Vancouver – Not content to just rest on the laurels the massive Oyu Tolgoi (Turquoise Hill) copper-gold deposit, Ivanhoe Mines (IVN-T) has resumed drilling on the 90% owned Kharmagtai property located about 120 km. north of its mega-project in Mongolia’s South Gobi.
Resumption of drilling has focused on the Gold Hill area of the project, where a pair of pipe-like quartz vein stockworks with high-grade copper-gold porphyry mineralization were previously identified.
Ivanhoe’s hole KH259 cut 203 metres (from 3 metres) averaging 2.45 grams gold per tonne and 0.45% copper. Mineralization is adjacent to an east-west trending andesite dyke and exhibits a high 5:1 gold-to-copper ratio. The intercept confirms similar results from last season.
The two stockwork pipes have returned significant gold-copper grades in drilling. They appear associated with a series of quartz diorite dykes, which, while relatively narrow in nature near surface, may coalesce into a larger structure or porphyry stock at depth.
Both structures, the Northern and Southern stockworks, remain open laterally and to depth.
A resource estimate is planned following conclusion of the current drill program.
Kharmagtai is 10% held by QGX (QGX-V), who have a carried interest through to production.
Ivanhoe produces copper and iron ore from operations in Myanmar and Tasmania. The wholly owned Oyu Tolgoi copper-gold project in southern Mongolia is progressing towards feasibility stage and hosts an inferred resource of 1.16 billion tonnes of 1.29% copper and 0.23 grams gold within the Hugo Dummett deposit.
At presstime, the issue was trading just above the $8 range. As of the latest figures, Ivanhoe has 271.7 million shares outstanding.
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