Robert Friedland, Executive Chairman and Chief Executive Officer of
Ivanhoe Mines Ltd. (TSX: IVN)(NYSE: IVN)(NASDAQ: IVN), and Richard
Gosse, Vice-President, Exploration, announced today that Ivanhoe
and BHP Billiton Ltd. have discovered a new zone of shallow
copper-molybdenum-gold mineralization approximately 10 kilometres
north of the Ivanhoe Mines Oyu Tolgoi copper-gold mining complex
currently under construction in southern Mongolia.
The discovery, known as Ulaan Khud North, extends the known
strike length of the Oyu Tolgoi mineralized system by an additional
three kilometres to the north, to more than 23 kilometres.
Less than half of the 23-kilometre-long mineralized trend at Oyu
Tolgoi has been extensively drill-tested to date. An ongoing
exploration program including proprietary, induced-polarization
(IP) technology has identified additional exploration and
development targets.
"The Ulaan Khud North discovery reinforces our longstanding
belief that with continued exploration there is excellent potential
to discover new porphyry deposits, rich in copper and gold, which
are associated with the world-class Oyu Tolgoi mineralized trend,"
said Mr. Friedland.
Ulaan Khud North is located on a 19,625-hectare exploration
licence that is part of Ivanhoe's joint-venture partnership with
BHP Billiton, which was formed in 2005. BHP Billiton has earned a
50% interest in the joint venture, which includes the Ulaan Khud
North property, by spending US$8 million in exploration costs and
conducting an airborne survey using the proprietary Falcon™ gravity
gradiometer system over the Oyu Tolgoi area.
A total of 25 drill holes (UKD031 to 055) totalling 6,561
metres, ranging in depth from 182 metres to 377 metres, defined the
new zone of shallow porphyry copper mineralization over an area of
600 metres by 300 metres. Most of the holes are vertical and were
drilled on a 100-metre-square grid. The mineralized zone starts
beneath 60 to 80 metres of Cretaceous clay and gravels, indicative
of a near-surface deposit with open-pit mining potential. Ivanhoe's
geologists believe that the near-surface copper mineralization
discovered to date at Ulaan Khud North may be part of a much larger
deposit.
Mineralization occurs in quartz monzodiorite, similar to
mineralized quartz monzodiorites at Oyu Tolgoi. A total of 23 of
the 25 drill holes drilled at Ulaan Khud North intersected the
mineralized quartz monzodiorite. The mineralization is
porphyry-style stockwork, disseminations and massive veins of
chalcopyrite, with molybdenite disseminations and veinlets and
trace bornite. Many holes encountered mineralization with greater
than 1% copper in multiple individual one-metre samples, while
almost all holes have longer intervals of mineralization grading
greater than 0.3% copper. Numerous post-mineral intrusive rocks cut
the mineralized quartz monzodiorite and define the boundaries of
most mineralized intervals. (Photos of mineralization found at
Ulaan Khud North are attached.)
"The presence of intensively mineralized and altered quartz
monzodiorite and basalt xenoliths within the moderately mineralized
quartz monzodiorite supports the idea that an earlier phase of
stronger mineralization exists at depth and along margins of the
area," said Mr. Gosse.
Highlights include:
----------------------------------------------------------------------------
Hole No. From (m) To (m) Len. (m) Cu (%) Au (g/t) Mo (%) eCu%
----------------------------------------------------------------------------
UKD031 155.00 174.00 19.00 0.941 0.098 0.029 1.158
UKD032 171.10 181.00 9.90 1.410 0.248 0.042 1.793
UKD034 91.00 97.00 6.00 1.094 0.165 0.037 1.396
UKD039 187.75 191.05 3.30 1.357 0.140 0.081 1.878
UKD045 208.10 217.70 9.60 2.429 0.121 0.149 3.300
UKD045 289.00 293.00 4.00 1.156 0.063 0.049 1.457
UKD046 174.35 182.00 7.65 2.242 0.203 0.081 2.803
----------------------------------------------------------------------------
The equivalent grade was calculated using assumed metal prices of US$1.35/lb
for copper, US$650/oz for gold and US$10/lb for molybdenum. For convenience,
the formula is: CuEq% = Cu% + ((Au g/t 18.98)+(Mo % 158.6))/29.76.
A full list of intercepts using a 0.2% copper cut-off is shown
in Table 1. The true widths of mineralization and post-mineral
dykes have yet to be established.
The mineralization at Ulaan Khud North starts as shallow as 60
metres below surface, much higher than the mineralized zone at Hugo
Dummett to the south. The fact that Ulaan Khud North occurs in
similar Devonian host rocks to Hugo Dummett suggests that the main
Oyu Tolgoi porphyry system trend is relatively shallow in this area
and that potential for surface-mineable targets still exist within
the Oyu Tolgoi trend and Ulaan Khud North in particular.
The Ulaan Khud North property adjoins the Shivee Tolgoi Entree
Gold-Ivanhoe Mines joint-venture property and is about three
kilometres north of mineralization found at Ulaan Khud on that
licence.
Three-Year Pre-Mining Agreement Received
The Pre-Mining Agreement for the Ulaan Khud North property
specifies that Ivanhoe and BHP Billiton have three years to conduct
additional exploration, complete an environmental impact study,
prepare a final feasibility study and gain approval for the design
for the project. The agreement also specifies that a Technical and
Economical Study to mine the deposit is required to be delivered to
the Mineral Resources Authority of Mongolia (MRAM) by June 30,
2013.
"The Pre-Mining Agreement provides a three-year window to
aggressively explore the project and to prepare resource, technical
and economic studies. It also paves the way for the Ulaan Khud
North Project to obtain all necessary mining permits and
approvals," said Mr. Gosse.
Quality Assurance and Quality Control
Stephen Torr, P.Geo., Ivanhoe Mines' Mineral Resource Manager
and a qualified person as required by NI 43-101, supervised the
preparation of the information in this news release.
The sampling program used at the Ulaan Khud North project
comprised collection of core samples taken on one-metre intervals
in mineralized zones and two-metre intervals in non-mineralized
post-mineral dykes, excluding dykes that extend more than five
metres along the core length. Samples of one-half of HQ core were
taken for assaying. The core was marked with a continuous cutting
line along the middle, parallel to the long axis, to prevent a
sampling bias during splitting. Splitting was done with a rock saw
flushed continually with water. Samples were placed in cloth bags,
sealed with numbered security tags, quality control samples were
inserted for monitoring of the assay data and all samples were sent
to SGS Mongolia LLC for preparation and assaying. Each batch of 20
samples contained one Standard Reference material, certified for
copper-gold, one Field Blank, one Core Duplicate and one Pulp or
Crush Duplicate. All samples were assayed for gold, copper,
molybdenum, arsenic, silver, lead and zinc.
Upon receipt of assay results, values for Standard Reference
Material samples and Field Blanks were tabulated and compared to
those from an established Round Robin program. Assay results that
deviated from the Round Robin program results beyond pre-set
tolerance limits were rejected and subject to re-assay. Check
assays were conducted on a regular basis at the rate of one per
batch of 20 samples.
About Ivanhoe Mines
Ivanhoe Mines (TSX: IVN)(NYSE: IVN)(NASDAQ: 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); a 62% interest in Ivanhoe Australia
(ASX: IVA)(TSX: 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.
Forward-looking statements
This news release contains forward-looking statements.
Forward-looking statements are statements that relate to future
events such as Ivanhoe's intent to continue drilling at the Oyu
Tolgoi Project. 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. Forward- looking statements within this
release include, but are not limited to the 2011 exploration
program for the Ulaan Khud North Project. 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 almost always will 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 U.S. Securities
Commissions.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Table 1. Significant Drill Results from Ulaan Khud.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Hole No. From (m) To (m) Len. (m) Cu (%) Au (g/t) Mo (%) eCu%
----------------------------------------------------------------------------
UKD031 150.80 184.85 34.05 0.652 0.061 0.022 0.809
including 155.00 174.00 19.00 0.941 0.098 0.029 1.158
----------------------------------------------------------------------------
UKD032 72.00 102.00 30.00 0.266 0.024 0.019 0.385
including 93.00 102.00 9.00 0.535 0.029 0.042 0.779
and 127.50 204.00 76.50 0.354 0.056 0.014 0.462
including 171.10 181.00 9.90 1.410 0.248 0.042 1.793
----------------------------------------------------------------------------
UKD033 162.00 175.00 13.00 0.200 0.003 0.008 0.244
----------------------------------------------------------------------------
UKD034 89.60 198.00 108.40 0.249 0.033 0.006 0.302
including 91.00 97.00 6.00 1.094 0.165 0.037 1.396
----------------------------------------------------------------------------
UKD035 132.80 138.00 5.20 0.204 0.022 0.006 0.247
----------------------------------------------------------------------------
UKD036 90.90 222.00 131.10 0.213 0.012 0.007 0.261
including 139.30 147.00 7.70 0.777 0.036 0.023 0.923
----------------------------------------------------------------------------
UKD037 71.00 150.00 79.00 0.260 0.019 0.005 0.298
including 72.00 78.00 6.00 0.821 0.041 0.004 0.866
including 88.00 95.20 7.20 0.595 0.031 0.010 0.665
including 137.40 144.50 7.10 0.597 0.033 0.010 0.673
and 180.20 206.00 25.80 0.222 0.015 0.007 0.270
and 227.75 252.80 25.05 0.202 0.024 0.006 0.246
and 287.00 315.00 28.00 0.343 0.034 0.007 0.400
----------------------------------------------------------------------------
UKD038 63.20 90.00 26.80 0.274 0.053 0.003 0.324
and 99.80 135.05 35.25 0.268 0.012 0.004 0.295
and 183.00 212.15 29.15 0.310 0.016 0.028 0.468
including 198.00 205.00 7.00 0.528 0.033 0.040 0.763
----------------------------------------------------------------------------
UKD039 187.75 212.90 25.15 0.269 0.025 0.016 0.370
including 187.75 191.05 3.30 1.357 0.140 0.081 1.878
----------------------------------------------------------------------------
UKD040 73.50 106.45 32.95 0.203 0.009 0.002 0.218
including 88.10 91.60 3.50 0.765 0.016 0.008 0.820
and 171.00 177.25 6.25 0.386 0.032 0.009 0.455
and 201.00 206.00 5.00 0.288 0.026 0.010 0.356
----------------------------------------------------------------------------
UKD041 173.05 182.00 8.95 0.253 0.013 0.008 0.302
and 221.80 297.10 75.30 0.296 0.057 0.011 0.391
including 239.87 247.00 7.13 0.548 0.308 0.030 0.902
including 270.00 280.00 10.00 0.524 0.033 0.012 0.609
----------------------------------------------------------------------------
UKD042 92.00 141.65 49.65 0.249 0.013 0.004 0.279
including 94.00 100.00 6.00 0.615 0.045 0.015 0.722
and 175.50 216.40 40.90 0.206 0.018 0.006 0.248
----------------------------------------------------------------------------
UKD043 95.80 101.15 5.35 0.330 0.019 0.004 0.366
and 116.00 129.00 13.00 0.262 0.014 0.004 0.294
and 172.25 179.90 7.65 0.268 0.016 0.008 0.319
and 193.10 204.60 11.50 0.293 0.038 0.012 0.380
and 224.50 230.00 5.50 0.303 0.046 0.003 0.349
----------------------------------------------------------------------------
No significant
UKD044 intersections
----------------------------------------------------------------------------
UKD045 105.00 159.25 54.25 0.350 0.021 0.011 0.421
including 111.00 116.85 5.85 0.612 0.041 0.018 0.732
including 148.00 159.25 11.25 0.735 0.043 0.025 0.897
and 188.15 217.70 29.55 0.928 0.048 0.054 1.244
including 208.10 217.70 9.60 2.429 0.121 0.149 3.300
and 265.20 327.00 61.80 0.232 0.027 0.008 0.292
including 266.00 272.00 6.00 0.603 0.187 0.006 0.755
including 289.00 293.00 4.00 1.156 0.063 0.049 1.457
----------------------------------------------------------------------------
UKD046 75.30 79.35 4.05 0.559 0.020 0.003 0.590
and 107.80 141.20 33.40 0.255 0.013 0.002 0.276
and 170.35 218.00 47.65 0.579 0.048 0.026 0.748
including 174.35 182.00 7.65 2.242 0.203 0.081 2.803
and 244.00 377.00 133.00 0.243 0.014 0.006 0.286
including 341.00 345.60 4.60 0.501 0.026 0.017 0.609
----------------------------------------------------------------------------
UKD047 163.00 217.00 54.00 0.207 0.016 0.012 0.283
and 225.75 237.20 11.45 0.222 0.018 0.018 0.332
----------------------------------------------------------------------------
No significant
UKD048 intersections
----------------------------------------------------------------------------
No significant
UKD049 intersections
----------------------------------------------------------------------------
UKD050 95.65 104.80 9.15 0.229 0.037 0.006 0.286
----------------------------------------------------------------------------
UKD051 126.00 133.40 7.40 0.265 0.012 0.001 0.280
and 151.70 174.85 23.15 0.442 0.042 0.018 0.566
including 161.25 166.00 4.75 0.773 0.096 0.022 0.952
and 198.50 205.15 6.65 0.593 0.011 0.008 0.640
----------------------------------------------------------------------------
No significant
UKD052 intersections
----------------------------------------------------------------------------
UKD053 226.00 229.25 3.25 0.408 0.027 0.007 0.461
and 234.10 240.20 6.10 0.201 0.029 0.004 0.240
----------------------------------------------------------------------------
UKD054 251.00 255.60 4.60 0.219 0.035 0.001 0.246
----------------------------------------------------------------------------
UKD055 192.00 201.35 9.35 0.347 0.021 0.012 0.424
and 241.90 312.00 70.10 0.254 0.136 0.031 0.509
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes - includes narrow, barren post mineral dykes and
excludes larger, barren post mineral dyes
- cut-off for main intervals is 0.2% Cu and cut-off
for smaller included intervals is 0.5% Cu
----------------------------------------------------------------------------
----------------------------------------------------------------------------
The equivalent grade was calculated using assumed metal prices of US$1.35/lb
for copper, US$650/oz for gold and US$10/lb for molybdenum. For convenience,
the formula is: CuEq% = Cu% + ((Au g/t 18.98)+(Mo % 158.6))/29.76
----------------------------------------------------------------------------
Table 2. Coordinates of Ulaan Khud drill hole collars.
----------------------------------------------------------------------------
Depth Depth
Hole UTM UTM Elevation Azimuth Dip Depth PCD Diamond
Number East North (m) Degrees Degrees (m) (m) (m)
----------------------------------------------------------------------------
UKD031 654500 4778600 1164.6 0 90 255.7 51.0 204.7
----------------------------------------------------------------------------
UKD032 654600 4778600 1164.2 0 90 360.6 71.1 289.5
----------------------------------------------------------------------------
UKD033 654600 4778500 1164.2 0 90 194.8 75.0 119.8
----------------------------------------------------------------------------
UKD034 654400 4778400 1165.0 0 90 215.1 60.1 155.0
----------------------------------------------------------------------------
UKD035 654400 4778500 1165.5 0 90 248.2 54 194.2
----------------------------------------------------------------------------
UKD036 654400 4778600 1165.8 0 90 282.3 63 219.3
----------------------------------------------------------------------------
UKD037 654600 4778700 1165.8 0 90 357.4 63 294.4
----------------------------------------------------------------------------
UKD038 654500 4778700 1165.8 0 90 294.2 63 231.2
----------------------------------------------------------------------------
UKD039 654600 4778597 1164.2 270 50 251.2 90 161.2
----------------------------------------------------------------------------
UKD040 654700 4778600 1164.2 0 90 230.5 73.5 157
----------------------------------------------------------------------------
UKD041 654700 4778700 1164.2 0 90 300.2 66 234.2
----------------------------------------------------------------------------
UKD042 654500 4778400 1165.4 0 90 218.4 66 152.4
----------------------------------------------------------------------------
UKD043 654600 4778400 1165.4 0 90 256.5 66 190.5
----------------------------------------------------------------------------
UKD044 654400 4778700 1165.4 0 90 182.5 69.8 112.7
----------------------------------------------------------------------------
UKD045 654500 4778800 1165.4 0 90 342.7 67.1 275.6
----------------------------------------------------------------------------
UKD046 654500 4778900 1165.4 0 90 377.0 66.3 310.7
----------------------------------------------------------------------------
UKD047 654600 4778800 1165.4 0 90 301.3 66 235.35
----------------------------------------------------------------------------
UKD048 654500 4779100 1165.4 0 90 216.7 81 135.7
----------------------------------------------------------------------------
UKD049 654600 4778900 1165.4 0 90 183.5 66.73 116.77
----------------------------------------------------------------------------
UKD050 654400 4778900 1165.4 0 90 198 78.5 119.5
----------------------------------------------------------------------------
UKD051 654550 4779000 1165.4 0 90 273.5 80 193.5
----------------------------------------------------------------------------
UKD052 654700 4779000 1165.4 0 90 189.5 81 108.5
----------------------------------------------------------------------------
UKD053 654800 4778900 1165.4 0 90 261.8 75.15 186.65
----------------------------------------------------------------------------
UKD054 654800 4778700 1165.4 0 90 257 75 182
----------------------------------------------------------------------------
UKD055 654700 4778800 1165.4 0 90 312.7 72 240.7
----------------------------------------------------------------------------
Contacts: Ivanhoe Mines Ltd. - Investors Bill Trenaman
+1.604.688.5755 Ivanhoe Mines Ltd. - Media Bob Williamson
+1.604.331.9830 www.ivanhoemines.com
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