Copper contained in Measured and Indicated resources increases by more than 350% at Ivanhoe's Oyu Tolgoi Project
Ivanhoe plans to develop Oyu Tolgoi into one of the world's largest
copper and gold mines
ULAANBAATAR, Mongolia, May 3 /CNW/ - Ivanhoe Mines' Chairman Robert
Friedland and President John Macken announced today that a new, independent
estimate prepared by AMEC Americas Limited, based on drilling to April, 2005,
has dramatically increased the copper and gold contained in Measured and
Indicated resources at the company's Oyu Tolgoi (Turquoise Hill) Project in
southern Mongolia.
The new AMEC report estimates that the project now contains Measured
and Indicated resources totalling 1.15 billion tonnes grading 1.30% copper
and 0.47 grams per tonne (g/t) gold (a copper equivalent grade of 1.54%),
containing 32.9 billion pounds of copper and 17.3 million ounces of gold, at
a 0.60% copper equivalent cut-off. The new estimate represents a 125% increase
in Measured and Indicated tonnes, a 357% increase in contained copper and an
85% increase in contained gold since AMEC's last resource estimate eight
months ago, in August, 2004.
In addition to the Measured and Indicated resources, AMEC now estimates
that the Oyu Tolgoi Project contains Inferred resources of 1.16 billion tonnes
grading 1.02% copper and 0.23 g/t gold (a copper equivalent grade of 1.16%),
at a 0.60% copper equivalent cut-off, containing approximately 26.2 billion
pounds of copper and 8.4 million ounces of gold.
<<
Total Oyu Tolgoi Measured, Indicated and Inferred resources based on a
0.60% copper equivalent cut-off -- May, 2005:
-------------------------------------------------------------------------
Copper Gold Copper Equiv.
Oyu Tolgoi Resources Grade Grade Grade
Total Deposit (tonnes) (%) (g/t) (%)
-------------------------------------------------------------------------
Total Measured 101,590,000 0.64 1.10 1.34
-------------------------------------------------------------------------
Total Indicated 1,047,570,000 1.33 0.42 1.59
-------------------------------------------------------------------------
Total Measured
+ Indicated 1,149,160,000 1.30 0.47 1.54
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Total Inferred 1,160,120,000 1.02 0.23 1.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
--------------------------------------
Oyu Tolgoi Resources Copper Gold Copper Equiv.
Total Deposit (tonnes) ('000 lbs) (ounces) ('000 lbs)
-------------------------------------------------------------------------
Total Measured 101,590,000 1,440,000 3,580,000 3,010,000
-------------------------------------------------------------------------
Total Indicated 1,047,570,000 30,610,000 14,070,000 36,740,000
-------------------------------------------------------------------------
Total Measured
+ Indicated 1,149,160,000 32,850,000 17,340,000 38,980,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Total Inferred 1,160,120,000 26,200,000 8,400,000 29,780,000
-------------------------------------------------------------------------
The vast majority of the increase in the copper and gold resources at Oyu
Tolgoi resulted from upgrading and expanding the underground copper and gold
resources in the high-grade Hugo North Deposit, the northern part of the Hugo
Dummett Deposit. Ivanhoe's drilling has now extended the strike length of the
high-grade Hugo North deposit to greater than 1.8 kilometres. Hugo North is
part of the 3.0-plus-kilometre-long Hugo Dummett Deposit, which in turn is
part of the 6.1-kilometre-long chain of copper and gold porphyry deposits
defined to date by Ivanhoe at Oyu Tolgoi.
AMEC's new estimate confirms that the Hugo Dummett Deposit, alone, now
contains Indicated resources of 582 million tonnes grading 1.89% copper and
0.41 g/t gold (a copper equivalent grade of 2.15%) at a 0.60% copper
equivalent cut-off, containing:
- approximately 24.3 billion pounds (11 million tonnes) of copper; and
- 7.6 million ounces of gold.
In addition to the Indicated resources, the Hugo Dummett Deposit contains
Inferred resources of 1.07 billion tonnes grading 1.07% copper and 0.21 g/t
gold (a copper equivalent grade of 1.20%) at a 0.60% copper equivalent cut-
off, containing:
- approximately 25.2 billion pounds (11.4 million tonnes) of copper; and
- 7.3 million ounces of gold.
The new estimates were independently prepared in accordance with the
requirements set out in National Instrument 43-101 by AMEC under the direction
of Dr. Harry Parker, Ch. P. Geol., and Dr. Stephen Juras, P.Geo., independent
qualified persons.
The detailed results and geological models from the new AMEC resource
estimate will be incorporated into the Integrated Development Plan (IDP) for
the Oyu Tolgoi Project, which is scheduled to be completed near the end of the
second quarter. The IDP will provide details on the planned development of a
world-class new copper and gold mining complex at Oyu Tolgoi, incorporating a
large open-pit mine and at least two very large underground block cave mines.
Hugo North High-Grade Core Expanded
-----------------------------------
Most of the previously-classified Inferred resources contained in the
high-grade core that stretches the entire 1.8-kilometre strike length of Hugo
North have been upgraded to Indicated resources, which now total 239 million
tonnes grading 3.02% copper and 0.72 g/t gold (a copper equivalent grade of
3.48%). Hugo North also has additional Inferred resources totalling 57 million
tonnes grading 2.22% copper and 0.73 g/t gold (a copper equivalent grade of
2.69%). At the 2% copper equivalent cut-off grade, the deposit now contains
approximately 16 billion pounds (7.2 million tonnes) of copper and 5.6 million
ounces of gold in Indicated resources, plus an additional 2.8 billion pounds
(1.3 million tonnes) of copper and 1.3 million ounces of gold in Inferred
resources.
At a 1% copper equivalent cut-off grade, the Hugo North Deposit now
contains Indicated resources totalling 476 million tonnes grading 2.15% copper
and 0.47 g/t gold (a copper equivalent grade of 2.45%), and Inferred resources
totalling 392 million tonnes grading 1.27% copper and 0.38 g/t gold (a copper
equivalent grade of 1.51%). This is equivalent to approximately 22.5 billion
pounds (10.2 million tonnes) of copper and 7.2 million ounces of gold in
Indicated resources, plus an additional 11 billion pounds (5 million tonnes)
of copper and 4.8 million ounces of gold in Inferred resources.
The remarkable increase over the last year in the tonnes and grade of the
Hugo North Deposit, which is now the highest-grade copper porphyry deposit
ever discovered, is attributed to an aggressive campaign of infill and step-
out drilling, guided by a thorough understanding of the geology and
mineralization controls combined with state-of-the-art geophysics.
The recent completion of hole EGD006, five metres north of the Entrée
Gold-Ivanhoe joint-venture boundary intersected 216 metres, starting at
a depth of 1,008 metres, grading 2.95% copper and 1.35g/t gold (copper
equivalent grade of 3.83%), including 110 metres grading 4.58% copper and
2.02 g/t gold (copper equivalent grade of 5.89%). The hole was collared
155 metres north of the northern-most east-west section of drill holes used
in the new resource update, the OTD976 series and OTD977. The EGD006 drill
hole shows a pronounced north-east swing in the strike direction of the
deposit with the effect of making the intersection approximately 300 metres
along strike of the high-grade mineralization in hole OTD976A. The high-grade
copper and gold interval intersected in this hole was not used in the current
Hugo North resource estimate, with the result that the resource block model
extended only to the property boundary.
On the Entrée Gold-Ivanhoe Mines joint-venture property, four drill
rigs are currently testing the possible extension of the Hugo North Deposit
northeast from EGD006 with 150-metre to 450-metre step outs from the boundary.
Drill holes are targeting a deep, subtle Induced Polarization (IP) feature
which may reflect the continuation of Hugo North mineralization.
Table 2: Total Oyu Tolgoi Resources based on a 0.60% copper equivalent
cut-off -- May, 2005:
-------------------------------------------------------------------------
Resources Copper Gold Copper Equiv.
Deposit (tonnes) (%) (g/t) (%)
-------------------------------------------------------------------------
Southern Oyu
Deposits
-------------------------------------------------------------------------
Measured 101,590,000 0.64 1.10 1.34
-------------------------------------------------------------------------
Indicated 465,640,000 0.62 0.43 0.89
-------------------------------------------------------------------------
Measured
+ Indicated 567,230,000 0.62 0.55 0.97
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 88,500,000 0.47 0.41 0.73
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Hugo Dummett
Deposits
-------------------------------------------------------------------------
Indicated
(Hugo North) 581,930,000 1.89 0.41 2.15
-------------------------------------------------------------------------
Inferred
(Hugo North
and South) 1,071,620,000 1.07 0.21 1.20
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oyu Tolgoi Project
Grand Total:
-------------------------------------------------------------------------
Measured 101,590,000 0.64 1.10 1.34
-------------------------------------------------------------------------
Indicated 1,047,570,000 1.33 0.42 1.59
-------------------------------------------------------------------------
Measured
+ Indicated 1,149,160,000 1.30 0.47 1.54
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 1,160,120,000 1.02 0.23 1.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
--------------------------------------
Resources Copper Gold Copper Equiv.
Deposit (tonnes) ('000 lbs) (ounces) ('000 lbs)
-------------------------------------------------------------------------
Southern Oyu
Deposits
-------------------------------------------------------------------------
Measured 101,590,000 1,440,000 3,580,000 3,010,000
-------------------------------------------------------------------------
Indicated 465,640,000 6,360,000 6,400,000 9,150,000
-------------------------------------------------------------------------
Measured
+ Indicated 567,230,000 7,810,000 9,980,000 12,170,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 88,500,000 920,000 1,170,000 1,430,000
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Hugo Dummett
Deposits
-------------------------------------------------------------------------
Indicated
(Hugo North) 581,930,000 24,250,000 7,600,000 27,580,000
-------------------------------------------------------------------------
Inferred
(Hugo North
and South) 1,071,620,000 25,220,000 7,310,000 28,350,000
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oyu Tolgoi Project
Grand Total:
-------------------------------------------------------------------------
Measured 101,590,000 1,440,000 3,580,000 3,010,000
-------------------------------------------------------------------------
Indicated 1,047,570,000 30,610,000 14,070,000 36,740,000
-------------------------------------------------------------------------
Measured
+ Indicated 1,149,160,000 32,850,000 17,340,000 38,980,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 1,160,120,000 26,200,000 8,400,000 29,780,000
-------------------------------------------------------------------------
The footnotes below apply to all resource tables within this release.
1) Copper equivalent grades have been calculated using assumed metal
prices of US$0.80/lb. for copper and US$350/oz. for gold.
2) 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. The determination of an adjustment
factor to account for differences in relative metallurgical
recoveries between gold and copper will depend upon the completion of
definitive metallurgical testing.
3) Resource classifications conform to CIM Standards on Mineral
Resources and Reserves referred to in National Instrument 43-101.
Mineral resources that are not reserves do not have demonstrated
economic viability. Measured and Indicated mineral resources are that
part of a mineral resource for which quantity and grade can be
estimated with a level of confidence sufficient to allow the
application of technical and economic parameters to support mine
planning and evaluation of the economic viability of the deposit. An
Inferred mineral resource is that part of a mineral resource for
which quantity and grade can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but
not verified.
Southern Oyu Deposits
---------------------
A total of 584 drill holes were used in the new resource estimate
including 45 additional drill holes since the August 2004 AMEC estimate,
which were drilled into the Southern Oyu deposits to further upgrade Inferred
resources into Indicated resources for the upcoming Integrated Development
Plan.
The new AMEC estimate increased the Measured and Indicated resources
(at a 0.60% copper equivalent cut-off) in the Southern Oyu deposits by
approximately 10%. Recent drilling added new resources in the Wedge and South
Oyu areas, plus the Bridge and Southwest Oyu areas along the West Bounding
Fault. The new drilling in the main Southwest Oyu gold zone upgraded
additional Indicated resources to the Measured category.
To be consistent with previous AMEC resource estimates, the Southern Oyu
resources quoted in Tables 1 & 2 above are based on a global resource above
cut-off grade, without the constraint of an open-pit or underground block-cave
mining shape. As guide to the reasonableness of future open-pit mining
operations, the Measured and Indicated resources have been recast using an
ultimate life-of-mine open-pit optimization shell (at a 0.3% copper equivalent
cut-off and using US$1.00 copper and US$400 gold) produced from mine planning
by GRD Minproc Limited of Australia. The Measured and Indicated in-pit
resources summarized in Table 3 for the Southern Oyu deposits now stand at
917 million tonnes grading 0.50% copper and 0.36 g/t gold (copper equivalent
grade of 0.73%), containing 10.2 billion pounds of copper and 10.7 million
ounces gold, which could possibly be extracted over the projected life of the
735-metre deep open pit. It should be noted that there is potential to extract
additional resources at a later date by bulk underground mine methods below
the open pit.
Table 3: Stand alone Southern Oyu deposits resources in ultimate pit
based on 0.60% and 0.30% copper equivalent cut-offs -- May, 2005:
-------------------------------------------------------------------------
CuEq Copper Gold CuEq
Cut-off Resources Grade Grade Grade
Deposit (%) (tonnes) (%) (g/t) (%)
-------------------------------------------------------------------------
Southern Oyu
Deposits
-------------------------------------------------------------------------
Measured 0.6 101,530,000 0.65 1.09 1.34
-------------------------------------------------------------------------
0.3 126,560,000 0.58 0.93 1.18
-------------------------------------------------------------------------
Indicated 0.6 371,150,000 0.66 0.38 0.90
-------------------------------------------------------------------------
0.3 790,590,000 0.49 0.27 0.66
-------------------------------------------------------------------------
Measured
+ Indicated 0.6 472,680,000 0.65 0.54 1.00
-------------------------------------------------------------------------
0.3 917,150,000 0.50 0.36 0.73
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 0.6 12,950,000 0.59 0.23 0.74
-------------------------------------------------------------------------
0.3 78,240,000 0.37 0.18 0.48
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal
CuEq ----------------------------------
Cut-off Resources Copper Gold Copper Equiv.
Deposit (%) (tonnes) ('000 lbs) (ounces) ('000 lbs)
-------------------------------------------------------------------------
Southern Oyu
Deposits
-------------------------------------------------------------------------
Measured 0.6 101,530,000 1,450,000 3,560,000 3,000,000
-------------------------------------------------------------------------
0.3 126,560,000 1,620,000 3,780,000 3,290,000
-------------------------------------------------------------------------
Indicated 0.6 371,150,000 5,370,000 4,590,000 7,390,000
-------------------------------------------------------------------------
0.3 790,590,000 8,540,000 6,910,000 11,560,000
-------------------------------------------------------------------------
Measured
+ Indicated 0.6 472,680,000 6,820,000 8,150,000 10,390,000
-------------------------------------------------------------------------
0.3 917,150,000 10,160,000 10,700,000 14,850,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 0.6 12,950,000 170,000 100,000 210,000
-------------------------------------------------------------------------
0.3 78,240,000 630,000 450,000 830,000
-------------------------------------------------------------------------
Integrated Development Plan Underway
------------------------------------
The Integrated Development Plan will integrate data from the ongoing
open-pit feasibility study for the Southern Oyu deposits and the ongoing
pre-feasibility study for the block-caving operation at the Hugo North
Deposit. The new Hugo North resource estimate has been provided to McIntosh
Engineering of Phoenix, Arizona, leading international experts on block-cave
designs, for incorporation into an Economic Assessment of the Hugo North
Deposit. Preliminary indications are that the block cave will be initiated in
the high-grade copper and gold-rich core of Hugo North.
In light of the recent increases to the copper and gold resources on the
property and ongoing developments in mine planning, Ivanhoe's engineering team
believes that the original February, 2004, Preliminary Assessment Report no
longer represents a relevant economic analysis of the Oyu Tolgoi Project. The
engineering team believes the new Integrated Development Plan will present a
more relevant picture of the future development of the Oyu Tolgoi Project.
The current development strategy contemplates an initial 40-year mine life,
establishing production from open-pit operations located within the Southern
Oyu deposits and concurrently developing Hugo Dummett's underground resources
to commence underground block-cave mining operations as soon as possible.
Assuming timely completion of the Integrated Development Plan, positive
results from that study and the availability of project financing, Ivanhoe
expects that initial production from the Southern Oyu deposits could commence
in 2007, with some underground ore being milled in 2008 from Hugo North's
development activity. These plans remain subject to change based on unforeseen
circumstances.
Hugo Dummett Exploration Shaft (Shaft No.1)
-------------------------------------------
The surface construction work is now underway for the sinking of a
1,200-metre-deep shaft at the Hugo deposit. The work is being performed by the
Redpath Group of North Bay, Ontario, Canada, the world's leading shaft-sinking
firm. When completed, the shaft will provide access to both the Hugo North and
Hugo South Deposits for the purpose of completing detailed feasibility
studies, further resource delineation drilling, and rock characterization
work. The target completion date of the shaft-sinking is early-2007, with
underground drifting and drilling occurring in 2007 and early-2008.
Hugo North Expansion Details
----------------------------
The new AMEC Hugo North resource estimate is based on results from
156 drill holes, including daughter holes. This compares to 90 drill holes,
including daughter holes, used in AMEC's May, 2004, Hugo North resource
estimate. The deposit has been extended more than 450 metres north as three
150-metre-spaced, east-west oriented sections have been drilled north of the
514 series of holes which defined the northern limits of the last resource
update. Hole EGD006 is drilled on a section line approximately 150 additional
metres to the north of these sections.
The contained copper and gold within Hugo North has increased
dramatically since AMEC's May, 2004 estimate. The majority of the increase
resulted from the significant strike extension of the deposit to the
north/northeast. Substantial new resources also were added by the increasing
thickness of the deposit north of the 514 section to approximately 400 metres
(at a 0.60% copper equivalent cut-off), which are expected to enhance block-
cave characteristics and economics. In the southern portion of Hugo North, the
vertical extent of the mineralization also was increased, with the result that
column heights of the block-cave cells also will be increased.
The northeasterly bend in the northern extension of the Hugo Dummett
Deposit has resulted in a favourable deposit trend with respect to the late
West Bat and Boundary Faults. Recent drilling suggests that the northern
extension of the deposit is now subparallel to these structures, such that it
is open indefinitely to the northeast rather than structurally cut off as
previously believed. This premise is in part supported by the deep, subtle IP
feature noted above.
Recent deep drilling in holes OTD918H and OTD963E encountered high-grade
copper and gold mineralization in a later, potassium-rich phase of the quartz
monzodiorite. With gold-copper ratios approaching and exceeding 1:1 the depth
extent of the Hugo North Deposit is still open. OTD963E encountered 80 metres
grading 2.60 g/t gold and 1.96% copper (copper equivalent grade of 3.64%) at a
true depth of 1,570 metres below surface, while OTD918H encountered 140 metres
grading 1.14 g/t gold and 1.53% copper (2.27% copper equivalent) at a true
depth of 1,540 metres below surface.
Hugo North has now been drilled on spacings of approximately 125-metre
by 75-metre centres. This was accomplished on east-west oriented, 150-metre-
spaced and selected 75-metre to 50-metre spaced infill sections using navi-
drill technology to drill multiple holes from a single trunk hole. This
spacing has allowed AMEC to upgrade a significant portion of the resources
on the deposit to the Indicated classification.
Ivanhoe prioritized its infill drill program at Hugo North to focus on an
area identified as hosting at least the first seven years of block-cave mining
on the deposit, as well as a significant portion of the other relevant areas
identified as representing the first 14 years of an underground mine plan.
Hugo South has been drilled to approximately 100-metre by 100-metre spacing
for Inferred resources, with no additional drilling proposed for 2005. The
base of the first planned block caves at Hugo North is at an elevation of
approximately 1,230 metres below surface and will have a column height of up
to 500 metres, up to approximately 730 metres below surface.
Ivanhoe's drill program is now focused on testing the extent to which the
mineralized zone of Hugo North extends into the Ivanhoe-Entrée joint-venture
property, as well as testing satellite deposits and new targets throughout the
Oyu Tolgoi District.
Table 4: Hugo Dummett Deposit (Combined Hugo North and Hugo South
Deposits) Indicated and Inferred Resources at various copper equivalent
cut-off grades -- May 2005:
-------------------------------------------------------------------------
Grades Contained Metal
-------------------------------------------------------------------------
Cu Eq.
Resource Cut-off Tonnes Copper Gold Copper Copper Gold
Class (%) (%) (g/t) Eq. (%) ('000 lbs) (ozs)
-------------------------------------------------------------------------
Indicated 3.5 113,370,000 3.74 0.92 4.33 9,350,000 3,360,000
Resources ---------------------------------------------------------------
3.0 153,770,000 3.50 0.85 4.05 11,880,000 4,210,000
---------------------------------------------------------------
2.5 194,010,000 3.27 0.79 3.78 14,000,000 4,930,000
---------------------------------------------------------------
2.0 239,450,000 3.02 0.72 3.48 15,960,000 5,560,000
---------------------------------------------------------------
1.5 321,120,000 2.64 0.62 3.03 18,680,000 6,390,000
---------------------------------------------------------------
1.25 391,910,000 2.39 0.54 2.73 20,620,000 6,830,000
---------------------------------------------------------------
1.0 476,300,000 2.15 0.47 2.45 22,540,000 7,210,000
---------------------------------------------------------------
0.9 507,410,000 2.07 0.45 2.36 23,130,000 7,340,000
---------------------------------------------------------------
0.8 535,180,000 2.00 0.43 2.28 23,600,000 7,450,000
---------------------------------------------------------------
0.7 559,220,000 1.94 0.42 2.21 23,960,000 7,530,000
---------------------------------------------------------------
0.6 581,930,000 1.89 0.41 2.15 24,250,000 7,600,000
-------------------------------------------------------------------------
and, in
addition
-------------------------------------------------------------------------
Inferred 3.5 11,670,000 3.51 0.71 3.96 910,000 260,000
Resources ---------------------------------------------------------------
3.0 25,010,000 3.19 0.59 3.56 1,760,000 470,000
---------------------------------------------------------------
2.5 52,480,000 2.79 0.52 3.12 3,230,000 880,000
---------------------------------------------------------------
2.0 95,920,000 2.40 0.49 2.72 5,090,000 1,530,000
---------------------------------------------------------------
1.5 196,490,000 1.90 0.44 2.19 8,230,000 2,820,000
---------------------------------------------------------------
1.25 359,470,000 1.59 0.35 1.81 12,570,000 4,070,000
---------------------------------------------------------------
1.0 595,740,000 1.36 0.28 1.54 17,810,000 5,380,000
---------------------------------------------------------------
0.9 691,750,000 1.28 0.27 1.45 19,600,000 5,880,000
---------------------------------------------------------------
0.8 818,710,000 1.20 0.24 1.36 21,720,000 6,400,000
---------------------------------------------------------------
0.7 954,300,000 1.13 0.23 1.27 23,750,000 6,880,000
---------------------------------------------------------------
0.6 1,071,620,000 1.07 0.21 1.20 25,220,000 7,310,000
---------------------------------------------------------------
Table 5: Stand alone Hugo North Deposit Indicated and Inferred Resources
at various copper equivalent cut-off grades -- May 2005:
-------------------------------------------------------------------------
Grades Contained Metal
-------------------------------------------------------------------------
Cu Eq.
Resource Cut-off Tonnes Copper Gold Copper Copper Gold
Class (%) (%) (g/t) Eq. (%) ('000 lbs) (ozs)
-------------------------------------------------------------------------
Indicated 3.5 113,370,000 3.74 0.92 4.33 9,350,000 3,360,000
Resources ---------------------------------------------------------------
3.0 153,770,000 3.50 0.85 4.05 11,880,000 4,210,000
---------------------------------------------------------------
2.5 194,010,000 3.27 0.79 3.78 14,000,000 4,930,000
---------------------------------------------------------------
2.0 239,450,000 3.02 0.72 3.48 15,960,000 5,560,000
---------------------------------------------------------------
1.5 321,120,000 2.64 0.62 3.03 18,680,000 6,390,000
---------------------------------------------------------------
1.25 391,910,000 2.39 0.54 2.73 20,620,000 6,830,000
---------------------------------------------------------------
1.0 476,300,000 2.15 0.47 2.45 22,540,000 7,210,000
---------------------------------------------------------------
0.9 507,410,000 2.07 0.45 2.36 23,130,000 7,340,000
---------------------------------------------------------------
0.8 535,180,000 2.00 0.43 2.28 23,600,000 7,450,000
---------------------------------------------------------------
0.7 559,220,000 1.94 0.42 2.21 23,960,000 7,530,000
---------------------------------------------------------------
0.6 581,930,000 1.89 0.41 2.15 24,250,000 7,600,000
-------------------------------------------------------------------------
and, in
addition
-------------------------------------------------------------------------
Inferred 3.5 6,230,000 3.33 1.11 4.04 460,000 220,000
Resources ---------------------------------------------------------------
3.0 13,060,000 3.01 0.93 3.61 870,000 390,000
---------------------------------------------------------------
2.5 29,720,000 2.61 0.78 3.11 1,710,000 750,000
---------------------------------------------------------------
2.0 57,020,000 2.22 0.73 2.69 2,800,000 1,340,000
---------------------------------------------------------------
1.5 126,870,000 1.73 0.62 2.13 4,840,000 2,540,000
---------------------------------------------------------------
1.25 231,370,000 1.47 0.49 1.78 7,490,000 3,670,000
---------------------------------------------------------------
1.0 392,150,000 1.27 0.38 1.51 10,950,000 4,790,000
---------------------------------------------------------------
0.9 448,590,000 1.21 0.36 1.44 11,980,000 5,150,000
---------------------------------------------------------------
0.8 500,770,000 1.16 0.34 1.38 12,820,000 5,440,000
---------------------------------------------------------------
0.7 540,680,000 1.12 0.33 1.33 13,380,000 5,670,000
---------------------------------------------------------------
0.6 581,290,000 1.08 0.32 1.28 13,840,000 5,920,000
---------------------------------------------------------------
Limited drilling has been conducted in the Hugo South Deposit since
November, 2003. There are slight variations in AMEC's May, 2005, and May,
2004, Hugo South resource estimates due to a revised definition of the
separation of Hugo South and Hugo North (the north-dipping 110 degree fault).
Hugo South currently has only Inferred resources due to a lack of infill
drilling in this deposit.
Table 6: Stand alone Hugo South Deposit Inferred Resources at various
copper equivalent cut-off grades -- May 2005:
-------------------------------------------------------------------------
Grades Contained Metal
-------------------------------------------------------------------------
Cu Eq.
Resource Cut-off Tonnes Copper Gold Copper Copper Gold
Class (%) (%) (g/t) Eq. (%) ('000 lbs) (ozs)
-------------------------------------------------------------------------
Inferred 3.5 5,440,000 3.71 0.25 3.87 450,000 40,000
Resources ---------------------------------------------------------------
3.0 11,950,000 3.38 0.21 3.51 890,000 80,000
---------------------------------------------------------------
2.5 22,760,000 3.02 0.18 3.14 1,520,000 130,000
---------------------------------------------------------------
2.0 38,900,000 2.67 0.15 2.77 2,290,000 190,000
---------------------------------------------------------------
1.5 69,620,000 2.21 0.12 2.29 3,390,000 280,000
---------------------------------------------------------------
1.25 128,100,000 1.80 0.10 1.86 5,080,000 400,000
---------------------------------------------------------------
1.0 203,590,000 1.53 0.09 1.59 6,860,000 590,000
---------------------------------------------------------------
0.9 243,160,000 1.42 0.09 1.48 7,620,000 730,000
---------------------------------------------------------------
0.8 317,940,000 1.27 0.09 1.33 8,900,000 960,000
---------------------------------------------------------------
0.7 413,620,000 1.14 0.09 1.20 10,370,000 1,210,000
---------------------------------------------------------------
0.6 490,330,000 1.05 0.09 1.11 11,380,000 1,390,000
---------------------------------------------------------------
Charles Forster, P.Geo., Ivanhoe Mines' Turquoise Hill Manager, and
Stephen Torr, Ivanhoe Mines' Chief Resource Geologist, qualified persons as
defined by NI 43-101, supervised the preparation of the information in this
release. SGS Analabs Pty. Ltd. 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. Prepared standards and blanks
are inserted at the sample preparation lab on the project site to monitor the
quality control of the assay data.
Ivanhoe owns 100% of the Oyu Tolgoi Project. The company owns or controls
exploration rights covering approximately 130,000 square kilometres in
central, southern and northeastern Mongolia. Ivanhoe also produces LME Grade A
99.999% copper from its Monywa joint venture in Myanmar.
Ivanhoe shares are listed on the New York and Toronto stock exchanges
under the symbol IVN.
Forward-Looking Statements: Statements in this release that are
forward-looking statements are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading "Risk Factors"
and elsewhere in the corporation's periodic filings with Canadian and US
securities regulators. When used in this document, the words such as "could,"
"plan," "estimate," "expect," "intend," "may," "potential," "should," and
similar expressions are forward-looking statements. The risk factors that
could cause actual results to differ from these forward-looking statements
include, but are not restricted to, the planned shaft sinking and underground
tunneling, additional drilling, the Integrated Development Study, and mine
development at the Oyu Tolgoi project, operational risk, environmental risk,
financial risk, geo-political risk, commodity risk, currency risk and other
statements that are not historical facts as disclosed under the heading "Risk
Factors" and elsewhere in the corporation's periodic filings with securities
regulators in Canada and the United States.
>>
For further information: 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
newswire.ca and click on reports@cnw. |
