Ivanhoe Mines Ltd.

Ivanhoe Mines Ltd.

January 16, 2008 08:00 ET

Ivanhoe Mines Reports Additional Drilling Results Extending Heruga Copper, Gold and Molybdenum Discovery in Mongolia

ULAANBAATAR, MONGOLIA--(Marketwire - Jan. 16, 2008) - John Macken, President and CEO of Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN), and Charles Forster, Ivanhoe's Senior Vice President of Exploration, Mongolia, today announced additional drilling results on the Heruga copper, gold and molybdenum deposit in southern Mongolia. The Heruga Deposit is on Entree Gold's Javkhlant license, which adjoins the southern boundary of Ivanhoe Mines' Oyu Tolgoi copper and gold development project. The Javkhlant license is part of the Entree-Ivanhoe Mines joint-venture agreement area.

A total of 32 drill holes (including daughter holes) on nine sections spaced at 150- to 300-metre intervals along a 1,600-metre strike length of the Heruga discovery now have been completed, or are in progress. Significant copper, gold and molybdenum mineralization has been intersected in new drill holes on six sections extending along 1,600 metres of strike length. Five rigs are drilling on the Heruga Deposit.

Results from eight additional holes are summarized in Table 1. Hole collar locations are shown on a map to be posted on Ivanhoe's website at www.ivanhoemines.com. Previous results from Heruga were reported in news releases dated October 3 and October 9, 2007.

The recent drill holes have confirmed the presence of Oyu Tolgoi-style mineralization at Heruga, provided continuity of the mineralization between drill sections and confirmed that the mineralization remains open to the east and north. Combined with the mineralization discovered to the north of Oyu Tolgoi, this mineralized structural trend now has been traced for more than 20 kilometres.

Discussion and Highlights of Recent Drilling

A total of 27 drill holes have been completed to date with five more currently in progress. These have provided Entree and Ivanhoe Mines with additional information about the structure and controls of the mineralization at Heruga. The most recent drilling has continued to define a block of copper-gold-molybdenum mineralization with an approximate strike length of up to 1,600 metres from 4757800N to 4759400N, starting at a vertical depth of approximately 600 metres below surface with a vertical thickness of approximately 400 to 800 metres, and a width of 200 to 300 metres. Current drilling is focused on adding to mineralization on the northern end and the eastern side of the deposit. At the south end of the deposit, EJD0019 and EJD0019A did not intersect significant mineralization and the mineralized zone is apparently cut-off by an east-west trending fault to the south of the EJD0022 section. Hole EJD001A deepened the earlier hole, EJD001, which had been terminated at a depth of 1138 metres. Hole EJD001A intersected over 400 metres of gold-rich mineralization, supporting the theory that the mineralized zone deepens and plunges to the north below the depth of previous drilling. Drilling of EJD008A is currently in progress to test deeper and to the east on this section line.

The most recent results support the working theory that gold-rich copper mineralization is capped by a molybdenum-rich shell. The deposit has been cut longitudinally by a north-northeast trending fault, locally referred to as the Bor Tolgoi Fault, which down drops the mineralization along its western side. The southern half of the deposit lies mostly on the east side of the Bor Tolgoi while the northern half of the deposit lies to the west with barren quartz monzodiorite now defined to the east of the fault in this northern sector. Two rigs are drilling to delineate the gold-rich zone between EJD0020A and EJD0001A and one rig is drilling 200 metres north of EJD0001A to extend the zone to the north. On the southern half of the deposit, EJD0024 is infill drilling to extend the gold-rich mineralization deeper while EJD00026 is drilling 400 metres east of EJD0023 to extend the eastern limit of the molybdenum, gold-rich quartz monzodiorite intersected in EJD0013B and EJD0023.

The Oyu Tolgoi structural trend, as currently defined, now has a total strike length in excess of 20 kilometres, encompassing Oyu Tolgoi in the centre and extensions onto the joint Entree/Ivanhoe agreement area to the south and north. From the Heruga Deposit in the south, the trend now extends through the Oyu Tolgoi deposits to the lower grade Ulaan Khud or Airport North Zone, located approximately 10 kilometres north-northeast of the Hugo Dummett Deposit.

Table 1. Selected mineralized intervals from the Heruga Deposit

Down-hole depth Interval Cu Au Mo Cu Eq(i)
from-to m m % g/t ppm %

Hole EJD0001A
1174 - 1602 430 0.42 0.75 117 1.00
Incl. 1442 - 1604 162 0.42 1.41 7 1.32

Hole EJD0013B
602 - 608 6 0.93 0.05 420 1.32
716 - 790 74 0.70 0.28 281 1.12
966 - 1254 288 0.43 0.89 120 1.10

Hole EJD0015A
726 - 1444 718 0.32 0.28 85 0.58
Incl. 1310 - 1436 126 0.42 0.50 98 0.83

Hole EJD0017A
740 - 1338 598 0.62 0.60 173 1.15

Hole EJD0020A
1422 - 1460 38 0.43 1.45 19 1.37

Hole EJD0021
1000 - 1294 294 0.36 0.68 41 0.83
1534 - 1670 136 0.57 1.00 69 1.26

Hole EJD0022
1200 - 1294 94 0.78 0.61 125 1.28

Hole EJD0023
1110 - 1216 106 0.35 0.97 22 0.98
1302 - 1328 26 0.24 1.92 28 1.48
1500 - 1646 pending

(i) Copper Equivalent estimated using $1.15/lb copper, $500/oz gold and
$10/lb molybdenum, without regard to recoveries.

Drill maps from the Heruga Deposit will be posted to Ivanhoe's website at www.ivanhoemines.com and to Entree's web site at www.entreegold.com.

Quality Assurance and Quality Control

Charles Forster, P.Geo., Ivanhoe Mines' Senior Vice President of Exploration, Mongolia, Stephen Torr, P.Geo., Ivanhoe Mines' Chief Resource Geologist, and Robert Cann, P.Geo., Entree's Vice-President, Exploration, all qualified persons as defined by NI 43-101, supervised the preparation of the information in this release.

SGS Mongolia LLC prepares the split core at the project site and assays all samples at its facility in Ulaanbaatar, Mongolia. Ivanhoe's QA/QC program is monitored by independent consultant Dr. Barry Smee, P.Geo., and managed on site by Dale Sketchley, M.Sc., P.Geo. In-house, matrix-matched copper-gold-molybdenum standards and blanks are inserted at the sample preparation lab on the project site to monitor the quality control of the assay data.

Ivanhoe Mines currently has a 51% participating interest in the Ivanhoe-Entree joint venture, which covers approximately 40,000 hectares of Entree's 100%-owned Shivee Tolgoi Property (which includes the Javkhlant license), adjacent to Ivanhoe's Oyu Tolgoi Property. Ivanhoe earned the 51% interest by completing more than US$20 million of aggregate earn-in expenditures on the joint-venture properties to date. Ivanhoe intends to continue incurring earn-in expenditures in accordance with the terms of the joint-venture agreement with a view to increasing its participating interest in the project. Subject to Ivanhoe spending a total of US$35 million on exploration and/or development on the joint-venture properties prior to November 2012, Ivanhoe will earn:

- an 80% participating interest in all minerals extracted below a sub-surface depth of 560 metres on the optioned property; and

- a 70% participating interest in all minerals extracted from surface to a depth of 560 metres.

Ivanhoe also owns approximately 15% of the outstanding shares of Entree Gold (TSX:ETG)(AMEX:EGI). Ivanhoe's strategic partner in the development of the Oyu Tolgoi Project, Rio Tinto, owns approximately 16% of the outstanding shares of Entree Gold.

Ivanhoe Mines shares are listed on the Toronto, New York and NASDAQ stock exchanges under the symbol IVN.

Forward-Looking Statements - This news release contains forward-looking statements. Forward-looking statements are statements which relate to future events such as Ivanhoe's intent to continue incurring earn-in expenditures on the Heruga Deposit in accordance with the terms of the joint-venture agreement. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Readers are referred to the sections entitled "Risk Factors" in Ivanhoe Mines' periodic filings with Canadian and US Securities Commissions.

Contact Information

  • Ivanhoe Mines Ltd.
    Bill Trenaman
    Investor Relations
    (604) 688-5755
    Ivanhoe Mines Ltd.
    Bob Williamson
    (604) 688-5755
    Website: www.ivanhoe-mines.com