Thursday, July 1, 2010

Ivanhoe Mines (NYSE:IVN) Confirms Economic Viability of Kyzyl Gold Project

Ivanhoe Mines (NYSE:IVN) presented some more good news for the company, as a new, independent pre-feasibility study has confirmed the Kyzyl Gold Project in northeastern Kazakhstan is economically viable.

Altynalmas owns 100 percent of the Kyzyl Gold Project, while Ivanhoe owns 50 percent of Altynalmas.

Executive Chairman Robert Friedland and CEO David Woodall made the announcement at the Kazakhstan International Mineral and Metallurgy Congress in Astana, Kazakhstan.

Their press release included this:

"The Study and National Instrument 43-101-compliant Technical Report (NI
43-101) prepared by Scott Wilson Ltd., of London, England, is based on an underground mining operation producing an average of 368,000 ounces of gold per year during an initial mine life of up to 10 years.

"The Study states that the economics supporting Mineral Reserves have been established. The current drilling program converting Mineral Resources to Mineral Reserves has been very successful, ensuring confidence in the Life-of-Mine Sensitivity Case, with a potential, extended mine life of up to 16 years with the presently estimated Indicated and Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would allow them to be categorized as Mineral Reserves, and there is no certainty that the Life-of-Mine Sensitivity Case will be realized."

No comments: