Ivanhoe delineates Discovery zone

Ongoing drilling by Ivanhoe Mines (IVN-T) has expanded gold-copper-molybdenum porphyry mineralization at the Turquoise Hill project in southern Mongolia.

Final gold and copper assay results from diamond drill holes 162 and 166 have increased the surface dimensions of the Discovery zone, a high-grade gold-and-copper-rich porphyry body to 315 by 350 metres. The mineralization extends 500 metres below surface.

Hole 162 was highlighted by a 130-metre interval (starting at 110 metres below surface) running 2.25 grams gold per tonne, plus 0.85% copper. The final 22 metres of the hole, which bottomed at 314 metres, averaged 0.97 gram gold and 0.64% copper.

Hole 166 averaged 1.38 grams gold and 0.74% copper over 478 metres, beginning at 60 metres below surface, including 366 metres (from 172 metres down-hole) of 1.69 grams gold and 0.86% copper, which, in turn, included 108 metres (from 172 metres) of 2.59 grams gold and 0.99% copper.

Assay results are pending for holes 169 and 171, which tested the Discovery zone to down-ole depths of 751 and 614 metres, respectively. Both holes cut strong copper porphyry mineralization similar to that encountered in previously reported holes, including hole 150 (508 metres of 1.17 grams gold, plus 0.81% copper and 0.01% moly).

Hole 171, a 120-metre stepback from hole 162, cut strong zones of copper porphyry mineralization between down-hole depths of 87 and 572 metres.

Hole 169, a re-drill collared 5 metres away from previously drilled hole 163, encountered strong copper porphyry mineralization between down-hole depths of 480 and 600 metres. Hole 163 returned 164 metres (from 262 metres) of 1.05 grams gold and 0.67% copper.

Crews have begun drilling three additional 120-metre stepback holes aimed at delineating the Discovery zone further.

Preliminary flotation tests on 400 kg of drill core indicate a gold recovery rate of 90% and a copper recovery rate of 95%. Bottle-roll tests on the chalcocite blanket material showed good leachability.

The Discovery zone is coincident with one of several magnetic anomalies; the others are being drill-tested. The company plans to test other targets as it completes infill drilling on the Discovery zone.

Ivanhoe can acquire Turquoise Hill by spending US$6 million on exploration and paying BHP Billiton (BHP-N) US$5 million.

Encouraged by recent results, Ivanhoe has acquired four more copper-gold properties in the area. Rock samples from these have returned encouraging values, and mapping, geochemical sampling and geophysical surveys are under way.