Ivanhoe expands discovery zone at Turquoise Hill

Ivanhoe Mines (IVN-T) has released results from five holes on three contiguous mineralized zones at the Turquoise Hill project in southern Mongolia.

Two holes were collared on the Discovery zone, a high-grade gold and copper-rich porphyry body measuring 250 by 5,000 metres. The mineralization extends 500 metres below surface and is hosted in quartz sulphide stockworks in andesite porphyry and monzodiorite porphyry.

Hole 169 returned 507 metres grading 0.8 gram gold per tonne and 0.48% copper, including 134 metres of 1.36 grams gold and 0.62% copper. Hole 171 cut 290 metres running 0.73 gram gold and 0.43% copper, including 100 metres of 1.29 grams gold gold and 0.67% copper. The holes confirm the grade and continuity in the Discovery zone.

The drilling confirms that mineralization is open to the northeast, beyond the limits of the induced-polarization (IP) anomaly, and to the southeast, beyond a major northeast-trending fault system. Drilling is ongoing, and assay results are pending for another seven holes.

To the southwest, three stepout holes tested for extensions to the Discovery zone.

Results include:

– 466 metres grading 0.31 gram gold and 0.41% copper in hole 165;

– 318 metres grading 0.52 gram gold and 0.49% copper in hole 167; and

– 382 metres of 0.3 gram gold and 0.21% copper in hole 168.

The holes indicate that pervasive copper and gold mineralization extends southwest of the Discovery zone for at least an additional 600 metres. The holes were collared outside the main IP chargeability high and were designed to test the coincident magnetic anomalies that trend southwest of the Discovery zone. Follow-up drilling will focus on the adjacent IP high.

Previous drilling by BHP (now BHP Billiton [BHP-N]) in the area cut 142 metres of 0.93 gram gold and 0.53% copper.

Finally, two holes tested the South Oyu zone, an IP anomaly measuring 300 by 800 metres. Hole 164 cut 204 metres running 0.06 gram gold and 0.49% copper and is highlighted by 18 metres of 0.65 gram gold and 0.36% copper. Hole 170 returned 88.1 metres of 0.16 gram gold and 0.28% copper, plus 163.5 metres of 0.12 gram gold and 0.4% copper.

The South Oyu target is characterized by adjacent magnetic and IP anomalies that underlie outcropping copper oxide mineralization. Previous shallow drilling by Ivanhoe outlined higher-grade copper and gold mineralization, with gold grades of up to 0.38 gram and copper values in the region of 1.73%.

The South zone is thought to represent an offset of the Southwestern Oyu zone, displaced by a regional northeast-trending fault. Further drilling is planned.

Ivanhoe can acquire Turquoise Hill by spending US$6 million on exploration and paying US$5 million to BHP Billiton.

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