ULAANBAATAR, MONGOLIA (NYSE: IVN)(NASDAQ: IVN), and Charles
Forster, Ivanhoe's Senior Vice President of Exploration, Mongolia,
today announced the first resource estimate made by Ivanhoe Mines
on the Heruga copper, gold and molybdenum deposit in southern
Mongolia. The Heruga Deposit adjoins the southern boundary of
Ivanhoe Mines' Oyu Tolgoi copper and gold development project and
lies within the Javkhlant license, which is part of the Entrï¿1/2e
Gold-Ivanhoe Mines joint-venture agreement area.
The Heruga Deposit is estimated to contain an inferred resource
of 760 million tonnes grading 0.48% copper, 0.55g/t gold and 142
ppm molybdenum for a copper equivalent grade of 0.91%, using a
0.60% copper equivalent cut-off grade. Based on this initial
estimate, the Heruga Deposit is estimated to contain at least eight
billion pounds of copper and 13.4 million ounces of gold.
Using a higher cut-off grade of 1% copper equivalent, the Heruga
deposit contains inferred resources of 210 million tonnes grading
0.57% copper, 0.97g/t gold and 145 ppm molybdenum, totalling 2.6
billion pounds of copper and 6.4 million ounces of gold.
Thirty-four drill holes (including daughter holes) on nine
sections spaced at 150-to 300-metre intervals for a combined strike
length of 1,800-metres have been used in the resource estimate. The
deposit is open ended with one rig currently drilling on the
northern most section of the deposit, 150 metres south of the Oyu
Tolgoi boundary, in significant copper/gold mineralization.
The Oyu Tolgoi structural trend, as currently defined, now has a
total strike length in excess of 20 kilometres, encompassing Oyu
Tolgoi in the centre and extensions onto the joint Entree/Ivanhoe
agreement area to both the south and north. From the Heruga Deposit
in the south, the trend now extends through the Oyu Tolgoi deposits
to the Ulaan Khud or Airport North Zone, located approximately 10
kilometres north-northeast of the Hugo Dummett Deposit. The total
Oyu Tolgoi Project resources, including those contained on the
adjoining Shivee Tolgoi and Javkhlant properties, are shown in
Table 2.
"Heruga may allow for considerably more flexibility in
developing the massive Oyu Tolgoi deposits as well as a molybdenum
circuit in the mill," said Mr. Macken. "It may also provide the
basis for a significant extension, over time, to the milling
operations."
Table 1. Heruga Inferred Resources March 2008
-------------------------------------------------------------------------
Contained Metal
-------------------------------------------------------------------------
Cut-off Tonnage Cu Au Mo CuEq Cu Au CuEq
CuEq % 1000's (t) % g/t ppm % ('000 lb) (oz) ('000) ('000 lb)
-------------------------------------------------------------------------
greater
than
1.50 30,000 0.63 1.80 126 1.85 390,000 1,600 1,220,000
-------------------------------------------------------------------------
greater
than
1.25 80,000 0.59 1.39 124 1.54 970,000 3,400 2,710,000
-------------------------------------------------------------------------
greater
than
1.00 210,000 0.57 0.97 145 1.26 2,570,000 6,400 5,840,000
-------------------------------------------------------------------------
greater
than
0.90 300,000 0.55 0.84 150 1.16 3,600,000 8,000 7,700,000
-------------------------------------------------------------------------
greater
than
0.80 430,000 0.53 0.72 152 1.07 5,000,000 9,900 10,120,000
-------------------------------------------------------------------------
greater
than
0.70 590,000 0.51 0.62 148 0.98 6,590,000 11,700 12,750,000
-------------------------------------------------------------------------
greater
than
0.60 760,000 0.48 0.55 142 0.91 8,030,000 13,400 15,190,000
-------------------------------------------------------------------------
greater
than
0.50 930,000 0.45 0.50 135 0.84 9,220,000 14,900 17,270,000
-------------------------------------------------------------------------
greater
than
0.40 1,160,000 0.41 0.45 123 0.76 10,500,000 16,700 19,530,000
-------------------------------------------------------------------------
greater
than
0.30 1,420,000 0.37 0.40 111 0.69 11,670,000 18,200 21,530,000
-------------------------------------------------------------------------
(i)Copper Equivalent estimated using $1.35/lb copper, $650/oz gold and
$10/lb molybdenum. The equivalence formula was calculated assuming that
gold and molybdenum recovery was 91% and 72% of copper recovery
respectively.
Drill maps from the Heruga Deposit will be posted to Ivanhoe's'
website at www.ivanhoemines.com and to Entree's web site at
www.entreegold.com.
Discussion and Highlights of Mineral Resource Estimate and
Recent Drilling
The current inferred resource estimate is based on a wide-spaced
pattern that Ivanhoe believes has not fully delineated the higher
grade gold-rich core. This may allow for a significant increase in
gold-rich resources as infill drilling is undertaken
On the southeast side of Heruga, hole EJD0026 was drilled 400
metres east of the defined mineral resource to test for a possible
Hugo North-like zone that might have existed along the eastern
margin of the deposit. While the hole did not intersect high-grade
mineralization, it did encounter 300 metres grading 0.51 g/t gold,
0.33% copper and 102 ppm molybdenum) starting at 1,484 metres down
hole. This included 104 metres at the top of the intersection
grading 0.55 g/t gold, 0.56% copper and 233 ppm molybdenum followed
by 26 metres of dyke and 18 metres grading 1.24 g/t gold, 0.56%
copper and 112 ppm molybdenum. The overall zone lies down dip,
beyond the projection of the resource block model and, as a
stand-alone intersection, was not included in this resource
estimate. Infill drilling which confirms grade continuity between
the intersection and the resource block model may significantly
expand the inferred resource base in this area.
The deposit is open at both ends and, in part, on the south
eastern side. EJD0028, which is drilling on the northern most
section, 4759500N, has intersected 24 metres starting at 1118
metres down hole, grading 0.42 g/t gold, 0.71% copper and 306 ppm
molybdenum. The remaining assays for the hole are pending, however,
similar moderate to strong copper mineralization is reported in the
hole to a depth of 1,550 metres. The hole is 200 metres east of
EJD0025, which was included in the resource estimate, and had an
intersection of 144 metres starting at 996 metres that averaged
0.20 g/t gold, 0.58% copper and 130 ppm molybdenum followed by 20
metres of barren dyke and 54 metres of 0.15 g/t gold, 0.56% copper
and 232 ppm molybdenum. The West Bor Tolgoi fault, which defines
the western limit of the currently defined deposit, was intersected
at the base of the 52-metre interval. The east Bor Tolgoi fault
which defines the eastern limit of the deposit on its northern end
is projected approximately 300 metres further east of the top of
the EJD0028 interval reported above.
Extending Heruga north, the Induced Polarization data, which
have been a good indicator for the mineralization, suggest that the
mineralized block between the two Bor Tolgoi faults could extend an
additional 500 metres northeast onto the 100% Ivanhoe-owned Oyu
Tolgoi mining license. Of even more interst, there are three
northeast trending, post mineral fault structures which cut across
the northern end of the deposit. Ultimately the deposit may extend
approximately four kilometres further north to the southern end of
the Southwest and South Oyu deposits which abutted onto a similar
aged, east-west fault referred to as the Solongo fault. The IP
shows a broad zone of increased chargeability along the
four-kilometre trend.
Table 2: Total Oyu Tolgoi Project Resources March 2008(1)(2)
(based on a 0.60% copper equivalent cut-off)(3)
--------------------------------------------------------------------------
Contained Metal(5)
--------------------------------------------------------------------------
CuEq
Resource Cu Au Mo (4) Cu Au CuEq(4)
Category Tonnes (%)(g/t)(ppm) (%) ('000 lbs) (ounces) ('000 lbs)
--------------------------------------------------------------------------
Measured 101,590,000 0.64 1.10 - 1.34 1,430,000 3,590,000 3,000,000
--------------------------------------------------------------------------
Indi-
cated 1,285,840,000 1.38 0.42 - 1.65 39,120,000 17,360,000 46,770,000
--------------------------------------------------------------------------
Measured
+ Indi-
cated 1,387,430,000 1.33 0.47 - 1.63 40,680,000 20,970,000 49,860,000
--------------------------------------------------------------------------
Infer-
red 2,157,130,000 0.80 0.35 50 1.05 38,230,000 24,220,000 50,050,000
--------------------------------------------------------------------------
Notes:
(1) Mineral resources are not mineral reserves until they have
demonstrated economic viability based on a feasibility study or
pre-feasibility study. Mineral resources are reported inclusive of
mineral reserves.
(2) This table includes estimated resources on Entr�e Gold's Hugo North
Extension Deposit and the Heruga deposit. These Properties are owned
By Entr�e Gold but are subject to earn-in rights by IVN.
The estimate includes indicated resources of 117,000,000 tonnes
grading 1.8% copper and 0.61 g/t gold and inferred resources of
855,500,000 tonnes grading 0.53% copper and 0.52 g/t gold and a 142ppm
Molybdenum at a 0.6% cut-off grade on the combined Hugo North
Extension and Heruga Deposits.
(3) The 0.6% CuEq cut-off has been used to enable comparison with previous
disclosures.
(4) CuEq has been calculated using assumed metal prices ($1.35/lb. For
copper and $650/oz for gold and $10/lb for molybdenum); %CuEq. equals
CU+((AU x 18.98)+(MO x 0.01586))/29.76. Mo grades outside of
Heruga are assumed to be zero for CuEq calculations
(5) 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.
(6) Mineral Resources for Heruga were estimated by Ivanhoe and
independently verified by Scott Jackson of Quantitative Geoscience.
Mineral Resources exclusive of Heruga (Southern Oyu and Hugo Dummett)
were estimated by AMEC Americas Ltd. under the supervision of Dr.
Harry M. Parker, P.Geo. AMEC has consented to be named in this press
release.
Table 3: Recent Selected Assay Averages from Heruga drilling
------------------------------------------------------------------
From To Interval Au Cu Mo Cu Eq
Hole Number (m) (m) (m) (g/t) (%) (ppm) (%)
------------------------------------------------------------------
EJD0024 1252 1490 238 2.05 0.52 49 1.85
------------------------------------------------------------------
including 1280 1372 92 3.60 0.89 67 3.22
------------------------------------------------------------------
1554 1614 60 1.17 0.30 32 1.07
------------------------------------------------------------------
Overall 1252 1614 362 1.59 0.41 40 1.44
------------------------------------------------------------------
------------------------------------------------------------------
------------------------------------------------------------------
EJD0008A 1132 1310 178 0.20 0.62 299 0.91
------------------------------------------------------------------
1382 1406 24 0.52 0.56 169 0.98
------------------------------------------------------------------
1424 1494 70 0.95 0.38 41 1.01
------------------------------------------------------------------
1584 1754 170 1.32 0.29 10 1.13
------------------------------------------------------------------
Overall 1132 1754 622 0.59 0.34 102 0.77
------------------------------------------------------------------
------------------------------------------------------------------
------------------------------------------------------------------
EJD0025 916 924 8 0.03 1.35 286 1.52
------------------------------------------------------------------
996 1140 144 0.20 0.58 130 0.78
------------------------------------------------------------------
1160 1214 54 0.15 0.56 232 0.78
------------------------------------------------------------------
------------------------------------------------------------------
EJD0026 1484 1588 104 0.55 0.56 233 1.04
------------------------------------------------------------------
1614 1632 18 1.24 0.56 112 1.41
------------------------------------------------------------------
1650 1684 34 0.79 0.31 39 0.84
------------------------------------------------------------------
1692 1740 48 0.71 0.31 53 0.79
------------------------------------------------------------------
1772 1784 12 0.92 0.38 45 0.98
------------------------------------------------------------------
Overall 1484 1784 300 0.51 0.33 102 0.71
------------------------------------------------------------------
------------------------------------------------------------------
------------------------------------------------------------------
EJD0027 852 998 146 0.25 0.70 234 0.98
------------------------------------------------------------------
1016 1282 266 0.38 0.63 285 1.02
------------------------------------------------------------------
1282 1390 108 1.26 0.66 53 1.49
------------------------------------------------------------------
1422 1438 16 1.10 0.36 9.4 1.06
------------------------------------------------------------------
1454 1660 206 0.96 0.36 19 0.98
------------------------------------------------------------------
Overall 852 1660 808 0.60 0.52 149 0.99
------------------------------------------------------------------
Note 1: Cu Equivalent calculated for $1.35/lb copper, $650/oz gold
and $10/lb molybdenum
Note 2: Previous Press Releases used $1.15/b copper, $500/oz gold
and $10/lb molybdenum for calculating Cu Equivalents CuEq equals
Cu%+((Au g/t x 18.98)+(Mo ppm x 0.01586))/29.76
Quality Assurance and Quality Control
Charles Forster, P.Geo., Ivanhoe Mines' Oyu Tolgoi Exploration
Manager, Stephen Torr, P. Geo., Ivanhoe Mines' Chief Resource
Geologist, and Robert Cann, P.Geo., Entree's Vice-President,
Exploration, all qualified persons as defined by NI 43-101,
supervised the preparation of the information in this release.
John Vann, Principal and Director and Scott Jackson, Principal
and Director of Quantitative Group from 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.
Ivanhoe Mines currently has a 60% participating interest in the
Ivanhoe-Entree joint venture, which covers approximately 40,000
hectares of Entree's 100%-owned Shivee Tolgoi Property (which
includes the Javkhlant license), adjacent to Ivanhoe's Oyu Tolgoi
Property. Ivanhoe earned the 60% interest by completing more than
US$27.5 million of aggregate earn-in expenditures on the
joint-venture properties to date. Ivanhoe intends to continue
incurring earn-in expenditures in accordance with the terms of the
joint-venture agreement with a view to increasing its participating
interest in the project. Subject to Ivanhoe spending a total of
US$35 million on exploration and/or development on the
joint-venture properties prior to November 2012, Ivanhoe will
earn:
- a 80% participating interest in all minerals extracted below a
sub-surface depth of 560 metres on the optioned property; and
- a 70% participating interest in all minerals extracted from
surface to a depth of 560 metres.
Ivanhoe also owns approximately 15% of the outstanding shares of
Entree Gold (TSX: ETG)(AMEX: EGI). Ivanhoe's strategic partner in
the development of the Oyu Tolgoi Project, Rio Tinto, owns
approximately 16% of the outstanding shares of Entree Gold.
Ivanhoe Mines shares are listed on the Toronto, New York and
NASDAQ stock exchanges under the symbol IVN.
Forward-Looking Statements - This news release contains
forward-looking statements. Forward-looking statements are
statements which relate to future events. In some cases, you can
identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue" or the negative
of these terms or other comparable terminology. These statements
are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our or our
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. While these
forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested
herein. Readers are referred to the sections entitled "Risk
Factors" in Ivanhoe Mines' periodic filings with Canadian and US
Securities Commissions.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investor Relations
(604) 688-5755 Ivanhoe Mines Ltd. Bob Williamson Media (604)
688-5755 Website: www.ivanhoe-mines.com
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