Ivanhoe to commence drilling on Bronze Fox gold-copper discovery, southern Mongolia
April 26 2005 - 9:30AM
PR Newswire (US)
Ivanhoe to commence drilling on Bronze Fox gold-copper discovery,
southern Mongolia ULAANBAATAR, Mongolia, April 26
/PRNewswire-FirstCall/ -- Ivanhoe Mines Executive Vice-President,
Exploration, Douglas Kirwin announced today that the company has
completed its Induced Polarization (IP) geophysical survey at the
Bronze Fox district gold-copper discovery in southern Mongolia, and
will commence a significant diamond drilling program on the project
in mid-May. Ivanhoe's multi-rig drill program will initially focus
on the central Bronze Fox prospect, one of several gold-rich copper
porphyry targets discovered by Ivanhoe's exploration team last
year. Drilling will test high-grade gold-copper-molybdenum
mineralization associated with sheeted quartz veins, where a recent
IP survey delineated a continuous chargeability anomaly
approximately 1,500 metres long. The anomaly varies in width from
200 to 400 metres. At least three additional targets also will be
tested during this phase of diamond drilling, including a second IP
anomaly which is approximately six kilometres long and situated
immediately south of, and marginal to, the Bronze Fox and East Fox
prospects. The Bronze Fox discovery is approximately 140 kilometres
northeast of the Oyu Tolgoi copper-gold mine development project
and 430 kilometres south- southeast of Ulaanbaatar. In addition to
the drilling, Ivanhoe's geological team will continue extensive
prospecting and sampling of the surrounding areas. Nariin Sukhait
Coal Project --------------------------- Mr. Kirwin also announced
that two additional diamond drill rigs have been sent to the
company's Nariin Sukhait coal project, where the company is
conducting a resource-delineation program along the strike
extensions of the operating Nariin Sukhait coal mine owned and
operated by MAC, a Mongolian- Chinese joint venture company. New
Independent Resource Estimate for Hugo North Discovery and Oyu
Tolgoi
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Project ------- Mr. Kirwin also confirmed that the new, independent
resource estimate for the Hugo North Discovery and the overall Oyu
Tolgoi copper and gold project is expected to be completed and
announced in the first week of May. The new resource estimate is
being prepared by AMEC E&C Services (AMEC) of Canada, under the
direction of Dr. Harry Parker, Ch. P. Geol., and Dr. Stephen Juras,
P.Geo., independent qualified persons as defined by NI 43-101.
Bronze Fox Discovery -------------------- This Bronze Fox district
lies within a newly-recognized 100-kilometre- long,
highly-prospective, copper-gold-porphyry belt that extends
northeast from the Shuteen Project and hosts other well-preserved
Late-Devonian to Early-Carboniferous mineralized porphyry and skarn
systems. Ivanhoe Mines has a 100% interest in the Bronze Fox
District and the majority of the ground over this belt (see
location map on Ivanhoe Mines' website at
http://www.ivanhoemines.com/). The Bronze Fox discovery was the
result of persistent exploration efforts in Mongolia whereby
systematic exploration across the extensive ground- holdings has
defined a new district with highly anomalous gold-copper grades.
The Bronze Fox district comprises four gold-bearing porphyry
targets: Bronze Fox, East Fox, West Fox and Tourmaline Hills. The
targets are primarily defined by surface mapping, geophysics and
extensive rock-chip sampling. They occur within a 14-kilometre-long
corridor of alteration and mineralization that is associated with
monzodiorites and granodiorites that were emplaced into a package
of Devonian volcano-sedimentary rocks. The quartz veins and
sericite-albite-actinolite alteration at the Bronze Fox prospect
are centred on quartz-diorite porphyry dykes. A first-pass,
deep-penetrating IP survey covered 85 square kilometres and
included detailed sectional work on numerous targets identified in
this first phase of the survey. The IP survey has delineated a
continuous chargeability anomaly over a six-kilometre strike length
interpreted to represent sulphide mineralization at depth. This
anomaly occurs immediately south of, and marginal to, the Bronze
Fox and East Fox prospects. The IP survey also has identified
several other significant geophysical targets within the Bronze Fox
district which are coincident with previously identified
geochemical anomalies. Recent surface rock-chip samples from
Tourmaline Hills and West Fox have now established that the two
prospects may be geologically connected. High-grade gold-bearing
quartz-tourmaline-sulphide veins are continuous across both
prospects. Veins from this new zone returned gold assays up to 25.4
grams per tonne (g/t), with most of the assays reporting gold
values above 3.0 g/t. Rock- chip sampling and mapping continues in
these and other areas of the district. Douglas Kirwin, a qualified
person as defined by National Instrument 43- 101, supervised the
preparation of the information in this release. SGS Analabs Pty.
Ltd. assayed the samples at its facility in Ulaanbaatar, Mongolia.
Ivanhoe has a 100% interest in the Bronze Fox exploration project
and owns 100% of the Oyu Tolgoi gold and copper mine-development
project. The company owns or controls exploration rights covering
approximately 130,000 square kilometres in central, southern and
northeastern Mongolia. Ivanhoe produces LME grade A copper from its
Monywa joint venture in Myanmar. Ivanhoe shares are listed on the
New York and Toronto stock exchanges under the symbol IVN.
Information contacts in North America Investors: Bill Trenaman,
(604) 688-5755 Media: Bob Williamson, (604) 688-5755
Forward-Looking Statements: This document includes forward-looking
statements. Forward-looking statements include, but are not limited
to, statements concerning Ivanhoe's planned exploration at Bronze
Fox, Oyu Tolgoi and Nariin Sukhait projects and other statements
that are not historical facts. When used in this document, the
words such as "could," "plan," "estimate," "expect," "intend,"
"may," "potential," "should," and similar expressions are
forward-looking statements. Although Ivanhoe Mines believes that
its expectations reflected in these forward-looking statements are
reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with
these forward-looking statements. Important factors that could
cause actual results to differ from these forward-looking
statements are disclosed under the heading "Risk Factors" and
elsewhere in the corporation's periodic filings with Canadian and
US securities regulators. DATASOURCE: Ivanhoe Mines Ltd. CONTACT:
Information contacts in North America: Investors: Bill Trenaman,
(604) 688-5755; Media: Bob Williamson, (604) 688-5755; To request a
free copy of this organization's annual report, please go to
http://www.newswire.ca/ and click on reports@cnw.
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