Ivanhoe (NYSE:IVN) Shares Jump on Mineralization Find

Shares of Ivanhoe Mines Ltd. (NYSE:IVN) soared after they announced the discovery of a mineralized zone of gold and copper 1 kilometre long at its prolific Oyu Tolgoi project in Mongolia.

Consequently, the original estimates of copper and gold could be much larger than thought.

"To intercept almost one kilometre of copper and gold mineralization in a new drill hole is a remarkable development," Executive Chairman Robert Friedland said in a statement.

If this is close to the norm in the mine, the value of it could be astronomical, although that of course has to be proven.

Either way, Ivanhoe and partner Rio Tinto (NYSE:RTP) are sitting on billions worth of minerals.

Production will begin on the mine in the latter part of 2012.

Ivanhoe closed at $24.25 in New York, gaining $1.23, or 5.30 percent.