Ivanhoe now owns Mongolian project

Robert Friedland’s Ivanhoe Mines (IVN-T) has assumed 100% ownership of the Turquoise Hill copper-gold project in southern Mongolia after completing its earn-in obligations by spending US$3 million on exploration and paying BHP Billiton (BHP-N) US$5 million.

Ivanhoe has made what could turn out to be an important copper-gold porphyry discovery at Turquoise Hill (also known as Oyu Tolgoi) that could have significant tonnage implications. A resource estimate for the Southwest Oyu discovery zone is expected in the coming weeks. The company remains contractually committed to spending a further US$3 million on a second phase of exploration.

BHP retains a 2% net smelter return royalty and certain back-in rights to re-purchase a 40-60% participating interest based on the nature and size of the deposit defined prior to the completion of the second phase.