Vancouver — A pilot-scale leaching program is under way at the CSH 217 gold development project jointly operated by
The pilot-project is the first step in an ongoing plan to develop a large-scale, open-pit mine capable of producing about 100,000 oz. gold annually. Toward that end, feasibility studies and permitting efforts will be carried out this year with the goal being to obtain a mining lease by year-end or early 2006.
Two pilot-scale pads were built on the property. Each was stacked with about 50,000 tonnes of mineralized material. Leaching of run-of-mine material began in late May, with leaching of single-stage crushed material scheduled to begin in mid-June. The partners expect to pour their first gold bar in August.
Bulk-column metallurgical test-leaching is also under way in Baotou, China, under the supervision of KD Engineering of Tucson, Ariz. Fourteen columns consisting of more than 18 tonnes of material were prepared to determine ultimate recoveries and reagent consumption from both oxide and sulphide mineralized material.
Jinshan has earned a 96.5% interest in the project from its Chinese partner, Ningxia Nuclear Industry Geological Exploration Institute, which retains a 3.6% carried interest. Ivanhoe has the right to participate in Jinshan’s interest on a 50/50 basis.
A recent National Instrument 43-101 report estimates that the CSH 217 project hosts a measured and indicated resource of 83 million tonnes grading 0.82 gram gold per tonne, using a cutoff grade of 0.5 gram. This is equal to 2.2 million contained ounces.
The project also contains an inferred resource estimated at 37 million tonnes grading 0.89 gram gold, or an additional 1 million contained ounces.
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