Ivanhoe grows Hugo North (December 06, 2004)

The latest batch of results from step-out drilling on the Hugo North deposit has yielded the best-ever copper-gold intersection for Ivanhoe Mines‘ (IVN-T) Oyu Tolgoi copper-gold project in Mongolia.

Hole 918C cut 326 metres (beginning 1,026 metres below surface) grading 3.8% copper and 1.2 grams gold per tonne, including the record-breaking 96-metre section (from 1,112 metres), which grades 5.9% copper and 1.8 grams gold. The intersection is about 100 metres above the base of the proposed first lift of the Hugo North block cave.

Hole 918C was sunk around 80 metres downdip of hole 918A, which encountered 228 metres (from 984 metres) averaging 3% copper and 1.9 grams gold, including 82 metres (from 1,116 metres) of 4.2% copper and 1.4 grams gold.

A further 75 metres downdip, hole 918D yielded 120 metres (from 994 metres) grading 1.1% copper and 0.04 gram gold, followed by a 188-metre interval (from 1,114 metres) of 3.9% copper and 0.8 gram gold. Assay results are pending for deeper portions of the hole.

Hole 918 returned 74 metres (from 996 metres) of 3.9% copper and 1.2 grams gold. The hole was collared 150 metres north of the northern margin of the existing Hugo North resource estimate. Hole 918B, 150 metres to the north, cut 60 metres (from 1,052 metre) of 2.9% copper and 0.9 gram gold.

Hole 963, drilled 150 metres to the north and downdip of hole 918B, cut 302 metres (from 1,018 metres) grading 3.1% copper and 1 gram gold. The hole included 216 metres (from 1,058 metres) of 3.9% copper and 1.3 grams gold. Some 50 metres updip of hole 918B, hole 939 encountered 22 metres averaging 1.7% copper and 1.8 grams gold in the roof of the deposit.

At last count, Hugo North had an inferred resource of 666 million tonnes grading 1.5% copper and 0.3 gram gold per tonne, based on a cutoff grade 0.6% copper-equivalent. The resource includes a higher-grade core totalling 178 million tonnes at an average grade of 2.9% copper and 0.6 gram gold. The Hugo North zone now strikes 1.6 km.

The recent infill drilling has extended the core by 300 metres to the north. The core now stretches 1.6 km and has a vertical extent ranging from 100 metres in the southern portion to more than 700 metres in the north. The horizontal width ranges from 150 metres to about 200 metres in the northern extension.

The latest infill holes include hole 514I, which cut 178 metres (from 1,164 metres) grading 3.5% copper and 0.8 gram gold in the hangingwall, followed by 188 metres (from 1,492 metres) of 1.8% copper and 2.6 grams gold in the footwall (West gold zone). Hole 770A returned 202 metres (from 996 metres) of 3.4% copper and 1.3 grams gold, including 86 metres (from 1,112 metres) of 4% copper and 2.8 grams gold.

Hugo North is one of five copper and gold deposits at Oyu Tolgoi.