Report of foreign private issuer dated jan 17,2007
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 17, 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.)
Form 20-F-
o 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.)
Yes:
o No: þ
(If Yes is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- .)
Enclosed:
Press release.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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IVANHOE MINES LTD. |
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Date: January 17, 2007
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By:
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/s/ Beverly A. Bartlett |
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BEVERLY A. BARTLETT |
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Vice President & |
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Corporate Secretary |
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January 18, 2007 |
COPPER, GOLD AND URANIUM SYSTEMS
DISCOVERED AT IVANHOES CLONCURRY PROJECT
IN NORTHWEST QUEENSLAND, AUSTRALIA
Review of past exploration work highlights the uranium potential
of Cloncurrys northern tenements
SYDNEY, AUSTRALIA Robert Friedland, Chairman of Ivanhoe Mines, and Douglas Kirwin, Ivanhoes
Executive Vice-President, Exploration, announced today that exploration activities at the companys
Cloncurry Project in the Mt. Isa District of northwestern Queensland, Australia, have discovered a
series of related IOCG (Iron Oxide Copper Gold) systems, some of which have associated uranium.
Speaking at the Sydney Mining Club following the announcement, Mr. Friedland said diamond and
reverse-circulation (RC) drilling conducted at the Swan, Amethyst Castle, Castle Mount and Metal
Ridge prospects has successfully encountered copper, gold and uranium mineralization in intense
alteration zones typical of important IOCG deposits around the world.
Copper and gold mineralization discovered by Ivanhoe in a 2005 drill program at the Swan Deposit
has been expanded by the current drilling program. Ivanhoe is conducting a close-spaced,
diamond-drilling program to delineate a copper and gold resource at the Swan Project. In addition,
reconnaissance drilling at the Amethyst Castle and Castle Mount prospects has encountered
significant intersections of classic IOGC-style breccias similar to those that host economic
mineralization at the Ernest Henry Mine, near Cloncurry, and the Olympic Dam and Prominent Hill
deposits in South Australias Gawlor Craton. A first-pass drill program at the Metal Ridge prospect
has encountered significant copper and gold mineralization similar in
style to the Swan Deposit.
Also in 2006, Ivanhoe completed a comprehensive review of the previous 30 years of exploration data
that have highlighted the potential for significant uranium mineralization in the northern part of
Ivanhoes 1,450-square-kilometre Cloncurry Project. An airborne radiometric survey completed in
late 2006 successfully defined numerous uranium anomalies in the area.
Based on these very positive results, Ivanhoe intends to increase its exploration efforts at
Cloncurry in 2007 to include detailed gravity surveys, closely-spaced diamond drilling to define a
copper-gold resource at Swan, and an aggressive reconnaissance drilling
program to delineate additional mineralization at the highly prospective Amethyst Castle and Metal
Ridge targets. Three rigs are on site now and drilling is underway.
Ivanhoes prospects in historic Cloncurry-Mt. Isa mining district
Ivanhoes 100%-owned Cloncurry Project covers the majority of the historic Selwyn Mining
District. Certain mines in the district have historically produced approximately 950,000 ounces of
gold and 175,000 tonnes of copper through the processing of approximately 9.5
million tonnes of ore grading 3.62 g/t gold and 2.03% copper. Ivanhoe acquired the Cloncurry
Project in September 2003 with a plan to expand the known mineralization and to conduct an
integrated exploration program designed to test for significant deposits similar to the Ernest
Henry Mine, owned by Xstrata, to the north, or the Osborne Mine, owned by Barrick, to the south of
Ivanhoes existing exploration tenements.
Ivanhoe has confirmed that the area has geological
potential to host large-scale, high-grade iron oxide copper and gold deposits similar to the nearby
Ernest Henry Mine, and to the Olympic Dam and Prominent Hill mines in South Australia. The
Northwest Queensland Mineral Belt is one of the most significant mineral producers in the world. It
hosts the Century, Mount Isa, Hilton Group, Cannington, Lady Loretta and Dugald River base metal
deposits, the Ernest Henry, Osborne and Eloise IOCG mines, the Tick Hill gold and the Mary Kathleen
uranium deposits.
Ivanhoe has granted Placer Pacific (Osborne) Pty. Limited, a wholly-owned subsidiary of Barrick, a
farm-in and exploration agreement that allows Barrick to explore for gold and copper deposits on a
114.5-square-kilometre portion at the southern end of Ivanhoes Cloncurry Project. New exploration
drill results from the joint venture are expected to be announced soon. Details of the joint
venture are on Ivanhoes website at www.ivanhoemines.com.
Swan copper, gold and uranium discovery
Ivanhoe focused its early work at the Swan discovery, with the intent of expanding the known
oxide copper and gold mineralization that had been identified by the previous operators of the
property. The Ivanhoe drill program in 2005 was successful in expanding the oxide mineralization
and also encountered strong hypogene copper and gold mineralization below the oxide/transition
interface. Twelve diamond holes, totalling 6,083 metres, were drilled at the Swan discovery in
2006. The drilling intersected steeply dipping zones of copper sulphide veins, infilling brecciated
meta-sediments and meta-basalts that are interpreted as feeders for the near-surface oxide
mineralization. The 2006 drilling was highlighted by Hole MEHQ1095, which intersected 215 metres
averaging 0.79% copper and 0.60 g/t gold. Assays for gold and copper for MEHQ1095 were received on
January 12, 2007, and assays for uranium were received January 15th.
Assaying Swan samples above 0.75% copper has demonstrated a significant presence of uranium
associated with the copper and gold mineralization. Uranium assays for Hole 1095, include two
one-metre intersections of 1400 ppm U from 254 to 255 metres, and 2200 ppm U from 262 to 263
metres. All samples from the Swan drilling will now be analyzed for uranium and rare earth
elements. These assay results reinforce the IOCG status for the Swan deposit and invite comparisons
to other well known IOCG deposits.
The table below summarizes the significant copper, gold and
uranium intercepts from the 2006 diamond drill holes.
To date, all of Ivanhoes drill holes at the Cloncurry Project have been drilled at an inclination
of -60 degrees to the west. Ivanhoe believes that the mineralization encountered at the Swan,
Amethyst Castle and Metal Ridge discoveries is dipping steeply to the east. There has not been
enough drilling to determine the true widths of the mineralized intercepts.
Swan Prospect: Significant Diamond Drilling Results from 2006
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Downhole |
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Downhole |
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Downhole |
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Uranium |
Hole |
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depth from |
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depth to |
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interval |
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Copper |
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Gold |
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ppm |
MEHQ- |
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(metres) |
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(metres) |
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(metres) |
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% |
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g/t |
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estimate* |
1087 |
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12 |
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38.00 |
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26.00 |
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0.71 |
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0.32 |
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20 |
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66 |
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79.00 |
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13.00 |
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0.80 |
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0.49 |
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59 |
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168 |
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191.00 |
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23.00 |
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0.50 |
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0.18 |
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62 |
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1088 |
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179 |
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203.00 |
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24.00 |
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0.73 |
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0.43 |
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55 |
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1089 |
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183 |
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215 |
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32.00 |
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0.72 |
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0.47 |
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115 |
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234 |
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247 |
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13.00 |
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1.94 |
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0.56 |
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401 |
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281 |
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313 |
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32.00 |
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0.96 |
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0.53 |
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171 |
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1090 |
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283 |
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295 |
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12.00 |
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0.96 |
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0.51 |
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1091 |
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163 |
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174 |
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11.00 |
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1.11 |
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0.40 |
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28 |
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1092 |
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130 |
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145 |
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15.00 |
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0.72 |
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0.48 |
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148 |
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162 |
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14.00 |
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0.59 |
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0.55 |
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171 |
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190 |
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19.00 |
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0.47 |
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0.32 |
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194 |
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212 |
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18.00 |
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1.72 |
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0.54 |
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266 |
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294 |
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28.00 |
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0.62 |
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0.48 |
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1093 |
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207 |
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218 |
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11.00 |
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1.14 |
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0.98 |
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40 |
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224 |
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309 |
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85.00 |
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0.96 |
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0.61 |
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107 |
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369 |
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398 |
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29.00 |
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0.49 |
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0.45 |
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67 |
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1094 |
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337 |
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355 |
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18.00 |
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0.78 |
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0.60 |
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200 |
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1095 |
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187 |
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208 |
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21.00 |
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0.58 |
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0.35 |
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275 |
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229 |
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444 |
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215.00 |
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0.79 |
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0.60 |
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154 |
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including |
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229 |
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268 |
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39.00 |
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0.94 |
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0.77 |
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376 |
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Including |
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273 |
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357 |
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84.00 |
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0.91 |
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0.68 |
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165 |
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Including |
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387 |
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444 |
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57.00 |
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0.94 |
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0.70 |
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35 |
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* |
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Uranium was assayed only in Swan samples carrying 0.75% copper or greater. Intersections
calculated using 0.25 % copper cutoff. |
The majority of the 2006 drilling was focused on expanding the known mineralization along strike to
the north. This drilling has demonstrated that the hypogene copper and gold mineralization
discovered in the 2005 program can be traced for at least another 400 metres to the north, for a
total strike length of 700 metres. This is highlighted by drill holes 1089 (see table for results),
1093 (see table for results), 1095 (see table for results), 1094 (see table for results) and 1096
(visual mineralization). The mineralization is comprised mainly of chalcocite and chalcopyrite,
hosted in intensely magnetite-albite altered meta-sediments. Of particular interest, a mineralized
granitic intrusion was encountered in the bottom 30 metres in hole MEHQ06-1096. The intrusion has
abundant miarolitic cavities with infilling chalcopyrite and may represent the source of the vein
filling breccias and the previously
identified oxide zone at the surface (assays are pending).
The mineralization discovered to date at Swan has a distinct zonation that is characterized by a
supergene profile approximately 20 metres thick, underlain by 30-50 metres of oxide/transition
mineralization comprised of chrysocolla, malachite, native copper and increasing chalcocite, which
then grades into a chalcopyrite-dominated system at depth. Significant gold occurs throughout the
oxide and sulphide zones, as can be seen in the initial results below.
Swan Prospect: Significant Diamond Drilling Results from 2005
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Downhole |
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Downhole |
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Downhole |
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Hole |
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depth from |
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depth to |
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interval |
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Copper |
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Gold |
MEHQ |
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(metres) |
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(metres) |
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(metres) |
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% |
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g/t |
1068 |
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8 |
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56 |
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48 |
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0.85 |
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0.57 |
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65 |
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180.4 |
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115.4 |
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0.96 |
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0.86 |
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1069 |
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53 |
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74 |
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21 |
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0.36 |
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0.21 |
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83 |
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162 |
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79 |
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1.45 |
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0.99 |
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176 |
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204 |
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28 |
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0.71 |
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0.46 |
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1070 |
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9 |
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79 |
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70 |
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1.20 |
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0.31 |
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1071 |
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15 |
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59 |
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44 |
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0.79 |
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0.48 |
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65 |
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80 |
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15 |
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0.66 |
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0.48 |
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94 |
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106 |
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12 |
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0.63 |
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0.29 |
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114 |
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145 |
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31 |
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0.63 |
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0.47 |
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185 |
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211 |
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26 |
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0.42 |
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0.37 |
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1072 |
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31 |
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101 |
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70 |
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0.59 |
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0.31 |
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112 |
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137 |
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25 |
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0.61 |
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0.41 |
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1073 |
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8 |
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59 |
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51 |
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0.49 |
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0.07 |
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115 |
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269 |
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154 |
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0.81 |
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0.49 |
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A resource in-fill drilling program is scheduled to commence in February to expand the known
mineralization and further explore the hypogene IOGC potential of the Swan copper-gold
system at depth.
Amethyst Castle copper, gold and uranium discovery
Ongoing
exploration at Amethyst Castle, located approximately nine kilometres southwest of
Swan, has encountered copper, gold and uranium mineralization in several areas of widespread
intense hydrothermal brecciation.
Previous, shallow BQ-sized diamond drilling by other companies identified the presence of
copper-bearing haematite (iron) matrix breccia at the Amethyst Castle prospect. Sampling by Ivanhoe
of the remnant core from this earlier drilling identified highly significant gold and uranium
values. The main targets identified to date are in the vicinity of the old workings and previous
drilling (essentially recessive terrain with little or no exposed bedrock) and the prominent
topographic features at Castle Mount and Amethyst Castle which are comprised of
silicified hydrothermal breccias.
In February and March, 2006, dipole-dipole induced polarization/resistivity and SAM (sub-audio
magnetics) surveys were completed over the main prospect areas. The positive results partially
reflected disseminated chalcocite and gold mineralization; however, a planned detailed gravity
survey is expected to be a better method for drill targeting. Gravity surveys were fundamental in
the discovery of the Prominent Hill IOCG deposit, currently being developed by Oxiana Resources in
South Australias Gawler
Craton.
Ivanhoe drilled 14 reverse-circulation (RC) holes totalling 2,720 metres in May, 2006, to test the
defined IP anomalies. These holes intercepted biotite schists, albite-haematitealtered granite and
probable breccias. Haematite was the dominant iron oxide mineralization encountered, with some
magnetite observed in the lower sections of several holes. The results are highly encouraging as
they reflect the presence of an IOGC style of mineralization, similar to that identified at Swan,
carrying significant gold, copper and uranium. Results from the preliminary RC program are
presented below.
Amethyst Castle: Significant RC Drill Results from May 2006
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Downhole |
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Downhole |
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depth |
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Downhole |
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Hole |
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depth from |
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to |
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interval |
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Copper |
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Gold |
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Uranium |
ACRC -06- |
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(metres) |
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(metres) |
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(metres) |
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% |
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g/t |
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ppm |
001 |
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80 |
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92 |
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12 |
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0.03 |
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0.82 |
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239 |
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004 |
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34 |
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40 |
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6 |
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0.29 |
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0.64 |
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230 |
|
005 |
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34 |
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44 |
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10 |
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0.89 |
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0.33 |
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20 |
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006 |
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56 |
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66 |
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10 |
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0.99 |
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0.77 |
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66 |
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146 |
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154 |
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8 |
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0.39 |
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0.99 |
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93 |
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170 |
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182 |
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12 |
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0.41 |
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1.11 |
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27 |
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including |
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170 |
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176 |
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6 |
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0.72 |
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1.88 |
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41 |
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009 |
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118 |
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120 |
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2 |
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0.05 |
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1.48 |
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472 |
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144 |
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154 |
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10 |
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1.38 |
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1.66 |
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574 |
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010 |
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4 |
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30 |
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26 |
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0.56 |
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0.24 |
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37 |
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including |
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8 |
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18 |
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10 |
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0.91 |
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0.27 |
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62 |
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including |
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28 |
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30 |
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2 |
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1.75 |
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0.12 |
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37 |
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48 |
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50 |
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2 |
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1.37 |
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0.15 |
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11 |
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86 |
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94 |
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8 |
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0.34 |
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0.43 |
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197 |
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014 |
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164 |
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166 |
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2 |
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0.93 |
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0.55 |
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84 |
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Six diamond holes totalling 2,200 metres were subsequently drilled into additional geophysical
and geological targets. High-grade, breccia-hosted chalcocite mineralization was intersected in
holes ACDD003 and ACDD006. These intercepts are classic IOCG fluidized hematite matrix
multi-clastic breccias with chalcocite present in both the clasts and matrix. Chalcocite, bornite,
chalcopyrite with carbonate veins and vein breccias occur in ACD002, while similar assemblages also
were noted with silica, albite and hematite alteration in ACD004. Results from the preliminary
diamond drilling program are
presented below.
Amethyst Castle: Significant Breccia-Hosted Chalcocite Diamond Drill Results
2006
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Hole |
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Amethyst |
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Downhole |
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Downhole |
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Downhole |
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Castle |
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depth from |
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depth to |
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interval |
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Copper |
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Gold |
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Uranium |
DDH-06- |
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(metres) |
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(metres) |
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(metres) |
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% |
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g/t |
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ppm |
002 |
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215 |
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224 |
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9 |
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0.49 |
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0.05 |
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158 |
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415 |
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416 |
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1 |
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0.29 |
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0.12 |
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1800 |
* |
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440 |
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442 |
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2 |
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0.24 |
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0.04 |
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1074 |
* |
003 |
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38 |
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54 |
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16 |
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3.67 |
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2.31 |
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121 |
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including |
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40 |
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45 |
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5 |
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8.74 |
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6.41 |
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162 |
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including |
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43 |
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44 |
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1 |
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11.4 |
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26.9 |
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284 |
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004 |
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70 |
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110 |
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40 |
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0.12 |
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0.01 |
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124 |
* |
including |
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101 |
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110 |
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9 |
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0.17 |
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0.01 |
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245 |
* |
006 |
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41 |
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52 |
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11 |
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0.10 |
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0.01 |
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378 |
* |
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81 |
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92 |
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11 |
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0.16 |
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0.04 |
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123 |
* |
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187 |
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196 |
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9 |
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1.25 |
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1.30 |
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213 |
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222 |
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230 |
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8 |
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3.73 |
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2.42 |
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80 |
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280 |
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290 |
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10 |
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0.72 |
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1.80 |
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383 |
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Intersections based on copper cutoff of 0.25% unless marked by an *. All Amethyst samples
were assayed for uranium.
These highly encouraging intersections and, more importantly, the intensity and style of the
breccia-hosted mineralization, demonstrate a large-scale IOCG system at a very early stage of
exploration. Breccia outcrops that can be traced on the surface to the north, including the
Amethyst Castle Prospect itself, have yet to be tested by deeper drilling. Diamond hole ACD006
appears to have intersected the outer part of a much larger haematitic breccia body, which also is
untested. A detailed gravity survey and additional geophysics are planned as soon as crews become
available. Diamond drilling now has recommenced at Amethyst Castle and will be ongoing throughout
2007.
Metal Ridge discovery
Five diamond-drill holes totalling 2,581 metres were completed at Metal Ridge in late 2006.
Initial targeting was based on known copper-in-soil and trench geochemical anomalies and combined
SAM magnetic and IP chargeability features. The Metal Ridge North prospect is 1.5 kilometres
southeast of the former Lady Ella copper-gold mine, which also is on Ivanhoes exploration ground,
approximately four kilometres east of Amethyst Castle and approximately 10 kilometres north of the
former producing Selwyn Mine. Located within the highly prospective Mt. Dore fault zone,
mineralization at Metal Ridge North is found within the same black shale of the mid-Proterozoic
Kuridala Formation that hosts the Kuridala deposits to the north and the Mt. Dore deposit to the
south, which also is within Ivanhoes licence area. The Mt. Dore deposit contains significant oxide
copper mineralization that was delineated by previous operators. This oxide style of mineralization
can be traced sporadically along trend to the Metal Ridge prospect, a distance of approximately six
kilometres, where high-grade copper oxide mineralization historically has been mined by hand from
numerous shafts and small pits. This entire belt has been the centre of extensive prospecting since
the early 1900s in response to the numerous zones of high-grade copper and gold found at surface.
Mineralization within the prospect can be divided into two styles: black-shale-hosted
pyrrhotitechalcopyrite- pyrite stockwork and red-rock-hosted disseminated chalcopyrite- pyrite ±
molybdenum, fluorite, sphalerite and galena. Mineralization of both styles generally is associated
with north-trending, steeply-east-dipping shear zones. These are postulated to be associated with
one of the many reactivations of the interpreted Mt. Dore fault zone.
First-pass drilling at Metal Ridge North has identified several zones of highly anomalous copper
and gold ± uranium-molybdenum-lead-zinc. This drilling has shown that the prospect contains three
critical criteria needed for a major IOCG deposit: 1) a favourable host rock, 2) a major regional
structure (Mt. Dore fault zone) and 3) the fluid chemistry and fluid volumes needed to mobilize and
deposit large volumes of copper, gold and uranium. The magnetic and conductivity anomalies at Metal
Ridge North represent a highly prospective, 1.5-kilometre-long target, open to the north and south,
which has not yet been adequately tested. Drill assay results are pending.
Uranium potential within Ivanhoes tenements
In 1957, Rio Tinto flew an airborne radiometric survey south of Malbon in the Cloncurry
district and in the vicinity of Ivanhoes existing tenements, possibly as a result of the discovery
of the Mary Kathleen deposit. Uranium was first indicated within Ivanhoes Cloncurry tenements in
the late 1960s and mid-1970s, with work carried out at the Elizabeth Anne uranium prospect. Uranium
also was discovered at the Dairy Bore, Old Fence, U2 and Robert Heg prospects, all in the Kuridala
area in the northern part of Ivanhoes tenements.
Previous work compiled from exploration programs conducted 30 years ago is being assessed. During
this earlier period, Marathon Oil and Minerals Pty. Ltd. completed 56 percussion holes and three
diamond holes at the Elizabeth Anne uranium prospect.
Marathon reported that 25 of the holes encountered anomalous uranium mineralization of >250ppm
U308. A total of 20 holes contained sample intervals (widths were not stated) that returned values
of up to 500ppm U308. The best reported intercept was five feet that assayed 7200ppm U308. In
November, 2006, Ivanhoe commissioned an airborne radiometric survey over the northern tenements.
This survey has generated numerous substantial uranium anomalies that will be the subject of
high-priority follow-up in 2007.
Assays
All Cloncurry samples were assayed by SGS at its analytical facilities in Townsville and
Perth,
Australia.
Qualified Person
The technical information in this release is based on information compiled by James Heape, a
Fellow of the Australian Institute of Geoscientists and a Qualified Person as required by NI 43-
101. Mr. Heape, a full-time Ivanhoe Cloncurry employee, has sufficient experience that is relevant
to the style of mineralization and type of deposit under consideration, and to the activity that he
is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Ivanhoe shares are listed on the Toronto, New York and NASDAQ stock exchanges under the
symbol IVN.
Additional details on the Ivanhoe Mines website
Additional information materials, including maps, illustrations and photographs that are
associated with this announcement and developments at the Cloncurry project, will be posted on the
Ivanhoe website: www.ivanhoemines.com.
Information contacts:
Investors: Bill Trenaman: +1.604.688.5755 / Media: Bob Williamson: +1.604.688.5755
Forward-Looking
Statements. This document includes forward-looking statements that include, but are not limited to,
statements concerning Ivanhoes planned exploration program at the Cloncurry prospect and other
statements that are not historical facts. When used in this document, the
words such as could, plan, estimate, expect, intend, may, potential, should, and
similar expressions are forward-looking statements. Although Ivanhoe Mines believes that its
expectations reflected in these forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual results will be consistent with
these forward-looking statements. Important factors that could cause actual results to differ from
these forward-looking statements are disclosed under the heading Risk Factors and elsewhere in
the corporations periodic filings with Canadian and US securities regulators.