Ivanhoe more than doubles Mongolian landholdings

In one fell swoop Ivanhoe Mines (IVN-T) has more than doubled its package of land in southern Mongolia with the acquisition of new mineral licences covering an additional 17,930 sq. km.

Ivanhoe is now the largest landholder of any mineral exploration company in Mongolia with mineral rights to a total of 33,600 sq. km.

The new licences were acquired based on data gathered during extensive field investigations of more than 350 mineral occurrences throughout Mongolia over the past five years.

Ivanhoe’s vice president of exploration, Douglas Kirwin said, “Our new exploration licences were acquired because they include large tracts of ground covering, and surrounding, prospective porphyry targets with similar geological characteristics as our Turquoise Hill gold-copper discovery. The presence of extensive high sulphidation lithocaps and numerous mineralized skarns indicate varying levels of erosion of porphyry systems within our newly acquired licences. This implies potential for a spectrum of epithermal and porphyry related targets throughout the region.”

Geologic mapping, sampling and geophysical surveys are underway to better delineate porphyry targets identified on the licences. Drilling on several of the new targets is slated for April.

Ivanhoe recently completed its earn-in of 100% interest in 238-sq.-km Turquoise Hill gold-copper property in Mongolia from BHP Billiton (BHP-N), by completing a US$3-million first phase exploration program and paying BHP Billiton US$5 million. Ivanhoe must still complete a US$3-million second phase of exploration. BHP Billiton retains a 2% net smelter returns royalty, plus a back in right on certain mineralization identified prior to the completion of the second phase program.

Exploration at Turquoise Hill has been centred on the Southwest Oyu zone, one of four zones identified so far. Current drilling at Southwest Oyu is designed to provide data for a resource estimate for the first of a number of potential open pits within the 3-by-4-km core of the Turquoise Hill project area.

The latest drill results from Ivanhoe’s Turquoise Ridge copper-gold porphyry discovery in the Southwest Oyu zone indicate high grades and considerable size potential. (T.N.M., Feb. 4-10/02).