Ivanhoe hits copper and gold at Cloncurry

Ivanhoe Mines (IVN-T) has cut significant gold and copper at its Cloncurry project, 38 km southwest of the Ernest Henry mine in Queensland, Australia.

The latest drilling was highlighted by hole 1069 which cut 79 metres grading 1.45% copper and 0.99 gram gold per tonne at a down hole depth of 83 metres. This hole also hit 21 metres grading 0.4% copper and 0.2 gram gold per tonne at 53 metres down hole, and 28 metres grading 0.7% copper, and 0.46 gram gold per tonne at 176 metres down hole.

Six holes (totalling 1,600 metres) tested the Swan prospect.

Hole 1068, drilled 100 metres south and about 30 metres west of hole 1069, cut 115 metres grading 0.96% copper and 0.86 gram gold per tonne at 65 metres down hole. Shallower mineralization was also cut at 8 metres down hole, where a 48-metre interval graded 0.85% copper and 0.57 gram gold per tonne.

Hole 1073 was drilled 300 metres west and 100 metres south of hole 1069, and cut 154 metres grading 0.81% copper and 0.49 gram gold per tonne at a down hole depth of 115 metres. Higher in the hole, at 8 metres, a 51-metre interval graded 0.49% copper and 0.07 gram gold per tonne. The hole was drilled to the east (at 83̊), whereas earlier holes (holes 1068 through 1072) were drilled in the opposite direction (at 263̊).

Hole 1070, drilled 100 metres west of hole 1069, cut 70 metres grading 1.2% copper and 0.3 gram gold per tonne at a down hole depth of 9 metres.

Two other holes cut several intervals from 12-70 metres in width which graded 0.5-0.8% copper and 0.3-0.5 gram gold per tonne.

Swan corelates with a magnetic anomaly, which is 300 metres wide and 400 metres long. The deeper portion of the prospect has had a dozen holes poked into it in the past; eight of these cut significant copper-gold intervals.

Chalcocite, bornite and magnetite are within a gold-bearing vein/breccia system which cuts calc-silicate-altered sediments and meta-basalt. The sulphide zone is capped by an oxidized supergene horizon up to 100 metres thick. Numerous shallow holes, drilled by former owners of the Mount Elliott mine, tested this resource.

The past-producing Mount Elliott gold and copper mine is 600 metres northeast of the Swan prospect. It last produced copper and gold in 2000-2002. Selwyn Mines, the owner at that time, attempted an A$42 million expansion in 2002 , but was forced into receivership later that year.

Ivanhoe acquired the property in late September, 2003.

Between Swan and the Mount Elliott mine is another discrete magnetic anomaly which corresponds with the Swell zone. Previous drilling at this zone cut 109 metres grading 1.14% copper and 0.38 gram gold per tonne.

Metallurgical testes are underway on supergene material taken from Swan.

The 1,450-sq.-km Cloncurry property is owned by Ivanhoe Cloncurry Mines, a unit of Ivanhoe Mines.

The company plans to drill more holes.

Ivanhoe’s share-price jumped several percent at the start of trading, on release of this news, but promptly fell back to remain relatively stable at about $10.15.