SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
From: January 30, 2006
IVANHOE MINES LTD.
(Translation of Registrants Name into English)
Suite 654 999 CANADA PLACE, VANCOUVER, BRITISH COLUMBIA V6C 3E1
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.)
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Form 20-F- o
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Form 40-F- þ |
(Indicate by check mark whether the registrant by furnishing the information contained in this form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
(If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82- .)
Enclosed:
IVANHOE ANNOUNCES PROVEN AND PROBABLE
COPPER AND GOLD RESERVES FOR OPEN-PIT MINE
AT OYU TOLGOI PROJECT, MONGOLIA
NEW INDEPENDENT GLOBAL RESOURCE ESTIMATE
FOR OYU TOLGOI COMPLEX EXPECTED SHORTLY
ULAANBAATAR, MONGOLIA John Macken, President of Ivanhoe Mines, announced today that a new,
independent estimate prepared by GRD Minproc Limited, of Perth, Australia, has upgraded the
Measured and Indicated gold and copper resources contained within the planned open-pit deposits in
the southern part of the companys Oyu Tolgoi (Turquoise Hill) Project to the Proven and Probable
Mineral Reserve categories. In addition, Ivanhoe and AMEC Americas Ltd. are preparing new resource
estimates for the Hugo North Deposit and the Hugo North Extension onto the Ivanhoe/Entrée Gold
joint venture property, which are expected to be finalized shortly. The new estimate will be the
first resource update for the Oyu Tolgoi Complex since the May, 2005, AMEC estimate and will
incorporate results from the past eight months of drilling.
Total Proven and Probable open-pit reserves are estimated to be 930 million tonnes, with a grade of
0.50% copper and 0.36 g/t gold, containing 8.9 billion pounds of recovered copper and 7.6 million
ounces of recovered gold.
Southern
Oyu Mineral Reserves January 2006
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Recovered |
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Recovered |
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Copper |
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Gold |
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CuEq Grade |
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Copper |
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Gold |
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Class |
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Ore (tonnes) |
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NSR $/t |
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(%) |
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(g/t ) |
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(%) |
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(000 lbs) |
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(ounces) |
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Proven |
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127,000,000 |
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15.91 |
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0.58 |
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0.93 |
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1.18 |
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1,451,000 |
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2,833,000 |
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Probable |
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803,000,000 |
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7.96 |
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0.48 |
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0.27 |
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0.66 |
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7,431,000 |
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4,768,000 |
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Total |
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930,000,000 |
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9.05 |
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0.50 |
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0.36 |
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0.73 |
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8,882,000 |
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7,601,000 |
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The key parameters in determining the Mineral Reserves are:
1. Metal prices of US$400/oz gold and US$1.00/lb copper.
2. Block value Net Smelter Return (NSR) cut-off grades of US$3.54/t for
Southwest Oyu and $3.39/t for Central Oyu.
As we expected, the GRD Minproc study has confirmed the economic potential of open-pit Measured
and Indicated Resources, and upgraded them to Proven and Probable Reserves, said Mr. Macken. This
is further confirmation that Oyu Tolgoi is one of the worlds largest economic, undeveloped,
bulk-mineable copper and gold deposits and Ivanhoe will proceed to project development as quickly
as possible.
Development drilling is continuing to enable us to convert the inferred material in the Hugo
Dummett Deposits to the measured and indicated category and to expand the Oyu Tolgoi Complex, which
is still open in several directions. We also will continue exploration drilling in other areas
within our significant exploration tenements.
2
For comparison, the Measured, Indicated and Inferred Southern Oyu Resources, re-tabulated by AMEC
in January, 2006, using a 0.3% copper equivalent cut-off, are as follows:
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Copper |
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Contained |
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Contained |
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Resources |
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Grade |
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Gold Grade |
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CuEq Grade |
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Copper |
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Gold |
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Class |
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(tonnes) |
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(%) |
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(g/t) |
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(%) |
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(000 lbs) |
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(ounces) |
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Measured |
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126,690,000 |
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0.58 |
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0.93 |
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1.17 |
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1,620,000 |
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3,790,000 |
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Indicated |
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992,400,000 |
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0.47 |
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0.27 |
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0.64 |
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10,280,000 |
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8,620,000 |
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Measured + Indicated |
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1,119,100,000 |
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0.48 |
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0.35 |
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0.70 |
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11,840,000 |
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12,590,000 |
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and, in addition |
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Inferred |
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266,820,000 |
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0.34 |
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0.23 |
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0.48 |
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2,000,000 |
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1,970,000 |
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The Southern Oyu Resources were re-tabulated by AMEC using a pit shell based upon higher metal
prices ($1.15/lb copper and $450/oz gold) than were used in the May, 2005, estimate and in the
Mineral Reserve study ($1.00/lb copper and $400/oz gold).
For comparison, the May, 2005, Oyu Tolgoi Global Resources, using a 0.6% copper equivalent
cut-off, are as follows:
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Copper |
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Contained Metal |
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Resources |
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Copper |
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Gold |
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Equiv. |
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Copper |
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Gold |
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Copper Equiv. |
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Deposit |
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(tonnes) |
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(%) |
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(g/t) |
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(%) |
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(000 lbs) |
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(ounces) |
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(000 lbs) |
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Southern Oyu Deposits |
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Measured |
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101,590,000 |
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0.64 |
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1.10 |
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1.34 |
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1,440,000 |
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3,580,000 |
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3,010,000 |
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Indicated |
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465,640,000 |
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0.62 |
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0.43 |
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0.89 |
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6,360,000 |
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6,400,000 |
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9,150,000 |
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Measured + Indicated |
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567,230,000 |
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0.62 |
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0.55 |
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0.97 |
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7,810,000 |
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9,980,000 |
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12,170,000 |
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and, in addition |
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Inferred |
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88,500,000 |
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0.47 |
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0.41 |
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0.73 |
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920,000 |
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1,170,000 |
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1,430,000 |
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Hugo Dummett Deposits |
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Indicated
(Hugo North) |
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581,930,000 |
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1.89 |
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0.41 |
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2.15 |
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24,250,000 |
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7,600,000 |
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27,580,000 |
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Inferred
(Hugo North
and South) |
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1,071,620,000 |
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1.07 |
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0.21 |
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1.20 |
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25,220,000 |
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7,310,000 |
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28,350,000 |
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Oyu Tolgoi Project
Grand Total: |
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Measured |
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101,590,000 |
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0.64 |
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1.10 |
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1.34 |
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1,440,000 |
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3,580,000 |
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3,010,000 |
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Indicated |
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1,047,570,000 |
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1.33 |
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0.42 |
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1.59 |
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30,610,000 |
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14,070,000 |
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36,740,000 |
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Measured +
Indicated |
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1,149,160,000 |
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1.30 |
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0.47 |
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1.54 |
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32,850,000 |
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17,340,000 |
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38,980,000 |
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and, in addition |
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Inferred |
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1,160,120,000 |
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1.02 |
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0.23 |
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1.16 |
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26,200,000 |
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8,400,000 |
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29,780,000 |
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3
In addition to the reserves outlined in the Southern Oyu open pit, the Hugo Dummett
underground deposits contain an additional Indicated resource of 582 million tonnes grading 1.89%
copper and 0.41 g/t gold (a copper equivalent grade of 2.15%) at a 0.60% copper equivalent cut-off,
containing:
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approximately 24.3 billion pounds (11 million tonnes) of copper; and |
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7.6 million ounces of gold. |
In addition to the Indicated resources, the Hugo Dummett Deposits also contain Inferred resources
of 1.07 billion tonnes grading 1.07% copper and 0.21 g/t gold (a copper equivalent grade of 1.20%)
at a 0.60% copper equivalent cut-off, containing:
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approximately 25.2 billion pounds (11.4 million tonnes) of copper; and |
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7.3 million ounces of gold. |
The May, 2005, Oyu Tolgoi resource estimates were independently prepared in accordance with the
requirements set out in National Instrument 43-101 by AMEC Americas Ltd. under the direction of Dr.
Harry Parker, Ch. P. Geol., and Dr. Stephen Juras, P.Geo., independent qualified persons. Details
of this estimate can be found in Ivanhoes news release dated May 3, 2005.
Ivanhoe and AMEC are preparing new resource estimates for the Hugo North and the Hugo North
Extension onto the Ivanhoe/Entrée Gold joint venture property, which are expected to be finalized
shortly.
Based on the findings of the independently-prepared Integrated Development Plan (IDP) for Oyu
Tolgoi, announced on September 29, 2005, the project is expected to become the worlds next
major copper and gold mine, with an average annual production of more than one billion pounds
of copper and 330,000 ounces of gold for at least 35 years. Peak annual production is
projected at more than 1.6 billion pounds of copper and 900,000 ounces of gold. Full details
of the IDP are in Ivanhoes news release of September 29, 2005.
Qualified Persons for the Southern Oyu Reserve Estimate
Bernard Peters, B. Eng. (Mining), Aus.I.M.M. 201743, employed by GRD Minproc Limited as Principal
Mining Engineer, was responsible for preparation of the technical information concerning the
Mineral Reserve estimate contained in this release. A technical report will be filed on SEDAR.
Steve Blower, M.Sc. (Geology), P.Geo., employed by AMEC Americas Ltd., was responsible for
preparation of the technical information concerning the Mineral Resource at Oyu Tolgoi.
Allan Haines, BSc., C. Eng., Eur. Ing., MIMMM, an employee of Steffen Robertson Kirsten
(Australasia) Pty. Ltd., was responsible for preparation of the subsection on Open Pit Mine
Geotechnical.
Dean David, B AppSc (Metallurgy), Aus.I.M.M.102351, employed by GRD Minproc Limited as Process
Consultant, was responsible for preparation of the section processing.
The report is primarily based on Ivanhoes Integrated Development Plan and considers only the
resources and facilities necessary to support an open-pit mine at Oyu Tolgoi. The report only
considers Mineral Resources in the Measured and Indicated categories, and engineering that has been
carried out to a Pre-feasibility level or better to state the open-pit Mineral Reserve. As such,
this report draws on the work in the IDP, as it is the basis of the Ivanhoe development plan.
The report is a Pre-feasibility Study and is intended to be used as the technical report under the
National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Institute
of Mining and Metallurgy (CIM).
Ivanhoes shares are listed on the New York and Toronto stock exchanges under the symbol IVN.
Ivanhoe information contacts in North America
Investors: Bill Trenaman +1.604.688.5755 / Media: Bob Williamson +1.604.688.5755
Forward-Looking Statements: Statements in this release that are forward-looking statements
are subject to various risks and uncertainties concerning the specific factors disclosed under the
heading Risk Factors and elsewhere in the corporations periodic filings with Canadian and US
securities regulators. When used in this document, the words such as could, plan, estimate,
expect, intend, may, potential, should, and similar expressions are forward-looking
statements. The risk factors that could cause actual results to differ from these forward-looking
statements include, but are not restricted to, additional drilling, the Integrated Development
Study, and mine development at the Oyu Tolgoi project, operational risk, environmental risk,
financial risk, geo-political risk, commodity risk, currency risk and other statements that are not
historical facts as disclosed under the heading Risk Factors and elsewhere in the corporations
periodic filings with securities regulators in Canada and the United States.