Drill Tracker Weekly: Assays Confirm New High-grade Zinc Discovery at Ivanhoe’s Kipushi Project

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Ivanhoe Mines (TSX:IVN)

Price: $0.92

Market cap: $638 million

Cash estimate: $50 million

Project: Kipushi

Country: DRC

Ownership: 68 percent

Resources: 16.9 Mt @ 16.8% Zn, 2.3% Cu indicated; 9.0 Mt @23.3% Zn, 1.9% Cu inferred

Project status: Revised Resource on Big Zinc

• Underground drilling at Ivanhoe Mines 68% owned Kipushi zinc deposit in the Democratic Republic of Congo (“DRC”) has confirmed a new zone of high-grade zinc beneath the Big Zinc zone. The Big Zinc zone was discovered prior to the 1993 but was not mined as previous mining focused on the Kipushi Fault Zone between two siltstone and dolomite units. The project is located south of Lubumbashi and one kilometre from the Zambian border.

• Assays from the recently discovered zone below the Big Zinc Zone returned 57.7 metres grading 37.0% Zn, 0.6% Cu, 6 g/t Ag and 54 g/t Ag. Based on the limited drilling, the new zone is believed to have an approximate true thickness of 30 metres.

• Highlights from drilling approximately across the width of the Big Zinc included: 85.0 metres of 49% Zn, 0.3% Cu, 12 g/t Ag and 61 g/t Ge (germanium), 40.2 metres grading 37.5% Zn, 0.3% Cu 57 g/t Ag and 45 g/t Ge (germanium) and 79.8 metres of 28.3% Zn, 0.3% Cu, 31 g/t Ag and 31 g/t Ge at a vertical depth of approximately 1,000 metres below surface. Based on the current drilling as well as the historical drilling by Gecamines, the Big Zinc zone appears to have an approximate true width of 60 to 100 metres.

• Drilling in the copper rich Nord Niche zone intersected significant high grade copper including 7.9 metres (true width) grading 8,2% Cu, 1.9% Zn, 17.0 g/t Ag and 0.26% Co.

• A 1997 report estimates a Historical (non NI 43-101 compliant) measured & indicated resource of 16.9 Mt grading 16.8% Zn and 2.3% Cu, with an additional 9.0 Mt grading 23.3% Zn and 1.9% Cu as inferred. Having drilled 81 holes totalling approximately 17,860 metres, 34 of which are in the Big Zinc zone, the Company is now preparing a 43-101 compliant resource for the Big Zinc zone to replace the current historical resource. Included two holes with assays pending at depth, the current drilling has extended the mineralization over 250 metres below the vertical extent of the historical measured and indicated resource.

Development History (New Zone – February 2015): 57.7 metres @ 37% Zn, 0.6% Cu, 6 g/t Ag, 54 g/t  Ge

Current Drilling (Big Zinc): 85metres @ 49% Zn, 0.3% Cu, 12 g/t Ag, 61 g/t Ge; 40metres @ 37.5% Zn, 0.1% Cu, 57 g/t Ag, 45 g/t Ge

Current Drilling: 7.9 metres @ 8.2% Cu, 1.9% Zn, 17 g/t Ag, 0.26%  Co

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly

1. The research analyst or a member of the analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report

2. Trevali Mining Corp. is covered at Mackie Research Capital Corporation by analyst Peter Campbell

• Within the last 3 years, Mackie Research Capital Corporation has managed or co-managed an offering of securities by the subject issuer.
• Within the last 3 years, Mackie Research Capital Corporation has received compensation for investment banking and related services from the subject issuer.
• In September 2014, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
• In October 2013, an analyst from Mackie Research Capital Corporation visited Trevali’s Santander Mine in Peru. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
• In September 2012, an analyst from Mackie Research Capital Corporation visited Trevali’s New Brunswick assets. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

3. Foran Mining Corp. is covered at Mackie Research by analyst Peter Campbell

• • In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.