0 3.0 17.03
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-45-2010 435250E 475.0 506.0 31.0 6.92
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-46-2010 435325E 351.0 388.0 37.0 11.95
---------------------------------------------------------------------------
incl 354.0 364.0 10.0 19.24
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-48-2010 435325E 459.0 508.0 49.0 10.05
---------------------------------------------------------------------------
incl 471.0 479.0 8.0 16.50
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-51-2010 435075E 510.0 517.0 7.0 7.90
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-53-2010 435625E 197.0 209.0 12.0 7.19
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-54-2010 435225E 527.0 548.0 21.0 13.37
---------------------------------------------------------------------------
incl 529.0 537.0 8.0 23.23
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-56-2010 435600E 219.0 232.0 13.0 7.62
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-57-2010 435150E 518.0 531.0 13.0 6.50
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-58-2010 435275E 491.0 525.0 34.0 12.59
---------------------------------------------------------------------------
incl 493.0 498.0 5.0 19.13
---------------------------------------------------------------------------
504.0 511.0 7.0 17.39
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-61-2010 435500E 295.0 308.0 13.0 7.27
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BAK-62-2010 435100E 485.0 495.0 10.0 15.21
---------------------------------------------------------------------------
incl 489.0 494.0 4.0 27.31
---------------------------------------------------------------------------
Notes:
1. Intersection assays are a composite of one-metre assays calculated from
interval-weighted assays over the intersection length using a 2.0 g/t Au
cut-off.
2. The included intervals are significantly higher in tenor and exceed 15.0
g/t gold within the 2.0 g/t gold cut-off intervals.
3. No high assay values have been cut.
4. Holes BAK-06-2009, BAK-26-2010, BAK-29-2010 and BAK-32-2010 are awaiting
completion of assaying.
5. Interval widths generally are equivalent to true widths.
Quality Assurance and Quality Control
Exploration core was drilled HQ size (63.5-mm-diameter core)
using western drill strings. Triple tube HQ3 (61.1-mm-diameter
core) was used for geotechnical logging within, and on the
shoulders, of the mineralized zone. Assaying of the samples was
completed at ALS Chemex, an independent ISO-credited laboratory in
Vancouver, Canada, using fire assay fusion, followed by a
gravimetric analysis procedure.
Quality assurance and quality control is independently monitored
and audited by Scott Wilson RPA with a quality-control program,
which includes the use of matrix matched assay standard reference
samples, blanks, duplicates, repeats and internal ALS Chemex
quality-assurance procedures.
Qualified Person
Disclosures of a scientific or technical nature in this release
have been reviewed by David Woodall, Chief Executive Officer of
Altynalmas Gold Ltd. and a Qualified Person as defined by National
Instrument 43-101.
About Ivanhoe Mines
Ivanhoe Mines (NYSE, NASDAQ & TSX: IVN) is an international
mining company with operations focused in the Asia Pacific region.
Assets include the company's 66% interest in the Oyu Tolgoi
copper-gold mine development project in southern Mongolia; its 57%
interest in Mongolian coal miner SouthGobi Resources (TSX: SGQ; HK:
1878); an 81% interest in Ivanhoe Australia (ASX: IVA), a
copper-gold-uranium-molybdenum-rhenium exploration and development
company; and a 50% interest in Altynalmas Gold Ltd., a private
company developing the Kyzyl Gold Project in Kazakhstan.
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 Pre-Feasibility 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.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission permits
U.S. mining companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can economically and
legally extract or produce. We use certain terms in this release
such as "measured," "indicated," and "inferred" "resources," which
the SEC guidelines generally prohibit U.S. registered companies
from including in their filings with the SEC. U.S. investors are
urged to consider closely the disclosure in our Form 40-F which may
be secured from us, or from the SEC's website at
www.sec.gov/edgar.shtml.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investor Contact
+1.604.688.5755 Ivanhoe Mines Ltd. Bob Williamson Media Contact
+1.604.331.9830 www.ivanhoemines.com
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