Ivanhoe drills Kamoa-Kakula’s best intersection to date

Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) has drilled what it’s calling an “unprecedented” intersection in a shallow, flat lying deposit at the Kamoa North exploration area on its 397-sq.-km Kamoa-Kakula mining license.

The company cut 13.05% copper over 22.25 metres from 219 metres downhole at a 2% copper cut off grade in a deposit that begins 190 metres below surface. At a 5% copper cut off grade, the intersection cut 15.92% copper over 17 metres and at a 1% copper cut off grade it cut 10.29% copper over 29 metres.

Ivanhoe drilled that hole 18 km north of the Kamoa-Kakula’s planned initial mine at its Kakula deposit.

The hole was one of 22 holes the company recently drilled at Kamoa North. Other highlights include 5.87% copper over 7 metres from 234 metres downhole, and 6.17% copper over 3.47 metres from 217 metres downhole.

The company is drilling close-spaced holes at the new discovery to better understand its controls and orientation. Ivanhoe is also nearly finished a pre-feasibility study for its 6-million-tonne-per-year Kakula copper mine, as well as an updated resource estimate for the project.

The combined Kamoa-Kakula copper project contains 1.34 billion indicated tonnes grading 2.72% copper for 80.7 billion lb. copper, as well as 315 million inferred tonnes at 1.87% copper for 13 billion lb. copper.

Shares of Ivanhoe are currently trading at $2.50 with a 52-week range of $2 to $4.05. The company has a $2.5 billion market capitalization.