Ivanhoe cuts more high-grade in Mongolia

Vancouver — Ivanhoe Mines (IVN-T) has cut more high-grade gold and copper in drill hole KH003 at the Kharmagtai project in Mongolia’s South Gobi region.

Ivanhoe’s third exploration drill hole at Kharmagtai, cut 102 metres grading 2.09 grams gold per tonne and 1.05% copper, starting at a down-hole depth of 40 metres. This included a 46-metre section grading 3.98 grams gold and 1.59% copper. The hole also intersected another zone of mineralization, starting 166 metres down-hole, grading 1.49 grams gold and 0.94% copper. The company reports that KH003 is situated approximately 80 metres southeast of KH002, whichintersected 74 metres grading 2.24 grams gold and 1.16% copper, including 12 metres grading 4.41 grams gold and 1.62% copper.

The drilling confirms the discovery of a significant zone of high-grade, porphyry-hosted, gold and copper mineralization similar in style to the high-grade zones at the company’s Turquoise Hill Discovery, 120 km to the south.

Ivanhoe is currently drilling KH004, which was collared about 70 metres south of KH003. At last report the hole had reached a depth of 145 metres and intersected altered monzodiorite and host sediments. Chalcopyrite was first encountered at a down-hole depth of 89.2 metres, and the hole has remained in mineralization to its current depth. Mineralization consists of quartz veining with visible chalcopyrite, pyrite and rare native copper with associated strong magnetite, secondary biotite and tourmaline alteration similar to that encountered in KH002 and KH003.

The mineralized zone at Kharmagtai is outlined by a minor magnetic feature that lies within a larger group of magnetic anomalies identified within a 3-by-2 km area. Each of these magnetic anomalies represents a target that has porphyry-style alteration and in many cases a coincident induced polarization anomaly.

In addition to the Kharmagtai target, Ivanhoe also has defined three additional copper-gold porphyry targets; Stockwork Hill, Chun (Mongolian for “wolf”) and Ovoot Hyar. The company also has identified a sediment-hosted gold target dubbed OV3. Recent trench sampling at the OV3 prospect encountered visible gold hosted in altered sediments and jasperoid replacement mineralization. Visible gold also has been observed within quartz stockwork mineralization at the Stockwork Hill and Chun prospects.

The company is in the midst of a rotary drill program at OV3. To date, 8 shallow holes, averaging approximately 100 metres in depth have been completed to date. Drilling indicates widespread silicification in volcanoclastic sandstones and siltstones centered over a very large induced polarization anomaly.

Ivanhoe holds mineral rights to more than 51,600 sq. km in Mongolia, most of which is within the South Gobi porphyry belt. Other high-priority targets within the belt that Ivanhoe plans to drill-test this year include Shuteen, Oyut Ulaan, Chandman Uul, Oyut Ovoo and Saran Uul.