Ivanhoe Mines (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN) announced today
that it has received an initial, independent NI 43-101 Resource
Estimate for the high-grade Merlin molybdenum and rhenium deposit,
which comprises part of Ivanhoe Australia's Mt. Dore Project in the
Cloncurry District in northwestern Queensland.
Mt. Dore is a polymetallic deposit containing copper, zinc,
silver, gold, lead, cobalt, molybdenum and rhenium within the
Kuridala Formation. In December 2008, an infill drilling program in
the northern part of the Mt. Dore area intersected significant
molybdenum-rhenium (Mo-Re) mineralization. The Mo-Re mineralization
represents a new discovery, now known as the Merlin deposit.
Drilling is ongoing at the Merlin deposit to expand the zone of
high-grade molybdenite and rhenium mineralization along strike and
to depth.
The initial, independent NI 43-101 resource estimate for the
Merlin Deposit was prepared by Scott Jackson and Mike Job of
Quantitative Group Pty. Ltd. (QG) and Nigel Ricketts of GRD
Minproc, both of Australia. The estimate is based on results from
129 drill holes, totalling 28,366 metres, completed to June 30,
2009. The NI 43-101-compliant Technical Report on Mt. Dore
(including the Merlin Zone) will be filed today on SEDAR by Ivanhoe
Mines.
Indicated and Inferred Resources for Merlin Zone as at October 7, 2009.
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Cut-off Resource Tonnes Mo Re Cu Ag Mo Re
(Mo %) Category (millions) (%) (g/t) (%) (g/t) (tonnes) (kilograms)
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1.0 Indicated 2.0 1.7 26 0.2 4 34,000 52,000
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0.6 Indicated 3.4 1.3 20 0.2 4 44,000 68,000
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0.3 Indicated 5.2 1.0 16 0.2 4 52,000 83,000
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0.2 Indicated 6.3 0.9 14 0.1 3 57,000 88,000
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0.1 Indicated 10 0.6 10 0.1 3 58,000 97,000
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1.0 Inferred 0.8 1.5 25 0.3 4 12,000 20,000
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0.6 Inferred 1.9 1.1 19 0.3 4 21,000 36,000
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0.3 Inferred 3.5 0.8 14 0.3 4 28,000 49,000
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0.2 Inferred 4.2 0.7 13 0.3 4 29,000 55,000
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0.1 Inferred 5.8 0.5 10 0.3 4 29,000 58,000
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-The base case cut-off grade of 0.3% Mo was based on Mo at US$12/lb, Re at
US$5/g, 90% and 80% recovery respectively, and a Mo %:Re ppm ratio of 16:1.
Production costs for open stoping of A$120/tonne and 1$A = US$0.75.
At a cut-off grade of 0.3% molybdenum, estimated Indicated
Resources total 5.2 million tonnes at a grade of 1.0% molybdenum
and 16 g/t rhenium, containing 52,000 tonnes of molybdenum and 83
tonnes of rhenium, plus additional Inferred Resources totalling 3.5
million tonnes at a grade of 0.8% molybdenum and 14 g/t rhenium,
containing 28,000 tonnes of molybdenum and 49 tonnes of
rhenium.
Using a lower cut-off grade of 0.1% molybdenum, estimated
Indicated Resources total 10 million tonnes at a grade of 0.6%
molybdenum and 10 g/t rhenium, containing 58,000 tonnes of
molybdenum and 97 tonnes of rhenium, plus additional Inferred
Resources totalling 5.8 million tonnes at a grade of 0.5%
molybdenum and 10 g/t rhenium, containing 29,000 tonnes of
molybdenum and 58 tonnes of rhenium.
QG provided estimates of the resources at a range of molybdenum
cut-off grades, but two cut-offs are relevant:
- 0.3% Mo represents a likely selective mining cut-off grade.
Almost all of this material is captured within the high-grade zone
defined by QG.
- 0.1% Mo represents material found inside a higher-grade zone
defined by QG as well as a 'medium grade' zone; it would represent
a zone of continuity for less selective bulk mining.
Indicated Resources were estimated in an area where drilling has
been completed on a 50 x 50-metre pattern. Inferred Resources were
estimated in an area where drilling remains at a 100 x 100-metre
pattern or greater.
Data verification
All drilling at Merlin has been undertaken by Ivanhoe Australia.
Early reverse circulation holes that intersected molybdenum
mineralisation while testing for oxide copper have been replaced by
diamond drill holes or form a small part of the Inferred
Resources.
Drilling by Ivanhoe has been conducted under current industry
best practice with regard to QA and QC for sampling, sample
preparation and assaying and has been reviewed continually by
Ivanhoe Mines' personnel.
Notes:
1. Density was determined using the measured density for
10-centimetre lengths of core taken at regular intervals down drill
holes. Such measured densities may not fully cover the mineralized
zones and may introduce a low bias to the grade estimation. Ivanhoe
has commenced a program of measuring densities for all high-grade
samples due to the extreme influence these samples have on the
grade estimation.
2. Grade estimates were derived using Ordinary Kriging of
2-metre down-hole grade composites within three domains. A
high-grade domain containing samples above 0.5% Mo, a medium-grade
domain at 0.01% Mo and a low-grade background domain below 0.01%
Mo.
Qualified Persons
The information in this release that relates to Ivanhoe
Australia's mineral resource estimates for the Merlin zone resource
is based on information compiled by Scott Jackson, Michael Job,
full-time employees of the independent consulting firm Quantitative
Group, and Dr. Nigel Ricketts, a full-time employee of GRD Minproc
Limited. Mr. Jackson, Mr. Job and Dr. Ricketts are each
"independent" and a "Qualified Person" as such terms are defined in
NI 43-101 and are the qualified persons responsible for the mineral
resource estimates contained in this press release.
Scott Jackson is a Member of the Australasian Institute of
Mining and Metallurgy. Mr. Jackson has sufficient experience that
is relevant to the style of mineralization and type of deposit
under consideration and to the activity that he is undertaking to
qualify as a 'Competent Person' as defined in the JORC code.
Michael Job is a Member of the Australasian Institute of Mining
and Metallurgy. Mr. Job has sufficient experience that is relevant
to the style of mineralization and type of deposit under
consideration and to the activity that he is undertaking to qualify
as a 'Competent Person' as defined in the JORC code.
Nigel Ricketts is a Member of the Australasian Institute of
Mining and Metallurgy. Dr. Ricketts has sufficient experience that
is relevant to the style of mineralization and type of deposit
under consideration and to the activity that he is undertaking to
qualify as a 'Competent Person' as defined in the JORC code.
The Qualified Persons for this Mineral Resource estimate are
unaware of any mining, metallurgical, infrastructure,
environmental, permitting, legal, title, taxation, socio-economic,
marketing, political or other relevant issues that would affect
this Mineral Resource estimate.
About Ivanhoe Australia
The Mt. Dore project is in northwestern Queensland, Australia,
approximately 145 kilometres southeast of Mount Isa and 700
kilometres west-southwest of Townsville. The project area is
covered by 10 Mining Leases within the Mount Isa Mining District in
Queensland. All leases are owned by Ivanhoe Cloncurry Mines Pty.
Ltd., a subsidiary of Ivanhoe Australia.
Ivanhoe Australia is an Australia-based minerals exploration and
development company that has mining tenements located in northwest
Queensland. Ivanhoe Australia, 82.9%-owned by Ivanhoe Mines, is
listed on the Australian Stock Exchange under the symbol IVA.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investors
1-604-688-5755 Ivanhoe Mines Ltd. Bob Williamson Media
1-604-331-9880 Ivanhoe Australia Peter Reeve Managing Director
& CEO 61 3 9090 8802 peterr@ivancorp.net
www.ivanhoemines.com
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