Phase-one drilling program improves grades and extent of high-grade gold mineralization at Ivanhoe Mines’ 50%-owned Kyzyl Gold Project in northeastern Kazakhstan
Tuesday, June 8th, 2010
Robert Friedland, Chairman of Ivanhoe Mines, and David Woodall, Chief Executive Officer of Altynalmas Gold Ltd., announced today that gold mineralization has been expanded and upgraded by confirmatory drilling at Altynalmas’s Kyzyl Gold Projectin northeastern Kazakhstan. Ivanhoe Mines owns 50% of Altynalmas.
Long intercepts of high-grade gold mineralization, including 38 metres of 17.13 grams of gold per tonne (g/t) in hole BAK-23-2010, 43 metres of 11.18 g/t gold in hole BAK-14-2009 and 22 metres of 10.31 g/t gold in hole BAK-27-2010, are among the results from 57 exploration holes, totalling 27,346 metres, that were drilled as part of a phase one program between October 2009 and April 2010.
”We have been able to significantly improve drill-core recovery from the gold zones to more than 90% using the wireline and triple-tube method in the current drilling program,” Mr. Woodall said. “This is much better than the core recovery of approximately 75% that was managed by drilling during Soviet-era development on the Kyzyl deposits.
“Our latest drilling yielded improved grades and widths of gold intercepts over Soviet-era discoveries, while also confirming the proven quality of the Kyzyl resource.”
Mr. Woodall said the key value drivers of the Kyzyl Gold Project are grade and metallurgical recoveries.
“We expected significant gold intercepts and are very pleased with the results produced so far by the current drilling program. We’re confident that the pre-feasibility study resource model will be improved when these new drilling results are incorporated. The drilling results and the metallurgical test-work programs, achieving gold recoveries of between 86% and 90% using fluidized-bed roasting, indicate the robustness and quality of the project.”
Mr. Woodall said the drilling results will be used in a pre-feasibility study being prepared by Scott Wilson Roscoe Postle and Associates (Scott Wilson RPA), of Toronto, Canada. The study, set for completion within the next month, is expected to upgrade a large percentage of the Kyzyl Gold Project’s Resources into Mineral Reserves.