LATEST EXPLORATION RESULTS CONFIRM GOLD AND COPPER VALUES INCREASE WITH DEPTH AT TURQUOISE HILL DISCOVERY IN MONGOLIA

Transcription

1 For Immediate Release January 21, 2002 LATEST EXPLORATION RESULTS CONFIRM GOLD AND COPPER VALUES INCREASE WITH DEPTH AT TURQUOISE HILL DISCOVERY IN MONGOLIA MONGOLIA Ivanhoe Mines Chairman Robert Friedland and Executive Vice-President, Exploration, Douglas Kirwin today released the latest update report on the continuing success of the company s exploration at the Turquoise Hill (Oyu Tolgoi) gold and copper discovery in southern Mongolia. Recent drilling highlights: Hole 180 intersected 802 metres (approximately half a mile) of 0.92 g/t gold and 0.56% copper (1.97 g/t gold equivalent). Drilling revealed a 120-metre section, between 706 metres and 826 metres, grading 3.44 g/t gold and 1.28% copper (5.83 g/t gold equivalent). With this hole, Ivanhoe has extended the high-grade, mineralized gold and copper porphyry at Southwest Oyu to a vertical depth in excess of 600 metres. Hole 183 intersected 562 metres of 1.44 g/t gold and 0.82% copper (2.97 g/t gold equivalent), including 336 metres of 1.93 g/t gold and 1.04% copper (3.87 g/t gold equivalent). Hole 172 intersected 630 metres of 0.78 g/t gold and 0.49% copper (1.69 g/t gold equivalent), including 116 metres of 2.35 g/t gold and 0.88% copper (4.00 g/t gold equivalent). Drilling indicates that the gold-to-copper ratio increases significantly with depth. Drilling indicates that gold and copper grades increase with depth. Deep drilling indicates the high-grade gold and copper shell increases in size with depth. and copper mineralization has been shown to extend beyond the northeastern limits of the induced polarization survey at Southwest Oyu. The Discovery Zone of gold and copper mineralization at Southwest Oyu has now been extended to approximately 1,200 metres in a northeast-southwest direction and 300 metres in a southeast-northwest direction, and remains open below a depth of 600 metres. The Turquoise Hill Project is located approximately 80 kilometres north of the Chinese border (at approximately the same latitude as Niagara Falls, on the Canada-US border, and the port of Marseille in the south of France). Ivanhoe s initial exploration has been concentrated on the Southwest Oyu

2 zone, one of four mineralized zones that have been identified to date within the Oyu Tolgoi project area. The results from the first 24 holes that Ivanhoe has now completed at Southwest Oyu have led to a much better understanding of the geometry, nature and depth potential of the high-grade gold and copper mineralization. Recent holes have significantly expanded the zone of porphyry-hosted gold and copper mineralization at Southwest Oyu, as defined by a 1 gram of gold per tonne grade shell that now can be projected to a true vertical depth of at least 600 metres or approximately 200 metres below the previously drill-tested extent of mineralization. The recent deep holes within the Discovery Zone also indicate that the ratio of gold to copper increases significantly with depth, trending from roughly 1 g/t gold to 1% copper (1.0:1.0) in the upper part of the deposit to approximately 2.5-to-3.0:1.0 in the deeper drill intercepts. Of particular note, Hole 180 intersected 208 metres grading 2.37 g/t gold and 1.05% copper (4.34 g/t gold equivalent), beginning at a down-hole depth of 618 metres and continuing to a down-hole depth of 826 metres. The high-grade monzodiorite and andesite host therefore remains open to depth in the highest grade mineralization yet discovered at Oyu Tolgoi. Hole 180 was drilled to a down-hole depth of 895 metres, the limit of the drill rig. (See accompanying cross-section showing holes 180, 172, 171 and 162). Hole 183, which was drilled to test the monzodiorite and andesite body, intersected 1.44 g/t gold and 0.82% copper (2.97 g/t gold equivalent) over 562 metres, to a down-hole depth of 666 metres. Assays below 666 metres for Hole 183 are pending. Hole 172, drilled in a northeasterly direction on the same section as the previously announced holes 161 and 162, intersected 630 metres of 0.78 g/t gold and 0.49% copper (1.69 g/t gold equivalent), including 116 metres of 2.35 g/t gold and 0.88% copper (4.00 g/t gold equivalent), indicating that high-grade mineralization continues to the northwest and showing that the 1 g/t gold grade shell widens at depth. The results from our infill drilling at Southwest Oyu are extremely encouraging and give us a promising start to the new year, Mr. Friedland said. They clearly demonstrate the consistency and high-grade nature of the Discovery Zone. The deep, high-grade intercepts in our recent holes 180 and 183 indicate that the mineralizing system is getting stronger with depth. Based on the deep intersections in holes 180 and 183, Ivanhoe s drilling indicates that the 1 g/t gold grade shell at Southwest Oyu, and the associated gold and copper halo mineralization, expand with depth. Cross-sections comparing the geometry and size of 1 g/t gold grade shells for the Batu Hijau and Grasberg orebodies in Indonesia, which illustrate the additional depth potential of mineralization in this type of porphyry deposit as compared to the currently known high-grade core at Southwest Oyu Tolgoi, will be updated and posted to Ivanhoe s website at Other worldclass porphyry copper-gold deposits, such as Grasberg and Batu Hijau, are being exploited with open pits designed to be approximately a kilometre deep. Ivanhoe s drilling has also extended the broader zone of mineralization surrounding the high-grade core at Southwest Oyu to approximately 1,200 metres in a northeast-southwest direction and 300 metres in a northwest-southeast direction. Current drilling at Southwest Oyu is designed to provide sufficient data for the calculation of a resource estimate within the first of a number of potential open pits within the 3-kilometre by 4-kilometre core of the Oyu Tolgoi project area. There are highly encouraging similarities in grade and geology between the Southwest Oyu Tolgoi zone and the Batu Hijau, Grasberg and other porphyry deposits. However, one potential economic advantage at Oyu Tolgoi is that the distal mineralization, which forms a halo peripheral to the high-grade core, is of economically significant grade, as opposed to being waste.

3 Examples of significant halo mineralization can be seen in Ivanhoe s Hole 165 (466 metres at 0.31 g/t gold and 0.41% copper (1.08 g/t gold equivalent)), Hole 167 (318 metres at 0.52 g/t gold and 0.49% copper (1.44 g/t gold equivalent)), Hole 180 between 60 and 534 metres (474 metres at 0.47 g/t gold and 0.44% copper (1.29 g/t gold equivalent)), and BHP s Hole 005 (142 metres at 0.93 g/t gold and 0.53% copper (1.92 g/t gold equivalent)). Assays are now complete for holes Assays are pending for the bottoms of holes 181, 182 and 183. (Locations are shown on the accompanying drill-plan map). Hole Total Depth From To Interval Copper (%) Equivalent ** OTD171* Hole 171 was drilled in a northeasterly direction on the same section as holes 172 and 162 to confirm grade and continuity within the Discovery Zone at Southwest Oyu Including OTD Hole 172 was drilled in a northeasterly direction on the same section as holes 171 and 162 to confirm grade and continuity within the Discovery Zone at Southwest Oyu Including OTD Hole 173 was drilled in a northeasterly direction on the same section as Hole 166 to confirm grade and continuity within the Discovery Zone at Southwest Oyu OTD Hole 174 was drilled in a northeasterly direction on the same section as holes 166 and 161 beyond the northeast boundary of the IP survey that identifies the Southwest Oyu Zone OTD Hole 175 was drilled to probe the southeastern margin of the Discovery Zone

4 Hole Total Depth From To Interval Copper (%) Equivalent OTD Hole 176, sited at Southwest Oyu approximately 130 metres northwest of Hole 175, was drilled to further delineate the subsurface distribution of the high-grade monzodiorite porphyry intersected in holes 150 and Including OTD Hole 177, sited at Southwest Oyu approximately 100 metres southwest of Hole 176, was drilled to test for strong copper-gold mineralization similar to that intercepted at depth in Hole OTD Hole 178, collared at the same site as 175, was drilled in a northwesterly direction to begin to test the northwestern margin of the Discovery Zone OTD Hole 179 was sited 120 metres northeast of Hole 160 to test for mineralization on the northeastern side of the unmineralized syenite and monzonite porphyry dyke swarm intercepted in previous holes OTD Hole 180 was sited 80 metres northwest of Hole 165 to test for significant copper-gold mineralization southwest of Hole 172 and northwest of Hole 165. The first 60 metres were in oxidized rock Including Including

5 Hole OTD 181 Total Depth From To Interval Copper (%) Equivalent Hole 181 was a scout hole drilled outside Southwest Oyu as a 120-metre step-forward hole from Hole 174 to test for possible mineralization beyond the northeastern edge of Southwest Oyu Zone OTD Hole 182 was a wildcat hole drilled west of Southwest Oyu to test a gossanous outcrop. There were no significant results. Hole Total Depth From To Interval Copper (%) Equivalent ** OTD 183 >666 Hole 183 was a steep Hole (70 ) drilled to confirm grade and continuity within the Discovery Zone at Southwest Oyu <0.1 <0.1 < Including >666 Pending Pending Pending *Assays for Hole 171 to a depth of 354 metres were reported in a November 26 th news release. **Conversion to gold equivalent based on following formula: equivalent = ((% Cu x 2204 lbs) x $0.75) + ( g/t x $8.84)) / ($8.84). Copper Price: US$0.75 /lb. Price: US$275/oz = US$8.84 /gram. Analabs Pty. Ltd. assays all samples at its facility in Ulaanbaatar, Mongolia. Chemex Labs and Bondar Clegg in Vancouver, Canada, perform check assays on a 1-in-20 basis. Assay results from all holes drilled to date are available on the Turquoise Hill Project Section on Ivanhoe s website at Ivanhoe Mines holds an option to acquire 100% of the Turquoise Hill Project from BHP-Billiton, subject to certain limited back-in-rights or a 2% NSR. Ivanhoe also holds 100% interests in four other coppergold, porphyry projects in Mongolia Oyut Ulaan, Chandman Uul, Oyut Ovoo and Saran Uul. Ivanhoe acquired the four projects in October, 2002, after completing extensive field investigations of more than 350 mineral occurrences throughout Mongolia during the past five years. Information contacts. Investors: Bill Trenaman / Media: Bob Williamson Website: 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 corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement. Charles N. Forster, P. Geo., of Ivanhoe Mines, a "Qualified Person" as defined by National Instrument of the Canadian Securities Administrators, has reviewed the technical information contained within this release.

6

7

8