Vancouver — As a warm-up act for the big campaign to come,
The relatively shallow induced-polarization target is 2 km west of a deeper IP target that defines the potential northward extension of Ivanhoe’s large and advanced Hugo Dummett copper-gold deposit.
Entre President Greg Crowe says the secondary target was selected because only small-capacity drills are available at present, and because large porphyry deposits often host potentially economic satellite zones.
“The results of this drill program will have no impact on the along-strike potential of the Hugo Dummett deposit itself,” Crowe states, adding that the main target will be drilled as soon as larger-capacity rigs become available.
Ivanhoe is carrying out the first-phase drill program under the terms of an earn-in agreement with Entre that gives it the right to earn into about 22%, or 400 sq. km, of the Lookout Hill property. The company must spend at least US$3 million to secure the surface rights, then spend a minimum of US$20 million to earn a 51% stake.
Ivahoe can secure up to an 80% interest in mineralization below a depth of 560 metres by spending US$35 million. Once this is achieved, Entre will have the right to require that Ivanhoe fund its share of subsequent joint-venture costs through to production (to be recovered from cash flow).
Nearby, Ivanhoe is drilling northward stepouts along its Hugo Dummett deposit, to about 150 metres south of the Ivanhoe-Entre property boundary. The company has also carried out deep-probing IP surveys over Entre’s Copper Flats area since last fall. In addition to outlining the main, 4-km-long IP target, the surveys identified several other sizable, chargeability anomalies.
Ivanhoe’s initial drill hole at Copper Flats will test one of the smaller IP targets to a vertical depth of 750 metres.
Entre has $7 million in its treasury, which will be used to explore other targets on the remaining 78% of the Lookout Hill property.
The junior plans also to explore its wholly owned Ulziit Uul property, 100 km north of Lookout Hill.
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