Vancouver — Accelerated exploration and development spending at its Oyu Tolgoi copper-gold deposit in southern Mongolia pushed Ivanhoe Mines (ivn-t, ivn-t) deeper into the red in the second quarter, resulting in a US$40.3-million loss (12 per share).
The company is fine-tuning development plans at Oyu Tolgoi, looking to use proven technologies to mitigate any potential production and technical risks.
Shaft 1 has reached the 400-metre level towards its target depth of 1,340 metres. A “starter underground mine” is being tabled to come on-stream at the Hugo North deposit, employing sublevel block caving methods, shortly after initial open-pit mining begins in the southern deposits. Revenue from the operation would contribute to larger-scale block caving at the high-grade deeper zone.
Despite the Mongolian government’s indecisive mineral tax and investment structure, Ivanhoe is aiming to have all necessary development approvals in hand by the end of the year. Initial production is anticipated within 30 months of those approvals, for a target date of mid-2009.
The company reports ongoing discussions with a number of potential industry partners for development of the mega-project.
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