New independent global resource estimate for Oyu Tolgoi complex
expected shortly ULAANBAATAR, Mongolia, Jan. 30
/PRNewswire-FirstCall/ -- John Macken, President of Ivanhoe Mines,
announced today that a new, independent estimate prepared by GRD
Minproc Limited, of Perth, Australia, has upgraded the Measured and
Indicated gold and copper resources contained within the planned
open-pit deposits in the southern part of the company's Oyu Tolgoi
(Turquoise Hill) Project to the Proven and Probable Mineral Reserve
categories. In addition, Ivanhoe and AMEC Americas Ltd. are
preparing new resource estimates for the Hugo North Deposit and the
Hugo North Extension onto the Ivanhoe/Entree Gold joint venture
property, which are expected to be finalized shortly. The new
estimate will be the first resource update for the Oyu Tolgoi
Complex since the May, 2005, AMEC estimate and will incorporate
results from the past eight months of drilling. Total Proven and
Probable open-pit reserves are estimated to be 930 million tonnes,
with a grade of 0.50% copper and 0.36 g/t gold, containing 8.9
billion pounds of recovered copper and 7.6 million ounces of
recovered gold. Southern Oyu Mineral Reserves - January 2006
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CuEq Recovered Recovered Copper Gold Grade Copper Gold Class Ore
(tonnes) NSR $/t (%) (g/t) (%) ('000 lbs) (ounces)
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Proven 127,000,000 15.91 0.58 0.93 1.18 1,451,000 2,833,000
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Probable 803,000,000 7.96 0.48 0.27 0.66 7,431,000 4,768,000
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Total 930,000,000 9.05 0.50 0.36 0.73 8,882,000 7,601,000
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The key parameters in determining the Mineral Reserves are: 1.
Metal prices of US$400/oz gold and US$1.00 /lb copper. 2. Block
value Net Smelter Return (NSR) cut off grades of US$3.54/t for
Southwest Oyu and $3.39/t for Central Oyu. "As we expected, the GRD
Minproc study has confirmed the economic potential of open-pit
Measured and Indicated Resources, and upgraded them to Proven and
Probable Reserves," said Mr. Macken. "This is further confirmation
that Oyu Tolgoi is one of the world's largest economic,
undeveloped, bulk- mineable copper and gold deposits and Ivanhoe
will proceed to project development as quickly as possible.
"Development drilling is continuing to enable us to convert the
inferred material in the Hugo Dummett Deposits to the measured and
indicated category and to expand the Oyu Tolgoi Complex, which is
still open in several directions. We also will continue exploration
drilling in other areas within our significant exploration
tenements." For comparison, the Measured, Indicated and Inferred
Southern Oyu Resources, re-tabulated by AMEC in January, 2006,
using a 0.3% copper equivalent cut-off, are as follows:
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Copper Gold CuEq Contained Contained Resources Grade Grade Grade
Copper Gold Class (tonnes) (%) (g/t) (%) ('000 lbs) (ounces)
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Measured 126,690,000 0.58 0.93 1.17 1,620,000 3,790,000
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Indicated 992,400,000 0.47 0.27 0.64 10,280,000 8,620,000
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Measured + Indicated 1,119,100,000 0.48 0.35 0.70 11,840,000
12,590,000
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and, in addition
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Inferred 266,820,000 0.34 0.23 0.48 2,000,000 1,970,000
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The Southern Oyu Resources were re-tabulated by AMEC using a pit
shell based upon higher metal prices ($1.15/lb copper and $450/oz
gold) than were used in the May, 2005, estimate and in the Mineral
Reserve study ($1.00/lb copper and $400/oz gold). For comparison,
the May, 2005, Oyu Tolgoi Global Resources, using a 0.6% copper
equivalent cut-off, are as follows:
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Contained Metal ------------------------------- Copper Copper
Resources Copper Gold Equiv. Copper Gold Equiv. Deposit (tonnes)
(%) (g/t) (%) ('000 lbs) (ounces) ('000 lbs)
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Southern Oyu Deposits
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Measured 101,590,000 0.64 1.10 1.34 1,440,000 3,580,000 3,010,000
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Indicated 465,640,000 0.62 0.43 0.89 6,360,000 6,400,000 9,150,000
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Measured + Indicated 567,230,000 0.62 0.55 0.97 7,810,000 9,980,000
12,170,000
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and, in addition
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Inferred 88,500,000 0.47 0.41 0.73 920,000 1,170,000 1,430,000
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Hugo Dummett Deposits
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Indicated (Hugo North) 581,930,000 1.89 0.41 2.15 24,250,000
7,600,000 27,580,000
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Inferred (Hugo North and South) 1,071,620,000 1.07 0.21 1.20
25,220,000 7,310,000 28,350,000
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Oyu Tolgoi Project Grand Total:
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Measured 101,590,000 0.64 1.10 1.34 1,440,000 3,580,000 3,010,000
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Indicated 1,047,570,000 1.33 0.42 1.59 30,610,000 14,070,000
36,740,000
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Measured + Indicated 1,149,160,000 1.30 0.47 1.54 32,850,000
17,340,000 38,980,000
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and, in addition
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Inferred 1,160,120,000 1.02 0.23 1.16 26,200,000 8,400,000
29,780,000
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In addition to the reserves outlined in the Southern Oyu open pit,
the Hugo Dummett underground deposits contain an additional
Indicated resource 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
Deposits also contain 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 May, 2005, Oyu Tolgoi
resource estimates were independently prepared in accordance with
the requirements set out in National Instrument 43-101 by AMEC
Americas Ltd. under the direction of Dr. Harry Parker, Ch. P.
Geol., and Dr. Stephen Juras, P.Geo., independent qualified
persons. Details of this estimate can be found in Ivanhoe's news
release dated May 3, 2005. Ivanhoe and AMEC are preparing new
resource estimates for the Hugo North and the Hugo North Extension
onto the Ivanhoe/Entree Gold joint venture property, which are
expected to be finalized shortly. Based on the findings of the
independently-prepared Integrated Development Plan (IDP) for Oyu
Tolgoi, announced on September 29, 2005, the project is expected to
become the world's next major copper and gold mine, with an average
annual production of more than one billion pounds of copper and
330,000 ounces of gold for at least 35 years. Peak annual
production is projected at more than 1.6 billion pounds of copper
and 900,000 ounces of gold. Full details of the IDP are in
Ivanhoe's news release of September 29, 2005. Qualified Persons for
the Southern Oyu Reserve Estimate Bernard Peters, B. Eng. (Mining),
Aus.I.M.M. 201743, employed by GRD Minproc Limited as Principal
Mining Engineer, was responsible for preparation of the technical
information concerning the Mineral Reserve estimate contained in
this release. A technical report will be filed on SEDAR. Steve
Blower, M.Sc. (Geology), P.Geo., employed by AMEC Americas Ltd.,
was responsible for preparation of the technical information
concerning the Mineral Resource at Oyu Tolgoi. Allan Haines, BSc.,
C. Eng., Eur. Ing., MIMMM, an employee of Steffen Robertson Kirsten
(Australasia) Pty. Ltd., was responsible for preparation of the
subsection on Open Pit Mine Geotechnical. Dean David, B AppSc
(Metallurgy), Aus.I.M.M.102351, employed by GRD Minproc Limited as
Process Consultant, was responsible for preparation of the section
processing. The report is primarily based on Ivanhoe's Integrated
Development Plan and considers only the resources and facilities
necessary to support an open-pit mine at Oyu Tolgoi. The report
only considers Mineral Resources in the Measured and Indicated
categories, and engineering that has been carried out to a
Pre-feasibility level or better to state the open-pit Mineral
Reserve. As such, this report draws on the work in the IDP, as it
is the basis of the Ivanhoe development plan. The report is a
Pre-feasibility Study and is intended to be used as the technical
report under the National Instrument 43-101 Standards of Disclosure
for Mineral Projects of the Canadian Institute of Mining and
Metallurgy (CIM). Ivanhoe's shares are listed on the New York and
Toronto stock exchanges under the symbol IVN. Ivanhoe 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, 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: Ivanhoe information contacts 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 Tools for
Investors.
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