Form 6-K
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: August 9, 2010
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:
News Release
August 9, 2010
Altynalmas Golds drilling program continuing to confirm grades
and extent of high-grade gold mineralization
at Kyzyl Gold Project in Kazakhstan
Fluor Canada retained to complete Feasibility Study for planned mine
ALMATY, KAZAKHSTAN Robert Friedland, Chairman of Ivanhoe Mines Ltd. and Altynalmas Gold Ltd.,
and David Woodall, President and Chief Executive Officer of Altynalmas Gold, announced today that
the ongoing resource expansion and exploration drilling program is continuing to confirm the grades
and extent of high-grade gold mineralization that was used to calculate the former Soviet-era gold
resources at Altynalmass Kyzyl Gold Project in northeastern Kazakhstan. Ivanhoe Mines owns 50% of
Altynalmas Gold.
Recent received assays of significant intercepts (which approximate truth widths) of high-grade
gold mineralization drilled between October 2009 and April 2010 include:
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42 metres of 13.56 g/t gold in hole BAK-48-2010; |
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37 metres of 11.95 g/t gold in hole BAK-46-2010; |
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21 metres of 13.37 g/t gold in hole BAK-54-2010; |
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34 metres of 12.59 g/t gold in hole BAK-58-2010; and |
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10 metres of 15.21 g/t gold in hole BAK-62-2010. |
A complete summary of recent drill results is included in the accompanying Table 2 (and also are
shown on illustrations on Ivanhoes website at www.ivanhoemines.com).
As of July 31, Altynalmas had completed a total of 52,563 metres of drilling. The company is
continuing its aggressive drilling program designed to expand and upgrade the NI 43-101-compliant
resources and reserves at the Kyzyl Project, with a further 39,000 metres planned for completion in
2010.
These new assay results were not included in the June 2010 Pre-Feasibility Study. Based on the
ongoing successes that we are experiencing in our drilling program, we expect that we will see
additional increases in the projects NI 43-101 reserves and resources by the end of this year,
which will further improve project economics, Mr. Woodall said.
It also is very encouraging that our drilling continues to yield improved grades and widths of
gold intercepts over Soviet-era discoveries.
Fluor Canada retained to undertake Feasibility Study for Kyzyl Gold Project
Mr. Woodall said that Altynalmas Gold has retained Fluor Canada Ltd., of Vancouver, Canada, to
complete a detailed Feasibility Study as the next step in the development plan for the Kyzyl Gold
Project. The study is expected to be completed in the first quarter of 2011.
Altynalmas is focused on building a new, state-of-the-art gold mine designed to produce a
first-stage average of 368,000 ounces of gold per annum over a 16-year mine life. Based on current
parameters, the operation initially would treat an estimated 1.5 million tonnes of ore per year at
an estimated average gold grade of 8.53 g/t. The current metallurgical test-work programs have
achieved gold recoveries of between 86% and 90% using fluidized-bed roasting.
In June 2010, Scott Wilson Inc., of London, England, produced an independent National Instrument
43-101-compliant Technical Report on the Kyzyl Gold Project that confirmed the economics of
Altynalmas Golds development plan. Scott Wilson estimated probable mineral reserves contained in
Lenses 1 and 9-10 of the Bakyrchik Deposit one of several deposits comprising the Kyzyl Gold
Project total 13.58 million tonnes, with a grade of 8.65 g/t gold, containing 3.78 million
ounces of gold, using a cut-off grade of 4.0 g/t gold and a gold price of US$900 per ounce.
In the Scott Wilson Technical Report, estimated NI 43-101 mineral resources (inclusive of reserves)
total 13.82 million tonnes at a grade of 9.36 g/t gold for indicated resources and, in addition,
12.02 million tonnes at a grade of 8.58 g/t gold for inferred resources.
Table 1: Bakyrchik Deposit Mineral Resources Inclusive of Reserves (as of 30/04/2010)
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Indicated |
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Inferred |
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Grade |
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Contained |
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Grade |
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Contained |
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Tonnes |
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(cut) Au |
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Gold |
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Tonnes |
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(cut) Au |
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Gold |
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Lens |
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(000) |
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(g/t) |
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(000 oz) |
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(000) |
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(g/t) |
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(000 oz) |
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1 |
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11,036 |
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9.61 |
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3,411 |
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6,833 |
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8.35 |
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1,834 |
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9-10 |
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2,640 |
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8.32 |
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706 |
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653 |
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7.89 |
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166 |
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12 |
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142 |
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8.68 |
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40 |
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4,537 |
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9.03 |
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1,317 |
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Total |
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13,818 |
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9.36 |
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4,157 |
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12,023 |
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8.58 |
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3,317 |
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Notes: |
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1. |
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Mineral Resources were estimated within wireframes constructed at a nominal cut-off grade of
3.00 g/t gold, with an incremental cut-off grade of 2.00 g/t gold where warranted. |
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2. |
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A minimum true width of three metres was used to provide a minimum mining width of four
metres. |
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3. |
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High gold assays were capped at 35 g/t gold. Assays were capped prior to compositing. |
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4. |
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Mineral Resources were estimated using an average long-term gold price of US$1,000 per ounce. |
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5. |
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Block sizes are 5 m x 5 m x 5 m. |
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6. |
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Inverse distance squared was used to interpolate block grades. |
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7. |
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Mineral Resources are reported at a block cut-off grade of 3.00 g/t gold. |
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8. |
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Bulk density is 2.7 t/m3. |
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9. |
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Summation errors are due to rounding. |
The Technical Reports Base Case economic assessment is based only on reserves and calculated an
after-tax net present value of US$406 million using a 5% discount rate. A Life-of-Mine Sensitivity
Case, completed to better reflect the Kyzyl Gold Project and the size of the resource, calculated
an after-tax net present value of US$820 million, using the same economic parameters. (See Ivanhoe
Mines June 30, 2010, news release for further details on the Pre-Feasibility Study.)
New Altynalmas Drill Results
The assay results from new drilling in Lens 1 of the Bakyrchik Deposit are listed below (and also
shown on accompanying illustrations). Intersection widths and grades correlate well with the
results of the earlier, Soviet-era drilling results. All the holes intercepted significant widths
of high-grade gold mineralization, with multiple intercepts grading at or above one ounce of gold
per ton (34.3 grams per tonne).
2
Table 2 Bakyrchik Deposit Drill Results: Lens 1, July 27, 2010
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Interval |
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From |
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To |
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Length |
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Au |
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Hole-ID |
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Section |
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(m) |
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(m) |
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(m) |
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(g/)t |
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BAK-06-2009 |
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435300E |
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354.0 |
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394.0 |
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40.0 |
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10.96 |
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incl |
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383.0 |
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387.0 |
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4.0 |
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23.55 |
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BAK-26-2010 |
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435325 |
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488.0 |
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489.0 |
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19.0 |
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12.19 |
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incl |
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502.0 |
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505.0 |
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3.0 |
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21.95 |
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and |
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520.0 |
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549.0 |
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29.0 |
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9.10 |
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BAK-29-2010 |
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435375 |
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390.0 |
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413.0 |
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23.0 |
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7.76 |
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and |
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459.0 |
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463.0 |
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4.0 |
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14.18 |
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BAK-32-2009 |
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435375 |
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491.0 |
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522.0 |
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36.0 |
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7.07 |
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and |
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553.0 |
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574.0 |
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21.0 |
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34.71 |
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incl |
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554.0 |
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569.0 |
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15.0 |
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45.49 |
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BAK-33-2010 |
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435350E |
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294.0 |
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319.0 |
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25.0 |
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9.70 |
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BAK-34-2010 |
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435275E |
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467.0 |
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509.0 |
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42.0 |
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13.56 |
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incl |
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472.0 |
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488.0 |
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16.0 |
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20.77 |
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BAK-35-2010 |
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435175E |
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504.0 |
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531.0 |
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27.0 |
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9.73 |
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incl |
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507.0 |
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510.0 |
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3.0 |
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18.70 |
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BAK-37-2010 |
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435400E |
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424.0 |
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429.0 |
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5.0 |
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7.49 |
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and |
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502.0 |
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505.0 |
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3.0 |
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6.26 |
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BAK-38-2010 |
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435225E |
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404.0 |
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416.0 |
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12.0 |
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15.89 |
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incl |
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405.0 |
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412.0 |
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7.0 |
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23.40 |
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BAK-40-2010 |
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435375E |
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530.0 |
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565.0 |
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35.0 |
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17.78 |
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incl |
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541.0 |
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556.0 |
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15.0 |
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29.73 |
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and |
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571.0 |
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579.0 |
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8.0 |
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6.62 |
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and |
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588.0 |
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592.0 |
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4.0 |
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5.10 |
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and |
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601.0 |
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607.0 |
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6.0 |
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3.02 |
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BAK-41-2010 |
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435150E |
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499.0 |
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508.0 |
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9.0 |
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20.42 |
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incl |
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500.0 |
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507.0 |
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7.0 |
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23.19 |
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BAK-42-2010 |
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435450E |
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291.0 |
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295.0 |
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4.0 |
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|
6.35 |
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and |
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353.0 |
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368.0 |
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15.0 |
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|
7.23 |
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BAK-43-2010 |
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435175E |
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533.0 |
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541.0 |
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8.0 |
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|
9.35 |
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incl |
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536.0 |
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539.0 |
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3.0 |
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17.03 |
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BAK-45-2010 |
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|
435250E |
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475.0 |
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|
506.0 |
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|
31.0 |
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6.92 |
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3
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Interval |
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From |
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To |
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Length |
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|
Au |
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Hole-ID |
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Section |
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(m) |
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(m) |
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(m) |
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|
(g/)t |
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BAK-46-2010 |
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|
435325E |
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|
351.0 |
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|
388.0 |
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|
37.0 |
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|
11.95 |
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incl |
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|
354.0 |
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364.0 |
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|
10.0 |
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19.24 |
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BAK-48-2010 |
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435325E |
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459.0 |
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508.0 |
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|
49.0 |
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|
|
10.05 |
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incl |
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|
471.0 |
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479.0 |
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8.0 |
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16.50 |
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BAK-51-2010 |
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|
435075E |
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|
510.0 |
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517.0 |
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|
7.0 |
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|
7.90 |
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BAK-53-2010 |
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435625E |
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|
197.0 |
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209.0 |
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|
12.0 |
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|
7.19 |
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BAK-54-2010 |
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|
435225E |
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|
527.0 |
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|
548.0 |
|
|
|
21.0 |
|
|
|
13.37 |
|
incl |
|
|
|
|
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|
529.0 |
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|
537.0 |
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|
8.0 |
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|
23.23 |
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BAK-56-2010 |
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|
435600E |
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|
219.0 |
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|
|
232.0 |
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|
|
13.0 |
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|
|
7.62 |
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BAK-57-2010 |
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|
435150E |
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|
518.0 |
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|
|
531.0 |
|
|
|
13.0 |
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|
6.50 |
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BAK-58-2010 |
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|
435275E |
|
|
|
491.0 |
|
|
|
525.0 |
|
|
|
34.0 |
|
|
|
12.59 |
|
incl |
|
|
|
|
|
|
493.0 |
|
|
|
498.0 |
|
|
|
5.0 |
|
|
|
19.13 |
|
|
|
|
|
|
|
|
504.0 |
|
|
|
511.0 |
|
|
|
7.0 |
|
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|
17.39 |
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BAK-61-2010 |
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|
435500E |
|
|
|
295.0 |
|
|
|
308.0 |
|
|
|
13.0 |
|
|
|
7.27 |
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BAK-62-2010 |
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|
435100E |
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|
485.0 |
|
|
|
495.0 |
|
|
|
10.0 |
|
|
|
15.21 |
|
incl |
|
|
|
|
|
|
489.0 |
|
|
|
494.0 |
|
|
|
4.0 |
|
|
|
27.31 |
|
|
|
|
Notes: |
|
1. |
|
Intersection assays are a composite of one-metre assays calculated from
interval-weighted assays over the intersection length using a 2.0 g/t Au cut-off. |
|
2. |
|
The included intervals are significantly higher in tenor and exceed 15.0 g/t gold
within the 2.0 g/t gold cut-off intervals. |
|
3. |
|
No high assay values have been cut. |
|
4. |
|
Holes BAK-06-2009, BAK-26-2010, BAK-29-2010 and BAK-32-2010 are awaiting completion of
assaying. |
|
5. |
|
Interval widths generally are equivalent to true widths. |
Quality Assurance and Quality Control
Exploration core was drilled HQ size (63.5-mm-diameter core) using western drill strings. Triple
tube HQ3 (61.1-mm-diameter core) was used for geotechnical logging within, and on the shoulders, of
the mineralized zone. Assaying of the samples was completed at ALS Chemex, an independent
ISO-credited laboratory in Vancouver, Canada, using fire assay fusion, followed by a gravimetric
analysis procedure.
Quality assurance and quality control is independently monitored and audited by Scott Wilson RPA
with a quality-control program, which includes the use of matrix matched assay standard reference
samples, blanks, duplicates, repeats and internal ALS Chemex quality-assurance procedures.
4
Qualified Person
Disclosures of a scientific or technical nature in this release have been reviewed by David
Woodall, Chief Executive Officer of Altynalmas Gold Ltd. and a Qualified Person as defined by
National Instrument 43-101.
About Ivanhoe Mines
Ivanhoe Mines (NYSE, NASDAQ & TSX: IVN) is an international mining company with operations focused
in the Asia Pacific region. Assets include the companys 66% interest in the Oyu Tolgoi copper-gold
mine development project in southern Mongolia; its 57% interest in Mongolian coal miner SouthGobi
Resources (TSX: SGQ; HK: 1878); an 81% interest in Ivanhoe Australia (ASX: IVA), a
copper-gold-uranium-molybdenum-rhenium exploration and development company; and a 50% interest in
Altynalmas Gold Ltd., a private company developing the Kyzyl Gold Project in Kazakhstan.
Ivanhoe Mines shares are listed on the New York, NASDAQ and Toronto stock exchanges under the
symbol IVN.
Information contacts
Investors: Bill Trenaman +1.604.688.5755 / Media: Bob Williamson +1.604.331.9830
Website: www.ivanhoemines.com
Forward-Looking Statements:
Certain statements made herein, including statements relating to matters that are not historical
facts and statements of our beliefs, intentions and expectations about developments, results and
events which will or may occur in the future, constitute forward-looking information within the
meaning of applicable Canadian securities legislation and forward-looking statements within the
meaning of the safe harbor provisions of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking information and statements are typically identified by words such as
anticipate, could, should, expect, seek, may, intend, likely, plan, estimate,
will, believe and similar expressions suggesting future outcomes or statements regarding an
outlook. These include, but are not limited to, statements respecting Altynalmas Golds planned
exploration and development work; the planned development work at the Bakyrchik mine to support a
mine producing 1.5 million tones per year; the timing for completion of the planned Pre-Feasibility
Study; the plan to commence mine construction in 2011 and production in 2013; the plan to pursue an
independent stock listing; the ability to consistently achieve recovery rates between 86% and 90%,
and the likely significant increase in the projects indicated resource in the near future.
All such forward-looking information and statements are based on certain assumptions and analyses
made by Ivanhoe Mines management in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as other factors management believes
are appropriate in the circumstances. These statements, however, are subject to a variety of risks
and uncertainties and other factors that could cause actual events or results to differ materially
from those projected in the forward-looking information or statements. Important factors that could
cause actual results to differ from these forward-looking statements include those described under
the heading Risks and Uncertainties elsewhere in the Companys MD&A. The reader is cautioned not
to place undue reliance on forward-looking information or statements.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission permits U.S. mining companies, in their
filings with the SEC, to disclose only those mineral deposits that a company can economically and
legally extract or produce. We use certain terms in this release such as measured, indicated,
and inferred resources, which the SEC guidelines generally prohibit U.S. registered companies
from including in their filings with the SEC. U.S. investors are urged to consider closely the
disclosure in our Form 40-F which may be secured from us, or from the SECs website at
www.sec.gov/edgar.shtml.
5
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: August 9, 2010 |
By: |
/s/ Beverly A. Bartlett
|
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BEVERLY A. BARTLETT |
|
|
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Vice President &
Corporate Secretary |
|