26 November 2002 16:50
Drilling expands significant copper-gold porphyry system at Ivanhoe's Kharmagtai project in Mongolia
ULAANBAATAR, MONGOLIA, Nov. 26 /CNW/ - Ivanhoe Mines' Chairman Robert Friedland and Executive Vice-President,
Exploration, Douglas Kirwin announced today that ongoing exploration at Kharmagtai has outlined a significant copper-
gold porphyry system that is geologically similar to the gold-rich copper porphyry zones at Ivanhoe's Turquoise
Hill (Oyu Tolgoi) discovery, 120 kilometres to the southeast. Ivanhoe now has six drill rigs working to test seven
priority copper-gold porphyry targets at Kharmagtai and an extensive gold target at the adjoining Ovoot Hyar licence.
The selection of the drill targets was based on their geological and geophysical similarities to the zones of high-grade
gold and copper porphyry mineralization that Ivanhoe has found at Turquoise Hill. The principal targets of current
drilling at Kharmagtai are known as Copper Hill (Zesen Uul) and Gold Hill (Altai Tolgoi). In July, Ivanhoe announced
that two initial drill holes at Copper Hill had encountered high- grade gold and copper mineralization: 74 metres of
2.24 g/t gold and 1.16% copper in hole KHD002; and 102 metres grading 2.09 g/t gold and 1.05% copper, including 46
metres grading 3.98 g/t gold and 1.59% copper, in hole KHD003. Important new intercepts in holes drilled since July
include 82 metres grading 1.48 g/t gold and 0.85% in hole KHD022; 82 metres grading 1.23 g/t gold and 0.74% copper in
hole KHD021; and 58 metres grading 0.98 g/t gold and 0.67% copper in hole KHD016. Other significant drill intercepts are
listed in the table below. Targets within the 100-square-kilometre Kharmagtai/Ovoot Hyar licence area that will be
drilled in the coming months include Duck (Galau), White Vein (Tsagan Sudal), Wolf (Chun), Eagle (Burgit) and OV3
(Hartsaga). OV3, a gold target, is comprised of a series of tourmaline breccia pipes with highly anomalous rock-chip
gold assays. Copper Hill (Zesen Uul) Prospect Twenty-eight diamond-drill holes have been completed at Copper Hill.
Highlights, for which assays are available, include: <<
-------------------------------------------------------------- From To Interval Gold Copper Hole (m) (m) (m) (g/t) (%)
-------------------------------------------------------------- KHD002 72 140 74 2.24 1.16
-------------------------------------------------------------- KHD003 40 142 102 2.09 1.05
-------------------------------------------------------------- KHD006 108 290 182 0.52 0.47
-------------------------------------------------------------- KHD008 22 100 78 0.51 0.61
-------------------------------------------------------------- KHD016 140 198 58 0.98 0.67
-------------------------------------------------------------- KHD021 36 118 82 1.23 0.74
-------------------------------------------------------------- KHD022 100 182 82 1.48 0.85
-------------------------------------------------------------- KHD026 118 220 102 0.56 0.38
-------------------------------------------------------------- KHD030 104 162 58 0.63 0.50
-------------------------------------------------------------- >> Complete assay results from all of the holes, as
well as cross-sections and drill-plan maps, are posted in the Kharmagtai Project section on the company's website
at www.ivanhoemines.com. The holes define an east-west-trending zone of gold and copper mineralization greater than 250
metres in length and up to 120 metres wide. Drilling indicates that high-grade mineralization occurs within 30 metres of
surface, extends at least 250 metres below surface and remains open in all directions. Initial geological modelling
suggests that fingers of a monzodiorite stock are intruded into a volcanoclastic, siltstone package, and appear to
represent the top of the system. An intense stockwork of quartz- chalcopyrite veins is developed within the monzodiorite
and locally within the siltstone. Native copper and chalcocite are present within stockworks in the upper 50 metres of
several holes. Mineralization does not outcrop at surface and a trenching and reverse-circulation (RC) drilling program
has commenced to define the zone's strike extension. Three diamond-drill rigs are currently testing this prospect.
Results from an initial petrological study of core from Copper Hill indicate that the gold occurs along fractures and
voids within chalcopyrite grains and is similar to the gold at the high-grade Southwest Zone at Turquoise Hill.
Geological mapping, rock-chip sampling and trenching of Copper Hill and surrounding prospects indicate that copper and
gold mineralization is widespread and suggest that a relatively large hydrothermal system was active at Kharmagtai. Gold
Hill (Altai Tolgoi) Prospect The Gold Hill Prospect is approximately two kilometres due north of Copper Hill. Quincunx
Gold Exploration Ltd. (now QGX Ltd.), the former Kharmagtai licence holder, drilled several holes at the prospect in
1997. Quincunx reported intercepts of 40 metres at 2.01 g/t gold and 0.60% copper from 87 metres in hole DDH97-01, and
50.5 metres at 1.65 g/t gold and 0.67% copper from 126.5 metres in hole DDH97-07. Relogging of the Quincunx core by
Ivanhoe geologists has indicated that most of the gold and copper mineralization is hosted in monzodiorites and
diorites, and occurs in strongly developed stockworks of quartz-chalcopyrite-pyrite veins that appear similar to
mineralization at Copper Hill. The presence of chalcopyrite-mineralized breccias in the deeper intervals of some holes
is considered by Ivanhoe's geological staff to be highly significant. The Gold Hill Prospect has a field magnetic
response similar to Copper Hill's, characterized by a broadly east-west-trending zone up to 1,200 metres long, with
localized, intense, elongated magnetic highs up to 200 metres long. A moderate chargeability anomaly (15-30 mv/v) occurs
immediately to the north. The two diamond-drill holes completed to date by Ivanhoe at Gold Hill have intersected
well-developed chalcopyrite, mineralized quartz stockworks and breccias. A trenching program has defined an extensive
zone of malachite staining, suggesting good strike continuity. Assays are pending. Duck (Galau) Prospect The Duck
Prospect, approximately two kilometres west of Copper Hill, is defined by a large chargeability anomaly that has a
strike length of almost two kilometres and a width of up to 500 metres. It has a varied field magnetic response.
Trenching on the eastern margin of the anomaly has opened up a broad zone of copper and gold mineralization. Initial RC
drill testing of this prospect is underway. Eagle (Burgit) Prospect The Eagle Prospect is 12 kilometres west-southwest
of Copper Hill. It is comprised of a series of monzodiorite/diorite stocks hosting quartz stockworks. A strong
induced-polarization anomaly with coincident magnetic highs define a broadly east-west-trending zone with a strike
length of three kilometres and a width of up to 400 metres, which coincides with an extensive gold, copper and
molybdenum rock-chip and soil anomaly. Almost five kilometres of trenches have been completed and initial assays have
returned up to 234 metres averaging 0.56 g/t gold, with associated anomalous copper and highly anomalous molybdenum.
Additional assays are pending. An extensive trenching program is underway to define the ultimate strike length of this
zone before RC drilling starts. Four diamond-drill rigs and two multi-purpose RC/diamond-drill rigs are working at
Kharmagtai. The multi-purpose rigs are drilling at the Copper Hill, Gold Hill and Duck prospects to accelerate the
diamond-drilling program. Ivanhoe holds a 90% interest in the Kharmagtai exploration licence; QGX holds the remaining
10%. Chris Wilson, a qualified person as defined by National Instrument 43- 101, is overseeing the company's
exploration work at the Kharmagtai and Ovoot Hyar projects and supervised the preparation of the information in this
release. SGS Analabs Pty Ltd prepares the split core and assays all samples at its facility in Ulaanbaatar, Mongolia.
Ivanhoe inserts prepared standards and blanks at the sample preparation lab on the project site to monitor the quality
control of the assay data. Ivanhoe holds mineral licences covering 82,770 square kilometres (31,950 square miles) in
Mongolia and is continuing to review new exploration opportunities. The exploration drilling and trenching program
outside Ivanhoe's main Turquoise Hill Project so far has focused on the Kharmagtai and OV3 prospects. Other
high-priority targets that Ivanhoe plans to drill in 2003 include Oyut Ulaan, Chandman Uul, Oyut Ovoo, Shuteen and Saran
Uul. Ivanhoe shares are listed on the Toronto and Australian 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 securities regulators. Such information contained herein represents
management's best judgment as of the date hereof based on information currently available. The company does not
assume the obligation to update any forward-looking statement.
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/cgi-bin/inquiry.cgi?OKEY=96134 /For further
information: In North America: Investors: Bill Trenaman; Media: Bob Williamson, (604) 688-5755; To request a free copy
of this organization's annual report, please go to http://www.newswire.ca and click on reports(at)cnw./ (IVN.)
[CAIW [Corporate Announcements Intelligence Wire]] |
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