Copper contained in Measured and Indicated resources increases by
more than 350% at Ivanhoe's Oyu Tolgoi Project Ivanhoe plans to
develop Oyu Tolgoi into one of the world's largest copper and gold
mines ULAANBAATAR, Mongolia, May 3 /PRNewswire-FirstCall/ --
Ivanhoe Mines' Chairman Robert Friedland and President John Macken
announced today that a new, independent estimate prepared by AMEC
Americas Limited, based on drilling to April, 2005, has
dramatically increased the copper and gold contained in Measured
and Indicated resources at the company's Oyu Tolgoi (Turquoise
Hill) Project in southern Mongolia. The new AMEC report estimates
that the project now contains Measured and Indicated resources
totalling 1.15 billion tonnes grading 1.30% copper and 0.47 grams
per tonne (g/t) gold (a copper equivalent grade of 1.54%),
containing 32.9 billion pounds of copper and 17.3 million ounces of
gold, at a 0.60% copper equivalent cut-off. The new estimate
represents a 125% increase in Measured and Indicated tonnes, a 357%
increase in contained copper and an 85% increase in contained gold
since AMEC's last resource estimate eight months ago, in August,
2004. In addition to the Measured and Indicated resources, AMEC now
estimates that the Oyu Tolgoi Project contains Inferred resources
of 1.16 billion tonnes grading 1.02% copper and 0.23 g/t gold (a
copper equivalent grade of 1.16%), at a 0.60% copper equivalent
cut-off, containing approximately 26.2 billion pounds of copper and
8.4 million ounces of gold. Total Oyu Tolgoi Measured, Indicated
and Inferred resources based on a 0.60% copper equivalent cut-off
-- May, 2005:
-------------------------------------------------------------------------
Copper Gold Copper Equiv. Oyu Tolgoi Resources Grade Grade Grade
Total Deposit (tonnes) (%) (g/t) (%)
-------------------------------------------------------------------------
Total Measured 101,590,000 0.64 1.10 1.34
-------------------------------------------------------------------------
Total Indicated 1,047,570,000 1.33 0.42 1.59
-------------------------------------------------------------------------
Total Measured + Indicated 1,149,160,000 1.30 0.47 1.54
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Total Inferred 1,160,120,000 1.02 0.23 1.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal -------------------------------------- Oyu Tolgoi
Resources Copper Gold Copper Equiv. Total Deposit (tonnes) ('000
lbs) (ounces) ('000 lbs)
-------------------------------------------------------------------------
Total Measured 101,590,000 1,440,000 3,580,000 3,010,000
-------------------------------------------------------------------------
Total Indicated 1,047,570,000 30,610,000 14,070,000 36,740,000
-------------------------------------------------------------------------
Total Measured + Indicated 1,149,160,000 32,850,000 17,340,000
38,980,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Total Inferred 1,160,120,000 26,200,000 8,400,000 29,780,000
-------------------------------------------------------------------------
The vast majority of the increase in the copper and gold resources
at Oyu Tolgoi resulted from upgrading and expanding the underground
copper and gold resources in the high-grade Hugo North Deposit, the
northern part of the Hugo Dummett Deposit. Ivanhoe's drilling has
now extended the strike length of the high-grade Hugo North deposit
to greater than 1.8 kilometres. Hugo North is part of the
3.0-plus-kilometre-long Hugo Dummett Deposit, which in turn is part
of the 6.1-kilometre-long chain of copper and gold porphyry
deposits defined to date by Ivanhoe at Oyu Tolgoi. AMEC's new
estimate confirms that the Hugo Dummett Deposit, alone, now
contains Indicated resources of 582 million tonnes grading 1.89%
copper and 0.41 g/t gold (a copper equivalent grade of 2.15%) at a
0.60% copper equivalent cut-off, containing: - approximately 24.3
billion pounds (11 million tonnes) of copper; and - 7.6 million
ounces of gold. In addition to the Indicated resources, the Hugo
Dummett Deposit contains Inferred resources of 1.07 billion tonnes
grading 1.07% copper and 0.21 g/t gold (a copper equivalent grade
of 1.20%) at a 0.60% copper equivalent cut- off, containing: -
approximately 25.2 billion pounds (11.4 million tonnes) of copper;
and - 7.3 million ounces of gold. The new estimates were
independently prepared in accordance with the requirements set out
in National Instrument 43-101 by AMEC under the direction of Dr.
Harry Parker, Ch. P. Geol., and Dr. Stephen Juras, P.Geo.,
independent qualified persons. The detailed results and geological
models from the new AMEC resource estimate will be incorporated
into the Integrated Development Plan (IDP) for the Oyu Tolgoi
Project, which is scheduled to be completed near the end of the
second quarter. The IDP will provide details on the planned
development of a world-class new copper and gold mining complex at
Oyu Tolgoi, incorporating a large open-pit mine and at least two
very large underground block cave mines. Hugo North High-Grade Core
Expanded ----------------------------------- Most of the
previously-classified Inferred resources contained in the
high-grade core that stretches the entire 1.8-kilometre strike
length of Hugo North have been upgraded to Indicated resources,
which now total 239 million tonnes grading 3.02% copper and 0.72
g/t gold (a copper equivalent grade of 3.48%). Hugo North also has
additional Inferred resources totalling 57 million tonnes grading
2.22% copper and 0.73 g/t gold (a copper equivalent grade of
2.69%). At the 2% copper equivalent cut-off grade, the deposit now
contains approximately 16 billion pounds (7.2 million tonnes) of
copper and 5.6 million ounces of gold in Indicated resources, plus
an additional 2.8 billion pounds (1.3 million tonnes) of copper and
1.3 million ounces of gold in Inferred resources. At a 1% copper
equivalent cut-off grade, the Hugo North Deposit now contains
Indicated resources totalling 476 million tonnes grading 2.15%
copper and 0.47 g/t gold (a copper equivalent grade of 2.45%), and
Inferred resources totalling 392 million tonnes grading 1.27%
copper and 0.38 g/t gold (a copper equivalent grade of 1.51%). This
is equivalent to approximately 22.5 billion pounds (10.2 million
tonnes) of copper and 7.2 million ounces of gold in Indicated
resources, plus an additional 11 billion pounds (5 million tonnes)
of copper and 4.8 million ounces of gold in Inferred resources. The
remarkable increase over the last year in the tonnes and grade of
the Hugo North Deposit, which is now the highest-grade copper
porphyry deposit ever discovered, is attributed to an aggressive
campaign of infill and step- out drilling, guided by a thorough
understanding of the geology and mineralization controls combined
with state-of-the-art geophysics. The recent completion of hole
EGD006, five metres north of the Entree Gold-Ivanhoe joint-venture
boundary intersected 216 metres, starting at a depth of 1,008
metres, grading 2.95% copper and 1.35g/t gold (copper equivalent
grade of 3.83%), including 110 metres grading 4.58% copper and 2.02
g/t gold (copper equivalent grade of 5.89%). The hole was collared
155 metres north of the northern-most east-west section of drill
holes used in the new resource update, the OTD976 series and
OTD977. The EGD006 drill hole shows a pronounced north-east swing
in the strike direction of the deposit with the effect of making
the intersection approximately 300 metres along strike of the
high-grade mineralization in hole OTD976A. The high-grade copper
and gold interval intersected in this hole was not used in the
current Hugo North resource estimate, with the result that the
resource block model extended only to the property boundary. On the
Entree Gold-Ivanhoe Mines joint-venture property, four drill rigs
are currently testing the possible extension of the Hugo North
Deposit northeast from EGD006 with 150-metre to 450-metre step outs
from the boundary. Drill holes are targeting a deep, subtle Induced
Polarization (IP) feature which may reflect the continuation of
Hugo North mineralization. Table 2: Total Oyu Tolgoi Resources
based on a 0.60% copper equivalent cut-off -- May, 2005:
-------------------------------------------------------------------------
Resources Copper Gold Copper Equiv. Deposit (tonnes) (%) (g/t) (%)
-------------------------------------------------------------------------
Southern Oyu Deposits
-------------------------------------------------------------------------
Measured 101,590,000 0.64 1.10 1.34
-------------------------------------------------------------------------
Indicated 465,640,000 0.62 0.43 0.89
-------------------------------------------------------------------------
Measured + Indicated 567,230,000 0.62 0.55 0.97
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 88,500,000 0.47 0.41 0.73
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Hugo Dummett Deposits
-------------------------------------------------------------------------
Indicated (Hugo North) 581,930,000 1.89 0.41 2.15
-------------------------------------------------------------------------
Inferred (Hugo North and South) 1,071,620,000 1.07 0.21 1.20
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oyu Tolgoi Project Grand Total:
-------------------------------------------------------------------------
Measured 101,590,000 0.64 1.10 1.34
-------------------------------------------------------------------------
Indicated 1,047,570,000 1.33 0.42 1.59
-------------------------------------------------------------------------
Measured + Indicated 1,149,160,000 1.30 0.47 1.54
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 1,160,120,000 1.02 0.23 1.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal -------------------------------------- Resources
Copper Gold Copper Equiv. Deposit (tonnes) ('000 lbs) (ounces)
('000 lbs)
-------------------------------------------------------------------------
Southern Oyu Deposits
-------------------------------------------------------------------------
Measured 101,590,000 1,440,000 3,580,000 3,010,000
-------------------------------------------------------------------------
Indicated 465,640,000 6,360,000 6,400,000 9,150,000
-------------------------------------------------------------------------
Measured + Indicated 567,230,000 7,810,000 9,980,000 12,170,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 88,500,000 920,000 1,170,000 1,430,000
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Hugo Dummett Deposits
-------------------------------------------------------------------------
Indicated (Hugo North) 581,930,000 24,250,000 7,600,000 27,580,000
-------------------------------------------------------------------------
Inferred (Hugo North and South) 1,071,620,000 25,220,000 7,310,000
28,350,000
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Oyu Tolgoi Project Grand Total:
-------------------------------------------------------------------------
Measured 101,590,000 1,440,000 3,580,000 3,010,000
-------------------------------------------------------------------------
Indicated 1,047,570,000 30,610,000 14,070,000 36,740,000
-------------------------------------------------------------------------
Measured + Indicated 1,149,160,000 32,850,000 17,340,000 38,980,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 1,160,120,000 26,200,000 8,400,000 29,780,000
-------------------------------------------------------------------------
The footnotes below apply to all resource tables within this
release. 1) Copper equivalent grades have been calculated using
assumed metal prices of US$0.80/lb. for copper and US$350/oz. for
gold. 2) The contained gold and copper represent estimated
contained metal in the ground and have not been adjusted for the
metallurgical recoveries of gold and copper. The determination of
an adjustment factor to account for differences in relative
metallurgical recoveries between gold and copper will depend upon
the completion of definitive metallurgical testing. 3) Resource
classifications conform to CIM Standards on Mineral Resources and
Reserves referred to in National Instrument 43-101. Mineral
resources that are not reserves do not have demonstrated economic
viability. Measured and Indicated mineral resources are that part
of a mineral resource for which quantity and grade can be estimated
with a level of confidence sufficient to allow the application of
technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. An Inferred
mineral resource is that part of a mineral resource for which
quantity and grade can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not
verified. Southern Oyu Deposits --------------------- A total of
584 drill holes were used in the new resource estimate including 45
additional drill holes since the August 2004 AMEC estimate, which
were drilled into the Southern Oyu deposits to further upgrade
Inferred resources into Indicated resources for the upcoming
Integrated Development Plan. The new AMEC estimate increased the
Measured and Indicated resources (at a 0.60% copper equivalent
cut-off) in the Southern Oyu deposits by approximately 10%. Recent
drilling added new resources in the Wedge and South Oyu areas, plus
the Bridge and Southwest Oyu areas along the West Bounding Fault.
The new drilling in the main Southwest Oyu gold zone upgraded
additional Indicated resources to the Measured category. To be
consistent with previous AMEC resource estimates, the Southern Oyu
resources quoted in Tables 1 & 2 above are based on a global
resource above cut-off grade, without the constraint of an open-pit
or underground block-cave mining shape. As guide to the
reasonableness of future open-pit mining operations, the Measured
and Indicated resources have been recast using an ultimate
life-of-mine open-pit optimization shell (at a 0.3% copper
equivalent cut-off and using US$1.00 copper and US$400 gold)
produced from mine planning by GRD Minproc Limited of Australia.
The Measured and Indicated in-pit resources summarized in Table 3
for the Southern Oyu deposits now stand at 917 million tonnes
grading 0.50% copper and 0.36 g/t gold (copper equivalent grade of
0.73%), containing 10.2 billion pounds of copper and 10.7 million
ounces gold, which could possibly be extracted over the projected
life of the 735-metre deep open pit. It should be noted that there
is potential to extract additional resources at a later date by
bulk underground mine methods below the open pit. Table 3: Stand
alone Southern Oyu deposits resources in ultimate pit based on
0.60% and 0.30% copper equivalent cut-offs -- May, 2005:
-------------------------------------------------------------------------
CuEq Copper Gold CuEq Cut-off Resources Grade Grade Grade Deposit
(%) (tonnes) (%) (g/t) (%)
-------------------------------------------------------------------------
Southern Oyu Deposits
-------------------------------------------------------------------------
Measured 0.6 101,530,000 0.65 1.09 1.34
-------------------------------------------------------------------------
0.3 126,560,000 0.58 0.93 1.18
-------------------------------------------------------------------------
Indicated 0.6 371,150,000 0.66 0.38 0.90
-------------------------------------------------------------------------
0.3 790,590,000 0.49 0.27 0.66
-------------------------------------------------------------------------
Measured + Indicated 0.6 472,680,000 0.65 0.54 1.00
-------------------------------------------------------------------------
0.3 917,150,000 0.50 0.36 0.73
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 0.6 12,950,000 0.59 0.23 0.74
-------------------------------------------------------------------------
0.3 78,240,000 0.37 0.18 0.48
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contained Metal CuEq ---------------------------------- Cut-off
Resources Copper Gold Copper Equiv. Deposit (%) (tonnes) ('000 lbs)
(ounces) ('000 lbs)
-------------------------------------------------------------------------
Southern Oyu Deposits
-------------------------------------------------------------------------
Measured 0.6 101,530,000 1,450,000 3,560,000 3,000,000
-------------------------------------------------------------------------
0.3 126,560,000 1,620,000 3,780,000 3,290,000
-------------------------------------------------------------------------
Indicated 0.6 371,150,000 5,370,000 4,590,000 7,390,000
-------------------------------------------------------------------------
0.3 790,590,000 8,540,000 6,910,000 11,560,000
-------------------------------------------------------------------------
Measured + Indicated 0.6 472,680,000 6,820,000 8,150,000 10,390,000
-------------------------------------------------------------------------
0.3 917,150,000 10,160,000 10,700,000 14,850,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 0.6 12,950,000 170,000 100,000 210,000
-------------------------------------------------------------------------
0.3 78,240,000 630,000 450,000 830,000
-------------------------------------------------------------------------
Integrated Development Plan Underway
------------------------------------ The Integrated Development
Plan will integrate data from the ongoing open-pit feasibility
study for the Southern Oyu deposits and the ongoing pre-feasibility
study for the block-caving operation at the Hugo North Deposit. The
new Hugo North resource estimate has been provided to McIntosh
Engineering of Phoenix, Arizona, leading international experts on
block-cave designs, for incorporation into an Economic Assessment
of the Hugo North Deposit. Preliminary indications are that the
block cave will be initiated in the high-grade copper and gold-rich
core of Hugo North. In light of the recent increases to the copper
and gold resources on the property and ongoing developments in mine
planning, Ivanhoe's engineering team believes that the original
February, 2004, Preliminary Assessment Report no longer represents
a relevant economic analysis of the Oyu Tolgoi Project. The
engineering team believes the new Integrated Development Plan will
present a more relevant picture of the future development of the
Oyu Tolgoi Project. The current development strategy contemplates
an initial 40-year mine life, establishing production from open-pit
operations located within the Southern Oyu deposits and
concurrently developing Hugo Dummett's underground resources to
commence underground block-cave mining operations as soon as
possible. Assuming timely completion of the Integrated Development
Plan, positive results from that study and the availability of
project financing, Ivanhoe expects that initial production from the
Southern Oyu deposits could commence in 2007, with some underground
ore being milled in 2008 from Hugo North's development activity.
These plans remain subject to change based on unforeseen
circumstances. Hugo Dummett Exploration Shaft (Shaft No.1)
------------------------------------------- The surface
construction work is now underway for the sinking of a
1,200-metre-deep shaft at the Hugo deposit. The work is being
performed by the Redpath Group of North Bay, Ontario, Canada, the
world's leading shaft-sinking firm. When completed, the shaft will
provide access to both the Hugo North and Hugo South Deposits for
the purpose of completing detailed feasibility studies, further
resource delineation drilling, and rock characterization work. The
target completion date of the shaft-sinking is early-2007, with
underground drifting and drilling occurring in 2007 and early-2008.
Hugo North Expansion Details ---------------------------- The new
AMEC Hugo North resource estimate is based on results from 156
drill holes, including daughter holes. This compares to 90 drill
holes, including daughter holes, used in AMEC's May, 2004, Hugo
North resource estimate. The deposit has been extended more than
450 metres north as three 150-metre-spaced, east-west oriented
sections have been drilled north of the 514 series of holes which
defined the northern limits of the last resource update. Hole
EGD006 is drilled on a section line approximately 150 additional
metres to the north of these sections. The contained copper and
gold within Hugo North has increased dramatically since AMEC's May,
2004 estimate. The majority of the increase resulted from the
significant strike extension of the deposit to the north/northeast.
Substantial new resources also were added by the increasing
thickness of the deposit north of the 514 section to approximately
400 metres (at a 0.60% copper equivalent cut-off), which are
expected to enhance block- cave characteristics and economics. In
the southern portion of Hugo North, the vertical extent of the
mineralization also was increased, with the result that column
heights of the block-cave cells also will be increased. The
northeasterly bend in the northern extension of the Hugo Dummett
Deposit has resulted in a favourable deposit trend with respect to
the late West Bat and Boundary Faults. Recent drilling suggests
that the northern extension of the deposit is now subparallel to
these structures, such that it is open indefinitely to the
northeast rather than structurally cut off as previously believed.
This premise is in part supported by the deep, subtle IP feature
noted above. Recent deep drilling in holes OTD918H and OTD963E
encountered high-grade copper and gold mineralization in a later,
potassium-rich phase of the quartz monzodiorite. With gold-copper
ratios approaching and exceeding 1:1 the depth extent of the Hugo
North Deposit is still open. OTD963E encountered 80 metres grading
2.60 g/t gold and 1.96% copper (copper equivalent grade of 3.64%)
at a true depth of 1,570 metres below surface, while OTD918H
encountered 140 metres grading 1.14 g/t gold and 1.53% copper
(2.27% copper equivalent) at a true depth of 1,540 metres below
surface. Hugo North has now been drilled on spacings of
approximately 125-metre by 75-metre centres. This was accomplished
on east-west oriented, 150-metre- spaced and selected 75-metre to
50-metre spaced infill sections using navi- drill technology to
drill multiple holes from a single trunk hole. This spacing has
allowed AMEC to upgrade a significant portion of the resources on
the deposit to the Indicated classification. Ivanhoe prioritized
its infill drill program at Hugo North to focus on an area
identified as hosting at least the first seven years of block-cave
mining on the deposit, as well as a significant portion of the
other relevant areas identified as representing the first 14 years
of an underground mine plan. Hugo South has been drilled to
approximately 100-metre by 100-metre spacing for Inferred
resources, with no additional drilling proposed for 2005. The base
of the first planned block caves at Hugo North is at an elevation
of approximately 1,230 metres below surface and will have a column
height of up to 500 metres, up to approximately 730 metres below
surface. Ivanhoe's drill program is now focused on testing the
extent to which the mineralized zone of Hugo North extends into the
Ivanhoe-Entree joint-venture property, as well as testing satellite
deposits and new targets throughout the Oyu Tolgoi District. Table
4: Hugo Dummett Deposit (Combined Hugo North and Hugo South
Deposits) Indicated and Inferred Resources at various copper
equivalent cut-off grades -- May 2005:
-------------------------------------------------------------------------
Grades Contained Metal
-------------------------------------------------------------------------
Cu Eq. Resource Cut-off Tonnes Copper Gold Copper Copper Gold Class
(%) (%) (g/t) Eq. (%) ('000 lbs) (ozs)
-------------------------------------------------------------------------
Indicated 3.5 113,370,000 3.74 0.92 4.33 9,350,000 3,360,000
Resources
--------------------------------------------------------------- 3.0
153,770,000 3.50 0.85 4.05 11,880,000 4,210,000
--------------------------------------------------------------- 2.5
194,010,000 3.27 0.79 3.78 14,000,000 4,930,000
--------------------------------------------------------------- 2.0
239,450,000 3.02 0.72 3.48 15,960,000 5,560,000
--------------------------------------------------------------- 1.5
321,120,000 2.64 0.62 3.03 18,680,000 6,390,000
---------------------------------------------------------------
1.25 391,910,000 2.39 0.54 2.73 20,620,000 6,830,000
--------------------------------------------------------------- 1.0
476,300,000 2.15 0.47 2.45 22,540,000 7,210,000
--------------------------------------------------------------- 0.9
507,410,000 2.07 0.45 2.36 23,130,000 7,340,000
--------------------------------------------------------------- 0.8
535,180,000 2.00 0.43 2.28 23,600,000 7,450,000
--------------------------------------------------------------- 0.7
559,220,000 1.94 0.42 2.21 23,960,000 7,530,000
--------------------------------------------------------------- 0.6
581,930,000 1.89 0.41 2.15 24,250,000 7,600,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 3.5 11,670,000 3.51 0.71 3.96 910,000 260,000 Resources
--------------------------------------------------------------- 3.0
25,010,000 3.19 0.59 3.56 1,760,000 470,000
--------------------------------------------------------------- 2.5
52,480,000 2.79 0.52 3.12 3,230,000 880,000
--------------------------------------------------------------- 2.0
95,920,000 2.40 0.49 2.72 5,090,000 1,530,000
--------------------------------------------------------------- 1.5
196,490,000 1.90 0.44 2.19 8,230,000 2,820,000
---------------------------------------------------------------
1.25 359,470,000 1.59 0.35 1.81 12,570,000 4,070,000
--------------------------------------------------------------- 1.0
595,740,000 1.36 0.28 1.54 17,810,000 5,380,000
--------------------------------------------------------------- 0.9
691,750,000 1.28 0.27 1.45 19,600,000 5,880,000
--------------------------------------------------------------- 0.8
818,710,000 1.20 0.24 1.36 21,720,000 6,400,000
--------------------------------------------------------------- 0.7
954,300,000 1.13 0.23 1.27 23,750,000 6,880,000
--------------------------------------------------------------- 0.6
1,071,620,000 1.07 0.21 1.20 25,220,000 7,310,000
---------------------------------------------------------------
Table 5: Stand alone Hugo North Deposit Indicated and Inferred
Resources at various copper equivalent cut-off grades -- May 2005:
-------------------------------------------------------------------------
Grades Contained Metal
-------------------------------------------------------------------------
Cu Eq. Resource Cut-off Tonnes Copper Gold Copper Copper Gold Class
(%) (%) (g/t) Eq. (%) ('000 lbs) (ozs)
-------------------------------------------------------------------------
Indicated 3.5 113,370,000 3.74 0.92 4.33 9,350,000 3,360,000
Resources
--------------------------------------------------------------- 3.0
153,770,000 3.50 0.85 4.05 11,880,000 4,210,000
--------------------------------------------------------------- 2.5
194,010,000 3.27 0.79 3.78 14,000,000 4,930,000
--------------------------------------------------------------- 2.0
239,450,000 3.02 0.72 3.48 15,960,000 5,560,000
--------------------------------------------------------------- 1.5
321,120,000 2.64 0.62 3.03 18,680,000 6,390,000
---------------------------------------------------------------
1.25 391,910,000 2.39 0.54 2.73 20,620,000 6,830,000
--------------------------------------------------------------- 1.0
476,300,000 2.15 0.47 2.45 22,540,000 7,210,000
--------------------------------------------------------------- 0.9
507,410,000 2.07 0.45 2.36 23,130,000 7,340,000
--------------------------------------------------------------- 0.8
535,180,000 2.00 0.43 2.28 23,600,000 7,450,000
--------------------------------------------------------------- 0.7
559,220,000 1.94 0.42 2.21 23,960,000 7,530,000
--------------------------------------------------------------- 0.6
581,930,000 1.89 0.41 2.15 24,250,000 7,600,000
-------------------------------------------------------------------------
and, in addition
-------------------------------------------------------------------------
Inferred 3.5 6,230,000 3.33 1.11 4.04 460,000 220,000 Resources
--------------------------------------------------------------- 3.0
13,060,000 3.01 0.93 3.61 870,000 390,000
--------------------------------------------------------------- 2.5
29,720,000 2.61 0.78 3.11 1,710,000 750,000
--------------------------------------------------------------- 2.0
57,020,000 2.22 0.73 2.69 2,800,000 1,340,000
--------------------------------------------------------------- 1.5
126,870,000 1.73 0.62 2.13 4,840,000 2,540,000
---------------------------------------------------------------
1.25 231,370,000 1.47 0.49 1.78 7,490,000 3,670,000
--------------------------------------------------------------- 1.0
392,150,000 1.27 0.38 1.51 10,950,000 4,790,000
--------------------------------------------------------------- 0.9
448,590,000 1.21 0.36 1.44 11,980,000 5,150,000
--------------------------------------------------------------- 0.8
500,770,000 1.16 0.34 1.38 12,820,000 5,440,000
--------------------------------------------------------------- 0.7
540,680,000 1.12 0.33 1.33 13,380,000 5,670,000
--------------------------------------------------------------- 0.6
581,290,000 1.08 0.32 1.28 13,840,000 5,920,000
---------------------------------------------------------------
Limited drilling has been conducted in the Hugo South Deposit since
November, 2003. There are slight variations in AMEC's May, 2005,
and May, 2004, Hugo South resource estimates due to a revised
definition of the separation of Hugo South and Hugo North (the
north-dipping 110 degree fault). Hugo South currently has only
Inferred resources due to a lack of infill drilling in this
deposit. Table 6: Stand alone Hugo South Deposit Inferred Resources
at various copper equivalent cut-off grades -- May 2005:
-------------------------------------------------------------------------
Grades Contained Metal
-------------------------------------------------------------------------
Cu Eq. Resource Cut-off Tonnes Copper Gold Copper Copper Gold Class
(%) (%) (g/t) Eq. (%) ('000 lbs) (ozs)
-------------------------------------------------------------------------
Inferred 3.5 5,440,000 3.71 0.25 3.87 450,000 40,000 Resources
--------------------------------------------------------------- 3.0
11,950,000 3.38 0.21 3.51 890,000 80,000
--------------------------------------------------------------- 2.5
22,760,000 3.02 0.18 3.14 1,520,000 130,000
--------------------------------------------------------------- 2.0
38,900,000 2.67 0.15 2.77 2,290,000 190,000
--------------------------------------------------------------- 1.5
69,620,000 2.21 0.12 2.29 3,390,000 280,000
---------------------------------------------------------------
1.25 128,100,000 1.80 0.10 1.86 5,080,000 400,000
--------------------------------------------------------------- 1.0
203,590,000 1.53 0.09 1.59 6,860,000 590,000
--------------------------------------------------------------- 0.9
243,160,000 1.42 0.09 1.48 7,620,000 730,000
--------------------------------------------------------------- 0.8
317,940,000 1.27 0.09 1.33 8,900,000 960,000
--------------------------------------------------------------- 0.7
413,620,000 1.14 0.09 1.20 10,370,000 1,210,000
--------------------------------------------------------------- 0.6
490,330,000 1.05 0.09 1.11 11,380,000 1,390,000
---------------------------------------------------------------
Charles Forster, P.Geo., Ivanhoe Mines' Turquoise Hill Manager, and
Stephen Torr, Ivanhoe Mines' Chief Resource Geologist, qualified
persons as defined by NI 43-101, supervised the preparation of the
information in this release. SGS Analabs Pty. Ltd. prepares the
split core at the project site and assays all samples at its
facility in Ulaanbaatar, Mongolia. Ivanhoe's QA/QC program is
monitored by independent consultant Dr Barry Smee, P.Geo., and
managed on site by Dale Sketchley, M.Sc., P.Geo. Prepared standards
and blanks are inserted at the sample preparation lab on the
project site to monitor the quality control of the assay data.
Ivanhoe owns 100% of the Oyu Tolgoi Project. The company owns or
controls exploration rights covering approximately 130,000 square
kilometres in central, southern and northeastern Mongolia. Ivanhoe
also produces LME Grade A 99.999% copper from its Monywa joint
venture in Myanmar. Ivanhoe shares are listed on the New York and
Toronto stock exchanges under the symbol IVN. Information contacts
in North America: -------------------------------------- Investors:
Bill Trenaman: +1.604.688.5755 Media: Bob Williamson:
+1.604.688.5755 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 and US securities regulators. When
used in this document, the words such as "could," "plan,"
"estimate," "expect," "intend," "may," "potential," "should," and
similar expressions are forward-looking statements. The risk
factors that could cause actual results to differ from these
forward-looking statements include, but are not restricted to, the
planned shaft sinking and underground tunneling, additional
drilling, the Integrated Development Study, and mine development at
the Oyu Tolgoi project, operational risk, environmental risk,
financial risk, geo-political risk, commodity risk, currency risk
and other statements that are not historical facts as disclosed
under the heading "Risk Factors" and elsewhere in the corporation's
periodic filings with securities regulators in Canada and the
United States. DATASOURCE: Ivanhoe Mines Ltd. CONTACT: in North
America: Investors: Bill Trenaman: (604) 688-5755; 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@cnw.
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