Ivanhoe expands Mongolian portfolio

Preliminary exploration results have prompted Ivanhoe Mines (IVN-T) to acquire four more copper-gold properties in Mongolia.

The properties are in the mineral belt that hosts the Turquoise Hill porphyry system, where Ivanhoe recently intersected 1.2% copper and 1.6 grams gold per tonne over 278 metres. Drilling there continues.

The latest acquisitions — Oyut Ulaan, Chandman Uul, Oyut Ovoo and Saran Uul — have returned encouraging values in rock samples. Accordingly, systematic mapping, geochemical sampling and geophysical surveying are under way.

Situated in the southeastern Gobi desert region, Oyut Ulaan consists of two separate targets. Both have yielded more than 5% copper, up to 5.45 grams gold and 0.07% molybdenum in chip samples.

The Oyut Ulaan target is a 2.5-sq-km tourmaline breccia pipe that displays copper staining near its southern margin, and sheeted quart-tourmaline veins to the northeast and southwest. The sheeted veins are hosted by granodiorite.

The Stariy target is characterized by abundant copper-stained colluvium and subcrops over 5 sq. km. Quartz-veining and gossanous, magnetitite-bearing hydrothermal breccias are widespread.

The southeastern region of the Gobi also hosts Chandman Uul, a copper-bearing magnetite skarn that props out as a series of prominent hills over a length of 3 km. Chip samples were highly anomalous in copper and gold, surpassing 5% and up to 2.3 grams, respectively.

The Saran Uul area, in the central region of the copper belt, is a known copper system hosted by diorites and syenites. Efforts there will be focused on a stockwork of quartz veins that outcrop.

Results from 54 chip samples varied from 0.1% to 5% copper, 0.5 to 4.9 grams gold and less than 0.2% molybdenum.

In the same, central area is the Oyut Ovoo target, which yielded 1-10% copper, 0.3-0.7 gram gold and up to 1% moly. The target measures 4 sq. km and is centred on a group of hills representing magnetite skarns and hydrothermal breccia pipes in granitoid stocks.

Meanwhile, Ivanhoe has hired Roscoe Postle Associates to conduct a technical review of the Turquoise Hill project. The review will include results from an ongoing 16,000-metre drill program aimed at the southern, central and northern Oyu copper-gold porphyry targets.

Ivanhoe can earn a 100% interest in Turquoise Hill by spending US$6 million on exploration over seven years and paying US$5 million to BHP Billiton (BHP-N). The major retains a back-in right, which, if not exercised, automatically converts to a 2% net smelter return royalty.