Ivanhoe, BHP find new copper/moly/gold zone in Mongolia
TORONTO (miningweekly.com) – Ivanhoe Mines, which is developing the big Oyu Tolgoi copper/gold project in Mongolia, has found a new copper/molybdenum/gold zone on a property being explored in a joint venture (JV) with BHP Billiton, the firm said on Monday.
The new zone, Ulaan Khud North, is located about 10 km north of the Oyu Tolgoi complex, and extends the known Oyu Tolgoi mineralised system by another three kilometres to the north, to more than 23 km.
The signs point to a near-surface deposit with openpit mining potential, and Ivanhoe's geologists believe that the near-surface copper mineralization discovered to date at Ulaan Khud North “may be part of a much larger deposit”, the company said.
Ivanhoe formed a JV with BHP in 2005, and the world's biggest mining company has since earned a 50% interest in the JV by spending $8-million on exploration and conducting an airborne survey over the Oyu Tolgoi area.
A total of 25 drill holes totalling 6 561 m, ranging in depth from 182 m to 377 m defined the new zone of shallow porphyry copper mineralisation over an area of 600 m by 300 m, Ivanhoe said.
Under an agreement with the government, Ivanhoe and BHP have three years to conduct additional exploration, complete an environmental impact study, prepare a final feasibility study and gain approval for the design for the project.
The partners must submit a technical and economical study on a mine at Ulaan Khud North to the Mineral Resources Authority of Mongolia by June 30, 2013.
The Oyu Tolgoi project, which is expected to start production in late 2012, will produce more than 1,2-billion pounds of copper, 650 000 oz of gold and three-million ounces of silver a year during the first ten years of operations.
Ivanhoe owns 66% of the Oyu Tolgoi project and the Mongolian government holds the other 40%. Diversified miner Rio Tinto, in turn, owns 40,3% of Ivanhoe.
Ivanhoe shares edged up 0,85% on Monday to C$24,85 apiece by 15:17 in Toronto.
Edited by: Liezel Hill
The new zone, Ulaan Khud North, is located about 10 km north of the Oyu Tolgoi complex, and extends the known Oyu Tolgoi mineralised system by another three kilometres to the north, to more than 23 km.
The signs point to a near-surface deposit with openpit mining potential, and Ivanhoe's geologists believe that the near-surface copper mineralization discovered to date at Ulaan Khud North “may be part of a much larger deposit”, the company said.
Ivanhoe formed a JV with BHP in 2005, and the world's biggest mining company has since earned a 50% interest in the JV by spending $8-million on exploration and conducting an airborne survey over the Oyu Tolgoi area.
A total of 25 drill holes totalling 6 561 m, ranging in depth from 182 m to 377 m defined the new zone of shallow porphyry copper mineralisation over an area of 600 m by 300 m, Ivanhoe said.
Under an agreement with the government, Ivanhoe and BHP have three years to conduct additional exploration, complete an environmental impact study, prepare a final feasibility study and gain approval for the design for the project.
The partners must submit a technical and economical study on a mine at Ulaan Khud North to the Mineral Resources Authority of Mongolia by June 30, 2013.
The Oyu Tolgoi project, which is expected to start production in late 2012, will produce more than 1,2-billion pounds of copper, 650 000 oz of gold and three-million ounces of silver a year during the first ten years of operations.
Ivanhoe owns 66% of the Oyu Tolgoi project and the Mongolian government holds the other 40%. Diversified miner Rio Tinto, in turn, owns 40,3% of Ivanhoe.
Ivanhoe shares edged up 0,85% on Monday to C$24,85 apiece by 15:17 in Toronto.
Edited by: Liezel Hill
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