EX-99.1 3 o12115exv99w1.txt DOCUMENTS ENCLOSED [IVANHOE MINES LOGO] NOVEMBER 17, 2003 IVANHOE MINES SHARES TO BEGIN TRADING ON U.S. NASDAQ STOCK MARKET NEW YORK, NY -- Ivanhoe Mines' Chairman Robert Friedland announced today that approval has been received for the company's shares to be traded in the United States on the NASDAQ Stock Market, under the symbol HUGO. The approval is subject to the company filing its Form 40-F with the Securities and Exchange Commission. Ivanhoe has commenced the filing and expects that trading could begin as early as Tuesday, November 18th. Ivanhoe Mines' NASDAQ trading symbol HUGO was selected to pay tribute to the work and life of Hugo Dummett, Ivanhoe's former Executive Vice-President, Project Development. Mr. Dummett, who died in an accident in South Africa a year ago, was one of the best-known geologists in the international mining community and a leading authority on large-scale porphyry copper deposits. Mr. Dummett also was Deputy Chairman and Executive Vice-President, Exploration, of African Minerals, an Ivanhoe Capital Corporation affiliate that has a nickel and platinum-group metals project in South Africa. He was previously Vice-President, Minerals Discovery, for BHP Minerals and was a leading figure in the discoveries that led to the creation of Canada's diamond industry. He also was President of the Society of Economic Geologists, the most prominent professional association of its type in the world. "Ivanhoe has built a substantial following among U.S.-based fund managers and investors because of widespread interest in our Turquoise Hill copper and gold discovery in Mongolia," Mr. Friedland said. "The NASDAQ listing is expected to increase the visibility and analytical coverage of our securities, coinciding with management's focus on establishing a broader base of financial support for our planned development of a world-scale copper and gold mine at Turquoise Hill, strategically located on the doorstep of the world's largest consumer and importer of copper -- China." In September, Ivanhoe renamed the largest and highest-grade deposit at Turquoise Hill (Oyu Tolgoi) the Hugo Dummett Deposit. As Ivanhoe advances the Turquoise Hill project toward production, the underground development of the Hugo Dummett Deposit will be known as the Hugo Mine. Earlier this month, industry veteran John Macken was appointed President of Ivanhoe Mines with a mandate to assemble and lead the management team charged with bringing into production the company's copper and gold discoveries in Mongolia's South Gobi region. Mr. Macken, 52, joins Ivanhoe after a 19-year career with mining giant Freeport McMoran Copper and Gold, most recently as Freeport's Senior Vice-President of Strategic Planning and Development, based in New Orleans. He spent a total of 13 years with Freeport's operating unit, P.T. Freeport Indonesia (PTFI), culminating in the position of Executive Vice-President and General Manager at Freeport's Grasberg mining complex in Papua, the world's largest single copper and gold mine. Between 1996 and 1998, Mr. Macken headed an expansion valued at 1 almost $1 billion at the Grasberg open pit and underground mining complex in a joint venture between Freeport and Rio Tinto, of London, which is Freeport's largest shareholder. Ivanhoe Mines, with operations concentrated in the Asia Pacific region, is a producer of copper, gold and iron ore products. Ivanhoe Mines' core assets are its 100%-owned Turquoise Hill Project in southern Mongolia and exploration rights covering approximately 111,000 square kilometres in central and southern Mongolia and the Chinese province of Inner Mongolia. RECENT INDEPENDENT RESOURCE ESTIMATE CONFIRMED TURQUOISE HILL AS ONE OF THE WORLD'S LARGEST AND HIGHEST-GRADE COPPER-GOLD PORPHYRY SYSTEMS Drilling to early November, 2003, had delineated inferred resources for the Turquoise Hill property, at a cut-off grade of 0.60% copper equivalent, of 1.28 billion tonnes grading 1.13% copper and 0.24 g/t gold, containing approximately 14.6 million tonnes (30.1 billion pounds) of copper and 9.74 million ounces of gold. The project also contains an additional indicated resource of 267 million tonnes grading 0.53% copper and 0.86 g/t gold, containing approximately 1.42 million tonnes (3.1 billion pounds) of copper and 7.35 million ounces of gold, at the 0.60% copper equivalent cut-off grade. Details of the independent resource estimate prepared by AMEC of Canada are in the company's November 11, 2003, news release at www.ivanhoemines.com. While drilling is continuing to expand and delineate the Turquoise Hill resources, independent mine development studies are ongoing to establish the viability of a commercial mining operation and to determine a range of capital and operating costs. An independent scoping study for the Turquoise Hill Project is scheduled to be released in early December. Ivanhoe shares also trade on the Toronto and Australian stock exchanges under the symbol IVN. Information contacts: Investors: Bill Trenaman: +1.604.688.5755 / Media: Bob Williamson: +1.604.688.5755 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 and Australian 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. 2 FORM 53-901F Section 85 (1) - Securities Act (British Columbia) (or the equivalent thereof under Canadian Provincial Securities Legislation) 1. REPORTING ISSUER Ivanhoe Mines Ltd. ("Ivanhoe") World Trade Centre Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 2. DATE OF MATERIAL CHANGE November 10, 2003 3. PRESS RELEASE Date of Issuance: November 10, 2003 Place of Issuance: Vancouver, British Columbia 4. SUMMARY OF MATERIAL CHANGE A new independent estimate prepared by AMEC E&C Services Limited ("AMEC") of Vancouver, Canada indicates that the Hugo Dummett Deposit (formerly known as the Far North Zone) at Ivanhoe's Turquoise Hill (Oyu Tolgoi) Project now contains estimated inferred resources of 1.36 billion tonnes, grading 1.04% copper and 0.15 grams per tonne ("g/t") of gold, at a 0.40% copper equivalent cut off, containing approximately 14.14 million tonnes (31.2 billion pounds) of copper and 6.43 million ounces of gold. 5. FULL DESCRIPTION OF MATERIAL CHANGE The new estimate for the Hugo Dummett Deposit at Ivanhoe's Turquoise Hill Project was prepared by AMEC in conformance with the requirements set out in National Instrument 43-101 ("N143-101") under the direction of Dr. Harry Parker, Ch. P. Geol., and Dr. Stephen Juras, P.Geo., independent qualified persons as defined by NI 43-101. AMEC's latest estimate is that the Hugo Dummett Deposit at Ivanhoe's Turquoise Hill (Oyu Tolgoi) Project contains inferred resources of 1.36 billion tonnes grading 1.04% copper and 0.15 g/t of gold, at a 0.40% copper equivalent cut off, containing approximately 14.14 million tonnes (31.2 billion pounds) of copper and 6.43 million ounces of gold. Drilling at the Hugo Dummett Deposit has also expanded the previously delineated high-grade core of inferred resources greater than 2% copper equivalent within this larger mineralized envelope to 149 million tonnes grading 2.88% copper and 0.30 g/t gold. -2- AMEC now estimates that the Turquoise Hill Project contains inferred resources totaling 2.60 billion tonnes grading 0.73% copper and 0.17 g/t gold, at a 0.30% copper equivalent cut-off, containing approximately 19.1 million tonnes (42.2 billion pounds) of copper and 14.4 million ounces of gold. This represents an increase of 26% in the amount of copper and a 42% increase in the amount of gold since AMEC's previous estimate issued on August 25, 2003 (the "August 2003 Estimate"). At a higher cut-off grade of 0.60% copper equivalent, AMEC estimates an inferred resource for the entire project of 1.28 billion tonnes grading 1.13% copper and 0.24 g/t gold, containing approximately 14 million tonnes (32.2 billion pounds) of copper and 9.7 million ounces of gold. This represents an increase of 39% in the amount of copper and a 61% increase in the amount of gold over the previous inferred resource at the higher cutoff in the August 2003 Estimate. The project's indicated resources are approximately the same as the August 2003 Estimate, as Ivanhoe has conducted only a minimal amount of drilling in the Southwest Zone since February, 2003. All indicated resources identified to date are in the Southwest Zone. AMEC's updated inferred mineral resource estimate for the Hugo Dummett Deposit, at various copper equivalent cut-off grades, are provided in Table 1 below. The Hugo Dummett Deposit is one of four co-genetic copper and gold deposits delineated to date along a 5.3 kilometre long chain of deposits at Turquoise Hill. The three other deposits are Southwest Oyu, South Oyu and Central Oyu. Updated consolidated mineral resource estimates for the project, at 0.30% and 0.60% copper equivalent cut-off grades, are provided in Tables 2 and 3 below. As the company's drilling since February has focused on expanding and delineating the Hugo Dummett Deposit, AMEC has not updated its February resource estimates for the Southwest, South and Central zones. The resource estimates for the Southwest, South and Central deposits were prepared by AMEC, in February, 2003, and were previously reported in February 2003. Ivanhoe currently has eight rigs drilling at the Central Oyu deposit to upgrade the inferred resources in the deposit's chalcocite blanket and underlying covellite, chalcopyrite and gold zones to the higher measured and indicated categories, and to provide geotechnical information for pit-wall stabilities. Large-diameter core from the shallow, supergene chalcocite blanket also is being drilled to provide samples for column-leach testing. This infill drill program will continue at Central Oyu for two to three months, after which the drills will move to the Southwest Oyu and South Oyu deposits to upgrade the resources to the measured and indicated categories. The indicted and measured resource upgrades are intended to be used for a feasibility study planned for late-2004. -3- TABLE 1. UPDATED HUGO DUMMETT DEPOSIT INFERRED RESOURCE TABLE (AT VARIOUS COPPER-EQUIVALENT CUT-OFF GRADES) (1)
COPPER CONTAINED METAL Cu. EQ. CUT- GOLD EQUIVALENT -------------------------- OFF GRADE(1) TONNES COPPER GRADE GRADE GRADE COPPER GOLD ------------ ------------- ------------ ----- ---------- ---------- ---------- (%) (%) (G/T) (%) (TONNES) (OUNCES) ------------ ------------- ------------ ----- ---------- ---------- ---------- >=3.50 47,900,000 3.68 0.96 4.29 1,760,000 1,470,000 >=3.00 75,800,000 3.42 0.76 3.91 2,590,000 1,860,000 >=2.50 115,200,000 3.11 0.61 3.51 3,590,000 2,270,000 >=2.00 149,400,000 2.88 0.53 3.22 4,310,000 2,560,000 >=1.50 234,300,000 2.39 0.40 2.65 5,610,000 3,020,000 >=1.25 412,500,000 1.92 0.27 2.09 7,930,000 3,550,000 >=1.00 575,500,000 1.67 0.23 1.82 9,620,000 4,300,000 >=0.90 654,900,000 1.57 0.22 1.71 10,300,000 4,640,000 >=0.80 778,900,000 1.45 0.20 1.57 11,280,000 4,990,000 >=0.70 889,700,000 1.36 0.18 1.47 12,060,000 5,230,000 >=0.60 961,600,000 1.30 0.18 1.41 12,480,000 5,420,000 >=0.50 1,082,500,000 1.21 0.17 1.31 13,060,000 5,800,000 >=0.40 1,358,100,000 1.04 0.15 1.14 14,140,000 6,430,000 >=0.30 1,800,300,000 0.86 0.12 0.94 15,500,000 7,220,000
-4- TABLE 2. UPDATED TURQUOISE HILL RESOURCE TABLE BY ZONE (BASED ON A 0.30% COPPER EQUIVALENT CUT-OFF GRADE) (1)
Contained Metal --------------------------------- Copper Gold Copper Copper Gold Copper Equiv. Resources (million Grade Grade Equiv. Grade (million (million (million Zone tonnes) (%) (g/t) (%) tonnes) ounces) tonnes)(2) ---------------------- ------------------ ------ ----- ------------ -------- -------- ------------- Southwest Zone Indicated 508.9 0.40 0.59 0.78 2.06 9.69 3.98 Inferred 290.8 0.32 0.50 0.64 0.92 4.70 1.86 South Zone Inferred 270.3 0.39 0.13 0.48 1.07 1.10 1.28 Central Zone Inferred 236.8 0.67 0.18 0.79 1.59 1.36 1.86 Hugo Dummett Deposit Inferred 1,800.3 0.86 0.12 0.94 15.50 7.22 16.92 Grand total: Indicated 508.9 0.40 0.59 0.78 2.06 9.69 3.98 Grand total: Inferred 2,598.2 0.73 0.17 0.84 19.08 14.38 21.92
-5- TABLE 3. UPDATED TURQUOISE HILL RESOURCE TABLE BY ZONE (BASED ON A 0.60% COPPER EQUIVALENT CUT-OFF GRADE) (1)
Contained Metal ---------------------------------------------------- Resources Copper Gold Copper Equiv. Copper (million Gold (million Copper Equiv. Zone (million tonnes) Grade (%) Grade (g/t) Grade (%) tonnes) ounces) (million tonnes)(2) -------------- ---------------- --------- ----------- ------------ --------------- ------------- ------------------- Southwest Zone Indicated 267.0 0.53 0.86 1.08 1.42 7.35 2.88 Inferred 126.6 0.44 0.68 0.87 0.55 2.78 1.10 South Zone Inferred 48.4 0.61 0.26 0.77 0.29 0.40 0.37 Central Zone Inferred 147.5 0.84 0.24 0.99 1.24 1.14 1.46 Hugo Dummett Deposit Inferred 961.6 1.30 0.18 1.41 12.48 5.42 13.56 Grand total: 267.0 0.53 0.86 1.08 1.42 7.35 2.88 Indicated Grand total: 1284.1 1.13 0.24 1.28 14.58 9.74 16.50 Inferred
1. Copper equivalent grades have been calculated using assumed metal prices (US$0.80/lb. for copper and US$350/oz. for gold); %Cu eq. = %Cu + Au (g/t) x (11.25/17.64). 2. The contained gold and copper represent estimated contained metal in the ground and have not been adjusted for the metallurgical recoveries of gold and copper. The determination of an adjustment factor to account for differences in relative metallurgical recoveries between gold and copper will depend upon the completion of definitive metallurgical testing. 3. Resource classifications conform to CIM Standards on Mineral Resources and Reserves referred to in National Instrument 43-101. Mineral resources that are not reserves do not have demonstrated economic viability. An indicated mineral resource is that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. An inferred mineral resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified. -6- AMEC's updated estimate of the Hugo Dummett Deposit inferred resources incorporated results from 136 drill holes. The total strike length of the Hugo Dummett Deposit now included in the 0.6% copper equivalent inferred resource estimate is approximately 2.6 kilometres. The deposit can be partitioned into two mineralized zones. The shallower southern end, referred to as the Hugo South Deposit, is characterized by high-sulphidation mineralization hosted in quartz-rich zones within ash flow tuffs. The greater than 2% copper zone consists mostly of bornite and chalcocite deposited at lower temperatures and has inferred resources estimated at 35.3 million tonnes grading 2.71% copper and 0.19 g/t gold. This high-grade zone occurs near the base of, and is the core to, a 231.6-million-tonne, steeply-dipping tabular body grading 1.45% copper and 0.11 g/t gold at a 1% copper equivalent cut-off. The northern Hugo zone, referred to as the Hugo North Deposit, is hosted by basalt that underlies the ash flow tuffs. As in Hugo South, the highest-grade intersections occur in quartz stockwork that replaces up to 90% of the basalt. Intense chlorite, hematite after biotite and magnetite alteration reinforces the gold-rich porphyry association. At a 2% copper equivalent cut-off, the Hugo North Deposit contains inferred resources of 114.1 million tonnes grading 2.94% copper and 0.64 g/t gold. The marked increase in gold grades is directly attributable to the apparent higher temperatures of emplacement due to the increased depths and close proximity to the highly mineralized, quartz monzodiorite (QMD) intercepted in OTD514 and at the western end of OTD449B. With approximately 400 metres of lateral separation between the gold- and copper-rich QMD intercepts in OTD514 and OTD449B there is potential to expand the gold-rich copper resources to depth along the vertical extent of the quartz monzodiorite intersected in these two holes. The fleet of 18 rigs being used in the exploration program at Turquoise Hill now includes a UDR5000, one of the world's largest mineral exploration drilling rigs. The UDR5000 rig can test mineralization to depths up to 3,000 metres. The UDR5000 is currently drill-testing the mid-section of the Hugo North Deposit, targeted on a section that was inadequately tested due to adverse drilling conditions. The UDR5000 rig should be able overcome the adverse drilling conditions by its capacity to drill to large-diameter core (PQ) to depths in excess of 1,200 metres. The holes then will be continued to depths in excess of 2,000 metres to test a deep IP chargeability anomaly that could be an expression of the down-faulted, western section of the Hugo North Deposit Charles Forster, P.Geo., Ivanhoe Mines' Turquoise Hill Manager, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information upon which this material change report is based. SGS Analabs Pty. Ltd. prepares the split core at the project site and assays all samples at its facility in Ulaanbaatar, Mongolia. Ivanhoe's quality assurance/quality control program is monitored by independent consultant Dr Barry Smee, P.Geo., and managed on site by Dale Sketchley, M.Sc., P.Geo. Prepared standards and blanks are inserted at the sample preparation lab on the project site to monitor the quality control of the assay data. -7- 6. RELIANCE ON SECTION 85 (2) OF THE ACT Not applicable 7. OMITTED INFORMATION Not applicable SENIOR OFFICER For further information please contact: Beverly Bartlett Ivanhoe Mines Ltd. Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 Telephone: (604) 688-5755 8. STATEMENT OF SENIOR OFFICER The foregoing accurately discloses the material change referred to herein. DATED at Vancouver, British Columbia this 20th day of November, 2003. IVANHOE MINES LTD. Per: "Beverly Bartlett" ---------------------------------- Beverly Bartlett Corporate Secretary [IVANHOE MINES LOGO] THIRD QUARTER REPORT SEPTEMBER 30, 2003 TABLE OF CONTENTS ITEM 1. FINANCIAL STATEMENTS Consolidated Balance Sheets at September 30, 2003 (unaudited) and December 31, 2002 Unaudited Consolidated Statements of Operations for the Three and Nine Month Periods ended September 30, 2003 and 2002 Unaudited Consolidated Statement of Shareholders' Equity for the Nine Month Period ended September 30, 2003 Unaudited Consolidated Statements of Cash Flows for the Three and Nine Month Periods ended September 30, 2003 and 2002 Notes to the Unaudited Consolidated Financial Statements ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
IVANHOE MINES LTD. CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, December 31, ------------- ------------ (STATED IN U.S. $000'S) 2003 2002 ------------------------------------------------------------------------------------------------------------------------------ (UNAUDITED) ASSETS CURRENT Cash $ 38,830 $ 46,912 Accounts receivable 4,055 3,425 Inventories 22,472 22,935 Prepaid expenses 3,223 1,971 ----------------------------------------------------------------------------------------------------------------------------- 68,580 75,243 INVESTMENTS 12,357 15,537 MINING PROPERTY, PLANT AND EQUIPMENT 171,232 168,022 OTHER MINERAL PROPERTY INTERESTS 11,102 6,748 OTHER CAPITAL ASSETS 6,027 3,481 FUTURE INCOME TAXES - 1,041 OTHER ASSETS 1,621 1,482 ----------------------------------------------------------------------------------------------------------------------------- $ 270,919 $ 271,554 ============================================================================================================================= LIABILITIES CURRENT Accounts payable and accrued liabilities $ 23,565 $ 29,174 Current portion of long-term debt (Note 4) 16,441 23,766 ----------------------------------------------------------------------------------------------------------------------------- 40,006 52,940 LOAN PAYABLE TO RELATED PARTIES 5,088 5,088 LONG-TERM DEBT (NOTE 4) 6,771 5,534 OTHER LIABILITIES 8,466 6,358 FUTURE INCOME TAXES 12,725 12,642 NON-CONTROLLING INTEREST 528 - ----------------------------------------------------------------------------------------------------------------------------- 73,584 82,562 ----------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY SHARE CAPITAL (NOTE 5) Authorized Unlimited number of preferred shares without par value Unlimited number of common shares without par value Issued and outstanding 248,850,022 (2002-205,163,382) common shares 611,557 522,199 SPECIAL WARRANTS - 26,516 ADDITIONAL PAID-IN CAPITAL 1,193 1,508 CONTRIBUTED SURPLUS 3,495 3,520 DEFICIT (418,910) (364,751) ----------------------------------------------------------------------------------------------------------------------------- 197,335 188,992 ----------------------------------------------------------------------------------------------------------------------------- $ 270,919 $ 271,554 =============================================================================================================================
IVANHOE MINES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended September 30, Nine months ended September 30, -------------------------------- ------------------------------- (STATED IN U.S. $000'S) 2003 2002 2003 2002 --------------------------------------------------------------------------------------------------------------------------- (UNAUDITED) REVENUE $ 20,649 $ 19,269 $ 64,215 $ 65,848 COST OF OPERATIONS (15,110) (13,925) (54,779) (46,315) WRITE-DOWN OF WORK IN PROGRESS INVENTORY (NOTE 6) - - (4,287) - DEPRECIATION AND DEPLETION (2,734) (3,213) (7,144) (7,362) --------------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT 2,805 2,131 (1,995) 12,171 EXPENSES General and administrative (3,991) (3,175) (10,303) (7,999) Interest on long-term debt (368) (1,185) (1,262) (3,622) Exploration expenses (20,784) (9,994) (46,777) (18,307) Depreciation (386) (105) (1,011) (218) --------------------------------------------------------------------------------------------------------------------------- LOSS BEFORE THE FOLLOWING (22,724) (12,328) (61,348) (17,975) OTHER INCOME (EXPENSES) Mining property shut-down costs (955) (752) (2,479) (1,699) Interest income 461 310 1,402 880 Foreign exchange gain (loss) (1,143) (530) 6,990 2,378 Gain on sale of investments - - 4,625 - Gain on settlement of debt - 32,466 - 32,466 Write-down of carrying values of assets - (18,000) - (18,000) Share of loss of significantly influenced investee (976) - (1,589) - Dilution loss on investment in a subsidiary (708) - (708) - Other (Note 8 (a)) 13 (108) 748 3,015 --------------------------------------------------------------------------------------------------------------------------- (3,308) 13,386 8,989 19,040 --------------------------------------------------------------------------------------------------------------------------- (LOSS) INCOME BEFORE INCOME AND CAPITAL TAXES AND NON-CONTROLLING INTEREST (26,032) 1,058 (52,359) 1,065 Provision for income and capital taxes (536) (559) (1,931) (2,708) --------------------------------------------------------------------------------------------------------------------------- (LOSS) INCOME BEFORE NON-CONTROLLING INTEREST (26,568) 499 (54,290) (1,643) Non-controlling interest 131 - 131 - --------------------------------------------------------------------------------------------------------------------------- NET LOSS $ (26,437) $ 499 $ (54,159) $ (1,643) =========================================================================================================================== LOSS PER SHARE Basic $ (0.11) $ 0.00 $ (0.23) $ (0.01) Diluted $ (0.11) $ 0.00 $ (0.23) $ (0.01) =========================================================================================================================== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (IN 000'S) Basic 248,581 201,816 239,991 191,190 Diluted 248,581 208,241 239,991 191,190 ===========================================================================================================================
IVANHOE MINES LTD. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (STATED IN THOUSANDS OF U.S. DOLLARS) (Unaudited)
Share Capital ------------------------------ Additional Number Special Paid-In Contributed of Shares Amount Warrants Capital Surplus Deficit Total --------- ------ -------- ------- ------- ------- ----- Balances, December 31, 2002 205,163,382 $ 522,199 $ 26,516 $ 1,508 $ 3,520 $ (364,751) $ 188,992 Special warrants issued - - 59,259 - - - 59,259 Shares issued for: Exercise of stock options 2,177,032 3,125 - (315) (873) - 1,937 Exercise of special warrants 41,296,080 85,775 (85,775) - - - - Share purchase plan 43,293 89 - - - - 89 Bonus shares 125,000 263 - - - - 263 Consulting fees 45,235 106 - - - - 106 Stock compensation charged to operations - - - - 848 - 848 Net loss - - - - - (54,159) (54,159) ----------------------------------------------------------------------------------------------------------------------------------- Balances, September 30, 2003 248,850,022 $ 611,557 $ - $ 1,193 $ 3,495 $ (418,910) $ 197,335 -----------------------------------------------------------------------------------------------------------------------------------
IVANHOE MINES LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended September 30 Nine Months Ended September 30 ------------------------------- ------------------------------ (STATED IN U.S. $000'S) 2003 2002 2003 2002 --------------------------------------------------------------------------------------------------------------------------------- (UNAUDITED) OPERATING ACTIVITIES Net loss $(26,437) $ 499 $(54,159) $ (1,643) Items not involving use of cash Depreciation and depletion 3,120 3,318 8,155 7,580 Write-down of carrying value of assets - 18,000 - 18,000 Non-cash interest expense 9 273 278 1,668 Unrealized foreign exchange loss (gain) 150 (1,200) 1,224 (8,654) Share of loss of significantly influenced investee 976 - 1,589 - Provision for employee entitlements 226 123 848 348 Provision for future waste mining costs - (211) - (382) Provision for mine reclamation obligation 256 300 933 605 Write-down of work in progress inventory - - 4,287 - Gain on sale of investments - - (4,625) (508) Gain on settlement of debt - (32,466) - (32,466) Non-cash recovery of bad debt - - - (1,248) Non-cash recovery of mine shut down costs - - - (205) Non-cash stock-based compensation 247 524 848 1,179 Dilution loss on investment in a subsidiary 708 - 708 - Non-controlling interest (131) - (131) - Future income taxes 95 464 1,124 2,358 Increase in non-current portion of royalty payable 121 106 327 309 Other (49) - (49) - --------------------------------------------------------------------------------------------------------------------------------- (20,709) (10,270) (38,643) (13,059) Net change in non-cash operating working capital items (Note 8(c)) (4,074) (908) (7,052) (2,795) --------------------------------------------------------------------------------------------------------------------------------- (24,783) (11,178) (45,695) (15,854) --------------------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Purchase of investments (493) (38) (493) (5,019) Proceeds from sale of investments - - 6,709 10 Expenditures on mining property, plant and equipment (1,938) (3,339) (10,354) (14,770) Expenditures on other mineral property interests (4,209) (1,000) (8,354) (1,000) Expenditures on other capital assets (3,010) (640) (3,554) (1,540) Other 178 (15) (141) (49) --------------------------------------------------------------------------------------------------------------------------------- (9,472) (5,032) (16,187) (22,368) --------------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Share capital and special warrants issued 674 130 61,391 54,622 Proceeds from long-term debt - 925 - 9,387 Repayment of long-term debt (3,781) (12,589) (7,591) (16,900) --------------------------------------------------------------------------------------------------------------------------------- (3,107) (11,534) 53,800 47,109 --------------------------------------------------------------------------------------------------------------------------------- NET CASH (OUTFLOW) INFLOW (37,362) (27,744) (8,082) 8,887 CASH, BEGINNING OF PERIOD 76,192 62,436 46,912 25,805 --------------------------------------------------------------------------------------------------------------------------------- CASH, END OF PERIOD $ 38,830 $ 34,692 $ 38,830 $ 34,692 ================================================================================================================================= CASH IS COMPRISED OF: Cash on hand and demand deposits $ 6,151 $ 13,051 $ 6,151 $ 13,051 Time deposits Restricted 3,138 2,160 3,138 2,160 Short-term money market instruments Restricted 2,000 6,000 2,000 6,000 Unrestricted 27,541 13,481 27,541 13,481 --------------------------------------------------------------------------------------------------------------------------------- $ 38,830 $ 34,692 $ 38,830 $ 34,692 =================================================================================================================================
Supplementary information (Note 8) IVANHOE MINES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Stated in U.S. Dollars) (Unaudited) 1. BASIS OF PRESENTATION These unaudited interim consolidated financial statements of Ivanhoe Mines Ltd. (the "Company") have been prepared in accordance with accounting principles generally accepted in Canada for the presentation of interim financial information. These financial statements do not include all disclosures required for annual financial statements and therefore should be read in conjunction with the most recent annual financial statements of the Company for the year ended December 31, 2002 (the "Annual Financial Statements"). The financial statements follow the same accounting policies and methods of their application as the Annual Financial Statements. Certain of the comparative figures have been reclassified to conform with the presentation in the Annual Financial Statements. In the opinion of management, all adjustments (including reclassifications and normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2003 and for all periods presented, have been made. The interim results are not necessarily indicative of results for a full year. For purposes of these financial statements, the Company and its subsidiaries and joint venture are collectively referred to as "Ivanhoe Mines". 2. ABM MINING LIMITED ("ABM") In the first quarter of 2003, the management of ABM advised Ivanhoe Mines that ABM would likely need to supplement anticipated cash flow from project operations with additional capital in order to cover budgeted operating costs. The funding shortfall had arisen because of the recent rapid appreciation of the Australian dollar (A$) against the US dollar. ABM management requested, and Ivanhoe Mines agreed to make available, an A$8 million working capital credit facility to enable ABM to meet any such shortfalls that may arise in the immediate future. ABM management also advised Ivanhoe Mines that it planned to continue exploring suitable alternatives for obtaining any future credit facilities it requires from external sources but that there is no assurance that it would be successful in doing so. At September 30, 2003, the working capital credit facility was fully drawn down. As at September 30, 2003, the net carrying value of the Savage River operation's assets and liabilities which are included in these financial statements is $33,682,000 (December 31, 2002 -$31,411,000). 3. MYANMAR IVANHOE COPPER COMPANY LIMITED ("JVCO") The Annual Financial Statements disclosed that at December 31, 2002, JVCo was not in compliance with the minimum working capital requirement in its credit agreement, and had not received a waiver from its lenders with respect to this requirement and also with respect to the non-compliance with certain other financial covenants in the credit agreement. During the three-month period ended September 30, 2003, JVCo made a debt repayment of approximately $8.4 million and contributed approximately $0.1 million into a debt service account. However, JVCo's contribution into the debt service account was deficient by approximately $8.1 million, as it should have covered the next principal and interest payments due at the end of February 2004. Management of the JVCo is of the opinion that JVCo will make the next semi-annual debt payment due at the end of February 2004 and that the lenders will not demand repayment of the loan, notwithstanding the foregoing. There is no assurance, however, that the lenders will not make such a demand. Accordingly, as required by GAAP, the entire amount of Ivanhoe Mines' share of JVCo's loan payable aggregating $15,000,000 at September 30, 2003 and $22,500,000 at December 31, 2002 has been included in current liabilities. IVANHOE MINES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Stated in U.S. Dollars) (Unaudited) 4. LONG-TERM DEBT
SEPTEMBER 30, December 31, 2003 2002 ---- ---- JVCo: Share of loan payable $ 15,000 $ 22,500 ABM: Deferred purchase obligation 6,242 5,130 Equipment purchase loans 1,970 1,670 ================================================================================= 23,212 29,300 Less: Amount included in current liabilities (16,441) (23,766) ================================================================================= $ 6,771 $ 5,534 =================================================================================
All of the long-term debt is non-recourse to the Company. 5. SHARE CAPITAL In the three-month period ended September 30, 2003, 280,000 options were granted, 704,400 options were exercised and 104,500 options were cancelled. Stock options outstanding at November 26, 2003 totalled 10,528,894 with exercise prices and expiry dates ranging from Cdn $1.08 to Cdn $12.70 and April 19, 2004 to November 1, 2013, respectively. At November 26, 2003, a total of 249,405,819 Common Shares of the Company were outstanding. 6. INVENTORY WRITE-DOWN During the nine month period ended September 30, 2003, Ivanhoe Mines wrote down its copper inventory as a result of a downward adjustment in the estimated recoverable quantities of copper on the heaps. Ivanhoe Mines continues to review the underlying technical data and accordingly may subsequently adjust the amount of this write-down. The amount of any adjustment may be material. IVANHOE MINES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Stated in U.S. Dollars) (Unaudited) 7. SEGMENTED INFORMATION
THREE MONTHS ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------------------------------------------------------------------------- (Stated in 000's) COPPER IRON EXPLORATION CORPORATE TOTAL ----------------------------------------------------------------------------------------------------------------------------------- REVENUE $ 6,069 $ 14,580 $ - $ - $ 20,649 COST OF OPERATIONS (2,816) (12,294) - - (15,110) WRITE-DOWN OF WORK IN PROGRESS INVENTORY - - - - - DEPRECIATION AND DEPLETION (1,265) (1,469) - - (2,734) ----------------------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT 1,988 817 - - 2,805 General and administrative (181) (23) - (3,787) (3,991) Interest on long-term debt (220) (133) (15) - (368) Exploration expenses - - (20,784) - (20,784) Depreciation - - (386) - (386) ----------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE THE FOLLOWING 1,587 661 (21,185) (3,787) (22,724) Mining property shut-down costs - - - (955) (955) Interest income 2 82 5 372 461 Foreign exchange gain (loss) (50) (28) 11 (1,076) (1,143) Share of loss of significantly influenced investee - - - (976) (976) Dilution loss on investment in a subsidiary - - (708) - (708) Other income (expenses) 2 23 (12) - 13 ----------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME AND CAPITAL TAXES AND NON-CONTROLLING INTEREST 1,541 738 (21,889) (6,422) (26,032) Provision for income and capital taxes (351) (124) (31) (30) (536) ----------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST 1,190 614 (21,920) (6,452) (26,568) Non-controlling interest - - - 131 131 ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 1,190 $ 614 $ (21,789) $ (6,452) $ (26,437) =================================================================================================================================== EXPENDITURES ON CAPITAL ASSETS Pre-stripping costs $ 357 $ 777 $ - $ - $ 1,134 Other 462 302 769 6,490 8,023 ----------------------------------------------------------------------------------------------------------------------------------- $ 819 $ 1,079 $ 769 $ 6,490 $ 9,157 =================================================================================================================================== TOTAL ASSETS $ 139,000 $ 62,358 $ 13,762 $ 55,799 $ 270,919 ===================================================================================================================================
THREE MONTHS ENDED SEPTEMBER 30, 2002 ----------------------------------------------------------------------------------------------------------------------------------- (Stated in 000's) COPPER IRON EXPLORATION CORPORATE TOTAL ----------------------------------------------------------------------------------------------------------------------------------- REVENUE $ 5,123 $ 14,146 $ - $ - $ 19,269 COST OF OPERATIONS (2,746) (11,179) - - (13,925) DEPRECIATION AND DEPLETION (893) (2,320) - - (3,213) ----------------------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT 1,484 647 - - 2,131 General and administrative (98) (22) - (3,055) (3,175) Interest on long-term debt (389) (796) - - (1,185) Exploration expenses (1) - (9,998) 5 (9,994) Depreciation - - (105) - (105) ----------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE THE FOLLOWING 996 (171) (10,103) (3,050) (12,328) Mining property shut-down costs - - - (752) (752) Interest income 17 11 8 274 310 Foreign exchange gain (loss) (4) 891 1 (1,418) (530) Gain on settlement of debt - 32,466 - - 32,466 Other income (expenses) 14 (115) (4) (3) (108) Write-down of carrying values of assets - (18,000) - - (18,000) ----------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME AND CAPITAL TAXES AND NON-CONTROLLING INTEREST 1,023 15,082 (10,098) (4,949) 1,058 (Provision for) recovery of income and capital taxes 16 172 (237) (510) (559) ----------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST 1,039 15,254 (10,335) (5,459) 499 Non-controlling interest - - - - - =================================================================================================================================== NET INCOME (LOSS) $ 1,039 $ 15,254 $ (10,335) $ (5,459) $ 499 =================================================================================================================================== EXPENDITURES ON CAPITAL ASSETS Pre-stripping costs $ 226 $ 4,230 $ - $ - $ 4,456 Other 242 561 (368) 88 $ 523 ----------------------------------------------------------------------------------------------------------------------------------- $ 468 $ 4,791 $ (368) $ 88 $ 4,979 =================================================================================================================================== TOTAL ASSETS $ 143,554 $ 58,735 $ 14,085 $ 44,035 $ 260,409 ===================================================================================================================================
IVANHOE MINES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Stated in U.S. Dollars) (Unaudited) 7. SEGMENTED INFORMATION (CONTINUED)
NINE MONTHS ENDED SEPTEMBER 30, 2003 ---------------------------------------------------------------------------------------------------------------------------------- (Stated in 000's) COPPER IRON EXPLORATION CORPORATE TOTAL ---------------------------------------------------------------------------------------------------------------------------------- REVENUE $ 16,181 $ 48,034 $ - $ - $ 64,215 COST OF OPERATIONS (7,672) (47,107) - - (54,779) WRITE-DOWN OF WORK IN PROGRESS INVENTORY (4,287) - - - (4,287) DEPRECIATION AND DEPLETION (3,667) (3,477) - - (7,144) ================================================================================================================================== OPERATING PROFIT 555 (2,550) - - (1,995) General and administrative (468) (89) - (9,746) (10,303) Interest on long-term debt (802) (445) (15) - (1,262) Exploration expenses - - (46,777) - (46,777) Depreciation - - (999) (12) (1,011) ---------------------------------------------------------------------------------------------------------------------------------- LOSS BEFORE THE FOLLOWING (715) (3,084) (47,791) (9,758) (61,348) Mining property shut-down costs - - - (2,479) (2,479) Interest income 11 188 10 1,193 1,402 Foreign exchange gain (loss) (142) (468) (107) 7,707 6,990 Gain on sale of investments - - - 4,625 4,625 Share of loss of significantly influenced investee - - - (1,589) (1,589) Dilution loss on investment in a subsidiary - - (708) - (708) Other income (expenses) 5 483 (13) 273 748 ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME AND CAPITAL TAXES AND NON-CONTROLLING INTEREST (841) (2,881) (48,609) (28) (52,359) Provision for income and capital taxes (721) (150) (84) (976) (1,931) ---------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST (1,562) (3,031) (48,693) (1,004) (54,290) Non-controlling interest - - 131 - 131 ---------------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ (1,562) $ (3,031) $ (48,562) $ (1,004) $ (54,159) ================================================================================================================================== EXPENDITURES ON CAPITAL ASSETS Pre-stripping costs $ 1,183 $ 5,857 $ - $ - 7,040 Other 1,313 1,913 1,499 6,497 11,222 ---------------------------------------------------------------------------------------------------------------------------------- $ 2,496 $ 7,770 $ 1,499 $ 6,497 $ 18,262 ================================================================================================================================== TOTAL ASSETS $ 139,000 $ 62,358 $ 13,762 $ 55,799 $ 270,919 ==================================================================================================================================
NINE MONTHS ENDED SEPTEMBER 30, 2002 ================================================================================================================================= (Stated in 000's) COPPER IRON EXPLORATION CORPORATE TOTAL --------------------------------------------------------------------------------------------------------------------------------- REVENUE $ 15,210 $ 50,638 $ - $ - $ 65,848 COST OF OPERATIONS (7,839) (38,476) - - (46,315) DEPRECIATION AND DEPLETION (2,963) (4,399) - - (7,362) --------------------------------------------------------------------------------------------------------------------------------- OPERATING PROFIT 4,408 7,763 - - 12,171 General and administrative (381) (58) - (7,560) (7,999) Interest on long-term debt (1,287) (2,335) - - (3,622) Exploration expenses (1) - (18,311) 5 (18,307) Depreciation - - (211) (7) (218) --------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE THE FOLLOWING 2,739 5,370 (18,522) (7,562) (17,975) Mining property shut-down costs - - - (1,699) (1,699) Interest income 71 64 20 725 880 Foreign exchange gain (loss) (27) 1,936 65 404 2,378 Gain on settlement of debt - 32,466 - - 32,466 Write-down of carrying values of assets - (18,000) - - (18,000) Other income (expenses) 20 (83) 5 3,073 3,015 --------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME AND CAPITAL TAXES NON-CONTROLLING INTEREST 2,803 21,753 (18,432) (5,059) 1,065 (Provision for) recovery of income and (107) (3,482) 408 473 (2,708) capital taxes --------------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) BEFORE NON-CONTROLLING INTEREST 2,696 18,271 (18,024) (4,586) (1,643) Non-controlling interest - - - - - --------------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 2,696 $ 18,271 $ (18,024) $ (4,586) $ (1,643) ================================================================================================================================= EXPENDITURES ON CAPITAL ASSETS Pre-stripping costs $ 397 $ 8,520 $ - $ - $ 8,917 Other 1,379 3,545 7,317 152 12,392 --------------------------------------------------------------------------------------------------------------------------------- $ 1,776 $ 12,065 $ 7,317 $ 152 $ 21,310 ================================================================================================================================= TOTAL ASSETS $ 143,554 $ 58,735 $ 14,085 $ 44,035 $ 260,409 =================================================================================================================================
IVANHOE MINES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Stated in U.S. Dollars) (Unaudited) 8. SUPPLEMENTARY CASH FLOW INFORMATION (a) During the three months ended June 30, 2003, 21,290,080 Special Warrants were exercised resulting in the issue of 21,290,090 common shares of the Company. During the three months ended March 31, 2003, 20,000,000 Special Warrants were exercised resulting in the issue of 20,000,000 common shares of the Company. During the three months ended June 30, 2002, the Company issued 287,678 Common Shares at a deemed value of $600,000 in respect of the purchase of 7.4 million common shares of Intec Ltd. Also, during the three months ended June 30, 2002, the Company divested itself of its iron ore project in Norway and extinguished the related outstanding debt of $3.5 million. During the three months ended March 31, 2002, Ivanhoe Mines exchanged its investment in GTL Resources Plc, which had a carrying value of $1.4 million, for an equity interest in Resource Investment Trust with a fair value of $1.9 million. Also during the three months ended March 31, 2002, Ivanhoe Mines completed the earn-in of a 100% interest in the Oyu Tolgoi project in Mongolia by paying cash of $1 million and by incurring an obligation to make a $4 million payment within one year. Lastly, during the three months ended March 31, 2002, Ivanhoe Mines realized a gain of $2,568,000 (included in other income), of which $1,248,000 was non-cash, relating to the payment of a note receivable from Olympus Pacific Minerals Ltd. that had been written off in prior years. (b)
Three Months Ended September 30, Nine Months Ended September 30, ------------------------------- ------------------------------- $(000) 2003 2002 2003 2002 ---------------------------------------------------------------------------------------------------------- Interest paid $ 359 $ 912 $ 984 $1,954 Income and capital taxes paid 441 94 807 350
(c) Net change in non-cash working capital items:
Three Months Ended September 30, Nine Months Ended September 30, $(000) 2003 2002 2003 2002 ------------------------------------------------------------------------------------------------------------------ Accounts receivable $ 2,563 $(3,312) $ (630) $(5,232) Inventories (4,026) 786 (3,824) (1,277) Prepaid expenses 746 (174) (1,252) (1,163) Accounts payable and accrued liabilities (3,357) 1,792 (1,346) 4,877 --------------------------------------------------------------------------------------------------------------- $(4,074) $ (908) $(7,052) $(2,795) ===============================================================================================================
IVANHOE MINES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Stated in U.S. Dollars) (Unaudited) 9. SUBSEQUENT EVENTS (a) In October 2003, Ivanhoe Mines reached an agreement in principle with Pacific Minerals Inc. ("Pacific Minerals") to restructure certain joint ventures in return for 2.5 million common shares of Pacific Minerals. The agreement will reduce Ivanhoe Mines' maximum earn-in interests from 80% to 50% in the 217 Gold Project, the Dandong Gold Project, and the JBS Platinum and Palladium Projects. Ivanhoe Mines will also transfer to Pacific Minerals an interest in the Shuteen Project in Mongolia. Ivanhoe Mines has also agreed to purchase an additional 2.5 million units of Pacific Minerals at a price of Cdn$1.75 per unit, for proceeds of Cdn$4.4 million. Each unit will consist of one common share and one common share purchase warrant. Each warrant will be exercisable for one common share at a price of Cdn$2.20 per share for two years from the closing date. After closing, Ivanhoe Mines will hold approximately 45% of the issued and outstanding share capital of Pacific Minerals. (b) In October 2003, the Company completed a private placement financing for US$50.0 million (Cdn$66.0 million). This financing consisted of 5.76 million Special Warrants at a price of US$8.68 (Cdn$11.45) each. Each Special Warrant entitles the holder to acquire, at no additional cost, one common share and one-tenth of a common share purchase warrant of the Company, following the clearing of a prospectus or four months after the closing date, which ever occurs first. (c) In November 2003, Ivanhoe Mines reached an agreement with BHP Minerals International Exploration Inc. ("BHP") to acquire the 2% net smelter return royalty interest that BHP had retained in Ivanhoe Mines' Turquoise Hill property in Mongolia. The terms of the agreement require Ivanhoe Mines to pay BHP a total of $37 million in two payments. The first $17 million was paid in November 2003 and the final $20 million payment is due by February 5, 2004. (d) In November 2003, Ivanhoe Mines converted a US$550,000 loan to Asia Gold Corp. ("Asia Gold") into 505,622 shares of Asia Gold. Ivanhoe Mines now holds approximately 78% of the issued and outstanding share capital of Asia Gold. IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Ivanhoe Mines Ltd. (the "Company") is an international mining company exploring a major discovery of gold and copper at the Turquoise Hill project (Oyu Tolgoi) in southern Mongolia. It also has regional exploration programs targeting gold and copper, principally in Mongolia and China. The Company together with its subsidiaries and joint venture (collectively referred to as "Ivanhoe Mines") produces copper, gold and iron ore products from various mines in the Asia Pacific region. During the third quarter, Ivanhoe Mines continued to concentrate the majority of its cash resources and management time to the Turquoise Hill project. The Company spent a total of $ 20.8 million in exploration during the quarter, of which $ 17.4 million was spent in Mongolia. MONGOLIA - In September 2003, the Far North Zone was renamed the Hugo Dummett deposit. - In Q3'03, Ivanhoe Mines accelerated its drilling efforts on the Hugo Dummett deposit. In September 2003, the Company announced that new copper and gold rich intersections had encountered a new style of bornite-rich porphyry mineralization. In order to explore these new deeper zones, a drill rig capable to reach depths of 3,000 metres arrived on the property at the end of October. - In November 2003, AMEC E&C Services Limited ("AMEC") delivered an increased estimate of mineral resources at the Turquoise Hill project. AMEC estimated that at November 10, 2003, using a 0.3% copper equivalent cut-off grade, the project contained the following two separate categories of inferred and indicated mineral resources:
Gold Copper Gold Tonnes Copper grams/tonne Million Million Mineral Resource Million % ("g/t") Tonnes Ounces ---------------------------------------------------------------------------------------------------------- Inferred 2,598 0.73% 0.17 19.1 14.4 Indicated 509 0.40% 0.59 2.1 9.7
- A scoping study designed to formulate optimal project development concepts is underway and expected to be released before the end of 2003. - In July 2003, Ivanhoe Mines announced the discovery of several large aquifers near the site of the Turquoise Hill project. Independent consultants currently estimate that the aquifers are capable of providing sufficient water to meet the process requirements for a 50,000 tonne per day mining operation. Page 1 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OPERATING AND FINANCIAL RESULTS - The net loss for the Q3'03 was $ 26.4 million, or $ 0.11 per share, compared with a profit of $0.5 million or $nil per share in Q3'02. Included in the Q3'03 loss is: - Exploration division expenses, net after tax, of $21.8 million (Q3'02 - $10.3 million) including total expenditures of $ 17.4 million in Mongolia. - Net income of $1.2 million (Q3'02 - $1.0 million) from the S&K Mine copper operations in Myanmar. - Net income of $0.6 million (Q3'02 - $15.3 million) from the Savage River Mine operation in Australia. The net income in Q3'02 included a $32.5 million gain in settlement of debt and a $18 million write-down of the carrying values of assets. - Corporate division loss of $6.5 million (Q3'02 - $5.5 million), including a loss on foreign exchange of $1.1 million, general and administrative expenses of $3.8 million and mining property care and maintenance costs in Kazakhstan of $1.0 million. CORPORATE - In October 2003, the Company raised $50.0 million (Cdn$66.0 million) through the issue of 5.76 million Special Warrants at a price of $8.68 (Cdn$11.45) each. Each Special Warrant entitles the holder to acquire, at no additional cost, one common share and one-tenth of a common share purchase warrant of the Company. The majority of the proceeds from the financing will be used to finance the acquisition of the BHP royalty discussed below, exploration of the Mongolian properties and working capital. - In November 2003, for a total of $37 million, the Company acquired from BHP Minerals International Exploration Inc. ("BHP") the 2% net smelter return royalty interest on the Turquoise Hill project. The $37 million is payable in two instalments: $17 million in November 2003 and $20 million in February 2004. The Company believes that this acquisition represents a timely and strategic move by the Company to consolidate its control over all the aspects of the Turquoise Hill project. - In November 2003, the Company appointed John Macken as president. Mr. Macken spent over 19 years with Freeport McMoran Copper and Gold, including 13 years as Executive Vice-President and General Manager of Freeport's Grasberg mining complex, the world largest single copper and gold mine. Mr. Macken's experience also includes large scale mine construction.. - In October 2003, Mr. David Huberman was appointed to the Board of Directors of the Company in the position of lead director. - In November 2003, the Company announced that its common shares had been approved for trading in the US on the NASDAQ National Market System, trading under the symbol HUGO. Page 2 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CRITICAL ACCOUNTING POLICIES A detailed summary of all of the Company's significant accounting policies is included in Note 2 to the annual Consolidated Financial Statements for the year ended December 31, 2002. Management is required to make assumptions and estimates that affect the valuation of its mineral assets. Significant estimates used in the valuation of inventories and capital assets include quantities of mineral in heaps and in circuit, proven and probable ore reserves, the estimated recoverable tonnes of ore, the expected economic life of and the estimated future operating results and net cash flows from mining property, plant and equipment, and the anticipated reclamation costs of mine sites. Following generally accepted accounting principles, impairments in the valuation of mineral assets are recorded in the Company's consolidated financial statements, while increases in the valuation of mineral assets are not permitted. The most likely changes in estimates used in the valuation of mineral assets are the changes in estimates based on noticeable changes in trends of operating costs and commodity prices. A small percentage change in costs or revenues, when spread over the remaining life of a mining project, that can exceed twenty years, can have a significant impact on the valuation calculations, resulting in a material reduction in the carrying value of Ivanhoe Mines' mineral assets. FORWARD LOOKING STATEMENTS Except for statements of historical fact relating to Ivanhoe Mines, certain information contained herein constitutes forward- looking statements. Forward- looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and 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 statements. A summary of risk factors is included in the Company's Renewal Annual Information Form for the year ended December 31, 2002. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project costs overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in this report under the heading "Outlook". The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. This Management's Discussion and Analysis contains references to estimates of mineral resources. The estimation of reserves and resources is inherently uncertain and involves subjective judgments about many relevant factors. The accuracy of any such estimates is a function of the quantity and quality of available data and of the assumptions made and Page 3 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS judgments used in engineering and geological interpretation, which may prove to be unreliable. There can be no assurance that these estimates will be accurate, that reserves and mineral resource figures will be accurate, and that reserves and mineral resources could be mined or processed profitably. EXPLORATION Exploration expenses in Q3'03 totalled $20.8 million, compared to $10.0 million in Q3'02. The majority of the $10.8 million increase is due to the engineering evaluation studies, drilling and exploration activities on the Turquoise Hill project and other Mongolian properties. a) MONGOLIA - At the end of September 2003, Ivanhoe Mines held 126 exploration licenses covering approximately 10.9 million hectares. In Q3'03 Ivanhoe Mines spent $17.4 million on the Mongolian properties and the main focus of exploration activities was on the Turquoise Hill project ($ 15.2 million), the Kharmagtai and Ovoot Hyar projects ($0.3 million), the Oyut Ulaan project ($0.4 million) and general reconnaissance projects ($1.0 million). i) TURQUOISE HILL EXPLORATION - In November 2003, AMEC released a new increased estimate of the Turquoise Hill project's mineral resources. With an equivalent cut-off grade of 0.60% copper, AMEC increased the Hugo Dummett deposit's inferred resource category, previously estimated in July 2003, from 643 million tonnes grading 1.19% copper and 0.10 g/t gold to 962 million tonnes grading 1.30% copper and 0.18 g/t gold. In its November estimate, AMEC increased the Hugo Dummett deposit's high grade core of inferred resources greater than 2% copper equivalent to 149.4 million tonnes grading 2.88% copper and 0.53 g/t gold from the July estimate of 70.8 million tonnes grading 2.92% copper and 0.30 g/t gold. The Hugo Dummett deposit is the largest of the four copper and gold deposits outlined to date at Ivanhoe's Turquoise Hill project. AMEC, using a 0.30% copper equivalent cut-off, estimates that the Turquoise Hill project contains estimated inferred resources totalling 2.6 billion tonnes grading 0.73% copper and 0.17 g/t gold. This represents an increase of 27% in the amount of copper and gold previously reported by AMEC in their mineral resource report issued in July 2003. In addition, using the same 0.30% copper equivalent cut-off grade, AMEC has estimated 509 million tonnes of indicated resources in the Southwest Zone grading 0.40% copper and 0.59 g/t gold. The AMEC estimate was prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101, under the direction of Stephen Juras, P. Geo., and Dr. Harry Parker, Ch.P. Geol., independent qualified persons as defined by NI 43-101. As required by NI 43-101, AMEC is preparing an addendum to its August 2003 technical report, which is expected to be delivered in early December 2003. Upon release, a copy of the as so updated AMEC report will be Page 4 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS available on SEDAR. A summary extracted from the AMEC report containing details of the mineral resource estimates at various copper equivalent cut-off grades is currently available on Ivanhoe Mines' web site at http://www.ivanhoe-mines.com. ii) TURQUOISE HILL STUDIES- Several engineering studies were ongoing at Turquoise Hill during Q3'03, including: - Several combined open pit/underground development scenarios were developed, including underground mining concepts for the deeper sections of the Southwest deposit and the Hugo Dummett deposit. The applicability of economic sub-level caving and block caving mining methods are currently being evaluated. - Studies were initiated to determine the most suitable locations for the construction of an exploratory decline and an exploration shaft, intended to access and allow the future underground exploration drilling of the Hugo Dummett deposit's North and South zones. - Several metallurgical tests were carried out during the quarter, including composites on high grade and low grade material from the Southwest and Central deposits, batch flotation tests on material from the Hugo Dummett deposit and small column heap leach tests on material from the Central and South Oyu deposits. - Water exploration continued during the quarter and drilling of several holes to test delineated aquifers is scheduled for the fourth quarter. Also, permeability tests were conducted to allow development of detailed mine-dewatering models. - Assessment of possible routes for roads and railways continued during the quarter. Chinese authorities completed construction of an upgraded 226 kilometres ("km") highway that provides a direct highway link between the Mongolian border crossing, 80 km south of the Oyu Tolgoi project, and the Trans-China Railway system. Ivanhoe Mines has initiated discussions with Mongolian and Chinese government authorities to extend the highway the final 80 km to the Oyu Tolgoi project site. - Potential sources of power continued to be investigated, including various coal deposits located within Mongolia and the importation of power from the Inner Mongolia province in China. More details on these engineering issues will be included in an independent scoping study expected to be released in December 2003. The independent scoping stud y will be used in the Q1'04 Turquoise Hill project's application for the conversion of the exploration licenses to a mining license. The Company anticipates completing the conversion process in the first half of 2004. iii) KHARMAGTAI AND OVOOT HYAR PROJECTS - These two properties contain several copper/gold targets. During Q3'03, reinterpretation of drill core and geological Page 5 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS mapping was conducted at the Gold Hill project in preparation for a third phase of drilling in early 2004, In Q3'03 a total of approximately $ 0.3 million was spent on these various projects. iv) OYUT ULAAN - The Oyut Ulaan project comprises a variety of targets extending over an area of approximately 12 km by 6 km. Detailed geological mapping and surface rock-chip sampling was completed during Q3'03. Drilling on the project has confirmed the presence of a gold-copper mineralized porphyry-style quartz stockwork mineralization and a second phase of diamond drilling is planned for mid-2004. In Q3'03 a total of approximately $0.4 million was spent on this project. v) SHUTEEN - References to the Shuteen project can be found under the China: Pacific Minerals caption below. vi) ASIA GOLD - In July 2003 Ivanhoe Mines completed a transaction with Asia Gold Corp. (formally MX Capital Corp.) ("Asia Gold"), a private Canadian mineral exploration company. As part of the transaction, Ivanhoe Mines transferred to Asia Gold a series of early-stage Mongolian exploration licenses covering approximately 3.1 million hectares (31,000 sq. km) in the South Gobi region of Mongolia, and located approximately 150 kilometres west of the Turquoise Hill project. These licenses, combined with Asia Gold's existing Mongolia licenses, cover approximately 4.0 million hectares (40,000 square kilometres ("sq km")) throughout the prospective South Gobi porphyry belt. In addition, Ivanhoe transferred to Asia Gold its Korean gold and silver projects, including the Eunsan gold and silver mine, located in Chollanam-Do Province, South Korea. In consideration for these assets, Asia Gold issued approximately 6.1 million common shares to the Company. Ivanhoe Mines also invested Cdn$1.0 million in cash to purchase approximately 0.8 million Asia Gold units. Each unit consists of one common share of Asia Gold and one share purchase warrant exercisable for a period of one year. Each warrant is convertible into one additional common share of Asia Gold at a price of Cdn$1.32. Subsequent to the July transaction, Ivanhoe Mines agreed to loan to Asia Gold up to an additional Cdn$1.4 million. The loan is convertible into common shares of Asia Gold at a price of Cdn$1.50 per share. On a fully diluted basis, Ivanhoe Mines' equity interest in Asia Gold currently totals approximately 71%. As of the date hereof, Asia Gold is in the process of undertaking an initial public offering. b) MYANMAR -Underground exploration on Modi Taung's Shwesin and Htongyi Taung's quartz-gold veins continued during Q3'03. A total of 650 metres ("m") of underground adit was driven during the quarter (Q2'03 - 829m). The decreased activity is mainly due to a reduction of operations during the main monsoon months. The Htongyi Taung-style Adder vein with visible gold was uncovered in trenches 700m northwest of the nearest Htongyi Taung adit. Access and site preparation for aditing on the Adder vein started late September, and an access adit on the Sakangyi vein, 300m east of Shwesin, was also begun. Results on 500 auger soil samples collected on infill or extended lines across projected veins are pending. Page 6 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS At the Kankaung quartz- gold vein prospect 12km northwest of Modi Taung, site preparation for a 200m long adit and cross-cuts began at the end of September. About 27km to the northeast, surface exploration on the Shweminbon gold skarns in karstic terrain resumed after an interruption during the peak monsoon period. The scoping study for development of the Modi Taung veins was updated with a target milling rate of 75 tonnes per day and the mining of ore material averaging 25 to 30 g/t gold. Total exploration expenditures in Q3'03 totalled approximately $0.5 million. c) OTHER - i) CHINA: PACIFIC MINERALS - Ivanhoe Mines is exploring for gold, copper and platinum-group metals (PGMs) in Inner Mongolia through a joint venture with Pacific Minerals Inc. ("PMZ"). At the end of October 2003, PMZ and Ivanhoe reached an agreement-in-principle to restructure their mineral exploration and development joint venture. The revised agreement will reduce Ivanhoe Mines' maximum earn-in from 80% to 50% on PMZ's most significant projects in China. Ivanhoe Mines retains the right to earn up to 80% of the available interest in any new projects acquired by PMZ in China (excluding the Anhui and Liaoning provinces). The revised agreement also contains a mutual non-compete clause, whereby PMZ agrees not to compete for any new mineral properties in the Inner Mongolia Region and Ivanhoe Mines agrees not to compete for any new mineral properties in Liaoning Province. Ivanhoe Mines also agreed to transfer to PMZ 50% of its interest in the Shuteen exploration licence in southern Mongolia. The project has similar geological characteristics and is within the same copper-rich mineral belt that hosts Ivanhoe Mines's Turquoise Hill and Kharmagtai porphyry copper- gold projects. The Shuteen licence covers approximately 93 sq km (36 sq miles), approximately 100km east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in Shuteen in early 2002 by undertaking to complete a US$1.5 million exploration program before December 31, 2004. To date, Ivanhoe Mines has spent in excess of US$1.5 million on the project. ii) INNER MONGOLIA: IVANHOE MINES - Throughout Q3'03, Ivanhoe Mines continued its extensive reconnaissance programs to identify high-priority targets based upon geologic models developed at Turquoise Hill and other epithermal-style deposits. In August 2003, Ivanhoe Mines announced that it had entered into a comprehensive joint venture with a Chinese government entity to explore for and develop gold, copper, silver, molybdenum and other minerals on three advanced projects in Inner Mongolia. The three projects are in addition to the Oblaga gold-copper-molybdenum project also located in Inner Mongolia. Total exploration expenditures in Q3'03 totalled approximately $1.0 million. iii) VIETNAM: OLYMPUS PACIFIC MINERALS - Ivanhoe holds a minority interest in a gold exploration joint venture in Vietnam with Olympus Pacific Minerals, a public Canadian mineral exploration company, and Zedex Ltd., a New Zealand registered Page 7 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS investment company. The joint venture's principal project is the Phuoc Son gold project, in northwestern Quang Nam Province, Central Vietnam. iv) AUSTRALIA: SELWYN - At the end of September 2003, the Company announced the acquisition of all of the Selwyn copper-gold project's mining and exploration leases in Australia. The Selwyn leases cover an area of more than 1,450 sq km, approximately 160 km southeast of Mount Isa in north-western Queensland. Ivanhoe Mines plans to carry out an extensive exploration program on the Selwyn property. OPERATIONS COPPER OPERATION S&K MINE, MYANMAR
Three months ended September 30, 2003 -------------------------------------------------------------------------------------- Total Operation Company's 50% net share ------------------------------------------------- ------------------------------- % Increase % Increase 2003 2002 (decrease) 2003 2002 (decrease) ------------------------------------------------- ------------------------------- Total tonnes moved Tonnes (000's) 4,644 4,233 10% Tonnes of ore to heap Tonnes (000's) 2,361 1,895 25% Ore Grade CuCn % 0.60% 0.49% 22% Strip ratio Waste/Ore 0.86 0.63 37% Cathode production Tonnes 7,532 7,173 5% 3,766 3,587 5% Tonnage sold Tonnes 7,274 6,869 6% 3,637 3,435 6% Average sale price received US$/pound $ 0.80 $ 0.72 12% Sales US$(000) 6,069 5,123 18% Cost of operations US$(000) 2,816 2,746 3% Operating profit US$(000) 1,988 1,484 34%
Nine months ended September 30, 2003 ------------------------------------ Total Operation Company's 50% net share --------------------------------------------------- ---------------------------------- % Increase % Increase 2003 2002 (decrease) 2003 2002 (decrease) --------------------------------------------------- ---------------------------------- Total tonnes moved Tonnes (000's) 14,601 10,606 38% Tonnes of ore to heap Tonnes (000's) 6,890 5,291 30% Ore Grade CuCn % 0.57% 0.56% 2% Strip ratio Waste/Ore 0.91 0.53 72% Cathode production Tonnes 20,406 20,801 (2%) 10,203 10,401 (2%) Tonnage sold Tonnes 20,240 20,432 (1%) 10,120 10,216 (1%) Average sale price received US$/pound $ 0.76 $ 0.71 7% Sales US$(000) 16,181 15,210 6% Cost of operations US$(000) 7,672 7,839 (2%) Operating profit US$(000) 555 4,408 (87%)
The construction and stacking of various heap cells continued during the quarter resulting in a 10% increase in total tonnes moved and a 25% increase in total ore stacked. The increase in copper cathode production in Q3'03 resulted in an equivalent annualized production level of approximately 30,000 tonne per annum. This level of production is the highest level of production ever reached in a quarter since the start of operations in 1998. Copper prices have been increasing steadily since November 2001, when copper prices reached a low of approximately $0.60 per pound. Copper prices averaged $0.80 per Page 8 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS pound in Q3'03 and have so far averaged closed to $0.90 per pound in the fourth quarter of 2003. In Q3'03, total copper sale revenues increased by 18% over Q3'02, as a result of a 6% increase in tonnage sold and a 12% increase in copper prices. The increase in cost of operations during Q3'03 is a direct result of the increased production level and is mainly attributed to increases in fuel, power and equipment costs related to additional tonnage moved. Ivanhoe Mines regularly evaluates the S&K Mine's estimated recoverable quantities of copper on the heaps. Ivanhoe Mines continues to review the underlying technical data and accordingly may subsequently increase or decrease any adjustments made to these quantities. The amount of any adjustment may be material. In Q3'03, the mine capitalized approximately $357,000 in costs of removing additional waste material. In July of 2003, work began on a test pit and associated mining infrastructure, to be developed at the adjacent Letpadaung deposit. The mini-pit will produce 10,000 tonnes per day of high- grade ore as a test for the intended large-scale mining and heap-leach operations at Letpadaung. In August 2003, the S&K operations started mining the Letpadaung deposit, removing approximately 230,000 tonnes of waste material. At the end of September 2003, MICCL, the owner of the S&K Mine, had approximately $1.8 million in cash. The loan repayment of approximately $8.4 million due at the end of August was repaid during the quarter. However, at the end of August 2003, the S&K Mine's debt service account contribution, required to cover the next principal and interest payments due at the end of February 2004, was deficient by approximately $8.1 million. While no assurances can be given, the management of the S&K Mine believes that it will generate sufficient cash flows to be able to repay the next loan payment when due at the end of February 2004. Although MICCL is technically in default under the loan agreement, based on discussions with the lenders, the Company does not expect the lenders to act upon the default. However, no assurances can be given to this regard. Page 9 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS IRON OPERATION SAVAGE RIVER MINE, TASMANIA
Three months ended September 30, 2003 ------------------------------------- Percent Increase 2003 2002 (decrease) ---------------------------------------------------------------------------- Total volumes moved BCM (000's) 2,206 2,332 (5%) Tonnes milled (000's) 1,283 1,249 3% Strip ratio BCM waste/BCM ore 4.9 15.1 (68%) Concentrate production (000's) 563 528 7% Iron ore content Fe% 33.3% 32.1% 4% Pellet production Tonnes 560,757 513,114 9% Pellet sales Tonnes 449,962 507,984 (11%) Sales US$/tonne $ 32 $ 28 16% US$(000) 14,580 14,146 3% Cost of operations US$(000) 12,294 11,179 10% Operating profit (loss) US$(000) 817 647 26% Average foreign exchange rate US$/AUD$ 0.6588 0.5475 20%
Nine months ended September 30, 2003 ------------------------------------ Percent Increase 2003 2002 (decrease) ---------------------------------------------------------------------------------------- Total volumes moved BCM (000's) 7,524 7,205 4% Tonnes milled (000's) 3,956 3,623 9% Strip ratio BCM waste/BCM ore 6.7 8.0 (16%) Concentrate production (000's) 1,684 1,660 1% Iron Ore content Fe% 32.3% 34.7% (7%) Pellet production Tonnes 1,673,608 1,622,873 3% Pellet sales Tonnes 1,578,206 1,702,444 (7%) Sales US$/tonne $ 30 $ 30 2% US$(000) 48,034 50,638 (5%) Cost of operations US$(000) 47,107 38,476 22% Operating profit (loss) US$(000) (2,550) 7,763 (133%) Average foreign exchange rate US$/AUD$ 0.6309 0.5390 17%
Total pellet production in Q3'03 increased by 9% over Q3'02. A 4% increase in grade and a 3% increase in tonnes milled were the two main factors contributing to the increase in production. Due to shipment delays at the end of the quarter, total tonnage of pellets sold in Q3'03 decreased by 11% over Q3'02. The increase in pellet prices in Q3'03 reflects the retroactive annual price increase settled in August of 2003. The iron ore market continues to be strong, with much of the demand coming from China. The tight ore supply has prompted steel mills to secure long term iron ore pellet contracts. Most of the planned production for Savage River Mine over the next 3 to 4 years has now been taken up in supply contracts. Operating profit increased from $0.6 million in Q3'02 to a $0.8 million in Q3'03. The $0.2 million increase in profit is the result of a $0.4 million increase in revenue, a $0.9 million decrease in depreciation and a $1.1 million increase in cost of operations. Page 10 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In Q3'03 the Savage River operation increased the total volume of ore mined by approximately 60% over the same period in 2002 and decreased total volume of waste mined by 16%. Consequently, the capitalized pre-stripping charge was reduced from $4.2 million in Q3'02 to $0.8 million in Q3'03. The $4.5 million increase in inventory in Q3'03 is mainly attributed to the stockpiling of high grade run of mine ore during the quarter. Operating costs prior to the pre-stripping deduction in Q3'03 were up 14% over the same period in Q3'02. The 14% increase is the combined result of an 6% decrease in Australian denominated operating costs plus a 3% increase in tonnage milled and a nominal 20% increase in US denominated costs due to the strengthening of the Australian dollar. The majority of the 6% decrease in operating costs is mainly attributable to lower fuel costs resulting from the switch to gas, net of increases in fleet rental charges, explosives and electricity. Also, the softer ore from the South Deposit has proved difficult to process due to the coarse grained nature of the ore, which requires more grinding effort to achieve the correct blend. The nature of the ore has also increased mill liner wear rates. In September 2003, the Company advanced $ 3 million Australian dollar ("A$") to the Savage River Mine, the last portion of a previously agreed A$8 million working capital credit facility. In the first nine months of 2003, the Australian dollar has considerably strengthened in relation to the US dollar. The Australian dollar continued its ascent during Q4'03 and in mid-November, stood at around US$0.72 per A$1.00, a 28% increase since the beginning of 2003. In 2004 and future years, in order to offset the negative impact of a strong Australian dollar, the management of the Savage River Mine will have to improve the economic viability of the mine by continuing its efforts to lower costs and successfully negotiate increases in pellet prices. There is no guarantee that the Company will commit to fund any future cash shortfall at the Savage River Mine. OTHER PROJECTS EUNSAN GOLD AND SILVER MINE, SOUTH KOREA On July 31, 2003 Ivanhoe transferred all of its Korean assets and certain Mongolian exploration licenses to Asia Gold in exchange for common shares of Asia Gold (see "Exploration and Development-Mongolia - Asia Gold"). On July 31, 2003 Asia Gold also acquired from Ivanhoe all of the issued share capital of Korean Exploration Inc. ("KEI"). KEI owns a 90% interest in Korea Exploration & Mining Ltd. ("KEM"). KEM owns directly and indirectly through its wholly-owned subsidiary, Sun Shin Gold Mines Co. Ltd. a group of mineral rights located in the Seongsan region in South Korea and the Eunsan mine development project and surrounding exploration licences. Exploration activities in Q3'03 were focused on ore definition drilling at Eunsan and exploration drilling at Gasado Island. BAKYRCHIK GOLD MINE, KAZAKHSTAN Mining property care and maintenance costs totalled $1.0 million in Q3'03 compared to $0.8 million in Q3'02. Page 11 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS During Q3'03, the Bakyrchik Gold Mine re-commissioned the existing flotation plant and processed previously mined sulphide ores, with the intent to test the commercial production of concentrate. Also during the quarter, with the use of local process equipment, the Bakyrchik Gold Mine initiated a pilot test on a roasting technology developed by a Bakyrchik metallurgist. Most of the test results confirmed that this technology may be used to roast whole ores and concentrates. Work continues on implementation of the work program approved by the Government of Kazakhstan to resume mining operations at Bakyrchik beginning in mid 2004. The services of a mining consultant and local institutes have been engaged and a final report assessing the feasibility of mining and processing 700,000 tonnes per year of sulphide ores was received. The report is currently being reviewed. Exploration work continues in the oxide areas according to the work plan approved by the Ministry of Energy and Mineral Resources. The Company continues to explore alternative ways to finance the development of the Bakyrchik Gold Mine. GENERAL The corporate general and administrative expenses increased from $3.1 million in Q3'02 to $3.8 million in Q3'03. The majority of the increase during Q3'03 is attributed to increased expenses related to investor relations tours, additional office charges in Asia, and travel related to financing activities. All funds received in 2003 from private placement financings were transacted in Canadian dollars, and the funds were converted to US dollars only when required. CASH RESOURCES AND LIQUIDITY At September 30, 2003, consolidated working capital was $28.6 million including cash of $38.8 million compared with working capital of $22.3 million and cash of $46.9 million at December 31, 2002. Operating activities used cash of $24.8 million in Q3'03, primarily in the Exploration Segment. Investing activities used cash of $9.5 million in Q3'03 and included $1.9 million in sustaining capital expenditures on mining property, plant and equipment at the S&K Mine and Savage River Mine, $4.2 million in mineral rights acquisition on the Selwyn property and $3.0 million in other capital assets acquisitions. Other capital assets acquisitions mainly consisted of the acquisition of an aircraft intended to replace some Mongolian third party air service providers used to transport Company's personnel to the Turquoise Hill project. Financing activities in Q3'03 included cash used for the Company's $3.75 million (50% share of $7.5 million) debt repayment by the S&K Mine. From late December 2002 to September 2003 the Company raised a total of $89.4 million (Cdn$134.5 million) through the issue of 41.3 million common shares of the Company at prices ranging from Cdn$3.00 to Cdn$3.50 per share. In October 2003, the Company page 12 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS raised $50.0 million (Cdn$66.0 million) through the issue of 5.76 million Special Warrants at a price of $8.68 (Cdn$11.45) each. Each Special Warrant entitles the holder to acquire, at no additional cost, one common share and one-tenth of a common share purchase warrant of the Company. The majority of the proceeds from the financing will be used to finance the acquisition of the BHP royalty, working capital and exploration of the Mongolian properties in Q4'03 and early 2004. Total expenditures in Q4'03, including all exploration and mineral interest acquisition costs, mine care and maintenance costs and corporate administrative costs, are estimated to range between $ 42.0 million to $ 47.0 million. OUTLOOK The Company expects to maintain in Q4'03 similar copper and iron production levels as experienced in Q3'03. Apart from variations in production volumes, Ivanhoe Mines' earnings and cash flows are directly affected by metal prices, variations in the exchange rates between the Australian and U.S. dollars, and the Canadian and U.S. dollars. Various risks, including fluctuations in commodity prices, foreign exchange rates, customer demand, and financing and political uncertainties, can adversely affect Ivanhoe Mines' future profitability and its ability to realize anticipated increases in production capacity. Unlike copper cathode, whose characteristics are set by commonly agreed standards, iron ore products need to reflect the specific requirements and limitations of customers. With only a few customers, the Savage River Mine's operations could be adversely affected, in the short and medium term, by the loss of a key customer. A limited customer base is also a risk to the S&K Mine as a substantial part of its copper production is sold, under a take or pay contract, to a single Japanese buyer. The buyer resells the cathode to customers throughout Asia. The S&K Mine's profitability could be negatively affected if economic sanctions or boycotts against trade with Myanmar were enacted in the future by major Asian countries. MICCL, the owner of the S&K Mine, is currently not in compliance with certain covenants in its project loan agreement. Since August 2002, the debt service reserve (an amount to cover the next principal and interest payments) has been deficient. Although MICCL is technically in default under the loan agreement, based on discussions with the lenders, the Company does not expect the lenders to act upon the default. However, no assurances can be given to this regard. The S&K Mine's project loan is non-recourse to the Company. The Company is examining strategic alternatives for the project, including proceeding with an expansion program, rescheduling the project debt, bringing in additional equity partners, or sale of its interest in the project, subject, in any event, to all necessary governments and regulatory consents or approvals. There can be no assurance that any such strategic alternative will be proceeded with or completed. Management believes that Ivanhoe Mines' existing cash resources are sufficient to meet all of its planned capital expenditures for the next five months. The planned capital expenditures include a $20 million provision for the acquisition of the BHP royalty. If Page 13 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS the Company does not make this final $20 million payment in February 2004, it will not be entitled to a refund of its November 2003 initial $17 million payment. After February 2004, Ivanhoe Mines will need to obtain additional funding for, or third party participation in, its undeveloped or partially developed projects in order to bring them into full production. Such projects include the Mongolian properties and the Bakyrchik Gold Mine. Since the S&K Mine's loan is not at fixed interest rates, future fluctuations in interest rates will have a significant impact on the profitability of the S&K Mine and also on Ivanhoe Mines' ability to successfully finance its other undeveloped or partially developed projects. Since factors beyond Ivanhoe Mines' control may adversely affect its access to funding or its ability to recruit third party participants, there can be no assurance Ivanhoe Mines' undeveloped or partially developed projects can be fully developed in whole or in part. Ivanhoe Mines's Turquoise Hill copper-gold discovery and its principal exploration properties in Mongolia, and in the neighbouring Inner Mongolia region of northern China, now constitute Ivanhoe's core holding and management's primary focus. As Ivanhoe Mines advances with the planned development of the Turquoise Hill copper-gold project in Mongolia, the Company has held talks with some of the world's largest mining companies and state-owned and private companies in Japan, South Korea and China, including the state-controlled China International Trust & Investment Corporation (CITIC), to sell a minority stake in the project. Discussions are ongoing. No assurances can be given that agreement can or will be reached. Ivanhoe Mines' future strategy will be to continue exploring opportunities to rationalize its non-core assets, which could include sales or spin-offs in the form of partial sales or joint ventures, in an effort to ensure that it receives the market recognition that it deserves. Ivanhoe Mines also intends to continue to actively pursue acquisition and exploration opportunities throughout the world, with particular focus on large, high quality precious and base metal projects in Asia. Ivanhoe Mines' recent acquisition of the Selwyn mineral leases is the initial step in the Company's strategy to expand its Australian mining operations through the acquisition of advanced projects with superior exploration potential. The company expects that this strategy will provide the platform for its consolidated Australian operations to become an independent, diversified mining entity with direct access to capital markets in Australia and Canada. Page 14 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Ivanhoe Mines Ltd. (the "Company") is an international mining company exploring a major discovery of gold and copper at the Turquoise Hill project (Oyu Tolgoi) in southern Mongolia. It also has regional exploration programs targeting gold and copper, principally in Mongolia and China. The Company together with its subsidiaries and joint venture (collectively referred to as "Ivanhoe Mines") produces copper, gold and iron ore products from various mines in the Asia Pacific region. During the third quarter, Ivanhoe Mines continued to concentrate the majority of its cash resources and management time to the Turquoise Hill project. The Company spent a total of $ 20.8 million in exploration during the quarter, of which $ 17.4 million was spent in Mongolia. MONGOLIA - In September 2003, the Far North Zone was renamed the Hugo Dummett deposit. - In Q3'03, Ivanhoe Mines accelerated its drilling efforts on the Hugo Dummett deposit. In September 2003, the Company announced that new copper and gold rich intersections had encountered a new style of bornite-rich porphyry mineralization. In order to explore these new deeper zones, a drill rig capable to reach depths of 3,000 metres arrived on the property at the end of October. - In November 2003, AMEC E&C Services Limited ("AMEC") delivered an increased estimate of mineral resources at the Turquoise Hill project. AMEC estimated that at November 10, 2003, using a 0.3% copper equivalent cut-off grade, the project contained the following two separate categories of inferred and indicated mineral resources:
Gold Copper Gold Tonnes Copper grams/tonne Million Million Mineral Resource Million % ("g/t") Tonnes Ounces ---------------------------------------------------------------------------------- Inferred 2,598 0.73% 0.17 19.1 14.4 Indicated 509 0.40% 0.59 2.1 9.7
- A scoping study designed to formulate optimal project development concepts is underway and expected to be released before the end of 2003. - In July 2003, Ivanhoe Mines announced the discovery of several large aquifers near the site of the Turquoise Hill project. Independent consultants currently estimate that the aquifers are capable of providing sufficient water to meet the process requirements for a 50,000 tonne per day mining operation. Page 1 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OPERATING AND FINANCIAL RESULTS - The net loss for the Q3'03 was $ 26.4 million, or $ 0.11 per share, compared with a profit of $0.5 million or $nil per share in Q3'02. Included in the Q3'03 loss is: - Exploration division expenses, net after tax, of $21.8 million (Q3'02 - $10.3 million) including total expenditures of $ 17.4 million in Mongolia. - Net income of $1.2 million (Q3'02 - $1.0 million) from the S&K Mine copper operations in Myanmar. - Net income of $0.6 million (Q3'02 - $15.3 million) from the Savage River Mine operation in Australia. The net income in Q3'02 included a $32.5 million gain in settlement of debt and a $18 million write-down of the carrying values of assets. - Corporate division loss of $6.5 million (Q3'02 - $5.5 million), including a loss on foreign exchange of $1.1 million, general and administrative expenses of $3.8 million and mining property care and maintenance costs in Kazakhstan of $1.0 million. CORPORATE - In October 2003, the Company raised $50.0 million (Cdn$66.0 million) through the issue of 5.76 million Special Warrants at a price of $8.68 (Cdn$11.45) each. Each Special Warrant entitles the holder to acquire, at no additional cost, one common share and one-tenth of a common share purchase warrant of the Company. The majority of the proceeds from the financing will be used to finance the acquisition of the BHP royalty discussed below, exploration of the Mongolian properties and working capital. - In November 2003, for a total of $37 million, the Company acquired from BHP Minerals International Exploration Inc. ("BHP") the 2% net smelter return royalty interest on the Turquoise Hill project. The $37 million is payable in two instalments: $17 million in November 2003 and $20 million in February 2004. The Company believes that this acquisition represents a timely and strategic move by the Company to consolidate its control over all the aspects of the Turquoise Hill project. - In November 2003, the Company appointed John Macken as president. Mr. Macken spent over 19 years with Freeport McMoran Copper and Gold, including 13 years as Executive Vice-President and General Manager of Freeport's Grasberg mining complex, the world largest single copper and gold mine. Mr. Macken's experience also includes large scale mine construction. - In October 2003, Mr. David Huberman was appointed to the Board of Directors of the Company in the position of lead director. - In November 2003, the Company announced that its common shares had been approved for trading in the US on the NASDAQ National Market System, trading under the symbol HUGO. Page 2 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CRITICAL ACCOUNTING POLICIES A detailed summary of all of the Company's significant accounting policies is included in Note 2 to the annual Consolidated Financial Statements for the year ended December 31, 2002. Management is required to make assumptions and estimates that affect the valuation of its mineral assets. Significant estimates used in the valuation of inventories and capital assets include quantities of mineral in heaps and in circuit, proven and probable ore reserves, the estimated recoverable tonnes of ore, the expected economic life of and the estimated future operating results and net cash flows from mining property, plant and equipment, and the anticipated reclamation costs of mine sites. Following generally accepted accounting principles, impairments in the valuation of mineral assets are recorded in the Company's consolidated financial statements, while increases in the valuation of mineral assets are not permitted. The most likely changes in estimates used in the valuation of mineral assets are the changes in estimates based on noticeable changes in trends of operating costs and commodity prices. A small percentage change in costs or revenues, when spread over the remaining life of a mining project, that can exceed twenty years, can have a significant impact on the valuation calculations, resulting in a material reduction in the carrying value of Ivanhoe Mines' mineral assets. FORWARD LOOKING STATEMENTS Except for statements of historical fact relating to Ivanhoe Mines, certain information contained herein constitutes forward-looking statements. Forward- looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and 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 statements. A summary of risk factors is included in the Company's Renewal Annual Information Form for the year ended December 31, 2002. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project costs overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in this report under the heading "Outlook". The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements. This Management's Discussion and Analysis contains references to estimates of mineral resources. The estimation of reserves and resources is inherently uncertain and involves subjective judgments about many relevant factors. The accuracy of any such estimates is a function of the quantity and quality of available data and of the assumptions made and Page 3 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS judgments used in engineering and geological interpretation, which may prove to be unreliable. There can be no assurance that these estimates will be accurate, that reserves and mineral resource figures will be accurate, and that reserves and mineral resources could be mined or processed profitably. EXPLORATION Exploration expenses in Q3'03 totalled $20.8 million, compared to $10.0 million in Q3'02. The majority of the $10.8 million increase is due to the engineering evaluation studies, drilling and exploration activities on the Turquoise Hill project and other Mongolian properties. a) MONGOLIA - At the end of September 2003, Ivanhoe Mines held 126 exploration licenses covering approximately 10.9 million hectares. In Q3'03 Ivanhoe Mines spent $17.4 million on the Mongolian properties and the main focus of exploration activities was on the Turquoise Hill project ($ 15.2 million), the Kharmagtai and Ovoot Hyar projects ($0.3 million), the Oyut Ulaan project ($0.4 million) and general reconnaissance projects ($1.0 million). i) TURQUOISE HILL EXPLORATION - In November 2003, AMEC released a new increased estimate of the Turquoise Hill project's mineral resources. With an equivalent cut-off grade of 0.60% copper, AMEC increased the Hugo Dummett deposit's inferred resource category, previously estimated in July 2003, from 643 million tonnes grading 1.19% copper and 0.10 g/t gold to 962 million tonnes grading 1.30% copper and 0.18 g/t gold. In its November estimate, AMEC increased the Hugo Dummett deposit's high grade core of inferred resources greater than 2% copper equivalent to 149.4 million tonnes grading 2.88% copper and 0.53 g/t gold from the July estimate of 70.8 million tonnes grading 2.92% copper and 0.30 g/t gold. The Hugo Dummett deposit is the largest of the four copper and gold deposits outlined to date at Ivanhoe's Turquoise Hill project. AMEC, using a 0.30% copper equivalent cut-off, estimates that the Turquoise Hill project contains estimated inferred resources totalling 2.6 billion tonnes grading 0.73% copper and 0.17 g/t gold. This represents an increase of 27% in the amount of copper and gold previously reported by AMEC in their mineral resource report issued in July 2003. In addition, using the same 0.30% copper equivalent cut-off grade, AMEC has estimated 509 million tonnes of indicated resources in the Southwest Zone grading 0.40% copper and 0.59 g/t gold. The AMEC estimate was prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101, under the direction of Stephen Juras, P. Geo., and Dr. Harry Parker, Ch.P. Geol., independent qualified persons as defined by NI 43-101. As required by NI 43-101, AMEC is preparing an addendum to its August 2003 technical report, which is expected to be delivered in early December 2003. Upon release, a copy of the as so updated AMEC report will be Page 4 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS available on SEDAR. A summary extracted from the AMEC report containing details of the mineral resource estimates at various copper equivalent cut-off grades is currently available on Ivanhoe Mines' web site at http://www.ivanhoe-mines.com. ii) TURQUOISE HILL STUDIES- Several engineering studies were ongoing at Turquoise Hill during Q3'03, including: - Several combined open pit/underground development scenarios were developed, including underground mining concepts for the deeper sections of the Southwest deposit and the Hugo Dummett deposit. The applicability of economic sub-level caving and block caving mining methods are currently being evaluated. - Studies were initiated to determine the most suitable locations for the construction of an exploratory decline and an exploration shaft, intended to access and allow the future underground exploration drilling of the Hugo Dummett deposit's North and South zones. - Several metallurgical tests were carried out during the quarter, including composites on high grade and low grade material from the Southwest and Central deposits, batch flotation tests on material from the Hugo Dummett deposit and small column heap leach tests on material from the Central and South Oyu deposits. - Water exploration continued during the quarter and drilling of several holes to test delineated aquifers is scheduled for the fourth quarter. Also, permeability tests were conducted to allow development of detailed mine-dewatering models. - Assessment of possible routes for roads and railways continued during the quarter. Chinese authorities completed construction of an upgraded 226 kilometres ("km") highway that provides a direct highway link between the Mongolian border crossing, 80 km south of the Oyu Tolgoi project, and the Trans-China Railway system. Ivanhoe Mines has initiated discussions with Mongolian and Chinese government authorities to extend the highway the final 80 km to the Oyu Tolgoi project site. - Potential sources of power continued to be investigated, including various coal deposits located within Mongolia and the importation of power from the Inner Mongolia province in China. More details on these engineering issues will be included in an independent scoping study expected to be released in December 2003. The independent scoping study will be used in the Q1'04 Turquoise Hill project's application for the conversion of the exploration licenses to a mining license. The Company anticipates completing the conversion process in the first half of 2004. iii) KHARMAGTAI AND OVOOT HYAR PROJECTS - These two properties contain several copper/gold targets. During Q3'03, reinterpretation of drill core and geological Page 5 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS mapping was conducted at the Gold Hill project in preparation for a third phase of drilling in early 2004, In Q3'03 a total of approximately $ 0.3 million was spent on these various projects. iv) OYUT ULAAN - The Oyut Ulaan project comprises a variety of targets extending over an area of approximately 12 km by 6 km. Detailed geological mapping and surface rock-chip sampling was completed during Q3'03. Drilling on the project has confirmed the presence of a gold-copper mineralized porphyry-style quartz stockwork mineralization and a second phase of diamond drilling is planned for mid-2004. In Q3'03 a total of approximately $0.4 million was spent on this project. v) SHUTEEN - References to the Shuteen project can be found under the China: Pacific Minerals caption below. vi) ASIA GOLD - In July 2003 Ivanhoe Mines completed a transaction with Asia Gold Corp. (formally MX Capital Corp.) ("Asia Gold"), a private Canadian mineral exploration company. As part of the transaction, Ivanhoe Mines transferred to Asia Gold a series of early-stage Mongolian exploration licenses covering approximately 3.1 million hectares (31,000 sq. km) in the South Gobi region of Mongolia, and located approximately 150 kilometres west of the Turquoise Hill project. These licenses, combined with Asia Gold's existing Mongolia licenses, cover approximately 4.0 million hectares (40,000 square kilometres ("sq km")) throughout the prospective South Gobi porphyry belt. In addition, Ivanhoe transferred to Asia Gold its Korean gold and silver projects, including the Eunsan gold and silver mine, located in Chollanam-Do Province, South Korea. In consideration for these assets, Asia Gold issued approximately 6.1 million common shares to the Company. Ivanhoe Mines also invested Cdn$1.0 million in cash to purchase approximately 0.8 million Asia Gold units. Each unit consists of one common share of Asia Gold and one share purchase warrant exercisable for a period of one year. Each warrant is convertible into one additional common share of Asia Gold at a price of Cdn$1.32. Subsequent to the July transaction, Ivanhoe Mines agreed to loan to Asia Gold up to an additional Cdn$1.4 million. The loan is convertible into common shares of Asia Gold at a price of Cdn$1.50 per share. On a fully diluted basis, Ivanhoe Mines' equity interest in Asia Gold currently totals approximately 71%. As of the date hereof, Asia Gold is in the process of undertaking an initial public offering. b) MYANMAR -Underground exploration on Modi Taung's Shwesin and Htongyi Taung's quartz-gold veins continued during Q3'03. A total of 650 metres ("m") of underground adit was driven during the quarter (Q2'03 - 829m). The decreased activity is mainly due to a reduction of operations during the main monsoon months. The Htongyi Taung-style Adder vein with visible gold was uncovered in trenches 700m northwest of the nearest Htongyi Taung adit. Access and site preparation for aditing on the Adder vein started late September, and an access adit on the Sakangyi vein, 300m east of Shwesin, was also begun. Results on 500 auger soil samples collected on infill or extended lines across projected veins are pending. Page 6 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS At the Kankaung quartz-gold vein prospect 12km northwest of Modi Taung, site preparation for a 200m long adit and cross-cuts began at the end of September. About 27km to the northeast, surface exploration on the Shweminbon gold skarns in karstic terrain resumed after an interruption during the peak monsoon period. The scoping study for development of the Modi Taung veins was updated with a target milling rate of 75 tonnes per day and the mining of ore material averaging 25 to 30 g/t gold. Total exploration expenditures in Q3'03 totalled approximately $0.5 million. c) OTHER - i) CHINA: PACIFIC MINERALS - Ivanhoe Mines is exploring for gold, copper and platinum- group metals (PGMs) in Inner Mongolia through a joint venture with Pacific Minerals Inc. ("PMZ"). At the end of October 2003, PMZ and Ivanhoe reached an agreement-in-principle to restructure their mineral exploration and development joint venture. The revised agreement will reduce Ivanhoe Mines' maximum earn-in from 80% to 50% on PMZ's most significant projects in China. Ivanhoe Mines retains the right to earn up to 80% of the available interest in any new projects acquired by PMZ in China (excluding the Anhui and Liaoning provinces). The revised agreement also contains a mutual non-compete clause, whereby PMZ agrees not to compete for any new mineral properties in the Inner Mongolia Region and Ivanhoe Mines agrees not to compete for any new mineral properties in Liaoning Province. Ivanhoe Mines also agreed to transfer to PMZ 50% of its interest in the Shuteen exploration licence in southern Mongolia. The project has similar geological characteristics and is within the same copper-rich mineral belt that hosts Ivanhoe Mines's Turquoise Hill and Kharmagtai porphyry copper-gold projects. The Shuteen licence covers approximately 93 sq km (36 sq miles), approximately 100km east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in Shuteen in early 2002 by undertaking to complete a US$1.5 million exploration program before December 31, 2004. To date, Ivanhoe Mines has spent in excess of US$1.5 million on the project. ii) INNER MONGOLIA: IVANHOE MINES - Throughout Q3'03, Ivanhoe Mines continued its extensive reconnaissance programs to identify high-priority targets based upon geologic models developed at Turquoise Hill and other epithermal-style deposits. In August 2003, Ivanhoe Mines announced that it had entered into a comprehensive joint venture with a Chinese government entity to explore for and develop gold, copper, silver, molybdenum and other minerals on three advanced projects in Inner Mongolia. The three projects are in addition to the Oblaga gold-copper-molybdenum project also located in Inner Mongolia. Total exploration expenditures in Q3'03 totalled approximately $1.0 million. iii) VIETNAM: OLYMPUS PACIFIC MINERALS - Ivanhoe holds a minority interest in a gold exploration joint venture in Vietnam with Olympus Pacific Minerals, a public Canadian mineral exploration company, and Zedex Ltd., a New Zealand registered Page 7 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS investment company. The joint venture's principal project is the Phuoc Son gold project, in northwestern Quang Nam Province, Central Vietnam. iv) AUSTRALIA: SELWYN - At the end of September 2003, the Company announced the acquisition of all of the Selwyn copper-gold project's mining and exploration leases in Australia. The Selwyn leases cover an area of more than 1,450 sq km, approximately 160 km southeast of Mount Isa in north-western Queensland. Ivanhoe Mines plans to carry out an extensive exploration program on the Selwyn property. OPERATIONS COPPER OPERATION S&K MINE, MYANMAR
Three months ended September 30, 2003 --------------------------------------------------------------------------------------- Total Operation Company's 50% net share ----------------------------------------------------------------------------------- ---------------------------------- % Increase % Increase 2003 2002 (decrease) 2003 2002 (decrease) -------------------------------------------------- --------------------------------- Total tonnes moved Tonnes (000's) 4,644 4,233 10% Tonnes of ore to heap Tonnes (000's) 2,361 1,895 25% Ore Grade CuCn % 0.60% 0.49% 22% Strip ratio Waste/Ore 0.86 0.63 37% Cathode production Tonnes 7,532 7,173 5% 3,766 3,587 5% Tonnage sold Tonnes 7,274 6,869 6% 3,637 3,435 6% Average sale price received US$/pound $ 0.80 $ 0.72 12% Sales US$(000) 6,069 5,123 18% Cost of operations US$(000) 2,816 2,746 3% Operating profit US$(000) 1,988 1,484 34%
Nine months ended September 30, 2003 Total Operation Company's 50% net share -------------------------------------------------- ---------------------------------- % Increase % Increase 2003 2002 (decrease) 2003 2002 (decrease) ------------------------------------------------------------------------------------ ---------------------------------- Total tonnes moved Tonnes (000's) 14,601 10,606 38% Tonnes of ore to heap Tonnes (000's) 6,890 5,291 30% Ore Grade CuCn % 0.57% 0.56% 2% Strip ratio Waste/Ore 0.91 0.53 72% Cathode production Tonnes 20,406 20,801 (2%) 10,203 10,401 (2%) Tonnage sold Tonnes 20,240 20,432 (1%) 10,120 10,216 (1%) Average sale price received US$/pound $ 0.76 $ 0.71 7% Sales US$(000) 16,181 15,210 6% Cost of operations US$(000) 7,672 7,839 (2%) Operating profit US$(000) 555 4,408 (87%)
The construction and stacking of various heap cells continued during the quarter resulting in a 10% increase in total tonnes moved and a 25% increase in total ore stacked. The increase in copper cathode production in Q3'03 resulted in an equivalent annualized production level of approximately 30,000 tonne per annum. This level of production is the highest level of production ever reached in a quarter since the start of operations in 1998. Copper prices have been increasing steadily since November 2001, when copper prices reached a low of approximately $0.60 per pound. Copper prices averaged $0.80 per Page 8 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS pound in Q3'03 and have so far averaged closed to $0.90 per pound in the fourth quarter of 2003. In Q3'03, total copper sale revenues increased by 18% over Q3'02, as a result of a 6% increase in tonnage sold and a 12% increase in copper prices. The increase in cost of operations during Q3'03 is a direct result of the increased production level and is mainly attributed to increases in fuel, power and equipment costs related to additional tonnage moved. Ivanhoe Mines regularly evaluates the S&K Mine's estimated recoverable quantities of copper on the heaps. Ivanhoe Mines continues to review the underlying technical data and accordingly may subsequently increase or decrease any adjustments made to these quantities. The amount of any adjustment may be material. In Q3'03, the mine capitalized approximately $357,000 in costs of removing additional waste material. In July of 2003, work began on a test pit and associated mining infrastructure, to be developed at the adjacent Letpadaung deposit. The mini-pit will produce 10,000 tonnes per day of high-grade ore as a test for the intended large-scale mining and heap-leach operations at Letpadaung. In August 2003, the S&K operations started mining the Letpadaung deposit, removing approximately 230,000 tonnes of waste material. At the end of September 2003, MICCL, the owner of the S&K Mine, had approximately $1.8 million in cash. The loan repayment of approximately $8.4 million due at the end of August was repaid during the quarter. However, at the end of August 2003, the S&K Mine's debt service account contribution, required to cover the next principal and interest payments due at the end of February 2004, was deficient by approximately $8.1 million. While no assurances can be given, the management of the S&K Mine believes that it will generate sufficient cash flows to be able to repay the next loan payment when due at the end of February 2004. Although MICCL is technically in default under the loan agreement, based on discussions with the lenders, the Company does not expect the lenders to act upon the default. However, no assurances can be given to this regard. Page 9 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS IRON OPERATION SAVAGE RIVER MINE, TASMANIA
Three months ended September 30, 2003 ------------------------------------- Percent Increase 2003 2002 (decrease) -------------------------------------------------------------------------------------------------------------------- Total volumes moved BCM (000's) 2,206 2,332 (5%) Tonnes milled (000's) 1,283 1,249 3% Strip ratio BCM waste/BCM ore 4.9 15.1 (68%) Concentrate production (000's) 563 528 7% Iron ore content Fe% 33.3% 32.1% 4% Pellet production Tonnes 560,757 513,114 9% Pellet sales Tonnes 449,962 507,984 (11%) Sales US$/tonne $ 32 $ 28 16% US$(000) 14,580 14,146 3% Cost of operations US$(000) 12,294 11,179 10% Operating profit (loss) US$(000) 817 647 26% Average foreign exchange rate US$/AUD$ 0.6588 0.5475 20%
Nine months ended September 30, 2003 ------------------------------------ Percent Increase 2003 2002 (decrease) --------------------------------------------------------------------------------------- Total volumes moved BCM (000's) 7,524 7,205 4% Tonnes milled (000's) 3,956 3,623 9% Strip ratio BCM waste/BCM ore 6.7 8.0 (16%) Concentrate production (000's) 1,684 1,660 1% Iron Ore content Fe% 32.3% 34.7% (7%) Pellet production Tonnes 1,673,608 1,622,873 3% Pellet sales Tonnes 1,578,206 1,702,444 (7%) Sales US$/tonne $ 30 $ 30 2% US$(000) 48,034 50,638 (5%) Cost of operations US$(000) 47,107 38,476 22% Operating profit (loss) US$(000) (2,550) 7,763 (133%) Average foreign exchange rate US$/AUD$ 0.6309 0.5390 17%
Total pellet production in Q3'03 increased by 9% over Q3'02. A 4% increase in grade and a 3% increase in tonnes milled were the two main factors contributing to the increase in production. Due to shipment delays at the end of the quarter, total tonnage of pellets sold in Q3'03 decreased by 11% over Q3'02. The increase in pellet prices in Q3'03 reflects the retroactive annual price increase settled in August of 2003. The iron ore market continues to be strong, with much of the demand coming from China. The tight ore supply has prompted steel mills to secure long term iron ore pellet contracts. Most of the planned production for Savage River Mine over the next 3 to 4 years has now been taken up in supply contracts. Operating profit increased from $0.6 million in Q3'02 to a $0.8 million in Q3'03. The $0.2 million increase in profit is the result of a $0.4 million increase in revenue, a $0.9 million decrease in depreciation and a $1.1 million increase in cost of operations. Page 10 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In Q3'03 the Savage River operation increased the total volume of ore mined by approximately 60% over the same period in 2002 and decreased total volume of waste mined by 16%. Consequently, the capitalized pre-stripping charge was reduced from $4.2 million in Q3'02 to $0.8 million in Q3'03. The $4.5 million increase in inventory in Q3'03 is mainly attributed to the stockpiling of high grade run of mine ore during the quarter. Operating costs prior to the pre-stripping deduction in Q3'03 were up 14% over the same period in Q3'02. The 14% increase is the combined result of an 6% decrease in Australian denominated operating costs plus a 3% increase in tonnage milled and a nominal 20% increase in US denominated costs due to the strengthening of the Australian dollar. The majority of the 6% decrease in operating costs is mainly attributable to lower fuel costs resulting from the switch to gas, net of increases in fleet rental charges, explosives and electricity. Also, the softer ore from the South Deposit has proved difficult to process due to the coarse grained nature of the ore, which requires more grinding effort to achieve the correct blend. The nature of the ore has also increased mill liner wear rates. In September 2003, the Company advanced $ 3 million Australian dollar ("A$") to the Savage River Mine, the last portion of a previously agreed A$8 million working capital credit facility. In the first nine months of 2003, the Australian dollar has considerably strengthened in relation to the US dollar. The Australian dollar continued its ascent during Q4'03 and in mid-November, stood at around US$0.72 per A$1.00, a 28% increase since the beginning of 2003. In 2004 and future years, in order to offset the negative impact of a strong Australian dollar, the management of the Savage River Mine will have to improve the economic viability of the mine by continuing its efforts to lower costs and successfully negotiate increases in pellet prices. There is no guarantee that the Company will commit to fund any future cash shortfall at the Savage River Mine. OTHER PROJECTS EUNSAN GOLD AND SILVER MINE, SOUTH KOREA On July 31, 2003 Ivanhoe transferred all of its Korean assets and certain Mongolian exploration licenses to Asia Gold in exchange for common shares of Asia Gold (see "Exploration and Development -Mongolia - Asia Gold"). On July 31, 2003 Asia Gold also acquired from Ivanhoe all of the issued share capital of Korean Exploration Inc. ("KEI"). KEI owns a 90% interest in Korea Exploration & Mining Ltd. ("KEM"). KEM owns directly and indirectly through its wholly-owned subsidiary, Sun Shin Gold Mines Co. Ltd. a group of mineral rights located in the Seongsan region in South Korea and the Eunsan mine development project and surrounding exploration licences. Exploration activities in Q3'03 were focused on ore definition drilling at Eunsan and exploration drilling at Gasado Island. BAKYRCHIK GOLD MINE, KAZAKHSTAN Mining property care and maintenance costs totalled $1.0 million in Q3'03 compared to $0.8 million in Q3'02. Page 11 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS During Q3'03, the Bakyrchik Gold Mine re-commissioned the existing flotation plant and processed previously mined sulphide ores, with the intent to test the commercial production of concentrate. Also during the quarter, with the use of local process equipment, the Bakyrchik Gold Mine initiated a pilot test on a roasting technology developed by a Bakyrchik metallurgist. Most of the test results confirmed that this technology may be used to roast whole ores and concentrates. Work continues on implementation of the work program approved by the Government of Kazakhstan to resume mining operations at Bakyrchik beginning in mid 2004. The services of a mining consultant and local institutes have been engaged and a final report assessing the feasibility of mining and processing 700,000 tonnes per year of sulphide ores was received. The report is currently being reviewed. Exploration work continues in the oxide areas according to the work plan approved by the Ministry of Energy and Mineral Resources. The Company continues to explore alternative ways to finance the development of the Bakyrchik Gold Mine. GENERAL The corporate general and administrative expenses increased from $3.1 million in Q3'02 to $3.8 million in Q3'03. The majority of the increase during Q3'03 is attributed to increased expenses related to investor relations tours, additional office charges in Asia, and travel related to financing activities. All funds received in 2003 from private placement financings were transacted in Canadian dollars, and the funds were converted to US dollars only when required. CASH RESOURCES AND LIQUIDITY At September 30, 2003, consolidated working capital was $28.6 million including cash of $38.8 million compared with working capital of $22.3 million and cash of $46.9 million at December 31, 2002. Operating activities used cash of $24.8 million in Q3'03, primarily in the Exploration Segment. Investing activities used cash of $9.5 million in Q3'03 and included $1.9 million in sustaining capital expenditures on mining property, plant and equipment at the S&K Mine and Savage River Mine, $4.2 million in mineral rights acquisition on the Selwyn property and $3.0 million in other capital assets acquisitions. Other capital assets acquisitions mainly consisted of the acquisition of an aircraft intended to replace some Mongolian third party air service providers used to transport Company's personnel to the Turquoise Hill project. Financing activities in Q3'03 included cash used for the Company's $3.75 million (50% share of $7.5 million) debt repayment by the S&K Mine. From late December 2002 to September 2003 the Company raised a total of $89.4 million (Cdn$134.5 million) through the issue of 41.3 million common shares of the Company at prices ranging from Cdn$3.00 to Cdn$3.50 per share. In October 2003, the Company Page 12 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS raised $50.0 million (Cdn$66.0 million) through the issue of 5.76 million Special Warrants at a price of $8.68 (Cdn$11.45) each. Each Special Warrant entitles the holder to acquire, at no additional cost, one common share and one-tenth of a common share purchase warrant of the Company. The majority of the proceeds from the financing will be used to finance the acquisition of the BHP royalty, working capital and exploration of the Mongolian properties in Q4'03 and early 2004. Total expenditures in Q4'03, including all exploration and mineral interest acquisition costs, mine care and maintenance costs and corporate administrative costs, are estimated to range between $ 42.0 million to $ 47.0 million. OUTLOOK The Company expects to maintain in Q4'03 similar copper and iron production levels as experienced in Q3'03. Apart from variations in production volumes, Ivanhoe Mines' earnings and cash flows are directly affected by metal prices, variations in the exchange rates between the Australian and U.S. dollars, and the Canadian and U.S. dollars. Various risks, including fluctuations in commodity prices, foreign exchange rates, customer demand, and financing and political uncertainties, can adversely affect Ivanhoe Mines' future profitability and its ability to realize anticipated increases in production capacity. Unlike copper cathode, whose characteristics are set by commonly agreed standards, iron ore products need to reflect the specific requirements and limitations of customers. With only a few customers, the Savage River Mine's operations could be adversely affected, in the short and medium term, by the loss of a key customer. A limited customer base is also a risk to the S&K Mine as a substantial part of its copper production is sold, under a take or pay contract, to a single Japanese buyer. The buyer resells the cathode to customers throughout Asia. The S&K Mine's profitability could be negatively affected if economic sanctions or boycotts against trade with Myanmar were enacted in the future by major Asian countries. MICCL, the owner of the S&K Mine, is currently not in compliance with certain covenants in its project loan agreement. Since August 2002, the debt service reserve (an amount to cover the next principal and interest payments) has been deficient. Although MICCL is technically in default under the loan agreement, based on discussions with the lenders, the Company does not expect the lenders to act upon the default. However, no assurances can be given to this regard. The S&K Mine's project loan is non-recourse to the Company. The Company is examining strategic alternatives for the project, including proceeding with an expansion program, rescheduling the project debt, bringing in additional equity partners, or sale of its interest in the project, subject, in any event, to all necessary governments and regulatory consents or approvals. There can be no assurance that any such strategic alternative will be proceeded with or completed. Management believes that Ivanhoe Mines' existing cash resources are sufficient to meet all of its planned capital expenditures for the next five months. The planned capital expenditures include a $20 million provision for the acquisition of the BHP royalty. If Page 13 of 14 IVANHOE MINES LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS the Company does not make this final $20 million payment in February 2004, it will not be entitled to a refund of its November 2003 initial $17 million payment. After February 2004, Ivanhoe Mines will need to obtain additional funding for, or third party participation in, its undeveloped or partially developed projects in order to bring them into full production. Such projects include the Mongolian properties and the Bakyrchik Gold Mine. Since the S&K Mine's loan is not at fixed interest rates, future fluctuations in interest rates will have a significant impact on the profitability of the S&K Mine and also on Ivanhoe Mines' ability to successfully finance its other undeveloped or partially developed projects. Since factors beyond Ivanhoe Mines' control may adversely affect its access to funding or its ability to recruit third party participants, there can be no assurance Ivanhoe Mines' undeveloped or partially developed projects can be fully developed in whole or in part. Ivanhoe Mines's Turquoise Hill copper-gold discovery and its principal exploration properties in Mongolia, and in the neighbouring Inner Mongolia region of northern China, now constitute Ivanhoe's core holding and management's primary focus. As Ivanhoe Mines advances with the planned development of the Turquoise Hill copper-gold project in Mongolia, the Company has held talks with some of the world's largest mining companies and state-owned and private companies in Japan, South Korea and China, including the state-controlled China International Trust & Investment Corporation (CITIC), to sell a minority stake in the project. Discussions are ongoing. No assurances can be given that agreement can or will be reached. Ivanhoe Mines' future strategy will be to continue exploring opportunities to rationalize its non-core assets, which could include sales or spin-offs in the form of partial sales or joint ventures, in an effort to ensure that it receives the market recognition that it deserves. Ivanhoe Mines also intends to continue to actively pursue acquisition and exploration opportunities throughout the world, with particular focus on large, high quality precious and base metal projects in Asia. Ivanhoe Mines' recent acquisition of the Selwyn mineral leases is the initial step in the Company's strategy to expand its Australian mining operations through the acquisition of advanced projects with superior exploration potential. The company expects that this strategy will provide the platform for its consolidated Australian operations to become an independent, diversified mining entity with direct access to capital markets in Australia and Canada. Page 14 of 14 [IVANHOE MINES LOGO] November 28, 2003 British Columbia Securities Commission Alberta Securities Commission Saskatchewan Securities Commission The Manitoba Securities Commission Commission des valeurs mobilieres du Quebec Ontario Securities Commission New Brunswick Securities Commission Nova Scotia Securities Commission Prince Edward Island Securities Commission Newfoundland Securities Commission Registrar of Securities, Government of the Yukon Territory Toronto Stock Exchange Dear Sirs: RE: IVANHOE MINES LTD. INTERIM FINANCIAL STATEMENTS In compliance with National Policy 41, the following document was mailed on November 28, 2003 to shareholders on the company's supplemental mailing list: 1. Interim financial statements for the nine months ended September 30, 2003 including the Management Discussion and Analysis. Yours truly, IVANHOE MINES LTD. per: "Beverly A. Bartlett" Beverly A. Bartlett Corporate Secretary [IVANHOE MINES LOGO] December 7, 2003 (THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN) IVANHOE MINES ANNOUNCES FINANCING OF US$100 MILLION SINGAPORE -- Ivanhoe Mines' Chairman Robert Friedland and Deputy Chairman Ed Flood announced today that the company has filed a preliminary short-form prospectus in all provinces of Canada, except Quebec, for an underwritten equity offering of units to raise up to US$100 million. Each unit will consist of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant will be exercisable for a period of two years from closing. The financing is expected to close on or about December 19th, 2003. The offering will be conducted through a syndicate co-led by HSBC Securities (Canada) Inc., Griffiths McBurney & Partners and CIBC World Markets. Ivanhoe will grant the underwriters an option to buy up to an additional 15% of the offering for a period of 30 days from the closing of the offering. These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available. Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO. Information contacts Investors: Bill Trenaman: +1.604.688.5755 / Media: Bob Williamson: +1.604.688.5755 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 and Australian 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. [IVANHOE MINES LOGO] December 8, 2003 (THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN) IVANHOE MINES ENTERS INTO UNDERWRITING AGREEMENT IN CONNECTION WITH PREVIOUSLY ANNOUNCED FINANCING OF APPROXIMATELY US$100 MILLION SINGAPORE -- Ivanhoe Mines' Chairman Robert Friedland and Deputy Chairman Ed Flood announced today that in connection with the previously announced filing by the company of a preliminary short-form prospectus in all provinces of Canada, except Quebec, for an underwritten equity offering of units to raise up to approximately US$100 million, the company has entered into an agreement with a syndicate of underwriters co-led by HSBC Securities (Canada) Inc., Griffiths McBurney & Partners and CIBC World Markets Inc. to issue to the public, on a bought-deal basis, 12,500,000 units from treasury at a price of CDN$10.50 per unit -- for gross proceeds of CDN$131,250,000. Each unit will consist of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one common share for a period of two years from closing, with an exercise price of CDN$12.00 per share during the first year and CDN$12.50 per share during the second year. The financing is expected to close on or about December 19th, 2003. Ivanhoe has granted the underwriters an option to buy up to an additional 1,800,000 units at the offering price for a period of 30 days from the closing of the offering. These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available. Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO. Information contacts Investors: Bill Trenaman: +1.604.688.5755 Media: Bob Williamson: +1.604.688.5755 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 and Australian 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. FORM 53-901F Section 85 (1) - Securities Act (British Columbia) (or the equivalent thereof under Canadian Provincial Securities Legislation) 1. REPORTING ISSUER Ivanhoe Mines Ltd. ("Ivanhoe") World Trade Centre Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 2. DATE OF MATERIAL CHANGE December 5, 2003 3. PRESS RELEASE Date of Issuance: December 7 and 8, 2003 Place of Issuance: Vancouver, British Columbia 4. SUMMARY OF MATERIAL CHANGE Ivanhoe has arranged an underwritten equity financing of approximately U.S.$100 million with a syndicate of underwriters co-led by HSBC Securities (Canada) Inc., Griffiths McBurney & Partners CIBC World Markets Inc. and UBS Securities Canada Inc. (collectively, the "Underwriters"). 5. FULL DESCRIPTION OF MATERIAL CHANGE On December 5, 2003 Ivanhoe filed a preliminary short-form prospectus in all provinces of Canada, except Quebec, for an underwritten equity offering of units to raise up to US$100 million. On December 8, 2003 Ivanhoe entered into an agreement with a syndicate of underwriters co-led by HSBC Securities (Canada) Inc., Griffiths McBurney & Partners, CIBC World Markets Inc. and UBS Securities Canada Inc. to issue to the public, on a bought deal basis, 12,500,000 units from treasury at a price of Cdn.$10.50 per unit for gross proceeds of Cdn.$131,250,000. Each unit will consist of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one common share for a period of two years from closing with an exercise price of Cdn.$12.00 per share during the first year and Cdn.$12.50 per share during the second year. The financing is expected to close on or about December 19th, 2003. -2- Ivanhoe has granted the underwriters an option to buy up to an additional 1,800,000 units at the offering price for a period of 30 days from the closing of the offering. 6. RELIANCE ON SECTION 85 (2) OF THE ACT Not applicable 7. OMITTED INFORMATION Not applicable 8. SENIOR OFFICER For further information contact: Beverly Bartlett Ivanhoe Mines Ltd. World Trade Centre Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 Telephone: (604) 688-5755 9. STATEMENT OF SENIOR OFFICER The foregoing accurately discloses the material change referred to herein. DATED at Vancouver, British Columbia this 12th day of December, 2003. IVANHOE MINES LTD. Per: "Beverly Bartlett" --------------------------------- Beverly Bartlett Corporate Secretary IVANHOE MINES LTD. WORLD TRADE CENTRE SUITE 654, 999 CANADA PLACE VANCOUVER, BRITISH COLUMBIA V6C 3E1 PRESS RELEASE December 17, 2003 This press release is issued pursuant to Section 111 of the Securities Act (British Columbia), Section 141 of the Securities Act (Alberta), Section 101 of the Securities Act (Ontario) and Section 147.11 of the Securities Act (Quebec) with respect to common shares of Pacific Minerals Inc. (the "Issuer"). Ivanhoe Mines Ltd. ("Ivanhoe") has acquired 2.5 million units of Pacific Minerals Inc. at a price of $1.75 per unit, for net proceeds to Pacific Minerals of $4.375 million. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for one common share at a price of $2.20 per common share for a period of two years. The securities are subject to a four-month hold period until April 13, 2004. Ivanhoe acquired the securities pursuant to a private placement in connection with a letter agreement between Ivanhoe and Pacific Minerals dated October 23, 2003 with respect to the proposed reorganization of certain project participation agreements between the two parties. With the purchase, Ivanhoe Mines owns approximately 39% of Pacific Minerals' issued and outstanding shares, and approximately 45% on a fully-diluted basis. Ivanhoe acquired these securities for investment purposes. Depending on economic or market conditions or matters relating to the Issuer, Ivanhoe may choose to either acquire additional securities or dispose of securities of the Issuer. DATED December 17, 2003. IVANHOE MINES LTD. Per: Beverly A. Bartlett Corporate Secretary [IVANHOE MINES LOGO] December 19, 2003 (THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN) IVANHOE MINES CLOSES US$115 MILLION FINANCING SINGAPORE -- Ivanhoe Mines' Chairman Robert Friedland and Deputy Chairman Ed Flood announced today that the company has closed its bought-deal financing for gross proceeds totalling approximately US$115 million (approximately CDN$150 million). The financing was arranged by a syndicate of underwriters to issue to the public, on a bought-deal basis, 12,500,000 units from treasury at a price of CDN$10.50 per unit -- for gross proceeds of CDN$131,250,000. As well, the underwriters exercised their over-allotment option to acquire an additional 1,800,000 units at the offering price, for additional gross proceeds to Ivanhoe of CDN$18,900,000. Each unit consists of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for a period of two years, with an exercise price of CDN$12.00 per share during the first year and CDN$12.50 per share during the second year. These securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available. Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO. Information contacts Investors: Bill Trenaman: +1.604.688.5755 Media: Bob Williamson: +1.604.688.5755 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 and Australian 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. [IVANHOE MINES LOGO] December 23, 2003 IVANHOE MINES GRANTED LONG-TERM MINING LICENCES FOR TURQUOISE HILL COPPER AND GOLD PROJECT IN MONGOLIA ULAANBAATAR, MONGOLIA - Ivanhoe Mines' Chairman Robert Friedland and Executive Vice-President, Exploration, Douglas Kirwin announced today that the Mineral Resources Authority of Mongolia (MRAM) has issued four mining licences to Ivanhoe Mines for the area that contains the company's Turquoise Hill (Oyu Tolgoi) copper and gold discovery in Mongolia's South Gobi region. The mining licences, covering a total of 238 square kilometres (92 square miles), are valid for an initial 60-year period and are renewable for an additional 40 years. The mining licences replace Ivanhoe's four exploration licences. Ivanhoe has a 100% interest in the Turquoise Hill gold and copper project in Mongolia and holds or controls exploration rights covering approximately 111,000 square kilometres in central and southern Mongolia, where additional copper and gold discoveries have been made. Ivanhoe produces LME grade A copper from its Monywa joint venture in Myanmar and iron ore products from ABM Mining's Savage River mine in Australia. Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO. Information contacts in North America Investors: Bill Trenaman +1.604.688.5755 Media: Bob Williamson +1.604.688.5755 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 and Australian 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. [IVANHOE MINES LOGO] December 31, 2003 IVANHOE MINES PURCHASES $50 MILLION IN GOVERNMENT SECURITIES AS PART OF MONGOLIA'S RETIREMENT OF SOVIET-ERA DEBT ULAANBAATAR, MONGOLIA - Ivanhoe Mines' Chairman Robert Friedland announced today that the company has purchased US$50 million of treasury bills issued by the Government of Mongolia as part of the government's successful effort to entirely retire its substantial Soviet-era debt to the Russian Federation. "This is a very significant step by Mongolia in its transformation to a dynamic, modern economy," Mr. Friedland said. "Ivanhoe was asked by the government if we would be interested in helping with this historic achievement. We are proud that we can fulfill a role that also demonstrates our ongoing commitment to the people of Mongolia to be a responsible corporate citizen supporting the development of this free, democratic and increasingly prosperous country." Mr. Friedland noted that Ivanhoe has invested more than US$60 million in its Oyu Tolgoi (Turquoise Hill) copper and gold discovery and other South Gobi projects during the past two and a half years. "The government recognizes that we are in the vanguard of private foreign investment in Mongolia. We intend to continue working with the government to attract new investment to Mongolia to develop the Oyu Tolgoi Project and, ultimately, to help Mongolians realize what we believe is their country's enormous potential to become one of the world's key copper and gold mining regions." The government securities purchased by Ivanhoe consist of one-year treasury bills denominated in U.S. dollars, bearing interest at 3% per year and maturing on December 31, 2004. The government issued the treasury bills as part of its successful action to retire, on very favourable terms, Mongolia's pre-1991 convertible rouble sovereign debt obligations. Welcoming Ivanhoe's participation, Finance and Economy Minister H.E. Chultem Ulaan said in a letter to the company that the settlement of the Russian debt "will contribute enormously to the economic and social development of Mongolia." Ivanhoe recently announced that the Mongolian government had approved the conversion of its Oyu Tolgoi exploration licence to a long-term mining licence, with an initial term of 60 years and the right of a 40-year extension. The company now is in discussions with the Mongolian authorities on a long-term global stability agreement establishing the terms and conditions that will apply to the project during its operational phase. Ivanhoe has a 100% interest in the Oyu Tolgoi copper and gold project and holds or controls exploration rights covering approximately 111,000 square kilometres in central and southern Mongolia, where additional copper and gold discoveries have been made. Ivanhoe produces LME grade A copper from its Monywa joint venture in Myanmar and iron ore products from ABM Mining's Savage River mine in Australia. Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO. Information contacts in North America Investors: Bill Trenaman +1.604.688.5755 Media: Bob Williamson +1.604.688.5755 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 and Australian 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. FORM 53-901F Section 85 (1) - Securities Act (British Columbia) (or the equivalent thereof under Canadian Provincial Securities Legislation) 1. REPORTING ISSUER Ivanhoe Mines Ltd. ("Ivanhoe") World Trade Centre Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 2. DATE OF MATERIAL CHANGE December 31, 2003 3. PRESS RELEASE Date of Issuance: December 31, 2003 Place of Issuance: Vancouver, British Columbia 4. SUMMARY OF MATERIAL CHANGE Ivanhoe purchased US$50 million of treasury bills issued by the Government of Mongolia. The treasury bills, which are denominated in U.S. dollars, bear interest at 3% per year and mature on December 31 2004, were issued as part of the Government's initiative to retire, at a substantial discount, its Soviet-era foreign debt to the Russian Federation. 5. FULL DESCRIPTION OF MATERIAL CHANGE Ivanhoe purchased US$50 million of treasury bills issued by the Government of Mongolia. The treasury bills, which are denominated in U.S. dollars, bear interest at 3% per year and mature on December 31 2004, were issued as part of the Government's initiative to retire, at a substantial discount, its Soviet-era foreign debt to the Russian Federation. Based on written assurances furnished by the Government, Ivanhoe understands that Mongolia has never defaulted on its obligations in respect of any of its previously issued treasury bills and that the final settlement of its convertible rouble sovereign debt to the Russian Federation on favourable terms will contribute enormously to the economic and social development of Mongolia. However, Mongolia continues to maintain a relatively high level of debt and, as such, its debt securities carry a higher level of risk than similar securities issued by countries with lower debt and more developed economies. Ivanhoe funded the purchase of the Mongolian treasury bills from the proceeds of a US$100 million underwritten offering of common shares and share purchase warrants -2- completed on December 19 2003. Ivanhoe plans to use the balance of the proceeds from the offering to fund exploration and development expenditures on the Oyu Tolgoi Project and its other projects in Mongolia. Ivanhoe anticipates incurring these expenditures through the third quarter of 2004, subject to finalization of project expenditure budgets for the 2004 fiscal year and to the results and recommendations of a scoping study on the Oyu Tolgoi Project scheduled to be completed in early 2004. Ivanhoe recently completed the process of converting its Oyu Tolgoi Project exploration licences (MELs 66X, 66X1, 66X2 and 66X3) into 60-year mining licences, renewable for an additional 40 years. Ivanhoe is now in discussions with a Working Group of Mongolian government representatives aimed at reaching a long-term global stability agreement establishing the critical terms and conditions that will apply to Ivanhoe's projects during their respective operational phases. The agreement is expected to address tax and fiscal issues, as well as other matters including cross-border and import/export issues and confirmation of appropriate mining, land and water licence tenures and infrastructure necessary to carry out all exploration, mining, milling, processing and related activities over the life of the projects. No assurances can be given as to when, or if, these discussions will culminate in a global stability agreement or that any such global stability agreement will contain terms and conditions that are, in all material respects, favourable to Ivanhoe. 6. RELIANCE ON SECTION 85 (2) OF THE ACT Not applicable 7. OMITTED INFORMATION Not applicable 8. SENIOR OFFICER For further information please contact: Beverly Bartlett Ivanhoe Mines Ltd. Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 Telephone: (604) 688-5755 -3- 9. STATEMENT OF SENIOR OFFICER The foregoing accurately discloses the material change referred to herein. DATED at Vancouver, British Columbia this 8th day of January, 2004. IVANHOE MINES LTD. Per: "Beverly A. Bartlett" -------------------------------------------- Beverly A. Bartlett Corporate Secretary [IVANHOE MINES LOGO] FOR IMMEDIATE RELEASE January 20, 2004 COMPREHENSIVE SCOPING STUDY OF DEVELOPMENT OPTIONS FOR IVANHOE MINES' COPPER GOLD PROJECT IN MONGOLIA DUE IN EARLY FEBRUARY ULAANBAATAR, MONGOLIA - Robert Friedland, Chairman of Ivanhoe Mines, said today that a comprehensive study of the planned development of the company's Oyu Tolgoi (Turquoise Hill) copper and gold project in Mongolia is scheduled to be released in early February. The independent Preliminary Assessment Report, or Scoping Study, is being prepared by an integrated engineering team from consulting firms AMEC E&C Services, of Canada, and Ausenco International, the Mining Group of GRD Minproc and SRK Consultants, all of Australia. The study period was extended last month to allow the team to complete its evaluation of the various mining options available for the development of the Oyu Tolgoi Project. GRD Minproc has suggested that the Hugo South copper and gold deposit may be optimized by open-pit mining methods and the possibility now has been extensively reviewed with senior Ivanhoe executives. An open-pit option, as an alternative to underground bulk mining, could significantly shorten the time required to achieve optimum production at Hugo South, enhance the project's overall economics and ultimately facilitate the extraction of a larger percentage of the copper and gold resource at Hugo South. Ivanhoe's new president, John Macken, who assumed the senior executive post this month, is assisting with the completion of the scoping study. Mr. Macken joined Ivanhoe after a 19-year career with Freeport McMoran Copper and Gold, most recently as Freeport's Senior Vice-President of Strategic Planning and Development, based in New Orleans. He previously spent a total of 13 years with Freeport's operating unit, P.T. Freeport Indonesia, culminating in the position of Executive Vice-President and General Manager at Freeport's Grasberg mining complex in Papua, the world's largest single copper and gold mine. Between 1996 and 1998, Mr. Macken headed an expansion valued at almost $1 billion at the Grasberg open pit and underground mining complex in a joint venture between Freeport and Rio Tinto, of London, which is Freeport's largest shareholder. INCOME TAX RATE LOWERED IN MONGOLIA Mr. Friedland and Mr. Macken welcomed the significant positive implications for the international mining industry's growing involvement in Mongolia stemming from the Mongolian government's decision to reduce the general corporate income tax rate and maximum personal tax rate to 30% from the previous level of 40%. The new rates became effective on January 1 this year. Major capital investments, such as the Oyu Tolgoi project, are eligible for additional tax relief under Mongolian law. Ivanhoe will pursue discussions regarding a long-term stability agreement with the Mongolian government next month after submitting a study of the development of Oyu Tolgoi that will be based on the forthcoming scoping study. "While mineral discoveries are the key to expanding Mongolia's appeal to exploration companies, the country's mining, tax and commercial laws have a significant role in determining whether investors can expect such discoveries to be developed and mined at a profit," Mr. Friedland said. "The reduction in the income tax rate to 30% is a progressive step." Ivanhoe Mines is sole owner of the Oyu Tolgoi copper/gold project in Mongolia's South Gobi region. Drilling to November, 2003, was independently confirmed to have delineated inferred resources for the project, at a cut-off grade of 0.60% copper equivalent, of 1.28 billion tonnes grading 1.13% copper and 0.24 g/t gold, containing approximately 14.6 million tonnes (30.1 billion pounds) of copper and 9.74 million ounces of gold. The project also contains an additional indicated resource of 267 million tonnes grading 0.53% copper and 0.86 g/t gold, containing approximately 1.42 million tonnes (3.1 billion pounds) of copper and 7.35 million ounces of gold, at the 0.60% copper equivalent cut-off grade. Details of the independent resource estimate prepared by AMEC of Canada are in the company's November 11, 2003, news release at www.ivanhoemines.com. Ivanhoe also holds or controls exploration rights covering approximately 111,000 square kilometres in central and southern Mongolia, where additional copper and gold discoveries have been made. Ivanhoe produces LME Grade A copper from its Monywa joint venture in Myanmar and iron ore products from ABM Mining's Savage River mine in Australia. Ivanhoe shares are listed on the Toronto and Australian stock exchanges under the symbol IVN. The shares also are listed on NASDAQ under the symbol HUGO Information contacts in North America Investors: Bill Trenaman +1.604.688.5755 Media: Bob Williamson +1.604.688.5755 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 and Australian 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. [IVANHOE MINES LOGO] JANUARY 26, 2004 IVANHOE MINES WELCOMES NEW INDEPENDENT RESOURCE ESTIMATE THAT SIGNIFICANTLY INCREASES GOLD RESOURCES AT PACIFIC MINERALS' 217 PROJECT IN CHINA BEIJING, CHINA -- Robert Friedland, Chairman of Ivanhoe Mines, welcomed today's news from Pacific Minerals that an independent resource estimate has significantly expanded the inferred in-pit gold resources at the 217 Project, Inner Mongolia, China. The gold project is being developed under a 50/50 joint-venture agreement with Ivanhoe Mines, details of which can be found on Pacific Minerals' website at www.pacific-minerals.com. Ivanhoe Mines also owns 35.5% of Pacific Minerals' issued and outstanding shares (43.9% on a fully-diluted basis), effectively giving Ivanhoe a combined direct and indirect interest of 67.75% in the 217 Project. The new resource estimate, prepared by Westervelt Engineering Ltd. of Vancouver, Canada, indicates that the Southwest Zone, which lies 1,800 metres south of the project's main deposit, the Northwest Zone, contains inferred resources of 14.79 million tonnes grading 1,25 grams per tonne (g/t) gold. These resources are estimated using a 2-to-1 strip ratio. "The new estimation has significantly enhanced the size, grade and scope of the 217 Project," said Daniel Kunz, Pacific Minerals' President. "Of particular economic significance, the gold grade of the inferred resources in the Southwest Zone is 28% higher than the grade of the in-pit resources delineated to date in the Northwest Zone. Since this deposit outcrops along its strike length, it lends itself to efficient open-pit mining." The new resource estimate is being incorporated into an independent scoping study that is scheduled to be released later this year. The scoping study will provide Pacific Minerals with various development scenarios to take advantage of low Chinese development and mining costs. The study will determine the economic viability of the 217 Project and provide a development strategy to achieve early production from planned near-surface open pits in the Northeast and Southwest zones. The newly defined mineralization in the Southwest Zone is expected to greatly enhance the economic viability of the project. IN-PIT RESOURCE - SOUTHWEST ZONE, JANUARY 21, 2004
Tonnes Gold grade (g/t) Ounces of gold ------------------------------------------------------------------------------------------ Inferred 14,788,645 1.25 594,925 ------------------------------------------------------------------------------------------
The resources at the Southwest Zone are in addition to the in-pit resources in the Northeast Zone, details of which are available on the company website at www.pacific-minerals.com IN-PIT RESOURCE - NORTHEAST ZONE, NOVEMBER 17, 2003
Tonnes Gold grade (g/t) Ounces of gold ---------------------------------------------------------------------------------------------- Measured & Indicated 29,170,356 0.95 889,899 ----------------------------------------------------------------------------------------------
Inferred 6,774,410 0.98 213,407
With the addition of the inferred resources at the Southwest Zone, the total in-pit resources for the 217 Project are: TOTAL IN-PIT RESOURCES, JANUARY 21, 2004
Tonnes Gold grade (g/t) Ounces of gold ---------------------------------------------------------------------------------------------- Measured & Indicated 29,170,356 0.95 889,899 ---------------------------------------------------------------------------------------------- Inferred 21,563,055 1.17 808,332 ----------------------------------------------------------------------------------------------
The independent estimate was prepared according to standards in National Instrument 43-101 by Westervelt Engineering Ltd., under the direction of R. Westervelt, P.Eng., an independent qualified person. Measured and indicated resources are that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. Inferred resources do not have the same degree of verification. Mineralization at the 217 property extends over a strike length of 4.5 kilometres. The property can be divided along strike into three separate zones of mineralization. The Southwest Zone is where the majority of the small-scale mining activities have occurred on the property and the company believes that this zone offers important potential for expansion of the open-pit resources. The 217 Project consists of a licenced area of 36 square kilometres in the western part of Inner Mongolia, northern China. The project is approximately 650 kilometres northwest of Beijing and 120 kilometres south of Ivanhoe Mines' copper and gold discovery at Turquoise Hill (Oyu Tolgoi), in southern Mongolia. Pacific Minerals, through its subsidiary, holds the right to earn a 96.5% interest in the property. The project is being developed under a 50/50 joint-venture agreement with Ivanhoe Mines. Pacific Minerals is a Canadian company focused on the exploration and development of precious and base metals (gold, copper and platinum group metals) in the People's Republic of China and Mongolia. ABOUT IVANHOE MINES Ivanhoe Mines, with operations concentrated in the Asia Pacific region, is a producer of copper, gold and iron ore products. Ivanhoe Mines' core assets are its 100%-owned Turquoise Hill Project in southern Mongolia and exploration rights which it holds or controls covering approximately 111,000 square kilometres in central and southern Mongolia and the Chinese province of Inner Mongolia. Ivanhoe shares are listed on the NASDAQ market under the symbol HUGO and on the Toronto and Australian stock exchanges under the symbol IVN. Information contacts: Investors: Bill Trenaman:+1.604.688.5755 / Media: Bob Williamson: FORWARD-LOOKING STATEMENTS This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and resources, exploration results and future plans and objectives of Ivanhoe Mines Ltd., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Ivanhoe's expectations are disclosed under the heading "Risk Factors" and elsewhere in Ivanhoe documents filed from time to time with the Toronto Stock Exchange, the Australian Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. www.ivanhoe-mines.com IVANHOE MINES LTD. Quarterly Technical Report FOR THE THREE MONTHS ENDING DEC 31, 2003
INDEX PAGE ------------------------------ ---- Copper Production Summary 2 --- Iron Production Summary 2 --- Production Monywa/Letpadaung, 2 Myanmar Savage River, Tasmania 3 Bakyrchik, Kazakhstan 3 --- Development Modi Taung, Myanmar 4 Mongolia 5 --- Exploration Mongolia 7 Oyu Tolgoi/Turquoise Hill 7 Hugo North 8 Hugo South 9 Central Oyu 10 South West Oyu 10 Kharmagtai & Ovoot Hyar 10 Gold Hill 10 Narin Hudag & Mandak 11 Bayan Uul & Unegeti 11 Korea 15 China 15 Vietnam 16 Australia 16
For further information, please contact: Bill Trenaman Investor Relations Ivanhoe Mines Ltd. 654 - 999 Canada Place Vancouver, British Columbia Canada V6C 3E1 Telephone: 604-688-5755 Toll free: 888-273-9999 Facsimile: 604-688-7168 E-mail: bill@ivancorp.com This information is available on our website at www.ivanhoemines.com Report Compiled by Marlene Mathison, employee of Ivanhoe Mines Ltd. KEY POINTS: - In November 2003, AMEC E&C Services Limited issued a new resource estimate for the Hugo Dummett Deposit at Ivanhoe's Oyu Tolgoi Project. AMEC now estimates that the Hugo Dummett Deposit contains inferred resources totalling 1.80 billion tonnes grading 0.86% copper and 0.12 g/t gold, at a 0.30% copper equivalent cut-off, containing approximately 15.50 million tonnes (34.1 billion pounds) of copper and 7.22 million ounces of gold. This is an increase of 23% in the amount of copper and a 58% increase in the amount of gold since the previous estimate in Aug. 2003. - Total inferred resources for Oyu Tolgoi now stand at 2.61 billion tonnes grading 0.73% copper and 0.17g/t gold at a 0.30% copper equivalent cut-off containing approximately 19.2 million tonnes of copper (42.15 billion pounds) and 14.42 million ounces of gold. In addition to the inferred resources, the project also contains 509 million tonnes of indicated resources in the Southwest Zone grading 0.40% copper and 0.59 g/t gold, containing approximately 2.1 million tonnes (4.5 billion pounds) of copper and 9.7 million ounces of gold, at the same cut-off grade. - In November 2003, Ivanhoe reached an agreement with BHP Minerals International Exploration, a subsidiary of BHP Billiton, to acquire the 2% net smelter return royalty interest that BHP Billiton had retained in Oyu Tolgoi. Terms of the agreement require Ivanhoe to pay BHP Billiton a total of US$37 million in two payments, with the final payment, of US$20 million, to be made by February 5, 2004. - In December, 2003, the Mineral Resources Authority of Mongolia (MRAM) issued four mining licences to Ivanhoe Mines for the area that contains the company's Oyu Tolgoi project. The mining licences, covering a total of 238 square kilometres are valid for an initial 60-year period and are renewable for an additional 40 years. PRODUCTION - Copper cathode production from the Monywa Mine was 7,463 tonnes for the quarter. Ivanhoe's 50% net share of sales revenue was US$6.98 million. - Iron pellet production from ABM's Savage River Mine was 582,330 tonnes for the quarter. Pellet sales were 601,794 tonnes. Sales revenue was A$27.1 million... DEVELOPMENT - The AMEC Ausenco Joint Venture Project, expected to be released in February, 2004. EXPLORATION - Exploration during the quarter was focused on resource delineation drilling at Oyu Tolgoi. 2 COPPER PRODUCTION SUMMARY
MINEGATE UNIT TONNES OF ORE CATHODE PRICE OF COST OF COPPER DEC. 2003 TO HEAP HEAD GRADE PRODUCTION COPPER (US$ PRODUCED (US$ QUARTER (000'S) (Cu CN%) (TONNES) PER LB.) PER LB.) ------------ ---------------- ---------- ---------- ----------- -------------- MONYWA, S&K, 1,866 0.74% 7,463 $0.86 $0.38 MYANMAR
IRON PRODUCTION SUMMARY:
PELLET SAVAGE RIVER, TONNES MILLED CONCENTRATE GRADE PRODUCTION PELLET SALES AUSTRALIA WET PRODUCTION (DTR) (TONNES) (TONNES) ------------- ------------- ----------- ----- ---------- ------------ Q4 - 2003 1,351,475 601,776 46.9 582,330 601,794 Q4 - 2002 1,378,648 549,760 42.0 516,313 567,329
SAVAGE RIVER, AUSTRALIA TOTAL IRON ORE TOTAL OPERATING CAPITALIZED PRODUCT SALES REVENUE COSTS PRE-STRIPPING COSTS SALES RESULTS TONNES SOLD (A$ MILLION) (A$ MILLION) (A$ MILLION) -------------- ----------- ------------- --------------- ------------------- Q4 - 2003 623,657 27.1 27.9 3.9 Q4 - 2002 594,946 29.5 27.4 6.4
PRODUCTION OVERVIEW MONYWA COPPER JOINT VENTURE, MYANMAR The S&K Mine produced 7,371 tonnes of LME grade A cathode copper during the quarter. This is an average of 2,457 tonnes per month or 81 tonnes per day. Power disruptions reduced cathode production in November but high heap leach solution levels are ensuring production is maintained at consistently high levels. Higher ore grades are reducing ore tonnes necessary to maintain optimum heap inventory levels and mining output was reduced in October and November to reduce costs. Contractors have now virtually been removed from mining operations. High copper inventory in solution have reduced operating costs with reagent costs reduced and higher power efficiency in electrowinning. Minegate operating costs were 38c. Construction of the Pad 3 Heap Leach cells is well advanced and cells 10, 11, and 12 have now been completed. Three new cells are planned prior to the onset of the wet season. Pad 3 has significantly improved overall recovery by allowing a longer leach cycle period. Final plans were completed and approvals obtained for construction of a fines treatment plant. The plant will increase recovery from less competent ore. 3
QTR END DECEMBER 2003 --------------------- S&K COPPER MINE ACTUAL ----------------------------- ------ Tonnes ore to heap (000's) 1,866 Total tonnes mined (000's) 3,827 Grade (Cu CN%) 0.74% Strip Ratio 1.05 Tonnes Sold 7,371 Cathode Production (tonnes) 7,463 Revenue ($000's) 13,968 Price of Copper (US$ per Lb.) 86
SAVAGE RIVER, TASMANIA Over the last quarter of the year the US dollar continued to decline, increasing the Australian/US Dollar exchange rate a further 10%. Demand for iron ore products continued to be strong throughout the quarter, driven mainly by China. The strong demand for iron ore products augurs well for a healthy increase in this year's annual price negotiation, which commenced in November. Concentrate and pellet production were higher than the same quarter last year mainly due to higher ore grades. Iron ore sales were also high reflecting the increased production and strong market conditions. Overall operations were satisfactory at both Savage River and Port Latta. The softer ore experienced last quarter from South Deposit improved, becoming harder with depth. The grade also improved with the depletion of the low grade stockpiles. Work continued on the pre-feasibility study of an underground block-cave operation in the North Pit. BAKYRCHIK GOLD MINE, KAZAKHSTAN During the fourth quarter of 2003, Bakyrchik did not produce any dore gold. However, during this period, the existing flotation plant continued to process sulphide ores previously mined. During this period, 1,016.6 tons of sulphide concentrates averaging 30 grams of gold per ton were produced. The purpose of operating the plant is to produce batches of concentrate for commercial testing and also for sale. During this period, operation of a pilot-sized rotary roaster continued. The test results are confirming that this technology can be applied to roast whole ores, concentrates and technogenics (man-made materials). The results obtained to date were confirmed by Chinese institutes. At the same time, we also are contacting foreign suppliers of process equipment. Effort continues to implement the work program approved by the Government of Kazakhstan, to resume mining operations at Bakyrchik beginning in mid-2004. For this purpose, the services of Aker Kvaerner and local institutes have been engaged. Contracts to certify the mining plan and methods, design of the process facilities and infrastructure have been signed. The local research institutes, VNIItsvetmet and Kazgiprotsvetmet, and the company geologists are currently working to develop project plans to implement the 200,000 tons per year project with subsequent mining rates increasing to 1,000,000 tons per year. 4 Exploration work continues in the oxide areas according to the work plan approved by the Ministry of Energy and Mineral Resources. The major activity completed during the period was the study done by Kvaerner Metals to assess the feasibility of mining and processing 700,000 tons per year of sulphide ores. The final report is currently being reviewed. Aker Kvaerner is also completing a study to assess the feasibility of mining up to 1.4 million tons of ore per year. Fourth-quarter expenditures with regards to the Bakyrchik project were approximately US$0.85 million. DEVELOPMENT MODI TAUNG GOLD PROJECT BLOCK 10, MYANMAR Adit advances in the quarter totalled 674 m, with an average of 18 crew working in two shifts on seven levels. The miners' rotation was changed to nine weeks on, three weeks off to allow them a higher income without changing scales. Advances on the SE-directed Htongyi Taung Levels 950, 975 and 1025 continued to give good vein continuity. Two and locally three parallel veins result in mineable centimetre grams over an average of at least 100% of overall strike advance. The 950 level adit face is now 400 m from the portal, and 100 m north of the high-grade Grass vein encountered in a trench and surface diamond drill core. Assays near the face include 272 g/t on a 73 cm vein width. An access road was completed close to the level 1025 portal. Exposures in the road include a 34 cm vein at 188 g/t gold, 50 m east of the projected main vein from Level 950. On the Adder vein, 900 m northwest of the Htongyi Taung 950 portal, north and south drives began and show a 70 cm vein with visible gold, assays from 1 to 137 g/t. On the Shwesin vein system best values are on the 1200 m level, although with not more than 50% of the strike advance in mineable grade. Strong veins persist in the deeper (1150, 1025 m) levels but entirely in sandstone and with low grade. Gold assays on 600 soil line augur samples show numerous high values at, and beyond, the south end of the 4.5 km2 detailed topographic map (adits area) at Modi Taung, and also beyond the northwest end. A 2.9km(2) extension of the detailed topographic map to cover these areas began end-December. Surface exploration continued at the Kankaung, Nankwe, Payagon and Dathwe quartz-gold vein prospects 10 to 15 km Northwest of Modi Taung, and an exploration adit at Kankaung advanced to 40 m from the portal. The surface exploration program on the gold skarns at Shweminbon, in the northeast of Block 10, interrupted in November-December, will be completed early in 2004. Eight 50 kg samples of vein material, mostly from the Htongyi Taung veins, were collected for additional metallurgical test work in Australia. A one-year extension to the exploration agreement, to August 29, 2004, was approved by the government, and covers 99 km2; including 40 km2 in the proposed Modi Taung mine lease area. A production sharing agreement for development and mining of Modi Taung was submitted to the government in late October. Following discussions, this was replaced by a draft joint venture proposal submitted December 30, 2003. The 5 proposal envisages resue mining of 75 tonnes per day and treatment by gravity and flotation. Submission of the draft was preceded by a two-day visit of the Deputy Minister of Mines to Modi Taung. Fourth-quarter expenditures at Modi Taung were approximately US$0.55 million. MONGOLIA METALLURGICAL TESTWORK A pre-feasibility-level test program with PQ half-core samples from the Southwest and Central deposits has been completed. Test work on 1/4 core material from Hugo South and Hugo North progressed at SGS Lakefield throughout the quarter. Larger-diameter PQ core samples are required from all of the Hugo deposits to establish grinding characteristics. These will be included in the pre-feasibility program at a later date. The HQ & NQ quarter samples from the Hugo Dummett Deposit were composited according to lithology and mineralogy. Limited work on small quantities of diamond-drill core continued to characterize metallurgical performance of Oyu Tolgoi ores for a typical grinding and flotation processing route. This work included preliminary characterization of likely concentrate copper grade and characterization of impurity elements (including arsenic and fluorine) of interest to smelters. The metallurgical results from the testing of 3 main composites from the Southwest Oyu copper-gold deposit were reported during the period. The composites were derived from 7 drill holes and represent lower grade Au-Cu open pitable ore, higher grade Au-Cu open pitable ore, and higher-grade Au-Cu block-cave ore. The following table summarizes the grindability data from these composites. The Bond Work Indices are in the 80 percentile for hardness in the A.R. MacPherson database. The Work Index values for these composites are higher than found in the previous Southwest Oyu samples. The composites are in the 30 percentile for abrasivity, similar to what was found in the earlier samples. The "JK" factors, widely used for the design of grinding circuits for large concentrators, also were reported. SOUTHWEST OYU GRINDABILITY DATA
SAMPLE #1 SAMPLE #2 SAMPLE #3 --------- --------- --------- Abrasion Index 0.112 0.190 0.162 Autogenous Work Index (kWhr/t) 17.9 16.8 18.6 Rod Mill Work Index (kWhr/t) 18.6 17.2 19.7 Ball Mill Work Index (kWhr/t) 19.1 18.2 19.4 % Standard Deviation 12 10 8 JK "A" 49.9 49.9 52.1 JK "b" 0.98 0.88 0.69 JK "A x b" 48.9 43.9 36.0 JK "Ta" 0.42 0.79 0.46
* value from variability samples The flotation testing focused on the determination of the effect of grind and regrind on metallurgical performance, and generation of metallurgical predictions based on locked-cycle testing. The locked cycle test results are given in the following table. 6 LOCKED-CYCLE FLOTATION TEST RESULTS
WEIGHT ASSAYS % RECOVERY ------ ---------------- --------------- SAMPLE % % Cu G/T Au Cu Au --------------------------- ------ ---- ------ ---- ---- S-1 Lower Grade Open Pit LCT-65, 100 (micro)m grind HEAD 100.0 0.45 0.40 Cu CONCENTRATE 1.34 27.9 19.5 82.6 64.4 S-1 Lower Grade Open Pit LCT-104, 150 (micro)m grind HEAD 100.0 0.46 0.45 Cu CONCENTRATE 1.39 27.5 20.9 83.0 64.1 S-2 Higher Grade Open Pit LCT-120, 100 (micro)m grind HEAD 100.0 0.93 1.70 Cu CONCENTRATE 3.1 28.0 43.2 92.5 78.1 S-2 Higher Grade Open Pit LCT-97, 150 (micro)m grind HEAD 100.0 0.93 1.68 Cu CONCENTRATE 3.0 27.5 42.0 87.9 74.3 S-3 Higher Grade Block Cave LCT-121, 100 (micro)m grind HEAD 100.0 0.66 1.47 Cu CONCENTRATE 2.1 28.9 52.1 90.0 73.3 S-3 Higher Grade Block Cave LCT-103, 150 (micro)m grind HEAD 100.0 0.68 1.48 Cu CONCENTRATE 2.1 28.1 49.7 87.5 71.0
These results are similar to the results achieved previously, 27%Cu concentrate at 90% Cu recovery, 76.3% Au recovery from a head of 0.82 %Cu and 1.73 g/t Au, at a 100(micro)m grind All three main composites were found to be sensitive to grind. Copper recovery is estimated to drop by 2.5% for a 50(micro)m change in the primary grind. Gold recovery was not found to be as sensitive, dropping 1.5% for a 50um change in the primary grind. This recovery drop carries through to final concentrate for both copper and gold. The bulk of the testwork conducted in this program was at a primary grind of 150(micro)m. The optimum regrind for all three composites was found to be 20(micro)m. This level of regrind was found to improve concentrate quality by 5%Cu compared to regrinds of 30(micro)m. Grinding finer than 20(micro)m did not lead to any metallurgical benefits. The optimum regrind location was found to be, on the whole, rougher concentrate. This can be explained by the low degree of copper mineral liberation in the rougher concentrate (< 50% at 150(micro)m grind). The three main composites were sub-composited into 56 availability samples, which were to represent approximately 20m mine-bench intervals for the drill holes received. Flotation testing on these samples found only one sample which did not behave in the expected fashion. This sample was found near the surface and contained minimal sulphide copper. The average results from these variability samples closely matched the metallurgy achieved from the main composites. Results were obtained from preliminary batch flotation tests on the Hugo Dummett quarter samples. The results, summarized in the table below, were performed on composite samples from diamond drill holes 355 and 367A. These samples represented the host lithologies and copper mineralization within the deposit. 7 SGS LAKEFIELD FLOTATION TEST RESULTS
INTERVALS TEST GRADE RECOVERY -------------------------- ----------- ---------------- ----------------- SAMPLE COPPER GOLD COPPER GOLD NUMBER DRILL HOLE FROM TO METRES PRODUCT (%) (G/T) (%) (%) ------ ---------- ---- ---- ------ ----------- ------ ----- ------ ---- FNE1 OTD355 868 898 30 FEED 1.82 0.18 CONCENTRATE 30.6 2.58 87.0 73.7 FNE2 OTD355 898 1002 104 FEED 2.43 0.10 CONCENTRATE 33.6 1.02 92.3 71.9 FNE3 OTD367A 830 1084 254 FEED 1.53 0.08 CONCENTRATE 27.2 1.22 84.5 69.7 FNE4 OTD367A 1084 1154 70 FEED 5.72 1.85 CONCENTRATE 53.4 17.2 96.9 96.6
EXPLORATION MONGOLIA Ivanhoe continued to increase its landholdings throughout Mongolia during the fourth quarter of 2003. During this period Ivanhoe converted four exploration licences to mining licences totalling 23,867 hectares (238.67 km(2)). Ivanhoe now holds or controls 127 exploration licences covering 11,202,096 hectares (112,020.96 km(2)) of land. Of these, 81 licences totalling 7,159,905 hectares (71,599.05 km(2)) are held by Ivanhoe and 40 licences totalling 3,954,402 hectares (39,544.02 km2) are held by 51.1% owned Asia Gold Corp. Four licences are held in a joint venture with QGX Gold Ltd. Ivanhoe has an additional 3,124,000 hectares (31,240.00 km(2)) under application. In November 2003, Ivanhoe reached an agreement with BHP Minerals International Exploration, a subsidiary of BHP Billiton, to acquire the 2% net smelter return royalty interest that BHP Billiton had retained in Oyu Tolgoi. Terms of the agreement require Ivanhoe to pay BHP Billiton a total of US$37 million in two payments, with the final payment, of US$20 million, to be made by February 5, 2004. Exploration outside of the Oyu Tolgoi Project area during the forth quarter of 2003 was focused on the mapping and sampling of several high priority targets generated by earlier reconnaissance work. Geological mapping and relogging of existing diamond drill core continued at Kharmagtai in preparation for a third phase of diamond drilling. Fourth-quarter expenditures outside the Oyu Tolgoi project totalled approximately US$1.42 million. Of this, approximately US$210,000 was spent at Kharmagtai and Ovoot Hyar. Approximately $350,000 was spend on grass roots reconnaissance of Ivanhoe Mines licences during the 4th quarter of 2003, of which over $200,000 was directly spent on field mapping and assaying of rock chip grab samples. TURQUOISE HILL/OYU TOLGOI At the end of the fourth quarter, 18 drill rigs were on the property. There were six deep-hole rigs delineating and expanding resources in the Hugo Dummett North zone, two rigs on geotechnical drilling in Hugo South, one rig drilling a pilot geotechnical hole for the Hugo Shaft and nine rigs infill drilling on Central Oyu. At Hugo Dummett North, exploration drilling continued to extend the deposit north and steeply down dip to the east. To date, the strike extent of Hugo North has increased from 900m to 8 1200m, which accounts for a significant portion of the increase in tonnes and gold content over the resource estimate prepared by AMEC E&C Services Limited in August of 2003. The total north-south strike length of the Hugo Dummett Deposit is now more than 2.6 km. The estimated width of the zone currently ranges between 200 and 800 metres. The deposit remains open for expansion along strike, its margins and to depth. Expenditures for the fourth quarter in Oyu Tolgoi were approximately US$17.8 million. HUGO NORTH In Hugo North, diamond core drilling is currently focused on drilling east-west sections using navi-drill technology for cutting multiple daughter holes from the initial hole. With the strike of the zone north-south, the east-west lines are better oriented for delineating Hugo North. These sections have been laid out at 4766700N, 4766900N, 4767200N, 4767350N and 4767500N and the series of drill holes drilled or in progress on these lines include OTD577, OTD576, A, OTD449, A,B,C & D, OTD465, A,B & C and OTD514A & B, respectively. Significant assay results from intersections in the 4th quarter used in the November resource estimate include: OTD449B with 68m grading 1.29 g/t gold, 2.85% copper followed by 200m of 0.24g/t gold, 1.08% copper and 86m of 1.31 g/t gold and 1.56% copper. These intervals are separated by biotite granodioirite dykes up to 22m in intersection thickness. Drilled approximately midway between holes OTD449 (up dip) and OTD449A (down dip) the hole confirmed continuity of the gold rich mineralization between these two holes and found a significant increase in the gold:copper ratio in quartz monzodiorite near the bottom of the hole. The hole also terminated in the west BAT fault, a major Northeasterly structure that bounds the western margin of Hugo North. OTD582, collared 550m west of OTD449 on section, drilled -85degrees west to test the western flank of the Hugo North zone and encountered 218m grading 0.14 g/t gold, 1.49% copper starting at 942m down hole, followed by 84m grading 0.23 g/t gold and 1.31% copper and 158m grading 0.89 g/t gold and 1.32% copper. These intersections are separated by 26m intervals of biotite granodiorite dyke. As in OTD449B the increase in gold grades with depth is very much evident. In both holes quartz monzodiorite hosts the lower portions of the copper, gold mineralization. Hole OTD449D has recently been completed 100m down dip of OTD449A and has intersected approximately 200m of strong bornite mineralization similar to the high grade intercepts up dip. Assays are pending. OTD449E is now in progress to test a further 100m down dip of D and is currently in the hanging wall sediments. OTD465A (189.4m grading 2.98% copper and 1.15 g/t gold, including 124m grading 3.36% copper and 1.60 g/t gold), reported in the previous quarter, has had two daughter holes drilled down dip. OTD465B, 225m down dip of A intersected 412m grading 0.32g/t gold and 2.33% copper including 196m grading 0.42 g/t gold and 3.38% copper. An intermediate hole, OTD465C was drilled between the two holes and has intersected similar grade sulphide mineralization over a 314m interval that will confirm continuity of the zone. Assays are pending. A total of four holes including OTD505, now delineate a steeply east dipping body of porphyry mineralization of at 9 least 650m in dip extent and 250m in horizontal thickness expanding down dip. No holes have been drilled below OTD465B. OTD514 collared 150m north of OTD465 intersected 476m grading 0.67 g/t gold, 2.16% copper starting at 1080m down hole. The hole included 386m grading 0.82 g/t gold and 2.35% copper and is significant in the fact that the bottom 300m of the interval is highly mineralized, quartz stock worked, quartz monzodiorite stained red in colour from hematite. More importantly the gold:copper ratio increased steadily to the bottom of the intersection where it is >1:1. Three hundred metres up dip, a daughter hole, OTD514A intersected 276m of strong bornite mineralization starting at 1000m down hole and assays are pending. Follow up daughter holes will be drilled mid-way between the two intersections followed by a hole down dip of the original OTD514. Based on the two holes the total inferred dip extent of the steeply dipping mineralization is 650m and the horizontal thickness is approximately 350m and expanding with depth. OTD576 utilizing the UDR5000 brought to the property during the 4th quarter by Major Pontil is attempting to drill a series of holes perpendicular to the strike of the deposit through the midsection of Hugo North, previously explored by the north northwest trending series of OTD367 holes. Unfortunately the first, deep intersection on the east flank encountered the major fault that had previously stopped the OTD383 series of holes and the hole was lost in high grade copper mineralization. A second hole, OTD576A, has been navi-drilled off the hole to cross 400m up dip of where the hole was lost and has cut 200m of strong copper mineralization in the same zone cut by the 367 series of holes. Assays are pending. At least two holes will be cut off the bottom of the bend to fill the gap between the lost hole and OTD576A. Near the southern end of Hugo North, OTD577 is drilling a series of holes and daughters to fill a 200m gap between the 367 series and the 463 series of holes. The first of the 577 series was targeted to cut across the zone up dip of the zone in 367. The hole intersected 230m of mineralization before going into the footwall biotite granodiorite dyke and bottomed in moderate mineralized quarts monzodiorite. A second hole was cut off the bottom of the hole and crossed the zone 150m down dip. Here the hole encountered 260m of stronger bornite-rich mineralization before stoping at a major fault zone and the biotite granodiorite dyke. All assays are pending for these two holes. Earlier in 2003, OTD367D, a near vertical daughter hole, had been drilled to a point that is approximately 150m down dip of where OTD577A traversed. The hole intersected 232m grading 0.08 g/t gold and 1.06% copper in the steeply east dipping limb of volcaniclastic rocks that typically form a lower grade hanging wall to the high grade zone. Based on the geometry of the intersections, it is possible that the hole stopped short of the high grade zone. HUGO SOUTH Core drilling in Hugo South continued this quarter with five geotech holes, two structural holes and three infill resources. The three infill resource holes were drilled on Hugo exploration grid, NE6200, which is 500 m NNE from the southern limit of the Hugo South deposit. OTD612 intersected 262 m grading 1.47% copper and 0.05 g/t gold, including 80.4 m of 2.14% copper and 0.11 g/t gold which conforms to the previously drawn grade shells for >1% copper and >2% copper. OTD623 collared 50m NW of 612, through deviations in both holes 623 intersected 274 m grading 1.98% copper and 0.08 g/t gold 120 m up dip of the 612 10 intersection. Assays are pending for OTD646 which was collared 80 m NW of 623. CENTRAL OYU In Central Oyu the infill drill program consisting of short, vertical holes for delineating the shallow, flat lying, supergene chalcocite zone, commonly referred to as a "blanket" was completed. Results from these holes will be used for resource modelling in the 1st quarter of 2004. Drilling continued, however, to infill the underlying covellite-rich and chalcopyrite, gold mineralized zones. These holes are being drilled on intermediate spaced lines to the original 100 m line spacing. The holes are staggered 50 m forward and back of the holes adjoining to form a "5-spot" drill pattern which effectively provides a 70 m nominal spacing for the hole intercepts, which has previously been determined by AMEC E&C Services Ltd. to be the required spacing for an indicated resource estimate. During the fourth quarter, 95 holes were competed totalling 37,000 m. Results will be tabled in the resource estimate scheduled for the 1st quarter of 2004. Drilling is virtually complete for Central and the rigs are being moved into SW Oyu to undertake infill drilling in this zone. SOUTH WEST OYU No further holes other than the completion of the six holes reported in the last quarter were completed at Southwest Oyu. In the first quarter of 2004 it is planned to drill 33 holes totalling 20,800 m. These were collared to define the >1g/t gold shell for a measured resource estimate and infill the southwest end of the deposit within the proposed pit plan so that all resources in the proposed open pit mine plan can be categorized as either Indicated or Measured. KHARMAGTAI AND OVOOT HYAR Work at Kharmagtai and Ovoot Hyar concentrated on the reinterpretation of diamond drill core from the Gold Hill Project. This work is now complete and indicates that a third phase of diamond drilling is required to further test the strike and depth extensions of mineralization. Approximately US$210,000 was spent at Kharmagtai and Ovoot Hyar during the 4th quarter of 2003. GOLD HILL Two phases of diamond drilling at Altan Tolgoi totalling 11,361 m have intersected gold-rich copper-gold porphyry mineralization that remains open at depth and along strike. Mineralization is hosted within two quartz-chalcopyrite-pyrite stockwork zones which are approximately 100 m apart: the Southern and Northern Stockwork Zones. The Southern Stockwork Zone is a narrow zone of strong quartz stockwork veins and associated high-grade gold mineralization (0.6 to >5 g/t gold; 0.3 to >1.0 % copper) that is up to 100 meters wide, at least 450 meters long and at least 300 meters deep. The Southern Stockwork Zone has been bisected by a 130(degree) trending shear zone. The Northern Stockwork Zone consists of a broad halo of quartz veins that is at least 250 m long, 150 m wide and 350 m deep. Grades within the Northern Stockwork Zone typically range from 0.3 to 0.5 g/t gold and 0.1 to 0.5 % copper, with common 10 to 30 m wide pockets of 0.7 to 1.3 g/t gold and 0.2 to 0.5 % copper. The zone of quartz veining appears to amalgamate into a zone of stronger stockwork veining at depth and to the east. 11 Mineralization in both stockwork zones is characterised by high gold grades, with percent copper to grams/tonne gold ratios typically exceeding 1:2. A preliminary in house Surpac block model indicates 28 Mt at 0.51 g/t gold and 0.41 % copper at a 0.4 % equivalent copper cut off. However these calculations do not take into account the probable extension of mineralization along strike or at depth. Petrographic study indicates that the gold occurs as micro-sized particles which infill fractures and form blebs within chalcopyrite. Mineralization remains open at depth and along strike in both stockwork zones. Malachite-stained and quartz veined outcrop indicate that the Southern Stockwork Zone continues for at least 200 m along strike to the west of current drilling. Quartz veins also outcrop 70 m to the east of current drilling at the Northern Stockwork Zone. The geology, strength of alteration and style of mineralization suggest that mineralization will extend at depth. A third phase of diamond drilling will commence during the 2nd quarter of 2004. Thirty holes totalling approximately 10,000 m are planned. NARIN HUDAG AND MANDAK The Narin Hudag and Mandak porphyry copper-gold targets are located in the Gobi Desert of Mongolia within the same mineralised belt that hosts Oyu Tolgoi. The targets are associated with a series of felsic to intermediate porphyritic intrusions that were emplaced into a sequence of Siluro-Devonian volcanic and sedimentary rocks. Copper-gold mineralization at Narin Hudag is associated with a series of feldspar phyric diorite porphyries and consists of stockworked and sheeted quartz-tourmaline veins which outcrop over an area of approximately 3 km(2). 240 surface rock chip samples were collected and 60 assayed over 0.3% copper (maximum of 10.1% Cu). Many samples were highly gold anomalous and a maximum assay of 3.3 g/t gold was returned from a quartz-tourmaline vein sample. Copper-bearing sheeted quartz veins at Mandak are hosted within intensely K-feldspar altered diorites and granodiorites and outcrop over an area of approximately one km(2). 191 rock chip samples were collected at Mandak and many are highly gold and copper anomalous. The stockworked and sheeted quartz and quartz-tourmaline veins at Narin Hudag and Mandak are associated with a series of narrow porphyry dykes. This suggests that erosion has only exposed the upper levels of these systems and indicates potential for copper-gold mineralised porphyries at depth. Detailed mapping and sampling in association with ground magnetic and induced polarisation surveys is planned for early 2004. Approximately $25,000 has been spent at Narin Hudag and Mandak. BAYAN UUL AND UNEGTEI The Bayan Uul and Unegtei Projects are located approximately 200 km southwest of Ulaanbaatar. A first phase of geological mapping, rock chip sampling and ground magnetics was completed during the 4th quarter of 2003. Mineralization at Bayan Uul is characterised by widespread tourmaline-quartz- sericite +/- hematite altered and brecciated andesitic and monzonitic rocks. At the Central Bayan Uul prospect variably developed and weakly gold-copper anomalous quartz 12 veins occur coincident with a northwest trending magnetic high. At the southwest and north Bayan Uul prospects rock chip grab samples indicate gold anomalous zones (0.5-3.7 ppm Au) which are associated with altered monzonite and moderate to high magnetic anomalies. Unegtei is characterised by abundant tourmaline-quartz-magnetite-specular hematite altered fracture zones (typically less than 10 m wide) that have a dominant NW-trend. At the North Unegtei prospect rock chip grab samples define a highly gold anomalous zone of approximately 600 by 250 m (average of 83 samples 0.74 g/t Au: minimum 0.5 g/t Au and maximum 19.0 g/t Au) which is associated with tourmaline-quartz altered monzonite, unidirectional solidification textures (UST's) and a northeast trending magnetic high. Further mapping, rock chip and soil sampling, and gradient array IP is planned for Bayan Uul and Unegtei during the 2nd quarter of 2004. Approximately $80,000 has been spent at Bayan Uul and Unegtei. SUBSEQUENT EVENTS As of November, 2003, AMEC provided an updated inferred resource estimate to include holes drilled in Hugo North, previously referred to as the Far North Extension. The revised estimate is tabled below. AMEC's August 2003 inferred resource estimate for the Hugo Dummett Deposit, using a 0.60% copper equivalent cut-off grade, was 643 million tonnes grading 1.19% copper and 0.10 g/t gold, or 7.7 tonnes of copper and 2.11 million ounces of gold. The Hugo Dummett Deposit now contains an estimated inferred resource of 961.6 million tonnes grading 1.30% copper and 0.18 g/t of gold, at a 0.60% copper equivalent cut off, containing 12.48 million tonnes of copper and 5.4 million ounces of gold. HUGO DUMMETT DEPOSIT - OYU ZONE INFERRED RESOURCES NOV. 2003 VS. FEB. 2003
DATE OF TONNES COPPER GOLD COPPER GOLD ESTIMATE Cu. EQ. CUT-OFF GRADE (%) (MILLIONS) (%) (G/T) (MILLION TONNES) (OUNCES) -------- ------------------------- ---------- --- ----- ---------------- --------- November, 2003 >= 2.00 149.4 2.88 0.53 4.31 2,560,000 >= 0.60 961.6 1.30 0.18 12.48 5,420,000 August, 2003 >= 2.00 70.8 2.92 0.30 2.1 690,000 >= 0.60 642.8 1.19 0.10 7.7 2,110,000 Feb. 26, 2003 >= 2.00 29.3 2.69 0.19 0.79 175,000 >= 0.60 489.0 1.08 0.07 5.26 1,170,000
The current Hugo Dummett inferred resource estimate incorporates results from 136 drill holes whereas the August estimated incorporated results from 100 drill holes and the February estimate incorporated results from 41 drill holes. A detailed analysis of the current estimated inferred mineral resources for the Hugo Dummett Zone, at various copper equivalent cut-off grades, is provided in the following table. HUGO DUMMETT DEPOSIT - OYU ZONE INFERRED RESOURCES NOVEMBER 2003 13
GRADES ------------------------------------------------------------------------------------------------------------ CuEQ CUT-OFF GRADE TONNES CuEQ Cu Au Cu Au ------------------------------------------------------------------------------------------------------------ (%) (%) (%) (G/T) TONNES (OUNCES) ------------- ------------- ---- ---- ------- ---------- --------- >=3.50 47,900,000 4.29 3.68 0.96 1,760,000 1,470,000 >=3.00 75,800,000 3.91 3.42 0.76 2,590,000 1,860,000 >=2.50 115,200,000 3.51 3.11 0.61 3,590,000 2,270,000 >=2.00 149,400,000 3.22 2.88 0.53 4,310,000 2,560,000 >=1.50 234,300,000 2.65 2.39 0.40 5,610,000 3,020,000 >=1.25 412,500,000 2.09 1.92 0.27 7,930,000 3,550,000 >=1.00 575,500,000 1.82 1.67 0.23 9,620,000 4,300,000 >=0.90 654,900,000 1.71 1.57 0.22 10,300,000 4,640,000 >=0.80 778,900,000 1.57 1.45 0.20 11,280,000 4,990,000 >=0.70 889,700,000 1.47 1.36 0.18 12,060,000 5,230,000 >=0.60 961,600,000 1.41 1.30 0.18 12,480,000 5,420,000 >=0.50 1,082,500,000 1.31 1.21 0.17 13,060,000 5,800,000 >=0.40 1,358,100,000 1.14 1.04 0.15 14,140,000 6,430,000 >=0.30 1,800,300,000 0.94 0.86 0.12 15,500,000 7,220,000
* (various Cu equivalent cut-off grades) *1) Copper equivalent cut-off grades have been calculated using assumed metal prices (US$0.80/lb. for copper and US$350/oz. for gold); %Cu eq. = %Cu + Au (g/t) x (11.25/17.64). 2) Copper equivalent grades have been calculated using assumed metal prices of US$350 per ounce god and US$0.80 per pound copper. The contained gold and copper represent estimated contained metal in the ground and have not been adjusted for the metallurgical recoveries of gold and copper. The determination of an adjustment factor to account for differences in relative metallurgical recoveries between gold and copper will depend upon the completion of definitive metallurgical testing. 3) Resource classifications conform to CIM Standards on Mineral Resources and Reserves referred to in National Instrument 43-101. Mineral resources that are not reserves do not have demonstrated economic viability. An indicated mineral resource is that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. An inferred mineral resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified. AMEC now estimates that the Oyu Tolgoi Project contains estimated inferred resources totalling 2.60 billion tonnes grading 0.73% copper and 0.17 g/t gold, at a 0.30% copper equivalent cut-off, containing approximately 19.1 million tonnes of copper and 14.4 million ounces of gold. This represents an increase of 26% in the amount of copper and a 42% increase in the amount of gold since AMEC's previous estimate issued in August 2003. In addition, 509 million tonnes of indicated resources are estimated in the Southwest Zone grading 0.40% copper and 0.59 g/t gold, containing approximately 2.1 million tonnes (4.5 billion pounds) of copper and 9.7 million ounces of gold at the same cut-off grade. 14 TURQUOISE HILL RESOURCE TABLE BY ZONE
CuEQ GRADES CONTAINED METAL CUT-OFF GRADE CuEQ Cu Au Mo Cu Cu Au (%) TONNES (%) (%) (G/T) (PPM) TONNES (000S LB) (OZ) ------------- ------ ---- ---- ----- ----- ---------- --------- --------- South West Deposit -Indicated >or = 1.00 92,300,000 1.74 0.74 1.57 74 682,000 1,500,000 4,662,000 >or = 0.60 267,000,000 1.08 0.53 0.86 69 1,423,000 3,140,000 7,346,000 >or = 0.30 508,900,000 0.78 0.40 0.59 61 2,058,000 4,540,000 9,689,000 South West Deposit - Inferred >or = 1.00 24,900,000 1.48 0.59 1.40 60 146,000 320,000 1,120,000 >or = 0.60 126,600,000 0.87 0.44 0.68 65 552,000 1,220,000 2,780,000 >or = 0.30 290,800,000 0.64 0.32 0.50 52 922,000 2,030,000 4,700,000 South Deposit - Inferred >or = 1.00 5,400,000 1.18 0.82 0.56 32 44,000 100,000 100,000 >or = 0.60 48,400,000 0.77 0.61 0.26 20 294,000 650,000 400,000 >or = 0.30 270,300,000 0.48 0.39 0.13 23 1,067,000 2,350,000 1,100,000 Central Deposit - Inferred >or = 1.00 60,600,000 1.34 1.12 0.34 53 679,000 1,500,000 670,000 >or = 0.60 147,500,000 0.99 0.84 0.24 56 1,238,000 2,730,000 1,140,000 >or = 0.30 236,800,000 0.79 0.67 0.18 53 1,591,000 3,510,000 1,360,000 Hugo Deposit - Inferred >or = 1.00 575,500,000 1.82 1.67 0.23 47 9,620,000 21,220,000 4,300,000 >or = 0.60 961,600,000 1.41 1.30 0.18 56 12,480,000 27,520,000 5,420,000 >or = 0.30 1,800,300,000 0.94 0.86 0.12 57 15,500,000 34,160,000 7,220,000
*The resource estimates for the Southwest, South and Central deposits were prepared by AMEC E&C Services Limited, of Canada, in February, 2003. GENERAL MONGOLIA Ivanhoe owns a 51.1% interest in Asia Gold Corp. (ASG: TSX-V). Asia Gold owns a 100% interest in two large exploration properties in southern Mongolia; the Oyut Ovoo property (five licenses) totalling 372,988 hectares and the Western Gobi property (35 licenses) totalling 3,581,284 hectares. Oyut Ovoo is a porphyry related skarn and breccia-pipe intrusive complex. Exploration work completed on the property during the 4th quarter included geological mapping, rock sampling, a ground magnetics survey and 137 line kilometres of gradient array Induced Polarization (IP) geophysics. Assay results from 505 surface rock samples have outlined an area of about one square kilometre with high grade copper mineralization. The area of surface mineralization is coincident with a magnetic and IP geophysical anomaly. A second IP anomaly has been identified one km to the southeast in an area with only trace rock outcrop. Asia Gold plans to drill test the surface mineralization and IP anomalies in the 1st and 2nd quarter of 2004. The Western Gobi property is a regional scale exploration area located west of the Oyut Tolgoi copper-gold deposit. Exploration activity on the property in the 4th quarter included the continuation of a reconnaissance program started in the 3rd quarter plus follow-up work on targets of interest. The work is designed to generate advanced projects and drill targets for 2004. The exploration work on the Western Gobi property in the 4th quarter resulted in the discovery of two epithermal gold prospects. Assay results from surface rock sampling on the Yagaan prospect outlines significant gold mineralization over an area measuring 300 m by 150 m. An epithermal style vein system on the Dune prospect 15 was tested with 27 trenches totalling 5,462 m. Assay results from the Dune trenching will be reported in 2004. Other targets identified during the reconnaissance program are being evaluated and prioritized for follow-up work in 2004. Grass roots reconnaissance of Ivanhoe Mines licences continued throughout the 4th quarter of 2003. Field work concentrated on the mineralised belt that extends from Oyu Tolgoi north-eastwards to the Oyut Ulaan Project. The program was designed to prioritise targets in preparation for detailed mapping, sampling and geophysics during 2004, and involved ongoing interpretation of satellite imagery and the development of a mineral occurrence database. SOUTH KOREA Exploration in South Korea is conducted by Korean Exploration and Mining Ltd., a 90% owned subsidiary of Asia Gold Corp. Activity in the 4th quarter included surface and underground exploration diamond drilling at the Eunsan trial mine and surface diamond drilling on the Lighthouse and Central veins on Gasado Island, located 35 km west of the mine. The results of the drilling at Eunsan did not increase the geological resource either at depth or on strike. An underground exploration decline was also extended to the -70 Level and crosscut headings driven to test for a depth extension of the main vein. This development did not intersect any significant mineralization. The drilling on the Lighthouse vein on Gasado Island extended the vein to a depth of 100 m below surface. A geological and mining resource will be reported in the 1st quarter of 2004 as part of a scoping study to determine if ore can be mined from the Lighthouse vein to supply the existing processing plant at Eunsan. The drilling on the Central vein did not extend high grade mineralization intersected by previous drill program. CHINA Ivanhoe is exploring for gold, copper and platinum-group metals (PGMs) in China through a joint venture with Pacific Minerals Inc. ("PMZ"). On October 24, 2003, PMZ and Ivanhoe reached an agreement-in-principle to restructure their mineral exploration and development joint venture. The revised agreement will reduce Ivanhoe's maximum earn-in from 80% to 50% on PMZ's most significant projects in China. Ivanhoe retains the right to earn up to 80% of the available interest in any new projects acquired by PMZ in China (excluding Anhui and Liaoning provinces). The revised agreement also contains a mutual non-compete clause, whereby PMZ agrees not to compete for any new mineral properties in the Inner Mongolia Region and Ivanhoe agrees not to compete for any new mineral properties in Liaoning Province. Ivanhoe has agreed to transfer to PMZ 50% of its interest in the Shuteen exploration licence in southern Mongolia. The project has similar geological characteristics and is within the same copper-rich mineral belt that hosts Ivanhoe's Turquoise Hill and Kharmagtai porphyry copper-gold projects. The Shuteen licence covers approximately 93 square kilometres (36 sq. miles), approximately 100km east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in Shuteen in early 2002 by undertaking to complete a US$1.5 million exploration program before December 31, 2004. To date, Ivanhoe has spent approximately US$1.4 million on the project. 16 Ivanhoe is evaluating numerous gold and copper targets in Inner Mongolia and an exploration office has been established in the provincial capital at Hohhot. Ivanhoe is exploring in a joint venture with Inner Mongolia Huayu Geology and Minerals Exploration Co. Ltd., an affiliate of China Non-Ferrous Metals Industries Corporation of Beijing. Fourth-quarter expenditures with regards to the Ivanhoe's' China projects were approximately US$0.75 million. VIETNAM Ivanhoe holds a minority interest in a gold exploration joint venture in Vietnam with Olympus Pacific Minerals, a public Canadian mineral exploration company, and Zedex Ltd., a New Zealand registered investment company. The joint venture's principal project is the Phuoc Son gold project, in northwestern Quang Nam Province, Central Vietnam. AUSTRALIA During quarter all the mining and exploration tenements and some of the assets of Selwyn Mines were purchased with a view to establish an exploration program primarily for copper and gold. [IVANHOE MINES LOGO] FEBRUARY 2, 2004 INDEPENDENT SCOPING STUDY FOR IVANHOE MINES' OYU TOLGOI PROJECT TO BE DISCUSSED DURING IVANHOE MINES' CONFERENCE CALL MONDAY FEBRUARY 2ND, 2004 TORONTO -- Ivanhoe Mines will host a telephone conference call on Monday, February 2nd, at 4:00 p.m. Eastern time (1:00 p.m. Pacific) to discuss the independent Scoping Study, or Preliminary Assessment Report, for the company's Oyu Tolgoi (Turquoise Hill) copper and gold project in Mongolia. Details of the Scoping Study are contained in a news release issued earlier today, which is available on the Ivanhoe Mines' website at www.ivanhoemines.com. The Scoping Study was prepared by an integrated engineering team of AMEC E&C Services Ltd., of Canada, and Ausenco International, the Mining Group of GRD Minproc and SRK Consultants, all of Australia. Ivanhoe executives will be available to answer questions about the scoping study and the company's Mongolian exploration and development program. The conference call may be accessed by dialling 1-800-273-9672 in Canada and the United States, or 416-695-5806 in the Toronto area and internationally. An operator will register participants. A simultaneous webcast of the conference call will be provided through www.ivanhoemines.com and www.Q1234.com. The conference call will be archived for later playback on the Internet at www.q1234.com or by dialling 1-800-408-3053 or 1-416-695-5800 and entering the pass code 1527755. For further information, please contact Ivanhoe's investor relations department at (888)-273-9999 or (604)-688-5755. ABOUT IVANHOE MINES Ivanhoe Mines, with operations concentrated in the Asia Pacific region, is a producer of copper, gold and iron ore products. Ivanhoe Mines' core assets are its 100%-owned Oyu Tolgoi Project in southern Mongolia and exploration rights which it holds or controls covering approximately 111,000 square kilometres in central and southern Mongolia and the Chinese province of Inner Mongolia. Ivanhoe shares are listed on the NASDAQ market under the symbol HUGO and on the Toronto and Australian stock exchanges under the symbol IVN. Information contacts: +1.604.688.5755 - Investors: Bill Trenaman / Media: Bob Williamson [IVANHOE MINES LOGO] FEBRUARY 2, 2004 INDEPENDENT SCOPING STUDY CONFIRMS OYU TOLGOI PROJECT'S POTENTIAL TO BECOME A WORLD-CLASS COPPER-GOLD MINE DETAILED PRELIMINARY ASSESSMENT INDICATES FAST-TRACK START-UP IS POSSIBLE IN FOURTH QUARTER OF 2006 WORK UNDERWAY ON FULL FEASIBILITY STUDY AS NEXT STEP IN THE PROJECT DEVELOPMENT PROCESS ULAANBAATAR, MONGOLIA -- Ivanhoe Mines' Chairman Robert Friedland and President John Macken announced today that an independent Preliminary Assessment Report, or scoping study, confirms the potential of Ivanhoe's Oyu Tolgoi (Turquoise Hill) Project in southern Mongolia to become a new, long-life copper and gold producer that could rank among the largest in the world. Three years of exploration by Ivanhoe so far has identified five co-genetic deposits at Oyu Tolgoi: Southwest Oyu, Central Oyu, South Oyu, Hugo Dummett South and Hugo Dummett North. The deposits will form the basis for the Oyu Tolgoi copper-gold production complex that will include open-pit and underground mines, processing facilities and associated infrastructure. The Preliminary Assessment Report was prepared by an integrated engineering team of AMEC E&C Services Ltd., of Canada, and Ausenco International, the Mining Group of GRD Minproc and SRK Consultants, all of Australia. Ivanhoe commissioned the report to assess the development alternatives open to Ivanhoe and to chart an implementation path for the Oyu Tolgoi mining complex. A sensitivity analysis also was completed to determine the economic effects of such variable factors as capital, operating costs, smelting and refining costs and gold and copper prices. The Preliminary Assessment Report forecasts the economic viability of both conventional open-pit and underground mining operations. The Preliminary Assessment Report includes Inferred resources that have not yet been sufficiently drilled to have economic considerations applied to them to enable them to be categorized as reserves. Until there is additional drilling to upgrade the Inferred to Measured and Indicated resources, there can be no certainty that the preliminary assessment will be realized. The study examined three alternative development concepts in detail, each of which has robust rates of return at different levels of capital investment and production profiles. THE BASE CASE FOR THE REPORT WAS A TWO-STAGE BUILD-OUT OF THE OYU TOLGOI PROJECT. IT WOULD INVOLVE THE CONSTRUCTION OF A PROCESS PLANT TO HANDLE 20 MILLION TONNES OF ORE PER YEAR, FED BY OPEN PITS ON THE SOUTHWEST OYU, CENTRAL OYU AND HUGO SOUTH DEPOSITS. THIS FIRST STAGE WOULD BE FOLLOWED BY A SECOND-STAGE BUILD-OUT THAT WOULD EXPAND THE PRODUCTION RATE TO 40 MILLION TONNES A YEAR IN YEAR 5 THROUGH THE DEVELOPMENT OF THE UNDERGROUND MINE AT THE HUGO NORTH DEPOSIT. THE BASE CASE USED METAL PRICES OF US$400/OZ. GOLD AND US$0.90/LB COPPER. THE REPORT USED AVERAGE LIFE-OF-MINE METALLURGICAL RECOVERIES OF 89.6% COPPER AND 65.8% GOLD. APPROXIMATELY 78% OF THE RESOURCES EMPLOYED IN THE BASE CASE WERE CLASSIFIED AS INFERRED AT THE TIME OF THE STUDY; THE REMAINING 22% WERE IN THE INDICATED CATEGORY (SEE TABLES BELOW). 2 The three development concepts are summarized in the following table: OVERVIEW OF OYU TOLGOI DEVELOPMENT SCENARIOS (Based on US$400/oz gold and US$0.90/lb copper)
OPTION PRODUCTION LEVEL --------------------------- -------------------------------------------------------------------------- 1. Full-Scale Production begins at full design capacity of 40 million tonnes/ore/year Start-Up (120,000 tonnes of ore a day) 2. TWO-STAGE Fast-track start-up @ 17-20 million tonnes/ore/year (60,000 tonnes/day) in BUILD-OUT (BASE CASE) Stage 1, expanding to 40 million tonnes (120,000 tonnes/day) in Stage 2 3. Stand-Alone Stand alone @ 17-20 million tonnes/ore/year (60,000 tonnes/day) (Initial Building Block)
TWO-STAGE Decision Factor Units Full- Scale BUILD-OUT Stand-Alone ---------------------------------- ------------- ----------- --------- ----------- Initial capital US$ million 1,167 529 510 Pre-tax payback period Years 5.6 6.2 3.7 Total cash cost -- first 10 years* US$/lb copper $ 0.41 $ 0.39 $0.33 After-tax NPV -- 100% equity 5% discount US$ million 2,035 2,033 522 7.5% discount US$ million 1,293 1,324 359 IRR 100% equity financing % 17.5 21.2 18.9 70/30 debt-to-equity financing % 27.8
* Cash costs include all project general and administrative costs (G&A), all mine-site costs (including expensing of the pre-stripping costs of Hugo South Deposit), all treatment and refining charges and penalties, all concentrate transportation costs and all royalty, lease and property imposts. 1. FULL-SCALE START-UP OPTION: Full-scale development in one step, with a start-up rate of 40 million tonnes of ore per year (tpy). 2. TWO-STAGE BUILD-OUT OPTION: A two-stage, fast-tracked development, beginning with Stage 1 fast-track development of open pits at the Southwest Oyu and Central Oyu deposits and initial production of 17-20 million tpy, to be followed by the Stage 2 expansion to 40 million tpy over five years through the subsequent opening of a large open pit at the Hugo South deposit and underground block-caving at the Hugo North deposit. 3. STAND-ALONE OPTION: Fast-track development of Southwest Oyu and Central Oyu as open pits, with production targeted at an annual rate of 17-20 million tpy beginning in 2007 -- and possibly as soon as 2006 -- modelled to demonstrate the indicated stand-alone economics of this initial building block. IN EFFECT, THE STAND-ALONE OPTION IS THE FIRST STAGE OF THE TWO-STAGE BUILD-OUT OPTION, SHOWING THAT -- DEPENDING ON FUTURE COPPER AND GOLD PRICES -- THE PROJECT COULD, PARTICULARLY WITH FAVOURABLE GOVERNMENT FISCAL AND TAX CONCESSIONS, PARTIALLY SELF-FINANCE ITS OWN EXPANSION WITH INTERNALLY GENERATED CASH FLOW, AS DETAILED BELOW. THE TWO-STAGE BUILD-OUT OPTION, WHICH DRAWS ON THE STAND-ALONE ECONOMICS AND PROVIDES SIMILAR FULL-SCALE BENEFITS, IS USED THROUGHOUT THIS NEWS RELEASE TO HIGHLIGHT THE FULL SCOPE OF THE OYU TOLGOI PROJECT'S DEVELOPMENT OPPORTUNITIES NOW INDEPENDENTLY CONFIRMED BY THE PRELIMINARY ASSESSMENT REPORT. 3 Given recent volatility in metal prices, the development scenarios also were modelled using a range of prices. The following table, based on US$1.00 copper and US$400 gold, illustrates the potential effect of a higher copper price on the financial parameters. ALTERNATIVE OVERVIEW OF OYU TOLGOI DEVELOPMENT SCENARIOS (Based on US$400/oz gold and US$1.00/lb copper)
OPTION PRODUCTION LEVEL -------------------------- -------------------------------------------------------------------------- 1. Full-Scale Production begins at full design capacity of 40 million tonnes/ore/year START-UP (120,000 tonnes of ore a day) 2. TWO-STAGE Fast-track start-up @ 17-20 million tonnes/ore/year (60,000 tonnes/day) in BUILD-OUT (BASE CASE) Stage 1, expanding to 40 million tonnes (120,000 tonnes/day) in Stage 2 3. Stand-Alone Stand alone @ 17-20 million tonnes/ore/year (60,000 tonnes/day) (Initial Building Block)
Two-Stage Decision Factor Units Full- Scale Build-Out Stand-Alone ---------------------------------- ------------- ----------- --------- ----------- Initial capital US$ million 1,167 529 510 Payback period Years 4.8 5.6 3.3 Total cash cost -- first 10 years* US$/lb copper $ 0.41 $ 0.39 $0.33 After-tax NPV -- 100% equity 5% discount US$ million 2,772 2,707 705 7.5% discount US$ million 1,845 1,814 503 IRR 100% equity financing % 20.8 24.9 22.4 70/30 debt-to-equity financing % 33.0
* Cash costs include all project general and administrative costs (G&A), all mine-site costs (including expensing of the pre-stripping costs of Hugo South Deposit), all treatment and refining charges and penalties, all concentrate transportation costs and all royalty, lease and property imposts. The project cash-flow model was based on the fiscal regime that currently would apply to the project. The Two-Stage Build-Out Option has been modelled with tax holidays, initiated upon the start-up of each 20-million-tonne stage. KEY ELEMENTS OF A TWO-STAGE BUILD-OUT OPTION The Two-Stage Build-Out Option appears to have a number of important advantages, given Ivanhoe's 100% ownership of the project and the scenario's ability to minimize the capital requirement by utilizing internally generated cash flow. Details of this study, which provides a snapshot of the relative scale and economic merits of this particular plan, include: - Stage 1 would deliver initial production of approximately 20 million tpy from conventional open-pit mining of the gold-rich Southwest and Central deposits, with production in 2007 -- and possibly as soon as 2006. 4 - Initial capital required to bring the project into Stage 1 production from Southwest Oyu is estimated at US$529 million, which would generate annual operating cash flows of up to US$263 million per year and average approximately US$145 million per year for the first four years (based on prices of US$400 gold and US$1.00 copper). - Stage 2 would expand production to 40 million tpy in Year Five as the Hugo South open pit and Hugo North block-cave underground mine come on stream. - The Two-Stage Build-Out scenario has a maximum cash drawdown requirement of US$643 million. - At Stage 2 production of 40 million tpy, the project would generate after-tax cash flows ranging from US$399 to US$516 million per year for 11 years. - Strong gold production is expected to average 400,000 ounces a year in the first four years. - Copper production through Stage 2 is expected to be a minimum of 8.9 million tonnes (19.5 billion pounds), with Years 4 through 21 greater than 300,000 tpy (661.4 million pounds) and Years 7 through 15 greater than 400,000 tpy (881.8 million pounds). - Initial open-pit resource: 862 million tonnes grading 0.70% copper and 0.24 gram of gold per tonne (2.4 billion tonnes of waste at a stripping ratio of 2.8:1). - Early after-tax operating cash flow generation of approximately US$146 million per year, growing to approximately $400 million to $516 million per year as the Hugo South and Hugo North deposits reach capacity. - The Oyu Tolgoi project generates more than US$20 billion worth of metal production over the first 30 years of mine life. - The report also compared debt financing as an alternative to 100% equity. Using a 7% interest rate, for example, and a 70/30 debt-to-equity ratio, the leveraged case generated a 33.0% internal rate of return compared to 24.9% as a 100% equity option (based on US$400 gold and US$1.00 copper). Mr. Friedland said it is possible that a two-stage, fast-track scenario could be project-financed with an equity component of approximately US$200 million using a conventional 70/30 debt to equity ratio. "This type of financing is clearly within Ivanhoe's capability, given that Ivanhoe has the option of selling existing non-core assets or selling a minority participation in the Oyu Tolgoi project to one or more strategic partners." Stephen Hodgson, Technical Director of Mining for AMEC E&C Services Limited and leader of the engineering team that completed the report, said Oyu Tolgoi is capable of sustaining a production rate of 40 million tonnes per year for approximately 25 years, with annual production averaging approximately 400,000 ounces of gold per year in the early years and 480,000 tonnes of copper per year at a steady state of 40 million tonnes per year. "There remains significant upside to further enhance the economics of the project given the continuing exploration underway to expand and upgrade the resources that were used as the basis for this assessment. It should be noted that the preliminary assessment process is dynamic in nature and provides a snapshot of possible production options based upon data available at the time of the study." 5 GRAPH: COPPER AND GOLD PRODUCTION PROFILE -- TWO-STAGE BUILD-OUT OPTION * [COPPER AND GOLD PRODUCTION BAR CHART] * Two-Stage Build-Out Option does not include an additional 203 million tonnes identified in bases of Southwest and Central pits. GRAPH: ILLUSTRATION OF THE STRONG CASH-FLOW GENERATED BY THE TWO-STAGE BUILD-OUT OPTION AT VARIOUS COPPER AND GOLD PRICES. [COPPER AND GOLD PRODUCTION LINE GRAPH] 6 SIGNIFICANT CONCLUSIONS IN THE PRELIMINARY ASSESSMENT REPORT These conclusions are subject to the qualifications contained in the Preliminary Assessment Report. - The Hugo South Deposit also is amenable to open-pit mining, which would help to ensure a smooth transition to the expanded Stage 2 production from this large copper-rich ore body in Year Five. - Low-cost block caving has been selected as the mining method for the deeper high-grade Hugo North Deposit. Shaft sinking and associated underground development will be fast-tracked by Ivanhoe to upgrade the Inferred resource to Measured and Indicated and confirm the design criteria of a 12 million tonne-per-year block cave operation. - The project's economics will be enhanced by its proximity to China, which could: - reduce the costs of transportation and electricity supply; and - permit the use of Chinese materials and Chinese contractors who employ Mongolian nationals during construction, achieving further significant savings over comparable costs in Western countries. - The project economics will be enhanced as well by utilization of Mongolian nationals during operation. - China is the natural market for the copper and gold output from the project. - Ore can be treated in a conventional flotation concentrator, using conventional technology. - Water resources sufficient to supply the proposed mining operation already have been identified in the region. - Continued exploration success and development optimization should add additional value to the project. OYU TOLGOI -- ESTIMATE OF INDICATED AND INFERRED RESOURCES (BASED ON A 0.30% COPPER-EQUIVALENT CUT-OFF)
CONTAINED METAL COPPER ------------------------------------ RESOURCES COPPER GOLD EQUIV. COPPER GOLD COPPER EQUIV. (MILLION GRADE GRADE GRADE (MILLION (MILLION (MILLION DEPOSIT TONNES) (%) (G/T) (%) TONNES) OUNCES) TONNES) ---------------------- --------- ------ ---------- ------ -------- -------- ------------- SOUTHWEST OYU Indicated 508.9 0.40 0.59 0.78 2.06 9.69 3.98 Inferred 290.8 0.32 0.50 0.64 0.92 4.70 1.86 SOUTH OYU Inferred 270.3 0.39 0.13 0.48 1.07 1.10 1.28 CENTRAL OYU Inferred 236.8 0.67 0.18 0.79 1.59 1.36 1.86 HUGO DUMMETT Inferred 1,800.3 0.86 0.12 0.94 15.50 7.22 16.92 GRAND TOTAL: INDICATED 508.9 0.40 0.59 0.78 2.06 9.69 3.98 plus GRAND TOTAL: INFERRED 2598.2 0.73 0.17 0.84 19.08 14.38 21.92
7 (BASED ON A 0.60% COPPER-EQUIVALENT CUT-OFF)
CONTAINED METAL COPPER ------------------------------------ RESOURCES COPPER GOLD EQUIV. COPPER GOLD COPPER EQUIV. (MILLION GRADE GRADE GRADE (MILLION (MILLION (MILLION DEPOSIT TONNES) (%) (G/T) (%) TONNES) OUNCES) TONNES) ---------------------- --------- ------ ---------- ------ -------- -------- ------------- SOUTHWEST OYU Indicated 267.0 0.53 0.86 1.08 1.42 7.35 2.88 Inferred 126.6 0.44 0.68 0.87 0.55 2.78 1.10 SOUTH OYU Inferred 48.4 0.61 0.26 0.77 0.29 0.40 0.37 CENTRAL OYU Inferred 147.5 0.84 0.24 0.99 1.24 1.14 1.46 HUGO DUMMETT Inferred 961.6 1.30 0.18 1.41 12.48 5.42 13.56 GRAND TOTAL: INDICATED 267.0 0.53 0.86 1.08 1.42 7.35 2.88 plus GRAND TOTAL: INFERRED 1284.1 1.13 0.24 1.28 14.58 9.74 16.50
Resource estimates prepared by AMEC E&C Services Limited, of Canada, in November and February, 2003. 1) Calculation of copper equivalent grades based on US$0.80/lb. for copper and US$350/oz. for gold); %Cu eq. = %Cu + Au (g/t) x (11.25/17.64). 2) The contained gold and copper represent estimated contained metal in the ground and have not been adjusted for the metallurgical recoveries of gold and copper. The determination of an adjustment factor to account for differences in relative metallurgical recoveries between gold and copper will depend upon the completion of definitive metallurgical testing. 3) Resource classifications conform to CIM Standards on Mineral Resources and Reserves referred to in National Instrument 43-101. Mineral resources that are not reserves do not have demonstrated economic viability. An indicated mineral resource is that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. An inferred mineral resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified. 8 RESOURCES USED IN PRELIMINARY ASSESSMENT REPORT MINERAL INVENTORY - BASE CASE: TWO-STAGE BUILD-OUT
TOTAL RESOURCE MINED WASTE TOTAL TONNES CuEQ Cu Au TONNES TONNES DEPOSIT (000S) % % G/T (000S) (000S) ---------------- --------- ---- ---- ---- --------- ---------- Southwest 357,185 0.78 0.48 0.48 420,667 777,852 Central 126,611 0.84 0.75 0.14 206,021 332,632 Hugo South 378,372 1.00 0.97 0.05 1,780,374 2,158,746 Hugo North (U/G) 176,539 2.21 1.99 0.35 176,539 TOTAL 1,038,707 1.11 0.95 0.26 2,407,062 3,445,769
RESOURCE CLASSIFICATION IN MINERAL INVENTORY - BASE CASE: TWO-STAGE BUILD-OUT INDICATED
RESOURCE CuEQ Cu Au -------- ---- ---- ---- KT % % G/T -------- ---- ---- ---- 229,043 0.87 0.49 0.59
INFERRED
RESOURCE CuEQ Cu Au -------- ---- ---- ---- KT % % G/T -------- ---- ---- ---- 809,664 1.18 1.08 0.17
Milling cut-off, which defines the total mill feed given in the tables above, is the break-even cut-off where the value of the recoverable metal in a tonne of ore equals the total of on-site and off-site processing and general administrative (G&A) costs (but not including mining costs). For this inventory, the milling cost used was US$2.81 a tonne (including G&A). For conservative pit design and the purposes of these tables, calculations were based on US$0.85/lb copper and US$375/oz gold. For purposes of the Preliminary Assessment Report, the Hugo North underground block-cave mine has been planned to target the +2% copper equivalent cut-off boundary. 9 OPEN-PIT AND UNDERGROUND MINING CONSIDERATIONS Mining of all the deposits except Hugo North is projected to be by open pit, using the largest available, proven equipment, including, for example, 340- to 360-tonne trucks and large-capacity shovels. In the case of Hugo South, limited in-pit crushing and conveying of ore and waste rock have been incorporated into the mine plan. The open-pit cut-off strategy is to feed the highest available grade to the mills at any time and stockpile lower grade material above milling cut-off for later processing. The proposed ore-processing flow sheet is based upon a large flotation concentrator using conventional 40-foot-diameter SAG mills, ball mills and flotation. The current schedule suggests completion of a full feasibility study in 2004 for the first building block -- a major open-pit operation centred on the Southwest and Central deposits as outlined in the Stand-Alone Option. Construction would begin in 2005 and the first copper-concentrate shipments would be expected in 2007. There is an opportunity to "fast track" the development of the project by a rapid implementation of the Stand-Alone Option. Based on such a scenario, the operation could be in production as early as 2006. The study team assumed that electricity initially would be provided from the robust Chinese grid. Ivanhoe is currently in discussions with the Mongolian government and Chinese electrical power authorities to make the necessary arrangements. Hugo South open pit could be the subject of a pre-feasibility study in 2004 after the resource is raised to the Measured and/or Indicated classifications. The report is based on mining of the Hugo North deposit by block caving, subject to confirmation of the assumptions used in the study. The underground development schedule for Hugo North will be fast-tracked in parallel with the open-pit development by sinking a shaft on the deposit, continuing the drill assessment from underground and completing pre-feasibility and feasibility studies. Mobilization for the shaft sinking will start in the second quarter of 2004. "With the initiation of the open-pit feasibility study and the Hugo South pre-feasibility study this year, shaft sinking on Hugo North and an underground pre-feasibility study and further exploration drilling, we are confident we will continue to optimize the overall grade, define additional high-grade copper and gold mineralization and continue to identify opportunities that will further improve the project's economics," said Ivanhoe President John Macken. Detailed studies of in-pit crushing and conveying and analysis of electric-trolley-assisted truck haulage are underway for Southwest Oyu, South Oyu, Central Oyu and Hugo South deposits to assess further reductions in operating costs. There will be further detailed consideration of 42- or 44-foot SAG mills to improve the performance of the SAG/ball mill circuit. This would provide a second option for the expansion of production beyond the projected 40 million tonnes per year by milling lower-grade ore, rather than stockpiling it. Preparations are under way for the drilling of 200mm-core holes on Southwest Oyu to generate a representative 120-tonne sample for feasibility-level metallurgical testing to define the expected throughput of a 40-foot SAG mill and downstream components. 10 DEVELOPMENT SCENARIO UTILIZING FAST-TRACK DEVELOPMENT The Stand-Alone Option represents a viable approach based solely on the open-pit resources contained in the South, Southwest and Central deposits. Given that the three deposits are more accessible and subject to more advanced resource classification than the adjacent Hugo Dummett deposits, they are amenable to a fast-track development plan that would form the Stage 1 building block for the two-stage development of the entire project. The Stand-Alone Option also supplies the base-case information and justification to take the project to the next step -- reflected in the Two-Stage Build-Out Option that would expand production to 40 million tpy funded in part by cash generated by the open-pit production from the Southwest Deposit. Staged development has the advantage of minimizing the maximum capital investment requirement by utilizing operating cash flows from the first Stand-Alone phase. Ivanhoe therefore intends to complete a definitive feasibility study on the Stand-Alone Option by the end of this year, effectively addressing the requirements of the Stage 1 approach outlined in the Two-Stage Build-Out Option. Current drilling already has defined a large portion of the Southwest Zone to the Indicated resource classification and limited additional drilling is necessary to elevate most of it to Measured and Indicated, as required for a definitive feasibility study. While this study is in progress, the additional work necessary to complete a pre-feasibility study on the Hugo South and Hugo North deposits -- which comprise the projected Stage 2 expansion -- would be well advanced. At prices of US$400/oz for gold and US$1.00/lb for copper, the maximum capital required (not including interest expense) for the Two-Stage Build-Out Option would be US$643 million and could occur as the milling capacity of the project is being doubled from 20 million tonnes of ore per year to 40 million tonnes. Average cash costs* of copper production for the Two-Stage Build-Out Option, after gold credits and at prices of $400/oz for gold and $1.00/lb for copper, are: Years 1-5: 36 cents/lb Years 1-15: 40 cents/lb *Cash costs include all project G&A, all mine-site costs (including expensing of the pre-stripping costs of Hugo South Deposit), all treatment and refining charges and penalties, all concentrate transportation costs and all royalty, lease and property imposts. THESE CASH COSTS ALSO INCLUDE SMELTING CHARGES OF US$60 PER TONNE OF CONCENTRATE AND REFINING CHARGES OF SIX CENTS PER POUND OF COPPER. CURRENT SMELTING AND REFINING CHARGES SETTLED BETWEEN MAJOR CONCENTRATE PRODUCERS AND MAJOR SMELTER/REFINERIES FOR 2004 ARE SLIGHTLY BELOW $40 DOLLARS AND 4 CENTS, RESPECTIVELY. IF SIMILAR SMELTING AND REFINING CHARGES FROM CHINESE SMELTERS COULD BE LOCKED IN FOR THE LIFE OF THE PROJECT, THE AFTER-TAX NET PRESENT VALUE OF THE STAGED DEVELOPMENT AT A 5% DISCOUNT RATE, US$400/OZ GOLD PRICE AND US$1.00/LB COPPER PRICE WOULD INCREASE FROM $2.707 BILLION TO $2.907 BILLION AND THE AFTER-TAX INTERNAL RATE OF RETURN WOULD INCREASE FROM 24.9% TO 27.1%. CASH COSTS OF REFINED COPPER WOULD BE REDUCED BY AN AVERAGE OF 5.2 CENTS PER POUND. (SEE TABLE OF PROJECT SENSITIVITIES FOR CALCULATIONS). 11 UPSIDE OPPORTUNITIES OPEN-PIT RESOURCE TOPS ONE BILLION TONNES AN ADDITIONAL OPEN-PIT RESOURCE TOTALLING 203 MILLION TONNES, GRADING 0.47% COPPER AND 0.44 G/T GOLD AND CONTAINING 950,000 TONNES (2.1 BILLION POUNDS) OF COPPER AND 2.9 MILLION OUNCES OF GOLD, HAS BEEN IDENTIFIED IN THE BASE OF THE SOUTHWEST OYU AND CENTRAL OYU PITS AS PART OF ONGOING OPTIMIZATION ENGINEERING. THE RESOURCE, WHICH WAS NOT PART OF THE TWO-STAGE BUILD-OUT OPTION MODELLING, INCREASES THE TOTAL OPEN-PIT INFERRED RESOURCE TO 1.04 BILLION TONNES -- SUFFICIENT FOR MORE THAN 30 YEARS OF PRODUCTION AT PLANNED RATES. This additional tonnage will be included in a study to be presented to the Government of Mongolia on February 20 as part of the recent grant to Ivanhoe of long-term mining licences for Oyu Tolgoi. UPGRADING OF OYU TOLGOI RESOURCE UNDERWAY IVANHOE IS CONDUCTING AN EXTENSIVE IN-FILL DRILLING PROGRAM THAT IT EXPECTS WILL INCREASE THE OVERALL DEFINITION OF THE OYU TOLGOI DEPOSITS BY UPGRADING ADDITIONAL RESOURCES TO THE `MEASURED' AND `INDICATED' CATEGORIES. THE DRILL-OUT OF THE CENTRAL OYU RESOURCE TO MEASURED OR INDICATED STATUS IS NEARING COMPLETION AND THE DRILL-OUT OF THE SOUTHWEST OYU RESOURCE TO MEASURED OR INDICATED STATUS IS EXPECTED TO BE COMPLETED BY MAY, 2004. CONTRACT DOCUMENTATION HAS BEEN COMPLETED FOR THE SINKING OF A SHAFT ON HUGO NORTH TO FACILITATE THE DRILL-OUT OF THE RESOURCE FROM UNDERGROUND TO THE MEASURED AND INDICATED STATUS. IVANHOE MANAGEMENT IS WORKING TO GET THIS SHAFT COLLARED AND UNDER CONSTRUCTION AS SOON AS POSSIBLE. An aggressive drilling program is continuing to explore the limits of the Hugo Dummett deposit, which remains open to depth. Drilling results will be updated and incorporated into the project's advancing development plans. There is excellent potential to extend the resources in all five deposits identified to date and there is important potential to discover additional deposits on the Oyu Tolgoi Mining Licences and on Ivanhoe's extended exploration licences. TREATMENT OF LOWER-GRADE MATERIAL In the Full-Scale and the Two-Stage options, a total of 310 million tonnes of lower-grade material above milling grade is planned to be stockpiled over approximately 15 years before it is fed to the mill and concentrator. This material averages 0.41% copper and 0.15 g/t gold. Since G&A costs and the cost of mining this material are sunk costs (it already has been moved from the pits), only the incremental cost of milling and downstream costs apply against the production of this additional contained metal -- comprising over 1.270 million tonnes of contained copper (2.8 billion pounds) and 1.5 million ounces of contained gold. If, instead of stockpiling this ore, the second concentrator line was enlarged, or a third concentrator line was built, there could be a significant potential addition to early net cash flow. There is more than adequate Inferred resource in the base of the Southwest Oyu and Central Oyu pits to replace the low-grade stockpile material later in the mine schedule. The replacement material is approximately 50% higher in grade than the low-grade material that is stockpiled and then treated in the base cases. This would sustain cash-flow generation in later years. 12 ON-SITE SMELTING OPTION HAS ADVANTAGES Construction of a smelter on site, designed to maximize the recovery of copper and gold from Oyu Tolgoi concentrates, could further enhance the project's value. The estimated cost to build a smelter of sufficient size to process 500,000 tpy of concentrates is approximately US$220 million; the estimated operating cost is $0.075 per pound of blister copper. An on-site smelter would allow significant further optimization of metal recovery and eliminate the potential for future smelter deductions. The improved metal recovery, combined with savings in transport charges, lowered smelter charges and significant energy-generation potential, could significantly improve total project returns. The base-case assumption in the Preliminary Assessment Report is that concentrates will be sold to Chinese smelters. While the preliminary estimates for a blister copper smelter at Oyu Tolgoi are very attractive, Ivanhoe has not yet definitively determined to build a smelter in connection with the project. Ausmelt Limited, of Melbourne, Australia, has provided input to preliminary smelter studies and will begin a pre-feasibility study for a site-based smelter that would use its high-intensity smelting and converting furnaces. This would be an efficient, state-of-the-art facility with very high rates of gas capture and environmental controls similar to the Ausmelt smelter recently constructed in China. Initial capacity of this smelter would be 500,000 tpy of concentrate. The smelter could be incrementally expanded as needed. Current assumptions are that gold recovery could be improved by five percentage points and copper recovery by one percentage point simply by optimizing the concentrator to produce at a higher metallurgical recovery rate of copper and gold into a lower-grade concentrate. Pyrite would be the primary impurity lowering the concentrate grade. Pyrite simply acts as a source of fuel in the smelting process. IVANHOE ALSO HAS IDENTIFIED A HEAP-LEACH, SOLVENT EXTRACTION-ELECTROWINNING (SX-EW) PROJECT BASED ON THE NEAR-SURFACE CHALCOCITE BLANKET AT CENTRAL OYU THAT COULD BE DEVELOPED AS A SUPPLEMENT TO THE MAIN PROJECT. AT A LATER STAGE, THE SX-EW PLANT COULD BE USED TO PROCESS COPPER LEACHED FROM MINE DUMPS. FINANCIAL ANALYSIS Financial analysis of the project was conducted through discounted cash-flow modelling, which was based on data contained in the preliminary assessment report. All cases were based on open-pit mining from the South, Central, Southwest and Hugo South deposits, underground mining from the Hugo North deposit and processing of all ore through a concentrator to produce a copper concentrate containing gold that is sold to smelters outside Mongolia. The modelling has been conducted on an after-tax basis, without escalation or inflation, and on the basis that the project will be 100% equity funded. The U.S. dollar was the currency used for the evaluation. No provisions were made for exchange-rate variations. A leveraged project-finance case (30% equity 70% debt) also has been modelled for the Two-Stage Build-Out. The project-finance internal rate of return (IRR) is 33.0%, employing a 7% interest rate, US$400 gold and US$1.00 copper. 13 EBITDA TWO STAGE BUILD-OUT OPTION YEAR 1 TO 15 US $ MILLION PER YEAR [BAR CHART OF GOLD @ US$400/OZ & COPPER @ US$0.90/LB] EBITDA TWO STAGE BUILD-OUT OPTION YEAR 1 TO 15 US $ MILLION PER YEAR [BAR CHART OF GOLD @ US$400/OZ & COPPER @ US$1.00/LB] 14 SENSITIVITY ANALYSIS The sensitivity analysis undertaken by AMEC indicates that Oyu Tolgoi could generate an after-tax, 100% equity IRR of 24.9%, with an associated NPV of $2.707 billion at US$1.00 copper and US$400 gold -- according to the preliminary assessment of the project's capital costs, operating and processing costs, taxes and royalties. These robust economics are enhanced by the large initial gold production. A sensitivity analysis showed that the rate of return is most sensitive to changes in the copper price, followed by changes in the gold price, changes to the operating costs and finally changes in capital costs. For example, at US$1.10 copper andUS$400 gold, the after-tax IRR increases to 28.2% and the NPV increases to US$3.382 billion. PROJECT SENSITIVITY
IRR CHANGE NPV CHANGE PARAMETER CHANGE (%) ($M) --------------- ------------ ---------- ---------- Gold Price +/- $25/oz 0.7% 42 Copper Price +/- $0.05/lb 2.0% 183 Initial Capital +/- $52 M 2.1% 82 Smelter Charges +/- $10/wmt, 1.1% 100 $0.01/lb Gold Recovery +/- 1% point 0.2% 10
HEALTH, SAFETY AND ENVIRONMENT Ivanhoe Mines has developed a safety management system that utilizes the international safety standard OHSAS 18001. The Mongolian legal compliance requirements will be managed and monitored through this system. The Western Australian Mine Safety & Inspection Regulations (1995) were adopted as the standard for mine and processing operations. Operating to this standard will also ensure compliance with International Labour Organization standards and other internationally recognized standards. The Western Australian Standards generally are more comprehensive than the Mongolian requirements identified to date. Appropriate international standards will be incorporated into design, construction and contracting activities associated with the project. This Preliminary Assessment Report has ISO 14001 environmental accreditation. WATER SUPPLY Groundwater supply investigations by consultant Aquaterra Limited, of Perth, Western Australia, for the Oyu Tolgoi Project have been ongoing since April, 2002. Two separate investigations are underway: one is identifying groundwater resources within the licence area to provide camp and construction water; the other is a regional search for groundwater resources to provide a long-term process water supply. 15 Three deep, sedimentary groundwater systems well within 100 kilometres of Oyu Tolgoi are being drilled: Galbyn Gobi, Javkhlant and Gunii Hooloi. Indications are that these groundwater systems, as well as two other systems in the area, will be able to meet the water demand for a production rate of 40 million tonnes per year. STUDY DIRECTOR The preliminary assessment study was completed under the direction of Stephen Hodgson, P.Eng., technical director of mining for AMEC E&C Services Ltd. and an independent Qualified Person as defined by National Instrument 43-101. REPORT AVAILABLE ON SEDAR WEBSITE A copy of the Preliminary Assessment Report is available on the Sedar website at www.sedar.com ABOUT IVANHOE MINES Ivanhoe Mines, with operations concentrated in the Asia Pacific region, is a producer of copper, gold and iron ore products. Ivanhoe Mines' core assets are its 100%-owned Oyu Tolgoi Project (Turquoise Hill) in southern Mongolia and exploration rights that it holds or controls covering approximately 111,000 square kilometres in central and southern Mongolia and the Chinese province of Inner Mongolia. Ivanhoe shares are listed on the NASDAQ market under the symbol HUGO and on the Toronto and Australian stock exchanges under the symbol IVN. Information contacts: Investors: Bill Trenaman: +1.604.688.5755 / Media: Bob Williamson: +1.604.688.5755 FORWARD-LOOKING STATEMENTS This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and resources, exploration results and future development plans and objectives of Ivanhoe Mines for the Oyu Tolgoi project, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Ivanhoe's expectations include comments regarding development plans for the Oyu Tolgoi project; capital expenditures; planned production; costs of production; cash flow; sources of capital; copper and gold prices; geological, technical, permitting, mining or processing problems; financial market conditions; and other factors disclosed under the heading "Risk Factors" and elsewhere in Ivanhoe documents filed from time to time with the Toronto Stock Exchange, the Australian Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. FORM 53-901F Section 85 (1) - Securities Act (British Columbia) (or the equivalent thereof under Canadian Provincial Securities Legislation) 1. REPORTING ISSUER Ivanhoe Mines Ltd. ("Ivanhoe") World Trade Centre Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 2. DATE OF MATERIAL CHANGE February 2, 2004 3. PRESS RELEASE Date of Issuance: February 2, 2004 Place of Issuance: Vancouver, British Columbia 4. SUMMARY OF MATERIAL CHANGE A preliminary assessment report (the "Preliminary Assessment Report") has been prepared in respect of Ivanhoe's Oyu Tolgoi (also known as Turquoise Hill) gold and copper project in Mongolia (the "Oyu Tolgoi Project"). In the Preliminary Assessment Report, development alternatives based on three different production scenarios were examined and financial and sensitivity analyses and other relevant factors were considered. The Preliminary Assessment Report includes an economic evaluation of the Oyu Tolgoi Project using Inferred resources that have not yet been sufficiently drilled to have economic considerations applied to them that would enable them to be categorized as reserves. There is no certainty that the Preliminary Assessment Report will be realized. The Preliminary Assessment Report was filed with applicable Canadian securities regulatory authorities on February 2, 2004 and is available for review at www.sedar.com. 5. FULL DESCRIPTION OF MATERIAL CHANGE The Preliminary Assessment Report was prepared for Ivanhoe by the AMEC Ausenco Joint Venture ("AAJV"), a joint venture of AMEC E&C Services Ltd. and Ausenco Limited. AAJV utilized an integrated engineering team to prepare the Preliminary Assessment Report, which included personnel from AMEC E&C Services Ltd., Ausenco Limited, the mining group of GRD Minproc and SRK Consultants. AAJV prepared the Preliminary Assessment Report to assess development alternatives open to Ivanhoe and to chart an implementation path for developing five co-genetic deposits located on the Oyu Tolgoi Project. The five deposits are referred to as -2- the Southwest Oyu, Central Oyu, South Oyu, Hugo Dummett South and Hugo Dummett North deposits. A sensitivity analysis also was completed to determine the economic effects of such variable factors as capital, operating costs, smelting and refining costs and gold ("au") and copper ("cu") prices. The Preliminary Assessment Report forecasts the economic viability of both conventional open-pit and underground mining operations. The Preliminary Assessment Report includes an economic evaluation of the Oyu Tolgoi Project using Inferred resources that have not yet been sufficiently drilled to have economic considerations applied to them that would enable them to be categorized as reserves. There is no certainty that the Preliminary Assessment Report will be realized. The Preliminary Assessment Report was filed with applicable Canadian securities regulatory authorities on February 2, 2004 and is available for review at www.sedar.com. AAJV considered three alternative development concepts, each of which has different levels of capital investment and production profiles. The base case for the Preliminary Assessment Report was a two-stage build-out of the Oyu Tolgoi Project. It involves the initial construction of a process plant to handle 20 million tonnes of ore per year ("tpy"), fed by open pits on the Southwest Oyu, Central Oyu and Hugo South deposits. This first stage would be followed by a second-stage build-out that would expand the production rate to 40 million tpy in Year 5 through the development of an underground mine at the Hugo North deposit. The base case model used metal prices of US$400 per ounce ("oz"), gold and US$0.90 per pound ("1b") copper and average life-of-mine metallurgical recoveries of 89.6% copper and 65.8% gold. Approximately 78% of the resources employed in the Preliminary Assessment Report were classified as Inferred resources at the time of the study; while the remaining 22% were in the Indicated category. The three development concepts are as follows: (a) FULL-SCALE START-UP OPTION: Full-scale development in one step, with a start-up rate of 40 million tpy. (b) TWO-STAGE BUILD-OUT OPTION: A two-stage, fast-tracked development, beginning with Stage 1 development of open pits at the Southwest Oyu and Central Oyu deposits and initial production of 17 to 20 million tpy, to be followed by the Stage 2 expansion to 40 million tpy over five years through the subsequent opening of a large open pit at the Hugo South deposit and underground block-caving at the Hugo North deposit. (c) STAND-ALONE OPTION: Fast-track development of Southwest Oyu and Central Oyu as open pits, with production targeted at an annual rate of 17 to 20 million tpy beginning in 2007 -- and possibly as soon as 2006 -- modeled to demonstrate the indicated stand-alone economics of this initial building block. The Stand-Alone Option represents the first stage in a two stage development in which Ivanhoe could, depending on future variables including future copper and gold prices and favorable government fiscal and tax concessions, partially self-finance the expansion of the project using internally generated cash flow. -3- The alternative development scenarios are further summarized in the following table: OVERVIEW OF OYU TOLGOI DEVELOPMENT SCENARIOS (BASED ON US$400/OZ GOLD AND US$0.90/1B COPPER)
OPTION PRODUCTION LEVEL ---------------------------------------------------------------------------------------------------------- 1. Full-Scale Start-Up Production begins at full design capacity of 40 million tpy (120,000 tonnes of ore per day) ---------------------------------------------------------------------------------------------------------- 2. Two-Stage Build-Out Fast-track start-up at 17 to 20 million tpy (60,000 tonnes of (Base case) ore per day) in Stage 1, expanding to 40 million tpy (120,000 tonnes of ore per day) in Stage 2 ---------------------------------------------------------------------------------------------------------- 3. Stand - Alone Stand alone production at 17 to 20 million tpy (60,000 tonnes of ore (Initial Building Block) per day)
TWO-STAGE DECISION FACTOR UNITS FULL- SCALE BUILD-OUT STAND-ALONE ------------------------------------------------------------------------------------------------------------------ Initial capital US$ million 1,167 529 510 ------------------------------------------------------------------------------------------------------------------ Pre-tax payback period Years 5.6 6.2 3.7 ------------------------------------------------------------------------------------------------------------------ Total cash cost*-- first 10 years US$/lb copper $ 0.41 $0.39 $0.33 ------------------------------------------------------------------------------------------------------------------ After-tax net present value ("NPV")-- 100% equity ------------------------------------------------------------------------------------------------------------------ 5% discount US$ million 2,035 2,033 522 ------------------------------------------------------------------------------------------------------------------ 7.5% discount US$ million 1,293 1,324 359 ------------------------------------------------------------------------------------------------------------------ Internal Rate of Return ("IRR") ------------------------------------------------------------------------------------------------------------------ 100% equity financing % 17.5 21.2 18.9 ------------------------------------------------------------------------------------------------------------------ 70/30 debt- to- equity financing % 27.8 ------------------------------------------------------------------------------------------------------------------
* Cash cost includes all project general and administrative costs ("G&A"), all mine-site costs (including expensing of the pre-stripping costs of Hugo South Deposit), all treatment and refining charges and penalties, all concentrate transportation costs and all royalty, lease and property imposts. -4- Development scenarios were also modeled using a range of prices. The following table, based on a price of US$1.00/lb copper and US$400/oz gold, illustrates the potential effect of a higher copper price on project financial parameters. ALTERNATIVE OVERVIEW OF OYU TOLGOI DEVELOPMENT SCENARIOS (BASED ON US$400/OZ GOLD AND US$1.00/1B COPPER)
TWO-STAGE DECISION FACTOR UNITS FULL- SCALE BUILD-OUT STAND-ALONE ------------------------------------------------------------------------------------------------------------------ Initial capital US$ million 1,167 529 510 ---------------------------------------------------------------------------------------------------------------- Payback period Years 4.8 5.6 3.3 ---------------------------------------------------------------------------------------------------------------- Total cash cost-- first 10 years US$/lb copper $ 0.41 $ 0.39 $ 0.33 ---------------------------------------------------------------------------------------------------------------- After-tax NPV-- 100% equity ---------------------------------------------------------------------------------------------------------------- 5% discount US$ million 2,772 2,707 705 ---------------------------------------------------------------------------------------------------------------- 7.5% discount US$ million 1,845 1,814 503 ---------------------------------------------------------------------------------------------------------------- IRR ---------------------------------------------------------------------------------------------------------------- 100% equity financing % 20.8 24.9 22.4 ---------------------------------------------------------------------------------------------------------------- 70/30 debt-to-equity financing % 33.0 ----------------------------------------------------------------------------------------------------------------
KEY ELEMENTS OF A TWO-STAGE BUILD-OUT OPTION Ivanhoe is focusing on the Two-Stage Build-Out Option, as it has the potential to minimize external capital requirement by utilizing internally generated cash flow. In the Preliminary Assessment Report, AAJV used the following parameters for the Two-Stage Build-Out Option: - Stage 1 would include initial production of approximately 20 million tpy from conventional open-pit mining of the Southwest and Central deposits, with production beginning in 2007 -- and possibly as soon as 2006. - Initial capital required to bring the project into Stage 1 production from Southwest Oyu is estimated at US$529 million, which would generate annual operating cash flows of up to US$263 million per year and average approximately US$145 million per year for the first four years (based on prices of US$400/oz gold and US$1.00/lb copper). - Stage 2 would expand production to 40 million tpy in year five with the additional production from the Hugo South open pit and Hugo North block-cave underground mine. - The maximum cash drawdown requirement would be US$643 million. - At Stage 2, the project would generate after-tax cash flows ranging from US$399 to US$516 million per year for 11 years. - 5 - - Gold production is expected to average 400,000 ounces per year in the first four years. - Total copper production through to Stage 2 is expected to be a minimum of 8.9 million tonnes (19.5 billion pounds), with years 4 through 21 greater than 300,000 tpy (661.4 million pounds) and years 7 through 15 greater than 400,000 tpy (881.8 million pounds). - The initial open-pit resource is estimated at 862 million tonnes of ore grading 0.70% copper and 0.24 grams per tonne ("g/t") of gold (2.4 billion tonnes of waste at a stripping ratio of 2.8:1). AAJV concluded that Oyu Tolgoi is capable of sustaining a production rate of 40 million tpy for approximately 25 years, with annual production averaging approximately 400,000 ounces of gold per year in the early years and 480,000 tonnes of copper per year. The graph below illustrates copper and gold production under the base case model. GRAPH: COPPER AND GOLD PRODUCTION PROFILE-- TWO-STAGE BUILD-OUT OPTION [LINE GRAPH] -6- The following graph illustrates the cash-flow generated by the Two-Stage Build-Out Option at various copper and gold prices. [LINE GRAPH] The project cash-flow model was based on the fiscal regime that currently would apply to the project. The Two-Stage Build-Out Option has been modelled with tax holidays, initiated upon the start-up of each 20-million tpy stage. RESOURCES USED IN PRELIMINARY ASSESSMENT REPORT The following table lists the resources used in the Preliminary Assessment Report. RESOURCES USED IN PRELIMINARY ASSESSMENT REPORT MINERAL INVENTORY - BASE CASE TWO-STAGE BUILD-OUT
TOTAL RESOURCE MINED WASTE TOTAL TONNES CUEQ CU AU TONNES TONNES DEPOSIT (000S) % % G/T (000S) (000S) ----------------------------------------------------------------------------------------------------------- Southwest 357,185 0.78 0.48 0.48 420,667 777,852 Central 126,611 0.84 0.75 0.14 206,021 332,632 Hugo South 378,372 1.00 0.97 0.05 1,780,374 2,158,746 Hugo North 176,539 2.21 1.99 0.35 176,539 (U/G) TOTAL 1,038,707 1.11 0,95 0.26 2,407,062 3,445,769 -----------------------------------------------------------------------------------------------------------
-7- RESOURCE CLASSIFICATION IN MINERAL INVENTORY - BASE CASE TWO-STAGE BUILD-OUT
INDICATED INFERRED RESOURCE CUEQ CU AU RESOURCE CUEQ CU AU TONNES (000'S) % % G/T TONNES (000'S) % % G/T ----------------------------------------------------------------------------------------- 229,043 0.87 0.49 0.59 804,777 1.19 1.08 0.16 -----------------------------------------------------------------------------------------
Milling cut-off, which defines the total mill feed given in the tables above, is the break-even cut-off where the value of the recoverable metal in a tonne of ore equals the total of on-site and off-site processing and G&A costs (but not including mining costs). For this inventory, the milling cost used was US$2.81 per tonne (including G&A). For conservative pit design and purposes of these tables, calculations were based on US$0.85/lb copper and US$375/oz gold. For purposes of the Preliminary Assessment Report, the Hugo North underground block cave mine has been planned to target the +2% copper equivalent cut-off boundary. "CuEq" means 'copper equivalent grade'. Calculation of copper equivalent grades are based on US$0.80/lb. for copper and US$350/oz. for gold); %Cu eq. = %Cu + Au (g/t) x (11.25/17.64). The contained gold and copper represent estimated contained metal in the ground and have not been adjusted for the metallurgical recoveries of gold and copper. The determination of an adjustment factor to account for differences in relative metallurgical recoveries between gold and copper will depend upon the completion of definitive metallurgical testing. Resource classifications conform to C1M Standards on Mineral Resources and Reserves referred to in National Instrument 43-101. Mineral resources that are not reserves do not have demonstrated economic viability. An indicated mineral resource is that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. An inferred mineral resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified. SIGNIFICANT CONCLUSIONS IN THE PRELIMINARY ASSESSMENT REPORT The Preliminary Assessment Report includes several conclusions most of which will require further analysis. Included in those conclusions are the following significant items, which are subject to a number of qualifications as detailed in the Preliminary Assessment Report: - The Hugo South Deposit is amenable to open-pit mining. - Block caving has been selected as the mining method for the Hugo North Deposit. - The project's economics will be enhanced by its proximity to China, which could: - reduce the costs of transportation and electricity supply; and - permit the use of Chinese materials and Chinese contractors who employ Mongolian nationals during construction, achieving further savings over comparable costs in Western countries. -8- - Project economics will be enhanced by utilization of Mongolian nationals during operation. - China is the natural market for the copper and gold output from the project. - Ore can be treated in a conventional flotation concentrator, using conventional technology. - Water resources sufficient to supply the proposed mining operation have already been identified in the region. OPEN-PIT AND UNDERGROUND MINING CONSIDERATIONS Mining of all the deposits except Hugo North is projected to be by open pit, using the largest available, proven equipment, including, for example, 340 to 360-tonne trucks and large-capacity shovels. In the case of Hugo South, limited in-pit crushing and conveying of ore and waste rock have been incorporated into the mine plan. The open-pit cut-off strategy is to feed the highest available grade to the mills at any time and stockpile lower grade material above milling cut-off for later processing. The proposed ore-processing flow sheet is based upon a large flotation concentrator using conventional 40-foot-diameter SAG mills, ball mills and flotation. Ivanhoe has commissioned a feasibility study for the first stage of the Two-Stage Build-Out Option, being an open-pit operation centred on the Southwest and Central deposits, for completion by the end of 2004. The parameters of this feasibility study will include analyzing the potential for commencing construction in 2005 and the first copper concentrate shipments in 2007. There is an opportunity to "fast track" the development of the project by developing it based on the Stand-Alone Option. This may allow Ivanhoe to commence production operation as early as 2006. AAJV assumed that electricity initially would be provided from the Chinese grid. Ivanhoe is currently in discussions with the Mongolian government and Chinese electrical power authorities with respect to such arrangements. The Hugo South open pit may be the subject of a pre-feasibility study in 2004 provided Ivanhoe is able to upgrade some or all of the resources on the deposit to the Measured and/or Indicated classifications. The Preliminary Assessment Report assumes mining of the Hugo North deposit will utilize block caving, subject to confirmation of the assumptions used in the study. The underground development schedule for Hugo North will advance in parallel with the open-pit development by sinking a shaft on the deposit, continuing the drill assessment from underground and completing pre-feasibility and feasibility studies. Mobilization for the shaft sinking is anticipated to commence in the second quarter of 2004. Detailed studies of in-pit crushing and conveying and analysis of electric-trolley-assisted truck haulage are underway for Southwest Oyu, South Oyu, Central Oyu and Hugo South deposits to assess further reductions in operating costs. -9- There will be further detailed consideration of 42- or 44-foot SAG mills to improve the performance results included in the Preliminary Assessment Report for the SAG/ball mill circuit. This would provide a second option for the expansion of production beyond the projected 40 million tpy by milling lower-grade ore, rather than stockpiling it. Preparations are under way for the drilling of 200 millimetre core holes on Southwest Oyu to generate a representative 120-tonne sample for feasibility-level metallurgical testing to define the expected throughput of a 40-foot SAG mill and downstream components. DEVELOPMENT SCENARIO UTILIZING FAST-TRACK DEVELOPMENT The Stand-Alone Option open-pit mining on the South, Southwest and Central deposits could be fast-tracked for development. Given that the three deposits are more accessible and subject to more advanced resource classification than the adjacent Hugo Dummett deposits, they are amenable to a development plan that would form the Stage 1 building block for a two-stage development of the entire project. At prices of US$400/oz for gold and US$1.00/lb for copper, the capital required (not including interest expense) for the Two-Stage Build-Out Option would be approximately $643 million and could occur as the milling capacity of the project is being doubled from 20 million tpy to 40 million tpy. The average cash cost of copper production for the Two-Stage Build-Out Option, after gold credits and at prices of U.S.$400/oz for gold and U.S.$1.00/lb for copper are 36 cents/lb in years 1 to 5 and 40 cents/lb in years 1 to 15. These cash costs include smelting charges of US$60 per tonne of concentrate and refining charges of six cents per pound of copper. Current smelting and refining charges settled between major concentrate producers and major smelter/refineries for 2004 are slightly below US$40 dollars and 4 cents, respectively. If similar smelting and refining charges from Chinese smelters could be locked in for the life of the project, the after-tax NPV of the staged development at a 5% discount rate, US$400/oz gold price and US$1.00/lb copper price would increase from $2.707 billion to $2.907 billion and the after-tax IRR would increase from 24.9% to 27.1%. Cash costs of refined copper would be reduced by an average of 5.2 cents per pound. ADDITIONAL OPPORTUNITIES ADDITIONAL OPEN-PIT RESOURCES An additional open-pit resource totalling 203 million tonnes, grading 0.47% copper and 0.44 g/t gold and containing 950,000 tonnes (2.1 billion pounds) of copper and 2.9 million ounces of gold, has been identified in the base of the Southwest Oyu and Central Oyu pits as part of ongoing optimization engineering. These resources, which were not part of the Preliminary Assessment Report modelling, increases the total open-pit inferred resource to 1.04 billion tonnes - sufficient for more than 30 years of production at planned rates. -10- Ivanhoe intends to include this additional tonnage in a study to be presented to the Government of Mongolia on February 20, 2004 as part of the recent grant to Ivanhoe of long-term mining licenses for the Oyu Tolgoi Project. UPGRADING OF OYU TOLGOI RESOURCES Ivanhoe is conducting an in-fill drilling program that it expects will increase some or all of the Inferred resources to the 'Measured' and 'Indicated' categories. The drill-out of the Central Oyu resource to Measured or Indicated status is nearing completion and the drill-out of the Southwest Oyu resource to Measured or Indicated status is expected to be completed by May, 2004. Contract documentation has been completed for the sinking of a shaft on Hugo North to facilitate the drill-out of the resource from underground to the Measured and Indicated status. Ivanhoe is continuing a drilling program to explore the limits of the Hugo Dummett deposit, which remains open to depth. Drilling results will be updated and incorporated into the project's advancing development plans. TREATMENT OF LOWER GRADE MATERIAL In the Full-Scale Start-Up and the Two-Stage Build-Out options, a total of 310 million tonnes of lower grade material above milling grade is planned to be stockpiled over approximately 15 years before it is fed to the mill and concentrator. This material is anticipated to average 0.41% copper and 0.15 g/t gold comprising over 1.270 million tonnes of contained copper (2.8 billion pounds) and 1.5 million ounces of contained gold. Since G&A costs and the cost of mining this material are already sunk costs, only the incremental cost of milling and downstream costs apply to the production of this additional contained metal. If, instead of stockpiling this ore, a second concentrator line was enlarged, or a third concentrator line was built, Ivanhoe could process this ore earlier and add to early net cash flow. The Inferred resources in the base of the Southwest Oyu and Central Oyu pits that are not included in the Preliminary Assessment Report could replace the low-grade stockpile material later in the mine schedule. The replacement material is approximately 50% higher in grade than the stockpiled material. This would sustain cash-flow generation in later years. ON-SITE SMELTING The base-case assumption in the Preliminary Assessment Report is that concentrates will be sold to Chinese smelters, Ivanhoe is considering a blister copper smelter on the Oyu Tolgoi Project. Ivanhoe is considering a smelter with an initial capacity of 500,000 tpy of concentrate. The smelter could be incrementally expanded as needed. Current assumptions are that gold recovery could be improved by 5% and copper recovery by 1% by optimizing the concentrator to produce at a higher metallurgical recovery rate of copper and gold into a lower grade concentrate. Pyrite would be the primary impurity lowering the concentrate grade. Pyrite simply acts as a source of fuel in the smelting process. -11- An on-site smelter also has the potential to lower transport charges and smelter charges, eliminate the risk of future smelter deductions and create significant energy-generation potential. The estimated cost to build a smelter of sufficient size to process 500,000 tpy of concentrates is approximately US$220 million; while the estimated operating cost is $0.075 per pound of blister copper. Ausmelt Limited, of Melbourne, Australia, has provided input on preliminary smelter studies and will begin a pre-feasibility study for a site-based smelter that would use high-intensity smelting and converting furnaces. The smelter currently contemplated would be an efficient, state-of-the-art facility with very high rates of gas capture and environmental controls similar to an Ausmelt smelter recently constructed in China. Ivanhoe also has also identified a potential supplementary heap-leach, solvent extraction-electrowinning ("SX-EW") project based on the near-surface chalcocite blanket at Central Oyu that could be developed as a supplement to the main project. At a later stage, the SX-EW plant could be used to process copper leached from mine dumps. FINANCIAL ANALYSIS The Preliminary Assessment Report included financial analysis of the project through discounted cash-flow modelling. All cases were based on open-pit mining from the South, Central, Southwest and Hugo South deposits, underground mining from the Hugo North deposit, processing of all ore through a concentrator to produce a copper concentrate containing gold that is sold to smelters outside Mongolia. The modelling has been conducted on an after-tax basis, without escalation or inflation, and on the basis that the project will be 100% equity funded. The U.S. dollar was the currency used for the evaluation. No provisions were made for exchange-rate variations. In the model, AAJV estimated that the Oyu Tolgoi Project could generate an after-tax IRR of 24.9%, with an associated net present value of $2.707 billion at US$1.00 copper and US$400 gold and based on preliminary assessments of the project's capital costs, operating and processing costs, taxes and royalties. A leveraged project-finance case of 30% equity and 70% debt was also modelled for the Two-Stage Build-Out. The project-finance IRR is 33.0% employing a 7% interest rate, US$400/oz gold and US$1.00/1b copper. The project cash-flow model was based on the fiscal regime that currently would apply to the project. The Two-Stage Build-Out Option has been modelled with tax holidays, initiated upon the start-up of each 20-million tpy stage. -12- EBITDA Two Stage Build-out Option Year 1 to 15 US$Million per Year Gold at US$400/oz and Copper at US$0.90/1b [BAR CHART] EBITDA Two Stage Build-out Option Year 1 to 15 US$Million per Year Gold at US$400/oz and Copper at US$1.00/1b [BAR CHART] -13- SENSITIVITY ANALYSIS AAJV also conducted a sensitivity analysis, which indicates that the rate of return is most sensitive to changes in the copper price, followed by changes in the gold price, changes to the operating costs and finally changes in capital costs. For example, at US$1.10 copper and US$400 gold the after-tax IRR increases from 24.9% to 28.2% and the NPV increases from US$2.707 billion to US$3.382 billion.
PROJECT SENSITIVITY PARAMETER CHANGE IRR CHANGE NPV CHANGE -------------------------------------------------------------------------------- (%) ($M) -------------------------------------------------------------------------------- Gold Price +/- $25/oz 0.7% 42 -------------------------------------------------------------------------------- Copper Price +/- $0.05/lb 2.0% 183 -------------------------------------------------------------------------------- Initial Capital +/-$52M 2.1% 82 -------------------------------------------------------------------------------- Smelter Charges +/- $10/wmt, 1.1% 100 $0.01/lb -------------------------------------------------------------------------------- Gold Recovery +/-1% point 0.2% 10 --------------------------------------------------------------------------------
HEALTH, SAFETY AND ENVIRONMENT Ivanhoe Mines has developed a safety management system that utilizes the international safety standard OHSAS 18001. Mongolian legal compliance requirements will be managed and monitored through this system. The Western Australian Mine Safety & Inspection Regulations (1995) were adopted as the standard for mine and processing operations. Operating to this standard will also ensure compliance with International Labour Organization standards and other internationally recognized standards. The Western Australian Standards generally are more comprehensive than the Mongolian requirements identified to date. Appropriate international standards will be incorporated into design, construction and contracting activities associated with the project. The Preliminary Assessment Report has ISO 14001 environmental accreditation. WATER SUPPLY Groundwater supply investigations by an independent consultant for the Oyu Tolgoi Project have been ongoing since April 2002. Two separate investigations are underway: one is identifying groundwater resources within the licence area to provide camp and construction water, the other is a regional search for groundwater resources to provide a long-term process water supply. Three deep sedimentary groundwater systems within 100 kilometres of Oyu Tolgoi are being drilled: Galbyn Gobi, Javkhlant and Gunii Hooloi. Preliminary indications are that these -14- groundwater systems, as well as two other systems in the area, may be able to meet the water demand for a production rate of 40 million tpy. QUALIFIED PERSON The Preliminary Assessment Report was completed under the direction of Stephen Hodgson, P.Eng., technical director of mining for AMEC E&C Services Ltd. and an independent Qualified Person as defined by National Instrument 43-101. Mr. Hodgson also verified the information of a scientific and technical nature contained in this report. 6. RELIANCE ON SECTION 85 (2) OF THE ACT Not applicable 7. OMITTED INFORMATION Not applicable 8. SENIOR OFFICER For further information please contact: Beverly Bartlett Ivanhoe Mines Ltd. Suite 654 - 999 Canada Place Vancouver, British Columbia V6C 3E1 Telephone: (604) 688-5755 9. STATEMENT OF SENIOR OFFICER The foregoing accurately discloses the material change referred to herein. DATED at Vancouver, British Columbia this 11th day of February, 2004. IVANHOE MINES LTD. Per: "Beverly Bartlett" ---------------------------- Beverly Bartlett Corporate Secretary [IVANHOE MINES LOGO] February 20, 2004 Ivanhoe Mines Ltd. announced today that it has extended the expiry date of warrants to purchase 576,000 common shares issued in connection with a US$50 million private placement that closed on October 31, 2003. On February 13, 2004, the company agreed that the warrants, which were to have expired on February 15, 2004, would be extended until February 15, 2005, subject to TSX approval. The company has now received TSX approval and effective March 1, 2004, warrant holders may exercise the warrants at the original exercise price of US$8.68 per (approximately Cdn$11.50) common share until the new expiry date on February 15, 2005. All of the warrant holders are arm's length investors. IVANHOE MINES LTD. Per: Beverly A. Bartlett Corporate Secretary [OYU TOLGOI PROJECT PICTURE] IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Technical Report, in accordance with Form 43-101F1, for Ivanhoe Mines Mongolia Inc XXK (IMMI) by AMEC Ausenco Joint Venture (AAJV). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in AAJV's services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended to be used by IMMI, subject to the terms and conditions of its contract with AAJV. That contract permits IMMI to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities laws, any other use of this report by any third party is at that party's sole risk. [AMEC LOGO] CERTIFICATE OF AUTHOR Stephen B. Hodgson, P.Geo. 111 Dunsmuir Street, Suite 400 Vancouver, BC Tel: (604) 664-3445 Fax: (604) 664-3057 steve.hodgson@amec.com I, Stephen B. Hodgson, P.Eng., am a Professional Engineer, employed as Technical Director, Mining of AMEC Americas (formerly E&C Services) Limited and residing at 202 - 1099 Marinaside Crescent in the City of Vancouver in the Province of British Columbia. I am a member of the Association of Professional Engineers and Geoscientists of British Columbia. I graduated from the University of Alberta with a Bachelor of Science (with Distinction) degree in Minerals Engineering (Mining) in 1976. I have practiced my profession continuously since 1976 in mine operations and mining engineering at open pit and underground mines in Canada and United States. I have been a Consulting Mining Engineer since 1991 and have been involved in scoping studies, feasibility studies and due diligence assessments for copper, zinc, gold, tungsten, nickel, diamond, platinum/palladium, and industrial mineral properties in Canada, United States, Peru, Chile, Vietnam, Venezuela, Kyrgyzstan, Australia, New Caledonia, South Africa, and Russia. As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43-101. I visited the Oyu Tolgoi project in Mongolia between June 20 - 24, 2003 and again between September 27 - 29, 2003. I was responsible for coordinating the Scoping Study. I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report and that the omission to disclose would make this report misleading. I am independent of Ivanhoe Mines Mongolia Inc XXK in accordance with the application of Section 1.5 of National Instrument 43-101. I have read National Instrument 43-101 and Form 43-101FI and this report has been prepared in compliance with same. AMEC E&C Services Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel +1 604 664 3471 Fax +1 604 664 3057 www.amec.com [AMEC LOGO] Dated at Vancouver, British Columbia, this 25th day of January 2004. _________________________ Stephen Hodgson, P.Eng. [AMEC LOGO] CONSENT OF QUALIFIED PERSON TO: The securities regulatory authorities of each of the provinces and territories of Canada I, Stephen Hodgson, P.Eng., do hereby consent to the filing of the technical report prepared for Ivanhoe Mines Mongolia Inc XXK and dated January 25, 2004 in respect of the Oyu Tolgoi project, Mongolia. DATED at this 25th day of January 2004. ________________________________________ Stephen Hodgson, P.Eng. [AMEC LOGO] CERTIFICATE OF AUTHOR Stephen J. Juras, P.Geo. 111 Dunsmuir Street, Suite 400 Vancouver, BC Tel: (604) 664-4349 Fax: (604) 664-3057 stephen.juras@amec.com I, Stephen J. Juras, P.Geo., am a Professional Geoscientist, employed as Principal Geologist of AMEC Americas (formerly E&C Services) Limited and residing at 9030 161 Street in the City of Surrey in the Province of British Columbia. I am a member of the Association of Professional Engineers and Geoscientists of British Columbia. I graduated from the University of Manitoba with a Bachelor of Science (Honours) degree in geology in 1978 and subsequently obtained a Master of Science degree in geology from the University of New Brunswick in 1981 and a Doctor of Philosophy degree in geology from the University of British Columbia in 1987. I have practiced my profession continuously since 1987 and have been involved in: mineral exploration for copper, zinc, gold and silver in Canada and United States and in underground mine geology, ore control and resource modelling for copper, zinc, gold, silver, tungsten, platinum/palladium and industrial mineral properties in Canada, United States, Peru, Chile, Vietnam and Russia. As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43-101. I am currently a Consulting Geologist and have been so since January 1998. From October 17, 2003 until October 24, 2003 I visited the Oyu Tolgoi project in Mongolia. I was responsible for the review of matters related to geology, assay data quality and mineral resources for the Oyu Tolgoi Project. Sections of this report prepared under my direct supervision were sections 7, 8, 9, 10, 11, 12, 13, 14, and 17. I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report and that the omission to disclose would make this report misleading. I am independent of Ivanhoe Mines Limited in accordance with the application of Section 1.5 of National Instrument 43-101. I have read National Instrument 43-101 and Form 43-101FI and this report has been prepared in compliance with same. [AMEC LOGO] Dated at Vancouver, British Columbia, this 25th day of January 2004. ________________________ Stephen J. Juras, Ph.D., P.Geo. [AMEC LOGO] CONSENT OF QUALIFIED PERSON TO: The securities regulatory authorities of each of the provinces and territories of Canada I, Stephen Juras, Ph.D., P.Geo., do hereby consent to the filing of the technical report prepared for Ivanhoe Mines Limited and dated January 25, 2004 in respect of the Oyu Tolgoi project, Mongolia. DATED at this 25th day of January 2004. ________________________________ Stephen Juras, Ph.D., P. Geo. CERTIFICATE OF QUALIFIED PERSON Geoffrey Bull I, Geoffrey Bull, C Eng, am a Chartered Engineer, employed as Principal Mining Engineer, SRK Consulting, 1064 hay Street, West Perth, Western Australia 6005 and residing at 102A Corinthian Street West, Shelley, Western Australia. I am a member of the Australian Institute Of Mining and Metallurgy, Member of the Institute Of Mining, Metallurgy and Materials and a Chartered Engineer, Engineering Council of UK (Reg. No. 505472). I graduated from the University of the Witwatersrand with a Bachelor of Science (Engineering) degree in Mining Engineering in 1974. I have practiced my profession continuously since 1974 in mining operations and mining engineering for underground mines in Australia, Bulgaria, Philippines , Mongolia, South Africa, South America, Tanzania and Zimbabwe. I have worked in mining operations in various technical and managerial positions including general manager and technical director, and as a mining engineering consultant. A significant portion of my experience relates to bulk mining methods, particularly caving methods. I have been a Consulting Mining Engineer since 1993 and have been involved in scoping studies, feasibility studies and due diligence assessments for copper, gold, nickel, diamond, iron, and chrome properties in Australia, Philippines, Mongolia, South America, Tanzania, Zimbabwe. As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43-101. I have not visited the Oyu Tolgoi project in Mongolia. I was responsible for overseeing SRK Consulting's input into the Scoping Study, specifically the sections on underground mining (Appendix to Scoping Study) and have verified the correct usage of SRK data by AMEC in Sections 19.4, 19.12 and 19.13 (underground mining) of the Scoping Study. I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report and that the omission to disclose would make this report misleading. I am independent of Ivanhoe Mines Mongolia Inc XXK in accordance with the application of Section 1.5 of National Instrument 43-101. I have read National Instrument 43-101 and Form 43-101FI and this report has been prepared in compliance with same. Dated at West Perth, Western Australia, this 24th day of January 2004 /s/ Geoffrey Bull Geoffrey Bull, C Eng SRK Consulting 1064 Hay Street West Perth, Western Australia 6005 Tel +61 8 9288 2000 Fax +61 8 9288 2001 www.srk.com CONSENT OF QUALIFIED PERSON TO: The securities regulatory authorities of each of the provinces and territories of Canada I, Geoffrey Bull, BSc (Eng), C.Eng, do hereby consent to the filing of the technical report prepared for Ivanhoe Mines Limited and dated January 25, 2004 in respect of the Oyu Tolgoi project, Mongolia. DATED at this 25th day of January 2004. /s/ Geoffrey Bull ------------------------------------------------ Geoffrey Bull, BSc (Eng), C.Eng, MAusIMM, MIMMM AMEC E&C Services Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel +1 604-664-3471 Fax +1 604-664-3057 LEVEL 8 / 140 ST GEORGES TERRACE TELEPHONE: 61 8 9347 4777 PERTH WESTERN AUSTRALIA 6000 FACSIMILE: 61 8 9347 4747 GPO BOX 25266 WWW.MINPROC.COM.AU PERTH WESTERN AUSTRALIA 6831 ABN 52 008 992 694 [GRDMINPROC LOGO] CERTIFICATE OF AUTHOR Ross G. Oliver Level 8/140 St Georges Terrace Perth, Western Australia Tel: 61 8 9347 4777 Fax: 61 8 9347 4747 ross.oliver@minproc.com.au I, Ross G. Oliver, am a Mining Engineer, employed as Manager of Mining and Geology of GRD Minproc Limited and residing at 35 Stewart Road, High Wycombe in Western Australia. I am a member of the Australian Institute of Mining and Metallurgy (AusIMM). I graduated from Queensland University with a Bachelor of Engineering Degree (Mining) in 1975. I have practiced my profession continuously since 1976 in mine operations, mine planning and mining management roles at open pit mines in Australia, New Zealand and the United States. I have been a Consulting Mining Engineer since 1998 and have been involved in technical reviews, scoping studies, feasibility studies and due diligence assessments for copper, gold, iron ore, nickel, diamonds and mineral sands in Peru, New Zealand, Myanmar, Romania, Australia, South Africa, Zambia, Algeria and the Philippines. As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43-101. I visited the Oyu Tolgoi project site in Mongolia in January, 2003. I have overall responsibility for GRD Minproc Limited's open pit mining input to the Preliminary Assessment Report, specifically the nominated report sections 19.3 Open Pit Mining, 19.4.10 Hugo North Underground Exploration Program, 19.12.11 Open Pit Capital Costs, 19.13.2 Open Pit Mine Operating Costs, 20.2.4 Open Pit Mining, 20.3.3 Open Pit Mining and Appendix C Production Forecasts. I am not aware of any material fact or material change with respect to the content of the specific nominated sections of this technical report that is not reflected in these report sections and that the omission to disclose would make this report misleading. I am independent of Ivanhoe Mines Mongolia Inc XXK in accordance with the application of Section 1.5 of National Instrument 43-101. I have read National Instrument 43-101 and Form 43-101FI and this report has been prepared in compliance with same. Dated at Perth, Australia, this 25th day of January 2004. _____________________ Ross G. Oliver TECHNICAL + DEVELOPMENT SOLUTIONS PROJECT DELIVERY ADVISORY ASSET MANAGEMENT LEVEL 8 / 140 ST GEORGES TERRACE TELEPHONE: 61 8 9347 4777 PERTH WESTERN AUSTRALIA 6000 FACSIMILE: 61 8 9347 4747 GPO BOX 25266 WWW.MINPROC.COM.AU PERTH WESTERN AUSTRALIA 6831 ABN 52 008 992 694 [GRDMINPROC LOGO] CONSENT OF QUALIFIED PERSON TO: The securities regulatory authorities of each of the provinces and territories of Canada I, Ross G. Oliver, BE (Mining), do hereby consent to the filing of the technical report prepared for Ivanhoe Mines Limited and dated January 2004 in respect of the Oyu Tolgoi project, Mongolia, specifically report sections 19.3 Open Pit Mining, 19.4.10 Hugo North Underground Exploration Program, 19.12.11 Open Pit Capital Costs, 19.13.2 Open Pit Mine Operating Costs, 20.2.4 Open Pit Mining, 20.3.3 Open Pit Mining and Appendix C Production Forecasts. Dated at Perth, Australia, this 25th day of January 2004. ____________________ Ross G. Oliver TECHNICAL + DEVELOPMENT SOLUTIONS PROJECT DELIVERY ADVISORY ASSET MANAGEMENT [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CONTENTS 1.0 EXECUTIVE SUMMARY ........................................................ 1-1 1.1 Introduction ................................................... 1-1 1.2 Property Description and Tenure ................................ 1-2 1.3 Geology and Mineral Resource ................................... 1-3 1.4 Scenarios ...................................................... 1-7 1.5 Open Pit Mining ................................................ 1-8 1.6 Underground Mining ............................................. 1-10 1.7 Process Plant .................................................. 1-11 1.8 Infrastructure ................................................. 1-12 1.9 Project Implementation ......................................... 1-13 1.10 Capital Costs .................................................. 1-13 1.11 Operating Costs ................................................ 1-14 1.12 Financial Analysis ............................................. 1-15 1.13 Opportunities and Risk ......................................... 1-16 1.13.1 Opportunities ........................................... 1-16 1.13.2 Risks ................................................... 1-17 1.14 Conclusions and Recommendations ................................ 1-18 1.14.1 Conclusions ............................................. 1-18 1.14.2 Recommendations ......................................... 1-19 2.0 INTRODUCTION AND TERMS OF REFERENCE ...................................... 2-1 2.1 Terms of Reference ....................................................... 2-2 3.0 DISCLAIMER ............................................................... 3-1 4.0 PROPERTY DESCRIPTION AND LOCATION ........................................ 4-1 4.1 Mineral Tenure ................................................. 4-1 4.2 Permits and Agreements ......................................... 4-1 4.3 Environmental Impact Assessment ................................ 4-2 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................. 5-1 5.1 Location ....................................................... 5-1 5.2 Regional Centres and Infrastructure ............................ 5-1 5.3 Climate ........................................................ 5-1 5.4 Physiography ................................................... 5-2 5.5 Seismicity ..................................................... 5-2 5.6 Transportation Infrastructure .................................. 5-3 5.7 Other Resources ................................................ 5-4 6.0 HISTORY .................................................................. 6-1 7.0 GEOLOGICAL SETTING ....................................................... 7-1 7.1 Regional Geology ............................................... 7-1 7.2 Oyu Tolgoi Property Geology .................................... 7-1 7.3 Southwest Deposit .............................................. 7-4 7.4 South Deposit .................................................. 7-5 7.5 Central Deposit ................................................ 7-6 7.6 Hugo Dummett Deposit ........................................... 7-7
Project No.: AAJV001 TOC i [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CONTENTS 8.0 DEPOSIT TYPES ............................................................ 8-1 9.0 MINERALIZATION ........................................................... 9-1 9.1 Southwest Deposit ............................................... 9-1 9.2 South Deposit ................................................... 9-1 9.3 Central Deposit ................................................. 9-1 9.4 Hugo Dummett Deposit ............................................ 9-2 9.5 Oxidized Zone ................................................... 9-2 10.0 EXPLORATION .............................................................. 10-1 11.0 DRILLING ................................................................. 11-1 12.0 SAMPLING METHOD AND APPROACH ............................................. 12-1 13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ................................ 13-1 13.1 Sample Preparation and Shipment ................................. 13-1 13.2 Assay Method .................................................... 13-2 13.3. QA/QC Program ................................................... 13-2 13.3.1 Standards Performance .................................... 13-3 13.3.2 Blank Sample Performance ................................. 13-4 13.3.3 Duplicates Performance ................................... 13-7 13.3.4 Reassay of Samples from Southwest Deposit ................ 13-9 13.3.5 Specific Gravity Program ................................. 13-12 14.0 DATA VERIFICATION ........................................................ 14-1 15.0 ADJACENT PROPERTIES ...................................................... 15-1 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ............................. 16-1 16.1 Introduction .................................................... 16-1 16.2 Metallurgical Testwork Review ................................... 16-2 16.3 Metallurgical Balances .......................................... 16-7 16.4 Flotation Concentrate Penalty Elements .......................... 16-8 16.5 Metallurgical Parameters ........................................ 16-10 16.6 Conclusions ..................................................... 16-11 16.7 Future Testwork ................................................. 16-11 16.6.1 Bench Scale Testwork ..................................... 16-11 16.6.2 Pilot Scale Testing ...................................... 16-12 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ........................... 17-1 17.1 Geologic Models and Data Analysis ............................... 17-1 17.1.1 Histograms and Log-Probability Plots ..................... 17-3 17.1.2 Contact Profile Analysis ................................. 17-4 17.1.3 Modelling Implications ................................... 17-5 17.2 Evaluation of Extreme Grades .................................... 17-5 17.3 Variography 17-6 17.4 Model Set-Up .................................................... 17-8 17.5 Estimation ...................................................... 17-9 17.5.1 Validation ............................................... 17-10 17.6 Mineral Resource Classification ................................. 17-12 17.7 Mineral Resource Summary ........................................ 17-12
Project No.: AAJV001 TOC ii [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CONTENTS 18.0 OTHER RELEVANT DATA AND INFORMATION 18-1 19.0 REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT AND PRODUCTION PROPERTIES ....... 19-1 19.1 Introduction ............................................................. 19-1 19.2 Screening Study .......................................................... 19-2 19.3 Open Pit Mining (GRD Minproc) ............................................ 19-4 19.3.1 Introduction .................................................. 19-4 19.3.2 Preliminary Open Pit Mine Design .............................. 19-6 19.3.3 Mine Design for 20 Mt/a Case (2c) ............................. 19-7 19.3.4 Pit Designs for 40 Mt/a Case (4b) ............................. 19-10 19.3.5 Pit Stages for 20-40 Mt/a Case (4a) ........................... 19-15 19.3.6 Open Pit Mining Inventory ..................................... 19-15 19.3.7 Mining Inventory Summary ...................................... 19-16 19.3.8 Production Schedules .......................................... 19-16 19.3.9 Open Pit Operation and Equipment .............................. 19-22 19.4 Underground Mining - Hugo North .......................................... 19-23 19.4.1 Introduction .................................................. 19-23 19.4.2 Geotechnical Assessment ....................................... 19-23 19.4.3 Hugo North Description ........................................ 19-24 19.4.4 Mining Method ................................................. 19-24 19.4.5 Block Cave Design Criteria (Extracted from SRK, Appendix B) ... 19-25 19.4.6 Hugo North Mining Inventory ................................... 19-28 19.4.7 Dilution and Recovery ......................................... 19-29 19.4.8 Production Forecast and Criteria .............................. 19-29 19.4.9 Primary Development and Schedule .............................. 19-32 19.4.10 Hugo North Underground Exploration Program (GRD Minproc) ...... 19-34 19.4.11 Mobile Equipment (Adapted from SRK, Appendix B) ............... 19-36 19.4.12 Material Handling System and Equipment ........................ 19-37 19.4.13 Mine Infrastructure ........................................... 19-40 19.4.14 Mine Organisation (Extracted from SRK Report, Appendix B) ..... 19-41 19.4.15 Further Work Required ......................................... 19-43 19.5 Process Description ...................................................... 19-45 19.5.1 Information and Data Base ..................................... 19-45 19.5.2 Design Criteria and Flowsheet ................................. 19-45 19.5.3 Crushing and Stockpiling ...................................... 19-49 19.5.4 Grinding ...................................................... 19-50 19.5.5 Flotation and Regrind ......................................... 19-51 19.5.6 Concentrate Handling .......................................... 19-52 19.5.7 Instrumentation & Control ..................................... 19-52 19.5.8 Concentrator Infrastructure including Reagent Handling ........ 19-52 19.5.9 Plant Layout .................................................. 19-53 19.6 Tailings ................................................................. 19-55 19.6.1 Tailings Physical Properties .................................. 19-55 19.6.2 Predicted Tailings Behaviour .................................. 19-55 19.6.3 Geochemical Characterisation of Waste Rock and Tailings ....... 19-57 19.6.4 Tailings Design Criteria ...................................... 19-61 19.6.5 Tailings Storage Facility Design .............................. 19-63
Project No.: AAJV001 TOC iii [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CONTENTS 19.6.6 Waste Rock Dump Design Criteria ............................... 19-66 19.6.7 Requirements for Further Work ................................. 19-67 19.7 Site and Regional Infrastructure ......................................... 19-69 19.7.1 Site Development .............................................. 19-69 19.7.2 Mine Support Infrastructure ................................... 19-70 19.7.3 Site Accommodation Facilities ................................. 19-71 19.7.4 Site Utilities and Services ................................... 19-74 19.7.5 Regional Infrastructure ....................................... 19-77 19.8 Water Supply ............................................................. 19-79 19.8.1 Introduction .................................................. 19-79 19.8.2 Borefield Water Demands ....................................... 19-80 19.8.3 Borefield Development ......................................... 19-81 19.8.4 Galbyn Gobi Borefield ......................................... 19-81 19.8.5 Environmental Constraints ..................................... 19-82 19.8.6 Interim Construction Camp and Construction Water Supply ....... 19-82 19.8.7 Power Supply and Pipeline Concepts ............................ 19-83 19.8.8 Ongoing Water Supply Activities ............................... 19-83 19.9 Electrical Power and Heating ............................................. 19-84 19.9.1 Introduction .................................................. 19-84 19.9.2 Project-Owned Coal-Fired Power Station ........................ 19-84 19.9.3 Supply of Power by Others from an Existing Major Power Grid ... 19-85 19.9.4 Power Demand .................................................. 19-86 19.9.5 System Description ............................................ 19-87 19.9.6 Heating ....................................................... 19-87 19.10 Transportation Infrastructure ............................................ 19-91 19.10.1 Introduction .................................................. 19-91 19.10.2 Airstrip ...................................................... 19-91 19.10.3 Access Road ................................................... 19-91 19.10.4 Concentrate Handling .......................................... 19-92 19.10.5 General Freight ............................................... 19-92 19.11 Project Execution ........................................................ 19-93 19.11.1 Introduction .................................................. 19-93 19.11.2 Feasibility Study ............................................. 19-93 19.11.3 Engineering ................................................... 19-96 19.11.4 Construction .................................................. 19-97 19.11.5 Cases 4a and 4b ............................................... 19-98 19.11.6 Uncertainties ................................................. 19-98 19.11.7 Alternate Approaches .......................................... 19-99 19.12 Capital Cost Estimate .................................................... 19-101 19.12.1 Capital Cost Summary .......................................... 19-101 19.12.2 Estimating Methodology ........................................ 19-102 19.12.3 China Factor .................................................. 19-105 19.12.4 Exchange Rates ................................................ 19-106 19.12.5 Basis of Estimate - Direct Costs .............................. 19-106 19.12.6 Basis of Estimate - Indirect Costs ............................ 19-107 19.12.7 Assumptions and Exclusions .................................... 19-109 19.12.8 Working Capital ............................................... 19-110 19.12.9 Sustaining Capital ............................................ 19-110
Project No.: AAJV001 TOC iv [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CONTENTS 19.12.10 Mining Capital....................................................... 19-111 19.12.11 Open Pit Capital Costs (GRD Minproc)................................. 19-111 19.12.12 Underground Capital Costs ........................................... 19-112 19.13 Operating Costs................................................................ 19-117 19.13.1 Operating Costs Summary.............................................. 19-117 19.13.2 Open Pit Mine Operating Costs (GRD Minproc).......................... 19-117 19.13.3 Mining Rate vs Mine Operating Cost for Large Open Pit Operations..... 19-124 19.13.4 Process Costs ....................................................... 19-126 19.13.5 General and Administration........................................... 19-129 19.14 Financial Analysis............................................................. 19-133 19.14.1 Introduction......................................................... 19-133 19.14.2 Introduction to the Financial Analysis............................... 19-133 19.14.3 Project Results...................................................... 19-134 19.14.4 Comparison of Cases.................................................. 19-141 19.14.5 Project Cashflow..................................................... 19-142 19.14.6 Production and Costs................................................. 19-146 19.14.7 Sensitivity Analysis................................................. 19-148 19.14.8 Basis for Financial Analysis......................................... 19-149 19.14.9 Double Tax Holiday................................................... 19-155 19.14.10 Debt Financing Case.................................................. 19-155 20.0 OPPORTUNITIES AND RISK.................................................................. 20-1 20.1 Introduction................................................................... 20-1 20.2 Opportunities.................................................................. 20-1 20.2.1 Fast Track Development............................................... 20-1 20.2.2 Orebody Extensions and New Discoveries............................... 20-2 20.2.3 Treatment of Low Grade Stockpiles.................................... 20-2 20.2.4 Open Pit Mining (GRD Minproc)........................................ 20-2 20.2.5 In-pit Crushing...................................................... 20-3 20.2.6 Underground Mining................................................... 20-4 20.2.7 Enhancement of Existing Grinding Capacity............................ 20-4 20.2.8 Larger Grinding Mills................................................ 20-5 20.2.9 Smelting............................................................. 20-6 20.2.10 Improved Metal Recovery.............................................. 20-7 20.2.11 Heap Leaching/SX-EW.................................................. 20-8 20.2.12 Molybdenum and Rhenium............................................... 20-9 20.2.13 Intec................................................................ 20-9 20.2.14 Paste Tailings....................................................... 20-10 20.3 Risks.......................................................................... 20-10 20.3.1 Penalty Elements..................................................... 20-10 20.3.2 Resource Definition.................................................. 20-12 20.3.3 Open Pit Mining (GRD Minproc)........................................ 20-12 20.3.4 China Factor......................................................... 20-13 20.3.5 Underground Mining................................................... 20-14 20.3.6 Concentrate Marketing................................................ 20-15 20.3.7 Process Plant Design................................................. 20-16 20.3.8 Water Supply......................................................... 20-16 20.4 Other Uncertainties............................................................ 20-15
Project No.: AAJV001 TOC v [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CONTENTS 21.0 CONCLUSIONS AND RECOMMENDATIONS ....................................................................... 21-1 21.1 Conclusions .................................................................................. 21-1 22.0 REFERENCES ............................................................................................ 22-1
TABLES Table 1-1: Oyu Tolgoi Project Mineral Resource Summary - Total Project (November 2003) ............. 1-4 Table 1-2: Oyu Tolgoi Project Mineral Resource Summary - by Deposit (November 2003) ................ 1-5 Table 1-3: Mining Inventory ........................................................................ 1-6 Table 1-4: Resource Classification in Mining Inventory ............................................. 1-6 Table 1-5: NSR Cut-off Values Used in Open Pit Mining Inventory Classification ..................... 1-6 Table 1-6: Metallurgical Parameters ................................................................ 1-7 Table 1-7: Average Life of Mine Metallurgical Recoveries ........................................... 1-7 Table 1-8: Production Forecasts Summary ............................................................ 1-9 Table 1-9: Initial and Sustaining Capital Cost Summary (US$ million) ............................... 1-14 Table 1-10: Average Life of Mine Operating Costs .................................................... 1-14 Table 1-11: Summary of Financial Results ............................................................ 1-15 Table 1-12: Parameter Sensitivity (Case 4b) ......................................................... 1-16 Table 1-13: Parameter Sensitivity (Case 2c) ......................................................... 1-16 Table 1-14 Parameter Sensitivity (Case 4a) ......................................................... 1-16 Table 13-1: (% Diff) at 90th Population Percentile of Duplicate Sample Analyses, Southwest, South and Central Deposits, Oyu Tolgoi Project .......................................... 13-8 Table 13-2: (% Diff) at 90th Population Percentile of Duplicate Sample Analyses, Hugo Deposit, Oyu Tolgoi Project ...................................................................... 13-8 Table 16-1: Comminution Average Data for Oyu Tolgoi Composites ...................................... 16-2 Table 16-2: GRG Testwork Results and Full-Scale Discounts ........................................... 16-3 Table 16-3: Southwest Locked Cycle Test Results ..................................................... 16-5 Table 16-4: Central Deposit Locked Cycle Test Results ............................................... 16-5 Table 16-5: Hugo South Deposit (Southern Part) Locked Cycle Test Results ............................ 16-6 Table 16-6: Batch Test Results for Hugo North Composite Samples ..................................... 16-6 Table 16-7: Metallurgical Balance for Different Deposits, Cases 4a and 4b ........................... 16-7 Table 16-8: Metallurgical Parameters ................................................................ 16-10 Table 16-9: Average Life of Mine Metallurgical Recoveries ........................................... 16-10 Table 17-1: Mineralized Domains, Oyu Tolgoi Project ................................................. 17-2 Table 17-2: Cap Grades for Cu, Au and Mo Assays, Oyu Tolgoi Project ................................. 17-6 Table 17-3: Oyu Tolgoi Project Mineral Resource Summary, Total Project (November 2003) .............. 17-13 Table 17-4: Oyu Tolgoi Project Mineral Resource Summary - by Deposit (November 2003) ................ 17-14 Table 19.3-1: NSR Cut-Off Values Used in Mining Inventory Classification .............................. 19-15 Table 19.3-2: Mineral Resource Classification in Open Pit Mining Inventory ............................ 19-18 Table 19.3-3: Open Pit Mining Inventory Summary for Case 2c ........................................... 19-18 Table 19.3-4: Open Pit Mining Inventory Summary for Case 4b ........................................... 19-19 Table 19.3-5: Open Pit Mining Inventory Summary for Case 4a ........................................... 19-20 Table 19.3-6: Production Schedule Cases Summary ....................................................... 19-21 Table 19.4-1: Hugo North Mining Inventory ............................................................. 19-29
Project No.: AAJV001 TOC vi [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLES Table 19.4-2: Production forecast (k tonnes) ........................................... 19-32 Table 19.4-3: Hugo North Development Summary ........................................... 19-33 Table 19.4-4: Milestone Dates .......................................................... 19-35 Table 19.4-5: Cost Estimate ............................................................ 19-35 Table 19.4-6: Conveyor System .......................................................... 19-39 Table 19.4-7: Initial Manning Requirement .............................................. 19-42 Table 19.4-8: Ultimate Manning Requirements ............................................ 19-43 Table 19.5-1: Summary Process Design Criteria .......................................... 19-48 Table 19.6-1: Estimated Tailings Behaviour Characteristics (at 60% solids) ............. 19-56 Table 19.6-2: Supernatant Release ...................................................... 19-56 Table 19.6-3: Acid Forming Classification .............................................. 19-58 Table 19.6-4: Results of ABA Testing on Waste Material ................................. 19-60 Table 19.6-5: Design Criteria - Tailings Storage Facility .............................. 19-62 Table 19.7-1: Summary of Site Based Personnel .......................................... 19-72 Table 19.7-2: Accommodation Requirements for Case 2c ................................... 19-73 Table 19.7-3: Accommodation Requirements for Case 4a ................................... 19-73 Table 19.7-4: Accommodation Requirements for Case 4b ................................... 19-73 Table 19.7-5: Typical Water Analysis ................................................... 19-74 Table 19.8-1: Aquifer Supply Potential ................................................. 19-79 Table 19.8-2: Water Demand ............................................................. 19-80 Table 19.8-3: Borefield Development .................................................... 19-81 Table 19.9-1: Power Demand ............................................................. 19-86 Table 19.9-2: Underground Mine Air Heating Demand ...................................... 19-88 Table 19.9-3: Heating Demand ........................................................... 19-88 Table 19.12-1: Initial Capital Cost Summary (US$ million) ............................... 19-101 Table 19.12-2: Sustaining Capital Cost Years 1-4 Summary (US$ million) .................. 19-101 Table 19.12-3: Initial and Life of Mine Sustaining Capital Summary (US$ million) ........ 19-102 Table 19.12-4: China Factor Comparison .................................................. 19-105 Table 19.12-5: Indicative Cost Comparison ............................................... 19-106 Table 19.12-6: Currency Exchange Rates .................................................. 19-106 Table 19.12-7: EPCM Factored Allowance .................................................. 19-107 Table 19.12-8: Contingency Allowance by Area ............................................ 19-109 Table 19.12-9: Open Pit Preproduction and Dewatering Capital Cost Estimate .............. 19-111 Table 19.12-10: Open Pit Start-Up and Total Capital Cost Estimates Summary ............... 19-112 Table 19.12-11: Capital Cost Summary (US$ x000) .......................................... 19-113 Table 19.12-12: Development Unit Costs ................................................... 19-114 Table 19.13-1: Operating Cost Summary - Case 2c ......................................... 19-118 Table 19.13-2: Operating Cost Summary - Case 4a ......................................... 19-119 Table 19.13-3: Operating Costs Summary - Case 4b ........................................ 19-121 Table 19.13-4: Open Pit Operating Cost Estimates Summary ................................ 19-123 Table 19.13-5: Operating Cost Summary (US$ x000) ........................................ 19-125 Table 19.13-6: Unit Operating Costs ..................................................... 19-126 Table 19.13-7: Average Process Plant Operating Costs - Case 2c .......................... 19-127 Table 19.13-8: Average Process Plant Operating Costs - Case 4a .......................... 19-127 Table 19.13-9: Average Process Plant Operating Costs - Case 4b .......................... 19-127 Table 19.13-10: Average G&A Operating Costs - Case 2c .................................... 19-130 Table 19.13-11: Average G&A Operating Costs - Case 4a .................................... 19-130
Project No.: AAJV001 TOC vii [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLES Table 19.13-12: Average G&A Operating Costs - Case 4b ................................. 19-130 Table 19.14-1: NPV - 5.0% Discount Rate .............................................. 19-135 Table 19.14-2: NPV - 7.5% discount Rate .............................................. 19-135 Table 19.14-3: NPV - 10.0% Discount Rate ............................................. 19-135 Table 19.14-4: IRR ................................................................... 19-135 Table 19.14-5: Payback Period ........................................................ 19-136 Table 19.14-6: Total Cash Costs (after gold credits) - Life of Mine .................. 19-136 Table 19.14-7: Total Cash Costs (after gold credits) - Average First 5 Years ......... 19-136 Table 19.14-8: Total Cash Costs (after gold credits) - Average First 10 Years ........ 19-136 Table 19.14-9: NPV - 5.0% Discount Rate .............................................. 19-137 Table 19.14-10: NPV - 7.5% Discount Rate .............................................. 19-137 Table 19.14-11: NPV - 10.0% Discount Rate ............................................. 19-137 Table 19.14-12: IRR ................................................................... 19-137 Table 19.14-13: Payback Period ........................................................ 19-138 Table 19.14-14: Total Cash Costs (after gold credits) - Life of Mine .................. 19-138 Table 19.14-15: Total Cash Costs (after gold credits) - Average First 5 Years ......... 19-138 Table 19.14-16: Total Cash Costs (after gold credits) - Average First 10 Years ........ 19-138 Table 19.14-17: NPV - 5.0% Discount Rate .............................................. 19-139 Table 19.14-18: NPV - 7.5% Discount Rate .............................................. 19-139 Table 19.14-19: NPV - 10.0% Discount Rate ............................................. 19-139 Table 19.14-20: IRR ................................................................... 19-139 Table 19.14-21: Payback Period ........................................................ 19-140 Table 19.14-22: Total Cash Costs (after gold credits) - Life of Mine .................. 19-140 Table 19.14-23: Total Cash Costs (after gold credits) - Average First 5 Years ......... 19-140 Table 19.14-24: Total Cash Costs (after gold credits) - Average First 10 Years ........ 19-140 Table 19.14-25: Operating Surplus and Cashflows (Case 4a) ............................. 19-145 Table 19.14-26: Production ............................................................ 19-146 Table 19.14-27: Operating Costs ....................................................... 19-146 Table 19.14-28: Capital Costs ......................................................... 19-147 Table 19.14-29: Production Statistics ................................................. 19-148 Table 19.14-30: Case 4b ............................................................... 19-148 Table 19.14-31: Case 2c ............................................................... 19-149 Table 19.14-32: Case 4a ............................................................... 19-149 Table 19.14-33: Concentrate Grades by Ore Source ...................................... 19-150 Table 19.14-34: Smelter Terms ......................................................... 19-151 Table 19.14-35: NPV - 10% Discount Rate ............................................... 19-155 Table 19.14-36: Impact of Debt on Case 4a ............................................. 19-156
Project No.: AAJV001 TOC viii [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURES Figure 4-1: Location Map ........................................................................ 4-3 Figure 4-2: Oyu Tolgoi Licence in Relation to Neighbouring Tenements ............................ 4-4 Figure 5-1 Transportation Infrastructure ....................................................... 5-3 Figure 7-1 Stratigraphic Units ................................................................. 7-3 Figure 11-1: November 2003 Drill Hole Collar Plan - Hugo Deposit ................................. 11-3 Figure 13-1: SRM Failure Chart ................................................................... 13-4 Figure 13-2: Blank Sample Results for Gold ....................................................... 13-5 Figure 13-3: Blank Sample Results for Copper ..................................................... 13-6 Figure 13-4: Blank Sample Results for Molybdenum ................................................. 13-7 Figure 13-5: Relative Difference Gold Bias Plot .................................................. 13-11 Figure 13-6: Relative Difference Copper Bias Plot ................................................ 13-12 Figure 16-1: Oyu Tolgoi Closed Flotation Flowsheet ............................................... 16-4 Figure 19.3-1: Central and Southwest Pit Stages for 20 Mt/a Case ................................... 19-8 Figure 19.3-2: Ultimate Pit Design for 20 Mt/a Case ................................................ 19-9 Figure 19.3-3: Hugo South Pit Stages for 40 Mt/a Case .............................................. 19-11 Figure 19.3-4: Central and Southwest Pit Stages for 40 Mt/a Case ................................... 19-12 Figure 19.3-5: Southwest and Central Ultimate Pit Design for 40 Mt/a Case .......................... 19-13 Figure 19.3-6: Southwest and Central Pit Sages for 20-40 Mt/a Case ................................. 19-14 Figure 19.4-1: Extraction Level Layout Showing Projection of Undercut Cross-Cuts on the Level Above ............................................................................... 19-26 Figure 19.4-2: Section Through a Draw Point, Draw Bell and the Inclined Undercut ................... 19-27 Figure 19.5-1: Simplified Flowsheet ................................................................ 19-47 Figure 19.8-1: Potential Groundwater Resources ..................................................... 19-80 Figure 19.13-1: Mining Rate vs Mine Operating Cost for Large Open Pit Operations .................... 19-124 Figure 19.14-1: Case 4b - Cumulative Cashflow Chart - 100% Equity ................................... 19-142 Figure 19.14-2: Case 2c - Cumulative Cashflow Chart - 100% Equity ................................... 19-143 Figure 19.14-3: Case 4a - Cumulative Cashflow Chart - 100% Equity ................................... 19-143
APPENDICES A Drawings B SRK Report C Production Forecasts D Implementation Schedule Project No.: AAJV001 TOC ix [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 1.0 EXECUTIVE SUMMARY 1.1 INTRODUCTION Ivanhoe Mines Mongolia Inc XXK (IMMI) is developing the Oyu Tolgoi Project in Mongolia. This property has been the subject of an intense exploration program that has successfully delineated a large copper-gold resource. In February 2003, IMMI initiated a Scoping Study as the first phase of engineering that would lead to a Feasibility Study. IMMI commissioned AMEC Ausenco Joint Venture (AAJV), a joint venture of AMEC E&C Services Limited (AMEC) and Ausenco International Pty Ltd (Ausenco), to act as the lead consultant for the Scoping Study. In addition to coordinating the activities of the other consultants, AAJV prepared the preliminary mine plans for the northern extension of the Hugo Dummett deposit (Hugo North), provided process and infrastructure engineering, assembled the capital cost estimates, completed a financial model, and provided project controls services. Other consultants engaged to complete specific components of the project were: - GRD Minproc Limited (GRD Minproc) - Open pit mine planning - SRK Consulting (SRK) - Underground mine planning and rock mechanics - Knight Piesold Pty Limited (Knight Piesold) - Tailings disposal and site geotechnical assessment - Aquaterra Consulting Pty Ltd (Aquaterra) - Water supply and mine dewatering(1) - Sustainability Pty Ltd (Sustainability) - Safety, environmental, community - SGS Lakefield Research Limited (SGS Lakefield) - Metallurgical testwork - Terra Mineralogical Services (Terra Mineralogical) - Mineralogical assessment - Minnovex Technologies Inc - Metallurgical testwork This Preliminary Assessment documents the results of the Scoping Study, and constitutes an independent Qualified Person's Review and Technical Report. Stephen Hodgson, P.Eng., an employee of AMEC, served as the Qualified Person responsible for the preparation of the Technical Report as defined in National Instrument 43-101 (NI 43-101), Standards of Disclosure for Mineral Projects and in compliance with Form 43-101F1 (the "Technical Report"). ----------------------- (1) Aquaterra completed the mine dewatering assessment as a subconsultant to SRK Consulting. Project No.: AAJV001 Page 1-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia In parallel with the engineering study, IMMI updated the geological and exploration database and engaged AMEC to provide independent mineral resource estimates. The results of this work were reported in Technical Reports (AMEC 2003a, AMEC 2003b, AMEC 2003c) authored by Independent Qualified Person Stephen Juras, Ph.D., P.Geo., an employee of AMEC. The work reported in this Preliminary Assessment entailed review of existing resource, metallurgical and cost data, analysis of alternate project development strategies, assessment of alternate mining methods, and estimating capital and operating costs. This work was completed in sufficient detail to prepare the Technical Report. This Preliminary Assessment includes the use of Inferred resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results predicted by the Preliminary Assessment will be realized. 1.2 PROPERTY DESCRIPTION AND TENURE The Oyu Tolgoi property is located in the Aimag (Province) of Omnogovi in the South Gobi region of Mongolia, about 570 km south of the capital city of Ulaanbaatar and 80 km north of the border with China. The property comprises Mining License 6709A, which covers an area of 8,496 ha. The elevation of the Oyu Tolgoi property ranges from 1,140 m to 1,215 m above sea level. The topography is relatively flat, consisting of gravel-covered plains with low hills along the northern and western lease borders. The south Gobi region has a continental, semi-desert climate with cool springs and autumns, hot summers, and cold winters. Temperatures range from an extreme maximum of about 36 degrees C to an extreme minimum of about -31 degrees C. In the coldest month, January, the average temperature is -12 degrees C. The average annual precipitation is approximately 80 mm. Wind is usually present at the site. A review of the existing seismic data indicates that the property is in a very high hazard zone. The region is covered by sparse semi-desert vegetation and is used by nomadic herders who tend camels, goats and sheep. Several ephemeral streams cross the lease area and flow for short periods immediately after rainfall. Water is widely available from shallow wells. Project No.: AAJV001 Page 1-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia IMMI accesses the property from Ulaanbaatar either by an unpaved road, a 12-hour drive under good conditions, or by air. IMMI has constructed a 1,600 m long airstrip at the site. The Trans Mongolian Railway lies approximately 350 km east of the property. A road of varying standards currently exists between the Mongolian-Chinese border crossing, 80 km south of Oyu Tolgoi, and the Trans-China Railway system near Wuyuan. IMMI has also conducted analysis of important supporting resources. Using data developed a number of years ago, IMMI has identified and explored a number of aquifers in the south Gobi region. This work indicates that several possible sources of water lie within 20 to 60 km of the project site. A major coal deposit is located at Tavan Tolgoi, approximately 110 km west-northwest of Oyu Tolgoi. There are also additional coal resources in the region. IMMI was granted mining licenses for the Oyu Tolgoi property and three satellite properties on December 23, 2003. These licenses give the right to IMMI to mine within the bounds of the license area for 60 years, with an option to IMMI to extend its license for a further 40 years. When IMMI originally acquired the exploration licence at Oyu Tolgoi from BHP, the project was subject to a 2% NSR royalty. However, the 2% NSR royalty has now been acquired by IMMI. Royalties payable to the Mongolian government are governed by Article 38 of the Mongolian Mineral Act, which states: "Royalties shall be equal to 2.5 per cent of the sales value of all products extracted from the mining claim that are sold, shipped for sale, or used. Royalties shall be equal to 7.5 per cent of the sales value of gold extracted from the placer that are sold, shipped for sale, or used." 1.3 GEOLOGY AND MINERAL RESOURCE The Oyu Tolgoi property hosts a series of copper-gold-molybdenum deposits in a mid-Palaeozoic copper-gold porphyry system. IMMI has identified four deposits: Southwest, South, Central, and Hugo Dummett. The Southwest deposit is a gold-rich porphyry system, characterized by a pipe-like geometry, encompassing a high-grade core (greater than 1 g/t Au) about 250 m in diameter and extending over 700 m vertically. A large (600 m by 2,000 m), low-grade shell defined by 0.3% Cu and 0.3 g/t Au encloses the high grade core. Project No.: AAJV001 Page 1-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The South deposit is a copper porphyry, which unlike the nearby Southwest system, is not gold-rich. The geometry of the system is poorly understood, but the prospect area covers about 400 m by 300 m in area, and mineralisation extends to depths of over 500 m. The Central deposit includes high sulphidation (covellite-chalcocite) and copper-gold porphyry styles (chalcopyrite-gold), as well as a chalcocite enrichment blanket. The Hugo Dummett deposit is a high sulphidation type, hosted by dacitic ash flow tuff overlying basaltic volcanics. Sedimentary rocks overlie the dacitic tuffs. High-grade copper (greater than 1%) occurs as bornite-chalcocite mineralization to the south and bornite-gold mineralization to the north. Surrounding the bornite-rich core, chalcopyrite dominates, followed laterally by a wide (hundreds of metres) pyrite-rich zone (10% pyrite) with minor enargite. The shape of the high-grade zone is comparable to a gently north dipping elliptical pipe, about 200 m to 300 m in diameter. The mineralization of the Oyu Tolgoi project as of November 2003 is classified as Indicated and Inferred Mineral Resources. The resources are reported over a range of copper equivalent cut-off grades, with the equivalent grade calculated using only assumed metal prices for copper and gold (US$0.80 /lb and US$350 /oz for copper and gold respectively). These resources are summarized by category in Table 1-1 and by deposit in Table 1-2. TABLE 1-1: OYU TOLGOI PROJECT MINERAL RESOURCE SUMMARY - TOTAL PROJECT (NOVEMBER 2003)
CUEQ GRADES CONTAINED METAL CUT-OFF GRADE CUEQ CU AU MO CU CU AU (%) TONNES (%) (%) (G/T) (PPM) TONNES (000S LB) (OZ) ----------------------------------------------------------------------------------------------- Indicated 1.00 92,300,000 1.74 0.74 1.57 74 682,000 1,500,000 4,662,000 0.60 267,000,000 1.08 0.53 0.86 69 1,423,000 3,140,000 7,346,000 0.30 508,900,000 0.78 0.40 0.59 61 2,058,000 4,540,000 9,689,000 Inferred 1.00 666,400,000 1.76 1.57 0.29 48 10,490,000 23,130,000 6,190,000 0.60 1,284,100,000 1.28 1.13 0.24 55 14,570,000 32,120,000 9,740,000 0.30 2,598,200,000 0.84 0.73 0.17 52 19,080,000 42,060,000 14,380,000
Project No.: AAJV001 Page 1-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 1-2: OYU TOLGOI PROJECT MINERAL RESOURCE SUMMARY - BY DEPOSIT (NOVEMBER 2003)
CUEQ(2) GRADES CONTAINED METAL CUT-OFF GRADE CUEQ CU AU MO CU CU AU (%) TONNES (%) (%) (G/T) (PPM) TONNES (000S LB) (OZ) ------------------------------------------------------------------------------------------------------------------ South West Deposit - Indicated 1.00 92,300,000 1.74 0.74 1.57 74 682,000 1,500,000 4,662,000 0.60 267,000,000 1.08 0.53 0.86 69 1,423,000 3,140,000 7,346,000 0.30 508,900,000 0.78 0.40 0.59 61 2,058,000 4,540,000 9,689,000 South West Deposit - Inferred 1.00 24,900,000 1.48 0.59 1.40 60 146,000 320,000 1,120,000 0.60 126,600,000 0.87 0.44 0.68 65 552,000 1,220,000 2,780,000 0.30 290,800,000 0.64 0.32 0.50 52 922,000 2,030,000 4,700,000 South Deposit - Inferred 1.00 5,400,000 1.18 0.82 0.56 32 44,000 100,000 100,000 0.60 48,400,000 0.77 0.61 0.26 20 294,000 650,000 400,000 0.30 270,300,000 0.48 0.39 0.13 23 1,067,000 2,350,000 1,100,000 Central Deposit - Inferred 1.00 60,600,000 1.34 1.12 0.34 53 679,000 1,500,000 670,000 0.60 147,500,000 0.99 0.84 0.24 56 1,238,000 2,730,000 1,140,000 0.30 236,800,000 0.79 0.67 0.18 53 1,591,000 3,510,000 1,360,000 Hugo Deposit - Inferred 1.00 575,500,000 1.82 1.67 0.23 47 9,620,000 21,220,000 4,300,000 0.60 961,600,000 1.41 1.30 0.18 56 12,480,000 27,520,000 5,420,000 0.30 1,800,300,000 0.94 0.86 0.12 57 15,500,000 34,160,000 7,220,000
The mining inventory incorporated into the Scoping Study production forecasts is shown in Table 1-3. This inventory includes Inferred resources, which are shown in Table 1-4. The open pit cutoffs used to determine this inventory are shown in Table 1-5. The underground mining inventory was estimated by calculating the tonnage and grades for all material, plus dilution, contained within the defined mining blocks. These blocks were designed to preferentially extract the +2% copper shell, but contain material outside this shell due to the geometry of the shells. ---------------------- (2) The copper equivalent grade (CuEq) was calculated using price equivalency only, based on a copper price of $0.80 /lb and gold price of $350 /oz. Project No.: AAJV001 Page 1-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 1-3: MINING INVENTORY
TOTAL RESOURCE MINED WASTE TOTAL TONNES NSR CUEQ CU AU TONNES TONNES (000S) $/T % % G/T (000S) (000S) ------------------------------------------------------------------------------------------------- CASE 2C Southwest 227,662 10.46 0.89 0.50 0.61 326,063 553,725 Central 124,094 8.85 0.85 0.76 0.14 208,538 332,632 Total 351,756 9.89 0.87 0.59 0.44 534,601 886,357 CASE 4B Southwest 352,188 9.01 0.78 0.48 0.48 414,206 766,394 Central 126,721 8.72 0.84 0.75 0.14 206,657 333,378 Hugo South 378,372 11.62 1.00 0.97 0.05 1,780,374 2,158,746 Hugo North (U/G) 176,539 25.75 2.21 1.99 0.35 176,539 Total 1,033,820 12.79 1.12 0.95 0.26 2,401,237 3,435,057 CASE 4A Southwest 357,185 9.01 0.78 0.48 0.48 420,667 777,852 Central 126,611 8.73 0.84 0.75 0.14 206,021 332,632 Hugo South 378,372 11.62 1.00 0.97 0.05 1,780,374 2,158,746 Hugo North (U/G) 176,539 25.75 2.21 1.99 0.35 176,539 Total 1,038,707 12.77 1.11 0.95 0.26 2,407,062 3,445,769
TABLE 1-4: RESOURCE CLASSIFICATION IN MINING INVENTORY
INDICATED INFERRED RESOURCE NSR CUEQ CU AU RESOURCE NSR CUEQ CU AU KT $/T % % G/T KT $/T % % G/T ------------------------------------------------------------------------------------------------------------ 2c 174,701 11.40 0.52 0.69 0.61 177,055 8.40 1.22 0.50 0.28 4b 229,043 10.19 0.87 0.49 0.59 804,777 13.53 1.19 1.08 0.16 4a 229,043 10.19 0.87 0.49 0.59 809,664 13.50 1.18 1.08 0.17
TABLE 1-5: NSR CUT-OFF VALUES USED IN OPEN PIT MINING INVENTORY CLASSIFICATION
LOW CUT-OFF MID CUT-OFF ($/T) HIGH CUT-OFF ($/T) SW & CENT HUGO ($/T) -------------------------------------------------------------------------------- Case 2a 3.11 8.50 10.00 Case 4b 2.81 6.50 5.50 10.00 Case 4a 2.81 6.50 5.50 10.00
The metallurgical recoveries for both copper and gold will vary by grade and between deposits. Algorithms for these recoveries were determined from the testwork and the recoverable copper and gold were then calculated for each block. The recoverable copper and gold were then reported in the production forecasts. The metallurgical parameters are shown in Table 1-6. The life of mine average copper recoveries are shown in Table 1-7. Project No.: AAJV001 Page 1-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 1-6: METALLURGICAL PARAMETERS
PARAMETER COPPER GOLD SILVER ---------------------------------------------------------------------------------------------------------- CONCENTRATE GRADES Southwest 28.0% calculated 41 g/t Central 24.1% calculated Hugo Dummett 30.6% calculated RECOVERIES Southwest 93.695 x Head (0.1477) 60.878 x e (0.1352 x Au Head) Max 95% Cu recovery Max 85% Au recovery Central Chalcopyrite 0.95(95.713 x Head (0.0556) 7.2781 x e (0.025 x Cu Rec.) Max 96% Cu recovery Central Secondary Copper 0.95(93.952x Head (0.0173) 4.1756 x e (0.03 x Cu Rec.) Max 91% Cu recovery Hugo Chalcopyrite 0.95(93.119 x Head (0.079) 10.531 x e (0.02 x Cu Rec.) Max 92% Cu recovery Max. 60% Au recovery Hugo Secondary Copper 0.95(95.317 x Head (0.0137) 7.3035 x e (0.026 x Cu Rec.) Max 92% Cu recovery Max. 60% Au recovery Hugo Chalcocite 0.95(95.317 x Head (0.0137) 0.9838 x e (0.0408 x Cu Rec.) Max 92% Cu recovery Max. 60% Au recovery Hugo Combined 0.95(94.982 x Head (0.0257) 8.2603x e (0.0226 x Cu Rec.) Max 92% Cu recovery Max. 60% Au recovery
TABLE 1-7: AVERAGE LIFE OF MINE METALLURGICAL RECOVERIES
RECOVERIES (%) CASE COPPER GOLD ----------------------------------------------- 2c 87.5 71.9 4a 89.6 65.8 4b 89.9 65.4
1.4 SCENARIOS The Scoping Study evaluated a wide range of development scenarios to assess alternate production rates, mining strategies, and processing options. Three of these alternatives are reported: - Case 2c: 20 Mt/a process plant, fed by an open pit on Southwest and Central. - Case 4a: Initial 20 Mt/a process plant, fed by open pits at Southwest, Central and Hugo South. Expanding to 40 Mt/a in Year 5 with development of Hugo North underground mine. Project No.: AAJV001 Page 1-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Case 4b: 40 Mt/a process plant, fed by open pits at Southwest, Central and Hugo South. Hugo South materials handling includes a 60 Mt/a crushing and conveying system for ore and waste. Hugo North underground mine is developed based on the same schedule as Case 4a. These three cases were assessed independently over a range of metal prices to provide IMMI with development options. For the purpose of this report, Case 4a with metal prices of $0.90 /lb copper and $400 /oz gold, was set as the base case. 1.5 OPEN PIT MINING GRD Minproc prepared open pit plans for Southwest, Central and Hugo South using preliminary parameters developed by them or provided by other consultants. Two ultimate shells for Southwest and Central (corresponding to the 20 Mt/a and 40 Mt/a throughput rates) and one shell for Hugo South were selected. Designs with ramps were completed for the ultimate stages in the 20 Mt/a alternative and for all stages for Southwest and Central in the 40 Mt/a case. The interim stages for the 20 Mt/a case and all stages for Hugo South were based on Whittle shells only. GRD Minproc then prepared production forecasts for each case using process plant throughput rates as defined by AAJV. The Hugo North underground production forecast was input to the case, as required, and the open pit production rate determined by the remaining volume that was required to achieve full production. In all cases, GRD Minproc used an elevated cut-off strategy to improve early metal production. The results of this work are summarised in Table 1-8. The Oyu Tolgoi open pits will be mined using conventional mobile equipment. Electric shovels (45 m(3) bucket class) and 350 t haulage trucks will be employed, although additional work is required to confirm the fleet sizes and configurations. Project No.: AAJV001 Page 1-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 1-8: PRODUCTION FORECASTS SUMMARY
CASE 2c CASE 4b CASE 4a PRODUCTION SCHEDULE CASES SUMMARY 20 MT/A 40 MT/A 20-40 MT/A TOTAL TOTAL TOTAL ------------------------------------------------------------------------------------------------------- TOTAL MINING RATE Mtpa 75 195 175 NUMBER OF ELECTRIC SHOVELS (45 M(3)) # 2 6 5 NUMBER OF TRUCKS (350 T) # 15 38* 40 DRILLS # 5 12 11 DOZERS # 5 12 11 GRADERS # 3 6 6 FRONT END LOADER # 1 1 1 MANPOWER REQUIREMENTS # 260 540* 520 * In-pit crushing option reduced the number of trucks and manpower utilised in Case 4b SW AND CENTRAL Open Pit Total kt 351,756 478,909 483,796 NSR $/t 9.89 8.94 8.93 CuEq % 0.87 0.80 0.80 Cu % 0.59 0.55 0.55 Au g/t 0.44 0.39 0.39 Waste kt 534,601 620,863 626,688 TOTAL KT 886,357 1,099,772 1,110,484 HUGO SOUTH Open Pit Total kt 378,372 378,372 NSR $/t 11.62 11.62 CuEq % 1.00 1.00 Cu % 0.97 0.97 Au g/t 0.05 0.05 Waste kt 1,780,374 1,780,374 TOTAL KT 2,158,746 2,158,746 HUGO NORTH Underground Total kt 176,539 176,539 NSR $/t 25.75 25.75 CuEq % 2.21 2.21 Cu % 1.99 1.99 Au g/t 0.35 0.35 MINED TOTAL ORE Mined Ore Total kt 351,756 1,033,820 1,038,707 NSR $/t 9.89 12.79 12.77 CuEq % 0.87 1.12 1.11 Cu % 0.59 0.95 0.95 Au g/t 0.44 0.26 0.26 STOCKPILE MAXIMUM Deferred Open Pit Ore kt 132,383 278,028 310,156 BALANCE Stockpile Treated at NSR $/t 5.74 5.41 5.33 the End of Mine Life CuEq % 0.55 0.51 0.50 Cu % 0.42 0.41 0.41 Au g/t 0.20 0.15 0.15 TOTAL RECOVERED Total Mined and kt 351,756 1,033,820 1,038,707 RESOURCE Processed Resource NSR $/t 9.89 12.79 12.77 CuEq % 0.87 1.12 1.11 Cu % 0.59 0.95 0.95 Au g/t 0.44 0.26 0.26 CONCENTRATE MAKE Concentrate Make Mass Pull % 1.98 2.90 2.89 kt 6,962 30,021 30,070 Con Cu % 26.1 29.4 29.4 Con Au g/t 16.0 5.9 5.9 Copper Production kt 1,817 8,830 8,844 Gold Production koz 3,580 5,652 5,713
Project No.: AAJV001 Page 1-9 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 1.6 UNDERGROUND MINING AAJV prepared the underground mine plan for Hugo North, based on parameters that had been developed by SRK for Hugo South. Block caving was selected as the mining method for this zone, although additional data must be collected to confirm the viability of this method and the parameters used in the design. The plan prepared by AAJV incorporates a dual pass extraction system, with the initial upper extraction level being developed at the 0 m RL. The lower portion would be extracted from horizons that follow the base of the zone as it rises from approximately -325 m RL at its northern end. SRK estimated that the steady state caving rate for Hugo South would be approximately 200 mm/day, or 0.56 t/day/m(2). AAJV used the same basis for Hugo North and determined that a sustainable mining rate for the deposit would be 12 Mt/a. AAJV developed the mining inventory for Hugo North by blocking out areas on plan that targeted the +2% copper shell. The volume of ore plus dilution within these blocks and the associated grades were then estimated based on the AMEC November 2003 model. The steady state production rate of 12 Mt/a will be attained 3 years after production commences and maintained for ten years. Approximately 95,000 m of development will be required to mine Hugo North over its life, and there is an additional 6,700 m of exploration development identified. The mobile equipment fleet will consist of conventional drifting and longhole jumbo drill rigs, diesel and electric loaders, haulage trucks to support development, and other ancillary equipment. Three crushing stations will be constructed over the mine life, fed by orepasses from the extraction levels. The crushed ore will then be transported to the shaft by conveyor, hoisted to surface, and then conveyed to the process plant. Mine services will consist of water and electrical supply, dewatering, and communications. Project No.: AAJV001 Page 1-10 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 1.7 PROCESS PLANT IMMI has conducted metallurgical testwork on all deposits, although the amount of work conducted on Hugo Dummett is less than that on the other deposits due to the timing of its discovery. The governing principle for the concentrator design was to incorporate the largest proven mills into the grinding modules. The throughput rate was determined based on the capacity of the mills to grind to the required P(80) size of 100 (mu)m. The remainder of the plant was sized based on the estimated comminution throughput with consideration given to grade and recovery of copper at this resulting tonnage. The plant will be built around grinding modules, each capable of handling approximately 20 Mt/a of material, although the grinding characteristics of the various ore types vary significantly. Each module will consist of a 12.2 m (40 ft) diameter semi-autogenous (SAG) mill with a 21 MW wrap-around motor coupled with two 7.7 m by 11.6 m, 15.5 MW ball mills. For the 20 Mt/a throughput plant, one module will be required. The 40 Mt/a capacity plant will require two modules. Open pit ore will be crushed at the plant or, in Case 4b, crushed at the in-pit crusher in Hugo South. This material and the crushed underground ore will be placed on covered stockpiles adjacent to the concentrator (one, two, or three stockpiles depending on the case). Feeders will reclaim the ore for conveying to the grinding circuit. Allowance was made for flash flotation and centrifugal concentrators to enhance gold recovery. Each grinding module will support its own flotation module. Each rougher flotation module will consist of two banks of six cells with individual cell capacities of 200 m(3). Rougher tailings will report to two tailings thickeners per module. Rougher concentrate will join the flash flotation concentrate stream for regrinding. The regrind size was set at 20 (mu)m based on the testwork results. Reground concentrate will be delivered to three stages of cleaner flotation, with the final concentrate coming from this stage. Cleaner tailings will be sent to a cleaner scavenger. Cleaner scavenger tailings will be fed to the tailings thickener and concentrate will be returned to the regrind circuit. Concentrate will be pumped to automated pressure filters. Filter cake will be conveyed to the concentrate storage building, which will be capable of holding 5 days concentrate production. Project No.: AAJV001 Page 1-11 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The plant will be monitored from a central control room. The full range of concentrator infrastructure will be provided. Tailings will be impounded in a facility located in the southeast corner of the mining lease. Two sizes, one for the 20 Mt/a throughput rate and one for the 40 Mt/a rate, were designed with the larger facility as an expansion of the initial construction. The facility was designed to store thickened tailings with water decant and return to the plant. The embankment will be primarily constructed of open pit waste rock. 1.8 INFRASTRUCTURE The infrastructure requirements for Oyu Tolgoi are a function of it being a greenfield development and reflect its location in the south Gobi Desert. A primary criterion for the site layout was that it was to be located entirely within the mining lease boundaries. Other design considerations included placing offices, accommodations, etc. upwind (i.e., north or northwest) of the concentrator, open pits and waste dumps. Maintaining safe distances from the open pits and potential block cave subsidence zones were also factors. The primary site infrastructure includes accommodations, medical facilities, site roads, primary and emergency heat generation facilities, offices, workshops and warehouses, site roads, power reticulation, water distribution, and an airstrip. The site will be fenced. The permanent Accommodation Village will be constructed in Year 7. It was sized to be sufficiently large for 1,000 personnel for Case 2c and 1,500 personnel for Cases 4a and 4b. Power will be supplied via 220 kV overhead transmission line from China. The site facilities include a substation and reticulation to the various facilities. Allowances were also made for regional offices in Dalanzadgad, Ulaanbaatar, and Baotou. The project will consume large quantities of water. Based on the exploration conducted to date, IMMI had determined that sufficient water exists in two aquifers - Galbyn Gobi and Gunii Hooloi - both located within 70 km of the site. Galbyn Gobi will be the first borefield to be developed, with Gunii Hooloi required for Cases 4a and 4b. The bores will be drilled 4 km apart, and the water will be pumped via a buried steel pipeline to the site. Booster pump stations will be installed as required. Project No.: AAJV001 Page 1-12 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Transportation infrastructure includes the provision of an airstrip at the site, main access road to the site, transportation of concentrate and transportation of general freight required for support and maintenance of the plant, mining and support facilities. Based on advice received from IMMI, the capital cost of upgrading and extending the existing road from the railhead at Wuyuan will be funded by the Chinese government. The concentrate will be trucked by contractors to the railhead. Allowance was made for operation of a storage facility at the railhead by a third party. 1.9 PROJECT IMPLEMENTATION A preliminary project implementation plan was assembled for the Scoping Study. It shows metallurgical testwork continuing through 2004, with the Feasibility Study completed in two stages by mid-2005. Some pre-financing procurement and construction would be advanced during early 2005. First production would be in 2007. IMMI is currently evaluating alternatives to advance the first production by as much as a year. 1.10 CAPITAL COSTS The initial and sustaining capital costs for the three cases are summarized in Table 1-9. The capital costs incorporate the results of an analysis conducted by AAJV to determine the potential reductions that may be realized if Chinese labour and materials can be utilised in the project construction. These factors have reduced the direct cost of the process plant to approximately 70% of that for which a similar plant would be constructed in a Western country. Project No.: AAJV001 Page 1-13 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 1-9: INITIAL AND SUSTAINING CAPITAL COST SUMMARY (US$ MILLION)
CASE 2c CASE 4a CASE 4b ------------------------------------------------------------------- INITIAL CAPITAL Open Pit 113.8 123.3 364.5 Hugo North UG Mine Process Plant 158.2 158.2 317.2 Tailing Storage Facility 7.8 7.8 16.4 Ancillary Buildings 19.8 19.8 21.0 On-Site Infrastructure 33.6 33.6 72.0 Off-Site Infrastructure 44.4 44.4 78.0 Indirects 132.4 142.2 298.1 SUB TOTALS: 510.2 529.4 1,167.1 SUSTAINING CAPITAL Open Pit 71.1 409.0 329.7 Hugo North UG Mine 425.4 425.5 Process Plant 159.1 Tailing Storage Facility 12.4 33.3 24.4 Ancillary Buildings 10.0 13.1 16.0 On-Site Infrastructure 7.2 50.9 14.6 Off-Site Infrastructure 1.7 37.1 4.1 Indirects 28.2 164.2 56.8 SUB TOTALS: 130.5 1,292.2 871.1 CASE TOTALS: 638.9 1,821.6 2,034.0
1.11 OPERATING COSTS The life of mine average operating costs are shown in Table 1-10. TABLE 1-10: AVERAGE LIFE OF MINE OPERATING COSTS
ITEM UNIT CASE 4b CASE 2c CASE 4a ------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open pit mining $/t ore mined 2.47 1.77 2.81 Underground mining - Hugo North $/t ore mined 1.83 1.83 ON SITE COSTS PER TONNE ORE TREATED Open pit mining $/t ore treated 2.04 1.77 2.33 Underground mining - Hugo North $/t ore treated 0.31 0.00 0.31 Process $/t ore treated 2.41 2.36 2.23 General and administration $/t ore treated 0.53 0.78 0.55 Mongolian Government royalty $/t ore treated 0.38 0.29 0.38 Immovable property tax $/t ore treated 0.07 0.03 0.06 TOTAL UNIT ON SITE COSTS $/T ORE TREATED 5.73 5.24 5.86 TOTAL OPERATING COSTS Total site operating costs $M 5,470 1,730 5,638 Mongolian government royalty $M 389 102 390 Immovable property tax $M 68 10 60 Concentrate transport costs $M 1,197 314 1,208 Treatment/refining charges/penalties $M 3,245 737 3,251 TOTAL OPERATING COSTS $M 10,369 2,892 10,547
Project No.: AAJV001 Page 1-14 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 1.12 FINANCIAL ANALYSIS Financial models were constructed for each case, using information currently available regarding the Mongolian fiscal regime. The modelling was conducted with both pre-tax and after tax calculations, without escalation or inflation, and on the basis that the project will be equity funded. The currency adopted for the evaluation, and which is used throughout, is United States dollars. No provisions were made for exchange rate variations. The evaluation encompassed the period from mid 2005, when it is anticipated that the final decision to commit to the Project will be made, through a 30-month development period and operating life of 19 - 29 years depending on the case. Expenditure prior to mid-2005 (including drilling programmes and exploration from the Hugo North shaft) was treated as sunk costs, as was expenditure to date. The Net Present Values have been calculated based on discounting cashflows to mid-2005 rather than the current date and exclude all costs sunk to that time. The anticipated after tax project results for each case were tabulated over metal prices for Net Present Value at discount rates of 5.0%, 7.5% and 10.0%, Internal Rate of Return, Payback Period, and Total Cash Cost after gold credits. These tables are incorporated in the report, with the results for prices of $0.90 /lb of copper and $400 /oz of gold and 10% discount rate summarized in Table 1-11. TABLE 1-11: SUMMARY OF FINANCIAL RESULTS
PARAMETER CASE 2c CASE 4a CASE 4b -------------------------------------------------------------------------- Net Present Value $ million 238 852 785 IRR % 18.9 21.2 17.5 Payback Period Years 3.7 6.2 5.6 TOTAL CASH COSTS Life of Mine $ /lb 0.40 0.46 0.45 Years 1-5 $ /lb 0.17 0.36 0.37 Years 6-10 $ /lb 0.33 0.39 0.41
The sensitivity of each case to variations in key parameters is summarised in Table 1-12, Table 1-13, and Table 1-14. Project No.: AAJV001 Page 1-15 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 1-12: PARAMETER SENSITIVITY (CASE 4b)
IRR CHANGE NPV CHANGE ($M) PARAMETER CHANGE (%) @ 10% DISCOUNT -------------------------------------------------------------------------- Gold Price +/- $25/oz 0.5% 47 Copper Price +/- $0.05/lb 1.8% 211 Initial Capital +/- $117 M 1.5% 97 Smelter Charges +/- $10/wmt, $0.01/lb 0.9% 116 Gold Recovery +/- 1% point 0.1% 12 --------------------------------------------------------------------------
TABLE 1-13: PARAMETER SENSITIVITY (CASE 2c)
IRR CHANGE NPV CHANGE ($M) PARAMETER CHANGE (%) @ 10% DISCOUNT -------------------------------------------------------------------------- Gold Price +/- $25/oz 1.3% 36 Copper Price +/- $0.05/lb 1.9% 59 Initial Capital +/- $50 M 2.5% 42 Smelter Charges +/- $10/wmt, $0.01/lb 1.1% 34 Gold Recovery +/- 1% point 0.3% 8 --------------------------------------------------------------------------
TABLE 1-14: PARAMETER SENSITIVITY (CASE 4a)
IRR CHANGE NPV CHANGE ($M) PARAMETER CHANGE (%) @ DISCOUNT ---------------------------------------------------------------------------------------- Gold Price +/- $25/oz 0.7% 42 Copper Price +/- $0.05/lb 2.0% 183 Initial & Expansion Capital +/- $120 M 2.1% 82 Smelter Charges +/- $10/wmt, $0.01/lb 1.1% 100 Gold Recovery +/- 1% point 0.2% 10 ---------------------------------------------------------------------------------------
1.13 OPPORTUNITIES AND RISKS As is normal at this stage of a project, this Scoping Study was completed based on data that, in some areas, was incomplete. Therefore assumptions were made on which to base the analysis. These assumptions give rise to opportunities and risks that should be assessed further during the next phases of study. 1.13.1 OPPORTUNITIES - There are several geophysical and geological targets on the property to test. - Trolley-assist may reduce mine haulage costs. Project No.: AAJV001 Page 1-16 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Further assessment of in-pit crushing is warranted. - The underground mining inventory could potentially be expanded by further assessing the +1% copper shell at Hugo North and that portion of the Southwest deposit that lies below the current open pit. - There is an opportunity to "fast track" the development of the project to move production ahead to as early as 2006. - It may be economically advantageous to treat the low grade stockpiles through an expanded concentrator, rather than at the end of the mine life. - Grinding capacity could potentially be increased by evaluating SAG reject pebble handling and by assessing the economics of larger SAG and ball mills. - Construction of a smelter or hydrometallurgical facility at Oyu Tolgoi could provide a number of benefits, including reduced transport costs, potentially improved gold revenue, and mitigation of issues associated with penalty elements. - There may be an opportunity to improve the project value by installing a heap leach, solvent extraction/electro-winning facility to treat leachable copper ore from the Central deposit. 1.13.2 RISKS - Arsenic and fluorine are present in parts of the deposit and additional testwork and analysis is required to minimise their impacts. - The financial results are based, in part, on Inferred Resources, and thus the study carries a high degree of uncertainty. - The Hugo North mine plan was based on preliminary data, much of which was adopted from the work on Hugo South. These parameters must be validated to confirm that block caving is viable and to optimise the proposed plan. - The capital and operating cost reductions due to the impact of Chinese costs are important to the project value. It is critical that this China Factor be captured. - A detailed marketing study will be required to confirm the revenue and cost assumptions used in this component of the study. - The grinding plant design parameters must be confirmed through additional testwork. - IMMI must actually secure the long-term rights to the water resource to eliminate this as an uncertainty. Project No.: AAJV001 Page 1-17 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 1.14 CONCLUSIONS AND RECOMMENDATIONS 1.14.1 CONCLUSIONS The major conclusions of the Scoping Study are: - The Scoping Study has indicated, subject to the qualifications noted and confirmation of the assumptions used in this report, that Oyu Tolgoi has the potential to be developed into a major mining operation. - Approximately 1.04 billion tonnes of resource, grading 0.95% copper and 0.26 g/t gold, were incorporated into the mine plans. - Within the context of the mining plans developed for the Scoping Study and contingent on conversion of the Inferred resources to Indicated resources, the deposit may sustain production rates of as high as 40 Mt/a. - Initial production could come from conventional open pit mining, which could reduce the time required to develop the project. - Although the underground mine at Hugo North appears attractive, significant additional infill drilling, underground exploration, and geotechnical data collection are necessary to confirm the viability of block caving at this site. - The resource appears amenable to treatment in a conventional flotation concentrator, with current technology and operating practice. - Fluorine and arsenic are present in parts of the deposits and require additional analysis to ensure they do not materially impact on the project. - The scale of the operation lends itself to utilising the largest available mining equipment and comminution circuits currently in operation. - Opportunities have been identified to incorporate copper recovery by heap leaching, solvent extraction/electrowinning. - The project value may be enhanced by construction of a smelter that is designed to treat Oyu Tolgoi concentrates. - The project's proximity to China should reduce the project infrastructure costs. - The capital and operating costs can be significantly reduced over what would be experienced in Western countries if Chinese material and contracting costs can be applied. - The project economics would be enhanced by supply of major infrastructure, including power and transportation, from China. Project No.: AAJV001 Page 1-18 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 1.14.2 RECOMMENDATIONS AAJV recommends that, if IMMI elects to advance the project to a Feasibility Study, the following work be completed: - Infill drilling should be completed to improve confidence to at least the Indicated category on those resources that are to be exploited by the Feasibility Study. - Metallurgical testwork, including operation of comminution and flotation pilot plants, should be completed on the resources to be incorporated into the Feasibility Study. - The opportunities to improve the project economics through in-pit crushing and trolley-assisted haulage should be further evaluated. - Additional analysis should be completed on Hugo North to confirm the assumptions used in this report prior to completing a Feasibility Study on this deposit. - Negotiations already commenced with the Mongolian and Chinese governments and with third party suppliers to facilitate the construction of the infrastructure necessary to support the Project should be concluded and/or progressed as soon as possible. - A more detailed marketing study should be conducted to confirm payment terms at Chinese smelters and to commence the negotiations of frame contracts to support the Feasibility Study. - A detailed assessment should be conducted to determine how best to capture the "China Factor" on capital and operating costs. - Further planning should be completed on the Hugo North deposit to confirm the mining layouts and establish the basis for on-going exploration. - AAJV concurs that the smelter study already initiated by IMMI should be completed. Project No.: AAJV001 Page 1-19 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 2.0 INTRODUCTION AND TERMS OF REFERENCE Ivanhoe Mines Mongolia Inc XXK (IMMI) is developing the Oyu Tolgoi Project in Mongolia. This property has been the subject of an intense exploration program that has successfully delineated a large copper-gold resource. To assist in the evaluation of the property, IMMI commissioned an engineering study in March 2003 that is expected to ultimately result in a detailed Feasibility Study. The first component, a Scoping Study, was intended to demonstrate the viability of the project, to assess alternate project development scenarios, and to determine what additional data were required to support the Feasibility Study. The results of the Scoping Study are reported in this Preliminary Assessment report. IMMI commissioned AMEC Ausenco Joint Venture (AAJV), a joint venture of AMEC E&C Services Limited (AMEC) and Ausenco International Pty, to provide process and infrastructure engineering, to assemble the capital cost estimates, to prepare a financial model, to provide project controls services, and to coordinate the activities of the other consultants. AAJV conducted this work in Australia and personnel in offices in China, Mongolia and North America provided technical, costing and logistics support to the team. AAJV personnel also prepared the preliminary mine plans for the northern extension of the Hugo Dummett deposit (Hugo North). IMMI engaged other consultants to complete specific components of the project. These were: - GRD Minproc Limited (GRD Minproc) - Open pit mine planning - SRK Consulting (SRK) - Underground mine planning and rock mechanics - Knight Piesold Pty Limited (Knight Piesold) - Tailings disposal and site geotechnical assessment - Aquaterra Consulting Pty Ltd (Aquaterra) - Water supply and mine dewatering(1) - Sustainability Pty Ltd (Sustainability) - Safety, environmental, community - SGS Lakefield Research Limited (SGS Lakefield) - Metallurgical testwork - Terra Mineralogical Services (Terra Mineralogical) - Mineralogical assessment - Minnovex Technologies Inc - Metallurgical testwork ------------------- (1) Aquaterra completed the mine dewatering assessment as a subcontractor to SRK. Project No.: AAJV001 Page 2-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia In parallel with the Scoping Study, IMMI updated the geological and exploration database and engaged AMEC to provide an independent mineral resource estimate. The original resource estimate was completed in March 2003 and updated in August 2003 and November 2003. The results of this work were reported in Technical Reports (AMEC 2003a, AMEC 2003b, AMEC 2003c) authored by Independent Qualified Person Stephen Juras, Ph.D., P.Geo., an employee of AMEC. This document constitutes an independent Qualified Person's Review and Preliminary Assessment Technical Report. Stephen Hodgson, P.Eng., an employee of AMEC, served as the Qualified Person responsible for the preparation of the Technical Report as defined in National Instrument 43-101 (NI 43-101), Standards of Disclosure for Mineral Projects and in compliance with Form 43-101F1 (the "Technical Report"). Stephen Hodgson, in addition to supervising the preparation of the Technical Report, supervised the Scoping Study. The Scoping Study entailed review of existing resource, metallurgical and cost data, analysis of alternate project development strategies, assessment of alternate mining methods, and estimating capital and operating costs. This work was completed in sufficient detail to prepare the Technical Report. 2.1 TERMS OF REFERENCE Four deposits comprise the Oyu Tolgoi project: Southwest, South, Central, and Hugo Dummett (formerly the Far North). Throughout this report, Hugo Dummett may be referred to as Hugo, HG, HN (Hugo North) or HS (Hugo South). The study team assessed a number of different development alternatives for the Hugo South deposit, including various underground extraction methods and open pit mining, and selected the open pit scenario for this study. SRK was responsible for the underground planning for Hugo South, and AAJV utilized this information to development the plan and costs for Hugo North. Although the Hugo South underground plan is not part of the scenarios depicted in this report, SRK's report is included as Appendix B to provide the basis for the Hugo North plan and costs. Information and data for the review and report were obtained from IMMI personnel in Vancouver, Mongolia, and China. IMMI maintained direct responsibility for exploration, resource definition, and resource modeling. AMEC prepared the resource models for IMMI. IMMI was responsible for the design of potential shafts and a decline to access the Hugo South and Hugo North Deposits. IMMI also provided certain cost and financial data that is identified within the report. Project No.: AAJV001 Page 2-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia IMMI was responsible for establishing and directing the metallurgical testwork that forms the basis of the process design. AAJV reviewed the results of this testwork, which was conducted at SGS Lakefield, but has incorporated the results as received. This report relies on AMEC's 2003 Technical Reports as well as the collective result of the Scoping Study effort and was assembled from the contributions of the various parties involved. The author of each of these contributions is noted in the report. AAJV has assembled the report and edited the contributions for consistency, format and grammar. However, the responsibility for the content of these sections remains with the original author. In particular AAJV relied on personnel from other consultants who have been identified as Qualified Persons elsewhere in this report. All units are in the metric system, except in the mineral resource summary tables where troy ounces and pounds metal are also used. All dollar figures ($) are quoted in United States Dollars. Project No.: AAJV001 Page 2-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 3.0 DISCLAIMER This Preliminary Assessment includes the use of Inferred resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results predicted by the Preliminary Assessment will be realized. The term "ore" is used for convenience throughout this report to denote that portion of the Indicated and Inferred mineral resource that is likely economically extractable, within the limitations of the Scoping Study. The use of the term is not meant to imply that this material falls within the classification of a mineral reserve as determined by the Canadian Institute of Mining and Metallurgy (CIM), Australasian Joint Ore Reserves Committee (JORC), or other similar bodies. AAJV has relied on the input of a number of other consultants and Qualified Persons in the preparation of this report. The consultants were noted in Section 2 of this report. The Qualified Persons are: - Ross Oliver, GRD Minproc (Open pit mining) - Geoff Bull, SRK (Underground mining) Project No.: AAJV001 Page 3-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 4.0 PROPERTY DESCRIPTION AND LOCATION The Oyu Tolgoi property hosts a series of copper-gold-molybdenum mineralised deposits in a mid Paleozoic porphyry system. It is located in the Aimag (Province) of Omnogovi in the South Gobi region of Mongolia, about 570 km south of the capital city of Ulaanbaatar and 80 km north of the border with China (Figure 4-1). The Oyu Tolgoi property comprises Mining License 6709A (Figure 4-2), which covers an area of 8,496 ha and is centred at latitude 43(degrees)00'45"N, longitude 106(degrees)51'15"E. 4.1 MINERAL TENURE IMMI was granted Mining Licenses for the Oyu Tolgoi property and three satellite properties on December 23, 2003, in accordance with the Minerals Law of Mongolia. Also in accordance with this law, IMMI is currently preparing a Feasibility Study to support these licenses. This report will be submitted prior to February 20, 2004. These licenses give the right to IMMI to mine within the bounds of the license area. The licenses are valid for 60 years, with an option to IMMI to extend its license for a further 40 years. These licenses were converted exploration licences that were originally issued to BHP on February 17, 1997. The exploration licence fees were US$1.50 per hectare in 2002 and 2003 (6th and 7th years of tenure). Thus, IMMI has paid US$12,744 to the Mongolian government each year since acquiring the property. The mining license fees are: - Years 1 - 3: $5.00 /ha - Years 4 & 5: $7.50 /ha - Years 6 on: $10.00 /ha The Oyu Tolgoi property was legally surveyed in August 2002 by Surtech International Ltd. 4.2 PERMITS AND AGREEMENTS Upon transfer of the exploration licence, IMMI agreed to a 2% NSR royalty with BHP Billiton. However, the 2% NSR has now been acquired by IMMI. Terms of this transaction require IMMI to pay BHP Billiton a total of US$37 million in two payments, with the final payment of US$20 million to be made by February 5, 2004. Project No.: AAJV001 Page 4-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Royalties potentially payable to the Mongolian government are governed by Article 38 of the Minerals Law of Mongolia, which states: "Royalties shall be equal to 2.5 per cent of the sales value of all products extracted from the mining claim that are sold, shipped for sale, or used. Royalties shall be equal to 7.5 per cent of the sales value of gold extracted from the placer that are sold, shipped for sale, or used." When the areas were covered by exploration licenses, an environmental plan accompanied the annual work plans submitted to the relevant soum, or district (Khanbogd Soum). The original environmental performance bond was posted in 1998 by BHP and is still retained by the soum for the ongoing work. Further requirements for environmental impact assessment are discussed below. The soum must also be paid for water and road usage. Payments are computed at the end of each calendar year on the extent of use. Archaeological surveys and excavations have been completed for the project area by the Institute of Archaeology at the Mongolian Academy of Science. Archaeological approvals have been granted for disturbance at the site. 4.3 ENVIRONMENTAL IMPACT ASSESSMENT Project development for Oyu Tolgoi is currently subject to environmental impact assessment (EIA) in accordance with Mongolian environmental laws. The process was initiated with the completion of the "Oyu Tolgoi Project Environmental Baseline Study" in October 2002. IMMI submitted this document, along with preliminary project descriptions, to the Ministry for Nature and Environment (MNE) for screening. MNE has reviewed the documentation and prepared guidelines for the completion of a detailed EIA. Sustainability, an Australian consulting firm, is assisting IMMI with the EIA negotiations with the Mongolian Government and is coordinating the preparation of the appropriate documentation. Mongolian law requires a licensed Mongolian consulting firm to prepare the EIA. Accordingly, IMMI engaged Eco Trade Co Ltd to complete this work. IMMI is tentatively planning to submit the EIA in the first quarter of 2004. Project No.: AAJV001 Page 4-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 4-1: LOCATION MAP [LOCATION MAP] Project No.: AAJV001 Page 4-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 4-2: OYU TOLGOI LICENCE IN RELATION TO NEIGHBOURING TENEMENTS [OYU TOLGOI LICENCE IN RELATION TO NEIGHBOURING TENEMENTS MAP] Project No.: AAJV001 Page 4-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 5.1 LOCATION The Oyu Tolgoi Project is in the Aimag (Province) of Omnogovi, located in the south Gobi Region of Mongolia. The property is approximately 570 km south of the capital city Ulaanbaatar. The elevation of the Oyu Tolgoi property ranges from 1,140 m to 1,215 m above sea level. The topography largely consists of gravel-covered plains, with low hills along the northern and western lease borders. Scattered, small rock outcrops and colluvial talus are widespread within the northern, western and southern parts of the property. 5.2 REGIONAL CENTRES AND INFRASTRUCTURE There are a number of communities in the South Gobi region. The most prominent is Dalanzadgad, population 14,000, which is the centre of the Omnogovi aimag and located 220 km northwest of the Oyu Tolgoi property. Facilities at Dalanzadgad include a regional hospital, tertiary technical colleges, domestic airport and a 6 MW capacity coal-fired power station. IMMI envisions that Dalanzadgad may be suitable as a regional centre for recruiting and training. The closest community to the property is Khanbogd, the centre of the Khanbogd soum. Khanbogd has a population of approximately 2,000 and is located 45 km to the east. Other communities relatively near to the Project include Mandalgovi (population 13,500), which is capital of the Dundgovi aimag and located 310 km north of the project on the road to Ulaanbaatar, Bayan Ovoo (population 1,600), 55 km to the west, and Manlai (population 2,400), 150 km to the north. 5.3 CLIMATE The south Gobi region has a continental, semi-desert climate with cool springs and autumns, hot summers, and cold winters. The average annual precipitation is approximately 80 mm, 90% of which falls in the form of rain with the remainders as snow. Snowfall accumulations rarely exceed 50 mm. Maximum rainfall events of up to 43 mm have been recorded for short-term storm events. In an average year, rain falls on only 25 to 28 days and snow falls on 10 to 15 days. Local records indicate that thunderstorms are likely to occur between 2 and 8 days a year at the project area with an average total of 29 hours of electrical activity annually. An average storm will have up to 83 lightning flashes a minute. Project No.: AAJV001 Page 5-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Temperatures range from an extreme maximum of about 36 degrees C to an extreme minimum of about -31 degrees C. The air temperature in wintertime fluctuates between -5 degrees C and -31 degrees C. In the coldest month, January, the average temperature is -12 degrees C. Wind is usually present at the site. Very high winds are accompanied by sand storms that often severely reduce visibility for several hours at a time. The records obtained from 9 months monitoring at the Oyu Tolgoi Project weather station show that the average wind speed in April is 5.5 m/sec. However, windstorms with gusts of up to 40 m/sec occur for short periods. Winter snowstorms and blizzards with winds up to 40 m/sec occur in the Gobi region between 5 and 8 days a year. Spring dust storms are far more frequent and these can continue through June and July. 5.4 PHYSIOGRAPHY The region is covered by sparse semi-desert vegetation and is used by nomadic herders who tend camels, goats and sheep. Several ephemeral streams cross the lease area and flow for short periods immediately after rainfall. Water is widely available from shallow wells. The Oyu Tolgoi property is relatively flat with occasional exposed bedrock. This topography will be amenable to the construction of the necessary infrastructure, including tailings storage sites, heap leach pads, waste disposal, and processing plant sites. 5.5 SEISMICITY Knight Piesold completed a preliminary seismicity review from the Global Seismic Hazard Assessment Map, which is normally a reasonable reference source to conduct this level of review. The map indicates that the site lies within a very high hazard zone with a 475 year return period, peak ground acceleration of 0.4 to greater than 0.48 g. A brief review of the worldwide seismic databases by Knight Piesold determined that there is a paucity of records for the Oyu Tolgoi area. An important component of the feasibility study will be to review all available records of seismic events to allow a reasonable interpretation for design purposes. A detailed seismic assessment, including a risk evaluation, will be required to develop the design criteria and to minimise the design level. While this is likely to result in a high seismic zoning and high ground acceleration values for design, the analysis could also result in a downgrading of one or even two zones. Project No.: AAJV001 Page 5-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 5.6 TRANSPORTATION INFRASTRUCTURE IMMI currently accesses the property from Ulaanbaatar either by an unpaved road, via Mandalgovi (a 12-hour drive under good conditions), or by air. IMMI has constructed a 1,600 m long gravel airstrip at the site. The Trans-Mongolian Railway, which crosses the Mongolia-China border approximately 420 km east of the property, traversing the country from southeast to northwest through Ulaanbaatar between Russia and China. The Chinese government has upgraded 226 km highway from Gushaan Suhait to Wuyuan, providing a direct link between the Mongolian border crossing, 80 km south of Oyu Tolgoi, and the Trans-China Railway system (Figure 5-1). IMMI has entered into negotiations with Mongolian and Chinese government authorities to extend the highway the final 80 km to the Oyu Tolgoi project site. FIGURE 5-1: TRANSPORTATION INFRASTRUCTURE [TRANSPORTATION INFRASTRUCTURE MAP] Project No.: AAJV001 Page 5-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 5.7 OTHER RESOURCES The Mongolia government has previously conducted extensive exploration for water resources in the south Gobi region and a number of such resources were discovered. Several possible sources of water lie within 20 to 60 km of the project site. A major thermal coal deposit is located at Tavan Tolgoi, approximately 110 km westnorthwest of Oyu Tolgoi. A study on the deposit conducted in 1999 by NorWest Mine Services Ltd., a Canadian consulting firm, estimated that the resource at Tavan Tolgoi and the immediate surrounding deposits totalled 6.4 billion tonnes of coal. There are also additional coal resources in the region. IMMI has located a good quality limestone deposit 75 km to the south of Oyu Tolgoi that appears suitable for providing the quicklime requirements for the project. Additional analysis is required during the feasibility study to assess this deposit and to determine the relative economic and non-economic benefits of utilising this limestone versus purchasing lime from China. Project No.: AAJV001 Page 5-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 6.0 HISTORY A minor amount of copper was recovered from malachite and chrysocolla at the South deposit during the Bronze Age, as indicated by small circular pits and minor copper smelting slag (Tseveendorj and Garamjav, 1999). The Oyu Tolgoi district was explored by a joint Mongolian and Russian regional geochemical survey during the 1980s, when the Central deposit area was identified as a molybdenum anomaly. Dondog Garamjav (now senior geologist with IMMI) first visited Oyu Tolgoi in 1983 and found evidence of alteration and copper mineralisation at the South Deposit. In September 1996, he brought a team of Magma Copper geologists to the area, who identified a porphyry copper leached cap nearby. Exploration tenements were secured in late 1996. During the 1997 field season, BHP, which had acquired Magma Copper, carried out geological, geochemical and geophysical surveys and completed a six-hole diamonddrilling program of 1,102 m (Perello, 2001). This program was designed to test the potential for secondary chalcocite mineralisation at the Central deposit and for hypogene copper-gold mineralisation at the South deposit. Drill hole OTD3 at Central intersected 10 m of 1.89% copper from 20 m below surface, and drill hole OTD4 at the South deposit encountered 70 m of 1.65% copper and 0.15 g/t gold at a depth of 56 m. A second drilling program of 17 widely spaced, relatively shallow holes (2,800 m total) was completed in 1998. Based on the results of this drilling, BHP in 1999 estimated a preliminary resource of 438 Mt averaging 0.52% copper and 0.25 ppm gold (Perello, 2001). BHP shut down its exploration in Mongolia in mid-1999 and offered its properties for joint venture. IMMI visited Oyu Tolgoi in May 1999 and made an agreement to acquire 100% interest in the property, subject to a 2% Net Smelter Royalty (NSR). IMMI completed all of its earn-in requirements by June 2002 and became the owner of the property. In November 2003 IMMI acquired the 2% NSR royalty retained by BHP Minerals International Exploration, a subsidiary of BHP-Billiton(1). IMMI carried out 8,000 m of reverse circulation (RC) drilling in 2000, mainly at the Central deposit, to explore the chalcocite blanket discovered earlier by BHP-Billiton. Based on this drilling, IMMI estimated an indicated resource of 31.7 Mt at 0.80% copper and an additional inferred resource of 11.2 Mt grading 0.78% copper (Cargill, 2002). In 2001, IMMI continued RC drilling, mostly in the South deposit area, to test possible oxide resources, and then completed three diamond drill holes to test the deep hypogene copper-gold potential. Hole 150 intersected 508 m of chalcopyrite-rich mineralisation grading 0.81% copper and 1.17 g/t gold. Hole 159 intersected a 49 m thick chalcocite ------------------- (1) BHP and Billiton merged in 2001. Project No.: AAJV001 Page 6-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia blanket grading 1.17% copper and 0.21 g/t gold, followed by 252 m of hypogene covellite mineralisation grading 0.61% copper and 0.11 g/t gold. These three holes were sufficiently encouraging for IMMI to mount a major follow-up drill program. In late 2002, drilling in the far northern section of the property intersected 638 m of bornite-chalcopyrite-rich mineralisation in hole 270, starting at a depth of 222 m. This hole marked the discovery of the Hugo Dummett deposit. Project No.: AAJV001 Page 6-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 7.0 GEOLOGICAL SETTING 7.1 REGIONAL GEOLOGY Oyu Tolgoi occurs in an early to mid Paleozoic island arc environment, which is part of the Gurvansayhan terrane (Badarch et al., 2002). This terrane hosts several other South Gobi porphyry deposits, including Tsagaan Survarga (140 km northwest of Oyu Tolgoi). The terrane is composed of lower to mid Paleozoic metasediments and island arc basalts that rest upon a lower Paleozoic ophiolite complex. The structure of the terrane is complex and is dominated by imbricate thrust sheets, dismembered blocks and melanges (Badarch et al., 2002). Devonian to Carboniferous diorite and monzodiorite intrusive complexes appear to be spatially (and genetically?) associated with a major northeast-trending suture zone termed the East Mongolian Fault Zone. This suture, thought to be active from mid Paleozoic to Mesozoic times, forms the southern boundary of the Gurvansayhan terrane. On the northwest margin of the Gurvansayhan terrane (100 to 130 km northwest of Oyu Tolgoi) several other copper-gold porphyry systems and high-sulphidation alteration zones occur in an east-northeast-trending belt (e.g., Kharmagtai, Shuteen). The arc terrane, at 50 km scale around Oyu Tolgoi, is dominated by basaltic volcanics and intercalated volcanogenic sediments, intruded by plutonic-size hornblende-bearing granitoids of mainly quartz monzodiorite to possibly granitic composition. Carboniferous sedimentary rocks (identified by plant fossils) overlie this assemblage, including parts of the Oyu Tolgoi exploration area. In addition, the largest magmatic system near Oyu Tolgoi (7 km from porphyry alteration) is the Lower Permian, Naalkalic Hanbogd Complex. The Hanbogd Complex appears to comprise two adjacent sub-circular intrusions up to 35 km in diameter, possibly emplaced along N70E structures. Satellite imagery reveals a concentric structure, which correlates to abundant pegmatite dykes. The pegmatites are enriched in Rare Earth elements and Zr. The Hanbogd Complex has a flat roof, as indicated by numerous basaltic wall rock roof pendants, and may therefore have a "pancake" or lopolithic structure. 7.2 OYU TOLGOI PROPERTY GEOLOGY The Oyu Tolgoi property consists of a rectangular block approximately 10 km by 8 km in area in which at least four areas of mineralisation are found: South deposit, Southwest deposit, Central deposit and the Hugo Dummett deposits. In general, outcrops are sparse and constitute less than 20% of the area. A Neogene(?) piedmont outwash deposit forms a flat terrace dipping gently to the south and occupies a north-northwest-trending zone in the centre of the exploration block. This unit comprises red Project No.: AAJV001 Page 7-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia clay and gravel and is up to 40 m thick. Two major south-southeast drainages incise this terrace and are filled by Quaternary sands and gravels. A tentative hardrock stratigraphy is based mainly on drilling data, as well as detailed mapping of the exploration block (1:5000 scale), is shown in Figure 7-1. It comprises, from youngest to oldest: - Dacite flow units - Basaltic and andesitic tuff and flow units - Upper Sedimentary sequence - Lower Sedimentary sequence - Dacitic pyroclastic units - Augite Basalt flow and related breccias - Andesitic volcaniclastic units A wide variety of felsic to mafic dykes is found throughout the exploration block and in drill holes. Post mineral dykes comprise basalt, rhyolite, hornblende-biotite andesite, and biotite granodiorite intrusive units. The property also contains variably altered and mineralised porphyritic quartz monzodiorite dykes that may be genetically related to the copper-gold porphyry systems. Major structures trend N35E and N70E based on satellite imagery and geophysical interpretations. In addition, recent work in the sedimentary covered northern part of the property (Hugo Dummett region) has confirmed the occurrence of folded stratigraphy. Ongoing studies are attempting to unravel the attitude and extent of the folding event. Project No.: AAJV001 Page 7-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 7-1: STRATIGRAPHIC UNITS [STRATIGRAPHIC UNITS FIGURE] Project No.: AAJV001 Page 7-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 7.3 SOUTHWEST DEPOSIT The Southwest deposit is an gold-rich porphyry system, characterized by a pipe-like geometry, encompassing a high-grade core (>1 g/t Au) about 250 m in diameter and extending over 700 m vertically. The deposit is centred on small (metres to tens of metres wide) quartz monzodiorite dykes, possibly oriented N70E. Over 80% of the deposit is hosted by massive porphyritic augite basalt. Strong quartz veining (>20% volume) and secondary biotite alteration define the core of the porphyry system. There is no outward sericite zone; instead, weak epidote occurs at about a 600 m radius. The high-grade core is enclosed by a large low-grade ore shell (0.3% Cu; 0.3 g/t Au), 600 m by 2,000 m in area. The system is low sulphide (<5%), and the copper-gold is related to chalcopyrite. Bornite is minor (<20%). Moderate to strong hydrothermal magnetite and gypsum-anhydrite mineralisation are characteristic. The porphyry system is related to several generations of porphyritic quartz monzodiorite (Qmd) dykes intruding massive porphyritic augite basalt. The earliest Qmd dykes (OT-Qmd) occur in the high-grade core of the deposit; they are small (metres to tens of metres wide) and may be discontinuous between drill holes. The OT-Qmd dykes are strongly quartz-veined (>20% by volume) and exhibit intense sericite alteration that overprints and obscures early K-silicate alteration (mainly biotite). Detailed logging suggests that the OT-Qmd is a multiply injected dyke swarm intruded as high-temperature quartz veining and K-silicate alteration developed, with later dykes entraining early quartz vein clasts (but not sulphide mineralisation). On the northwest and east side of the high-grade core, relatively large quartz monzodiorite dykes (10 m to 50 m wide) with moderate to strong sericite alteration and weak sulphide mineralisation are intruded in N25E to N70E directions. These dykes are regarded as intra- to post-mineral, but although they delimit the high-grade core of the deposit, they generally are not observed to cut high-grade mineralisation. Hence the role of these dykes may be to provide a structural focus for the late mineralising fluids. They also host sporadic gold-rich base metal veins at a radius of about 600 m from the centre of the high-grade zone. The east side of the deposit is interpreted from ground-magnetics and drill data to comprise an N25E-trending 80NW-dipping structural zone intruded by the late quartz monzodiorite dykes. Since these dykes dip to the northwest, they underlie the high-grade orebody at depths >800 m. Although weakly copper-mineralised, the N25E dyke zone exhibits Au:Cu ratios of <1 (Au in g/t, Cu in %), a characteristic of the adjacent South deposit rather than the Southwest deposit. Strongly sericite-altered dykes along the N25E fault zone may represent the root zones for high sulphidation alteration, of which remnants are preserved in a downfaulted corridor extending north-northeast from the Southwest deposit. Project No.: AAJV001 Page 7-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia In the core of the Southwest deposit, early K-silicate alteration and quartz veining was followed by volumetrically minor implosion breccias characterized by shard-like, angular clasts of quartz vein, OT-Qmd and biotite-altered basalt wall rock clasts. These breccias contain early chalcopyrite as clasts or mineralised fragments, but also exhibit late pyrite-chalcopyrite mineralisation in their matrix. A highly irregular xenolithic quartz monzodiorite (i.e. entraining the breccia clasts) intrudes the implosion breccia. This intrusion varies from relatively unaltered to intensely altered and exhibits spectacular zones of coarse minerals including biotite, muscovite, tourmaline, pyrite and albite. Tourmaline occurs in rosettes up to 20 cm in diameter, while other coarse minerals may form crystals up to centimetres in size. Patches of massive pyrite and interstitial bornite occur locally with the "coarse mineral" alteration. These alteration assemblages show an evolution to strong hydrolytic alteration in the core of the deposit, coupled with final stages of mineralisation and quartz monzodiorite intrusion. 7.4 SOUTH DEPOSIT The South deposit is a copper porphyry deposit, developed mainly in basaltic volcanics and related to small, strongly-sericite altered quartz monzodiorite dykes. It is characterized by secondary biotite, magnetite and moderate intensity quartz veining (10% by volume), with strong late-stage overprinting by sericite-chlorite-smectite (intermediate argillic alteration). The main sulphide minerals are chalcopyrite and bornite. Unlike the nearby Southwest system, it is not gold-rich. The geometry of the system is poorly understood, but the prospect area covers about 400 m by 300 m in area, and mineralisation extends to depths of over 500 m. The South deposit is located at Turquoise Hill, where secondary copper as malachite and minor turquoise has been exploited, possibly during the Bronze Age period. The main oxide cap corresponds to Turquoise Hill, and malachite covers an area of 300 m by 80 m along a northwest-oriented ridge. Three ancient pits are located along this ridge. The oxide zone is 40 m thick and assays up to 4% Cu over 2 m drill core samples, but overall grades are not known. Two smaller areas of malachite, each about 100 m by 30 m, occur nearby on lower topographic ridges. The RC collar in hole OTRCD149, drilled to test the northern flank of Turquoise Hill near the ancient pits intersected 29 m grading 1.83% copper starting at surface in the malachite-rich zone. Hypogene porphyry mineralisation beneath the oxide cap is mainly chalcopyritebornite in basaltic volcanics with low pyrite content. Possibly due to the low sulphide content, chalcocite is not widely developed. The South deposit is intruded by sericite-altered quartz monzodiorite dykes, with weak to locally strong copper mineralisation, and by post-mineral andesite, rhyolite and basalt dykes. The post-mineral dykes are usually small (metres) but may occupy up to Project No.: AAJV001 Page 7-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 50% of the rock volume. However one major east-west trending, highly irregular rhyolite dyke is up to 50 m thick in places. The South deposit is bounded on its north and south sides by major N70E-oriented faults. Based on limited drill data and ground magnetic response, the northern fault juxtaposes a thick sequence of sedimentary rocks ((Tilde)200 m thick) that cap highsulphidation alteration and mineralisation against the South deposit, while the southern fault appears to delimit different and largely unmineralised volcanic and sedimentary rocks. 7.5 CENTRAL DEPOSIT The Central deposit includes high-sulphidation (covellite-chalcocite-enargite) and copper-gold (chalcopyrite-gold) porphyry styles, as well as a chalcocite enrichment blanket. High-sulphidation (HS) alteration and mineralisation are telescoped onto an underlying gold-rich porphyry system. The HS system is centred on multiple intruded quartz monzodiorite dykes characterized by a high intensity of porphyry-related quartz veining. The quartz monzodiorite (QMD) dykes have a complex geometry, and consequently their distribution and structural controls are poorly understood. Recent studies by Pollard and Taylor recognize up to 6 QMD phases, of which three are most common and can be differentiated in normal core logging. They intrude porphyritic augite basalt and possibly dacitic ash flow tuff, but volcanic rocks may comprise less than 20% of the deposit at upper levels (0 to 300 m depth). The Central deposit is partly exposed as an elevated hill consisting of intensely clayaltered, silicified and quartz-veined quartz monzodiorite, and minor tectonic breccia. A vertical profile exhibits an oxide zone 40 m to 60 m, usually devoid of mineralisation, overlying a chalcocite enrichment zone (up to 40 m thick), followed downward by pyrite-covellite-hypogene chalcocite that may extend to depths of more than 400 m. The covellite-chalcocite zone is pyritic ((Tilde)10%) and is hosted by buff coloured advanced argillic-altered quartz monzodiorite. The best covellite-chacocite mineralisation correlates to the highest intensity of quartz veining, suggesting that this mineralisation is inherited from earlier porphyry copper mineralisation. Current interpretations of the Central deposit (principally as defined by covellite-chalcocite and advanced argillic alteration) indicate it may be somewhat "funnel-shaped," suggesting that high-sulphidation alteration extended upward to a paleosurface. Laterally at the margins and at depth, the advanced argillic zone shows a transition to intermediate argillic and chlorite alteration assemblages that overprint early biotite alteration. Chalcopyrite mineralisation at these margins is commonly gold-rich, either relict from early gold-rich porphyry mineralisation or possibly HS-related. Project No.: AAJV001 Page 7-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 7.6 HUGO DUMMETT DEPOSIT The Hugo Dummett deposit is the northernmost of at least three mineralised centers comprising the Oyu Tolgoi copper-gold porphyry/high-sulfidation mineralised system. The deposit extends over a strike length of 2.6 km and appears to be bound on the northern end by a ENE trending, late high angle reverse fault that juxtaposes quartz monzodiorite intrusive rock, outcropping to the north of the deposit with the barren sediments that overlie the deposit. Underlying these sediments are dacitic ash flow tuffs and phyric basalt that constitute the principal host rocks of the deposit. These volcanic and volcaniclastic rocks appear to be folded into a monocline having its flat lying limb as the central core of the deposit and a steeply east dipping limb that bounds the eastern flank of the deposit. The western boundary of the monocline is cut by a steeply dipping to vertical fault referred to as the West BAT Fault. Quartz-monzodiorite (QMD) intrusions with varying degrees of chalcopyrite, pyrite mineralisation intrude into the underlying basalts as fingers and dykes irregularly along the strike extent of the Hugo Deposit. At the northern end of Hugo North, an intensely quartz stockworked QMD has been intersected in several deep holes proximimal to a significant increase in gold content of the bornite-rich mineralisation hosted by both the quartz-rich basalt and the QMD. In OTD514 the gold:copper ratio increases from <1:10 to >1:1 with increasing depth. Bornite, chalcopyrite mineralisation is centered on a zone of intense quartz veining that extends along the axis of the entire deposit. Highest grade mineralisation corresponds to zones of >90% quartz, which may be over 80 m thick in drill core. In long section the quartz vein zone, and corresponding high grade mineralisation (>2% Cu) is flat lying or dips at moderate angles to the north. The northerly plunge of the deposit is also in part due to a series of N70E and East-West cross faults that step the deposit down to the north. In cross section, it can be modeled as elliptical grade shells perpendicular to the vein zone extent, with dimensions up to 300 by 500 m, and oriented with the long axis of the ellipse approximately parallel to bedding. Host rocks are differentially altered. The dacitic ash flow tuff is intensely advanced argillic altered, including, quartz, pyrophyllite, andalusite, topaz, crandallite, alunite, diaspore, zunyite, kaolinite and late dickite. The augite basalt is altered to sericite, kaolinite, minor chlorite and locally pyrophyllite (typically at the ash flow tuff contact). At least locally strong hematite alteration encloses zones of intense advanced argillic alteration, and hematite typically forms a transitional zone to sericite-chlorite altered basaltic rocks below the ash flow tuff. Early K-silicate alteration is suspected to have been present in at least some Qmd intrusions and related wall rocks and spatially linked to the zone of intense quartz veining. K-silicate alteration is recognized in the basalt as biotite, although it is partly obscured by the above assemblages. Strongly Project No.: AAJV001 Page 7-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia mineralised intrusions are encountered mainly in the Hugo Dummett North deposit. These intrusions are characteristically red, and contain abundant quartz veins. Late, weakly to moderately mineralised Qmd intrusions contain sparse quartz veins and are typically sericite-altered. The Hugo Dummett area contains multiple unmineralised pre and post mineral dykes, that appear to trend northerly (still open to interpretation) and include pre-mineral(?) biotite granodiorite; late to post mineral biotite-hornblende andesite; and post mineral basalt and rhyolite dykes. The biotite granodiorite dykes are very prominent along the entire western flank of the deposit and in Hugo North they change from steeply dipping, 10 to 20 m thick dykes flanking the western edge of the > 2% copper grade shell into a large intrusive mass, similar to a dacitic dome, > 100 m to 200 m in thickness in the overlying barren sediments. Project No.: AAJV001 Page 7-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 8.0 DEPOSIT TYPES The Oyu Tolgoi deposits are copper-gold porphyry and related high-sulphidation copper-gold mineralisation types. Copper-gold porphyry deposits are low-grade bulk tonnage, where copper sulphides are finely disseminated in a large volume of rock. High-sulphidation copper-gold deposits for Oyu Tolgoi have similar characteristics, and both types are amenable to large-scale open pit or underground mining methods. Interpretation on the genesis of the high grade Hugo Dummett deposit is still evolving. Current thinking involves a variable depth to source implying multiple intrusions emplaced at varying depths and a prolonged period of magmatic activity. This activity cooled over time and resulted in the vertical telescoping of the mineralising system. This scenario should be viewed as a quartz rich cupola sitting above a zone of quartz stockwork over a shallower intrusive that caused "ponding" of mineralising fluids under the ignimbrite contact to form the highest grade (copper and gold) mineralisation. Project No.: AAJV001 Page 8-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 9.0 MINERALIZATION 9.1 SOUTHWEST DEPOSIT Copper-iron sulphide mineralisation in the Southwest deposit consists mainly of finely disseminated pyrite-chalcopyrite and minor bornite. The mineralisation is related to a late-stage sericite and sericite-chlorite-albite overprint, which affects the quartz monzodiorite intrusions and basaltic wall rocks, respectively. Molybdenite is also common but occurs mainly on late structures. Bornite is subordinate to chalcopyrite and is estimated to comprise less than 20% of the copper mineralisation. The bulk of the orebody is within basaltic wall rocks, with less than 20% hosted by quartz monzodiorite. Mineralization is characterized by high Au content. Gold:copper ratios (gold in g/t, copper in %) vary from 0.5 to 3, with highest ratios in the deeper part of the deposit and possibly in the core of the porphyry system. 9.2 SOUTH DEPOSIT Copper-iron sulphide mineralisation at the South deposit consists of finely disseminated pyrite-chalcopyrite and bornite. Bornite may be dominant in the most strongly mineralised zones (copper>1%). As at Southwest, molybdenite occurs locally on late-stage structures. 9.3 CENTRAL DEPOSIT The Central deposit contains several styles of mineralisation; volumetrically the most important is finely disseminated pyrite-covellite-chalcocite. The covellite mineralisation generally averages about 0.7% Cu and is characterized by high pyrite content (7% to 10%). In addition, it is mineralogically complex and contains minor amounts of chalcopyrite, bornite, enargite, tetrahedrite and tennantite. A chalcocite enrichment blanket (up to 40 m thick) is developed over parts of the Central deposit and usually corresponds directly to the most strongly quartz-veined zones in quartz monzodiorite. The quartz-veined zones are also typically strongly covellite mineralised, thereby suggesting an inheritance from earlier porphyry mineralisation, although there are exceptions where strong covellite correlates to the intensity of advanced argillic alteration rather than quartz vein intensity. However, polished section mineralogy indicates that the chalcocite is derived from chalcopyrite-bornite (shown by relict grains enclosed in chalcocite) and is therefore directly from the porphyry progenitor rather than indirectly from covellite. The base of the supergene chalcocite zone is mixed with covellite over metres to tens of metres. Project No.: AAJV001 Page 9-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 9.4 HUGO DUMMETT DEPOSIT High grade copper mineralisation at Hugo Dummett occurs predominantly as bornite, chalcocite and chalcopyrite. Pyrite, enargite, tennantite-tetrahedrite occur in subordinate amounts mainly in the Hugo Dummett South deposit. Sulphide associations correlate to the nature of alteration, which in turn is partly dependent on the host rock, but also exhibit a lateral zonation from the core of the high grade shell ellipse. A typical sulphide zonation from the high grade copper core to low grade copper mineralisation is, bornite + chalcocite, followed outward to chalcopyrite (+/- tetrahedrite-tennantite) and then finally pyrite (+/- enargite). Enargite, bornite + pyrite, and locally covellite are common sulphide minerals in the ash flow tuff. A large part of the Hugo Dummett South deposit is hosted by ash flow tuff, while in contrast, the high grade mineralisation at Hugo Dummett North is almost entirely within basalt. Bornite + chalcocite - chalcopyrite with minor, enargite, tetrahedrite-tennantite occur in the basalt and Qmd intrusions. Molybdenite occurs locally in all rock types. Gold (ppm): copper (%) ratio's over much of the deposit are 1 : 10, but in strongly quartz-veined Qmd intrusions and adjacent wall rocks encountered in Hugo Dummett North, gold: copper ratio's increase to 1 : 1. These high gold ratio's correlate with bornite. 9.5 OXIDIZED ZONE A deep oxidized zone occurs at Oyu Tolgoi. Although present water tables are in the order of 6 m to 8 m below the surface (average elevation 1,160 m), paleowater tables (which may be related to deep weathering during the Cretaceous) are 40 m to 60 m deep over most of the deposits. Owing to high pyrite contents inherent to high-sulphidation alteration, the Central deposit is characterized by 40 m to 60 m of highly leached, soft white clay with limonite and minor jarosite on fractures. A 5 m thick siliceous regolith above the clay covers a small hill at Central. At the South deposit, which is also a hill, malachite and minor turquoise occur in the oxide zone to depths of 40 m (or base of oxidation). This mineralisation is developed above richer zones of chalcopyrite-bornite mineralisation. At the South deposit, hypogene copper (sulphides) are almost completely removed in the oxide zone, but at Southwest, the oxide zone assays low-grade copper and gold. This is possibly due to partial depletion of sulphide, but it is also likely that high-grade mineralisation does not reach the present surface, as Au : Cu ratios are unchanged. Because of the low sulphide contents of South and Southwest, no significant supergene chalcocite has developed. The host rocks are dominated by basalt, and so the oxidized zone is characterized by green-yellow clays (possibly chlorite-smectite) and limonite on fractures. Calcite filling fractures is also common within the oxide zone over basaltic rocks. Project No.: AAJV001 Page 9-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 10.0 EXPLORATION Exploration at Oyu Tolgoi has been mainly by remote sensing and geophysical methods, including satellite image interpretation, detailed ground magnetics, Bouguer gravity and gradient array induced polarization (IP), as well as extensive drilling. Gradient array IP has been conducted on north-south and subsequently east-west lines at 200 m line spacing, with electrode spacing up to 11 km. Drill holes have been targeted to test IP chargeability targets or structural zones. Outcropping prospects (Southwest, South and Central) have been mapped at 1 : 1000 scale. The central part of the exploration block was mapped at 1 : 5000 scale in 2001, and the entire block was mapped at 1 : 10,000 scale in 2002. As described below, geophysical methods have been the most important exploration tool. The initial geophysical surveys conducted by BHP in 1996 consisted of airborne magnetics, ground magnetics and gradient array IP. The airborne magnetic survey was flown on 300 m spaced east-west lines approximately 100 m above surface level. The ground magnetic survey and IP survey were on 250 m line spacing; the latter showed chargeability anomalies over Central, South and Southwest. In 2001, subsequent to the Southwest high-grade discovery hole OTD150, IMMI contracted Delta Geoscience to conduct gradient array IP on 100 m spaced north-south lines over the 3 km by 4 km core block of Oyu Tolgoi. Using multiple current electrode (AB) spacing ranging from 1,000 m to 3,600 m, the sulphide assemblages in Southwest, South and Central deposits were clearly defined on all of the AB plans, indicating significant vertical depth extents for the mineralisation in all zones. The IP also defined a large, semi-circular feature with the Central deposit on the southern side and the Hugo Dummett IP anomaly on the north side. Considerable speculation regarding the origin of this feature ensued, including the possibility of a pyritic halo surrounding a porphyry copper core to sulphides, or a ring structure around a volcanic caldera. Drill testing on 200 m spaced holes along the east-west extension of the Hugo Dummett IP anomaly ultimately resulted in the drilling of hole OTD270 at the eastern end of the anomaly. This proved to be the discovery hole for Hugo South. With the recognition that the Hugo Dummett high-grade copper zone might be trending north-northeast, Delta Geoscience re-oriented the IP survey lines to east-west and re-surveyed the core block of Oyu Tolgoi on 100 m spaced lines using multiple AB current electrode spacing. This survey resulted in an entirely different chargeability signature that now appears to reflect a continuous zone of sulphide mineralisation extending north-northeasterly from the southwest end of the Southwest deposit through to the northernmost extent of the property, for a total strike length of approximately 5 km. Project No.: AAJV001 Page 10-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The Southwest deposit high-grade, near-vertical pipe clearly responds on this survey, becoming tightly constrained with depth. The Central deposit mineralisation now trends north to northeasterly and continues to be the dominant chargeability feature on the IP map, reflecting concentrations of pyrite up to 10% and the central covellite core of the high-sulphidation system. Extending north-northwesterly from Central, the strong IP anomaly reflecting 4% to 6% pyrite mineralisation extends through Hugo Dummett, with the high-grade copper mineralisation intersected in hole OTD270 and subsequent drill holes flanking it on the east side. The contrast between the copper-rich sulphide mineralisation and the pyrite-rich mineralisation reflects the overall sulphide concentration and the depth of burial of the copper-rich zone. Detailed total field, ground magnetic surveys, reading 25 m by 5 m and 50 m by 10 m centres, have been completed over the full Oyu Tolgoi tenement. Although done in two surveys, the data were merged to produce a high-quality magnetic image of the block. The structural fabric of the property is clearly reflected by the magnetic survey, as are the hydrothermal magnetite-altered basalts underlying South and Southwest deposit. The magnetite-rich, unmineralised basalts underlying the southern boundary of the property and buried under sedimentary cover on the east side are also clearly distinguished. The subtle, elongated magnetic features flanking the Hugo Dummett copper-rich zone may be related to deeply buried, hydrothermal magnetite-rich basalt similar to Southwest. Project No.: AAJV001 Page 10-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 11.0 DRILLING Diamond drill holes are the principal source of geological and grade data for the Oyu Tolgoi project. BHP had drilled 23 holes when IMMI acquired the project. IMMI started drilling in 2001 and continued through 2002 and 2003 (currently ongoing). As of the mineral resource cut-off date of 30 January 2003 for Southwest, South and Central deposits, drilling totalled just over 46,200 m in 74 drill holes for Southwest, 7,500 m in 23 drill holes for South and just over 26,700 m in 57 drill holes for Central. As of the mineral resource data cut-off date of 1 November 2003 for Hugo Dummett, the drilling that produced assay data for that area totals 129,680 m in 136 drill holes. The holes drilled at Southwest, South and Central deposits generally range in length from 60 to 1200 m, averaging 610 m. The Hugo Dummett deposit holes generally range in length from 330 m to 2,000 m, averaging 950 m. The locations of the drill holes are shown in Figure 11-1. Drilling was done by wireline method with H-size (HQ, 63.5 mm nominal core diameter) and N-size (NQ, 47.6 mm nominal core diameter) equipment using up to 14 drill rigs. Upon completion, the collar and anchor rods were removed and a PVC pipe inserted into the hole. Each hole collar was marked by a cement block inscribed with the hole number. Drilling in the latter half of 2003 included multiple daughter holes drilled from within the parent drill hole. In this technique, a bend is placed in the parent hole at the location where the planned daughter holes are to branch off. The bend is achieved by means of a Navi-Drill(R) (navi) bit, which is lowered down the hole to the desired depth and aligned in the azimuth of the desired bend. When the navi motor is operating, the rods do not rotate but remain stationary, holding the navi motor at the desired azimuth. The navi bit rotates at the bottom of the hole by pumping water down the hole under pressure. As the navi bit advances, a bend is achieved at the rate of 1 degrees every 3 m. For example, to achieve a 15 degrees bend in the hole, a 45 m interval is required. No core is recovered from the navi-drilled interval. Once the parent hole is completed, a daughter hole is initiated by rotating the rods to cut a lip in the bend, with the bit positioned at the desired start point of the daughter hole. A chrome barrel, which is more rigid than a standard barrel, is often used for this operation. Once a new hole has been started, the navi bit can be used if necessary to direct the hole in any direction required. Drill hole collars were located respective to a property grid. Proposed hole collars and completed collars were surveyed by a Nikon Theodolite instrument relative to 18 survey control stations established during a legal survey of the property in August 2002. The drill holes were drilled at an inclination of between 45 degrees and 90 degrees, with the majority between 60 degrees and 70 degrees. Holes were drilled along 035 degrees and 125 degrees azimuths in Southwest and South, 0 degrees and 180 degrees azimuths in Central, and 0 degrees, 125 degrees and 305 degrees Project No.: AAJV001 Page 11-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia azimuths in Hugo Dummett. Down-hole surveys were taken about every 50 m by the drill contractor using a multi-shot measurement system (RANGER survey instrument). This system has only been in use for drill holes OTD290 and greater. Earlier drilled holes used a single-shot Sperry Sun instrument. Standard logging and sampling conventions were used to capture information from the drill core. The core was logged in detail onto paper logging sheets, and the data was then entered into the project database. The core was photographed before being sampled. AMEC reviewed the core logging procedures at site. Drill core was found to be well handled and maintained. Material was stored as stacked pallets in an organized "core farm". Data collection was competently done. IMMI maintained consistency of observations from hole to hole and between different loggers by conducting regular internal checks. Core recovery in the mineralised units was excellent, usually between 95% and 100%. Very good to excellent recovery was observed in the mineralised intrusive sections checked by AMEC. Overall, the IMMI drill program and data capture were performed in a competent manner. Project No.: AAJV001 Page 11-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 11.1: NOVEMBER 2003 DRILL HOLE COLLAR PLAN-HUGO DEPOSIT [DRILL HOLE COLLAR PLAN MAP] Project No.: AAJV001 Page 11-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 12.0 SAMPLING METHOD AND APPROACH Rock sampling for resource estimation was conducted on diamond drill core obtained from holes drilled between May 2001 and November 2003 in the all deposit areas. Collar spacing was approximately 100 m. The holes were up to 2,000 m long and inclined between 45 degrees and 90 degrees. Samples were taken at 2 m intervals down the drill holes, excluding barren dykes that extend more than 10 m along the core length. NQ and HQ core sizes were routinely used, and one-half of the core was taken for sampling. Since there were no adverse factors that would affect quality, all samples collected to date are considered representative of the mineralisation being investigated. The core was split with a rock saw, flushed regularly with fresh water. Core recovery was good, with relatively few broken zones. To prevent sampling bias, the core was marked with a continuous linear cutting line before being split. Samples were placed in cloth bags and sent to the on-site preparation facility for processing. Reject samples were stored in plastic bags inside the original cloth sample bags, were placed in bins on pallets and stored at site. Duplicate pulp samples were stored at site in the same manner as reject samples. Pulp samples used for assaying were kept at the assaying facility for several months, then transferred to a warehouse in Ulaanbaatar. Significant composited assays are shown as Appendices in previous AMEC Technical Reports on Oyu Tolgoi and Hugo Dummett deposits and are not duplicated here. Project No.: AAJV001 Page 12-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY 13.1 SAMPLE PREPARATION AND SHIPMENT Split core samples were prepared for analysis at an on-site facility operated by SGS-Analabs Pty. Ltd (SGS Analabs). The samples were then shipped under the custody of IMMI to Ulaanbaatar, where they were assayed at a laboratory facility operated by SGS Analabs. The laboratory was certified under ISO 9002:1994, which was due to lapse 15 December 2003. SGS Analabs propose to seek certification under ISO 9002:2000 in April 2004. All sampling and QA/QC work was overseen on behalf of IMMI by Dale A. Sketchley, M.Sc., P.Geo., a geological consultant employed by Acuity Management Ltd. The samples were initially assembled into groups of 15 or 16, and then 4 or 5 quality control samples were interspersed to make up a batch of 20 samples. The quality control samples comprised one duplicate split core sample, one uncrushed field blank, a reject or pulp preparation duplicate, and one or two standard reference material (SRM) samples (one <2% Cu and one >2% Cu if higher grade mineralisation was present based on visual estimates). The two copper SRMs were necessary because SGS Analabs used a different analytical protocol to assay all samples >2% Cu. The split core, reject, and pulp duplicates were used to monitor precision at the various stages of sample preparation. The field blank can indicate sample contamination or sample mix-ups, and the SRM was used to monitor accuracy of the assay results. The SRMs were prepared from material of varying matrices and grades to formulate bulk homogenous material. Ten samples of this material were then sent to each of at least seven international testing laboratories. The resulting assay data were analyzed statistically to determine a representative mean value and standard deviation necessary for setting acceptance/rejection tolerance limits. Blank samples were also subjected to a round-robin program to ensure the material was barren of any of the grade elements before they were used for monitoring contamination. A total of 33 different reference materials were developed and used to monitor the assaying of six different ore types made up of varying combinations of chalcopyrite, bornite, primary and supergene chalcocite, enargite, covellite, and molybdenite. Split core samples were prepared according to the following protocol: - The entire sample was crushed to 90% minus 2 to 3 mm. - A 1 kg sub-sample was riffle split from the crushed minus 2 to 3 mm sample and pulverized to 90% minus 75 (mu)m (200 mesh). Project No.: AAJV001 Page 13-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - A 150 g sub-sample was split off by taking multiple scoops from the pulverized 75 (mu)m sample. - The 150 g sub-sample was placed in a kraft envelope, sealed with a folded wire or glued top, and prepared for shipping. All equipment was flushed with barren material and blasted with compressed air between each sampling procedure. Screen tests were carried out on crushed and pulverized material from one sample taken from each batch of 15 or 16 samples to ensure that sample preparation specifications were being met. Prepared samples were placed in wooden shipping boxes, locked, sealed with tamper-proof tags, and shipped to Ulaanbaatar for assaying. Sample shipment details were provided to the assaying facility both electronically and as paper hard copy accompanying each shipment. The assaying facility then electronically confirmed sample receipt, the state of the tamper-proof tags, and assigned laboratory report numbers back to site. 13.2 ASSAY METHOD All samples were routinely assayed for gold, copper, and molybdenum. Gold was determined using a 30 g fire assay fusion, cupelled to obtain a bead, and digested with Aqua Regia, followed by an AAS finish. Copper and molybdenum were determined by acid digestion of a 5 g subsample, followed by an AAS finish. Samples were digested with nitric, hydrochloric, hydrofluoric, and perchloric acids to dryness before being leached with hydrochloric acid to dissolve soluble salts and made to volume with distilled water. 13.3 QA/QC PROGRAM Assay results were provided to IMMI in electronic format and as paper certificates. Upon receipt of assay results, values for SRMs and field blanks were tabulated and compared to the established round-robin program results. The following batch acceptance/rejection criteria were applied: - Automatic batch failure if the SRM result was greater than the round-robin limit of three standard deviations. - Automatic batch failure if two consecutive SRM results were greater than two standard deviations on the same side of the mean. Project No.: AAJV001 Page 13-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Automatic batch failure if the field blank result was over a pre-set limit of 0.06 g/t Au or 0.06% Cu. If a batch failed, it was re-assayed until it passed. Override allowances were made for barren batches. Batch pass/failure data were tabulated on an ongoing basis, and charts of individual reference material values with respect to round-robin tolerance limits were maintained. Laboratory check assays were conducted at the rate of one per batch of 20 samples, using the same QA/QC criteria as routine assays. 13.3.1 STANDARDS PERFORMANCE IMMI strictly monitored the performance of the SRM samples as the assay results arrived at site. Since the inception of the QA/QC program in March 2002, the ability of the laboratories to return assay values in the prescribed SRM ranges has improved. The failure rate appears to oscillate between 2% and 10% (although if failed SRMs with gold values close to the detection limit are excluded at the higher rates, the failure rate commonly is lower; Figure 13-1). Charts of the individual SRMs were included as an Appendix in the November 2003 Technical Report on the Hugo Dummett deposit and will not be replicated here. All samples were given a "fail" flag as a default entry in the project database. Each sample was re-assigned a date-based "pass" flag when assays had passed acceptance criteria. At the data cutoff date of 1 November 2003, only a very small number of assayed samples still had the "fail" flag (less than 1% of total assays). The relative uncertainty introduced to the mineral resource estimates by using this very small number of temporarily failed samples should be very low. Project No.: AAJV001 Page 13-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Figure 13-1: SRM FAILURE CHART [SRM FAILURE CHART] The SRM database compiled for Standard 9 onwards now includes a tag for the deposit area. Most of the SRMs used after March 2003 were applied almost exclusively to Hugo. 13.3.2 BLANK SAMPLE PERFORMANCE Assay performance of field blanks is presented in Figure 13-2 to Figure 13-4 for gold, copper, and molybdenum. In these figures, the lower blue horizontal line represents the analytical detection limit (ADL) of the respective metal, and the upper yellow horizontal line represents the analytical rejection threshold (ART). The gold ADL is 0.01 g/t with an ART of 0.06 g/t; copper ADL was initially 0.01% and is now 0.001% with an ART of 0.06%; and molybdenum ADL was initially 5 ppm and is now 10 ppm with an ART of 20 ppm. The results show a low incidence of contamination and a few cases of sample mix-ups, which were investigated at site and corrected. Project No.: AAJV001 Page 13-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 13-2: BLANK SAMPLE RESULTS FOR GOLD [BLANK SAMPLE RESULTS FOR GOLD GRAPH] Project No.: AAJV001 Page 13-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 13-3: BLANK SAMPLE RESULTS FOR COPPER [BLANK SAMPLE RESULTS FOR COPPER GRAPH] Project No.: AAJV001 Page 13-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 13-4: BLANK SAMPLE RESULTS FOR MOLYBDENUM [BLANK SAMPLE RESULTS FOR MOLYBDENUM GRAPH] 13.3.3 DUPLICATES PERFORMANCE The QA/QC program currently used four different types of duplicate samples: core, coarse reject, pulp, and laboratory check pulps (samples sent to an umpire lab). CORE, COARSE REJECT AND PULP DUPLICATES AMEC reviewed the core, coarse reject, and pulp duplicate samples for the Oyu Tolgoi deposits. The pulp duplicates reproduced well only for copper values. Pulp and reject duplicate types for each metal showed similar high variability to good reproducibility trends from near detection values towards higher grade values. Gold core and, to a lesser extent, molybdenum core duplicate patterns generally defined such a trend, but the persistent higher variability in this duplicate type indicates sample heterogeneity due to coarse grains (gold) or possible fracture or narrow veinlet focussed mineralisation. Patterns for all metals were symmetric about zero, suggesting no bias in the assay process. AMEC also evaluated the absolute percent relative difference for duplicate pairs against the percentile ranking of the grade in the sample population. For the 90th Project No.: AAJV001 Page 13-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia percentile of the population, a maximum difference of 10% is recommended for the pulp duplicates and 20% for the coarse reject duplicates because these duplicate types can be controlled by the subsampling protocol. The same criteria do not apply to core duplicates because these differences cannot be controlled by the subsampling protocol; however, the heterogeneity of the mineralisation ideally would allow the difference to be less than 30%. Table 13-1 and Table 13-2 summarize the results of these analyses for each type of sample. The core duplicates are above the ideal value of 30% for gold samples, whereas the coarse reject duplicates reproduce well for all elements. TABLE 13-1: PERCENT DIFFERENCE AT THE 90TH POPULATION PERCENTILE (% DIFF) OF DUPLICATE SAMPLE ANALYSES, SOUTHWEST, SOUTH AND CENTRAL DEPOSITS, OYU TOLGOI PROJECT
SOUTHWEST OYU ------------------------------ CENTRAL OYU AU SOUTH OYU --------------- CU -------------- CU CU AREA % DIFF. % % % % DUPLICATE TYPE LIMIT NUMBER DIFF. NUMBER DIFF. NUMBER DIFF. NUMBER DIFF. ------------------------------------------------------------------------------------------- Core 30 443 38 265 43 74 25 378 35 Coarse Reject 20 206 15 130 21 39 16 173 13 Pulp 10 290 6 162 11 47 4 304 6
TABLE 13-2: PERCENT DIFFERENCE AT THE 90TH POPULATION PERCENTILE (% DIFF) OF DUPLICATE SAMPLE ANALYSES, HUGO DEPOSIT, OYU TOLGOI
CU AU MO ----------------- --------------- ------------------ DUPLICATE TYPE % DIFF. LIMIT NO. % DIFF. NO. % DIFF. NO. % DIFF. -------------------------------------------------------------------------------------------- Core 30 1,254 25 195 50 1,254 25 Coarse Reject 20 611 9 97 20 117 20 Pulp 10 591 5 108 20 591 15
One of the contributing factors to the poor performance of core and pulp duplicates was that the data included in the charts were limited to values above 20 times the analytical detection limit. This filter was sensitive to metals that typically have a large number of low values and leaves few data points for the analysis (i.e., molybdenum and, to a lesser degree, gold values). Gold pulp duplicates also did not reproduce as well because a small proportion of the elevated values coincided with a coarser grain gold size, which likely results in gold grain liberation during pulverization. Grain size studies currently being done by IMMI staff to better understand the variation and distribution of the various size fractions indicate that only a small number of samples Project No.: AAJV001 Page 13-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia contain a minor proportion of coarser gold and that no changes are required to the sampling protocol. AMEC supports this conclusion. LABORATORY PULP DUPLICATES Descriptive statistics and precision for gold and copper assays were analyzed using assay laboratory pulp duplicates. Data for molybdenum were not compiled. Results for gold showed no bias and a precision of 7%. Copper exhibited no bias and a precision of 4%. Both precision estimates were within expected ranges for this type of sample. 13.3.4 REASSAY OF SAMPLES FROM SOUTHWEST DEPOSIT Samples taken from diamond drill holes in the sequence OTD149 to OTD190 from Southwest were originally assayed prior to the implementation of a formal QA/QC program. AMEC recommended that a re-assay program be completed to determine if any assay biases were present for these samples. AMEC stated that, "Once control has been achieved, 5 to 10% of the earlier assayed samples that are above the resource Cut-off grade should be reassayed under the new protocols." All samples from within the Southwest deposit mineralised zone were therefore compiled and 20% selected by taking every fifth sample down drill holes for a total of 702 samples. Samples were grouped into batches of 20, which included five quality control samples comprising a reference standard, a field blank, a core duplicate, an original pulp duplicate and a new pulp duplicate. A total of 53 batches, consisting of 1,060 samples, were sent to the SGS Welshpool analytical facility in Australia for gold, copper and molybdenum assays plus additional multi-element analyses. Gold and copper assays were processed through the Oyu Tolgoi QC program, with re-assays requested for failures according to established pass/failure criteria. The data analysis and summary presented below were completed by D. Sketchley in his memo entitled, "South West Oyu Re-assay Program - Bias Assessment (Revised)," from February 2003. AMEC reviewed the data and agrees with the assessment. Analysis of the gold, copper and molybdenum scatter plots, QQ plots, relative difference plots, box plots and descriptive statistics for all data indicated a positive bias in the original gold and copper assays. These were assessed further by developing QQ plots for various grade ranges. The plotted grade ranges for gold were 0 to 2 g/t, 0 to 4 g/t, 0 to 6 g/t and 0 to 10 g/t. Based on distinctive patterns in these QQ plots, the gold data were grouped into grade ranges corresponding to 0 to 2.5 g/t, 2.5 to 3.9 g/t, 3.9 to 6 g/t and 6 to 10 g/t. The grade ranges for copper were 0 to 1%, 0 to 2%, 0 to 3% and 0 to 4%. Based on distinctive patterns in these QQ plots, the copper data Project No.: AAJV001 Page 13-9 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia were grouped into grade ranges corresponding 0 to 1.35%, 1.35 to 1.70%, and 1.70 to 4%. A bias assessment was conducted on moving grade windows to obtain a better understanding of the patterns. Data were trimmed at the lower and upper grade boundaries for gold windows varying in width from 1 to 10 g/t and for copper windows varying in width from 0.5 to 4%. Statistical parameters were tabulated for these windows, including the percentage relative differences between the original and reassay mean grades for each window. The resulting relative difference bias plots are shown in Figure 13-5 for gold and Figure 13-6 for copper. Gold bias results were contoured at 5% and 10% to assist in determining grade ranges in the original data that have a significant bias. The percentage relative differences for grade windows with a width of 2 g/t from 0 to 2 g/t, 2 to 4 g/t and 4 to 6 g/t Au are highlighted in bold in Figure 13-2, as is the grade window with a width of 4 g/t from 6 to 10 g/t Au. These highlighted data correspond roughly to the previously described data ranges with distinctive bias patterns. It can be seen that the original data have a positive bias of between 5% and 10% below 2 g/t Au, of less than 5% from 2 to 6 g/t Au and of more than 10%, with an average of 14%, from 6 to 10 g/t Au. Copper bias results also were contoured at 5% and 10% to assist in determining grade ranges in the original data that have a significant bias. The percentage relative differences for grade windows with a width of 1% from 0 to 1% Cu and from 1 to 2% Cu are highlighted in bold in Figure 13-3, as is the grade window with a width of 2% from 2 to 4% Cu. These highlighted data correspond roughly to the previously described data ranges with distinctive bias patterns. The original data have a positive bias of less than 5% below 2% Cu and of more than 10%, with an average of 11%, from 2 to 4% Cu. DATA ADJUSTMENT PARAMETERS In order to use the original gold and copper date for resource estimation, adjustments are warranted where significant biases are evident. Adjustments should then be applied to data from all drill holes prior to OTD231. For gold, data below 2 g/t and above 6 g/t are biased by more than 5%. At a mean grade of 1.0 g/t Au, the approximate copper equivalent grade is 0.55% using US$300 per ounce gold and US$0.80 per pound copper (CuEq[$0.80] = %Cu+[g/tAu*9.65]/17.64). At this gold grade, an average bias of 8.5% for the 0 to 2 g/t Au grade window equates to a copper equivalent grade of 0.05%, which is negligible, hence no adjustment is proposed. Above 6 g/t Au, the effect of the bias is much higher, and the impact on copper equivalent grades is significant. At a mean grade of Project No.: AAJV001 Page 13-10 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 8 g/t Au, the approximate copper equivalent grade is 4.38% with an average bias of 14%, which equates to a copper equivalent grade of 0.61%. Hence a proportional adjustment of the original grades equal to the average bias of 14% is proposed for pre- OTD231 data over 6 g/t Au. For copper, data above 2% Cu are biased by more than 5%. A mean grade of 3% Cu with an average bias of 11% equates to 0.33% Cu. This grade bias is significant, hence a proportional adjustment of the original grades equal to the average bias of 11% is proposed for pre-OTD231 data over 2% Cu. FIGURE 13-5: RELATIVE DIFFERENCE GOLD BIAS PLOT [RELATIVE DIFFERENCE GOLD BIAS PLOT CHART] Project No.: AAJV001 Page 13-11 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 13-6: RELATIVE DIFFERENCE COPPER BIAS PLOT [RELATIVE DIFFERENCE COPPER BIAS PLOT CHART] 13.3.5 SPECIFIC GRAVITY PROGRAM Samples for specific gravity determination were taken at approximately 10 m intervals per drill hole and tabulated by rock type. The specific gravity for non-porous samples (the most common type) was calculated using the weights of representative samples in water (W2) and in air (W1). The bulk density was calculated by W1/(W1-W2). AMEC believes this method to be appropriate for the non-porous mineralised units and barren dykes. Less-common porous samples were dried and then coated with paraffin before weighing. Allowance was made for the weight and volume of the paraffin when calculating the specific gravity. Project No.: AAJV001 Page 13-12 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 14.0 DATA VERIFICATION As a test of data integrity, the data used to estimate the February 2003 Southwest, South and Central mineral resources and the November 2003 Hugo mineral resource were checked several ways. AMEC conducted a 5% check of randomly chosen drill holes; copper, gold, and molybdenum values were checked against the original electronic assay certificates. Only rare differences were found, in less than 0.1% of data reviewed. These differences are due to sample mix-ups at site that have since been corrected in the database. Collar coordinates were checked against the database entries. No discrepancies were observed. AMEC also checked the downhole survey data. Camera shots and RANGER output were read for the check drill holes and compared to those stored in the resource database. A few errors with minor differences in the azimuth and dip readings were found. These error types should have minimal impact on the resource estimate work. IMMI has reviewed the method of survey data transfer into its master database and has updated the protocols that govern the entry of this type of data. AMEC reviewed the new protocols and agrees with them. Full implementation, including audits on older data, was to be completed by the end of 2003. AMEC concludes that the assay and survey database used for the Oyu Tolgoi project mineral resource estimation is sufficiently free of error to be adequate for resource estimation. Project No.: AAJV001 Page 14-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 15.0 ADJACENT PROPERTIES Adjacent properties are not relevant for the review of the Oyu Tolgoi project. Project No.: AAJV001 Page 15-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING 16.1 INTRODUCTION IMMI's exploration team has identified four deposits at Oyu Tolgoi. In the current mine schedule, three of these deposits, Southwest. South and Central, are to be mined by open pit methods. The fourth deposit, Hugo Dummett, is deeper and can be separated into two distinct areas - Hugo South and Hugo North. Due to its depth Hugo North will be mined by underground methods whereas Hugo South has the potential to be accessed by either a deep open pit or mined from underground. The Southwest deposit is a gold rich porphyry system characterised by pipe-like geometry approximately 250 m in diameter and extending over 700 m vertically. The copper mineralisation is dominated by chalcopyrite, with minor bornite (less than 20%). The Central deposit is 'funnel' shaped with a chalcocite enrichment blanket overlying a large covellite zone. A chalcopyrite/gold zone lies at the base of the covellite zone, although this is expected to contribute to less than 5% of the material from the Central deposit. The South deposit outcrops as copper oxides that are underlain by secondary sulphides and then chalcopyrite. The copper grade is lower than the other three deposits and there is little gold. Some of the South deposit will fall within the bounds of the Southwest pit. Hugo South commences at about 300 m below surface and is characterised by a high grade core. Hugo North dips away and is characterized by very high copper grades at a depth of 1,000 m or more. Gold appears to increase with depth with some coarse, visible particles observed in the drill core. Copper mineralisation consists of chalcopyrite, bornite and chalcocite. The metallurgical response of samples of drill core from the Southwest, Central and the Hugo Dummett deposits have been investigated in a number of test programs. Test work was carried out to establish basic comminution parameters, the amenability of recovery of gold by gravity concentration and the amenability of copper and gold recovery by flotation. Limited testwork was also conducted on the South deposit. However, for the purpose of the Scoping Study, South deposit was treated as part of Southwest. SGS Lakefield, a major metallurgical laboratory with extensive experience in flotation analysis and gravity testing, conducted the testwork. Minnovex conducted additional work on comminution and Terra Mineralogical conducted a major mineralogical assessment that is ongoing. IMMI was responsible for selection of sample and management of the program. Project No.: AAJV001 Page 16-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The comminution tests included determination of the Bond rod (RWI) and ball mill (BWI) work indices and Bond abrasion index (Ai), autogenous grinding Specific Power Index (SPI), JK Tech autogenous grinding parameters and AR MacPherson autogenous grinding work index (AWI). These tests were performed on lithological composites from the various deposits. Gravity recoverable gold (GRG) tests were done on a number of composite samples from the Southwest and Central deposits. The flotation tests were conducted to provide an indication of basic flotation response for the various samples. The data produced included concentrate grades and metal recoveries possible for the various samples and deposits, as well as reagent consumption data. Additionally, this work identified the presence of impurity elements in some of the concentrates. Each testwork consultant documented the results of their work in a series of reports. This extensive list is provided in Section 22. The review by AAJV, which is summarized in this section, was confined to the work completed and reported in the documents listed in Section 22. Based on this review, AAJV considers that the testwork is adequate to support this Scoping Study. 16.2 METALLURGICAL TEST WORK REVIEW Comminution data generated for the composite samples tested showed that Southwest had the highest rod and ball mill work indices, followed by Hugo South with the Central composites having the lowest work indices. Table 16-1 summarises average data for these deposits. TABLE 16-1: COMMINUTION AVERAGE DATA FOR OYU TOLGOI COMPOSITES
JK TECH PARAMETERS AWI RWI BWI ------------------ DEPOSIT (kWh/t) (kWh/t) (kWh/t) A X b Ta Ai ---------------------------------------------------------------------------------------------------- Southwest 17.8 18.5 18.9 42.9 0.56 0.155 Central Hugo 11.5 12.3 11.7 84.0 0.97 0.147 Hugo South 14.5 13.3 0.198 Hugo North 15.0 14.6 0.199 ----------------------------------------------------------------------------------------------------
This data indicates that the Southwest ore is moderately hard to grind, either autogenously or in rod and bait milling. The Central deposit data show that this material is moderately soft to grind, either autogenously or conventionally. The rod Project No.: AAJV001 Page 16-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia and ball mill work index data for Hugo South show that this is intermediate between the two other deposits with respect to conventional grinding characteristics. The very limited work done on Hugo North indicates that this ore is reasonably hard. The abrasion index data indicates that, in each case, the composites were slightly abrasive. Gravity Gold Recovery (GRG) tests on samples from the Southwest and Central deposits gave GRG values between 12% and 45% of gold in the feed. This assessment employed sequential grinding of flotation feed samples (not flotation concentrates) and use of a centrifugal gravity concentrator. Table 16-2 shows the test and predicted plant data for these samples. TABLE 16.2: GRG TESTWORK RESULTS AND FULL-SCALE DISCOUNTS
PREDICTED PREDICTED FULL-SCALE GRG PREDICTED CLEAN UP GRAVITY Au RECOVERY HEAD GRADE, RECOVERY FULL-SCALE LOSSES TO BULLION SAMPLE DEPOSIT g/t Au % PRIMARY RECOVERY % % --------------------------------------------------------------------------------------------------------- OT-1 SOUTHWEST 0.49 21.4 14.3 50 7.2 OT-2 SOUTHWEST 2.10 44.8 30.0 50 15.0 OT-3 SOUTHWEST 2.29 16.3 10.9 50 5.5 OT-7 CENTRAL 0.49 12.0 8.04 50 4.0
Table 16-2 indicates that the maximum predicted operating plant recovery of gold by gravity concentration and clean-up, from a Southwest composite, is 15% of gold in new feed. Three of the four samples tested were predicted to have gold recoveries of less than one-half of this recovery. The gold recovery data showed that gravity recovery of gold was not necessarily increased at higher gold head grades. Flotation test work on samples from the various deposits showed that copper and gold could be recovered into concentrate using a conventional flotation circuit and reagent regime without a gravity circuit. The flotation circuit used is shown as in Figure 16-1. Project No.: AAJV001 Page 16-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 16-1: OYU TOLGOI CLOSED FLOTATION FLOWSHEET [FLOW CHART] SGS Lakefield assessed flotation response with several primary grind sizes. For the purpose of the Scoping Study, AAJV used a value of 80% passing 100 (Micro)m for all deposits. Additional analysis and testing is required to determine the grind size - recovery relationship and optimise this component of the plant. To improve liberation of copper sulphides, and, therefore, maximum concentrate grades, regrinding of rougher concentrates prior to cleaner flotation was required. The reground product size required to achieve this was generally 80% passing 25 (Micro)m. Later testwork on the Southwest samples showed that a regrind size of 80% passing 20 (Micro)m is more appropriate, with higher concentrate copper grades and recoveries compared to coarser sizes. In some cases when pyrite was present, liberation of the copper sulphides was improved with regrinding, but additional pyrite depressant was required to achieve maximum copper concentrate copper grades. Depending upon the mineralogy of the samples tested, concentrate grades ranged from approximately 20% copper to approximately 40% copper. The lower grade concentrates were associated with pyrite-rich samples. The highest copper grades were obtained from secondary copper sulphide mineralised samples with tow pyrite content. Chalcopyrite samples low in pyrite produced concentrate grades of Approximately 28% copper. Project No.: AAJV001 Page 16-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Copper recovery ranged from approximately 70% to approximately 95%. Factors affecting the copper recovery grade relationship included copper head grade and copper mineralisation. Gold recovery to concentrate was less than copper recovery in all cases. Gold recovery appeared to be influenced by copper head grade, copper mineralisation and gold head grade. Locked cycle test data, for composite samples from each of the deposits tested, are summarised in Table 16-3, Table 16-4, Table 16-5, and Table 16-6. TABLE 16-3: SOUTHWEST LOCKED CYCLE TEST RESULTS
PRODUCT/ ASSAY SAMPLE 1 SAMPLE 2 SAMPLE 3 ------------------------------------------------------------------------------------------- Mineralogy Chalcopyrite Chalcopyrite Chalcopyrite TEST NUMBER F104 F97 F121 Head Grade, Cu % 1.85 0.93 0.66 Head Grade, Au g/t 0.10 1.68 1.47 Primary grind P80 (Micro)m 150 88 103 Regrind P80 (Micro)m 21 19 17 3RD CLEANER CONCENTRATE: Cu% 27.5 28.2 28.9 Aug/t 20.9 43.2 52.1 Cu Recovery % 83.0 92.5 90.0 Au Recovery % 64.1 78.1 73.3
Table 16.4: Central Deposit Locked Cycle Test Results
PRODUCT/ASSAY SAMPLE 4 SAMPLE 5 SAMPLE 6 SAMPLE 7 ----------------------------------------------------------------------------------------------------------------- Mineralogy Chalcocite Covellite Chalcocite-covellite Chalcopyrite-bornite TEST NUMBER F134 F133 F131 F122 Head Grade, Cu % 1.02 0.65 1.00 0.73 Head Grade, Au g/t 0.18 0.14 0.09 0.40 Primary grind P80 (Micro)m 100 100 100 150 Regrind P80 (Micro)m 25 29 29 25 NaCN to Cleaners g/t 20/10/10 20/10/10 20/10/10 3RD CLEANER CONCENTRATE: Cu% 21.6 26.3 36.9 28.5 Aug/t 1.97 1.94 1.40 9.38 Cu Recovery % 74.5 83.8 78.9 79.3 Au Recovery % 38.5 29.5 30.5 47.8
Project No.: AAJV001 Page 16-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 16-5: HUGO SOUTH DEPOSIT (SOUTHERN PART) LOCKED CYCLE TEST RESULTS(1)
CHALCOPYRITE CHALCOCITE PRODUCT/ ASSAY COMPOSITE COMPOSITE ------------------------------------------------------------------------- Mineralogy Chalcopyrite Chalcocite TEST NUMBER F45 F33 Head Grade, Cu % 1.38 1.90 Head Grade, Au g/t 0.09 0.12 Primary grind P(80) (Micro)m 150 98 Regrind P80 (Micro)m 27 24 3RD CLEANER CONCENTRATE: Cu % 28.9 40.5 Au g/t 1.16 1.91 Cu Recovery % 89.6 88.9 Au Recovery % 55.3 68.2
Samples were not available for batch or locked cycle testing of the northern part of Hugo South at the time of the above tests. Testing will be completed when samples become available. Similarly, locked cycle tests were not done on samples from the Hugo North deposit. Batch testing, however, was done on several composite samples from the deposit. Data are summarised in Table 16-6. TABLE 16-6: BATCH TEST RESULTS FOR HUGO NORTH COMPOSITE SAMPLES
PRODUCT/ ASSAY FNE-1 FNE-2 FNE-3 FNE-4 ------------------------------------------------------------------------------------------ Mineralogy Chalcopyrite Chalcopyrite Chalcocite Chalcopyrite TEST NUMBER F61 F62 F75 F64 Head Grade, Cu % 1.82 2.43 1.55 5.72 Head Grade, Au, g/t 0.18 0.10 0.07 1.85 Primary grind P(80) 164 153 103 119 urn Regrind P(80) (Micro)m 19 17 21 22 3RD CLEANER CONCENTRATE: Cu % 33.9 35.4 31.9 53.4 Au g/t 2.52 1.07 2.66 17.2 As % 0.072 0.011 0.010 0.077 F % 0.050 0.030 0.040 0.02 Cu Recovery % 83.2 90.5 88.2 96.9 Au Recovery % 62.2 69.9 66.5 96.6
------------------------ (1) The southern part of the Hugo South deposit represented approximately one-half of the Hugo South deposit, to the south of Northing 4766500. Project No.: AAJV001 Page 16-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 16.3 METALLURGICAL BALANCES Data from some early variability batch, and some composite sample locked cycle tests, were used to develop preliminary mathematical relationships for copper and gold recovery from the various deposits. These relationships, although developed prior to all the test information becoming available, were used in the production forecast to predict concentrate grades and recovery for the various deposits. The metallurgical performance by deposit area are summarized Table 16-7. TABLE 16-7: METALLURGICAL BALANCE FOR DIFFERENT DEPOSITS, CASES 4a AND 4b
GRADE DISTRIBUTION Mt Cu-% Au - g/t Cu-% Au-% -------------------------------------------------------------------- SOUTHWEST Ore to Plant 266.197 0.49 0.58 100 100 Concentrate 3.992 28.10 28.56 83.7 721.4 Tailings 266.205 0.08 0.16 16.3 27.6 SOUTH Ore to Piant 85.991 0.47 0.14 100 100 Concentrate 1.220 28.10 5.98 85.1 57.1 Tailings 84.771 0.07 0.06 14.9 42.9 CENTRAL CHALCOCITE Ore to Plant 121.951 0.76 0.12 100 100 Concentrate 3.398 24.10 2.70 88.2 66.7 Tailings 118.553 0.09 0.04 11.8 33.3 CENTRAL CHALCOPYRITE Ore to Plant 4.770 0.59 0.45 100 100 Concentrate 0.103 24.10 13.70 88.1 66.6 Tailings 4.667 0.07 0.15 11.9 33.4 HUGO SOUTH Ore to Plant 387.372 0.97 0.05 100 100 Concentrate 10.848 30.60 0.77 90.7 40.0 Tailings 376.524 0.09 0.03 9.3 60.0 HUGO NORTH Ore to Plant 176.539 1.99 0.35 100 100 Concentrate 10.529 30.6 3.57 92.0 60.0 Tailings 166.010 0.16 0.15 8.0 40.0
Project No.: AAJV001 Page 16-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 16.4 FLOTATION CONCENTRATE PENALTY ELEMENTS A number of elements, if present in copper concentrates at elevated levels, may attract a penalty deduction charge by smelters. At sufficiently high concentrations of these elements, concentrates might be rejected if the smelter cannot blend them out. These "penalty elements" include fluorine and arsenic, both of which are present in some of the Oyu Tolgoi deposits at varying concentrations (a "penalty charge" of $4 /t of concentrate was applied to all concentrates in the financial analysis). The concentration of each of these elements at which penalty charges might apply will vary between smelters. The penalty concentration level depends upon, amongst other considerations, the maximum tonnage burden of that element that the smelter can process without exceeding product and air quality concentration limits as well as the ability the smelter has in disposing of associated by-products. The threshold level of arsenic and fluorine that triggers penalties or rejection remains under investigation and will be explored in detail as part of a proposed marketing study. However, general market research suggests penalties for arsenic start in the range of 0.15 to 0.25% As and fluorine in the range of 300 to 600 ppm (0.03 to 0.06% F). Rejection levels also vary significantly depending on the smelter. The arsenic at Oyu Tolgoi appears to be mainly contained in the copper minerals tennantite and enargite. These minerals float along with the other copper sulphide minerals and therefore report to the concentrate. Fluorine occurs as the gangue minerals fluorite and topaz and can be quite fine grained. These potential penalty elements vary in both quantity and nature of association with copper sulphides and thus, the amount reporting to the flotation concentrate varies. The preferred method to control the level of penalty elements is by blending of concentrator feed and blending of concentrates produced. Both methods are commonly used to minimise smelter penalties. Limited work has been carried out on penalty element rejection in the flotation testing. This will be an important aspect in the planned metallurgical program and pilot programs. Preliminary testing of concentrate leach procedures was undertaken however the need for this is considered as a fall-back option at this stage. This early leach testing was encouraging for reducing arsenic levels as well as fluorine in those instances where the fluorine host mineral was fluorite. Project No.: AAJV001 Page 16-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Arsenic values in Southwest copper concentrates were low, typically less than 0.05% As. A number of samples tested from the Southwest deposit resulted in fluorine concentrations in copper concentrates greater than 0.03% F, with the maximum analysis at 0.12% F. For the Central deposit, copper concentrates from a number of drill core samples tested contained elevated arsenic levels, with maximum values up to 3.0% As. Many produced copper concentrates with fluorine analyses greater than 0.03% F, with the maximum analysis at 0.10% F. Of the samples tested on the southern portion of Hugo South, a number produced copper concentrates assaying greater than 0.15% As and greater than 0.05% F. The four tests on composites of Hugo North samples produced relatively clean copper concentrates that were less than 0.1% As and less than or equal to 0.05% F. Preliminary flotation tests on Hugo South copper concentrates identified that a reduction of the concentrate fluorine grade might be achieved with a sub 20 (Micro)m secondary regrind of the rougher concentrate, use of low cleaner pulp densities and selective depressants. Additional preliminary flotation testwork on the Southwest copper concentrates provided a similar indication. Work is continuing to examine the deportment of fluorine across the deposits and means of ensuring copper concentrate production below any penalty level. 16.5 CONCLUSIONS The following major conclusions can be drawn from the metallurgical work evaluated to date: - The hardness of the different ore deposits is quite variable ranging from quite hard material in Southwest to soft in Central. This has implications on how the ore is fed to a plant, either by blending or separate campaigns. Separate campaigns may allow the flowsheet to be optimised for different ore types. - A primary grind P(80) of 100 (Micro)m appeared to improve copper and gold rougher recovery. - Standard flotation techniques are generally quite effective in gaining satisfactory recoveries into acceptable concentrates. - Chalcopyrite samples produced generally higher concentrate gold and copper recoveries than secondary chalcocite/covellite samples, at the same head grades. Project No.: AAJV001 Page 16-9 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Pyrite rejection could be improved by the addition of low doses (approximately 20 to 50 g/t) of NaCN in batch cleaner flotation, with little or no apparent effect on copper recovery. - The rougher concentrate regrind P(80) size between 20 and 25 um appeared to produce the best overall cleaner response in terms of copper grade and recovery and gold recovery. - Preliminary flotation tests suggested that improved liberation of copper sulphide and fluorine carrier minerals by finer secondary regrinding and lower flotation densities might allow fluorine rejection to be improved, thus providing a lower fluorine content in final copper concentrates. 16.6 FUTURE TESTWORK 16.6.1 BENCH SCALE TESTWORK A comprehensive metallurgical test program has been outlined to enable a Feasibility Study to be completed on the Southwest, Central and South deposits and a Pre-feasibility Study to be completed on the Hugo Dummett deposit. Work is ongoing to confirm the optimum primary grind and concentrate regrind sizes for each deposit. Additional process development work is required to determine the optimum reagent suite and flotation conditions from which the relationship between metal recovery and concentrate grade can be derived. Various flotation options to improve gold recovery, such as alternative collectors and circuits, and alternative treatment of high gold-loss streams, require testing. Flotation, hydrometallurgical and mineralogical testwork is continuing to determine the deportment of fluorine and arsenic carriers in the various deposits, and possible means of rejecting these from copper concentrate. Variability testing of samples representing anticipated time-sequenced mining production is required. In addition to this the effects of blending the material from the various deposits, on metal recoveries and concentrate grades requires testing to confirm performance predictions. 16.6.2 PILOT SCALE TESTING Pilot scale testing of samples will be required to generate design comminution data for autogenous and semi autogenous grinding. Other alternatives such as high pressure grinding rolls (HPGR) will be tested independently. Project No.: AAJV001 Page 16-10 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Pilot flotation testing will be required to optimize flotation, including flash flotation, and to generate samples to: - Determine product dewatering parameters - Determine tailings impoundment parameters including Toxicity Characteristic Leaching Procedure (TCLP) tests and separate storage of a potentially acid forming (PAF) high-sulphur cleaner-scavenger tailing - Provide concentrate to send to potential purchasers of concentrates - Provide concentrate for smelting tests - Use to examine options for upgrading the concentrate and reducing penalty elements Pilot scale testing may offer an opportunity to consider whether gravity concentration of gold is worth any serious examination. With the production of sufficient mass of concentrate during pilot testing, the separation of a molybdenum rich concentrate may be possible. The deportment of molybdenum and rhenium will be monitored as part of this work. Project No.: AAJV001 Page 16-11 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES The mineral resource estimates for the Oyu Tolgoi project were calculated under the direction of Dr. Harry Parker, Ch.P.Geol., and Dr. Stephen Juras, P.Geo. The estimates were made from 3-dimensional block models utilizing commercial mine planning software (MineSight(R)). The project was divided into four deposits: Southwest (SW), South (SO), Central (CO) and Hugo Dummett (HG). Project limits are in truncated UTM coordinates. The Oyu Tolgoi project exists in two geologic block models, one containing the Southwest, South and Central deposits, and the other constructed for the Hugo Dummett deposit. Project limits are 649000 to 653,500 East, 4762000 to 4769000 North and -505 to +1,430 m elevation. Cell size was 20 m east x 20 m north x 15m high. The resource work for Southwest, South and Central is described in the previously prepared Technical Report dated February 24, 2003 on the Oyu Tolgoi Project and the resource work for Hugo Dummett is covered in the previous Technical Report on the Hugo Dummett Deposit, Oyu Tolgoi Project, Mongolia, dated November 12, 2003. This section is composed of general descriptions taken from those Technical Reports. 17.1 GEOLOGIC MODELS AND DATA ANALYSIS Each of the deposits were assigned mineralised domains based on geological criteria and marked changes in mineralisation intensity (grade value patterns and mineralogical or alteration assemblages). These are listed in Table 17-1. In Hugo South the copper grade shells were "split" across the ignimbrite (Ign) - augite basalt (Va) contact and the quartz monzodiorite surface - Va contact. The copper shells in Hugo North were split at the quartz monzodiorite surface (Qmd). Other geologic attributes such as alteration have been looked at without a clear-cut association being found relative to grade. AMEC recommends that other geologic attributes be periodically reviewed for potential grade controls as information from drilling increases. Ivanhoe constructed 3-dimensional geologic shapes for each of the domains listed in Table 17-1. AMEC checked the shapes for interpretational consistency in section and plan, and found them to have been properly constructed. The shapes honoured the drill data and appear well constructed. The solids and surfaces were used to code the drill hole data and block model cells. A set of cross sections with drill holes colour-coded by domain and blocks similarly coloured were plotted and inspected to determine the proper assignment of domain. Project No.: AAJV001 Page 17-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 17-1; MINERALIZED DOMAINS, OYU TOLGOI PROJECT
DOMAIN DEPOSIT / MINERALIZED DOMAIN CODE DESCRIPTION --------------------------------------------------------------------------------------------------------------------------------- SOUTHWEST (SW) (ZONE CODE 2) Augite Basalt (Va) 1 Quartz veined, biotite altered, massive porphyritic basalt; pyrite-chalcopyrite mineralisation Gold Zone 2 Pipe-like and strongly quartz veined, >= 1 g/t Au, about 250 m diameter, includes mineralised Va and Qmd Quartz Monzodiorite (Qmd) 4 Multi-generational relative to mineralisation, varying from strongly mineralised and altered pre-and intra-phases to unmineralised post- mineral phases. Background 10 Weakly mineralised Va Low-Grade Qmd 14 Late instra- or post-mineral, weakly mineralised Qmd phase within the Gold zone SOUTH (SO) (ZONE CODE 3) South of S2 Fault 1 Sparsely tested, poorly mineralised Va Between S1 and S2 Faults 2 Fault bounded porphyry in Va; strong quartz veining and chalcopyrite-bornite mineralisation; gold-poor Between S2 and SW Fault (Va) 3 Faulted down Va, cut by numerous intra- and post-mineral dykes Between S2 and SW Fault (Qmd) 4 Intra- to post-mineral Qmd in Va CENTRAL (CO) (ZONE CODE 5) Covellite (low Cu) 1 High-sulphidation, pyrite-covellite mineralisation in altered and quartz veined Qmd; gold-poor Covellite (high Cu) 2 High-sulphidation, pyrite-covellite-chalcocite mineralisation in Qmd; gold-poor Chalcopyrite 3 Pyrite-chalcopyrite mineralisation, peripheral to covellite zones; gold-rich Chalcocite Blanket 5 Supergene chalcocite from former porphyry chalcopyrite-bornite mineralisation Background 10 Weakly mineralised Va and Qmd outside the high-sulphidation domains MINERALIZED SHELLS OR ENVELOPES - HUGO SOUTH (ZONE CODE = 7) High Grade or 2.0% Shell 1,2 bornite + chalcocite mineralisation, = 2.0% Cu; hosted in strongly altered and quartz veined Ignimbrite (1) and Va (2) bornite + chalcocite +/- chalcopyrite mineralisation, = 1.0% and < Mid grade or 1.0% Shell 4,5 2.0% Cu; hosted in moderately to strongly altered Ignimbrite (4) and Va (4) Low grade or 0.6% Shell 6,7 bornite + chalcocite + chalcopyrite mineralisation, = 0.6% and < 1.0% Cu; hosted in moderately to strongly altered Ignimbrite (6) and Va (7) Background 10 weakly copper mineralised (<0.6% Cu) Ignimbrite and Va. Qmd host in any shell (secondary code) 14 MINERALIZED SHELLS OR ENVELOPES - HUGO WORTH (ZONE CODE = 8) High Grade or 2.0% Shell 1,2 bornite + chalcocite + chalcopyrite mineralisation, = 2.0% Cu; hosted in strongly altered and quartz veined Qmd (1) and Va (2) Au Shell or Zone 3 area within the High grade Cu shell where the gold grade becomes markedly higher (~0.3 g/t Au) Mid grade or 1.0% Shell 4,5 bornite + chalcopyrite mineralisation, = 1 .0% and < 2.0% Cu; hosted in moderately to strongly altered Qmd (4) and Va (4) Low grade or 0.6% Shell 6,7 chalcopyrite + bornite mineralisation, = 0.6% and < 1.0% Cu; hosted in moderately to strongly altered Qmd (6) and Va (7) Background 10 weakly copper mineralised (<0.6% Cu) Qmd and Va. Qmd host in any shell (secondary code) 14 Background <0.6% Cu 10 POST-MINERAL DIKES - ALL ZONES Undifferentiated 15 Rhyolite 16 Hornblende-Biotite Andesite 17 Biotite Granodiorite 18 Basalt 19
Project No.: AAJV001 Page 17-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia These mineralised domains were reviewed to determine appropriate estimation or grade interpolation domains. Several different procedures were applied to the data to discover whether statistically distinct domains could be constructed using the available geological variables. Descriptive statistics, box plots, contact plots, and histograms have been completed for copper, gold and molybdenum. Results obtained were used to guide the construction of the block mode! and the development of estimation plans. The data analyses were conducted on composited assay data. Assays were composited into 5 m down-hole composites. The compositing honoured the domain zone by breaking the composites on the domain code values. AMEC reviewed the compositing process and found it to have been performed correctly. 17.1.1 HISTOGRAMS AND LOG-PROBABILITY PLOTS Histograms show the frequency distribution in a different way from the boxplots. Grades are grouped into bins. A vertical bar on the graph shows the relative frequency of each bin. Histograms are used to show the differences in the copper, gold, and molybdenum frequency distribution by increasing grade (Appendix D of the February 2003 Technical Report and Appendix C of the November 2003 Technical Report). Key results are discussed below. SOUTHWEST The two main domains, the augite basalt (Va) and the gold zone, show distinct mean values for all metals. The Cu coefficients of variation (CV) are around 0.6 to 0.7, whereas Au CVs range from 0.7 (gold zone) to 0.9 (Va). Probability plots show a double lognormal distribution for Cu, with about 10% to 15% of the data representing included lower-grade material. Au values in the Va domain display a single lognormal population, whereas in the gold zone a double population is shown, with about a 15% included lower-grade component. SOUTH The main domains in the SO area are #2 (between S1 and S2 faults), #3 (Va between S1 and SW faults) and #4 (Qmd between S1 and SW faults). For Cu and Au, domain #2 shows distinctly higher mean values relative to both #3 and #4. Also, CV values for Cu are different, with #2 equal to 0.9 and the other two domains varying from 1.1 to 1.2. Mo values are noticeably higher in domain #3. Probability plots show single lognormal populations for Au and Mo. Cu shows a double lognormal population for #2 (about 20% included lower-grade material) and generally single lognormal populations in #3 and #4. Project No.: AAJV001 Page 17-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CENTRAL All CO domains show distinct Cu and Au mean values relative to each other. Cu CV values are low for the two covellite domains and the chalcopyrite domain, with values around 0.4 to 0,5. The supergene chalcocite domain shows slightly higher CVs of around 0.6 to 0.7. Probability plots indicate good single lognormal population trends for Au and Mo. Cu plots show generally single lognormal distributions. HUGO DUMMETT Copper grade behaves as expected between grade shells. No significant "within shell" variations due to lithology were observed. Distributions display trends on log probability plots that reflect multiple grade populations (in part due to the grade shell exercise). Higher average Cu grades are found in Hugo North. All CV values are quite low (0.3 to 0.5). Gold grade distributions show typical log normal trends in all domains. Au grades increase sharply in Hugo North where they are defined by the Au Shell domain. CV values are around 1, with those in the respective Qmd areas having lowest values. Molybdenum grades are generally low. Generally, molybdenum trends are the reverse of copper with the richest Cu areas poorest in Mo concentrations. Hugo South contains higher overall averages than in the North. Distributions are strongly lognormal. CV values are about 1 in areas with the highest averages, 1.2 and higher elsewhere. 17.1.2 CONTACT PROFILE ANALYSIS To study changes in grades across geologic boundaries, contact profiles, or plots of average grades at increasing distances from a boundary are plotted, if averages are fairly close to the same value near a boundary and then diverge as the distance from the contact increases, the particular boundary is probably not a grade constraint. In fact, if a "hard" boundary is imposed where grades tend to change gradually, grades may be overestimated on one side of the boundary and underestimated on the opposite side. If there is a distinct difference in the averages across a boundary, there is evidence that the boundary may be important in constraining the grade estimation. Contact profiles, or plots, were made for Cu, Au and Mo across the various mineralised domains in each deposit. These are shown in Appendix D of the February 2003 Technical Report for SW, SO, and Central. Refer to Appendix C of the November 2003 Technical Report for the contact profiles of the Hugo deposit. Project No.: AAJV001 Page 17-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Contact profiles for all metals in SW show distinct differences in grade in the vicinity of the domain boundaries. In SO the contact profiles show less distinct differences. These results, however, should be viewed with caution, as they are caused by a small number of data around the domain boundaries. CO contact profiles for Cu show small yet distinct breaks between the mineralised domains (covellite, chalcopyrite and chalcocite blanket) and marked distinctions between these and background values. Cu profiles for Hugo North and South behaved as expected. Distinct differences occur across each boundary. Au profiles are also distinct but less so. The differences are most marked for the respective 2% Cu shell domains relative to the grades in the 1 % Cu shell. The Au shell in Hugo North shows distinct boundaries for Cu and Au relative to the rest of the material within the 2% Cu Shell. 17.1.3 MODELLING IMPLICATIONS The data analyses demonstrated that most of the domains in the four deposits should be treated as separate domains with respect to Cu, Au and Mo. Grades for blocks within the respective domains in each deposit or zone will be estimated with a hard boundary between them; only composites within the domain will be used to estimate blocks within the domain. Additionally, grades for blocks within the Au zone in Hugo North will be estimated with a hard boundary between the shells. The background estimation domain will use all composites outside of the defined domains. The exception to this is the ignimbrite-augite basalt boundary in HG. This boundary shows transitional characteristics and will be treated as a soft boundary during grade interpolation. For domains straddling the South-North Hugo Dummett divide, a soft boundary will also be used; composites within a shell and within the respective search volume will be used to estimate bocks within that shell regardless of which zone the composites lie within. 17.2 EVALUATION OF EXTREME GRADES Extreme grades were examined for all grade items (copper, gold and molybdenum), mainly by histograms and probability plots. Generally the distributions do not indicate a problem with extreme grades for copper. Most of the capped grades for Cu were therefore intended to remove outlier-type grades. For Au and Mo, capped grades were selected in domains with high coefficients of variation (CVs) and/or where trends defined in the cumulative probability plots begin to become discontinuous. In the latter case, this generally occurred between the 98% to 99.5% level. Capped grades for the Oyu Tolgoi project are shown in Table 17-2. The capped grades were applied to the assay data prior to compositing. Project No.: AAJV001 Page 17-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 17-2: CAP GRADES FOR Cu. Au AND Mo ASSAYS, OYU TOLGOI PROJECT
DOMAIN Cu (wt %) Au (g/t) Mo (ppm) ------------------------------------------------------------------------------ SOUTHWEST (SW) #1 4.0 3.0 1,500 #2 4.0 10.0 1,500 #4 1.0 1.3 1,500 SOUTH (SO) #2 - 2.0 300 #3 1.5 1.0 400 #4 1.5 1.0 400 CENTRAL (CO) #1 4.5 1.3 800 #2 4.5 1.3 800 #3 4.5 3.0 400 #5 4.5 0.8 400 #10 2.0 1.0 500 HUGO SOUTH (HS) #1, 2 11 2 600 #4, 5 5 2 1,100 #6,7 3 2 1,100 #10 3 1.5 1,100 HUGO NORTH (HN) #3 - - - #1,2 - 3 - #4,5 - 2 600 #6,7 - 0.8 - #10 2 1 400
Grades for the Hugo Deposit were further constrained during interpolation by using outlier restrictions on the composite data. This was used to locally control grade smearing in areas of limited data. Minimal composites and model blocks were affected. Rationale for Cu was to restrict grades exceeding the shell threshold. Au was most problematic because, except for the Au Zone, the gold grade distributions did not honour the Cu shells. Ideally mineralised shells for gold only would be better suited to control its interpolation but the present data density precludes its use. AMEC recommends evaluating development of separate gold shells (those related to the Qmd for example) once data density reaches sufficient levels (i.e. to Indicated mineral resource levels or higher). Mo grade was also restricted locally. 17.3 VARIOGRAPHY Variography, a continuation of data analysts, is the study of the spatial variability of an attribute. Variograms using the correlogram method were calculated for copper, gold and molybdenum. AMEC prefers to use a correlogram, rather than the traditional Project No.: AAJV001 Page 17-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia variogram, because it is less sensitive to outliers and is normalized to the variance of data used for a given lag. The correlogram ranges from -1 to +1, although models are usually made over the interval [0,1], where 0 represents no correlation (statistical independence) and 1 represents perfect correlation. Correlograms were calculated for copper and gold in the main mineralised domains in each deposit. The approach to correlogram model development is to calculate a relatively large number of sample correlograms in several directions using composite values. Directional sample correlograms are calculated along horizontal azimuths of 0 degrees, 30 degrees, 60 degrees, 90 degrees, 120 degrees, 150 degrees, 180 degrees, 210 degrees, 240 degrees, 270 degrees, 300 degrees, and 330 degrees. For each azimuth, sample correlograms are also calculated at a dip of 30 degrees, and 60 degrees, down in addition to horizontally. Finally, a correlogram is calculated in the vertical direction. Using the 37 sample correlograms, an algorithm determines the best-fit model. This model consists of a nugget effect; single or two-nested structure variance contributions; ranges for the variance contributions; and the model type (spherical or exponential type). After fitting the variance parameters, the algorithm then fits an ellipsoid to the ranges from the directional models for each structure. The anisotropy in grade variation is given by the two ellipsoids The deposits of the Oyu Tolgoi project exhibit mineralisation controls related to the intrusive history and structural geology (faults). The patterns of anisotropy demonstrated by the various correlograms tend to be consistent with geological interpretations. Key observations: - Southwest - Copper displays a north-south-trending, steeply dipping shorter range structure for the augite basalt mineralisation and a northwest-southeast-trending, moderately southwest dipping structure for the gold zone. Gold displays moderately south dipping, east-west-trending structures in both zones. In addition, a second structure is present in the gold zone, trending almost north-south with a moderate easterly dip. - South - Copper is influenced by the northeasterly-trending faults. Domains 2, 3 and 4 show moderately southeast dipping, northeast-southwest-trending shorter-range structures. Additionally, domain 2 displays a longer range moderate north- dipping east-west structure. - Central - Copper in domains 1 through 3 show elements of moderate to steep southwest-dipping, south-southeast to north-northwest-trending structures. - Hugo Dummett (HG) - Correlograms in Hugo North mirrored the change in trend to north-westerly from the north-easterly trend in Hugo South. Both deposits showed consistent steep easterly dips. Plunges were flat in the South (mirroring the distribution of mineralised intercepts and about 20 degrees, to 30 degrees, to the north in the Project No.: AAJV001 Page 17-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia North deposit (again supported by the trend in mineralised intercepts). Ranges were longest along strike of the respective trend for Cu and a mixture of along the trend and down the dip of the trend for Au. Ranges for the first structure in all metals tend to be less than 75 m. Ranges in the second structure tend to be less than 200 m. The nugget effects, or random variation components of spatial variation, tend to be moderate (20% to 40% of the total variation) in all domains. The correlogram parameters are found in appropriate Tables and Appendices in the February 2003 and November 2003 Technical Reports. 17.4 MODEL SET-UP The estimates were made from 3-dimensional block models utilizing commercial mine planning software (MineSight(R)). The Oyu Tolgoi project exists in two geologic block models, one containing the SW, SO and CO deposits, and the other constructed for HG. Project limits are 649000 to 653,500 East, 4762000 to 4769000 North and -505 to +1,430 m elevation. Cell size was 20 m east x 20 m north x 15 m high. The block size for the model was selected based on mining selectivity considerations. it was assumed the smallest block size that could be selectively mined as ore or waste, referred to the selective mining unit (SMU), was approximately 20 m x 20 m x 15 m. In this case the SMU grade-tonnage curves predicted by the restricted estimation process adequately represented the likely actual grade-tonnage distribution. The assays were composited into 5 m down-hole composites. The compositing honoured the domain zone by breaking the composites on the domain code values. The capping limits were applied to the assay data prior to compositing. AMEC reviewed the compositing process and found it to have been performed correctly. In addition, assay data in older drill holes (pre-OTD231) were adjusted for bias (see Section 13.3.5) prior to capping. Bulk density data were assigned to a unique MineSight(R) assay database file. These data were composited into 15 m fixed-length down-hole values to reflect the block model bench height. Domain codes were assigned by a simple majority. In the case of assigning dike codes to the block model, a slightly higher percentage of 60% was necessary to code the block as dike (this is based on the assumption that segregation into ore or waste is highly unlikely above this threshold, i.e. the dikes were assumed to represent zero grade waste cutting the mineralised rock.). For the ore percent model, the default Project No.: AAJV001 Page 17-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia value was set to 100%. This value was modified in blocks, which intersected dikes by subtracting the percentage of dike from 100 (i.e., for model blocks wholly within a dike shape, the ore percent value would be 0). This percentage was used in the resource tabulation procedure to properly account for mineralised material. Percent below topography was also calculated into the model blocks. 17.5 ESTIMATION The Oyu Tolgoi estimation plans, or sets of parameters used for estimating blocks, were designed using a philosophy of restricting the number of samples for local estimation. AMEC has found this to be an effective method of reducing smoothing and producing estimates that match the Discrete Gaussian change-of-support model and ultimately the actual recovered grade-tonnage distributions. While local predictions based on the small number of samples are uncertain1, this method can produce reliable estimates of the recovered tonnage and grade over the entire deposit, i.e., the global grade-tonnage curves from the estimations are accurate predictors of the actual grade-tonnage curves. Modelling consisted of grade interpolation by ordinary kriging (KG). Note that inverse-distance weighting to the second power was used to interpolate Mo grades in SO and CO. Also, the chalcocite blanket in CO was interpolated by grade averaging because of the small data population in this domain. Only capped grades were interpolated. Nearest-neighbour (NN) grades were also interpolated for validation purposes. Blocks and composites were matched on estimation domain. The search ellipsoids were oriented preferentially to the orientation of the domain or Cu grade shell in each zone. Search ranges comprised 300 m along the respective long axis, 200 m down the dip direction and 200 m vertically. Block discretization is 4 x 4 x 3. A two pass approach was instituted for interpolation. The first pass allowed a single hole to place a grade estimate in a block and the second pass allowing a minimum of two holes from the same estimation domain. This approach was used to enable most blocks to receive a grade estimate within the domains and shells, especially in Hugo. Only a single pass, two hole minimum rule was used in the background domains. Blocks mostly received a minimum of 3 to 4 composites and a maximum of 4 to 5 composites from a single drill hole (for the two hole minimum pass). Maximum composite limits varied by metal and deposit: 9 to 30 for copper, 15 to 20 for gold and 12 to 20 for molybdenum. -------------------------- 1 Local grade estimates at the block-scale can be conditionally biased. Blocks estimated to be low-grade will actually be higher grade and vice versa. Division of the deposits into domains prior to estimation reduces the impact of conditional bias. Project No.: AAJV001 Page 17-9 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Most interpolation runs for the Hugo Dummett zones implemented an outlier restriction to limit grade smearing in areas of limited data. The outlier distance was set to 50 m (approximately half the drill hole spacing). The outlier grades for copper in Hugo were 2.5% for the 1% shells, 1.3% in the 0.6% shells and 0.6% in the background domain. Gold was a bit more complicated. Interpolation runs for Hugo South contained outlier gold grades of 1.5 g/t in the 2% shell; 0.35 g/t in the 1% shell; 0.30 g/t for Ign hosted mineralisation in the 0.6% shell and background domains; and 0.90 g/t and 0.60 g/t for Qmd hosted material in the 0.6% shell and background domains, respectively. Hugo North outlier gold grades consisted of 1.0 g/t in the 2% shell (excluding the Au Shell which had no outlier restriction); 0.6 g/t in the 1% shell; 0.8 g/t in the 0.6% shell; and two outliers in the background domain - 0.40 g/t in Qmd hosted areas and 0.20 g/t for the remaining areas. AMEC believes that the need for local control by outlier restriction will greatly diminish as data density approaches that required to achieve an Indicated mineral resource or higher level of confidence. These parameters were based on the geological interpretation, data analyses and variogram analyses. The number of composites used in estimating a model block grade followed a strategy that matched composite values and model blocks sharing the same ore code or domain. The minimum and maximum number of composites were adjusted for each grade item to incorporate an appropriate amount of grade smoothing. This was done by change-of-support analysis (Discrete Gaussian or Hermitian polynomial change-of-support method). Bulk density values were estimated into the resource model by an averaging of composites. A maximum of six and minimum of two 15 m composites were used for the averaging. A rectangular search was used, measuring 200 m north x 200 m east x 50 m elevation. The assignment was constrained by matching composite values and model blocks that shared the same domain. In the event a block is not estimated, a default bulk density value of 2.78 was assigned. 17.5.1 VALIDATION INSPECTION OF ESTIMATION RUN FILES All interpolation scripts were printed, examined, and compared to the interpolation plan and variogram parameters. Any errors found were corrected, and the estimation rerun. Project No.: AAJV001 Page 17-10 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia VISUAL INSPECTION AMEC completed a detailed visual validation of the Oyu Tolgoi resource block models. The models were checked for proper coding of drill hole intervals and block mode) cells, in both section and plan. Coding was found to be properly done. Grade interpolation was examined relative to drill hole composite values by inspecting sections and plans. The checks showed good agreement between drill hole composite values and model cell values. The hard boundaries between grade sheds appear to have constrained grades to their respective estimation domains. The addition of an outlier restriction reduced a significant amount of grade smearing in Hugo Dummett, as did adjusting domains of improperly assigned assays. Examples of representative sections and plans containing block model grades, drill hole composite values and domain outlines are included in Appendix F for the February 2003 Technical Report and Appendix E of the November 2003 Technical Report. MODEL CHECK FOR CHANGE-OF-SUPPORT An independent check on the smoothing in the estimates was made using the Discrete Gaussian or Hermitian polynomial change-of-support method described by Journel and Huijbregts (Mining Geostatistics, Academic Press, 1978). The distribution of hypothetical block grades derived by this method is compared to the estimated model grade distribution by means of grade-tonnage curves. The grade-tonnage curves allow comparison of the histograms of the two grade distributions in a format familiar to mining. If the estimation procedure has adequately predicted grades for the selected block size, then the grade-tonnage curves should match fairly closely. If the curves diverge significantly, then there is a problem with the estimated resource. Description of method used and detailed results occur in the February 2003 and November 2003 Technical reports. The grade-tonnage predictions produced for the model show that grade and tonnage estimates are validated by the change-of-support calculations over the likely range of mining grade cut-off values. MODEL CHECKS FOR BIAS AMEC checked the block model estimates for global bias by comparing the average metal grades (with no Cut-off) from the model (kriged grades (KG)) with means from nearest-neighbour estimates. (The nearest-neighbour estimator produces a theoretically unbiased estimate of the average value when no Cut-off grade is imposed and is a good basis for checking the performance of different estimation methods.) Results showed no evidence of bias in the estimate. Project No.: AAJV001 Page 17-11 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia AMEC also checked for local trends in the grade estimates (swath checks). This was done by plotting the mean values from the nearest-neighbour estimate versus the kriged results benches, northings and eastings. The kriged estimate should be smoother than the nearest-neighbour estimate, thus the nearest-neighbour estimate should fluctuate around the kriged estimate on the plots. The trends behave as predicted and show no significant trends of copper or gold in the estimates. HISTOGRAMS AND PROBABILITY PLOTS Histograms were constructed to show the frequency of sample grades within the mineralised domains. Both kriged and nearest-neighbour plots were made for copper, gold and molybdenum. The statistical properties for SW, SO, and CO are summarized in Appendix D of the February 2003 Technical Report and for the Hugo deposit in Tables 17-2 and 17-3 of the November 2003 Technical Report. The nearest-neighbour plots mimic the respective composite value distribution. The kriged results show the formation of a more symmetric distribution because of the smoothing effect caused by using multiple values from multiple drill holes to interpolate a model block value. 17.6 MINERAL RESOURCE CLASSIFICATION The mineral resources of the Oyu Tolgoi project were classified using logic consistent with the CIM definitions referred to in National Instrument 43-101. All interpolated blocks within the Hugo Dummett grade shells (most less than 150 m from a drill composite and interpolated by composites from at least two drill holes) were assigned as an Inferred mineral resource. In the remaining deposits and in Hugo Dummett background, interpolated blocks within 150 m of a drill composite were assigned as Inferred mineral resources. The increased drill coverage at Southwest, together with the demonstrated confidence in the assayed values with a well-functioning QA/QC program, allowed a portion of the Southwest deposit to be classified as Indicated Mineral Resources. A two step assignment process was used for the assignation: 1) within a domain, model blocks were assigned as Indicated Mineral Resources f composites from at least two drill holes, each no more than 70 m away from the block centre, were used to interpolate the block grade; and 2) along the gold zone domain contact, a block needed to be within 35 m of a drill hole. 17.7 MINERAL RESOURCE SUMMARY The mineralisation of the Oyu Tolgoi project as of November 2003 is classified as Indicated and inferred Mineral Resources. The resources in previous disclosures were reported over a range of copper equivalent cut-off grades as mining studies were Project No.: AAJV001 Page 17-12 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia ongoing as to select appropriate mining methods for the deposits. The equivalent grade was calculated using only assumed metal prices for copper and gold. The assumed prices were US$0.80 for Cu and US$350/oz for gold. For convenience the formula is: CuEq = %Cu + (g/t Au*11.25)/17.64 Open pit mining methods (see section 19) are proposed for Southwest, South and Central deposits. Hugo South would also likely be extracted using open pit methods, though underground options are not yet completely ruled out. Hugo North is envisioned to be mined by a bulk mineable underground method (e.g. block cave). Resources for this preliminary assessment are reported in two ways. The first, consistent with previous disclosures, reports mineralisation above three sets of copper equivalent cut-off grades: 0.30%, 0.60% and 1.00% (likely open pit and underground cut-off grade values). These are shown in Table 17-3 and Table 17-4. Note that the current mineral resource model for resources that will be extracted by underground mining will need additional dilution and allowances for mining recovery prior to conversion to mineral reserves. The second reporting style is for resources that will likely be extracted by open pit. Those mineral resources are also tabulated by deposit (excluding Hugo North) but are calculated from model blocks that are contained within pit outlines defined using long range metal prices at a 0.30% copper equivalent cut-off grade. These resources are shown in Table 17-3. TABLE 17-3: OYU TOLGOI PROJECT MINERAL RESOURCE SUMMARY - TOTAL PROJECT (NOVEMBER 2003)
CuEq GRADES CONTAINED METAL CUT-OFF GRADE CuEq Cu Au Mo Cu Cu Au (%) TONNES (%) (%) (G/T) (PPM) TONNES (000S lb) (oz) ---------------------------------------------------------------------------------------------------------- Indicated = 1.00 92,300,000 1.74 0.74 1.57 74 682,000 1,500,000 4,662,000 = 0.60 267,000,000 1.08 0.53 0.86 69 1,423,000 3,140,000 7,346,000 = 0.30 508,900,000 0.78 0.40 0.59 61 2,058,000 4,540,000 9,689,000 Inferred = 1.00 666,400,000 1.76 1.57 0.29 48 10,490,000 23,130,000 6,190,000 = 0.60 1,284,100,000 1.28 1.13 0.24 55 14,570,000 32,120,000 9,740,000 = 0.30 2,598,200,000 0.84 0.73 0.17 52 19,080,000 42,060,000 14,380,000
Project No.: AAJV001 Page 17-13 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 17-4: OYU TOLGOI PROJECT MINERAL RESOURCE SUMMARY - BY DEPOSIT (NOVEMBER 2003)
CuEq GRADES CONTAINED METAL CUT-OFF GRADE CuEq Cu Au Mo Cu Cu Au (%) TONNES (%) (%) (G/T) (PPM) TONNES (000S LB) (OZ) ------------------------------------------------------------------------------------------------------- South West Deposit - Indicated = 1.00 92,300,000 1.74 0.74 1.57 74 682,000 1,500,000 4,662,000 = 0.60 267,000,000 1.08 0.53 0.86 69 1,423,000 3,140,000 7,346,000 = 0.30 508,900,000 0.78 0.40 0.59 61 2,058,000 4,540,000 9,689,000 South West Deposit - Inferred = 1.00 24,900,000 1.48 0.59 1.40 60 146,000 320,000 1,120,000 = 0.60 126,600,000 0.87 0.44 0.68 65 552,000 1,220,000 2,780,000 = 0.30 290,800,000 0.64 0.32 0.50 52 922,000 2,030,000 4,700,000 South Deposit - Inferred = 1.00 5,400,000 1.18 0.82 0.56 32 44,000 100,000 100,000 = 0.60 48,400,000 0.77 0.61 0.26 20 294,000 650,000 400,000 = 0.30 270,300,000 0.48 0.39 0.13 23 1,067,000 2,350,000 1,100,000 Central Deposit - Inferred = 1.00 60,600,000 1.34 1.12 0.34 53 679,000 1,500,000 670,000 = 0.60 147,500,000 0.99 0.84 0.24 56 1,238,000 2,730,000 1,140,000 = 0.30 236,800,000 0.79 0.67 0.18 53 1,591,000 3,510,000 1,360,000 Hugo Deposit - Inferred = 1.00 575,500,000 1.82 1.67 0.23 47 9,620,000 21,220,000 4,300,000 = 0.60 961,600,000 1.41 1.30 0.18 56 12,480,000 27,520,000 5,420,000 = 0.30 1,800,300,000 0.94 0.86 0.12 57 15,500,000 34,160,000 7,220,000
Project No.: AAJV001 Page 17-14 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 18.0 OTHER RELEVANT DATA AND INFORMATION There is no additional relevant data. Project No.: AAJV001 Page 18-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.0 REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT AND PRODUCTION PROPERTIES 19.1 INTRODUCTION IMMI commissioned the Preliminary Assessment of the Oyu Tolgoi project to assess development alternatives and to set the basis for a feasibility study of the project. When the study commenced in early 2003, exploration drilling had delineated significant resources in the Southwest, South and Central deposits and an initial resource estimate had been completed on the Hugo Dummett deposit. During the course of the study, IMMI continued to expand the Hugo Dummett deposit, and the study scope was altered to incorporate this increasing resource. This report incorporates the latest resource estimate that was completed in November 2003 (AMEC, 2003). The study incorporates Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Thus inherent in the study is the risk that the value of these inferred Mineral Resources may not be realized. AAJV considers this study to be at a scoping study level of accuracy, and expects the capital and operating cost estimates to be +/-35%. The estimates were completed based on costs developed in the third quarter, 2003. All dollar figures ($) are quoted in United States dollars. Project No.: AAJV001 Page 19-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.2 SCREENING STUDY The project team commenced the project analysis with a Screening Study that evaluated twenty-one project development options, including varying throughput rates, alternate open pit versus underground development, and different development sequences. The study was based on benchmarked costs from available data. Although some of these costs were factored to incorporate Chinese pricing, most were based on Western mining projects. For the open pit options, the mine production forecasts were based on preliminary Whittle shells, with nested shells used to facilitate the forecasts. The underground options were based on benchmarked production rates and development requirements per unit area. The Screening Study concluded that the Southwest, South and Central deposits were best developed by open pit methods. The lower portion of Southwest may be amenable to mining from underground, although the costs would have to be very low to enable economic extraction. When the Screening Study was completed, only the southern portion of the Hugo Dummett deposit had been identified. Although a Whittle pit shell could be generated on the deposit, the high strip ratio and depth to the ore resulted in unfavourable economics compared to the underground cases. Based on these results, the Screening Study recommended five cases for further assessment: - Case 1A - 3 million t/a underground only on Hugo South - Case 1B - 3 million t/a underground expanding to 16 million t/a with open pit contributions from Southwest and Central - Case 2A - 16 million t/a open pit and underground - Case 3A - 32 million t/a open pit and underground - Case 3C - 16 million t/a open pit and underground expanding to 32 million t/a As the Scoping Study progressed, four major factors changed from the Screening Study: - The Hugo Dummett deposit expanded significantly, increasing its contribution and rendering the 3 million t/a starter option less attractive. In addition, AAJV conducted an analysis to determine how the plant would be expanded from 3 million t/a to 16 million t/a. This analysis revealed that only a minima! number of equipment units from the smaller plant would be suitable for use in the larger Project No.: AAJV001 Page 19-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia plant. The increased contribution from Hugo Dummett also reduced the average hardness of the ore, which meant that the throughput rate could be higher for a fixed grinding plant. - A number of the assumptions used in the Screening Study to develop the underground mining plan for the Hugo Dummett deposit were found to be invalid. Several of the major discrepancies were in the parameters applied to sublevel caving. These included the selectivity that could be achieved and the estimated dilution and recovery. When a more detailed development schedule was developed for the block caving alternatives, analysis of the geotechnical data required to complete the caving design revealed that the underground mining would be delayed compared to the Screening Study assumptions. - AAJV and IMMI conducted a number of analyses of Chinese costs, with the result that the capital and operating costs, the latter noted primarily in the plant and general and administration areas, were significantly reduced relative to the values used in the Screening Study. As a result, an open pit starter option became viable. - As more knowledge was gained during the Scoping Study, particularly with respect to the Chinese costs, the process and G&A operating cost estimates were reduced from the Screening Study. This factor, combined with the reduced margin from the Hugo South underground mine, led to an open pit option for Hugo South becoming viable. As a result, three cases were completed for this Preliminary Assessment: - Case 2c - 20 million t/a open pit on Southwest and Central - Case 4a - 20 million t/a open pit starter, with expansion to 40 million t/a as the Hugo South open pit and Hugo North block cave mines are developed - Case 4b - 40 million t/a case with a mining sequence similar to Case 4a Project No.: AAJV001 Page 19-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.3 OPEN PIT MINING (GRD MINPROC) 19.3.1 INTRODUCTION IMMI commissioned GRD Minproc to prepare the open pit mine planning work and to consolidate the production forecasts for the Scoping Study. The Southwest, Central and Hugo South deposits are currently planned for development via open pits in stages. The South deposit will also be mined towards the end of the open pit life as part of the proposed open pit development at Southwest. The three production cases scheduled and costed for the open pit development of the three main deposit areas are as follows: - Case 2c: 20 Mt/a throughput based on Southwest and Central open pits only. - Case 4a: 20 Mt/a throughput expanding to 40 Mt/a in Year 5 with the addition of open pit mining at Hugo South and underground mining at Hugo North. - Case 4b: 40 Mt/a throughput from Year 1 with the open pit mining at Hugo South brought forward. All costs are United States dollars. For the completion of these cases, the open pit mining study involved the following tasks executed in parallel: - Development of the process recovery and Net Smelter Return (NSR) value model based on the recovery equations and parameters for different ore types. The model includes all mineral resource categories including Inferred. - Pit limit optimizations to determine the ultimate pit limits, staged pit development and stockpiling strategies. - Preliminary pit stage designs showing the access ramp layouts for the final stage of Case 2c for South West and Central Oyu Deposits. Pit shells with an allowance for ramps in the overall slope were used for interim pit stages. - Preliminary pit stage designs showing the access ramp layouts for South West and Central Oyu Deposits for Case 4b. - Pit designs for Hugo South were not prepared. Pit shells with an allowance for ramps in the overall slope were used for mine planning at Hugo South. - Preliminary waste dump layouts including the stockpile areas. Project No.: AAJV001 Page 19-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Mining inventory calculations using Indicated and Inferred Resources at various cut-off grades for production scheduling. - Preparation of detailed open pit production and stockpiling schedules integrated with the underground production schedules provided by AAJV. - Concentrate production schedules based on the criteria provided by AAJV. - Potential acid rock drainage (ARD) waste classification. - Preliminary estimation of open pit equipment, labour requirements, and productivities. - Preliminary estimation of open pit operating costs based on equipment specifications, equipment cycle times, productivities and manning requirements. - Preliminary estimation of open pit capital costs based on equipment specifications and purchase / replacement schedules. - Estimation of operating and capital cost savings associated with in-pit crushing and conveying (Case 4b only). Sources of major inputs to the open pit mining section of the Preliminary Assessment Report are: - Southwest and Central resource models by AMEC (March 2003). - Hugo South resource models by AMEC (November 2003). - Processing throughputs, underground production quantities, processing and G&A costs, smelter terms and recoveries by AAJV (November 2003). - Pit slope design parameters by SRK (June 2003). - Equipment productivities and mining cost estimates by GRD Minproc, updated continuously during the study. - ARD waste classification criteria by Knight Piesold (July 2003). - Other data and supporting information used in the open pit study were discussed and provided by AAJV and IMMI throughout the Scoping Study. The study assumes Inferred Mineral Resources are used as plant feed and revenue producing ore. The definition of Inferred Mineral Resources according to National Instrument 43-101 is: Project No.: AAJV001 Page 19-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia "...Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies." Thus, inherent in the study is the risk that the value of the Inferred Mineral Resources will not be realized. 19.3.2 PRELIMINARY OPEN PIT MINE DESIGN DESIGN CRITERIA GRD Minproc completed the pit optimizations using Whittle Four-X software. For a given resource model, cost, process recovery and slope data, Whittle Four-X calculates a series of incremental pit shells. The sequence of the pit shell increments is sorted from the economically best (the inner smallest shell viable for the lowest metal price) to the economically worst (the outer largest pit shell usually mining all the available resources regardless of the cost). Using the project parameters at the time of the optimization studies, the determination of the ultimate pit limits was based on the following criteria: - Incremental change in the indicative operating NPV's (Net Present Value's) between the optimal pit shells. - Incremental change in the marginal profit per tonne of ore between the optimal pit shells. - Optimal pit ore tonnage considering the life of the plant operation with the contribution of the underground resources. As well as the determination of the ultimate pit limits, the smaller pit shells obtained from the optimizations were used to define the development stages (cut-backs) for the open pits. The staged pit development approach is critical for deferring waste mining in the early years of the Project considering the size and depth of the ultimate pit shells. As recommended by SRK, the overall slope angles used in the pit optimizations and preliminary designs vary between 37 degrees to 38 degrees degrees in the weathered rock and 40 degrees to 43 degrees degrees in the unweathered rock. The overall slope angles include allowance for the positioning of haulage ramps. Project No.: AAJV001 Page 19-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The parameters for the ramps and definition of the cutback were selected considering the operation of large trucks and electric rope shovels. The preliminary designs considered the operational practicality in locating ramp layouts and the pit stages (cutbacks). An average cutback width of approximately 120 m for the 20 Mt/a case and 150 m for the 40 Mt/a case was maintained in the preliminary design of the pit stages at Southwest and Central. For all designs, a minimum mining width of approximately 40 to 50 m was adopted at the final pit floor. The Hugo South pit stages are based on pit shells generated manually at average slope angles within the ultimate pit limits. The shape of the orebody in relation to the ultimate pit was considered in the definition of the Hugo South pit stages to expose ore earlier and defer waste mining as much as possible. 19.3.3 MINE DESIGN FOR 20 MT/A CASE (2c) The pit stages planned for the 20 Mt/a case are shown in Figure 19.3-1. The Southwest deposit is planned for development in three stages, where as the Central pit is planned in two pit stages. The three pit stages at the Southwest pit target the high grade core at progressively deeper elevations. The first stage at Central develops the shallower chalcocite zone, where as the second stage predominantly mines the lower covellite zone. No designs for the first two stages of the Southwest pit were prepared for the Scoping Study. The mining volumes are based on the pit shells with the overall slope angles approximating the impact of inclusion of access ramps. The Southwest ultimate pit design shown in Figure 19.3-2 is circular in shape with a diameter of approximately 1,250 m at surface. The final pit is 500 m deep with a clockwise ramp system accessing the final pit floor. Although the access ramp systems between the pit stages are not shown for the 20 Mt/a case, a layout similar to that in the 40 Mt/a case can be adopted. The site layout and preliminary waste dump designs for the 20 Mt/a case are shown in AAJV drawing 1362-G-180. Project No.: AAJV001 Page 19-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.3-1: CENTRAL AND SOUTHWEST PIT STAGES FOR 20 MT/A CASE [PICTURE] Project No.: AAJV001 Page 19-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.3-2: ULTIMATE PIT DESIGN FOR 20 MT/A CASE [PICTURE] Project No.: AAJV001 Page 19-9 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.3.4 PIT DESIGNS FOR 40 MT/A CASE (4b) The open pit stages defined for the 40 Mt/a case are as follows: - Southwest 3 pit stages as shown in Figure 19.3-4 and Figure 19.3-5 - Central 2 pit Stages as shown in Figure 19.3-4 and Figure 19.3-5 - Hugo South 4 pit Stages as shown in Figure 19.3-3 While the other two study cases are based on conventional truck/shovel mining, GRD Minproc was directed that Case 4b would include an in-pit crusher system. The in-pit crusher concept is based on available ore and waste being trucked to a crusher located 200 m below the surface in Hugo South pit. Allowance for reduced haulage distances (and hence number of trucks) and excavation for conveyor galleries was made in the Case 4b estimate. The analysis of in-pit crushing prepared by AAJV is in Section 20. The starter Stage 1 pit at the Southwest will be 700 m wide and 800 m in length at surface, targeting the relatively high grade mineralisation located 100 m below surface. The Stage 1 pit will be 270 m deep, with the north-northeast wall designed as the final pit wall to facilitate the ramp access between the pit stages. The mining for the development of the 400 m deep Southwest Stage 2 cutback will start in the first year of plant operation as soon as the relatively high grade ore is exposed in the Southwest Stage 1 pit. The access to both Stage 2 and 3 cut-backs will be initially from the east through temporary ramp systems. The Stage 3 cutback will be mined to a final depth of 500 m and will establish the final pit walls to the south. The mining areas are relatively wide at the southwest and southeast (South) pit extensions. The Central Stage 1 pit will be developed as the ore is mined in full production from Southwest Stage 2 cutback. The Central ramp system will connect to the Southwest ramp system 50 m below surface, sharing the same exits to the ore crusher and waste dumps. The ramp exit to the crusher and a secondary waste exit to the east will be established early in the mine life as the permanent pit exits. Central Stage 2 pit will be mined last as a major 300 to 500 m wide "L" shape cutback to the north of Central Stage 1 pit. The main ramp system will connect to the existing Stage 1 ramp system at 90 m depth. The final depth of the Central pit will be 390 m. Project No.: AAJV001 Page 19-10 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Hugo South pit will be developed as a relatively independent resource area to the north of the Central pit. Starting with the 350 m deep Stage 1 pit, the ultimate pit will be developed in approximately 150 m vertical increments between the 4 pit stages to a final depth of 750 m. The site layout and preliminary waste dump designs for the 40 Mt/a case are shown in AAJV drawing 1362-G-190. FIGURE 19.3-3: HUGO SOUTH PIT STAGES FOR 40 MT/A CASE [PICTURE] Project No.: AAJV001 Page 19-11 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.3-4: CENTRAL AND SOUTHWEST PIT STAGES FOR 40 MT/A CASE [PICTURE] Project No.: AAJV001 Page 19-12 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.3-5: SOUTHWEST AND CENTRAL ULTIMATE PIT DESIGN FOR 40 MT/A CASE [PICTURE] Project No.: AAJV001 Page 19-13 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.3-6: SOUTHWEST AND CENTRAL PIT STAGES FOR 20-40 MT/A CASE [PICTURE] Project No.: AAJV001 Page 19-14 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.3.5 PIT STAGES FOR 20-40 MT/A CASE (4a) The Southwest and Central pit stages for Case 4a shown in Figure 19.3-6 are a hybrid form of the pit stages for Cases 2c and 4b. In this case, 4 mining stages were defined for Southwest with the last expansion from the 20 Mt/a ultimate pit to the 40 Mt/a ultimate pit limits. Similar to the 20 Mt/a open pit only case, the lower throughput rate initially allows for the development of slightly narrower cut-backs. The Hugo South pit stages used in Case 4b were also used in the calculation of mining inventories for Case 4a. 19.3.6 OPEN PIT MINING INVENTORY CLASSIFICATION CRITERIA The open pit mining inventory includes both Indicated and Inferred material and was defined using NSR values (Net Smelter Return, i.e. net revenue calculated at the concentrator gate). The NSR cut-off criteria used in the calculation of the open pit mining inventory was defined as follows: - Low-value cut-off: Break-even cut-off, i.e., ore value equal to the total of processing and general and administrative costs. - Mid-value cut-off: Preferred cut-off value for the mill feed that can vary slightly depending on the grades and ore presentation. These cut-off values were determined after indicative NPV and cut-off analysis in the preliminary schedules as part of pit optimizations. - High-value cut-off: To provide flexibility in the production scheduling process to manage stockpile movements and mining rates. TABLE 19.3-1: NSR CUT-OFF VALUES USED IN MINING INVENTORY CLASSIFICATION
LOW CUT-OFF MID CUT-OFF ($/T) HIGH CUT-OFF ($/T) SW & CENT HUGO ($/T) ----------- ----------------- ---- ------------ Case 2a 3.11 8.50 10.00 Case 4b 2.81 6.50 5.50 10.00 Case 4a 2.81 6.50 5.50 10.00
As well as the above NSR value categories, the following ore types were also identified in the mining inventory and schedules due to different metallurgical characteristics: Project No.: AAJV001 Page 19-15 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Southwest - South - Central Chalcopyrite - Central Secondary - Hugo South 19.3.7 MINING INVENTORY SUMMARY The open pit Indicated and Inferred resource classification inventory for each of the cases is provided in Table 19.3-2. The Indicated resources are only reported within the Southwest pit limits and all other resources are classified as Inferred. Individual open pit case inventories detailing NSR ranges and pit stage contributions are provided in Tables 19.3-3, 19.3-4, and 19.3-5. 19.3.8 PRODUCTION SCHEDULES The production schedules were prepared on a yearly basis throughout the mine life. The open pit schedules are based on mining inventories by bench reported within the pit designs and shells. AAJV provided the Hugo North underground mining schedule and the maximum plant capacities, from which the open pit stages were then scheduled to meet the remaining plant throughput capacity. The primary objective of the open pit production schedules was to maximize the early cash flow from the operation by delaying the costs and bringing the revenue forward as much as possible. The total mined, processed, stockpiled and concentrate quantities for the three production schedule cases are summarised in Table 19.3-6, while annual forecasts are provided in Appendix C. The pit and underground components in the schedule cases are as follows: CASE 2C: - Southwest, 3 open pit stages - Central, 2 open pit stages - Hugo North, block caving (by AAJV) Project No.: AAJV001 Page 19-16 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CASE 4B: - Southwest, 3 open pit stages - Central, 2 open pit stages - Hugo South, 4 open pit stages - Hugo North, block caving (by AAJV) CASE 4A: - Southwest, 4 open pit stages - Central, 2 open pit stages - Hugo South, 4 open pit stages - Hugo North, block caving (by AAJV) Project No.: AAJV001 Page 19-17 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.3-2: MINERAL RESOURCE CLASSIFICATION IN OPEN PIT MINING INVENTORY
INDICATED RESOURCE INFERRED RESOURCE TOTAL RESOURCE ---------------------------------------- ----------------------------------- --------------------------------- CASE KT NSR CUEQ CU AU KT NSR CUEQ CU AU KT NSR CUEQ CU AU T'000 $/T % % G/T T'000 $/T % % G/T T'000 $/T % % G/T ------------------------------------------------------------------------------------------------------------------------ 2c 174,701 11.4 0.52 0.69 0.61 177,055 8.4 1.22 0.50 0.28 351,756 9.9 0.87 0.59 0.44 4a 229,043 10.2 0.87 0.49 0.59 633,125 10.1 0.85 0.78 0.11 862,168 10.1 0.86 0.70 0.24 4b 229,043 10.2 0.87 0.49 0.59 628,238 10.1 0.85 0.78 0.11 857,281 10.1 0.86 0.71 0.24
TABLE 19.3-3: OPEN PIT MINING INVENTORY SUMMARY FOR CASE 2C
RECOVERED RESOURCE ---------------------------------------------------------------------------------------- LOW VALUE RESOURCE MID VALUE RESOURCE PIT -------------------------------------- -------------------------------------- STAGE TONNES NSR CUEQ CU AU TONNES NSR CUEQ CU AU *1,000 $/t % % g/t *1,000 $/t % % g/t ---------------------------------------------------------------------------------------- C01 5,878 5.93 0.57 0.51 0.10 1,369 9.32 0.90 0.82 0.12 C02 70,251 6.13 0.59 0.53 0.10 7,165 9.16 0.88 0.75 0.20 SW1 17,062 6.10 0.58 0.39 0.30 6,608 9.23 0.84 0.51 0.51 SW2 35,999 5.46 0.52 0.37 0.24 4,161 9.14 0.83 0.56 0.42 SW3 91,734 5.49 0.52 0.38 0.23 7,407 9.10 0.82 0.54 0.44 TOTAL 220,924 5.75 0.55 0.43 0.19 26,710 9.16 0.85 0.61 0.37 HIGH VALUE RESOURCE TOTAL RESOURCE MINED PIT -------------------------------------- ------------------------------------- WASTE TOTAL STAGE TONNES NSR CUEQ CU AU TONNES NSR CUEQ CU AU TONNES TONNES *1,000 $/t % % g/t *1,000 $/t % % g/t *1,000 *1,000 --------------------------------------------------------------------------------------------------------------- C01 10,127 12.72 1.21 1.13 0.13 17,374 10.16 0.97 0.90 0.12 37,399 54,773 C02 29,304 14.49 1.38 1.23 0.23 106,720 8.63 0.83 0.74 0.14 171,139 277,859 SW1 22,101 23.49 1.81 0.77 1.63 45,771 14.95 1.21 0.59 0.97 59,541 105,312 SW2 19,812 21.58 1.70 0.78 1.44 59,972 11.04 0.93 0.52 0.65 139,166 199,138 SW3 22,778 20.34 1.62 0.76 1.36 121,919 8.48 0.75 0.46 0.45 127,356 249,275 TOTAL 104,122 18.86 1.57 0.93 0.99 351,756 9.89 0.87 0.59 0.44 534,601 886,357
Project No.: AAJV001 Page 19-18 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.3-4: OPEN PIT MINING INVENTORY SUMMARY FOR CASE 4b
RECOVERED RESOURCE ------------------------------------------------------------------------------------- LOW VALUE RESOURCE MID VALUE RESOURCE PIT --------------------------------------- ----------------------------------------- STAGE TONNES NSR CUEQ CU AU TONNES NSR CUEQ CU AU *1,000 $/T % % G/T *1,000 $/T % % G/T ---------------------------------------------------------------------------------------------- C01 16,599 5.20 0.51 0.46 0.07 5,255 7.99 0.77 0.67 0.16 C02 34,075 5.36 0.52 0.46 0.09 31,361 7.69 0.74 0.65 0.14 SW1 15,050 4.59 0.44 0.32 0.20 17,813 8.26 0.75 0.48 0.43 SW2 58,028 4.68 0.45 0.33 0.19 21,700 7.82 0.72 0.48 0.37 SW3 98,080 4.96 0.48 0.36 0.19 70,352 7.80 0.72 0.51 0.32 HS1 27,864 3.75 0.33 0.32 0.03 20,661 8.30 0.71 0.43 0.03 HS2 9,086 3.49 0.31 0.29 0.04 23,429 8.43 0.71 0.45 0.04 HS3 6,781 3.63 0.32 0.30 0.04 18,186 8.49 0.71 0.45 0.05 HS4 53,713 4.03 0.36 0.34 0.03 40,793 8.23 0.69 0.44 0.04 TOTAL 319,276 4.62 0.44 0.36 0.12 249,550 8.05 0.62 0.50 0.19 HIGH VALUE RESOURCE TOTAL RESOURCE MINED PIT ------------------------------------- ------------------------------------- WASTE TOTAL STAGE TONNES NSR CUEQ CU AU TONNES NSR CUEQ CU AU TONNES TONNES *1,000 $/T % % G/T *1,000 $/T % % G/T *1,000 *1,000 -------------------------------------------------------------------------------------------------------------- C01 11,729 12.70 1.21 1.12 0.14 33,583 8.26 0.79 0.73 0.11 57,386 90,969 C02 27,702 14.60 1.39 1.24 0.23 93,138 8.89 0.85 0.76 0.15 149,271 242,409 SW1 24,488 23.30 1.80 0.76 1.62 57,351 13.72 1.12 0.56 0.88 104,142 161,493 SW2 28,047 21.80 1.72 0.80 1.45 107,775 9.77 0.84 0.48 0.55 174,243 282,018 SW3 18,630 16.03 1.33 0.77 0.87 187,062 7.13 0.65 0.46 0.31 135,821 322,883 HS1 13,565 14.84 1.27 1.25 0.04 62,090 7.69 0.66 0.56 0.03 335,340 397,430 HS2 39,692 16.47 1.41 1.38 0.04 72,207 12.23 1.04 0.94 0.04 373,147 445,354 HS3 56,058 21.61 1.85 1.79 0.10 81,025 17.16 1.47 1.36 0.08 366,305 447,330 HS4 68,544 15.95 1.37 1.33 0.06 163,050 10.09 0.87 0.78 0.05 705,582 868,632 TOTAL 288,455 18.01 1.53 1.27 0.40 857,281 10.12 0.86 0.71 0.24 2,401,237 3,258,518
Project No.: AAJV001 Page 19-19 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.3-5: OPEN PIT MINING INVENTORY SUMMARY FOR CASE 4a
RECOVERED RESOURCE ------------------------------------------------------------------------------------------ LOW VALUE RESOURCE MID VALUE RESOURCE PIT ------------------------------------- ----------------------------------------- STAGE TONNES NSR CUEQ CU AU TONNES NSR CUEQ CU AU *1,000 $/T % % G/T *1,000 $/T % % G/T ------------------------------------------------------------------------------------------ C01 4,702 4.99 0.49 0.44 0.08 3,095 8.22 0.79 0.71 0.13 C02 45,927 5.34 0.52 0.47 0.09 33,456 7.68 0.74 0.65 0.14 SW1 9,902 4.53 0.44 0.32 0.19 14,945 8.28 0.76 0.48 0.44 SW2 29,776 4.73 0.46 0.34 0.19 12,600 7.95 0.73 0.49 0.38 SW3 71,466 4.65 0.45 0.34 0.18 32,483 7.77 0.72 0.49 0.36 SW4 63,130 5.10 0.49 0.36 0.20 49,793 7.81 0.72 0.52 0.31 HS1 27,864 3.75 0.33 0.32 0.03 20,661 8.30 0.71 0.43 0.03 HS2 9,086 3.49 0.31 0.29 0.04 23,429 8.43 0.71 0.45 0.04 HS3 6,781 3.63 0.32 0.30 0.04 18,186 8.49 0.71 0.45 0.05 HS4 53,713 4.03 0.36 0.34 0.03 40,793 8.23 0.69 0.44 0.04 TOTAL 322,347 4.61 0.44 0.36 0.13 249,441 8.05 0.62 0.50 0.19 HIGH VALUE RESOURCE TOTAL RESOURCE MINED PIT -------------------------------------- ---------------------------------- WASTE TOTAL STAGE TONNES NSR CUEQ CU AU TONNES NSR CUEQ CU AU TONNES TONNES *1,000 $/T % % G/T *1,000 $/T % % G/T *1,000 *1,000 ------------------------------------------------------------------------------------------------------------- C01 10,127 12.72 1.21 1.13 0.13 17,924 9.92 0.95 0.88 0.11 36,849 54,773 C02 29,304 14.49 1.38 1.23 0.23 108,687 8.53 0.82 0.73 0.14 169,172 277,859 SW1 22,101 23.49 1.81 0.77 1.63 46,948 14.65 1.19 0.58 0.95 58,364 105,312 SW2 19,812 21.58 1.70 0.78 1.44 62,188 10.75 0.91 0.51 0.62 136,950 199,138 SW3 22,778 20.34 1.62 0.76 1.36 126,727 8.27 0.73 0.45 0.44 122,548 249,275 SW4 8,399 12.12 1.06 0.83 0.36 121,322 6.70 0.62 0.46 0.26 102,805 224,127 HS1 13,565 14.84 1.27 1.25 0.04 62,090 7.69 0.66 0.56 0.03 335,340 397,430 HS2 39,692 16.47 1.41 1.38 0.04 72,207 12.23 1.04 0.94 0.04 373,147 445,354 HS3 56,058 21.61 1.85 1.79 0.10 81,025 17.16 1.47 1.36 0.08 366,305 447,330 HS4 68,544 15.95 1.37 1.33 0.06 163,050 10.09 0.87 0.78 0.05 705,582 868,632 TOTAL 290,380 17.99 1.52 1.26 0.41 862,168 10.11 0.86 0.70 0.24 2,407,062 3,269,230
Project No.: AAJV001 Page 19-20 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.3-6: PRODUCTION SCHEDULE CASES SUMMARY
Case 2c Case 4b Case 4a 20 MT/A 40 MT/A 20-40 MT/A PRODUCTION SCHEDULE CASES SUMMARY TOTAL TOTAL TOTAL ------------------------------------------------------------------------------------------------------------ TOTAL MINING RATE MTPA 75 195 175 NUMBER OF ELECTRIC SHOVELS (45 M(3)) # 2 6 5 NUMBER OF TRUCKS (350 T) # 15 38* 40 DRILLS # 5 12 11 DOZERS # 5 12 11 GRADERS # 3 6 6 FRONT END LOADER # 1 1 1 MANPOWER REQUIREMENTS # 260 540* 520 * In-pit crushing option reduced the number of trucks and manpower utilised in Case 4b SW AND CENTRAL Open Pit Total kt 351,756 478,909 483,796 NSR $/t 9.89 8.94 8.93 CuEq % 0.87 0.80 0.80 Cu % 0.59 0.55 0.55 Au g/t 0.44 0.39 0.39 Waste kt 534,601 620,863 626,688 TOTAL KT 886,357 1,099,772 1,110,484 HUGO SOUTH Open Pit Total kt 378,372 378,372 NSR $/t 11.62 11.62 CuEq % 1.00 1.00 Cu % 0.97 0.97 Au g/t 0.05 0.05 Waste kt 1,780,374 1,780,374 TOTAL KT 2,158,746 2,158,746 HUGO NORTH Underground Total kt 176,539 176,539 NSR $/t 25.75 25.75 CuEq % 2.21 2.21 Cu % 1.99 1.99 Au g/t 0.35 0.35 MINED TOTAL ORE Mined Ore Total kt 351,756 1,033,820 1,038,707 NSR $/t 9.89 12.79 12.77 CuEq % 0.87 1.12 1.11 Cu % 0.59 0.95 0.95 Au g/t 0.44 0.26 0.26 STOCKPILE MAXIMUM Deferred Open Pit Ore kt 132,383 278,028 310,156 BALANCE Stockpile Treated at NSR $/t 5.74 5.41 5.33 the End of Mine Life CuEq % 0.55 0.51 0.50 Cu % 0.42 0.41 0.41 Au g/t 0.20 0.15 0.15 TOTAL RECOVERED Total Mined and kt 351,756 1,033,820 1,038,707 RESOURCE Processed Resource NSR $/t 9.89 12.79 12.77 CuEq % 0.87 1.12 1.11 Cu % 0.59 0.95 0.95 Au g/t 0.44 0.26 0.26 CONCENTRATE MAKE Concentrate Make Mass Pull % 1.98 2.90 2.89 kt 6,962 30,021 30,070 Con Cu % 26.1 29.4 29.4 Con Au g/t 16.0 5.9 5.9 Copper Production kt 1,817 8,830 8,844 Gold Production koz 3,580 5,652 5,713
Project No.: AAJV001 Page 19-21 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.3.9 OPEN PIT OPERATION AND EQUIPMENT The open pit operation schedule was based on 340 working days per year, with 25 days per year lost due to unscheduled delays such as weather conditions. The open pit equipment will operate 24 hours per day in two 12-hour working shifts. The open pits will be mined using conventional open pit shovel-truck operations with all production operations carried out by IMMI. The nominal equipment fleet requirements during mature operation are summarised in Table 19.3-6 above. Electrical shovels of 45 m(3) bucket class and 350 t trucks were assumed for the open pits. Further work is recommended on equipment sizing and productivities to confirm the configuration selected for the study. In the estimation of the truck fleet for Case 4b, it was assumed that an in-pit crusher system would be installed in Hugo South. The capital and operating cost estimate for in-pit crusher system can be seen in Section 20. The total peak labour requirements are summarised in Table 19.3-6 for all cases. Note that, in general, two thirds of the total labour will be on site at any time. The annual labour numbers were built up based on the equipment fleet estimates to achieve the production schedule. Production blastholes will be 17 m deep, 305 mm diameter on patterns ranging from 7.5 m by 8.5 m to 8.5 m by 10.0 m. Drilling requirements will be sensitive to penetration rates and conditions that have not yet been defined. The dewatering plan is based on pit rim wells and dewatering in advance of mining and with minimal precipitation. Aquaterra was responsible for the preparation of the dewatering estimate. GRD Minproc assumed that the bulk of blasting would be in dry conditions. The drill and blast assumptions for the Preliminary Assessment Report need to be confirmed by further work. GRD Minproc assumed that all blastholes will be sampled using an appropriate sampling device with required copper, gold, impurity, and potential ARD-related assaying performed in the site laboratory. RC drilling to in-fill the ore areas and better define ore/waste and metallurgical boundaries is also anticipated. Open pit dewatering and electrical reticulation to the shovels and associated capital and operating cost estimates were estimated by AAJV. The electrical reticulation is described in Section 19.9 and the capital costs are summarized in Section 19.12. Project No.: AAJV001 Page 19-22 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.4 UNDERGROUND MINING - HUGO NORTH 19.4.1 INTRODUCTION Underground mine planning for the Oyu Tolgoi Scoping Study has evolved as knowledge of the Hugo Dummett deposit has been expanded. Initially, SRK was responsible for all underground planning on that portion of the deposit that is now named Hugo South. When the deposit was expanded into what is now called Hugo North, AAJV assumed responsibility for planning of this deposit. Subsequently, further assessment determined that there might be benefits to mine Hugo South as an open pit. Therefore, the SRK work does not form part of the body of this report but has been incorporated for reference as Appendix B. To complete the Hugo North mine plan, AAJV utilised the concepts, production capacity estimates, and costs that had been developed by SRK for Hugo South. While this is appropriate for a Scoping Study, a number of simplifying assumptions were made to produce this plan. Since block caving is likely the lowest unit cost mining method, the assumptions must be reviewed during the next phase of study to confirm that this mining method is viable. Among the assumptions, there are three key issues: - The geotechnical design criteria, including caving fragmentation and sustainable caving rate, must be confirmed through additional data collection and analysis. - The stress regime must be assessed and the mine plan adjusted to suit, given that the deepest parts of Hugo North are approximately 1,500 m below surface. This analysis will be an important component of defining the cave design and drawpoint support. - The geometry of the dykes and their impact on cavability and dilution must be evaluated. There are also a number of opportunities to optimise the mine plan by incorporating additional resources and by analysing whether the zone could be developed in a single pass, rather than the two pass concept used in this plan. 19.4.2 GEOTECHNICAL ASSESSMENT The geotechnical assessment for the underground workings was conducted by SRK. The results of their findings are reported in Appendix B. Project No.: AAJV001 Page 19-23 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.4.3 HUGO NORTH DESCRIPTION The Hugo North zone is the extension of the Hugo Dummett deposit that lies north of latitude 4766400N. It is separated from Hugo South by a section of narrow mineralization (the Transition zone). Hugo North strikes generally N 28.5 degrees W, with the zone plunging to the northwest. Its current base, as defined by the northern-most drilling, is near the -300 mRL, approximately 800 m below the base of Hugo South and 1,500 m below surface. The total width of the zone across all grade shells varies along its strike from 200 m to in excess of 500 m. The mineralization dips generally to the east from as low as 40 degrees to as high as 80 degrees, but is generally above 60 degrees. The zone contains a high grade core defined by a +2% copper grade shell. This high grade core is generally close to the eastern boundary of the mineralization. The zone is intersected by several granodiorite dykes of varying widths that appear to dip to the west and generally cross the western portion of the zone. A separate, smaller area of mineralization, which lies to the west of the main zone and plunges to the south (the West Limb), adjoins the main zone at approximately 4766850N. Neither the Transition zone nor the West Limb was incorporated into the mining plan for Hugo North. The shapes of these zones may mean that block caving would not be suitable and therefore additional analysis is required to assess what would be the most appropriate mining method(s). This analysis should incorporate an assessment of the stress regimes that will develop as the Hugo North block cave is mined and how the block cave will interact with the Hugo South open pit. 19.4.4 MINING METHOD Hugo North has sufficient lateral and vertical extent that block caving should be geometrically possible, although confirmation of the design parameters is required to confirm its viability. This method, which combines low costs with a high production capacity, would enable Hugo North to contribute significant ore tonnage and metal production to the Oyu Tolgoi project. Therefore, block caving was selected as the mining method for this zone. AAJV elected to develop the zone in two passes, with the first extraction level at the 0 mRL, and advance the cave southwards from the north end of the zone. The lower sections of the ore would be extracted from levels along the base of the deposit. Project No.: AAJV001 Page 19-24 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia These levels vary in elevation as the deposit rises to the south. The two pass approach has the following advantages: - The cave can be initiated within the higher grade core on a level with a very large lateral extent. Thus the initial production grade will be relatively high and there should be a shorter ramp up period to achieve the maximum sustainable production rate. - The height of cave above the initial mining block will be approximately 200 m, which is sufficient for achieving the economies of scale of block caving. - Because the deposit plunges to the northwest, planned dilution from the lower grade areas and country rock will be reduced compared to that which would be experienced with a higher draw height. The shorter draw height will also reduce draw dilution and possibly mitigate impact of the barren dykes that cross the zone. - The base of the zone rises from its north end towards the south. To establish the extraction level at the lowest point of the zone would require multiple extraction levels, increasing the complexity of the initial development. This complexity is delayed by the current plan. - The cave would be initiated at a higher elevation and thus presumably in an area of lower stress than the bottom of the zone. However, the two pass approach increases the costs by doubling the extraction level development. During the next phase of study, this approach requires further analysis and optimization. 19.4.5 BLOCK CAVE DESIGN CRITERIA (EXTRACTED FROM SRK, APPENDIX B) In this Scoping Study, the block cave extraction level is designed around a Henderson offset herringbone type layout. A plan view of the extraction layout and projected position of the cross-cuts on the undercut level above is shown in Figure 19.4-1. The offset draw points avoid four way intersections with large spans, and the Henderson layout is more suitable to electrically powered equipment and automation of loading operations. Alternate designs such as the Teniente layout were not considered to be as appropriate. Project No. AAJV001 Page 19-25 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.4-1: EXTRACTION LEVEL LAYOUT SHOWING PROJECTION OF UNDERCUT CROSS-CUTS ON THE LEVEL ABOVE [Extraction Horizon Layout in Plan] It is proposed to use a narrow inclined (crinkle) undercut as shown in Figure 19.4-2, where advanced undercutting is applied. In an advanced undercut only the draw drives and angled stub off of the draw point cross-cuts are developed, and fully supported, prior to undercutting. Once the undercut has passed over the draw bell position, and the extraction horizon is de-stressed, the remainder of the draw point cross-cut is developed and the draw bell extracted. Project No.: AAJV001 Page 19-26 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.4-2: SECTION THROUGH A DRAW POINT, DRAW BELL AND THE INCLINED UNDERCUT [Narrow Inclined Crinide Undercut Layout in Section] The extraction level design parameters were estimated for Hugo South and are directly related to the rock mass geotechnical properties for that zone. Values for Hugo North have yet to be determined. The Hugo South design parameters are summarised as follows: HYDRAULIC RADIUS FOR CAVING: While the range of the average MRMR(Min) to average MRMR(Max) for all rock types equates to a hydraulic radius for caving between 20 m and 27 m, it was considered appropriate for Scoping Study design purposes to design an undercut with a hydraulic radius of 30 m. This equates to a square plan area of 120 m by 120 m. For an equivalent rectangular area the minimum critical span should be not less than 95 m. For a hydraulic radius of 30 m this equates to a rectangular area of 95 m by 165 m. Therefore the area to be undercut to initiate caving can be anywhere from a square area measuring 120 m by 120 m to a rectangular area measuring 95 m by 165 m. Once caving has been initiated the undercut will be expanded until it reaches a size sufficient to sustain the 12 Mt/a production rate. AREA REQUIRED TO SUSTAIN FULL PRODUCTION: The rate at which block cave production can be ramped up and sustained is dependent on: Project No.: AAJV001 Page 19-27 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - The rate at which the cave back fails and falls in - The fragmentation size distribution (primary and secondary) which, in turn, is dependant on the rock mass (geotechnical) conditions - The limiting rate at which draw points and draw bells can be physically constructed - The rate at which `hang ups' and oversize can be cleared As there is no oriented data available for joints/structures that would normally be used in determining the primary and secondary rock block sizes it has not been possible to calculate likely fragmentation distributions. However, empirical systems, utilising rock mass ratings, exist from which production ramp up and steady state production rates can be estimated. For a MRMR range (average of all rock types) of 38 to 48, the cave back vertical rate of advance is between 120 - 250 mm/day. Therefore, an average rate of 200 mm/day has been applied for steady state rate of caving. For each square metre area of draw, this equates to approximately 0.56 t/d. So for each draw bell (30 m by 15 m) area, a steady state daily tonnage of approximately 252 t/d can be expected. That is 126 t per draw point per day on average. The minimum number of draw bells required must cover an area at least equivalent to the hydraulic radius for caving. Draw bell construction normally is limited to 5 to 6 draw bells per month. This study was based on a maximum of five draw bells constructed per month. 19.4.6 HUGO NORTH MINING INVENTORY The mining plan was developed to preferentially extract the material within the +2% copper grade shell and then extend into the +1% copper grade shell. Large portions of the +1% copper shell have not been included in the mining plan. Most of this excluded material is located either in the footwall of the zone, in the area most affected by the granodiorite dyke inclusions, or in the West Limb. During the next phase of study additional analysis is required to optimize the mine plan and to determine economic means of extracting this material The process AAJV used to estimate the mineable tonnage and grade began by outlining, on plan, at 100 m vertical intervals (excepting for the -250 mRL plan, which represents a 50 m vertical interval), contiguous mining blocks within the mineralization outlines. Using these outlines, the tonnages and grade within each block were estimated using the AMEC November resource model. Project No.: AAJV001 Page 19-28 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Table 19.4-1 below quantifies the mining inventory for Hugo North. These values incorporate the recovery and dilution values as defined in Section 19.4.7. TABLE 19.4-1: HUGO NORTH MINING INVENTORY
CU AU MINING BLOCK TONNES % G/T ---------------------------------------------------------------------------- Block 1 53,363,000 2.16 0.46 Block 2 16,226,000 1.86 0.21 Block 3 53,221,000 2.11 0.49 Block 4 31,936,000 1.70 0.12 Block 5 13,728,000 1.67 0.12 TOTAL 168,474,000 1.99 0.35
19.4.7 DILUTION AND RECOVERY The mining inventory was based on 100% recovery of all material contained within the defined mining blocks. Based on data generated by SRK, AAJV assumed that 70% of this volume would be extracted with no dilution and the final 30% would be extracted with 20% dilution. Thus the net dilution would be 6% of the total tonnage. A grade of 0.71% Cu and 0.076 g/t Au, equivalent to the grade of the +1% Cu shell surrounding the mining blocks, was assigned to the dilution. 19.4.8 PRODUCTION FORECAST AND CRITERIA In order to maximize the production rate and improve mining selectivity, the zone was divided into five major blocks, each of which represents a separate phase (see AAJV drawing 1362-MA-112). BLOCK 1 The base of this mining block, which in combination with Block 2 includes the largest ore tonnage to be drawn at any elevation, is located at the 0 mRL. In Phase 1 of mining the cave will be initiated in the northern end of this block (see AAJV drawing 1362-MA-108). This location was selected to initiate the caving for the following reasons: Project No.: AAJV001 Page 19-29 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - The geometry of ore zone at the 0 mRL makes it possible to establish a large cave footprint (approximately 100 m wide by 204 m long) with minimal affect from dykes and with a zone height of approximately 200 m. - The northern end of the block is in the widest section of the zone and therefore will afford the highest production build up rate for the least development. - The cave can be initiated primarily within the +2% copper grade shell, thereby maximizing the early production grade. The undercutting of the ore zone will be advanced to the south within the mining block as rapidly as possible in order to build up ore production to the steady state production rate of 12 Mt/a, while maintaining a continuous caving front. BLOCK 2 Phase 2 of mining will progress through Block 2 by continuing to undercut the zone at the 0 mRL southward at a rate sufficient to advance the cave so as to maintain the steady state production rate. The West Limb was not included in the mining plan at this time because it does not contain higher grade material. BLOCK 3 This mining block is directly below Blocks 1 and 2, and its extraction will require a second extraction level. Phase 3 mining will commence by undercutting the zone at its base at the -250 mRL (see AAJV drawing 1362-MA-110). Caving will be initiated at the northern end of the deposit, beneath the existing Phase 1 cave. The start up of production on the -250 mRL will be coincident with the completion of production drawdown directly above on the 0 mRL. The cave front in Block 3 will progress to the south to replace production capacity as Phase 1 is completed. As the cave front is advanced south and west the undercut level will be raised in stages to the -200 m and then the -100 mRL to accommodate the plunge and dip of the zone (see AAJV drawing 1362-MA-112). BLOCK 4 This block comprises the southern upper section of the zone. The base of the mining block is the 200 mRL (see AAJV drawing 1362-MA-109). Phase 4 will commence in Project No. AAJV001 Page 19-30 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report-Preliminary Assessment Oyu Tolgoi Project, Mongolia this block once the cave from Phase 2 has reached the southern end of Block 4 (see AAJV drawing 1362-MA12). BLOCK 5 Block 5 lies directly below Block 4. This block is generally lower grade material and Phase 5 will be the final clean up stage of mining. AAJV assumed that the steady state rate of caving will be 200 mm per day, the same rate predicted by SRK for Hugo South. This daily caving rate translates into a daily production rate of 0.56 t/m(2) of undercut or an annual production rate of 200 t/m(2) of undercut. The annual production tonnage is a function of the caving rate and the area of undercut available for production drawdown in any given year. A steady state production rate of 12 Mt/a is considered attainable. The rate of production build up to the steady state production rate is governed by the rate that the undercuts and draw cones can be developed. Table 19.4-2 presents a summary of the annual production forecast, including mining dilution. The steady state production rate of 12 Mt/a will be attained 3 years after production startup and maintained for ten years. This steady state rate could be extended if additional material from the resource already defined can be incorporated through optimisation of this mining plan or the resource is expanded by further exploration. Project No. AAJV001 Page 19-31 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.4-2: PRODUCTION FORECAST (K TONNES)
STOPING DEVELOPMENT TOTAL YEAR TONNES Cu% Au g/t TONNES Cu% Au g/t TONNES Cu% Au g/t ----------------------------------------------------------------------------------------- 3 0 486 1.99 0.36 486 1.99 0.36 4 1,100 2.28 0.42 531 1.99 0.36 1,631 2.19 0.40 5 5,950 2.28 0.42 434 1.99 0.36 6,384 2.26 0.41 6 9,624 2.42 0.52 330 1.99 0.36 9,954 2.41 0.52 7 12,000 2.35 0.54 330 1.99 0.36 12,330 2.34 0.54 8 12,000 1.97 0.45 609 1.99 0.36 12,609 1.97 0.44 9 12,000 1.81 0.31 641 1.99 0.36 12,641 1.82 0.31 10 12,000 1.92 0.40 597 1.99 0.36 12,597 1.92 0.40 11 12,000 2.19 0.48 0 12,000 2.19 0.48 12 12,000 2.30 0.52 195 1.99 0.36 12,195 2.30 0.51 13 12,000 2.31 0.47 1,294 1.99 0.36 13,294 2.28 0.46 14 12,000 2.20 0.36 535 1.99 0.36 12,535 2.19 0.36 15 12,000 2.08 0.33 434 1.99 0.36 12,434 2.08 0.33 16 12,000 1.70 0.19 413 1.99 0.36 12,413 1.71 0.20 17 11,499 1.38 0.11 699 1.99 0.36 12,198 1.41 0.12 18 8,134 1.19 0.08 0 1.99 0.36 8,134 1.19 0.08 19 4,937 1.28 0.09 537 1.99 0.36 5,474 1.35 0.12 20 4,616 1.90 0.15 0 4,616 1.90 0.15 21 2,614 1.96 0.16 0 2,614 1.96 0.16 TOTAL 168,474 1.99 0.35 8,065 1.99 0.36 176,539 1.99 0.35
19.4.9 PRIMARY DEVELOPMENT AND SCHEDULE Total vertical and lateral development requirements to achieve this production plan are estimated at 6,400 m and 88,200 m respectively. The development schedule, excluding the exploration development, is shown in Table 19.4-3. Project No. AAJV001 Page 19-32 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.4-3: HUGO NORTH DEVELOPMENT SUMMARY
YEAR SHAFT VERTICAL DECLINE LATERAL TOTAL --------------------------------------------------------- 2 265 1,195 960 1,530 3,950 3 950 250 1,200 1,285 3,685 4 380 975 45 5,060 6,460 5 4,760 4,760 6 955 185 4,605 5,745 7 3,085 3,085 8 3,385 3,385 9 6,940 6,940 10 6,225 6,225 11 5,045 5,045 12 195 700 895 13 1,465 1,385 4,055 6,905 14 11,570 11,570 15 5,050 5,050 16 4,360 4,360 17 800 4,570 5,370 18 5,990 5,990 19 580 580 20 4,595 4,595 TOTAL 1,595 4,840 4,770 83,390 94,595
VERTICAL DEVELOPMENT A 1,600 m deep production shaft will be required to provide access for personnel, equipment, and supplies and for hoisting ore and waste. This shaft will require three years to sink, including lead-time for engineering, contractor selection, and mobilisation. To achieve the production forecast, it will be necessary to begin work on this shaft prior to a final production decision for the Hugo North project expansion. The start of shaft sinking is scheduled in Year 2. In concert with this fast track approach for underground project expansion, the initial mining access development on the -15 mRL will also begin in Year 2 using the exploration shaft that will have been sunk to -40 mRL in Year -1 (see Section 19.4.10). In order to facilitate this initial development, a 1,200 m ventilation raise will be required from surface to the -15 mRL. Additional ventilation raises will be developed as required to meet the mine operations airflow requirements throughout the mine workings. Project No. AAJV001 Page 19-33 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Three separate ore pass systems will be required to deliver ore to and from three individual crusher stations located in the footwall of the zone (see AAJV drawing 1362-MA-112). These ore pass systems will deliver the ore from the crusher stations to a common ore transfer level at the -325 mRL, where it will be conveyed to the production shaft (see AAJV drawing 1362-MA-111). A separate waste pass system will also be developed parallel to each ore pass system. LATERAL DEVELOPMENT Lateral development quantities include the on-going stoping development requirements for the block cave mining, including transfer, extraction and undercut level development and all on-going primary development requirements including ramp and level access to the ore zone, ventilation connection drifts and ore transfer level conveyor gallery development. Because the production shaft will not be available until Year 2, the initial preproduction development will be carried out from the previously developed exploration shaft as described above and will begin in Year -2. Approximately 5,000 m of lateral development will be completed in Years -2 and -1 prior to the expansion decision date, of which 2,200 m will be ramp access development from the -15 mRL to the -325 mRL ore transfer level. 19.4.10 HUGO NORTH UNDERGROUND EXPLORATION PROGRAM (GRD MINPROC) GRD Minproc prepared a conceptual underground exploration plan for Hugo North. The plan included a 1,200 m exploration shaft, 5,500 m of underground development, and the diamond drilling from underground necessary to convert Hugo North to Indicated Resource status. IMMI selected the shaft location, SRK and IMMI selected the two development levels at the 200 mRL and -40 mRL on which drilling is planned. The amount of drilling included in the estimate was that provided by SRK and IMMI to be required to complete a Feasibility Study. This work is not included in the Hugo North plan or cost estimates. IMMI chose the location for the shaft, the reasons for the location included the presence of a dyke at that location and it was thought that this might give a more competent rock than in other areas. The location is outside of the planned Hugo North subsidence zone (supplied by SRK), and will not be effected by the Hugo South pit shell until towards the end of stage 2. Location of the shaft and the possibility of sacrificing all or part of the shaft should be analysed further. Project No. AAJV001 Page 19-34 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Key dates for the underground exploration program are shown in Table 19.4-4. TABLE 19.4-4: MILESTONE DATES
ACTIVITY FINISH DATE -------------------------------------------------------------------- Shaft Sinking 4th Qtr 2005 Level Development 2nd Qtr 2007 Resource Drilling 3rd Qtr 2007
Costs have been estimated using information from the decline tender carried out by IMMI in 2003, studies prepared in China on shaft sinking at Oyu Tolgoi and other cost data. Table 19.4-5 shows a summary of the cost estimate. TABLE 19.4-5: COST ESTIMATE Shaft $000 23,725 Development $000 28,438 Owner Costs $000 18,942 Drilling $000 4,851 TOTAL $000 75,955
The estimate is preliminary and the productivities, costs and other assumptions should be the subject of further review particularly the following: - Ventilation requirements and options need to be assessed. A ventilation shaft may be required to develop both the -40 mRL and the 200 mRL Exploration Levels concurrently. - A more detailed analysis should be carried out on all development rates to reduce the risk of overestimating development and sinking rates. - All costs should be reviewed and adjusted as additional information is available It is recommended that IMMI continue to review and justify the requirement for exploration of Hugo North by underground exploration and review alternative strategies including additional drilling from surface. Project No. AAJV001 Page 19-35 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.4.11 MOBILE EQUIPMENT (ADAPTED FROM SRK, APPENDIX B) CONTRACTORS EQUIPMENT SRK and AAJV assumed, for the purposes of the Scoping Study, that contractors will complete all development activities including the drilling and blasting of the undercut over the entire mine life. The contractor will supply all the equipment necessary to carry out this work. DEVELOPMENT - DRILL JUMBOS Two types of development jumbos will be used: two-boom jumbos suitable for larger profiles (e.g. decline 6 m by 6 m) and two-boom jumbos suitable for smaller profiles (e.g. undercut and extraction levels 4.5 m by 4.5 m). SRK and AAJV assumed that both jumbo types will achieve 35 m per week in single headings (classified as three or less headings) and 70 m per week in multiple headings (classified as greater than three headings). The jumbos will also be used to install initial ground support (e.g. point anchor bolts). PRODUCTION - DRILL RIGS Longhole drilling rigs capable of drilling vertical blastholes as long as 50 m with hole diameters ranging from 89 to 102 mm will be utilized to develop extraction level draw bells and undercut level draw cones. These units are capable of drilling 8,000 drill metres per month. The undercut level will also require a drill rig for horizontal blastholes. DEVELOPMENT - LOADERS Diesel loaders with 8 m(3) bucket capacity will be used to handle waste development requirements. Smaller diesel loaders with 7.4 m(3) bucket capacity will be used in undercut and extraction level ore development due to the reduced profile. OTHER EQUIPMENT Other contractors' equipment will include: - Haul truck(s) - Grader - Explosive loaders Project No. AAJV001 Page 19-36 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Cable bolter(s) - Shotcrete unit(s) OWNERS EQUIPMENT All production on the extraction level and secondary breakage activities will be undertaken by the IMMI employees. PRODUCTION - LOADERS Electric loaders with 7 m(3) bucket capacity will be used for draw point ore production. These electric loaders will be powered via a trailing electrical cable, which limits their travel distance to approximately 250 m. The stope loaders will be capable of handling 1.2 Mt/a. It is estimated that 12 units will be required at the full production rate. SECONDARY BREAKAGE EQUIPMENT This equipment will be comprised of separate units capable of handling either high hang ups or low hang ups in the draw bells and draw points. At full production it is estimated that two (2) high hang up and four (4) low hang up units will be required to maintain the flow of ore from the draw points in the extraction drifts. In addition to these units one (1) tele-remote twin boom jumbo will be required. LIGHT VEHICLES AND OTHER EQUIPMENT A fleet of light vehicles will be required for transportation of staff, production and maintenance personnel. This fleet will include approximately 25 transport vehicles, 3 integrated tool carriers, an ambulance and other miscellaneous equipment. 19.4.12 MATERIAL HANDLING SYSTEM AND EQUIPMENT ORE AND WASTE PASS SYSTEMS Electric-powered loaders will excavate broken ore from the draw points on the various extraction levels and tram it to ore dump locations in the footwall of the zone. Each ore dump will be covered by a grizzley with 1 m bar spacings and will be equipped with a rock breaker to handle oversized material. The ore will pass through the grizzley into one of three ore pass systems, either directly or via finger raises. Each ore pass system will feed a crusher station. The ore pass systems will be strategically placed Project No. AAJV001 Page 19-37 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia along the strike of the ore zone to optimise the ore haulage from the stope extraction drift to the nearest ore dump location. Three waste pass systems will be developed, each paralleling an ore handling system. Waste pass dumps will not require rock breakers and waste passes will by-pass the crusher stations. CRUSHING AAJV based this mining plan on utilizing three crusher stations, located at elevations designed to accommodate the plunge of the ore (see AAJV drawing 1362-MA-112). Starting from the northern extent of the ore zone moving south, the No. 1, No. 2, and No. 3 crushers will be located directly below the -250 mRL, -200 mRL and 0 mRL respectively. The No. 1 and No. 2 crushers wilt be capable of handling 12 Mt/a and the No. 3 crusher 8 Mt/a of ore. At each crusher station, the flow of ore from the bottom of the ore pass into the crusher room will be controlled via a chute and chain arrangement onto an apron feeder, which will feed the crusher. A gyratory crusher will be employed at each crusher station and will be capable of handling up to 1 m sized material and crush down to a nominal minus 150 mm. The crushed ore will discharge from the crusher directly into an ore pass that will be developed from the -325 mRL ore transfer level. The ore pass below each crusher station will discharge the ore via a chute and vibratory feeder arrangement onto an individual conveyor belt at the -325 mRL ore transfer level. These belts form a conveyor network that delivers the ore to the production shaft. CONVEYING The conveyor network will comprise of three separate conveyors: - The main conveyor will receive ore and waste directly from the No. 1 crusher ore and waste pass systems and transfer them directly to the production shaft. - The No. 2 conveyor will receive ore and waste from the No. 2 crusher ore and waste pass systems and transfer them to the No. 1 main conveyor. - The No. 3 conveyor will receive ore and waste from the No. 3 crusher ore and waste pass systems and transfer them to the No. 2 conveyor. A transfer chute arrangement will feed the ore and/or waste from one conveyor to another as required. Project No. AAJV001 Page 19-38 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The conveyor lengths and maximum capacities are shown in Table 19.4-6. TABLE 19.4-6: CONVEYOR SYSTEM
LENGTH CAPACITY CONVEYOR DESIGNATION M T/H --------------------------------------------------------------------------------------- No. 1 Main conveyor 700 2,040 No. 2 Transfer 400 2,040 No. 3 Transfer 450 1,100
Each conveyor will have 1,200 mm belt width and will be a three roll trough type conveyor. HOISTING The main conveyor will discharge ore and waste at the -325 mRL production shaft station into an ore surge bin and a waste pass respectively, each located in the shaft vicinity and developed between the -325 m and -375 mRL. The ore bin and waste passes will discharge ore and waste respectively onto a short shaft load out conveyor located on the -375 mRL. This conveyor will discharge the ore or waste into a small shaft side bin below which the shaft loading flasks will be filled for direct skip loading. The ore wilt be hoisted to surface in four 25 t capacity skips using two multi-rope Koepe hoists. The skips will discharge the ore and waste on surface into ore and waste storage bins located at the head frame. SURFACE TRANSFER The ore from the storage bin will be transferred by apron feeder onto an overland conveyor, which will transport the ore to a dedicated crushed ore stockpile at the concentrator. As required, the waste will be transferred to open pit haulage trucks and placed on the appropriate waste dump. VENTILATION The production shaft will be the primary mine ventilation intake and exhaust airway. To accomplish this, the 9.5 m inside diameter shaft will include a brattice wall that will separate the intake side of the shaft from the exhaust side. The exploration shaft will Project No. AAJV001 Page 19-39 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia provide additional ventilation capacity. The primary mine ventilation fans will be exhausting fans located on surface at the production shaft collar. A mine air heating arrangement will also be required at the production shaft. This will include a ventilation plenum arrangement for introducing the heated air into the shaft collar area. The air will be heated by indirect means, using heated glycol from the site heating system. The collar of the exploration shaft is within the ultimate Hugo South open pit. Just prior to the point when the upper portion of the shaft is to be mined out, a second shaft near the rim of the pit will be sunk and a short drift driven to connect to the existing airway. MINE ACCESS Primary access to the mine for men and materials will be via the production shaft using a double drum hoist to operate two in-balance double deck cages, with each deck capable of accommodating 20 men. A secondary means of egress from the bottom of the mine workings will be provided by a footwall ramp access between the -325 mRL and -15 mRL and from the -15 mRL to surface via the exploration shaft. 19.4.13 MINE INFRASTRUCTURE DEWATERING FACILITIES The permanent dirty mine water sump arrangement and pump station will be established on the -325 mRL developed off the main conveyor gallery close to the zone. This arrangement will include a high rate settling cone discharging into a clear water sump(s) and a pump room housing two 60 l/s high lift clear water pumps which will discharge the clear water through a 200 mm pressure rated pipeline installed in the conveyor gallery and up the production shaft to the surface plant. SERVICE WATER FACILITIES A 150 mm, 6 mm thickness pipeline will be installed down the length of the production shaft with tee-offs at the 185 mRL, -15 mRL, -265 mRL, -325 mRL and 375 mRL shaft stations. A pressure-reducing valve will be located in the shaft line at the 185 mRL station. The pipelines on the levels will be 100 mm diameter. Project No. AAJV001 Page 19-40 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia ELECTRICAL RETICULATION The underground electrical reticulation system will be 11 kV with 7.4 MVA capacity, excluding any spare capacity required. This is based on the capacity estimated by SRK for the proposed Hugo South block cave development. The reticulation, which will be via the production shaft, requires three 185 mm(2) feeders from surface to the various levels. One feeder will be carried from the -15 mRL shaft station along the main shaft crosscut at this level to the mining area to provide power for Phases 1 and 2. The second feeder will be carried from the -265 mRL shaft station along the main shaft crosscut at this level to provide power to the No. 1 and No. 2 crushing stations. The third feeder will be carried from the -325 mRL shaft station along the main conveyor drift to supply power to the pumping station and conveyors on the -325 mRL level. A fourth feeder will be required at a later date on the -185 mRL for Phase 4. Permanent substations at various centrally located underground locations will house transformers supplying 1000 V power for trackless mining equipment, secondary ventilation, pumping and conveying and other underground equipment needs. 19.4.14 MINE ORGANIZATION (EXTRACTED FROM SRK REPORT, APPENDIX B) The initial manpower list at full compliment is presented in Table 19.4-7. Project No. AAJV001 Page 19-41 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.4-7: INITIAL MANNING REQUIREMENT
EXPATRIATE MONGOLIAN TOTAL -------------------------------------------------------------------------- SENIOR MANAGEMENT Genera! manager 1 1 Manager mining 1 1 Manager technical services 1 1 Secretary/clerical staff 10 10 MINE TECHNICAL SERVICES Senior mining engineer 4 4 Mine planning engineer 4 4 Mine ventilation engineer 2 2 Senior geotechnical engineer 4 4 Draw Control Engineer 4 4 Drill and blast engineer 2 2 Mine technical assistants 16 16 Senior geologist 2 2 Mine geologist 8 8 Geological technician 20 20 Senior mine surveyor 2 2 Mine surveyor 2 2 Survey technician 6 6 MINE PRODUCTION Production superintendent 1 1 Development Superintendent 1 1 Mine Foreman 2 2 Shift boss production 6 6 Stope Personnel 6 6 - Production drill 4 4 - Loader 20 20 Loss Control Manager 2 2 Safety Officers 4 4 Training Personnel 6 6 Translators 13 13 Control room Operators 3 3 IT Officers 4 4 Misc services 18 18 Secondary Breakage 9 9 MINE MAINTENANCE Maintenance planner 2 2 Mechanical supervisor 3 3 Electrical supervisor 3 3 Maintenance tradesperson 18 18 Mechanical tradesperson 9 9 Instrument technician 18 18 TOTAL 52 189 241
As the mine reaches steady state production and beyond expatriate labour will be progressively replaced by Mongolian labour. The ultimate manpower list is presented in Table 19.4-8. Project No.: AAJV001 Page 19-42 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.4-8: ULTIMATE MANNING REQUIREMENTS
EXPATRIATE MONGOLIAN TOTAL ------------------------------------------------------------------------ SENIOR MANAGEMENT General manager 1 1 Manager mining 1 1 Manager technical services 1 1 Secretary/clerical staff 10 10 MINE TECHNICAL SERVICES Senior mining engineer 4 4 Mine planning engineer 4 4 Mine ventilation engineer 2 2 Senior geotechnical engineer 4 4 Draw Control Engineer 4 4 Drill and blast engineer 2 2 Mine technical assistants 16 16 Senior geologist 2 2 Mine geologist 8 8 Geological technician 20 20 Senior mine surveyor 2 2 Mine surveyor 2 2 Survey technician 6 6 MINE PRODUCTION Production superintendent 1 1 Development Superintendent 1 1 Mine Foreman 2 2 Shift boss production 6 6 Stope Personnel 6 6 - Production drill 4 4 - Loader 20 20 Loss Control Manager 2 2 Safety Officers 4 4 Training Personnel 6 6 Translators 13 13 Control room Operators 3 3 IT Officers 4 4 Misc services 18 18 Secondary Breakage 9 9 MINE MAINTENANCE Maintenance planner 2 2 Mechanical supervisor 3 3 Electrical supervisor 3 3 Maintenance tradesperson 18 18 Mechanical tradesperson 9 9 Instrument technician 18 18 TOTAL 3 238 241
19.4.15 FURTHER WORK REQUIRED In order to move the project to the feasibility stage, follow up work is required to confirm concepts outlined in this Scoping Study. Among the items required are: - Obtain design-level geotechnical and insitu stress data for the zone. - Confirm the choice of block caving as the preferred mining method for Hugo North. Project No.: AAJV001 Page 19-43 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia - Optimise the extraction plan for Hugo North, evaluating options for areas of the zone that have not been included in the mine plan and assessing a single level plan versus the dual level plan currently envisioned. - Prepare detailed mine level development plans and sections for all mining development. - Prepare a detailed preproduction schedule to confirm start up date. - Establish storage bin and ore surge capacity requirements throughout ore handling system. - Prepare specifications for and select ore transfer equipment (crushers, chutes, feeders, conveyors etc.). - Carry out a detailed ventilation network analysis to quantify mine airflows throughout the mine workings in order to prepare specifications for and select primary fans and heaters and establish secondary fan requirements. - Complete detailed designs for both the exploration and production shafts and obtain detailed quotations for sinking and equipping both facilities. - Obtain quotations for completing initial and ongoing primary development by contractors and complete an analysts that compares contractor development to development by IMMI. - Prepare specifications for all mobile mining equipment. - Complete engineering of all mine service requirements (dewatering, electrical distribution etc.) - Carry out trade-off studies for alternative ore transfer systems on -325 mRL and/or other levels. - Review equipment access requirements via production shaft. - Review second means of egress requirements via exploration shaft. - Determine useful life of exploration shaft and evaluate replacement alternatives versus possible relocation. - Coordinate the exploration access development program on the 200 mRL and -40 mRL levels with primary access development plans on the 185 mRL and -15 mRL levels to minimize development requirements. Project No.: AAJV001 Page 19-44 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.5 PROCESS DESCRIPTION 19.5.1 INFORMATION & DATA BASE IMMI has been managing a metallurgical testwork program that has been in progress since early 2002 and conducted predominantly at SGS Lakefield. The work to date is summarized in Section 16. Whilst the testwork to date is significant, a great deal of testing remains to be completed to support the Feasibility Study. In addition, only limited testwork has been completed on the Hugo Dummett deposit as it continues to be expanded by drilling. As a result, the metallurgical data base ranges from beyond that required of a Scoping Study in some areas to almost non-existent in others. Development of the Scoping Study flowsheet and design was based on the testwork to date. Where information was not available from testwork, assumptions were made in line with typical operating practices. Consequently, a flowsheet was developed based on conventional and commercially proven crushing, grinding and flotation processes to produce a copper concentrate for export to custom smelters. 19.5.2 DESIGN CRITERIA AND FLOWSHEET The governing principle for the concentrator design was to incorporate the largest proven mills into the grinding modules. The throughput rate was determined based on the capacity of the mills to grind the hardest ore to the required P(80) size of 100 (Micro)m. The remainder of the plant was sized based on the estimated comminution throughput with consideration given to grade and recovery of copper at this resulting tonnage. The grinding modules will consist of one 12.2 m (40 ft) diameter by 7.3 m long (6.7 m EGL) semi-autogenous grinding (SAG) mill powered by a 21 MW wrap around motor followed by two 7.9 m diameter by 11.7 m (11.6 m EGL) long ball mills, each powered by a 15.5 MW wrap around motor. The climatic conditions at Oyu Tolgoi were considered. The low winter temperatures and seasonal high winds have dictated that the concentrator, including grinding circuit, be fully enclosed within a heated building. The stockpile is covered to prevent excessive dust emissions and conveyors are covered to prevent dust loss and blow off of unloaded conveyor belts. The building and facility designs accommodate the expected wind loading. Freezing of wet stockpiles has also been considered. The need to conserve and recycle as much water as possible in such an arid environment has also been taken into account. Project No.: AAJV001 Page 19-45 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report -- Preliminary Assessment Oyu Tolgoi Project, Mongolia Three cases were considered. The annualized treatment rate will vary depending upon the ore presentation. For example, material from Southwest will have a lower throughput rate than softer ore from Central. Case 4b envisages the commencement of operations with two grinding modules giving a maximum nominal annual capacity of 40 Mt/a. Case 2c assumes only one grinding module, with a maximum nominal capacity of 20 Mt/a. Case 4a is a ramp up scenario in which the one module that is built initially as Case 2c would be expanded with a second identical circuit coming on line in Year 5. Details of the mining and ore presentation schedule are contained in Sections 19.3 and 19.4. The concentrator design availability was set at 95%. Based on a review with IMMI, the standby slurry pumps were removed from the flowsheet with no revision of the availability. During the Feasibility Study, the need for standby pumps and their effect on plant availability should be the subject of further review. A simplified diagram of the flowsheet planned for Oyu Tolgoi is shown in Figure 19.5-1. This figure shows treatment from primary crushing, to the stockpile, to the SAG mill with pebble recirculation through cone crushers. The combined SAG screen undersize and ball mill products will be pumped to hydrocyclones with the hydrocyclone underflow feeding flash flotation and gravity concentration. Flash flotation tails will be directed to dual ball mills operating in parallel. Hydrocyclone overflow will form the feed to the rougher flotation circuit, with rougher tails going to the tailings thickener and dam, and the concentrate reground and cleaned to a final concentrate, which will be filtered and shipped. Project No.: AAJV001 Page 19-46 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.5-1: SIMPLIFIED FLOWSHEET [SIMPLIFIED FLOWSHEET PICTURE] Project No.: AAJV001 Page 19-47 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Development of the design criteria was a consultative process involving IMMI and AAJV. The design criteria, which are summarised in Table 19.5-1, were developed for plant throughput rates of 20 Mt/a and 40 Mt/a. The criteria for these two throughput rates match the requirements of the three cases under consideration. The 20 Mt/a criteria apply to Case 2c and to the first four years of Case 4a. The 40 Mt/a criteria apply to Case 4b and to the expanded plant in Case 4a. TABLE 19.5-1: SUMMARY PROCESS DESIGN CRITERIA
CRITERIA UNITS 20 MT/A 40 MT/A SOURCE --------------------------------------------------------------------------------------------------- OPERATING Feed source Open pits Open pits + IMMI underground Treatment rate Mt/a 17 - 20 37 - 40 IMMI Crushing plant availability % 74 74 AAJV Crushing plant treatment rate t/h 3 101 6 202 Concentrator availability % 95 95 IMMI Concentrator treatment rate t/h 2 403 4 807 Crushing and Stockpiling Crusher type Gyratory AAJV Crusher size inch 60 x 110 AAJV Stockpile type Covered, conical IMMI Stockpile live capacity t 30,000 40,000 AAJV GRINDING Bond rod mill work index, design kWh/t 12.2-18.5 13.5 - 18.5 Test Bond ball mill work index, design kWh/t 10.7-17.4 13.1 - 17.3 Test SAG mill, no. 1 2 AAJV SAG mill diameter m 12.2 12.2 IMMI SAG mill EGL m 6.7 6.7 AAJV SAG mill installed power MW 21 21 AAJV Recycle to pebble crush, percent of feed % 30 30 Assumed Pebble crusher, no. 3 6 AAJV Pebble crusher type Cone Ball mill, no. 2 4 AAJV Ball mill diameter m 7.9 7.9 AAJV Ball mill EGL m 11.7 11.7 AAJV Bail mill installed power MW 15.5 15.5 AAJV Classification Cyclones AAJV Primary grind size, P80 (mo)m 100 100 Test FLOTATION AND REGRIND Flash flotation, no of cells 4 8 Assumed Flash flotation cell size 1,200 1,200 Assumed Gravity concentrators, no 4 8 Assumed Gravity concentrators, type Centrifugal Assumed Gravity concentrate treatment Shaking tables Assumed Rougher flotation banks 2 4 AAJV Rougher cell size m(3) 200 200 AAJV
Project No.: AAJV001 Page 19-48 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.5-1: SUMMARY PROCESS DESIGN CRITERIA (CONT.)
CRITERIA UNITS 20 MT/A 40 MTFA SOURCE --------------------------------------------------------------------------------------------------- Rougher cells, no. per bank 6 6 AAJV Basis for cell selection Residence time Residence time, nominal min 22 22 Test Regrind circuit product size, P80 um 20 20 Test Regrind mill type Vertical AAJV Regrind mill size kW 1,120 1,120 Assumed Regrind mill, no. 7 14 AAJV First cleaner flotation banks 1 2 AAJV First cleaner cell size m(3) 38 38 AAJV Second cleaner flotation banks 1 2 AAJV Second cleaner cell size m(3) 16 16 AAJV Third cleaner flotation banks 1 2 AAJV Third cleaner cell size m(3) 16 16 AAJV Cleaner scavenger flotation banks 1 2 AAJV Cleaner scavenger cleaner cell size m(3) 38 38 AAJV CONCENTRATE HANDLING Concentrate thickener, no. 1 1 AAJV Concentrate thickener unit area t/h/m(2) 0.25 0.25 Assumed Concentrate thickener diameter m 38 38 AAJV Concentrate filter, no. 2 6 AAJV Concentrate filter type Pressure AAJV Concentrate filter unit area m(2) 120 120 AAJV Concentrate storage capacity days 5 5 IMMI TAILINGS THICKENING Tailings thickeners, no. 2 4 AAJV Tailings thickener unit area t/h/m(2) 0.40 0.40 Test Tailings thickener diameter m 60 60 AAJV
19.5.3 CRUSHING AND STOCKPILING Depending on its source, ore will be crushed either at the open pit crusher located adjacent to the concentrator, at the Hugo South in-pit crusher, or in the underground crushers. For the open pits, haulage trucks will deliver the ore to the crushing plant. Most of the ore will be dumped directly into the crusher. Provision will be made for a run-of-mine (ROM) stockpile area adjacent to the primary crusher dump hopper. This will serve as a buffer for reclaiming during times of ore shortages from the mine or for blending different ore types if required. Circuit design is based on the criteria that the size of the open pit ROM ore will be 98% passing 1,000 mm with a P(80) of 500 mm. The open pit haulage trucks will dump ROM material directly into the dump pocket feeding the primary gyratory crusher. Project No.: AAJV001 Page 19-49 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report-Preliminary Assessment Oyu Tolgoi Project, Mongolia The dump pocket will be designed for double-side tipping and will have a capacity of 600 t, or approximately 2 truckloads, A hydraulic rock breaker will be installed to clear blockages. Crushed material will be withdrawn from the discharge pocket beneath the primary crusher and transported by conveyor to the crushed ore stockpile. The Hugo North ore will be crushed underground prior to hoisting to surface. The ore will be dumped from the hoisting skips into a bin within the headframe, fed onto an overland conveyor and transported to a second crushed ore stockpile. The stockpiles will be covered to prevent excessive dust emissions. This cover will, however, be designed to allow dozer access for pushing material towards the feeders. The stockpiles will be constructed in-line, and two reclaim conveyor tunnels will be installed that will traverse the piles, each designed to feed its own SAG mill. In Case 2c, a second tunnel will be constructed for a future expansion, but no feeders will be installed. For Case 4b with tn-pit crushing, a third stockpile would be constructed. Each tunnel will have three apron feeders beneath each stockpile. These feeders have been sized so that two feeders can provide the full mill feed rate to allow one unit to be off line for servicing. This will allow the operators to feed each SAG mill from either stockpile or to blend the feed from both stockpiles. 19.5.4 GRINDING Whilst equal to the largest units in the world, each grinding module utilises conventional, proven technology. The mills are equivalent in size, to those at Collahuasi, which are undergoing commissioning at the time of preparing this report and should be operational before completion of the Feasibility Study. Based on the testwork data currently available, a primary grind size of 100 (Micro)m has been selected as the basis of this study. The grind size will be optimised as part of the proposed feasibility study testwork program. Each grinding module includes one 12.2 m (40 ft) diameter by 6.7 long SAG mill, equipped with a 21 MW variable speed wrap around motor, designed to carry a ball charge up to 18% and improve flexibility to treat a range of ore hardness. The actual ball charge during operation can be varied to optimise the mill performance as the ore characteristics change over time. The SAG mill will discharge over a pair of vibrating screens. Screen oversize will report to a hopper feeding three pebble cone crushers. For the purpose of designing the pebble crushing circuit, it has been assumed that the Project No.: AAJV001 Page 19-50 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia circulating load would be 30%, Additional analysis must be completed to determine the actual level of this load. The SAG mill screen undersize will gravitate to the cyclone feed hopper to join the ball mill circulating load for pumping to the hydrocyclone cluster, A cut of the cyclone underflow will be fed to four flash flotation cells operating in each circuit. Flash flotation tails will join the remainder of the cyclone underflow stream as feed to the ball mills. The ball mills will be 7.9 m diameter by 11.6 m long, equipped with 15.5 MW wrap around motors. This will provide an added advantage of variable speed control and assist in management of variation in ore hardness and potentially primary grind size. The current flowsheet envisages that the flash flotation concentrate will be processed through centrifugal gravity concentrators. However, the benefit of a gravity circuit will be reviewed during the feasibility study as additional testwork better defines the amount of gravity gold that can be recovered. For the Scoping Study, AAJV assumed that gravity concentrate will be tabled, digested with nitric acid and smelted into gold bars. Gravity tails will report to the regrind circuit and, subsequently, the concentrate cleaner flotation cells. Flash flotation concentrate will be capable of by-passing the gravity gold circuit during periods when gold levels are low. At times, if the copper grade in the concentrate is sufficiently high, it may be possible to by-pass the flash flotation concentrate directly to final concentrate without regrinding and cleaning. 19.5.5 FLOTATION AND REGRIND Each grinding module will support its own flotation module. Each rougher flotation module will consist of two banks of six cells with individual cell capacities of 200 m(3). Each bank will be equipped with automatic pulp and froth level control. The rougher circuit will provide a residence time of 22 minutes, which allows for a scale up factor of 2 compared to the testwork. The pH will be adjusted with hydrated lime slurry and collector and frother will be dosed as required. Testing has shown that Aerophine 3418A collector is effective for floating copper and gold but a range of other collectors from Chinese manufactured xanthates to selective collectors aimed at improved concentrate grades and gold recoveries will be tested during the feasibility study. Rougher tailings will report to two tailings thickeners per module. Tailings handling is covered in Section 19.6. Rougher concentrate will join the flash flotation concentrate stream for regrinding prior to cleaner flotation. Each regrind module will consist of seven 1,120 kW vertical regrind mills operating in closed circuit with cyclones. These units are equivalent to Project No.: AAJV001 Page 19-51 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia the largest currently in operation. Regrind mills were sized to produce a P(80) size of 20 (Micro)m based on testwork carried out to date and using an assumed work index. Additional analysis is required during the feasibility study to optimise recovery and regrind size, establish regrind power demands and to assess the impact on of fine grinding on the rejection of fluorine. Reground concentrate will be upgraded using three stages of cleaner flotation operating in counter current fashion. Concentrate from the cleaner circuit will report to the concentrate thickener and tailings will report to a single scavenger bank. Cleaner scavenger tailings will be fed to the tailings thickener and concentrate will be returned to the regrind circuit. 19.5.6 CONCENTRATE HANDLING Concentrate thickener underflow will be pumped to automated pressure filters for dewatering. Three filters will be required for each module and the filter cake will contain nominally 8% moisture. Filter cake will be conveyed to the concentrate storage building, which will be capable of holding 5 days concentrate production. There will be room in the building for minimal concentrate blending, if required, before shipping. Concentrate will be loaded into road trains by wheel loader for delivery to the railhead at Wuyuan. The requirements for concentrate blending and storage at both the plant site and railhead will be further investigated during the feasibility study. 19.5.7 INSTRUMENTATION & CONTROL The plant will be monitored from a central control room. On-stream copper and iron analysis from multiple sampling points will be fed into the control and monitoring system. This will provide for continuous assessment of copper recovery and concentrate grade. An on-stream particle size monitor on the cyclone overflow will regulate the grind; percent solids will be monitored gamma ray density meters at key locations. Telemetry will allow the computerized output reports to be accessed off-site. 19.5.8 CONCENTRATOR INFRASTRUCTURE INCLUDING REAGENT HANDLING The full range of concentrator infrastructure will be provided including reagent storage mixing and handling, high and low pressure plant air, fire water, maintenance facilities, substations, building heating, control rooms and offices. Dedicated gantry cranes will service the grinding bay and the flotation section, A raw water storage pond will store water from the bore field and a process water storage pond will be provided. The assay laboratory will analyse samples per day for copper, gold, and other elements. Project No.: AAJV001 Page 19-52 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia The amount of storage of specific reagents on site will depend upon the availability, source and delivery times. It has been assumed all reagents and grinding media will be sourced from China. The Scoping Study is based upon lime being sourced from China and delivered to a hopper adjacent to the concentrator where it will be ground and slaked for pumping into the circuit through a ring main distribution system. An alternative source of high quality limestone has been identified at Holboo Tolgoi, approximately 75 km south of Oyu Tolgoi. During the feasibility study, the opportunity will be investigated to quarry this lime and treat it through a lime kiln at the site. Other reagents will be mixed at the concentrator and piped to the addition points, SAG and ball mill grinding media will be delivered and stored in bulk; addition systems to the mills will be built into the design. Regrind media may be delivered in 200 L drums or supplied in bulk. 19.5.9 PLANT LAYOUT The layout of the concentrator and supporting facilities is shown in AAJV drawings in Appendix A. The concentrator positioning was based on: - Meshing with the overall mine and infrastructure layout. - A review of geophysical data of the site to determine where minimal overburden was present. - A central location to optimise ore haulage distances whilst providing enough room for future expansions or other production facilities such a smelter and heap/dump leach plant. Condemnation drilling is required prior to finalizing this site. Additional sites with outcrop or minimal overburden have also been identified and will be tested. These sites are generally located under the west waste dump. The ROM stockpile, the crushed ore stockpiles, the concentrator and the tailings dam dominate the plant layout. All other facilities are located adjacent to these large footprints in the most cost effective and convenient manner possible. The concentrator building is split into two sections, the grinding bay and the flotation, with the control room situated between the two, providing a clear view of both sections. The gold room and switch room will be located below the control room. A conventional Project No.: AAJV001 Page 19-53 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia grinding circuit layout has been selected with the SAG mill facing the two ball mills and all three discharging into a common cyclone feed sump. The cyclone clusters will be located above the feel end of the ball mills. The flotation section is arranged in conventional banks although it is likely that some floor space economy can be gained if column cells are substituted for conventional cells in the cleaner circuit. Concentrate filtration, storage and load out will be located at the end of the flotation section. Thickeners and water storage tankage will be located outside. The main maintenance workshop and warehouse functions will be in separate enclosures. Project No.: AAJV001 Page 19-54 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.6 TAILINGS STORAGE FACILITY DESIGN AND WASTE ROCK MANAGEMENT (KNIGHT PIESOLD) 19.6.1 TAILINGS PHYSICAL PROPERTIES TAILINGS SAMPLES Laboratory testing of tailings slurry samples can provide design-level data on water release from tailings and their final settled density. Knight Piesold uses a standard suite of tests that, together with experience, can be used to predict the behaviour characteristics. To determine physical properties and undrained settling characteristics, Knight Piesold tested four tailings samples that were produced by SGS Lakefield during laboratory processing trials. The samples were produced using drill core ore samples from various locations within the Oyu Tolgoi project area, including the Southwest and the Hugo South deposits. However, the samples were a coarser grind than currently proposed in the process plant design criteria and therefore indicate higher water returns and density than will be obtained from a finer grind. The particle size distribution indicated that the four tested tailings samples were similar and uniformly graded, consisting predominantly of silt-sized particles. The tailings were classified as a low plasticity SILT (ML), using the Unified Soil Classification System. Undrained sedimentation tests indicate that the settling rate of the tailings is moderately fast (95% final settled density within five days) and relatively high final settled densities are achievable with up to 42% of total initial water volume being released as supernatant. 19.6.2 PREDICTED TAILINGS BEHAVIOUR Table 19.6-1 summarises the estimated tailings properties for the four tailings samples. Project No.: AAJV001 Page 19-55 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report-Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.6-1: ESTIMATED TAILINGS BEHAVIOUR CHARACTERISTICS (AT 60% SOLIDS)
TAILINGS SAMPLE TEST COMBINED SAMPLE 1 SAMPLE 2 SAMPLE 3 SAMPLE 4 ---------------------------------------------------------------------------------------------------- SG solids (t/m(3)) 2.79 2.80 2 .81 2.81 2.84 Supernatant density (t/m(3)) 1.0 1.0 1 !.0 1.0 1.0 pH 9.5-10 9.5-10 9.5-10 9.5-10 9.5-10 UNDRAINED TEST %supernatant 36 38-39 40-41 39-40 35-36 Dry density (t/m(3)) 1.27 1.25 1.26 1.28 -1.29 1.30- 1.31 1.22 -1.23 Time to achieve Final density (days) 7 2-3 4-5 5-6 10-11 DRAINED TEST %supernatant 23 18-21 24-27 25-28 23-25 %underdrainage 24 24 27 21-24 22-25 19-22 Dry density (t/m(3)) 1.45 1.42-1.45 1.47-1.49 1.46-1.48 1.41-1.44 Time to achieve final 7 3-4 4-5 5-6 10-12 density (days) AIR-DRYING TEST Final dry density (t/m(3)) 1.82 1.76-1.81 1.80-1.85 1.81-1.86 1.82-1.87 Evaporation to achieve 95 80-90 85-95 90-100 95-115 final density (mm) Permeability (m/s) 6 x 10(-8) 5-10x10(-8) 3-8 1X10(-8) 2-7x10(-8) 1-6 X10(-8) CONSOLIDATION TEST CV * (m(2)/y) 10-13 10- 20 7-17 3- 13 1-11 CC** 0.18-0.32 - - - -
* CV - Compression Index ** CC - Coefficient of Consolidation In general, the indicated behaviour of tailings in the Tailings Storage Facility can be summarised as follows: WATER PRODUCTION The volume of supernatant released will vary depending on the tailings type and the moisture content of the underlying tailings. Table 19.6-2 shows typical values of supernatant release for the different tailings samples based on tailings deposition at 60% solids density. TABLE 19.6-2: SUPERNATANT RELEASE
POTENTIAL RANGE OF ESTIMATED SUPERNATANT SUPERNATANT RELEASE REACHING THE SURFACE POND SAMPLE (%) (%) ------------------------------------------------------------------------------ 1 18-39 22-27 2 24-41 26-31 3 25-40 25-30 4 23-36 19-24
Project No.: AAJV001 Page 19-56 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia TAILINGS DENSITY The laboratory air-drying results for the four samples show final settled densities of 1.75 - 1.85 t/m(3). Experience has shown that densities in the field are generally lower than those that can be obtained in the laboratory. The average final field dry densities for the tailings mass are expected to be in the range of 1.70-1,80 t/m(3). PUMPING AND VISCOSITY Indicative Marsh Cone viscosity tests were undertaken on the combined tailings sample. These tests indicated that the "critical solids content" of the slurry sample occurred at around 67%. It is therefore expected that pumping in the range of 60-65% density will not be a problem for conventional centrifugal slurry pumps. It should be noted that changes in ore types, ore blends and grind size can all make significant changes to slurry viscosity. When the process plant design criteria are finalised, confirmatory viscosity testwork should be undertaken with slurry samples prepared in accordance with the final metallurgical design criteria. 19.6.3 GEOCHEMICAL CHARACTERISATION OF WASTE ROCK AND TAILINGS GENERAL Geochemical characterisation of both waste rock samples and tailings samples from bench scale testwork, was conducted in order to characterise the material in terms of acid generating potential. SGS Lakefield conducted the test work on the tailings samples and Knight Piesold interpreted the results. Environmental Geochemistry International Pty Ltd (EGI) conducted the test work and interpretation on the waste rock samples and the results were summarised by Knight Piesold. BENCH SCALE TESTWORK TAILINGS SAMPLES SGS Lakefield produced several samples of composite tailings that were subjected to standard Acid Base Accounting (ABA) test work. The tailings were produced from composite drill core ore samples from the Southwest, the Central, and the Hugo South deposits. The test methods employed are the generally accepted worldwide industry standards with the interpretation of results based on the Draft Guidelines and Recommended Methods for the Prediction of Metal Leaching and Acid Rock Drainage Project No.: AAJV001 Page 19-57 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia at Mine sites in British Columbia (Price, 1997). The test work comprised the following tests: - Paste pH. - Acid Neutralising Capacity (ANC) and carbonate content. - Maximum Potential Acidity (MPA) and sulphide content. In summary, all samples had paste pH's greater than 8.5 suggesting readily soluble alkali minerals (carbonates). Central deposit had notably lower carbonates than all other samples. This was further confirmed by the results of the ANC tests. In regard to the MPA testing, the samples from all deposits, other than the Central Chalcopyrite zone, have a very low acid generating potential. Two samples from Central Chalcopyrite zone indicated sulphide contents of greater than 0.3%. AH samples had Negative Acid Producing Potential (NAPP) indicating that acid neutralizing capacity for all samples exceeded their maximum potential acidity. The ANC/MPA ratio for samples derived from the Southwest and Hugo Dummett deposits were all greater than ten indicating that ANC exceeds MPA by at feast one order of magnitude. The ratio for samples from Central Chalcopyrite had ratios of less than two indicating samples had similar ANC and MPA values. The classifications assigned to the tailings based on the testing are summarised in Table 19.6-3. TABLE 19.6-3: ACID FORMING CLASSIFICATION
DESCRIPTION CLASSIFICATION COMMENT ------------------------------------------------------------------------------------------ Southwest low grade composite NAF Moderate acid consuming Southwest high grade composite NAF Moderate acid consuming Underground high grade NAF Moderate acid consuming Central early development NAF Low acid consuming Central Chalcopyrite PAF Low acid producing
NAF- Non Acid Forming PAF - Potentially Acid Forming Project No.: AAJV001 Page 19-58 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia WASTE ROCK SAMPLES EGi conducted a first phase geochemical testing program to determine the acid generating potential of waste rock from within the pits. The following test work was conducted on all samples: - Paste pH. - Paste electrical conductivity. - Total Sulphur. - Acid Neutralising Capacity (ANC). - Net Acid Generating Capacity (NAG). - Selected samples were also tested for sequential NAG, kinetic NAG, acid buffering characteristic curve test and multi-elements of solids and water extracts. Based on test results the samples were classified as Non Acid Forming (NAF), Potentially Acid Forming (PAF) or Uncertain (UC). Information obtained to date from the static tests on material from the Southwest and Central pits was used to generate broad characterization of the distribution of PAF and NAF material from these pits. No testwork has been carried out on waste that would be mined from Hugo South open pit. The samples were selected and discussed within EGi's first phase report (May 2003) in relation to the different lithologies of the waste, and hence the current predictions of Acid Rock Drainage ARD) for the Oyu Tolgoi waste dumps is primarily centred on the relationship between lithology and ARD potential. Results of the first phase geochemical testing program are summarized in Table 19.6-4. Project No.: AAJV001 Page 19-59 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.6-4: RESULTS OF ABA TESTING ON WASTE MATERIAL
TOTAL NUMBER OF RESULTS SUMMARY TEST SAMPLES NAF PAF UC SAMPLE LOCATION LITHOLOGY (NO.) (NO.) (NO.) (NO.) ----------------------------------------------------------------------------------------- Central Deposit Qtz Monzodiorite 15 2 12 1 Basaltic Volcanics 10 5 5 0 Basalt 3 3 0 0 Rhyolite 3 3 0 0 Hb Bi Andesite 3 3 0 0 Cover 5 5 0 0 Bi Granodiorite 3 3 0 0 Sediments 7 7 0 0 Southwest Qtz Monzodiorite 20 9 4 7 Deposit Basaltic Volcanics 19 12 1 6 Basalt 4 4 0 0 Rhyolite 3 3 0 0 Hb Bi Andesite 4 4 0 0 Sediments 8 8 0 0 TOTAL 107 71 22 14
Project No.: AAJV001 Page 19-60 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia In summary the results indicate that: - A significant proportion of samples taken in host lithologies have a potential to generate acid. There was a marked difference between host and non-host lithologies in that all samples taken from non-host lithologies were classified as NAF. - A significant proportion of the waste rock (ie. non-host lithologies) appears to have a strong acid neutralising component. - Even waste material classified as PAF has some acid neutralising capacity (ANC) and a long lag can be expected before onset of any acid generating potential. The major uncertainties at this stage relate to the distribution of NAF and PAF material in the South and Hugo South deposits. Current information gaps also relate to the abundance of calcite deposits within all deposits. Furthermore, the performance of NAF material as a buffer for isolating PAF material has been inferred from the available information. However, the actual performance will require substantiation with leach column tests during the Feasibility Study. On overview, the testwork information to date has enabled a reasonable Scoping Study level assumption to be made that any potential ARD issues can be managed via a combination of mine scheduling of relevant waste types (based on ARD potential), and appropriate waste dump design and construction. It should also be noted that the climatic environment at Oyu Tolgoi has a substantial excess of evaporation over precipitation and the process of potential acid generation will not even commence until moisture ingress to the relevant risk materials occurs. 19.6.4 TAILINGS DESIGN CRITERIA The design criteria used for the Scoping Study are summarised in Table 19.6-5. Project No.: AAJV001 Page 19-61 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.6-5: DESIGN CRITERIA - TAILINGS STORAGE FACILITY
VALUE ITEM DESCRIPTION Case 1 Case 2 Case 3 SOURCE ---------------------------------------------------------------------------------------------------------------- 1.0 Tailings Storage Requirements Average annual output dry tailings 40 20 20 to 40 AAJV (Mt/a) Facility life (years) 27 19 29 GRD Minproc Open pit mining (years) 22 12 24 GRD Minproc Total storage requirement (dry Mt) 1,034 352 1,039 GRD Minproc 2.0 Slurry Characteristics Description Included tailings streams Different ore types not considered Solids content 60% AAJV Liquor S.G. 1.0 KP Solids S.G. 2.8 KP 3.0 Tailings characteristics KP % of liquor released to: - Supernatant and underdrainage in 43% drained test - Supernatant if undrained 35% - % of Liquor released to underdrainage 24% - Minimum density after four days 1.6 t/m(3) - Maximum density after desiccation 1.82 t/m(3) 7.0 Average Climatic Condition Precipitation (mm) Evaporation (mm) - January 0.7 22 Site data, - February 0.7 41 Bayan Ovoo, - March 0.8 143 and Hailiutu, - April 3.0 256 Inner Mongolia - May 4.5 439 (2 years of - June 7.8 378 data) - July 24.2 381 - August 20.3 285 - September 3.9 192 - October 2.0 132 - November 0.8 53 - December 0.5 27 - Annual 68 2,349 8.0 Extreme Rainfall Events Bayan Ovoo Highest on record: 120 mm / 24 hours and Khanbogd weather Assumed for Scoping Study: 200 mm / 24 hours stations 9.0 Extreme Dry Events 0 mm for many months 10.0 Seismic Design Factors Operating Basis Earthquake (OBE) (dam M8.0 = Richter Magnitude KP suffers insignificant damage) 0.4 g = Peak base rock acceleration in terms of gravity, g Maximum Design Earthquake (MDE) M8.5 (dam suffers major damage but does not 0.48 g KP fail and is repairable) 11.0 Stability Analysis Parameters Cohesion (kPa) Angle of Friction Not analysed for Scoping Used typical sections for these materials Study and conditions
Project No.: AAJV001 Page 19-62 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.6.5 TAILINGS STORAGE FACILITY DESIGN LOCATION OPTIONS STUDY Knight Piesold assessed alternatives for Tailings Storage Facility sites at the commencement of the Scoping Study, evaluating four possible locations within or proximate to the license area. The site that was selected is shown on AAJV drawings 1362-G-180 and 1362-G-190. The rationale for this selection was that this is the only site of the four that was located entirely within the license area and any seepage from the site should be drawn into the mine dewatering area due to the drawdown cone of influence. Nonetheless, this site is likely to be the most costly because it would be built on relatively flat ground. If tenure can be obtained for any of the other options then further assessment should be conducted during the Feasibility Study. TAILING STORAGE FACILITY LAYOUT The Tailing Storage Facility was designed in two modules to suit the two throughput rates that were evaluated in the Scoping Study. A two cell design can store 20 Mt/a and the design is expandable to a four cell facility for the 40 Mt/a option. To allow for high water recovery efficiency and maximum consolidation of tailings it will be necessary to limit the rate of rise of the tailings. The facility footprint area was set accordingly. EMBANKMENT CROSS SECTION The embankment details are shown in drawing PE 601-00001-120. The embankment will be constructed with an outer zone of mine waste to provide a durable surface to resist wind erosion. The inner portion of the embankment will be constructed of either mine waste or tailings from the upper beach area. Mine waste can probably be placed most of the year. However, freezing conditions may prevent placement and compaction at times. Use of the tailings for embankment construction will be climate dependent, and will be practical when freezing is not an issue and the material can be suitably dried, moisture conditioned and compacted. The facilities were initially designed with as small a footprint area as practicable, to minimise seepage and evaporation water losses. However, this will result in final embankment heights of about 70 m. During the next study phase, a stability analysis will be required for the Tailings Storage Facility, particularly given the height of the embankments. It is considered that an additional cell could be added to the facility to reduce overall height without appreciably changing costs. Project No.: AAJV001 Page 19-63 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia SLURRY DEPOSITION The tailings slurry pipeline will deliver tailings to a manifold on the embankment from which the distribution pipelines will encircle the tailings facility. Deposition will be from all sides of the facility and also from central embankments. Deposition will be by subaerial methods to maximise water return and minimise water loss due to evaporation. At this stage, the overall process plant water balance has assumed conservative recoveries from the Tailings Storage Facility. Further investigation of methods to raise confidence in higher water recoveries will enable reductions in borefield demands. WATER RETURN One of the main objectives of the Tailings Storage Facility design was to maximise the return of water and minimise water losses. Initial modelling indicates that a low percentage of water will be returned from the facility during both summer and winter due to losses by evaporation and freezing respectively. Most of the frozen water will return during spring and will be available for use in the process plant. To maximise water return and reduce seepage losses, an underdrainage system is recommended under the facility. This will reduce the amount of ponded supernatant and resultant evaporation losses and result in increased overall water return to the process plant. GROUNDWATER Groundwater under the Tailings Storage Facility is relatively shallow (about 5 m) and potable (TDS about 1,000 to 1,500 mg/L). Groundwater is a valuable resource in the region and is used by residents downstream. It is therefore, necessary to ensure that seepage from the Tailings Storage Facility does not adversely impact on groundwater quality beyond the boundaries of the mining license area. To reduce potential adverse impacts on groundwater no part of the currently proposed tailing facility has been located on the existing sediments of the north-south river bed running through the site, even though the intermittent feed water source to this river will be diverted upstream. If an underdrainage system is installed for the Tailings Storage Facility this will also assist to reduce seepage to the ground water table. Monitoring wells will be installed downstream of the tailings facility and upstream of the main river channel. If seepage is noted, these wells will be converted to a dewatering system to collect and return seepage to the Tailings Storage Facility . TAILINGS STORAGE FACILITY CLOSURE The Tailings Storage Facility closure will be accomplished as follows: Project No.: AAJV001 Page 19-64 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - The embankments will be constructed at a sufficiently flat overall slope and shape to suit rehabilitation. - The embankments will be constructed of waste and be rehabilitated in a similar manner to the waste dumps. This will control wind erosion and will comply with environmental requirements. Based on the current acid generating potential testing, most of the tailings are unlikely to produce acid. The portion of the tailings that are acid generating will be selectively buried in accordance with an ARD management plan; however, as the proportion of acid generating material is low, this should be easily accommodated. The Tailings Storage Facility surface will therefore be benign except for the production of dust. To control dust erosion it will probably be necessary to cover the surface with a layer of gravel or waste rock. The tailings surface will collect water within the old pond area following rainfall periods and this could be used to form a natural vegetated area similar to the original topography. The aim will be to return the final surface areas of the facility to a condition similar to the existing environment. SEEPAGE ASSESSMENT Knight Piesold conducted a preliminary assessment of potential seepage from the Tailings Storage Facility . The main factors are: - The stratigraphy and existing groundwater level. - The shape of the tailings facility and the method of deposition and pond control. - Groundwater drainage towards the open pit. Mine dewatering analysis conducted by Aquaterra has shown that there would be a strong zone of water drawdown around the pits and the underground workings that will extend many kilometres. This will result in a general groundwater gradient towards the pits. This gradient will occur in both the shallow and deeper aquifers as the mining depth increases. After cessation of mining, these water table levels are likely to partially recover. However, due to evaporative drawdown in the pits, the flow towards the pits is expected to be permanent. This permanent water table gradient towards the old pits will continue to draw any long term seepage that may occur from under the rehabilitated tailing storage facility area. Project No.: AAJV001 Page 19-65 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.6.6 WASTE ROCK DUMP DESIGN CRITERIA Based on the first phase geochemical testing program, it is apparent that sufficient PAF waste exists at Oyu Tolgoi to generate acid if indiscriminate placement within the dumps were to occur. Climatic conditions at Oyu Tolgoi are, in general, not conducive for significant water infiltration into the waste dumps due to low rainfall and high evaporation. Various alternatives for preventing the generation of acid, or its potential impacts, were assessed as part of the Scoping Study. The most appropriate solution for Oyu Tolgoi is to selectively schedule and manage waste to encapsulate PAF material as follows: - Likely PAF materials will be identified in mine planning and selectively placed in the upper lifts of the waste dumps. These PAF materials will then be covered with selected waste that will absorb and hold moisture during periods of precipitation. This absorbed moisture will then be released to the atmosphere via evaporation during dry periods. This solution for PAF management is termed "store and release cover" (i.e., water is absorbed and stored then released in the selected cover material without ingressing into the PAF material below). The finer grained colluvial mine waste is expected to be suitable for use as a "store and release" cover material. - The "store and release" cover material to be located in selected areas at the top of the waste dumps, will be covered by suitable mine waste to provide wind erosion protection. - The above solution will be further complemented by the management of surface run off in the relevant areas via surface water drains and run off water diversions. The following is envisaged as the management plan for PAF materials on a progressive basis during the development of the open pits. - Benches placed in the waste dump will have a width of 6 m at each lift after dozing. - A "store and release" material layer will be placed over the material to reduce infiltration. The thickness of this layer will be between 0.3 and 0.5 m depending on the availability of suitable material from the mine. - An erosion protective layer of approximately 1 m thickness will be placed over the "store and release" material to reduce wind erosion. Project No.: AAJV001 Page 19-66 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - The dump surface will have a minor gradient and diversion channels will be constructed around the dumps to collect runoff that is not held within the "store and release" layer. 19.6.7 REQUIREMENTS FOR FURTHER WORK GEOCHEMICAL TESTING OF TAILINGS Samples of the tailings generated during metallurgical pilot plant test work should be analysed to assess elemental enrichments in the tailings solids or their potential leachability. Testing will be required on any new tailings samples derived from different ore composites or if any changes to the proposed treatment and beneficiation system are made. In addition, kinetic testing of several tailings samples should be conducted, especially those that are classified as potentially acid forming. The kinetic testing will allow lag times, seepage water chemistry, sulphide and carbonate reaction rates to be established. GEOCHEMICAL TESTING OF WASTE ROCK Additional static testing of waste rock samples is recommended. These results will enable the development of workable cut-offs for establishing a greater range of ARD risk profiles and their associated spatial distribution within the deposit. This will be used to propose a more detailed mining plan for selective handling of the ARD risk material and of the "store and release" cover material. Leaching, or kinetic tests, are also recommended to obtain information regarding the lag times associated with acid generation, the metal leaching potential, and the buffering performance using different co-disposal combinations of waste material. It is suggested that this should occur following the completion of the additional Acid Base Accounting (ABA) test work. TAILING SEDIMENTATION TESTS Additional tailings samples should be obtained from process bench scale testing for each ore type and process route. Samples characteristic of the various settling properties need to be selected and tested for sedimentation to confirm thickener underflow densities that can reliably be achieved. Water returns from the tailing facility are very important to the water demands because they are the most significant Project No.: AAJV001 Page 19-67 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia variables in the water balance and minor changes in underflow thickener density significantly affect water balance calculations. REVIEW TAILINGS STORAGE FACILITY SITE OPTIONS Knight Piesold considered four sites for the Tailings Storage Facility. The selected site for the Scoping Study was based on the least environmental impact and construction on the existing licence area. However, the study has shown that this was the highest cost option and other sites could be significantly less expensive. This would require construction outside the current Oyu Tolgoi licence area and further environmental investigation. A decision on the preferred site location should be made before any feasibility study work on the Tailings Storage Facility is commenced. TAILINGS STORAGE FACILITY EMBANKMENT OPTIMISATION Further assessment is required of methods of minimising embankment construction costs by adjusting the ratio of tailings and waste rock used within the embankment. This will involve stability assessment of the embankment designs, as well as cost optimisation of the various materials. Re-assessing the cost components of the Tailings Storage Facility built into the mining costs is important. For example, the overhaul rate for waste to the Tailings Storage Facility is the major cost and the design should be based on an assessment of this cost. Also a methodology for embankment construction, including segregation of PAF and NAF, must be developed to suit the proposed mining equipment that will be used. REHABILITATION METHODS FOR TAILINGS STORAGE FACILITY AND WASTE DUMPS In the Scoping Study a detailed review of waste dump ARD containment methods was considered. This should apply to the TSF embankment if ARD materials are used within the embankment. The study showed that "store and release" covers would probably be the preferred method of ARD containment. Further evaluation is required. ULTRA THICKENED TAILINGS The Scoping Study has been based on conventional thickening of tailings before disposal. Ultra thickened tailings and dry stack tailings should be investigated further when suitable tailings samples are available from the metallurgical testing program. Use of either of these methods, if they prove to be practical, has the potential to reduce water consumption and the associated costs. Project No.: AAJV001 Page 19-68 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.7 SITE AND REGIONAL INFRASTRUCTURE 19.7.1 SITE DEVELOPMENT SITE LAYOUT Two conceptual site layouts were developed for the Scoping Study - one for the 20 Mt/a scenario (AAJV drawing 1362-G-180) and the other for the 40 Mt/a scenario with Hugo South in-pit crushing (AAJV drawing 1362-G-190). The layouts were influenced by a number of factors: - Locating the plant site as near as practicable to the open pit mines to minimize haul distance, yet remain outside the potential influence of open pit flyrock - Establishing the plant site over a location with limited overburden cover to minimize the foundation requirements, particularly under the large grinding mills - Placing the plant, ancillary buildings and accommodations up-wind (i.e. north to northwest) of the open pits, waste dumps, and tailings facility - Enabling overland conveying of ore from the Hugo North underground and Hugo South open pit mines - Placing all facilities within the Oyu Tolgoi licence area boundaries - Placing the waste dumps as near as practicable to the open pits to minimize haulage distances - Placing the tailings facility in an area that would require minimum impoundment construction - Minimizing the impact on the Umdai River, an ephemeral watercourse that crosses the western half of the site in a roughly north to south direction - Placing facilities at a safe distance from the predicted block cave subsidence zone The preliminary layouts reflect these criteria and were used as the basis for Scoping Study cost estimates. However, additional work must be done during the Feasibility Study to confirm the location of the facilities. This work includes condemnation drilling, geotechnical investigation, assessment of the potential to treat some ore using heap leach, solvent extraction - electro-winning technology, finalizing open pit quantities, and completing pit and waste dump designs. Alternate plant site locations have been identified and these will also be investigated during the Feasibility Study. As noted above the current layouts are based on all facilities being located on the Oyu Tolgoi licence area. The location of some of the facilities outside of the licence area, for example the airstrip and possibly the tailings storage facility, will also be investigated during the Feasibility Study. Project No.: AAJV001 Page 19-69 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia SITE PREPARATION AND ROADS The topography of the site, the surface geology, and the sparse vegetation cover should allow development of all site facilities with minimal site preparation. To prepare the areas under buildings and the plant site, the topsoil will be removed and stockpiled as required. Some levelling by cut and fill will be required. Where necessary, building pads and road surfacing will be prepared from either river gravels or by crushing suitable open pit waste. The main site roads will consist of the following: - Primary access road from the southern gatehouse to the plant, used for the transportation of concentrate, consumables, plant, and equipment and for access to the airstrip - Site road from the plant to the Accommodation Village and the Hugo North underground facilities - Site road between the plant, the explosives magazine and the tailings storage facility - Secondary access road to the northern gatehouse, used for surface transport to Dalanzagad, Khanbogd and Ulaanbaatar The primary access road will be asphalt surfaced. The road to the tailings dam and bore fields will be unsealed. The remaining roads will be bitumen spray sealed. 19.7.2 MINE SUPPORT INFRASTRUCTURE SITE BUILDINGS The administration and maintenance complex at the plant will consist of the following facilities: - Administration offices including operations and maintenance offices - Laboratory - Medical facilities - Warehouse and stores - Plant workshop and offices - Mine mobile equipment maintenance facilities including 6 vehicle repair bays, a lube and welding bay, a tyre fitting bay and a washdown bay - Change rooms and lockers - Underground mine maintenance facilities and offices for Cases 4a and 4b Project No.: AAJV001 Page 19-70 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Standby diesel generator for emergency power and lighting - Coal fired boiler for to provide primary heating - Standby diesel fired boiler for emergency heating The office and maintenance facility will be steel framed, metal sheet clad, and will be insulated for both noise and heat. A medical facility will be provided as part of the Administration Complex and will consist of a 6-bed ward for patients requiring 24-hour care, a small emergency treatment room to stabilise patients in preparation for transport off-site to a hospital, a first aid room to treat minor injuries, consulting rooms, and a room for occupational health testing. For Cases 4a and 4b, this facility would be identical to the one described above, except that the ward would provide for 10 beds, and additional nursing staff will be required. SECURITY The site will be fenced around the perimeter and manned security gate-houses will be constructed at southern and northern entry points. This precaution is not only for safety and security by controlling site entry and preventing animals from wandering onto the site, but will, in particular, protect native fauna. In addition to the perimeter fencing, the airstrip will also be fenced for safety and security purposes. Thirty security personnel will be required; two allocated per shift to each entry point, four allocated per shift to plant security, and two allocated per shift to Accommodation Village security. 19.7.3 SITE ACCOMMODATION FACILITIES For all cases considered, the construction camp will initially be used as the permanent accommodation village. Thereafter, either at the time of an expansion, or within 7 to 10 years of operation, a permanent Accommodation Village would be constructed. The permanent village was sized on the basis that only single persons quarters will be provided, with all operations personnel accommodated on site, and all rooms being permanently allocated. Project N.o: AAJV001 Page 19-71 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Senior staff will be allocated a single room including lounge and en-suite. All other staff will be allocated a single room with an en-suite shared between two rooms. The remaining operations and maintenance staff will be provided with barracks style accommodation with three beds to a room and separate shared ablution facilities. Once constructed, the permanent accommodation village will consist of the following: - Accommodation complex - Kitchen and associated food storage and preparation facilities - Laundry and associated room cleaning facilities - Local style and Western style mess - Wet mess - Indoor and outdoor recreational facilities - Village administration - Village maintenance workshop - Standby diesel generator for emergency power and lighting - Standby diesel fired boiler for emergency heating - Shop including post office and public phones The village was sized to accommodate the personnel outlined in Table 19.7-1. TABLE 19.7-1: SUMMARY OF SITE BASED PERSONNEL
CASE 2c CASE 4a CASE 4b SENIOR NON SENIOR NON SENIOR NON DEPARTMENT STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF ------------------------------------------------------------------------------------------------------ Administration 9 60 63 9 84 97 9 84 97 Open Pit 2 30 244 6 52 518 6 52 518 Underground 0 0 0 3 132 214 27 106 105 Process Plant 4 31 116 4 22 180 4 22 180 Power Station 0 0 0 0 0 0 0 0 0 Catering & Services 3 22 60 3 26 90 3 26 90 Government Services 4 0 0 5 0 0 5 0 0 TOTAL 22 143 483 30 316 1099 54 290 990
For Case 2c, the accommodation complex itself will consist of 10 separate accommodation buildings, all connected to a central mess and recreational area. For Case 4a or 4b, 10 additional accommodation buildings will be required. Project No.: AAJV001 Page 19-72 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Table 19.7-2, Table 19.7-3, and Table 19.7-4 summarise the accommodation requirements for Cases 2c, 4a and 4b respectively. TABLE 19.7-2: ACCOMMODATION REQUIREMENTS FOR CASE 2c
LOADING ACCOMMODATION CAPACITY ROOMS TOTAL NO. SPARE SEPARATE PERSONNEL & SENIORITY PERSONS REQUIRED ROOMS ROOMS BUILDINGS -------------------------------------------------------------------------------- YEAR 7 ONWARDS Senior Staff 22 22 36 14 2 Staff 143 143 144 1 3 Non Staff 483 161 180 19 5 (3 to a room) Total 648 326 360 34 10
TABLE 19.7-3: ACCOMMODATION REQUIREMENTS FOR CASE 4a
LOADING ACCOMMODATION CAPACITY ROOMS TOTAL NO. SPARE SEPARATE PERSONNEL & SENIORITY PERSONS REQUIRED ROOMS ROOMS BUILDINGS -------------------------------------------------------------------------------- YEAR 7 ONWARDS Senior Staff 30 30 36 6 2 Staff 316 316 336 20 7 Non Staff 1,099 366 396 30 11 Total 1,445 712 768 56 20
TABLE 19.7-4: ACCOMMODATION REQUIREMENTS FOR CASE 4b
LOADING ACCOMMODATION CAPACITY ROOMS TOTAL NO. SPARE SEPARATE PERSONNEL & SENIORITY PERSONS REQUIRED ROOMS ROOMS BUILDINGS -------------------------------------------------------------------------------- YEAR 7 ONWARDS Senior Staff 54 54 54 0 3 Staff 290 290 336 46 7 Non Staff 990 330 360 30 10 Total 1,334 674 750 76 20
Project No.: AAJV001 Page 19-73 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.7.4 SITE UTILITIES AND SERVICES INTRODUCTION Utilities and services required for the Project include potable water, sewerage treatment, power distribution, communications, diesel fuel storage and coal storage. These services and utilities are briefly described in the following sections. POTABLE WATER IMMI has analysed the water from the borefields. The results of this analysis indicate that the groundwater can generally be regarded as being of a high quality. A typical water analysis is shown in Table 19.7-5. TABLE 19.7-5: TYPICAL WATER ANALYSIS
CHEMISTRY RANGE UNITS ------------------------------------------------------------------ Na + K 178 213 mg/l Ca 24 54 mg/l Mg 17 56 mg/l HCO(3) 110 134 mg/l Cl 147 248 mg/l SO(4) 15 370 mg/l Fe+(3) 231 288 mg/l NO(3) 523 655 mg/l Dry Residual 546 873 mg/l pH 7.1 7.4 Hardness 3 5.8
Based on this analysis, the Water Treatment Plant will consist of an activated carbon filtration system (with automatic backwashing) to remove organics causing colour, taste and odour. Prior to storage and reticulation, the water will be sterilized with liquid chlorine. Additional analysis is required to confirm the design of this plant. Potable water will be pumped to an underground storage tank at the Accommodation Village and to a storage tank located in the Processing Building, which will provide potable water within the plant area and to the Administration Complex. Project No.: AAJV001 Page 19-74 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Drinking water will be provided in bottles at the airstrip facility, the change rooms and offices located at the underground facilities for Cases 4a and 4b, and at the security gatehouses. SEWERAGE TREATMENT The Sewerage Treatment Plant has been sized for a nominal 1,000 people for Case 2c, and 1,500 people for Cases 4a and 4b. The facilities will consist of screening and grit removal, biological reactor, chemical dosing systems inclusive of caustic and alum dosing, sludge dewatering and all associated control systems, instrumentation, piping and SCADA and telemetry system to facilitate remote operation. Local septic tanks will be provided at the airport facility, the change rooms and offices located at the underground facilities, and at the security gatehouses. Non-potable water will be trucked to underground storage tanks for use in ablutions and toilets at these locations. COMMUNICATIONS A communications network will be established utilising satellite technology and wireless communication for voice, fax, internet and PC network traffic. The communications and IT infrastructure will comprise satellite link, PABX, Ethernet LAN, IT servers, desktop computers, UPS system, copper and fibre cabling and site two-way radio system. The VSAT satellite equipment on site will comprise satellite antenna, transceiver, modem and bandwidth manager. Ethernet LAN points will be provided in all administration offices, mine office, stores and workshop. A "trunked" repeater system will provide the infrastructure to enable hand-held and mobile radio sets to communicate around the site. All the satellite equipment and communications racks will be protected by lightning protection and earthing systems. Project No.: AAJV001 Page 19-75 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia POWER DISTRIBUTION Power will be supplied to the site via a 220 kV transmission line from the Chinese electrical grid. This line will terminate at a high voltage sub-station, from which the power will be distributed around the site by an overhead network at various voltages. For Case 2c, the power distribution system will consist of: - A common 33 kV aerial transmission line to the Accommodation Village, construction camp area and Sewerage Plant - A 33kV aerial transmission line to the tailings facility - A dual feed 33kV aerial transmission line around the perimeters of the open pits, to provide security of supply, ease of maintenance, and ready access to power for the perimeter wells - Underground 33 kV cables feeding directly to the plant transformers, eliminating the need for an additional switchyard at the plant - Underground 33 kV cable feeding the primary crushing area - A dedicated 66 kV aerial to the borefields at Galbyn Gobi, and the pumping stations along the length of the overland pipeline - A 33kV aerial transmission line to the airstrip - No power will be provided to the Magazine For Case 4a expansion and Case 4b, the following additional power distribution will be provided: - A 33kV aerial transmission line to the Hugo North production shaft, ventilation shafts, and the associated office and change room facilities - A dual feed 33kV aerial transmission line around the perimeter of the Hugo South open pit - 33 kV transmission line for Case 4b in pit crushing facility and associated in pit conveying and waste stacking equipment - Underground 33 kV cables feeding directly to the new plant transformers - Underground 33 kV cable feeding the new primary crushing area - A 66kV aerial to the borefield at Gunii Hooloi and the pumping stations along the length of the overland pipeline Project No.: AAJV001 Page 19-76 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia DIESEL FUEL Diesel fuel will be stored in a bunded tank farm consisting of two tanks, each with a capacity of 1.5 million litres. This facility will be located near the mining equipment workshop. AAJV assumed that the supplier will provide the fuel storage and distribution facilities, and that the capital cost of these facilities is included in the diesel fuel price. COAL Coal will be required for the Project for the boilers used for heating the underground mine ventilation air and all other site infrastructure heating requirements. Stockpiling of the coal at site will require the use of anti-freeze chemicals during the winter months to ease the transportation, unloading and subsequent break up of the coal for use in the boilers for the heating system. The coal stockpile will be compacted to minimise the chance of spontaneous combustion during the summer months. 19.7.5 REGIONAL INFRASTRUCTURE INTRODUCTION Off site facilities will be required for the commencement of training for open pit operations approximately nine months prior to the commencement of preproduction stripping. Some administrative and government relations activities could be carried out off site. This would reduce the need for site accommodation requirements and associated fly in/fly out costs. Other functions may or may not need to be carried out by the operation depending upon further investigations that will be carried out during the Feasibility Study. These include provision of a bond store and off loading facilities at the railhead. These functions and facilities may be provided by others, under contract arrangements, to reduce initial project capital costs. Project No.: AAJV001 Page 19-77 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia REGIONAL OFFICES A regional office will be required in Ulaanbaatar (Mongolia) for personnel involved in the following activities: - Government relations - Travel co-ordination - Human resources - Translators A regional office will be required at Dalanzadgad (Mongolia) as it is envisaged that this will be the main location in the region for recruitment of semi-skilled and unskilled personnel as well as some professional personnel. This office will perform the following functions: - Provincial government relations - Recruiting - Transport logistics for employee travel - Workforce training and educational facilities. A regional Office at Baotou (China) will provide the following functions: - Concentrate Sales - Concentrate transport logistics - Operational consumable and spares logistics OPERATOR TRAINING FACILITIES The need to commence operator training nine months in advance of the commencement of open pit preproduction stripping will require the provision of training facilities. As it is envisaged that a considerable number of personnel will be recruited from Dalanzadgad and educational facilities exist there, the Scoping Study was based on initially utilising these facilities as well as providing accommodation for employees who come from other areas, until onsite training can commence. Existing educational facilities will be supported with the provision of suitable personnel to conduct the training sessions and with the provision of training materials. Project No.: AAJV001 Page 19-78 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.8 PROJECT WATER SUPPLY 19.8.1 INTRODUCTION The regional groundwater search for the Oyu Tolgoi project commenced in May 2003, although some preliminary scout drilling and geophysical surveys in the Gunii Hooloi area were undertaken in 2002. This regional search commenced with a review of all historical water investigation information produced from previous Russian and Mongolian government activities plus satellite imagery with a focus on potential water resources that may exist within a 200 km radius of the Oyu Tolgoi site. Figure 19.8-1 shows the potential borefield areas that have been identified within 100 km and 200 km radii of the Oyu Tolgoi site. These preliminary investigations focused attention on the Galbyn Gobi and Gunii Hooloi areas, both deep sedimentary groundwater systems located within a 70 km radius of Oyu Tolgoi. Following further drilling of exploration bores and geophysical TEM surveys a preliminary estimate of potential water resources available from these two areas was developed in mid 2003 as shown in Table 19.8-1. TABLE 19.8-1: AQUIFER SUPPLY POTENTIAL
AQUIFER AREA ESTIMATED STORAGE POSSIBLE PUMPING RATE AQUIFER (KM(2)) (X 10(6) KL) (M(3)/HR) ------------------------------------------------------------------------------------------------ Galbyn Gobi 1,800 540 2,800 Gunii Hooloi 270 121 630
This water resource estimate was based on the commandable groundwater storage in the upper 30 m of the aquifer systems. The results of these preliminary water resource estimates has provided sufficient confidence to progress with the installation of test bores in these areas to enable definitive pump tests to be undertaken. This work is currently in progress and, when completed, should enable detailed models of these groundwater systems to be developed. Project No.: AAJV001 Page 19-79 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.8-1: POTENTIAL GROUNDWATER RESOURCES [POTENTIAL GROUNDWATER RESOURCES MAP] 19.8.2 BOREFIELD WATER DEMANDS A comprehensive water balance model was developed for the Oyu Tolgoi project incorporating all mining, process plant and site infrastructure demands, and water recovery from the tailings storage facility and mine dewatering acitivities. Table 19.8-2 summarises the estimated borefield water demands for the cases considered in the Scoping Study. TABLE 19.8-2: WATER DEMAND
WATER DEMAND (M (3)/H) CASE 2C CASE 4A CASE 4B ------------------------------------------------------------------------------- Peak 1,474 2,828 2,831 Average 1,089 1,998 2,097
Project No.: AAJV001 Page 19-80 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The peak water demand prediction is based on the assumptions that buffer water storage will be provided at the site for initial plant start-up and first fill demands. 19.8.3 BOREFIELD DEVELOPMENT To enhance security of supply, the project water supply will be ultimately drawn from two borefields. However, to minimise initial capital costs only the Galbyn Gobi borefield will be developed for the Case 2c option and for the initial development of Case 4a. For Case 4a expansion and initially for Case 4b, the Gunii Hooloi borefield will also be developed. The proposed borefield supply capacities are summarised in Table 19.8-3. TABLE 19.8-3: BOREFIELD PUMPING CAPACITY
BOREFIELD FLOW RATE (M(3)/H) CASE 2C CASE 4A & 4B ---------------------------------------------------------------------- Galbyn Gobi Sediments 1,476 1,476 Gunii Hooloi 0 1,388 TOTAL 1,476 2,864 PEAK DEMAND 1,474 2,831
19.8.4 GALBYN GOBI BOREFIELD The Galbyn Gobi borefield is located approximately 65 km southeast of Oyu Tolgoi. The borefield will be approximately 80 km long and 4 km wide and will consist of 30 operating bores on two parallel centre lines approximately 4 km apart with bores located at 4 km centres along each centreline. Intermediate transfer tanks positioned throughout the borefield will receive water from groups of approximately 6 bores. From these tanks, water will be pumped through steel pipe to a primary transfer tank that will have a capacity of 6,000 m(3). Water will be pumped from Galbyn Gobi primary transfer tank to the plant by three equally spaced pumping stations each consisting of a transfer tank and a single multi-stage pump. The overland pipeline will be 600 mm NB steel pipe that will discharge into the raw water pond at the plant. The capacity of this pond will be 26,000 m(3), providing a minimum 24 hour period in which to carry out major maintenance on the water supply facilities. All pipe work and tanks will be buried to prevent freezing during the winter months. Project No.: AAJV001 Page 19-81 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia While standby pumps have not been provided at the pumping stations, as all three pumps are the same, an allowance has been made for a common spare to be held at the warehouse. A 66 kV overhead transmission line will provide power to the pumping stations and the bores. The capital cost for the overhead transmission lines includes an allowance for the cost of fibre optics for the control and monitoring of all pumps. GUNII HOOLOI BOREFIELD The Gunii Hooloi borefield is located approximately 35 km northeast of Oyu Tolgoi. The borefield will be approximately 88 km long and 4 km wide with 38 bores arranged on a 4 km by 4 km grid along two centrelines approximately 4 km apart. The overland pumping arrangements will be similar to that described for the Galbyn Gobi borefield. The site water storage pond capacity for Case 4a and Case 4b will be 51,000 m(3) giving a 24 hour period to carry out major maintenance on the water supply facilities. 19.8.5 ENVIRONMENTAL CONSTRAINTS The annual water recharge rates to groundwater aquifers in the Gobi region of Mongolia are very small, hence the use of the aquifers will draw down the water table levels over the life of the mine. Discussions are in progress with the Mongolian Ministry of Nature and Environment (MNE) to determine what level of water table drawdown is environmentally acceptable. Development of a water resource model is currently in progress to assist in quantifying the likely effects on existing wells, springs and vegetation. 19.8.6 INTERIM CONSTRUCTION CAMP AND CONSTRUCTION WATER SUPPLY In order to provide water for the construction period of the project it will be necessary to develop a number of temporary production bores as close as practical to the Oyu Tolgoi site area. A borefield to service these demands is still in the investigation stage of development. Project No.: AAJV001 Page 19-82 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.8.7 POWER SUPPLY AND PIPELINE CONCEPTS In May 2003 a preliminary options study for project water supply considered four possible borefields that had been identified at that time. The distance of these borefields from Oyu Tolgoi ranged from 35 km to 160 km. This option study included capital cost comparisons for HDPE (plastic) pipe versus steel piping supplied from China, and power reticulated from the plant via overhead powerlines versus power generated locally at the borefield area by diesel generators. The current borefield design is based on the conclusions of these costing comparisons and uses buried steel pipe for overland pipelines and power reticulated from the Oyu Tolgoi site. These assumptions and conclusions should be re-validated during the Feasibility Study. 19.8.8 ONGOING WATER SUPPLY ACTIVITIES The following activities are ongoing for Feasibility Study definition of the borefield water supply concepts: - Drilling of further water exploration holes in the eastern extensions of both borefield areas. - Installation and test pumping of fully developed test bores in both borefields to determine maximum allowable pumping rates and water table drawdown parameters. - Development of water resource models for each borefield area to allow estimates of regional impacts on water table drawdown to be assessed. - Finalisation of environmental constraints and evaluation of the effects of such constraints on final borefield design. Project No.: AAJV001 Page 19-83 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.9 ELECTRICAL POWER AND HEATING 19.9.1 INTRODUCTION The proposed project development cases include large underground and open pit mining operations and a large concentrator that collectively have a major electrical power demand. The equipment items with the largest single demands are the SAG mills (21 MW each), ball mills (15.5 MW each), shaft winders (3.5 MW each) and electric shovels (approximately 4 MW each). The starting demands of such large drives impose special requirements on any proposed electrical supply system. In addition to the major electrical demands, the project has a major heating demand during the winter months of the year. This is especially so for Case 4a and Case 4b which require heating of underground ventilation air. For these cases, the peak heating demand of approximately 43 MW occurs in the month of January. At least two substantial coalfields lie within 150 km of Oyu Tolgoi, providing a potential inexpensive source of energy for power generation and heating. During the Scoping Study, AAJV completed a preliminary evaluation of a dedicated, project-owned, coal-fired power station plus the option of supply by others from an existing major power grid. 19.9.2 PROJECT-OWNED COAL-FIRED POWER STATION In mid 2003, Sinclair Knight Mertz (SKM) was commissioned to undertake a preliminary study of options for a project-owned, coal-fired power station. Preliminary technical and economic comparisons were also undertaken to determine whether such a station should be located at the Oyu Tolgoi site or at the location of the coal mine, assumed to be located 120 km from Oyu Tolgoi. The key technical outcomes of this study were: - Soft start features will be required for all major electrical drives such as VSD cycloconverters for mill drives, ramp starting control for winders and VVVF for major ventilation drives. - Some form of motor generator sets are likely to be required on the power supply to the electric shovels to buffer the primary power grid from the impacts of the large random fluctuating loads that arise with shovel operations. Project No.: AAJV001 Page 19-84 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - The power station boilers will need a steam bypass duct with superheater to enable acceptable turbine response times for the major electrical starting loads of large drives such as the mills. This study indicated that for both economic and technical reasons the power station should be located at the Oyu Tolgoi site. This location also reduced the risk considerations of a long overhead powerline such as vulnerability of conductors and insulators to the effects of seasonal dust storms, winter freezing conditions and lightning. This would also eliminate the need for duplication of support infrastructure facilities and large capacity emergency diesel gensets at Oyu Tolgoi. The key economic outcomes of the study indicated the likely capital cost of a coal fired power station at Oyu Tolgoi will be in the order of $800,000 /MW. Unit operating costs are estimated to be in the order of $0.014 /kWh excluding capital or $0.041 /kWh if capital cost is amortised at a discount rate of 10% over 15 years. These preliminary operating cost estimates are based on a coal price of $5.00 /t landed at the mine and transport cost from mine to Oyu Tolgoi site of $7.50 /t. An additional benefit of locating the power station at Oyu Tolgoi would be the utilisation of waste heat to service some of the seasonal heating load requirements. 19.9.3 SUPPLY OF POWER BY OTHERS FROM AN EXISTING MAJOR POWER GRID There is currently no electrical infrastructure within the southern region of Mongolia that can support the scale of power demand of the Oyu Tolgoi project. The northern region of China approximately 300 km to the south of the Oyu Tolgoi project is supported by a significant power grid. Based on preliminary discussions with relevant Chinese authorities, IMMI understands that they desire to provide power to the project by a northern extension of the existing Chinese grid to Oyu Tolgoi. Preliminary pricing discussions between IMMI and the Chinese power authorities have indicated a pricing in the order of $0.025 /kWh for power supplied at the Oyu Tolgoi site. These discussions are at a preliminary stage and any such cross border supply will ultimately require international agreements between the governments of China and Mongolia. The power costs for the Scoping Study have been based on power supply from China. Project No.: AAJV001 Page 19-85 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.9.4 POWER DEMAND Table 19.9-1 summarises the estimated power demand for the cases addressed in the Scoping Study. TABLE 19.9-1: POWER DEMAND (KW)
CASE 2C CASE 4A CASE 4B INSTALLED CONSUMED INSTALLED CONSUMED INSTALLED CONSUMED -------------------------------------------------------------------------------------------------------------------- PROCESSING PLANT Crushing, Stockpile & Reclaim 4,360 3,060 7,900 5,530 7,900 5,530 Grinding 56,700 47,200 113,030 97,530 113,030 97,530 Regrind 7,950 6,760 15,900 14,280 15,900 14,280 Flotation 5,330 4,530 11,940 10,190 11,940 10,190 Other process 1,170 820 2,340 1,580 2,340 1,580 Services & reagents 7,760 3,930 12,430 5,570 12,430 5,570 Tailings 9,640 5,810 15,730 9,350 15,730 9,350 TOTAL-PLANT 92,910 72,110 179,270 144,030 179,270 744,030 UNDERGROUND MINING Winders 3,500 2,800 3,500 2,800 Ventilation 2,270 1,324 2,270 1,324 Shaft dewatering 353 206 353 206 Crushers & conveyors 185 148 185 148 Mobile equipment & workshop 2,025 1,182 2,025 1,182 SUB-TOTAL 8,333 5,660 8,333 5,660 OPEN PIT Drills 5,000 4,000 12,000 9,600 12,000 9,600 Shovels 7,200 5,760 21,600 17,280 21,600 17,280 Pit dewatering 1,625 1,300 1,625 1,300 1,625 1,300 In pit crushing and waste disposal 26,250 20,525 SUB-TOTAL 13,825 11,060 35,225 28,180 61,475 48,705 TOTAL - MINING 13,825 11,060 43,558 33,840 69,808 54,364 WATER SUPPLY Bores 1,350 1,080 3,510 2,808 3,510 2,808 Pumping stations 3,750 7,800 10,950 8,760 10,950 8,760 TOTAL - PUMPING 5,100 8,880 14,460 11,568 14,460 11,568 Accommodation & offices 3,165 2,532 3,264 2,611 3,264 2,611 TOTAL SITE 115,000 94,582 240,552 192,049 266,802 212,573
Project No.: AAJV001 Page 19-86 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.9.5 SYSTEM DESCRIPTION Power will be delivered to site via overhead power line from the existing Chinese grid to a high voltage switchyard/substation adjacent to the process plant. This facility will include all necessary transformers, control equipment, metering equipment circuit breakers, high voltage switchboards and power conditioning equipment. It wilt be configured to enable segregation for maintenance, as required to meet the availability requirements of the overall plant. To control the effects of fluctuating loads on the system, VSD cyclone converter drives will be required on the main SAG and ball mills and soft start type VSD's for mine winders, ventilation fans and similar large drives. Electric mining shovels can create an instantaneous demand of up to 4 MW on a random basis. Consequently, motor-generator sets or suitable alternatives will be required to be installed between the shovels and the main electrical system so that the main system is isolated from sudden demand changes. Additionally, operational procedures and/or control restraints will be implemented to ensure that large process plant equipment loads, such as the mills, are not brought on line simultaneously. The requirements for such measures will be further investigated following ongoing investigations into the suitability and reliability of the existing Chinese power supply system for the Project. 19.9.6 HEATING INTRODUCTION The largest consumer of energy, excluding electric energy for equipment drives, is for heating, particularly the need to heat the underground mine ventilation air during winter. Other facilities requiring heating are the administration complex, maintenance facilities and village accommodation facilities. Waste heat from equipment drives and the comminution process is sufficient to heat the concentrator buildings while the plant is in operation. When the plant is not operating, for example during maintenance periods, portable electric heaters will be used. Project No.: AAJV001 Page 19-87 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia HEATING DEMAND Table 19.9-2 outlines the monthly temperatures and the demand for heating for each period for the underground mine only. This demand is based on an airflow rate of 436 m(3)/s and heating the air from ambient to 1 degrees C. TABLE 19.9-2: UNDERGROUND MINE AIR HEATING DEMAND
MONTHLY AVERAGE MONTHLY AVERAGE MAXIMUM AVE. TEMP HEATING ENERGY MIN. TEMP DEGREES C GWH DEGREES C LOAD MW ----------------------------------------------------------------------------------------------- January -11.7 5.6 -31.5 20.7 February -7.4 3.3 -27.2 17.6 March -0.6 0.7 -25.2 16.3 April 8.7 0 -18.0 11.5 May 16.7 0 -7.5 4.9 June 22.2 0 2 0 July 24.7 0 2.8 0 August 22.3 0 7.7 0 September 16.3 0 -3.2 2.4 October 7.8 0 -11.7 7.5 November -2.3 1.4 -24.8 16.0 December -9.0 4.3 -28.6 18.6 TOTAL 15.2
The peak demand was based on the heating requirements during January when the monthly minimum temperature is -31.5 degrees C. During this month the average maximum load is 20.7 MW. Table 19.9-3 summarises the estimated heating demand for the site for each case. TABLE 19.9-3: HEATING DEMAND
CASE 2C CASE 4A CASES 4B TOTAL TOTAL TOTAL HEATING DEMAND PEAK (MW) (GWH) PEAK (MW) (GWH) PEAK (MW) (GWH) ------------------------------------------------------------------------------------------------------- MINING VENTILATION Hugo South 0 0 0 0 Hugo North 0 0 20.7 15.2 20.7 15.2 Sub -Total 0 0 20.7 15.2 20.7 15.2 ALL BUILDINGS 6.6 5.8 21.9 19.2 20.4 17.9 TOTAL HEATING 6.6 5.8 42.6 34.4 41.1 31.1
Project No.: AAJV001 Page 19-88 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia The peak load and total demand for Cases 4a and 4b are essentially the same, and for the purposes of the Scoping Study, they have both been assumed to be 43 MW and 35 GWh. SYSTEM DESCRIPTION The heating concept will be based on a closed circuit hot water system for the cases options that include underground mining (i.e. Cases 4a and 4b). Three coal-fired boilers will be provided to produce the hot water. For Case 2c, which excludes underground mining, the heating load is relatively minor. For this case, heating will be provided by small electric immersion boilers located at both the accommodation village and the administration complex. For Cases 4a and 4b the heating facility will consist of the following field heat exchangers and the associated insulated hot water reticulation piping: - One "water-to-air" heat exchanger at the Hugo North ventilation shaft. - One "water-to-water" heat exchanger at the processing plant building. - One "water-to-water" heat exchanger at the administration complex. - Two "water-to-water" heat exchangers at the accommodation complex. The heat exchanger at the ventilation shaft will be fed from a 450 mm diameter, 1,800 m long header. The return pipe will be the same diameter and length. Both pipes will be run in pipe racks above ground, will include expansion loops, and will be clad and insulated with fibreglass. Cold mine ventilation air will be drawn through the heat exchanger elements by an induced draft fan. The two heat exchangers in the plant area administration and processing will be fed from a common header 100 mm diameter and 500 m long. The return pipe will be the same diameter and length. As before, both pipes will be run in pipe racks above ground, will include expansion loops, and will be clad and insulated with fibreglass. Glycol will be pumped through the local buildings side of the heat exchangers and will be circulated through a series of radiators within the facilities. The two heat exchangers in the accommodation complex will be fed from a common header 220 mm diameter and 500 m long. Again, the return pipe will be the same diameter and length. Both pipes will also be run in pipe racks above ground, will include expansion loops, and will be clad and insulated with fibreglass. As in the administration complex, glycol will be pumped through the local buildings side of the Project No.: AAJV001 Page 19-89 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia heat exchangers and will be circulated through the radiators located in the rooms and around the facilities. An emergency diesel-fired boiler will be installed at both the accommodation complex and at the administration complex. Both boilers will be connected to the internal glycol reticulation system associated with each facility. Project No.: AAJV001 Page 19-90 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.10 TRANSPORTATION INFRASTRUCTURE 19.10.1 INTRODUCTION Oyu Tolgoi is located 80 km from the Chinese border and, by the most direct route, within 300 km of the existing Chinese railway system. The Trans-Mongolian Railway is located approximately 350 km to the east. Transportation infrastructure associated with the Project includes the provision of an airstrip at the site, main access road to the site, transportation of concentrate and transportation of general freight required for support and maintenance of the plant, mining and support facilities. The Scoping Study was based on the assumption that the main links for the transport of concentrates and shipment of consumables and supplies will be with China. 19.10.2 AIRSTRIP Two gravel runways, each 1,600 m long and 30 m wide, will be built up by shadow fill to provide a crown to facilitate drainage. The prevailing winds at the site are from the north; consequently the North-South runway will be the main runway. The location of the North-South runway will permit future upgrading to a concrete surface as approach paths meet aviation requirements for instrument landings. Ancillary buildings and equipment provided at the airstrip include a small equipment room, a fuel trailer, fire fighting trailer, radio and weather station. An airport terminal building will not be provided, as the airstrip will only be used by the Oyu Tolgoi project. Reception and departure will be managed from the mine administration area. 19.10.3 ACCESS ROAD Based on the shortest distance to existing rail infrastructure the road route south from Oyu Tolgoi to Gushaan Suhait at the Mongolian-Chinese border and then through to the Chinese rail network at Wuyuan was selected as the basis for the Scoping Study. The length of this road route is approximately 80 km within Mongolia and 230 km within China. An existing road of varying standards currently exists from Wuyuan to the Mongolian-Chinese border. This will need to be upgraded to two lane highway standard to be suitable for road trains. Project No.: AAJV001 Page 19-91 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Based on advice received from IMMI, the capital cost of this road from Wuyuan to Oyu Tolgoi will be funded by the Chinese government and therefore this cost has not been included in the capital or operating cost estimate for the project. AAJV completed a brief evaluation to compare the cost of rail transport to road transport. This preliminary investigation indicated that for a project of approximately 30 Mt/a capacity, the payback period on the extra cost of rail versus road would be approximately two years. If the 40 Mt/a case is to be progressed for the Feasibility Study, further evaluation should be undertaken of the economic benefits of a rail link. 19.10.4 CONCENTRATE HANDLING The facilities that will be provided at the process plant will consist of a weighbridge for control of concentrate being collected by the smelter operator. After completing formalities at the processing plant weighbridge, the transportation of concentrate either to the railhead or directly to the smelter will be by the smelter operator. The costs associated with concentrate haulage have been included in the economic model. These costs are based on haulage costs in remote locations of Australia that have been reviewed and modified to suit haulage for the project by adjusting labour rates and fuel costs. General Freight Table 19.10-1 summarises the average annual freight requirements, excluding concentrate. All consumables and general freight will be transported 300 km from a marshalling yard at the railhead in Wuyuan. TABLE 19.10-1: GENERAL ROAD FREIGHT
TONNES/YEAR 20.0 MTPA 40.0 MTPA ----------------------------------------------------------------------------- Coal 0 3,950 Diesel fuel 22,.800 45,700 Explosives 14,800 26,300 Process reagents 32,000 59,400 Grinding media 24,000 49,200 Liners and spares 2,300 4,500 Miscellaneous 6,800 9,100 TOTAL 10,270 194,200 Total Excluding Coal 10,270 190250
Project No.: AAJV001 Page 19-92 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.11 PROJECT EXECUTION 19.11.1 INTRODUCTION Although Oyu Tolgoi will be a large, greenfields project, with the attendant challenges that such a project will incur, there are a number of advantages that offset the property's location in the south Gobi Desert: - The site is 300 km from a major Chinese transportation corridor and a highway exists from this corridor to the Chinese-Mongolian border (80 km south of the site). - There is significant fabrication and supply capability at Bautou, a city of 2.6 million people located 500 km from the site in the Inner Mongolia region of China. - Based on preliminary discussions with Chinese electrical power suppliers, IMMI understands that there is sufficient power available for the project in northern China and that that power can be purchased at competitive rates. - IMMI has already effectively captured the site to service the large exploration program. - The climate extremes are not as severe as Western Australia or Arctic North America, where other projects of similar scale have been successfully constructed. - The Southwest and Central deposits are relatively near surface, which will facilitate an early start to the project. With these advantages available, IMMI is advocating a rapid project evaluation and execution schedule. Where possible, a number of implementation activities will be conducted in parallel to the feasibility study to hasten project completion. The implementation schedule is included in Appendix D. 19.11.2 FEASIBILITY STUDY The current study plan is based on assessing the Southwest/South/Central open pit options at a feasibility level and the Hugo South and Hugo North operations at a prefeasibility level. Although feasibility study engineering will commence in Quarter 1 - 2004, data collection to support this study began in 2003 or will commence in early 2004. This includes: - Infill drilling and resource estimation. - Condemnation drilling. Project No.: AAJV001 Page 19-93 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia - Metallurgical testwork. - Underground and open pit geotechnical investigation. - Mine dewatering investigation. - Surface geotechnical investigation. - Water supply investigation. The current infill drilling program is focused on converting the resource in South, Southwest and Central into the Indicated and Measured categories. Additional infill drilling is also planned for Hugo South, but would be insufficient to support a reserve estimate by year-end 2004. Exploration and limited infill drilling will also continue at Hugo North, but will be inadequate to convert the resource to a reserve until underground headings are available and drilling from these vantage points has been completed. The underground exploration program will commence in the Quarter 2 - 2004 with the mobilization of a shaft-sinking contractor. The planned underground exploration activities include drilling and geotechnical data collection from a number of headings that will crosscut the deposit. The primary goal of the metallurgical testwork program, which is being moved to Perth, will be to provide adequate data to support a feasibility level assessment of the Southwest, South and Central deposits. In addition, work will be directed to advance the state of knowledge on the Hugo Dummett deposit. This testwork program will continue through 2004. The data capture from this program is essential for vendor supply information and design and must be carefully managed. This scale of the testwork program is very large and includes pilot plant runs to confirm the SAG mill and flotation design parameters. Large volumes of sample are required for the pilot plant runs and the samples for the SAG mill pilot tests will consist of large diameter core. This sampling program must be carefully managed and coordinated with the infill drilling program. Concurrent with the data collection programmes, a number of studies will be conducted to confirm assumptions made during the Scoping Study. These include: - A team has commenced an assessment of the power grids in northern China and Mongolia to determine the available power capacity, the quality of that power, and the ability of either grid to accept the types of loads that Oyu Tolgoi will impose. - A two stage analysis of the Chinese smelter market will be conducted during the Feasibility Study. The first phase, which will include contacting smelters and marketers to determine capacity and general terms, will commence early in 2004. Project No.: AAJV001 Page 19-94 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia During the second phase, frame agreements with several smelters will be concluded, thus serving as a firm basis for the project's revenue estimates. - A study will be carried out to assess the viability of building a smelter to treat the Oyu Toigoi concentrates. This is required to provide the benchmark for custom smelting alternatives and to provide a treatment option for those concentrates that may incur higher charges for penalty elements. - A detailed logistics study will be conducted to determine the optimum means of transporting equipment through China and importing Chinese supplies into Mongolia. The study will also include recommendations and procedures for customs clearances, border crossings, and in-bond transport through China. - An assessment of fuel supply alternatives, including Russia, China, and offshore sources, is required. In addition to costs, this study will also determine the logistics for this fuel supply and the associated import requirements. - In conjunction with the marketing and logistics studies, an assessment of the concentrate handling system is required. - Further assessment is required to confirm the Chinese price discount that was identified during the Scoping Study. This work will include establishing a China-based taskforce to make further contact with Chinese suppliers and contractors and soliciting firm pricing. Several areas were identified during the Scoping Study where opportunities exist to optimise the design. Those trade-off studies that will be completed during the next phase of work include: - A study will be conducted to determine the viability of paste tailings disposal. This technology was identified as a means of reducing water consumption and thus likely improving the project economics. - Several opportunities have been identified for improving the open pit costs, including trolley-assist and in-pit crushing. - A detailed assessment of Hugo South will be completed to determine the preferred mining alternative - open pit or underground - and if the latter, the preferred underground mining method. - For Hugo North, confirmation of the choice of block caving is required, along with further assessment of the optimum locations for the extraction level and underground infrastructure. In addition, the choice and location of the materials handling system -shaft hoisting or conveying - must be finalized. Project No.: AAJV001 Page 19-95 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia - Several areas within the plant require further assessment. These include configuration of the comminution circuit and related throughput rate, the opportunity to use high pressure grinding rolls, flotation equipment alternatives, and an assessment of blending versus campaigning plant feed types. Concurrently with the study, IMMI will conclude several key sets of negotiations. The first of these will be with the Mongolian Government to secure the Stability Agreement, thus establishing the fiscal framework for the project. Another agreement that will be required will be with the power utility in Inner Mongolia for both supply and pricing of power. An agreement must be reached with governments of Mongolia and China to finalise the access road construction and associated costs, and to confirm tariffs and availability on the Chinese rail system. Finally, discussions must be held with both governments regarding the project energy requirements. The Feasibility Study itself will be conducted in two phases. The Preliminary Feasibility Study will commence during Quarter 1 - 2004. The initial component of this work will be to complete the data collection and definition studies noted above. In order to finalize this phase by Quarter 1 - 2005, the engineering work will be based on initial results from the infill and metallurgical programs. This work will enable IMMI to commence negotiations with financial institutions and to procure long delivery items while the infill and metallurgical programs are being completed. The Definitive Feasibility Study will commence early in 2005 and be complete by Quarter 3 - 2005, using all of the infill drilling and metallurgical testwork data and the results of the equipment pricing. This phase will essentially consist of basic engineering, with firm equipment pricing and detailed engineering on several infrastructure components. It will also incorporate the initial comments from the financial institutes, including the independent engineer, which should hasten the project financing. A Chinese Design Institute partner will be selected during the Preliminary Feasibility Study phase, and their input will be sought for specifications and design standards. 19.11.3 ENGINEERING A key element of the project implementation phase will be the transfer of the engineering, after completion of basic engineering, from Perth to China. To accomplish this, a Western engineering / procurement / construction management (EPCM) contractor will be selected early in 2005, and this contractor will complete the basic engineering and definitive study. The Western EPCM firm will also direct and support the Chinese Design Institute, who will complete the detailed design. Project No.: AAJV001 Page 19-96 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia A critical deliverable from the basic engineering phase will be the selection of the major equipment, particularly the long delivery items such as the grinding mills and mining shovels. As these selections will probably pre-date final project financing, they will have to be purchased with back-out clauses. The Chinese Design Institute is crucial to fully capturing the China Factor by ensuring that the design conforms to conventional Chinese materials and construction practices. However, the design must also incorporate Western practice with respect to equipment selection, quality control, instrumentation and operating conditions to ensure that the full savings from these aspects are also realised. This latter function will be an important role of the Western EPCM firm. 19.11.4 CONSTRUCTION In addition to the logistics challenges at Oyu Tolgoi, the construction planners will have to be cognizant of the climatic constraints, the need to provide power to the site at the earliest possible date, and the large preproduction stripping requirements of the open pits. The construction crews will start preparing the site for construction in Quarter 3 -2005, slightly prior to project financing. The existing facilities can house at least 300 people on site, and much of this capacity will be required for the initial construction activities. These include erecting the first phase of the construction camp and establishing water, sewerage and electrical services to support the initial work. Outside work at the site is then scheduled to cease between the end of November and the end of March. In addition to the work at site, construction of the access road, power line, and water supply will commence. These activities are critical to support construction and mine preproduction stripping. Work will re-commence at site in the spring of 2006 with preparation of the sites for the major project facilities. Concrete pouring will commence soon after and the plant building erection will follow on as soon as possible. A key project driver will be to have the building erected and clad prior to the full onset of winter to allow equipment installation to continue uninterrupted. Major plant equipment will begin to arrive during Quarter 3 - 2006 and installation will commence. This activity will continue through the winter into Quarter 3 - 2007. Wet commissioning will follow, and plant start up is anticipated at the end of Quarter 3 -2007. Project No.: AAJV001 Page 19-97 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia In parallel to the plant construction, mining equipment will start to arrive at site during Quarter 2 - 2006. Preproduction stripping will require 18 months, as the equipment is erected and commissioned. 19.11.5 CASES 4A AND 4B The plan outlined in this section would implement Case 2c, which is based on an open pit at Southwest, South and Central. Most of the resource at Southwest is Indicated category, while drilling programs are underway to convert the remaining resource at Southwest, Central and South to Measured and Indicated status. The metallurgical testwork program is also focussed on these deposits. Therefore, there will be data sufficient to support a Feasibility Study on these deposits according to the described schedule. The Hugo Dummett deposit forms an integral component of Cases 4a and 4b. In Case 4a, mining at Hugo Dummett would be delayed until after the expansion of plant in Year 5. The Feasibility Study that would justify this expansion would be completed in Year 2, by which time the Hugo Dummett deposit will have been converted to Indicated and Measured status and the required metallurgical testwork completed. The Feasibility Study for the initial construction would also include a Prefeasibility Study for the Hugo Dummett deposit. However, in Case 4b the justification for the larger plant will require feed from Hugo North and South and stripping of the Hugo South open pit will commence in Year - 1. To complete a Feasibility Study for Case 4b will therefore require the Hugo Dummett deposit to be converted to Indicated status and the requisite metallurgical testwork completed. This will add significant exploration and metallurgical testing to 2004 and 2005, or alternately two years to the preproduction period. 19.11.6 UNCERTAINTIES There are a number of uncertainties with the implementation plan described in this Section that could affect the overall timing of the project. These uncertainties will be the focus of some attention during the Feasibility Study. A key issue in the schedule is the timing associated with the project financing. The plan provides IMMI with the ability to commence negotiations to secure project financing prior to completion of the Definitive Feasibility Study. Although the concept is reasonable, AAJV recommends that IMMI contact financing institutions to determine Project No.: AAJV001 Page 19-98 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia the acceptability of this approach. On the other hand, alternate financing arrangements may be available in China that may reduce the timetable. The schedule is also based on completing significant amounts of engineering and construction, and procuring equipment prior to completing the project financing arrangements. This will require innovative approaches to funding this work and may impact on the pricing arrangements that IMMI can obtain for these goods and services. The schedule is seasonally dependent, and delays of as little as a month in critical activities may mean the overall project duration could be lengthened as much as six months or, to maintain schedule, additional costs would be incurred for winter construction. The plan is heavily dependent on power availability. The large open pits dictate a high preproduction stripping requirement and to reduce costs electric shovels were selected. Including diesel-driven shovels in the fleet could mitigate the schedule implications, but this would come with a cost and, possibly, productivity impact. The Chinese design institutes have not worked on a project of this magnitude and much of the equipment and practice is outside their experience. It will be important that both IMMI and the EPCM contractor maintain strict quality and schedule control over the selected institute to ensure the overall project schedule is achieved. Similar uncertainty exists with the capabilities of Chinese contractors. While AAJV is confident of their ability to construct the project, the Western technology and compressed schedule will likely be a challenge that will require significant support from the Western EPCM contractor and perhaps other specialist contractors. 19.11.7 ALTERNATE APPROACHES The implementation schedule presented above is based on the premise that finance for the project will be dependent on the completion of a Definitive Feasibility Study. It also assumes that little or no work will be done at site during the colder months. If these constraints are removed the project could be brought on line much more quickly. Currently available information suggests that the long lead equipment for the project will be the grinding mills and some of the mining equipment. The scale of the Oyu Tolgoi Project is such that the mills and mining equipment could be determined in advance of completing the metallurgical testwork and the Feasibility Study. For example, the project is being designed around using the largest grinding mills currently in use. Thus the procurement of the mills is not constrained by awaiting the outcome Project No.: AAJV001 Page 19-99 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia of metallurgical testwork - they could be ordered in the first half of 2004. Critical construction work, such as power and water supply would have to be brought forward to the same extent. This strategy would allow plant start up to occur in 2006, with 2007 being a full year of production. Project No.: AAJV001 Page 19-100 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.12 CAPITAL COST ESTIMATE 19.12.1 CAPITAL COST SUMMARY The initial capital cost is summarized in Table 19.12-1 and the total life of mine capital is summarized in Table 19.12-3. The sustaining capital for Years 1 through 4 is shown in Table 19.12-2. These costs include the expansion capital for Case 4a and the installation of the in-pit crushing system in Case 4b. TABLE 19.12-1: INITIAL CAPITAL COST SUMMARY (US$ MILLION)
CASE 2C CASE 4A CASE 4B ------------------------------------------------------------------------------------ Open Pit 113.8 123.3 364.5 Hugo North UG Mine Process Plant 158.2 158.2 317.2 Tailing Storage Facility 7.8 7.8 16.4 Ancillary Buildings 19.8 19.8 21.0 Onsite Infrastructure 33.6 33.6 72.0 Off-Site Infrastructure 44.4 44.4 78.0 Indirects 132.4 142.2 298.1 CASE TOTALS: 510.2 529.4 1,767.1
TABLE 19.12-2: SUSTAINING CAPITAL COST YEARS 1-4 SUMMARY (US$ MILLION)
CASE 2C CASE 4A CASE 4B ------------------------------------------------------------------------------------- Open Pit 47.9 164.7 120.0 Hugo North UG Mine 129.2 129.2 Process Plant 2.4 159.1 Tailing Storage Facility 14.7 3.4 Ancillary Buildings 4.5 On-Site Infrastructure 37.4 1.2 Off-Site Infrastructure 33.6 0.5 Indirects 136.0 27.4 CASE TOTALS: 50.3 679.4 281.8
Project No.: AAJV001 Page 19-101 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.12-3: INITIAL AND LIFE OF MINE SUSTAINING CAPITAL SUMMARY (US$ MILLION)
CASE 2C CASE 4A CASE 4B ------------------------------------------------------------------------------- INITIAL CAPITAL Open Pit 113.8 123.3 364.5 Hugo North UG Mine Process Plant 158.2 158.2 317.2 Tailing Storage Facility 7.8 7.8 16.4 Ancillary Buildings 19.8 19.8 21.0 On-Site Infrastructure 33.6 33.6 72.0 Off-Site Infrastructure 44.4 44.4 78.0 Indirects 132.4 142.2 298.1 SUB TOTALS: 510.2 529.4 1,167.1 SUSTAINING CAPITAL Open Pit 71.1 409.0 329.7 Hugo North UG Mine 425.4 425.5 Process Plant 159.1 Tailing Storage Facility 12.4 33.3 24.4 Ancillary Buildings 10.0 13.1 16.0 On-Site Infrastructure 7.2 50.9 14.6 Off-Site Infrastructure 1.7 37.1 4.1 Indirects 28.2 164.2 56.8 SUB TOTALS: 130.5 1,292.2 871.1 CASE TOTALS: 638.9 1,821.6 2,034.0
19.12.2 ESTIMATING METHODOLOGY The Scoping Study estimates have been developed to an order of magnitude level with an expected accuracy range of +/-35%. Order of magnitude estimates rely on the experience and expertise of individuals involved where minimum engineering is available and a high reliance on judgement is required. Capital cost estimates were prepared for the various components of the Project by the relevant consultants as follows: - Open Pit Mining - GRD Minproc - Underground Mining - AAJV and SRK - Process Plant - AAJV - Infrastructure - AAJV - Tailings and Waste Rock - Knight Piesold - Projects indirects-AAJV - Owners Costs-AAJV - Rehabilitation and Closure - Sustainability Project No.: AAJV001 Page 19-102 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia AAJV combined these components to provide an overall capital cost estimates for three cases: Case 2c, Case 4a, and Case 4b. Although the approaches to estimation vary between the components, the consultants nominated a range of contingency based on the available definition for their scope. This allowance was included in the overall contingency for the Project. However, no contingency allowance was included for sustaining capital with the exception of the Hugo North underground mine development and the costs associated with the process plant expansion in Years 3 and 4 of Case 4a. The capital cost estimates provide for initial development of the project and all sustaining capital over the life of the operation: 19 years for Case 2C, 29 years for Case 4a, and 27 years for Case 4b. The estimates cover the open pit mines, underground mine development of Hugo North, process plant, tailings and waste rock management, ancillary buildings, on-site infrastructure, off-site infrastructure, indirect, sustaining capital, contingency, owners, rehabilitation and closure costs. Capital costs have a base date of the third quarter 2003 and have been reported in United State's Dollars (USD) with no allowance for escalation. The direct cost component of the capital cost estimates includes: - Supply of permanent materials and fixed and mobile equipment - Labour to undertake and manage the construction activities - Contractors and suppliers mark-up and profit The indirect costs include: - Engineering, procurement and construction management (EPCM) services, together with supervision and commissioning of the plant - Supply of temporary equipment, materials, consumables and small tools - Supply of construction support facilities and services such as water, temporary power, communications, fuel, construction camp, temporary site buildings, site roads, lay down areas and including maintenance of these facilities - Supply of initial capital spares and first fill of reagents and consumables - Owner's costs - Sustaining Capital, Rehabilitation and Closure costs Project No.: AAJV001 Page 19-103 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia GRD Minproc provided the preproduction stripping and equipment cost portions of the open pit capital costs, as described in Section 19.12.11. The capital costs for the Hugo North underground mine were prepared by AAJV, using information developed by SRK. A description of this cost estimate is provided in Section 19.12.12. The Tailing Management Facility estimate was provided by Knight Piesold. AAJV used a combination of budget equipment pricing and factors to prepare the capital cost estimate for the process plant. The process was initiated with an analysis of a similar Western project. This analysis split the estimate into equipment and discipline commodities: - Earthworks - Concrete - Steelwork - Mechanical plate work - Plant pipe work - Plant electrical and instrumentation - Minor buildings - Freight From the existing estimate, the ratio of the cost for the discipline compared to the equipment cost was then calculated. This ratio was then modified by the appropriate a China Factor as discussed in Section 19.12.3. AAJV then developed basic design criteria for the two throughput rates (20 Mt/a and 40 Mt/a), from which equipment lists and flow sheets were prepared. This then led to plant general arrangement drawings and mass balances. AAJV obtained budget prices, based on inquiries with limited information, for all major items of equipment. Vendors were contacted on a global basis, including selected Institutes and suppliers within China. Minor items of equipment were priced from data available to AAJV. Where sufficient detailed information has been available, material take offs have been developed and the applicable China unit rates applied. Preliminary quantities were determined for major infrastructure components, such as pipelines, roads, electrical reticulation, etc., and unit rates applied. Building costs were factored, based on the area of the building footprint and on building pricing obtained Project No.: AAJV001 Page 19-104 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia from China. A preliminary quotation was solicited for the permanent accommodation complex. Costs were provided in some instances from specialist consultants and also costs sourced from China. Provisional allowances were made to fit out the various buildings and workshop facilities. 19.12.3 CHINA FACTOR A major assumption used in the preparation of the cost estimates for the Scoping Study was that much of the material and labour for construction would be procured from China. Thus, it was important to establish a basis for comparing Chinese costs to those for similar projects in Australia and in developing counties in Southeast Asia and Africa. AAJV prepared a preliminary price enquiry for basic construction disciplines and commodities. This enquiry was issued to three groups selected from different provinces of China - northern, central and southern regions. In addition to this enquiry a separate list of mechanical equipment for the process plant with limited specifications and data sheets was also issued to the China market. AAJV reviewed the data that was received from the Chinese contractors to confirm its reliability. The unit rates were then compared with similar discipline unit rates from a major project currently being built in Australia. Table 19.12-4 shows the results of this comparison. TABLE 19.12-4: CHINA FACTOR COMPARISON
CHINA MAJOR DISCIPLINE AUSTRALIA (AVERAGE) ------------------------------------------------------------------------- Earthworks 1 .58 Concrete 1 .26 Structural Steelwork 1 .32 Mechanical Platework 1 .42 Site Erected Tankage 1 .62
These factors were those that were applied to the Western unit costs as described in Section 19.12.1. Project No.: AAJV001 Page 19-105 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia Table 19.12-5 displays a comparison of the estimated costs for the Oyu Tolgoi plant at the two throughput rates to the costs of building similar plants in Australia. This table indicates a potential saving of approximately 30%. A further saving could be achievable if major items of equipment sourced in China are proven to meet the engineering design criteria and specifications for such a process plant. TABLE 19.12-5: INDICATIVE COST COMPARISON
Oyu Tolgoi Western Country Process Plant Capacity US$(million) US$ (million) -------------------------------------------------------------------------------------- 20 Mt/a 153 222 40 Mt/a 305 435
19.12.4 EXCHANGE RATES The capital cost is reported in United States dollars. The current pricing of all imported components of major equipment have been based on the foreign exchange rates as shown in Table 19.12-6. TABLE 19.12-6: CURRENCY EXCHANGE RATES
EXCHANGE RATE COUNTRY UNIT OF CURRENCY ($USD) ------------------------------------------------------------------------- USA DOLLAR 1 AUSTRALIA DOLLAR 0.6 CHINA RMB 0.12
19.12.5 BASIS OF ESTIMATE - DIRECT COSTS EQUIPMENT AND MATERIALS AAJV sought pricing on major equipment items from worldwide vendors, and selected units based on proven performance by the manufacturer from similar projects. AAJV did not use any China-sourced equipment due to discrepancies between prices and the lack of technical information received from the suppliers. However, an opportunity exists during the Feasibility Study to investigate the China market with detailed proper enquiries. Project No.: AAJV001 Page 19-106 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia Materials such as concrete, steelwork fabrication, buildings, piping and limited electrical components were priced based on Chinese costs and some of these material costs are used in the infrastructure costs of the estimate. AAJV added a nominal 15% additional allowance for working in Mongolia to these costs and excluded any allowance for expatriate supervision for contractors' direct and indirect costs. LABOUR RATES AND PRODUCTIVITY Because of the methodology used to estimate capital cost for the Scoping Study the labour and productivity components have not be identified as line items within the estimate. However, they are included in the discipline commodities where used and in the factored labour costs for installation throughout the estimate. No allowance was included for expatriate supervision. 19.12.6 BASIS OF ESTIMATE - INDIRECT COSTS EPCM The EPCM costs for the capital cost estimate were factored from direct costs. The factored allowance varies for different work breakdown structures and these are as shown in Table 19.12-7. EPCM costs for the open pit and underground mining activities were assumed included in the Owner's costs. TABLE 19.12-7: EPCM FACTORED ALLOWANCE
PLANT AREAS % OF DIRECT COSTS ------------------------------------------------------------------------------- Open Pit Mining Part of Owners Costs Underground Mining Part of Owners Costs Process Plant 18% Tailing & Waste Rock Management 10% Ancillary Building 10% On Site Infrastructure 10% & 18% Off Site Infrastructure 10% & 18%
FREIGHT AAJV included a freight allowance for equipment based on 5% of the equipment costs. Freight for material procured in China was included in the estimated unit rates and major turnkey facilities also included the freight component costs. Project No.: AAJV001 Page 19-107 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report- Preliminary Assessment Oyu Tolgoi Project, Mongolia START UP AND COMMISSIONING An allowance of 1.5% of the installed mechanical equipment costs was included for the start up and commission activities for the process plant and infrastructure. No equivalent allowance was included for the open pit and underground mining activities. TAXES AND DUTIES All taxes and duties were excluded from the capital cost estimate. SPARE PARTS AND FIRST FILL An allowance of 8% of mechanical equipment supply costs was included for the initial and insurance spares and first fills. Mining equipment spares were included in the unit supply cost of major mining equipment items. OWNER'S COSTS AAJV included an Owner's costs allowance of 4% of the initial capital and expansion capital, including ancillary buildings, on and off site infrastructure and indirect costs. This cost was assumed to cover the Owner's construction management and general administration teams, insurances, legal and financial. No other allowance has been made for Owners costs in sustaining capital and is assumed that these costs would be considered covered in the operations and G&A costs for the project. CONTINGENCY AAJV made a preliminary contingency provision for each cost area of the initial capital in the Indirects. The levels of contingency are shown in Table 19.12-8. Project No.: AAJV001 Page 19-108 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.12-8: CONTINGENCY ALLOWANCE BY AREA
AREA CONTINGENCY (%) -------------------------------------------------------------------------- Open pit mining Preproduction mining 20 Mine dewatering 10 Mobile equipment 10 Crushing 15 Underground mining 20 Process plant 15 Tailings & waste rock 20 Tailings slurry line 15 Infrastructure 15 EPCM 10 Commissioning 10 First fill 15
The purpose of the contingency is to make specific allowances for uncertain elements of costs within the defined project Scoping Study, including but not limited to such items as: - Lack of detailed engineering - Equipment budget pricing - Materials and labour rates - Quantity take-off errors and omissions - Accuracy of information The preliminary contingency provision attempts to reduce the risk of overrun to a predetermined acceptable level. The contingency does not cover or allow for scope changes, exchange rate fluctuations or escalation. It does not allow items beyond the scope of work for the Scoping Study. 19.12.7 ASSUMPTIONS AND EXCLUSIONS The following assumptions apply to this estimate: - Design is based on the available test work - IMMI has received all permissions and permits required for the project - The access road from China to the plant site boundary provided by others Project No.: AAJV001 Page 19-109 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia - Power supply is provided by others to plant switch yard - Adequate water available at selected bore fields - Unrestricted transportation access to road/rail systems from point of manufacture to project site including border crossings - Assessment and understanding of current China Factor - No expatriate craft supervision will be required The estimate excludes the following: - All land acquisition costs - Site and other exploration costs - On going test work - On going studies - All taxes and duties - Foreign currency fluctuations - Escalation from base date of estimates - Working capital and interest costs - Marketing and sales costs - Corporate costs - Extra costs for acceleration for deliveries of equipment and services Several of these excluded items were included in the financial analysis. 19.12.8 WORKING CAPITAL The estimate does not include an allowance for working capital. However, such an allowance is made in the financial analysis. 19.12.9 SUSTAINING CAPITAL These items provide for expenditure that will be incurred over the life of the project for the maintenance of project throughput rates via the necessary addition or replacement of capital equipment and for the procurement of minor capital assets to sustain the operation. The main areas where sustaining capital has been included are for the underground and open pit mining and tailings storage facility activities. For Case 4a, the sustaining capital for the expansion of the plant was included in Years 3 and 4. Project No.: AAJV001 Page 19-110 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Rehabilitation and closure costs were also incorporated as a sustaining capital allowance. 19.12.10 MINING CAPITAL Most of the open pit and underground capital costs were estimated by GRD Minproc and AAJV respectively as described in Sections 19.12.11 and 19.12.12 respectively. However, certain components of both sets of capital costs were estimated separately by AAJV. The open pit capital costs reported in Table 19.12-10 exclude preproduction stripping and mine dewatering costs. These costs are shown in Table 19.12-9. TABLE 19.12-9: OPEN PIT PREPRODUCTION AND DEWATERING CAPITAL COST ESTIMATE
CASE 2c CASE 4b CASE 4a 20 Mt/a 40 Mt/a 20 - 40 Mt/a UNITS INITIAL TOTAL INITIAL TOTAL INITIAL TOTAL Preproduction $'000 34,224 143,583 37,332 Mine Dewatering $'000 150 1,170 150 2,210 150 2,470 TOTAL $'000 34,374 1,170 143,733 2,210 37,482 2,470
The underground capital costs reported in Table 19.12-11 exclude Contractor's site establishment ($684,000, including contingency) and the installation costs of the underground crushing and material handling facilities ($1,637,000 including contingency). 19.12.11 OPEN PIT CAPITAL COSTS (GRD MINPROC) OPEN PIT CAPITAL COSTS SUMMARY The start-up and total capital cost estimate for the open pits are summarised in Table 19.12-10. The start-up costs in the table refer to the capital expenditure during the preproduction period excluding and new equipment purchases during plant production. The total costs include the new and replacement equipment requirements during the life of the open pit and during the treatment of the low grade stockpiles. Case 4b includes the in pit crushing system and therefore capital and operating costs cannot be directly compared with the other two cases in Table 19.12-10. Project No.: AAJV001 Page 19-111 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.12-10: OPEN PIT START-UP AND TOTAL CAPITAL COST ESTIMATES SUMMARY
CASE 2c CASE 4b CASE 4a 20 Mt/a 40 Mt/a 20 - 40 Mt/a OPEN PIT CAPITAL COST SUMMARY UNITS START-UP TOTAL START-UP TOTAL START-UP TOTAL ---------------------------------------------------------------------------------------------------------- Loading $'000 25,003 25,003 74,005 99,008 21,406 58,910 Hauling $'000 27,424 62,683 90,107 242,897 35,259 297,745 Drilling $'000 5,888 9,813 15,701 31,402 5,888 33,364 Ancillary & Support Equipment $'000 16,287 43,976 33,548 86,163 16,859 86,242 Other Capital (Cable, dispatch, technical equip) $'000 4,850 7,900 7,250 16,100 6,400 16,100 CAPITAL COST TOTAL $'000 79,451 149,374 220,611 475,570 85,812 492,362
In addition to the mine equipment costs detailed above, the initial mine capital includes operating costs incurred during the preproduction period as detailed in Table 19.12-9. 19.12.12 UNDERGROUND CAPITAL COSTS Table 19.12-11 presents a summary of the Hugo North capital costs. Project No.: AAJV001 Page 19-112 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.12-11: CAPITAL COST SUMMARY (US$ X000)
PROJECT YR-2 YR-1 YR 3 YEAR FROM YR-1 YR-2 YR 19 WBS DESCRIPTION TO SUNK INITIAL SUSTAINING TOTAL 280 HUGO N UNDERGROUND MINE 281 Development Decline $ 3,821 $ 80 $ 4,537 $ 8,438 282 Development Ventilation $ 7,015 $ 1,771 $ 16,883 $ 25,669 283 Development Dewatering $ 0 $ 566 $ 0 $ 566 284 Development Materials Handling $ 0 $ 4,503 $ 9,186 $ 13,689 285 Development Ancillary $ 1,865 $ 257 $ 514 $ 2,636 286 Extraction Level $ 0 $ 18,747 $129,500 $148,247 287 Undercut level $ 0 $ 4,147 $ 30,010 $ 34,157 288 Sustaining Capital (Stores) $ 502 $ 4,619 $ 10,765 $ 15,886 289 Shafts $ 25,660 $ 12,387 $ 38,047 290 Pre-Production and Mining $ 0 $ 0 $ 0 $ 0 291 Mobile Equipment $ 0 $ 4,828 $ 31,591 $ 36,419 292 Materials handling Equipment $ 0 $ 5,338 $ 9,302 $ 14,640 293 Ancillary Equipment $ 791 $ 3,423 $ 594 $ 4,808 294 Primary Ventilation Fans $ 0 $ 2,106 $ 0 $ 2,106 295 Mine Services $ 1,215 $ 3,005 $ 3,078 $ 7,298 296 Surface Facilities (see WBS 540) $ 0 297 Contractors Site Establishment $ 0 Subtotal $ 40,869 $ 65,777 $245,960 $352,606 Contingency @ 20% $ 8,174 $ 13,155 $ 49,192 $ 70,521 TOTAL $ 49,043 $ 78,932 $295,152 $423,127
SUNK CAPITAL YEAR - 2 TO - 1 The sunk capital represents those costs that will have been expended prior to the approval for underground mining. This schedule is necessary to achieve the production forecast for Hugo North. Most of this capital will be to spent to sink the future production shaft and to carry out some preproduction access development from the exploration shaft. INITIAL CAPITAL YEAR 1 TO 2 Initial capital is estimated at $78.9 million. This is the capital that would be spent in Years 1 and 2 in order to start up production during Year 2. Project No.: AAJV001 Page 19-113 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Capital expenditures would include the on-going costs for sinking the production shaft and associated works; the excavation and construction of the No. 1 crusher station; the development and installation of the No. 1 ore dump and waste pass system; the excavation and installation of the main conveyor gallery; and the construction of the mine dewatering facilities. They would also include the costs required to purchase the necessary mining equipment and the costs to complete the primary access, ventilation and stoping development for initial production start up. SUSTAINING CAPITAL YEAR 3 TO 19 Sustaining capital requirements were estimated at $295.2 million. This capital includes the cost for the development and installation of the transfer conveyor galleries; the development, excavation and construction of the No. 2 and No. 3 crusher stations and ore and waste pass systems; mine equipment and replacement; on-going undercut and transfer level development; and decline and footwall access development. 280 TO 287 - DEVELOPMENT CAPITAL The development capital costs were developed by applying unit development costs against estimated development quantities. Table 19.12-12 lists development unit costs. TABLE 19.12-12: DEVELOPMENT UNIT COSTS
DESCRIPTION DIMENSIONS UNITS UNIT COST ----------------------------------------------------------------------- Conveyor Drift 5.5 h x 6.0 w m $ 1,740 Decline 6.0 h x 6.0 w m $ 1,769 Access Drives 4.5 h x 4.5 w m $ 1,601 Return Airways 6.0 h x 6.0 w m $ 1,742 Ventilation Raises & Passes 3.5 m dia m $ 1,872 Extraction Drive 4.5 h x 4.5 w m $ 1,949 Extraction Drive Draw Points 4.2 h x 4.2 w m $ 2,032 Drawcone Each $82,332 Undercut Ore Drive 4.2 h x 4.2 w m $ 1,329 Excavation Various m(3) $ 117
Project No.: AAJV001 Page 19-114 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia These development unit costs are Australian contractor costs that have been discounted to account for anticipated Mongolian pricing for materials and labour where applicable. The unit costs are include all contractors' equipment and development material and operating supplies. 288 - SUSTAINING CAPITAL (STORES) This capital represents capital required for stores inventory and equipment spares, based on 25% of all mobile and fixed equipment and mine services capital purchases. 289 - SHAFTS The capital costs for developing the production shaft was adapted from the SRK capital cost estimate for the Hugo South production shaft by adding allowances for the increased shaft depth and additional stations. The costs include a discount factor of 0.57 to account for anticipated Mongolian pricing for materials and labour where applicable. These costs include all winders, concrete headframe and headgear, shaft conveyances, shaft sinking and equipping, station excavation and construction and associated shaft works including loading pocket, loadout conveyor and shaft ore and waste storage bins. 291 - MOBILE EQUIPMENT The mobile equipment costs were developed by SRK based upon current Australian pricing. All equipment was assumed new and replaced every seven years. A 5% allowance on the equipment purchase price was added to cover freight charges. In determining equipment quantities, an additional 14% in equipment capacity has been allowed for to cover for maintenance requirements. 292 - MATERIALS HANDLING EQUIPMENT Materials handling equipment capital costs were developed by AAJV based upon manufacturers' quotations and include all conveying, crushing and other associated materials handling equipment which includes feeders, chutes crusher room dust collecting units and stationary rock breakers and dump installations. Project No.: AAJV001 Page 19-115 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 293 - ANCILLARY EQUIPMENT Capital cost allowances for ancillary equipment were based on SRK estimates that were discounted by a factor of 0.75. These include ancillary equipment needs, which include operating and monitoring equipment, underground maintenance service equipment for the main underground workshop and service bays and explosive magazine equipment. A $2.25 million allowance was included for stope definition diamond drilling. 294 - PRIMARY VENTILATION FANS This capital cost includes a $1.3 million for the primary ventilation fans, as estimated by SRK based upon a total estimated maximum airflow of 457 m(3)/sec, and $0.8 million for mine air heaters as estimated by AAJV. 295 - MINE SERVICES These capital costs were derived by AAJV from the SRK capital cost estimate for Hugo South mine services and include permanent dewatering equipment, service and potable water supply, control and communication lines and power distribution into mine via the production shaft including feeders, transformers and all switch gear. SRK had discounted these costs by a factor of 0.75 to account for anticipated Mongolian pricing for materials and labour where applicable. Project No.: AAJV001 Page 19-116 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.13 OPERATING COSTS 19.13.1 OPERATING COSTS SUMMARY The estimated annual operating costs for Cases 2a, 4a, and 4b are shown in Table 19.13-1, Table 19,13-2 and Table 19.13-3. 19.13.2 OPEN PIT MINE OPERATING COSTS (GRD MINPROC) BASIS FOR COST ESTIMATES Operating and capital cost estimates for open pit mining were derived from the following components: - Major loading, hauling and drilling equipment productivity. - Estimate of major equipment operating hours, efficiency and required numbers. - Ancillary and support equipment operating hours and number estimates. - Hourly operating cost estimates for the mining equipment components. - Drilling and blasting productivity and consumable estimates. - Labour costs based on Mongolian and expatriate labour costs. - Purchase, delivery and assembly cost of the mining equipment. The average annual costs for the labour categories were provided by IMMI. The operating and capital cost estimates for the major and supporting open pit equipment fleet were based on first principle estimates compiled using a combination of consumable costs provided by IMMI (power, fuel) and maintenance and repair costs from the GRD Minproc cost database. Annual operating costs for the shovels and ancillary equipment were derived from hourly equipment costs and nominated annual unit hours. For the estimation of truck operating costs, haul profiles were calculated for in-pit, up-ramp, on-surface, up-dump and on-dump return travel. The centroid of the mining benches and approximate advance of the dump faces were considered in the generation of the average haul profiles. The average truck cycle times were set for the mining benches and weighted averages calculated annually in the production schedules. The spikes in the annual truck fleet requirements were smoothed by adjusting the cycle times to bring longer on-dump travel slightly forward if necessary. The capital costs were adjusted for the difference in time and the expected freight costs for delivery to the site. The shovel purchase price estimates were based on information from the Chinese branch of an international manufacturer. Project No.: AAJV001 Page 19-117 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-1: OPERATING COST SUMMARY - CASE 2c
1 2 3 4 5 6 7 8 9 10 --------------------------------------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 1.71 2.08 2.24 2.19 1.90 1.27 1.42 1.75 1.95 1.51 Underground S/t ore mined UNIT OPERATING COSTS Open Pit $/t ore milled 3.46 2.77 2.95 2.95 2.85 2.85 2.77 2.77 2.73 2.39 Underground $/t ore milled 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Process $/t ore milled 2.90 2.64 2.58 2.58 2.49 2.49 2.38 2.38 2.38 2.23 G&A $/t ore milled 1.11 0.91 0.91 0.91 0.86 0.85 0.79 0.79 0.79 0.72 Other S/t ore milled 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mongolian Royalty S/t ore milled 0.41 0.65 0.24 0.46 0.44 0.20 0.23 0.40 0.43 0.23 Immovable Property Tax $/t ore milled 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.03 0.03 TOTAL $/t ORE MILLED 7.92 7.01 6.72 6.94 6.68 6.43 6.21 6.38 6.36 5.59 ANNUAL OPERATING COSTS Open Pit $k 48,470 47,151 50,105 50,121 51,357 51,336 49,937 49,806 49,055 47,729 Underground $k 0 0 0 0 0 0 0 0 0 0 Process $k 40,726 44,852 43,933 43,932 44,842 44,842 42,767 42,767 42,767 44,587 G&A $k 15,542 15,460 15,513 15,513 15,513 15,363 14,306 14,306 14,306 14,301 Other $k 0 0 0 0 0 0 0 0 0 0 TOTAL $k 104,738 107,403 109,551 109,566 111,712 111,541 107,010 106,879 106,128 106,617 11 12 13 14 15 16 17 18 19 TOTAL ----------------------------------------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 1.13 1.08 3.70 1.77 underground S/t ore mined UNIT OPERATING COSTS Open Pit $/t ore milled 1.95 1.32 0.81 0.46 0.37 0.37 0.37 0.43 0.43 1.77 Underground $/t ore milled 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Process $/t ore milled 2.23 2.23 2.23 2.23 2.23 2.23 2.23 2.28 2.28 2.36 G&A $/t ore milled 0.71 0.71 0.70 0.69 0.69 0.69 0.69 0.83 0.83 0.78 Other S/t ore milled 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Mongolian Royalty S/t ore milled 0.30 0.39 0.22 0.17 0.17 0.17 0.17 0.17 0.17 0.29 Immovable Property Tax $/t ore milled 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.03 TOTAL $/t ORE MILLED 5.22 4.67 3.99 3.58 3.49 3.49 3.49 3.74 3.74 5.24 ANNUAL OPERATING COSTS Open Pit $k 38,992 26,324 16,102 9,224 7,452 7,452 7,452 7,233 7,233 622,752 Underground $k 0 0 0 0 0 0 0 0 0 - Process $k 44,587 44,586 44,587 44,587 44,587 44,587 44,587 38,229 38,229 830,939 G&A $k 14,233 14,137 14,092 13,896 13,896 13,896 13,896 13,896 13,896 275,961 Other $k 0 0 0 0 0 0 0 0 0 - TOTAL $k 97,812 85,047 74,781 67,707 65,935 65,935 65,935 59,358 59,358 1,729,652
Project No.: AAJV001 Page 19-118 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-2: OPERATING COST SUMMARY - CASE 4a
1 2 3 4 5 6 7 8 9 10 --------------------------------------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 2.41 4.06 4.19 3.34 2.0 1.88 2.39 3.87 3.05 2.58 Underground $/t ore mined 10.26 6.59 2.60 1.97 1.76 1.73 1.88 1.78 UNIT OPERATING COSTS Open Pit $/t ore milled 5.20 5.44 6.44 6.45 2.89 2.90 2.97 3.20 3.07 3.06 Underground $/t ore milled - - 0.29 0.63 0.44 0.52 0.57 0.57 0.59 0.56 Process $/t ore milled 2.91 2.64 2.59 2.59 2.30 2.30 2.25 2.25 2.18 2.18 G&A $/t ore milled 1.15 0.96 1.01 1.12 0.59 0.58 0.55 0.55 0.53 0.52 Other $/t ore milled - - - - - - - - - - Mongolian Royalty $/t ore milled 0.39 0.62 0.33 0.54 0.45 0.47 0.48 0.48 0.50 0.45 Immovable Property Tax $/t ore milled 0.10 0.09 0.10 0.12 0.05 0.05 0.06 0.06 0.06 0.06 TOTAL $/t ORE MILLED 9.75 9.75 10.77 11.45 6.72 6.82 6.88 7.11 6.93 6.83 ANNUAL OPERATING COSTS Open Pit $k 72,991 92,516 109,477 109,649 109,667 110,015 112,771 121,513 122,939 122,222 Underground $k - - 4,987 10,744 16,622 19,590 21,682 21,764 23,790 22,384 Process $k 40,759 44,892 43,973 43,973 87,544 87,544 85,468 85,469 87,288 87,288 G&A $k 16,167 16,313 17,221 19,028 22,391 22,187 20,934 21,022 21,022 20,966 Other $k - - - - - - - - - - TOTAL $k 129,917 153,721 175,658 183,394 236,225 239,336 240,854 249,769 255,039 252,859 11 12 13 14 15 ------------------------------------------------------------------------------------ UNIT MINING COSTS Open Pit $/t ore mined 2.29 2.84 2.10 1.58 2.27 Underground $/t ore mined 1.72 1.34 1.40 2.06 1.61 UNIT OPERATING COSTS Open Pit $/t ore milled 3.05 3.04 3.04 3.04 2.97 Underground $/t ore milled 0.52 0.41 0.47 0.65 0.50 Process $/t ore milled 2.18 2.18 2.18 2.18 2.18 G&A $/t ore milled 0.53 0.53 0.53 0.53 0.52 Other $/t ore milled - - - - - Mongolian Royalty $/t ore milled 0.52 0.59 0.53 0,53 0.64 Immovable Property Tax $/t ore milled 0.06 0.06 0.06 0.06 0.06 TOTAL $/t ORE MILLED 6.85 6.81 6.80 7.00 6.89 ANNUAL OPERATING COSTS Open Pit $k 122,184 121,711 121,688 121,687 118,828 Underground $k 20,609 16,333 18,638 25,800 20,077 Process $k 87,287 87,287 87,287 87,287 87,287 G&A $k 21,014 21,014 21,014 21,014 20,958 Other $k - - - - - TOTAL $k 257,094 246,345 248,628 255,788 247,150
Project No.: AAJV001 Page 19-119 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-2: OPERATING COST SUMMARY - CASE 4a (CONT.)
16 17 18 19 20 21 22 23 24 25 --------------------------------------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 4.90 7.74 11.17 6.94 2.25 1.52 1.69 1.85 10.26 Underground $/t ore mined 1.57 1.56 2.03 1.48 2.43 1.91 UNIT OPERATING COSTS Open Pit $/t ore milled 2.98 2.66 2.52 2.20 2.10 1.38 1.09 1,08 0.99 0.30 Underground $/t ore milled 0.49 0.47 0.41 0.20 0.28 0.12 - - - - Process $/t ore milled 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 G&A $/t ore milled 0.52 0.52 0.52 0.50 0.49 0.47 0.47 0.47 0.47 0.47 Other $/t ore milled - - - - - - - - - - Mongolian Royalty $/t ore milled 0.54 0,34 0.26 0.19 0.32 0.37 0.30 0.31 0.15 0.14 Immovable Property Tax $/t ore milled 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.05 0.05 0.05 TOTAL $/t ORE MILLED 6.77 6.25 5.95 5.35 5.44 4.60 4.10 4.10 3.85 3.13 ANNUAL OPERATING COSTS Open Pit $k 119,026 106,475 100,615 87,801 83,906 55,099 43,496 43,044 39,657 11,977 Underground $k 19,478 18,960 16,505 8,113 11,219 4,996 - - - - Process $k 87,287 87,289 87,289 87,289 87,289 87,289 87,289 87,289 87,290 87,290 G&A $k 20,945 20,884 20,821 20,716 20,077 19,761 18,999 18,999 18,999 18,687 Other $k - - - - - - - - - - TOTAL $k 246,736 233,628 225,230 203,919 202,491 167,147 149,784 149,332 145,946 117,954 26 27 28 29 Total -------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 2.81 Underground $/t ore mined 1.83 UNIT OPERATING COSTS Open Pit $/t ore milled 0.30 0.30 0.30 0.30 2.33 Underground $/t ore milled - - - - 0.31 Process $/t ore milled 2.18 2.18 2.18 2.35 2.23 G&A $/t ore milled 0.47 0,47 0.47 0.86 0.55 Other $/t ore milled - - - - - Mongolian Royalty $/t ore milled 0.14 0.14 0.14 0.14 0.38 Immovable Property Tax $/t ore milled 0.05 0.04 0.04 0.04 0.06 TOTAL $/t ORE MILLED 3.13 3.13 3.13 3.70 5.86 ANNUAL OPERATING COSTS Open Pit $k 11,920 11,920 11,920 6,565 2,423,275 Underground $k - - - - 322,314 Process $k 87,290 87,290 87,290 51,060 2,316,453 G&A $k 18,687 18,687 18,687 18,687 575,901 Other $k - - - - - TOTAL $k 117,897 117,897 117,897 76,312 247,150
Project No.: AAJV001 Page 19-120 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-3: OPERATING COST SUMMARY - CASE 4b
1 2 3 4 5 6 7 8 9 10 --------------------------------------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 4.25 2.59 1.83 2.19 2.59 3.17 1.38 1.63 2.50 1.70 Underground $/t ore mined 10.26 6.59 2.60 1.97 1.76 1.73 1.88 1.78 UNIT OPERATING COSTS Open Pit $/t ore milled 4.43 3.27 2.99 2.98 2.98 2.98 2.94 2.94 2.83 2.80 Underground $/t ore milled 0.00 0.00 0.12 0.27 0.42 0.49 0.54 0.54 0.59 0.56 Process S/t ore milled 2.90 2.59 2.43 2.43 2.43 2.43 2.37 2.37 2.37 2.37 G&A $/t ore milled 0.74 0.56 0.55 0.55 0.56 0.55 0.52 0.52 0.52 0.52 Other $/t ore milled 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mongolian Royalty $/t ore milled 0.40 0.34 0.26 0.43 0.48 0.39 0.48 0.45 0.45 0.57 Immovable Property Tax $/t ore milled 0.08 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 TOTAL $/t ORE MILLED 8.55 6.83 6.41 6.73 6.93 6.90 6.92 6.90 6.83 6.89 ANNUAL OPERATING COSTS Open Pit $k 124,355 121,091 119,637 119,319 119,307 119,323 117,654 117,658 113,316 111,892 Underground $k 0 0 4,987 10,744 16,622 19,590 21,682 21,764 23,790 22,384 Process $k 81,229 95,824 97,082 97,081 97,081 97,081 94,703 94,703 94,703 94,702 G&A $k 20,796 20,808 21,873 22,174 22,276 22,068 20,848 20,889 20,889 20,830 Other $k 0 0 0 0 0 0 0 0 0 0 TOTAL $k 226,380 237,723 243,579 249,317 255,286 258,062 254,886 255,014 252,698 249,807 11 12 13 14 --------------------------------------------------------------------------- UNIT MINING COSTS Open Pit $/t ore mined 2.60 3.67 3.74 3.69 Underground $/t ore mined 1.72 1.34 1.40 2.06 UNIT OPERATING COSTS Open Pit $/t ore milled 3.06 3.05 2.82 2.25 Underground $/t ore milled 0.52 0.41 0.47 0.65 Process S/t ore milled 2.37 2.37 2.37 2.37 G&A $/t ore milled 0.52 0.52 0.52 0.52 Other $/t ore milled 0.00 0.00 0.00 0.00 Mongolian Royalty $/t ore milled 0.55 0.59 0.69 0.60 Immovable Property Tax $/t ore milled 0.07 0.07 0.07 0.07 TOTAL $/t ORE MILLED 7.08 7.01 6.93 6.46 ANNUAL OPERATING COSTS Open Pit $k 122,566 122,074 112,834 90,094 Underground $k 20,609 16,333 18,638 25,800 Process $k 94,702 94,702 94,701 94,702 G&A $k 20,887 20,887 20,785 20,677 Other $k 0 0 0 0 TOTAL $k 258,764 253,996 246,958 231,273
Project No.: AAJV001 Page 19-121 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-3: OPERATING COST SUMMARY - CASE 4b (CONT.)
15 16 17 18 19 20 21 22 23 24 --------------------------------------------------------------------------------------------------------------------------------- UNIT MINING COSTS Open Pit S/t ore mined 7.23 9.03 3.53 1.67 1.48 1.36 1.35 6.82 Underground $/t ore mined 1.61 1.57 1.56 2.03 1.48 2.43 1.91 UNIT OPERATING COSTS Open Pit $/t ore milled 2.08 2.05 1.97 1.35 1.03 0.87 0.79 0.66 0.30 0.30 Underground $/t ore milled 0.50 0.49 0.47 0.41 0.20 0.28 0.12 0.00 0.00 0.00 Process $/t ore milled 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 G&A $/t ore milled 0.51 0.51 0.51 0.50 0.49 0.48 0.48 0.47 0.45 0.45 Other $/t ore milled 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mongolian Royalty $/t ore milled 0.43 0.35 0.29 0.32 0.34 0.37 0.35 0.15 0.14 0.14 Immovable Property Tax $/t ore milled 0.07 0.07 0.07 0.07 0.07 0.07 0.06 0.06 0.06 0.06 TOTAL $/t ORE MILLED 5.96 5.84 5.68 5.02 4.50 4.44 4.18 3.70 3.32 3.31 ANNUAL OPERATING COSTS Open Pit $k 83,054 82,079 78,845 54,027 41,182 34,995 31,416 26,333 11,909 11,909 Underground $k 20,077 19,478 18,980 16,505 8,113 11,219 4,998 0 0 0 Process $k 94,703 94,703 94,704 94,704 94,704 94,703 94,703 94,705 94,705 94,705 G&A $k 20,542 20,503 20,498 19,910 19,701 19,373 19,373 18,612 18,145 18,145 Other $k 0 0 0 0 0 0 0 0 0 0 TOTAL $k 218,376 216,764 213,028 185,146 163,700 160,290 150,490 139,650 124,759 124,759 25 26 27 TOTAL ----------------------------------------------------------------------------- UNIT MINING COSTS Open Pit S/t ore mined 2.47 Underground $/t ore mined 1.83 UNIT OPERATING COSTS Open Pit $/t ore milled 0.30 0.30 0.31 2.04 Underground $/t ore milled 0.00 0.00 0.00 0.31 Process $/t ore milled 2.37 2.37 3.25 2.41 G&A $/t ore milled 0.45 0.45 2.07 0.53 Other $/t ore milled 0.00 0.00 0.00 0.00 Mongolian Royalty $/t ore milled 0.14 0.14 0.14 0.38 Immovable Property Tax $/t ore milled 0.05 0.05 0.05 0.07 TOTAL $/t ORE MILLED 3.31 3.31 5.82 5.73 ANNUAL OPERATING COSTS Open Pit $k 11,909 11,909 2,705 2,113,390 Underground $k 0 0 0 322,314 Process $k 94,705 94,705 28,519 2,487,964 G&A $k 18,145 18,145 18,145 545,924 Other $k 0 0 0 0 TOTAL $k 124,759 124,759 49,369 5,469,592
Project No.: AAJV001 Page 19-122 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The power and diesel costs used to derive the hourly equipment operating cost estimates were estimated by IMMI. The local price for bulk ANFO was supplied by IMMI and the other explosive costs were pro-rated based on GRD Minproc database information for other mining projects. Generic cost estimates were used for the other minor blasting cost items and accessories. Table 19.13-4 summarises the total operating cost estimates for the three throughput cases studied. The operating costs were built up in the nominated unit activity categories. The extra truck haulage cost for delivery of the selected waste to the tailings dam construction was separated in the cost estimates. It should be noted that the costs of the in pit crushing, conveying and stacking systems for Case 4b are included in the process costing prepared by AAJV. It is not therefore possible to directly compare the costs of Cases 2c, 4a and 4b using Table 19.13-4. TABLE 19.13-4: OPEN PIT OPERATING COST ESTIMATES SUMMARY
CASE 2c CASE 4b CASE 4a UNITS 20 Mt/a 40 Mt/a 20 - 40 Mt/a ---------------------------------------------------------------------------------------------- OPEN PIT OPERATING COST SUMMARY Loading $'000 65,249 296,094 265,791 Hauling $'000 279,293 942,155 1,163,570 Drilling $'000 61,960 227,785 228,534 Blasting $'000 103,072 378,925 380,171 Ancillary & Support Equipment $'000 68,884 203,170 210,990 Labour $'000 44,913 96,277 103,069 Other Mining Costs $'000 22,819 65,170 65,385 Tailings Dam Extra Haul $'000 10,785 47,396 43,097 OPERATING COST TOTAL $'000 656,976 2,256,973 2,460,607
The total operating costs included in Table 19.13-4 are greater than those included in Tables 19.13-1 through 19.13-3 since they include operating costs incurred during the preproduction period that have been capitalised. OPEN PIT COST BENCHMARKING The operating and capital cost estimates were estimated to the level of detail required for a Scoping Study (+/-25 - 30%). The specific details and quotes for the supply of consumables and delivery of equipment are not available at this stage of the project. Project No.: AAJV001 Page 19-123 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia In order to verify their accuracy, the cost estimates were compared to existing large open pit operations in terms of: - Major loading and hauling equipment productivities and operating costs - Benchmarking of the operating cost estimates - Start-up and replacement unit capital costs per tonne mined Figure 19.13-1 shows the Oyu Tolgoi open pit costs in relation to costs at comparable open pit operations, indicating that the mining costs estimated for this Study are reasonable. FIGURE 19.13-1: MINING RATE VS MINE OPERATING COST FOR LARGE OPEN PIT OPERATIONS [FIGURE] 19.13.3 UNDERGROUND MINING (HUGO NORTH) Table 19.13-5 below presents the annual operating cost summary (including 20% contingency). Project No.: AAJV001 Page 19-124 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-5: OPERATING COST SUMMARY (US$ X000)
ANNUAL 20% UNIT YEAR COSTS CONT'gcy TOTAL $/TONNE -------------------------------------------------------------------------- 1 $ 4,156 $ 831 $ 4,987 2 $ 8,953 $ 1,791 $ 10,744 $9.77 3 $ 13,852 $ 2,770 $ 16,622 $2.79 4 $ 16,325 $ 3,265 $ 19,590 $2.04 5 $ 18,086 $ 3,617 $ 21,703 $1.81 6 $ 18,137 $ 3,627 $ 21,764 $1.81 7 $ 19,825 $ 3,965 $ 23,790 $1.98 8 $ 18,653 $ 3,731 $ 22,384 $1.87 9 $ 17,174 $ 3,435 $ 20,609 $1.72 10 $ 13,611 $ 2,722 $ 16,333 $1.36 11 $ 15,532 $ 3,106 $ 18,638 $1.55 12 $ 21,500 $ 4,300 $ 25,800 $2.15 13 $ 16,731 $ 3,346 $ 20,077 $1.67 14 $ 16,232 $ 3,246 $ 19,478 $1.62 15 $ 15,817 $ 3,163 $ 18,980 $1.65 16 $ 13,754 $ 2,751 $ 16,505 $2.03 17 $ 6,761 $ 1,352 $ 8,113 $1.64 18 $ 9,349 $ 1,870 $ 11,219 $2.43 19 $ 4,165 $ 833 $ 4,998 $1.91 TOTAL $268,613 $53,723 $322,336 $1.91 -------------------------------------------------------------------------
The total unit operating costs per tonne in the first two years of production - Year 2 at $9.77 /t and Year 3 at $2.79 /t - are affected by a number a factors: - The production rate is low while the capacity is being increased by draw bell development. - Overall labour productivity is low because there is a relatively high overhead labour cost associated with the production build up. - In Year 1 there is an additional cost for trucking ore and waste to the exploration shaft during the initial production build up phase prior to the completion of the production shaft and installation of the conveyor system. A unit cost of $3.00 /t was allocated for trucking. Project No.: AAJV001 Page 19-125 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia SRK developed the total annual labour costs from the projected manpower lists and estimated cost for expatriate and Mongolian labour based on monthly salary estimates provided by IMMI. Over the mine life, the operating labour costs will fall as the expatriate proportion of labour falls and the local labour component rises. The initial annual labour cost for the full manpower compliment is $4.8 million and ultimate annual labour cost at full production with maximum Mongolian labour component is $1.6 million. The spikes in the unit operating costs in Years 7, 12 and 16 are created by the amount of undercut drilling and blasting required in these years, which is related to the opening up of new mining blocks in order to sustain the production rate. Table 19.13-6 below presents the unit costs for the various operating activities included in the overall operating costs. TABLE 19.13-6: UNIT OPERATING COSTS
ACTIVITY UNITS UNIT COST --------------------------------------------------------------------------------- Drill & Blast U/C m $18.37 Secondary Breakage t $ 0.05 Production Loaders t $ 0.28 Conveying & Crushing t $ 0.22 Initial Trucking to Exploration Shaft t $ 3.00 Hoisting t $ 0.30 Pumping t $ 0.05 Ventilation t $ 0.07 ---------------------------------------------------------------------------------
These unit operating costs were developed by SRK and include power, all operating material and supplies but exclude labour. 19.13.4 PROCESS COSTS Operating cost estimates for the three production cases, presented in this report, were separately developed by compiling operating cost estimates for process reagents, consumables, labour requirements, process plant power requirements, offsite service requirements, consultants, concentrate transport and handling. The process operating costs for each throughput case are summarised in Table 19.13-7, Table 19.13-8 and Table 19.13-9 by averaging costs over the life of the project. Project No.: AAJV001 Page 19-126 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-7: AVERAGE PROCESS PLANT OPERATING COSTS - CASE 2c
CATEGORY $M/YEAR $/t ------------------------------------------- Reagents 3.9 0.21 Labour 2.6 0.14 Power 14.6 0.79 Consumables 22.5 1.21 Miscellaneous 0.2 0.01 PROCESS PLANT TOTAL 43.7 2.36 -------------------------------------------
TABLE 19.13-8: AVERAGE PROCESS PLANT OPERATING COSTS - CASE 4a
CATEGORY $M/YEAR $/t ------------------------------------------- Reagents 7.4 0.21 Labour 2.6 0.07 Power 27.2 0.76 Consumables 42.4 1.18 Miscellaneous 0.3 0.01 PROCESS PLANT TOTAL 79.9 2.23 -------------------------------------------
TABLE 19.13-9: AVERAGE PROCESS PLANT OPERATING COSTS - CASE 4b
CATEGORY $M/YEAR $/t ------------------------------------------- Reagents 8.0 0.21 Labour 2.9 0.08 Power 31.9 0.83 Consumables 49.1 1.28 Miscellaneous 0.3 0.01 PROCESS PLANT TOTAL 92.1 2.41 -------------------------------------------
Reagent consumptions used to determine operating costs were based on typical consumptions derived from metallurgical test work conducted to date. Consumption of reagents not determined from the test work to date, such as water conditioner, was based on consumption rates at similar operations. Process plant consumables are categorised as either operating or maintenance. Plant operating consumables cover major equipment wear liner replacement, grinding circuit media, laboratory consumables and general consumables used by operations personnel in the process plant. Media and liner wear rates are based on abrasion indices determined for each ore type. The abrasion indices can be classified as Project No.: AAJV001 Page 19-127 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia slightly abrasive and grinding media consumption rates are considered typical for similar grinding circuit configurations on similar ore types. The maintenance consumables operating cost is estimated as a proportion of the overall plant capital cost. The factor used for this operating cost estimate is approximately 4% of the process plant direct capital cost estimate. This percentage is slightly higher than typically expected for similar projects in a Western country, because of the relatively high proportion of the capital cost that is represented by mechanical equipment. The plant equipment costs are based on Western supply and the maintenance consumables estimate reflects sourcing of spare parts from the original vendors. Investigations during the next study phase may find cost savings from equivalent local supply. A "learning curve" is applied to consumption of reagents and consumables. Unit consumption rates of 15% and 5% above average were assumed for Years 1 and 2, respectively. Unit prices for reagents and consumables for supply ex-Beijing, were obtained by either IMMI or AAJV from China. These prices are significantly lower than those typically charged for similar reagents and consumables in Western countries. The pricing and specifications for all reagents and consumables require confirmation during the next study phase. Prices for replacement crusher and mill liners were estimated by factoring typical Western prices by the ratio of prices for Chinese supplied grinding media to those for Western supplied grinding media. Freight costs of $34 /t, comprising $10 /t rail freight from Beijing to Bautou and $24 /t road freight from Baotou to Oyu Tolgoi were applied to the ex-Beijing prices for the purpose of the operating cost estimates. Process plant power consumption was derived from the equipment list compiled for each of the process plant options. A load factor, typical of that used in similar process plants, was applied to an installed power to estimate a power draw. Overall process plant power consumption was estimated to be approximately 30 to 35 kWh/t, which is considered typical for concentrator type processing plants treating similar ores. A power cost of $0.025 /kWh was provided by IMMI, based on power supplied from China. A process manning schedule was developed to fulfil the requirements for technical, supervisory, operating and administrative personnel to operate and maintain the Project No.: AAJV001 Page 19-128 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia process plant. In addition to some permanent positions, expatriates will be engaged to fulfil specialist and training roles during the initial years of the operation. It is envisaged that a blend of technical expertise and training skills will be required amongst the short term expatriates and, for the purpose of these estimates, that they will be sourced from North America and Australia. Salaries for Mongolian employees are based on IMMI's current Mongolian experience and those for expatriates on IMMI's experience in Myanmar. On-costs of 78% are applied to senior expatriate staff, 51% to temporary expatriates and senior Mongolian staff and 38% other employees. Process manning levels for the Case 2c range from 151 to 171. For Case 4a, they range from 162 to 209, and for the Case 4b, from 232 to 258. Allowances for general consultants and off-site laboratory analyses are included in the operating cost estimate. The costs for concentrate transport are included in the financial model. The unit rate that was used, $0.053 /t-km, was based on a cost model developed for concentrate transport in Australia. The cost model was then adjusted with Mongolian inputs to reflect a transport cost within Mongolia and China. AAJV assumed that a third party would own and operate the concentrate transfer facility at the railhead at Wuyuan. AAJV determined the unit rate for this facility by estimating its capital and operating costs and including sufficient margin to provide the contractor with an IRR of 10%. The estimated unit handling costs for Cases 2a, 4a, and 4b were $7.43 /t, $2.52 /t and $2.23 /t, respectively. 19.13.5 GENERAL AND ADMINISTRATION The General and Administration (G&A) component includes administration at the Oyu Tolgoi mine site, general services and maintenance at the site, water supply operations and maintenance, office operations in Ulaanbaatar, Dalanzadgad and Baotou. G&A costs were estimated from first principals for the three scenarios and Table 19.13-10, Table 19.13-11 and Table 19.13-12 summarise the average costs over the life of the project. Project No.: AAJV001 Page 19-129 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.13-10: AVERAGE G&A OPERATING COSTS - CASE 2c
CATEGORY $M/YEAR $/t ------------------------------------------ OYU TOLGOI SITE Administration 8.5 0.46 Yard Crew 1.3 0.07 Heating 0.2 0.01 Water Supply 3.6 0.20 Sub-total 13.6 0.73 Ulaanbaatar Office 0.5 0.03 Baotou Office 0.3 0.02 Dalanzadgad Office 0.1 0.01 TOTAL G& A 14.5 0.78 ------------------------------------------
TABLE 19.13-11: AVERAGE G&A OPERATING COSTS - CASE 4a
CATEGORY $M/YEAR $/t --------------------------------------------- OYU TOLGOI SITE Administration 10.9 0.30 Yard Crew 1.5 0.04 Heating 1.1 0.03 Water Supply 5.4 0.15 Sub-total 18.9 0.53 Ulaanbaatar Office 0.5 0.01 Baotou Office 0.3 0.01 Dalanzadgad Office 0.1 0.00 TOTAL G& A 19.9 0.55 ---------------------------------------------
TABLE 19.13-12: AVERAGE G&A OPERATING COSTS - CASE 4b
CATEGORY $M/YEAR $/t --------------------------------------------- OYU TOLGOI SITE Administration 11.0 0.29 Yard Crew 1.5 0.04 Heating 1.3 0.03 Water Supply 5.5 0.14 Sub-total 19.3 0.50 Ulaanbaatar Office 0.5 0.01 Baotou Office 0.3 0.01 Dalanzadgad Office 0.1 0.00 TOTAL G& A 20.2 0.53 ---------------------------------------------
Project No.: AAJV001 Page 19-130 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The G&A costs were divided into categories for administration including labour, vehicles, power and consumables, yard crew including labour and mobile equipment, heating requirements and water supply. A similar cost breakdown was developed for offsite offices and workplaces. Site based administration manpower includes a General Manager, administration staff, human resource and training staff, security staff, environmental staff, health and safety staff that includes full time medical doctors. The administration personnel structure is typical for large scale operations located in countries where hard rock mining is practised. A yard crew consisting of general maintenance staff, bus drivers and a tailings crew was also included in the labour component of the cost estimate. The Ulaanbaatar and Dalanzadgad offices are staffed to support recruitment and coordination of travel for site based personnel, as well as liaison with government officials. An office located in Baotou will focus on concentrate sales. Operating and maintenance costs for site vehicles, except for those assigned to mining, were included in the G&A cost estimates. Site vehicle numbers are consistent with vehicle numbers required for a large scale operation and include buses for personnel transport, vehicles for stock movements in the warehouse, plant and maintenance utility vehicles, emergency vehicles and heavy mobile equipment for road maintenance. Vehicles required at the Ulaanbaatar, Baotou and Dalanzadgad regional offices were also included in the cost estimates. Other significant mine site G&A costs include power and maintenance costs associated with heating the offices, camp and underground mine, and supply of water to the mine site. Maintenance costs for these services were based on a 4% factor of the estimated capital costs and power costs were determined from a power-demand estimate and a unit power cost of $0.025 /kWh. Catering costs for all site personnel were included in the G&A cost estimates. They have been based on a quotation from a catering contractor currently operating in the region. The costs for charter flights have been based on an estimate of the number of employees who will be recruited from Ulaanbaatar and the current charter costs for OT. For the purpose of generating the G&A cost estimates, it is assumed that the remaining employees will be transported by bus to Dalanzadgad for their leave breaks. Site consumables were included in the G&A costs, including first aid supplies, safety equipment and clothing, environmental consumables and subscriptions and publications. Project No.: AAJV001 Page 19-131 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Allowances were made general expense items, such as insurance, telecommunications, IT hardware and software, training supplies and business travel. Off-site G&A costs include costs incurred from maintaining the three regional officies in Ulaanbaatar, Baotou and Dalanzadgad. Office rent, consumables, telecommunications and other minor operating costs were included. Project No.: AAJV001 Page 19-132 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.14 FINANCIAL ANALYSIS 19.14.1 INTRODUCTION This section records the economic returns from the Project under the conditions anticipated to be applicable for its development and operation, and analyses the sensitivity of the Project to changes in the key parameters. Mining and processing data, and capital and operating costs, are drawn from other parts of the study and combined with the Project's fiscal regime in an economic model that calculates normal measures of economic return (such as Internal Rate of Return (IRR) and Net Present Value (NPV)) and reports key production statistics for the Project. Project NPV and IRR are presented for a number of different combinations of copper and gold prices, and NPV at a number of discount rates. Sensitivity of the project to changes in a number of key parameters is also reported. Clarifications and explanations of assumptions applied in the modelling of the Project are included in Section 19.14.8. 19.14.2 INTRODUCTION TO THE FINANCIAL ANALYSIS Financial analysis for the project was conducted through discounted cashflow modelling, based on data contained in the study. Results are reported for a number of cases, viz: - Case 4b: 40 million t/a throughput over 27 years - Case 2c: 20 million t/a throughput over 19 years - Case 4a: 20 million t/a expanding to 40 million t/a throughput by Year 5 of operations, over 29 years Cases 4a and 4b are based upon open pit mining from the Central, Southwest and South deposits, open pit mining from the Hugo South deposit and underground mining from the Hugo North deposit. Case 2c considers only open pit mining from the Central, Southwest and South deposits. All cases are based upon processing of all ore through a concentrator to produce a copper concentrate containing gold that is sold to smelters outside Mongolia (anticipated to be in China). Project No.: AAJV001 Page 19-133 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia The three cases were assessed independently over a range of metal prices to test alternate development strategies for IMMI. However, for the purpose of this report, Case 4a using metal prices of $0.90 /lb of copper and $400 /oz of gold was the base case. The modelling was conducted both pre tax and after tax, without escalation or inflation, and on the basis that the project will be wholly equity funded. The currency adopted for the evaluation, and which is used throughout, is United States dollars. No provisions were made for exchange rate variations. Evaluation has encompassed the period from mid 2005, when it is anticipated that the final decision to commit to the Project will be made, through a 30 month development period and operating life of 19 - 29 years depending on the case. Expenditure to be made up to mid 2005 (including drilling programmes and exploration from the Hugo North shaft) were treated as sunk costs, as has expenditure to date, and excluded from this analysis. Costs considered as sunk but which are yet to be spent are anticipated to total some $160 million for Cases 4a and 4b and some $55 million for Case 2c. The Net Present Values were calculated based on discounting cashflows to mid 2005 rather than the current date and exclude all costs sunk at that time. The project cash flow was prepared based on a fiscal regime advised by IMMI to be applicable to the project, although it is anticipated that this regime will be modified somewhat by the Stability Agreement that is currently being negotiated with the Government of Mongolia. The evaluation was conducted on a project only basis. 19.14.3 PROJECT RESULTS TABULATION OF PROJECT RESULTS The following anticipated project results are tabulated below for each of the cases considered: - NPV at discount rates of 5.0%, 7.5% and 10.0% - IRR - Payback Period - Total Cash Cost after gold credits Only after tax results are reported. Project No.: AAJV001 Page 19-134 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CASE 4b (40 MT/A) TABLE 19.14-1: NPV - 5.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ----------------------------------------------------------------------------------------- 0.80 1,166 1,232 1,298 1,364 1,430 COPPER 0.90 1,902 1,969 2,035 2,101 2,167 PRICE 1.00 2,639 2,705 2,772 2,838 2,904 $US/lb 1.10 3,376 3,442 3,508 3,574 3,640 1.20 4,112 4,179 4,245 4,311 4,377 -----------------------------------------------------------------------------------------
TABLE 19.14-2: NPV - 7.5% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ------------------------------------------------------------------------------------ 0.80 632 687 742 797 852 COPPER 0.90 1,183 1,238 1,293 1,348 1,403 PRICE 1.00 1,735 1,790 1,845 1,900 1,955 $US/lb 1.10 2,286 2,341 2,396 2,451 2,506 1.20 2,837 2,892 2,947 3,002 3,057 ------------------------------------------------------------------------------------
TABLE 19.14-3: NPV - 10.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ------------------------------------------------------------------------------------ 0.80 270 316 363 409 456 COPPER 0.90 692 739 785 832 878 PRICE 1.00 1,114 1,161 1,208 1,254 1,301 $US/lb 1.10 1,537 1,583 1,630 1,677 1,723 1.20 1,959 2,006 2,052 2,099 2,145 ------------------------------------------------------------------------------------
TABLE 19.14-4: IRR
IRR GOLD PRICE $US/OZ (%) 350 375 400 425 450 --------------------------------------------------------------------------------- 0.80 12.7 13.2 13.7 14.3 14.8 COPPER 0.90 16.5 17.0 17.5 18.0 18.5 PRICE 1.00 19.8 20.3 20.8 21.2 21.7 $US/lb 1.10 22.8 23.3 23.7 24.2 24.7 1.20 25.6 26.0 26.5 27.0 27.5 ---------------------------------------------------------------------------------
Project No.: AAJV001 Page 19-135 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-5: PAYBACK PERIOD
PAYBACK GOLD PRICE $US/OZ (YEARS) 350 375 400 425 450 --------------------------------------------------------------------------------- 0.80 7.3 7.0 6.8 6.5 6.3 COPPER 0.90 6.1 5.8 5.6 5.4 5.1 PRICE 1.00 5.1 4.9 4.8 4.7 4.6 $US/lb 1.10 4.6 4.5 4.4 4.3 4.2 1.20 4.2 4.1 4.1 4.0 3.9 ---------------------------------------------------------------------------------
TABLE 19.14-6: TOTAL CASH COSTS (AFTER GOLD CREDITS) - LIFE OF MINE
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ------------------------------------------------------------------------------------------ 0.80 0.46 0.45 0.45 0.44 0.44 COPPER 0.90 0.46 0.46 0.45 0.45 0.44 PRICE 1.00 0.47 0.46 0.45 0.45 0.44 $US/lb 1.10 0.47 0.46 0.46 0.45 0.44 1.20 0.47 0.46 0.46 0.45 0.45 ------------------------------------------------------------------------------------------
TABLE 19.14-7: TOTAL CASH COSTS (AFTER GOLD CREDITS) - AVERAGE FIRST 5 YEARS
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ------------------------------------------------------------------------------------------ 0.80 0.42 0.39 0.37 0.34 0.32 COPPER 0.90 0.42 0.40 0.37 0.34 0.32 PRICE 1.00 0.43 0.40 0.37 0.35 0.32 $US/lb 1.10 0.43 0.40 0.38 0.35 0.32 1.20 0.43 0.40 0.38 0.35 0.33 ------------------------------------------------------------------------------------------
TABLE 19.14-8: TOTAL CASH COSTS (AFTER GOLD CREDITS) - AVERAGE FIRST 10 YEARS
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ------------------------------------------------------------------------------------------ 0.80 0.44 0.42 0.41 0.39 0.37 COPPER 0.90 0.44 0.43 0.41 0.39 0.38 PRICE 1.00 0.44 0.43 0.41 0.40 0.38 $US/lb 1.10 0.45 0.43 0.41 0.40 0.38 1.20 0.45 0.43 0.42 0.40 0.38 ------------------------------------------------------------------------------------------
Project No.: AAJV001 Page 19-136 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CASE 2C (20 MT/A) TABLE 19.14-9: NPV - 5.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ---------------------------------------------------------------------------------- 0.80 236 287 337 387 438 COPPER 0.90 421 472 522 572 622 PRICE 1.00 605 655 705 755 805 $US/lb 1.10 787 837 887 937 987 1.20 969 1,019 1,069 1,118 1,168 ----------------------------------------------------------------------------------
TABLE 19.14-10: NPV - 7.5% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 -------------------------------------------------------------------------------------- 0.80 128 170 212 255 297 COPPER 0.90 274 316 359 401 443 PRICE 1.00 419 461 503 545 587 $US/lb 1.10 564 606 647 689 731 1.20 707 749 791 832 874 --------------------------------------------------------------------------------------
TABLE 19.14-11: NPV - 10.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ------------------------------------------------------------------------------------ 0.80 48 84 120 156 192 COPPER 0.90 166 202 238 273 309 PRICE 1.00 282 318 354 389 425 $US/lb 1.10 399 434 470 505 541 1.20 514 549 585 621 656 ------------------------------------------------------------------------------------
TABLE 19.14-12: IRR
IRR GOLD PRICE $US/OZ (%) 350 375 400 425 450 ------------------------------------------------------------------------------------ 0.80 12.0 13.4 14.9 16.3 17.8 COPPER 0.90 16.2 17.6 18.9 20.2 21.5 PRICE 1.00 19.9 21.2 22.4 23.7 24.9 $US/lb 1.10 23.2 24.4 25.6 26.8 28.0 1.20 26.3 27.5 28.6 29.8 30.9 ------------------------------------------------------------------------------------
Project No.: AAJV001 Page 19-137 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-13: PAYBACK PERIOD
PAYBACK GOLD PRICE $US/OZ (YEARS) 350 375 400 425 450 ----------------------------------------------------------------------------------------- 0.80 4.7 4.4 4.1 3.9 3.6 COPPER 0.90 4.1 3.9 3.7 3.5 3.3 PRICE 1.00 3.7 3.5 3.3 3.1 3.0 $US/lb 1.10 3.3 3.2 3.0 2.7 2.4 1.20 3.0 2.7 2.4 2.2 2.0 -----------------------------------------------------------------------------------------
TABLE 19.14-14: TOTAL CASH COSTS (AFTER GOLD CREDITS) - LIFE OF MINE
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ----------------------------------------------------------------------------------------------- 0.80 0.44 0.42 0.40 0.38 0.36 COPPER 0.90 0.44 0.42 0.40 0.38 0.36 PRICE 1.00 0.45 0.43 0.40 0.38 0.36 $US/lb 1.10 0.45 0.43 0.41 0.39 0.36 1.20 0.45 0.43 0.41 0.39 0.37 -----------------------------------------------------------------------------------------------
TABLE 19.14-15: TOTAL CASH COSTS (AFTER GOLD CREDITS) - AVERAGE FIRST 5 YEARS
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ----------------------------------------------------------------------------------------------- 0.80 0.25 0.21 0.17 0.13 0.09 COPPER 0.90 0.26 0.22 0.17 0.13 0.09 PRICE 1.00 0.26 0.22 0.18 0.13 0.09 $US/lb 1.10 0.26 0.22 0.18 0.14 0.09 1.20 0.26 0.22 0.18 0.14 0.10 -----------------------------------------------------------------------------------------------
TABLE 19.14-16: TOTAL CASH COSTS (AFTER GOLD CREDITS) - AVERAGE FIRST 10 YEARS
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ------------------------------------------------------------------------------------------------- 0.80 0.39 0.36 0.32 0.29 0.26 COPPER 0.90 0.39 0.36 0.33 0.29 0.26 PRICE 1.00 0.40 0.36 0.33 0.30 0.26 $US/lb 1.10 0.40 0.37 0.33 0.30 0.27 1.20 0.40 0.37 0.33 0.30 0.27 -------------------------------------------------------------------------------------------------
Project No.: AAJV001 Page 19-138 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CASE 4a (20 - 40 Mt/a) TABLE 19.14-17: NPV - 5.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 -------------------------------------------------------------------------------------- 0.80 1,234 1,296 1,357 1,419 1,481 COPPER 0.90 1,910 1,971 2,033 2,095 2,156 PRICE 1.00 2,584 2,646 2,707 2,769 2,831 $US/lb 1.10 3,259 3,320 3,382 3,443 3,505 1.20 3,933 3,995 4,056 4,118 4,179 --------------------------------------------------------------------------------------
TABLE 19.14-18: NPV - 7.5% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ----------------------------------------------------------------------------------- 0.80 732 783 833 883 933 COPPER 0.90 1,224 1,274 1,324 1,374 1,424 PRICE 1.00 1,714 1,764 1,814 1,864 1,915 $US/lb 1.10 2,204 2,254 2,305 2,355 2,405 1.20 2,695 2,745 2,795 2,845 2,895 -----------------------------------------------------------------------------------
TABLE 19.14-19: NPV - 10.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ----------------------------------------------------------------------------------- 0.80 402 444 485 527 569 COPPER 0.90 768 810 852 893 935 PRICE 1.00 1,134 1,176 1,217 1,259 1,301 $US/lb 1.10 1,500 1,541 1,583 1,625 1,666 1.20 1,865 1,907 1,948 1,990 2,032 -----------------------------------------------------------------------------------
TABLE 19.14-20: IRR
IRR GOLD PRICE $US/OZ (%) 350 375 400 425 450 ----------------------------------------------------------------------------------- 0.80 15.7 16.3 17.0 17.6 18.3 COPPER 0.90 19.9 20.5 21.2 21.8 22.5 PRICE 1.00 23.6 24.2 24.9 25.5 26.2 $US/lb 1.10 27.0 27.6 28.2 28.9 29.5 1.20 30.1 30.7 31.3 32.0 32.6 -----------------------------------------------------------------------------------
Project No.: AAJV001 Page 19-139 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-21: PAYBACK PERIOD
PAYBACK GOLD PRICE $US/OZ (YEARS) 350 375 400 425 450 ------------------------------------------------------------------------------------------- 0.80 7.6 7.4 7.1 6.9 6.7 COPPER 0.90 6.5 6.3 6.2 6.0 5.9 PRICE 1.00 5.8 5.7 5.6 5.5 5.4 $US/lb 1.10 5.4 5.3 5.2 5.1 5.0 1.20 5.0 5.0 4.9 4.8 4.7 -------------------------------------------------------------------------------------------
TABLE 19.14-22: TOTAL CASH COSTS (AFTER GOLD CREDITS) - LIFE OF MINE
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 --------------------------------------------------------------------------------------------- 0.80 0.47 0.46 0.46 0.45 0.44 COPPER 0.90 0.47 0.46 0.46 0.45 0.45 PRICE 1.00 0.47 0.47 0.46 0.46 0.45 $US/lb 1.10 0.48 0.47 0.46 0.46 0.45 1.20 0.48 0.47 0.47 0.46 0.45 ---------------------------------------------------------------------------------------------
TABLE 19.14-23: TOTAL CASH COSTS (AFTER GOLD CREDITS) - AVERAGE FIRST 5 YEARS
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ----------------------------------------------------------------------------------------------- 0.80 0.43 0.39 0.35 0.32 0.28 COPPER 0.90 0.43 0.39 0.36 0.32 0.28 PRICE 1.00 0.43 0.40 0.36 0.32 0.28 $US/lb 1.10 0.44 0.40 0.36 0.32 0.29 1.20 0.48 0.47 0.47 0.46 0.45 -----------------------------------------------------------------------------------------------
TABLE 19.14-24: TOTAL CASH COSTS (AFTER GOLD CREDITS) - AVERAGE FIRST 10 YEARS
TOTAL CASH GOLD PRICE $US/OZ COSTS ($/lb) 350 375 400 425 450 ------------------------------------------------------------------------------------------------- 0.80 0.43 0.41 0.38 0.36 0.34 COPPER 0.90 0.43 0.41 0.39 0.36 0.34 PRICE 1.00 0.43 0.41 0.39 0.37 0.34 $US/lb 1.10 0.44 0.41 0.39 0.37 0.35 1.20 0.44 0.42 0.39 0.37 0.35 -------------------------------------------------------------------------------------------------
Project No.: AAJV001 Page 19-140 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.14.4 COMPARISON OF CASES NPV Of the larger throughput cases, Case 4a produces higher NPV's than Case 4b at low metal prices and lower NPV's at higher metal prices. Below a $0.90 /lb copper price Case 4a NPV's are higher, and above $1.10 /lb Case 4b NPV's are stronger at all discount rates considered. Case 2c NPV's are generally less than one third of those of Cases 4a and 4b, reflecting the absence of Hugo South and Hugo North ore from this Case. IRR Case 4a IRR's are some 3 - 5 percentage points higher than those of Case 4b, across the full range of metal price combinations considered. This is likely due to the staged nature of capital expenditure for Case 4a - it requires initial capital of some $530 M and total capital over the life of mine of $1,820 M. Case 4b requires some $1,170 M initial capital and $2,030 M over the total life of mine. Case 2c IRR's are only marginally (1 - 4 percentage points) lower than Case 4a, but are generally higher (by 0 - 3 percentage points) than Case 4b. PAYBACK PERIOD Due to the lower capital costs, Case 2c capital is recovered quicker than for either of the larger throughput cases. Case 2c payback period is 2.0 - 4.7 years depending upon prevailing metal prices. Payback periods for Case 4a (4.7 - 7.6 years) are some 0.3 - 0.8 years more than for Case 4b. TOTAL CASH COSTS Total cash costs after gold credits over the life of the mine are essentially identical for the larger throughput cases - within the $0.44 - $0.48 /lb Cu range depending upon the gold price. Case 2c shows the lowest total cash costs, at $0.36 - $0.45 /lb Cu over the same gold price range. Over the first 5 years of operations, the total cash costs after gold credits are somewhat lower for all three cases considered, due to the early processing of ore with Project No.: AAJV001 Page 19-141 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia higher gold grades. At higher gold prices, the higher gold credits available result in significantly lower cash costs. Above $400 /oz gold, Case 4a shows lower cash costs than Case 4b, due to its reduced throughput in the first 5 years of operations and the resulting higher proportion of gold in the ore fed to the mill. Case 2c shows very low cash costs (less than $0.26 /lb Cu for all metal prices considered) due to the gold grades in the mill feed. SUMMARY - Case 4a appears to offer the best returns of the three cases, producing the best IRR's, and the best NPV's below $0.90 /lb copper, although Case 4b offers higher NPV's at copper prices above $1.10 /lb. - Case 4a, however, has the longest payback period (over 5 years at current metal prices). The Case 4b payback period is over 4 years at current metal prices. - Case 2c offers much reduced NPV's over the other cases, but IRR's approaching those of Case 4a. Payback of capital is achieved in less than 3 years at current metal prices. 19.14.5 PROJECT CASHFLOW Cumulative cashflow charts for each of the cases are shown in Figure 19.14-1, Figure 19.14-2 and Figure 19.14-3. FIGURE 19.14-1: CASE 4B - CUMULATIVE CASHFLOW CHART - 100% EQUITY [FIGURE] Project No.: AAJV001 Page 19-142 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia FIGURE 19.14-2: CASE 2C - CUMULATIVE CASHFLOW CHART - 100% EQUITY [FIGURE] FIGURE 19.14-3: CASE 4A - CUMULATIVE CASHFLOW CHART - 100% EQUITY [FIGURE] Project No.: AAJV001 Page 19-143 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Total cashflow available from Cases 4a and 4b is very similar (total cashflow $3.2 B - $9.3 B depending upon metal prices), although cashflow is achieved a little earlier from Case 4b (reflected in the shorter payback period). Maximum negative cashflow is some $530 M - $880 M for Case 4a and $1.2 B for Case 4b. Case 2c total cashflow is restricted to some $0.6 B - $2.1 B over the same metal price range, with the maximum negative cashflow being some $500 M. The operating surplus and cashflows for Case 4a at copper prices of $0.90 /lb and $1.00 /lb are shown in Table 19.14-25. Project No.: AAJV001 Page 19-144 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-25: OPERATING SURPLUS AND CASHFLOWS (CASE 4a)
CU AU YEARS $/lb /OZ -3 -2 -1 1 2 3 4 5 6 ------------------------------------------------------------------------------------------- Operating Surplus 0.90 400 0 0 0 72 241 32 156 377 396 Cum. Operating Surplus 0 0 0 72 312 344 500 877 1,273 After tax cashflow -41 -268 -221 -41 156 -168 -142 326 337 Cum. after tax cashflow -41 -309 -529 -570 -414 -582 -724 -399 -62 Operating Surplus 1.00 400 0 0 0 87 263 50 183 453 485 Cum. Operating Surplus 0 0 0 87 350 400 582 1,036 1,520 After tax cashflow -41 -268 -221 -26 179 -150 -116 399 412 Cum. after tax cashflow -41 -309 -529 -556 -377 -527 -643 -244 167 CU AU YEARS $/lb /OZ 7 8 9 10 11 12 13 14 ---------------------------------------------------------------------------------------------- Operating Surplus 0.90 400 420 414 468 388 482 597 504 522 Cum. Operating Surplus 1,693 2,107 2,575 2,963 3,445 4,042 4,546 5,068 After tax cashflow 325 330 374 320 335 388 318 329 Cum. after tax cashflow 263 593 967 1,287 1,621 2,010 2,328 2,657 Operating Surplus 1.00 400 504 486 554 479 587 717 609 632 Cum. Operating Surplus 2,025 2,511 3,065 3,544 4,131 4,848 5,457 6,089 After tax cashflow 396 392 446 397 408 472 392 406 Cum. after tax cashflow 564 956 1,402 1,799 2,206 2,678 3,070 3,476
CU AU YEARS $/lb /OZ 15 16 17 18 19 20 21 22 23 24 ------------------------------------------------------------------------------------------------------------ Operating Surplus 0.90 400 671 525 256 139 67 244 359 278 295 68 Cum. Operating Surplus 5,739 6,264 6,520 6,658 6,725 6,969 7,329 7,607 7,902 7,970 After tax cashflow 424 346 159 94 29 151 250 209 213 67 Cum. after tax cashflow 3,081 3,427 3,586 3,680 3,709 3,860 4,110 4,319 4,532 4,599 Operating Surplus 1.00 400 805 636 325 189 105 311 438 341 359 96 Cum. Operating Surplus 6,894 7,530 7,855 8,043 8,148 8,459 8,897 9,238 9,597 9,693 After tax cashflow 516 425 210 130 56 196 304 253 258 89 Cum. after tax cashflow 3,993 4,418 4,628 4,758 4,814 5,010 5,314 5,568 5,826 5,915 CU AU YEARS $/lb /OZ 25 26 27 28 29 30 ----------------------------------------------------------------------------------- Operating Surplus 0.90 400 78 78 78 79 30 0 Cum. Operating Surplus 8,048 8,126 8,205 8,283 8,314 8,314 After tax cashflow 59 59 58 58 3 9 Cum. after tax cashflow 4,659 4,718 4,776 4,834 4,837 4,846 Operating Surplus 1.00 400 103 103 103 103 44 0 Cum. Operating Surplus 9,796 9,899 10,003 10,106 10,150 10,150 After tax cashflow 77 76 76 76 13 10 Cum. after tax cashflow 5,992 6,068 6,144 6,220 6,233 6,243
Project No.: AAJV001 Page 19-145 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.14.6 PRODUCTION AND COSTS Production and cost data is summarised in Table 19.14-2, Table 19.14-27, and Table 19.14-28. TABLE 19.14-26: PRODUCTION
ITEM UNIT CASE 4b CASE 2c CASE 4a ------------------------------------------------------------------------------------------------------- Project Life Years 27 19 29 Quantity Ore Treated kt 1,033,820 351,756 1,038,707 Metal Produced - Gold in Concentrate koz 5,652 3,580 5,713 - Copper in Concentrate kt 8,830 1,817 8,844 - Silver in Concentrate koz 11,394 9,177 11,459
The production data reflects that both Cases 4a and 4b are based upon very similar mined ore tonnages and grades, and recoveries to concentrate. Case 2c production reflects that neither Hugo South nor Hugo North ore has been included. TABLE 19.14-27: OPERATING COSTS
ITEM UNIT CASE 4b CASE 2c CASE 4a ------------------------------------------------------------------------------------------------------------------------ UNIT MINING COSTS Open pit mining $/t ore mined 2.47 1.77 2.81 Underground mining - Hugo North $/t ore mined 1.83 1.83 ON SITE COSTS PER TONNE ORE TREATED Open pit mining $/t ore treated 2.04 1.77 2.33 Underground mining - Hugo North $/t ore treated 0.31 0.00 0.31 Process $/t ore treated 2.41 2.36 2.23 General and administration $/t ore treated 0.53 0.78 0.55 Mongolian Government royalty $/t ore treated 0.38 0.29 0.38 Immovable property tax $/t ore treated 0.07 0.03 0.06 TOTAL UNIT ON SITE COSTS $/T ORE TREATED 5.73 5.24 5.86 TOTAL OPERATING COSTS Total site operating costs $M 5,470 1,730 5,638 Mongolian government royalty $M 389 102 390 Immovable property tax $M 68 10 60 Concentrate transport costs $M 1,197 314 1,208 Treatment/refining charges/penalties $M 3,245 737 3,251 TOTAL OPERATING COSTS $M 10,369 2,892 10,547
Lowest on site operating unit costs are achieved for Case 2c, largely due to the higher stripping ratio associated with the Hugo South open pit for Cases 4a and 4b. Project No.: AAJV001 Page 19-146 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-28: CAPITAL COSTS
ITEM UNIT CASE 4b CASE 2c CASE 4a -------------------------------------------------------------------------------------- INITIAL CAPITAL Open pit mining $M 364 114 123 Underground mining - Hugo North $M 0 0 0 Process plant $M 317 157 158 Tailings & waste rock $M 16 8 8 Ancillary buildings $M 21 20 20 On site infrastructure $M 72 34 34 Off site infrastructure $M 78 44 44 EPCM Consultants + AAJV $M 79 40 40 Owner's costs $M 45 20 20 Contingency $M 138 52 61 Other $M 37 20 21 Total Initial Capital $M 1,167 508 529 Expansion Capital (Years 1-4) $M 679 Deferred/sustaining capital $M 867 131 613 Total Capital $M 2,034 639 1,822 Working Capital - to end Year 1 $M 22.5 11.7 9.9 SUNK COSTS Costs prior to May 2003 $M 34 34 34 Feasibility Study $M 34 34 34 Drilling Programmes $M 21 21 21 Drilling - Hugo North $M 10 0 10 Hugo North - Exploration from Shaft $M 97 0 97 TOTAL SUNK COSTS $M 196 89 196
The lowest initial capital ($508 M) is required for Case 2c, although Case 4a requires only an additional $21 M to become operational (a total of $529 M). However, a further $679 M is required to expand Case 4a to 40 Mt/a throughput. Both initial capital ($1,170 M) and total capital ($2,030 M) are highest for Case 4b, which commences production at a throughput of 40 Mt/a. While initial working capital for Case 4a is shown at less than $10 M, the requirement increases to some $34 M with the increase of production to 40 Mt/a in Year 5 of operations. Working capital for all cases is based upon daily shipping of concentrate and 20 days for transport and full payment, together with an average creditor payment period of 20 days. Should three months elapse before payment, the working capital requirements would increase to $105 M, $53 M and $50 M for Case 4b, 2c and 4a respectively, with Case 4a requiring $72 M working capital for the Year 5 expansion. Project No.: AAJV001 Page 19-147 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-29: PRODUCTION STATISTICS
ITEM UNIT CASE 4b CASE 2c CASE 4a --------------------------------------------------------------------------------------------------- Tonnes ore treated / tonne of concentrate t/t 34.4 50.5 34.5 Cash operating costs / lb copper (before gold credits) $/lb Cu 0.53 0.72 0.54 Total cash costs / lb copper (before gold credits) $/lb Cu 0.55 0.75 0.56 Treatment & refining charges/lb payable copper $/lb Cu 0.17 0.18 0.17
19.14.7 SENSITIVITY ANALYSIS FRAMEWORK For each of the cases evaluated, sensitivity analysis has been performed to assess the sensitivity of after tax Net Present Value (NPV) and Internal Rate of Return (IRR) to changes in the following key parameters. Gold Price +/- $25 per ounce Copper Price +/- $0.05 per pound Initial Capital +/- 10% approximately Smelter Charges +/- $10/wmt, $0.01/lb Gold Recovery +/- 1% point
This analysis has been conducted varying only one of the above parameters at any one time. Combined beneficial or adverse changes in parameters will have more marked effects on the returns from the project than individual variations. RESULTS The sensitivity of each Case to variations in the key parameters is summarised below. TABLE 19.14-30: CASE 4b
IRR CHANGE NPV CHANGE ($M) PARAMETER CHANGE (%) @ 10% DISCOUNT -------------------------------------------------------------------------------- Gold Price +/- $25/oz 0.5% 47 Copper Price +/- $0.05/lb 1.8% 211 Initial Capital +/- $117 M 1.5% 97 Smelter Charges +/- $10/wmt, $0.01/lb 0.9% 116 Gold Recovery +/- 1% point 0.1% 12
Project No.: AAJV001 Page 19-148 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-31: CASE 2c
IRR CHANGE NPV CHANGE ($M) PARAMETER CHANGE (%) @ 10% DISCOUNT -------------------------------------------------------------------------------- Gold Price +/- $25/oz 1.3% 36 Copper Price +/- $0.05/lb 1.9% 59 Initial Capital +/- $50 M 2.5% 42 Smelter Charges +/- $10/wmt, $0.01/lb 1.1% 34 Gold Recovery +/- 1% point 0.3% 8
TABLE 19.14-32: CASE 4a
IRR CHANGE NPV CHANGE ($M) PARAMETER CHANGE (%) @ 10% DISCOUNT -------------------------------------------------------------------------------- Gold Price +/- $25/oz 0.7% 42 Copper Price +/- $0.05/lb 2.0% 183 Initial & Expansion Capital +/- $120 M 2.1% 82 Smelter Charges +/- $10/wmt, $0.01/lb 1.1% 100 Gold Recovery +/- 1% point 0.2% 10
Analysis shows that the project is particularly sensitive to changes in copper price, and less sensitive to the same percentage variations in operating and capital costs. The project IRR tends to be equally sensitive to capital cost and operating costs, but NPV is more sensitive to operating costs than capital costs. Variations in treatment and refining charges have a significant effect upon the returns from the project, but for the same percentage change, the project is less sensitive to these charges than to variations in total operating costs. Since gold contributes only some 10% of metal value for Cases 4a and 4b, those cases are relatively insensitive to gold price. Case 2c is somewhat more sensitive to gold price, since more than 25% of metal value is in gold. 19.14.8 BASIS FOR FINANCIAL ANALYSIS Financial analysis for the project has been carried out under the following assumptions. ANALYSIS PERIOD Evaluation encompassed the period from mid 2005, when it is anticipated that the final decision to commit to the Project will be made, through a 30 month development period and operating life of 19 - 29 years (depending upon the case). Project No.: AAJV001 Page 19-149 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia REVENUE Revenue calculation was based upon production of a differing grade copper concentrate for the separate ore types - Central Secondary, Secondary Chalcopyrite, Southwest, South, Hugo South and Hugo North. The milling of different ore types was scheduled to maximise near term cashflows. Each ore type was scheduled in three different NSR categories, with the lower value ore generally stockpiled for treatment after more profitable ore, towards the end of the mine life. Metal recovered for each ore type was based on application of appropriate recoveries to each ore block. Total concentrate production and metal in concentrate each year is a summation of the production from each ore type. Concentrate grades used are shown in Table 19.14-33. TABLE 19.14-33: CONCENTRATE GRADES BY ORE SOURCE Central Secondary, Central Chalcopyrite 24.1% Southwest, South 28.1% Hugo South, Hugo North 30.6%
Gold grades in the concentrate were calculated based upon metal recovered. While there is little metallurgical data available with respect to silver, a concentrate grade of 41 g/t was assumed for all Central Secondary, Central Chalcopyrite, Southwest and South ore. Project results were calculated for all combinations of the following: - Copper prices: $0.80 per pound to $1.20 per pound in $0.10 increments - Gold prices: $350 per ounce to $450 per ounce in $25 increments - Discount rates: 5.0%, 7.5% and 10.0%. It was assumed that all concentrate will be sold in the period in which it is produced. Delays in the receipt of income and in payment of creditors are dealt with in the estimation of Working Capital requirements. It was assumed that all production will be transported as concentrate to smelters located outside Mongolia (most likely in China). Metal deductions in smelting/refining and realisation costs (which comprise transport of concentrate to the rail head and rail transport to customers, and treatment and refining charges from smelters) were deducted in calculation of Net Revenue. The smelter terms adopted for the Scoping Study are shown in Table 19.14-34. Project No.: AAJV001 Page 19-150 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia TABLE 19.14-34: SMELTER TERMS Payable: Copper: 100.0% Cu content subject to minimum deduction of 1 unit Gold: 100.0% Au content subject to minimum deduction of 1.0 g/t Silver: 100.0% Ag content subject to minimum deduction of 31.0 g/t Treatment Charge: $60/wmt concentrate Refining Charges Copper: $0.06 per pound of recovered copper Gold: $6.00 per ounce of recovered gold Silver: $0.45 per ounce of recovered silver Penalties: As + Fl Assumed $4.00/wmt.
Realisation costs have been estimated based upon the following information: - Road transport costs from mine to rail head of $0.053 /t-km over a distance of 300 km. - Rail transport costs from rail head to customer of $20.00 /wmt. OPERATING COSTS Operating costs were separated into production costs and Government fees and charges. All open pit and underground mining costs occurring prior to the commencement of production were capitalised. Production costs are shown in some detail in Schedule A of the economic model. GOVERNMENT FEES AND CHARGES Advice from IMMI has identified the Government royalty on sales and Immovable Property Tax as the Government fees and charges applicable to the project. IMMI has advised that the royalty is calculated at 2.5% of sales. The Immovable Property Tax is calculated at 0.6% of the written down value of Immovable Property each year. Immovable Property was assumed to comprise the capital expenditure category that is depreciated over 40 years. PRODUCTION AND OPERATING SURPLUS The Production Surplus comprises Net Revenue less on site production costs. Project No.: AAJV001 Page 19-151 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Operating Surplus comprises Net Revenue less both on site operating costs and Government fees and charges. CAPITAL COSTS Capital costs were separated for open pit and underground mining, process plant, tailings and waste rock, ancillary buildings, on site infrastructure, off site infrastructure and indirects. These costs include initial capital, deferred capital and sustaining capital required during the life of the project. Expenditure (including feasibility study costs, cost of drilling programmes and underground exploration from the Hugo North shaft) to be made prior to mid 2005, when it is anticipated that the final decision to commit to the Project will be made, were treated as sunk costs, as has all expenditure to date, and excluded from this analysis. Costs considered as sunk but which are yet to be spent are anticipated to total some $160 million for Cases 4a and 4b and some $55 million for Case 2c. An amount of $28.2 million was included at the end of the Project for rehabilitation, but is likely to be covered by the salvage value of plant at that time. Working Capital was calculated based on the following assumptions and advice from IMMI: - Continuous shipment of concentrate from site once production commences. - 20 days for transport of concentrate to customers, and payment. - Average 20 days for creditor payment, based upon labour being paid on 14 days, and the remainder of creditors being paid on 30 days. - Warehouse inventory comprising 3 months of process consumables. Any delay in the receipt of payment from smelters has the potential to significantly affect working capital requirements. In calculating Working Capital, it was assumed that all operating costs commence at the time production commences and that all initial consumables have been provided. Changes in Working Capital were calculated for each period during the Project. The working capital requirement for the expansion case (Case 3) increases substantially with production at increased throughput levels in Year 5 of operations. Project No.: AAJV001 Page 19-152 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia ESCALATION Given the accuracy of a Scoping Study, no escalation of operating costs, capital costs or metal prices was included as part of the financial analysis. CORPORATE TAXATION Calculation of Corporate Tax was based upon advice provided by IMMI that a tax holiday will exist for the first 5 years of operations, followed by a further 5 years at half the corporate tax rate. Beyond year 10, corporate tax will be paid at the full rate of 30% of taxable income. In calculating taxable income deductions were allowed for: - On site operating costs and off site operating costs (including concentrate transport) - Interest, depreciation, "Immovable Property Tax", royalties, ongoing exploration (expensed each year) - G&A expenses in Ulaanbaatar Depreciation rates are based upon the following broad categories contained in the Income Tax Law of Mongolia: - Buildings, Construction 40 years - Machinery or Equipment 10 years - Special Purpose Machinery used for export or mining production 5 years - Other Assets 10 years Due to the absence of detailed information, considerable interpretation was required in the application of different depreciation rates to various capital categories. WITHHOLDING TAX Withholding tax is payable on interest at a rate of 20%. However, as it was assumed that all cash requirements will be equity funded, no specific allowance has been made for withholding tax. VAT AND CUSTOMS DUTY VAT is payable at 15%, but as exports are zero rated, all VAT is recovered. Therefore VAT cashflow is a timing issue only and was ignored. Customs Duty is generally 5%, but is zero for mining equipment. Project No.: AAJV001 Page 19-153 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia CASH FLOW Pretax Project Cashflow was calculated by deducting operating and capital cashflows from Net Revenue. After Tax Project Cashflow has Corporate Tax deducted from Pretax Cashflow. NET PRESENT VALUES (NPV) NPV's for the project were calculated from the annual pretax cash flow streams and the after tax cashflow stream, discounted to mid 2005 at a range of discount factors. Cashflows exclude all costs sunk prior to mid 2005. INTERNAL RATE OF RETURN (IRR) IRR's were calculated based on the annual net pretax and after tax cash flow streams. PAYBACK PERIOD The Payback Period was calculated as the time required from commencement of Year 1 for the cumulative net cash flow to turn positive. PRODUCTION STATISTICS The following production statistics were calculated for each year of the project and for the project as a whole: - Tonnes ore treated / tonne of concentrate - Net revenue / tonne ore treated - Net revenue / tonne of concentrate - Cash operating costs / lb copper (after gold credits) - Total cash costs / lb copper (after gold credits) - Cash operating costs / lb copper (before gold credits) - Total cash costs / lb copper (before gold credits) Cash Operating costs include all operating cash costs, government fees and charges and concentrate transport costs. Total Cash Costs have the Mongolian government royalty added to cash operating costs. Gold credits represent that value of gold included in the concentrate at the spot price. Project No.: AAJV001 Page 19-154 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 19.14.9 DOUBLE TAX HOLIDAY IMMI has indicated that, as part of its negotiations with the government of Mongolia, there is potential for the expansion in Case 4a to be treated as a separate project for taxation purposes, and to benefit from a tax holiday of the same nature as applies to the initial project at the lower throughput (i.e., no tax payable for the first 5 years and half tax payable for the ensuing 5 years). A preliminary assessment has been conducted to indicate the extent of the benefit that may be obtained from such an eventuality, and the results from the project could then be anticipated to be as shown in Table 19.14-35. TABLE 19.14-35: NPV - 10.0% DISCOUNT RATE
NPV GOLD PRICE $US/OZ ($M) 350 375 400 425 450 ---------------------------------------------------------------- 0.80 448 491 534 577 619 COPPER 0.90 832 875 917 960 1,003 PRICE 1.00 1,215 1,258 1,301 1,344 1,386 $US/lb 1.10 1,598 1,641 1,684 1,727 1,770 1.20 1,982 2,025 2,067 2,110 2,153
19.14.10 DEBT FINANCING CASE AAJV evaluated the effect of project financing on the IRR for Case 4a. This financial model incorporates the following assumptions: - Debt to equity ratios of 70:30 and 60:40 and interest rates of 5% and 7% - Financing of both initial and expansion capital via one debt facility - Working capital and sunk costs excluded from the financing - Drawdown of debt after full equity for the combined facility has been spent - Repayments commence in Year 5 - Repayment of principal in 5 equal annual instalments - Deferral and roll of interest until the end of Year 4 - Arrangement Fee - 2.25% of facility amount - Commitment Fee - 1.25% of undrawn balance each year - Agency Fee - $75,000 /a The equity portion of the IRR for Case 4a at the two debt to equity ratios and two interest rates are shown for copper prices of $0.90 /lb and $1.00 /lb in Table 19.14-36. Note that the intent of this analysis was to explore the impacts of project financing, and Project No.: AAJV001 Page 19-155 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia was not intended to indicate that IMMI will be able to access a loan facility with the assumed terms. TABLE 19.14-36: IMPACT OF DEBT ON CASE 4a IRR
BASE CASE 60 DEBT : 40 EQUITY 70 DEBT : 30 EQUITY ---------------------------------------------------------------------------- Interest rate 5% 7% 5% 7% $0.90 /lb 21.2 25.6 25.0 28.7 27.8 $1.00 /lb 24.9 30.2 29.6 33.8 33.0
Project No.: AAJV001 Page 19-156 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 20.0 OPPORTUNITIES AND RISK 20.1 INTRODUCTION Because Oyu Tolgoi is at an early phase of its development, with data collection, compilation and analysis ongoing, information in some areas is insufficient for design. This situation is normal for most projects at the scoping-level, and to complete the analysis AAJV and the various subconsultants made assumptions to advance the study. Confirmation of these assumptions will form a major component of the Feasibility Study. However, at this phase there is a level of uncertainty, which is reflected in the relative accuracy of the results. The uncertainty also manifests itself in four different situations: - For some project elements, there may be greater upside or downside potential than is reflected in the relative accuracy. - Some of the input parameters that are beyond the control of the project (e.g. metal prices, exchange rates) may fluctuate outside the projected accuracy. - Alternatives have been identified for certain components, which, upon further evaluation, may provide superior results than the options used in this study. - The social, political, and economic environment that forms the basis of the project, which IMMI has limited ability to control or influence, may be altered. For example, recent Mongolian legislation has significantly reduced the corporate tax rate with obvious positive benefits to the project(1). This section identifies several of the opportunities and risks that were identified relative to the plan presented in the study, outlines the work done to date on them (if any), and describes what additional work must be done to assess whether they should be included in the final Feasibility Study. 20.2 OPPORTUNITIES 20.2.1 FAST TRACK DEVELOPMENT There is an opportunity to "fast track" the development of the project by rapid implementation of Case 2c, which would then form the first phase of a staged ------------------- (1) This legislation, which was enacted soon enough that it was incorporated into the study, reduced the corporate tax rate from 40% to 30%. Project No.: AAJV001 Page 20-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia development. To accomplish this, the feasibility study would have to be completed in 2004 and some long lead items procured as quickly as possible. Based on such a scenario, the operation could be in production as early as 2006. 20.2.2 OREBODY EXTENSIONS AND NEW DISCOVERIES Since 2001, the extensive drilling program has recorded outstanding success in discovering new, high grade orebodies and extending the known mineralisation. The northern limit of the Hugo Dummett deposit has yet to be defined and all the deposits are open at depth. Several areas of mineralisation have been encountered in limited geotechnical drilling outside the zones discovered to date, including the periphery of the open pit areas, which will be investigated in 2004. There are a number of geophysical and geological targets that have not been tested and offer potential for new discoveries, including some of the proposed facilities locations. Condemnation drilling planned for these sites may encounter additional mineralisation. The above offers excellent potential to increase the resource, thus extending the mine life, optimising metal output, and increasing project profitability. 20.2.3 TREATMENT OF LOW GRADE STOCKPILES The open pit mine plans were all based on a variable cut-off strategy, with lower grade material stockpiled and fed as the primary plant feed at the end of the mine life. In Cases 4a and 4b, the resulting stockpiles will peak at 310 million tonnes grading 0.41% Cu and 0.15 g/t Au. An opportunity may exist to construct incremental plant capacity to treat this material sooner in the mine life. During the next phase of study, this variable cut-off strategy should be optimised, including assessing the relative economics of building incremental milling capacity combined with potentially larger open pits. 20.2.4 OPEN PIT MINING (GRD MINPROC) As confidence in the resources increase, detailed cut-off grade optimisation studies are recommended to determine the optimal cut-off values through time. This would verify the stockpile quantities, mining rates and the use of capital for open pit equipment. During the course of the study the parameters used in the pit optimisation of Southwest and Central ultimate pit limits were revised. The application of the latest parameters in the optimisation is likely to increase the recoverable resources in these areas and extend the life for all the cases. Project No.: AAJV001 Page 20-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Mine and process schedules may be further optimised when additional data are available to identify ore domains exhibiting throughput and recovery variations. Further metallurgical testing is required to assess the flotation recovery of lower value ores and optimise cut-off estimates. As the open pits will have significantly long haul roads, the implementation of trolley-assisted trucks could provide some operating and capital cost savings. Some trolley-assist operations have reported increases in speed of 80% and fuel savings of 50% on the uphill runs of the trucks. Indicative pricing of the trolley installation suggests substation and overhead line costs of $1.5 million /km. Truck conversion costs would be specific to the final truck selected for the operation. Trolley-assist would require wider haul roads to allow truck passing, resulting in additional waste stripping. The pit designs would need to be prepared specifically for trolley-assist. Further work will need to be undertaken to examine the savings and additional costs to determine the suitability of trolley-assist to Oyu Tolgoi. Much of the material within the open pit shells has not been drilled, and there is potential to convert some of the waste within the pits to mill feed. This would have the double effect of both reducing the strip ratio within the existing pits and improving the likelihood that larger pits would be economic. The Scoping Study has provided a basis for further optimisation of the open pits. Another pit increment at Southwest and Central could add 203 million tonnes, grading 0.47% copper and 0.44 g/t gold with a 2.4:1 strip ratio, to the open pit mining inventory. Analysing this larger pit with the current financial results and the potential to reduce waste costs through trolley-assist and in-pit crushing could show this increment to be economic. IMMI is preparing a supplemental mine plan to include this material, plus an additional pushback at Hugo South. This would add more than 5 years to the project life at the 40 Mt/a rate. This plan will be incorporated into a further study that is to be submitted to the Mongolian Government by February 20, 2004 pursuant to the granting of the mining licences for Oyu Tolgoi. 20.2.5 IN-PIT CRUSHING A preliminary analysis of in-pit crushing of both ore and waste was completed. In this limited study, a combined ore and waste crusher would be placed at a point 200 m below surface in the Hugo South open pit to handle 60 million t/a of rock. The resulting reduction in the haulage truck fleet would save approximately $55 million in truck capital costs over the life of the mine and reduce the haulage operating costs by approximately $15 million per year. The capital cost of the crushing and conveying system would be approximately $70 million, while its operating cost would be $0.09 /t crushed. Based on these results, this system was included in Case 4b. Project No.: AAJV001 Page 20-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia There are a number of opportunities to optimise this system. These include multiple crushers that would be moved as required to maximize the utilisation of the system, establishing the optimum locations of the crushers, and developing the production forecast to take maximum advantage of the system. The concept could also be extended to the open pits at Southwest and Central. In addition, if a paste tailings system proves to be viable, such a system would facilitate co-disposal of tailings and waste rock, which in turn could significantly reduce the structure required to impound these waste materials. Detailed analysis of in-pit crushing and conveyor handling of ore and waste will be a major component of the Feasibility Study. 20.2.6 UNDERGROUND MINING A portion of the +1% copper shell at Hugo North was not incorporated into the current mine plan. Additional analysis may indicate that this material would form a viable component of the underground mine production. The lower portion of the Southwest deposit below the open pit contains a high grade gold core. A preliminary evaluation indicates that this zone could be amenable to block caving and would contribute approximately 38 Mt grading 0.5% copper and 1.2 g/t gold. 20.2.7 ENHANCEMENT OF EXISTING GRINDING CAPACITY The grinding modules adopted by AAJV for the Scoping Study consist of one 12.2 m (40 ft) SAG mill with a 22 MW motor and two 7.9 m by 11.7 m ball mills each with a 15.5 MW motor. The SAG mill discharge pebbles are to be crushed and returned to the SAG mill as a re-circulating load. It is estimated that this re-circulating load may range up to 20% or more. The ultimate capacity of each module with the optimum mix of Oyu Tolgoi ores has been estimated at 20 Mt/a and this is the basis for the economic projections in the Scoping Study. The nature of the circulating load of SAG mill pebbles is unknown at this stage and will only be determined with any confidence during a pilot plant run. Having survived a trip through the SAG mill, it can be assumed that these pebbles are competent and likely to have an average work index above the norm, perhaps with a Bond index of 20 kWh/t or more. As a result this material would also demand above average grinding power in the subsequent ball mills. In some other operations, SAG mill pebbles represent barren or very low grade rock. The grade of the Oyu Tolgoi pebbles will not be known until piloting but inspection of core would indicate that the pebbles would carry some grade, although perhaps lower Project No.: AAJV001 Page 20-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia than the ore average. Thus, at this stage, it cannot be assumed that the pebble product can be discarded. During discussions, grinding experts have expressed the opinion that removal of the pebble re-circulating load may allow for an additional 10% new feed to be introduced to the primary mill, which would increase the overall throughput rate per module from 20 Mt/a to 22 Mt/a. If the pebbles were to be removed from the circuit they would need to be treated. Crushing and adding them directly back into the ball mills would place a heavy burden on these secondary mills and likely negate any potential to increase the SAG mill feed. However, if the pebbles are crushed and ground in a dedicated ball mill, this would give a true increase in overall capacity. It is likely that two stages of crushing and some surge capacity would be required before feeding a ball mill but this installation is not expected to be too capital intensive. A 10% increase in throughput with modest capital represents an upside that will be investigated during the Feasibility Study. 20.2.8 LARGER GRINDING MILLS The approach taken in the Scoping Study has been to incorporate the largest proven grinding mills into conventionally configured SAG mill/ball mill modules. This approach is defendable but, considering the rapid advances in grinding technology, finite element stress modeling and quality control on materials, a plan for a long-life world-class development that utilises the next generation of mills should be evaluated. Until 1996, the largest SAG mills that had been installed were 11 m (36 ft) diameter. At that time, there were 17 in the world. During 1996, two 11.5 m (38 ft) (Freeport and Olympic Dam) and one 12 m (40 ft) (Cadia) SAG mills were placed on order and all came on line in 1998. Since then an additional two 11.5 m mills (El Teniente II and CVRD/Sossego) have been installed; another 12 m mill is being commissioned (Collahuasi). As a result, this new generation of large mills has been well proven in the industry and has provided the technology springboard to move to yet larger mills. In fact, 13 m (42 ft) and 13.5 m (44 ft) mills have been in the design stage for over 10 years and have received positive reports from detailed scrutiny by potential customers. The driving force behind larger mills is the benefit to both capital and operating costs from economies of scale. A single-line 13.5 m SAG mill concept may offer a good compromise between the higher capital cost of Case 4b and higher throughput than would be possible with Case 4a. This may provide the best option to optimise the grade of the Oyu Tolgoi deposits. Project No.: AAJV001 Page 20-5 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 20.2.9 SMELTING One of the logistical advantages of the Oyu Tolgoi Project is the proximity to the Chinese copper smelting markets. Investigations by IMMI indicate that although the Chinese smelters import large quantities of concentrate, a number of them are running below capacity. Notwithstanding the above, there are a number of reasons for considering the construction of a copper smelter at the Oyu Tolgoi site. These include: - The currently defined resource base will support a long mine life. It is possible that the known resources will be extended and there appears to be good potential for new discoveries nearby. - Whilst the Chinese markets are close in relative terms, land transport distances to some of the smelters in southern China are several thousand kilometres. Production of on-site blister copper will reduce the transport costs. - IMMI has yet to conduct a marketing study to confirm that sufficient capacity will be available in China to absorb the projected concentrate production. A dedicated smelter would help to mitigate this marketing risk. - The custom smelter treatment and refining charges (TC/RC) fluctuate over time; a smelter at Oyu Tolgoi would mitigate some of the risk associated with such fluctuations. - With the reduced transport costs, the concentrate could be reduced by pulling the flotation circuit harder, thus providing an opportunity to increase metal recovery. - Large segments of the Oyu Tolgoi deposits are high in gold and much of this will report to the concentrate. Standard custom smelter practice is to deduct the first 1 gm/t of gold in concentrate and then pay for a percentage of the remainder. This loss, plus the exposure to inadequate gold metallurgical accounting at the smelters, will be to IMMI's detriment. An onsite smelter could improve the gold revenue that accrues to the project. - Both arsenic and fluorine have been shown to be present in concentrates to a greater or lesser extent. Although the pending metallurgical test program will work toward minimizing these elements in concentrate, it is possible that both may, at times, reach levels at which smelters will charge penalties or, at worst, may reject some shipments. An on-site smelter designed to deal with Oyu Tolgoi specific concentrates could mitigate this risk. Project No.: AAJV001 Page 20-6 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia IMMI has initiated a preliminary feasibility analysis for a smelter and refinery to be conducted in parallel to the Oyu Tolgoi Feasibility Study. As a precursor to this work, IMMI contacted Ausmelt Limited (Ausmelt), an internationally recognized expert in smelting technology that has recently constructed smelters in China. Ausmelt provided IMMI with basic costs and parameters for smelter construction and operation. IMMI then developed a revised version of the financial model for Case 4a to include a smelter, based on the following assumptions: - Throughput rate of 500,000 t/a of concentrate - Sulphuric acid production 500,000 t/a - Metal recoveries of 98.8% Cu and 98.7% Au, as advised by Ausmelt - Treatment charge of $0.075/lb of copper, as advised by Ausmelt (approximates $48.00 /t of concentrate) - Refining charge of $0.06/lb of payable copper, as per existing model - Acid payment $10.00/t net of transport - Transport costs as per existing model, i.e., $0.053/t-km over 300 km to the rail head and $20.00/t to a refinery - Smelter operational in Year 5 - Capital cost of $220 million, based on an estimate of $175 million provided by Ausmelt for a Western 300,000 t/a smelter - Metal prices of $0.90/lb for copper and $400/oz for gold Based on these assumptions, the NPV at a 10% discount rate would rise from $852 million to $896 million and the IRR would drop from 21.2% to 20.5%. Given the inherent opportunities identified with a smelter, these results provide encouragement that the next phase of study should be continued. 20.2.10 IMPROVED METAL RECOVERY There may be opportunities to enhance metal recovery, particularly gold, through different reagent regimes. The flowsheet incorporates both flash flotation and gravity gold recovery, but the impact of these components is not well understood and consequently no additional copper or gold recovery has been provided for to date. Further testwork planned as part of the feasibility study may indicate increased recoveries of these metals. Project No.: AAJV001 Page 20-7 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 20.2.11 HEAP LEACHING/SX-EW Three of the deposits, Southwest, South and Central, contain some copper mineralisation that is amenable to recovery by heap leaching followed by solvent extraction-electro-winning (SX-EW). The most significant is a blanket of secondary sulphides, mainly chalcocite, in the upper part of Central. Considerable metallurgical testing, including column testing, and conceptual planning has been carried out on this material by IMMI. Below the chalcocite, which leaches well, is an extensive covellite zone but response from the column tests on this material has been poor. At Southwest and South, the leachable minerals are high acid consuming oxides and have not yet been assessed in any detail. The total Inferred Resource of chalcocite material at Central using a 0.43% Cu cut-off is estimated at 28 million tonnes at an average grade of 0.95% copper. Drilling underway at the time of writing was designed to upgrade this resource to the Measured and Indicated categories. Column testing indicates that approximately 75% recovery can be achieved by heap leaching chalcocite ore if crushed to 20 mm. In the main Oyu Tolgoi development cases, the Central chalcocite zone has been scheduled as a portion of the feed to the concentrator. Flotation testing has indicated that copper recovery and concentrate grade for this material is somewhat reduced compared to chalcopyrite ore from Southwest. This is mainly due to intimate association with pyrite. This narrowing of the differential between flotation and leaching recoveries could provide the project with an opportunity. There is potential to construct a heap leach plant shortly after the concentrator is commissioned that would treat the supergene ore from Central. This would have the effect of bringing on line an additional stream of copper early in the mine life. This would also expose the deeper covellite ore for mining and treatment in the concentrator when this feed material is required to fill the mine production schedule. The total capital cost of a facility that would include a 3.5 Mt/a per annum heap leach and 20,000 t/a of cathode SX-EW plant would be approximately $45 million, based on an estimate prepared by ENFI with adjustments to include construction indirects, engineering, and contingency. In the medium to longer term, the project will generate substantial low grade stockpiles and mineralised waste dumps. Having a SX-EW plant on site would facilitate the establishment of a run-of-mine dump leach operation to recover copper at a low incremental cost. Another potential opportunity would be to use sulphuric acid from a future smelter to leach oxide copper ore that will be available from South and, to a lesser extent, Southwest and Central. Project No.: AAJV001 Page 20-8 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 20.2.12 MOLYBDENUM AND RHENIUM Molybdenum assays have been routinely carried out on drill core samples as the Oyu Tolgoi deposits have been explored and drilled out. Whilst some zones are low in molybdenum, there are very substantial zones, in many cases over hundreds of metres, in which the molybdenum assay is in the 100 to 200 ppm range or higher. Molybdenite (MoS(2)) is highly responsive to flotation and reports to the copper concentrate. The molybdenum deportment has been assessed on five concentrate samples generated from composites. These concentrates showed a spread of molybdenum values from quite low to 6,200 ppm confirming that in some areas a significant level of molybdenum will report to the concentrate. Many porphyry deposits contain some molybdenum and a number of concentrators, including Erdenet, produce by-product molybdenum concentrate. Some of these mines operate their molybdenum circuit when the molybdenum content reaches a certain level in the copper concentrate or when the molybdenum price is up. The USBM indicates that the price paid for molybdenum concentrate (containing 85% MoS(2) - a premium is paid for higher grade concentrates) is about $6 /kg of contained molybdenum. This is actually the feedstock for conversion to molybdenum oxide and the current price of this is about $6 /lb. IMMI understands that Erdenet is considering the installation of a molybdenum oxide plant and there may be an opportunity for a joint venture with Oyu Tolgoi. By way of example, the recoverable value of MoS(2) in an ore containing 150 ppm Mo is approximately $0.60 /t. If this level were to be achieved one third of the time, during which the molybdenum circuit would operate, it is conceivable that MoS(2) worth $8 million per annum could be produced for Case 4b and $4 million per annum for Case 2c. Producing molybdenum oxide could provide additional value. From these values, the operating cost for the circuits would need to be subtracted. In summary, molybdenum appears to offer potential as a useful by-product contributor. Another metal that occurs in small quantities in many porphyry systems is rhenium. Rhenium currently sells at approximately $1,305 /kg. At this stage there is very little information on rhenium in the Oyu Tolgoi orebody but this will be investigated. 20.2.13 INTEC The Intec process, a chloride based hydrometallurgical leach, has been under development for a number of years and is now gaining industry acceptance. Intec Limited is 24% owned by Ivanhoe Mines. Project No.: AAJV001 Page 20-9 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia This process has the potential to be installed at Oyu Tolgoi or in northern China to treat high gold concentrates and limited quantities of concentrates containing penalty elements that may be produced from time to time. Many of the advantages noted with smelting would also apply to a hydrometallurgical plant. 20.2.14 PASTE TAILINGS Because IMMI was quick to identify water consumption as a key project issue, significant work has been done to identify sources and to reduce, to the extent possible, the cost of water supply. However, water consumption will continue to be a major component of costs and a potential environmental issue. The largest consumer of water is the tailings facility, both as it gets locked in with the settled solids and through evaporation. One alternative tailings disposal method that has been identified would be to use paste tailings. IMMI has commenced some initial analysis of paste tailings, based on the concept that it would be tested at a pilot level during initial production. 20.3 RISKS 20.3.1 PENALTY ELEMENTS A number of elements if present in a copper concentrate can cause issues with the receiving smelter and can be penalised. The elements penalised in copper concentrates are typically those that would cause problems with: - Quality of the anode, which in turn impacts on the quality of the cathode - Emissions issues - Acid quality - Recovery rates for payable metals - Ability to dispose of associated by-products - Loss of copper recovery due to discharge of flue dusts acting as penalty element bleed Should the penalty element levels be too high, some smelters may reject the concentrate. Project No.: AAJV001 Page 20-10 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia Arsenic and fluorine are present in the Oyu Tolgoi deposits and in some tests the levels at which they report to the copper concentrate are such that smelters apply penalty charges. As an allowance for this eventuality, AAJV applied a $4 /t of concentrate penalty to all concentrates. There are no standard penalty clauses. The striking level for penalties will vary from smelter to smelter and will be a function of the concentrates available on the market and the ability of the smelter to handle the penalty elements or resulting compounds. These issues will be explored in detail as part of a marketing study proposed for the feasibility study. However, general market research suggests striking levels for arsenic start at 0.15 to 0.25% and 0.03 to 0.06% for fluorine. Rejection levels vary similarly. A number of concentrates produced during the execution of the various testwork programs contained levels of arsenic and fluorine in excess of typical smelter striking levels. A small number of samples representing small intersections produced concentrates that may be at rejection levels if they were not blended out. As noted in Section 16, the arsenic is contained in copper-arsenic sulphides that float as readily as the copper sulphides. Therefore, there is limited opportunity to prevent the arsenic in the plant feed from reporting to the concentrates. AAJV and the subconsultants assumed that the mine feed and/or concentrates would be blended to smooth the arsenic levels and thus eliminate or minimize penalties. Other alternatives would be to fume off the arsenic or to leach those concentrates that do contain high levels of arsenic. AAJV conducted a high level evaluation of such a process, with the leachate then being fed to an autoclave at elevated temperature and pressure to fix the arsenic. Such processes are practical and have been employed at other concentrators to reduce arsenic levels in concentrates. Also, as reported in Section 16, fluorine exists in the deposits as both fluorite and topaz. Since neither of these minerals is hydrophobic, they appear to be reporting to the concentrate as middling particles in the sub 25 (micro) size range. Some testwork was conducted to assess the opportunity to eliminate the fluorite and topaz during flotation. This work was inconclusive; further analysis will be conducted during the Feasibility Study testwork. Options such as using column cells for concentrate cleaning will also be investigated. As noted in Section 16, if excessive fluorine present as fluorite reports to the concentrate, a leach circuit could be constructed to reduce fluorine levels. Fluorine that is present as topaz would not be removed by such as circuit. Project No.: AAJV001 Page 20-11 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia IMMI has assayed for arsenic in a large number of samples and modeled preliminary data in the resource model. Some fluorine assays have also been completed. However, to date the mine plan has not been constrained by the need to blend feed to achieve arsenic and fluorine targets. This will have to be done during the Feasibility Study, which could influence the mining sequence and annual contributions from the various deposits. Increased costs and reduced initial copper and gold grades could result. In summary, additional work has been identified to mitigate the issues raised by arsenic and fluorine. Construction of a smelter for Oyu Tolgoi concentrate would almost certainly obviate a number of penalty element issues. 20.3.2 RESOURCE DEFINITION Other than the core of the Southwest deposit, which is defined as Indicated, this Preliminary Assessment was based on Inferred resources. Thus the study carries a high degree of uncertainty. IMMI is currently conducting an infill drill program at South, Southwest and Central (and to a lesser extent at Hugo South) to address this uncertainty. Previous infill drilling has had minimal impact on the resource estimate as it has been upgraded, and thus it is reasonable to anticipate similar results with this program. Nonetheless, until the work is completed, the uncertainty cannot be eliminated. The issue is probably of greater import in the Hugo Dummett deposit, particularly the Hugo North zone. Here the drilling is more widely spaced than at the other deposits and there is greater emphasis on the high grade core. It should be noted that the opportunity for resource expansion discussed in Section 20.2.1 might offset any changes in grade or tonnage in the deposits as they have been defined for this study. 20.3.3 OPEN PIT MINING (GRD MINPROC) Process schedules assume that lower value mineralisation can be deferred on long-term stockpiles and treated at the end of the mine life with no reduction in metal recovery. Further investigation is required to test this assumption. Mine and concentrator schedules were prepared assuming that the copper concentrate will not require blending and will be saleable, without significant penalties. Initial investigations have shown that concentrate impurities, including arsenic and Project No.: AAJV001 Page 20-12 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia fluorine, occur in the orebody and report to concentrate. Further study is required including: - Estimation and inclusion of in-situ impurities in the resource model(s) - Estimation of impurities reporting to concentrate - Mine and process scheduling to blend or exclude unsuitable mineralisation to ensure appropriate concentrate quality. The potential risk is that the mining sequence may change materially, or, in the extreme case, some potentially economical mineralisation may be sterilised. 20.3.4 CHINA FACTOR During the Scoping Study, AAJV, IMMI, and the various subconsultants expended considerable effort to understand and quantify the opportunities to reduce project costs by sourcing equipment, material, and labour from China. Several trips were made to various Chinese mines and contractors as part of this program. To assist with the capital cost estimate, a detailed bill of quantities was presented to three Chinese contractors. During one of the trips to China, AAJV personnel met with these contractors to assess their capabilities and to assist them in understanding the bill of quantities. AAJV thus obtained consistent pricing that is of sufficient quality to support this study. AAJV also believes that the contractors who were visited demonstrated the capability to execute a project like Oyu Tolgoi. AAJV used these costs to adjust the capital and operating cost estimates from Western-based projects. AAJV believes that the costs reductions that were identified are real in China. However, while other companies have been successful with smaller projects in China, no company has constructed a mining project of the magnitude of Oyu Tolgoi in Mongolia using Chinese contractors and supply. It will be critical during the Feasibility Study that the means of capturing the China Factor be identified. The Chinese RMB is currently fixed to the US dollar. The Chinese trade surplus with the United States and the overall vigour of the Chinese economy is causing some pressure to be placed on China to revalue their currency. To date, the Chinese government has resisted such pressure and there is no indication that this position will change. However, such a revaluation would cause both operating and capital costs to rise. Project No.: AAJV001 Page 20-13 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 20.3.5 UNDERGROUND MINING Evidence of the importance to the project of the Hugo North underground mine can be seen by comparing the results of Cases 2c and 4a - the higher grade, low cost ore from Hugo North adds significant NPV to the project. However, the Hugo North mine plan was based on information prepared for Hugo South and there is no certainty that block caving will be a viable method for Hugo North. In addition to the resource definition described in Section 20.3.3, several factors may have an impact on this plan as additional data is collected and analysed. MINING PARAMETERS The mining parameters were derived from work completed by SRK for Hugo South, which in turn was based on preliminary data. In particular, minimal oriented core information was available when this analysis was completed and no underground workings have been driven through the deposit. Hugo North would be a deep block cave mine. No consideration was made in the plan to accommodate insitu stress. IMMI is now collecting data to understand the stress regime and this information may impact on the construction of the mine, including support requirements, and on the caving sequence. INFLUENCE OF THE BARREN DYKES A number of large, barren dykes parallel or cross the Hugo North deposit. IMMI has modeled most of the larger of these units, and these were incorporated by AMEC into the November resource model update. Accordingly, the mining tonnage recorded in the Hugo North production forecast includes dilution from these dykes. However, the orientation, continuity and size of these dykes are based on widely spaced drilling and are therefore a matter of conjecture. Dykes that were too small to have been modeled may have a greater influence than is currently envisioned. The greatest impact will probably be the differential caving properties of the dykes compared to the mineralised rocks. The dykes are likely to be stronger than the ore zones and thus will break into larger pieces. This would reduce the drawdown rate that can be achieved at each drawpoint. In addition, the dykes could influence the propagation of the cave. Additional data on the dykes must be acquired to properly engineer the Hugo North block cave. Project No.: AAJV001 Page 20-14 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia PRODUCTION FORECAST The Scoping Study production forecast was driven by deposit geometry and grade. As additional data are available during the Feasibility Study, other factors, such as insitu stress and penalty elements, will be considered. These could result in additional costs, higher dilution, and reduced initial production grades. SCHEDULE The preproduction development schedule for Hugo North contains a number of overlapping activities and significant expenditures will be made prior to finalizing the Hugo North Feasibility Study. In some instances, this work may result in redundant expenditures or sub-optimal choices for development components. COSTS The projected costs for Hugo North are very low compared to other similar operations around the world. The China Factor was a major factor in driving down the capital and operating costs estimates. As noted above, during the Feasibility Study, IMMI needs to develop a more thorough understanding of how the China Factor will be captured. The underground design parameters, as they are developed, will also affect costs, primarily in the areas of ground support, drawdown rate, drawpoint rehabilitation, and development productivity. 20.3.6 CONCENTRATE MARKETING Scoping studies are normally conducted using current market information. For Oyu Tolgoi, this was the practice that was used. In addition, IMMI has conducted a preliminary analysis of the Chinese concentrate market. Macro-economic indicators provide a great deal of encouragement for this project. These show significant projected growth in the Chinese economy for at least the near and medium term that is reflected in increasing demand for commodities, including copper. This demand increase is matched against declining Chinese copper concentrate production. Oyu Tolgoi can help to fill this void, offering a long-term source situated near the market. Thus this study is based on the assumption that IMMI will be able to sell all the copper it produces at Oyu Tolgoi to Chinese customers and that Chinese demand and updating of the Chinese copper smelters will ensure that global market prices and Project No.: AAJV001 Page 20-15 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia potentially reduced treatment and refining charges are realized. However, the global nature of the commodities business could also influence the Chinese market. The project payment for gold is equivalent to that which would be received from Western smelters. Although many of the Chinese smelters have either installed or are installing precious metal recovery circuits, they have not traditionally compensated miners for the level of gold that will be in the Oyu Tolgoi concentrates, particularly in the initial project years. A marketing study is planned for the Feasibility Study. This will be an important aspect to fully understanding how the concentrates will be sold and eliminating the uncertainty with this aspect of the project. Another mitigation measure would be to install a smelter as discussed in Section 20.2.7. 20.3.7 PROCESS PLANT DESIGN The level of certainty of the response of the various deposits to the selected flowsheet and reagent regime varies because of the mixed nature of the metallurgical testwork. Despite this, it is reasonable to expect that the Feasibility Study alterations to the current flotation flowsheet will be within the projected accuracy range of this study. This is less likely to be true for the comminution circuit throughput. This parameter is affected by the day-to-day variations in ore hardness, a factor that varies significantly between the deposits and for which the level of knowledge also varies. Additional testwork is required before the grinding parameters are finalized. This work may result in improvements to the grinding requirements, and hence improved project economics as noted elsewhere in Section 20. Conversely, reductions to throughput rate, if such results were realized, would directly affect project costs and economics. 20.3.8 WATER SUPPLY IMMI identified water supply as a project issue very early and has been conducting various water studies almost continuously for over a year. IMMI's water resource consultant, Aquaterra, has confirmed that, at least at a preliminary stage, sufficient water resources for the project are available within a reasonable distance. Additional work is required to confirm the productivity of the aquifer and the individual bores. However, the initial results are encouraging. Although IMMI believes that the necessary access to water and extraction rights will be forthcoming, uncertainty with respect to water supply will exist until IMMI does actually Project No.: AAJV001 Page 20-16 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia secure the long-term rights to the water and obtains dispensation for lowering the groundwater table. 20.4 OTHER UNCERTAINTIES A number of other uncertainties may influence the project: - The property is in an active seismic zone, and the impact of this on design, and therefore costs, will not be fully understood until the Feasibility Study is complete. - The open pit slopes are based on preliminary data. Shallower slopes, particularly in Hugo South, could have a detrimental impact on mineable tonnage and costs. - The metallurgical testwork may affect the Feasibility Study results. Any variations that are discovered during this work will result in changes to flowsheet design. Thus the length of the testwork program could lengthen the overall project timing. - In some cases, the process parameters, particularly for the Hugo Dummett deposit, are based on minimal testwork. Copper and gold recoveries and concentrate grades may be either higher or lower than currently projected. The grinding circuit throughput rate for Hugo Dummett ore may also vary significantly from current estimates. - The implementation plan, and capital and operating costs depend on utilising Chinese contractors, labour and supply. This may require an accord between the governments of Mongolia and China. - The study is based on purchasing power from China at rates based on a long-term contract. These rates must be negotiated and another agreement reached between the governments of Mongolia and China to confirm the viability of this approach. - The transportation system requires additional analysis. Provision of such infrastructure by third parties, such as a railroad from Tavan Tolgoi to northern China, would have a beneficial impact on the project. The design of the road-based system south from the Mongolia - China border requires further assessment. Resolution of these issues has been identified as an important task for the Feasibility Study. Project No.: AAJV001 Page 20-17 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 21.0 CONCLUSIONS AND RECOMMENDATIONS 21.1 CONCLUSIONS The major conclusions of the Scoping Study are: - The Scoping Study has indicated, subject to the qualifications noted and confirmation of the assumptions used in this report, that Oyu Tolgoi has the potential to be developed into a major mining operation. - Approximately 1.04 billion tonnes of resource, grading 0.95% copper and 0.26 g/t gold, were incorporated into the mine plans. - Within the context of the mining plans developed for the Scoping Study and contingent on conversion of the Inferred resources to Indicated resources, the deposit may sustain production rates of as high as 40 Mt/a. - Initial production could come from conventional open pit mining, which could reduce the time required to develop the project. - Although the underground mine at Hugo North appears attractive, significant additional infill drilling, underground exploration, and geotechnical data collection are necessary to confirm the viability of block caving at this site. - The resource appears amenable to treatment in a conventional flotation concentrator, with current technology and operating practice. - Fluorine and arsenic are present in parts of the deposits and require additional analysis to ensure they do not materially impact on the project. - The scale of the operation lends itself to utilising the largest available mining equipment and comminution circuits currently in operation. - Opportunities have been identified to incorporate copper recovery by heap leaching, solvent extraction-electrowinning. - The project value may be enhanced by construction of a smelter that is designed to treat Oyu Tolgoi concentrates. - The project's proximity to China should reduce the project infrastructure costs. - The capital and operating costs can be significantly reduced over what would be experienced in Western countries if Chinese material and contracting costs can be applied. - The project economics would be enhanced by supply of major infrastructure, including power and transportation, from China. Project No.: AAJV001 Page 21-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia AAJV recommends that if IMMI elects to advance the project to a Feasibility Study, the following work be completed: - Infill drilling should be completed to improve confidence to at least the Indicated category on those resources that are to be exploited by the Feasibility Study. - Metallurgical testwork, including operation of comminution and flotation pilot plants, should be completed on the resources to be incorporated into the Feasibility Study. - The opportunities to improve the project economics through in-pit crushing and trolley-assisted haulage should be further evaluated. - Additional analysis should be completed on Hugo North to confirm the assumptions used in this report prior to completing a Feasibility Study on this deposit. - Negotiations already commenced with the Mongolian and Chinese governments and with third party suppliers to facilitate the construction of the infrastructure necessary to support the Project should be concluded and/or progressed as soon as possible. - A more detailed marketing study should be conducted to confirm payment terms at Chinese smelters and to commence the negotiations of frame contracts to support the Feasibility Study. - A detailed assessment should be conducted to determine how best to capture the "China Factor" on capital and operating costs. - Further planning should be completed on the Hugo North deposit to confirm the mining layouts and establish the basis for on-going exploration. - AAJV concurs that the smelter study already initiated by IMMI be completed. Project No.: AAJV001 Page 21-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia 22.0 REFERENCES AMEC E&C Services Limited, December 2003. Report on the Hugo Dummett Deposit Oyu Tolgoi Project, Mongolia. National Instrument 43-101 Technical Report. AMEC E&C Services Limited, July 2003. Technical Report on the Far North Deposit, Oyu Tolgoi Project, Mongolia. National Instrument 43-101 Technical Report. AMEC E&C Services Limited, February 2003. Technical Report on the Oyu Tolgoi Project, Mongolia. National Instrument 43-101 Technical Report. Cargill, D.G., January 2002. Report on the Oyu Tolgoi Exploration Project, Gobi Region, Mongolia. National Instrument 43-101 Technical Report. SGS Lakefield Research, October 2, 2003. An Investigation into The Recovery of Copper and Gold from Oyu Tolgoi Project Southwest Oyu - Prefeasibility Programme, LR10336-005 - Progress Report No. 7. SGS Lakefield Research, August 6 2003. Progress Report Oyu Tolgoi Far North Test work at SGS Lakefield Research, M Ounpuu, and Email from M Ounpuu to M Lake, Stuart Smith, 19 August, 2003 Titled: Update FNE Testing, including summarised test results, SGS Lakefield Research, July 4, 2003 (Draft). An Investigation into The Recovery of Copper and Gold from Oyu Tolgoi Project Far North Oyu (south part), LR10336-004 - Progress Report No 5. SGS Lakefield Research, February 28, 2003. An Investigation into The Recovery of Copper and Gold from Oyu Tolgoi Project Southwest Oyu and Central Oyu, LR10336-003 - Progress Report No 4. SGS Lakefield Research, February, 2003. Investigation into The Recovery of Copper and Gold from Oyu Tolgoi Project Samples, LR10336-001 - Progress Report No 3. SGS Lakefield Research, December 12, 2001. An Investigation into The Recovery of Copper and Gold from the Oyu Tolgoi Project Samples by Flotation, LR10336-001 - Progress Report No 1. SGS Lakefield Research, LR10336-005 - sample composite and test results only for Southwest deposit. Project No.: AAJV001 Page 22-1 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia SGS Lakefield Research & AR MacPherson Consultants Ltd, October 2, 2003. An Investigation into The Recovery of Copper and Gold from Oyu Tolgoi Project Southwest Oyu - Prefeasibility Programme, LR10336-005 - Progress Report No. 7. SGS Lakefield Research & AR MacPherson Consultants Ltd, August 6, 2003. Progress Report Oyu Tolgoi Far North Test work at SGS Lakefield Research, M Ounpuu. SGS Lakefield Research & AR MacPherson Consultants Ltd, July 14, 2003. Proposed Grinding System based on Small-Scale Data, AR MacPherson Consultants Ltd, Progress Report ARM-0556/LR10044-070. SGS Lakefield Research & AR MacPherson Consultants Ltd, July 4, 2003 (Draft). The Recovery of Copper and Gold from Oyu Tolgoi Project Far North Oyu (south part), LR10336-004 - Progress Report No 5. SGS Lakefield Research & AR MacPherson Consultants Ltd, February 28, 2003. The Recovery of Copper and Gold from Oyu Tolgoi Project Southwest Oyu and Central Oyu, LR10336-003 - Progress Report No 4. SGS Lakefield Research & AR MacPherson Consultants Ltd. LR10336-005 - sample composite and test results only for Southwest deposit. SGS Lakefield Research & Terra Mineralogical Services (TMS), June 17, 2003. Fluorine-Bearing Minerals in Far North Copper Concentrates from "Chalcopyrite/Bornite" Ore, TMS Memo to Malcolm Lake et al, (included in the Lakefield LR10336-004 Progress Report No 5, July 4, 2003 (Draft)). SGS Lakefield Research & TMS, June 6, 2003. Fluorine-Bearing Minerals in Far North Copper Concentrates, TMS Memo to Malcolm Lake et al, (included in the Lakefield LR10336-004 Progress Report No 5, July 4, 2003 (Draft)). SGS Lakefield Research & TMS, June 4, 2003. Determination of Arsenic Carriers and Arsenic Distribution Copper Concentrates from Far North Zone Ore, Oyu Tolgoi Project, Mongolia, TMS Mineralogical Report, Project OT - Metallurgy Program - Arsenic Carriers and Distribution and Distribution - 03APR-004. Project No.: AAJV001 Page 22-2 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia SGS Lakefield Research & TMS, May 12, 2003. Determination of Arsenic Carriers and Arsenic Distribution in One Copper Concentrate from Chalcocite/Bornite Ore from the Far North Zone, Oyu Tolgoi Project, Mongolia, TMS Mineralogical Report, Project OT - Metallurgy Program - Arsenic Carriers and Distribution and Distribution - 03APR-004. SGS Lakefield Research & TMS, May 8, 2003. Mineralogical Examination of Incremental Copper Rougher Concentrate Test Samples from the Oyu Tolgoi Samples 2, 4, 5 and 6, TMS Mineralogical Report, Project OT - Metallurgy Program - Incremental Copper Rougher Concentrates - 03APR-001. SGS Lakefield Research & TMS, April 10, 2003. Oyu Tolgoi - Far North - DDH Samples by Estimated Ore Type, TMS Memo to Maurice Tagami. SGS Lakefield Research & TMS, April 9, 2003. Mineralogical Examination of Drill Core from the Far North Zone of the Oyu Tolgoi Project, Mongolia - Part II, TMS Mineralogical Report, Project Oyu Tolgoi - Ore Characterisation Far North - II - 03JAN-001. SGS Lakefield Research & TMS, March 4, 2003. Mineralogical Examination of F30 and F32 Locked Cycle Tests Samples from Far North Ore, Oyu Tolgoi Project, TMS Mineralogical Report, Project OT - Metallurgy Program - Far North - LCT-F30-32 - 03FEB-003, (included in the Lakefield LR10336-004 Progress Report No 5, July 4, 2003 (Draft)), SGS Lakefield Research & TMS, December 19, 2002. Mineralogical Examination of Drill Core from the Central Zone of the Oyu Tolgoi Project, Mongolia, TMS Mineralogical Report, Project Oyu Tolgoi - Ore Characterisation Central - 02AUG-003/2. SGS Lakefield Research & TMS, December 10, 2002. Mineralogical Examination of Drill Core from the South West Zone of the Oyu Tolgoi Project, Mongolia, TMS Mineralogical Report, Project Oyu Tolgoi - Ore Characterisation Southwest - 02AUG-003/1. SGS Lakefield Research & TMS, December 2, 2002. Gold Bearing Minerals in Drill Core Samples from the South West Zone, TMS Memo to Malcolm Lake et al. SGS Lakefield Research & TMS, December 1, 2002. Mineralogical Examination of Drill Core from the Far North Zone of the Oyu Tolgoi Project, Mongolia, TMS Mineralogical Report, Project Oyu Tolgoi - Ore Characterisation Far North - 02AUG-003/3. Project No.: AAJV001 Page 22-3 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia SGS Lakefield Research & TMS, November 16, 2002. Backscatter Scans (BSE) - OT-LCT49, TMS Memo to Maurice Tagami, (included in the Lakefield Progress Report No 4, February 28, 2003). SGS Lakefield Research & TMS, October 4, 2002. Examination (of) Locked Cycle Test Products, TMS Memo to Maurice Tagami, (included in the Lakefield Progress Report No 4, February 28, 2003). SGS Lakefield Research & TMS, (included in the Lakefield Progress Report No 1, December 12, 2001). Mineralogical Examination and Process Mineralogy of Six Head Samples from the Oyu Deposit, Mongolia, Lakefield Research Project No 10336-001- LIMS:MI5501.OCT01. Project No.: AAJV001 Page 22-4 [AMECAUSENCO LOGO] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia APPENDIX A - DRAWINGS
DRAWING NO. COMPANY DESCRIPTION 1362-G-180 AAJV Site plan - 20 Mtpa Case 1362-G-183 AAJV 20 Mtpa Plant - Layout Sheet 1 1362-G-184 AAJV 20 Mtpa Plant - Layout Sheet 2 1362-G-185 AAJV 20 Mtpa Plant - Mill Building 1362-G-190 AAJV Site plan - 40 Mtpa Case 1362-G-192 AAJV 40 Mtpa Plant - Layout Sheet 1 1362-G-193 AAJV 40 Mtpa Plant - Layout Sheet 2 1362-G-194 AAJV 40 Mtpa Plant - Mill Building Sheet 1 1362-G-195 AAJV 40 Mtpa Plant - Mill Building Sheet 2 1362-MA-108 AAJV Hugo North - -015 mRL Extraction Level 1362-MA-109 AAJV Hugo North - 200 mRL Extraction Level 1362-MA-110 AAJV Hugo North - -265 mRL Extraction Level 1362-MA-111 AAJV Hugo North - -325 mRL Transfer Level 1362-MA-112 AAJV Hugo North - Long Section Pe601-00001-120-RevP2-Layout KP TSF - Embankment Sections & Details
Project No.: AAJV001 [AMECAUSENCO LOGO] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [FLOOR PLAN] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia APPENDIX B - SRK REPORT SRK Consulting, "Oyu Tolgoi Project - Scoping Study Report", January 2004 Project No.: AAJV001 [AMECAUSENCO LOGO] OYU TOLGOI PROJECT SCOPING STUDY REPORT REPORT PREPARED FOR IVANHOE MINES MONGOLIA INC REPORT PREPARED BY [SRK CONSULTING LOGO] Engineers and Scientists JANUARY 2004 STEFFEN, ROBERTSON AND KIRSTEN (AUSTRALASIA) LTD REG NO ABN 56 074 271 720 Trading as SRK Consulting SRK Consulting Oyu Tolgoi Scoping Study Report Page i OYU TOLGOI PROJECT SCOPING STUDY REPORT IVANHOE MINES MONGOLIA INC SRK PROJECT NUMBER IV212 SRK (AUSTRALASIA), 1064 HAY STREET, WEST PERTH WA 6005 WYN JONES; WJONES@SRK.COM.AU JANUARY 2004 Compiled by: Endorsed by: ___________________ _____________________ Project Consultants Principal Authors: Geoff Bull Allan Haines Campbell Baird Sanu Hanspal Wyn Jones Jim Williams Turgis Consulting (South Africa) SRK Consulting Oyu Tolgoi Scoping Study Report Page ii TABLE OF CONTENTS Table of Contents ii List of Figures v List of Tables vi Disclaimer vii 1 MINING GEOTECHNICAL (SRK) 1-1 1.1 Drilling Programme 1-1 1.2 Data Analyses 1-3 1.3 Open Pit Slope Design 1-4 1.3.1 Indicative Overall Slope Angle Recommendations 1-4 1.4 Underground Design Parameters 1-6 1.4.1 Cavability and Minimum Critical Span 1-6 1.4.2 Fragmentation 1-9 1.4.3 Open Stope Design 1-10 1.4.4 Development for Mine Access 1-12 1.4.5 Cave Subsidence limits 1-14 1.5 Requirements for Further Work 1-19 1.5.1 Open Pit Studies 1-19 1.5.2 Underground Studies 1-20 SECTION 1 - APPENDIX 1-22 BOREHOLE DATA 1-22 2 UNDERGROUND MINING 2-69 2.1 Mining Method Selection 2-69 2.1.1 Cavability and Fragmentation 2-70 2.1.2 Open Stope Stability 2-70 2.1.3 Methods Selected 2-70 2.2 Hugo South Deposit 10Mt/a Block Cave Mine Infrastructure 2-71 2.2.1 Shaft, Headgear and Winding Plant 2-71 2.2.2 Shaft Sinking Procedure 2-73 2.2.3 Dewatering Facilities 2-74 2.2.4 Service Water Facilities 2-75 2.2.5 Electrical Reticulation 2-75 2.2.6 Compressed Air 2-77 2.2.7 Potable Water 2-77 2.2.8 Communication Systems 2-77 2.2.9 Underground Workshops 2-77 2.2.10 Ventilation Requirements 2-78 2.2.11 Intake and Return Airway Systems 2-80 2.2.12 Development Ventilation 2-80 2.2.13 Ventilation for Steady State Production 2-81 2.2.14 Climatic and Geothermal Considerations 2-81 2.2.15 Fans 2-81 2.2.16 Health and safety 2-82 2.2.17 Fires, Escape and Rescue 2-82 2.2.18 Capital Cost 2-83 2.2.19 Operating Cost 2-83 2.3 Hugo South Deposit 10Mt/a Block Cave 2-84 2.3.1 Method Description 2-84 2.3.2 Block Cave Design Criteria 2-86 2.3.3 Mined Tonnage Estimate 2-89 2.3.4 Production Schedule 2-89 2.3.5 Dilution and Recovery 2-95
SRK Consulting Oyu Tolgoi Scoping Study Report Page iii 2.3.6 Mine Development 2-98 2.3.7 Scheduling Issues 2-103 2.3.8 Mobile Equipment 2-108 2.3.9 Labour 2-110 2.3.10 Mining Costs 2-112 2.4 China Cost Discount Factors 2-116 2.4.1 Shaft Chinese Cost Discount Factor 2-117 2.4.2 Fixed Capital Plant Items 2-118 2.4.3 Underground Direct Cost - China Cost Discount Factors 2-119 2.4.4 Contractor Rates 2-119 2.4.5 Labour 2-119 2.4.6 Jumbo Development 2-120 2.4.7 Longhole Production Drilling 2-120 2.4.8 Longhole Production Charging 2-120 2.4.9 Trucking and Bogging 2-121 2.4.10 Summary 2-121 SECTION 2 APPENDICES 2-123 2.1 Shaft Sinking Phase 2-123 2.2 Shaft Equipping Phase 2-124 2.3 Shaft Permanent Condition 2-125 2.4 Shaft Vertical Long Section 2-126 2.5 Dewatering Reticulation 2-127 2.6 Electrical Reticulation 2-128 2.7 Capital Expenditure 2-129 2.8 Undercut Level Plan 2-130 2.9 Extraction Level Plan 2-131 2.10 Transfer Level Plan 2-132 APPENDIX 3-133 3 HUGO SOUTH DEPOSIT 5MT/A SUB LEVEL CAVE MINE 3-133 3.1 Mine Infrastructure 3-133 3.1.1 Shaft, Headgear and Winding Plant 3-133 3.1.2 Shaft Sinking Procedure 3-135 3.1.3 Dewatering Facilities 3-136 3.1.4 Service Water Facilities 3-137 3.1.5 Electrical Reticulation 3-137 3.1.6 Compressed Air 3-138 3.1.7 Potable Water 3-139 3.1.8 Communication Systems 3-139 3.1.9 Underground Workshops 3-139 3.1.10 Ventilation Requirements 3-139 3.1.11 Intake and Return Airway Systems 3-142 3.1.12 Development Ventilation 3-143 3.1.13 Ventilation for Steady State Production 3-143 3.1.14 Climatic and Geothermal Considerations 3-143 3.1.15 Fans 3-143 3.1.16 Health and Safety 3-144 3.1.17 Fires, Escape and Rescue 3-144 3.1.18 Capital Cost 3-145 3.1.19 Operating Cost 3-146 3.2 Hugo South Deposit Sub Level Cave 3-146 3.2.1 Method Description 3-146 3.2.2 SLC Design Criteria 3-148 3.2.3 Dilution and Recovery 3-149 3.2.4 Mined Tonnage Estimate 3-149 3.2.5 Primary Development 3-153
SRK Consulting Oyu Tolgoi Scoping Study Report Page iv 3.2.6 Mobile Equipment 3-156 3.2.7 Labour 3-157 3.2.8 Mine Ventilation 3-160 3.2.9 Mining Costs 3-161 SECTION 3 - APPENDICES 3-166 3.1 Shaft Sinking Phase 3-166 3.2 Shaft Equipping Phase 3-167 3.3 Shaft Permanent Condition 3-168 3.4 Shaft Vertical Long Section 3-169 3.5 Dewatering Reticulation 3-170 3.6 Electrical Reticulation 3-171 3.7 Capital Expenditure 3-172 3.8 Production Level Plans 3-173
SRK Consulting Oyu Tolgoi Scoping Study Report Page v LIST OF FIGURES MINING GEOTECHNICAL Figure 1: Plan of Geotechnically Logged Boreholes 1-2 Figure 2: Laubscher Stability Graph 1-8 Figure 3: Relationship between RMR, Fragmentation, Draw Widths and Drawpoint Spacing 1-9 Figure 4: Histogram of N' Values 1-11 Figure 5: Mathews/Potvin Stability Chart 1-12 Figure 6: Inter-relationship of Factors that Determine Cave Subsidence Limits (after Laubscher 1999 1-16 Figure 7: Haines and Terbrugge slope angle chart 1-17 Figure 8: Hugo South and Hugo North Deposits - Cave Subsidence Limit and the Proposed Eastern Decline 1-18 Figure 9: Hugo South and Hugo North Deposits - Cave Subsidence Limits and Proposed Shafts and Ventilation Raisebore 1-19 HUGO SOUTH DEPOSIT 10MT/A BLOCK CAVE MINE Figure 10: 3D schematic of the Block Caves in the Hugo South and Hugo North Deposits 2-85 Figure 11: Extraction level layout showing projection of undercut cross-cuts on the level above. 2-86 Figure 12: Section through a draw point, draw bell and the inclined undercut 2-87 Figure 13: Selection of Extraction Level 2-88 Figure 14: Block Cave Production First 3 Years - Showing >2% Cu Grade Shell 2-91 Figure 15: Block Cave Production Progression 2-93 Figure 16: Block Cave Production Progression - The Later Years 2-94 Figure 17: Extraction Reserve Columns 2-95 Figure 18: Block Cave Dilution Model 2-96 Figure 19: Hugo South Deposit Grade Shells Displaying Block Cave Ore Columns in >1% Cu 2-97 Figure 20: Decline and Shaft Long-section 2-98 Figure 21: Primary Ventilation Circuit for 10Mt/a Block Cave Mine 2-99 Figure 22: Extraction Level Ventilation Concept 2-100 Figure 23: Materials Handling Primary Ventilation Circuit 2-101 Figure 24: Extraction Level Development Schedule - Displays Years Production Galleries are Developed prior to Draw-point Construction 2-102 Figure 25: Ore Flow 2-103 Figure 26: Decline Development Schedule 2-104 Figure 27: Extraction Level Draw Point Production Schedule 2-107 Figure 28: Secondary breakage Drill Units (High Hang-up units) 2-109 Figure 29: China Cost Discount Factor Elements - 2-122 HUGO SOUTH DEPOSIT 5MT/A SUB LEVEL CAVE MINE Figure 30: Typical sub level caving layout 3-147 Figure 31: Overview of 5.5 Mt/a SLC 3-148 Figure 32: SLC Mining Front 3-153 Figure 33: Transfer level development 3-154 Figure 34: 3D perspective of development schedule 3-154 Figure 35: Infrastructure development 3-155 Figure 36: Ventilation flow during development phase of mine 3-160 Figure 37: Ventilation flow during production phase of mine 3-161
SRK Consulting Oyu Tolgoi Scoping Study Report Page vi LIST OF TABLES MINING GEOTECHNICAL Table 1: Geotechnically Logged Holes per Mining Area 1-1 Table 2: MRMR vs Indicative Overall Slope Angle (IOSA) 1-4 Table 3: Summary of Empirical Evaluation: South West Deposit 1-5 Table 4: Summary of Empirical Evaluation: Central Deposit 1-5 Table 5: Summary of Overall Pit Slope Angles 1-6 Table 6: Summary of Empirical Evaluation: Hugo South Deposit 1-6 Table 7: Summary of Mathews/Potvin Design Parameters 1-10 Table 8: Summary of Empirical Evaluation: Hugo South Deposit Western Flank Mine Development 1-13 Table 9: Summary of Empirical Evaluation: Hugo South Deposit Eastern Flank Mine Development 1-13 Table 10: Summary of Empirical Evaluation: Hugo South Deposit Mine Development 1-14 Table 11: Calculation of Cave Subsidence Limits for Hugo South and Hugo North Deposits 1-17 HUGO SOUTHDEPOSIT 10MT/A BLOCK CAVE MINE Table 12: Shaft Description 2-72 Table 13: Headgear Description 2-72 Table 14: Rock Winding Plant 2-72 Table 15: Service winding plant 2-73 Table 16: Water consumption 2-74 Table 17: Pump Specifications 2-75 Table 18: Diesel Equipment 2-78 Table 19: Diesel and Electric Mobile Equipment 2-79 Table 20: Total Air Requirements 2-80 Table 21: Scoping Study Mining Reserve 2-89 Table 22: Life of mine development and production tonnes 2-90 Table 23: Mine Resource and Mine Life Summary 2-95 Table 24: Development schedule 10Mt/a Block Cave Mine 2-105 Table 25: Labour Matrix showing transition from Expatriate to Mongolian Personnel 2-111 Table 26: Adjusted Life of Mine Costs 2-113 Table 27: Unadjusted Life of Mine Costs 2-113 Table 28: Adjusted Life of Mine Costs Breakdown 2-114 Table 29: Unadjusted Life of Mine Costs Breakdown 2-115 Table 30: Chinese Cost Discount Factor - Shaft 2-118 Table 31: Chinese Cost Discount Factor Elements 2-119 Table 32: Underground Shift Operator Expatriate and Mongolian Ratio 2-120 Table 33: Jumbo Development CCDF 2-120 Table 34: Longhole Production Drilling CCDF 2-120 Table 35: Longhole Production Charging CCDF 2-120 Table 36: Trucking and Bogging CCDF 2-121 Table 37: Underground Direct Costs CCDF 2-121 HUGO SOUTH DEPOSIT 5MT/A SUB LEVEL CAVE MINE Table 38: Shaft description 3-133 Table 39: Headgear Description 3-134 Table 40: Rock Winding Plant 3-134 Table 41: Service Winding Plant 3-134 Table 42: SLC Water consumption 3-136 Table 43: Pump Specifications 3-136 Table 44: Diesel Equipment 3-140 Table 45: SLC Diesel and Electric Mobile Equipment 3-141 Table 46: SLC Total Air Requirements 3-142
SRK Consulting Oyu Tolgoi Scoping Study Report Page vii Table 47: Summary of Production Schedule 3-150 Table 48: SLC Production by Level 3-152 Table 49: Drilling Parameters 3-152 Table 50: Development metres by year 3-156 Table 51: Mobile Equipment 3-156 Table 52: IMMI Personnel Requirements 3-158 Table 53: Contractor personnel requirements 3-159 Table 54: Unadjusted Operating costs 3-162 Table 55: Adjusted Operating costs 3-162 Table 56: Unadjusted Capital cost estimate 3-164 Table 57: Adjusted Capital cost estimate 3-165
DISCLAIMER The conclusions, interpretations and recommendations expressed within this material are in response to a request from Ivanhoe Mines Mongolia Inc, and represent the opinions of the authors based on the data available to them at the time of production. No liability is accepted by SRK Consulting for commercial decisions or actions resulting from the use of this material. SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-1 1 MINING GEOTECHNICAL (SRK) 1.1 DRILLING PROGRAMME The geotechnical studies had two objectives. Firstly, to create a geotechnical database for the scoping study and secondly to prepare a sound foundation for the feasibility study. The available data for the evaluation of the open pit mining options for the Southwest and Central deposits and for the Hugo South deposit underground option were derived from the geotechnical logging of selected exploration boreholes between September 2002 and April 2003 (Figure 1). IMMI field staff completed the logging in accordance with the initial training and instructions provided by SRK during project visits in September 2002 and February 2003. The cores were logged in such a format as to be suitable for use in the Mining Rock Mass Rating Classification System, MRMR, for Mining Applications developed by Laubscher (1990) and subsequently augmented by SRK (Haines and Terbrugge, 1991) for use in Open Pit mining. The following number of holes was logged for each of the mining areas: TABLE 1: GEOTECHNICALLY LOGGED HOLES PER MINING AREA
AREA NUMBER OF BOREHOLES ----------------------------------------------- Southwest (Open Pit) 19 Central (Open Pit) 4 Hugo South (Underground) 36 -----------------------------------------------
The borehole database is provided in Section 1 - Appendix. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-2 FIGURE 1: PLAN OF GEOTECHNICALLY LOGGED BOREHOLES [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-3 1.2 DATA ANALYSES SRK completed an empirical evaluation of the data in order to derive indicative mine design parameters. In future work it will be necessary to carry out structural and numerical modelling of the proposed mine excavations, in order to refine the results as derived from this empirical approach. The empirical evaluation utilises the methodology of Laubscher's MRMR Classification System, as extended by SRK, for initial slope stability assessments. The parameters that will influence the stability of each zone are as follows: - Length and distribution of geotechnical zones - Rock Quality Designation (RQD) - Quantity of Matrix/Rock Mass Defects i.e. Faults, shear zones, intense fracturing and zones of deformable material - Quantity of solid rock versus weak rock - Intact rock strength/hardness (IRS) - Degree and nature of rock weathering - Relative orientation of structures - Spacing between the sets of structures (Js) - Total number/density/frequency of structures (FF) - Condition of structures i.e., roughness profile, wall alteration and infilling (Jc) - Ground water condition These parameters are then assessed in accordance with the MRMR system and are allocated ratings within the following ranges: - IRS 0 to 20 - RQD 0 to 15 - Js 0 to 25 - FF 0 to 40 - Jc 0 to 40 Depending on the source of data, there is the alternative available to use either RQD plus Js, or FF alone. The total available ratings in this regard are identical. In practice, the average value determined for between RQD/Js and FF is calculated and utilised within the RMR spreadsheet. The influence of ground water on the shear strength of the discontinuities is also taken into account in the selection of the parameters for joint condition. In this regard, there are the options to select either dry, moist, moderate pressure or high-pressure conditions depending on whether drainage or dewatering measures are being considered. This in-situ rating, RMR, out of a total of 100, is then adjusted (ADJ) to take account of the expected mining environment, namely the influence of weathering, structural orientation, induced stresses and blasting. The adjusted RMR is termed the MRMR. The adjustments to the in-situ RMR are introduced in recognition of the type of excavation proposed and the time dependent behaviour of the rock mass. The possible percentage adjustments are as follows: - Weathering 30 to 100% - Orientation 63 to 100% - Induced stresses 60 to 120% - Blasting 80 to 100% January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-4 Although the percentages are empirical, the principle has proved sound, and as such it forces the designer to allow for these important factors during the mapping process. In effect, these adjustments provide for the anticipated deterioration of the rock mass, once exposed in the mine environment. At Oyu Tolgoi the following comments are relevant to the adjustments selected to derive the MRMR values: - WEATHERING: generally an adjustment was selected to take account of the potential influence of dykes, weak infillings on structure and alteration, all of which have the potential to weaken the rock mass after exposure to the mine environment. - ORIENTATION: derived from an assessment of the anticipated rock mass fabric data. No structural data on this nature was available for the compilation of this study. These adjustments can be fairly severe due to the anticipated occurrence of sub-horizontal structures, which can influence the stability of both the pit walls, stope backs and walls. - STRESS: this relates to the influence of in-situ stress and subsequent mining induced stress around each of the pit walls and stopes. - BLASTING: separate adjustments were provided for open pit, caving, open stoping and mine access development. At this stage, it is anticipated, from experience in other similar mining environments, that the in-situ rock mass may be classified into three broad categories as follows: - Massive: RMR greater than 60 - Blocky: RMR 30-60 - Friable: RMR less than 30 Comments will be provided in this regard for each of the mining areas. 1.3 OPEN PIT SLOPE DESIGN 1.3.1 INDICATIVE OVERALL SLOPE ANGLE RECOMMENDATIONS The MRMR values, as derived for the range of design materials, can be related to an Indicative Overall Slope Angle, (IOSA), and a bench stack angle versus bench face height relationship. With the use of structurally derived parameters for individual benches, it is possible to create a design chart for the bench stack angle versus bench stack height relationship and for the determination of Spill Berm Widths, (SBW). These bench stack geometries can be compared with those obtained from the empirical evaluation. It is then feasible to proceed to develop overall slope geometries for the various design materials, within each of the design sectors of the pit. The final slope architecture is then created. Structural data are still being collected from the current phase of drilling and was not available for this scoping study report. The indicative overall slope angle IOSA, as determined from the MRMR values for each material, is selected from Table 2. TABLE 2: MRMR VS INDICATIVE OVERALL SLOPE ANGLE (IOSA) MRMR 100 90 80 70 60 50 --------------------------------------------------------------------------------- IOSA >75 degrees 75 degrees 70 degrees 65 degrees 60 degrees 55 degrees ---------------------------------------------------------------------------------
MRMR 40 30 20 10 0 --------------------------------------------------------------------------------- IOSA 50 degrees 45 degrees 40 degrees 35 degrees <35 degrees ---------------------------------------------------------------------------------
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-5 The results from SRK's investigation of the South West and Central deposits are summarised in Table 3 and Table 4 respectively. Each individual rock type has been reported separately. TABLE 3: SUMMARY OF EMPIRICAL EVALUATION: SOUTH WEST DEPOSIT
RMR MRMR(2) IOSA MATERIAL TYPE(1) MIN AVG(3) MAX MIN AVG MAX MIN AVG MAX -------------------------------------------------------------------------------------------------------------- Andesite Dykes (w) 37 44 58 14 19 27 37 39 43 Andesite Dykes 41 51 65 21 26 34 40 43 47 Augite Basalt (w) 35 46 56 19 27 36 39 43 48 Augite Basalt 34 45 61 24 32 44 42 46 52 Basalt Dykes (w) 46 46 46 20 21 22 40 40 41 Basalt Dykes 41 48 62 21 24 32 40 42 46 Dacitic Ash Flow Tuff (w) 43 46 50 24 28 32 42 44 46 Dacitic Ash Flow Tuff 34 46 54 25 33 39 42 46 50 Fault/Fault Zone (w) 30 30 30 10 11 12 35 35 36 Fault/Fault Zone 30 31 32 11 12 13 35 36 36 Granodiorite Dykes (w) 33 47 53 14 22 26 37 41 43 Granodiorite Dykes 37 48 59 19 25 30 39 42 45 Monzodiorite (w) 35 42 52 14 18 25 37 39 43 Monzodiorite 32 44 59 17 23 30 38 41 45 Rhyolite Dykes 30 55 68 15 28 35 37 44 47 Sediments 43 43 43 31 31 31 45 45 46 Average 34 43 53 19 24 29 39 42 45 --------------------------------------------------------------------------------------------------------------
Note 1: where (w) denotes weathered material. Note 2: the adjustments for weathering, orientation, stress and blasting that were used to convert RMR to MRMR vary according to rock type and degree of weathering. Note 3: The average value shown is a weighted average from all borehole sources. THE OVERALL RMR RANGE OF 30-68 FOR THE SOUTHWEST DEPOSIT WOULD CLASSIFY THIS ROCK MASS AS BLOCKY WITH OCCASIONAL FRIABLE ZONES RELATED TO STRUCTURE AND ALTERATION. TABLE 4: SUMMARY OF EMPIRICAL EVALUATION: CENTRAL DEPOSIT
RMR MRMR(2) IOSA MATERIAL TYPE(1) MIN AVG(3) MAX MIN AVG MAX MIN AVG MAX -------------------------------------------------------------------------------------------------------------- Andesite Dykes 49 51 65 25 26 33 42 43 46 Augite Basalt 42 47 52 30 33 37 45 46 48 Basalt Dykes 43 47 55 22 24 28 41 42 44 Dacitic Ash Flow Tuff (w) 44 44 44 29 29 29 44 44 45 Dacitic Ash Flow Tuff 47 47 47 33 33 33 46 46 47 Fault/Fault Zone (w) 30 30 30 12 12 12 36 36 36 Fault/Fault Zone 30 31 32 13 13 13 36 36 37 Granodiorite Dykes 54 54 56 28 28 29 44 44 45 Monzodiorite (w) 36 41 44 16 18 19 38 39 40 Monzodiorite 39 45 50 19 23 26 38 41 43 Rhyolite Dykes 41 44 46 20 22 23 40 41 42 Average 41 44 47 22 24 26 41 42 43 --------------------------------------------------------------------------------------------------------------
Note 1: where (w) denotes weathered material. Note 2: the adjustments for weathering, orientation, stress and blasting that were used to convert RMR to MRMR vary according to rock type and degree of weathering. Note 3: The average value shown is a weighted average from all borehole sources. THE OVERALL RMR RANGE OF 30-65 FOR THE CENTRAL DEPOSIT WOULD CLASSIFY THIS ROCK MASS AS BLOCKY WITH OCCASIONAL FRIABLE ZONES RELATED TO STRUCTURE AND ALTERATION. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-6 The empirical data contained in Table 3 and Table 4 were evaluated for the different pit sectors. The pit sectors were selected on the basis of slope curvature and wall orientation. It was possible to obtain an indication of the likely overall slope angles from the empirical assessment. These angles are only starting points for more rigorous structural and numerical analyses. The average IOSA's have been established for each open pit sector, as provided in Table 5. TABLE 5: SUMMARY OF OVERALL PIT SLOPE ANGLES
OVERALL SLOPE ANGLE(1) PIT SLOPE SECTOR WEATHERED ZONE UNWEATHERED ---------------------------------------------------------------------- Northeast 37 degrees 41 degrees Eastern 37 degrees 41 degrees Southwest Northwest 38 degrees 43 degrees Deposit Western 38 degrees 43 degrees Southern 38 degrees 42 degrees ---------------------------------------------------------------------- Northeast 38 degrees 43 degrees Southeast 38 degrees 43 degrees Central Deposit Northwest 37 degrees 40 degrees Southwest 37 degrees 40 degrees ----------------------------------------------------------------------
Note 1: all slope angles provided are for drained conditions The overall angles provided in Table 5 are inclusive of ramps. When the structural database has been compiled it will be possible to determine inter-ramp angles (IRA) for a range of bench stack heights. In addition, the structural data will allow the calculation of the appropriate SBW for a range of bench heights and batter angles. 1.4 UNDERGROUND DESIGN PARAMETERS The underground design parameters have been determined for the following aspects: - Cavability - Fragmentation - Open Stope Design - Development for Mine Access - Cave Subsidence limits. 1.4.1 CAVABILITY AND MINIMUM CRITICAL SPAN The RMR and MRMR analysis for the unweathered mineralised zone rock mass for the underground mining at the Hugo South deposit is shown in Table 6. TABLE 6: SUMMARY OF EMPIRICAL EVALUATION: HUGO SOUTH DEPOSIT
RMR MRMR(1) MATERIAL TYPE MIN AVG MAX MIN AVG MAX ------------------------------------------------------------------------------------ Andesite Dykes 54 54 54 49 49 49 Augite Basalt 39 46 65 35 42 59 Basalt Dykes 40 48 62 36 46 56 Basaltic Sediments 47 51 52 42 45 47 Dacitic Ash Flow Tuff 31 46 63 28 41 57 Dacitic Block Ash Tuff 47 54 58 40 46 50 Fault/Fault Zone 30 30 30 23 23 23 Granodiorite Dykes 55 55 55 50 50 50 Hydrothermal Breccia 38 39 46 34 38 41 Monzodiorite 62 62 62 56 56 56 Rhyolite Dykes 44 49 65 40 48 59 Average 43 47 53 38 42 48 ------------------------------------------------------------------------------------
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-7 Note 1: the MRMR was calculated using an adjustment to the RMR to represent mass mining conditions for each rock type. The adjustments varied for each rock type. The range of MRMR(Min) 23 for the weakest rock type to MRMR(Max) 59 for the strongest rock type equates to a hydraulic radius, (area/perimeter) for caving of between 11m to 33m. The range of the average MRMR(Min) to average MRMR(Max) for all rock types equates to a hydraulic radius for caving between 20m and 27m. The latter range corresponds to an undercut area to initiate caving of between 80m and 110m in plan dimension (width or length). For scoping study design purposes an undercut with hydraulic radius of 30m has been applied and is considered to be relatively conservative. This equates to a square plan area of 120m by 120m. These results are presented graphically as Figure 2 Laubscher Stability Graph. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-8 Figure 2 Laubscher Stability Graph. [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-9 For rectangular undercut shapes the minimum critical span is the minimum span below which dimension a stable arch will form and caving will not be initiated or will cease to propagate. The empirical rule is that this minimum dimension should equate to (not be less than) one third of the length of the rectangle. Therefore, for a hydraulic radius of 30m the undercut can range from square (120m by 120m) to a rectangle with a width to length ratio of 1:3 (80m by 240m), where 80m represents the minimum critical span. For determination of the minimum critical span it is considered expedient to use the hydraulic radius for the strongest rock type. For the Hugo South deposit the strongest rock has a hydraulic radius of 34m which yields a minimum dimension of 91m. For the scoping study in both the block cave and sub level cave (SLC) cases modelled, the minimum undercut dimension applied was not less than 95m. In the pre-feasibility and feasibility studies, it will be advisable to check the empirical rule by conducting appropriate numerical modelling to determine the minimum critical span. The dimensions of the Hugo South and Hugo North deposits present plan areas or `footprints' that are well in excess of the hydraulic radius required for caving. 1.4.2 FRAGMENTATION As core orientation devices were not used for the 59 resource drill holes from which geotechnical information was derived, it was not possible to use the Block Cave Fragmentation (BCF) software to determine primary and secondary fragmentation. BCF requires the dip/dip direction of structures and numbers of discontinuity sets along with other material parameters to calculate the fragmentation size and range. However, empirical and benchmark methods were applied which indicate that the rock should fragment reasonably well with a likely size range from 0.1m to 5.0m as shown in Figure 3. At mines with a similar RMR range primary fragmentation produces between 15 to 25% plus 2m(3) material and with secondary fragmentation yield between 5 to 10% plus 2m(3) blocks. The 2m(3) size is the approximate maximum block size that will fit in the bucket of the load-haul-dump (LHD) units that have been selected to load out the cave drawpoints. FIGURE 3: RELATIONSHIP BETWEEN RMR, FRAGMENTATION, DRAW WIDTHS AND DRAWPOINT SPACING [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-10 THE OVERALL RMR RANGE OF 30-65 FOR THE HUGO SOUTH DEPOSIT WOULD CLASSIFY THIS ROCK MASS AS BLOCKY WITH OCCASIONAL FRIABLE ZONES RELATED TO STRUCTURE AND ALTERATION. It will be important to obtain joint/structure orientation data and material property parameters for a more rigorous analysis of fragmentation to be carried out at pre-feasibility and feasibility study level. 1.4.3 OPEN STOPE DESIGN In order to determine the appropriate design parameters for the possibility for open stoping at Hugo South deposit, empirical design methodology for open stopes was used, as developed by Mathews and Potvin in the creation of their stability graph (Figure 5). In this method the Modified Stability Number, N', is determined from a combination of Barton parameters (RQD, Jn, Jr and Ja) and adjustment factors (A, B and C). RQD/Jn is a measure of block size for the jointed rock mass and Jr/Ja is a measure of the joint surface strength, that results in the determination of N' from the following equation: N' = Q' x A x B x C Where the adjustment factors are as follows: A: the ratio of intact rock strength to induced stress, B: the relative orientation of the dominant jointing with respect to the excavation surface, and C: the influence of gravity on the stability of the face being considered. The values were calculated using the geotechnical data base for the Hugo South deposit and combines the relevant rock types for that mining area. The results are presented below in Table 7. TABLE 7: SUMMARY OF MATHEWS/POTVIN DESIGN PARAMETERS
PARAMETER MINIMUM AVERAGE MAXIMUM ------------------------------------------------------------- Q' 0.3 3.5 6.42 A 0.1 0.5 1 B 0.2 0.5 0.8 C 4 6 8 N' 0.024 5.25 41.1 -------------------------------------------------------------
The sensitivity of the parameters was determined for a combination of the input parameters. The resultant range of 0.024 to 41.088 has been graphed as shown below in Figure 4. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-11 FIGURE 4: HISTOGRAM OF N' VALUES [FIGURE] The average N' value of 5.25 converts to a hydraulic radius of approximately 4.5 which is equivalent to stope plan dimensions of approximately 18m by 18m. These values are for stable stope dimensions without the addition of stope support. The minimum N' value of 0.024 has a hydraulic radius of 0.0 with a corresponding stable span of 0.0m. The maximum N' value of 41.1 has a hydraulic radius of 9.1 with a corresponding stable span of approximately 36m x 36m. The hydraulic radius and stable span dimensions are determined from the upper curve of the Mathews/Potvin Stability Chart shown in Figure 5, for the corresponding N' values. It is not considered appropriate to design for a higher hydraulic radius as the influence of the principal structures and the rock mass fabric could seriously influence the stability of open stope backs and side-walls. Once a structural database and interpretation has been compiled it would be reasonable to re-assess the open stope dimensions. The results are presented in Figure 5: Mathews/Potvin Stability Chart. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-12 FIGURE 5: MATHEWS/POTVIN STABILITY CHART [FIGURE] 1.4.4 DEVELOPMENT FOR MINE ACCESS The corresponding value for the unweathered rock mass in both the western flank and the eastern flank of the deposit are presented in Table 8 and Table 9 respectively. These RMR and MRMR values will be used to assess the requirement for rock support and rock reinforcement for mine development in waste (ore zone flanks). Within the orebody itself, the corresponding values are provided in Table 10. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-13 TABLE 8: SUMMARY OF EMPIRICAL EVALUATION: HUGO SOUTH DEPOSIT WESTERN FLANK MINE DEVELOPMENT
RMR MRMR(1) MATERIAL TYPE MIN AVG MAX MIN AVG MAX ------------------------------------------------------------------------------------ Andesite Dykes 44 48 60 15 30 40 Augite Basalt 33 44 55 15 30 40 Basalt Dykes 35 45 59 29 31 34 Basaltic Sediments 39 46 56 28 34 40 Dacitic Ash Flow Tuff 31 43 59 15 31 42 Dacitic Block Ash Tuff 52 52 52 15 31 42 Fault/Fault Zone 30 30 30 12 12 12 Granodiorite Dykes 29 45 59 19 26 30 Hydrothermal Breccia 43 44 46 26 27 28 Monzodiorite 34 44 49 20 26 29 Rhyolite Dykes 37 42 54 12 28 42 Sediments 39 45 51 28 32 37 Average 37 43 51 23 27 31 ------------------------------------------------------------------------------------
Note 1: the MRMR was calculated using a total adjustment to the RMR of 0.60 to 0.65 to represent mine access development (determined from adjustments for: weathering .0.9, orientation 0.85, stress 0.9 and blasting of 0.94) THE OVERALL RMR RANGE OF 30-60 FOR THE HUGO SOUTH DEPOSIT WESTERN FLANK WOULD CLASSIFY THIS ROCK MASS AS BLOCKY WITH OCCASIONAL FRIABLE ZONES RELATED TO STRUCTURE AND ALTERATION. This range of RMR classifies as Class 4A (poor quality) to 3B (fair quality) and the MRMR classifies as Class 4B material (poor quality). This range of support recommendations according to Laubscher equates to rock bolts (at 1m spacing), mesh/steel fibre reinforced shotcrete with straps and cable bolts as reinforcing and lateral restraint. TABLE 9: SUMMARY OF EMPIRICAL EVALUATION: HUGO SOUTH DEPOSIT EASTERN FLANK MINE DEVELOPMENT
RMR MRMR(1) MATERIAL TYPE MIN AVG MAX MIN AVG MAX ------------------------------------------------------------------------------------ Andesite Dykes 40 50 59 24 29 35 Augite Basalt 33 46 59 24 33 42 Basalt Dykes 35 46 58 21 27 35 Basaltic Sediments 36 46 62 26 33 45 Conglomerate 45 49 59 32 36 42 Dacitic Ash Flow Tuff 32 44 58 23 31 42 Dacitic Block Ash Tuff 32 46 62 21 28 38 Fault/Fault Zone 30 30 30 14 14 14 Granodiorite Dykes 34 49 65 20 30 39 Hydrothermal Breccia 46 46 46 28 28 28 Monzodiorite 34 42 65 20 27 39 Rhyolite Dykes 36 47 62 22 30 37 Sediments 34 43 53 24 31 38 Average 36 43 53 24 27 31 ------------------------------------------------------------------------------------
Note 1: the MRMR was calculated using a total adjustment to the RMR of 0.60 to 0.65 to represent mine access development (determined from adjustments for: weathering 0.9, orientation 0.85, stress 0.9 and blasting of 0.94) THE ADJUSTMENTS RATINGS WERE SELECTED BASED ON THE ANTICIPATED PERFORMANCE OF EACH ROCK TYPE FROM AN EVALUATION OF THE GEOTECHNICAL BOREHOLE RECORDS AS DESCRIBED IN SECTION 1.2. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-14 The overall RMR range of 30-65 for the Hugo South deposit Eastern Flank would classify this rock mass as Blocky with occasional Friable zones related to structure and alteration. This range of RMR classifies as Class 4A (poor quality) to 3B (fair quality) and the MRMR classifies as Class 4B material (poor quality). This range of support recommendations according to Laubscher equates to rock bolts (at 1m spacing), mesh/steel fibre reinforced shotcrete with straps and cable bolts as reinforcing and lateral restraint. An evaluation of the rock mass ratings for mine development within the ore is provided in Table 10. TABLE 10: SUMMARY OF EMPIRICAL EVALUATION: HUGO SOUTH DEPOSIT MINE DEVELOPMENT
RMR MRMR(1) MATERIAL TYPE MIN AVG MAX MIN AVG MAX ------------------------------------------------------------------------------------ Andesite Dykes 54 54 54 32 32 32 Augite Basalt 39 46 65 28 33 47 Basalt Dykes 40 48 62 24 31 37 Basaltic Sediments 47 51 52 34 36 37 Dacitic Ash Flow Tuff 31 46 63 22 33 45 Dacitic Block Ash Tuff 47 54 58 29 32 35 Fault/Fault Zone 30 30 30 15 15 15 Granodiorite Dykes 55 55 55 33 33 33 Hydrothermal Breccia 38 39 46 23 25 28 Monzodiorite 62 62 62 37 37 37 Rhyolite Dykes 44 49 65 26 32 39 Average 43 47 53 27 30 33 ------------------------------------------------------------------------------------
Note 1: the MRMR was calculated using a total adjustment to the RMR of 0.60 to 0.65 to represent mine access development (determined from adjustments for: weathering 0.9, orientation 0.85, stress 0.9 and blasting of 0.94) THE OVERALL RMR RANGE OF 30-65 FOR THE HUGO SOUTH DEPOSIT WOULD CLASSIFY THIS ROCK MASS AS BLOCKY WITH OCCASIONAL FRIABLE ZONES RELATED TO STRUCTURE AND ALTERATION This range of RMR classifies as Class 3A-3B (fair quality) and the MRMR classifies as Class 4A-4B material (poor quality). This range of support recommendations according to Laubscher equates to rock bolts (at 1m spacing), mesh/steel fibre reinforced shotcrete with straps. The use of cable bolts as reinforcing and lateral restraint is optional. 1.4.5 CAVE SUBSIDENCE LIMITS When caving methods, such as block caving or sub level caving, are employed to mine a large deposit the ground surface above the deposit will normally be disturbed, ultimately leaving a large caved in area with a peripheral, fractured, subsidence zone around the caving limits. The formation of the cave subsidence zone occurs as follows: - All ore within the economic mining limits is removed in the process of mining - Waste rock above the ore body caves in and fills the void created by removing the ore January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-15 - The cave propagates upward with sides having an angle close to vertical (unless deflected by a large continuous structure), until it breaks through to the surface. As the waste cap is drawn down as a result of further ore extraction the sidewall confinement is removed and the sidewalls begin to fail. This causes the cave limits and surrounding failure zone (subsidence limits) to extend outwards radially from the crater edge. This phenomenon continues until mining is completed and the cave stabilizes at its final subsidence limits. SRK determined the caving and subsidence limits for the following purposes: - Environmental impact studies - Siting of shafts (hoisting and ventilation), declines, and surface infrastructure - Siting of underground infrastructure and service excavations - Hydrogeological/hydrological studies, to determine water inflows into the cave area. METHODOLOGY: In order to calculate the cave limits and subsidence limits at any given point between the lowest mining level and surface, the following data is needed: - Depth below surface to point of reference (see Figure 6). - Height of caved material above point of reference (see Figure 6). - Orientations and magnitudes of regional stresses. - RMR's of the different domains of rock from surface to point of reference . - In-situ densities and bulk factors for different rock types . - Geometry of the crater shape (mining limit shape). - Major structures. Figure 6 shows the relationship between various inputs and how they are related, through MRMR values, to break back angles. The sum total of the influence of these angles from mining level to mining level to surface determines the theoretical shape of the caving and subsidence zones. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-16 FIGURE 6: INTER-RELATIONSHIP OF FACTORS THAT DETERMINE CAVE SUBSIDENCE LIMITS (AFTER LAUBSCHER 1999(1) [FIGURE] The Haines and Terbrugge chart (Figure 7) is used in place of the Laubscher Chart (Figure 6) for the near surface weathered rock and soil as that the latter chart is considered to be too conservative in the lower end of the `factor' and MRMR scale. The Haines and Terbrugge chart has been used with success in calculation of stable slopes in large open pits in all MRMR conditions. The upper part of the cave subsidence zone will behave as an open pit when the caved mass is drawn down, leaving no confinement on the walls of the near surface crater. ------------------- (1)Reference, D H Laubscher 1999, private communication with SRK January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-17 FIGURE 7: HAINES AND TERBRUGGE SLOPE ANGLE CHART [FIGURE] TABLE 11: CALCULATION OF CAVE SUBSIDENCE LIMITS FOR HUGO SOUTH AND HUGO NORTH DEPOSITS CAVING AND SUBSIDENCE LIMITS - HUGO SOUTH
Height of Depth Zone width Elevation Bulk Density caved rock below surface Min Span mRL t/cu.m m m m ----------------------------------------------------------------------------- cap 1175 0 0 0 672 sub surf 1135 1.955 0 -40 592 part weather 1080 2.24 0 -95 489 unweather 980 2.24 95 -195 413 halo 880 2.24 195 -295 370 upper o/b 780 2.24 295 -395 339 mid o/b 680 2.24 395 -495 317 lower o/b 580 2.24 495 -595 300 -----------------------------------------------------------------------------
Zone Length Cave angle Cave Exclusion Max Span Factor MRMR av. limit Zone* m Median degrees m m ------------------------------------------------------------------------ cap 1372 186 236 sub surf 1292 0.00 25 45 146 196 part weather 1189 0.00 35 47 95 135 unweather 1113 0.67 39 69 56 96 halo 1070 2.32 42 78 35 65 upper o/b 1039 5.14 42 81 19 49 mid o/b 1017 9.20 42 84 9 39 lower o/b 1000 14.66 42 85 0 0 ------------------------------------------------------------------------
CAVING AND SUBSIDENCE LIMITS - HUGO NORTH
Height of Depth Zone width Elevation Bulk Density caved rock below surface Min Span mRL t/cu.m m m m ----------------------------------------------------------------------------- cap 1175 0 0 0 506 sub surf 1135 1.955 20 -40 426 part weather 1080 2.24 75 -95 357 unweather 980 2.24 175 -195 307 mid 800 2.24 355 -375 263 halo 600 2.24 555 -575 228 upper o/b 400 2.24 755 -775 207 lower o/b 200 2.24 955 -975 200 -----------------------------------------------------------------------------
Zone Length Cave angle Cave Exclusion Max Span Factor MRMR av. limit Zone* m Median degrees m m ------------------------------------------------------------------------ cap 706 153 203 sub surf 626 0.02 25 45 113 163 part weather 557 0.30 35 58 79 119 unweather 507 1.66 39 76 54 94 mid 463 7.56 42 83 31 61 halo 428 20.91 42 85 14 44 upper o/b 407 42.22 42 87 3 33 lower o/b 400 69.52 42 89 0 0 ------------------------------------------------------------------------
* Measured from edge of vertically projected Block Cave Undercut outline The subsidence limits were modelled using the Vulcan software package and the location of the proposed shaft and eastern decline were checked against the subsidence limits to ensure they are located outside this exclusion zone. Screen dumps of the model are shown in Figure 8 and Figure 9. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-18 FIGURE 8: HUGO SOUTH AND HUGO NORTH DEPOSITS - CAVE SUBSIDENCE LIMIT AND THE PROPOSED EASTERN DECLINE [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-19 FIGURE 9: HUGO SOUTH AND HUGO NORTH DEPOSITS - CAVE SUBSIDENCE LIMITS AND PROPOSED SHAFTS AND VENTILATION RAISEBORE [FIGURE] The input geotechnical data for calculation of the cave subsidence limits was limited and no structural model was available to enable a structural control on cave limit propagation to be undertaken. In the pre-feasibility and feasibility studies, a more rigorous analysis including structural influences should be carried out. This is particularly important with respect to locating of important infrastructure both underground and on surface. 1.5 REQUIREMENTS FOR FURTHER WORK 1.5.1 OPEN PIT STUDIES The requirements for further work have been specified in the communications between June and August 2003. These related to the recommendations to drill geotechnical quality cored holes at both Southwest and Central. This drilling would be carried out with triple tube equipment, at either HQ3 or NQ3 diameter. The core would also be oriented using the Ball Mark (preferred) or Easy Mark Systems. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-20 In addition, SRK recommends that a downhole logging system, as available from Reeves Wireline Services, should be incorporated into the structural programme. Any physical core orientation has limitations especially in structurally complex environments as at Oyu Tolgoi. It is not possible to obtain complete coverage from cores. Therefore, a wireline system that offers both optical and acoustic televiewer options is considered crucial for subsequent phases of the structural studies at Oyu Tolgoi. This work would complement the physical core orientation that is still required. The objectives of this drilling will be to obtain oriented cores from the walls of the open pits and to drill the holes at a range of orientations in order to reduce the influence of borehole orientation bias in the resultant structural measurements. The data used in the analyses in this report are without structural controls. The final agreement on further geotechnical drilling on the 25 June 2003 provided for seven holes at Southwest to be drilled immediately as part of a staged approach to data gathering. These were to be completed by the end of September; and a further seven holes are to be deferred into the pre-feasibility stage. All 11 holes at Central were deferred until pre-feasibility due to uncertainties in the geological and resource model. THREE DIMENSIONAL (3D) GEOLOGICAL, ALTERATION AND STRUCTURAL MODELS FROM IMMI ARE NECESSARY FOR THE PRE-FEASIBILITY STUDY. The structural data should be analysed using the DIPS software or equivalent. The objective is to identify the potential for bench failure, according to the slope orientations for each mining area. The bench scale stability is a function of strength, orientation and frequency of the rock mass structures. Pit wall drainage and the type of blasting always influence the stability. A selection of unstable wedges should be modelled and analysed using SWEDGE software or equivalent for bench scale stability studies. In these models the structural sets are combined with the corresponding estimated friction and cohesion parameters. The objective is to obtain an estimate of the required spill berm width (SBW). With the essential "building-block" of open pit walls now defined it is possible to generate bench stack angle versus bench stack height relationships. The recommended SBW's are for dry conditions, as wet, saturated faces result in all wedges failing, with a greater SBW consequently being required. Therefore, in the advanced scoping phase and into pre-feasibility it will be necessary to establish both the structural and hydrogeological controls on the pit wall deign. 1.5.2 UNDERGROUND STUDIES The requirements for further work have been specified in the communications between June and August 2003. These related to the recommendations to drill geotechnical quality cored holes at both Hugo South and Hugo North deposits. This drilling would be carried out with triple tube equipment at either HQ3 or NQ3 diameter. The core would also be oriented using the Ball Mark (preferred) or Easy Mark Systems. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-21 The objectives of this drilling was to obtain oriented cores from footwall through to hangingwall and to drill the holes at a range of orientations in order to reduce the influence of hole orientation bias in the resultant structural measurements. The final agreement on further geotechnical drilling on the 25 June 2003 provided for seven holes at Hugo South deposit to be drilled immediately for the advanced scoping study. These were to be completed by the end of September and a further six holes at Hugo South and Hugo North deposits to be deferred into the pre-feasibility stage. For all mining areas, it is necessary to obtain from IMMI 3D models of the geological, alteration and structural interpretation, in order to advance into pre-feasibility. IT IS RECOMMENDED THAT A LABORATORY TESTING PROGRAMME BE INITIATED DURING SUBSEQUENT PHASES OF THE STUDY. THIS SHOULD FOCUS ON OBTAINING SHEAR STRENGTH PARAMETERS FROM BOTH INTACT ROCK AND NATURAL JOINTS AS WELL AS SHEAR STRENGTH AND ELASTIC MODULUS FROM INTACT ROCK. SAMPLES ARE CURRENTLY BEING COLLECTED FOR THIS TESTING PROGRAM. THE HYDROGEOLOGICAL PROGRAMME OF WORK SHOULD AIM TO IDENTIFY THE MINE SCALE AQUIFERS AND TO OBTAIN REPRESENTATIVE DESIGN PARAMETERS RELATED TO HYDRAULIC CONDUCTIVITY, TRANSMISSIVITY AND STORAGE. THESE PARAMETERS SHOULD BE OBTAINED FROM LONG-TERM PUMP TESTING WITH ADEQUATE MONITORING HOLES LOCATED IN A RANGE OF BOTH VERTICAL AND HORIZONTAL POSITIONS. IN ADDITION, IN-SITU STRESS MEASUREMENTS SHOULD BE CARRIED OUT USING BOTH ACOUSTIC EMISSION METHOD FROM ORIENTED CORES DRILLED FROM SURFACE AND HI CELL METHOD IN HOLES DRILLED FROM WITHIN THE PROPOSED DECLINE AND SHAFTS AT HUGO SOUTH AND HUGO NORTH DEPOSITS. THE RESULTS FROM THE STRESS MEASUREMENTS MUST BE COMPARED WITH THE INTERPRETATION OF PRINCIPAL STRUCTURES. MATERIAL PROPERTY TESTS AND DISCONTINUITY DATA FROM ORIENTED CORE AS WELL AS STRESS MEASUREMENT DATA IS ESSENTIAL FOR A MORE RIGOROUS FRAGMENTATION ANALYSIS TO BE CARRIED OUT. UNDERSTANDING FRAGMENTATION IS CRITICAL TO THE DESIGN AND OPERATION OF CAVING METHODS. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-22 SECTION 1 - APPENDIX BOREHOLE DATA SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-23 BOREHOLE: OTD270 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 42 42 42 21 21 21 40 40 40 20 20 20 16% 100% 80% 80% 80% 51% Augite Basalt UW 43 44 46 31 32 33 40 41 42 29 30 30 22% 100% 85% 90% 94% 72% Basalt Dykes UW 45 46 50 23 24 26 40 42 43 21 22 22 21% 100% 80% 80% 80% 51% Basaltic Sediments SW 43 43 43 28 28 28 42 42 42 28 28 28 1% 95% 85% 90% 90% 65% Conglomerate UW 45 45 45 32 32 32 45 45 45 32 32 32 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 41 42 59 30 30 43 40 41 47 29 29 34 10% 100% 85% 90% 94% 72% Fault Zone UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Rhyolite Dykes UW 43 43 54 22 22 28 39 40 54 20 20 28 29% 100% 80% 80% 80% 51% Sediments HW 43 43 43 21 21 21 42 42 42 21 21 21 1% 75% 85% 90% 85% 49% Sediments UW 37 39 50 27 28 36 37 38 47 26 27 33 12% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-24 BOREHOLE:OTD289 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basalt Dykes SW 59 59 59 29 29 29 59 59 59 29 29 29 0% 95% 80% 80% 80% 49% Basalt Dykes UW 52 59 61 27 30 31 52 57 59 27 29 30 4% 100% 80% 80% 80% 51% Dacitic Ash Flow Tuff UW 31 52 56 22 37 40 31 48 50 22 34 36 17% 100% 85% 90% 94% 72% Fault Zone UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes MW 51 51 51 22 22 22 48 48 48 21 21 21 15% 85% 80% 80% 80% 44% Granodiorite Dykes UW 49 50 63 25 25 32 45 45 51 23 23 26 21% 100% 80% 80% 80% 51% Monzodiorite UW 63 63 63 32 32 32 62 62 62 32 32 32 2% 100% 80% 80% 80% 51% Sediments UW 56 57 60 40 41 43 40 46 48 29 33 35 42% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-25 BOREHOLE:OTD304 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 54 54 54 39 39 39 52 52 52 38 38 38 7% 100% 85% 90% 94% 72% Conglomerate MW 55 55 55 31 31 31 55 55 55 31 31 31 0% 85% 85% 90% 87% 57% Dacitic Ash Flow Tuff UW 46 48 64 33 35 46 42 45 63 30 33 46 16% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 58 58 58 35 35 35 58 58 58 35 35 35 0% 95% 85% 80% 94% 61% Granodiorite Dykes HW 58 58 58 22 22 22 57 57 57 22 22 22 2% 75% 80% 80% 80% 38% Granodiorite Dykes SW 53 57 62 26 27 30 47 49 50 23 24 24 26% 95% 80% 80% 80% 49% Granodiorite Dykes UW 59 61 64 30 31 33 58 59 61 30 30 31 6% 100% 80% 80% 80% 51% Rhyolite Dykes UW 65 65 65 33 33 33 65 65 65 33 33 33 0% 100% 80% 80% 80% 51%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-26 BOREHOLE:OTD310 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 49 54 59 35 39 42 49 54 59 35 39 42 0% 100% 85% 90% 94% 72% Basaltic Sediments UW 56 56 56 40 40 40 56 56 56 40 40 40 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 51 51 51 36 36 36 51 51 51 36 36 36 0% 100% 85% 90% 94% 72% Fault Zone UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes MW 49 50 52 22 22 23 49 50 52 22 22 23 0% 85% 80% 80% 80% 44% Granodiorite Dykes SW 52 52 52 25 25 25 52 52 52 25 25 25 0% 95% 80% 80% 80% 49% Granodiorite Dykes UW 48 51 63 25 26 32 48 51 63 25 26 32 0% 100% 80% 80% 80% 51% Monzodiorite MW 51 51 51 22 22 22 51 51 51 22 22 22 0% 85% 80% 80% 80% 44% Monzodiorite UW 58 58 58 29 29 29 58 58 58 29 29 29 0% 100% 80% 80% 80% 51% Sediments UW 51 51 51 37 37 37 51 51 51 37 37 37 0% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-27 BOREHOLE:OTD313 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 57 57 57 29 29 29 47 47 47 24 24 24 37% 100% 80% 80% 80% 51% Basalt Dykes UW 48 48 48 25 25 25 48 48 48 25 25 25 0% 100% 80% 80% 80% 51% Conglomerate MW 48 48 48 27 27 27 48 48 48 27 27 27 2% 85% 85% 90% 87% 57% Conglomerate SW 53 53 53 35 35 35 52 52 52 34 34 34 7% 95% 85% 90% 90% 65% Conglomerate UW 46 51 52 33 36 37 46 47 48 33 34 34 15% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 46 50 57 33 36 41 44 50 57 32 36 41 3% 100% 85% 90% 94% 72% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-28 BOREHOLE:OTD319 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 47 53 54 24 27 28 47 52 54 24 27 28 4% 100% 80% 80% 80% 51% Augite Basalt UW 39 39 39 28 28 28 39 39 39 28 28 28 0% 100% 85% 90% 94% 72% Conglomerate MW 49 49 49 28 28 28 49 49 49 28 28 28 0% 85% 85% 90% 87% 57% Conglomerate SW 46 46 46 30 30 30 45 45 45 30 30 30 1% 95% 85% 90% 90% 65% Conglomerate UW 48 49 51 35 35 36 48 49 51 35 35 36 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 40 44 55 28 32 39 36 42 51 26 30 37 11% 100% 85% 90% 94% 72% Fault MW 30 30 30 12 12 12 30 30 30 12 12 12 100% 75% 80% 80% 80% 38% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 43 52 55 22 27 28 43 51 53 22 26 27 5% 100% 80% 80% 80% 51% Monzodiorite UW 65 65 65 33 33 33 65 65 65 33 33 33 0% 100% 80% 80% 80% 51%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-29 BOREHOLE:OTD324 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 60 60 60 31 31 31 60 60 60 31 31 31 0% 100% 80% 80% 80% 51% Augite Basalt MW 47 47 47 26 26 26 47 47 47 26 26 26 0% 85% 85% 90% 85% 55% Augite Basalt SW 47 47 47 30 30 30 47 47 47 30 30 30 0% 95% 85% 90% 90% 65% Augite Basalt UW 43 45 47 31 33 34 39 40 42 28 29 30 31% 100% 85% 90% 94% 72% Basalt Dykes UW 47 47 47 24 24 24 47 47 47 24 24 24 0% 100% 80% 80% 80% 51% Dacitic Ash Flow Tuff UW 43 49 59 31 35 42 38 44 59 27 32 42 25% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 38 50 62 23 30 37 34 49 62 21 29 37 11% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 48 52 55 25 27 28 44 49 55 22 25 28 12% 100% 80% 80% 80% 51% Rhyolite Dykes SW 50 50 50 24 24 24 40 40 40 19 19 19 51% 95% 80% 80% 80% 49% Rhyolite Dykes UW 46 51 56 24 26 28 41 47 55 21 24 28 20% 100% 80% 80% 80% 51% Sediments UW 49 49 49 35 35 35 48 48 48 35 35 35 5% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-30 BOREHOLE:OTD327 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 40 45 48 29 32 34 40 44 47 29 31 34 9% 100% 85% 90% 94% 72% Conglomerate MW 48 48 51 27 27 29 48 48 51 27 27 29 0% 85% 85% 90% 87% 57% Conglomerate SW 55 55 55 36 36 36 55 55 55 36 36 36 0% 95% 85% 90% 90% 65% Conglomerate UW 49 54 59 35 39 43 49 54 59 35 39 43 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff MW 52 52 52 29 29 29 52 52 52 29 29 29 0% 85% 85% 90% 87% 57% Dacitic Ash Flow Tuff UW 48 53 58 34 38 42 48 52 58 34 37 42 4% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 48 48 48 29 29 29 48 48 48 29 29 29 0% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes SW 51 54 61 25 26 30 51 54 61 25 26 30 0% 95% 80% 80% 80% 49% Granodiorite Dykes UW 47 47 47 24 24 24 47 47 47 24 24 24 0% 100% 80% 80% 80% 51% Sediments MW 48 58 78 27 33 44 48 58 78 27 33 44 0% 85% 85% 90% 87% 57% Sediments SW 45 45 45 29 29 29 45 45 45 29 29 29 0% 95% 85% 90% 90% 65% Sediments UW 43 48 53 31 35 38 43 48 53 31 35 38 0% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-31 BOREHOLE:OTD329 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 50 50 53 25 26 27 44 46 53 23 23 27 23% 100% 80% 80% 80% 51% Augite Basalt UW 43 47 49 31 34 35 43 43 45 31 31 32 20% 100% 85% 90% 94% 72% Basalt Dykes UW 62 62 62 32 32 32 62 62 62 32 32 32 0% 100% 80% 80% 80% 51% Basaltic Sediments MW 47 47 47 27 27 27 47 47 47 26 26 26 2% 85% 85% 90% 87% 57% Basaltic Sediments UW 39 42 46 28 30 33 39 41 44 28 30 32 5% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 42 46 49 30 33 35 39 45 48 28 32 35 12% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 47 47 47 28 28 28 43 43 43 26 26 26 19% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 57 57 57 29 29 29 57 57 57 29 29 29 0% 100% 80% 80% 80% 51% Sediments MW 39 39 39 22 22 22 38 38 38 21 21 21 12% 85% 85% 90% 87% 57% Sediments SW 50 50 50 33 33 33 49 49 49 32 32 32 3% 95% 85% 90% 90% 65% Sediments UW 40 42 48 29 30 35 39 42 48 28 30 35 5% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-32 BOREHOLE:OTD333 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basaltic Sediments MW 48 48 48 27 27 27 48 48 48 27 27 27 0% 85% 85% 90% 87% 57% Dacitic Ash Flow Tuff UW 44 46 60 31 33 43 37 40 55 27 29 39 42% 100% 85% 90% 94% 72% Granodiorite Dykes MW 55 55 55 24 24 24 55 55 55 24 24 24 0% 85% 80% 80% 80% 44% Granodiorite Dykes UW 48 50 53 25 26 27 41 47 51 21 24 26 15% 100% 80% 80% 80% 51% Sediments MW 44 44 44 25 25 25 43 43 43 24 24 24 5% 85% 85% 90% 87% 57% Sediments SW 54 54 54 35 35 35 54 54 54 35 35 35 0% 95% 85% 90% 90% 65% Sediments UW 50 50 50 36 36 36 48 48 48 34 34 34 13% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-33 BOREHOLE:OTD334 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Dacitic Ash Flow Tuff UW 40 44 53 29 31 38 39 41 52 28 30 37 18% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 48 49 52 29 29 31 44 46 51 27 28 31 15% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 43 44 48 22 23 25 36 42 48 18 21 25 16% 100% 80% 80% 80% 51%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-34 BOREHOLE:OTD339 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 44 44 45 32 32 32 37 37 44 26 27 32 49% 100% 85% 90% 94% 72% Basaltic Sediments CW 52 52 52 26 26 26 52 52 52 26 26 26 0% 80% 85% 90% 80% 49% Basaltic Sediments UW 43 43 43 31 31 31 43 43 43 31 31 31 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 46 47 49 33 34 35 44 44 48 31 32 34 16% 100% 85% 90% 94% 72% Granodiorite Dykes HW 52 52 52 20 20 20 51 51 51 20 20 20 1% 75% 80% 80% 80% 38% Granodiorite Dykes MW 35 35 35 15 15 15 35 35 35 15 15 15 0% 85% 80% 80% 80% 44% Granodiorite Dykes UW 57 57 57 29 29 29 57 57 57 29 29 29 0% 100% 80% 80% 80% 51% Sediments UW 49 49 49 36 36 36 46 46 46 33 33 33 18% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-35 BOREHOLE:OTD342 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 38 50 55 27 36 39 36 47 54 26 34 39 15% 100% 85% 90% 94% 72% Basaltic Sediments MW 48 48 48 27 27 27 48 48 48 27 27 27 0% 85% 85% 90% 87% 57% Dacitic Ash Flow Tuff UW 40 44 50 29 32 36 32 40 45 23 29 32 31% 100% 85% 90% 94% 72% Granodiorite Dykes UW 42 52 60 21 27 31 42 50 57 21 26 29 7% 100% 80% 80% 80% 51% Monzodiorite UW 47 51 54 24 26 28 45 48 49 23 25 25 16% 100% 80% 80% 80% 51% Sediments MW 36 43 44 20 24 25 36 41 41 20 23 23 14% 85% 85% 90% 87% 57% Sediments SW 47 47 47 31 31 31 47 47 47 31 31 31 0% 95% 85% 90% 90% 65% Sediments UW 46 46 46 33 33 33 46 46 46 33 33 33 0% 100% 85% 90% 94% 72%
SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-36 BOREHOLE:OTD343 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 39 50 55 28 36 40 39 49 55 28 35 40 4% 100% 85% 90% 94% 72% Basalt Dykes SW 51 51 51 25 25 25 50 50 50 24 24 24 7% 95% 80% 80% 80% 49% Basaltic Sediments UW 46 46 46 33 33 33 39 39 39 28 28 28 40% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 32 49 56 23 35 40 31 46 56 23 33 40 15% 100% 85% 90% 94% 72% Rhyolite Dykes UW 52 52 52 27 27 27 52 52 52 27 27 27 0% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-37 BOREHOLE:OTD346 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 52 53 56 27 27 28 52 52 52 26 27 27 6% 100% 80% 80% 80% 51% Augite Basalt UW 43 48 55 31 35 39 33 36 50 24 26 36 65% 100% 85% 90% 94% 72% Basalt Dykes UW 46 46 46 23 23 23 44 44 44 22 22 22 11% 100% 80% 80% 80% 51% Basaltic Sediments SW 43 43 43 28 28 28 40 40 40 26 26 26 19% 95% 85% 90% 90% 65% Dacitic Ash Flow Tuff UW 43 46 52 31 33 37 39 45 52 28 33 37 8% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 51 55 62 31 33 37 51 55 62 31 33 37 0% 95% 85% 80% 94% 61% Granodiorite Dykes UW 45 45 45 23 23 23 45 45 45 23 23 23 0% 100% 80% 80% 80% 51% Rhyolite Dykes UW 59 63 66 30 32 34 59 63 66 30 32 34 0% 100% 80% 80% 80% 51% Sediments MW 39 40 41 22 23 23 38 40 41 22 22 23 4% 85% 85% 90% 87% 57%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-38 BOREHOLE:OTD355 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 46 51 59 33 36 42 44 50 59 32 36 42 3% 100% 85% 90% 94% 72% Basalt Dykes UW 54 56 58 27 29 30 54 56 58 27 29 30 1% 100% 80% 80% 80% 51% Dacitic Ash Flow Tuff UW 41 44 46 29 32 33 38 43 46 27 31 33 7% 100% 85% 90% 94% 72% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Hydrothermal Breccia UW 46 46 46 23 23 23 46 46 46 23 23 23 0% 100% 80% 80% 80% 51% Rhyolite Dykes UW 49 52 62 25 27 32 44 49 61 23 25 31 16% 100% 80% 80% 80% 51% Sediments UW 48 48 49 34 35 35 45 47 48 33 34 35 9% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-39 BOREHOLE:OTD356 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 52 52 52 26 26 26 52 52 52 26 26 26 0% 100% 80% 80% 80% 51% Augite Basalt UW 40 51 58 29 36 42 36 42 48 26 30 35 41% 100% 85% 90% 94% 72% Basalt Dykes UW 41 43 46 21 22 24 41 43 46 21 22 24 0% 100% 80% 80% 80% 51% Basaltic Sediments MW 53 53 53 30 30 30 53 53 53 30 30 30 0% 85% 85% 90% 87% 57% Basaltic Sediments SW 58 59 60 38 39 40 58 59 60 38 39 40 0% 95% 85% 90% 90% 65% Basaltic Sediments UW 36 52 62 26 37 44 36 49 62 26 36 44 10% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 43 45 45 31 32 33 41 44 45 29 31 33 6% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 52 52 52 32 32 32 52 52 52 32 32 32 1% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Monzodiorite UW 46 46 46 24 24 24 46 46 46 24 24 24 0% 100% 80% 80% 80% 51% Sediments UW 42 49 51 30 35 37 39 49 51 28 35 37 1% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-40 BOREHOLE:OTD359 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 43 43 43 31 31 31 42 42 42 30 30 30 10% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 39 46 55 28 33 39 39 44 55 28 32 39 12% 100% 85% 90% 94% 72% Granodiorite Dykes MW 44 44 44 19 19 19 43 43 43 19 19 19 8% 85% 80% 80% 80% 44% Granodiorite Dykes UW 43 49 54 22 25 28 36 47 51 18 24 26 10% 100% 80% 80% 80% 51% Monzodiorite SW 51 53 55 25 26 27 50 52 53 24 25 26 6% 95% 80% 80% 80% 49% Monzodiorite UW 38 46 52 19 24 26 34 40 47 17 20 24 41% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-41 BOREHOLE:OTD361 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes MW 55 55 55 24 24 24 55 55 55 24 24 24 0% 85% 80% 80% 80% 44% Augite Basalt UW 46 46 47 33 33 34 45 46 46 32 33 33 2% 100% 85% 90% 94% 72% Basaltic Sediments UW 46 46 46 33 33 33 46 46 46 33 33 33 0% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 52 52 52 32 32 32 52 52 52 31 31 31 4% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 52 52 52 27 27 27 47 47 47 24 24 24 25% 100% 80% 80% 80% 51% Monzodiorite UW 41 48 51 21 24 26 41 44 47 21 22 24 20% 100% 80% 80% 80% 51% Rhyolite Dykes UW 50 52 57 26 27 29 37 39 45 19 20 23 60% 100% 80% 80% 80% 51% Sediments MW 53 53 54 30 30 31 53 53 54 30 30 31 0% 85% 85% 90% 87% 57% Sediments SW 41 41 41 27 27 27 41 41 41 27 27 27 2% 95% 85% 90% 90% 65% Sediments UW 39 44 50 28 31 36 39 43 50 28 31 36 6% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-42 BOREHOLE:OTD362 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basaltic Sediments UW 50 50 50 36 36 36 50 50 50 36 36 36 0% 100% 85% 90% 94% 72% Granodiorite Dykes MW 41 41 41 18 18 18 41 41 41 18 18 18 2% 85% 80% 80% 80% 44% Granodiorite Dykes UW 43 49 53 22 25 27 43 47 51 22 24 26 9% 100% 80% 80% 80% 51% Sediments MW 38 38 38 22 22 22 37 37 37 21 21 21 18% 85% 85% 90% 87% 57%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-43 BOREHOLE:OTD367B MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 37 41 44 27 30 32 37 41 44 27 30 32 0% 100% 85% 90% 94% 72% Basaltic Sediments UW 43 44 45 31 32 32 43 44 45 31 32 32 0% 100% 85% 90% 94% 72% Granodiorite Dykes UW 32 39 44 17 20 22 32 39 44 17 20 22 0% 100% 80% 80% 80% 51% Quartz Vein UW 42 44 46 22 23 24 42 44 46 22 23 24 0% 100% 80% 80% 80% 51% Sediments UW 35 38 41 25 28 30 35 38 41 25 28 30 0% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-44 BOREHOLE:OTD373 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 44 46 48 22 23 25 44 45 48 22 23 24 2% 100% 80% 80% 80% 51% Augite Basalt UW 35 36 38 25 26 28 33 35 37 24 25 27 24% 100% 85% 90% 94% 72% Basalt Dykes SW 43 43 43 21 21 21 42 42 42 20 20 20 6% 95% 80% 80% 80% 49% Basalt Dykes UW 37 45 49 19 23 25 36 41 49 18 21 25 26% 100% 80% 80% 80% 51% Basaltic Sediments MW 44 44 44 25 25 25 43 43 43 24 24 24 4% 85% 85% 90% 87% 57% Basaltic Sediments UW 37 44 46 27 32 33 37 44 46 27 31 33 1% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 38 38 38 27 27 27 37 37 37 27 27 27 13% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 49 49 49 29 29 29 49 49 49 29 29 29 0% 95% 85% 80% 94% 61% Monzodiorite UW 34 38 40 18 19 21 34 37 40 17 19 21 6% 100% 80% 80% 80% 51% Sediments UW 36 39 43 26 28 31 35 39 43 25 28 31 5% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-45 BOREHOLE:OTD374 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 59 59 59 30 30 30 59 59 59 30 30 30 0% 100% 80% 80% 80% 51% Augite Basalt UW 41 41 41 29 29 29 41 41 41 29 29 29 0% 100% 85% 90% 94% 72% Basalt Dykes UW 40 43 49 21 22 25 40 43 49 21 22 25 0% 100% 80% 80% 80% 51% Basaltic Sediments MW 43 43 43 24 24 24 43 43 43 24 24 24 0% 85% 85% 90% 87% 57% Basaltic Sediments UW 37 42 52 26 30 37 37 42 52 26 30 37 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 39 39 39 28 28 28 39 39 39 28 28 28 0% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 44 44 49 27 27 30 44 44 49 27 27 30 0% 95% 85% 80% 94% 61% Fault Zone UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 41 41 41 21 21 21 41 41 41 21 21 21 0% 100% 80% 80% 80% 51% Hydrothermal Breccia UW 46 46 46 23 23 23 46 46 46 23 23 23 0% 100% 80% 80% 80% 51% Monzodiorite UW 38 40 42 19 20 21 38 40 42 19 20 21 0% 100% 80% 80% 80% 51% Sediments SW 45 45 45 29 29 29 45 45 45 29 29 29 0% 95% 85% 90% 90% 65% Sediments UW 34 38 43 24 27 31 34 38 43 24 27 31 0% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-46 BOREHOLE:OTD381 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 45 45 45 23 23 23 45 45 45 23 23 23 0% 100% 80% 80% 80% 51% Augite Basalt UW 34 40 44 25 29 32 33 39 43 24 28 31 7% 100% 85% 90% 94% 72% Basalt Dykes UW 40 48 52 21 25 26 40 47 51 21 24 26 3% 100% 80% 80% 80% 51% Basaltic Sediments MW 50 50 50 29 29 29 50 50 50 29 29 29 0% 85% 85% 90% 87% 57% Basaltic Sediments UW 40 42 44 29 30 31 40 42 44 29 30 31 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 44 47 52 32 34 37 42 45 50 30 32 36 12% 100% 85% 90% 94% 72% Fault MW 30 30 30 12 12 12 30 30 30 12 12 12 100% 75% 80% 80% 80% 38% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes UW 34 38 48 17 19 25 34 37 47 17 19 24 10% 100% 80% 80% 80% 51% Monzodiorite UW 47 47 47 24 24 24 47 47 47 24 24 24 0% 100% 80% 80% 80% 51% Sediments HW 37 37 37 18 18 18 36 36 36 18 18 18 9% 75% 85% 90% 85% 49% Sediments MW 30 39 41 17 22 23 30 39 41 17 22 23 3% 85% 85% 90% 87% 57% Sediments SW 41 41 41 27 27 27 41 41 41 27 27 27 2% 95% 85% 90% 90% 65% Sediments UW 44 44 44 32 32 32 43 43 43 31 31 31 9% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-47 BOREHOLE:OTD385 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basalt Dykes UW 57 57 57 29 29 29 57 57 57 29 29 29 0% 100% 80% 80% 80% 51% Basaltic Sediments UW 51 51 51 37 37 37 51 51 51 37 37 37 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 40 45 54 29 33 39 37 44 54 26 32 39 12% 100% 85% 90% 94% 72% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes SW 38 38 38 18 18 18 35 35 35 17 17 17 38% 95% 80% 80% 80% 49% Granodiorite Dykes UW 55 55 55 28 28 28 55 55 55 28 28 28 0% 100% 80% 80% 80% 51% Rhyolite Dykes UW 62 62 62 32 32 32 62 62 62 32 32 32 0% 100% 80% 80% 80% 51% Sediments SW 41 41 41 27 27 27 38 38 38 25 25 25 28% 95% 85% 90% 90% 65%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-48 BOREHOLE:OTD396 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basalt Dykes UW 39 45 59 20 23 30 39 45 59 20 23 30 3% 100% 80% 80% 80% 51% Dacitic Ash Flow Tuff UW 42 42 42 30 30 30 42 42 42 30 30 30 0% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff MW 43 45 45 25 25 26 41 41 41 23 23 23 24% 85% 85% 90% 87% 57% Fault Zone UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Granodiorite Dykes MW 42 49 51 18 21 22 42 43 46 18 19 20 28% 85% 80% 80% 80% 44% Granodiorite Dykes SW 42 42 42 20 20 20 38 38 38 18 18 18 34% 95% 80% 80% 80% 49% Granodiorite Dykes UW 29 43 62 15 22 32 29 41 59 15 21 30 11% 100% 80% 80% 80% 51% Quartz Vein UW 44 46 47 22 23 24 42 45 47 22 23 24 3% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-49 BOREHOLE:OTD401 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 44 44 44 32 32 32 39 39 39 28 28 28 36% 100% 85% 90% 94% 72% Basalt Dykes UW 38 43 47 19 22 24 38 42 47 19 21 24 7% 100% 80% 80% 80% 51% Broken Zone UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Dacitic Ash Flow Tuff UW 33 39 47 24 28 34 32 37 47 23 27 34 27% 100% 85% 90% 94% 72% Fault Zone HW 30 30 30 10 10 10 30 30 30 10 10 10 100% 65% 80% 80% 80% 33% Granodiorite Dykes MW 37 37 37 16 16 16 37 37 37 16 16 16 4% 85% 80% 80% 80% 44% Granodiorite Dykes SW 40 40 40 19 19 19 40 40 40 19 19 19 1% 95% 80% 80% 80% 49% Granodiorite Dykes UW 35 42 56 18 22 28 35 41 53 18 21 27 7% 100% 80% 80% 80% 51% Hydrothermal Breccia SW 59 59 59 29 29 29 59 59 59 29 29 29 0% 95% 80% 80% 80% 49% Hydrothermal Breccia UW 43 44 46 22 23 24 43 44 46 22 23 24 1% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-50 BOREHOLE:OTD401A MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basalt Dykes UW 39 42 44 20 22 23 39 41 43 20 21 22 7% 100% 80% 80% 80% 51% Dacitic Ash Flow Tuff UW 36 40 43 26 29 31 35 39 43 25 28 31 4% 100% 85% 90% 94% 72% Granodiorite Dykes UW 36 41 43 18 21 22 34 35 36 17 18 18 46% 100% 80% 80% 80% 51% Rhyolite Dykes UW 37 37 37 19 19 19 36 36 36 19 19 19 10% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-51 BOREHOLE:OTRCD340 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 47 47 47 24 24 24 47 47 47 24 24 24 0% 100% 80% 80% 80% 51% Augite Basalt UW 49 51 54 35 37 39 48 51 54 35 37 39 0% 100% 85% 90% 94% 72% Basalt Dykes UW 45 45 45 23 23 23 45 45 45 23 23 23 0% 100% 80% 80% 80% 51% Dacitic Ash Flow Tuff UW 39 44 58 28 32 42 39 43 57 28 31 41 9% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-52 BOREHOLE:OTRCD347 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 45 48 53 33 35 38 40 43 52 29 31 37 29% 100% 85% 90% 94% 72% Basalt Dykes UW 44 44 44 23 23 23 35 35 35 18 18 18 64% 100% 80% 80% 80% 51% Basaltic Sediments UW 50 54 59 36 39 43 50 53 59 36 38 43 2% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 39 51 56 28 37 40 39 50 56 28 36 40 7% 100% 85% 90% 94% 72% Granodiorite Dykes UW 58 61 65 30 31 33 58 60 65 30 31 33 0% 100% 80% 80% 80% 51% Sediments UW 48 53 57 35 38 41 44 49 52 32 35 38 18% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-53 BOREHOLE:OTRCD350 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGYWEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 46 51 55 33 36 39 35 45 50 25 33 36 25% 100% 85% 90% 94% 72% Basaltic Sediments UW 52 53 54 37 38 39 52 53 54 37 38 39 1% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 47 48 51 34 35 36 47 47 49 34 34 35 6% 100% 85% 90% 94% 72% Granodiorite Dykes UW 56 56 56 29 29 29 56 56 56 29 29 29 0% 100% 80% 80% 80% 51% Monzodiorite UW 46 46 46 24 24 24 46 46 46 24 24 24 0% 100% 80% 80% 80% 51% Sediments UW 50 51 51 36 36 37 45 49 51 33 35 36 7% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-54 BOREHOLE:OTRCD352 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Basaltic Sediments UW 49 51 60 35 37 43 49 51 60 35 37 43 0% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 54 54 54 33 33 33 53 53 53 32 32 32 2% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44% Sediments UW 44 49 52 32 35 37 44 49 52 32 35 37 1% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-55 BOREHOLE:OTRCD352A MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 65 65 65 46 46 46 65 65 65 46 46 46 0% 100% 85% 90% 94% 72% Basaltic Sediments UW 47 51 52 34 36 38 47 51 52 34 36 38 0% 100% 85% 90% 94% 72% Dacitic Ash Flow Tuff UW 61 61 61 44 44 44 61 61 61 44 44 44 0% 100% 85% 90% 94% 72% Dacitic Block Ash Tuff UW 47 53 55 29 32 33 47 53 55 29 32 33 0% 95% 85% 80% 94% 61% Fault UW 30 30 30 13 13 13 30 30 30 13 13 13 100% 85% 80% 80% 80% 44%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-56 BOREHOLE:OTRCD365 MINE AREA: Far North Oyu
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Augite Basalt UW 38 46 51 27 33 37 38 46 51 27 33 37 0% 100% 85% 90% 94% 72% Basalt Dykes UW 35 48 53 18 24 27 35 48 53 18 24 27 0% 100% 80% 80% 80% 51% Basaltic Sediments MW 42 45 48 24 26 27 42 45 48 24 26 27 0% 85% 85% 90% 87% 57% Basaltic Sediments UW 45 45 45 32 32 32 45 45 45 32 32 32 0% 100% 85% 90% 94% 72% Granodiorite Dykes UW 40 47 52 21 24 26 40 47 52 21 24 26 0% 100% 80% 80% 80% 51% Hydrothermal Breccia UW 38 38 38 19 19 19 38 38 38 19 19 19 0% 100% 80% 80% 80% 51% Monzodiorite UW 39 44 49 20 23 25 39 44 49 20 23 25 0% 100% 80% 80% 80% 51% Sediments MW 40 40 40 23 23 23 40 40 40 23 23 23 0% 85% 85% 90% 87% 57% Sediments SW 43 43 43 28 28 28 43 43 43 28 28 28 0% 95% 85% 90% 90% 65% Sediments UW 48 48 48 35 35 35 48 48 48 35 35 35 0% 100% 85% 90% 94% 72%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-57 BOREHOLE:OTD354 MINE AREA: North west flank
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Andesite Dykes UW 52 52 52 27 27 27 43 43 43 22 22 22 41% 100% 80% 80% 80% 51% Basaltic Sediments UW 48 50 55 34 36 39 44 47 53 32 34 38 15% 100% 85% 90% 94% 72% Monzodiorite UW 46 49 59 23 25 30 44 45 46 23 23 23 17% 100% 80% 80% 80% 51% Rhyolite Dykes UW 56 57 57 29 29 29 54 55 56 27 28 29 4% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-58 BOREHOLE:OTD360 MINE AREA: North west flank
NO PRIMARIES INCL. PRIMARIES RMR MRMR RMR MRMR M ADJUSTMENTS (SUPPORT) LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % WEAT ORI. STRES BLAST. ADJ. Granodiorite Dykes UW 48 48 48 24 24 24 44 44 44 22 22 22 23% 100% 80% 80% 80% 51% Monzodiorite MW 41 41 41 18 18 18 41 41 41 18 18 18 0% 85% 80% 80% 80% 44% Monzodiorite UW 43 46 54 22 23 27 38 43 54 20 22 27 19% 100% 80% 80% 80% 51% Rhyolite Dykes HW 46 46 46 18 18 18 38 38 38 15 15 15 48% 75% 80% 80% 80% 38% Rhyolite Dykes MW 44 44 44 19 19 19 44 44 44 19 19 19 0% 85% 80% 80% 80% 44% Rhyolite Dykes SW 59 59 59 28 28 28 53 53 53 26 26 26 18% 95% 80% 80% 80% 49% Rhyolite Dykes UW 47 53 62 24 27 32 43 48 62 22 25 32 19% 100% 80% 80% 80% 51%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-59 MINE AREA: FAR NORTH OYU
NO PRIMARIES INCL. PRIMARIES Q Q' Q Q' LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % Andesite Dykes MW 1.451 1.451 1.451 1.451 1.451 1.451 1.451 1.451 1.451 1.451 1.451 1.451 0% Andesite Dykes UW 1.052 2.149 4.449 1.052 2.149 4.449 0.929 1.987 4.449 0.929 2.008 4.449 8% Augite Basalt MW 1.559 1.559 1.559 1.559 1.559 1.559 1.559 1.559 1.559 1.559 1.559 1.559 0% Augite Basalt SW 1.469 1.469 1.469 1.469 1.469 1.469 1.469 1.469 1.469 1.469 1.469 1.469 0% Augite Basalt UW 0.185 1.188 4.381 0.185 1.188 4.381 0.227 1.046 4.381 0.227 1.092 4.381 17% Basalt Dykes SW 1.098 1.414 3.398 1.098 1.414 3.398 1.051 1.344 3.398 1.051 1.359 3.398 6% Basalt Dykes UW 0.119 1.559 6.422 0.119 1.559 6.422 0.147 1.504 6.422 0.147 1.522 6.422 7% Basaltic Sediments CW 0.885 0.885 0.885 2.214 2.214 2.214 2.214 0.885 2.214 2.214 2.214 2.214 0% Basaltic Sediments MW 1.116 1.541 2.987 1.116 1.541 2.987 1.085 1.524 2.987 1.085 1.528 2.987 1% Basaltic Sediments SW 1.082 3.040 5.942 1.082 3.040 5.942 1.074 2.992 5.942 1.074 2.999 5.942 3% Basaltic Sediments UW 0.442 1.365 6.086 0.442 1.365 6.086 0.441 1.329 6.086 0.441 1.334 6.086 2% Broken Zone UW 0.030 0.030 0.030 0.300 0.300 0.300 0.300 0.030 0.300 0.300 0.300 0.300 100% Conglomerate MW 1.591 1.955 2.357 1.591 1.955 2.357 1.591 1.945 2.357 1.591 1.946 2.357 0% Conglomerate SW 1.940 2.865 5.426 1.940 2.865 5.426 1.928 2.748 5.426 1.928 2.759 5.426 4% Conglomerate UW 1.105 2.094 5.545 1.105 2.094 5.545 1.105 1.960 5.545 1.105 1.978 5.545 7% Dacitic Ash Flow Tuff MW 1.877 1.877 1.877 1.877 1.877 1.877 1.877 1.877 1.877 1.877 1.877 1.877 0%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-60 MINE AREA: FAR NORTH OYU
NO PRIMARIES INCL. PRIMARIES Q Q' Q Q' LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % Dacitic Ash Flow Tuff UW 0.410 1.236 5.992 0.410 1.236 5.992 0.378 1.100 5.992 0.378 1.136 5.992 14% Dacitic Block Ash Tuff MW 0.950 1.260 1.360 0.950 1.260 1.360 0.823 0.960 1.090 0.823 1.024 1.090 24% Dacitic Block Ash Tuff UW 0.678 1.273 1.888 0.678 1.273 1.888 0.599 1.221 1.888 0.599 1.235 1.888 5% Fault MW 0.030 0.030 0.030 0.300 0.300 0.300 0.300 0.030 0.300 0.300 0.300 0.300 100% Fault UW 0.030 0.030 0.030 0.300 0.300 0.300 0.300 0.030 0.300 0.300 0.300 0.300 100% Fault Zone HW 0.030 0.030 0.030 0.300 0.300 0.300 0.300 0.030 0.300 0.300 0.300 0.300 100% Fault Zone UW 0.030 0.030 0.030 0.300 0.300 0.300 0.300 0.030 0.300 0.300 0.300 0.300 100% Granodiorite Dykes HW 0.678 0.839 1.156 1.694 2.098 2.889 1.687 0.830 2.844 1.687 2.078 2.844 1% Granodiorite Dykes MW 0.651 1.487 3.000 0.651 1.487 3.000 0.623 1.274 3.000 0.623 1.313 3.000 14% Granodiorite Dykes SW 0.732 1.399 5.710 0.732 1.399 5.710 0.568 1.161 5.710 0.568 1.218 5.710 21% Granodiorite Dykes UW 0.033 1.662 6.094 0.033 1.662 6.094 0.033 1.534 6.094 0.033 1.560 6.094 10% Hydrothermal Breccia SW 2.796 2.796 2.796 2.796 2.796 2.796 2.796 2.796 2.796 2.796 2.796 2.796 0% Hydrothermal Breccia UW 0.983 1.129 1.422 0.983 1.129 1.422 0.983 1.123 1.422 0.983 1.125 1.422 0% Monzodiorite MW 1.446 1.446 1.446 1.446 1.446 1.446 1.446 1.446 1.446 1.446 1.446 1.446 0% Monzodiorite SW 1.557 1.653 1.730 1.557 1.653 1.730 1.531 1.559 1.609 1.531 1.574 1.609 6% Monzodiorite UW 0.040 0.892 6.491 0.040 0.892 6.491 0.040 0.807 6.491 0.040 0.841 6.491 13%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-61 MINE AREA: FAR NORTH OYU
NO PRIMARIES INCL. PRIMARIES Q Q' Q Q' LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % Quartz Vein UW 0.650 1.107 1.524 0.650 1.107 1.524 0.650 1.094 1.524 0.650 1.097 1.524 1% Rhyolite Dykes SW 1.851 1.851 1.851 1.851 1.851 1.851 1.056 0.918 1.056 1.056 1.056 1.056 51% Rhyolite Dykes UW 0.109 1.666 4.844 0.109 1.666 4.844 0.234 1.455 4.844 0.234 1.523 4.844 25% Sediments HW 0.501 0.591 0.854 1.254 1.477 2.134 1.242 0.567 1.964 1.242 1.425 1.964 3% Sediments MW 1.166 2.242 44.33 1.166 2.242 44.33 1.166 2.119 44.33 1.166 2.138 44.33 7% Sediments SW 0.730 1.266 2.431 0.730 1.266 2.431 0.608 1.236 2.431 0.608 1.246 2.431 4% Sediments UW 0.464 1.306 3.989 0.464 1.306 3.989 0.464 1.227 3.562 0.464 1.242 3.562 6%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-62 MINE AREA: NORTH WEST FLANK
NO PRIMARIES INCL. PRIMARIES Q Q' Q Q' LITHOLOGY WEATHERING MIN AVG MAX MIN AVG MAX MIN AVG MAX MIN AVG MAX % Andesite Dykes UW 2.186 2.186 2.186 2.186 2.186 2.186 1.420 1.311 1.420 1.420 1.420 1.420 41% Basaltic Sediments UW 1.153 1.673 2.698 1.153 1.673 2.698 0.973 1.466 2.462 0.973 1.506 2.462 15% Granodiorite Dykes UW 1.566 1.566 1.566 1.566 1.566 1.566 1.268 1.205 1.268 1.268 1.268 1.268 23% Monzodiorite MW 1.187 1.187 1.187 1.187 1.187 1.187 1.187 1.187 1.187 1.187 1.187 1.187 0% Monzodiorite UW 0.740 1.508 3.676 0.740 1.508 3.676 0.529 1.171 1.940 0.529 1.220 1.940 18% Rhyolite Dykes HW 0.645 0.645 0.645 1.614 1.614 1.614 0.979 0.348 0.979 0.979 0.979 0.979 48% Rhyolite Dykes MW 1.783 1.783 1.783 1.783 1.783 1.783 1.783 1.783 1.783 1.783 1.783 1.783 0% Rhyolite Dykes SW 2.906 2.906 2.906 2.906 2.906 2.906 2.438 2.390 2.438 2.438 2.438 2.438 18% Rhyolite Dykes UW 0.651 1.311 6.157 0.651 1.311 6.157 0.614 1.095 6.157 0.614 1.144 6.157 18%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-63 The RMR, MRMR, Q and Q' data is tabulated, showing the minimum, maximum, mean, 25th percentile and 75th percentile values for each parameter.
WEIGHTED BY CAVING FN EAST INTERVAL MRMR INCL PRIMARIES NUMBER OF LITHOLOGY W CODE LENGTH MIN 25% AVE 75% MAX ENTRIES ------------------------------------------------------------------------------------------------------------------------------- Andesite Dykes HW 1 1 Andesite Dykes MW 2 0 Andesite Dykes SW 3 0 Andesite Dykes UW 4 45 36 41 44 46 53 11 Augite Basalt HW 5 1 Augite Basalt MW 6 36 36 36 36 36 36 1 Augite Basalt SW 7 40 40 40 40 40 40 1 Augite Basalt UW 8 41 30 36 41 45 53 43 Basalt Dykes HW 9 0 Basalt Dykes MW 10 0 Basalt Dykes SW 11 36 36 36 36 36 36 1 Basalt Dykes UW 12 42 32 36 41 44 52 24 Basaltic Sediments HW 13 3 Basaltic Sediments MW 14 34 32 33 36 37 41 7 Basaltic Sediments SW 15 44 29 43 46 50 41 3 Basaltic Sediments UW 16 42 32 38 42 46 56 48 Basaltic Sediments CW 62 37 37 37 37 37 37 1 Broken Zone HW 17 0 Broken Zone SW 18 0 Broken Zone UW 19 23 23 23 23 23 23 1 Conglomerate HW 20 2 Conglomerate MW 21 37 37 37 37 38 39 4 Conglomerate SW 22 42 38 41 43 46 47 3 Conglomerate UW 23 45 41 43 53 47 53 8 Cover Material CW 24 12 Dacitic Ash Flow Tuff HW 25 1 Dacitic Ash Flow Tuff MW 26 40 40 40 40 40 40 1 Dacitic Ash Flow Tuff SW 27 0 Dacitic Ash Flow Tuff UW 28 40 29 36 39 42 52 44 Dacitic Block Ash Tuff MW 29 0 Dacitic Block Ash Tuff UW 30 40 29 37 40 42 53 10 Fault HW 31 0 Fault MW 32 20 20 20 20 20 20 2 Fault SW 33 0 Fault UW 34 23 23 23 23 23 23 11 Fault Zone HW 35 0 Fault Zone MW 36 0 Fault Zone SW 37 0 Fault Zone UW 38 23 23 23 23 23 23 2 Fine Laminated Tuff UW 39 0 Granodiorite Dykes HW 40 34 34 34 34 34 34 1 Granodiorite Dykes MW 41 27 27 27 27 27 27 1 Granodiorite Dykes SW 42 39 30 37 42 37 52 3 Granodiorite Dykes UW 43 44 31 37 45 53 59 21 Hydrothermal Breccia SW 44 0 Hydrothermal Breccia UW 45 41 41 41 41 41 41 1 Monzodiorite CW 46 0 Monzodiorite HW 47 0 Monzodiorite MW 48 0 Monzodiorite SW 49 0 Monzodiorite UW 50 38 31 35 40 35 59 11 Quartz Vein UW 51 38 38 38 38 38 38 1 Rhyolite Dykes HW 52 0 Rhyolite Dykes MW 53 0 Rhyolite Dykes SW 54 34 34 34 34 34 34 1 Rhyolite Dykes UW 55 42 32 37 44 50 56 10 Sediments HW 56 27 19 25 26 27 23 2 Sediments MW 57 31 23 29 33 31 60 9 Sediments SW 58 37 32 35 37 38 42 6 Sediments UW 59 39 31 35 39 43 48 55 Shear Zone UW 60 0 Shear Zone CW 61 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-64
WEIGHTED BY CAVING FN ORE INTERVAL MRMR INCL PRIMARIES NUMBER OF LITHOLOGY W CODE LENGTH MIN 25% AVE 75% MAX ENTRIES ------------------------------------------------------------------------------------------------------------------------------- Andesite Dykes HW 1 0 Andesite Dykes MW 2 0 Andesite Dykes SW 3 0 Andesite Dykes UW 4 49 49 49 49 49 49 1 Augite Basalt HW 5 0 Augite Basalt MW 6 0 Augite Basalt SW 7 0 Augite Basalt UW 8 41 35 38 42 43 59 10 Basalt Dykes HW 9 0 Basalt Dykes MW 10 0 Basalt Dykes SW 11 0 Basalt Dykes UW 12 43 36 40 46 52 56 6 Basaltic Sediments HW 13 0 Basaltic Sediments MW 14 0 Basaltic Sediments SW 15 0 Basaltic Sediments UW 16 46 42 44 45 46 47 3 Basaltic Sediments CW 62 0 Broken Zone HW 17 0 Broken Zone SW 18 0 Broken Zone UW 19 0 Conglomerate HW 20 0 Conglomerate MW 21 0 Conglomerate SW 22 0 Conglomerate UW 23 0 Cover Material CW 24 0 Dacitic Ash Flow Tuff HW 25 0 Dacitic Ash Flow Tuff MW 26 0 Dacitic Ash Flow Tuff SW 27 0 Dacitic Ash Flow Tuff UW 28 41 28 38 41 45 57 42 Dacitic Block Ash Tuff MW 29 0 Dacitic Block Ash Tuff UW 30 46 40 44 46 48 50 4 Fault HW 31 0 Fault MW 32 0 Fault SW 33 0 Fault UW 34 23 23 23 23 23 23 6 Fault Zone HW 35 0 Fault Zone MW 36 0 Fault Zone SW 37 0 Fault Zone UW 38 23 23 23 23 23 23 4 Fine Laminated Tuff UW 39 0 Granodiorite Dykes HW 40 0 Granodiorite Dykes MW 41 0 Granodiorite Dykes SW 42 0 Granodiorite Dykes UW 43 50 50 50 50 50 50 1 Hydrothermal Breccia SW 44 0 Hydrothermal Breccia UW 45 35 34 36 38 40 41 2 Monzodiorite CW 46 0 Monzodiorite HW 47 0 Monzodiorite MW 48 0 Monzodiorite SW 49 0 Monzodiorite UW 50 56 56 56 56 56 56 1 Quartz Vein UW 51 41 41 41 41 41 41 1 Rhyolite Dykes HW 52 0 Rhyolite Dykes MW 53 0 Rhyolite Dykes SW 54 0 Rhyolite Dykes UW 55 44 40 43 48 52 59 3 Sediments HW 56 0 Sediments MW 57 0 Sediments SW 58 0 Sediments UW 59 0 Shear Zone UW 60 0 Shear Zone CW 61 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-65
WEIGHTED BY CAVING FN WEST INTERVAL MRMR INCL PRIMARIES NUMBER OF LITHOLOGY W CODE LENGTH MIN 25% AVE 75% MAX ENTRIES ------------------------------------------------------------------------------------------------------------------------------- Andesite Dykes HW 1 0 Andesite Dykes MW 2 42 42 42 42 42 42 1 Andesite Dykes SW 3 0 Andesite Dykes UW 4 44 23 35 41 46 59 5 Augite Basalt HW 5 0 Augite Basalt MW 6 0 Augite Basalt SW 7 0 Augite Basalt UW 8 39 23 35 40 42 59 51 Basalt Dykes HW 9 1 Basalt Dykes MW 10 0 Basalt Dykes SW 11 44 43 45 47 49 50 2 Basalt Dykes UW 12 40 12 Basaltic Sediments HW 13 1 Basaltic Sediments MW 14 37 37 37 37 37 37 2 Basaltic Sediments SW 15 34 34 34 34 34 34 1 Basaltic Sediments UW 16 42 35 40 43 46 50 4 Basaltic Sediments CW 62 0 Broken Zone HW 17 0 Broken Zone SW 18 0 Broken Zone UW 19 0 Conglomerate HW 20 0 Conglomerate MW 21 42 42 42 42 42 42 1 Conglomerate SW 22 0 Conglomerate UW 23 0 Cover Material CW 24 10 Dacitic Ash Flow Tuff HW 25 0 Dacitic Ash Flow Tuff MW 26 1 Dacitic Ash Flow Tuff SW 27 0 Dacitic Ash Flow Tuff UW 28 39 23 36 40 42 59 61 Dacitic Block Ash Tuff MW 29 31 31 31 31 31 31 2 Dacitic Block Ash Tuff UW 30 42 23 35 40 42 59 6 Fault HW 31 0 Fault MW 32 0 Fault SW 33 0 Fault UW 34 23 23 23 23 23 23 5 Fault Zone HW 35 18 18 18 18 18 18 1 Fault Zone MW 36 0 Fault Zone SW 37 0 Fault Zone UW 38 23 23 23 23 23 23 4 Fine Laminated Tuff UW 39 0 Granodiorite Dykes HW 40 38 38 38 38 38 38 7 Granodiorite Dykes MW 41 34 28 32 35 37 42 10 Granodiorite Dykes SW 42 37 5 Granodiorite Dykes UW 43 40 84 Hydrothermal Breccia SW 44 50 50 50 50 50 50 1 Hydrothermal Breccia UW 45 40 26 39 27 41 28 2 Monzodiorite CW 46 0 Monzodiorite HW 47 0 Monzodiorite MW 48 39 39 39 39 39 39 1 Monzodiorite SW 49 44 29 43 30 45 30 2 Monzodiorite UW 50 39 31 37 39 42 44 19 Quartz Vein UW 51 41 25 39 41 42 28 4 Rhyolite Dykes HW 52 1 Rhyolite Dykes MW 53 0 Rhyolite Dykes SW 54 0 Rhyolite Dykes UW 55 41 18 35 39 42 59 9 Sediments HW 56 4 Sediments MW 57 32 18 35 39 42 54 8 Sediments SW 58 39 35 38 40 43 46 3 Sediments UW 59 40 35 37 40 43 46 11 Shear Zone UW 60 0 Shear Zone CW 61 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-66
WEIGHTED BY UG SUPPORT FN EAST INTERVAL MRMR INCL PRIMARIES NUMBER OF LITHOLOGY W CODE LENGTH MIN 25% AVE 75% MAX ENTRIES ------------------------------------------------------------------------------------------------------------------------------- Andesite Dykes HW 1 1 Andesite Dykes MW 2 0 Andesite Dykes SW 3 0 Andesite Dykes UW 4 30 24 28 29 31 35 11 Augite Basalt HW 5 1 Augite Basalt MW 6 29 29 29 29 29 29 1 Augite Basalt SW 7 32 32 32 32 32 32 1 Augite Basalt UW 8 33 24 29 33 36 42 43 Basalt Dykes HW 9 0 Basalt Dykes MW 10 0 Basalt Dykes SW 11 24 24 24 24 24 24 1 Basalt Dykes UW 12 28 21 24 27 29 35 24 Basaltic Sediments HW 13 3 Basaltic Sediments MW 14 27 26 26 28 30 32 7 Basaltic Sediments SW 15 35 29 34 36 40 41 3 Basaltic Sediments UW 16 33 26 31 33 37 45 48 Basaltic Sediments CW 62 30 30 30 30 30 30 1 Broken Zone HW 17 0 Broken Zone SW 18 0 Broken Zone UW 19 15 15 15 15 15 15 1 Conglomerate HW 20 2 Conglomerate MW 21 30 29 29 30 30 31 4 Conglomerate SW 22 34 31 33 35 37 38 3 Conglomerate UW 23 36 32 34 42 37 42 8 Cover Material CW 24 12 Dacitic Ash Flow Tuff HW 25 1 Dacitic Ash Flow Tuff MW 26 32 32 32 32 32 32 1 Dacitic Ash Flow Tuff SW 27 0 Dacitic Ash Flow Tuff UW 28 32 23 28 31 34 42 44 Dacitic Block Ash Tuff MW 29 0 Dacitic Block Ash Tuff UW 30 28 21 26 28 30 38 10 Fault HW 31 0 Fault MW 32 14 14 14 14 14 14 2 Fault SW 33 0 Fault UW 34 15 15 15 15 15 15 11 Fault Zone HW 35 0 Fault Zone MW 36 0 Fault Zone SW 37 0 Fault Zone UW 38 15 15 15 15 15 15 2 Fine Laminated Tuff UW 39 0 Granodiorite Dykes HW 40 23 23 23 23 23 23 1 Granodiorite Dykes MW 41 18 18 18 18 18 18 1 Granodiorite Dykes SW 42 26 20 25 28 25 35 3 Granodiorite Dykes UW 43 29 20 25 30 35 39 21 Hydrothermal Breccia SW 44 0 Hydrothermal Breccia UW 45 28 28 28 28 28 28 1 Monzodiorite CW 46 0 Monzodiorite HW 47 0 Monzodiorite MW 48 0 Monzodiorite SW 49 0 Monzodiorite UW 50 25 20 23 27 23 39 11 Quartz Vein UW 51 25 25 25 25 25 25 1 Rhyolite Dykes HW 52 0 Rhyolite Dykes MW 53 0 Rhyolite Dykes SW 54 23 23 23 23 23 23 1 Rhyolite Dykes UW 55 28 22 25 30 33 37 10 Sediments HW 56 22 19 20 21 22 23 2 Sediments MW 57 24 18 23 27 25 48 9 Sediments SW 58 29 26 28 30 31 33 6 Sediments UW 59 31 24 28 31 35 38 55 Shear Zone UW 60 0 Shear Zone CW 61 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-67
WEIGHTED BY UG SUPPORT FN ORE INTERVAL MRMR INCL PRIMARIES NUMBER OF LITHOLOGY W CODE LENGTH MIN 25% AVE 75% MAX ENTRIES ------------------------------------------------------------------------------------------------------------------------------- Andesite Dykes HW 1 0 Andesite Dykes MW 2 0 Andesite Dykes SW 3 0 Andesite Dykes UW 4 32 32 32 32 32 32 1 Augite Basalt HW 5 0 Augite Basalt MW 6 0 Augite Basalt SW 7 0 Augite Basalt UW 8 33 28 30 33 35 47 10 Basalt Dykes HW 9 0 Basalt Dykes MW 10 0 Basalt Dykes SW 11 0 Basalt Dykes UW 12 29 24 27 31 35 37 6 Basaltic Sediments HW 13 0 Basaltic Sediments MW 14 0 Basaltic Sediments SW 15 0 Basaltic Sediments UW 16 37 34 35 36 37 37 3 Basaltic Sediments CW 62 0 Broken Zone HW 17 0 Broken Zone SW 18 0 Broken Zone UW 19 0 Conglomerate HW 20 0 Conglomerate MW 21 0 Conglomerate SW 22 0 Conglomerate UW 23 0 Cover Material CW 24 0 Dacitic Ash Flow Tuff HW 25 0 Dacitic Ash Flow Tuff MW 26 0 Dacitic Ash Flow Tuff SW 27 0 Dacitic Ash Flow Tuff UW 28 33 22 30 33 36 45 42 Dacitic Block Ash Tuff MW 29 0 Dacitic Block Ash Tuff UW 30 33 29 31 32 34 35 4 Fault HW 31 0 Fault MW 32 0 Fault SW 33 0 Fault UW 34 15 15 15 15 15 15 6 Fault Zone HW 35 0 Fault Zone MW 36 0 Fault Zone SW 37 0 Fault Zone UW 38 15 15 15 15 15 15 4 Fine Laminated Tuff UW 39 0 Granodiorite Dykes HW 40 0 Granodiorite Dykes MW 41 0 Granodiorite Dykes SW 42 0 Granodiorite Dykes UW 43 33 33 33 33 33 33 1 Hydrothermal Breccia SW 44 0 Hydrothermal Breccia UW 45 24 23 24 25 26 28 2 Monzodiorite CW 46 0 Monzodiorite HW 47 0 Monzodiorite MW 48 0 Monzodiorite SW 49 0 Monzodiorite UW 50 37 37 37 37 37 37 1 Quartz Vein UW 51 28 28 28 28 28 28 1 Rhyolite Dykes HW 52 0 Rhyolite Dykes MW 53 0 Rhyolite Dykes SW 54 0 Rhyolite Dykes UW 55 29 26 29 32 35 39 3 Sediments HW 56 0 Sediments MW 57 0 Sediments SW 58 0 Sediments UW 59 0 Shear Zone UW 60 0 Shear Zone CW 61 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 1-68
WEIGHTED BY UG SUPPORT FN WEST INTERVAL MRMR INCL PRIMARIES NUMBER OF LITHOLOGY W CODE LENGTH MIN 25% AVE 75% MAX ENTRIES ------------------------------------------------------------------------------------------------------------------------------- Andesite Dykes HW 1 0 Andesite Dykes MW 2 28 28 28 28 28 28 1 Andesite Dykes SW 3 0 Andesite Dykes UW 4 29 15 27 30 33 40 5 Augite Basalt HW 5 0 Augite Basalt MW 6 0 Augite Basalt SW 7 0 Augite Basalt UW 8 31 15 27 30 33 40 51 Basalt Dykes HW 9 1 Basalt Dykes MW 10 0 Basalt Dykes SW 11 29 29 30 31 32 34 2 Basalt Dykes UW 12 27 12 Basaltic Sediments HW 13 1 Basaltic Sediments MW 14 29 29 29 29 29 29 2 Basaltic Sediments SW 15 27 27 27 27 27 27 1 Basaltic Sediments UW 16 33 28 32 34 37 40 4 Basaltic Sediments CW 62 0 Broken Zone HW 17 0 Broken Zone SW 18 0 Broken Zone UW 19 0 Conglomerate HW 20 0 Conglomerate MW 21 34 34 34 34 34 34 1 Conglomerate SW 22 0 Conglomerate UW 23 0 Cover Material CW 24 10 Dacitic Ash Flow Tuff HW 25 0 Dacitic Ash Flow Tuff MW 26 1 Dacitic Ash Flow Tuff SW 27 0 Dacitic Ash Flow Tuff UW 28 31 15 28 31 33 42 61 Dacitic Block Ash Tuff MW 29 25 25 25 25 25 25 2 Dacitic Block Ash Tuff UW 30 30 15 28 31 33 42 6 Fault HW 31 0 Fault MW 32 0 Fault SW 33 0 Fault UW 34 15 15 15 15 15 15 5 Fault Zone HW 35 12 12 12 12 12 12 1 Fault Zone MW 36 0 Fault Zone SW 37 0 Fault Zone UW 38 15 15 15 15 15 15 4 Fine Laminated Tuff UW 39 0 Granodiorite Dykes HW 40 26 26 26 26 26 26 7 Granodiorite Dykes MW 41 23 19 21 23 25 28 10 Granodiorite Dykes SW 42 25 5 Granodiorite Dykes UW 43 27 84 Hydrothermal Breccia SW 44 34 34 34 34 34 34 1 Hydrothermal Breccia UW 45 27 26 26 27 27 28 2 Monzodiorite CW 46 0 Monzodiorite HW 47 0 Monzodiorite MW 48 26 26 26 26 26 26 1 Monzodiorite SW 49 30 29 29 30 30 30 2 Monzodiorite UW 50 26 20 25 26 28 29 19 Quartz Vein UW 51 27 25 26 27 28 28 4 Rhyolite Dykes HW 52 1 Rhyolite Dykes MW 53 0 Rhyolite Dykes SW 54 0 Rhyolite Dykes UW 55 27 12 25 28 32 42 9 Sediments HW 56 4 Sediments MW 57 26 12 25 28 32 42 8 Sediments SW 58 31 28 30 32 34 37 3 Sediments UW 59 32 28 29 32 35 37 11 Shear Zone UW 60 0 Shear Zone CW 61 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-69 2 UNDERGROUND MINING 2.1 MINING METHOD SELECTION In selecting the underground mining methods appropriate for the extraction of large, relatively low grade deposits; consideration has to be given too many factors. Some of the more important ones are: - Minimising capital expenditure - Minimising operating costs - Ability to produce higher grade material early - Ability to ramp up production rapidly - Ability to generate high production outputs - Ability to create a "rock factory", i.e. high production rates with minimal delays and production interruptions When considering these factors, it is obvious that certain mining methods will be ruled out. These methods include: - CUT AND FILL. This is generally a bottom-up method which means development has to reach the lowest part of the deposit before production can commence, which would delay the start of production. While it may be possible to mine high grades selectively, it is a high cost and low productivity method. The Hugo South and Hugo North deposit geometries are not suitable since they are too wide and the mineralised material too geologically weak. - ROOM AND PILLAR. This is a low resource recovery and low productivity method with relatively high operating costs, since all ore is mined at close to development costs. - NARROW VEIN BENCHING METHODS. These are appropriate only for low tonnage rates, high grades and selective mining of narrow width deposits. Candidate methods that satisfy most of the criteria for large, low-grade deposits include: - Open stoping - Open stoping with backfill - Vertical crater retreat - Sub level caving (SLC) - Block/panel caving The first three (open stoping, open stoping with backfill and vertical crater retreat) are largely dependent on the stopes remaining stable while material is being extracted from them. This limits the maximum permissible stope dimensions, which are determined by the rock mass conditions. SLC is dependent on the cavability of the overlying rock mass while block caving is dependent on the cavability of both the mineralised material and the overlying rock mass. In both caving methods fragmentation is also an important consideration. The issues of cavability and open stope stability were investigated and are reported in the sections that follow. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-70 2.1.1 CAVABILITY AND FRAGMENTATION CAVABILITY The geotechnical data (presented in the Section 1.4.1) for the rock types within the Hugo South ore zone was analysed for cavability. The Mining Rock Mass Rating (MRMR) range (average of MRMRmin to MRMRmax range) was plotted on the Laubscher caving/stability chart as shown in Section 1.4.1, Figure 2. This shows that for the Hugo South deposit and the rock mass directly above it, the value of the hydraulic radius that will be required to induce caving will lie between 20 and 27. SRK designed the initial undercut based on a hydraulic radius of 30m. The footprint of the Hugo South deposit is approximately 950m by 300m which equates to a hydraulic radius of 114m. The footprint Hugo North deposit is approximately 400m by 200m or a hydraulic radius of 67m. Thus the deposit footprint areas are far in excess of the area needed to initiate and sustain caving. FRAGMENTATION As reported in Section 1.4.2, from empirical and benchmark assessment fragmentation is likely to be in a range between 0.1m to 5.0m, with the primary and secondary oversize (greater than 2m3 blocks) likely range from 15% to 25% and 5% to 10% respectively. Therefore, cavability and fragmentation assessments indicate the rock mass is suitable for caving methods. 2.1.2 OPEN STOPE STABILITY In Section 1.4.3 it is shown that the modified stability number (N') has an average of 5.25 which equates to a hydraulic radius of 4.5m. This means, on average, open stopes can only have plan dimensions of approximately 18m by 18m for them to remain stable without the addition of cable support. The deposit footprint would have to be mined in a checkerboard pattern and with such small stopes productivity would be low and capital and operating costs relatively high. Cable support at best may double the unsupported stope dimensions. Also open stopes constructed on a checkerboard pattern would require complicated and costly filling and ventilation infrastructure. 2.1.3 METHODS SELECTED Of the candidate bulk mining methods the following were ruled out for the following reasons: - OPEN STOPING. Without post-filling, this is a low resource recovery method, since some mineralised material will remain in the form of pillars. In relatively weak ground conditions stopes will have to be small and productivity will be low. This method would be useful to take out small high-grade stopes if and where, the mineralised zones are too narrow for caving methods, but low resource recovery would still be an issue. - OPEN STOPING WITH BACKFILL. Productivity would be much lower than for SLC or block caving. Operating costs would be substantially higher and there would not be an offsetting reduction in capital cost. This method would be useful to take out small high-grade stopes if and where, the mineralised zones are too narrow for caving methods, and where grades are such that high recovery is required. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-71 - VERTICAL CRATER RETREAT. VCR with or without post-filling, would just be a variation in the blasting method compared to conventional open stoping. There is no particular need to employ a shrinkage method normally used where wall rock is weaker that the ore. - The remaining candidate mining methods are block caving and SLC Both methods represent the lowest cost and highest productivity methods available for the mining of large deposits such as Hugo South and Hugo North. The 10Mt/a block cave mining method has emerged as the most cost effective and productive mining method and is addressed in detail in the following section. The 5Mt/a SLC mining method analysis was completed in conjunction with the block cave analysis and can be viewed in Appendix 3. 2.2 HUGO SOUTH DEPOSIT 10MT/A BLOCK CAVE MINE INFRASTRUCTURE This section of the report describes the underground infrastructure and ventilation requirements for the different cases studied for the proposed underground mining operations of the Hugo South deposit. Capital and operating costs for the proposed infrastructure are also provided. The ore body will be accessed by means of a single 6m x 6m, 4,480m long decline from surface. Associated with this decline is a 3.0m diameter ventilation raise, which will service the return air requirements of the decline during development. The decline will also carry a considerable proportion of the underground service needs. In addition, a hoisting shaft will extend from surface to the shaft station at 525 RL (640m below surface). This shaft will be fitted with a brattice wall and will be used for both intake and return air requirements. At full production, three crushers will be required to crush the ore before it is loaded onto a series of conveyor belts on a transfer level. It will then be conveyed to bins near the shaft, transferred to loading flasks at the shaft station, and hoisted to surface. 2.2.1 SHAFT, HEADGEAR AND WINDING PLANT The mine will have two primary access systems for both options: - Main hoisting shaft with a bratticed upcast segment - Access decline. MAIN HOISTING SHAFT The design parameters, detailed in Table 12 below, pertain to the main hoisting shaft for each of the two mining methods being considered. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-72 TABLE 12: SHAFT DESCRIPTION
ITEM DESCRIPTION ---- ----------- Type Circular Vertical Bratticed Diameter 9.5m finished Downcast segment area 44.4 m(2) Upcast segment area 23.7 m(2) Lining 150mm 30mPa concrete Cast in items Bunton and nut boxes Brattice wall 300mm concrete panels Depth 790m (Collar to bottom) Furnishings Steel equipped buntons-5m spacing Guides Top hat steel section Stations/outlets 525RL double sided 475RL double sided 1105RL perch water ring Station support Wire mesh and lace 300m (2) Station safety devices Farm gates on each compartment Loading boxes 2 sets
The shaft configurations are shown diagrammatically in Appendices 2.1 to 2.4. HEADGEAR The headgear has not been subjected to detailed design evaluation. The headgear design parameters are shown in Table 13 below. TABLE 13: HEADGEAR DESCRIPTION
ITEM DESCRIPTION ---- ----------- Type Reinforced concrete Finish Raw concrete Compartments 9 including brattice Height +/- 76m Housing 2 Winders Duty Permanent and sinking duty
The headgear will be constructed prior to and used for the sinking operation. WINDING PLANT SRK undertook a preliminary design of permanent hoisting equipment. The rock winding plant and service winding plant design parameters are shown in Table 14 and Table 15 respectively. TABLE 14: ROCK WINDING PLANT
ITEM DESCRIPTION ---- ----------- Type Multi-rope Koepe Number of winders 2 x Koepe Number of ropes/winder 4 head, 4 tail Deflection sheaves/winder 4 Tail condition Open Loop Rope size 42 mm Installed power 7400 kW (3700 kW each) Motor type AC Squirrel Cage Drives Frequency Converters Speed of wind 15m/s Duty 20 h/day Performance 10.8 Mt/a (5.4 Mt/a each) Payload capacity (per skip) 25,000 kg
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-73 TABLE 15: SERVICE WINDING PLANT
ITEM DESCRIPTION ---- ----------- Type Double drum Number of winders 1 Number of ropes/winder 2 Deflection sheaves/winder 2 Rope size 30mm Installed power 656 kW Motor type DC Drives Ward Leonard Speed of wind 10m/s Duty 20 h/day Capacity of conveyance 20 people per deck 2 decks, two conveyances
Three winders will be used during the sinking of the shaft. It is likely that one of the winders would be used to assist and expedite equipping operations. The shaft construction schedules for are given in Appendices 2.1 to 2.4. 2.2.2 SHAFT SINKING PROCEDURE Details concerning the sinking procedure for the main vertical shaft during the various phases of shaft sinking and construction follow: SINKING PHASE The following equipment is needed for the sinking phase: - Two Koepe winders, with rope wound onto the drums, and with kibbles attached to the ropes - A stage winder, with a five or six deck stage attached to the ropes, which are reeved to achieve a six or eight rope configuration - The required ventilation, cementation, electrical, air and water services in the shaft. The stage winder may have various configurations depending on their availability: - The stage winder may be a two-rope friction type winder with ropes reeved to form three or four falls per rope - The stage winder may be a slow speed double drum winder with ropes reeved to form three or four falls per rope - The stage winder may be a four-drum slow speed winder with each rope reeved into two falls. In many cases in South Africa, the two-drum stage winder is used and it is not removed after sinking. The winder is then used for easy and quick re-reeving of the replacement ropes on the Koepe winders. A schematic representation of the shaft, showing the plan in the sinking phase is shown in Appendix 2.1. EQUIPPING PHASE The following equipment is needed for the equipping phase: - Two Koepe winders, with rope wound onto the drums, and with kibbles attached to the ropes January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-74 - A stage winder, with a five or six deck stage (modified to allow the installation of the brattice wall) attached to the ropes, that are reeved to achieve a six or eight rope configuration - The required ventilation, cementation, electrical, air and water services in the shaft. A schematic representation of the shaft, showing the plan, in the equipping phase is shown in Appendix 2.2. PERMANENT CONFIGURATION A schematic representation of the shaft in the permanent configuration is shown in the Appendices; showing the plan cross-section in Appendix 2.3 and the vertical section in Appendix 2.4. 2.2.3 DEWATERING FACILITIES Mine dewatering designs have been based on assumed water usage and inflow figures, shown in Table 16. TABLE 16: WATER CONSUMPTION
WATER CONSUMPTION EQUIPMENT TYPE PRODUCTION DEVELOPMENT TOTAL L/S L/S L/S ------------------------------------------------------------------------------------------ Underground seepage water 12.5 3.3 15.8 Wetting down of draw points 12.7 3.2 15.9 Ore Drive jumbo 0 3.6 3.6 Longhole rig 2.7 0 2.7 Development jumbo 0 3.6 3.6 Longhole production drill 0.6 0 0.6 Quasar jumbo 1.8 0 1.8 Shotcrete Normet Spraymec 0.8 0.8 1.6 Conveyor sprayers 1.3 0 1.3 Dust suppression at loading points 1.3 0 1.3 Raiseborer (make-up) 0.1 0 0.1 Raiseborer (make-up) 0.1 0 0.1 TOTAL 33.9 14.5 48.4
During development, temporary pump stations will be established in the decline at intervals of approximately 200m of decline development (approximately 28m vertically). Vertical spindle rubber lined dewatering pumps will be placed on standard frames and will be set in a small sump established adjacent to the decline and immediately downstream of a grit trap. The road gradient will ensure that any water made in the decline will report to this grit trap that can be cleaned by a load-haul-dump unit (LHD). A maximum of three such installations will be placed in series. Thereafter, and at intervals of approximately 600m (84m vertically), positive displacement dirty water pump installations will be established and will be `leapfrogged' down to the bottom of the decline. Three vertical spindle pumps will be needed as three-stage sump pumping is required to overcome the 84m head between temporary pump stations. Two positive displacement pumps will be used. Once the second installation has been commissioned, it will be possible to establish a by-pass around the first and remove this for use on the next move. The design parameters pertaining to the pumps required are listed below in Table 17. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-75 TABLE 17: PUMP SPECIFICATIONS
ITEM SPECIFICATIONS ---- -------------- Type of pump Positive displacement, dirty water Duty required 18 l/s @790m head Number of pumps 2 plus 1 spare Type of pump Vertical spindle, dirty water Duty required 28m head, 18 l/s Number of pumps 3 plus 2 spare
150mm pressure rated pipe will be used for the positive displacement pipe system, while 16 bar rated pipe will be sufficient for the vertical spindle pump system. Once the decline has reached the bottom level, a permanent pump station will be established (at the bottom of the conveyor incline on 520 RL) to discharge all of the mines' dirty water through a 200mm pressure rated column installed up the conveyor incline and the main shaft to the surface plant. The pump station will have three (two working, one spare) 60 l/s high lift clear water pumps, fed from a 4m diameter high rate settler. The positive displacement pumps and their column, used for the decline development, will be used to pump the mud to surface. The dewatering reticulation is illustrated in Appendix 2.5. A drainage system has been placed on each working level to facilitate the dewatering of the cross-cuts and haulages. The undercut, extraction and transfer levels have been equipped with columns and spindle pumps to pump drain water from the cross-cuts to the drain holes. A system of drain holes from the undercut level to the dirty water dam at the pump station has been included. There are four drain holes between 575 RL and 525 RL. On 525 RL the drain water is pumped to the single drain hole between 550 RL and the dirty water dam of the main pump station. 2.2.4 SERVICE WATER FACILITIES The service water supply is assumed to be between 6 and 10 bar. The requirement for water will be, on average, 33 litres per second. At peak, the requirement for water will be 48 litres per second, based on machine water requirements and wetting down requirements underground. A 150mm diameter, 6mm thick galvanised steel pipe will be installed in the whole length at the decline. The supply pressure will then be reduced by passing the water through a 150 NB ratio valve as required to keep the service water pressure between 6 and 10 bar at all times. At each intersection with the working levels (at 575 RL, 550 RL and 525 RL), the column will tee off to service the production on the level and reduce to 100mm columns running north and south. 2.2.5 ELECTRICAL RETICULATION An underground supply voltage of 11 kV was chosen for the purpose of this study. It should be noted; this may change during more detailed work, including consideration of the optimal supply voltage which will be made available at the mine site. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-76 The surface supply voltage must be transformed to 11 kV for the underground reticulation. Provision has been made for these transformers on surface in Section 12.9.1 dealing with surface power reticulation. The surface supply required to meet underground demand is 7.4 MVA, excluding any spare capacity that may be required. A temporary substation will be established in the decline after every 600m of decline development (approximately 84m vertically). A 1250 kVA (1000 V) transformer will be used to supply the power to the mining equipment, while a 630 kVA (1000 V) transformer will supply the temporary pump station and the ventilation equipment. A further 240 V lighting transformer will be supplied to provide lighting to the area. Two 300m lengths of 185 mm(2) HT cable will be required for each of the seven temporary substations. LT cable will be supplied to move the equipment down the ramp to the next temporary substation. When the decline intersects 575 RL (the undercut level) a permanent substation will be established to supply a 1250 kVA (1000 V) transformer. This transformer is used to supply the trackless mining equipment, the axial fans, the sump pumps and all other electrical equipment on the level. When the decline intersects 550 RL, a permanent substation will be established to supply four 1250 kVA (1000 V) and one 630 kVA (1000 V) transformers on 550 RL, the extraction level. The transformers will be used to supply the trackless mining equipment, the rock breakers at the tip areas, the axial fans, the sump pumps and all other electrical equipment on the level. When the decline intersects 525 RL a permanent substation will be established to supply two 1250 kVA (1000 V) transformers on 525 RL, the transfer level. The transformers will supply the conveyors, dust extraction systems and crushers on the level. The substation will also supply the three main pumps and a 630 kVA (1000 V) transformer for the mud pump supply. The substation will also need switchgear to facilitate a ring feed between the main shaft and the decline. In the main shaft, a substation will be located at 525 RL to supply a 1250 kVA (1000 V) transformer and the ring feed to the 525 RL decline substation. The transformer will supply power to the main conveyor, the shaft belt level and the shaft bottom area. The reticulation requires three 185 mm(2) HT feeders from surface. Two feeders placed in the main shaft will carry through to the decline substation on 525 RL, while the third feeder will be placed in the decline. Once the decline, the main shaft and the conveyor incline are all linked and holed through, a ring feed can be established between the substation at 600RL (bottom of the decline) and 640 RL (lowest working level of the shaft). The main surface substation will supply: - No.1, No.2 and No.3 underground feeder cables - The No.1 and No.2 rock winders - The service winder - The No.1 and No.2 ventilation fans - The decline raisebore primary ventilation fan. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-77 The surface lighting and shaft heating requirements are not included here for calculating the main surface substation requirements for underground power reticulation, but have been included in the surface power reticulation analysis. The electrical reticulation is illustrated in Appendix 2.6. 2.2.6 COMPRESSED AIR As most of the equipment will be electro-hydraulic, there is minimal need for compressed air. Therefore, compressed air will be supplied where needed by portable compressors underground. The compressors have been considered in the capital estimate. Provision has been made for a portable compressor at the skip loading transfer area to provide air for the operation of the loading flasks. Alternately, electrically actuated cylinders may be used, but this is not recommended if any water is made in the shaft. Clean air is also required for refuge bays and would need to be supplied from surface to avoid contamination in the case of a fire. An alternative would be to use oxygen candles or compressed air cylinders underground. The latter options are favoured in order to avoid installing a compressed air column from surface and having to run an additional compressor on surface. If a subsequent risk assessment requires clean air from surface into the refuge bays, allowance must be made to install a compressor on surface and columns in the main shaft. This will have no material effect on the design of the shaft support steelwork. 2.2.7 POTABLE WATER The potable water supply will be installed in the decline. The supply will include a 25mm column down the full length of the decline. Ratio valves will be installed at intervals to control the pressure at the taps situated on each level intersected by the decline. 2.2.8 COMMUNICATION SYSTEMS A 50-line telephone exchange will be installed for underground communication. Two telephones will be installed on each operating level and at strategic points such as the pump stations, the shaft loading boxes and belt level and at shaft bottom. Telephones will also be provided in the winder houses and on the bank. A SCADA system for underground monitoring and recording has been considered in the capital expenditure. A leaky feeder system in the decline and on the working levels will allow radio communication underground and from underground to surface. 2.2.9 UNDERGROUND WORKSHOPS Underground workshops will be equipped with fuel tanks, refuelling bays, cleaning bays, cranage, tyre stores, tyre changing facilities, store facilities, together with all other tools required. A fuel supply pipe from the surface will also be included. Single bay workshops are provided for minor repairs and services. The bay will be equipped with cranage, refuelling, and tyre changing and store facilities. Any other tools required will be provided. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-78 A single workshop will be situated on 550 RL, the main extraction level near the intersection with the ramp. 2.2.10 VENTILATION REQUIREMENTS The following factors were taken into consideration in terms of the air requirements for the mine: - Air requirements for diesel powered equipment and where applicable electrically powered mobile equipment - Air requirements for ventilating conveyors, crushers, workshops and other commitments - Allowance for air leakage. AIR REQUIREMENTS FOR MOBILE DIESEL POWERED EQUIPMENT The air requirements for diesel powered mobile equipment are based on 0.06 m(3)/s/kW of rated power for equipment at point of use, as well as likely equipment utilisation assumptions. A schedule of diesel powered equipment and anticipated utilisation is provided in Table 18 to Table 19. TABLE 18: DIESEL EQUIPMENT
DIESEL EQUIPMENT - DECLINE DEVELOPMENT KW NO PERCENT ACTUAL RATED . TOTAL KW UTILISED KW ---------------------------------------------------------------------------------------------------- LHDs 270 1 270 100 270 Trucks 55t. Cat+ AD55 485 2 970 100 970 TOTAL kW 1240 Total kW x 0.06 m(2)/s/kW = Air quantity required m(3)/s 75
These quantities are commensurate with current good mine design practice worldwide. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-79 TABLE 19: DIESEL AND ELECTRIC MOBILE EQUIPMENT
YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 ----------------------------------------------------------------------------------------------------------------------------------- STOPING ORE Mt/a 0 0 1.124 3.573 5.524 7.208 10.278 10.585 10.232 10.386 JUMBO DEVELOPMENT METRES 2,944 15,097 8,560 4,025 1,065 845 2,045 2,895 6,874 1,952 DEVELOPMENT ORE LEVEL Mt/a 0.043 0.555 0.430 0.228 0.060 0.048 0.116 0.164 0.381 0.111 DEVELOPMENT MULLOCK Mt/a 0.221 0.536 0.099 0 0 0 0 0 0.015 0 TOTAL ROCK Mt/a 0.263 1.090 1.554 3.801 5.584 7.256 10.394 10.749 10.613 10.497 JUMBO DEVELOPMENT CUTS/DAY 2.9 14.8 8.4 3.9 1.0 0.8 2.0 2.8 6.7 1.9 DRILLING Development 2 Boom Jumbo 2 3 2 0 0 0 0 0 0 0 Ore Drive 2 Boom Jumbo 1 3 3 2 1 1 1 1 2 1 Undercut Quasar Drill 1 1 1 1 1 1 1 1 1 1 Longhole Drill 2 2 2 2 2 2 2 2 2 2 MATERIALS HANDLING Mullock Development Loader (8m(3) bucket) 1 2 1 0 0 0 0 0 0 0 Ore Development Loader (7.4m(3) bucket) 1 2 1 1 1 1 1 1 1 1 Electric Loader (7m(3) bucket) 0 0 1 4 6 7 10 10 10 10 Truck (55t Articulated) 2 4 3 2 2 2 2 2 2 2 OTHER Grader 1 2 2 2 1 1 1 1 1 1 Integrated Tool Carrier 3 3 3 3 3 3 3 3 3 3 Cable Bolter 1 1 1 1 1 1 1 1 1 1 Shotcrete Spray Unit 2 2 2 1 1 1 1 1 1 1 Development Charge Up Unit 2 3 3 1 1 1 1 1 1 1 Stope Charge Up Unit 0 0 1 2 2 3 4 4 4 4 LIGHT VEHICLES staff 5 5 7 7 7 7 7 7 7 7 production 13 13 13 13 13 13 13 13 13 13 maintenance 8 8 8 8 8 8 8 8 8 8 NUMBER OF UNITS 45 54 54 50 50 52 56 56 57 56 DIESEL USAGE KW MOBILE EQUIPMENT 25 % 104 Development 2 Boom Jumbo 52 78 52 0 0 0 0 0 0 0 25 % 66 Production 2 Boom Jumbo 17 50 50 33 17 17 17 17 33 17 25 % 30 Undercut Quasar Drill 8 8 8 8 8 8 8 8 8 8 25 % 66 Longhole Drill 33 33 33 33 33 33 33 33 33 33 Mullock Development Loader 100% 269 (8m(3) bucket) 269 538 269 0 0 0 0 0 0 0 Ore Production Loader 100% 231 (7.4m(3) bucket) 231 462 231 231 231 231 231 231 231 231 100% 485 Truck (55t Articulated) 970 1940 1455 970 970 970 970 970 970 970 100% 160 Grader 160 320 320 320 160 160 160 160 160 160 100% 82 Integrated Tool Carrier 246 246 246 246 246 246 246 246 246 246 25 % 115 Cable Bolter 29 29 29 29 29 29 29 29 29 29 25 % 65 Shotcrete Spray Unit 33 33 33 16 16 16 16 16 16 16 50 % 65 Development Charge Up Unit 65 98 98 33 33 33 33 33 33 33 50 % 104 Stope Charge Up Unit 0 0 52 104 104 156 208 208 208 208 LIGHT VEHICLES 50 % 96 staff 240 240 336 336 336 336 336 336 336 336 50 % 96 production 624 624 624 624 624 624 624 624 624 624 50 % 96 maintenance 384 384 384 384 384 384 384 384 384 384 TOTAL 3359 5081 4218 3366 3190 3242 3294 3294 3310 3294 0.06 M(carret)(3) REQUIRED (0.06M(carret)(3)/S/KW) 202 305 253 202 191 194 198 198 199 198 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 ------------------------------------------------------------------------------------------------------------------------ STOPING ORE Mt/a 10.248 10.263 10.056 10.294 10.250 10.287 10.206 10.210 JUMBO DEVELOPMENT METRES 3,980 3,904 2,936 1,300 1,444 520 520 0 DEVELOPMENT ORE LEVEL Mt/a 0.198 0.221 0.152 0.074 0.082 0.029 0.029 0 DEVELOPMENT MULLOCK Mt/a 0.049 0 0.025 0 0 0 0 0 TOTAL ROCK Mt/a 10.446 10.484 10.208 10.368 10.332 10.316 10.235 10.210 JUMBO DEVELOPMENT CUTS/DAY 3.9 3.8 2.9 1.3 1.4 0.5 0.5 0 DRILLING Development 2 Boom Jumbo 0 0 0 0 0 0 0 0 Ore Drive 2 Boom Jumbo 2 2 1 1 1 1 1 0 Undercut Quasar Drill 1 1 1 1 1 1 1 1 Longhole Drill 2 2 2 2 2 2 2 2 MATERIALS HANDLING Mullock Development Loader (8m(3) bucket) 0 0 0 0 0 0 0 0 Ore Development Loader (7.4m(3) bucket) 1 1 1 1 1 1 1 0 Electric Loader (7m(3) bucket) 10 10 10 10 10 10 10 10 Truck (55t Articulated) 2 2 2 2 2 2 2 2 OTHER Grader 1 1 1 1 1 1 1 1 Integrated Tool Carrier 3 3 3 3 3 3 3 3 Cable Bolter 1 1 1 1 1 1 1 1 Shotcrete Spray Unit 1 1 1 1 1 1 1 1 Development Charge Up Unit 1 1 1 1 1 1 1 0 Stope Charge Up Unit 4 4 4 4 4 4 4 4 LIGHT VEHICLES staff 7 7 7 7 7 7 7 7 production 13 13 13 13 13 13 13 13 maintenance 8 8 8 8 8 8 8 8 NUMBER OF UNITS 57 57 56 56 56 56 56 53 DIESEL USAGE KW MOBILE EQUIPMENT 25 % 104 Development 2 Boom Jumbo 0 0 0 0 0 0 0 0 25 % 66 Production 2 Boom Jumbo 33 33 17 17 17 17 17 0 25 % 30 Undercut Quasar Drill 8 8 8 8 8 8 8 8 25 % 66 Longhole Drill 33 33 33 33 33 33 33 33 Mullock Development Loader 100% 269 (8m(3) bucket) 0 0 0 0 0 0 0 0 Ore Production Loader 100% 231 (7.4m(3) bucket) 231 231 231 231 231 231 231 0 100% 485 Truck (55t Articulated) 970 970 970 970 970 970 970 970 100% 160 Grader 160 160 160 160 160 160 160 160 100% 82 Integrated Tool Carrier 246 246 246 246 246 246 246 246 25 % 115 Cable Bolter 29 29 29 29 29 29 29 29 25 % 65 Shotcrete Spray Unit 16 16 16 16 16 16 16 16 50 % 65 Development Charge Up Unit 33 33 33 33 33 33 33 0 50 % 104 Stope Charge Up Unit 208 208 208 208 208 208 208 208 LIGHT VEHICLES 50 % 96 staff 336 336 336 336 336 336 336 336 50 % 96 production 624 624 624 624 624 624 624 624 50 % 96 maintenance 384 384 384 384 384 384 384 384 TOTAL 3310 3310 3294 3294 3294 3294 3294 3014 0.06 M(carret) (3) REQUIRED (0.06M(carret)(3)/S/KW) 199 199 198 198 198 198 198 181 YEAR 17 YEAR 18 YEAR 19 YEAR 20 ------------------------------------------------------------------------------------ STOPING ORE Mt/a 10.291 8.677 4.578 1.130 JUMBO DEVELOPMENT METRES 0 0 0 0 DEVELOPMENT ORE LEVEL Mt/a 0 0 0 0 DEVELOPMENT MULLOCK Mt/a 0 0 0 0 TOTAL ROCK Mt/a 10.291 8.677 4.578 1.130 JUMBO DEVELOPMENT CUTS/DAY 0 0 DRILLING Development 2 Boom Jumbo 0 0 0 0 Ore Drive 2 Boom Jumbo 0 0 0 0 Undercut Quasar Drill 1 1 1 1 Longhole Drill 2 2 2 2 MATERIALS HANDLING Mullock Development Loader (8m(3) bucket) 0 0 0 0 Ore Development Loader (7.4m(3) bucket) 0 0 0 0 Electric Loader (7m(3) bucket) 10 9 5 2 Truck (55t Articulated) 2 2 1 1 OTHER Grader 1 1 1 1 Integrated Tool Carrier 3 2 2 2 Cable Bolter 1 1 1 1 Shotcrete Spray Unit 1 1 1 1 Development Charge Up Unit 0 0 0 0 Stope Charge Up Unit 3 2 2 2 LIGHT VEHICLES staff 7 7 7 7 production 13 13 13 13 maintenance 8 8 8 8 NUMBER OF UNITS 52 49 44 41 DIESEL USAGE KW MOBILE EQUIPMENT 25% 104 Development 2 Boom Jumbo 0 0 0 0 25% 66 Production 2 Boom Jumbo 0 0 0 0 25% 30 Undercut Quasar Drill 8 8 8 8 25% 66 Longhole Drill 33 33 33 33 Mullock Development Loader 100% 269 (8m(3) bucket) 0 0 0 0 Ore Production Loader 100% 231 (7.4m(3) bucket) 0 0 0 0 100% 485 Truck (55t Articulated) 970 970 485 485 100% 160 Grader 160 160 160 160 100% 82 Integrated Tool Carrier 246 164 164 164 25% 115 Cable Bolter 29 29 29 29 25% 65 Shotcrete Spray Unit 16 16 16 16 50% 65 Development Charge Up Unit 0 0 0 0 50% 104 Stope Charge Up Unit 156 104 104 104 LIGHT VEHICLES 50% 96 staff 336 336 336 336 50% 96 production 624 624 624 624 50% 96 maintenance 384 384 384 384 TOTAL 2962 2828 2343 2343 0.06 M(carret)(3) REQUIRED (0.06M(carret)(3)/S/KW) 178 170 141 141
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-80 OTHER VENTILATION REQUIREMENTS The ventilation of other service excavations and equipment must be catered for. Additionally, crushers are a major source of dust and contributor of heat to the mine workings. It is advantageous that they be ventilated to the return airway system. In the event that this cannot be done, dust control arrangements such as watering down and the installation of dust suppression sprays must be considered. The power requirements for dust extraction have been included. Provision has been made in the electrical and water reticulation to cater for dust extraction and suppression. An allowance has been made for workshops, refuelling bays, pump stations, crib rooms and the like, which also require ventilation. All mines have leakages of ventilation within the system. These cannot be avoided entirely, but can be minimised. Appropriate design allowances were therefore, included to cater for this and are detailed in Table 20. TABLE 20: TOTAL AIR REQUIREMENTS
MAXIMUM (YR-1) TOTAL AIR REQUIREMENTS KW M(3)/S --------------------------------------------------------------------------- Diesel equipment @ 0.06m(3)/s/kW 5,081 305 Electrical mobile machinery @ 0.03 m(3)/s/kW 0 0 Crushers 60 Commitments (workshops u/g stores etc) 40 Leakage 10% for BC 35 TOTAL 440 ---------------------------------------------------------------------------
Consequently, fan, excavation and sizes will be based upon 440 m(3)/s. 2.2.11 INTAKE AND RETURN AIRWAY SYSTEMS The primary airway system will consist of: - A single 6m x 6m decline descending at 1:7 from surface to the bottom of the mine. - A single 9.5m diameter vertical shaft with a brattice wall providing a 44.4 m(2) downcast compartment, equipped with rock skips and a service/emergency conveyance and a 23.7 m(2) dedicated upcast compartment. This will adequately cater for all air requirements, and no other ventilation raises from surface are required. The sizing of the vertical shaft was based on both air and hoisting requirements. Main intakes will be on 550 RL and 525 RL and the return will be on transfer level connecting into the upcast compartment. 2.2.12 DEVELOPMENT VENTILATION The decline will be developed on a conventional push system using two 1.4m diameter ventilation bags and conventional 110 kW development fans. Once the decline has reached about 1500m it will connect with a 3.0m diameter raise bored hole to surface. This raise bored hole will then become the return airway for all development below the intersection point. Additionally, the upper part of the decline will then down cast with fresh air at a greater volume to allow for additional trucking of SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-81 broken development rock out of the decline. This process will be repeated until the development of the decline is complete. 2.2.13 VENTILATION FOR STEADY STATE PRODUCTION The basic air circuit excavations (intakes and returns into their respective shaft segment) will be completed before production commences. This would allow a flow through of air past the draw points. Secondary fans on a forcing system would only be required in cases where a draw point did not have a free flow of air. 2.2.14 CLIMATIC AND GEOTHERMAL CONSIDERATIONS Climate extremes are experienced in this region with winter temperatures averaging around - 15 degreesC and dropping to - 40 degreesC and summer temperatures averaging around +19 degreesC and peaking at around + 40 degreesC. The heating requirements for the mine have been included in the surface power reticulation analysis. In addition, the Gobi Desert region experiences severe sand storms and where appropriate, equipment should be protected and maintained accordingly. This has been accounted for in the choice to enclose the head frame and winder arrangement. While no geothermal data was available at the time of this study, consideration of geothermal gradient extremes that may occur has been included. These considerations suggest that even if very high gradients are encountered, these would not be material to the ventilation design at the anticipated depths of mining. However, any consideration of deepening should be accompanied by a more robust review of geothermal gradient followed by a suitable heat flow analysis. 2.2.15 FANS It is proposed that the mine use twin main fans, installed in parallel configuration. The design operating point for each fan will be 220 m(3)/s at 2.0 kPa giving a total air volume of 440 m(3)/s. DECLINE DEVELOPMENT To maximise the sinking of the decline and adjacent development the 3.0m diameter raise bored hole will be equipped with 2 fans operating in parallel, each fan handling 70 m(3)/s at 1.5 kPa. GENERAL INSTALLATION ARRANGEMENTS A fan drift consisting of a transition bend should be connected to the top of the upcast ventilation segment and then be split into two separate drifts leading to the fans. Self-closing doors at the intake of each fan will allow the operation of a single fan without recirculation. This fan arrangement will allow a steady but economical build-up of ventilation as the mine progresses through the development stages and into production. In order to achieve this, the return airway system should be established as soon as possible. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-82 2.2.16 HEALTH AND SAFETY The purpose of providing ventilation in mechanised operations is to dilute and remove pollutants and to provide a source of fresh respirable air. The principal pollutants present in this operation are diesel exhaust emissions, dust and fumes from blasting and dust from the transfer of rock. Where there is a risk of flammable gas being present, appropriate numbers of flammable gas (methane) detectors should be made available and used as a matter of course. 2.2.17 FIRES, ESCAPE AND RESCUE Inextricably linked to any ventilation planning, are the risks involved in underground fires and the escape and rescue of the workforce. FIRES Underground fires, particularly those involving rubber tyred diesel - powered vehicles, loose tyres or diesel fuel storage facilities are particularly problematic for underground operations. Unless a fire involving rubber tyres or large quantities of diesel fuel can be extinguished completely in a very short space of time, enormous quantities of toxic gases and dense smoke will rapidly fill the workings. Obviously, the first defence is prevention, and this covers maintenance of equipment and the availability of both on-board and static fire fighting apparatus. The issue of storage and dispensing of diesel fuel, lubricants, hydraulic oils and other chemicals, as well as storage and handling procedures for new and used rubber tyres, must be addressed at the detailed design stage. These issues are a priority and are accounted for in the designs presented here. Flammable liquid storage and dispensing should be carried out in accordance with a written code of practice, prepared following a risk assessment. An adequate supply of water and hoses should be readily available to combat tyre fires. Similar fire risks are attached to conveyor belts and wherever practical excavations containing conveyors should be directly exhausted to the return. However, if this is not practical, then suitable doors to seal off the area in the event of a fire should be incorporated into the design. Fire fighting equipment should be available to cope with any such occurrence. Consideration should also be given to installing fire retardant conveyor belts. ESCAPE AND RESCUE Persons entering the underground workings should be equipped with self-rescuing devices. The provision of self-contained self-rescuers to all persons working in or visiting the underground workings is recommended, as these units permit escape in oxygen deficient atmospheres. The mine should also provide refuge bays equipped with means of supplying respirable air. The refuge bays should be within reach of the workforce, whilst wearing their self- rescuers, under adverse conditions. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-83 Underground second means of egress is achieved in both options by having two separate means of access to the lowest workings of the mine; i.e. the decline and the vertical shaft. In addition to the rock winder(s), a service winder will be installed in the main shaft. The provision of a fixed end hoist is important to the efficient operation and maintenance of a Koepe equipped shaft and can contribute significantly to providing much more rapid entry and exit from the mine by personnel. 2.2.18 CAPITAL COST The underground infrastructure costs are divided into the following categories: - Shafts - Access development - Ventilation - Underground Services - Major Underground Plant - Mining Equipment - Surface Services - Engineering Design, Procurement and Contract Management The costs for infrastructure access development have been included in the relevant mining sections and any additional development required for the installation of infrastructure (such as pump station excavations) has been priced into the underground services where applicable. The underground services costs include the dewatering arrangements, service water reticulation, electrical reticulation, compressed air supply, communication system, potable water supply and underground workshop requirements. The capital schedule makes provision for undercut and extraction level equipping to operate the first mining block and the first three conveyors. Details of the capital expenditure for the 10Mt/a block cave mine is shown in Appendix 2.7. 2.2.19 OPERATING COST The operating costs applied to de-watering, hoisting, crushing, conveying and ventilation include the following: - Electrical power consumption costs (using a rate of 0.025USD per kilowatt hour) - Spare part and replacement part costs - Repair costs - Lubrication costs - Consumable costs - Water treatment costs - Winder inspection and testing costs - Labour costs (using Mongolian labour rates as supplied by IMMI). January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-84 2.3 HUGO SOUTH DEPOSIT 10MT/A BLOCK CAVE 2.3.1 METHOD DESCRIPTION Block caving is a suitable method for the high recovery extraction of very large, relatively low-grade ore bodies that have moderate to low RMR. The basis on which the method operates is as follows: - In a block cave, the ore fractures and breaks up by itself when the mineralised material is undercut by removing a horizontal slice of mineralised material over the area required to initiate caving. - The mineralised material above the undercut fails due to the action of induced stresses and gravity and then reports to the collection draw bells. - The collection draw bells (troughs or cones) are constructed on an extraction horizon beneath the undercut horizon. - These draw bells are connected to draw points from which the fragmented material is loaded out by LHD and transported to a crusher tip. - The crusher reduces the rock fragment size so that it is suitable to be conveyed to a shaft for hoisting to surface. The ore transfer level is situated below the extraction horizon. - As the process repeats and the broken mineralised material is drawn down within the cave, it makes space for more material to collapse from the cave back and fill the void. - Initially the material that caves in and reports to the draw points is pure ore, but after some time, when the cave back propagates up through the country rock above the ore body, fragments of waste country rock mix in with the material in the cave, diluting the ore stream. - When the material being drawn from a draw point reaches a certain shut-off grade (economically determined shut-off grade), draw from that draw point is discontinued. - In the longer term, production levels are kept constant by expanding the undercut and constructing new draw bells and draw points to replace ones where shut-off grades have been reached. - This process of expanding the area of the undercut and draw horizon continues until eventually the whole area of the economic footprint of the ore body is covered by undercut and draw bells. - Over a period of time the cave back will propagate up and eventually break through to surface. As the caved rock continues to be drawn down the sides of the crater will become unconfined and will fail and fall into the cave. The cave subsidence limits will continue to expand until all the ore has been drawn down. This will finally leave a large crater on surface. The only drill and blast activities required are for the undercut and any excessively large rocks that report to draw points or cause hang-ups in the draw bells. As most of the fragmentation of the ore occurs under the forces of gravity, induced stress and comminution within the cave, the operating costs for this method are very low, and much lower than for any other mining method. With the numerous draw points that are typically constructed it also is potentially a high productivity method. Figure 10 is a 3D schematic showing the block cave extraction horizons, material handling systems, and other mine infrastructure. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-85 FIGURE 10: 3D SCHEMATIC OF THE BLOCK CAVES IN THE HUGO SOUTH AND HUGO NORTH DEPOSITS [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-86 2.3.2 BLOCK CAVE DESIGN CRITERIA In this scoping study, the block cave extraction level is designed around a Henderson offset herringbone type layout. A plan view of the extraction layout and projected position of the cross-cuts on the undercut level above is shown in Figure 11. The offset draw points avoid four way intersections with large spans, and the Henderson layout is more suitable to electrically powered equipment and automation of loading operations. Alternate designs such as the Teniente layout were not considered to be as appropriate. FIGURE 11: EXTRACTION LEVEL LAYOUT SHOWING PROJECTION OF UNDERCUT CROSS-CUTS ON THE LEVEL ABOVE. [FIGURE] It is proposed to use a narrow inclined (crinkle) undercut as shown in Figure 12, where advanced undercutting is applied. In an advanced undercut only the draw drives and angled stub off of the draw point cross-cuts are developed, and fully supported, prior to undercutting. Once the undercut has passed over the draw bell position, and the extraction horizon is de-stressed, is the remainder of the draw point cross-cut developed and the draw bell extracted. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-87 FIGURE 12: SECTION THROUGH A DRAW POINT, DRAW BELL AND THE INCLINED UNDERCUT [FIGURE] The extraction level design parameters are directly related to the rock mass geotechnical properties. With reference to Section 1.5 (underground design parameters) of this report, the design parameters are summarised as follows: HYDRAULIC RADIUS FOR CAVING: While the range of the average MRMRMin to average MRMRMax for all rock types equates to a hydraulic radius for caving between 20m and 27m, it was considered appropriate to for scoping study design purposes to design an undercut with a hydraulic radius of 30m. This equates to a square plan area of 120m by 120m. For an equivalent rectangular area the minimum critical span should be not less than 95m, as discussed in Section 1.5.2. For a hydraulic radius of 30m this equates to a rectangular area of 95m by 165m. Therefore the area to be undercut to initiate caving can be anywhere from a square area measuring 120m by 120m to a rectangular area measuring 95m by 165m. Once caving has been initiated the undercut will be expanded until it reaches a size sufficient to sustain the 10 Mt/a production rate. AREA REQUIRED TO SUSTAIN FULL PRODUCTION: The rate at which block cave production can be ramped up and sustained is dependent on: - the rate at which the cave back fails and falls in; - the fragmentation size distribution (primary and secondary) which, in turn, is dependant on the rock mass (geotechnical) conditions; - the limiting rate at which draw points and draw bells can be physically constructed and - the rate at which `hang ups' and oversize can be cleared. As there is no oriented data available for joints/structures that would normally be used in determining the primary and secondary rock block sizes it has not been possible to calculate likely fragmentation distributions. However, empirical systems, utilising rock mass ratings, exist from which production ramp up and steady state production rates can be estimated. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-88 For a MRMR range (average of all rock types) of 38 to 48, the cave back vertical rate of advance is between 120 - 250mm/day. Therefore, an average rate of 200mm/day has been applied for steady state rate of caving. For each square metre area of draw, this equates to approximately 0.56 tonnes per day (for SG = 2.8). Therefore for each draw bell (30m x 15m) area, a steady state daily tonnage of approximately 252 tonnes/day can be expected. That is 126 tonnes per draw point per day on average. The minimum number of draw bells required must cover an area at least equivalent to the hydraulic radius for caving. For a HR = 30m this will be a minimum of 32 draw bells or 64 draw points. For a production rate of 10 Mt/a, 227 draw points or 114 draw bells are required to be in production at any one time. Draw bell construction normally is limited to 5 to 6 draw bells per month. To be conservative a maximum of five draw bells constructed per month has been adopted. The elevations of the extraction level and the undercut level are 560 mRL and 575 mRL respectively. The undercut level has been chosen at 575 mRL as it is at the approximate base elevation of the 2% copper envelope (see Appendix 2.8 for a scale plan of the undercut level). This will maximise the early draw of the (LESS THAN)2% copper material. FIGURE 13: SELECTION OF EXTRACTION LEVEL [FIGURE] Figure 13 displays the greater than 1% (aqua) and greater than 2% (yellow) copper grade shells and the proposed area for commencement of production has been outlined in red. Areas requiring further work to be undertaken at the Pre-Feasibility level are to optimise the location and size of the undercut and extraction levels, and to determine the optimum undercut orientation and mining sequence. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-89 2.3.3 MINED TONNAGE ESTIMATE SCOPING STUDY RESERVE: The 10 Mt/a Scoping Study Block Cave Mining Reserve is provided in Table 21. TABLE 21: SCOPING STUDY MINING RESERVE 10 MT/A BLOCK CAVE PRODUCTION RESERVE 170,793,000 tonnes 1.265 % Cu 0.058 g/t Au $14.782 NSR 2.3.4 PRODUCTION SCHEDULE The life of mine production schedule is provided in Table 22. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-90 TABLE 22: LIFE OF MINE DEVELOPMENT AND PRODUCTION TONNES
PRODUCTION AND DEVELOPMENT ORE TONNES SCHEDULE YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 ------------------------------------------------------------------------------------------------------------------------------------ Level Development Tonnes 1,715,000 0 0.2 M 0.2 M 0.1 M 0.06 M 0.05 M 0.1 M 0.2 M 0.2 M 0.1 M Cu % 1.139 1.139 1.139 1.139 1.139 1.139 1.139 1.139 1.139 1.139 Au (gt) 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 NSR $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 Cu Rec 88.502 % 85.502 85.502 85.502 85.502 85.502 85.502 85.502 85.502 85.502 Au Rec 58.798 % 58.798 58.798 58.798 58.798 58.798 58.798 58.798 58.798 58.798 Undercut Development Tonnes 1,001,000 0 0.2 M 0.2 M 0.1 M 0 0 0.1 M 0.1 M 0.1 M 0 Cu % 1.318 1.318 1.318 1.318 0 0 1.318 1.318 1.318 0 Au (gt) 0.077 0.077 0.077 0.077 0 0 0.077 0.077 0.077 0 NSR $15.44 $15.44 $15.44 $15.44 0 0 $15.44 $15.44 $15.44 0 Cu Rec 88.609 % 88.609 88.609 88.609 0 0 88.609 88.609 88.609 0 Au Rec 58.623 % 58.623 58.623 58.623 0 0 58.623 58.623 58.623 0 Draw Cone Tonnes 3,752,000 0 0 0.5 M 0.4 M 0.2 M 0.2 M 0 0.3 M 0.5 M 0.3 M Cu % 1.035 0 0 1.035 1.035 1.035 1.035 0 1.035 1.035 1.035 Au (gt) 0.062 0 0 0.062 0.062 0.062 0.062 0 0.062 0.062 0.062 NSR $12.07 0 0 $12.07 $12.07 $12.07 $12.07 0 $12.07 $12.07 $12.07 Cu Rec 89.904 % 0 0 89.904 89.904 89.904 89.904 0 89.904 89.904 89.904 Au Rec 57.844 % 0 0 57.844 57.844 57.844 57.844 0 57.844 57.844 57.844 Production tonnes 164,276,000 0 0 1.0 M 3.6 M 5.5 M 7.2 M 10.2 M 10.6 M 10.2 M 10.4 M Cu % 1.271 0 0 2.19 2.061 2.235 1.908 1.622 1.358 1.202 1.086 Au (gt) 0.058 0 0 0.12 0.112 0.134 0.126 0.093 0.058 0.045 0.037 NSR $14.855 0 0 $25.79 $24.226 $26.353 $22.550 $19.080 $15.862 $14.003 $12.601 Cu Rec 87.602 0 0 91.694 91.553 91.532 91.924 90.976 90.758 90.240 90.109 Au Rec 57.594 0 0 60.00 60.00 60.00 59.996 59.940 59.908 59.675 59.607 Total Ore Tonnes 170,743,000 0 0.4 M 2.0 M 4.2 M 5.8 M 7.4 M 10.5 M 11.2 M 11.0 M 10.8 M Cu % 1.265 0 1.210 1.721 1.917 2.178 1.883 1.613 1.345 1.196 1.085 Au (gt) 0.058 0 0.070 0.095 0.105 0.130 0.124 0.092 0.059 0.046 0.038 NSR $14.782 0 $14.148 $20.199 $22.521 $25.681 $22.247 $18.972 $15.716 $13.925 $12.592 Cu Rec 87.470 0 88.548 91.031 91.367 91.486 91.265 90.933 90.688 90.186 90.085 Au Rec 57.466 0 58.721 59.466 59.830 59.955 59.967 59.918 59.811 59.537 59.505
PRODUCTION AND DEVELOPMENT ORE TONNES SCHEDULE YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 ------------------------------------------------------------------------------------------------------- Level Development Tonnes 0.1 M 0.08 M 0.1 M 0.07 M 0.08 M 0.03 M 0.03 M 0 Cu % 1.139 1.139 1.139 1.139 1.139 1.139 1.139 0 Au (gt) 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0 NSR $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 $13.298 0 Cu Rec 85.502 85.502 85.502 85.502 85.502 85.502 85.502 0 Au Rec 58.798 58.798 58.798 58.798 58.798 58.798 58.798 0 Undercut Development Tonnes 0.08 M 0.1 M 0.05 M 0 0 0 0 0 Cu % 1.318 1.318 1.318 0 0 0 0 0 Au (gt) 0.077 0.077 0.077 0 0 0 0 0 NSR $15.44 $15.44 $15.44 0 0 0 0 0 Cu Rec 88.609 88.609 88.609 0 0 0 0 0 Au Rec 58.623 58.623 58.623 0 0 0 0 0 Draw Cone Tonnes 0.4 M 0.2 M 0.1 M 0.3 M 0.2 M 0.1 M 0.1 M 0 Cu % 1.035 1.035 1.035 1.035 1.035 1.035 1.035 0 Au (gt) 0.062 0.062 0.062 0.062 0.062 0.062 0.062 0 NSR $12.07 $12.07 $12.07 $12.07 $12.07 $12.07 $12.07 0 Cu Rec 89.904 89.904 89.904 89.904 89.904 89.904 89.904 0 Au Rec 57.844 57.844 57.844 57.844 57.844 57.844 57.844 0 Production tonnes 10.2 M 10.3 M 10.1 M 10.3 M 10.3 M 10.3 M 10.2 M 10.2 M Cu % 1.058 1.084 1.145 1.217 1.155 1.074 1.170 1.244 Au (gt) 0.037 0.039 0.040 0.043 0.039 0.037 0.055 0.064 NSR $12.277 $12.596 $13.292 $14.162 $13.434 $12.498 $13.668 $14.559 Cu Rec 89.402 88.790 87.440 88.264 88.031 87.313 87.880 87.018 Au Rec 59.281 58.942 57.480 57.888 57.902 56.560 58.111 57.318 Total Ore Tonnes 10.8 M 10.6 M 10.3 M 10.6 M 10.5 M 10.4 M 10.3 M 10.2 M Cu % 1.060 1.087 1.144 1.212 1.153 1.074 1.168 1.244 Au (gt) 0.038 0.040 0.041 0.044 0.039 0.038 0.055 0.064 NSR $12.302 $12.627 $13.286 $14.104 $13.412 $12.496 $13.651 $14.559 Cu Rec 89.404 88.801 87.487 88.301 88.060 87.342 87.900 87.018 Au Rec 59.176 58.908 57.518 57.896 57.912 56.592 58.111 57.318
PRODUCTION AND DEVELOPMENT ORE TONNES SCHEDULE YEAR 17 YEAR 18 YEAR 19 YEAR 20 ------------------------------------------------------------------- Level Development Tonnes 0 0 0 0 Cu % 0 0 0 0 Au (gt) 0 0 0 0 NSR 0 0 0 0 Cu Rec 0 0 0 0 Au Rec 0 0 0 0 Undercut Development Tonnes 0 0 0 0 Cu % 0 0 0 0 Au (gt) 0 0 0 0 NSR 0 0 0 0 Cu Rec 0 0 0 0 Au Rec 0 0 0 0 Draw Cone Tonnes 0 0 0 0 Cu % 0 0 0 0 Au (gt) 0 0 0 0 NSR 0 0 0 0 Cu Rec 0 0 0 0 Au Rec 0 0 0 0 Production tonnes 10.3 M 8.7 M 4.6 M 1.1 M Cu % 1.212 1.039 0.713 0.589 Au (gt) 0.064 0.059 0.038 0.040 NSR $14.182 $12.159 $8.318 $6.913 Cu Rec 85.722 84.476 74.222 61.303 Au Rec 56.135 56.183 47.922 40.259 Total Ore Tonnes 10.2 M 8.7 M 4.6 M 1.1 M Cu % 1.212 1.039 0.713 0.589 Au (gt) 0.064 0.059 0.038 0.040 NSR $14.182 $12.159 $8.318 $6.913 Cu Rec 85.722 84.476 74.222 61.303 Au Rec 56.135 56.183 47.922 40.259
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-91 The footprint of the proposed block cave is sufficiently large to support a production rate of 10 Mt/a. No optimisation work has been done to determine the peak production rate for this ore body. Such optimisation will be done at pre-feasibility level. OBJECTIVES OF SCHEDULE The major objective of the production schedule is to maximise the recovery of the highest-grade material early on in the life of the mine. With this in mind, production commences in the area displayed in Figure 14. This has provided for a three-year draw down of mainly greater than 2% copper. However, as production increases from Year 4 onwards it requires moving out into areas recognised as only being of greater than 1% copper (Figure 17). FIGURE 14: BLOCK CAVE PRODUCTION FIRST 3 YEARS - SHOWING (LESS THEN) 2% CU GRADE SHELL [FIGURE] SCHEDULE RAMP-UP The increase in production of a block cave is controlled by the number of draw points that can be constructed and brought into production in a month. Based on the parameters developed in Section 2.3.2 it was determined that to achieve a steady state of production at a manageable speed, a ramp-up of: Year 1: 1 million tonnes Year 2: 3.5 million tonnes Year 3: 5.5 million tonnes Year 4: 7.0 million tonnes Year 5: 10 million tonnes, would be assumed. The physical development required to achieve this ramp up schedule is discussed and graphically displayed in Section 2.3.7. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-92 The above mentioned production schedule does not include ore or waste tonnage generated during jumbo development on the extraction level, undercut or other development. This material is accounted for separately and can be considered as extra tonnes. The tonnes and metres from the jumbo development are further discussed in Section 2.3.7. The overall life of mine block cave production schedule is displayed in Figure 15 and Figure 16. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-93 FIGURE 15: BLOCK CAVE PRODUCTION PROGRESSION [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-94 FIGURE 16: BLOCK CAVE PRODUCTION PROGRESSION - THE LATER YEARS [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-95 2.3.5 DILUTION AND RECOVERY The Hugo South resource is summarised in Table 23. Block cave mining will take place within the greater than 1% copper envelope of the deposit. The greater than 2% copper resource is preferentially mined to maximise high grade extraction. The block cave mine has a life of 20 years with an annual production of 10Mt/a. TABLE 23: MINE RESOURCE AND MINE LIFE SUMMARY >0.6% Cu 485 million tonnes Encases the mining resource >1.0% Cu 223 million tonnes Targeted mining resource >2.0% Cu 40 million tonnes High grade mining resource Mine Life 20 Years To model the block cave extraction, a series of columns are developed within the Vulcan software mine planning system. These columns are broken up into one million tonne cubes. These cubes reflect approximately one year's ore production that will be drawn through the 15 draw points that lie immediately beneath each column (Figure 17). The size of the columns is 80m by 90m by 600m high. FIGURE 17: EXTRACTION RESERVE COLUMNS [FIGURE] A tonnage and grade is determined for each column which is then transferred to the block cave scheduling model. A production schedule is then developed to reflect panel cave draw point extraction. The undiluted extraction of each column is modelled until a nominal 70% of the column is extracted with the remaining 30% diluted as described below. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-96 DILUTION An idealised block cave dilution example is shown in Figure 18. A range of draw percentage values was manually applied to achieve a total block cave draw of 120% of ore tonnes and 86% of metal. As shown in Figure 18, for cubes contained within the last 30% of a column, it is assumed that 120% of the cube in-situ tonnage is extracted to achieve full recovery of the in-situ cube. The extra 20% material extracted is assumed to be drawn from the cube directly above. The gold grades and NSR values of the extracted cube are adjusted in the same manner as the copper grade. FIGURE 18 BLOCK CAVE DILUTION MODEL [FIGURE] The dilution model applied reflects the material mixing that occurs during long term extraction of the panel cave. This model reflects only dilution from above the block cave column and not from the side as would occur to some extent in reality. The side dilution is not currently modelled due to the limitations of the Excel based schedule model. A more realistic block cave dilution model will be applied in the next phase of study by the application of the specialised block cave PC-BC software system. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-97 FIGURE 19: HUGO SOUTH DEPOSIT GRADE SHELLS DISPLAYING BLOCK CAVE ORE COLUMNS IN (greater then) 1% Cu [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-98 2.3.6 MINE DEVELOPMENT MAIN DECLINE A mine design and schedule for the FN main decline is developed on the assumption that the access decline has been extended to the 775 mRL by Year -2. The design and schedule of the decline is based on the decline having been installed to 775 mRL (as an exploration decline) prior to formal project approval (Figure 20). The decline is used to access the extraction level, the undercut level and the material transfer/handling level. The decline is also designed such that it can continue to be developed to the Hugo North if required. FIGURE 20: DECLINE AND SHAFT LONG-SECTION [FIGURE] SHAFT A hoisting shaft will be used to hoist rock to the surface from the extraction level. The shaft is planned to be approximately 700 metres in depth. The physical specifications of the shaft are discussed in Section 2.2.1. The construction of the shaft is to be started in Year -2. This assumes a 2.5-year construction and commissioning program for the shaft. It will ensure that as the block cave begins to ramp up in production in Year 1, the shaft will be available to commence hoisting. FRESH AIR INTAKES The ventilation requirements for the mine are detailed within Section 2.2.11 to 2.2.16. As shown in Figure 21 the primary airway system will consist of: - A single 6m x 6m decline descending at 1:7 to the bottom of the mine (intake air). January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-99 - A single 9.5m diameter vertical shaft with a brattice wall providing a 44.4 m(2) downcast compartment, equipped with rock skips and a service/emergency conveyance and a 23.7 m(2) dedicated upcast compartment. This will adequately cater for all air requirements and no other intake ventilation raises from surface are required. The sizing of the vertical shaft was based on both air and hoisting requirements. Main intakes will be on 550 RL and 525 RL and the return will be on transfer level connecting into the upcast compartment. In order to develop the decline, a single 3.0m diameter raise bored hole will be required. This hole should connect to the decline at regular intervals to serve as a return airway for decline and initial level development. FIGURE 21: PRIMARY VENTILATION CIRCUIT FOR 10MT/A BLOCK CAVE MINE [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-100 FIGURE 22: EXTRACTION LEVEL VENTILATION CONCEPT [FIGURE] BLOCK CAVE: Fresh air is directed from the fresh air intake onto the extraction drive (Figure 22). The air is then directed along the production galleries and then down small drainage and ventilation rises to the materials handling level and into the return airway (Figure 22). The air flows along the return airway and up the return shaft to the surface. CRUSHER CHAMBER AND CONVEYOR DECLINE: The crusher chambers and conveyor declines are set up so all air flows through the chambers and conveyor drives and then into the return airway (Figure 23). January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-101 FIGURE 23: MATERIALS HANDLING PRIMARY VENTILATION CIRCUIT [FIGURE] EXTRACTION LEVEL The extraction level must be set up to provide optimum operating conditions for the electric loaders that will operate within it. (See Appendix 2.9 for scale plan of the extraction level.) It is planned that all production gallery floors will be paved with 40 MPa concrete and all walls and backs will be fully supported using fibrecrete, strapping, rockbolts, and cable bolts. The draw points will be fully supported with Henderson arches, rockbolts, strapping and cable bolts. At pre feasibility and feasibility level, detailed support design will be carried out and detailed support diagrams will be provided. At scoping level, benchmark estimates of the support required have been made and allowed for in costs and construction schedules. It is expected to only develop the production galleries as they are required. This development schedule is displayed in Figure 24. The extraction level has been designed to accommodate the full extraction of the known 1% resource shell as estimated by Ivanhoe Mines. The extraction level has an overall physical configuration of 1000 metres long by 370 metres wide (maximum). The current layout is based upon the established Henderson layout with 6 crushers laid out along the strike of the resource. It is expected that a 10 Mt/a mine will require at least three crushers operating simultaneously. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-102 FIGURE 24: EXTRACTION LEVEL DEVELOPMENT SCHEDULE - DISPLAYS YEARS PRODUCTION GALLERIES ARE DEVELOPED PRIOR TO DRAW-POINT CONSTRUCTION [FIGURE] ORE FLOW The block cave is designed to operate as a rock factory. Therefore, the cave itself acts as a stockpile and there is no built in storage capacity of any significance within the materials handling system underground. Ore is extracted by electric loader from the draw points and then trammed back to the crusher bins. The crusher bins are placed on the extraction level. Ore flows through the bins into the crusher and fed directly onto conveyors (Figure 25). January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-103 The ore then flows along the conveyors on the Materials Handling Level (or Transfer Level) into the main Return Conveyor Drive to the Shaft (see Appendix 2.10 for a scale plan of the Transfer Level). The material is then hoisted to the surface and is transported by overland conveyor to the plant. FIGURE 25: ORE FLOW [FIGURE] DRAINAGE Current groundwater models predict that water inflows through the cave will be minimal. Appropriate designs and capital have been estimated to handle any unexpected inflows of water. As caving proceeds, water is expected to report in the draw points on the extraction level. Each production gallery will be designed with side drains to capture water flowing from the draw points. It will be directed along the galleries and down the drainage and ventilation rises. The water will then be directed on the materials transfer level to a pump chamber for collection and onward pumping to the surface. 2.3.7 SCHEDULING ISSUES The development schedule is summarised in Table 24 and is shown diagrammatically in Figure 26. Development scheduling is based upon several fixed assumptions: - 35m/wk for single heading including shotcrete application. - 70m/wk in multiple headings including shotcrete application. - 5 draw bells constructed per month. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-104 FIGURE 26: DECLINE DEVELOPMENT SCHEDULE [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-105 TABLE 24: DEVELOPMENT SCHEDULE 10Mt/a BLOCK CAVE MINE
Option 3A Development Year Year - Year Year Year Year Year Year Year Year Year Year Year Physicals -2 1 1 2 3 4 5 6 7 8 9 10 11 ------------------------------------------------------------------------------------------------------------------------------- Horizontal Development Capital (m) Dcp 2,627 6,775 1,585 0 0 0 0 0 1,971 0 490 0 250 Extraction Level (m) Dex 0 3,970 2,892 2,155 1,325 845 2,045 2,895 2,904 1,952 1,990 1,404 1,686 Undercut level (m) Uct 380 4,460 3,694 2,000 0 0 2,500 2,500 2,000 0 1,500 2,500 1,000 Vertical Development Capital (m) Vcp 305 0 0 0 0 0 0 0 0 0 0 0 0 Operating (m) Vop 0 350 300 0 0 0 250 200 0 0 200 0 250
Option 3A Development Year Year Year Year Physicals 12 13 14 15 --------------------------------------------------- Horizontal Development Capital (m) 0 0 0 0 Extraction Level (m) 1,300 1,444 520 520 Undercut level (m) 0 0 0 0 Vertical Development Capital (m) 0 0 0 0 Operating (m) 150 0 0 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-106 DEVELOPMENT Development in Year -2 includes the development of the main decline to the extraction level, the upper rises of the intake shafts, access to the materials handling level and undercut level as well as some development on the undercut level. Year -1 sees development on the extraction level and undercut levels as well as the completion of all intake ventilation vertical and horizontal development. The return airway will not be available until Year 1, and it is expected that a temporary primary circuit will need to be set up during years -2 and -1 until the return airway is completed. Year -1 and 1 will see the construction and installation of the materials handling system on the materials handling level. Development to the shaft plat from the main decline will be in Year -1. The shaft and materials handling system will be ready for commissioning in Year 1 and thence production in Year 2. PRODUCTION The block cave has been scheduled based upon the construction of five draw-points per month (Figure 27). SRK estimates that the hoisting shaft will be available for hoisting in the middle of Year 1. The installation of the materials handling system is also complete by the end of Year -1. CRITICAL PATH The critical paths for the development and production schedule are the development of the primary ventilation circuit and the materials handling system. However, a secondary ventilation rise is to be installed as the decline progresses to the extraction level (Figure 26). This rise will extend to directly opposite the entrance of the extraction level from the decline and can be used as a secondary means of egress as the mine enters full production. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-107 FIGURE 27: EXTRACTION LEVEL DRAW POINT PRODUCTION SCHEDULE [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-108 2.3.8 MOBILE EQUIPMENT It has been assumed for the purposes of the scoping study that all development for the decline, extraction level, undercut and ventilation infrastructure construction will be carried out by contractors. All production on the extraction level and secondary breakage activities will be undertaken by IMMI. OVERALL ASSUMPTIONS: - Equipment purchased new for the project - Number of units required increased by 14% to account for regular preventative maintenance requirements - A maximum of six draw bells constructed per month - A contractor will supply development equipment. DRILLING - JUMBO DEVELOPMENT Two types of development jumbos are proposed, i.e. two-boom jumbo suitable for larger profiles (e.g. decline 6m x 6m) and two-boom jumbo suitable for smaller profiles (i.e. undercut and extraction levels 4.5m x 4.5m). ASSUMPTIONS: - Both types of jumbo can achieve 35m per week in single headings (classified as three or less headings) and 70m per week in multiple headings (classified as greater than three headings). - Jumbos install initial ground support (e.g. point anchor bolts). DRILLING - PRODUCTION DRILLING Longhole drilling rigs are proposed i.e. capable of drilling up to 50m long holes with hole diameters ranging from 89 to 102mm. ASSUMPTIONS: - Drills can achieve 8,000 drill metres per month. - The Undercut Level will require one production drill rig (estimated 6,500drm per month) for vertical blast holes and one Quasar drill rig (estimated 2,700drm per month) for horizontal blast holes to achieve a maximum of six draw bells extracted per month drilling requirements. - The Extraction Level will require one production drill rig (estimated 6,500drm per month) to achieve a maximum of six draw bells extracted per month drilling requirements. MATERIALS HANDLING - LOADING Diesel loaders with 8m(3) bucket capacity are proposed to meet jumbo waste development requirements. Smaller diesel loaders with 7.4m(3) bucket capacity are proposed to meet undercut and extraction level ore development due to the reduced profile (i.e. 4.5m x 4.5m). Similar sized electric loaders with 7m(3) bucket capacity are proposed for draw point ore production. The electric loaders will be powered via a trailing electrical cable which limits the distance that they can travel in any particular direction to approximately 250 metres. Due to safety concerns regarding the electric cable only one loader or unit of equipment can operate in a given sector. This limits to a maximum of four loaders that can access each crusher. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-109 ASSUMPTIONS: - Stope loaders can achieve 1.2Mt/a. - Development loaders can achieve 0.5Mt/a. MATERIALS HANDLING - TRUCKING Conventional large (55t payload) diesel articulated low-profile trucks are proposed. Until the production shaft is commissioned all underground production (mullock and ore) will have to be trucked to the surface via the surface to underground decline. ASSUMPTIONS: - A loaded truck can achieve 5km/hr up the decline. - An empty truck can achieve 20km/hr down the decline. - Surface is 1165mRL and all underground production hauled from the bottom of the orebody i.e. 575mRL. - Maximum decline haulage of 2Mt/a. OTHER EQUIPMENT AND LIGHT VEHICLES Estimated light vehicle requirements are split into three categories, i.e. staff: including management, geology, geotechnical and survey departments; production: including production drilling, cable bolt rigs, jumbo, nippers', service crew and underground supervision, and Maintenance: including mechanical, electrical and dewatering maintenance. Other specialised block cave equipment includes the following: - Secondary breakage equipment. - Secondary breakage unit (high hang up), see Figure 28. - Secondary Breakage Unit (low hang-up Commando unit). - Tele-remote Twin Boom Jumbo. FIGURE 28: SECONDARY BREAKAGE DRILL UNITS (HIGH HANG-UP UNITS) [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-110 2.3.9 LABOUR Table 25 shows the transition from a reliance on expatriate personnel during the ramp up phase to predominately Mongolian personnel during steady state production from Year 10 onwards. The Blue shading represents local labour while the Red shading represents expatriate labour. Key Assumptions are: - All development (i.e. jumbo development, shaft sinking and raise bore ventilation raises), production drilling and primary charging activities are undertaken by contractor personnel. All other underground activities are undertaken by IMMI personnel. - All senior personnel and skilled underground operators (e.g. longhole drillers, jumbo operators etc.) are expatriates and supporting personnel are Mongolian. The expatriate personnel are on a commute 'fly in/fly out' (FIFO) roster. - The staff FIFO roster is nine weeks on-site and five weeks off-site. This requires two personnel for each position i.e. nominally one on-site and one off-site with some overlap. - The shift work FIFO roster is two months on and one month off-site. This involves a three-shift workforce that works two 12-hour shifts per day with the third shift off- site. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-111 TABLE 25: LABOUR MATRIX SHOWING TRANSITION FROM EXPATRIATE TO MONGOLIAN PERSONNEL
Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 ----------------------------------------------------------------------------------------------------------------------------------- General Manager 1 1 1 1 1 1 1 1 1 1 1 1 Manager Mining 1 1 1 1 1 1 1 1 1 1 1 1 Manager Technical 1 1 1 1 1 1 1 1 1 1 1 1 Services Secretary/clerical 10 10 10 10 10 10 10 10 10 10 10 10 staff Senior Mining 4 4 4 4 4 4 4 4 4 4 4 4 Engineer Mine Planning 4 4 4 4 4 4 4 4 4 4 4 4 Engineer Mine Ventilation 2 2 2 2 2 2 2 2 2 2 2 2 Engineer Senior Geotechnical 4 4 4 4 4 4 4 4 4 4 4 4 Engineer Draw Control 4 4 4 4 4 4 4 4 4 4 4 4 Engineer Drill and Blast 2 2 2 2 2 2 2 2 2 2 2 2 Engineer Mine Technical 16 16 16 16 16 16 16 16 16 16 16 16 Assistants Senior Geologist 2 2 2 2 2 2 2 2 2 2 2 2 Mine Geologist 8 8 8 8 8 8 8 8 8 8 8 8 Geological 20 20 20 20 20 20 20 20 20 20 20 20 Technician Senior Mine 2 2 2 2 2 2 2 2 2 2 2 2 Surveyor Mine Surveyor 2 2 2 2 2 2 2 2 2 2 2 2 Survey Technician 6 6 6 6 6 6 6 6 6 6 6 6 Production 1 1 1 1 1 1 1 1 1 1 1 1 Superintendent Development 1 1 1 1 1 1 1 1 1 1 1 1 Superintendent Mine Foreman 2 2 2 2 2 2 2 2 2 2 2 2 Shift Boss Production 6 6 6 6 6 6 6 6 6 6 6 6 Store Personnel 6 6 6 6 6 6 6 6 6 6 6 6 Production Drill 4 4 4 4 4 4 4 4 4 4 4 4 LHD operator 20 20 20 20 20 20 20 20 20 20 20 20 Loss Control 2 2 2 2 2 2 2 2 2 2 2 2 Manager Safety Officers 4 4 4 4 4 4 4 4 4 4 4 4 Training Personnel 6 6 6 6 6 6 6 6 6 6 6 6 Translators 13 13 13 13 13 13 13 13 13 13 13 13 Control Room 3 3 3 3 3 3 3 3 3 3 3 3 Operators It Officers 4 4 4 4 4 4 4 4 4 4 4 4 Misc Services 18 18 18 18 18 18 18 18 18 18 18 18 Secondary Breakage 9 9 9 9 9 9 9 9 9 9 9 9 Maintenance Planner 2 2 2 2 2 2 2 2 2 2 2 2 Mechanical 3 3 3 3 3 3 3 3 3 3 3 3 Supervisor Electrical Supervisor 3 3 3 3 3 3 3 3 3 3 3 3 Maintenance 18 18 18 18 18 18 18 18 18 18 18 18 Tradesperson Mechanical 9 9 9 9 9 9 9 9 9 9 9 9 Tradesperson Instrument 18 18 18 18 18 18 18 18 18 18 18 18 Technician
Table Key: Blue - Local Labour Red - Expatriate Labour January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-112 2.3.10 MINING COSTS The mining costs were sourced from a combination of: - Indicative Australian underground development contractor costs. - Indicative comparable Australian stoping costs. - Indicative comparable infrastructure costs. - Costs built up from first principles. - IMMI supplied Mongolian labour rates. The so-called 'China Cost Discount Factors' (CCDF's) were estimates of potential cost savings resulting from operating a mine in and around China. The CCDF's used are explained in detail in Section 2.4. The CCDF's were applied to the following cost areas: - Shaft costs, i.e. shaft sinking and operating costs. - Fixed capital costs e.g. primary fans, electrical transformers. - Underground direct costs i.e. jumbo development, longhole production drilling, longhole production charging and trucking and bogging activities. Therefore two sets of cost data were estimated i.e. unadjusted costs with no CCDF's applied and adjusted costs with CCDF's applied. Table 26 and Table 27 provide year by year combinations of operating and capital costs per tonne with a life of mine average of $1.55/t (adjusted costs) and $1.76/t (unadjusted costs). Table 28 and Table 29 provide a breakdown of the adjusted and unadjusted life of mine capital and operating costs respectively and also provides details of the jumbo development contingencies used to account for unscheduled minor items such as: - stripping to install equipment such as large secondary fans, jumbo boxes, mono pumps, etc - stockpiles - stripping backs for loading points and other miscellaneous items. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-113 TABLE 26: ADJUSTED LIFE OF MINE COSTS
LOM Operating $/Tonne $/tonne Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 ---------------------------------------------------------------------------------------------------------------------------------- Operating $ per Tonne (Production Only ) $1.39 0 0 0 $ 3.85 $2.42 $1.56 $1.37 $1.68 $1.61 $1.50 $1.14 Operating and Capital $ per Tonne (Incl Contingencies) $3.48 0 0 $61.15 $10.58 $3.75 $2.52 $2.64 $3.35 $4.40 $3.14 $2.76 Development Component $0.79 0 0 $17.34 $ 2.51 $0.39 $0.24 $0.73 $0.89 $1.39 $0.59 $0.68 Operating $ per Total Ore Tonne $1.33 0 0 0 $ 3.28 $2.30 $1.52 $1.33 $1.59 $1.50 $1.44 $1.08 Operating and Capital $ per Total Ore Tonne (Incl Contingencies) $3.36 0 $177.35 $34.57 $ 9.00 $3.57 $2.45 $2.59 $3.17 $4.11 $3.02 $2.61 Development Component $0.77 0 $ 81.19 $ 9.81 $ 2.14 $0.37 $0.23 $0.71 $0.85 $1.30 $0.56 $0.64
Operating $/Tonne Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 ------------------------------------------------------------------------------------------------------------------------------------ Operating $ per Tonne (Production Only ) $1.38 $1.56 $1.30 $1.12 $1.13 $1.12 $1.12 $1.12 $1.13 $1.24 $2.11 Operating and Capital $ per Tonne (Incl Contingencies) $2.53 $2.75 $2.56 $2.00 $1.77 $1.58 $1.39 $1.42 $1.13 $1.24 $2.11 Development Component $0.57 $0.52 $0.48 $0.28 $0.11 $0.10 0 0 0 0 0 Operating $ per Total Ore Tonne $1.33 $1.52 $1.26 $1.10 $1.12 $1.11 $1.12 $1.12 $1.13 $1.24 $2.11 Operating and Capital $ per Total Ore Tonne (Incl Contingencies) $2.45 $2.68 $2.49 $1.95 $1.75 $1.56 $1.39 $1.42 $1.13 $1.24 $2.11 Development Component $0.55 $0.50 $0.46 $0.27 $0.10 $0.10 $0.00 0 0 0 0
TABLE 27: UNADJUSTED LIFE OF MINE COSTS
LOM Operating $/Tonne $/TONNE Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 ---------------------------------------------------------------------------------------------------------------------------------- Operating $ per Tonne (Production Only) $1.48 0 0 0 $4.65 $2.76 $1.56 $1.37 $1.91 $1.84 $1.68 $1.14 Operating and Capital $ per Tonne (Incl Contingencies) $4.22 0 0 $79.75 $13.46 $4.54 $2.80 $3.01 $4.22 $5.57 $3.78 $3.35 Development Component $1.04 0 0 $21.03 $3.42 $0.55 $0.34 $1.02 $1.25 $1.92 $0.79 $0.95 Operating $ per Total Ore Tonne $1.43 0 0 0 $3.96 $2.63 $1.52 $1.33 $1.80 $1.72 $1.61 $1.08 Operating and Capital $ per Total Ore Tonne (Incl Contingencies) $4.07 0 $225.75 $45.09 $11.45 $4.33 $2.71 $2.94 $3.99 $5.21 $3.63 $3.17 Development Component $1.00 0 $98.36 $11.89 $2.91 $0.53 $0.33 $0.99 $1.18 $1.80 $0.76 $0.90
Operating $/Tonne Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 ----------------------------------------------------------------------------------------------------------------------------------- Operating $ per Tonne (Production Only) $1.51 $1.78 $1.39 $1.12 $1.13 $1.12 $1.12 $1.12 $1.13 $1.24 $2.11 Operating and Capital $ per Tonne (Incl Contingencies) $3.06 $3.31 $3.00 $2.23 $1.89 $1.69 $1.39 $1.42 $1.13 $1.24 $2.11 Development Component $0.80 $0.71 $0.63 $0.39 $0.15 $0.14 0 0 0 0 0 Operating $ per Total Ore Tonne $1.46 $1.74 $1.34 $1.10 $1.12 $1.11 $1.12 $1.12 $1.13 $1.24 $2.11 Operating and Capital $ per Total Ore Tonne (Incl Contingencies) $2.96 $3.22 $2.91 $2.18 $1.87 $1.67 $1.39 $1.42 $1.13 $1.24 $2.11 Development Component $0.78 $0.69 $0.61 $0.38 $0.15 $0.14 0 0 0 0 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-114
OPTION 3A CAPITAL AND OPERATING SCHEDULE CONT LOM TOTAL YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ------------------------------------------------------------------------------------------------------------------------------------ Underground 210 Development Decline 25% $5.6 M $4.5 M $1.0 M 0 0 0 0 0 0 0 Underground 211 Development Ventilation 25% $13.3 M $1.8 $6.9 M $1.6 M 0 0 0 $0.5 M $0.4 M $ 0.3 M Underground 212 Development Dewatering 0% $ 4.0 M $0.3 M $1.0 M $2.2 M $0.4 M 0 0 0 0 0 Underground Development Materials 213 Handling 40% $21.3 M 0 $4.2 M $3.7 M $3.0 M 0 0 0 0 $ 3.0 M Underground 214 Development Ancillary 25% $2.4 M 0 0 $1.2 M $1.2 M 0 0 0 0 0 215 Extraction Level 20% $130.3 M $1.0 M $14.4 M $17.2 M $10.0 M $5.2 M $4.1 M $4.8 M $10.6 M $ 16.8 M 216 Undercut level 20% $42.6 M $0.8 M $9.3 M $7.6 M $3.6 M 0 0 $4.4 M $4.4 M $ 3.5 M Sustaining Capital 217 (Stores) 25% $12.6 M $0.4 M $1.3 M $2.0 M $0.8 M $0.4 M $0.5 M $0.7 M $0.4 M $ 0.7 M 220 Shaft $32.2 M $12.8 M $13.0 M $6.7 M 0 0 0 0 0 0 Pre-Production and 230 Mining 0 0 0 0 0 0 0 0 0 0 240 Mobile Equipment 5% $48.0 M $1.2 M $2.9 M $4.0 M $3.0 M $1.7 M $2.3 M $3.0 M $1.7 M $ 3.1 M Materials handling 241 Equipment 5% $13.5 M 0 $4.2 M $2.1 M $1.5 M 0 0 0 0 $ 1.5 M 242 Ancillary Equipment 5% $2.4 M $0.2 M $1.0 M $0.9 M $0.4 M 0 0 0 0 0 243 Primary Ventilation Fans 5% $1.4 M $0.1 M $0.8 M $0.5 M 0 0 0 0 0 0 250 Mine Services 25% $5.6 M $0.6 M $2.3 M $2.4 M $0.2 M 0 0 0 0 0 270 Total Operating Cost $237.3 M 0 0 0 $13.8 M $13.3 M $11.2 M $14.3 M $17.6 M $16.8 M Capitalised Operating 275 Cost $23.8 M $2.4 M $4.8 M $16.6 M 0 0 0 0 0 0 Total Capital Cost $335.5 M $23.6 M $62.3 M $52.1 M $24.0 M $7.3 M $6.9 M $13.4 M $17.5 M $29.0 M Yearly Total Cost $596.5 M $26.0 M $67.0 M $68.7 M $37.8 M $20.7 M $18.2 M $27.8 M $35.2 M $45.8 M Yearly Total (including contingency) $596.5 M $26.0 M $67.0 M $68.7 M $37.8 M $20.7 M $18.2 M $27.8 M $35.2 M $45.8 M
OPTION 3A CAPITAL AND OPERATING SCHEDULE YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 ------------------------------------------------------------------------------------------------------------------ Underground 210 Development Decline 0 0 0 0 0 0 0 0 0 Underground 211 Development Ventilation 0 $0.7 M 0 $0.7 M $0.3 M 0 0 0 0 Underground 212 Development Dewatering 0 0 0 0 0 0 0 0 0 Underground Development Materials 213 Handling $3.0 M $0.7 M 0 $0.3 M $3.0 M 0 0 0 0 Underground 214 Development Ancillary 0 0 0 0 0 0 0 0 0 215 Extraction Level $8.7 M $9.8 M $5.2 M $5.7 M $6.4 M $5.4 M $2.5 M $2.5 M 0 216 Undercut level 0 $2.7 M $4.4 M $1.8 M 0 0 0 0 0 Sustaining Capital 217 (Stores) $0.7 M $0.4 M $0.5 M $0.7 M $0.4 M $0.7 M $0.7 M $0.4 M $0.5 M 220 Shaft 0 0 0 0 0 0 0 0 0 Pre-Production and 230 Mining 0 0 0 0 0 0 0 0 0 240 Mobile Equipment $3.2 M $1.8 M $2.3 M $3.1 M $1.8 M $3.1 M $3.2 M $1.7 M $2.3 M Materials handling 241 Equipment $1.5 M $1.0 M 0 $0.4 M $1.5 M 0 0 0 0 242 Ancillary Equipment 0 0 0 0 0 0 0 0 0 243 Primary Ventilation Fans 0 0 0 0 0 0 0 0 0 250 Mine Services 0 0 0 0 0 0 0 0 0 270 Total Operating Cost $15.7 M $12.1 M $14.8 M $16.6 M $13.7 M $11.7 M $11.3 M $11.7 M $11.8 M Capitalised Operating 275 Cost 0 0 0 0 0 0 0 0 0 Total Capital Cost $17.2 M $17.1 M $12.4 M $12.7 M $13.4 M $9.1 M $6.4 M $4.7 M $2.8 M Yearly Total Cost $32.9 M $29.2 M $27.2 M $29.2 M $27.2 M $20.9 M $17.8 M $16.3 M $14.6 M Yearly Total (including contingency) $32.9 M $29.2 M $27.2 M $29.2 M $27.2 M $20.9 M $17.8 M $16.3 M $14.6 M
OPTION 3A CAPITAL AND OPERATING SCHEDULE YEAR 17 YEAR 18 YEAR 19 YEAR 20 --------------------------------------------------------------------- Underground 210 Development Decline 0 0 0 0 Underground 211 Development Ventilation 0 0 0 0 Underground 212 Development Dewatering 0 0 0 0 Underground Development Materials 213 Handling 0 0 0 0 Underground 214 Development Ancillary 0 0 0 0 215 Extraction Level 0 0 0 0 216 Undercut level 0 0 0 0 Sustaining Capital 217 (Stores) $0.6 M 0 0 0 220 Shaft 0 0 0 0 Pre-Production and 230 Mining 0 0 0 0 240 Mobile Equipment $2.6 M 0 0 0 Materials handling 241 Equipment 0 0 0 0 242 Ancillary Equipment 0 0 0 0 243 Primary Ventilation Fans 0 0 0 0 250 Mine Services 0 0 0 0 270 Total Operating Cost $12.0 M $11.3 M $7.4 M $3.0 M Capitalised Operating 275 Cost 0 0 0 0 Total Capital Cost $3.2 M 0 0 0 Yearly Total Cost $15.2 M $11.4 M $7.4 M $3.0 M Yearly Total (including contingency) $15.2 M $11.4 M $7.4 M $3.0 M
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-115 TABLE 29: UNADJUSTED LIFE OF MINE COSTS BREAKDOWN
OPTION 3A CAPITAL AND OPERATING SCHEDULE CONT LOM TOTAL YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ------------------------------------------------------------------------------------------------------------------------------- Underground 210 Development Decline 25% $6.9 M $5.5 M $1.4 M 0 0 0 0 0 0 0 Underground 211 Development Ventilation 25% $14.9 M $1.9 M $7.9 M $1.7 m 0 0 0 $0.4 M $0.4 M $0.4 M Underground 212 Development Dewatering 0% $5.1 M $0.3 M $1.4 M $2.9 M $0.5 M 0 0 0 0 0 Underground Development Materials 213 Handling 40% $26.1 M $ 0 $5.2 M $4.5 M $3.8 M 0 0 0 0 $3.8 M Underground 214 Development Ancillary 25% $3.0 M 0 0 $1.6 M $1.4 M 0 0 0 0 0 215 Extraction Level 20% $184.5 M $1.2 M $17.5 M $23.0 M $14.7 M $7.7 M $6.1 M $6.7 M $15.5 M $24.4 M 216 Undercut level 20% $57.1 M $1.0 M $11.5 M $9.4 M $5.0 M 0 0 $6.3 M $6.3 M $5.0 M Sustaining Capital 217 (Stores) 25% $13.1 M $0.4 M $1.4 M $2.2 M $0.8 M $0.4 M $0.5 M $0.7 M $0.4 M $0.7 M 220 Shaft $56.7 M $22.1 M $22.6 M $11.9 M 0 0 0 0 0 0 Pre-Production and 230 Mining 0 240 Mobile Equipment 5% $49.2 M $1.7 M $3.3 M $4.2 M $3.0 M $1.7 M $2.3 M $3.1 M $1.7 M $3.1 M Materials handling 241 Equipment 5% $13.5 M 0 $4.2 M $2.1 M $1.5 M 0 0 0 0 $1.5 M 242 Ancillary Equipment 5% $2.9 M $0.2 M $0.9 M $1.1 $0.5 M 0 0 0 0 0 243 Primary Ventilation Fans 5% $1.9 M $0.2 M $1.0 M $0.6 M 0 0 0 0 0 0 250 Mine Services 25% $5.6 M $0.7 M $2.3 M $2.4 M $0.2 M 0 0 0 0 0 270 Total Operating Cost $253.5 M 0 0 0 $16.6 M $15.2 M $11.2 M $14.3 M $20.0 M $19.2 M Capitalised Operating 275 Cost $29.0 M $2.4 M $4.8 M $21.9 M 0 0 0 0 0 0 Total Capital Cost $440.5 M $35.3 M $80.6 M $67.7 M $31.5 M $9.8 M $8.9 M $17.2 M $24.2 M $38.9 M Yearly Total Cost $723.1 M $37.6 M $85.4 M $89.7 M $48.1 M $25.1 M $20.1 M $31.6 M $44.3 M $58.1 M Yearly Total (Including contingency) $723.1 M $37.6 M $85.4 M $89.7 M $48.1 M $25.1 M $20.1 M $31.6 M $44.3 M $58.1 M
OPTION 3A CAPITAL AND OPERATING SCHEDULE YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 -------------------------------------------------------------------------------------------------------------- Underground 210 Development Decline 0 0 0 0 0 0 0 0 0 Underground 211 Development Ventilation 0 $1.0 M 0 $0.9 M $0.2 M 0 0 0 0 Underground 212 Development Dewatering 0 0 0 0 0 0 0 0 0 Underground Development Materials 213 Handling $3.8 M $1.0 M 0 $0.4 M $3.8 M 0 0 0 0 Underground 214 Development Ancillary 0 0 0 0 0 0 0 0 0 215 Extraction Level $12.8 M $14.4 M $7.5 M $8.3 M $9.4 M $7.8 M $3.8 M $3.8 M 0 216 Undercut level 0 $3.8 M $6.3 M $2.5 M 0 0 0 0 0 Sustaining Capital 217 (Stores) $0.7 M $0.4 M $0.5 M $0.7 M $0.4 M $0.7 M $0.7 M $0.4 M $0.5 M 220 Shaft 0 0 0 0 0 0 0 0 0 Pre-Production and 230 Mining 240 Mobile Equipment $3.2 M $1.8 M $2.3 M $3.0 M $1.8 M $3.1 M $3.2 M $1.7 M $2.3 M Materials handling 241 Equipment $1.5 M $ 1.0 0 $0.4 M $1.5 M 0 0 0 0 242 Ancillary Equipment 0 0 0 0 0 0 0 0 0 243 Primary Ventilation Fans 0 0 0 0 0 0 0 0 0 250 Mine Services 0 0 0 0 0 0 0 0 0 270 Total Operating Cost $17.6 M $12.1 M $16.3 M $19.0 M $14.7 M $11.7 M $11.3 M $11.7 M $11.8 M Capitalised Operating 275 Cost 0 0 0 0 0 0 0 0 0 Total Capital Cost $22.0 $23.3 M $16.6 M $16.2 M $17.1 M $11.6 M $7.7 M $5.8 M $2.8 M Yearly Total Cost $39.6 M $35.4 M $32.9 M $35.1 M $31.8 M $23.3 M $19.0 M $17.5 M $14.6 M Yearly Total (Including contingency) $39.6 M $35.4 M $32.9 M $35.1 M $31.8 M $23.3 M $19.0 M $17.5 M $14.6 M
OPTION 3A CAPITAL AND OPERATING SCHEDULE YEAR 17 YEAR 18 YEAR 19 YEAR 20 --------------------------------------------------------------------- Underground 210 Development Decline 0 0 0 0 Underground 211 Development Ventilation 0 0 0 0 Underground 212 Development Dewatering 0 0 0 0 Underground Development Materials 213 Handling 0 0 0 0 Underground 214 Development Ancillary 0 0 0 0 215 Extraction Level 0 0 0 0 216 Undercut level 0 0 0 0 Sustaining Capital 217 (Stores) $ 0.6 M 0 0 0 220 Shaft 0 0 0 0 Pre-Production and 230 Mining 240 Mobile Equipment $ 2.6 M 0 0 0 Materials handling 241 Equipment 0 0 0 0 242 Ancillary Equipment 0 0 0 0 243 Primary Ventilation Fans 0 0 0 0 250 Mine Services 0 0 0 0 270 Total Operating Cost $ 12.0 M $11.4M $7.4 M $3.0 M Capitalised Operating 275 Cost 0 0 0 0 Total Capital Cost $ 3.2 M 0 0 0 Yearly Total Cost $15.2 M $11.4 M $7.4 M $3.0 M Yearly Total (Including contingency) $15.2 M $11.4 M $7.4 M $3.0 M
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-116 -------------------------------------------------------------------------------- 2.4 CHINA COST DISCOUNT FACTORS China has attracted significant foreign investment, mainly due to a comparatively low cost of production, i.e. labour, consumables and energy. China undertakes business differently to the West, particularly regarding contractual quotations and negotiations. Chinese business transactions are characteristically flexible with rarely a definitive final cost. Chinese costs and production rates can vary significantly, depending on where and from whom the data is sourced. Variations are common from province to province and company to company. To get the best Chinese Cost Discount Factors (CCDF) is a function of the business and negotiation strategy employed. For example the same project would result in different CCDF's for the following three options: - A wholly owned Chinese project would achieve the best CCDF's. - A Joint Venture between a foreign investor and Chinese companies would achieve moderate CCDF's. - A foreign owned project with business links to Chinese companies would achieve the worst CCDF's. OYU TOLGOI SCOPING STUDY It is premature to define precise CCDF's for the Oyu Togoi scoping study, however indicative CCDFs can be estimated and applied. SRK METHODOLOGY Taking into account the time constraints, SRK used the following approach: - SRK and ENFI shaft studies were analysed in detail and comparable physical and cost components were determined. This allowed an estimation of indicative Shaft CCDF for excavation, equipping and capital electrical/mechanical installations. - SRK selected relevant comparable items from the Australian and Chinese mining industry in the following three areas; underground labour (e.g. annual salaries), consumables (e.g. cement, explosives) and energy (e.g. diesel, electric power) that led to indicative underground direct cost CCDF's. CONCLUSION The above indicative CCDF's need to be further refined once the project has progressed to a feasibility stage. It is expected that further reductions of the discount factors can be achieved by closer relationships and improved communication with Chinese suppliers. DISCLAIMER CCDF ESTIMATES ARE INDICATIVE ONLY I.E. +/-30% DUE MAINLY TO THE SHORT TIME ALLOWED FOR SRK TO UNDERTAKE THE ANALYSIS. Y. WEI (MANAGER - SRK CHINA) WAS ONLY INVOLVED FOR FOUR DAYS (I.E. 12/8/03 TO 15/8/03) TO GATHER UNDERGROUND CHINESE COSTS OF SELECTED INDICATIVE COST ELEMENTS FOR COMPARATIVE PURPOSES WITH AUSTRALIAN COST ELEMENTS. SRK- PERTH PERSONNEL THEN USED Y. WEI'S CHINESE COST DATA SUPPLEMENTED WITH APPLICABLE AAJV/IMMI CHINESE COST DATA AND EQUIVALENT AUSTRALIAN COST DATA TO ESTIMATE REALISTIC INDICATIVE CCDF'S APPLICABLE TO THE PROJECT UNDERGROUND ASPECTS BY 21/8/03. SRK HAS EXERCISED ALL DUE CARE IN REVIEWING THE SUPPLIED INFORMATION. SRK DOES NOT ACCEPT RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS IN THE SUPPLIED INFORMATION AND DOES NOT ACCEPT ANY CONSEQUENTIAL LIABILITY ARISING FROM COMMERCIAL DECISIONS OR ACTIONS RESULTING FROM THEM. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-117 -------------------------------------------------------------------------------- 2.4.1 SHAFT CHINESE COST DISCOUNT FACTOR CCDF for capital was determined by a comparison between the SRK shaft report and the ENFI shaft report for the Oyu Tolgoi project, and then applied to all underground capital components. SRK prepared a shaft design for hoisting 10Mt/a of ore from an underground operation. The shaft is 790m in depth and 9.8m outside diameter with a concrete lining of 150mm that gives a finished diameter of 9.5m. The shaft is equipped with two Koepe winders each pulling two 25 tonne capacity skips and the winders are rated at 3700kW each. In addition this shaft has a 655kW service winder to hoist men and materials. Compartments are set-aside in the shaft design for these facilities. The shaft is fully equipped with all shaft furniture including a 300mm concrete brattice wall to split the fresh air intake and the exhaust air return. The total cost for this installation without any design, contract management or contingency allowance (approximately 30%) is US$45.59. ENFI the Chinese mining institute has similarly submitted 'qualified' designs and costings for a number of options for hoisting rock at Oyu Tolgoi. ENFI have submitted three alternatives; each of which include two shafts, one to 800m and the other to 1200m. In all cases, the shafts are mined to 8.0m diameter with a 300mm concrete lining giving a finished diameter of 7.4m. In the ENFI alternatives, the 800m shaft is in all cases used solely to hoist rock, with no personnel or equipment transfer. Each of the shafts is equipped with two 5500kW friction winders each hoisting two 32 tonne skips. ENFI has proposed that these shafts be equipped solely with 'rope guides' that permit the skip to swing to a certain degree in the hoisting operation that results in a combined total hoisting capacity of 18Mt/a. In Alternative 2, steel shaft furniture is included in the design of the 1200m shaft, when one rock winder is substituted by a 650kW service winder to transport men and materials in the shaft. This permits 14Mt/a to be hoisted. In Alternative 3, there is no rock hoisting in the 1200m shaft and two service winders are available to hoist men and materials. This allows 10Mt/a hoisting capacity. The comparative costs (including ore passes, crushers etc) in US$ terms are $60.071M, $52.314M and $41.43M. The engineer responsible for drawing up this cost estimate has given a verbal caution against using this estimate as an absolute number as it was intended to demonstrate comparisons only. In order to compare the unadjusted (no CCDF) and adjusted (CCDF) cost estimates, it is necessary to make two estimates as alike as possible with relevant changes and adjustments factored into the estimates. Therefore, it was decided to compare the 800m ENFI shaft with the 790m SRK shaft that hoists 10Mt/a. Seemingly, both shafts were anticipated to do similar duties and to have the minimum of associated ancillary operations. In the ENFI case this necessitated the elimination of all ore and waste passes as well as all crushers and their associated infrastructure. With the SRK estimate it required the elimination of a complete shaft station (plat). It is assumed that the ENFI shaft is excavated to the same diameter as the SRK shaft (9.8m). This is equipped with two rock winders and a service winder of the type nominated. The sinking and lining costs are then factored on a volumetric basis using the unit cost associated with the 1200m Alternative 2 shaft as a base. Similarly, costs to equip this 800m shaft with such furniture as is necessary were factored from the 1200m Alternative 2 estimate. However, this unit cost had to be increased because an additional hoisting compartment had to be included. Additionally, the 'effective' cross sectional area was far larger (66.5m2) than the original 43m2 to accommodate 4 skip compartments and a man winding compartment. Similarly, the shaft tower cost is adjusted to accommodate the increased duty of three winders and to straddle a larger shaft. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-118 -------------------------------------------------------------------------------- Nevertheless, disparities still exist. The SRK estimate contains the cost of a 300mm thick cement brattice dividing the shaft whilst the ENFI shaft has a 300mm concrete shaft lining as opposed to the 150mm employed by SRK. The shaft bottom spillage arrangements are different as are the heights of the 'shaft towers. The markedly different costs associated with labour, cement and steel appear to be the main drivers of the cost differential between the two estimates. However, variations between major cost capital items such as winders, hydraulic systems and pumps are not as clear-cut and are difficult to determine. The Chinese shaft system as outlined by ENFI would appear to cost approximately 57% of an equivalent system as outlined by SRK (see Table 30). It must be pointed out that neither of the estimates submitted contain any allowance for design, contract management or contingency. SRK anticipates that at this level of study this is likely to be at 30%. It is recommended; therefore, that it be applied both to the ENFI figure as well as the SRK estimate. The final estimate follows: Chinese Shaft system US$32.98M Western Shaft system US$57.86M Chinese Discount Factor: 57%
2.4.2 FIXED CAPITAL PLANT ITEMS Due to lack of reliable Chinese cost data regarding fixed capital plant items (e.g. transformers, primary ventilation fans, major pumps etc) a conservative CCDF of 75% was assumed. TABLE 30: CHINESE COST DISCOUNT FACTOR - SHAFT 1 US$ = 8.27 RMB ENFI Volume Adjustment Factor = 1.50 ENFI Equipping Adjustment Factor = 2.43
ENFI ADJUSTED ENFI TURGIS -------- ------------- -------- PHYSICALS Shaft Depth (m) 800 800 790 Annual Capacity (Mt/a) 10 10 10 Skip Size (t) 32 32 25 Rock Winder (kW) 5500 X 2 5500 X 2 3500 X 2 Service Winder (kW) nil 1 X 650 1 X 655 Outside Diameter (m) 8.0 9.8 9.8 Lining (m) 0.3 0.3 0.15 Inside Diameter (m) 7.4 9.2 9.5 Outside Surface Area (m(carret)2) 50.3 75.4 75.4 Inside Surface Area (m(carret)2) 43.0 66.5 70.9 Volume (m(carret)3) 42,158 63,237 unknown
ENFI ADJUSTED ENFI TURGIS ----------------- ---------------------------------- ------- COST RMB X 10(carret)4 $USm Sink & Line Rate (per m(carret)3) 0.072 0.078 Sink & Line Cost 3,031 4,940 $ 5.973 $ 19.96 Equipping Shaft Cost (per m) 0.999 2.43 Equipping Shaft Cost 799 1944 $ 2.351 $ 6.522 Headgear 2,047 3,071 $ 3.713 $ 3.39 Headgear Services 9,281 11,033 $13.341 $ 14.64 SUB -TOTAL $ 25.38 $ 44.51 China Cost Discount Factor - Shaft: 57.0%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-119 -------------------------------------------------------------------------------- 2.4.3 UNDERGROUND DIRECT COST - CHINA COST DISCOUNT FACTORS TABLE 31: CHINESE COST DISCOUNT FACTOR ELEMENTS
CHINESE COST DISCOUNT FACTOR CHINESE/MONGOLIAN COSTS ---------------------------------------------------------------------------------------- Chinese Overall Management & Labour 40% Source Y. Wei, assuming 4:1 Discount factor Chinese Single Labour Discount Factor 10% Source Y. Wei, shift operators Chinese ANFO Discount Factor 65% Source Y. Wei Chinese Emulsion Discount Factor 75% Source Y. Wei Chinese Rockbolt Discount Factor 80% Source MCC report, from AAJV/IMMI Chinese Diesel Factor 130% Source, OT project energy costs Chinese Electricity Discount Factor 28% Source, OT project energy costs Chinese General Consumables Discount Factor 50% Source, Y. Wei & AAJV/IMMI Chinese Cement Discount Factor 25% Source Y. Wei
Refer to Figure 29 for cost elements used to determine underground CCDF's. Of the Chinese and equivalent Australian cost elements analysed diesel fuel is the only item that is more expensive in Mongolia. Refer to Table 31 for Chinese cost discount factor elements used to determine composite underground direct cost CCDF's. 2.4.4 CONTRACTOR RATES As discussed in Section 2.3.9, it is assumed the mining contractor undertakes all development, production drilling and primary charging activities. The contractor rates that apply to these activities are all inclusive 'schedule of rate' costs. It is further assumed that the contractor depreciation and amorisation ( A & D) component of these rates is 35%. The remaining 65% of the rates are made up of labour and consumable components. Consequently the CCDF's estimated below are only applied to the labour and consumable components of the contractor rates. 2.4.5 LABOUR The comparisons of Chinese and Australian total annual salaries/wage bills for middle management and shift operators suggested a significant average Chinese cost reduction of about 10% of Australian costs for equivalent positions. However, it was assumed that a significant number of extra local personnel would be employed due to the low wage cost and to encourage local employment and training. Consequently, for activities that require more than one operator (e.g. jumbo development, longhole drilling/charging etc), the total number of local personnel have been estimated by increasing the Australian personnel numbers by a factor of four, i.e. an equivalent overall cost reduction of 40% of Australian costs. Using the total personnel numbers estimated in both underground cases, the following indicative break down has been estimated for the ramp up and steady state production phases, regarding local and ex-patriate personnel as shown below: The 'shift operator' expatriate and Mongolian personnel ratio is applied in the labour components of the direct cost areas as shown in Table 32. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-120 -------------------------------------------------------------------------------- TABLE 32: UNDERGROUND SHIFT OPERATOR EXPATRIATE AND MONGOLIAN RATIO
STEADY STATE RAMP UP PRODUCTION LOCAL EX-PAT LOCAL EX-PAT CATEGORY ------------------------------------------------------------------------------- Senior Management 0% 100% 80% 20% 5% Management non shift work 30% 70% 100% 0% 30% Management shift work 30% 70% 100% 0% 10% Shift Operators 40% 60% 100% 0% 55% 100%
2.4.6 JUMBO DEVELOPMENT Jumbo development cost breakdown estimate is shown in Table 33: The cost area breakdown is based on Australian decline contractor costs. TABLE 33: JUMBO DEVELOPMENT CCDF
STEADY STATE RATIO RAMP UP PRODUCTION ----------------------------------------------------------------------------------- explosives - ANFO 5% 3.3% 3.3% using ANFO factor materials handling 10% 13.0% 13.0% using diesel factor labour - overall 30% 22.8% 12.0% using overall labour factor rockbolts etc 5% 4.0% 4.0% using rockbolt factor fibrecrete 15% 3.8% 3.8% using cement factor 65% 46.8% 36.0%
2.4.7 LONGHOLE PRODUCTION DRILLING Longhole production drilling cost breakdown estimate is shown in Table 34. TABLE 34: LONGHOLE PRODUCTION DRILLING CCDF
STEADY STATE RATIO RAMP UP PRODUCTION ----------------------------------------------------------------------------------------------- consumables 20% 10.0% 10.0% using general consumables factor labour - overall 30% 22.8% 12.0% using overall labour factor power - electricity 15% 4.2% 4.2% using electricity factor 65% 37.0% 26.2%
2.4.8 LONGHOLE PRODUCTION CHARGING Longhole production charging cost breakdown estimate is shown in Table 35. TABLE 35: LONGHOLE PRODUCTION CHARGING CCDF
STEADY STATE RATIO RAMP UP PRODUCTION ------------------------------------------------------------------------------------------- consumables - emulsion 20% 15.0% 15.0% Using emulsion factor labour - overall 30% 22.8% 12.0% Using overall labour factor power - diesel 15% 19.5% 19.5% Using diesel factor 65% 57.3% 46.5%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-121 -------------------------------------------------------------------------------- 2.4.9 TRUCKING AND BOGGING The diesel materials handling (e.g. trucks and boggers) cost breakdown estimate is shown in Table 36. TABLE 36: TRUCKING AND BOGGING CCDF
STEADY STATE RATIO RAMP UP PRODUCTION -------------------------------------------------------------------------------------------------- consumables 20% 10.0% 10.0% using general consumables factor labour - single 30% 3.0% 3.0% using single labour factor power - diesel 15% 19.5% 19.5% using diesel factor 65% 32.5% 32.5%
2.4.10 SUMMARY The underground direct cost CCDF's used are summarised in Table 37. TABLE 37: UNDERGROUND DIRECT COSTS CCDF
CHINESE COST DISCOUNT FACTORS ---------------------------------------------------------------------- RAMP UP PHASE STEADY PRODUCTION PHASE -------------------------------- ------------------------------ A & D FACTORED TOTAL A & D FACTORED TOTAL ----------------------------------------------------------------------------------------------------- Jumbo Development 35% 47% 82% 35% 36% 71% Production Drilling 35% 37% 72% 35% 26% 61% Production Charging 35% 57% 92% 35% 47% 82% Trucking/Bogging 35% 33% 68% 35% 33% 68%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2- 122 -------------------------------------------------------------------------------- FIGURE 29: CHINA COST DISCOUNT FACTOR ELEMENTS - UNDERGROUND DIRECT COSTS Note: 1 A$ = 5.48 Yuan 1 A$ = 0.60 US$
AUSTRALIAN (A$) AUSTRALIAN (YUAN) Y. WEI (YUAN) ---------------------------- ----------------------------------- -------------------------------- TOTAL ANNUAL ONCOSTS TOTAL ANNUAL SALARY ONCOSTS COST ANNUAL ONCOSTS TOTAL CHINA ------------------------------------------------------------------------------------------------------------------------------------ SENIOR MANAGEMENT Mine Manager $175,000 $52,000 $227,000 958,374 284,774 1,243,147 200,000 60,000 260,000 21% MINE TECHNICAL SERVICES Graduate Mining Engineer $ 70,000 $15,000 $ 85,000 383,349 82,146 465,496 25,000 7,500 32,500 7% Senior Mining Engineer $120,000 $26,000 $146,000 657,170 142,387 799,557 60,000 18,000 78,000 10% Mine Geologist $ 80,000 $17,000 $ 97,000 438,114 93,099 531,213 35,000 10,500 45,500 9% MINE PRODUCTION Truck Driver $ 75,000 $16,000 $ 91,000 410,732 87,623 498,354 50,000 15,000 65,000 13% Service Crew $ 80,000 $17,000 $ 97,000 438,114 93,099 531,213 15,000 4,500 19,500 4%
CONSUMABLES AUSTRALIAN AUSTRALIAN Y. WEI CHINA EXPLOSIVES COST(A$) COST (YUAN) COST (YUAN) FACTOR ----------------------------------------------------------------------------------------------------------------------------------- ANFC per kg $ 1.14 6.25 4.00 64% Detonating Cord (Trunkline) per m $ 0.62 3.38 1.40 41% Emulsion VE per kg $ 1.39 7.61 5.5 72% Ground Support Portland Cement per tonne $ 187.00 1,024.09 260 25% Universal bolt galvanised 24mm x 2.4m per m $ 7.35 40.25 30.93 77% Chinese rockbolt rate sourced from AAJV AUSTRALIAN CHINESE CHINA Other COST(US$) COST (US$) FACTOR Structural Steel per tonne $ 3,561.75 $ 1,099.02 31% Chinese costs sourced from AAJV Pipework per m $ 57.82 $ 39.07 68% Chinese costs sourced from AAJV
GENERAL CONSUMABLES - NOT INCLUDING EXPLOSIVES
CHINA RATIO FACTOR Portland Cement 30% 25% Rockbolts 30% 77% Structural Steel 20% 31% Pipework 20% 68% GENERAL CONSUMABLES FACTOR 100% 50%
ENERGY
OYU TOLGOI AUSTRALIAN AUSTRALIAN PROJECT CHINA COST(A$) COST(US$) COST(US$) FACTOR ----------------------------------------------------------------------------------------------------- Diesel per litre $0.437 $0.262 $0.348 133% Power per kWhr $0.148 $0.089 $0.025 28%
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2- 123 -------------------------------------------------------------------------------- SECTION 2 APPENDICES 2.1 SHAFT SINKING PHASE January 2004 [SINKING SHAFT CONFIGURATION PLAN] [ELEVATION ON STAGE SHOWING SHEAVE CONFIGURATION PLAN] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-124 2.2 SHAFT EQUIPPING PHASE January 2004 [EQUIPPING SHAFT CONFIGURATION PLAN] [ELEVATION ON STAGE PLAN] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-125 2.3 SHAFT PERMANENT CONDITION January 2004 [PERMANENT SHAFT SECTION PLAN] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-126 2.4 SHAFT VERTICAL LONG SECTION January 2004 [VERTICAL SHAFT LONG SECTION PLAN] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-127 2.5 DEWATERING RETICULATION January 2004 [DEWATERING RETICULATION PLAN] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-128 2.6 ELECTRICAL RETICULATION January 2004 [ELECTRICAL RETICULATION PLAN] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-129 2.7 CAPITAL EXPENDITURE January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Appendix 2.7 10Mt/a BLOCK CAVE MINE : CAPITAL EXPENDITURE SCHEDULE
6 MONTH PERIODS (US$) DESCRIPTION 1 2 3 4 5 ----------- ---------------- --------- --------- --------- --------- 1 SHAFTS Site establishment not included in scope of work Headgear construction including winderhouses 1,125,000 1,607,143 401,786 80,357 Bank and sub-bank development, ducting and construction 392,857 Slow sink & line @ 1 m/day 1,041,557 1,041,557 Fast sink & line @ 4 m/day 4,125,500 6,600,800 4,950,600 825,100 Headgear change overs x 2 85,714 85,714 Equip shaft @ 20 m/day with brattice wall 1,093,886 2,187,771 1,093,886 1,093,886 Install signalling & communications 22,857 22,857 Install Koepe winder 5,657,321 4,525,857 565,732 565,732 Install service winder 1,651,157 1,320,926 330,231 Rope up & install perm. conveyance 21,429 1 stations development and lining 260,000 260,000 Commission shaft 21,429 Belt level development & install equipment 196,429 157,143 39,286 U/G loading box develop and installation 514,286 642,857 128,571 Shaft bottom pump station develop and installation 54,286 67,857 13,571 Shaft spillage handling arrangement installation 62,857 78,571 15,714 Ventilation Raises (for decline ramp) 196,275 140,196 112,157 112,157 TOTAL CATEGORY 1 8,216,736 12,590,218 12,635,300 8,792,569 3,356,035 2 ACCESS DEVELOPMENT not in scope of work TOTAL CATEGORY 2 0 0 0 0 0 3 VENTILATION Ventilation 177,846 88,923 889,232 622,463 TOTAL CATEGORY 3 0 177,846 88,923 889,232 622,463 4 UNDERGROUND SERVICES Dewatering 169,782 169,782 169,782 1,018,689 Service Water Supply and Reticulation 200,811 66,937 66,937 66,937 66,937 Electrcial Power and Reticulation 145,267 145,267 1,162,134 1,162,134 Compressed Air Supply not included in scope of work Communication System 31,440 314,404 251,523 Service Excavations and Underground Workshops Potable Water 5,664 1,888 1,888 1,888 1,888 TOTAL CATEGORY 4 407,697 383,873 383,873 1,545,363 2,501,172 5 MAJOR PLANT not in scope of work TOTAL CATEGORY 5 0 0 0 0 0 6 MINING EQUIPMENT not in scope of work TOTAL CATEGORY 6 0 0 0 0 0 7 SURFACE SERVICES not in scope of work TOTAL CATEGORY 7 0 0 0 0 0 8 ENGINEERING, PROCUREMENT AND CONTRACT MANGEMENT Design and Procure - 7.5% 646,832 986,395 983,107 842,037 485,975 Contract Administration - 7.5% 695,345 1,060,375 1,056,840 905,190 522,423 TOTAL CATEGORY 8 1,342,177 2,046,770 2,039,948 1,747,227 1,008,398 TOTAL 9,966,610 15,198,708 15,148,044 12,974,391 7,488,067 CONTINGENCY @ 15 % 1,494,991 2,279,806 2,272,207 1,946,159 1,123,210 GRAND TOTAL 11,461,601 17,478,514 17,420,251 14,920,549 8,611,278 ACCUMULATIVE TOTAL 11,461,601 28,940,115 46,360,366 61,280,915 69,892,193
DESCRIPTION 6 7 8 9 TOTAL ----------- --------- --------- --------- --------- ---------- 1 SHAFTS Site establishment 0 Headgear construction including winderhouses 3,214,286 Bank and sub-bank development, ducting and construction 392,857 Slow sink & line @ 1 m/day 2,083,114 Fast sink & line @ 4 m/day 16,502,000 Headgear change overs x 2 171,429 Equip shaft @ 20 m/day with brattice wall 5,469,429 Install signalling & communications 45,714 Install Koepe winder 11,314,643 Install service winder 3,302,314 Rope up & install perm. conveyance 21,429 1 stations development and lining 520,000 Commission shaft 21,429 Belt level development & install equipment 392,857 U/G loading box develop and installation 1,285,714 Shaft bottom pump station develop and installation 135,714 Shaft spillage handling arrangement installation 157,143 Ventilation Raises (for decline ramp) 560,786 TOTAL CATEGORY 1 0 0 0 0 45,590,857 2 ACCESS DEVELOPMENT not in scope of work 0 TOTAL CATEGORY 2 0 0 0 0 0 3 VENTILATION Ventilation 1,778,464 TOTAL CATEGORY 3 0 0 0 0 1,778,464 4 UNDERGROUND SERVICES Dewatering 1,358,253 509,345 3,395,631 Service Water Supply and Reticulation 66,937 66,937 66,937 669,369 Electrcial Power and Reticulation 290,534 2,905,336 Compressed Air Supply 0 Communication System 31,440 628,807 Service Excavations and Underground Workshops 1,664,286 1,664,286 3,328,571 Potable Water 1,888 1,888 1,888 18,881 TOTAL CATEGORY 4 3,413,337 2,242,455 68,825 0 10,946,595 5 MAJOR PLANT not in scope of work 0 TOTAL CATEGORY 5 0 0 0 0 0 6 MINING EQUIPMENT not in scope of work 0 TOTAL CATEGORY 6 0 0 0 0 0 7 SURFACE SERVICES not in scope of work 0 TOTAL CATEGORY 7 0 0 0 0 0 8 ENGINEERING, PROCUREMENT AND CONTRACT MANGEMENT Design and Procure - 7.5% 256,000 168,184 5,162 0 4,373,694 Contract Administration - 7.5% 275,200 180,798 5,549 0 4,701,721 TOTAL CATEGORY 8 531,201 348,982 10,711 0 9,075,414 TOTAL 3,944,538 2,591,437 79,536 0 67,391,331 CONTINGENCY @ 15 % 591,681 388,716 11,930 0 10,108,700 GRAND TOTAL 4,536,218 2,980,153 91,466 0 77,500,031 ACCUMULATIVE TOTAL 74,428,411 77,408,564 77,500,031 77,500,031 77,500,031
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-130 2.8 UNDERCUT LEVEL PLAN January 2004 [HUGO SOUTH 10 MTPA BLOCK CAVE MINE UNDERCUT LEVEL MAP] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-131 2.9 EXTRACTION LEVEL PLAN January 2004 [HUGO SOUTH 10 MTPA BLOCK CAVE MINE EXTRACTION LEVEL MAP] SRK Consulting Oyu Tolgoi Scoping Study Report Page 2-132 2.10 TRANSFER LEVEL PLAN January 2004 [HUGO SOUTH 10 MTPA BLOCK CAVE MINE TRANSFER LEVEL MAP] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-133 APPENDIX 3 HUGO SOUTH DEPOSIT 5MT/A SUB LEVEL CAVE MINE 3.1 MINE INFRASTRUCTURE The mine will be accessed by a single 6m x 6m, 4,480m long decline from surface. Associated with this decline is a 3.0m diameter ventilation raise, which will service the return air requirements of the decline during development. The decline will also carry a considerable proportion of the underground service needs. In addition, a vertical hoisting shaft will extend from surface to the shaft station at 640 RL (525m below surface). The shaft will be fitted with a brattice wall and will be used for both intake and return air requirements. Mining will take place between 775 RL and 525 RL. A single crusher at the base of the deposit will crush the ore before it is loaded onto a transfer conveyor belt on 520 RL. It will then be conveyed to bins near the shaft, transferred by short conveyor to loading flasks at the 640 RL shaft station, and hoisted to surface. 3.1.1 SHAFT, HEADGEAR AND WINDING PLANT The mine will have two primary access systems for both options: - Main hoisting shaft with a bratticed upcast segment - Access decline. MAIN HOISTING SHAFT The design parameters, detailed in Table 38 below, pertain to the main hoisting shaft. TABLE 38: SHAFT DESCRIPTION
ITEM DESCRIPTION ---- ----------- Type Circular Vertical Bratticed Diameter 8.5m finished Downcast segment area 30.37 m(2) Upcast segment area 23.8 m(2) Lining 150mm 30 MPa concrete Cast in items Bunton and nut boxes Brattice wall 300mm concrete panels Depth 675m (Collar to bottom) Furnishings Steel equipped buntons-5m spacing Guides Top hat steel section Stations/outlets 775RL double sided 640RL double sided 590RL double sided 1105RL perch water ring Station support Wire mesh and lace 300m(2) Station safety devices Farm gates on each compartment Loading boxes 1 set
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-134 The shaft configurations are shown diagrammatically in the Appendices 3.1 to 3.4. HEADGEAR The headgear has not been subjected to detailed design evaluation. The headgear design parameters are shown in Table 39 below. TABLE 39: HEADGEAR DESCRIPTION
ITEM DESCRIPTION ---- ----------- Type Reinforced concrete Finish Raw concrete Compartments 6 including brattice Height +/- 76m Housing 1 Winder Duty Permanent and sinking duty
The headgear will be constructed prior to and used for the sinking operation. WINDING PLANT SRK undertook a preliminary design of permanent hoisting equipment. The rock winding plant and service winding plant design parameters are shown in Table 40 and Table 41 respectively. TABLE 40: ROCK WINDING PLANT
ITEM DESCRIPTION ---- ----------- Type Multi-rope Koepe Number of winders 1 x Koepe Number of ropes/winder 4 head, 4 tail Deflection sheaves/winder 4 Tail condition Open Loop Rope size 42 mm Installed power 3700 kW Motor type AC Squirrel Cage Drives Frequency Converters Speed of wind 15 m/s Duty 20 h/day Performance 5.9 Mt/a Payload capacity (per skip) 25,000 kg
TABLE 41: SERVICE WINDING PLANT
ITEM DESCRIPTION ---- ----------- Type Double drum Number of winders 1 Number of ropes/winder 2 Deflection sheaves/winder 2 Rope size 30mm Installed power 655 kW Motor type DC Drives Ward Leonard Speed of wind 10 m/s Duty 20 h/day Capacity of conveyance 18 people per deck 2 decks, two conveyances
Three winders will be used during the sinking of the shaft. It is likely that one of the winders would be used to assist and expedite equipping operations. The shaft construction schedules are given in Appendices 3.1 to 3.4. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-135 3.1.2 SHAFT SINKING PROCEDURE Details concerning the sinking procedure for the main vertical shaft during the various phases of shaft sinking and construction follow: SINKING PHASE The following equipment is needed for the sinking phase: - A Koepe winder, with the rope wound onto the drum, and with a kibble attached to the rope - A service winder, with a single rope on one drum, with a kibble attached to the rope - A stage winder, with a five or six deck stage attached to the ropes, which are reeved to achieve a six or eight rope configuration - The required ventilation, cementation, electrical, air and water services in the shaft. The stage winder may have various configurations depending on their availability: - The stage winder may be a two-rope friction type winder with ropes reeved to form three or four falls per rope - The stage winder may be a slow speed double drum winder with ropes reeved to form three or four falls per rope - The stage winder may be a four-drum slow speed winder with each rope reeved into two falls. In many cases in South Africa, the two-drum stage winder is used and it is not removed after sinking. The winder is then used for easy and quick re-reeving of the replacement ropes on the Koepe winders. A schematic representation of the shaft, showing the plan in the sinking phase is shown in Appendix 3.1. EQUIPPING PHASE The following equipment is needed for the equipping phase: - A Koepe winder, with the rope wound onto the drum, and with a kibble attached to the rope. - A service winder, with a single rope on one drum, with a kibble attached to the rope. - A stage winder with a five or six deck stage (modified to allow the installation of the brattice wall) attached to the ropes, which are reeved to achieve a six or eight rope configuration. - The required ventilation, cementation, electrical, air and water services in the shaft. A schematic representation of the shaft, showing the plan, in the equipping phase is shown in Appendix 3.2. PERMANENT CONFIGURATION A schematic representation of the shaft in the permanent configuration is shown in the Appendices, ie. the plan cross-section in Appendix 3.3 and the vertical section in Appendix 3.4. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-136 3.1.3 DEWATERING FACILITIES Mine dewatering designs have been based on assumed water usage and inflow figures, shown in Table 42. TABLE 42: SLC WATER CONSUMPTION
WATER CONSUMPTION EQUIPMENT TYPE PRODUCTION l/s DEVELOPMENT l/s TOTAL l/s ---------------------------------- -------------- --------------- --------- Underground seepage water 12.5 3.2 15.7 Wetting down of draw points 7.0 1.7 8.7 Ore Drive jumbo 0 2.7 2.7 Development jumbo 0 3.6 3.6 Longhole production drill 2.7 0 2.7 Shotcrete Normet Spraymec 0 0.5 0.5 Conveyor sprayers 0.1 0 0.1 Dust suppression at loading points 1.3 0 1.3 Raiseborer (make-up) 0.1 0 0.1 Raiseborer (make-up) 0.05 0 0.05 TOTAL 23.7 11.7 35.45
During development, temporary pump stations will be established in the decline at intervals of approximately 200m of decline development (approximately 28m vertically). Vertical spindle rubber lined dewatering pumps will be placed on standard frames and will be set in a small sump established adjacent to the decline and immediately downstream of a grit trap. The road gradient will ensure that any water made in the decline will report to this grit trap that can be cleaned by an load-haul-dump unit (LHD). A maximum of three such installations will be placed in series. Thereafter, and at intervals of approximately 600m (84 m vertically), positive displacement dirty water pump installations will be established and will be `leapfrogged' down to the bottom of the decline. Three vertical spindle pumps will be needed as three-stage sump pumping is required to overcome the 84 m between temporary pump stations. Two positive displacement pumps will be used. Once the second installation has been commissioned, it will be possible to establish a by-pass around the first and remove this for use on the next move. The design parameters pertaining to the pumps required are listed below in Table 43. TABLE 43: PUMP SPECIFICATIONS
ITEM SPECIFICATIONS --------------- ---------------------------------- Type of pump Positive displacement, dirty water Duty required 18 l/s @ 675m head Number of pumps 2 plus 1 spare Type of pump Vertical spindle, dirty water Duty required 28m head, 18 l/s Number of pumps 3 plus 1 spare
150mm pressure rated pipe will be used for the positive displacement pipe system, while 16 bar rated pipe will be sufficient for the vertical spindle pump system. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-137 Once the decline has reached the bottom level, a permanent pump station will be established (at the bottom of the conveyor incline on 520 RL) to discharge all of the mines' dirty water through a 200mm pressure rated column installed up the conveyor incline and the main shaft to the surface plant. The pump station will have two (one working, one spare) 60 l/s high lift, clear water pumps, fed from a 3m diameter high rate settler. The positive displacement pumps and their column, used for the decline development, will be used to pump the mud to surface. The dewatering reticulation is illustrated in Appendix 3.5. A drainage system has been placed on each working level to facilitate the dewatering of the cross-cuts and haulages. Levels 775 RL, 750 RL and 725 RL have been equipped with 100 NB galvanised piping in all cross-cuts and a spindle pump to pump the drain water to drain holes provided in the main haulages. A system of drain holes from 775 RL to the dirty water dam at the pump station has been included. There is a single drain hole between 775 RL and 750 RL. There are two drain holes per level, between 750 RL and 550 RL. On 550 RL the drain water is pumped to the single drain hole between 550 RL and the dirty water dam of the main pump station. 3.1.4 SERVICE WATER FACILITIES The service water supply pressure is assumed to be 6 to 10 bar. The requirement for water will be, on average, 20 litres per second. At peak, the water requirements will be 31 litres per second, based on machine water and wetting down requirements underground. A 150mm diameter, 6mm thick galvanised steel pipe will be installed in the whole length at the decline. The supply pressure will then be reduced by passing the water through a 150 NB ratio valve as required to keep the service water pressure between 6 and 10 bar at all times. At each intersection with a working level (775 RL to 520 RL), the column will tee off to service the production on the level and reduce to 100mm columns running north and south. 3.1.5 ELECTRICAL RETICULATION An underground supply voltage of 11 kV was chosen for the purpose of this study. It should be noted; this may change during more detailed work, including consideration of the optimal supply voltage which will be made available at the mine site. The main supply voltage must be transformed to 11 kV for the underground reticulation. Provision has been made for the transformers required to do this in the surface power reticulation analysis. To meet underground mining demands, the supply will need to be of 5.6 MVA capacity, excluding any spare capacity that may be required. A temporary substation will be established in the decline after every 600m of decline development (approximately 84 m vertically). Two 1250 kVA (1000 V) transformers will supply the power to the mining equipment, the temporary pump station and ventilation equipment. A 240 V lighting transformer will be installed to supply lighting to the area. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-138 Two 300m lengths of 185 mm(2) HT cable are needed for each of the seven temporary substations. LT cable will be supplied to move the equipment down the ramp to the next temporary substation. When the decline ramp intersects 750 RL a permanent substation will be established to supply transformers on 775 RL, 750 RL and 725 RL. Each level will be equipped with one or two 1250 kVA (1000 V) transformers to supply the mining, pumping and ventilation equipment. A 240 V lighting transformer will be installed to supply lighting to the area. Two more permanent substations will be housed on 675 RL and 600 RL. The switchgear from the 750 RL substation can be used for the 600 RL substation when the top areas are mined out. The 600 RL substation will require additional switchgear for a supply to the two main pumps and two 630 kVA (1000 V) transformers for the crusher and the mud pumps. Additional switchgear is needed at the 600 RL substation to facilitate a ring feed between the decline and the main shaft. In the main shaft, a 315 kVA (1000 V) transformer will be located at 775 RL to supply the station lighting and ventilation needs. At 640 RL a substation will be established with a 1250 kVA transformer for the conveyor drive, belt level and shaft bottom supply. Once the decline, the main shaft and the conveyor incline are all linked and holed through, a ring feed can be established between the substation at 600RL (bottom of the decline) and 640 RL (lowest working level of the main shaft). The reticulation requires two 185 mm(2) HT feeder cables from surface. One feeder cable will be located in the main shaft and carry through (via the conveyor decline) to the decline substation on 525 RL, while the other feeder will be located in the decline. The main surface substation will supply: - The No.1 and No.2 underground feeder cables - The rock winder - The service winder - The No.1 and No.2 ventilation fans - The decline raisebore primary ventilation fan The surface lighting and shaft heating requirements are not included here for calculating the main surface substation requirements for underground power reticulation, but have been included in the surface power reticulation analysis. The electrical reticulation is illustrated in Appendix 3.6. 3.1.6 COMPRESSED AIR As most of the equipment will be electro-hydraulic, there is minimal need for compressed air. Therefore, compressed air will be supplied where needed by portable compressors underground. The compressors have been considered in the capital estimate. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-139 Provision has been made for a portable compressor at the skip loading transfer area to provide air for the operation of the loading flasks. Alternately, electrically actuated cylinders may be used, but this is not recommended if any water is made in the shaft. Clean air is also required for refuge bays and would need to be supplied from surface to avoid contamination in the case of a fire. An alternative would be to use oxygen candles or compressed air cylinders underground. The latter options are favoured in order to avoid installing a compressed air column from surface and having to run an additional compressor on surface. If a subsequent risk assessment requires clean air from surface into the refuge bays, allowance must be made to install a compressor on surface and columns in the main shaft. This will have no material effect on the design of the shaft support steelwork. 3.1.7 POTABLE WATER The potable water supply will be installed in the decline. The supply will include a 25 mm column down the full length of the decline. Ratio valves will be installed at intervals to control the pressure at the taps situated on each level intersected by the decline. 3.1.8 COMMUNICATION SYSTEMS A 50-line telephone exchange will be installed for underground communication. Two telephones will be installed on each operating level and at strategic points such as the pump stations, the shaft loading boxes and belt level and at shaft bottom. Telephones will also be provided in the winder houses and on the bank. A SCADA system for underground monitoring and recording has been considered in the capital expenditure. A leaky feeder system in the decline and on the working levels will allow radio communication underground and from underground to surface. 3.1.9 UNDERGROUND WORKSHOPS Underground workshops will be equipped with fuel tanks, refuelling bays, cleaning bays, cranage, tyre stores, tyre changing facilities, store facilities, together with all other tools required. A fuel supply pipe from the surface will also be included. Single bay workshops are provided for minor repairs and services. The bay will be equipped with cranage, refuelling, and tyre changing and store facilities. Any other tools required will be provided. A single workshop will be situated on the transfer level (550 RL), while a service bay will be situated at 750 RL and 675 RL for minor services. 3.1.10 VENTILATION REQUIREMENTS The following factors were taken into consideration in terms of the air requirements for the mine: - Air requirements for diesel powered equipment and where applicable electrically powered mobile equipment January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-140 - Air requirements for ventilating conveyors, crushers, workshops and other commitments - Allowance for air leakage. AIR REQUIREMENTS FOR MOBILE DIESEL POWERED EQUIPMENT The air requirements for diesel powered mobile equipment are based on 0.06 m(3)/s/kW of rated power for equipment at point of use, as well as likely equipment utilisation assumptions. A schedule of diesel powered equipment and anticipated utilisation is provided in Table 44. TABLE 44: DIESEL EQUIPMENT DIESEL EQUIPMENT - DECLINE DEVELOPMENT
PERCENT kW RATED NO. TOTAL kW UTILISED ACTUAL kW -------- --- -------- -------- --------- LHDs 270 1 270 100 270 Trucks 55t. Cat+ AD55 485 2 970 100 970 TOTAL kW 1240 Total kW x 0.06 m(2)/s/kW = Air quantity required m(3)/s 75
These quantities are commensurate with current good mine design practice worldwide. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-141 TABLE 45: SLC DIESEL AND ELECTRIC MOBILE EQUIPMENT
SHAFT ------------------------------------------------------------------------------------------------------------------------------------ YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ------- ------- -------- -------- -------- -------- -------- -------- ------ STOPING ORE Mt/a 0 0 1.307 5.095 5.543 5.530 5.547 5.524 0.603 JUMBO DEVELOPMENT METRES 15,080 15,232 14,840 9,273 4,487 3,846 0 0 0 TOTAL JUMBO DEVELOPMENT Mt/a 1.081 1.051 0.925 0.568 0.264 0.226 0 0 0 TOTAL ROCK Mt/a 1.081 1.051 2.232 5.663 5.807 5.756 5.547 5.524 0.603 JUMBO DEVELOPMENT CUTS/DAY 14.8 14.9 14.5 9.1 4.4 3.8 0 0 0 DRILLING Development 2 Boom Jumbo 4 3 2 1 0 0 0 0 0 Ore Drive 2 Boom Jumbo 3 3 4 3 2 2 0 0 0 Longhole Drill 0 0 1 2 4 5 5 5 5 MATERIALS HANDLING Production Loader (8m(3) 0 0 2 6 7 7 7 7 1 bucket) Development Loader (8m(3) 3 3 3 2 1 1 0 0 0 bucket) Electric Production Loader 0 0 1 2 2 2 2 2 1 (10m(3)) Truck (55t Articulated) 4 4 4 2 2 2 2 2 2 OTHER Grader 1 2 2 2 1 1 1 1 1 Integrated Tool Carrier 3 3 3 3 3 3 3 3 3 Cable Bolter 1 1 1 1 1 1 1 1 1 Shotcrete Spray Unit 2 2 2 2 1 1 1 1 1 Development Charge Up Unit 3 3 3 2 1 1 0 0 0 Stope Charge Up Unit 0 0 1 1 2 2 2 2 2 LIGHT VEHICLES staff 5 5 7 7 7 7 7 7 7 production 13 13 13 13 13 13 13 13 13 maintenance 8 8 8 8 8 8 8 8 8 NUMBER OF UNITS 50 50 57 57 55 56 52 52 45 DIESEL USAGE kW MOBILE EQUIPMENT 25% 104 Development 2 Boom Jumbo 104 78 52 26 0 0 0 0 0 25% 66 Production 2 Boom Jumbo 50 50 66 50 33 33 0 0 0 25% 42 Longhole Drill 0 0 11 21 42 53 53 53 53 100% 269 Production Loader (8m(3) 0 0 538 1614 1883 1883 1883 1883 269 bucket) 100% 269 Development Loader (8m(3) 807 807 807 538 269 269 0 0 0 bucket) 100% 485 Truck (55t Articulated) 1940 1940 1940 970 970 970 970 970 970 100% 160 Grader 160 320 320 320 160 160 160 160 160 100% 82 Integrated Tool Carrier 246 246 246 246 246 246 246 246 246 25% 115 Cable Bolter 29 29 29 29 29 29 29 29 29 25% 65 Shotcrete Spray Unit 33 33 33 33 16 16 16 16 16 50% 65 Development Charge Up Unit 98 98 98 65 33 33 0 0 0 50% 104 Stope Charge Up Unit 0 0 52 52 104 104 104 104 104 LIGHT VEHICLES 50% 96 staff 240 240 336 336 336 336 336 336 336 50% 96 production 624 624 624 624 624 624 624 624 624 50% 96 maintenance 384 384 384 384 384 384 384 384 384 TOTAL 4763 4897 5591 5364 5184 5195 4857 4857 3236 0.06 M*3 REQUIRED (0.06m*3/s/kW) 286 294 335 322 311 312 291 291 194
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-142 OTHER VENTILATION REQUIREMENTS The ventilation of other service excavations and equipment must be catered for. Additionally, crushers are a major source of dust and contributor of heat to the mine workings. It is advantageous that they be ventilated to the return airway system. In the event that this cannot be done, dust control arrangements such as watering down and the installation of dust suppression sprays must be considered. The power requirements for dust extraction have been included. Provision has been made in the electrical and water reticulation to cater for dust extraction and suppression. An allowance has been made for workshops, refuelling bays, pump stations, crib rooms and the like, which also require ventilation. All mines have leakages of ventilation within the system. These cannot be avoided entirely, but can be minimised. Appropriate design allowances were therefore, included to cater for this and are detailed in Table 46. TABLE 46: SLC TOTAL AIR REQUIREMENTS
TOTAL AIR REQUIREMENTS MAXIMUM (Yr1) -------------------------------------------- ----------------- kW m(3)/s Diesel equipment @ 0.06m(3)/s/kW 5,591 335 Electrical mobile machinery @ 0.03 m(3)/s/kW 315 10 Crushers 20 Commitments (workshops u/g stores etc) 40 Leakage 20% for SLC 76 TOTAL 481
Consequently, fan, excavation and sizes will be based upon 480 m(3)/s. 3.1.11 INTAKE AND RETURN AIRWAY SYSTEMS The primary airway system will consist of: - A single 6m x 6m decline descending at 1:7 from surface to the bottom of the mine. - A single 8.5m diameter vertical shaft with a brattice wall providing a 30.37 m(2) downcast compartment, equipped with rock skips and a service/emergency conveyance and a 23.8 m(2) dedicated upcast compartment. This system will adequately cater for all air requirements, and no other ventilation raises from surface are required. The sizing of the vertical shaft is based on both air and hoisting requirements. Main intakes will be on 775 RL and 640 RL and the returns will be in separate haulages on the same levels connecting into the upcast compartment. Ventilation doors are required to prevent short-circuiting between the intake and return air paths. In order to develop the decline, a single 3.0m diameter raise bored hole will be required. This hole will connect to the decline at regular intervals to serve as a return airway for decline and initial level development. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-143 3.1.12 DEVELOPMENT VENTILATION DECLINE The decline will be developed on a conventional push system using two 1.4m diameter ventilation bags and conventional 110 kW development fans. Once the decline has reached about 1500m it will connect with a 3.0m diameter raise bored hole to surface. This raise bored hole will then become the return airway for all development below the intersection point. Additionally, the upper part of the decline will then down cast with fresh air at a greater volume to allow for additional trucking of broken development rock out of the decline. This process will be repeated until the development of the decline is complete. 90 kW development fans with 15 kW secondary fans for the ventilation of small excavations would be used. Ends that are not actually being worked would have their fans turned off. 3.1.13 VENTILATION FOR STEADY STATE PRODUCTION Raise boreholes for removing used air would be placed at the north and south extremities of the ore body. These raises would connect into the return airway leading to the upcast compartment of the shaft The areas actually being worked would be fed fresh air by means of a large (90 kW) force fan feeding into a layout of ventilation bags. These bags would be equipped with dampers to allow air control into cross-cuts actually being worked and to close off air to cross-cuts that are idle. 3.1.14 CLIMATIC AND GEOTHERMAL CONSIDERATIONS Climate extremes are experienced in this region with winter temperatures averaging around - 15 degrees C and dropping to - 40 degrees C and summer temperatures averaging around +19 degrees C and peaking at around + 40 degrees C. The heating requirements for the mine have been included in the surface power reticulation analysis In addition, the Gobi Desert region experiences severe sand storms and where appropriate, equipment should be protected and maintained accordingly. This has been accounted for in the choice to enclose the head frame and winder arrangement. While no geothermal data was available at the time of this study, consideration of geothermal gradient extremes that may occur has been included. These considerations suggest that even if very high gradients are encountered, these would not be material to the ventilation design at the anticipated depths of mining. However, any consideration of deepening should be accompanied by a more robust review of geothermal gradient followed by a suitable heat flow analysis. 3.1.15 FANS It is proposed that the mine use twin main fans, installed in parallel configuration. The design operating point for each fan will be 240 m(3)/s at 2.5 kPa giving a total air volume of 480 m(3)/s. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-144 DECLINE DEVELOPMENT To maximise the sinking of the decline and adjacent development the 3.0m diameter raise bored hole will be equipped with 2 fans operating in parallel, each fan handling 70 m(3)/s at 1.5 kPa. GENERAL INSTALLATION ARRANGEMENTS A fan drift consisting of a transition bend should be connected to the top of the upcast ventilation segment and then be split into two separate drifts leading to the fans. Self-closing doors at the intake of each fan will allow the operation of a single fan without recirculation. This fan arrangement will allow a steady but economical build-up of ventilation as the mine progresses through the development stages and into production. In order to achieve this, the return airway system should be established as soon as possible. 3.1.16 HEALTH AND SAFETY The purpose of providing ventilation in mechanised operations is to dilute and remove pollutants and to provide a source of fresh respirable air. The principal pollutants present in this operation are diesel exhaust emissions, dust and fumes from blasting and dust from the transfer of rock. Where there is a risk of flammable gas being present, appropriate numbers of flammable gas (methane) detectors should be made available and used as a matter of course. 3.1.17 FIRES, ESCAPE AND RESCUE Inextricably linked to any ventilation planning, are the risks involved in underground fires and the escape and rescue of the workforce. FIRES Underground fires, particularly those involving rubber tyred diesel - powered vehicles, loose tyres or diesel fuel storage facilities are particularly problematic for underground operations. Unless a fire involving rubber tyres or large quantities of diesel fuel can be extinguished completely in a very short space of time, enormous quantities of toxic gases and dense smoke will rapidly fill the workings. Obviously, the first defence is prevention, and this covers maintenance of equipment and the availability of both on-board and static fire fighting apparatus. The issue of storage and dispensing of diesel fuel, lubricants, hydraulic oils and other chemicals, as well as storage and handling procedures for new and used rubber tyres, must be addressed at the detailed design stage. These issues are a priority and are accounted for in the designs presented here. Flammable liquid storage and dispensing should be carried out in accordance with a written code of practice, prepared following a risk assessment. An adequate supply of water and hoses should be readily available to combat tyre fires. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-145 Similar fire risks are attached to conveyor belts and wherever practical excavations containing conveyors should be directly exhausted to the return. However, if this is not practical, then suitable doors to seal off the area in the event of a fire should be incorporated into the design. Fire fighting equipment should be available to cope with any such occurrence. Consideration should also be given to installing fire retardant conveyor belts. ESCAPE AND RESCUE Persons entering the underground workings should be equipped with self-rescuing devices. The provision of self-contained self-rescuers to all persons working in or visiting the underground workings is recommended, as these units permit escape in oxygen deficient atmospheres. The mine should also provide refuge bays equipped with means of supplying respirable air. The refuge bays should be within reach of the workforce, whilst wearing their self-rescuers, under adverse conditions. Underground second means of egress is achieved in both options by having two separate means of access to the lowest workings of the mine; i.e. the decline and the vertical shaft. In addition to the rock winder(s), a service winder will be installed in the main shaft. The provision of a fixed end hoist is important to the efficient operation and maintenance of a Koepe equipped shaft and can contribute significantly to providing much more rapid entry and exit from the mine by personnel. 3.1.18 CAPITAL COST The underground infrastructure costs are divided into the following categories: - Shafts. - Access development. - Ventilation. - Underground Services. - Major Underground Plant. - Mining Equipment. - Surface Services. - Engineering Design, Procurement and Contract Management. The costs for infrastructure access development have been included in the relevant mining sections and any additional development required for the installation of infrastructure (such as pump station excavations) has been priced into the underground services where applicable. The underground services costs include the dewatering arrangements, service water reticulation, electrical reticulation, compressed air supply, communication system, potable water supply and underground workshop requirements. The capital expenditure makes provision for equipping of 15 ends on the top two levels. Details of the capital expenditure for the 5.5Mt/a sub level cave mine are shown in Appendix 3.7. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-146 3.1.19 OPERATING COST The operating costs applied to de-watering, hoisting, crushing, conveying and ventilation include the following: - Electrical power consumption costs (using a rate of 0.014USD per kilowatt hour) - Spare part and replacement part costs - Repair costs - Lubrication costs - Consumable costs - Water treatment costs - Winder inspection and testing costs - Labour costs (using Mongolian labour rates as supplied by IMMI). 3.2 HUGO SOUTH DEPOSIT SUB LEVEL CAVE 3.2.1 METHOD DESCRIPTION The sub level cave (SLC) uses blasting techniques to fragment the mineralised material, while the overlying host rock fractures and caves in under the action of mining induced stresses and gravity. It is a `top down' method, with ore being extracted level by level, working downwards through the ore body. The caved waste rock from the overlying rockmass, fills the void created by ore extraction. Figure 30 is an idealised schematic view of a SLC mine. The ore body is divided into sub levels at regular vertical spacings. A network of production cross-cuts are developed across the full width of the ore body footprint at pre determined horizontal spacings. These cross-cuts connect on one end to a slot drive and on the opposite end to a foot wall (perimeter) drive which in turn connects via an access cross-cut to the main decline. The perimeter drive has a series of cross-cuts leading off it to ore passes. The ore passes terminate on a gathering level where the ore is transferred to the crusher and thereafter, conveyed out of the mine. The mineralised material immediately above each sub level production cross-cut is drilled with long holes in a fan or ring pattern. The drilling is undertaken as a separate operation, and completed well before blasting and loading commences (drill stocks of at least eight to ten rings in each cross-cut is common). Blasting commences on the hanging wall or far end of the ore body and retreats towards the footwall or near side. A slot is blasted first and thereafter, the rings or fans of production holes are fired and loaded out in succession. Ore extraction normally retreats on an approximately straight front, or series of panels each with a straight front, so that adjacent cross-cuts can be operated simultaneously. Production blasting and loading can take place on a number of sub levels simultaneously; provided that each successive level lags behind the level above, by a distance not less than one to two times the vertical difference between the sub levels. SLC depends upon the overlying rock mass being suitable for caving, thereby providing a large amount of broken material immediately above the ore being mined. This broken material acts to provide confinement to each fired ring thus holding the blasted ore in place above the draw point. Blasting the mineralised material, removes the dependency on "natural" fragmentation as the breakage mechanism shared by most other methods of caving. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-147 When the ore is extracted by LHD's from the draw point, it is replaced by the caved material above and behind it (this caved material may also be mineralised). As the ore and the caved material move towards the draw point, some mixing occurs and this mixing determines the grade of the material being drawn at the draw point. The layout design and the operational control need to be directed at maximising as much `clean' ore as possible, i.e. delaying the arrival of the caved material at the draw point, and continuing to draw an economic mixture of ore and caved material for as long as possible. As mining advances downwards, level by level, through the ore body, the interface between the caved and solid rock above will move up toward the surface. As a result, the cave back constantly cracks up and fails providing rock to fill the void made by extraction of the ore. Passive support for the walls of the void created by removal of the ore in SLC operations is provided by the caved overlying material which functions as backfill. If the mine is relatively shallow after sufficient ore is extracted, the cave will propagate through to the surface. After this has occurred, with further ore extraction, the broken material is drawn down, reducing confinement on the upper parts of the cave walls, and causing further failure of the cave walls. This process goes on until the ore body is depleted and the cave limits reach a stable equilibrium. FIGURE 30: TYPICAL SUB LEVEL CAVING LAYOUT [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-148 SLC ADVANTAGES - It is a `top down' mining method which results in early production. - It is a flexible mining method that can address changes in the orebody geometry. Also if low grade or waste zones are encountered, they can be left unmined or only "swell" loaded out leaving the bulk of the lower grade or waste zones behind. - Development, production drilling and loading activities are carried out on separate levels that are independent of each other. Each machine type usually has several work areas available to operate in at any point in time. - Relatively little ore is at risk at any one time (a few hundred to a few thousand tonnes per individual blast ring) i.e. `lost' ore can usually be recovered by `overdraw' on the next level down. 5.5 Mt/a SLC The Hugo South deposit 2% copper grade core is mined using SLC methods to achieve a steady state production of 5.5Mt/a. During the construction and commissioning of the shaft, crusher and conveyor; ore is trucked to surface (a total of 330 kt). Once the shaft, crusher and conveyor are commissioned, 5.5Mt/a is fed through a system of ore passes to the transfer level where it is fed to a central crusher, then conveyed to a loading station and hoisted to surface as shown in Figure 31. FIGURE 31: OVERVIEW OF 5.5 Mt/a SLC [FIGURE] 3.2.2 SLC DESIGN CRITERIA Data used to generate the SLC layout are: - The +2% copper grade shell (derived from the July 18th 2003 block model). - Geotechnical assessment referring to the cavability analysis discussed in Section 1.4 of this report. Basic SLC design parameters applied: - Hydraulic radius for caving: For scoping study design purposes an undercut with a hydraulic radius of 30m has been applied and is considered to be relatively conservative. This equates to a square plan area of 120m by 120m. A rectangular area can be applied but it must meet minimum critical span limitations to avoid the possibility of a stable arch forming. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-149 - Minimum Span for Caving: To determine the minimum critical span it is considered expedient to use the hydraulic radius for the strongest rock type, (which in this case is 34m) and yields a minimum dimension of 91m. To allow an extra margin of safety the minimum undercut dimension applied was not less than 95m. In the pre-feasibility and feasibility studies it will be advisable to check the empirical rule by conducting appropriate numerical modelling to determine the minimum critical span. - Distance between sub levels: 25m. - Distance between cross-cuts (centreline to centreline): 15m. - Perimeter drive stand-off distance from cave edge is 30m. The objective of the SLC design is to extract the ore within the +2% copper ore envelope. The layouts were such that some small tonnages were extracted between the +2% and the 1.5% copper limits. Normally the uppermost level would be the undercut level where caving is initiated. However, due to the narrow width of the orebody at the upper levels (less than the minimum critical span of 95m), a pre-break strategy has been applied on the upper levels. This means that the ore on these pre-break levels is drilled, and blasted, but only swell (40% of ring tonnage) is loaded out. The remainder of the broken ore will be drawn from the level where hydraulic radius for caving is achieved. Caving is initiated in two stages - at the 725 level for the southern portion and at the 675 level for the northern portion. Substantial draw of the high grade broken ore above these levels is then undertaken. However, in practice if the hydraulic radius is less than is estimated then more ore could possible be drawn at an earlier stage. Nine SLC levels in total were generated based on the dimensions of the 2% copper grade shell. SLC levels extend from 775mRL to 575mRL. Refer to Appendix 3.8 for layouts of the SLC production levels. 3.2.3 DILUTION AND RECOVERY NORTH AREA: The extraction strategy is as follows: - Levels 775, 750, 725 and 700 are mined between the 2% copper contour limits. Only the swell is drawn off on these levels (40% of the mining reserves of each respective level). - Caving is initiated at 675 level where the high grade ore zone widens sufficiently to allow the overlying host rock to cave. Overdraw is planned at this level to recover the remaining 60% of broken ore from each of the above levels. The expected recovery at this level is 80% of the mined tonnes at ring grade and the remaining 20% at a fixed diluted copper grade of 0.6%. The 0.6% copper grade shell encloses the central high-grade ore zone. - On the lower production levels (650, 625, 600 and 575), the expected recovery is 70% of the mined tonnes at ring grade and the remaining 30% of mined tonnes at a diluted copper grade of 0.6%. SOUTH AREA: The extraction strategy applied is identical to that applied to the north end; with the exception that caving is initiated at 725 level where the ore widens sufficiently to exceed the minimum span limitations for caving. 3.2.4 MINED TONNAGE ESTIMATE The total mined tonnage estimate is shown in Table 47. Full production of 5.5Mt/a is scheduled in Year 3 when the required number of draw points will be available. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-150 TABLE 47: SUMMARY OF PRODUCTION SCHEDULE
SCHEDULE ITEMS YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 SUMMARY ----------------- ------- ------- --------- --------- --------- --------- --------- --------- ------- ---------- Development (t) 142,943 362,855 602,700 398,135 263,836 226,145 0 0 0 1,996,613 Cukg (%) 2.248 2.392 2.372 2.321 2.314 2.382 0 0 0 2.35 Level Development Aukg (g/t) 0.131 0.157 0.182 0.150 0.148 0.152 0 0 0 0.16 Tonnes CuRec (%) 91.595 91.660 91.591 91.574 91.603 91.735 0 0 0 91.62 AuRec (%) 60.000 59.953 59.932 59.991 59.994 60.000 0 0 0 59.97 NSR ($/t) 26.532 28.383 28.262 27.443 27.354 28.168 0 0 0 27.87 Stope (t) 0 0 1,307,358 5,095,397 5,542,764 5,530,215 5,547,351 5,524,107 602,956 29,150,148 kt 0 0 1,307 5,095 5,543 5,530 5,547 5,524 603 Cukg (%) 0 0 2.20 2.07 2.20 2.10 1.79 1.79 1.88 2.00 Production Tonnes Aukg (g/t) 0 0 0.12 0.13 0.18 0.17 0.12 0.12 0.13 0.14 CuRec (%) 0 0 91.57 91.57 89.08 90.20 91.39 91.51 91.62 90.74 AuRec (%) 0 0 60.00 59.93 59.41 59.72 59.99 60.00 60.00 59.78 NSR ($/t) 0 0 25.91 24.56 26.20 24.98 21.08 21.15 22.22 23.66
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-151 PRODUCTION FORECAST CRITERIA The production forecast is built on the following assumptions: - Year 1 is defined as the start of production. - Shaft, conveyor and crushing installations are completed in the third quarter of Year 1. - Hoisting production requirement is 5.5 Mt/a at full production. This translates to 30 active draw points which each produce 500 t/day. The number of drawpoints required to meet the daily production rate required (approximately 15,000 t/day) is derived by dividing daily tonnage by 500 tonnes. This is an empirical rule for SLC draw point productivity that allows for drilling, clean out, charging, firing, loading, and dealing with hang-ups and oversize. - Each level is mined in sequence, from top to bottom, with the SLC face retreating from slot drive to the perimeter drive (see Figure 32). - In Year 1, the 775 level is mined and ore trucked to surface. The trucking option allows production to begin in the event of delayed completion of the underground crushing and conveying infrastructure. When mining of 750 level commences, the shaft, crusher and conveying infrastructure will be in operation. Ore mined after this point will be hoisted to surface. In year 1 the 750 level is completed and 725 level enters production. - In Year 2, levels 725 and 700 are in production (refer to Table 48). A total of 5.1Mt is scheduled for this year since level 675 is only available in Year 3. - The target of 5.5Mt/a is scheduled in Year 3 and is maintained until Year 7 when the high-grade core of the Hugo South deposit is depleted. - Production drilling parameters are outlined in Table 49. Emulsion blasting is assumed with a total charged length per ring of 120m out of a total drill hole length of 153 m. The schedule includes a 25% allowance for redrilling. - Production drilling, primary production blasting and trucking activities is undertaken by contractors - Production bogging and secondary blasting is undertaken by IMMI. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-152 TABLE 48: SLC PRODUCTION BY LEVEL
TOTAL PRODUCTION PRODUCTION LEVEL YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 TONNES (LEVEL) ----------------------------------------------------------------------------------------------------------------------------------- 775 0 0 329,998 0 0 0 0 0 0 329,998 750 0 0 779,509 0 0 0 0 0 0 779,509 725 0 0 197,851 2,479,402 0 0 0 0 0 2,677,253 700 0 0 0 2,615,995 0 0 0 0 0 2,615,995 675 0 0 0 0 5,542,764 3,345,904 0 0 0 8,888,668 650 0 0 0 0 0 2,184,311 2,681,775 0 0 4,866,086 625 0 0 0 0 0 0 2,865,576 1,500,610 0 4,366,186 600 0 0 0 0 0 0 0 2,894,765 0 2,894,765 575 0 0 0 0 0 0 0 1,128,731 602,956 1,731,687 Total Production Tonnes by Year 1,307,358 5,095,397 5,542,764 5,530,215 5,547,351 5,524,107 602,956 29,150,148
TABLE 49: DRILLING PARAMETERS
Parameters -------------------------------------------------------------- Hole Size 102mm (upholes) Drill metres per ring 153 Drill metres per month 8,000 Average Tonnes per ring 2,500 Estimate of Redrilling required as 25% percentage of total monthly drilling metres
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-153 SLC production drilling and blasting is carried out as follows: - A 5m wide slot is cut over the full width of the "panel" of cross-cuts being blasted from the production level up to the elevation of the level above - Rings or fans of 102mm diameter holes are drilled upwards and inclined forwards (towards the slot side) at 70 to 80 degrees (the latter is generally better). - Holes are charged and fired in accordance to the blast design, one ring at a time. - After each ring is fired the ore is bogged out and the next ring fired - Rings in adjacent cross-cuts forming a "panel" of approximately five cross-cuts are kept in a straight line and fired at the same time. This is to achieve interactive draw between the panel draw points. - Drilling of rings is carried out well in advance of blasting and loading. There should be a minimum of 8 to 10 rings pre-drilled in each cross-cut at any point in time. FIGURE 32: SLC MINING FRONT [FIGURE] 3.2.5 PRIMARY DEVELOPMENT Primary development for this option (as shown in Figure 33 to Figure 35) comprises: - A shaft extending from surface to 490mRL is scheduled for completion in the third quarter of Year 1. This shaft will hoist ore to surface and service the mine both as a primary intake and a primary exhaust due to the dual compartment configuration, as discussed in Section 6.2 of this report. The two main intake levels are at 775mRL and 640mRL. The exhaust level is at 640mRL. Details of the shaft are discussed in Section 6.2 and drawings are presented in Appendix A6.2.1 and A6.2.3. - An ore pass system consisting of seven ore passes extending from varying levels to the transfer level at 560mRL (as illustrated in Figure 33 to Figure 35). The number of ore passes is based on a maximum one-way hauling distance of 200m for a loader from the draw point to the ore pass at a production level. Each orepass is 2.5m in diameter. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-154 - A transfer level at 560mRL (refer to Figure 33 to Figure 35) will be completed in Year 1. This level connects all ore passes and feeds a central crusher unit which delivers ore to the conveyor at 520mRL. - One crusher installation and a conveyor incline (at a length of 640m and at a gradient of 1:5.3) to transport ore from the transfer level to the loading station at the shaft will be completed in Year 1. The underground crusher is located at 520mRL. - Decline development commences from 775mRL (in Year -2) to 520mRL where conveyor incline begins. This length of decline is 2,140m at a gradient of 1:7. An exhaust rise developed to ventilate the decline development extends from 862mRL to 520mRL (a total length of 340m). FIGURE 33: TRANSFER LEVEL DEVELOPMENT [FIGURE] FIGURE 34: 3D PERSPECTIVE OF DEVELOPMENT SCHEDULE [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-155 The development schedule is generated from the following assumptions: - Rate of advance for a single face including shotcrete application (less than three faces available in the immediate vicinity) is 35m/week. This rate is scheduled for the decline, accesses off the decline, conveyor incline and other major single face accesses. - Rate of advance for multiple faces including shotcrete application (greater than four faces available in the immediate vicinity) is 70m/week. This rate is scheduled for developing the ore cross-cuts on the production levels and transfer level development. - When developing a production level to establish ventilation and ore pass accesses, a rate of advance of 55m/wk is applied. This is based on the availability of three faces (on average) due to development of ore cross-cut accesses (at a length of 30m each). - Ore passes, internal ventilation raises and other exhaust raises are developed using raisebore techniques. - The time required to complete a rise with a raisebore is based on: four days to rig up; 20m/day to drill a pilot hole; 6.5m/day to ream the hole; and three days to rig down. - All development is completed by contractors. Development is prioritised as follows: - Complete shaft to develop primary materials handling and ventilation infrastructure. - Decline development to 520mRL in order to commence conveyor incline development. - Establish primary ventilation circuit consisting of internal vent rises and exhaust rises linked to the shaft. - Establish ore pass system to transfer level. Develop transfer level to commence construction and installation of crusher. - Develop all other supporting infrastructure such as workshops and main dewatering station, as well as commence development of production levels (such as ore drive development) to achieve a production rate of 5.5Mt/a shortly after shaft commissioning is complete. FIGURE 35: INFRASTRUCTURE DEVELOPMENT [FIGURE] January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-156 DEVELOPMENT SUMMARY The development required for the SLC option by year and by type is summarised in Table 50. For this scenario, all development metres are capitalised with the exception of ore cross-cuts, slot drives and slots completed on levels 750, 725, 700, 675, 650, 625, 600 and 575. Capitalised development is assumed to be development with a useable life greater than one year. TABLE 50: DEVELOPMENT METRES BY YEAR
DEVELOPMENT PHYSICALS TOTAL YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ----------------------------------------------------------------------------------------------------------------------------------- Total Capital Linear (m) 31,945 14,600 10,191 4,652 2,502 0 0 0 0 0 Total Capital Vertical Linear (m) 2,035 840 1,130 65 0 0 0 0 0 0 Total Capital Lateral Linear (m) 29,910 13,760 9,061 4,587 2,502 0 0 0 0 0 Total Operating Linear (m) 34,420 1,420 6,446 10,750 6,946 4,762 4,096 0 0 0 Total Operating Vertical Linear (m) 1,575 100 275 500 175 275 250 0 0 0 Total Operating Lateral Linear (m) 32,845 1,320 6,171 10,250 6,771 4,487 3,846 0 0 0
3.2.6 MOBILE EQUIPMENT Overall Assumptions: - Equipment purchased new for the project. - Number of units required increased by 14% to account for regular preventative maintenance requirements. - A contractor will supply development equipment. The primary mobile equipment purchased for this option comprises production loaders, transfer level loaders (electric loaders), light vehicles and integrated tool carriers. Other equipment purchased is required for secondary blasting, safety-related purposes (mines rescue vehicle) and supporting equipment (forklifts). The number of loaders required is based on the assumption that: - A diesel production loader (8m(3) bucket) can haul 1Mt/a to an ore pass - A diesel loader (8m(3) bucket) can achieve 0.5 Mt/a from jumbo development - A transfer level electric loader (10m(3) bucket) can haul 3Mt/a to the crusher. As the mine life is seven years (with four years at a production rate of 5.5Mt/a), most primary equipment will need one rebuild. An allowance for new replacement purchases is included in year 3 and 4 as shown in Table 51. TABLE 51: MOBILE EQUIPMENT
YEAR - YEAR - YEAR YEAR YEAR YEAR YEAR YEAR YEAR PURCHASE 2 1 1 2 3 4 5 6 7 ------------------------------------------------------------------------------------------------------------------------ Production Loader (8m(carret)3 bucket) 0 2 4 1 0 2 0 0 0 Electric Production Loader (10m(carret)3) 0 1 1 0 0 1 0 0 0 Integrated Tool Carrier 2 0 0 0 1 0 0 0 0 Light Vehicles 18 2 0 0 8 0 0 0 0 Total 20 5 5 1 9 3 0 0 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-157 HAULAGE TRUCKS: Large (55t payload) diesel articulated low-profile trucks are proposed. Until the production shaft is commissioned all underground production (mullock and ore) will have to be trucked to the surface via the surface to underground decline. ASSUMPTIONS: - A loaded truck can achieve 5km/hr up the decline. - An empty truck can achieve 20km/hr down the decline. - Surface is 1165mRL and all underground production hauled from the midpoint of the orebody i.e. 675mRL. - Maximum decline haulage of 2Mt/a. OTHER EQUIPMENT AND LIGHT VEHICLES: Estimated light vehicles requirements are split into three categories, i.e. staff: including management, geology, geotechnical and survey departments; production: including production drilling, cable bolt rigs, jumbo `nippers', service crew and underground supervision, and Maintenance: including mechanical, electrical and dewatering maintenance. 3.2.7 LABOUR The mine workforce was split into IMMI and contractor personnel as shown in Table 52 and Table 53 respectively. Key assumptions are: - All development activity (i.e. jumbo development, shaft sinking and raisebore ventilation raises), production drilling and primary blasting activities are undertaken by contractor personnel. All other underground activity is undertaken by IMMI personnel. - All senior personnel and skilled underground operators (e.g. longhole drillers, jumbo operators etc.) are expatriates while supporting personnel are Mongolian. The expatriate personnel are on a commute `fly in/fly out' (FIFO) roster. - The staff FIFO roster is nine weeks on-site and five weeks off-site. This requires two personnel for each position i.e. one on-site and one off-site. - The shift work FIFO roster is two months on-site and one month off-site. This requires a three-shift workforce to operate two 12-hour shifts per day with the third shift off-site. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-158 TABLE 52: IMMI PERSONNEL REQUIREMENTS
TOTAL PERSONNEL REQUIRED RAMP-UP STEADY STATE UG SHIFT TOTAL MONGOLIAN UG SHIFT TOTAL ----------------------------------------------------------------------------------------------------------------------------- Shiftwork Total Operators Required (M) Operators Required SENIOR MANAGEMENT (S) PER SHIFT PER SHIFT General manager Manager mining 1 1 1 1 1 Concentrator manager Manager engineering services Manager technical services 1 1 1 1 1 Secretary/clerical staff/data entry S 6 2 6 M 2 6 MINE TECHNICAL SERVICES Senior mining engineer 6 3 6 3 6 Mine planning engineer 4 2 4 2 4 Mine ventilation engineer 2 1 2 1 2 Geotechnical engineer 6 3 6 3 6 Draw control engineer 4 2 4 2 4 Drill and blast engineer 6 3 6 3 6 Mine technical assistants S 9 3 9 M 3 9 Senior geologist 2 1 2 1 2 Mine geologist 10 5 10 5 10 Geological technician S 15 5 15 M 5 15 Senior mine surveyor 2 1 2 1 2 Survey technician S 6 2 6 M 2 6 MINE PRODUCTION Production superintendent 2 0 0 1 2 Development superintendent 1 1 1 1 1 Mine foreman 2 1 2 1 2 Shift boss production 9 3 9 3 9 Store personnel 6 3 6 3 6 - LHD S 27 0 0 9 27 - IT S 3 1 3 1 3 Loss control manager 2 1 2 1 2 Safety officers 4 2 4 2 4 Training Personnel 3 3 3 3 3 Translators/Data Entry 4 2 4 M 2 4 Translators UG S 9 3 9 M 3 9 IT Officers 4 2 4 2 4 - Misc services 3 1 3 1 3 Secondary Breakage S 12 0 0 4 12 MINE MAINTENANCE Maintenance superintendent 2 1 2 1 2 Maintenance planner 8 4 8 4 8 Mechanical supervisor S 6 2 6 2 6 Electrical supervisor S 6 2 6 2 6 Maintenance tradesperson - Electricians S 15 5 15 5 15 - Remote Control Electricians S 9 0 0 3 9 Mechanical tradesperson - Shift Fitters S 6 2 6 2 6 - Pump Fitters S 3 1 3 1 3 - Conv/Crush Fitters S 6 2 6 2 6 - Apprentices/labourers S 9 3 9 3 9 Instrument technician 6 3 6 3 6 TOTAL PERSONNEL ON SITE: EXPECTED NUMBER OF PERSONNEL ON-SITE MONGOLIAN YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ------------------------------------------------------------------------------------------------------------------------------------ (M) SENIOR MANAGEMENT General manager Manager mining 1 1 1 1 1 1 1 1 1 Concentrator manager Manager engineering services Manager technical services 1 1 1 1 1 1 1 1 1 Secretary/clerical staff/data entry M 4 4 4 4 4 4 4 4 4 MINE TECHNICAL SERVICES Senior mining engineer 3 3 3 3 3 3 3 3 3 Mine planning engineer 2 2 2 2 2 2 2 2 2 Mine ventilation engineer 2 2 2 2 2 2 2 2 2 Geotechnical engineer 4 4 4 4 4 4 4 4 4 Draw control engineer 0 0 3 3 3 3 3 3 3 Drill and blast engineer 0 0 3 3 3 3 3 3 3 Mine technical assistants M 6 6 6 6 6 6 6 6 6 Senior geologist 2 2 2 2 2 2 2 2 2 Mine geologist 5 5 5 5 5 5 5 5 2 Geological technician M 10 10 10 10 10 10 10 10 5 Senior mine surveyor 2 2 2 2 2 2 2 2 2 Survey technician M 4 4 4 4 4 4 4 4 4 MINE PRODUCTION Production superintendent 0 0 1 1 1 1 1 1 1 Development superintendent 1 1 1 1 1 1 1 0 0 Mine foreman 2 2 2 2 2 2 2 2 2 Shift boss production 6 6 6 6 6 6 6 6 6 Store personnel 3 3 3 3 3 3 3 3 3 - LHD M 0 0 18 18 18 18 18 18 12 - IT M 2 2 2 2 2 2 2 2 0 Loss control manager 2 2 2 2 2 2 2 2 2 Safety officers 4 4 4 4 4 4 4 4 2 Training Personnel 3 3 3 3 3 3 3 3 3 Translators/Data Entry M 2 2 2 2 2 2 2 2 2 Translators UG M 6 6 6 6 6 6 6 6 6 IT Officers 2 2 2 2 2 2 2 2 2 - Misc services M 2 2 2 2 2 2 2 2 0 Secondary Breakage M 0 0 8 8 8 8 8 8 4 MINE MAINTENANCE Maintenance superintendent 2 2 2 2 2 2 2 2 1 Maintenance planner 4 4 4 4 4 4 4 4 2 Mechanical supervisor 4 4 4 4 4 4 4 4 2 Electrical supervisor 4 4 4 4 4 4 4 4 2 Maintenance tradesperson - Electricians M 10 10 10 10 10 10 10 10 5 - Remote Control Electricians M 0 0 6 6 6 6 6 6 6 Mechanical tradesperson - Shift Fitters M 4 4 4 4 4 4 4 4 4 - Pump Fitters M 2 2 2 2 2 2 2 2 2 - Conv/Crush Fitters M 2 4 4 4 4 4 4 4 4 - Apprentices/labourers M 6 6 6 6 6 6 6 4 4 Instrument technician M 3 3 3 3 3 3 3 3 6 TOTAL PERSONNEL ON SITE: 122 124 163 163 163 163 163 160 127
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-159 TABLE 53: CONTRACTOR PERSONNEL REQUIREMENTS
TOTAL PERSONNEL REQUIRED RAMP-UP STEADY STATE UG SHIFT TOTAL MONGOLIAN UG SHIFT TOTAL SHIFTWORK TOTAL OPERATORS REQUIRED (M) OPERATORS REQUIRED ----------------------------------------------------------------------------------------------------------------------------------- SENIOR MANAGEMENT (S) per shift per shift General manager Project manager mining 2 1 2 1 2 Concentrator manager Manager engineering services Manager technical services 1 1 1 1 1 Secretary/clerical staff/data S 3 1 3 M 1 3 entry MINE TECHNICAL SERVICES Senior mining engineer 2 1 2 1 2 Mine planning engineer 2 1 2 1 2 Mine ventilation engineer Geotechnical engineer 2 1 2 1 2 Draw control engineer Drill and blast engineer 2 1 2 1 2 Mine technical assistants S 3 1 3 M 1 3 Senior geologist Mine geologist Geological technician S 3 1 3 1 3 Senior mine surveyor 1 1 1 1 1 Survey technician S 4 2 2 M 2 4 MINE PRODUCTION Production superintendent 1 1 1 Development superintendent 1 1 1 1 1 Mine foreman 2 1 2 1 2 Shift boss production 6 2 6 2 6 Store personnel 2 1 2 1 2 - Jumbo S 9 7 21 3 9 - Production drill S 15 0 0 5 15 - Development LHD S 3 2 6 1 3 - Truck S 6 4 12 2 6 - Grader S 6 1 3 M 2 6 - IT S 6 2 6 M 2 6 - Cable Bolter S 3 1 3 1 3 - Shotcrete Spray unit S 3 2 6 1 3 - Development Charge up unit S 3 3 9 M 1 3 - Stope Charge up unit S 6 0 0 2 6 - Nippers S 9 4 12 M 3 9 - Service Crew S 18 6 18 M 6 18 Loss control manager 1 1 1 1 1 Safety officers 4 2 4 2 4 Training Personnel 4 2 4 2 4 Translators/Data Entry 2 2 2 M 2 2 Translators UG S 4 2 4 M 2 4 IT Officers 1 1 1 1 1 - Misc services 1 1 1 1 1 Secondary Breakage MINE MAINTENANCE Maintenance superintendent 1 1 1 1 1 Maintenance planner 2 1 2 1 2 Mechanical supervisor S 3 1 3 1 3 Electrical supervisor S 3 1 3 1 3 Maintenance tradesperson - Electricians S 6 2 6 2 6 - Remote Control Electricians S 3 1 13 1 3 Mechanical tradesperson - Shift Fitters S 6 2 6 2 6 - Drill Fitters S 18 5 15 6 18 - Conv/Crush Fitters S 6 1 3 1 3 - Apprentices/labourers S 6 2 6 2 6 Instrument technician Pump fitters S 3 1 3 1 3 --- -- --- -- --- TOTAL PERSONNEL ON SITE: 174 81 207 68 168 MONGOLIAN EXPECTED NUMBER OF PERSONNEL ON-SITE (M) YEAR -2 YEAR -1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ------------------------------------------------------------------------------------------------------------------------------------ SENIOR MANAGEMENT (S) General manager Project manager mining 2 2 2 2 2 2 2 2 2 Concentrator manager Manager engineering services Manager technical services 1 1 1 1 1 1 1 1 1 Secretary/clerical staff/data M 2 2 2 2 2 2 2 2 2 entry MINE TECHNICAL SERVICES Senior mining engineer 1 1 1 1 1 1 1 1 1 Mine planning engineer 1 1 1 1 1 1 1 1 1 Mine ventilation engineer Geotechnical engineer 1 1 1 1 1 1 1 1 1 Draw control engineer Drill and blast engineer 1 1 1 1 1 1 1 1 1 Mine technical assistants M 2 2 2 2 2 2 2 2 2 Senior geologist Mine geologist Geological technician 2 2 2 2 2 2 2 2 2 Senior mine surveyor 1 1 1 1 1 1 1 1 1 Survey technician M 2 2 2 2 2 2 2 2 2 MINE PRODUCTION Production superintendent 1 1 1 1 1 1 1 Development superintendent 1 1 1 1 1 1 1 1 1 Mine foreman 2 2 2 2 2 2 2 2 2 Shift boss production 4 4 4 4 4 4 4 4 2 Store personnel 2 2 2 2 2 2 2 2 2 - Jumbo M 14 14 6 6 6 6 3 0 0 - Production drill M 0 0 10 10 10 10 10 5 2 - Development LHD M 4 4 4 4 4 2 2 1 1 - Truck M 8 8 8 8 6 6 6 3 3 - Grader M 2 2 2 2 2 2 2 2 2 - IT M 4 4 4 4 4 4 4 4 4 - Cable Bolter M 2 2 2 2 2 2 2 2 2 - Shotcrete Spray unit M 4 4 4 4 4 4 4 4 4 - Development Charge up unit M 6 6 6 6 6 6 2 2 2 - Stope Charge up unit M 0 0 4 4 4 4 4 4 4 - Nippers M 8 8 12 12 12 12 12 12 6 - Service Crew M 12 12 12 12 12 12 12 12 6 Loss control manager 1 1 1 1 1 1 1 1 1 Safety officers 2 2 2 2 2 2 2 2 2 Training Personnel 2 2 2 2 2 2 2 2 2 Translators/Data Entry M 2 2 2 2 2 2 2 2 2 Translators UG M 2 2 2 2 2 2 2 2 2 IT Officers 1 1 1 1 1 1 1 1 1 - Misc services M 1 1 1 1 1 1 1 1 1 Secondary Breakage MINE MAINTENANCE Maintenance superintendent 1 1 1 1 1 1 1 1 1 Maintenance planner 2 2 2 2 2 2 2 2 2 Mechanical supervisor 2 2 2 2 2 2 2 2 2 Electrical supervisor 2 2 2 2 2 2 2 2 2 Maintenance tradesperson - Electricians M 4 4 4 4 4 4 4 4 4 - Remote Control Electricians M 0 0 2 2 2 2 2 2 2 Mechanical tradesperson - Shift Fitters M 4 4 4 4 4 4 4 4 4 - Drill Fitters M 16 10 10 10 10 10 10 10 5 - Conv/Crush Fitters M 2 2 2 2 2 2 2 2 2 - Apprentices/labourers M 4 4 4 4 4 4 4 4 4 Instrument technician Pump fitters M 2 2 2 2 2 2 2 2 2 --- --- --- --- --- --- --- --- --- TOTAL PERSONNEL ON SITE: 142 142 113 113 113 113 113 113 113
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-160 3.2.8 MINE VENTILATION During development of the mine, the main intake will be the decline with an exhaust raisebore which extends down to 520 mRL. As the shaft deepens and levels are developed, the other primary intakes enter the circuit (intakes at 775 mRL and 640 mRL) as well as the primary exhaust drives (at 640 mRL). The level accesses deliver air from the decline to the developing production levels (Figure 36). FIGURE 36: VENTILATION FLOW DURING DEVELOPMENT PHASE OF MINE [FIGURE] Once the mine begins production, an internal ventilation rise system exhausts air delivered to the production levels. In total, there are five internal ventilation rises that link the production levels. These rises are located at both the north and south ends of each production level. At the transfer level, these rises connect to a short exhaust rise that feeds the main ventilation return drive at 520 mRL. This drive connects to the exhaust rise (used for developing the decline) which then links to the exhaust drive at 640 mRL which in turn links to the main vertical shaft exhaust compartment (Figure 37). January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-161 FIGURE 37: VENTILATION FLOW DURING PRODUCTION PHASE OF MINE [FIGURE] Ventilation and other mine infrastructure matters for this SLC option are covered in detail in section 6.2 of this report. 3.2.9 MINING COSTS The mining costs were sourced from a combination of: - Indicative Australian underground development contractor costs. - Indicative comparable stoping costs. - Indicative comparable infrastructure costs. - IMMI supplied Mongolian labour rates. The so-called `China Cost Discount Factors' (CCDF's) were estimates of potential cost savings resulting from operating a mine in and around China. The CCDF's used are explained in detail in Section 2.4. The CCDF's were applied to the following cost areas: - Shaft costs, shaft sinking and operating costs. - Fixed capital costs, e.g. primary fans, electrical transformers. - Underground direct costs i.e. jumbo development, longhole production drilling, longhole production charging and trucking and bogging activities. Therefore two sets of cost data were estimated i.e. unadjusted costs with no CCDF's applied and adjusted costs with CCDF's applied. Table 54 and Table 55 provide year by year combinations of operating and capital cost per total ore tonne, with a life of mine average of $7.22/t (unadjusted costs) and $5.17/t (adjusted costs). January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-162 TABLE 54: UNADJUSTED OPERATING COSTS
YEAR YEAR YEAR YEAR YEAR YEAR YEAR OPERATING $/TONNE LOM $/TONNE YEAR -2 YEAR -1 1 2 3 4 5 6 7 ----------------------------------------------------------------------------------------------------------------------------------- Operating $ per Tonne (Stoping Only) $ 7.64 0 0 $13.40 $ 7.20 $ 7.04 $ 6.98 $ 6.85 $ 6.71 $ 9.48 Operating and Capital $ per Stoping Tonne (Incl Contingencies) $ 15.83 0 0 $57.92 $11.17 $ 9.25 $ 9.14 $ 6.86 $ 6.71 $ 9.53 Development Component $ 5.09 0 0 $28.07 $ 3.66 $ 1.61 $ 1.39 $ 0.00 $ 0.00 $ 0.00 Operating $ per Total Ore Tonne $ 7.22 $ 29.89 $ 16.33 $ 9.17 $ 6.68 $ 6.72 $ 6.71 $ 6.85 $ 6.71 $ 9.48 Operating and Capital $ per Total Ore Tonne (Incl Contingencies) $ 14.81 $ 486.84 $ 210.66 $39.64 $10.36 $ 8.83 $ 8.78 $ 6.86 $ 6.71 $ 9.53 Development Component $ 4.77 $ 247.80 $ 113.29 $19.21 $ 3.39 $ 1.54 $ 1.33 0 0 0
TABLE 55: ADJUSTED OPERATING COSTS
YEAR YEAR YEAR YEAR YEAR YEAR YEAR OPERATING $/TONNE LOM $/TONNE YEAR -2 YEAR -1 1 2 3 4 5 6 7 ----------------------------------------------------------------------------------------------------------------------------------- Operating $ per Tonne (Stoping Only) $ 5.52 0 0 $10.89 $ 5.10 $ 4.94 $ 4.88 $ 4.75 $ 4.60 $ 7.38 Operating and Capital $ per Stoping Tonne (Incl Contingencies) $ 11.26 0 0 $45.62 $ 7.40 $ 6.42 $ 6.41 $ 4.75 $ 4.60 $ 7.41 Development Component $ 3.42 0 0 $20.66 $ 2.02 $ 0.89 $ 0.77 $ 0.00 $ 0.00 $ 0.00 Operating $ per Total Ore Tonne $ 5.17 $ 29.89 $ 16.33 $ 7.45 $ 4.73 $ 4.71 $ 4.69 $ 4.75 $ 4.60 $ 7.38 Operating and Capital $ per Total Ore Tonne (Incl Contingencies) $ 10.54 $ 336.95 $ 152.75 $31.22 $ 6.86 $ 6.13 $ 6.16 $ 4.75 $ 4.60 $ 7.41 Development Component $ 3.21 $ 169.48 $ 80.30 $14.14 $ 1.87 $ 0.85 $ 0.74 0 0 0
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-163 Table 56 and Table 57 provide a breakdown of the capital cost estimate by year over the life of the mine. The latter two tables also provide details of the jumbo development contingencies used to account for unscheduled minor items as: - stripping to install equipment such as large secondary fans, jumbo boxes and mono pumps - stockpiles - stripping backs for loading points - and other miscellaneous items. January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-164 TABLE 56: UNADJUSTED CAPITAL COST ESTIMATE
TOTAL ITEM NO. CAPITAL COST ESTIMATE CONT SUM YEAR -2 YEAR -1 YEAR 1 ================================================================================================================== 210 Underground Development Decline 25% $ 6,228,101 $ 5,212,934 $ 1,015,168 0 211 Underground Development Ventilation 25% $ 13,119,627 $ 7,047,631 $ 4,825,868 $ 873,118 212 Underground Development Dewatering 0% $ 751,429 0 0 $ 751,429 213 Underground Development Materials Handling 40% $ 14,250,121 $ 568,260 $11,452,367 $ 2,229,494 214 Underground Development Ancillary 40% $ 10,071,663 $ 1,512,657 $ 2,718,099 $ 5,341,034 217 Sustaining Capital (Stores 25% $ 8,868,088 $ 1,646,369 $ 2,091,695 $ 3,449,147 220 Shaft 10% $ 38,294,567 $19,734,248 $16,055,648 $ 2,504,671 230 Pre-Production and Mining 0% $ 104,055,501 $21,079,031 $21,094,597 $27,501,853 240 Mobile Equipment 5% $ 21,632,681 $ 4,335,874 $ 4,532,049 $ 5,745,223 241 Materials Handling Equipment 5% $ 4,331,660 $ - $ 1,248,765 $ 3,082,895 242 Ancillary Equipment 5% $ 6,426,938 $ 2,058,450 $ 2,230,547 $ 1,971,842 243 Primary Ventilation Fans 5% $ 2,054,888 $ 205,489 $ 1,130,188 $ 719,211 250 Mine Services 25% $ 8,405,582 $ 1,916,931 $ 2,120,088 $ 4,023,982 260 Surface Facilities 0% 0 0 0 0 275 Total Capitalised Operating Cost (3 yrs) $ 27,721,745 $ 4,272,837 $ 5,924,310 $17,524,598 Total Operating Cost $ 222,831,357 $ 4,272,837 $ 5,924,310 $17,524,598 Total Capital Cost $ 238,490,846 $65,317,875 $70,515,078 $58,193,900 TOTAL 461,322,202.32 $69,590,712 $76,439,388 $75,718,497 ITEM NO. CAPITAL COST ESTIMATE YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 =================================================================================================================================== 210 Underground Development Decline 0 0 0 0 0 0 211 Underground Development Ventilation $ 373,009 0 0 0 0 0 212 Underground Development Dewatering 0 0 0 0 0 0 213 Underground Development Materials Handling 0 0 0 0 0 0 214 Underground Development Ancillary $ 499,873 0 0 0 0 0 217 Sustaining Capital (Stores $ 289,070 $ 602,333 $ 775,875 $ 4,533 $ 4,533 $ 4,533 220 Shaft 0 0 0 0 0 0 230 Pre-Production and Mining $17,769,052 $ 8,938,367 $ 7,672,600 0 0 0 240 Mobile Equipment $ 920,799 $ 2,651,862 $ 3,443,304 $ 1,190 $ 1,190 $ 1,190 241 Materials Handling Equipment 0 0 0 0 0 0 242 Ancillary Equipment $ 149,090 $ 17,010 0 0 0 0 243 Primary Ventilation Fans 0 0 0 0 0 0 250 Mine Services $ 231,258 $ 22,664 $ 22,664 $ 22,664 $ 22,664 $ 22,664 260 Surface Facilities 0 0 0 0 0 0 275 Total Capitalised Operating Cost (3 yrs) Total Operating Cost $36,670,848 $39,027,007 $38,622,855 $38,021,876 $37,051,310 $5,715,716 Total Capital Cost $20,232,151 $12,232,237 $11,914,443 $ 28,387 $ 28,387 $ 28,387 TOTAL $56,903,000 $51,259,243 $50,537,298 $38,050,263 $37,079,698 $5,744,103
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-165 TABLE 57: ADJUSTED CAPITAL COST ESTIMATE
TOTAL ITEM NO. CAPITAL COST ESTIMATE CONT SUM YEAR -2 YEAR -1 YEAR 1 ================================================================================================================== 210 Underground Development Decline 25% $ 4,110,547 $ 3,440,536 $ 670,011 0 211 Underground Development Ventilation 25% $ 9,457,474 $ 5,191,032 $ 3,485,029 $ 576,258 212 Underground Development Dewatering 0% $ 901,715 0 0 $ 901,715 213 Underground Development Materials Handling 40% $ 11,674,800 $ 681,912 $ 9,061,502 $ 1,931,386 214 Underground Development Ancillary 40% $ 8,719,759 $ 998,354 $ 1,996,094 $ 5,443,492 217 Sustaining Capital (Stores) 25% $ 8,125,002 $ 1,428,515 $ 1,794,661 $ 3,249,603 220 Shaft 10% $ 21,636,430 $11,149,850 $ 9,071,441 $ 1,415,139 230 Pre-Production and Mining 0% $ 64,970,333 $13,913,799 $13,925,008 $18,155,903 240 Mobile Equipment 5% $ 20,653,988 $ 3,888,665 $ 4,137,727 $ 5,615,583 241 Materials Handling Equipment 5% $ 4,331,660 0 $ 1,248,765 $ 3,082,895 242 Ancillary Equipment 5% $ 4,820,204 $ 1,543,838 $ 1,672,910 $ 1,478,881 243 Primary Ventilation Fans 5% $ 1,541,166 $ 154,117 $ 847,641 $ 539,408 250 Mine Services 25% $ 6,367,941 $ 1,501,453 $ 1,590,066 $ 3,017,987 260 Surface Facilities 0% 0 0 0 0 275 Total Capitalised Operating Cost (3 yrs)$ 24,427,968 $ 4,272,837 $ 5,924,310 $14,230,821 Total Operating Cost $ 160,938,232 $ 4,272,837 $ 5,924,310 $14,230,821 Total Capital Cost $ 167,311,017 $43,892,070 $49,500,855 $45,408,250 TOTAL 328,249,249.04 $48,164,907 $55,425,165 $59,639,071 ITEM NO. CAPITAL COST ESTIMATE YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 =================================================================================================================================== 210 Underground Development Decline 0 0 0 0 0 0 211 Underground Development Ventilation $ 205,155 0 0 0 0 0 212 Underground Development Dewatering 0 0 0 0 0 0 213 Underground Development Materials Handling 0 0 0 0 0 0 214 Underground Development Ancillary $ 281,818 0 0 0 0 0 217 Sustaining Capital (Stores) $ 267,095 $ 600,187 $ 774,742 $ 3,400 $ 3,400 $ 3,400 220 Shaft 0 0 0 0 0 0 230 Pre-Production and Mining $ 9,789,632 $ 4,942,271 $ 4,243,720 0 0 0 240 Mobile Equipment $ 915,031 $ 2,651,299 $ 3,443,006 $ 892 $ 892 $ 892 241 Materials Handling Equipment 0 0 0 0 0 0 242 Ancillary Equipment $ 111,817 $ 12,758 0 0 0 0 243 Primary Ventilation Fans 0 0 0 0 0 0 250 Mine Services $ 173,443 $ 16,998 $ 16,998 $ 16,998 $ 16,998 $ 16,998 260 Surface Facilities 0 0 0 0 0 0 275 Total Capitalised Operating Cost (3 yrs) Total Operating Cost $25,964,438 $27,362,811 $26,973,508 $26,352,253 $25,409,192 $4,448,062 Total Capital Cost $11,743,992 $ 8,223,513 $ 8,478,466 $ 21,290 $ 21,290 $ 21,290 TOTAL $37,708,430 $35,586,324 $35,451,974 $26,373,543 $25,430,483 $4,469,352
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-166 SECTION 3 - APPENDICES 3.1 SHAFT SINKING PHASE January 2004 [PICTURE OF ELEVATION ON STAGE SHOWING SHEAVE CONFIGURATION] [PICTURE OF PLAN ON SINKING SHAFT CONFIGURATION] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-167 3.2 SHAFT EQUIPPING PHASE January 2004 [PICTURE OF ELEVATION ON STAGE] [PICTURE OF PLAN ON EQUIPPING SHAFT CONFIGURATION] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-168 3.3 SHAFT PERMANENT CONDITION January 2004 [PICTURE OF PERMANENT SHAFT CROSS SECTION] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-169 3.4 SHAFT VERTICAL LONG SECTION January 2004 [PICTURE OF VERTICAL SHAFT LONG SECTION] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-170 3.5 DEWATERING RETICULATION January 2004 [PICTURE OF DEWATERING RETICULATION] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-171 3.6 ELECTRICAL RETICULATION January 2004 [PICTURE OF ELECTRICAL RETICULATION] SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-172 3.7 CAPITAL EXPENDITURE January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Appendix 3.7 5Mt/a SUB LEVEL CAVE MINE : CAPITAL EXPENDITURE SCHEDULE
EXPENDITURE IN 6 MONTHLY PERIODS (US$) -------------------------------------------------------- DESCRIPTION 1 2 3 4 5 ------------------------------------------------------- --------- ---------- ---------- ---------- ---------- 1 SHAFTS Site establishment not included in scope of work Headgear construction including winderhouses 975,000 1,392,857 348,214 69,643 Bank and sub-bank development, ducting and construction 375,000 Slow sink & line @ 1 m/day 978,171 978,171 Fast sink & line @ 4 m/day 3,199,950 5,119,920 3,839,940 639,990 Headgear change overs x 2 85,714 85,714 Equip shaft @ 20 m/day with brattice wall 827,457 1,654,914 827,457 827,457 Install signalling & communications 21,429 21,429 Install Koepe winder 2,914,821 2,331,857 291,482 291,482 Install service winder 1,648,300 1,318,640 164,830 164,830 Rope up & install perm. conveyance 21,429 2 stations development and lining 520,000 520,000 Commission shaft 21,429 Belt level development & install equipment 178,571 142,857 35,714 U/G loading box develop and installation 274,286 342,857 68,571 Shaft bottom pump station develop and installation 54,286 67,857 13,571 Shaft spillage handling arrangement installation 62,857 78,571 15,714 Ventilation Raises (for decline ramp) 198,275 141,625 113,300 113,300 TOTAL CATEGORY 1 6,891,293 10,247,208 8,896,700 5,954,269 2,390,274 2 ACCESS DEVELOPMENT not in scope of work TOTAL CATEGORY 2 0 0 0 0 0 3 VENTILATION Ventilation 195,704 97,852 978,518 684,963 TOTAL CATEGORY 3 0 195,704 97,852 978,518 684,963 4 UNDERGROUND SERVICES Dewatering 154,634 154,634 154,634 927,805 Service Water Supply and Reticulation 153,011 51,004 51,004 51,004 51,004 Electrical Power and Reticulation 108,484 108,484 867,873 867,873 Compressed Air Supply not included in scope of work Communication System 27,999 279,993 223,994 Service Excavations and Underground Workshops 1,977,143 Potable Water 5,769 1,923 1,923 1,923 1,923 TOTAL CATEGORY 4 341,413 316,045 316,045 1,200,792 4,049,742 5 MAJOR PLANT not in scope of work TOTAL CATEGORY 5 0 0 0 0 0 6 MINING EQUIPMENT not in scope of work TOTAL CATEGORY 6 0 0 0 0 0 7 SURFACE SERVICES not in scope of work TOTAL CATEGORY 7 0 0 0 0 0 8 ENGINEERING, PROCUREMENT AND CONTRACT MANGEMENT Design and Procure - 7.5% 542,453 806,922 698,295 610,018 534,373 Contract Administration - 7.5% 583,137 867,441 750,667 655,770 574,451 TOTAL CATEGORY 8 1,125,590 1,674,363 1,448,962 1,265,788 1,108,825 TOTAL 8,358,296 12,433,319 10,759,558 9,399,367 8,233,803 CONTINGENCY @ 15 % 1,253,744 1,864,998 1,613,934 1,409,905 1,235,070 GRAND TOTAL 9,612,040 14,298,317 12,373,492 10,809,272 9,468,873 ACCUMULATIVE TOTAL 9,612,040 23,910,357 36,283,849 47,093,120 56,561,993 EXPENDITURE IN 6 MONTHLY PERIODS (US$) ---------------------------------------------------------- DESCRIPTION 6 7 8 9 TOTAL ------------------------------------------------------- ---------- ---------- ---------- ---------- ---------- 1 SHAFTS Site establishment 0 Headgear construction including winderhouses 2,785,714 Bank and sub-bank development, ducting and construction 375,000 Slow sink & line @ 1 m/day 1,956,343 Fast sink & line @ 4 m/day 12,799,800 Headgear change overs x 2 171,429 Equip shaft @ 20 m/day with brattice wall 4,137,286 Install signalling & communications 42,857 Install Koepe winder 5,829,643 Install service winder 3,296,600 Rope up & install perm. conveyance 21,429 2 stations development and lining 1,040,000 Commission shaft 21,429 Belt level development & install equipment 357,143 U/G loading box develop and installation 685,714 Shaft bottom pump station develop and installation 135,714 Shaft spillage handling arrangement installation 157,143 Ventilation Raises (for decline ramp) 566,500 TOTAL CATEGORY 1 0 0 0 0 34,379,743 2 ACCESS DEVELOPMENT not in scope of work 0 TOTAL CATEGORY 2 0 0 0 0 0 3 VENTILATION Ventilation 1,957,036 TOTAL CATEGORY 3 0 0 0 0 1,957,036 4 UNDERGROUND SERVICES Dewatering 1,237,074 463,903 3,092,684 Service Water Supply and Reticulation 51,004 51,004 51,004 510,036 Electrical Power and Reticulation 216,968 2,169,682 Compressed Air Supply 0 Communication System 27,999 559,986 Service Excavations and Underground Workshops 1,581,714 395,429 3,954,286 Potable Water 1,923 1,923 1,923 19,229 TOTAL CATEGORY 4 3,116,682 912,258 52,927 0 10,305,903 5 MAJOR PLANT not in scope of work 0 TOTAL CATEGORY 5 0 0 0 0 0 6 MINING EQUIPMENT not in scope of work 0 TOTAL CATEGORY 6 0 0 0 0 0 7 SURFACE SERVICES not in scope of work 0 TOTAL CATEGORY 7 0 0 0 0 0 8 ENGINEERING, PROCUREMENT AND CONTRACT MANGEMENT Design and Procure - 7.5% 233,751 68,419 3,969 0 3,498,201 Contract Administration - 7.5% 251,282 73,551 4,267 0 3,760,566 TOTAL CATEGORY 8 485,034 141,970 8,237 0 7,258,767 TOTAL 3,601,716 1,054,228 61,163 0 53,901,449 CONTINGENCY @ 15 % 540,257 158,134 9,174 0 8,085,217 GRAND TOTAL 4,141,973 1,212,362 70,338 0 61,986,666 ACCUMULATIVE TOTAL 60,703,966 61,916,328 61,986,666 61,986,666 61,986,666
January 2004 SRK Consulting Oyu Tolgoi Scoping Study Report Page 3-173 3.8 PRODUCTION LEVEL PLANS January 2004 [SRK CONSULTING LOGO] [575 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [600 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [625 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [650 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [675 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [700 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [725 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [750 PRODUCTION LEVEL MAP] [SRK CONSULTING LOGO] [775 PRODUCTION LEVEL MAP] SRK Consulting Oyu Tolgoi Scoping Study Report Page 1 SRK REPORT DISTRIBUTION RECORD Complete this form and include it as the final page for each copy of the report produced. Report No. IV212 Copy No. _____________________
NAME/TITLE COMPANY COPY DATE AUTHORISED BY ---------- ------- ---- ---- ------------- Oyu Tolgoi Scoping Study IMMI - Mr W Hogg 1 Oyu Tolgoi Scoping Study SRK Consulting 2
Approval Signature: _________________________ SRK Consulting grants the client ownership of the Deliverables and the Report and a license to make copies of the Report for the purposes only for which SRK Consulting has provided the client with consulting services. January 2004 [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia APPENDIX C - PRODUCTION FORECASTS [AMECAUSENCO LOGO] OYU TOLGOI PROJECT CASE 2C - PRODUCTION FORECAST SUMMARY
MINING YEAR -2 -1 1 2 3 4 5 6 7 TOTAL 2006 2007 2008 2009 2010 2011 2012 2013 2014 ------------------------------- ------- ---- ------ ------ ------ ------ ------ ------ ------ ------ OPEN PIT Open Pit Ore Total kt 351,756 0 4,539 28,269 22,707 22,365 22,917 27,027 40,502 35,049 MINING NSR $/t 9.89 0.00 6.82 10.25 18.13 7.72 13.39 11.75 5.84 6.78 CuEq% 0.63 0.90 1.41 0.70 1.09 1.03 0.56 0.63 Cu % 0.59 0.00 0.41 0.51 0.62 0.44 0.57 0.73 0.43 0.43 Au g/t 0.44 0.00 0.34 0.60 1.23 0.40 0.82 0.46 0.20 0.31 Rec Cu% 0.52 0.00 0.34 0.44 0.55 0.37 0.50 0.65 0.36 0.36 Rec Au g/t 0.32 0.00 0.22 0.42 0.97 0.27 0.62 0.34 0.12 0.21 Waste kt 534,601 0 42,090 46,785 52,311 52,553 52,077 48,027 34,453 39,992 Total kt 886,357 0 46,629 75,054 75,018 74,919 74,994 75,053 74,955 75,041 HUGO Underground Ore Total kt 0 0 0 0 0 0 0 0 0 0 NORTH NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CuEq% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MINED Mined Ore Total kt 351,756 0 4,539 28,269 22,707 22,365 22,917 27,027 40,502 35,049 TOTAL ORE NSR $/t 9.89 0.00 6.82 10.25 18.13 7.72 13.39 11.75 5.84 6.78 CuEq% 0.63 0.90 1.41 0.70 1.09 1.03 0.56 0.63 Cu % 0.59 0.00 0.41 0.51 0.62 0.44 0.57 0.73 0.43 0.43 Au g/t 0.44 0.00 0.34 0.60 1.23 0.40 0.82 0.46 0.20 0.31 Rec Cu% 0.52 0.00 0.34 0.44 0.55 0.37 0.50 0.65 0.36 0.36 Rec Au g/t 0.32 0.00 0.22 0.42 0.97 0.27 0.62 0.34 0.12 0.21 STOCKPILE Deferred Open Pit kt 132,383 0 4,539 18,782 24,490 29,855 35,772 44,798 67,300 84,349 CLOSING Ore Stockpile NSR $/t 5.74 0.00 6.82 6.51 5.83 5.79 5.74 5.69 5.52 5.56 BALANCE CuEq% 0.55 0.63 0.61 0.55 0.55 0.54 0.54 0.53 0.53 Cu % 0.42 0.00 0.41 0.40 0.38 0.38 0.38 0.38 0.38 0.38 Au g/t 0.20 0.00 0.34 0.33 0.28 0.27 0.26 0.25 0.23 0.23 Rec Cu% 0.36 0.00 0.34 0.33 0.31 0.31 0.31 0.31 0.31 0.31 Rec Au g/t 0.12 0.00 0.22 0.21 0.17 0.17 0.17 0.16 0.14 0.15 Stockpile Reclaim kt 132,383 0.00 0.00 0 0 0 0 0 0 0 PROCESSED Process Feed kt 351,756 0 14,025 17,000 17,000 17,000 18,000 18,000 18,000 ORE NSR $/t 9.89 0.00 14.14 23.01 8.38 16.15 14.89 6.65 7.77 CuEq% 1.19 1.76 0.75 1.29 1.28 0.63 0.70 Cu % 0.59 0.00 0.62 0.74 0.46 0.64 0.90 0.50 0.46 Au g/t 0.44 0.00 0.89 1.61 0.45 1.03 0.59 0.21 0.38 Rec Cu% 0.52 0.00 0.55 0.66 0.39 0.56 0.81 0.42 0.39 Rec Au g/t 0.32 0.00 0.64 1.28 0.30 0.79 0.45 0.13 0.26 CONCENTRATE Concentrate Make Mass Pull % 1.98 0.00 1.94 2.35 1.39 2.00 3.18 1.61 1.38 MAKE kt 6,962 0 272 400 236 340 572 291 248 Con Cu% 26.1 0.0 28.1 28.1 28.1 28.1 25.5 26.2 28.1 Con Au g/t 16.0 0.0 32.7 54.3 22.0 39.7 14.1 8.3 18.8 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 1,817 0.00 77 112 66 95 146 76 70 koz 3,580 0.00 287 698 167 434 260 77 149 MINING 8 9 10 11 12 13 14 15 16 2015 2016 2017 2018 2019 2020 2021 2022 2023 ------------------------------- ------ ------- ------- ------- ------- ------- ------ ------ ------ OPEN PIT Open Pit Ore Total kt 28,383 25,136 31,576 34,620 24,319 4,348 0 0 0 MINING NSR $/t 11.07 12.37 6.85 8.38 11.68 13.63 0.00 0.00 0.00 CuEq% 0.94 1.05 0.65 0.81 1.11 1.30 0.00 0.00 0.00 Cu % 0.53 0.64 0.57 0.72 0.97 1.17 0.00 0.00 0.00 Au g/t 0.65 0.65 0.13 0.14 0.21 0.20 0.00 0.00 0.00 Rec Cu% 0.45 0.57 0.51 0.63 0.87 1.05 0.00 0.00 0.00 Rec Au g/t 0.47 0.48 0.08 0.09 0.13 0.12 0.00 0.00 0.00 Waste kt 46,645 49,811 43,391 19,797 5,930 738 0 0 0 Total kt 75,028 74,947 74,967 54,418 30,249 5,086 0 0 0 HUGO Underground Ore Total kt 0 0 0 0 0 0 0 0 0 NORTH NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CuEq% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MINED Mined Ore Total kt 28,383 25,136 31,576 34,620 24,319 4,348 0 0 0 TOTAL ORE NSR $/t 11.07 12.37 6.85 8.38 11.68 13.63 0.00 0.00 0.00 CuEq% 0.94 1.05 0.65 0.81 1.11 1.30 0.00 0.00 0.00 Cu % 0.53 0.64 0.57 0.72 0.97 1.17 0.00 0.00 0.00 Au g/t 0.65 0.65 0.13 0.14 0.21 0.20 0.00 0.00 0.00 Rec Cu% 0.45 0.57 0.51 0.63 0.87 1.05 0.00 0.00 0.00 Rec Au g/t 0.47 0.48 0.08 0.09 0.13 0.12 0.00 0.00 0.00 STOCKPILE Deferred Open Pit kt 94,732 101,868 113,444 128,064 132,383 116,731 96,731 76,731 56,731 CLOSING Ore Stockpile NSR $/t 5.59 5.62 5.64 5.71 5.74 5.74 5.74 5.74 5.74 BALANCE CuEq% 0.53 0.54 0.54 0.55 0.55 0.55 0.55 0.55 0.55 Cu % 0.38 0.39 0.40 0.42 0.42 0.42 0.42 0.42 0.42 Au g/t 0.23 0.23 0.21 0.20 0.20 0.20 0.20 0.20 0.20 Rec Cu% 0.31 0.32 0.34 0.35 0.36 0.36 0.36 0.36 0.36 Rec Au g/t 0.15 0.14 0.13 0.13 0.12 0.12 0.12 0.12 0.12 Stockpile Reclaim kt 0 0 0 0 0 15,652 20,000 20,000 20,000 PROCESSED Process Feed kt 18,000 18,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 ORE NSR $/t 14.13 14.86 7.48 9.91 12.76 7.46 5.74 5.74 5.74 CuEq% 1.17 1.23 0.71 0.95 1.21 0.71 0.55 0.55 0.55 Cu % 0.61 0.69 0.62 0.84 1.06 0.59 0.42 0.42 0.42 Au g/t 0.87 0.85 0.15 0.16 0.24 0.20 0.20 0.20 0.20 Rec Cu% 0.54 0.62 0.55 0.75 0.95 0.51 0.36 0.36 0.36 Rec Au g/t 0.64 0.64 0.10 0.10 0.15 0.12 0.12 0.12 0.12 CONCENTRATE Concentrate Make Mass Pull % 1.91 2.33 2.25 3.12 3.94 2.01 1.35 1.35 1.35 MAKE kt 343 419 451 624 788 401 270 270 270 Con Cu% 28.1 26.5 24.2 24.1 24.1 25.3 26.4 26.4 26.4 Con Au g/t 33.7 27.4 4.3 3.2 3.7 6.2 9.2 9.2 9.2 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 97 111 109 150 190 101 71 71 71 koz 373 368 63 65 95 80 80 80 80 MINING 17 18 19 20 21 22 23 2024 2025 2026 2027 2028 2029 2030 ------------------------------- ------ ------ ------ ---- ---- ---- ---- OPEN PIT Open Pit Ore Total kt 0 0 0 0 0 0 0 MINING NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CuEq% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Waste kt 0 0 0 0 0 0 0 Total kt 0 0 0 0 0 0 0 HUGO Underground Ore Total kt 0 0 0 0 0 0 0 0 NORTH NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CuEq% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MINED Mined Ore Total kt 0 0 0 0 0 0 0 TOTAL ORE NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CuEq% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 STOCKPILE Deferred Open Pit kt 36,731 16,731 0 0 0 0 0 CLOSING Ore Stockpile NSR $/t 5.74 5.74 0.00 0.00 0.00 0.00 0.00 BALANCE CuEq% 0.55 0.55 0.00 0.00 0.00 0.00 0.00 Cu % 0.42 0.42 0.00 0.00 0.00 0.00 0.00 Au g/t 0.20 0.20 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.36 0.36 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.12 0.12 0.00 0.00 0.00 0.00 0.00 Stockpile Reclaim kt 20,000 20,000 16,731 0 0 0 0 PROCESSED Process Feed kt 20,000 20,000 16,731 0 0 0 0 ORE NSR $/t 5.74 5.74 5.74 0.00 0.00 0.00 0.00 CuEq% 0.55 0.55 0.55 0.00 0.00 0.00 0.00 Cu % 0.42 0.42 0.42 0.00 0.00 0.00 0.00 Au g/t 0.20 0.20 0.20 0.00 0.00 0.00 0.00 Rec Cu% 0.36 0.36 0.36 0.00 0.00 0.00 0.00 Rec Au g/t 0.12 0.12 0.12 0.00 0.00 0.00 0.00 CONCENTRATE Concentrate Make Mass Pull % 1.35 1.35 1.35 0.00 0.00 0.00 0.00 MAKE kt 270 270 226 0 0 0 0 Con Cu% 26.4 26.4 26.4 0.0 0.0 0.0 0.0 Con Au g/t 9.2 9.2 9.2 0.0 0.0 0.0 0.0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 71 71 60 0 0 0 0 koz 80 80 67 0 0 0 0
CASE 4A - PRODUCTION FORECAST SUMMARY
YEAR -2 -1 1 2 3 4 5 TOTAL 2006 2007 2008 2009 2010 2011 2012 --------------------------------------------------------------------------- SW AND Open Pit Ore Total kt 483,796 0 3,120 30,233 22,500 24,232 22,252 25,868 CENTRAL NSR $/t 8.93 0.00 6.49 9.77 17.19 8.49 13.66 10.98 Cu % 0.55 0.00 0.40 0.50 0.60 0.45 0.58 0.63 Au g/t 0.39 0.00 0.33 0.57 1.16 0.46 0.84 0.50 Rec Cu% 0.48 0.00 0.33 0.42 0.53 0.38 0.50 0.56 Rec Au g/t 0.27 0.00 0.21 0.39 0.92 0.32 0.64 0.36 Waste kt 626,688 0 39,776 44,675 52,559 50,718 52,714 49,224 Total kt 1,110,484 0 42,896 74,908 75,059 74,950 74,966 75,092 HUGO Open Pit Ore Total kt 378,372 0 0 9 290 1,871 10,592 27,084 SOUTH NSR $/t 11.62 0.00 0.00 3.27 3.12 3.35 3.93 7.16 Cu % 0.97 0.00 0.00 0.28 0.27 0.28 0.34 0.61 Au g/t 0.05 0.00 0.00 0.01 0.02 0.02 0.02 0.03 Rec Cu% 0.88 0.00 0.00 0.24 0.23 0.25 0.30 0.54 Rec Au g/t 0.02 0.00 0.00 0.01 0.01 0.01 0.01 0.02 Waste kt 1,780,374 0 0 33,728 65,656 97,871 89,408 72,852 Total kt 2,158,746 0 0 33,737 65,946 99,742 100,000 99,937 HUGO Underground Ore Total kt 176,539 0 0 0 0 486 1,631 6,384 NORTH NSR $/t 25.75 0.00 0.00 0.00 0.00 25.76 28.44 29.39 Cu % 1.99 0.00 0.00 0.00 0.00 1.99 2.19 2.26 Au g/t 0.35 0.00 0.00 0.00 0.00 0.35 0.40 0.41 Rec Cu% 1.83 0.00 0.00 0.00 0.00 1.83 2.01 2.08 Rec Au g/t 0.21 0.00 0.00 0.00 0.00 0.21 0.24 0.25 OPEN PIT Open Pit Total kt 1,038,707 0 3,120 30,242 22,789 26,589 34,475 59,337 TOTAL NSR $/t 12.77 0.00 6.49 9.77 17.01 8.45 11.37 11.22 Cu % 0.95 0.00 0.40 0.50 0.60 0.47 0.58 0.80 Au g/t 0.26 0.00 0.33 0.57 1.15 0.43 0.57 0.27 Rec Cu% 0.85 0.00 0.33 0.42 0.53 0.40 0.51 0.71 Rec Au g/t 0.17 0.00 0.21 0.39 0.90 0.30 0.43 0.19 Waste kt 2,407,062 0 39,776 78,403 118,215 148,589 142,121 122,076 Total kt 3,269,230 0 42,896 108,645 141,004 174,692 174,966 175,029 STOCKPILE Deferred Open Pit kt 310,156 0 3,120 19,337 25,126 34,715 52,191 73,528 CLOSING Ore Stockpile NSR $/t 5.33 0.00 6.49 6.46 5.60 4.85 4.59 4.40 BALANCE Cu % 0.41 0.00 0.40 0.40 0.37 0.34 0.33 0.33 Au g/t 0.15 0.00 0.33 0.32 0.26 0.20 0.16 0.14 Rec Cu% 0.34 0.00 0.33 0.33 0.30 0.27 0.27 0.27 Rec Au g/t 0.10 0.00 0.21 0.20 0.16 0.13 0.10 0.08 Stockpile Reclaim kt 130,420 0.00 0.00 0 0 0 0 0 PROCESSED Process Feed kt 1,038,707 0 0 14,025 17,000 17,000 17,000 38,000 ORE NSR $/t 12.77 0.00 0.00 13.60 21.87 11.59 18.89 15.31 Cu % 0.95 0.00 0.00 0.61 0.72 0.59 0.84 1.06 Au g/t 0.26 0.00 0.00 0.85 1.52 0.64 1.07 0.38 Rec Cu% 0.85 0.00 0.00 0.53 0.64 0.51 0.75 0.96 Rec Au g/t 0.17 0.00 0.00 0.60 1.20 0.45 0.82 0.28 CONCENTRATE Concentrate Make Mass Pull % 2.89 0.00 0.00 1.89 2.28 1.80 2.62 3.31 MAKE kt 30,070 0 0 265 388 305 446 1,260 Con Cu% 29.4 0.0 0.0 28.1 28.1 28.3 28.8 29.0 Con Au g/t 5.9 0.0 0.0 32.1 52.7 25.2 31.2 8.3 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 8,844 0.00 0.00 74 109 87 128 368 koz 5,713 0.00 0.00 273 657 247 446 338 6 7 8 9 10 11 12 13 2013 2014 2015 2016 2017 2018 2019 2020 ----------------------------------------------------------------------------- SW AND Open Pit Ore Total kt 43,993 38,904 29,160 24,598 31,669 37,204 26,019 45,605 CENTRAL NSR $/t 6.25 6.56 10.82 12.47 6.66 8.22 11.31 7.21 Cu % 0.49 0.42 0.52 0.64 0.56 0.70 0.94 0.54 Au g/t 0.18 0.30 0.63 0.66 0.13 0.14 0.21 0.21 Rec Cu% 0.41 0.35 0.45 0.56 0.49 0.62 0.84 0.46 Rec Au g/t 0.11 0.19 0.46 0.49 0.08 0.08 0.13 0.13 Waste kt 30,919 36,179 45,822 50,455 43,331 37,787 49,068 29,337 Total kt 74,912 75,083 74,982 75,053 74,999 74,992 75,087 74,942 HUGO Open Pit Ore Total kt 14,430 8,201 2,259 15,645 15,703 16,057 16,800 12,423 SOUTH NSR $/t 10.31 10.59 3.87 9.17 11.32 12.66 13.84 12.32 Cu % 0.87 0.89 0.31 0.77 0.95 1.07 1.16 1.02 Au g/t 0.03 0.04 0.05 0.03 0.04 0.04 0.04 0.06 Rec Cu% 0.78 0.80 0.28 0.69 0.86 0.96 1.05 0.93 Rec Au g/t 0.02 0.02 0.03 0.02 0.02 0.02 0.02 0.04 ----------------------------------------------------------------------------- Waste kt 85,518 91,753 97,717 84,210 84,312 83,870 83,194 87,634 Total kt 99,948 99,954 99,975 99,855 100,015 99,927 99,993 100,057 ----------------------------------------------------------------------------- HUGO Underground Ore Total kt 9,954 12,330 12,609 12,641 12,597 12,000 12,195 13,294 NORTH NSR $/t 31.78 31.15 26.15 23.39 25.33 28.99 30.46 29.88 Cu % 2.40 2.34 1.97 1.82 1.93 2.19 2.29 2.27 Au g/t 0.52 0.54 0.44 0.31 0.40 0.47 0.51 0.46 Rec Cu% 2.21 2.15 1.81 1.67 1.77 2.01 2.11 2.09 Rec Au g/t 0.31 0.32 0.27 0.18 0.24 0.28 0.31 0.28 OPEN PIT Open Pit Total kt 68,377 59,435 44,028 52,884 59,969 65,262 55,014 71,322 TOTAL NSR $/t 10.83 12.22 14.85 14.10 11.80 13.14 16.33 12.32 Cu % 0.85 0.88 0.92 0.96 0.95 1.07 1.31 0.95 Au g/t 0.20 0.31 0.55 0.39 0.16 0.18 0.23 0.23 Rec Cu% 0.75 0.78 0.83 0.87 0.86 0.96 1.18 0.85 Rec Au g/t 0.12 0.20 0.38 0.28 0.10 0.11 0.14 0.14 Waste kt 116,437 127,932 143,538 134,665 127,643 121,657 132,262 116,971 Total kt 174,860 175,037 174,958 174,909 175,014 174,919 175,081 174,999 STOCKPILE Deferred Open Pit kt 103,904 125,340 131,368 144,252 164,221 189,482 204,496 235,818 CLOSING Ore Stockpile NSR $/t 4.44 4.48 4.48 4.51 4.56 4.81 4.94 4.98 BALANCE Cu % 0.33 0.34 0.33 0.34 0.35 0.38 0.39 0.39 Au g/t 0.14 0.15 0.15 0.14 0.13 0.13 0.13 0.13 Rec Cu% 0.27 0.28 0.27 0.28 0.29 0.32 0.33 0.33 Rec Au g/t 0.09 0.09 0.09 0.09 0.08 0.08 0.08 0.08 Stockpile Reclaim kt 0 0 0 0 0 0 0 0 PROCESSED Process Feed kt 38,000 38,000 38,000 40,000 40,000 40,000 40,000 40,000 ORE NSR $/t 15.85 16.46 16.51 17.10 15.22 17.39 19.99 17.82 Cu % 1.25 1.18 1.02 1.14 1.20 1.39 1.59 1.38 Au g/t 0.23 0.39 0.61 0.48 0.20 0.22 0.27 0.27 Rec Cu% 1.13 1.07 0.92 1.04 1.09 1.27 1.45 1.26 Rec Au g/t 0.14 0.25 0.42 0.35 0.12 0.13 0.17 0.17 CONCENTRATE Concentrate Make Mass Pull % 3.88 3.54 3.09 3.53 3.73 4.43 5.09 4.26 MAKE kt 1,475 1,346 1,172 1,410 1,492 1,774 2,036 1,704 Con Cu% 29.1 30.1 29.7 29.4 29.3 28.6 28.4 29.5 Con Au g/t 3.6 7.1 13.8 9.9 3.3 3.0 3.3 4.0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 429 405 348 414 437 507 579 503 koz 173 307 518 447 160 172 215 218 14 15 16 17 18 19 20 21 2021 2022 2023 2024 2025 2026 2027 2028 ----------------------------------------------------------------------------- SW AND Open Pit Ore Total kt 50,502 25,140 2,797 0 0 0 0 0 CENTRAL NSR $/t 5.70 6.88 8.02 0.00 0.00 0.00 0.00 0.00 Cu % 0.46 0.43 0.47 0.00 0.00 0.00 0.00 0.00 Au g/t 0.26 0.33 0.41 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.39 0.36 0.40 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.16 0.21 0.27 0.00 0.00 0.00 0.00 0.00 Waste kt 11,855 1,056 1,213 0 0 0 0 0 Total kt 62,357 26,196 4,010 0 0 0 0 0 HUGO Open Pit Ore Total kt 26,413 27,315 21,474 13,762 9,008 12,643 37,330 36,262 SOUTH NSR $/t 13.74 20.05 18.57 7.54 4.12 5.38 8.82 11.95 Cu % 1.14 1.66 1.54 0.63 0.34 0.45 0.74 1.00 Au g/t 0.06 0.10 0.08 0.04 0.04 0.04 0.04 0.05 Rec Cu% 1.04 1.51 1.41 0.57 0.30 0.40 0.66 0.90 Rec Au g/t 0.01 0.02 0.05 0.03 0.02 0.02 0.00 0.03 ----------------------------------------------------------------------------- Waste kt 86,225 121,534 149,381 117,135 100,679 72,825 53,485 17,117 Total kt 112,538 148,848 170,855 130,897 109,687 85,469 90,815 53,379 ----------------------------------------------------------------------------- HUGO Underground Ore Total kt 12,535 12,434 12,413 12,198 8,134 5,474 4,616 2,614 NORTH NSR $/t 28.24 26.67 21.33 17.21 14.36 16.40 23.27 23.99 Cu % 2.19 2.08 1.71 1.41 1.19 1.35 1.90 1.96 Au g/t 0.36 0.33 0.19 0.12 0.08 0.12 0.15 0.16 Rec Cu% 2.02 1.91 1.57 1.28 1.08 1.22 1.74 1.79 Rec Au g/t 0.21 0.20 0.12 0.07 0.05 0.07 0.09 0.09 OPEN PIT Open Pit Total kt 89,450 64,888 36,683 25,980 17,142 18,117 41,946 38,876 TOTAL NSR $/t 11.80 16.21 18.70 12.08 8.98 8.71 10.41 12.76 Cu % 0.90 1.26 1.52 1.00 0.75 0.72 0.87 1.06 Au g/t 0.21 0.23 0.15 0.08 0.06 0.06 0.05 0.06 Rec Cu% 0.81 1.14 1.38 0.90 0.67 0.65 0.78 0.96 Rec Au g/t 0.12 0.13 0.09 0.05 0.03 0.04 0.01 0.03 Waste kt 98,080 122,590 150,594 117,135 100,679 72,825 53,485 17,117 Total kt 174,995 175,044 174,864 130,897 109,687 85,469 90,815 53,379 STOCKPILE Deferred Open Pit kt 265,268 310,156 306,840 292,800 269,942 248,059 250,005 248,881 CLOSING Ore Stockpile NSR $/t 5.21 5.33 5.24 4.98 4.68 4.68 4.68 4.68 BALANCE Cu % 0.40 0.41 0.40 0.38 0.36 0.36 0.36 0.36 Au g/t 0.14 0.15 0.15 0.14 0.14 0.14 0.14 0.14 Rec Cu% 0.34 0.34 0.34 0.32 0.30 0.30 0.30 0.30 Rec Au g/t 0.09 0.10 0.09 0.09 0.08 0.08 0.08 0.08 Stockpile Reclaim kt 0 0 3,317 14,040 22,858 21,883 0 1,124 PROCESSED Process Feed kt 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 ORE NSR $/t 18.64 22.07 18.29 11.65 8.68 6.51 10.71 12.53 Cu % 1.46 1.76 1.47 0.92 0.68 0.52 0.89 1.04 Au g/t 0.24 0.21 0.17 0.16 0.15 0.10 0.05 0.06 Rec Cu% 1.33 1.61 1.34 0.83 0.60 0.46 0.81 0.94 Rec Au g/t 0.13 0.10 0.10 0.10 0.09 0.06 0.01 0.03 CONCENTRATE Concentrate Make Mass Pull % 4.38 5.28 4.42 2.81 2.08 1.56 2.64 3.08 MAKE kt 1,754 2,111 1,768 1,123 831 623 1,054 1,234 Con Cu% 30.3 30.5 30.3 29.5 29.0 29.4 30.6 30.6 Con Au g/t 2.9 1.9 2.3 3.6 4.5 4.0 0.4 1.1 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 531 644 536 331 241 183 323 377 koz 165 128 132 129 119 80 13 42 22 23 24 25 26 27 28 29 2029 2030 2031 2032 2033 2034 2035 2036 --------------------------------------------------------------------------- SW AND Open Pit Ore Total kt 0 0 0 0 0 0 0 0 CENTRAL NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Waste kt 0 0 0 0 0 0 0 0 Total kt 0 0 0 0 0 0 0 0 HUGO Open Pit Ore Total kt 25,703 23,235 3,863 0 0 0 0 0 SOUTH NSR $/t 13.24 14.74 9.06 0.00 0.00 0.00 0.00 0.00 Cu % 1.11 1.23 0.76 0.00 0.00 0.00 0.00 0.00 Au g/t 0.06 0.07 0.05 0.00 0.00 0.00 0.00 0.00 Rec Cu% 1.00 1.12 0.69 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.03 0.04 0.03 0.00 0.00 0.00 0.00 0.00 Waste kt 2,968 899 404 0 0 0 0 0 Total kt 28,671 24,133 4,267 0 0 0 0 0 HUGO Underground Ore Total kt 0 0 0 0 0 0 0 0 NORTH NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 OPEN PIT Open Pit Total kt 25,703 23,235 3,863 0 0 0 0 0 TOTAL NSR $/t 13.24 14.74 9.06 0.00 0.00 0.00 0.00 0.00 Cu % 1.11 1.23 0.76 0.00 0.00 0.00 0.00 0.00 Au g/t 0.06 0.07 0.05 0.00 0.00 0.00 0.00 0.00 Rec Cu% 1.00 1.12 0.69 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.03 0.04 0.03 0.00 0.00 0.00 0.00 0.00 Waste kt 2,968 899 404 0 0 0 0 0 Total kt 28,671 24,133 4,267 0 0 0 0 0 STOCKPILE Deferred Open Pit kt 234,584 217,819 181,682 141,682 101,682 61,682 21,682 0 CLOSING Ore Stockpile NSR $/t 4.68 4.68 4.68 4.68 4.68 4.68 4.68 6.77 BALANCE Cu % 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.37 Au g/t 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.40 Rec Cu% 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.94 Rec Au g/t 0.08 0.08 0.08 0.08 0.08 0.08 0.08 -0.11 Stockpile Reclaim kt 14,297 16,765 36,137 40,000 40,000 40,000 40,000 21,682 PROCESSED Process Feed kt 40,000 40,000 40,000 40,000 40,000 40,000 40,000 21,682 ORE NSR $/t 10.18 10.52 5.10 4.68 4.68 4.68 4.68 4.68 Cu % 0.84 0.87 0.40 0.36 0.36 0.36 0.36 0.36 Au g/t 0.09 0.10 0.13 0.14 0.14 0.14 0.14 0.14 Rec Cu% 0.75 0.78 0.34 0.30 0.30 0.30 0.30 0.30 Rec Au g/t 0.05 0.06 0.08 0.08 0.08 0.08 0.08 0.08 CONCENTRATE Concentrate Make Mass Pull % 2.49 2.58 1.21 1.09 1.09 1.09 1.09 1.09 MAKE kt 998 1,032 482 438 438 438 438 237 Con Cu% 30.1 30.0 28.0 27.5 27.5 27.5 27.5 27.5 Con Au g/t 2.1 2.3 6.5 7.7 7.7 7.7 7.7 7.7 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 300 310 135 120 120 120 120 65 koz 67 76 101 108 108 108 108 58
YEAR -2 -1 1 2 3 4 5 TOTAL 2006 2007 2008 2009 2010 2011 2012 SW AND Open Pit Ore Total kt 478,909 106 17,997 27,409 36,178 38,317 39,955 37,898 CENTRAL NSR $/t 8.94 5.37 7.22 13.17 11.76 6.88 11.84 11.75 Cu % 0.55 0.39 0.43 0.56 0.49 0.41 0.68 0.64 Au g/t 0.39 0.23 0.37 0.83 0.73 0.35 0.55 0.56 Rec Cu% 0.48 0.32 0.36 0.49 0.42 0.33 0.59 0.58 Rec Au g/t 0.27 0.15 0.24 0.61 0.57 0.24 0.40 0.42 Waste kt 620,863 31,716 46,745 67,847 58,944 56,796 55,037 57,032 Total kt 1,099,772 31,822 64,742 95,256 95,122 95,113 94,992 94,930 HUGO Open Pit Ore Total kt 378,372 9 290 1,871 10,592 27,084 14,430 8,201 SOUTH NSR $/t 11.62 3.27 3.12 3.35 3.93 7.16 10.31 10.59 Cu % 0.97 0.00 0.27 0.28 0.34 0.61 0.87 0.89 Au g/t 0.05 0.00 0.02 0.02 0.02 0.03 0.03 0.04 Rec Cu% 0.88 0.00 0.23 0.25 0.30 0.54 0.78 0.80 Rec Au g/t 0.02 0.00 0.01 0.01 0.01 0.02 0.02 0.02 Waste kt 1,780,374 33,728 65,656 97,871 89,408 72,852 85,518 91,753 Total kt 2,158,746 33,737 65,946 99,742 100,000 99,937 99,948 99,954 HUGO Underground Ore Total kt 176,539 0 0 0 0 486 1,631 6,384 NORTH NSR $/t 25.75 0.00 0.00 0.00 0.00 25.76 28.44 29.39 Cu % 1.99 0.00 0.00 0.00 0.00 1.99 2.19 2.26 Au g/t 0.35 0.00 0.00 0.00 0.00 0.35 0.40 0.41 Rec Cu% 1.83 0.00 0.00 0.00 0.00 1.83 2.01 2.08 Rec Au g/t 0.21 0.00 0.00 0.00 0.00 0.21 0.24 0.25 MINED Mined Ore Total kt 1,033,820 115 18,287 29,280 46,770 65,887 56,016 52,483 TOTAL NSR $/t 12.79 5.20 7.16 12.55 9.99 7.13 11.93 13.71 Cu % 0.95 0.36 0.43 0.54 0.45 0.50 0.77 0.88 Au g/t 0.26 0.21 0.36 0.78 0.57 0.22 0.41 0.46 Rec Cu% 0.85 0.30 0.36 0.47 0.39 0.43 0.68 0.80 Rec Au g/t 0.17 0.14 0.24 0.58 0.44 0.14 0.30 0.34 Waste kt 2,401,237 65,444 112,401 165,718 148,352 129,649 140,555 148,785 Total kt 3,258,518 65,559 130,688 194,998 195,122 195,050 194,940 194,884 STOCKPILE Deferred Open Pit kt 278,028 115 18,402 19,632 29,402 55,289 71,305 83,788 CLOSING Ore Stockpile NSR $/t 5.41 5.20 7.14 5.23 4.42 4.39 4.49 4.52 BALANCE Cu % 0.41 0.36 0.43 0.35 0.32 0.32 0.33 0.34 Au g/t 0.15 0.21 0.36 0.23 0.16 0.15 0.15 0.14 Rec Cu% 0.35 0.30 0.36 0.29 0.26 0.27 0.27 0.29 Rec Au g/t 0.10 0.14 0.24 0.14 0.10 0.09 0.09 0.09 Stockpile Reclaim kt 189,699 0.00 0.00 0 0 0 0 0 PROCESSED Process Feed kt 1,033,820 0 0 28,050 37,000 40,000 40,000 40,000 ORE NSR $/t 12.79 0.00 0.00 14.12 11.89 8.94 14.77 16.52 Cu % 0.95 0.00 0.00 0.60 0.51 0.61 0.93 1.02 Au g/t 0.26 0.00 0.00 0.90 0.72 0.27 0.52 0.58 Rec Cu% 0.85 0.00 0.00 0.53 0.44 0.53 0.84 0.93 Rec Au g/t 0.17 0.00 0.00 0.65 0.55 0.19 0.38 0.43 CONCENTRATE Concentrate Make Mass Pull % 2.90 0.00 0.00 1.87 1.55 1.81 3.01 3.28 MAKE kt 30,021 0 0 525 573 724 1,205 1,312 Con Cu% 29.4 0.0 0.0 28.1 28.4 29.6 27.8 28.4 Con Au g/t 5.9 0.0 0.0 34.9 35.8 10.2 12.6 13.0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 8,830 0.00 0.00 148 162 214 334 372 koz 5,652 0.00 0.00 590 659 238 488 550 6 7 8 9 10 11 12 13 2013 2014 2015 2016 2017 2018 2019 2020 SW AND Open Pit Ore Total kt 35,400 69,495 56,399 29,271 48,956 32,433 9,096 0 CENTRAL NSR $/t 6.76 6.25 6.69 7.09 9.50 10.22 13.81 0.00 Cu % 0.48 0.44 0.44 0.51 0.65 0.84 1.18 0.00 Au g/t 0.23 0.23 0.29 0.25 0.33 0.20 0.21 0.00 Rec Cu% 0.40 0.37 0.37 0.44 0.58 0.75 1.06 0.00 Rec Au g/t 0.15 0.15 0.18 0.16 0.23 0.13 0.13 0.00 Waste kt 59,585 25,608 38,565 65,729 44,776 10,500 1,982 0 Total kt 94,985 95,103 94,964 94,999 93,731 42,933 11,078 0 HUGO Open Pit Ore Total kt 2,259 15,645 15,703 16,057 16,800 14,789 24,136 30,181 SOUTH NSR $/t 3.87 9.17 11.32 12.66 13.84 11.81 14.15 18.53 Cu % 0.31 0.77 0.95 1.07 1.16 0.98 1.18 1.53 Au g/t 0.05 0.03 0.04 0.04 0.04 0.06 0.07 0.09 Rec Cu% 0.28 0.69 0.86 0.96 1.05 0.89 1.07 1.39 Rec Au g/t 0.03 0.02 0.02 0.02 0.02 0.04 0.00 0.02 Waste kt 97,717 84,210 84,312 83,870 83,194 131,384 154,380 132,206 Total kt 99,975 99,855 100,015 99,927 99,993 146,174 178,517 162,387 HUGO Underground Ore Total kt 9,954 12,330 12,609 12,641 12,597 12,000 12,195 13,294 NORTH NSR $/t 31.78 31.15 26.15 23.39 25.33 28.99 30.46 29.88 Cu % 2.40 2.34 1.97 1.82 1.93 2.19 2.29 2.27 Au g/t 0.52 0.54 0.44 0.31 0.40 0.47 0.51 0.46 Rec Cu% 2.21 2.15 1.81 1.67 1.77 2.01 2.11 2.09 Rec Au g/t 0.31 0.32 0.27 0.18 0.24 0.28 0.31 0.28 MINED Mined Ore Total kt 47,613 97,470 84,711 57,969 78,352 59,222 45,428 43,475 TOTAL NSR $/t 11.85 9.87 10.44 12.19 12.98 14.42 18.46 22.00 Cu % 0.87 0.73 0.76 0.95 0.96 1.15 1.48 1.76 Au g/t 0.28 0.24 0.27 0.20 0.28 0.22 0.22 0.20 Rec Cu% 0.77 0.65 0.67 0.85 0.87 1.04 1.34 1.61 Rec Au g/t 0.18 0.15 0.17 0.13 0.19 0.14 0.11 0.10 Waste kt 157,302 109,818 122,877 149,599 127,970 141,884 156,362 132,206 Total kt 194,960 194,959 194,979 194,927 193,725 189,106 189,595 162,387 STOCKPILE Deferred Open Pit kt 91,401 148,871 193,582 211,551 249,903 269,125 274,552 278,028 CLOSING Ore Stockpile NSR $/t 4.56 4.86 5.13 5.17 5.34 5.40 5.43 5.41 BALANCE Cu % 0.35 0.36 0.38 0.38 0.40 0.41 0.41 0.41 Au g/t 0.14 0.16 0.17 0.17 0.16 0.16 0.16 0.15 Rec Cu% 0.29 0.30 0.31 0.32 0.34 0.35 0.35 0.35 Rec Au g/t 0.09 0.10 0.11 0.11 0.10 0.10 0.10 0.10 Stockpile Reclaim kt 0 0 0 0 0 0 0 0 PROCESSED Process Feed kt 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 ORE NSR $/t 13.17 16.36 15.40 15.10 19.43 18.37 20.06 23.52 Cu % 0.97 1.22 1.14 1.17 1.39 1.45 1.60 1.88 Au g/t 0.31 0.32 0.31 0.22 0.43 0.28 0.24 0.22 Rec Cu% 0.87 1.11 1.03 1.06 1.27 1.32 1.46 1.72 Rec Au g/t 0.19 0.20 0.19 0.14 0.30 0.17 0.12 0.10 CONCENTRATE Concentrate Make Mass Pull % 2.92 3.69 3.43 3.58 4.35 4.70 4.97 5.62 MAKE kt 1,166 1,478 1,370 1,430 1,740 1,880 1,987 2,247 Con Cu% 29.7 30.0 30.1 29.7 29.1 28.1 29.4 30.6 Con Au g/t 6.6 5.3 5.7 3.9 7.0 3.7 2.5 1.9 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 346 444 413 425 506 528 584 688 koz 246 251 250 179 389 223 159 134 13 14 15 16 17 18 19 20 2020 2021 2022 2023 2024 2025 2026 2027 SW AND Open Pit Ore Total kt 0 0 0 0 0 0 0 0 CENTRAL NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Waste kt 0 0 0 0 0 0 0 0 Total kt 0 0 0 0 0 0 0 0 HUGO Open Pit Ore Total kt 30,181 24,415 11,486 9,087 22,335 32,308 27,893 25,703 SOUTH NSR $/t 18.53 16.81 8.27 4.35 6.94 9.92 12.13 13.24 Cu % 1.53 1.39 0.69 0.36 0.58 0.83 1.01 1.11 Au g/t 0.09 0.08 0.05 0.04 0.04 0.04 0.05 0.06 Rec Cu% 1.39 1.27 0.62 0.32 0.52 0.75 0.91 1.00 Rec Au g/t 0.02 0.05 0.03 0.02 0.01 0.00 0.03 0.03 Waste kt 132,206 93,082 91,414 89,088 72,646 30,112 11,703 2,968 Total kt 162,387 117,497 102,901 98,175 94,980 62,420 39,596 28,671 HUGO Underground Ore Total kt 13,294 12,535 12,434 12,413 12,198 8,134 5,474 4,616 NORTH NSR $/t 29.88 28.24 26.67 21.33 17.21 14.36 16.40 23.27 Cu % 2.27 2.19 2.08 1.71 1.41 1.19 1.35 1.90 Au g/t 0.46 0.36 0.33 0.19 0.12 0.08 0.12 0.15 Rec Cu% 2.09 2.02 1.91 1.57 1.28 1.08 1.22 1.74 Rec Au g/t 0.28 0.21 0.20 0.12 0.07 0.05 0.07 0.09 MINED Mined Ore Total kt 43,475 36,950 23,920 21,500 34,533 40,442 33,367 30,319 TOTAL NSR $/t 22.00 20.68 17.83 14.15 10.57 10.81 12.83 14.77 Cu % 1.76 1.66 1.41 1.14 0.87 0.90 1.07 1.23 Au g/t 0.20 0.17 0.19 0.13 0.07 0.05 0.06 0.07 Rec Cu% 1.61 1.52 1.29 1.04 0.79 0.82 0.96 1.11 Rec Au g/t 0.10 0.10 0.12 0.08 0.03 0.01 0.04 0.04 Waste kt 132,206 93,082 91,414 89,088 72,646 30,112 11,703 2,968 Total kt 162,387 117,497 102,901 98,175 94,980 62,420 39,596 28,671 STOCKPILE Deferred Open Pit kt 278,028 274,977 258,898 240,398 234,931 235,373 228,739 219,058 CLOSING Ore Stockpile NSR $/t 5.41 5.28 5.00 4.67 4.67 4.66 4.66 4.66 BALANCE Cu % 0.41 0.41 0.39 0.36 0.36 0.36 0.36 0.36 Au g/t 0.15 0.15 0.14 0.13 0.13 0.13 0.13 0.13 Rec Cu% 0.35 0.34 0.32 0.30 0.30 0.30 0.30 0.30 Rec Au g/t 0.10 0.09 0.09 0.08 0.08 0.08 0.08 0.08 Stockpile Reclaim kt 0 3,050 16,080 18,500 5,467 0 6,633 9,681 PROCESSED Process Feed kt 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 ORE NSR $/t 23.52 20.42 14.62 11.94 9.76 10.88 11.47 12.32 Cu % 1.88 1.63 1.14 0.94 0.80 0.91 0.95 1.02 Au g/t 0.22 0.21 0.23 0.19 0.08 0.05 0.08 0.09 Rec Cu% 1.72 1.49 1.03 0.84 0.72 0.82 0.86 0.92 Rec Au g/t 0.10 0.12 0.14 0.12 0.04 0.01 0.05 0.05 CONCENTRATE Concentrate Make Mass Pull % 5.62 4.92 3.49 2.88 2.38 2.68 2.81 3.03 MAKE kt 2,247 1,968 1,394 1,153 951 1,073 1,125 1,211 Con Cu% 30.6 30.3 29.5 29.2 30.4 30.6 30.4 30.3 Con Au g/t 1.9 2.5 4.0 4.0 1.6 0.4 1.7 1.7 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 688 596 412 337 289 328 342 367 koz 134 159 179 150 49 13 60 67 21 22 23 24 25 26 27 2028 2029 2030 2031 2032 2033 2034 SW AND Open Pit Ore Total kt 0 0 0 0 0 0 0 CENTRAL NSR $/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Waste kt 0 0 0 0 0 0 0 Total kt 0 0 0 0 0 0 0 HUGO Open Pit Ore Total kt 23,235 3,863 0 0 0 0 0 SOUTH NSR $/t 14.74 9.06 0.00 0.00 0.00 0.00 0.00 Cu % 1.23 0.76 0.00 0.00 0.00 0.00 0.00 Au g/t 0.07 0.05 0.00 0.00 0.00 0.00 0.00 Rec Cu% 1.12 0.69 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.04 0.03 0.00 0.00 0.00 0.00 0.00 Waste kt 899 404 0 0 0 0 0 Total kt 24,133 4,267 0 0 0 0 0 HUGO Underground Ore Total kt 2,614 0 0 0 0 0 0 NORTH NSR $/t 23.99 0.00 0.00 0.00 0.00 0.00 0.00 Cu % 1.96 0.00 0.00 0.00 0.00 0.00 0.00 Au g/t 0.16 0.00 0.00 0.00 0.00 0.00 0.00 Rec Cu% 1.79 0.00 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.09 0.00 0.00 0.00 0.00 0.00 0.00 MINED Mined Ore Total kt 25,849 3,863 0 0 0 0 0 TOTAL NSR $/t 15.67 9.06 0.00 0.00 0.00 0.00 0.00 Cu % 1.30 0.76 0.00 0.00 0.00 0.00 0.00 Au g/t 0.08 0.05 0.00 0.00 0.00 0.00 0.00 Rec Cu% 1.19 0.69 0.00 0.00 0.00 0.00 0.00 Rec Au g/t 0.05 0.03 0.00 0.00 0.00 0.00 0.00 Waste kt 899 404 0 0 0 0 0 Total kt 24,133 4,267 0 0 0 0 0 STOCKPILE Deferred Open Pit kt 204,907 168,770 128,770 88,770 48,770 8,770 0 CLOSING Ore Stockpile NSR $/t 4.66 4.66 4.66 4.66 4.66 4.66 0.00 BALANCE Cu % 0.36 0.36 0.36 0.36 0.36 0.37 0.00 Au g/t 0.13 0.13 0.13 0.13 0.13 0.13 0.00 Rec Cu% 0.30 0.30 0.30 0.30 0.30 0.30 0.00 Rec Au g/t 0.08 0.08 0.08 0.08 0.08 0.08 0.00 Stockpile Reclaim kt 14,151 36,137 40,000 40,000 40,000 40,000 8,770 PROCESSED Process Feed kt 40,000 40,000 40,000 40,000 40,000 40,000 8,770 ORE NSR $/t 11.78 5.09 4.66 4.66 4.66 4.66 4.66 Cu % 0.97 0.40 0.36 0.36 0.36 0.36 0.36 Au g/t 0.10 0.12 0.13 0.13 0.13 0.13 0.13 Rec Cu% 0.87 0.34 0.30 0.30 0.30 0.30 0.30 Rec Au g/t 0.06 0.08 0.08 0.08 0.08 0.08 0.08 CONCENTRATE Concentrate Make Mass Pull % 2.90 1.21 1.10 1.10 1.10 1.10 1.10 MAKE kt 1,158 486 442 442 442 442 97 Con Cu% 30.2 28.0 27.4 27.4 27.4 27.4 27.4 Con Au g/t 2.0 6.3 7.4 7.4 7.4 7.4 7.4 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 kt 349 136 121 121 121 121 27 koz 76 98 105 105 105 105 23
[CASE 2c: 17-20Mtpa CASE ORE TONNES BY SOURCE AND FEED GRADES BAR CHART] [17-40Mtpa CASE ORE TONNES BY SOURCE AND FEED GRADES BAR CHART] [34-40Mtpa CASE ORE TONNES BY SOURCE AND FEED GRADES BAR CHART] [IVANHOE MINES LOGO] Ivanhoe Mines Mongolia Inc XXK Technical Report - Preliminary Assessment Oyu Tolgoi Project, Mongolia APPENDIX D - IMPLEMENTATION SCHEDULE Project No.: AAJV001 [AMECAUSENCO LOGO] [OT PROJECT SCHEDULE REV2a.MPP FLOOR PLAN] [IVANHOE MINES LOGO] TECHNICAL REPORT Hugo Dummett Deposit Oyu Tolgoi, Mongolia Prepared for: Ivanhoe Mines, Ltd. by: Stephen J. Juras, PhD. P.Geo Vancouver, BC, Canada Effective Date: 10 November 2003 U784B / 131294 [AMEC LOGO] [AMEC LOGO] CERTIFICATE OF AUTHOR Stephen J, Juras, P. Geo. 111 Dunsmuir Street, Suite 400 Vancouver, BC Tel: (604) 664-4349 FAX (604) 664-3057 Stephen.juras@amec.com I, Stephen J. Juras, P. Geo., am a Professional Geoscientist, employed as Principal Geologist of AMEC E&C Services Limited and residing at 9030 161 Street in the City of Surrey in the Province of British Columbia. I am a member of the Association of Professional Engineers and Geoscientists of British Columbia. I graduated from the University of Manitoba with, a Bachelor of Science (Honours) degree in geology in 1978 and subsequently obtained a Master of Science degree in geology from the University of New Brunswick in 1981 and a Doctor of Philosophy degree in geology from the University of British Columbia in 1987. I have practiced my profession continuously since 1987 and have been involved in: mineral exploration for copper, zinc, gold and silver in Canada and United States and in underground mine geology, ore control and resource modelling for copper, zinc, gold, silver, tungsten, platinum/palladium and industrial mineral properties in Canada, United States, Peru, Chile, Vietnam and Russia. As a result of my experience and qualifications, I am a Qualified Person as defined in N.P. 43-101. I am currently a Consulting Geologist and have been so since January 1998. From October 17, 2003 until October 24, 2003 I visited the Oyu Tolgoi project in Mongolia. I also helped to direct the mineral estimation work for the Hugo deposit, Oyu Tolgoi project. This report was prepared under my direct supervision. I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report and that the omission to disclose would make this report misleading. I am independent of Ivanhoe Mines Limited in accordance with the application of Section 1.5 of National Instrument 43-101. AMEC E&C Services Limited 111 Dunsmuir Street, Suit 400 Vancouver, B.C. V6B 5W3 Tel +1 604 664 3471 Fax +1 604 664 3057 www.amec.com [AMEC LOGO] I have read National Instrument 43-101 and Form 43-101F1 and this report has been prepared in compliance with same. Dated at Vancouver, British Columbia, this 3rd day of December, 2003. /s/ Stephen J. Juras ----------------------- Stephen J. Juras, Ph.D., P. Geo. [AMEC LOGO] CONSENT OF QUALIFIED PERSON TO: The securities regulatory authorities of each of the provinces and territories of Canada I, Stephen Juras, Ph.D., P.Geo., do hereby consent to the filing of the technical report prepared for Ivanhoe Mines Limited and dated November 10, 2003 in respect of the Hugo deposit, Oyu Tolgoi project, Mongolia. DATED at this 3rd day of December, 2003. /s/ Stephen Juras ----------------------------- Stephen Juras, Ph.D., P. Geo. AMEC E&C Services Limited 111 Dunsmuir Street, Suit 400 Vancouver, D.C. V6D 5W3 Tel +1 604-664-3471 Fax +1 604-664-3057 IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Technical Report, in accordance to Form 43-101F1, for Ivanhoe Mines Ltd. (Ivanhoe) by AMEC E&C Services Limited (AMEC). The quality of information, conclusions and estimates contained herein is consistent with the level of effort involved in AMEC's services and based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended to be used by Ivanhoe, subject to the terms and conditions of its contract with AMEC. This contract permits Ivanhoe to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Any other use of this report by any third party is at that party's sole risk. [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA CONTENTS 1.0 SUMMARY ................................................................ 1-1 2.0 INTRODUCTION AND TERMS OF REFERENCE .................................... 2-1 2.1 Terms of Reference ................................................. 2-1 3.0 DISCLAIMER ............................................................. 3-1 4.0 PROPERTY DESCRIPTION AND LOCATION ...................................... 4-1 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ........................................................... 5-1 6.0 HISTORY ................................................................ 6-1 7.0 GEOLOGICAL SETTING ..................................................... 7-1 8.0 DEPOSIT TYPES .......................................................... 8-1 9.0 MINERALIZATION ......................................................... 9-1 10.0 EXPLORATION ............................................................ 10-1 11.0 DRILLING ............................................................... 11-1 12.0 SAMPLING METHOD AND APPROACH ........................................... 12-1 13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ............................. 13-1 13.1 Sample Preparation and Shipment ................................... 13-1 13.2 Assay Method ...................................................... 13-2 13.3 QA/QC Program ..................................................... 13-2 14.0 DATA VERIFICATION ...................................................... 14-1 15.0 ADJACENT PROPERTIES .................................................... 15-1 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................... 16-1 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ......................... 17-1 17.1 Geologic Models ................................................... 17-1 17.2 Exploratory Data Analysis ......................................... 17-2 17.3 Evaluation of Extreme Grades ...................................... 17-14 17.4 Variography ....................................................... 17-14 17.5 Model Set-up ...................................................... 17-18 17.6 Estimation ........................................................ 17-18 17.7 Mineral Resource Classification and Summary ....................... 17-27 18.0 OTHER RELEVANT DATA AND INFORMATION .................................... 18-1 19.0 REQUIREMENTS FOR TECHNICAL REPORTS ON PRODUCTION AND DEVELOPMENT PROPERTIES ................................................. 19-1 20.0 CONCLUSIONS AND RECOMMENDATIONS ........................................ 20-1 21.0 REFERENCES ............................................................. 21-1
DECEMBER 2003 TOC i [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA TABLES 1-1: Hugo Deposit, Oyu Tolgoi Project, Inferred Mineral Resource - 10 November 2003 ............ 1-4 13-1: Percent Difference at the 90th Population Percentile (% Diff) of Duplicate Sample Analyses, Hugo Deposit, Oyu Tolgoi .................................................................. 13-8 17-1: Domain Descriptions and Codes ............................................................. 17-3 17-2: Statistical Summary of Composite and Model Data, Hugo South Deposit ....................... 17-7 17-3: Statistical Summary of Composite and Model Data, Hugo North Deposit ....................... 17-8 17-4: Hugo Capping Grades ....................................................................... 17-14 17-5: Cu, Au, and Mo Variogram Parameters for Hugo South and North Deposits ..................... 17-16 17-6: Azimuth and Dip Angles of Rotated Variogram Axes, Hugo South and North Deposits ........... 17-17 17-7: Hugo Deposit Model Framework .............................................................. 17-18 17-8: Global Model Mean Grade Values by Domain in each Zone ..................................... 17-24 17-9: Hugo Deposit, Oyu Tolgoi Project, Mineral Resource Summary - 10 November 2003 ............. 17-27 17-10: Hugo Deposit Mineral Resource Summary by Depth - 10 November 2003 ......................... 17-28
FIGURES 11-1: November 2003 Drill Hole Collar Plan - Hugo Deposit ....................................... 11-2 13-1: SRM Failure Chart ......................................................................... 13-3 13-2: Blank Sample Results for Gold ............................................................. 13-4 13-3: Blank Sample Results for Copper ........................................................... 13-5 13-4: Blank Sample Results for Molybdenum ....................................................... 13-6 13-5: Relative Difference Scatter Plot, Hugo Duplicate Samples - Copper (%) ..................... 13-7 13-6: Relative Difference Scatter Plot, Hugo Duplicate Samples - Gold (g/t) ..................... 13-7 13-7: Relative Difference Scatter Plot, Hugo Duplicate Samples - Molybdenum (ppm) ............... 13-8 17-1: 2% Cu Shell, Hugo South and Hugo North Deposits (Near Vertical 3D Perspective) ............ 17-2 17-2: Hugo Deposit Copper Composite Data Box Plots (top plot = Hugo South; bottom plot = Hugo North) ............................................................................... 17-5 17-3: Hugo Deposit Gold Composite Data Box Plots (top plot = Hugo South; bottom plot = Hugo North) ............................................................................... 17-6 17-4: Cu Composite Data Scatter Plot, Hugo North and South Deposits (1% + 2% + Au Shells) ....... 17-9 17-5: Au Composite Data Scatter Plot, Hugo North and South Deposits (1% + 2% + Au Shells) ....... 17-10 17-6: Mo Composite Data Scatter Plot, Hugo North and South Deposits (1% + 2% + Au Shells) ....... 17-10 17-7: Au vs. Cu Composite Data Scatter Plots for Hugo Deposit ................................... 17-11 17-8: Cu and Au Contact Plots, Au Shell vs. 2% Cu Shell, Hugo North Deposit ..................... 17-13 17-9: Change-of-Support Grade-Tonnage Plots for Cu Model and Herco Values - Hugo South Domains ................................................................................... 17-22 17-10: Change-of-Support Grade-Tonnage Plots for Cu Model and Herco Values - Hugo North Domains ................................................................................... 17-23 17-11: Results for Cu in the 2% Cu Shells ........................................................ 17-25 17-12: Results for Au in the 2% Cu Shells ........................................................ 17-26
DECEMBER 2003 TOC ii [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA APPENDICES A COMPOSITES A-1 Hugo Deposit Drill Holes A-2 Hugo South Composite Values A-3 Hugo North Composite Values B STANDARD REFERENCE MATERIAL (SRM) CHARTS C DATA ANALYSIS Box plots Contact Profiles Histograms & Probability Plots - Drill Hole Composite Values Histograms & Probability Plots - Model Values D VARIOGRAPHY E SECTIONS AND PLANS DECEMBER 2003 TOC iii [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 1.0 SUMMARY Ivanhoe Mines Ltd. (Ivanhoe) has asked AMEC E&C Services Limited (AMEC) to provide an updated independent mineral resource estimate and Qualified Person's review and Technical Report for the Hugo Dummett (Hugo) deposit (formerly called the Far North deposit) of the Oyu Tolgoi project in Mongolia. The work entailed on estimate of mineral resources that conforms to the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. It also involved the preparation of an updated Technical Report as defined in NI 43-101 and in compliance with Form 43-101F1 (the "Technical Reports") to the previous Technical Report on the Hugo Deposit, Oyu Tolgoi Project, Mongolia, dated 21 July 2003. The only changes relative to the contents of that report are matters pertaining to the Hugo Dummett deposit (drill data and mineral resource estimate). Dr. Harry Parker, Ch. P.Geo., and Dr. Stephen Juras, P.Geo., directed the mineral resource estimation work and review of the geological data. Dr. Juras visited the project site from 17 to 24 October 2003. Dr. Parker made an earlier visit to the site from 1 to 3 May 2003. Dr. Stephen Juras, P.Geo., an employee of AMEC, who was the Qualified Person responsible for preparing the previous Technical Report, served in the same capacity for this updated version. The Oyu Tolgoi project is based on a deposit of copper-gold-molybdenum mineralization in a mid Palaeozoic Cu-Au porphyry system. The deposit is located in the Aimag (Province) of Omnogov, in the South Gobi region of Mongolia, about 530 km south of the capital city of Ulaanbaatar and 80 km north of the border with China. The Oyu Tolgoi project comprises Mineral Exploration Licence 66X, which covers an area of 8,496 ha. Ivanhoe has been granted the exclusive right to explore within the bounds of its exploration licence. Oyu Tolgoi occurs in an early to mid Palaeozoic island arc environment, which is part of the Gurvansayhan terrane. The arc terrane is dominated by basaltic volcanics and intercalated volcanogenic sediments, intruded by pluton-size, hornblende-bearing granitoids of mainly quartz monzodiorite to possibly granitic composition. Carboniferous sedimentary rocks overlie this assemblage. Property geology consists of massive porphyritic augite basalt, which underlies much of the central part of the exploration block. Dacitic to andesitic ash flow tuffs, several hundred metres in thickness, overlie the augite basalt. The southern edge of a large body of hornblende granodiorite outcrops along the northern margin of the exploration block. A wide variety of felsic to mafic dykes is found throughout the exploration block and in drill holes. These include porphyritic quartz monzodiorite dykes that may be genetically related to the Cu-Au porphyry systems. Based on satellite imagery and geophysical interpretations, major structures trend N35E and N70E. Four Cu-Au (Mo) deposits are identified within the project area: Southwest Oyu, South Oyu, Central Oyu, and Hugo. The work described in this Technical Report deals only with the Hugo deposit. This deposit is a high-sulphidation (HS) type, hosted by dacitic ash flow tuff overlying basaltic volcanics. Sedimentary rocks overlie the dacitic tuffs and cap the HS DECEMBER 2003 PAGE 1-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA system. High-grade copper (greater than 1%) occurs as bornite-chalcocite mineralization to the south and bornite-gold mineralization in the north. Surrounding the bornite-rich core, chalcopyrite dominates, followed laterally by a wide (hundreds of metres) pyrite-rich zone (10% pyrite) with minor enargite. The high-grade trends NE, becoming more northerly to the north, and extends over a strike length more than 2.0 km. Its shape is comparable to a gently north dipping elliptical pipe, about 200 m to 300 m in diameter. The database used to estimate the mineral resources for the Hugo deposit consists of rock samples and geological information from 136 core drill holes drilled by Ivanhoe between 2002 and mid 2003. Samples from the drill programs were prepared for analysis at an on-site facility operated by SGS-Analabs Pty. Ltd (Analabs). The samples were then shipped under the custody of Ivanhoe to Ulaanbaatar, where they were assayed at a facility (currently certified under ISO 9002:1984) operated by Analabs. Data transfer to the resource database was validated from original certificates through a 5% check of the database. Ivanhoe employs a comprehensive QA/QC program. All sampling and QA/QC work is overseen on behalf of Ivanhoe by Dale A. Sketchley, M.Sc., P.Geo., a geological consultant employed by Acuity Management Ltd. Each sample batch of 20 samples contains four or five quality control samples. The quality control samples comprise one duplicate split core sample and one uncrushed field blank, which are inserted prior to sample preparation; a reject or pulp preparation duplicate, which is inserted during sample preparation; and one or two reference material samples (one <2% Cu and one >2% Cu if higher-grade mineralization is present based on visually estimates), which are inserted after sample preparation. A total of 33 different reference materials have been developed for the Oyu Tolgoi deposits and are used to monitor the assaying of six different ore types made up of varying combinations of chalcopyrite, bornite, primary and supergene chalcocite, enargite, covellite and molybdenite. Ivanhoe strictly monitors the performance of the standard reference material (SRM) samples as the assay results arrive at site. If a batch fails based on standard reference material and blank sample tolerance limits from round-robin programs, it is re-assayed until it passes, unless the batch is deemed to represent barren intervals. AMEC reviewed Ivanhoe's QA/QC procedures at site and found them to be strictly adhered to. Results of field blanks show low incidence of contamination and confirm negligible contamination in the assay process. Duplicate performance of core, coarse reject, and pulp duplicates was evaluated by AMEC and found to be well within the respective accepted ranges. The current Ivanhoe QA/QC program exceeds industry standards and demonstrates that the assay process for Hugo deposit samples is in control. Ongoing delineation since the July 2003 Technical Report continued to define an auriferous, copper-rich zone hosted in augite basalt and quartz monzodiorite to the north. This contrasts to the original, more southerly, gold-poor, ignimbrite- and augite basalt-hosted mineralization. The distinct differences between the two areas led to DECEMBER 2003 PAGE 1-2 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA Ivanhoe's decision to divide the Hugo deposit into Hugo South (HS) and Hugo North (HN) deposits for the purpose of modelling. The selected dividing line was 4766300 N, a location marked by the thinning and locally discontinuous nature of the high-grade copper mineralization (defined as greater than 2% copper). AMEC concurs with this decision. Ivanhoe created three-dimensional (3D) mineralized shells, or envelopes, based on copper grades of 0.6%, 1.0%, and 2.0%. An additional mineralized shell based on gold was constructed in Hugo North. This shell was defined visually in each hole by the location where gold grades increased markedly within the 1% and 2% copper shells. This value was around 0.3 g/t Au. AMEC checked the shapes for interpretational consistency in section and plan, and found them to have been properly constructed. These shells were used as interpolation domains. Grades for blocks within the three Cu grade shells in each deposit or zone were estimated with a hard boundary between the shells. Additionally, grades for blocks within the Au zone in Hugo North were estimated with a hard boundary between the shells. The background estimation domain used all composites outside of the grade shells. The mineral resource estimates for the Hugo deposit were calculated under the direction of Dr. Harry Parker, Ch. P.Geo., and Dr. Stephen Juras, P.Geo. The estimates were made from 3D block models utilizing commercial mine planning software (MineSight(R)). Industry-accepted methods were used to create interpolation domains based on mineralized geology and to perform grade estimation based on ordinary kriging. The assays were composited into 5 m down-hole composites. The compositing honoured the domain zone by breaking the composites on the domain code values. The Hugo estimation plans, or sets of parameters used for estimating blocks, were designed using a philosophy of restricting the number of samples for local estimation. AMEC has found this to be an effective method of reducing smoothing and producing estimates that match the Discrete Gaussian change-of-support model and ultimately the actual recovered grade-tonnage distributions. Reasonableness of grade interpolation was reviewed by visual inspection of sections and plans displaying block model grades, drill hole composites, and geology. Good agreement was observed. Global and local bias checks in block models, using nearest-neighbour estimated values versus the ordinary kriged values, found no evidence of bias. The mineral resources of the Hugo deposit were classified using logic consistent with the CIM definitions referred to in National Instrument 43-101. All interpolated blocks within the grade shells (most less than 150 m from a drill composite and interpolated by composites from at least two drill holes) were assigned to an Inferred Mineral Resource category. In the background domain, only interpolated blocks within 150 m of a drill composite were assigned to an Inferred Mineral Resource category. The mineralization of the Hugo deposit, Oyu Tolgoi project, as of 10 November 2003 is classified as an Inferred Mineral Resource. The resource is shown in Table 1-1, reported at a copper equivalent cutoff grade. The equivalent grade was calculated using only DECEMBER 2003 PAGE 1-3 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA assumed metal prices for copper and gold. The assumed prices were US$0.80 for copper and US$350/oz for gold. For convenience the formula is: CuEq = %Cu + (g/t Au*11.25)/17.64 The Hugo deposit could be mined by either (or both) open pit or underground bulk mining (e.g., block cave, sublevel cave) methods. The current mineral resource model will need to incorporate additional dilution and allowances for mining recovery for any underground scenario prior to conversion to mineral reserves. TABLE 1-1: HUGO DEPOSIT, OYU TOLGOI PROJECT, INFERRED MINERAL RESOURCE - 10 NOVEMBER 2003
GRADE CONTAINED METAL CUEQ -------------------------- ------------------------- CUTOFF GRADE TONNES CUEQ CU AU MO CU TONNES AU OUNCES (%) (K) (%) (%) (G/T) (PPM) (K) (K) =========================================================================================================== > or = 3.50 47,900 4.29 3.68 0.96 30 1,760 1,470 > or = 3.00 75,800 3.91 3.42 0.76 30 2,590 1,860 > or = 2.50 115,200 3.51 3.11 0.61 31 3,590 2,270 > or = 2.00 149,400 3.22 2.88 0.53 31 4,310 2,560 > or = 1.50 234,300 2.65 2.39 0.40 39 5,610 3,020 > or = 1.25 412,500 2.09 1.92 0.27 43 7,930 3,550 > or = 1.00 575,500 1.82 1.67 0.23 47 9,620 4,300 > or = 0.90 654,900 1.71 1.57 0.22 50 10,300 4,640 > or = 0.80 778,900 1.57 1.45 0.20 53 11,280 4,990 > or = 0.70 889,700 1.47 1.36 0.18 55 12,060 5,230 > or = 0.60 961,600 1.41 1.30 0.18 56 12,480 5,420 > or = 0.50 1,082,500 1.31 1.21 0.17 56 13,060 5,800 > or = 0.40 1,358,100 1.14 1.04 0.15 57 14,140 6,430 > or = 0.30 1,800,300 0.94 0.86 0.12 57 15,500 7,220
DECEMBER 2003 PAGE 1-4 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 2.0 INTRODUCTION AND TERMS OF REFERENCE Ivanhoe Mines Ltd. (Ivanhoe) has asked AMEC E&C Services Limited (AMEC) to provide an updated independent mineral resource estimate and Qualified Person's review and Technical Report for the Hugo Dummett deposit (formerly called the Far North deposit) of the Oyu Tolgoi project in Mongolia. The work entailed an estimate of mineral resources that conforms to the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. It also involved the preparation of an updated Technical Report as defined in NI 43-101 and in compliance with Form 43-101F1 (the "Technical Reports") to the previous Technical Report on the Far North Deposit, Oyu Tolgoi Project, Mongolia, dated 21 July 2003. The only changes relative to the contents of that report are matters pertaining to the Hugo Dummett deposit (drill data and mineral resource estimate). Dr. Stephen Juras, P.Geo., an employee of AMEC, who served as the Qualified Person responsible for preparing the earlier Technical Report, served in the same capacity for this updated version. Information and data for the independent resource estimate were obtained from Ivanhoe personal in Vancouver and from the project site in Mongolia. Pertinent geological data were reviewed in sufficient detail to prepare this document. Dr. Harry Parker, Ch. P.Geo., and Dr. Stephen Juras, P.Geo., directed the mineral resource estimation work and review of the geological data. Dr. Juras visited the project site from 17 to 24 October 2003. Dr. Parker made an earlier visit to the site from 1 to 3 May 2003. 2.1 TERMS OF REFERENCE The Oyu Tolgoi project comprises four deposits: Southwest Oyu, South Oyu, Central Oyu, and Hugo Dummett (formerly the Far North Oyu). This report deals solely with the Hugo Dummett (Hugo) deposit. Throughout this report, this deposit may be referred to as Hugo, HG, HN (Hugo North), or HS (Hugo South). All units are in the metric system, except in the mineral resource summary tables, where troy ounces are also used. DECEMBER 2003 PAGE 2-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 3.0 DISCLAIMER No disclaimer statement was necessary for the preparation of this report. DECEMBER 2003 PAGE 3-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 4.0 PROPERTY DESCRIPTION AND LOCATION Material relevant to this section is contained a previous Technical Report on the Oyu Tolgoi Project, Mongolia, dated 24 February 2003. One change of note is that the existing 2% NSR royalty retained by BHP Minerals International Exploration, a subsidiary of BHP Billiton, has now been acquired by Ivanhoe. Terms of this transaction require Ivanhoe to pay BHP Billiton a total of US$37 million in two payments, with the final payment of US$20 million to be made by 5 February 2004. DECEMBER 2003 PAGE 4-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY Material relevant to this section is contained a previous Technical Report on the Oyu Tolgoi Project, Mongolia, dated 24 February 2003. DECEMBER 2003 PAGE 5-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 6.0 HISTORY Material relevant to this section is contained a previous Technical Report on the Oyu Tolgoi Project, Mongolia, dated 24 February 2003. DECEMBER 2003 PAGE 6-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 7.0 GEOLOGICAL SETTING Material relevant to this section is contained a previous Technical Report on the Oyu Tolgoi Project, Mongolia, dated 24 February 2003. DECEMBER 2003 PAGE 7-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 8.0 DEPOSIT TYPES Material relevant to this section is contained a previous Technical Report on the Oyu Tolgoi Project, Mongolia, dated 24 February 2003. DECEMBER 2003 PAGE 8-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 9.0 MINERALIZATION Material relevant to this section is contained a previous Technical Report on the Oyu Tolgoi Project, Mongolia, dated 24 February 2003. DECEMBER 2003 PAGE 9-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 10.0 EXPLORATION Exploration at Oyu Tolgoi has been mainly by remote sensing and geophysical methods, including satellite image interpretation, detailed ground magnetics, Bouguer gravity, and gradient array induced polarization (IP), as well as extensive drilling. This is described in the February 2003 Technical Report. Since the time of that report, exploration has essentially consisted of diamond drilling the Hugo deposit. Infill drilling has also commenced over Central Oyu. DECEMBER 2003 PAGE 10-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 11.0 DRILLING Ivanhoe has conducted diamond drilling from July 2003 to the present over the Hugo and Central Oyu deposits; drilling in the Hugo deposit only is dealt with herein. As of the mineral resource data cutoff date of 1 November 2003, the drilling that produced assay data for the area defined as the Hugo deposit totals 129,680 m in 136 drill holes. The holes generally range in length from 330 m to 2,000 m, averaging 950 m. The locations of the drill holes are shown in Figure 11-1. A list of the project drill holes, together with their coordinates and lengths, is provided in Appendix A. Drilling was done by wireline method with H-size (HQ, 63.5 mm nominal core diameter) and N-size (NQ, 47.6 mm nominal core diameter) equipment using up to 14 drill rigs. Upon completion, the collar and anchor rods are removed and a PVC pipe is inserted into the hole. The hole collar is marked by a cement block inscribed with the hole number. Recent drilling included multiple daughter holes drilled from within the parent drill hole. A bend is placed in the parent hole at the location where the planned daughter holes are to branch off. The bend is achieved by means of a Navi-Drill(R) (navi) bit, which is lowered down the hole to the desired depth and aligned in the azimuth of the desired bend. When the navi motor is operating, the rods do not rotate but remain stationary, holding the navi motor at the desired azimuth. The navi bit rotates at the bottom of the hole by pumping water down the hole under pressure. As the navi bit advances, a bend is achieved at the rate of 1(degree) every 3 m. For example, to achieve a 15 degrees bend in the hole, a 45 m interval is required. No core is recovered from the navi-drilled interval. Once the parent hole is completed, a daughter hole is initiated by rotating the rods to cut a lip in the bend, with the bit positioned at the desired start point of the daughter hole. A chrome barrel, which is more rigid than a standard barrel, is often used for this operation. Once a new hole has been started, the navi bit can be used if necessary to direct the hole in any direction required. Drill hole collars were located respective to a property grid. Proposed hole collars and completed collars were surveyed by a Nikon Theodolite instrument relative to 18 survey control stations established during a legal survey of the property in August 2002. The Hugo drill holes were drilled at an inclination of between 55 degrees and 90 degrees, with the majority between 60 degrees and 70 degrees. Holes were drilled along 125 degrees and 305 degrees azimuths. Down-hole surveys were taken about every 50 m by the drill contractor using a multi-shot measurement system (RANGER survey instrument). Standard logging and sampling conventions are used to capture information from the drill core. The core is logged in detail onto paper logging sheets, and the data are then entered into the project database. The core is photographed before being sampled. DECEMBER 2003 PAGE 11-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 11-1: NOVEMBER 2003 DRILL HOLE COLLAR PLAN - HUGO DEPOSIT [FIGURE] DECEMBER 2003 PAGE 11-2 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA AMEC reviewed the core logging procedures at site. Drill core was found to be well handled and maintained. Material was stored as stacked pallets in an organized "core farm." Data collection was competently done. Ivanhoe maintained consistency of observations from hole to hole and between different loggers by conducting regular internal checks. Core recovery in the mineralized units was excellent, usually between 95% and 100%. Very good to excellent recovery was observed in the mineralized intrusive sections checked by AMEC. Overall, the Ivanhoe drill program and data capture were performed in a competent manner. DECEMBER 2003 PAGE 11-3 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 12.0 SAMPLING METHOD AND APPROACH Rock sampling for resource estimation has been conducted on diamond drill core obtained from holes drilled between May 2001 and November 2003 in the Hugo deposit area. Collar spacing is approximately 100 m. The holes are up to 2,000 m long (average 950 m) and are inclined between 55 degrees and 90 degrees. Samples are taken at 2 m intervals down the drill holes, excluding barren dykes that extend more than 10 m along the core length. NQ and HQ core sizes are routinely used, and one-half of the core is taken for sampling. Since there are no adverse factors that would affect quality, all samples collected to date are considered representative of the mineralization being investigated. The core is split with a rock saw, flushed regularly with fresh water. Core recovery is good, with relatively few broken zones. To prevent sampling bias, the core is marked with a continuous linear cutting line before being split. Samples are placed in cloth bags and sent to the on-site preparation facility for processing. Reject samples are stored in plastic bags inside the original cloth sample bags and are placed in bins on pallets and stored at site. Duplicate pulp samples are stored at site in the same manner as reject samples. Pulp samples used for assaying are kept at the assaying facility for several months, then transferred to a warehouse in Ulaanbaatar. Significant composited assays for the Hugo deposit are shown in Appendix A. Only values greater than 0.60 wt% Cu have been tabulated. DECEMBER 2003 PAGE 12-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY 13.1 SAMPLE PREPARATION AND SHIPMENT Split core samples are prepared for analysis at an on-site facility operated by SGS-Analabs Pty. Ltd (Analabs). The samples are then shipped under the custody of Ivanhoe to Ulaanbaatar, where they are assayed at a lab facility operated by Analabs. The lab is currently certified under ISO 9002:1994, which will lapse 15 December 2003; it will then seek certification under ISO 9002:2000 in April 2004. All sampling and QA/QC work is overseen on behalf of Ivanhoe by Dale A. Sketchley, M.Sc., P.Geo., a geological consultant employed by Acuity Management Ltd. The samples are initially assembled into groups of 15 or 16, and then 4 or 5 quality control samples are interspersed to make up a batch of 20 samples. The quality control samples comprise one duplicate split core sample, one uncrushed field blank, a reject or pulp preparation duplicate, and one or two standard reference material (SRM) samples (one <2% Cu and one >2% Cu if higher grade mineralization is present based on visual estimates). The two copper SRMs are necessary because Analabs uses a different analytical protocol to assay all samples >2% Cu. The split core, reject, and pulp duplicates are used to monitor precision at the various stages of sample preparation. The field blank can indicate sample contamination or sample mix-ups, and the SRM is used to monitor accuracy of the assay results. The SRMs are prepared from material of varying matrices and grades to formulate bulk homogenous material. Ten samples of this material are then sent to each of at least seven international testing laboratories. The resulting assay data are analyzed statistically to determine a representative mean value and standard deviation necessary for setting acceptance/rejection tolerance limits. Blank samples are also subjected to a round-robin program to ensure the material is barren of any of the grade elements before they are used for monitoring contamination. A total of 33 different reference materials have been developed and used to monitor the assaying of six different ore types made up of varying combinations of chalcopyrite, bornite, primary and supergene chalcocite, enargite, covellite, and molybdenite. Split core samples are prepared according to the following protocol: - The entire sample is crushed to 90% minus 2 to 3 mm. - A 1 kg subsample is riffle split from the crushed minus 2 to 3 mm sample and pulverized to 90% minus 75 (macro)m (200 mesh). - A 150 g subsample is split off by taking multiple scoops from the pulverized 75 (macro)m sample. DECEMBER 2003 PAGE 13-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA - The 150 g subsample is placed in a kraft envelope, sealed with a folded wire or glued top, and prepared for shipping. All equipment is flushed with barren material and blasted with compressed air between each sampling procedure. Screen tests are done on crushed and pulverized material from one sample taken from each batch of 15 or 16 samples to ensure that sample preparation specifications are being met. Prepared samples are placed in wooden shipping boxes, locked, sealed with tamper-proof tags, and shipped to Ulaanbaatar for assaying. Sample shipment details are provided to the assaying facility both electronically and as paper hard copy accompanying each shipment. The assaying facility then electronically confirms sample receipt, the state of the tamper-proof tags, and assigned laboratory report numbers back to site. 13.2 ASSAY METHOD All samples are routinely assayed for gold, copper, and molybdenum. Gold is determined using a 30 g fire assay fusion, cupelled to obtain a bead, and digested with Aqua Regia, followed by an AAS finish. Copper and molybdenum are determined by acid digestion of a 5 g subsample, followed by an AAS finish. Samples are digested with nitric, hydrochloric, hydrofluoric, and perchloric acids to dryness before being leached with hydrochloric acid to dissolve soluble salts and made to volume with distilled water. 13.3 QA/QC PROGRAM Assay results are provided to Ivanhoe in electronic format and as paper certificates. Upon receipt of assay results, values for SRMs and field blanks are tabulated and compared to the established round-robin program results. The following batch acceptance/rejection criteria are applied: - automatic batch failure if the SRM result is greater than the round-robin limit of three standard deviations - automatic batch failure if two consecutive SRM results are greater than two standard deviations on the same side of the mean - automatic batch failure if the field blank result is over a pre-set limit of 0.06 g/t Au or 0.06% Cu. If a batch fails, it is re-assayed until it passes. Override allowances are made for barren batches. Batch pass/failure data are tabulated on an ongoing basis, and charts of individual reference material values with respect to round-robin tolerance limits are maintained. DECEMBER 2003 PAGE 13-2 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA Laboratory check assays are conducted at the rate of one per batch of 20 samples, using the same QA/QC criteria as routine assays. 13.3.1 STANDARDS PERFORMANCE Ivanhoe strictly monitors the performance of the SRM samples as the assay results arrive at site. Since the inception of the QA/QC program in March 2002, the ability of the laboratories to return assay values in the prescribed SRM ranges has improved. The failure rate appears to oscillate between 2% and 10% (although if failed SRMs with gold values close to the detection limit are excluded at the higher rates, the failure rate commonly is lower; Figure 13-1). Charts of the individual SRMs are included in Appendix B. All samples are given a "fail" flag as a default entry in the project database. Each sample is re-assigned a date-based "pass" flag when assays have passed acceptance criteria. At the data cutoff date of 1 November 2003, only a very small number of assayed samples still had the "fail" flag (less than 1% of total Hugo assays). The relative uncertainty introduced to the Hugo mineral resource estimate by using this very small number of temporarily failed samples should be very low. FIGURE 13-1: SRM FAILURE CHART [FIGURE] The SRM database compiled for Standard 9 onwards now includes a tag for the deposit area. Most of the SRMs used after March 2003 were applied almost exclusively to Hugo. Several SRMs that were widely used were edited to exclude non-Hugo samples, and then charts for Hugo samples only were re-compiled. DECEMBER 2003 PAGE 13-3 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 13.3.2 BLANK SAMPLE PERFORMANCE Assay performance of field blanks is presented in Figures 13-2 to 13-4 for gold, copper, and molybdenum. In these figures, the lower blue horizontal line represents the analytical detection limit (ADL) of the respective metal, and the upper yellow horizontal line represents the analytical rejection threshold (ART). The gold ADL is 0.01 g/t with an ART of 0.06 g/t; copper ADL was initially 0.01% and is now 0.001% with an ART of 0.06%; and molybdenum ADL was initially 5 ppm and is now 10 ppm with an ART of 20 ppm. The results show a low incidence of contamination and a few cases of sample mix-ups, which were investigated at site and corrected. FIGURE 13-2: BLANK SAMPLE RESULTS FOR GOLD [FIGURE] DECEMBER 2003 PAGE 13-4 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 13-3: BLANK SAMPLE RESULTS FOR COPPER [FIGURE] DECEMBER 2003 PAGE 13-5 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 13-4: BLANK SAMPLE RESULTS FOR MOLYBDENUM [FIGURE] 13.3.3 DUPLICATES PERFORMANCE The QA/QC program currently uses four different types of duplicate samples: core, coarse reject, pulp, and laboratory check pulps (samples sent to an umpire lab). CORE, COARSE REJECT, AND PULP DUPLICATES AMEC has reviewed the core, coarse reject, and pulp duplicate samples for the Hugo deposit. The pulp duplicates reproduce well only for copper values. The duplicate data are shown as relative difference charts in Figures 13-5 to 13-7. Pulp and reject duplicate types for each metal show similar high variability to good reproducibility trends from near detection values towards higher grade values. Gold core and, to a lesser extent, molybdenum core duplicate patterns generally define such a trend, but the persistent higher variability in this duplicate type indicates sample heterogeneity due to coarse grains (gold) or possible fracture or narrow veinlet focussed mineralization. Patterns for all metals are symmetric about zero, suggesting no bias in the assay process. DECEMBER 2003 PAGE 13-6 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 13-5: RELATIVE DIFFERENCE SCATTER PLOT, HUGO DUPLICATE SAMPLES - COPPER (%) [FIGURE] FIGURE 13-6: RELATIVE DIFFERENCE SCATTER PLOT, HUGO DUPLICATE SAMPLES - GOLD (G/T) [FIGURE] DECEMBER 2003 PAGE 13-7 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 13-7: RELATIVE DIFFERENCE SCATTER PLOT, HUGO DUPLICATE SAMPLES - MOLYBDENUM (PPM) [FIGURE] AMEC also evaluated the absolute percent relative difference for duplicate pairs against the percentile ranking of the grade in the sample population. For the 90th percentile of the population, a maximum difference of 10% is recommended for the pulp duplicates and 20% for the coarse reject duplicates because these duplicate types can be controlled by the subsampling protocol. The same criteria do not apply to core duplicates because these differences cannot be controlled by the subsampling protocol; however, the heterogeneity of the mineralization ideally would allow the difference to be less than 30%. Table 13-1 summarizes the results of these analyses for each type of sample. The core duplicates are above the ideal value of 30% for gold samples, whereas the coarse reject duplicates reproduce well for all elements. TABLE 13-1: PERCENT DIFFERENCE AT THE 90TH POPULATION PERCENTILE (% DIFF) OF DUPLICATE SAMPLE ANALYSES, HUGO DEPOSIT, OYU TOLGOI
CU AU MO -------------- ------------- ---------------- DUPLICATE TYPE % DIFF. LIMIT NO. %DIFF. NO. % DIFF. NO. % DIFF. ===================================================================================== Core 30 1,254 25 195 50 1,254 25 Coarse Reject 20 611 9 97 20 117 20 Pulp 10 591 5 108 20 591 15
DECEMBER 2003 PAGE 13-8 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA One of the contributing factors to the poor performance of core and pulp duplicates is that the data included in the charts are limited to values above 20 times the analytical detection limit. This filter is sensitive to metals that typically have a large number of low values and leaves few data points for the analysis (i.e., molybdenum and, to a lesser degree, gold values). Gold pulp duplicates also do not reproduce as well because a small proportion of the elevated values coincides with a coarser grain gold size, which likely results in gold grain liberation during pulverization. Grain size studies currently being done by Ivanhoe staff to better understand the variation and distribution of the various size fractions indicate that only a small number of samples contain a minor proportion of coarser gold and that no changes are required to the sampling protocol. AMEC supports this conclusion. 13.3.4 SPECIFIC GRAVITY PROGRAM Samples for specific gravity determination are taken at approximately 10 m intervals per drill hole and tabulated by rock type. The specific gravity for non-porous samples (the most common type) is calculated using the weights of representative samples in water (W2) and in air (W1). The bulk density is calculated by W1/(W1-W2). AMEC believes this method to be appropriate for the non-porous mineralized units and barren dykes. Less-common porous samples are dried and then coated with paraffin before weighing. Allowance is made for the weight and volume of the paraffin when calculating the specific gravity. DECEMBER 2003 PAGE 13-9 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 14.0 DATA VERIFICATION As a test of data integrity, the data used to estimate the November 2003 Hugo mineral resource were checked several ways. AMEC conducted a 5% check of randomly chosen drill holes; copper, gold, and molybdenum values were checked against the original electronic assay certificates. Only rare differences were found, in less than 0.1% of data reviewed. These differences are due to sample mix-ups at site that have since been corrected in the database. Collar coordinates were checked against the database entries. No discrepancies were observed. AMEC also checked the down-hole survey data. Camera shots and RANGER output were read for the check drill holes and compared to those stored in the resource database. Two errors with minor differences in the azimuth and dip readings were found. These error types should have minimal impact on the resource estimate work. Ivanhoe has reviewed the method of survey data transfer into its master database and has updated the protocols that govern the entry of this type of data. AMEC reviewed the new protocols and agrees with them. Full implementation, including audits on older data, should be completed by year end. AMEC concludes that the assay and survey database used for the Hugo deposit mineral resource estimation is sufficiently free of error to be adequate for resource estimation. DECEMBER 2003 PAGE 14-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 15.0 ADJACENT PROPERTIES Adjacent properties are not relevant for the review of the Hugo deposit, Oyu Tolgoi project. DECEMBER 2003 PAGE 15-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING Results of initial metallurgical test work on Oyu Tolgoi mineralized material are documented in Cargill (2002). Additional work has focussed on gathering suitable sample material (PQ size drilling) for ongoing test work. Review of those test results and assessment of metallurgical process alternatives are currently being done as part of a scoping or preliminary assessment study of the project. DECEMBER 2003 PAGE 16-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES The mineral resource estimates for the Hugo deposit were calculated under the direction of Dr. Harry Parker, Ch. P.Geo., and Dr. Stephen Juras, P.Geo. The estimates were made from three-dimensional (3D) block models utilizing commercial mine planning software (MineSight(R)). Projects limits are in truncated UTM coordinates. Cell size was 20 m east x 20 m north x 15 m high. 17.1 GEOLOGIC MODELS Ongoing delineation since the July 2003 Technical Report continued to define an auriferous, copper-rich zone hosted in augite basalt and quartz monzodiorite. This contrasts to the original, more southerly, gold-poor, ignimbrite- and augite basalt-hosted mineralization. Because of the distinct differences between the two areas, Ivanhoe decided to divide the Hugo deposit into Hugo South (HS) and Hugo North (HN). The selected dividing line was 4766300 N, a location marked by the thinning and locally discontinuous nature of the high-grade copper mineralization (defined by greater than 2% copper) (Figure 17-1). AMEC concurs with this decision. Four lithologic groups affect the estimation of grade and have been modelled: ignimbrite (Ign), augite basalt (Va), quartz monzodiorite, and unmineralized dykes. The mineralized host rocks are strongly altered from their original textures, making ordinary logging difficult. Ivanhoe constructed 3D geologic shapes, consisting of the augite basalt-ignimbrite contact, the quartz monzodiorite surface, and the barren dykes (biotite granodiorite, rhyolite, and basalt). The shapes honoured the drill data and appear to be well constructed. Ivanhoe created 3D mineralized shells, or envelopes, based on copper grades of 0.6%, 1.0%, and 2.0%. An additional mineralized shell based on gold was constructed in Hugo North. This shell was defined visually in each hole by the location where gold grades increased markedly within the 1% and 2% copper shells. This value was around 0.3 g/t Au. AMEC checked the shapes for interpretational consistency in section and plan, and found them to have been properly constructed. The south zone grade shells are elongated in the NNE azimuth, dipping moderately steeply to the east with little or no plunge. The north zone shells trend N to NNW, with moderate to steep easterly dips and a shallow to moderate northerly plunge. The mineralized body appears pipe-like, with the copper mineralization decreasing radially from the core outward. The grade gradient along the top of the shells is extremely high and can increase 10 times within 6 m from background to 0.6% Cu. The lower half of the shells have a much lower gradient, and grade changes over a greater depth. DECEMBER 2003 PAGE 17-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-1: 2% CU SHELL, HUGO SOUTH AND HUGO NORTH DEPOSITS (NEAR VERTICAL 3D PERSPECTIVE) [FIGURE] The solids and surfaces were used to code the drill hole data and block model cells. A set of cross-sections with drill holes colour-coded by domain, and with blocks coloured similarly, were plotted and inspected to determine the proper assignment of domains. 17.2 EXPLORATORY DATA ANALYSIS One of the purposes of data analysis is to determine if it is necessary to divide the deposit into interpolation domains. The premise is that each interpolation domain is then statistically unique, which prevents statistically different grades from becoming mixed during estimation. On the other hand, if the data are not actually statistically unique, then imposing domain boundaries may introduce local inaccuracies into the estimated block grades. Sometimes geologic models containing such variables as mineral types, lithology, intrusive domain, and alteration types may be useful for the purposes of the resource model used for mining (e.g., density or hardness differences by lithology) or metallurgy (e.g., recovery changes with mineral type), but they may not be as useful for the purpose of interpolating block grades. The restriction of estimating block grades by geological units is generally recommended under the following circumstances: DECEMBER 2003 PAGE 17-2 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA - The average grade within one domain is significantly different from the average grade in the neighbouring domain. - The change in grade across a domain boundary is very sharp or distinct. Mineralized domains were created based on geological criteria and marked changes in mineralization intensity. In Hugo South, the copper grade shells were "split" across the ignimbrite (Ign)-augite basalt (Va) contact and the quartz monzodiorite surface-Va contact. The copper shells in Hugo North were split at the quartz monzodiorite surface (Qmd). These are listed in Table 17-1. Other geologic attributes such as alteration have been investigated previously, particularly at the other Oyu Tolgoi deposits, with no clear-cut association having been found relative to grade. AMEC recommends that other geologic attributes be reviewed periodically for potential grade controls as information from drilling increases. TABLE 17-1: DOMAIN DESCRIPTIONS AND CODES
DOMAIN DESCRIPTION DOMAIN CODE ==================================================================================== Mineralized Shells or Envelopes - Hugo South (Zone code = 7) 2.0% Cu Shell, Ignimbrite 1 2.0% Cu Shell, Augite Basalt Hosted 2 1.0% Cu Shell, Ignimbrite Hosted 4 1.0% Cu Shell, Augite Basalt Hosted 5 0.6% Cu Shell, Ignimbrite Hosted 6 0.6% Cu Shell, Augite Basalt Hosted 7 Background <0.6% Cu 10 Qmd host in any shell (secondary code) 14 ------------------------------------------------------------------------------------ Mineralized Shells or Envelopes - Hugo North (Zone code = 8) 2.0% Cu Shell, Qmd Hosted 1 2.0% Cu Shell, Augite Basalt Hosted 2 Au Shell, 2.0% +/- 1.0% Cu Shells 3 1.0% Cu Shell, Qmd Hosted 4 1.0% Cu Shell, Augite Basalt Hosted 5 0.6% Cu Shell, Qmd Hosted 6 0.6% Cu Shell, Augite Basalt Hosted 7 Background <0.6% Cu 10 ------------------------------------------------------------------------------------ Post-mineral Dykes Rhyolite Dykes 16 Granodiorite Dykes 18 Basalt Dykes 19
These mineralized domains were reviewed to determine appropriate estimation or grade interpolation domains. Several different procedures were applied to the data to discover whether statistically distinct domains could be constructed using the available geological variables. Descriptive statistics, box plots, contact plots, and histograms have been completed for copper, gold, and molybdenum. Results obtained were used to guide the construction of the block model and the development of estimation plans. DECEMBER 2003 PAGE 17-3 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA The data analyses were conducted on composited assay data. Assays were composited into 5 m down-hole composites. The compositing honoured the domain zone by breaking the composites on the domain code values. AMEC reviewed the compositing process and found it to have been performed correctly. In Hugo South, the composite data received a secondary tag to denote whether the shell fell below the Qmd surface. 17.2.1 BOX PLOTS Box plots show the frequency distribution of the composite data by means of a graphical summary. The vertical axis of the plot gives the range of values for the particular assay (copper, gold, or molybdenum). The "box" shows that portion of the sample data that falls between the 25th and the 75th percentiles. In other words, the box captures the half of the data that falls in the middle of the distribution. The horizontal line that appears in the box represents the median of the data or that value. The mean or average of the data is shown with a dot. The vertical lines that extend away from the box reach to the minimum toward the bottom of the plot and to the maximum value toward the top. Values for the statistics displayed by the box plot are listed below each plot. Copper box plots were created for each zone and are shown in Figure 17-2. Both zones show copper grades increasing from background to the higher-grade copper shell and support the premise that mineralization decreases radially from a higher-grade core. There is little difference in statistics between the Ign and Va areas in the South deposit and the Qmd and Va domains in the North. The Au shell in Hugo North does contain data with distinctively higher Cu grades. The dykes are very low in copper grade and for all intents are treated as unmineralized. The gold data for Hugo South and North deposits are displayed in Figure 17-3. Both zones show a distinct Qmd-associated gold population that transcends the copper grade shell boundaries, including background. This finding is consistent with the observation of Ivanhoe site geological staff who believe that a Qmd-gold association is present and increases with depth. Additionally, the South deposit shows that the Ign domains outside the highest Cu grade areas contain the lowest gold concentrations. The highest grades in both deposits are found in the Hugo North Au shell, which also defines a distinct population. 17.2.2 HISTOGRAMS AND GRADE TREND PLOTS Histograms show the frequency distribution in a different way from the box plots. Grades are grouped into bins, and a vertical bar on the graph shows the relative frequency of each bin. Histograms are used to show the differences in the copper, gold, and molybdenum frequency distribution by increasing grade (Appendix C). These data are summarized by deposit in Tables 17-2 and 17-3. DECEMBER 2003 PAGE 17-4 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-2: HUGO DEPOSIT COPPER COMPOSITE DATA BOX PLOTS (TOP PLOT = HUGO SOUTH; BOTTOM PLOT = HUGO NORTH) [FIGURE] [FIGURE] DECEMBER 2003 PAGE 17-5 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-3: HUGO DEPOSIT GOLD COMPOSITE DATA BOX PLOTS (TOP PLOT = HUGO SOUTH; BOTTOM PLOT = HUGO NORTH) [FIGURE] [FIGURE] DECEMBER 2003 PAGE 17-6 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA TABLE 17-2: STATISTICAL SUMMARY OF COMPOSITE AND MODEL DATA, HUGO SOUTH DEPOSIT
%CU SHELL N M CV MIN Q 25 Q 50 Q 75 MAX % - % + ==================================================================================================================== CU (wt %) Composites 2.0% 537 2.85 0.47 0.01 2.08 2.60 3.43 12.82 20 - 1.0% 1,735 1.29 0.34 0.01 1.06 1.27 1.51 4.60 20 3 0.6% 2,026 0.78 0.37 0.00 0.63 0.77 0.92 2.86 21 18 Bkgd 3,012 0.28 0.90 0.00 0.06 0.23 0.44 2.42 - 10 ------------------------------------------------------------------------------------------------ Model - NN 2.0% 2,208 2.72 0.44 0.01 2.00 2.51 3.29 9.41 23 - 1.0% 10,344 1.29 0.32 0.00 1.07 1.28 1.51 4.32 4 4 0.6% 17,929 0.77 0.33 0.00 0.62 0.76 0.92 2.50 22 16 Bkgd 99,250 0.22 0.92 0.00 0.02 0.19 0.39 1.82 - 2 ------------------------------------------------------------------------------------------------ Model - OK 2.0% 2,208 2.67 0.23 0.73 2.24 2.54 3.03 5.74 10 - 1.0% 10,344 1.27 0.14 0.53 1.15 1.26 1.39 2.45 0 0 0.6% 17,929 0.76 0.15 0.17 0.68 0.76 0.84 1.47 10 2 Bkgd 99,250 0.23 0.57 0.01 0.13 0.23 0.33 1.20 - 1 ------------------------------------------------------------------------------------------------ AU (g/t) Composites 2.0% 537 0.20 1.12 0.00 0.07 0.13 0.26 3.11 - - 1.0% 1,735 0.05 0.94 0.00 0.02 0.04 0.06 0.76 - - 0.6% VQ 1,311 0.12 1.82 0.00 0.03 0.05 0.11 3.91 - - 0.6% IG 715 0.04 0.85 0.0 0.02 0.03 0.05 0.28 - - Bkgd V+IG 2,588 0.05 4.66 0.00 0.01 0.03 0.05 10.72 - - Bkgd Q 424 0.14 1.40 1.40 0.00 0.08 0.15 1.99 - - ------------------------------------------------------------------------------------------------ Model - NN 2.0% 2,208 0.20 0.93 0.01 0.07 0.13 0.26 1.11 - - 1.0% 10,344 0.05 1.00 0.00 0.02 0.04 0.07 0.76 - - 0.6% VQ 11,556 0.15 1.36 0.01 0.03 0.06 0.16 1.69 - - 0.6% IG 6,310 0.04 0.79 0.01 0.02 0.03 0.05 0.28 - - Bkgd V+IG 73,380 0.04 1.47 0.00 0.01 0.02 0.05 0.85 - - Bkgd Q 20,661 0.10 1.19 0.00 0.03 0.06 0.13 1.30 - - ------------------------------------------------------------------------------------------------ Model - OK 2.0% 2,208 0.19 0.47 0.03 0.12 0.17 0.24 0.80 - - 1.0% 10,344 0.05 0.49 0.01 0.03 0.05 0.07 0.22 - - 0.6% VQ 11,556 0.13 0.98 0.01 0.04 0.07 0.19 0.99 - - 0.6% IG 6,310 0.04 0.50 0.01 0.02 0.03 0.05 0.15 - - Bkgd V+IG 73,380 0.03 1.05 0.00 0.01 0.03 0.04 0.68 - - Bkgd Q 20,661 0.10 0.58 0.00 0.06 0.10 0.13 0.50 - - ------------------------------------------------------------------------------------------------ MO (ppm) Composites 2.0% 537 49 1.13 5 19 36 62 720 - - 1.0% 1,735 52 1.26 5 21 40 65 1,800 - - 0.6% 2,026 81 1.10 5 35 61 102 2,625 - - Bkgd 715 74 0.85 5 32 61 94 465 - - ------------------------------------------------------------------------------------------------ Model - NN 2.0% 2,208 45 1.24 5 17 30 51 600 - - 1.0% 10,344 50 1.05 5 20 38 64 1,021 - - 0.6% 17,929 77 0.90 5 34 55 95 1,021 - - Bkgd 99,250 41 1.41 0 5 21 55 1,021 - - ------------------------------------------------------------------------------------------------ Model - OK 2.0% 2,208 43 0.49 8 30 40 52 218 - - 1.0% 10,344 49 0.48 9 33 46 61 577 - - 0.6% 17,929 81 0.50 11 51 73 102 1,021 - - Bkgd 99,250 45 0.77 0 19 37 64 400 - -
Notes: n = number of samples; m = mean of data CV = coefficient of variation (standard deviation / mean) min = minimum data value; max = maximum data value q 25, q 50, q 75 = quartile values; q 50 also is the median value % + = percent above Cu shell threshold (Cu values only) % - = percent below Cu shell threshold (Cu values only) Bkgd = Background domain vq = Va + Qmd areas; Ig = Ign area; v+Ig = Va + Ign areas; q = Qmd area DECEMBER 2003 PAGE 17-7 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA TABLE 17-3: STATISTICAL SUMMARY OF COMPOSITE AND MODEL DATA, HUGO NORTH DEPOSIT
%CU SHELL N M CV MIN Q 25 Q 50 Q 75 MAX % - % + ==================================================================================================================== CU (wt %) Composites Au 364 3.31 0.51 0.01 2.15 3.18 4.25 17.4 22 - 2.0% 397 2.72 0.40 0.01 2.10 2.64 3.37 7.28 20 - 1.0% 895 1.28 0.37 0.01 1.01 1.28 1.57 4.83 23 5 0.6% 500 0.76 0.46 0.01 0.59 0.76 0.93 2.66 25 20 Bkgd 781 0.27 0.95 0.00 0.07 0.20 0.42 1.60 - 9 ------------------------------------------------------------------------------------------------ Model - NN Au 3,146 3.23 0.43 0.02 2.37 3.24 3.87 17.4 12 - 2.0% 4,190 2.54 0.47 0.00 1.85 2.60 3.34 7.28 30 - 1.0% 12,645 1.30 0.37 0.1 1.02 1.31 1.61 4.83 7 5 0.6% 9,648 0.77 0.38 0.01 0.63 0.80 0.99 2.66 21 24 Bkgd 38,059 0.19 1.11 0.00 0.00 0.10 0.34 1.60 - 1 ------------------------------------------------------------------------------------------------ Model - OK Au 3,146 3.19 0.27 0.93 2.55 3.15 3.79 8.86 5 - 2.0% 4,190 2.61 0.25 0.40 2.19 2.56 3.05 5.03 15 - 1.0% 12,645 1.29 0.15 0.25 1.16 1.29 1.42 2.31 0 0 0.6% 9,648 0.73 0.22 0.09 0.63 0.75 0.83 1.15 20 5 Bkgd 38,059 0.17 0.78 0.01 0.05 0.15 0.26 0.94 - 1 -------------------------------------------------------------------------------------------------------------------- AU (g/t) Composites Au 364 1.18 0.91 0.01 0.46 0.87 1.51 8.11 - - 2.0% 397 0.22 1.35 0.01 0.10 0.17 0.28 5.26 - - 1.0% 895 0.14 0.96 0.00 0.04 0.11 0.19 1.58 - - 0.6% 500 0.14 1.11 0.00 0.03 0.10 0.21 1.37 - - Bkgd V+IG 636 0.04 2.99 0.00 0.01 0.02 0.03 2.50 - - Bkgd Q 145 0.13 1.04 1.04 0.05 0.09 0.17 0.91 - - ------------------------------------------------------------------------------------------------ Model - NN Au 3,146 1.07 0.97 0.01 0.38 0.74 1.33 8.11 - - 2.0% 4,190 0.19 0.86 0.00 0.09 0.15 0.27 1.34 - - 1.0% 12,617 0.15 1.35 0.01 0.04 0.11 0.18 2.82 - - 0.6% 9,648 0.14 0.91 0.01 0.04 0.10 0.22 1.46 - - Bkgd V+IG 22,219 0.02 1.68 0.00 0.00 0.01 0.03 1.00 - - Bkgd Q 10,917 0.11 0.91 0.00 0.03 0.10 0.16 0.86 - - ------------------------------------------------------------------------------------------------ Model - OK Au 3,146 1.15 0.38 0.30 0.82 1.11 1.40 4.13 - - 2.0% 4,190 0.20 0.30 0.05 0.16 0.19 0.24 0.47 - - 1.0% 12,617 0.15 1.11 0.02 0.07 0.12 0.18 2.06 - - 0.6% 9,648 0.14 0.76 0.01 0.05 0.11 0.20 0.86 - - Bkgd V+IG 22,219 0.02 1.24 0.00 0.01 0.01 0.02 0.39 - - Bkgd Q 10,917 0.09 0.57 0.00 0.05 0.08 0.12 0.36 - - -------------------------------------------------------------------------------------------------------------------- MO (ppm) Composites 2.0%+Au 761 29 1.55 5 7 15 33 610 - - 1.0% 895 54 1.06 5 17 33 71 703 - - 0.6% 500 48 1.00 5 15 30 63 336 - - Bkgd 781 37 1.21 5 8 23 51 632 - - ------------------------------------------------------------------------------------------------ Model - NN 2.0%+Au 7,336 28 1.44 0 7 16 31 610 - - 1.0% 12,645 48 1.01 5 13 30 66 384 - - 0.6% 9,648 44 0.83 5 17 32 60 317 - - Bkgd 38,059 26 1.41 0 0 11 38 250 - - ------------------------------------------------------------------------------------------------ Model - OK 2.0%+Au 7,336 27 0.65 3 15 25 35 328 - - 1.0% 12,645 51 0.67 5 26 39 69 197 - - 0.6% 9,648 45 0.44 9 30 41 55 145 - - Bkgd 38,059 24 0.84 0 6 19 38 143 - -
Notes: n = number of samples; m = mean of data CV = coefficient of variation (standard deviation / mean) min = minimum data value; max = maximum data value q 25, q 50, q 75 = quartile values; q 50 also is the median value % + = percent above Cu shell threshold (Cu values only) % - = percent below Cu shell threshold (Cu values only) Au = gold zone Bkgd = Background domain v+Ig = Va + Ign areas; q = Qmd area DECEMBER 2003 PAGE 17-8 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA Copper grade behaves as expected between grade shells. No significant "within shell" variations due to lithology were observed. Distributions display trends on log probability plots that reflect multiple grade populations (due in part to the grade shell exercise). A copper grade trend plot relative to northing (Figure 17-4) shows a distinct drop in average copper grade at about the designated South-North deposit divide. This plot also shows higher average grades in Hugo North. All coefficient of variation (CV) values are quite low (0.3 to 0.5). Gold grade distributions show typical log normal trends in all domains. A gold grade trend plot relative to northing (Figure 17-5) shows a marked increase northward, beginning about 400 m north of the Hugo South-North boundary, and coincides with the start of the Au shell. CV values are around 1, with those in the respective Qmd areas being the lowest. Molybdenum grades are generally low. Some patterns are observed: - A weak Qmd-Mo association exists in Hugo North, but not in Hugo South. - Generally, molybdenum trends are the reverse of copper, with the richest Cu areas being poorest in Mo concentrations. - Hugo South contains higher overall averages than in the North. This is shown well on a molybdenum grade trend plot relative to northing (Figure 17-6). - Distributions are strongly lognormal. - CV values are about 1 in areas with the highest averages, 1.2 and higher elsewhere. FIGURE 17-4: CU COMPOSITE DATA SCATTER PLOT, HUGO NORTH AND SOUTH DEPOSITS (1% + 2% + AU SHELLS) [FIGURE] DECEMBER 2003 PAGE 17-9 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-5: AU COMPOSITE DATA SCATTER PLOT, HUGO NORTH AND SOUTH DEPOSITS (1% + 2% + AU SHELLS) [FIGURE] FIGURE 17-6: MO COMPOSITE DATA SCATTER PLOT, HUGO NORTH AND SOUTH DEPOSITS (1% + 2% + AU SHELLS) [FIGURE] 17.2.3 GRADE SCATTERPLOTS Copper versus gold scatter plots were used to determine what degree of correlation exists between the two grades and if trends are evident. Various Au versus Cu composite data scatter plots are shown in Figure 17-7. Mineralization within the 2% Cu shell and that hosted by Va or Qmd in the lower-grade shells appear to define an Au to Cu ratio of 1:10, with a smaller fraction displaying ratios of 1:4 or higher. Ign-hosted gold mineralization is depleted in gold values and is essentially uncorrelated with copper. This is illustrated best in the 0.6% Cu shell data for Hugo South. Conversely, mineralization in the Au shell of Hugo North shows good Au to Cu correlations over a range of ratios from 1:4 to 1:1. DECEMBER 2003 PAGE 17-10 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-7: Au VS. Cu COMPOSITE DATA SCATTER PLOTS FOR HUGO DEPOSIT [FIGURE] [FIGURE] [FIGURE] [FIGURE] DECEMBER 2003 PAGE 17-11 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 17.2.4 CONTACT PROFILES To study changes in grades across geologic boundaries, contact profiles of average grades are plotted at increasing distances from a boundary. If averages are fairly close to the same value near a boundary and then diverge as the distance from the contact increases, the particular boundary is probably not a grade constraint. In fact, if a hard boundary is imposed where grades tend to change gradually, grades may be overestimated on one side of the boundary and underestimated on the opposite side. If there is a distinct difference in the averages across a boundary, there is evidence that the boundary may be important in constraining the grade estimation. Contact plots were created form composite data for copper and gold grades. The changes in grade across each mineralized shell were studied; the plots are provided in Appendix C. Cu profiles behaved as expected across the shell boundaries. Distinct differences occur across each boundary. Au profiles are also distinct but less so. The differences are most marked for the respective 2% Cu shell domains relative to the grades in the 1% Cu shell. The Au shell in Hugo North shows distinct boundaries for Cu and Au relative to the rest of the material within the 2% Cu shell. The plots for the Au shell are shown in Figure 17-8. 17.2.5 ESTIMATION DOMAINS There is a strong trend to copper grade extending radially from the higher-grade core outward. Ordinary kriging does not behave well in conditions of non-stationarity (when average grade is not constant in the local neighbourhood of estimation). One way around the issue of stationarity is the use of grade shells, which divide the mineralization into similar, quasi-stationary domains. This method is particularly applicable when the drill density is sparse relative to observed gradients of composite grade values. Grades for blocks within the three Cu grade shells in each deposit or zone will be estimated with a hard boundary between the shells; only composites within the shell will be used to estimate blocks within the shell. Additionally, grades for blocks within the Au zone in Hugo North will be estimated with a hard boundary between the shells. The background estimation domain will use all composites outside of the three grade shells. For domains straddling the South-North divide, a soft boundary will be used; composites within a shell and within the respective search volume will be used to estimate blocks within that shell regardless of which zone the composites lie within. DECEMBER 2003 PAGE 17-12 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-8: Cu AND Au CONTACT PLOTS, Au SHELL VS. 2% Cu SHELL, HUGO NORTH DEPOSIT [FIGURE] [FIGURE] DECEMBER 2003 PAGE 17-13 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 17.3 EVALUATION OF EXTREME GRADES Extreme grades were examined for all grade items (copper, gold, and molybdenum), mainly by histograms and probability plots. Generally, the distributions do not indicate a problem with extreme grades for copper. Most of the capped grades for copper were therefore intended to remove outlier-type grades. For gold and molybdenum, capped grades were selected in domains with high coefficients of variation and/or where trends defined in the cumulative probability plots begin to become discontinuous. In the latter case, this generally occurred between the 98% to 99.5% level. Capped grades for the Hugo deposits are shown in Table 17-4. The capped grades were applied to the assay data prior to compositing. TABLE 17-4: HUGO CAPPING GRADES
ESTIMATION DOMAIN % Cu Au g/t Mo ppm ===================================================== HUGO SOUTH 2% Cu Shell 11 2 600 1% Cu Shell 5 2 1,100 0.6% Cu Shell 3 2 1,100 Background 3 1.5 1,100 Number of Assays Capped 18 21 14 ----------------------------------------------------- HUGO NORTH Au Shell - - - 2% Cu Shell - 3 - 1% Cu Shell - 2 600 0.6% Cu Shell - 0.8 - Background 2 1 400 Number of Assays Capped 2 16 3
Grades were further constrained during interpolation by using outlier restrictions on the composite data. This was done to locally control grade-smearing in areas of limited data. Minimal composites and model blocks were affected. Rationale for Cu was to restrict grades exceeding the shell threshold. Au was most problematic because, except for the Au zone, the gold grade distributions did not honour the Cu shells. Ideally, mineralized shells for gold would be better suited to control its interpolation, but the present data density precludes its use. AMEC recommends that the development of separate gold shells (those related to the Qmd, for example) be evaluated once the data density is sufficient (i.e., to Indicated Mineral Resource levels or higher). Mo grade was also restricted locally. Outlier grade levels are described in Section 17.6. 17.4 VARIOGRAPHY Variograms using the correlogram method were calculated for copper, gold, and molybdenum within each estimation domain. AMEC prefers to use a correlogram, rather DECEMBER 2003 PAGE 17-14 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA than the traditional variogram, because it is less sensitive to outliers and is normalized to the variance of data used for a given lag. The approach used to develop the correlogram models is to calculate a relatively large number of sample correlograms in several directions. Composite values were used to prepare the correlograms. Directional sample correlograms are calculated along horizontal azimuths of 0 degrees, 30 degrees, 60 degrees, 90 degrees, 120 degrees, 150 degrees, 180 degrees, 210 degrees, 240 degrees, 270 degrees, 300 degrees, and 330 degrees. For each azimuth, sample correlograms are also calculated at a dip of 30 degrees and 60 degrees down in addition to horizontally. Finally, a correlogram is calculated in the vertical direction. Using the 37 sample correlograms, an annealing algorithm determines the best-fit model. This model consists of a nugget effect; double-nested structure variance contributions; ranges for the variance contributions; and the model type (spherical type for this exercise). After fitting the variance parameters, the algorithm then fits an ellipsoid to the ranges from the directional models for each structure. The anisotropy in grade variation is given by the two ellipsoids. Variogram model parameters and orientation data of rotated variogram axes are shown in Tables 17-5 and 17-6, respectively. The correlograms are included in Appendix D. Correlograms in Hugo North mirrored the change in trend to north to northwesterly from the northeasterly trend in Hugo South. Both deposits showed consistent steep easterly dips. Plunges were flat in the South (mirroring the distribution of mineralized intercepts) and about 20 degrees to 30 degrees to the north in the North deposit (again supported by the trend in mineralized intercepts). Ranges were longest along strike of the respective trend for Cu and a mixture of along-the-trend and down-the-dip of the trend for Au. Ranges for the first structure in all metals tend to be less than 75 m. The ranges in the second structure tend to be less than 200 m. Variograms for copper and gold are well behaved in the principal drilling directions: azimuths 0(degree), 150 degrees, and 330 degrees, all dipping -60 degrees. The quality of molybdenum variograms ranges from acceptable to poor, but given that molybdenum is low grade and not economic, it is not currently a concern. DECEMBER 2003 PAGE 17-15 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA TABLE 17-5: Cu, Au, AND Mo VARIOGRAM PARAMETERS FOR HUGO SOUTH AND NORTH DEPOSITS
NUGGET SILLS ROTATION ANGLES RANGES NUGGET SILLS ---------------------------------- ------------------------ Co C1 C2 Z1 X1' Y1" Z2 X2' Y2" Z1 X1' Y1" Z2 X2' Y2" ======================================================================================================== Cu - SOUTH 2% Shell 0.100 0.381 0.519 -10 -22 54 19 111 32 23 10 54 217 22 50 1% Shell 0.400 0.400 0.200 -17 26 46 -49 50 16 31 12 53 80 33 15 0.6% Shell 0.400 0.378 0.222 40 13 39 79 90 -26 20 10 16 104 19 100 Background 0.210 0.300 0.490 29 -57 73 -47 -5 87 15 20 20 125 125 125 ------------------------------------------------------------------------------------------------------- Cu - NORTH 2% + Au Shells 0.370 0.227 0.403 16 86 57 -17 19 -13 65 150 25 46 74 300 1% + 0.6% Shells 0.477 0.261 0.263 -59 -29 1 20 -31 -4 218 25 126 50 150 300 Background 0.192 0.246 0.562 -62 -52 -34 -42 -36 -48 7 11 38 25 150 75 ------------------------------------------------------------------------------------------------------- Au - SOUTH 2% Shell 0.230 0.450 0.320 53 -43 52 90 63 -90 12 29 119 200 40 200 1% Shell 0.250 0.418 0.332 -48 -62 35 64 44 -9 10 23 29 150 150 150 0.6% Shell 0.010 0.489 0.501 -92 -27 15 -23 115 -52 10 65 42 150 150 150 Background 0.400 0.390 0.210 -87 -60 -40 79 44 -6 10 67 90 150 150 150 ------------------------------------------------------------------------------------------------------- Au - NORTH Au Shell 0.295 0.389 0.316 5 -73 -28 -72 0 -75 20 20 20 80 80 80 2% + 1% Shells 0.250 0.421 0.329 0 0 39 -28 13 9 20 40 40 150 80 150 1% + 0.6% Shells 0.300 0.208 0.492 -51 -7 -8 -39 9 -6 100 50 50 150 75 49 Background 0.350 0.404 0.246 -10 59 95 -70 59 -4 10 10 50 100 25 100 ------------------------------------------------------------------------------------------------------- Mo - SOUTH 2% Shell 0.390 0.324 0.286 5 -30 42 -16 -25 33 36 16 50 50 223 196 1% Shell 0.300 0.540 0.160 -7 9 54 44 16 -31 20 50 20 100 163 100 0.6% Shell 0.450 0.353 0.197 -19 9 72 -21 43 -116 30 75 35 75 150 75 Background 0.420 0.344 0.236 -28 95 55 -34 -19 61 30 10 29 400 210 200 ------------------------------------------------------------------------------------------------------- MO - NORTH 2% + 1% + Au Shells 0.100 0.300 0.600 -71 -35 5 1 -1 37 15 40 50 50 50 80 1% + 0.6% Shells 0.250 0.315 0.435 43 3 -24 -42 61 -20 50 20 30 70 114 103 Background 0.500 0.172 0.328 -10 -21 49 13 26 -65 25 50 30 120 80 60
Notes: Models are spherical. The first rotation is about Z, left hand rule is positive. The second rotation is about X', right hand rule is positive. The third rotation is about Y", left hand rule is positive. DECEMBER 2003 PAGE 17-16 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA TABLE 17-6: AZIMUTH AND DIP ANGLES OF ROTATED VARIOGRAM AXES, HUGO SOUTH AND NORTH DEPOSITS
AXIS AZIMUTH AXIS DIP ----------------------------------- ----------------------------- Z1 X1 Y1 Z2 X2 Y2 Z1 X1 Y1 Z2 X2 Y2 ========================================================= ============================= Cu - SOUTH 2% Shell 275 53 350 232 139 198 33 48 -22 -17 -11 69 1% Shell 230 98 343 151 53 311 39 40 26 38 10 50 0.6% Shell 294 140 40 232 142 78 50 37 13 0 0 90 Background 314 49 29 224 348 311 9 31 -57 3 84 -5 Cu - NORTH 2% + Au Shells 253 163 16 129 69 343 2 3 86 67 -12 19 1% + 0.6% Shells 298 30 301 28 112 20 61 1 -29 58 -4 -31 Background 339 56 298 20 81 318 31 -20 -52 33 -37 -36 Au - SOUTH 2% Shell 352 103 53 180 90 90 27 35 -43 0 -27 63 1% Shell 273 10 312 231 147 64 22 16 -62 46 -7 43 0.6% Shell 237 351 268 102 18 157 59 13 -27 -15 19 65 Background 317 39 273 250 165 79 23 -19 -60 45 -4 44 Au - NORTH Au Shell 34 121 5 18 19 288 15 -8 -73 15 -75 0 2% + 1% Shells 270 90 360 188 64 332 51 39 0 74 9 13 1% + 0.6% Shells 358 40 309 110 50 321 80 -8 -7 79 -6 9 Background 264 176 350 106 17 290 -3 30 60 31 -2 59 Mo - SOUTH 2% Shell 305 71 5 287 59 344 40 35 -30 50 2 -25 1% Shell 257 95 353 158 124 44 36 53 9 55 -30 16 0.6% Shell 248 98 341 51 303 339 18 70 9 -19 -42 43 Background 207 117 152 246 26 326 -3 -4 85 28 55 -19 Mo - NORTH 2% + 1% + Au Shells 280 16 289 273 91 1 55 4 -35 53 37 -1 1% + 0.6% Shells 139 132 43 115 30 318 66 -24 3 27 -10 61 Background 278 58 350 115 60 13 38 45 -21 22 -55 26
Notes: Azimuths are in degrees. Dips are positive up and negative down. DECEMBER 2003 PAGE 17-17 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 17.5 MODEL SET-UP The estimates were made from 3D block models utilizing commercial mine planning software (MineSight(R)). Project limits are shown in Table 17-7. Cell size was 20 m east x 20 m north x 15 m high. TABLE 17-7: HUGO DEPOSIT MODEL FRAMEWORK
DIRECTION MINIMUM MAXIMUM BLOCK SIZE (M) NUMBER OF BLOCKS ===================================================================== Easting 650,000 653,500 20 175 Northing 4,764,000 4,769,000 20 250 Elevation -505 1,430 15 129
Bulk density data were assigned to a unique MineSight(R) assay database file. These data were composited into 15 m fixed-length down-hole values to reflect the block model bench height. The block model framework has expanded since the one developed in July 2003 to include new drilling further to the north and at depth. The same solids and surfaces used to tag the composites were used to assign codes and ore percent to the block model. Domain codes were assigned by a simple majority. In the case of assigning dyke codes to the block model, a slightly higher percentage of 60% was necessary (based on the assumption that segregation into ore or waste is highly unlikely above this threshold, i.e., dykes assumed to represent zero grade waste cutting the mineralized rock). For the ore percent model, the default value was set to 100%. This value was modified in blocks that intersected dykes by subtracting the percentage of dyke from 100 (i.e., for model blocks wholly within a dyke shape, the ore percent value would be 0). This percentage was used in the resource tabulation procedure to properly account for mineralized material. Percent below topography was also calculated into the model blocks. 17.6 ESTIMATION The Hugo deposit estimation plans, or sets of parameters used for estimating blocks, were designed using a philosophy of restricting the number of samples for local estimation. AMEC has found this to be an effective method of reducing smoothing and producing estimates that match the Discrete Gaussian change-of-support model and ultimately the actual recovered grade-tonnage distributions. While local predictions based on the small number of samples are uncertain(1), this method can produce reliable estimates of the recovered tonnage and grade over the entire deposit, i.e., global grade-tonnage curves from the estimations are accurate predictors of the actual grade-tonnage curves. --------------------------- (1) Local grade estimates at the block-scale can be conditionally biased. Blocks estimated to be low grade will actually be higher grade and vice versa. Division of the deposits into domains prior to estimation reduces the impact of conditional bias. DECEMBER 2003 PAGE 17-18 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA Modelling consisted of grade interpolation by ordinary kriging. Only capped composite grades were selected. Nearest-neighbour grades were also estimated for validation purposes. The same composite sample selection neighbourhood was used for each estimation. Blocks and composites were matched on estimation domain. The search ellipsoids were oriented preferentially to the orientation of the Cu grade shells in each zone. For Hugo South, the long axis is 20 degrees east of north, with no plunge, and dips 55 degrees to the southeast. For Hugo North, the long axis of the ellipsoid is 10 degrees west of north, plunging 25 degrees north and dipping 55 degrees to the east. Search ranges were 300 m along the respective long axis, 200 m down the dip direction, and 200 m vertically. Block discretization is 4 x 4 x 3. A two-pass approach was instituted for interpolation within the grade shells. The first pass allowed a single hole to place a grade estimate in a block, while the second allowed a minimum of two holes from the same estimation domain. This approach was used to enable most blocks to receive a grade estimate within the shells, especially in the North. A single-pass, two-hole minimum rule was used in the background domains. All blocks received a minimum of three and maximum of four composites from a single drill hole (for the two-hole minimum pass). Maximum composite limits varied by metal: 9 for copper, 15 for gold, and 12 for molybdenum. Most interpolation runs implemented an outlier restriction to limit grade smearing in areas of limited data. The outlier distance was set to 50 m, or approximately half the drill hole spacing. The outlier grades for copper were 2.5% for the 1% shells, 1.3% in the 0.6% shells, and 0.6% in the background domain. Gold was a bit more complicated. Interpolation runs for Hugo South contained outlier gold grades of 1.5 g/t in the 2% shell; 0.35 g/t in the 1% shell; 0.30 g/t for Ign-hosted mineralization in the 0.6% shell and background domains; and 0.90 g/t and 0.60 g/t for Qmd-hosted material in the 0.6% shell and background domains, respectively. Hugo North outlier gold grades consisted of 1.0 g/t in the 2% shell (excluding the Au shell, which had no outlier restriction); 0.6 g/t in the 1% shell; 0.8 g/t in the 0.6% shell; and two outliers in the background domain -- 0.40 g/t in Qmd-hosted areas and 0.20 g/t for the remaining areas. AMEC believes that the need for local control by outlier restriction will greatly diminish as data density approaches that required to achieve a confidence level of Indicated Mineral Resource or higher. These parameters were based on the geological interpretation, data analyses, and variogram analyses. The number of composites used in estimating a model block grade followed a strategy that matched composite values and model blocks sharing the same ore code or domain. The minimum and maximum number of composites were adjusted for each grade item to incorporate an appropriate amount of grade smoothing. This was done by change-of-support analysis (Discrete Gaussian or Hermitian polynomial change-of-support method), as described below. Bulk density values were incorporated into the resource model by averaging composites. A maximum of six and minimum of two 15 m composites were used for the averaging. The DECEMBER 2003 PAGE 17-19 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA search was rectangular, measuring 200 m north x 200 m east x 50 m elevation. The assignment was constrained by matching composite values and model blocks that shared the same domain. In the event a block was not estimated, a default bulk density value of 2.78 was assigned. 17.6.1 VALIDATION INSPECTION OF ESTIMATION RUN FILES All interpolation scripts were printed, examined, and compared to the interpolation plan and variogram parameters. Any errors found were corrected, and the estimation was rerun. VISUAL INSPECTION AMEC completed a detailed visual validation of the Hugo deposit block model. The model was checked for proper coding of drill hole intervals and block model cells, in both section and plan. Coding was found to be properly done. Grade interpolation was examined relative to drill hole composite values by inspecting sections and plans. The checks showed good agreement between drill hole composite values and model cell values. The hard boundaries between grade shells appear to have constrained grades to their respective estimation domains. The addition of an outlier restriction reduced a significant amount of grade smearing, as did adjusting domains of improperly assigned assays. Examples of representative sections and plans containing block model grades, drill hole composite values, and domain outlines are included in Appendix E. MODEL CHECK FOR CHANGE-OF-SUPPORT An independent check on the smoothing in the estimates was made using the Discrete Gaussian or Hermitian polynominal change-of-support method described by Journel and Huijbregts (Mining Geostatistics, Academic Press, 1978). The distribution of hypothetical block grades derived by this method is compared to the estimated model grade distribution by means of grade-tonnage curves. The grade-tonnage curves allow comparison of the histograms of the two grade distributions in a format familiar to mining. If the estimation procedure has adequately predicted grades for the selected block size, then the grade-tonnage curves should match closely. If the curves diverge significantly, then there is a problem with the estimated resource. This method uses the "declustered" distribution of composite grades from a nearest-neighbour or polygonal model to predict the distribution of grades in blocks. In this case, the blocks used in the model are 20 m x 20 m x 15 m. The unadjusted polygonal model assumes much more selectivity for ore and waste than is actually possible in mining practice, since many sample-sized volumes are averaged together within a block. This means that part of the sample-sized volumes in the block may be ore (above the mining cutoff) and part may be waste. Hence, the distribution of the grade of the blocks is not likely to resemble the distribution of grades from composite samples derived from the DECEMBER 2003 PAGE 17-20 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA polygonal estimate. The method assumes that the distribution of the blocks will become more symmetric as the variance of the block distribution is reduced, i.e., as the mining blocks become bigger. The histogram for the blocks is derived from two calculations: - the block-to-block variance (sometimes referred to in statistics as the between block variance), which is calculated by subtracting the average value of the variogram within a block from the variance for composite samples (the sill of the variogram) - the frequency distribution for the composite grades transformed by means of hermite polynomials (Herco: hermite correction) into a less-skewed distribution with the same mean as the declustered grade distribution and with the block-to-block variance of the grades. The distribution of hypothetical block grades derived by the Herco method is then compared to the estimated grade distribution to be validated by means of grade-tonnage curves. The distribution of calculated 20 m x 20 m x 15 m block grades for copper in the main domains of Hugo South and North are shown with dashed lines on the grade-tonnage curves in Figures 17-9 and 17-10. This is the distribution of grades based on 20 m blocks obtained from the change-of-support models. The continuous lines in the figures show the grade-tonnage distribution obtained from the block estimates. The grade-tonnage predictions produced for the model show that grade and tonnage estimates are validated by the change-of-support calculations over the likely range of mining grade cutoff values (0.8% to 1.2% Cu). DECEMBER 2003 PAGE 17-21 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-9: CHANGE-OF-SUPPORT GRADE-TONNAGE PLOTS FOR Cu MODEL AND HERCO VALUES - HUGO SOUTH DOMAINS [FIGURE] DECEMBER 2003 PAGE 17-22 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-10: CHANGE-OF-SUPPORT GRADE-TONNAGE PLOTS FOR Cu MODEL AND HERCO VALUES - HUGO NORTH DOMAINS [FIGURE] [FIGURE] [FIGURE] [FIGURE] DECEMBER 2003 PAGE 17-23 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA MODEL CHECKS FOR BIAS AMEC checked the block model estimates for global bias by comparing the average metal grades (with no cutoff) from the model (kriged grades) with means from nearest-neighbour estimates. (The nearest-neighbour estimator declusters the data and produces a theoretically unbiased estimate of the average value when no cutoff grade is imposed and is a good basis for checking the performance of different estimation methods.) Results listed in Table 17-8 show no evidence of bias in the estimate. TABLE 17-8: GLOBAL MODEL MEAN GRADE VALUES BY DOMAIN IN EACH ZONE
NEAREST-NEIGHBOUR ESTIMATE KRIGED ESTIMATE % DIFFERENCE ============================================================================== Cu (%) - SOUTH 2% Shell 2.719 2.672 -1.7 1% Shell 1.289 1.266 -1.8 0.6% Shell 0.768 0.758 -1.3 Background 0.110 0.115 4.5 ------------------------------------------------------------------------------ Cu (%) - NORTH Au Shell 3.225 3.192 -1.0 2% Shell 2.538 2.614 3.0 1% Shell 1.296 1.289 -0.5 0.6% Shell 0.774 0.731 -5.5 Background 0.048 0.043 -10.4 ------------------------------------------------------------------------------ Au (G/T) - SOUTH 2% Shell 0.196 0.189 -3.6 1% Shell 0.055 0.052 -5.5 0.6% Shell 0.110 0.096 -12.7 Background 0.025 0.025 0 ------------------------------------------------------------------------------ Au (G/T) - NORTH Au Shell 1.072 1.146 6.9 2% Shell 0.188 0.197 4.8 1% Shell 0.154 0.151 -1.9 0.6% Shell 0.144 0.139 -3.5 Background 0.014 0.012 -14.3 ------------------------------------------------------------------------------ Mo (PPM) - SOUTH 2% Shell 44.8 43.4 -3.1 1% Shell 50.2 49.2 -2.0 0.6% Shell 77.3 80.9 4.7 Background 18.3 20.8 13.7 ------------------------------------------------------------------------------ Mo (PPM) - NORTH Au Shell 31.2 28.6 -8.3 2% Shell 25.0 26.0 4.0 1% Shell 47.6 50.7 6.5 0.6% Shell 43.6 45.3 3.9 Background 6.4 6.4 0
DECEMBER 2003 PAGE 17-24 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA AMEC also checked for local trends in the grade estimates (swath checks). This was done by plotting the mean values from the nearest-neighbour estimate against the kriged results for benches, northings and eastings. The kriged estimates should be smoother than the nearest-neighbour estimate, thus the nearest-neighbour estimate should fluctuate around the kriged estimate on the plots. Results behaved as predicted and show no significant bias in the estimates. FIGURE 17-11: RESULTS FOR Cu IN THE 2% Cu SHELLS [FIGURE] [FIGURE] DECEMBER 2003 PAGE 17-25 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA FIGURE 17-12: RESULTS FOR Au IN THE 2% Cu SHELLS [FIGURE] [FIGURE] HISTOGRAMS AND PROBABILITY PLOTS Histograms were constructed to show the frequency of sample grades within the mineralized domains. Both kriged and nearest-neighbour plots were made for copper, gold, and molybdenum. The statistical properties are summarized in Tables 17-2 and 17-3. The nearest-neighbour plots mimic the respective composite value distribution. The kriged results show the formation of a more-symmetric distribution because of the smoothing effect caused by using multiple values from multiple drill holes to interpolate a model block value. DECEMBER 2003 PAGE 17-26 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 17.7 MINERAL RESOURCE CLASSIFICATION AND SUMMARY The mineral resources of the Hugo deposit for the Oyu Tolgoi project were classified using logic consistent with the CIM definitions referred to in National Instrument 43-101. All interpolated blocks within the grade shells (most less than 150 m from a drill composite and interpolated by composites from at least two drill holes) were assigned as an Inferred Mineral Resource. In the background domain, only interpolated blocks within 150 m of a drill composite were assigned as an Inferred Mineral Resource. As mentioned in the July 2003 Technical Report, AMEC determined that a drill grid approximately 100 m (along trend of mineralization) x 50 m (horizontal spacing) would be necessary to reach a sufficient level of confidence in geologic and grade continuity to be able to declare an Indicated Mineral Resource at Hugo. The mineralization of the Hugo deposit, Oyu Tolgoi project, as of 10 November 2003 is classified as an Inferred Mineral Resource. The resource is shown by total deposit and by deposit depth, respectively, in Tables 17-9 and 17-10, reported at a copper equivalent cutoff grade. The equivalent grade was calculated using only assumed metal prices for copper and gold. The assumed prices were US$0.80 for copper and US$350/oz for gold. For convenience the formula is: CuEq = %Cu + (g/t Au*11.25)/17.64 The Hugo deposit could be mined by either (or both) open pit or underground bulk mining (e.g., block cave, sublevel cave) methods. The current mineral resource model will need to incorporate additional dilution and allowances for mining recovery for any underground scenario prior to conversion to mineral reserves. TABLE 17-9: HUGO DEPOSIT, OYU TOLGOI PROJECT, MINERAL RESOURCE SUMMARY - 10 NOVEMBER 2003
GRADE CONTAINED METAL CuEq -------------------- --------------------------- CUTOFF GRADE TONNES CuEq Cu Au Mo Cu TONNES Au OUNCES (%) (k) (%) (%) (g/t) (ppm) (k) (k) ==================================================================================== >or= 3.50 47,900 4.29 3.68 0.96 30 1,760 1,470 >or= 3.00 75,800 3.91 3.42 0.76 30 2,590 1,860 >or= 2.50 115,200 3.51 3.11 0.61 31 3,590 2,270 >or= 2.00 149,400 3.22 2.88 0.53 31 4,310 2,560 >or= 1.50 234,300 2.65 2.39 0.40 39 5,610 3,020 >or= 1.25 412,500 2.09 1.92 0.27 43 7,930 3,550 >or= 1.00 575,500 1.82 1.67 0.23 47 9,620 4,300 >or= 0.90 654,900 1.71 1.57 0.22 50 10,300 4,640 >or= 0.80 778,900 1.57 1.45 0.20 53 11,280 4,990 >or= 0.70 889,700 1.47 1.36 0.18 55 12,060 5,230 >or= 0.60 961,600 1.41 1.30 0.18 56 12,480 5,420 >or= 0.50 1,082,500 1.31 1.21 0.17 56 13,060 5,800 >or= 0.40 1,358,100 1.14 1.04 0.15 57 14,140 6,430 >or= 0.30 1,800,300 0.94 0.86 0.12 57 15,500 7,220
DECEMBER 2003 PAGE 17-27 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA TABLE 17-10: HUGO DEPOSIT MINERAL RESOURCE SUMMARY BY DEPTH - 10 NOVEMBER 2003
CUEQ/CUTOFF GRADE CUEQ CU AU MO (%) TONNES (%) (%) (G/T) (PPM) ===================================================================================================== 1,160 to 1,040 m level (0 - 120 m below surface) >or= 0.6 1,000,000 0.90 0.66 0.38 43 >or= 2.0 - - - - - ----------------------------------------------------------------------------------------------------- 1,040 to 900 m level (120 - 240 m below surface) >or= 0.6 19,300,000 0.86 0.82 0.06 66 >or= 2.0 - - - - - ----------------------------------------------------------------------------------------------------- 900 to 780 m level (240 - 360 m below surface) >or= 0.6 65,000,000 1.02 0.99 0.04 53 >or= 2.0 200,000 2.68 2.56 0.19 18 ----------------------------------------------------------------------------------------------------- 780 to 660 m level (360 - 480 m below surface) > 0.6 106,500,000 1.33 1.29 0.07 57 > 2.0 13,000,000 3.12 2.98 0.21 38 ----------------------------------------------------------------------------------------------------- 660 to 540 m level (480 - 600 m below surface) >or= 0.6 120,200,000 1.30 1.25 0.08 61 >or= 2.0 15,900,000 2.71 2.61 0.16 42 ----------------------------------------------------------------------------------------------------- 540 to 420 m level (600 - 720 m below surface) >or= 0.6 118,700,000 1.09 1.03 0.09 72 >or= 2.0 6,200,000 2.61 2.46 0.23 42 ----------------------------------------------------------------------------------------------------- 420 to 300 m level (720 to 840 m below surface) >or= 0.6 104,300,000 1.16 1.08 0.12 60 >or= 2.0 7,600,000 2.62 2.50 0.20 24 ----------------------------------------------------------------------------------------------------- 300 to 180 m level (840 to 960 m below surface) >or= 0.6 110,700,000 1.52 1.37 0.23 57 >or= 2.0 20,000,000 3.59 3.24 0.56 21 ----------------------------------------------------------------------------------------------------- 180 to 60 m level (960 to 1,080 m below surface) >or= 0.6 105,500,000 1.67 1.52 0.23 52 >or= 2.0 25,300,000 3.35 3.02 0.52 24 ----------------------------------------------------------------------------------------------------- 60 to -60 m level (1,080 to 1,200 m below surface) >or= 0.6 98,700,000 1.85 1.63 0.36 51 >or= 2.0 26,400,000 3.67 3.11 0.88 37 ----------------------------------------------------------------------------------------------------- -60 to -180 m level (1,200 to 1,320 m below surface) >or= 0.6 71,800,000 1.79 1.58 0.33 37 >or= 2.0 23,600,000 3.19 2.78 0.65 33 ----------------------------------------------------------------------------------------------------- -180 to -300 m level (1,320 to 1,440 m below surface) >or= 0.6 36,400,000 1.68 1.42 0.40 27 >or= 2.0 10,700,000 2.76 2.24 0.81 19 ----------------------------------------------------------------------------------------------------- -300 to -420 m level (1,440 to 1,560 m below surface) >or= 0.6 3,500,000 1.04 0.85 0.29 34 >or= 2.0 300,000 2.33 1.61 1.13 22
DECEMBER 2003 PAGE 17-28 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 18.0 OTHER RELEVANT DATA AND INFORMATION No other data or information are relevant for the review of the Hugo deposit, Oyu Tolgoi project. DECEMBER 2003 PAGE 18-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 19.0 REQUIREMENTS FOR TECHNICAL REPORTS ON PRODUCTION AND DEVELOPMENT PROPERTIES This section is not relevant for this study. DECEMBER 2003 PAGE 19-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 20.0 CONCLUSIONS AND RECOMMENDATIONS AMEC reviewed pertinent data from the Hugo deposit, Oyu Tolgoi project, to obtain a sufficient level of understanding to estimate and tabulate an updated mineral resource summary. AMEC's general conclusions from this work are as follows: - The geology of the Hugo deposit is becoming well known. That understanding was reflected in the geology and mineralized models produced for the estimate. - Since March 2003, the exploration program has focussed on the Hugo deposit and consisted almost exclusively of diamond drilling. Due to the depth of holes needed to continue to test the extensions of this deposit (particularly the northeastern, gold-rich portions), Ivanhoe has started to use original drill holes as parent holes for drilling multiple daughter holes. This is achieved using Navi-Drill(R) technology. - The database used to estimate the mineral resources for the Hugo deposit consists of samples and geological information from 136 core drill holes drilled by Ivanhoe between 2002 and mid-2003. The data cutoff date was 31 October 2003. Data transfer to the resource database was validated from original certificates through a 5% check of the database. - Ivanhoe employs a comprehensive QA/QC program. Each batch of 20 samples contains four or five quality control samples. The quality control samples comprise one duplicate split core sample and one uncrushed field blank, which are inserted prior to sample preparation; a reject or pulp preparation duplicate, which is inserted during sample preparation; and one or two reference material samples (one <2% Cu and one >2% Cu if higher grade mineralization has been visually estimated), which are inserted after sample preparation. A total of 33 different reference materials have been developed for the Oyu Tolgoi deposits and are used to monitor the assaying of six different ore types made up of varying combinations of chalcopyrite, bornite, primary and supergene chalcocite, enargite, covellite, and molybdenite. Ivanhoe strictly monitors the performance of the standard reference material (SRM) samples as the assay results arrive at site. If a batch fails based on standard reference materials and blank samples, it is re-assayed until it passes unless the batch is deemed to represent barren intervals. - AMEC reviewed Ivanhoe's QA/QC procedures at site and found them to be strictly adhered to. Results of field blanks show low incidence of contamination and confirm negligible contamination in the assay process. AMEC evaluated the duplicate performance of core, coarse reject, and pulp and found the results to be well within the respective accepted ranges for copper. Gold and molybdenum had poorer performance, but the results could be affected by limited data above values close to analytical limits and by coarser gold associated with higher grades. The current Ivanhoe QA/QC program meets or exceeds industry standards and demonstrates that the assay process for Hugo data is in control. DECEMBER 2003 PAGE 20-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA - The Hugo resource model was developed using industry-accepted methods. AMEC validated the model estimates and found them to reasonably estimate grade and tonnage for the Hugo deposit. - The mineralization of the Hugo deposit is classified as an Inferred Mineral Resource using logic consistent with the CIM definitions referred to in NI 43-101. To reach a sufficient level of confidence in geologic and grade continuity to declare an Indicated Mineral Resource at Hugo, a drill grid of approximately 100 m (along trend of mineralization) x 50 m (horizontal spacing) would be necessary. This independent mineral resource estimate and review by AMEC supports the November 2003 Hugo Mineral Resource statement. DECEMBER 2003 PAGE 20-2 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA 21.0 REFERENCES Juras, S., February 2003. Technical Report on the Oyu Tolgoi Project, Mongolia. National Instrument 43-101 Technical Report. Juras, S., July 2003. Technical Report on the Far North Deposit, Oyu Tolgoi Project, Mongolia. National Instrument 43-101 Technical Report. Cargill, D.G., 2002. Report on the Oyu Tolgoi Exploration Project, Gobi Region, Mongolia. National Instrument 43-101 Technical Report, January 2002. DECEMBER 2003 PAGE 21-1 [AMEC LOGO] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA APPENDIX A Composites A-1 Hugo Deposit Drill Holes A-2 Hugo South Composite Values A-3 Hugo North Composite Values DECEMBER 2003 APPENDICES [AMEC LOGO] TABLE A-1: HUGO DEPOSIT ASSAYED DRILL HOLE LISTING, NOVEMBER 2003
DHID EAST NORTH ELEVATION AZIMUTH DIP LENGTH ------- -------- --------- --------- ------- ----- ------ OTD244 651127.4 4765331.5 1163.80 0.0 -60.0 580.3 OTD246 650925.3 4765331.5 1165.89 0.0 -60.0 499.6 OTD250 651525.9 4765329.5 1160.07 0.0 -60.0 379.5 OTD254 650925.6 4765213.0 1165.26 0.0 -60.0 648.4 OTD257 651525.2 4764991.0 1160.92 270.0 -60.0 329.2 OTD259 650725.3 4765191.5 1167.39 0.0 -60.0 615.0 OTD267 650349.4 4764893.5 1176.60 0.0 -60.0 508.6 OTD270 651330.1 4765389.0 1161.50 0.0 -60.0 880.9 OTD272 650931.9 4765453.5 1166.71 0.0 -60.0 562.7 OTD273 651325.4 4765509.5 1161.36 0.0 -60.0 807.7 OTD278 651125.7 4765451.0 1163.34 0.0 -60.0 702.4 OTD282 651325.9 4765630.0 1162.99 0.0 -60.0 763.4 OTD286 651330.3 4765268.5 1162.21 0.0 -60.0 881.9 OTD287 651128.0 4765572.5 1162.49 0.0 -60.0 458.8 OTD287A 651128.0 4765572.5 1162.49 0.0 -60.0 727.5 OTD289 651192.7 4765841.5 1165.11 125.0 -70.0 665.3 OTD298 651326.9 4765150.0 1163.03 0.0 -60.0 850.0 OTD303 651424.2 4765430.5 1160.43 0.0 -60.0 895.0 OTD304 651074.4 4765680.0 1162.94 125.0 -60.0 936.2 OTD305 651425.3 4765308.0 1161.44 0.0 -60.0 842.2 OTD306 651325.0 4764545.0 1160.00 180.0 -60.0 470.0 OTD310 651287.4 4765965.5 1164.16 130.0 -70.0 903.0 OTD313 651425.3 4765547.5 1161.57 0.0 -60.0 952.5 OTD319 651599.1 4765796.0 1162.46 305.0 -70.0 929.0 OTD324 651378.9 4765240.5 1161.65 305.0 -70.0 832.3 OTD327 651664.2 4765880.5 1162.15 309.2 -69.3 860.9 OTD329 651624.9 4765535.5 1161.68 307.3 -70.6 830.4 OTD333 650993.8 4765978.5 1164.49 124.9 -70.2 578.5 OTD334 651281.1 4765043.0 1163.57 305.9 -69.7 556.9 OTD339 651518.0 4765855.5 1163.14 305.4 -69.8 686.0 OTD342 650879.3 4765812.0 1165.22 125.0 -70.0 989.5 OTD343 650831.7 4766092.5 1165.68 125.0 -70.0 1272.0 OTD346 651183.8 4765116.0 1165.12 305.0 -70.0 704.2 OTD355 651943.1 4766297.0 1160.42 307.4 -71.0 1076.8 OTD355A 651943.1 4766297.0 1160.49 307.4 -71.0 1355.8 OTD355B 651943.1 4766297.0 1160.50 307.4 -71.0 1089.0 OTD355C 651943.1 4766297.0 1160.50 306.3 -71.0 971.2 OTD356 651756.6 4765457.0 1160.46 305.0 -70.0 1109.7 OTD359 651105.5 4766140.5 1165.39 128.3 -69.8 653.0 OTD363 651617.8 4766524.5 1162.69 310.7 -69.3 872.0 OTD366 651530.8 4765234.0 1161.09 305.3 -71.6 833.0 OTD367 652071.9 4766584.5 1161.60 304.2 -70.3 964.1 OTD367A 652071.9 4766584.5 1161.85 304.2 -70.3 1422.5 OTD367B 652071.9 4766584.5 1161.85 304.2 -70.3 1355.2 OTD367D 652071.9 4766584.5 1161.85 301.7 -70.5 1273.4 OTD367E 652071.9 4766584.5 1161.85 304.2 -70.3 1360.0 OTD367F 652071.9 4766584.5 1161.85 304.2 -70.3 1588.0 OTD367G 652071.9 4766584.5 1161.85 304.2 -70.3 1763.8 OTD369 651772.1 4765409.5 1160.04 0.0 -90.0 1060.0 OTD373 651820.3 4765761.0 1160.89 308.8 -69.5 917.0
DHID EAST NORTH ELEVATION AZIMUTH DIP LENGTH ------- -------- --------- --------- ------- ----- ------ OTD374 651902.8 4765825.0 1160.57 304.8 -86.6 1149.8 OTD374A 651902.8 4765826.0 1160.57 304.8 -86.6 960.8 OTD376A 650703.0 4766197.5 1166.52 125.0 -70.0 784.5 OTD377 651942.1 4766050.5 1158.96 305.0 -70.0 961.9 OTD378 651540.1 4765343.5 1159.94 305.0 -70.0 720.0 OTD381 651658.1 4765884.5 1161.98 305.0 -55.0 771.9 OTD382 651632.2 4765270.5 1159.54 305.0 -70.0 925.0 OTD383 652091.4 4766791.5 1163.06 305.0 -70.0 1194.4 OTD383A 652091.4 4766791.5 1163.06 305.0 -70.0 1222.3 OTD383B 652091.4 4766791.5 1163.10 305.0 -70.0 1302.0 OTD383C 652091.4 4766791.5 1163.10 305.0 -70.0 1309.7 OTD383D 652091.4 4766791.5 1163.10 305.0 -70.0 1579.6 OTD385 651376.7 4765460.5 1160.89 305.0 -70.0 761.0 OTD392 651307.9 4765400.0 1161.67 305.0 -70.0 592.0 OTD395 651316.1 4765292.5 1162.01 305.0 -70.0 596.4 OTD396 651519.4 4766970.5 1165.59 111.2 -84.8 941.0 OTD399 650905.6 4767021.0 1170.27 125.0 -80.0 781.7 OTD401 651168.4 4765507.0 1162.28 125.0 -70.0 822.0 OTD401A 651168.4 4765507.0 1162.28 125.0 -70.0 816.5 OTD401B 651168.4 4765507.0 1162.28 125.0 -70.0 932.0 OTD402 651269.9 4767399.5 1170.03 125.0 -85.0 1095.5 OTD404 651502.0 4765155.5 1161.53 305.0 -70.0 733.0 OTD405 651102.1 4766878.0 1168.73 125.0 -80.0 919.5 OTD407 651501.7 4765155.5 1161.42 305.0 -62.0 851.0 OTD409 651599.2 4767256.5 1165.09 133.6 -86.0 1192.4 OTD409A 651599.1 4767257.0 1164.77 125.0 -85.0 1417.3 OTD410 651443.0 4765055.0 1161.96 305.0 -60.0 806.0 OTD411 651768.8 4766039.0 1160.04 308.8 -64.9 774.3 OTD411A 651768.8 4766039.0 1160.04 305.0 -65.0 881.8 OTD412 651488.9 4766846.5 1166.04 125.8 -84.9 951.6 OTD413 651473.6 4766627.5 1164.35 120.2 -85.3 829.2 OTD414 652025.0 4766470.5 1161.70 305.4 -75.5 973.5 OTD414A 652025.0 4766470.5 1161.70 305.9 -75.8 1131.7 OTD415 651329.9 4766349.0 1163.67 126.0 -71.0 693.5 OTD417 651374.1 4764958.0 1162.10 303.4 -69.7 636.0 OTD418 651276.8 4766278.5 1163.37 127.4 -80.4 722.0 OTD419 651387.3 4766916.0 1165.52 122.6 -85.2 1332.5 OTD420 651429.8 4766283.0 1162.84 128.0 -70.5 790.5 OTD421 651367.7 4766202.0 1162.89 125.1 -69.6 912.3 OTD422 651083.8 4766521.5 1166.93 120.1 -69.9 680.2 OTD422A 651083.8 4766521.5 1166.93 125.0 -70.0 911.0 OTD423 651547.2 4765460.0 1160.38 309.4 -78.2 861.1 OTD424 651686.6 4765484.5 1160.97 303.4 -69.9 869.0 OTD426 651237.6 4766296.5 1163.64 200.4 -58.7 702.0 OTD442 651425.8 4765557.0 1161.24 303.6 -67.8 717.0 OTD443 651367.4 4766202.0 1162.41 128.9 -83.6 719.4 OTD444 651143.4 4767087.0 1167.88 122.9 -83.4 1174.0 OTD445 650655.7 4765968.5 1167.17 90.0 -55.0 778.0 OTD446 651083.4 4766522.0 1166.98 118.4 -86.2 750.8 OTD447 651865.1 4766220.0 1160.29 305.0 -70.3 1081.6 OTD447A 651865.0 4766220.0 1160.35 305.0 -70.0 939.0
DHID EAST NORTH ELEVATION AZIMUTH DIP LENGTH --------- -------- --------- --------- ------- ----- ------ OTD448 651307.4 4765510.5 1161.37 305.3 -69.6 632.0 OTD449 652049.5 4767202.5 1165.25 272.3 -79.4 1439.0 OTD449A 652049.5 4767202.5 1165.25 270.0 -80.0 1337.4 OTD449B 652049.5 4767202.5 1165.25 270.0 -80.0 1675.5 OTD451 651346.7 4765608.5 1162.19 305.0 -73.0 639.3 OTD452 650781.4 4766013.5 1165.52 126.4 -73.4 844.5 OTD455 651761.6 4767142.5 1163.16 234.7 -85.9 999.0 OTD455A 651767.0 4767147.0 1163.20 232.2 -87.5 1428.0 OTD455B 651771.8 4767149.0 1163.51 240.0 -85.0 1428.2 OTD458 651866.6 4765969.5 1159.22 297.8 -79.6 971.9 OTD458A 651866.6 4765969.5 1159.20 305.0 -75.0 855.8 OTD460 651678.8 4765737.5 1161.70 306.6 -72.4 845.4 OTD461 652055.5 4765963.5 1158.24 308.3 -64.6 925.3 OTD463 652017.5 4766476.0 1161.66 308.2 -75.3 1501.9 OTD463A 652017.5 4766476.0 1161.70 305.0 -75.0 1499.3 OTD464 652168.2 4766130.5 1159.19 305.6 -62.5 1146.0 OTD464A 652168.2 4766130.5 1159.19 305.0 -65.0 1206.8 OTD465A 652041.9 4767351.0 1165.76 270.0 -80.0 1358.5 OTD465B 652041.9 4767351.0 1165.76 270.0 -80.0 2000.0 OTD469 652171.1 4765889.0 1158.37 308.1 -64.8 1150.8 OTD470 651148.8 4765620.0 1162.44 122.4 -64.6 871.0 OTD505 651703.4 4767448.0 1166.87 239.6 -79.7 1203.9 OTD505A 651703.4 4767448.0 1166.87 239.6 -79.7 1188.7 OTD514 652050.0 4767501.0 1165.00 267.7 -79.9 2000.0 OTD522 651338.1 4766459.5 1164.55 48.6 -59.7 1311.7 OTRCD340 651490.8 4765508.0 1160.81 307.2 -69.1 867.7 OTRCD344 651720.6 4765957.5 1160.73 309.4 -69.0 806.6 OTRCD347 651717.0 4765715.0 1161.71 305.0 -70.0 893.2 OTRCD350 651678.2 4765618.5 1161.63 305.0 -70.0 918.0 OTRCD352 651817.9 4766130.0 1159.69 298.6 -70.8 610.2 OTRCD352A 651817.9 4766130.0 1159.69 298.6 -70.8 849.0 OTRCD353 651609.8 4765424.5 1160.34 317.7 -71.0 797.0 OTRCD365 651826.3 4765878.5 1160.85 307.1 -69.2 1265.6 OTRCD365A 651826.3 4765878.5 1160.85 307.1 -69.2 765.8 OTRCD388 651765.7 4766057.0 1159.65 305.0 -80.0 729.5
TABLE A.2: HUGO SOUTH COMPOSITED ASSAY VALUES (FOR VALUES >= 0.60% Cu) A NEGATIVE VALUE DENOTES "NO ASSAY VALUE". DOMAIN CODE DESCRIPTIONS ARE IN TABLE 17-1.
DHID EASTING NORTHING ELEVATION CU (WT%) AU (G/T) MO (PPM) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD244 651126.3 4765428.5 995.36 0.61 0.05 30 10 7 197 5.0 7 OTD244 651126.3 4765438.5 978.04 0.67 0.06 60 10 7 217 5.0 7 OTD244 651126.3 4765441.0 973.71 1.01 0.07 111 10 7 222 5.0 7 OTD244 651126.2 4765443.5 969.81 0.62 0.05 151 10 7 226 4.0 7 OTD244 651126.3 4765482.5 905.92 0.78 0.05 85 6 7 301 5.0 7 OTD244 651126.3 4765485.0 901.66 0.62 0.03 112 6 7 306 5.0 7 OTD244 651126.4 4765487.5 897.40 0.84 0.04 188 6 7 311 5.0 7 OTD244 651126.4 4765490.5 893.13 0.66 0.03 102 6 7 316 5.0 7 OTD244 651126.5 4765493.0 888.88 0.68 0.04 114 6 7 321 5.0 7 OTD244 651126.6 4765495.5 884.63 0.68 0.04 81 6 7 326 5.0 7 OTD244 651126.6 4765498.0 880.38 0.72 0.05 73 6 7 331 5.0 7 OTD244 651126.7 4765501.0 876.13 0.95 0.03 137 6 7 336 5.0 7 OTD244 651126.8 4765503.5 871.90 0.70 0.04 62 6 7 341 5.0 7 OTD244 651126.9 4765506.5 867.67 0.85 0.05 28 6 7 346 5.0 7 OTD244 651127.1 4765508.5 863.43 0.79 0.05 76 6 7 351 5.0 7 OTD244 651127.5 4765516.5 850.78 0.92 0.04 76 6 7 366 5.0 7 OTD244 651127.8 4765522.0 842.40 0.85 0.05 38 6 7 376 5.0 7 OTD244 651128.0 4765524.5 838.22 0.89 0.03 46 6 7 381 5.0 7 OTD244 651128.3 4765527.5 834.04 0.62 0.04 32 6 7 386 5.0 7 OTD244 651128.8 4765533.0 825.77 0.94 0.05 52 6 7 396 5.0 7 OTD244 651129.1 4765536.5 821.62 0.99 0.04 99 6 7 401 5.0 7 OTD244 651129.4 4765539.0 817.52 0.95 0.05 94 6 7 406 5.0 7 OTD244 651129.8 4765542.0 813.43 0.74 0.03 47 6 7 411 5.0 7 OTD244 651130.1 4765545.0 809.33 0.84 0.04 50 6 7 416 5.0 7 OTD244 651130.4 4765547.5 805.25 0.66 0.03 62 6 7 421 5.0 7 OTD244 651130.9 4765550.5 801.17 0.77 0.03 70 6 7 426 5.0 7 OTD244 651131.3 4765553.5 797.09 0.72 0.02 78 6 7 431 5.0 7 OTD244 651131.7 4765556.0 793.00 0.75 0.03 40 6 7 436 5.0 7 OTD244 651132.1 4765559.0 788.94 0.81 0.03 39 6 7 441 5.0 7 OTD244 651132.6 4765562.0 784.88 0.87 0.04 44 6 7 446 5.0 7 OTD244 651132.9 4765564.5 780.82 0.63 0.02 41 6 7 451 5.0 7 OTD244 651133.5 4765567.5 776.77 0.65 0.02 110 6 7 456 5.0 7 OTD244 651134.5 4765573.5 768.68 0.66 0.02 79 6 7 466 5.0 7 OTD244 651135.6 4765579.5 760.66 0.83 0.02 306 6 7 476 5.0 7 OTD244 651136.1 4765582.5 756.67 0.71 0.05 179 6 7 481 5.0 7 OTD244 651136.6 4765585.5 752.67 0.73 0.03 120 6 7 486 5.0 7 OTD244 651137.3 4765588.5 748.73 0.66 0.02 150 6 7 491 5.0 7 OTD244 651139.5 4765600.0 733.07 0.63 0.03 122 6 7 511 5.0 7 OTD244 651140.0 4765602.5 729.96 0.71 0.07 83 6 7 514 3.0 7 OTD244 651145.9 4765630.0 696.28 1.09 0.06 100 10 1 559 5.0 7 OTD244 651146.6 4765633.5 692.51 0.60 0.04 123 10 1 564 5.0 7 OTD244 651147.4 4765636.5 688.74 0.66 0.08 131 10 1 569 5.0 7 OTD246 650920.6 4765443.0 975.44 0.70 0.06 50 10 7 223 5.0 7 OTD246 650920.1 4765453.0 958.29 0.72 0.08 108 10 7 243 5.0 7 OTD246 650919.9 4765456.0 954.01 0.70 0.06 117 10 7 248 5.0 7 OTD246 650919.5 4765463.5 941.15 0.81 0.06 116 10 7 263 5.0 7 OTD246 650919.3 4765466.0 936.86 0.70 0.05 126 10 7 268 5.0 7 OTD246 650919.2 4765468.5 932.58 0.75 0.06 252 10 7 273 5.0 7 OTD246 650918.5 4765478.5 915.43 0.74 0.06 189 10 7 293 5.0 7 OTD246 650918.3 4765481.5 911.15 0.78 0.06 120 10 7 298 5.0 7 OTD246 650916.6 4765502.5 876.86 0.60 0.06 225 10 7 338 5.0 7 OTD246 650916.3 4765505.0 872.58 0.68 0.08 231 10 7 343 5.0 7 OTD246 650915.6 4765512.5 859.72 0.91 0.09 84 10 7 358 5.0 7 OTD246 650915.3 4765515.0 855.43 0.68 0.09 167 10 7 363 5.0 7 OTD254 650922.7 4765287.0 1037.86 0.81 0.02 213 10 7 150 5.0 7 OTD254 650922.5 4765289.0 1033.53 1.03 0.03 166 10 7 155 5.0 7 OTD254 650922.3 4765291.5 1029.20 0.79 0.02 226 10 7 160 5.0 7 OTD254 650921.8 4765299.0 1016.21 0.82 0.05 52 10 7 175 5.0 7 OTD254 650921.6 4765301.5 1011.88 0.65 0.04 63 10 7 180 5.0 7 OTD254 650921.2 4765306.5 1003.22 0.71 0.05 116 10 7 190 5.0 7 OTD254 650920.9 4765309.0 998.89 0.63 0.05 129 10 7 195 5.0 7 OTD254 650920.8 4765311.5 994.56 0.65 0.04 115 10 7 200 5.0 7 OTD254 650920.6 4765314.0 990.23 0.77 0.07 182 10 7 205 5.0 7 OTD254 650920.4 4765316.5 985.90 0.88 0.12 100 10 7 210 5.0 7 OTD254 650919.9 4765324.0 972.91 0.67 0.05 131 10 7 225 5.0 7
DHID EASTING NORTHING ELEVATION CU (WT%) AU (G/T) MO (PPM) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- ---- ------ ---- OTD254 650919.4 4765334.0 955.59 0.61 0.02 97 10 7 245 5.0 7 OTD254 650919.1 4765339.0 946.93 0.68 0.03 179 10 7 255 5.0 7 OTD254 650918.6 4765349.0 929.61 0.62 0.06 138 10 7 275 5.0 7 OTD254 650918.1 4765359.0 912.28 0.66 0.05 149 10 7 295 5.0 7 OTD254 650917.8 4765364.0 903.62 0.84 0.06 133 10 7 305 5.0 7 OTD254 650917.6 4765369.0 894.96 0.78 0.05 111 10 7 315 5.0 7 OTD254 650916.7 4765384.0 868.93 0.60 0.03 116 10 1 345 5.0 7 OTD259 650724.6 4765253.5 1055.88 0.77 0.06 50 10 1 130 5.0 7 OTD259 650724.5 4765258.0 1047.05 0.78 0.09 93 10 1 140 5.0 7 OTD259 650723.3 4765281.5 1002.77 0.90 0.14 53 10 1 190 5.0 7 OTD259 650711.2 4765384.0 791.61 1.18 0.09 156 10 1 425 5.0 7 OTD259 650710.9 4765386.5 787.11 1.14 0.27 51 10 1 430 5.0 7 OTD267 650349.3 4764929.5 1113.52 2.24 0.73 22 10 1 75 5.0 7 OTD267 650349.3 4764932.0 1109.14 0.64 0.65 14 10 1 80 5.0 7 OTD267 650349.3 4764934.5 1104.75 0.96 0.38 17 10 1 85 5.0 7 OTD267 650349.3 4764937.0 1100.36 0.65 0.60 15 10 1 90 5.0 7 OTD267 650349.3 4764939.0 1095.96 0.72 0.73 18 10 1 95 5.0 7 OTD267 650349.2 4764972.0 1034.19 0.72 0.45 52 10 1 165 5.0 7 OTD267 650349.4 4764988.0 1003.29 0.60 0.41 15 10 1 200 5.0 7 OTD267 650349.4 4764993.0 994.46 0.80 0.24 26 10 1 210 5.0 7 OTD267 650349.4 4764995.0 990.04 0.84 0.33 22 10 1 215 5.0 7 OTD267 650349.5 4764997.5 985.63 0.67 0.28 9 10 1 220 5.0 7 OTD267 650349.6 4765002.5 976.80 0.68 0.32 34 10 1 230 5.0 7 OTD267 650350.4 4765073.0 844.36 1.25 0.06 97 10 1 380 5.0 7 OTD267 650350.8 4765089.5 813.45 1.31 0.40 28 10 1 415 5.0 7 OTD267 650350.8 4765092.0 809.04 1.56 0.39 36 10 1 420 5.0 7 OTD270 651330.4 4765505.5 970.48 0.61 0.02 35 10 7 226 5.0 7 OTD270 651330.4 4765511.5 961.29 0.84 0.01 82 6 7 237 5.0 7 OTD270 651330.5 4765514.5 957.14 0.65 0.01 79 6 7 242 5.0 7 OTD270 651330.5 4765517.0 953.40 0.96 0.03 55 6 7 246 4.0 7 OTD270 651330.6 4765519.5 949.67 1.23 0.02 38 4 7 251 5.0 7 OTD270 651330.6 4765522.5 945.52 0.97 0.01 53 4 7 256 5.0 7 OTD270 651330.6 4765525.0 941.38 1.04 0.01 69 4 7 261 5.0 7 OTD270 651330.8 4765528.0 937.26 1.13 0.02 46 4 7 266 5.0 7 OTD270 651330.8 4765531.0 933.13 1.35 0.02 40 4 7 271 5.0 7 OTD270 651330.9 4765533.5 929.01 1.07 0.02 49 4 7 276 5.0 7 OTD270 651331.0 4765536.5 924.89 1.21 0.01 47 4 7 281 5.0 7 OTD270 651331.1 4765539.5 920.80 1.22 0.02 43 4 7 286 5.0 7 OTD270 651331.3 4765542.5 916.70 1.21 0.02 51 4 7 291 5.0 7 OTD270 651331.4 4765545.5 912.61 1.39 0.04 50 4 7 296 5.0 7 OTD270 651331.4 4765548.0 908.50 0.95 0.02 14 4 7 301 5.0 7 OTD270 651331.8 4765554.0 900.37 0.88 0.01 24 4 7 311 5.0 7 OTD270 651331.9 4765556.5 896.31 1.22 0.03 23 4 7 316 5.0 7 OTD270 651332.0 4765560.0 892.25 0.96 0.04 21 4 7 321 5.0 7 OTD270 651332.2 4765563.0 888.20 1.26 0.02 17 4 7 326 5.0 7 OTD270 651332.7 4765572.0 876.06 1.12 0.03 22 4 7 341 5.0 7 OTD270 651332.9 4765574.5 872.03 1.38 0.02 16 4 7 346 5.0 7 OTD270 651333.1 4765577.5 867.99 1.28 0.03 12 4 7 351 5.0 7 OTD270 651333.3 4765580.5 863.98 1.11 0.01 18 4 7 356 5.0 7 OTD270 651333.5 4765583.5 859.96 1.12 0.06 12 4 7 361 5.0 7 OTD270 651333.7 4765586.5 855.94 0.64 0.02 64 4 7 366 5.0 7 OTD270 651333.9 4765589.5 851.93 0.88 0.04 63 4 7 371 5.0 7 OTD270 651334.1 4765592.5 847.93 1.34 0.05 47 4 7 376 5.0 7 OTD270 651334.4 4765595.5 843.93 1.21 0.03 18 4 7 381 5.0 7 OTD270 651334.6 4765598.5 839.93 1.37 0.02 24 4 7 386 5.0 7 OTD270 651334.9 4765601.5 835.94 1.73 0.02 15 4 7 391 5.0 7 OTD270 651335.1 4765604.5 831.96 2.05 0.02 23 4 7 396 5.0 7 OTD270 651335.4 4765607.5 827.98 1.73 0.03 18 4 7 401 5.0 7 OTD270 651335.6 4765611.0 824.00 1.75 0.06 36 4 7 406 5.0 7 OTD270 651335.9 4765614.0 820.03 1.17 0.10 38 4 7 411 5.0 7 OTD270 651336.2 4765617.0 816.07 1.08 0.05 25 4 7 416 5.0 7 OTD270 651336.5 4765620.0 812.11 1.26 0.04 18 4 7 421 5.0 7 OTD270 651336.8 4765623.0 808.15 1.45 0.04 21 4 7 426 5.0 7 OTD270 651337.1 4765626.0 804.22 1.79 0.04 41 4 7 431 5.0 7 OTD270 651337.4 4765629.0 800.29 1.84 0.03 49 4 7 436 5.0 7 OTD270 651337.7 4765632.0 796.36 1.70 0.02 75 4 7 441 5.0 7 OTD270 651338.1 4765635.5 792.44 1.66 0.08 42 4 7 446 5.0 7
DHID EASTING NORTHING ELEVATION CU (WT%) AU (G/T) MO (PPM) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD270 651338.4 4765638.5 788.55 2.04 0.05 43 4 7 451 5.0 7 OTD270 651338.8 4765642.0 784.65 1.80 0.05 33 4 7 456 5.0 7 OTD270 651339.1 4765644.5 780.75 1.72 0.05 15 4 7 461 5.0 7 OTD270 651339.4 4765647.5 776.89 1.88 0.08 20 4 7 466 5.0 7 OTD270 651339.8 4765650.5 773.03 1.52 0.09 58 4 7 471 5.0 7 OTD270 651340.2 4765654.0 769.17 0.80 0.06 51 4 7 476 5.0 7 OTD270 651341.4 4765663.0 757.62 1.24 0.05 21 4 7 491 5.0 7 OTD270 651341.9 4765666.5 753.77 1.88 0.06 24 4 7 496 5.0 7 OTD270 651342.2 4765669.5 749.93 1.61 0.07 18 4 7 501 5.0 7 OTD270 651343.1 4765675.5 742.66 0.85 0.07 32 4 7 510 4.0 7 OTD270 651343.6 4765678.0 739.21 2.07 0.08 30 2 7 515 5.0 7 OTD270 651344.1 4765681.5 735.39 1.65 0.09 28 2 7 520 5.0 7 OTD270 651344.6 4765684.5 731.57 1.95 0.09 34 2 7 525 5.0 7 OTD270 651345.1 4765688.0 727.76 2.74 0.08 63 2 7 530 5.0 7 OTD270 651345.6 4765691.0 723.94 2.30 0.09 35 2 7 535 5.0 7 OTD270 651346.1 4765694.0 720.14 2.25 0.05 20 2 7 540 5.0 7 OTD270 651346.6 4765697.5 716.33 2.76 0.07 24 2 7 545 5.0 7 OTD270 651347.2 4765700.5 712.53 1.46 0.05 15 2 7 550 5.0 7 OTD270 651347.8 4765704.0 708.73 2.50 0.06 9 2 7 555 5.0 7 OTD270 651350.5 4765719.5 689.81 2.45 0.43 10 2 7 580 5.0 7 OTD270 651351.1 4765723.0 686.05 2.73 0.36 19 2 7 585 5.0 7 OTD270 651351.8 4765726.0 682.28 3.63 0.55 31 2 7 590 5.0 7 OTD270 651352.3 4765729.5 678.53 1.48 0.12 13 2 7 595 5.0 7 OTD270 651353.6 4765736.0 671.06 2.54 0.20 24 2 7 605 5.0 7 OTD270 651354.3 4765739.0 667.33 4.68 0.20 38 2 7 610 5.0 7 OTD270 651354.9 4765742.5 663.58 5.72 0.19 49 2 7 615 5.0 7 OTD270 651355.6 4765746.0 659.88 5.24 0.20 76 2 7 620 5.0 7 OTD270 651356.3 4765749.0 656.18 3.73 0.18 36 2 7 625 5.0 7 OTD270 651356.9 4765752.5 652.48 4.31 0.16 26 2 7 630 5.0 7 OTD270 651357.6 4765755.5 648.77 4.83 0.38 62 2 7 635 5.0 7 OTD270 651358.3 4765759.0 645.09 5.05 0.24 57 2 7 640 5.0 7 OTD270 651359.1 4765762.0 641.42 5.16 0.37 108 2 7 645 5.0 7 OTD270 651359.8 4765765.5 637.74 4.09 0.36 118 2 7 650 5.0 7 OTD270 651360.5 4765769.0 634.07 3.43 0.27 207 2 7 655 5.0 7 OTD270 651361.2 4765772.0 630.41 4.02 0.23 157 2 7 660 5.0 7 OTD270 651362.0 4765775.0 626.76 3.26 0.13 109 2 7 665 5.0 7 OTD270 651362.8 4765778.5 623.12 3.90 0.13 83 2 7 670 5.0 7 OTD270 651363.5 4765782.0 619.48 3.36 0.11 91 2 7 675 5.0 7 OTD270 651364.3 4765785.0 615.84 3.50 0.10 119 2 7 680 5.0 7 OTD270 651365.0 4765788.5 612.57 2.82 0.11 138 1 7 684 4.0 7 OTD270 651365.7 4765791.5 609.31 1.81 0.09 45 4 7 689 5.0 7 OTD270 651366.5 4765794.5 605.70 1.81 0.08 38 4 7 694 5.0 7 OTD270 651367.3 4765798.0 602.08 1.22 0.04 83 4 7 699 5.0 7 OTD270 651368.3 4765802.0 597.73 1.09 0.03 54 5 1 705 5.0 7 OTD270 651369.1 4765805.5 594.14 1.03 0.04 43 5 1 710 5.0 7 OTD270 651369.9 4765809.0 590.54 0.75 0.02 134 5 1 715 5.0 7 OTD270 651370.7 4765812.5 586.95 1.52 0.04 960 5 1 720 5.0 7 OTD270 651371.6 4765815.0 583.36 1.25 0.04 190 5 1 725 5.0 7 OTD270 651372.4 4765818.5 579.78 1.18 0.09 125 5 1 730 5.0 7 OTD270 651373.3 4765822.0 576.21 1.79 0.06 167 5 1 735 5.0 7 OTD270 651374.1 4765825.5 572.63 1.60 0.04 161 5 1 740 5.0 7 OTD270 651374.9 4765829.0 569.05 1.55 0.03 247 5 1 745 5.0 7 OTD270 651375.9 4765832.5 565.49 1.02 0.03 141 5 1 750 5.0 7 OTD270 651376.8 4765836.0 561.93 1.08 0.03 98 5 1 755 5.0 7 OTD270 651377.7 4765839.0 558.37 1.14 0.03 98 5 1 760 5.0 7 OTD270 651378.6 4765842.5 554.81 1.10 0.04 186 5 1 765 5.0 7 OTD270 651379.6 4765845.5 551.26 0.98 0.03 213 5 1 770 5.0 7 OTD270 651380.6 4765849.0 547.72 0.72 0.01 51 5 1 775 5.0 7 OTD270 651381.5 4765852.5 544.17 0.70 0.03 108 5 1 780 5.0 7 OTD270 651382.6 4765856.0 540.62 1.04 0.04 106 5 1 785 5.0 7 OTD270 651383.5 4765859.5 537.09 1.15 0.03 134 5 1 790 5.0 7 OTD270 651384.5 4765863.0 533.56 1.09 0.04 138 5 1 795 5.0 7 OTD270 651385.5 4765866.0 530.02 1.00 0.11 90 5 1 800 5.0 7 OTD270 651386.4 4765869.0 526.49 0.91 0.04 82 5 1 805 5.0 7 OTD270 651389.6 4765880.0 515.23 0.64 0.02 112 7 1 821 5.0 7 OTD270 651390.5 4765883.5 511.72 1.07 0.04 134 7 1 826 5.0 7 OTD270 651391.5 4765887.0 508.20 2.86 0.07 218 7 1 831 5.0 7
DHID EASTING NORTHING ELEVATION CU (WT%) AU (G/T) MO (PPM) DOMAIN ROCK CODE TO LENGTH ZONE ---- ------- -------- --------- -------- -------- -------- ------ --------- -- ------ ---- OTD270 651392.4 4765890.5 504.69 0.86 0.02 236 7 1 836 5.0 7 OTD270 651393.4 4765894.0 501.17 0.98 0.05 138 7 1 841 5.0 7 OTD270 651395.6 4765901.5 493.44 0.72 0.06 111 10 1 852 5.0 7 OTD270 651400.6 4765918.5 475.90 0.64 0.02 92 10 1 877 5.0 7 OTD270 651401.4 4765921.5 472.77 0.81 0.04 218 10 1 880.9 3.9 7 OTD272 650920.7 4765559.5 977.02 1.76 0.18 65 10 7 220 5.0 7 OTD272 650920.4 4765562.0 972.60 0.82 0.11 65 10 7 225 5.0 7 OTD272 650920.1 4765564.5 968.19 1.74 0.27 127 10 7 230 5.0 7 OTD272 650919.1 4765571.0 954.92 0.84 0.10 73 10 7 245 5.0 7 OTD273 651322.4 4765604.5 987.07 0.86 0.03 32 6 7 201 5.0 7 OTD273 651322.3 4765607.0 982.66 0.94 0.03 83 6 7 206 5.0 7 OTD273 651322.2 4765609.5 978.24 1.46 0.03 107 4 7 211 5.0 7 OTD273 651322.1 4765611.5 973.83 0.94 0.01 22 4 7 216 5.0 7 OTD273 651321.9 4765614.5 969.41 1.27 0.01 33 4 7 221 5.0 7 OTD273 651321.8 4765617.0 965.00 1.68 0.02 26 4 7 226 5.0 7 OTD273 651321.7 4765619.0 960.58 1.90 0.02 23 4 7 231 5.0 7 OTD273 651321.3 4765626.0 947.34 0.63 0.02 17 4 7 246 5.0 7 OTD273 651321.1 4765628.5 942.93 1.30 0.01 24 4 7 251 5.0 7 OTD273 651320.9 4765630.5 938.51 1.08 0.02 21 4 7 256 5.0 7 OTD273 651320.8 4765633.0 934.10 1.45 0.02 20 4 7 261 5.0 7 OTD273 651320.6 4765635.5 929.68 1.41 0.04 17 4 7 266 5.0 7 OTD273 651320.4 4765638.0 925.27 1.59 0.01 45 4 7 271 5.0 7 OTD273 651320.2 4765640.0 920.86 1.67 0.02 57 4 7 276 5.0 7 OTD273 651320.0 4765642.5 916.45 1.75 0.01 52 4 7 281 5.0 7 OTD273 651319.8 4765645.0 912.05 1.78 0.05 68 4 7 286 5.0 7 OTD273 651319.6 4765647.5 907.64 1.71 0.03 24 4 7 291 5.0 7 OTD273 651319.4 4765649.5 903.24 1.65 0.04 116 4 7 296 5.0 7 OTD273 651319.2 4765651.5 898.84 1.69 0.01 37 4 7 301 5.0 7 OTD273 651318.9 4765654.0 894.45 1.64 0.03 18 4 7 306 5.0 7 OTD273 651318.7 4765656.5 890.05 1.70 0.01 19 4 7 311 5.0 7 OTD273 651318.4 4765659.0 885.66 2.03 0.04 24 4 7 316 5.0 7 OTD273 651318.2 4765661.0 881.27 1.87 0.02 16 4 7 321 5.0 7 OTD273 651318.0 4765663.5 876.87 1.77 0.02 19 4 7 326 5.0 7 OTD273 651317.8 4765666.0 872.46 1.82 0.03 19 4 7 331 5.0 7 OTD273 651317.6 4765668.0 868.06 2.15 0.07 14 4 7 336 5.0 7 OTD273 651317.4 4765671.0 863.66 1.88 0.05 13 4 7 341 5.0 7 OTD273 651317.2 4765673.5 859.26 1.01 0.07 14 4 7 346 5.0 7 OTD273 651317.0 4765675.5 854.85 1.86 0.09 17 4 7 351 5.0 7 OTD273 651316.9 4765678.0 850.44 2.81 0.06 7 4 7 356 5.0 7 OTD273 651316.7 4765680.0 846.04 1.40 0.04 5 4 7 361 5.0 7 OTD273 651316.4 4765685.0 837.21 1.73 0.07 5 4 7 371 5.0 7 OTD273 651316.3 4765687.0 832.79 1.35 0.08 9 4 7 376 5.0 7 OTD273 651316.0 4765692.0 823.98 0.89 0.10 18 4 7 386 5.0 7 OTD273 651315.9 4765694.5 819.58 0.76 0.12 13 4 7 391 5.0 7 OTD273 651315.8 4765697.0 815.19 1.54 0.12 20 4 7 396 5.0 7 OTD273 651315.6 4765699.0 810.79 1.00 0.09 6 4 7 401 5.0 7 OTD273 651315.3 4765704.0 802.04 1.72 0.05 75 4 7 411 5.0 7 OTD273 651315.1 4765706.5 797.67 1.83 0.03 20 4 7 416 5.0 7 OTD273 651314.9 4765708.5 793.31 1.91 0.02 84 4 7 421 5.0 7 OTD273 651314.8 4765711.0 788.95 1.80 0.03 22 4 7 426 5.0 7 OTD273 651314.7 4765713.5 784.60 1.29 0.02 15 4 7 431 5.0 7 OTD273 651314.6 4765716.5 780.24 1.33 0.02 7 4 7 436 5.0 7 OTD273 651314.5 4765719.0 775.92 1.53 0.02 11 4 7 441 5.0 7 OTD273 651314.4 4765721.5 771.59 1.49 0.02 21 4 7 446 5.0 7 OTD273 651314.3 4765723.5 767.25 1.38 0.02 11 4 7 451 5.0 7 OTD273 651314.3 4765726.0 762.94 1.68 0.03 13 4 7 456 5.0 7 OTD273 651314.3 4765728.5 758.63 1.26 0.03 20 4 7 461 5.0 7 OTD273 651314.3 4765731.0 754.33 0.95 0.03 63 4 7 466 5.0 7 OTD273 651314.3 4765734.0 750.02 1.27 0.02 41 4 7 471 5.0 7 OTD273 651314.3 4765736.5 745.71 1.69 0.03 78 4 7 476 5.0 7 OTD273 651314.3 4765738.0 742.69 1.48 0.04 45 4 7 478 2.0 7 OTD273 651314.3 4765740.0 739.68 1.94 0.04 36 2 7 483 5.0 7 OTD273 651314.3 4765742.5 735.37 1.83 0.04 40 2 7 488 5.0 7 OTD273 651314.3 4765745.0 731.06 1.23 0.04 25 2 7 493 5.0 7 OTD273 651314.3 4765748.0 725.89 1.31 0.06 47 4 7 499 5.0 7 OTD273 651314.3 4765750.5 721.58 2.00 0.05 58 4 7 504 5.0 7 OTD273 651314.4 4765753.0 717.28 1.26 0.04 44 4 7 509 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/T) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD273 651314.4 4765755.5 712.97 1.53 0.05 102 4 7 514 5.0 7 OTD273 651314.5 4765758.0 708.66 1.29 0.03 158 4 7 519 5.0 7 OTD273 651314.5 4765760.5 704.36 1.44 0.05 33 4 7 524 5.0 7 OTD273 651314.6 4765763.0 700.06 1.86 0.10 274 4 7 529 5.0 7 OTD273 651314.6 4765765.5 695.76 1.39 0.07 14 4 7 534 5.0 7 OTD273 651314.7 4765768.0 691.46 1.23 0.03 22 4 7 539 5.0 7 OTD273 651314.8 4765770.5 687.17 1.21 0.03 42 4 7 544 5.0 7 OTD273 651314.8 4765773.0 682.87 0.94 0.04 36 4 7 549 5.0 7 OTD273 651314.8 4765775.5 678.58 0.77 0.02 23 4 7 554 5.0 7 OTD273 651314.8 4765778.0 674.30 1.64 0.04 98 4 7 559 5.0 7 OTD273 651314.9 4765780.5 670.01 1.27 0.04 135 4 7 564 5.0 7 OTD273 651314.9 4765782.5 665.73 1.24 0.03 153 4 7 569 5.0 7 OTD273 651314.9 4765785.5 661.46 0.94 0.03 103 4 7 574 5.0 7 OTD273 651315.1 4765788.0 657.20 1.10 0.04 113 4 7 579 5.0 7 OTD273 651315.1 4765790.5 652.94 1.19 0.03 141 4 7 584 5.0 7 OTD273 651315.3 4765793.5 648.68 1.23 0.04 112 4 7 589 5.0 7 OTD273 651315.4 4765796.0 644.45 1.43 0.06 127 4 7 594 5.0 7 OTD273 651315.5 4765799.0 640.21 1.16 0.05 98 5 1 599 5.0 7 OTD273 651315.7 4765801.5 635.97 0.90 0.02 116 5 1 604 5.0 7 OTD273 651315.8 4765803.5 633.02 1.08 0.02 165 5 1 606 2.0 7 OTD273 651315.9 4765805.0 630.07 0.75 0.01 163 7 1 611 5.0 7 OTD273 651316.1 4765808.0 625.85 0.89 0.02 99 7 1 616 5.0 7 OTD273 651316.4 4765810.0 621.64 0.99 0.04 77 7 1 621 5.0 7 OTD273 651316.6 4765813.0 617.44 0.87 0.06 69 7 1 626 5.0 7 OTD273 651316.8 4765815.5 613.24 1.07 0.07 127 7 1 631 5.0 7 OTD273 651317.0 4765818.0 609.04 1.50 0.08 149 7 1 636 5.0 7 OTD273 651317.3 4765821.0 604.85 1.16 0.05 123 7 1 641 5.0 7 OTD273 651317.5 4765823.5 600.67 0.80 0.05 91 7 1 646 5.0 7 OTD273 651317.8 4765826.0 596.48 0.65 0.06 51 7 1 651 5.0 7 OTD273 651318.1 4765828.5 592.31 1.04 0.15 102 7 1 656 5.0 7 OTD273 651318.4 4765831.5 588.14 1.12 0.09 92 7 1 661 5.0 7 OTD273 651318.6 4765834.0 583.97 0.66 0.07 58 7 1 666 5.0 7 OTD273 651319.6 4765842.5 571.48 0.67 0.09 126 7 1 681 5.0 7 OTD273 651320.3 4765848.5 563.16 0.78 0.09 271 7 1 691 5.0 7 OTD273 651320.6 4765851.5 559.01 0.84 0.07 291 7 1 696 5.0 7 OTD273 651320.9 4765854.5 554.86 0.69 0.07 185 7 1 701 5.0 7 OTD273 651324.9 4765882.5 513.55 0.77 0.13 100 10 1 751 5.0 7 OTD273 651326.4 4765891.0 501.27 0.78 0.15 290 10 1 766 5.0 7 OTD278 651128.8 4765544.0 1011.34 0.74 0.02 68 6 7 181 5.0 7 OTD278 651128.9 4765547.0 1007.15 1.22 0.05 60 6 7 186 5.0 7 OTD278 651129.1 4765550.0 1002.99 0.63 0.04 61 6 7 191 5.0 7 OTD278 651129.3 4765552.5 998.83 0.87 0.05 217 6 7 196 5.0 7 OTD278 651129.4 4765555.5 994.67 0.82 0.04 210 6 7 201 5.0 7 OTD278 651129.8 4765561.0 986.39 0.73 0.03 88 6 7 211 5.0 7 OTD278 651130.0 4765564.0 982.24 0.79 0.02 80 6 7 216 5.0 7 OTD278 651130.3 4765567.0 978.11 0.65 0.03 90 6 7 221 5.0 7 OTD278 651130.5 4765569.5 973.98 0.67 0.03 150 6 7 226 5.0 7 OTD278 651130.7 4765572.5 969.85 0.65 0.02 247 6 7 231 5.0 7 OTD278 651130.8 4765575.0 965.72 0.60 0.03 60 6 7 236 5.0 7 OTD278 651131.1 4765578.0 961.60 0.81 0.04 67 6 7 241 5.0 7 OTD278 651131.3 4765580.5 957.49 0.78 0.03 89 6 7 246 5.0 7 OTD278 651131.6 4765583.5 953.37 0.65 0.03 114 6 7 251 5.0 7 OTD278 651131.9 4765586.5 949.26 0.87 0.03 51 6 7 256 5.0 7 OTD278 651132.1 4765589.5 945.16 1.19 0.04 33 6 7 261 5.0 7 OTD278 651132.4 4765592.0 941.05 1.08 0.04 55 6 7 266 5.0 7 OTD278 651132.7 4765595.0 936.95 0.72 0.01 24 6 7 271 5.0 7 OTD278 651132.9 4765597.5 932.86 0.78 0.01 47 6 7 276 5.0 7 OTD278 651133.3 4765600.5 928.78 0.65 0.01 117 6 7 281 5.0 7 OTD278 651133.8 4765606.5 920.62 0.81 0.01 158 6 7 291 5.0 7 OTD278 651134.1 4765609.5 916.55 0.66 0.01 69 6 7 296 5.0 7 OTD278 651135.1 4765618.5 904.38 0.63 0.05 165 6 7 311 5.0 7 OTD278 651135.3 4765621.5 900.33 0.86 0.03 95 6 7 316 5.0 7 OTD278 651135.7 4765624.5 896.29 0.81 0.04 52 6 7 321 5.0 7 OTD278 651136.0 4765627.5 892.26 0.74 0.03 38 6 7 326 5.0 7 OTD278 651136.3 4765630.5 888.23 0.95 0.05 62 6 7 331 5.0 7 OTD278 651136.9 4765636.0 880.21 0.94 0.05 98 6 7 341 5.0 7 OTD278 651137.3 4765639.0 876.20 0.84 0.05 113 6 7 346 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD278 651137.6 4765642.0 872.19 0.76 0.03 104 6 7 351 5.0 7 OTD278 651137.9 4765645.0 868.22 0.81 0.04 134 6 7 356 5.0 7 OTD278 651138.3 4765648.0 864.24 0.62 0.02 51 6 7 361 5.0 7 OTD278 651138.6 4765651.0 860.26 0.95 0.02 46 6 7 366 5.0 7 OTD278 651138.9 4765654.0 856.29 0.93 0.04 43 6 7 371 5.0 7 OTD278 651139.3 4765657.0 852.33 1.22 0.07 56 6 7 376 5.0 7 OTD278 651139.6 4765660.0 848.38 0.71 0.03 51 6 7 381 5.0 7 OTD278 651139.9 4765663.0 844.41 0.67 0.03 41 6 7 386 5.0 7 OTD278 651140.3 4765666.0 840.48 0.65 0.04 32 6 7 391 5.0 7 OTD278 651140.7 4765669.5 836.54 0.77 0.05 41 6 7 396 5.0 7 OTD278 651141.1 4765672.5 832.60 0.79 0.03 59 6 7 401 5.0 7 OTD278 651141.5 4765675.5 828.68 0.69 0.01 28 6 7 406 5.0 7 OTD278 651142.3 4765682.0 820.84 0.95 0.03 77 6 7 416 5.0 7 OTD278 651142.6 4765685.0 816.94 0.88 0.04 29 6 7 421 5.0 7 OTD278 651143.0 4765688.0 813.05 0.65 0.03 21 6 7 426 5.0 7 OTD278 651143.4 4765691.5 809.16 0.81 0.05 83 6 7 431 5.0 7 OTD278 651144.1 4765697.0 801.40 0.86 0.04 104 6 7 441 5.0 7 OTD278 651144.4 4765700.5 797.54 0.88 0.03 85 6 7 446 5.0 7 OTD278 651145.1 4765707.0 789.85 0.68 0.03 47 6 7 456 5.0 7 OTD278 651145.8 4765713.5 782.19 0.74 0.04 84 6 7 466 5.0 7 OTD278 651146.1 4765716.0 778.37 0.74 0.03 72 6 7 471 5.0 7 OTD278 651146.5 4765719.0 774.56 0.64 0.02 45 6 7 476 5.0 7 OTD278 651146.8 4765722.0 771.14 0.63 0.03 99 6 7 480 4.0 7 OTD278 651147.1 4765725.5 767.71 0.68 0.03 71 7 1 485 5.0 7 OTD278 651147.5 4765728.5 763.93 0.72 0.01 42 7 1 490 5.0 7 OTD278 651147.9 4765732.0 760.15 0.79 0.03 47 7 1 495 5.0 7 OTD278 651148.3 4765735.0 756.38 0.77 0.03 27 7 1 500 5.0 7 OTD278 651149.2 4765741.5 748.86 1.25 0.04 76 7 1 510 5.0 7 OTD278 651149.7 4765745.0 745.11 1.22 0.05 97 7 1 515 5.0 7 OTD278 651150.1 4765748.0 741.36 0.84 0.07 165 7 1 520 5.0 7 OTD278 651150.6 4765751.5 737.62 0.64 0.05 138 7 1 525 5.0 7 OTD278 651151.0 4765754.5 733.90 0.75 0.03 105 7 1 530 5.0 7 OTD278 651151.4 4765758.0 730.17 0.86 0.03 136 7 1 535 5.0 7 OTD278 651151.9 4765761.0 726.45 0.60 0.04 94 7 1 540 5.0 7 OTD278 651152.3 4765764.0 722.72 0.91 0.09 152 7 1 545 5.0 7 OTD278 651152.8 4765767.5 719.02 0.83 0.08 126 7 1 550 5.0 7 OTD278 651154.1 4765777.5 708.29 0.64 0.10 783 7 1 564 4.0 7 OTD278 651154.5 4765780.5 704.99 0.62 0.07 199 10 1 569 5.0 7 OTD278 651155.4 4765787.5 697.64 0.61 0.05 106 10 1 579 5.0 7 OTD278 651158.5 4765807.5 675.84 0.79 0.11 151 10 7 609 5.0 7 OTD282 651325.9 4765714.0 1017.06 1.02 0.02 33 6 7 171 5.0 7 OTD282 651325.9 4765716.5 1012.73 0.77 0.01 13 6 7 176 5.0 7 OTD282 651325.9 4765718.5 1009.70 0.66 0.02 20 6 7 178 2.0 7 OTD282 651325.9 4765720.0 1006.67 2.67 0.12 60 4 7 183 5.0 7 OTD282 651325.9 4765722.5 1002.34 1.37 0.03 12 4 7 188 5.0 7 OTD282 651325.9 4765725.0 998.01 1.16 0.04 16 4 7 193 5.0 7 OTD282 651325.9 4765727.5 993.68 1.17 0.01 48 4 7 198 5.0 7 OTD282 651325.9 4765730.0 989.35 1.26 0.01 38 4 7 203 5.0 7 OTD282 651325.9 4765732.5 985.02 1.35 0.06 28 4 7 208 5.0 7 OTD282 651325.9 4765735.0 980.69 1.22 0.02 36 4 7 213 5.0 7 OTD282 651325.9 4765737.5 976.36 0.87 0.02 19 4 7 218 5.0 7 OTD282 651325.9 4765740.0 972.03 1.47 0.03 23 4 7 223 5.0 7 OTD282 651325.9 4765742.5 967.70 1.68 0.03 16 4 7 228 5.0 7 OTD282 651325.9 4765745.0 963.37 1.38 0.02 12 4 7 233 5.0 7 OTD282 651325.9 4765747.5 959.04 1.30 0.02 6 4 7 238 5.0 7 OTD282 651325.9 4765750.0 954.71 1.56 0.04 8 4 7 243 5.0 7 OTD282 651325.9 4765752.5 950.38 1.08 0.01 17 4 7 248 5.0 7 OTD282 651325.9 4765755.0 946.05 1.36 0.03 20 4 7 253 5.0 7 OTD282 651325.9 4765757.5 941.72 1.17 0.02 32 4 7 258 5.0 7 OTD282 651325.9 4765760.0 937.39 0.83 0.02 17 4 7 263 5.0 7 OTD282 651325.9 4765762.5 933.06 1.07 0.02 28 4 7 268 5.0 7 OTD282 651325.9 4765765.0 928.73 1.87 0.02 19 4 7 273 5.0 7 OTD282 651325.9 4765767.5 924.40 1.55 0.04 23 4 7 278 5.0 7 OTD282 651325.9 4765770.0 920.07 1.19 0.04 8 4 7 283 5.0 7 OTD282 651325.9 4765772.5 915.74 1.38 0.03 50 4 7 288 5.0 7 OTD282 651325.9 4765775.0 911.41 1.14 0.04 16 4 7 293 5.0 7 OTD282 651325.9 4765777.5 907.08 0.80 0.05 15 4 7 298 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD282 651325.9 4765780.0 902.75 1.20 0.05 13 4 7 303 5.0 7 OTD282 651325.9 4765782.5 898.42 1.48 0.02 11 4 7 308 5.0 7 OTD282 651325.9 4765785.0 894.09 1.48 0.01 5 4 7 313 5.0 7 OTD282 651325.9 4765787.5 889.76 1.38 0.04 121 4 7 318 5.0 7 OTD282 651325.9 4765790.0 885.43 1.27 0.03 7 4 7 323 5.0 7 OTD282 651325.9 4765792.5 881.10 0.96 0.02 18 4 7 328 5.0 7 OTD282 651325.9 4765795.0 876.77 0.81 0.04 31 4 7 333 5.0 7 OTD282 651325.9 4765797.5 872.44 1.36 0.04 96 4 7 338 5.0 7 OTD282 651325.9 4765800.0 868.11 1.21 0.05 24 4 7 343 5.0 7 OTD282 651325.9 4765802.5 863.78 1.54 0.07 28 4 7 348 5.0 7 OTD282 651325.9 4765805.0 859.45 1.88 0.12 32 4 7 353 5.0 7 OTD282 651325.9 4765807.5 855.12 1.25 0.07 24 4 7 358 5.0 7 OTD282 651325.9 4765810.0 850.79 1.06 0.02 29 4 7 363 5.0 7 OTD282 651325.9 4765812.5 846.46 1.11 0.02 39 4 7 368 5.0 7 OTD282 651325.9 4765815.0 842.13 1.32 0.03 32 4 7 373 5.0 7 OTD282 651325.9 4765817.5 837.80 1.40 0.04 11 4 7 378 5.0 7 OTD282 651325.9 4765820.0 833.47 1.30 0.04 15 4 7 383 5.0 7 OTD282 651325.9 4765822.5 829.14 1.13 0.05 9 4 7 388 5.0 7 OTD282 651325.9 4765825.0 824.81 1.52 0.07 29 4 7 393 5.0 7 OTD282 651325.9 4765827.5 820.48 1.66 0.09 23 4 7 398 5.0 7 OTD282 651325.9 4765830.0 816.15 1.43 0.08 23 4 7 403 5.0 7 OTD282 651325.9 4765832.5 811.82 1.18 0.06 19 4 7 408 5.0 7 OTD282 651325.9 4765835.0 807.49 0.79 0.05 23 4 7 413 5.0 7 OTD282 651325.9 4765837.5 803.16 0.88 0.05 20 4 7 418 5.0 7 OTD282 651325.9 4765840.0 798.83 1.58 0.12 29 4 7 423 5.0 7 OTD282 651325.9 4765842.5 794.50 0.79 0.04 38 4 7 428 5.0 7 OTD282 651325.9 4765845.0 790.17 0.99 0.04 26 4 7 433 5.0 7 OTD282 651325.9 4765847.5 785.84 1.13 0.04 37 4 7 438 5.0 7 OTD282 651325.9 4765850.0 781.51 1.12 0.25 30 4 7 443 5.0 7 OTD282 651325.9 4765852.5 777.18 1.42 0.05 39 4 7 448 5.0 7 OTD282 651325.9 4765855.0 772.85 1.74 0.09 9 4 7 453 5.0 7 OTD282 651325.9 4765857.5 768.52 1.13 0.11 22 4 7 458 5.0 7 OTD282 651325.9 4765860.0 764.19 1.65 0.17 91 4 7 463 5.0 7 OTD282 651325.9 4765862.5 759.86 1.66 0.13 55 4 7 468 5.0 7 OTD282 651325.9 4765864.5 756.82 1.08 0.04 15 4 7 470 2.0 7 OTD282 651325.9 4765866.0 753.79 0.83 0.06 27 6 7 475 5.0 7 OTD282 651325.9 4765868.5 749.46 1.08 0.07 31 6 7 480 5.0 7 OTD282 651325.9 4765871.0 745.13 0.87 0.05 86 6 7 485 5.0 7 OTD282 651325.9 4765873.5 740.80 0.83 0.04 32 6 7 490 5.0 7 OTD282 651325.9 4765876.0 736.47 0.78 0.07 65 6 7 495 5.0 7 OTD282 651325.9 4765878.5 732.14 0.72 0.04 55 6 7 500 5.0 7 OTD282 651325.9 4765881.0 727.81 1.16 0.10 69 6 7 505 5.0 7 OTD282 651325.9 4765883.5 723.48 0.97 0.03 84 6 7 510 5.0 7 OTD282 651325.9 4765886.0 719.15 0.76 0.02 75 6 7 515 5.0 7 OTD282 651325.9 4765888.5 714.82 0.70 0.02 179 6 7 520 5.0 7 OTD282 651325.9 4765891.0 710.49 0.64 0.02 54 6 7 525 5.0 7 OTD282 651325.9 4765893.5 706.16 0.83 0.04 72 6 7 530 5.0 7 OTD282 651325.9 4765896.0 701.83 0.70 0.01 112 6 7 535 5.0 7 OTD282 651325.9 4765898.5 697.50 0.95 0.03 85 6 7 540 5.0 7 OTD282 651325.9 4765901.0 693.17 0.74 0.04 70 6 7 545 5.0 7 OTD282 651325.9 4765903.5 688.84 0.89 0.05 33 6 7 550 5.0 7 OTD282 651325.9 4765906.0 684.94 1.03 0.05 55 6 7 554 4.0 7 OTD282 651325.9 4765930.5 642.08 0.93 0.12 91 10 1 604 5.0 7 OTD282 651325.9 4765933.0 637.75 0.64 0.15 89 10 1 609 5.0 7 OTD282 651325.9 4765948.0 611.76 0.82 0.12 92 10 1 639 5.0 7 OTD282 651325.9 4765955.5 598.77 0.70 0.08 79 10 1 654 5.0 7 OTD282 651325.9 4765993.0 533.82 0.64 0.11 146 10 14 729 5.0 7 OTD282 651325.9 4765995.5 529.49 0.73 0.10 156 10 14 734 5.0 7 OTD282 651325.9 4765998.0 525.16 0.73 0.11 200 10 14 739 5.0 7 OTD282 651325.9 4766008.0 507.84 0.68 0.14 157 10 14 759 5.0 7 OTD286 651316.4 4765410.5 899.31 1.05 0.05 19 6 7 300 2.0 7 OTD286 651316.2 4765412.5 896.25 1.09 0.04 47 4 7 305 5.0 7 OTD286 651315.9 4765415.0 891.88 1.02 0.02 55 4 7 310 5.0 7 OTD286 651315.7 4765417.0 887.51 1.00 0.01 28 4 7 315 5.0 7 OTD286 651315.4 4765419.5 883.13 1.06 0.01 38 4 7 320 5.0 7 OTD286 651315.3 4765422.0 878.76 0.96 0.02 78 4 7 325 5.0 7 OTD286 651314.9 4765424.5 874.39 1.16 0.02 81 4 7 330 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD286 651314.7 4765427.0 870.02 1.60 0.04 42 4 7 335 5.0 7 OTD286 651314.4 4765429.0 865.64 1.16 0.04 67 4 7 340 5.0 7 OTD286 651314.2 4765431.5 861.27 1.19 0.03 90 4 7 345 5.0 7 OTD286 651313.9 4765433.5 856.90 0.76 0.01 56 4 7 350 5.0 7 OTD286 651313.7 4765436.0 852.52 1.41 0.02 75 4 7 355 5.0 7 OTD286 651313.4 4765438.5 848.15 1.14 0.01 78 4 7 360 5.0 7 OTD286 651313.2 4765441.0 843.78 1.17 0.01 35 4 7 365 5.0 7 OTD286 651312.9 4765443.0 839.40 0.99 0.01 39 4 7 370 5.0 7 OTD286 651312.8 4765445.5 835.03 1.11 0.01 93 4 7 375 5.0 7 OTD286 651312.5 4765448.0 830.66 1.00 0.02 88 4 7 380 5.0 7 OTD286 651312.3 4765450.5 826.28 1.16 0.03 48 4 7 385 5.0 7 OTD286 651312.0 4765453.0 821.91 1.22 0.01 78 4 7 390 5.0 7 OTD286 651311.8 4765455.0 817.54 1.66 0.03 69 4 7 395 5.0 7 OTD286 651311.5 4765457.5 813.16 1.07 0.03 78 4 7 400 5.0 7 OTD286 651311.3 4765460.0 808.79 1.25 0.04 261 4 7 405 5.0 7 OTD286 651311.0 4765462.5 804.42 1.12 0.02 62 4 7 410 5.0 7 OTD286 651310.8 4765465.0 800.05 1.43 0.02 121 4 7 415 5.0 7 OTD286 651310.4 4765467.5 795.67 1.65 0.03 94 4 7 420 5.0 7 OTD286 651310.3 4765469.5 791.74 1.51 0.03 155 4 7 424 4.0 7 OTD286 651310.0 4765471.5 787.80 2.31 0.02 121 2 7 429 5.0 7 OTD286 651309.8 4765474.0 783.43 1.86 0.03 126 2 7 434 5.0 7 OTD286 651309.5 4765476.5 779.05 2.09 0.02 91 2 7 439 5.0 7 OTD286 651309.3 4765479.0 774.68 2.27 0.03 60 2 7 444 5.0 7 OTD286 651309.1 4765481.5 770.31 1.65 0.01 75 2 7 449 5.0 7 OTD286 651308.8 4765483.5 765.94 2.28 0.03 83 2 7 454 5.0 7 OTD286 651308.6 4765486.0 761.56 1.99 0.05 49 2 7 459 5.0 7 OTD286 651308.3 4765488.5 757.19 2.19 0.03 39 2 7 464 5.0 7 OTD286 651308.1 4765491.0 752.82 2.14 0.04 18 2 7 469 5.0 7 OTD286 651307.8 4765493.5 748.44 2.21 0.04 19 2 7 474 5.0 7 OTD286 651307.6 4765495.5 744.07 2.49 0.02 38 2 7 479 5.0 7 OTD286 651307.3 4765498.0 739.70 2.08 0.03 68 2 7 484 5.0 7 OTD286 651307.1 4765500.5 735.32 2.67 0.07 91 2 7 489 5.0 7 OTD286 651306.8 4765503.0 730.95 2.92 0.06 62 2 7 494 5.0 7 OTD286 651306.6 4765505.5 726.58 1.86 0.03 39 2 7 499 5.0 7 OTD286 651306.3 4765508.0 722.20 2.62 0.05 48 2 7 504 5.0 7 OTD286 651306.1 4765510.0 717.83 2.88 0.03 24 2 7 509 5.0 7 OTD286 651305.8 4765512.5 713.46 2.92 0.03 39 2 7 514 5.0 7 OTD286 651305.6 4765514.5 709.09 2.28 0.03 24 2 7 519 5.0 7 OTD286 651305.3 4765517.0 704.71 3.64 0.08 41 2 7 524 5.0 7 OTD286 651305.1 4765519.5 700.34 2.10 0.09 83 2 7 529 5.0 7 OTD286 651304.8 4765522.0 695.97 2.88 0.14 42 2 7 534 5.0 7 OTD286 651304.6 4765524.0 691.59 3.82 0.26 260 2 7 539 5.0 7 OTD286 651304.3 4765526.5 687.22 2.22 0.26 100 2 7 544 5.0 7 OTD286 651304.1 4765529.0 682.85 2.00 0.06 215 2 7 549 5.0 7 OTD286 651303.8 4765531.5 678.47 5.01 0.19 665 2 7 554 5.0 7 OTD286 651303.6 4765534.0 674.10 4.43 0.26 217 2 7 559 5.0 7 OTD286 651303.3 4765536.0 669.73 4.33 0.26 241 2 7 564 5.0 7 OTD286 651303.1 4765538.5 665.35 2.26 0.11 203 2 7 569 5.0 7 OTD286 651302.9 4765541.0 660.98 1.61 0.09 193 2 7 574 5.0 7 OTD286 651302.6 4765543.5 656.61 1.61 0.07 95 2 7 579 5.0 7 OTD286 651302.4 4765546.0 652.23 3.58 0.17 43 2 7 584 5.0 7 OTD286 651302.1 4765548.5 647.86 1.54 0.12 9 4 7 589 5.0 7 OTD286 651301.3 4765556.0 633.87 3.02 0.07 37 2 7 605 5.0 7 OTD286 651301.0 4765558.5 629.49 2.41 0.03 24 2 7 610 5.0 7 OTD286 651300.8 4765561.0 625.12 1.98 0.07 43 2 7 615 5.0 7 OTD286 651300.5 4765563.0 620.75 2.48 0.02 17 2 7 620 5.0 7 OTD286 651300.3 4765565.5 616.38 2.08 0.04 28 2 7 625 5.0 7 OTD286 651300.0 4765568.0 612.00 2.45 0.03 45 2 7 630 5.0 7 OTD286 651299.8 4765569.5 608.94 2.17 0.03 145 2 7 632 2.0 7 OTD286 651299.7 4765571.5 605.88 1.49 0.04 114 4 7 637 5.0 7 OTD286 651299.4 4765574.0 601.51 1.82 0.06 40 4 7 642 5.0 7 OTD286 651299.2 4765576.0 597.13 1.63 0.04 114 4 7 647 5.0 7 OTD286 651298.9 4765578.5 592.76 1.68 0.05 21 4 7 652 5.0 7 OTD286 651298.7 4765581.0 588.39 1.42 0.08 46 4 7 657 5.0 7 OTD286 651298.4 4765583.5 584.01 1.80 0.11 100 4 7 662 5.0 7 OTD286 651298.2 4765586.0 579.64 1.77 0.05 124 4 7 667 5.0 7 OTD286 651297.9 4765588.5 575.27 1.43 0.06 134 4 7 672 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------- -------- --------- --------- -------- -------- -------- ------ --------- ----- ------ ---- OTD286 651297.7 4765590.5 570.89 1.20 0.09 101 4 7 677 5.0 7 OTD286 651297.4 4765593.0 566.52 1.50 0.06 71 4 7 682 5.0 7 OTD286 651297.2 4765595.5 562.15 1.31 0.05 32 4 7 687 5.0 7 OTD286 651297.0 4765598.0 557.78 1.46 0.07 61 4 7 692 5.0 7 OTD286 651296.5 4765603.0 549.03 0.86 0.09 61 6 7 702 5.0 7 OTD286 651296.0 4765607.5 540.28 0.77 0.08 116 6 7 712 5.0 7 OTD286 651295.8 4765609.5 535.91 1.23 0.07 87 6 7 717 5.0 7 OTD286 651295.5 4765612.0 531.54 1.18 0.03 190 6 7 722 5.0 7 OTD286 651295.3 4765614.5 527.16 1.02 0.02 159 6 7 727 5.0 7 OTD286 651295.0 4765616.5 522.79 1.20 0.04 213 6 7 732 5.0 7 OTD286 651294.8 4765619.0 518.42 1.05 0.03 157 6 7 737 5.0 7 OTD286 651294.5 4765621.5 514.04 1.06 0.03 141 6 7 742 5.0 7 OTD286 651294.3 4765624.0 509.67 1.26 0.03 150 6 7 747 5.0 7 OTD286 651294.0 4765626.5 505.30 1.24 0.03 338 6 7 752 5.0 7 OTD286 651293.8 4765629.0 500.93 0.98 0.02 172 6 7 757 5.0 7 OTD286 651293.5 4765631.0 496.55 0.75 0.02 144 6 7 762 5.0 7 OTD286 651293.3 4765633.5 492.18 0.71 0.02 107 6 7 767 5.0 7 OTD286 651293.0 4765636.0 487.81 0.69 0.03 85 6 7 772 5.0 7 OTD286 651292.8 4765638.5 483.43 0.91 0.03 157 6 7 777 5.0 7 OTD286 651292.5 4765641.0 479.06 1.03 0.05 181 6 7 782 5.0 7 OTD286 651292.3 4765643.0 474.69 0.71 0.03 195 6 7 787 5.0 7 OTD286 651291.9 4765647.5 467.25 0.65 0.05 145 6 7 794 2.0 7 OTD286 651291.7 4765649.0 464.19 0.67 0.03 131 7 1 799 5.0 7 OTD286 651291.4 4765651.5 459.82 0.76 0.04 119 7 1 804 5.0 7 OTD286 651291.2 4765654.0 455.44 0.75 0.04 148 7 1 809 5.0 7 OTD286 651290.9 4765656.5 451.07 1.20 0.08 210 7 1 814 5.0 7 OTD286 651290.7 4765658.5 446.70 0.93 0.05 105 7 1 819 5.0 7 OTD286 651290.4 4765661.0 442.33 1.11 0.04 144 7 1 824 5.0 7 OTD286 651290.2 4765663.5 437.95 1.13 0.03 126 7 1 829 5.0 7 OTD286 651289.9 4765666.0 433.58 0.69 0.05 172 7 1 834 5.0 7 OTD287 651130.8 4765669.5 995.39 0.63 0.05 133 10 7 196 5.0 7 OTD287 651143.6 4765788.0 816.27 0.87 0.15 128 6 7 411 5.0 7 OTD287 651144.0 4765791.0 812.21 0.87 0.13 185 6 7 416 5.0 7 OTD287 651144.5 4765793.0 808.15 0.72 0.08 147 6 7 421 5.0 7 OTD287 651144.9 4765796.0 804.10 0.71 0.11 144 6 7 426 5.0 7 OTD287 651146.2 4765805.0 791.97 0.61 0.06 107 6 7 441 5.0 7 OTD287 651148.1 4765816.5 776.73 0.70 0.03 120 6 7 458.8 2.8 7 OTD287A 651140.4 4765766.5 848.87 0.64 0.07 183 6 7 371 5.0 7 OTD287A 651141.3 4765772.0 840.68 0.63 0.06 71 6 7 381 5.0 7 OTD287A 651142.9 4765783.5 824.28 0.70 0.14 84 6 7 401 5.0 7 OTD287A 651143.9 4765789.0 816.09 1.01 0.16 87 6 7 411 5.0 7 OTD287A 651144.3 4765792.0 812.00 1.04 0.15 126 6 7 416 5.0 7 OTD287A 651144.8 4765794.5 807.92 0.98 0.11 194 6 7 421 5.0 7 OTD287A 651145.3 4765797.5 803.85 0.86 0.11 118 6 7 426 5.0 7 OTD287A 651146.3 4765803.5 795.72 0.63 0.08 81 6 7 436 5.0 7 OTD287A 651146.8 4765806.5 791.69 0.68 0.09 80 6 7 441 5.0 7 OTD287A 651148.8 4765818.5 775.62 0.89 0.09 115 6 7 461 5.0 7 OTD287A 651151.5 4765833.5 755.67 0.61 0.03 87 6 7 486 5.0 7 OTD287A 651152.1 4765836.5 751.70 0.74 0.07 80 6 7 491 5.0 7 OTD287A 651152.7 4765839.5 747.72 0.99 0.06 148 6 7 496 5.0 7 OTD287A 651156.8 4765860.5 720.04 0.88 0.07 75 6 7 531 5.0 7 OTD287A 651157.4 4765863.0 716.10 0.63 0.06 121 6 7 536 5.0 7 OTD287A 651158.0 4765866.0 712.19 0.79 0.06 112 6 7 541 5.0 7 OTD287A 651158.6 4765869.0 708.28 0.81 0.06 119 6 7 546 5.0 7 OTD287A 651159.3 4765872.5 704.36 0.72 0.07 173 6 7 551 5.0 7 OTD287A 651160.6 4765878.5 696.59 0.63 0.04 184 6 7 561 5.0 7 OTD287A 651161.3 4765881.5 692.70 0.61 0.04 129 6 7 566 5.0 7 OTD287A 651162.1 4765885.0 688.83 0.89 0.06 143 6 7 571 5.0 7 OTD287A 651162.8 4765888.5 684.97 0.92 0.06 97 6 7 576 5.0 7 OTD287A 651163.6 4765891.5 681.11 1.05 0.07 120 6 7 581 5.0 7 OTD287A 651164.1 4765894.0 678.02 0.70 0.05 113 6 7 584 3.0 7 OTD287A 651166.3 4765902.0 667.29 0.78 0.07 145 10 7 599 5.0 7 OTD287A 651167.9 4765908.5 659.67 0.81 0.11 200 10 7 609 5.0 7 OTD287A 651181.4 4765957.0 603.90 0.69 0.10 144 10 7 684 5.0 7 OTD287A 651182.3 4765960.0 600.26 0.77 0.10 175 10 7 689 5.0 7 OTD287A 651183.2 4765964.0 596.61 0.70 0.14 217 10 7 694 5.0 7 OTD287A 651185.1 4765970.5 589.42 0.70 0.22 195 10 7 704 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------- -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD287A 651186.1 4765974.0 585.82 0.67 0.09 157 10 7 709 5.0 7 OTD287A 651187.1 4765977.0 582.23 0.68 0.09 225 10 7 714 5.0 7 OTD289 651281.2 4765781.0 887.70 0.72 0.05 85 6 7 298 2.0 7 OTD289 651282.2 4765780.5 884.43 2.00 0.08 40 4 7 303 5.0 7 OTD289 651283.7 4765779.5 879.75 1.61 0.05 21 4 7 308 5.0 7 OTD289 651285.1 4765778.5 875.07 1.59 0.02 63 4 7 313 5.0 7 OTD289 651286.6 4765777.5 870.39 1.14 0.01 42 4 7 318 5.0 7 OTD289 651288.0 4765776.5 865.72 1.27 0.02 7 4 7 323 5.0 7 OTD289 651289.4 4765775.5 861.04 1.60 0.03 10 4 7 328 5.0 7 OTD289 651290.9 4765774.5 856.36 1.99 0.06 14 4 7 333 5.0 7 OTD289 651292.3 4765773.5 851.68 1.44 0.04 15 4 7 338 5.0 7 OTD289 651293.8 4765772.5 846.99 1.43 0.02 19 4 7 343 5.0 7 OTD289 651295.2 4765771.5 842.31 2.00 0.08 60 4 7 348 5.0 7 OTD289 651296.6 4765770.0 837.63 1.17 0.03 5 4 7 353 5.0 7 OTD289 651298.1 4765769.0 832.94 1.44 0.03 10 4 7 358 5.0 7 OTD289 651299.5 4765768.0 828.25 1.70 0.04 9 4 7 363 5.0 7 OTD289 651300.9 4765767.0 823.56 1.51 0.01 11 4 7 368 5.0 7 OTD289 651302.3 4765766.0 818.87 1.77 0.02 21 4 7 373 5.0 7 OTD289 651303.8 4765765.0 814.18 2.02 0.04 27 4 7 378 5.0 7 OTD289 651305.2 4765764.0 809.49 1.82 0.03 30 4 7 383 5.0 7 OTD289 651306.6 4765763.0 804.80 1.09 0.02 10 4 7 388 5.0 7 OTD289 651308.0 4765762.0 800.11 1.50 0.04 27 4 7 393 5.0 7 OTD289 651309.4 4765761.0 795.42 1.60 0.03 47 4 7 398 5.0 7 OTD289 651310.8 4765760.0 790.73 1.43 0.03 34 4 7 403 5.0 7 OTD289 651312.2 4765759.0 786.04 1.52 0.02 89 4 7 408 5.0 7 OTD289 651313.6 4765758.0 781.36 1.48 0.03 128 4 7 413 5.0 7 OTD289 651314.9 4765757.0 776.67 1.71 0.05 22 4 7 418 5.0 7 OTD289 651316.3 4765756.0 771.98 1.37 0.01 19 4 7 423 5.0 7 OTD289 651317.7 4765754.5 767.29 0.99 0.03 21 4 7 428 5.0 7 OTD289 651319.1 4765753.5 762.60 1.31 0.02 35 4 7 433 5.0 7 OTD289 651320.2 4765753.0 758.85 1.33 0.03 12 4 7 436 3.0 7 OTD289 651321.3 4765752.0 755.09 1.96 0.03 23 2 7 441 5.0 7 OTD289 651322.7 4765751.0 750.40 2.17 0.04 22 2 7 446 5.0 7 OTD289 651324.1 4765750.0 745.72 1.50 0.05 32 2 7 451 5.0 7 OTD289 651325.6 4765749.0 741.03 0.90 0.04 13 2 7 456 5.0 7 OTD289 651326.9 4765748.0 736.34 1.05 0.03 17 2 7 461 5.0 7 OTD289 651328.3 4765747.0 731.65 2.55 0.09 66 2 7 466 5.0 7 OTD289 651329.8 4765745.5 726.96 2.33 0.09 32 2 7 471 5.0 7 OTD289 651331.2 4765744.5 722.27 2.15 0.07 29 2 7 476 5.0 7 OTD289 651332.6 4765743.5 717.58 2.48 0.08 36 2 7 481 5.0 7 OTD289 651333.9 4765742.5 712.89 2.23 0.12 38 2 7 486 5.0 7 OTD289 651335.3 4765741.5 708.20 2.46 0.13 24 2 7 491 5.0 7 OTD289 651336.7 4765740.5 703.51 2.33 0.06 15 2 7 496 5.0 7 OTD289 651338.1 4765739.5 698.82 2.14 0.07 44 2 7 501 5.0 7 OTD289 651339.4 4765738.5 694.13 1.68 0.09 75 2 7 506 5.0 7 OTD289 651340.8 4765737.5 689.44 2.74 0.14 44 2 7 511 5.0 7 OTD289 651342.2 4765736.5 684.75 3.03 0.20 82 2 7 516 5.0 7 OTD289 651343.6 4765735.0 680.06 3.59 0.24 43 2 7 521 5.0 7 OTD289 651344.9 4765734.0 675.37 3.54 0.24 21 2 7 526 5.0 7 OTD289 651346.3 4765733.0 670.67 3.84 0.26 12 2 7 531 5.0 7 OTD289 651347.6 4765731.5 665.98 2.43 0.42 17 2 7 536 5.0 7 OTD289 651348.9 4765730.5 661.28 3.19 0.26 75 2 7 541 5.0 7 OTD289 651350.3 4765729.5 656.58 2.27 0.26 104 2 7 546 5.0 7 OTD289 651351.6 4765728.5 651.88 3.30 0.24 28 2 7 551 5.0 7 OTD289 651352.9 4765727.5 647.18 1.84 0.19 74 2 7 556 5.0 7 OTD289 651354.3 4765726.0 642.47 3.78 0.25 87 2 7 561 5.0 7 OTD289 651355.6 4765725.0 637.77 1.49 0.17 93 2 7 566 5.0 7 OTD289 651356.8 4765724.0 633.06 1.35 0.16 48 2 7 571 5.0 7 OTD289 651358.1 4765723.0 628.35 3.46 0.20 20 2 7 576 5.0 7 OTD289 651359.4 4765722.0 623.64 0.61 0.06 5 2 7 581 5.0 7 OTD289 651360.8 4765720.5 618.93 0.76 0.05 5 2 7 586 5.0 7 OTD289 651362.0 4765719.5 614.21 3.17 0.18 41 2 7 591 5.0 7 OTD289 651363.3 4765718.5 609.50 3.14 0.19 37 2 7 596 5.0 7 OTD289 651364.6 4765717.5 604.78 2.27 0.12 10 2 7 601 5.0 7 OTD289 651365.9 4765716.5 600.06 2.41 0.12 11 2 7 606 5.0 7 OTD289 651367.1 4765715.5 595.81 4.20 0.16 47 2 7 610 4.0 7 OTD289 651368.2 4765714.5 591.56 1.36 0.04 29 4 7 615 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD289 651369.4 4765713.5 586.84 1.79 0.05 42 4 7 620 5.0 7 OTD289 651370.8 4765712.5 582.12 1.41 0.04 30 4 7 625 5.0 7 OTD289 651372.0 4765711.5 577.40 1.08 0.04 54 4 7 630 5.0 7 OTD289 651373.3 4765710.5 572.67 1.29 0.03 73 4 7 635 5.0 7 OTD289 651374.6 4765709.0 567.95 1.75 0.05 83 4 7 640 5.0 7 OTD289 651375.9 4765708.0 563.23 1.25 0.07 38 4 7 645 5.0 7 OTD289 651377.2 4765707.0 558.51 1.89 0.04 93 4 7 650 5.0 7 OTD289 651378.4 4765706.0 553.79 1.15 0.04 121 4 7 655 5.0 7 OTD289 651379.7 4765705.0 549.07 1.29 0.03 93 4 7 660 5.0 7 OTD289 651381.0 4765704.0 544.34 1.30 0.03 94 4 7 665 5.0 7 OTD298 651308.3 4765349.5 795.29 1.08 0.02 48 4 7 421 5.0 7 OTD298 651307.9 4765351.5 790.87 1.29 0.03 91 4 7 426 5.0 7 OTD298 651307.6 4765354.0 786.45 1.04 0.01 64 4 7 431 5.0 7 OTD298 651307.2 4765356.5 782.02 0.71 0.01 89 4 7 436 5.0 7 OTD298 651306.9 4765358.5 777.60 0.96 0.04 83 4 7 441 5.0 7 OTD298 651306.1 4765363.0 768.74 1.16 0.02 131 4 7 451 5.0 7 OTD298 651305.6 4765365.0 764.31 1.76 0.01 75 4 7 456 5.0 7 OTD298 651305.3 4765367.5 759.87 1.85 0.01 78 4 7 461 5.0 7 OTD298 651304.9 4765370.0 755.44 1.32 0.01 59 4 7 466 5.0 7 OTD298 651304.5 4765372.0 751.00 1.07 0.01 116 4 7 471 5.0 7 OTD298 651304.1 4765374.5 746.56 1.40 0.06 107 4 7 476 5.0 7 OTD298 651303.7 4765376.5 742.12 1.20 0.02 85 4 7 481 5.0 7 OTD298 651303.3 4765379.0 737.67 1.04 0.03 100 4 7 486 5.0 7 OTD298 651302.8 4765381.0 733.23 1.02 0.05 70 4 7 491 5.0 7 OTD298 651302.4 4765383.5 728.78 1.14 0.02 76 4 7 496 5.0 7 OTD298 651302.0 4765385.5 724.33 1.29 0.02 55 4 7 501 5.0 7 OTD298 651299.8 4765396.5 702.04 1.00 0.01 39 4 7 526 5.0 7 OTD298 651298.9 4765401.0 693.12 0.74 0.02 53 4 7 536 5.0 7 OTD298 651297.9 4765405.0 684.18 0.66 0.01 26 4 7 546 5.0 7 OTD298 651297.4 4765407.5 679.72 1.15 0.03 68 4 7 551 5.0 7 OTD298 651297.0 4765409.5 675.24 0.91 0.02 54 4 7 556 5.0 7 OTD298 651296.5 4765412.0 670.76 0.99 0.01 53 4 7 561 5.0 7 OTD298 651296.0 4765414.0 666.29 0.77 0.02 71 4 7 566 5.0 7 OTD298 651295.5 4765416.0 661.81 1.54 0.03 90 4 7 571 5.0 7 OTD298 651295.1 4765418.0 657.33 1.24 0.02 93 4 7 576 5.0 7 OTD298 651294.6 4765420.0 652.85 0.91 0.02 69 4 7 581 5.0 7 OTD298 651294.1 4765422.5 648.37 0.86 0.02 36 4 7 586 5.0 7 OTD298 651293.6 4765424.0 643.90 1.05 0.02 68 4 7 591 5.0 7 OTD298 651293.1 4765426.5 639.41 1.32 0.03 95 4 7 596 5.0 7 OTD298 651292.6 4765428.5 634.93 1.64 0.03 119 4 7 601 5.0 7 OTD298 651292.1 4765430.5 630.45 1.20 0.03 49 4 7 606 5.0 7 OTD298 651291.6 4765433.0 625.97 1.27 0.03 133 4 7 611 5.0 7 OTD298 651291.1 4765435.0 621.48 1.73 0.04 101 4 7 616 5.0 7 OTD298 651290.6 4765437.0 617.00 1.50 0.02 130 4 7 621 5.0 7 OTD298 651290.1 4765439.0 612.51 1.78 0.02 182 4 7 626 5.0 7 OTD298 651289.6 4765441.5 608.02 1.62 0.03 226 4 7 631 5.0 7 OTD298 651289.1 4765443.5 603.54 1.40 0.01 290 4 7 636 5.0 7 OTD298 651288.6 4765445.5 599.05 1.22 0.02 173 4 7 641 5.0 7 OTD298 651288.1 4765448.0 594.56 1.13 0.04 125 4 7 646 5.0 7 OTD298 651287.8 4765449.5 591.42 0.60 0.03 190 6 7 648 2.0 7 OTD298 651283.8 4765465.5 555.95 0.85 0.03 113 6 7 689 5.0 7 OTD298 651283.3 4765468.0 551.46 1.02 0.05 126 6 7 694 5.0 7 OTD298 651282.8 4765470.0 546.98 0.60 0.02 69 6 7 699 5.0 7 OTD298 651282.3 4765472.0 542.49 0.75 0.02 95 6 7 704 5.0 7 OTD298 651281.3 4765476.0 533.53 0.61 0.06 88 10 7 714 5.0 7 OTD298 651280.8 4765479.0 529.05 0.64 0.04 145 10 7 719 5.0 7 OTD298 651273.9 4765513.5 457.29 0.81 0.05 247 10 1 799 5.0 7 OTD303 651431.9 4765641.0 836.16 0.76 0.02 26 10 7 390 5.0 7 OTD303 651432.9 4765659.5 811.37 0.72 0.02 68 6 7 421 5.0 7 OTD303 651433.1 4765662.5 807.40 0.82 0.02 100 6 7 426 5.0 7 OTD303 651433.3 4765665.5 803.43 0.73 0.01 76 6 7 431 5.0 7 OTD303 651433.4 4765668.5 799.45 0.92 0.01 53 6 7 436 5.0 7 OTD303 651433.6 4765671.5 795.52 0.91 0.03 53 6 7 441 5.0 7 OTD303 651433.8 4765674.5 791.59 0.76 0.02 63 6 7 446 5.0 7 OTD303 651433.9 4765677.0 788.83 0.89 0.02 38 6 7 448 2.0 7 OTD303 651434.1 4765679.5 786.08 0.72 0.02 38 4 7 453 5.0 7 OTD303 651434.3 4765682.5 782.18 1.34 0.01 59 4 7 458 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD303 651434.6 4765685.5 778.28 2.03 0.03 47 4 7 463 5.0 7 OTD303 651434.8 4765688.5 774.37 2.27 0.05 44 4 7 468 5.0 7 OTD303 651435.1 4765691.5 770.48 1.16 0.01 23 4 7 473 5.0 7 OTD303 651435.3 4765695.0 766.60 1.06 0.02 15 4 7 478 5.0 7 OTD303 651435.6 4765698.0 762.71 1.05 0.01 22 4 7 483 5.0 7 OTD303 651435.9 4765701.5 758.82 1.13 0.01 17 4 7 488 5.0 7 OTD303 651436.1 4765705.0 754.95 1.11 0.01 18 4 7 493 5.0 7 OTD303 651436.4 4765708.0 751.07 0.86 0.03 26 4 7 498 5.0 7 OTD303 651436.7 4765711.0 747.20 1.27 0.02 27 4 7 503 5.0 7 OTD303 651437.1 4765714.0 743.34 1.15 0.04 22 4 7 508 5.0 7 OTD303 651437.4 4765717.5 739.48 0.92 0.03 44 4 7 513 5.0 7 OTD303 651437.7 4765720.0 735.62 0.66 0.02 13 4 7 518 5.0 7 OTD303 651438.0 4765723.5 731.78 1.10 0.02 16 4 7 523 5.0 7 OTD303 651438.4 4765726.5 727.93 1.18 0.02 8 4 7 528 5.0 7 OTD303 651438.8 4765729.5 724.09 1.27 0.03 9 4 7 533 5.0 7 OTD303 651439.1 4765733.0 720.26 1.83 0.03 17 4 7 538 5.0 7 OTD303 651439.4 4765736.0 716.44 1.26 0.02 5 4 7 543 5.0 7 OTD303 651439.8 4765739.5 712.63 1.22 0.07 9 4 7 548 5.0 7 OTD303 651440.3 4765742.5 708.81 1.14 0.06 8 4 7 553 5.0 7 OTD303 651440.7 4765746.0 705.01 1.57 0.04 16 4 7 558 5.0 7 OTD303 651441.1 4765749.0 701.22 1.40 0.04 17 4 7 563 5.0 7 OTD303 651441.6 4765752.5 697.42 1.36 0.07 11 4 7 568 5.0 7 OTD303 651442.0 4765756.0 693.63 1.30 0.04 15 4 7 573 5.0 7 OTD303 651442.4 4765759.0 689.83 1.04 0.04 16 4 7 578 5.0 7 OTD303 651442.9 4765762.5 686.04 1.57 0.06 16 4 7 583 5.0 7 OTD303 651443.4 4765765.5 682.25 1.11 0.03 23 4 7 588 5.0 7 OTD303 651443.9 4765768.5 678.46 1.72 0.04 94 4 7 593 5.0 7 OTD303 651444.4 4765772.0 674.67 2.02 0.08 115 4 7 598 5.0 7 OTD303 651444.9 4765775.5 670.88 1.58 0.04 168 4 7 603 5.0 7 OTD303 651445.5 4765778.5 667.09 1.66 0.08 27 4 7 608 5.0 7 OTD303 651446.0 4765781.5 663.31 3.17 0.21 36 4 7 613 5.0 7 OTD303 651446.6 4765785.0 659.52 3.21 0.20 25 4 7 618 5.0 7 OTD303 651447.1 4765788.0 655.76 1.45 0.04 27 4 7 623 5.0 7 OTD303 651447.7 4765791.5 652.00 1.37 0.03 29 2 7 628 5.0 7 OTD303 651448.3 4765794.5 648.24 1.96 0.04 16 2 7 633 5.0 7 OTD303 651448.9 4765798.0 644.49 2.23 0.05 27 2 7 638 5.0 7 OTD303 651449.5 4765801.0 640.76 1.80 0.05 33 2 7 643 5.0 7 OTD303 651450.1 4765804.5 637.03 1.21 0.06 19 2 7 648 5.0 7 OTD303 651450.8 4765808.0 633.30 1.95 0.11 29 2 7 653 5.0 7 OTD303 651451.4 4765811.5 629.60 2.18 0.07 34 2 7 658 5.0 7 OTD303 651452.1 4765814.5 625.89 2.52 0.09 19 2 7 663 5.0 7 OTD303 651452.8 4765817.5 622.19 2.15 0.07 17 2 7 668 5.0 7 OTD303 651453.4 4765821.0 618.51 3.15 0.08 23 2 7 673 5.0 7 OTD303 651454.3 4765825.0 614.09 2.37 0.07 12 2 1 679 5.0 7 OTD303 651454.9 4765828.5 610.41 2.31 0.11 13 2 1 684 5.0 7 OTD303 651455.7 4765831.5 606.74 2.93 0.15 65 2 1 689 5.0 7 OTD303 651456.4 4765835.0 603.09 2.85 0.15 39 2 1 694 5.0 7 OTD303 651457.1 4765838.5 599.43 1.73 0.26 29 2 1 699 5.0 7 OTD303 651457.9 4765841.5 595.78 2.17 0.38 53 2 1 704 5.0 7 OTD303 651458.8 4765845.0 592.15 2.66 0.53 27 2 1 709 5.0 7 OTD303 651459.5 4765848.0 588.52 1.64 0.30 79 2 1 714 5.0 7 OTD303 651460.3 4765851.0 584.89 2.59 0.45 90 2 1 719 5.0 7 OTD303 651461.1 4765854.5 581.29 4.25 0.38 37 2 1 724 5.0 7 OTD303 651461.9 4765858.0 577.69 2.20 0.19 24 2 1 729 5.0 7 OTD303 651462.7 4765861.5 574.09 2.74 0.17 55 2 1 734 5.0 7 OTD303 651463.3 4765864.0 571.57 1.97 0.10 45 2 1 736 2.0 7 OTD303 651463.8 4765866.0 569.07 1.76 0.16 62 5 1 741 5.0 7 OTD303 651464.6 4765869.5 565.50 1.34 0.10 89 5 1 746 5.0 7 OTD303 651465.4 4765873.0 561.92 1.27 0.11 67 5 1 751 5.0 7 OTD303 651466.3 4765876.5 558.38 1.31 0.07 53 5 1 756 5.0 7 OTD303 651467.1 4765880.0 554.84 1.05 0.06 513 5 1 761 5.0 7 OTD303 651467.9 4765883.5 551.29 1.21 0.06 248 5 1 766 5.0 7 OTD303 651468.8 4765887.0 547.76 1.37 0.06 95 5 1 771 5.0 7 OTD303 651469.8 4765890.0 544.25 1.08 0.06 62 5 1 776 5.0 7 OTD303 651470.7 4765893.5 540.74 0.99 0.04 70 5 1 781 5.0 7 OTD303 651471.6 4765897.0 537.22 1.13 0.04 57 5 1 786 5.0 7 OTD303 651472.6 4765900.5 533.74 1.22 0.03 79 5 1 791 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD303 651473.4 4765903.0 530.95 1.32 0.04 45 5 1 794 3.0 7 OTD303 651474.2 4765906.0 528.16 0.69 0.02 59 7 1 799 5.0 7 OTD303 651475.3 4765909.5 524.69 0.94 0.04 64 7 1 804 5.0 7 OTD303 651476.3 4765913.0 521.24 0.74 0.03 41 7 1 809 5.0 7 OTD303 651477.4 4765916.5 517.78 0.90 0.04 49 7 1 814 5.0 7 OTD303 651478.6 4765919.5 514.33 1.12 0.04 98 7 1 819 5.0 7 OTD303 651479.6 4765923.0 510.91 1.06 0.05 98 7 1 824 5.0 7 OTD303 651480.7 4765926.5 507.49 0.84 0.05 66 7 1 829 5.0 7 OTD303 651481.8 4765930.0 504.06 0.88 0.03 86 7 1 834 5.0 7 OTD303 651482.8 4765934.0 500.66 0.79 0.04 104 7 1 839 5.0 7 OTD303 651483.9 4765937.5 497.27 0.88 0.07 85 7 1 844 5.0 7 OTD303 651484.9 4765941.0 493.88 0.85 0.05 66 7 1 849 5.0 7 OTD303 651486.1 4765944.5 490.51 0.73 0.04 70 7 1 854 5.0 7 OTD303 651488.2 4765952.0 483.79 0.63 0.05 117 7 1 864 5.0 7 OTD303 651489.3 4765955.5 480.44 0.87 0.07 158 7 1 869 5.0 7 OTD303 651490.3 4765959.0 477.08 0.88 0.07 142 7 1 874 5.0 7 OTD303 651491.4 4765962.5 473.78 0.85 0.07 176 7 1 879 5.0 7 OTD303 651492.5 4765966.0 470.48 0.96 0.11 284 7 1 884 5.0 7 OTD303 651494.7 4765973.0 463.88 0.82 0.09 278 7 1 894 5.0 7 OTD304 651141.8 4765630.0 1012.30 0.70 0.04 18 10 7 175 5.0 7 OTD304 651143.7 4765628.5 1007.88 1.15 0.10 25 10 7 180 5.0 7 OTD304 651147.4 4765625.5 999.03 0.81 0.02 41 10 7 190 5.0 7 OTD304 651154.5 4765620.5 982.17 1.29 0.09 129 6 7 209 5.0 7 OTD304 651156.4 4765619.0 977.73 0.86 0.05 187 6 7 214 5.0 7 OTD304 651165.6 4765612.0 955.45 1.10 0.05 36 6 7 239 5.0 7 OTD304 651167.5 4765611.0 950.98 0.86 0.04 30 6 7 244 5.0 7 OTD304 651169.3 4765609.5 946.50 0.91 0.03 106 6 7 249 5.0 7 OTD304 651171.1 4765608.5 942.03 1.26 0.04 241 6 7 254 5.0 7 OTD304 651173.0 4765607.0 937.56 1.06 0.05 44 6 7 259 5.0 7 OTD304 651174.8 4765606.5 933.08 1.04 0.05 57 6 7 264 5.0 7 OTD304 651176.6 4765605.0 928.59 0.70 0.01 41 6 7 269 5.0 7 OTD304 651178.8 4765603.5 923.21 1.15 0.04 147 4 7 275 5.0 7 OTD304 651180.6 4765602.5 918.72 1.36 0.05 85 4 7 280 5.0 7 OTD304 651182.4 4765601.0 914.22 0.84 0.04 66 4 7 285 5.0 7 OTD304 651186.1 4765598.5 905.22 0.92 0.05 39 4 7 295 5.0 7 OTD304 651187.9 4765597.5 900.71 0.76 0.06 45 4 7 300 5.0 7 OTD304 651189.6 4765595.5 896.21 1.05 0.04 25 4 7 305 5.0 7 OTD304 651191.4 4765594.5 891.69 1.63 0.05 33 4 7 310 5.0 7 OTD304 651193.3 4765593.5 887.17 1.26 0.04 31 4 7 315 5.0 7 OTD304 651195.0 4765592.0 882.65 1.53 0.07 35 4 7 320 5.0 7 OTD304 651196.8 4765591.0 878.13 1.59 0.07 53 4 7 325 5.0 7 OTD304 651198.6 4765590.0 873.62 1.29 0.05 67 4 7 330 5.0 7 OTD304 651200.2 4765589.0 869.53 1.10 0.04 31 4 7 334 4.0 7 OTD304 651201.8 4765588.0 865.45 0.93 0.05 39 6 7 339 5.0 7 OTD304 651203.6 4765587.0 860.92 0.70 0.02 41 6 7 344 5.0 7 OTD304 651205.4 4765586.0 856.38 0.75 0.02 21 6 7 349 5.0 7 OTD304 651207.1 4765584.5 851.84 0.74 0.03 44 6 7 354 5.0 7 OTD304 651208.9 4765583.5 847.29 0.87 0.03 45 6 7 359 5.0 7 OTD304 651210.7 4765582.5 842.74 0.87 0.05 80 6 7 364 5.0 7 OTD304 651212.4 4765581.5 838.19 1.35 0.06 71 6 7 369 5.0 7 OTD304 651214.2 4765580.5 833.64 0.81 0.04 87 6 7 374 5.0 7 OTD304 651215.9 4765579.0 829.09 0.85 0.03 64 6 7 379 5.0 7 OTD304 651217.7 4765578.0 824.53 0.75 0.02 200 6 7 384 5.0 7 OTD304 651219.3 4765577.0 819.98 0.68 0.04 204 6 7 389 5.0 7 OTD304 651221.1 4765576.0 815.42 0.60 0.02 61 6 7 394 5.0 7 OTD304 651224.2 4765574.0 807.21 1.46 0.04 226 4 7 403 5.0 7 OTD304 651225.9 4765573.0 802.65 1.27 0.03 129 4 7 408 5.0 7 OTD304 651227.6 4765571.5 798.09 1.99 0.05 151 4 7 413 5.0 7 OTD304 651229.4 4765570.5 793.53 2.68 0.06 128 4 7 418 5.0 7 OTD304 651231.1 4765569.5 788.97 1.48 0.05 172 4 7 423 5.0 7 OTD304 651232.8 4765568.5 784.40 1.11 0.05 150 4 7 428 5.0 7 OTD304 651234.5 4765567.5 779.84 1.19 0.03 121 4 7 433 5.0 7 OTD304 651236.3 4765566.5 775.27 1.30 0.05 152 4 7 438 5.0 7 OTD304 651237.8 4765565.5 771.16 1.52 0.04 220 4 7 442 4.0 7 OTD304 651239.4 4765564.5 767.05 2.63 0.11 231 2 7 447 5.0 7 OTD304 651241.0 4765563.0 762.48 2.81 0.07 195 2 7 452 5.0 7 OTD304 651242.8 4765562.0 757.91 1.84 0.03 116 2 7 457 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD304 651244.1 4765561.0 754.25 2.18 0.05 150 2 7 460 3.0 7 OTD304 651245.4 4765560.0 750.60 1.27 0.04 97 4 7 465 5.0 7 OTD304 651247.1 4765559.0 746.03 0.82 0.03 32 4 7 470 5.0 7 OTD304 651250.6 4765557.0 736.89 0.96 0.03 50 4 7 480 5.0 7 OTD304 651252.3 4765556.0 732.32 1.09 0.02 41 4 7 485 5.0 7 OTD304 651254.1 4765555.0 727.75 1.17 0.03 78 4 7 490 5.0 7 OTD304 651255.8 4765554.0 723.18 1.37 0.03 65 4 7 495 5.0 7 OTD304 651257.5 4765552.5 718.62 1.49 0.03 71 4 7 500 5.0 7 OTD304 651259.2 4765551.5 714.05 1.51 0.03 47 4 7 505 5.0 7 OTD304 651260.9 4765550.0 709.48 1.50 0.03 44 4 7 510 5.0 7 OTD304 651262.6 4765549.0 704.92 1.85 0.06 45 4 7 515 5.0 7 OTD304 651264.4 4765548.5 700.35 1.78 0.06 36 4 7 520 5.0 7 OTD304 651266.1 4765547.5 695.78 1.73 0.03 37 4 7 525 5.0 7 OTD304 651267.8 4765546.0 691.22 0.78 0.02 16 4 7 530 5.0 7 OTD304 651269.5 4765545.0 686.65 1.15 0.02 23 4 7 535 5.0 7 OTD304 651271.6 4765543.5 681.16 1.86 0.05 64 2 7 541 5.0 7 OTD304 651273.2 4765542.5 676.59 2.25 0.09 63 2 7 546 5.0 7 OTD304 651274.4 4765541.5 673.40 2.00 0.07 44 2 7 548 2.0 7 OTD304 651275.6 4765541.0 670.20 1.61 0.05 90 4 7 553 5.0 7 OTD304 651277.2 4765540.0 665.63 1.66 0.08 110 4 7 558 5.0 7 OTD304 651278.9 4765538.5 661.05 1.85 0.05 61 4 7 563 5.0 7 OTD304 651280.5 4765537.5 656.48 1.70 0.04 86 4 7 568 5.0 7 OTD304 651282.1 4765536.0 651.91 2.40 0.05 66 4 7 573 5.0 7 OTD304 651283.8 4765535.0 647.34 1.84 0.03 113 4 7 578 5.0 7 OTD304 651285.4 4765534.0 642.77 1.53 0.03 82 4 7 583 5.0 7 OTD304 651287.1 4765532.5 638.20 1.52 0.03 37 4 7 588 5.0 7 OTD304 651288.8 4765531.0 633.63 1.45 0.02 56 4 7 593 5.0 7 OTD304 651290.4 4765530.0 629.06 2.29 0.04 29 4 7 598 5.0 7 OTD304 651292.1 4765528.5 624.49 1.80 0.03 100 4 7 603 5.0 7 OTD304 651293.8 4765527.5 619.92 1.34 0.03 31 4 7 608 5.0 7 OTD304 651295.4 4765526.5 615.34 1.48 0.03 49 4 7 613 5.0 7 OTD304 651297.1 4765525.0 610.77 1.54 0.03 25 4 7 618 5.0 7 OTD304 651298.8 4765524.0 606.21 1.70 0.04 70 4 7 623 5.0 7 OTD304 651300.4 4765522.5 601.64 1.60 0.04 35 4 7 628 5.0 7 OTD304 651302.1 4765521.5 597.08 1.26 0.04 23 4 7 633 5.0 7 OTD304 651303.8 4765520.0 592.51 1.70 0.03 22 4 7 638 5.0 7 OTD304 651305.4 4765519.0 587.95 1.36 0.03 30 4 7 643 5.0 7 OTD304 651307.1 4765517.5 583.39 1.39 0.04 41 4 7 648 5.0 7 OTD304 651308.8 4765516.0 578.83 1.23 0.05 42 4 7 653 5.0 7 OTD304 651310.4 4765515.0 574.28 1.31 0.03 63 4 7 658 5.0 7 OTD304 651311.9 4765514.0 570.18 1.36 0.04 32 4 7 662 4.0 7 OTD304 651312.9 4765513.0 567.44 0.84 0.05 24 6 7 664 2.0 7 OTD304 651322.5 4765506.5 541.49 0.61 0.08 64 6 7 694 5.0 7 OTD304 651325.8 4765504.0 532.38 1.11 0.04 107 6 7 704 5.0 7 OTD304 651329.4 4765501.0 522.36 0.85 0.03 66 7 1 715 5.0 7 OTD304 651331.1 4765500.0 517.80 0.88 0.05 63 7 1 720 5.0 7 OTD304 651334.3 4765497.5 508.68 1.11 0.07 52 7 1 730 5.0 7 OTD304 651336.0 4765496.0 504.12 1.44 0.07 54 7 1 735 5.0 7 OTD304 651337.6 4765494.5 499.56 0.95 0.07 49 7 1 740 5.0 7 OTD304 651339.2 4765493.5 495.00 0.86 0.05 170 7 1 745 5.0 7 OTD304 651340.8 4765492.0 490.44 1.12 0.06 86 7 1 750 5.0 7 OTD304 651344.0 4765489.5 481.31 0.82 0.04 168 7 1 760 5.0 7 OTD304 651345.6 4765488.0 476.74 2.02 0.07 264 7 1 765 5.0 7 OTD304 651347.1 4765487.0 472.18 2.57 0.08 290 7 1 770 5.0 7 OTD304 651348.6 4765486.0 467.61 1.86 0.07 167 7 1 775 5.0 7 OTD304 651350.1 4765484.5 463.04 1.34 0.05 144 7 1 780 5.0 7 OTD304 651351.5 4765483.0 458.48 1.28 0.06 299 7 1 785 5.0 7 OTD304 651352.9 4765481.5 453.91 0.87 0.05 175 7 1 790 5.0 7 OTD304 651354.4 4765480.0 449.34 0.73 0.03 153 7 1 795 5.0 7 OTD304 651355.8 4765478.5 444.78 0.84 0.04 184 7 1 800 5.0 7 OTD304 651361.7 4765473.0 426.54 1.09 0.10 207 7 1 820 5.0 7 OTD304 651364.8 4765470.0 417.44 1.02 0.07 132 7 1 830 5.0 7 OTD304 651366.3 4765468.5 412.89 0.99 0.04 221 7 1 835 5.0 7 OTD304 651367.8 4765467.0 408.34 1.03 0.05 105 7 1 840 5.0 7 OTD304 651369.3 4765465.5 403.79 0.94 0.03 93 7 1 845 5.0 7 OTD304 651370.8 4765464.0 399.24 1.06 0.05 150 7 1 850 5.0 7 OTD304 651373.9 4765461.0 390.16 0.83 0.04 64 7 1 860 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD304 651375.5 4765460.0 385.61 1.07 0.07 152 7 1 865 5.0 7 OTD304 651378.7 4765457.0 376.54 1.41 0.09 213 7 1 875 5.0 7 OTD304 651380.3 4765455.5 372.01 1.25 0.04 309 7 1 880 5.0 7 OTD304 651381.8 4765454.5 367.47 1.00 0.03 179 7 1 885 5.0 7 OTD304 651383.4 4765453.5 362.93 1.80 0.08 309 7 1 890 5.0 7 OTD304 651385.0 4765452.0 358.41 0.86 0.06 244 7 1 895 5.0 7 OTD304 651386.6 4765450.5 353.88 1.42 0.08 226 7 1 900 5.0 7 OTD304 651388.3 4765449.5 349.36 0.74 0.07 201 7 1 905 5.0 7 OTD304 651389.9 4765448.0 344.83 1.50 0.05 143 7 1 910 5.0 7 OTD304 651394.9 4765443.5 331.27 0.67 0.05 77 7 1 925 5.0 7 OTD304 651398.2 4765441.0 322.23 0.72 0.04 196 7 1 935 5.0 7 OTD305 651421.7 4765473.5 895.49 0.69 0.03 84 10 7 315 5.0 7 OTD305 651421.3 4765476.5 891.34 0.80 0.04 70 10 7 320 5.0 7 OTD305 651418.0 4765521.5 824.80 1.08 0.04 71 10 7 400 5.0 7 OTD305 651417.8 4765528.0 814.82 0.70 0.01 32 6 7 412 5.0 7 OTD305 651417.8 4765530.5 810.66 0.65 0.01 28 6 7 417 5.0 7 OTD305 651417.7 4765533.5 806.51 0.69 0.01 23 6 7 422 5.0 7 OTD305 651417.6 4765536.0 802.36 0.82 0.03 46 6 7 427 5.0 7 OTD305 651417.6 4765539.0 798.21 0.91 0.03 320 6 7 432 5.0 7 OTD305 651417.5 4765542.0 794.07 0.77 0.02 44 6 7 437 5.0 7 OTD305 651417.5 4765544.5 789.92 0.62 0.03 25 6 7 442 5.0 7 OTD305 651417.5 4765547.5 785.76 0.77 0.03 31 6 7 447 5.0 7 OTD305 651417.5 4765555.5 774.09 1.45 0.02 35 4 7 461 5.0 7 OTD305 651417.5 4765558.0 769.91 1.49 0.01 37 4 7 466 5.0 7 OTD305 651417.5 4765561.0 765.74 1.42 0.01 26 4 7 471 5.0 7 OTD305 651417.5 4765564.0 761.55 0.96 0.01 16 4 7 476 5.0 7 OTD305 651417.6 4765566.5 757.36 1.72 0.03 8 4 7 481 5.0 7 OTD305 651417.6 4765569.5 753.17 1.80 0.04 17 4 7 486 5.0 7 OTD305 651417.6 4765572.0 748.97 1.85 0.02 16 4 7 491 5.0 7 OTD305 651417.7 4765574.5 744.78 1.26 0.01 16 4 7 496 5.0 7 OTD305 651417.8 4765577.5 740.59 2.20 0.03 20 2 7 501 5.0 7 OTD305 651417.8 4765579.5 736.39 2.24 0.03 17 2 7 506 5.0 7 OTD305 651417.8 4765581.5 733.46 2.64 0.01 22 2 7 508 2.0 7 OTD305 651417.8 4765583.5 730.52 1.33 0.01 30 4 7 513 5.0 7 OTD305 651417.8 4765586.0 726.33 1.04 0.01 29 4 7 518 5.0 7 OTD305 651417.9 4765589.0 722.14 1.56 0.01 47 4 7 523 5.0 7 OTD305 651417.9 4765591.5 717.94 1.19 0.02 64 4 7 528 5.0 7 OTD305 651418.0 4765594.5 713.75 1.12 0.01 79 4 7 533 5.0 7 OTD305 651418.1 4765597.0 709.56 1.54 0.01 63 4 7 538 5.0 7 OTD305 651418.1 4765600.5 705.36 1.63 0.01 49 4 7 543 5.0 7 OTD305 651418.2 4765603.0 701.18 1.90 0.03 52 4 7 548 5.0 7 OTD305 651418.3 4765606.0 696.99 1.38 0.03 37 4 7 553 5.0 7 OTD305 651418.3 4765608.5 692.80 1.38 0.03 49 4 7 558 5.0 7 OTD305 651418.4 4765611.5 688.62 1.44 0.03 35 4 7 563 5.0 7 OTD305 651418.4 4765613.5 684.43 2.63 0.06 136 4 7 568 5.0 7 OTD305 651418.6 4765616.5 680.25 2.02 0.04 40 4 7 573 5.0 7 OTD305 651418.7 4765619.0 676.07 1.56 0.02 72 4 7 578 5.0 7 OTD305 651418.8 4765622.0 671.89 1.46 0.02 48 4 7 583 5.0 7 OTD305 651418.9 4765624.5 667.71 1.80 0.04 52 4 7 588 5.0 7 OTD305 651419.0 4765627.5 663.54 1.99 0.06 68 4 7 593 5.0 7 OTD305 651419.1 4765630.0 659.37 1.78 0.07 34 4 7 598 5.0 7 OTD305 651419.3 4765633.0 655.19 1.23 0.04 29 4 7 603 5.0 7 OTD305 651419.4 4765636.0 651.02 1.45 0.05 11 4 7 608 5.0 7 OTD305 651419.5 4765638.5 646.85 1.87 0.06 47 4 7 613 5.0 7 OTD305 651419.7 4765641.5 642.69 1.61 0.04 32 4 7 618 5.0 7 OTD305 651419.8 4765644.0 638.52 1.22 0.13 74 4 7 623 5.0 7 OTD305 651420.1 4765647.5 633.52 2.60 0.16 84 2 7 629 5.0 7 OTD305 651420.3 4765650.0 629.36 2.21 0.27 44 2 7 634 5.0 7 OTD305 651420.4 4765653.0 625.20 2.94 0.26 150 2 7 639 5.0 7 OTD305 651420.6 4765655.5 621.04 3.30 0.23 70 2 7 644 5.0 7 OTD305 651420.8 4765658.5 616.88 3.04 0.24 63 2 7 649 5.0 7 OTD305 651420.9 4765661.0 612.73 1.40 0.11 76 2 7 654 5.0 7 OTD305 651421.1 4765663.5 608.57 2.54 0.17 102 2 7 659 5.0 7 OTD305 651421.4 4765666.5 604.42 2.52 0.13 58 2 7 664 5.0 7 OTD305 651421.6 4765669.0 600.27 2.18 0.09 212 2 7 669 5.0 7 OTD305 651421.9 4765672.5 595.29 0.99 0.08 42 4 7 675 5.0 7 OTD305 651422.1 4765675.0 591.14 1.28 0.10 42 4 7 680 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) AU (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD305 651422.4 4765678.0 587.00 1.58 0.06 29 4 7 685 5.0 7 OTD305 651422.6 4765681.0 582.85 1.54 0.09 41 4 7 690 5.0 7 OTD305 651422.9 4765683.5 578.73 2.52 0.11 31 2 7 695 5.0 7 OTD305 651423.1 4765686.5 574.60 2.25 0.10 37 2 7 700 5.0 7 OTD305 651423.4 4765689.0 570.46 2.27 0.14 38 2 7 705 5.0 7 OTD305 651423.7 4765691.5 567.17 2.08 0.08 26 2 7 708 3.0 7 OTD305 651423.9 4765693.5 563.88 1.46 0.06 18 4 7 713 5.0 7 OTD305 651424.3 4765696.5 559.77 1.54 0.06 66 4 7 718 5.0 7 OTD305 651424.5 4765699.5 555.65 0.88 0.03 29 4 7 723 5.0 7 OTD305 651424.9 4765702.0 551.56 1.40 0.04 54 4 7 728 5.0 7 OTD305 651425.6 4765708.0 542.96 0.88 0.03 35 5 1 738 4.0 7 OTD305 651425.9 4765710.0 539.31 0.78 0.03 20 7 1 743 5.0 7 OTD305 651426.3 4765713.0 535.26 1.13 0.04 36 7 1 748 5.0 7 OTD305 651426.7 4765716.0 531.22 0.68 0.02 17 7 1 753 5.0 7 OTD305 651427.0 4765719.5 527.19 0.83 0.03 22 7 1 758 5.0 7 OTD305 651427.4 4765722.5 523.19 0.68 0.03 58 7 1 763 5.0 7 OTD305 651427.8 4765725.5 519.20 0.93 0.03 57 7 1 768 5.0 7 OTD305 651428.8 4765734.0 507.31 0.67 0.03 45 7 1 783 5.0 7 OTD305 651429.2 4765737.5 503.37 0.84 0.03 88 7 1 788 5.0 7 OTD305 651429.6 4765740.5 499.40 0.64 0.04 48 7 1 793 5.0 7 OTD305 651429.9 4765743.5 495.43 1.02 0.05 107 7 1 798 5.0 7 OTD305 651430.7 4765749.0 487.47 0.94 0.03 61 7 1 808 5.0 7 OTD305 651431.8 4765758.0 475.48 0.68 0.04 49 7 1 823 5.0 7 OTD305 651432.6 4765764.0 467.55 0.82 0.05 43 7 1 833 5.0 7 OTD305 651432.9 4765767.0 463.58 0.82 0.03 39 7 1 838 5.0 7 OTD305 651433.3 4765770.0 459.94 0.74 0.06 43 7 1 842.2 4.2 7 OTD310 651367.1 4765893.5 875.21 0.77 0.07 38 6 7 311 5.0 7 OTD310 651368.3 4765892.0 870.55 0.79 0.04 24 6 7 316 5.0 7 OTD310 651370.6 4765889.5 861.25 0.72 0.04 40 6 7 326 5.0 7 OTD310 651371.9 4765888.0 856.60 1.20 0.03 24 4 7 331 5.0 7 OTD310 651373.1 4765887.0 851.95 1.51 0.07 19 4 7 336 5.0 7 OTD310 651374.3 4765885.5 847.31 0.87 0.05 25 4 7 341 5.0 7 OTD310 651375.4 4765884.0 842.66 1.05 0.03 7 4 7 346 5.0 7 OTD310 651376.7 4765882.5 838.02 1.47 0.07 10 4 7 351 5.0 7 OTD310 651377.8 4765881.0 833.37 1.32 0.04 5 4 7 356 5.0 7 OTD310 651379.0 4765879.5 828.73 1.84 0.07 44 4 7 361 5.0 7 OTD310 651380.2 4765878.0 824.09 1.22 0.05 19 4 7 366 5.0 7 OTD310 651381.3 4765877.0 819.45 1.44 0.10 25 4 7 371 5.0 7 OTD310 651382.5 4765875.5 814.83 1.82 0.10 12 4 7 376 5.0 7 OTD310 651383.7 4765874.0 810.20 1.58 0.05 6 4 7 381 5.0 7 OTD310 651384.8 4765872.5 805.57 1.70 0.04 6 4 7 386 5.0 7 OTD310 651386.0 4765871.0 800.97 1.87 0.05 10 4 7 391 5.0 7 OTD310 651387.2 4765869.5 796.36 2.39 0.05 17 4 7 396 5.0 7 OTD310 651388.4 4765867.5 791.75 0.89 0.08 7 4 7 401 5.0 7 OTD310 651389.8 4765865.5 786.24 2.46 0.11 11 2 7 407 5.0 7 OTD310 651391.0 4765864.0 781.65 2.77 0.09 5 2 7 412 5.0 7 OTD310 651392.3 4765862.5 777.06 1.90 0.10 11 2 7 417 5.0 7 OTD310 651393.4 4765861.0 772.47 2.77 0.09 13 2 7 422 5.0 7 OTD310 651394.6 4765859.5 767.88 3.49 0.11 5 2 7 427 5.0 7 OTD310 651395.8 4765858.0 763.28 3.18 0.16 5 2 7 432 5.0 7 OTD310 651397.0 4765856.5 758.69 3.95 0.13 7 2 7 437 5.0 7 OTD310 651398.2 4765855.0 754.08 2.75 0.16 17 2 7 442 5.0 7 OTD310 651399.4 4765853.0 749.48 2.77 0.19 27 2 7 447 5.0 7 OTD310 651400.5 4765851.5 744.88 2.19 0.18 60 2 7 452 5.0 7 OTD310 651401.7 4765850.0 740.28 2.80 0.24 38 2 7 457 5.0 7 OTD310 651402.9 4765848.5 735.67 3.26 0.40 117 2 7 462 5.0 7 OTD310 651404.1 4765847.0 731.06 3.84 0.49 40 2 7 467 5.0 7 OTD310 651405.2 4765845.5 726.45 2.82 0.39 38 2 7 472 5.0 7 OTD310 651406.4 4765843.5 721.84 2.94 0.37 97 2 7 477 5.0 7 OTD310 651407.6 4765842.0 717.22 3.32 0.78 63 2 7 482 5.0 7 OTD310 651408.7 4765841.0 712.61 5.29 3.11 77 2 7 487 5.0 7 OTD310 651409.9 4765839.5 707.99 4.23 0.73 153 2 7 492 5.0 7 OTD310 651411.0 4765838.0 703.37 3.83 0.68 7 2 7 497 5.0 7 OTD310 651412.2 4765836.5 698.75 0.66 0.26 5 2 7 502 5.0 7 OTD310 651413.3 4765835.0 694.12 3.15 0.66 11 2 7 507 5.0 7 OTD310 651414.4 4765833.5 689.49 4.92 0.51 23 2 7 512 5.0 7 OTD310 651415.6 4765831.5 684.86 2.59 0.46 16 2 7 517 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD310 651416.7 4765830.0 680.24 3.18 0.17 43 2 7 522 5.0 7 OTD310 651417.8 4765828.5 675.61 3.97 0.36 135 2 7 527 5.0 7 OTD310 651418.9 4765827.0 670.99 9.41 0.33 49 2 7 532 5.0 7 OTD310 651420.1 4765825.0 666.36 8.29 0.26 103 2 7 537 5.0 7 OTD310 651421.2 4765823.5 661.74 7.56 0.22 113 2 7 542 5.0 7 OTD310 651422.3 4765822.0 657.12 2.07 0.10 217 2 7 547 5.0 7 OTD310 651423.4 4765820.5 652.50 2.00 0.12 39 2 7 552 5.0 7 OTD310 651424.4 4765819.0 647.88 2.36 0.16 27 2 7 557 5.0 7 OTD310 651425.5 4765817.5 643.26 2.32 0.17 71 2 7 562 5.0 7 OTD310 651426.3 4765816.5 640.02 1.53 0.10 160 2 7 564 2.0 7 OTD310 651427.1 4765815.0 636.79 1.16 0.06 41 4 7 569 5.0 7 OTD310 651428.1 4765813.5 632.18 1.55 0.11 21 4 7 574 5.0 7 OTD310 651429.2 4765812.0 627.57 0.92 0.06 20 4 7 579 5.0 7 OTD310 651430.3 4765810.5 622.97 1.12 0.11 30 4 7 584 5.0 7 OTD310 651431.4 4765808.5 618.37 0.63 0.10 15 4 7 589 5.0 7 OTD310 651432.8 4765806.5 612.39 1.69 0.40 14 5 1 594 2.0 7 OTD310 651433.6 4765805.5 609.18 1.91 0.19 28 2 1 599 5.0 7 OTD310 651434.6 4765803.5 604.59 2.49 0.23 46 2 1 604 5.0 7 OTD310 651435.7 4765802.0 600.01 3.22 0.26 42 2 1 609 5.0 7 OTD310 651436.8 4765800.5 595.43 2.47 0.16 29 2 1 614 5.0 7 OTD310 651437.9 4765798.5 590.84 3.88 0.25 34 2 1 619 5.0 7 OTD310 651439.1 4765796.5 586.26 2.57 0.17 41 2 1 624 5.0 7 OTD310 651440.1 4765795.0 581.68 1.99 0.08 29 2 1 629 5.0 7 OTD310 651441.3 4765793.0 577.10 1.56 0.07 56 2 1 634 5.0 7 OTD310 651442.3 4765791.5 572.53 2.01 0.06 63 2 1 639 5.0 7 OTD310 651443.4 4765790.0 567.95 2.11 0.07 42 2 1 644 5.0 7 OTD310 651444.4 4765788.5 563.83 2.00 0.07 22 2 1 648 4.0 7 OTD310 651445.4 4765787.0 559.71 1.82 0.04 32 5 1 653 5.0 7 OTD310 651446.4 4765785.0 555.13 1.43 0.03 41 5 1 658 5.0 7 OTD310 651447.6 4765783.5 550.55 1.68 0.04 38 5 1 663 5.0 7 OTD310 651448.6 4765781.5 545.97 1.01 0.03 26 5 1 668 5.0 7 OTD310 651449.7 4765780.0 541.40 1.49 0.03 25 5 1 673 5.0 7 OTD310 651450.8 4765778.5 536.83 1.43 0.04 31 5 1 678 5.0 7 OTD310 651451.9 4765776.5 532.26 0.85 0.02 42 7 1 683 5.0 7 OTD310 651453.0 4765775.0 527.69 0.96 0.02 59 7 1 688 5.0 7 OTD310 651454.2 4765773.5 523.12 0.80 0.02 59 7 1 693 5.0 7 OTD310 651455.3 4765772.0 518.56 0.84 0.02 61 7 1 698 5.0 7 OTD310 651456.4 4765770.0 513.99 0.73 0.02 41 7 1 703 5.0 7 OTD310 651466.9 4765754.5 473.06 0.76 0.03 69 7 1 748 5.0 7 OTD310 651468.1 4765753.0 468.52 0.93 0.04 48 7 1 753 5.0 7 OTD310 651469.3 4765751.5 463.99 1.06 0.06 60 7 1 758 5.0 7 OTD310 651470.4 4765749.5 459.47 1.44 0.07 106 7 1 763 5.0 7 OTD310 651475.3 4765742.5 441.37 0.80 0.02 73 7 1 783 5.0 7 OTD310 651476.4 4765740.5 436.85 0.67 0.01 81 7 1 788 5.0 7 OTD310 651477.6 4765739.0 432.33 0.63 0.02 63 7 1 793 5.0 7 OTD310 651478.8 4765737.0 427.80 0.70 0.02 59 7 1 798 5.0 7 OTD310 651479.9 4765735.5 423.28 0.83 0.02 69 7 1 803 5.0 7 OTD310 651481.0 4765733.5 418.77 0.84 0.30 76 7 1 808 5.0 7 OTD310 651482.0 4765732.0 414.70 0.71 0.04 38 7 1 812 4.0 7 OTD310 651488.1 4765722.0 390.77 0.83 0.03 110 7 1 839 5.0 7 OTD310 651490.4 4765718.5 381.74 0.70 0.03 120 7 1 849 5.0 7 OTD310 651491.6 4765716.5 377.23 0.62 0.01 79 7 1 854 5.0 7 OTD310 651498.3 4765706.5 351.97 0.75 0.04 93 10 1 882 5.0 7 OTD313 651435.9 4765771.0 807.81 0.94 0.01 29 4 7 421 5.0 7 OTD313 651436.2 4765774.0 803.86 1.09 0.02 52 4 7 426 5.0 7 OTD313 651436.5 4765777.0 799.90 1.25 0.02 60 4 7 431 5.0 7 OTD313 651436.8 4765780.5 795.94 1.16 0.02 144 4 7 436 5.0 7 OTD313 651437.2 4765783.5 792.03 0.74 0.01 55 4 7 441 5.0 7 OTD313 651437.6 4765786.5 788.11 0.67 0.01 60 4 7 446 5.0 7 OTD313 651437.9 4765789.5 784.18 0.96 0.01 63 4 7 451 5.0 7 OTD313 651438.4 4765792.5 780.29 0.80 0.01 127 4 7 456 5.0 7 OTD313 651438.8 4765796.0 776.40 0.97 0.01 79 4 7 461 5.0 7 OTD313 651439.2 4765799.0 772.52 0.88 0.01 43 4 7 466 5.0 7 OTD313 651439.7 4765802.0 768.65 0.98 0.01 38 4 7 471 5.0 7 OTD313 651440.1 4765805.0 764.79 0.99 0.01 34 4 7 476 5.0 7 OTD313 651440.6 4765808.0 760.94 1.26 0.01 44 4 7 481 5.0 7 OTD313 651441.0 4765811.5 757.08 1.22 0.01 42 4 7 486 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD313 651441.5 4765815.0 753.27 1.26 0.01 41 4 7 491 5.0 7 OTD313 651442.0 4765818.0 749.45 1.15 0.01 45 4 7 496 5.0 7 OTD313 651442.5 4765821.0 745.62 1.12 0.01 55 4 7 501 5.0 7 OTD313 651443.0 4765824.5 741.84 1.03 0.01 47 4 7 506 5.0 7 OTD313 651443.6 4765827.5 738.06 0.95 0.01 66 4 7 511 5.0 7 OTD313 651444.1 4765831.0 734.27 0.99 0.01 62 4 7 516 5.0 7 OTD313 651444.6 4765834.0 730.51 1.10 0.01 38 4 7 521 5.0 7 OTD313 651445.2 4765837.5 726.77 0.83 0.01 37 4 7 526 5.0 7 OTD313 651445.8 4765841.0 723.03 1.52 0.03 34 4 7 531 5.0 7 OTD313 651446.3 4765844.5 719.29 1.41 0.05 20 4 7 536 5.0 7 OTD313 651446.9 4765847.5 715.60 1.68 0.07 11 4 7 541 5.0 7 OTD313 651447.6 4765851.0 711.91 1.18 0.04 31 2 7 546 5.0 7 OTD313 651448.1 4765854.0 708.21 3.48 0.10 22 2 7 551 5.0 7 OTD313 651448.8 4765857.5 704.57 3.16 0.08 19 2 7 556 5.0 7 OTD313 651449.4 4765860.5 700.92 2.96 0.13 32 2 7 561 5.0 7 OTD313 651450.1 4765864.0 697.28 2.89 0.11 18 2 7 566 5.0 7 OTD313 651450.7 4765867.5 693.65 2.81 0.11 27 2 7 571 5.0 7 OTD313 651451.4 4765871.0 690.04 2.88 0.17 13 2 7 576 5.0 7 OTD313 651452.0 4765874.5 686.42 1.89 0.11 13 2 7 581 5.0 7 OTD313 651452.7 4765877.5 682.81 3.70 0.42 8 2 7 586 5.0 7 OTD313 651453.3 4765881.0 679.23 4.47 0.43 6 2 7 591 5.0 7 OTD313 651454.0 4765884.5 675.65 5.93 0.94 15 2 7 596 5.0 7 OTD313 651454.8 4765888.0 672.06 3.28 0.33 17 2 7 601 5.0 7 OTD313 651455.4 4765891.5 668.51 3.56 0.39 21 2 7 606 5.0 7 OTD313 651456.1 4765895.0 664.96 4.23 0.42 60 2 7 611 5.0 7 OTD313 651456.9 4765898.5 661.41 4.39 0.54 29 2 7 616 5.0 7 OTD313 651457.6 4765902.0 657.84 3.27 0.46 27 2 7 621 5.0 7 OTD313 651458.3 4765905.5 654.35 5.14 0.60 75 2 7 626 5.0 7 OTD313 651459.0 4765909.0 650.85 3.31 0.45 28 2 7 631 5.0 7 OTD313 651459.8 4765912.5 647.36 4.88 0.44 27 2 7 636 5.0 7 OTD313 651460.4 4765915.5 643.85 4.41 0.85 65 2 7 641 5.0 7 OTD313 651461.2 4765919.5 640.41 3.69 0.43 64 2 7 646 5.0 7 OTD313 651462.7 4765926.5 633.54 0.75 0.04 17 2 7 656 5.0 7 OTD313 651463.4 4765930.0 630.09 3.33 0.17 30 2 7 661 5.0 7 OTD313 651464.2 4765933.5 626.71 2.97 0.13 102 2 7 666 5.0 7 OTD313 651464.7 4765936.0 624.34 2.05 0.10 5 2 7 668 2.0 7 OTD313 651465.3 4765938.5 621.98 1.16 0.04 58 4 7 673 5.0 7 OTD313 651466.1 4765942.0 618.60 1.42 0.07 68 4 7 678 5.0 7 OTD313 651466.6 4765944.5 616.23 0.78 0.05 5 4 7 680 2.0 7 OTD313 651467.1 4765947.5 613.90 1.25 0.05 91 2 7 685 5.0 7 OTD313 651467.9 4765951.0 610.58 1.35 0.04 138 2 7 690 5.0 7 OTD313 651468.5 4765953.5 608.25 0.90 0.04 130 2 7 692 2.0 7 OTD313 651469.0 4765955.5 606.26 0.99 0.06 82 4 7 696 4.0 7 OTD313 651469.8 4765959.0 603.26 1.22 0.06 140 5 1 701 5.0 7 OTD313 651470.6 4765963.0 600.00 1.15 0.05 96 5 1 706 5.0 7 OTD313 651471.4 4765966.5 596.74 0.91 0.05 118 5 1 711 5.0 7 OTD313 651472.3 4765970.0 593.47 1.14 0.05 99 5 1 716 5.0 7 OTD313 651473.1 4765973.5 590.23 1.03 0.04 134 5 1 721 5.0 7 OTD313 651473.9 4765977.5 587.00 0.82 0.04 94 5 1 726 5.0 7 OTD313 651474.8 4765981.0 583.76 1.06 0.05 139 5 1 731 5.0 7 OTD313 651476.6 4765989.5 576.68 0.93 0.04 83 7 1 742 5.0 7 OTD313 651477.4 4765993.0 573.48 0.65 0.04 85 7 1 747 5.0 7 OTD313 651478.3 4765997.5 570.28 0.80 0.04 258 7 1 752 5.0 7 OTD313 651479.2 4766001.0 567.10 0.74 0.03 109 7 1 757 5.0 7 OTD313 651480.0 4766005.0 563.93 0.87 0.05 92 7 1 762 5.0 7 OTD313 651480.9 4766008.5 560.75 0.74 0.03 103 7 1 767 5.0 7 OTD313 651482.6 4766016.0 554.47 1.78 0.07 106 7 1 777 5.0 7 OTD313 651483.5 4766019.5 551.33 0.79 0.04 113 7 1 782 5.0 7 OTD313 651484.4 4766023.5 548.19 0.71 0.05 142 7 1 787 5.0 7 OTD313 651485.3 4766027.0 545.09 0.86 0.04 108 7 1 792 5.0 7 OTD313 651486.1 4766031.0 542.00 0.97 0.05 152 7 1 797 5.0 7 OTD313 651487.0 4766034.5 538.89 1.10 0.04 109 7 1 802 5.0 7 OTD313 651487.9 4766038.5 535.83 0.93 0.04 146 7 1 807 5.0 7 OTD313 651488.9 4766042.0 532.76 1.02 0.04 132 7 1 812 5.0 7 OTD313 651489.8 4766046.5 529.69 0.84 0.01 122 7 1 817 5.0 7 OTD313 651490.8 4766050.5 526.66 0.84 0.03 186 7 1 822 5.0 7 OTD313 651491.7 4766054.0 523.63 0.98 0.03 219 7 1 827 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD313 651492.6 4766058.0 520.59 0.74 0.02 96 7 1 832 5.0 7 OTD313 651493.5 4766061.5 517.57 0.92 0.06 150 7 1 837 5.0 7 OTD313 651494.5 4766065.5 514.57 1.16 0.06 209 7 1 842 5.0 7 OTD313 651497.4 4766077.5 505.62 0.64 0.03 152 7 1 857 5.0 7 OTD313 651498.4 4766081.5 502.66 0.79 0.11 110 7 1 862 5.0 7 OTD313 651499.4 4766085.5 499.70 0.90 0.09 105 7 1 867 5.0 7 OTD313 651500.4 4766089.0 496.74 0.77 0.09 82 7 1 872 5.0 7 OTD313 651501.4 4766093.0 493.83 0.80 0.37 124 7 1 877 5.0 7 OTD313 651502.4 4766097.0 490.92 0.85 0.39 133 7 1 882 5.0 7 OTD313 651503.4 4766101.0 488.01 0.78 0.23 118 7 1 887 5.0 7 OTD313 651504.4 4766105.0 485.09 0.89 0.63 123 7 1 892 5.0 7 OTD313 651505.4 4766109.0 482.23 0.99 0.74 112 7 1 897 5.0 7 OTD313 651506.4 4766113.0 479.37 0.81 0.64 104 7 1 902 5.0 7 OTD313 651507.4 4766117.0 476.51 0.79 0.34 63 7 1 907 5.0 7 OTD313 651512.6 4766137.5 462.40 0.65 0.59 103 7 1 932 5.0 7 OTD313 651513.7 4766141.5 459.64 0.75 0.47 58 7 1 937 5.0 7 OTD313 651514.8 4766145.5 456.88 0.73 0.22 56 7 1 942 5.0 7 OTD313 651515.8 4766149.5 454.12 0.80 0.41 66 7 1 947 5.0 7 OTD313 651516.8 4766153.0 451.35 1.30 0.21 70 7 1 952 5.0 7 OTD319 651530.9 4765854.5 915.66 2.05 0.11 17 10 7 265 5.0 7 OTD319 651514.1 4765872.0 849.92 0.83 0.06 71 6 7 335 5.0 7 OTD319 651512.9 4765873.5 845.23 0.81 0.04 111 6 7 340 5.0 7 OTD319 651509.8 4765876.5 833.05 1.32 0.08 73 4 7 353 5.0 7 OTD319 651508.6 4765878.0 828.38 1.84 0.07 92 4 7 358 5.0 7 OTD319 651507.4 4765879.0 823.70 1.28 0.06 93 4 7 363 5.0 7 OTD319 651506.1 4765880.5 819.02 2.66 0.10 71 4 7 368 5.0 7 OTD319 651504.9 4765881.5 814.35 0.93 0.03 87 4 7 373 5.0 7 OTD319 651503.8 4765883.0 809.69 0.98 0.02 93 4 7 378 5.0 7 OTD319 651502.5 4765884.5 805.02 1.02 0.01 106 4 7 383 5.0 7 OTD319 651501.3 4765886.0 800.36 0.90 0.01 130 4 7 388 5.0 7 OTD319 651500.1 4765887.5 795.70 1.56 0.01 64 4 7 393 5.0 7 OTD319 651498.9 4765889.0 791.04 1.35 0.01 42 4 7 398 5.0 7 OTD319 651497.6 4765890.5 786.39 1.12 0.01 47 4 7 403 5.0 7 OTD319 651496.4 4765891.5 781.74 0.97 0.03 40 4 7 408 5.0 7 OTD319 651495.3 4765893.0 777.10 1.48 0.03 36 4 7 413 5.0 7 OTD319 651494.1 4765894.5 772.45 1.44 0.04 30 4 7 418 5.0 7 OTD319 651492.8 4765895.5 767.81 0.90 0.04 41 4 7 423 5.0 7 OTD319 651491.6 4765897.0 763.17 0.79 0.02 51 4 7 428 5.0 7 OTD319 651490.4 4765898.5 758.52 1.24 0.07 39 4 7 433 5.0 7 OTD319 651489.3 4765900.0 753.88 1.42 0.05 77 4 7 438 5.0 7 OTD319 651488.1 4765901.5 749.24 1.27 0.03 72 4 7 443 5.0 7 OTD319 651486.9 4765903.0 744.60 0.89 0.05 115 4 7 448 5.0 7 OTD319 651485.7 4765904.0 739.96 1.15 0.02 76 4 7 453 5.0 7 OTD319 651484.4 4765905.5 735.33 1.35 0.03 79 4 7 458 5.0 7 OTD319 651483.3 4765907.0 730.69 1.03 0.03 43 4 7 463 5.0 7 OTD319 651482.1 4765908.5 726.06 1.11 0.03 17 4 7 468 5.0 7 OTD319 651480.9 4765910.0 721.42 4.21 0.43 15 2 7 473 5.0 7 OTD319 651479.7 4765911.5 716.79 6.57 0.56 12 2 7 478 5.0 7 OTD319 651478.5 4765912.5 712.15 1.22 0.40 15 2 7 483 5.0 7 OTD319 651477.3 4765914.0 707.51 3.23 0.63 104 2 7 488 5.0 7 OTD319 651476.1 4765915.5 702.87 4.63 0.61 17 2 7 493 5.0 7 OTD319 651474.9 4765917.0 698.23 4.86 0.33 42 2 7 498 5.0 7 OTD319 651473.8 4765918.5 693.59 3.02 0.24 33 2 7 503 5.0 7 OTD319 651472.6 4765920.0 688.95 2.95 0.21 98 2 7 508 5.0 7 OTD319 651471.5 4765921.5 684.30 3.67 0.35 50 2 7 513 5.0 7 OTD319 651470.4 4765923.0 679.66 4.06 0.47 82 2 7 518 5.0 7 OTD319 651469.3 4765924.5 675.02 3.57 0.61 112 2 7 523 5.0 7 OTD319 651468.1 4765926.0 670.38 3.98 0.60 86 2 7 528 5.0 7 OTD319 651466.9 4765927.5 665.74 4.15 0.60 95 2 7 533 5.0 7 OTD319 651465.8 4765929.0 661.10 3.46 0.33 79 2 7 538 5.0 7 OTD319 651464.6 4765930.5 656.46 2.97 0.22 59 2 7 543 5.0 7 OTD319 651463.5 4765932.0 651.82 2.96 0.16 65 2 7 548 5.0 7 OTD319 651462.4 4765933.5 647.18 2.58 0.10 52 2 7 553 5.0 7 OTD319 651461.3 4765935.0 642.54 2.00 0.11 38 2 7 558 5.0 7 OTD319 651460.3 4765936.5 637.90 2.61 0.11 86 2 7 563 5.0 7 OTD319 651459.4 4765937.5 634.19 3.05 0.14 70 2 7 566 3.0 7 OTD319 651454.9 4765944.5 615.61 2.38 0.16 41 2 7 587 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD319 651453.8 4765945.5 610.96 4.87 0.24 45 2 7 592 5.0 7 OTD319 651452.7 4765947.0 606.31 4.37 0.21 99 2 7 597 5.0 7 OTD319 651451.5 4765948.5 601.66 2.81 0.21 62 2 7 602 5.0 7 OTD319 651450.5 4765950.0 597.47 2.11 0.08 109 2 7 606 4.0 7 OTD319 651449.5 4765951.0 593.28 1.73 0.10 55 4 7 611 5.0 7 OTD319 651448.4 4765952.5 588.63 1.39 0.14 47 4 7 616 5.0 7 OTD319 651447.3 4765953.5 583.97 1.01 0.06 72 4 7 621 5.0 7 OTD319 651446.0 4765955.5 578.38 0.81 0.06 68 7 1 627 5.0 7 OTD319 651443.8 4765958.5 569.07 0.91 0.05 145 7 1 637 5.0 7 OTD319 651441.6 4765961.0 559.75 0.70 0.03 78 7 1 647 5.0 7 OTD319 651440.5 4765962.0 555.10 0.83 0.03 93 7 1 652 5.0 7 OTD319 651439.4 4765963.5 550.44 0.64 0.01 112 7 1 657 5.0 7 OTD319 651438.3 4765965.0 545.78 1.27 0.08 233 7 1 662 5.0 7 OTD319 651437.2 4765966.5 541.12 0.64 0.04 228 7 1 667 5.0 7 OTD319 651436.1 4765968.0 536.46 0.74 0.04 190 7 1 672 5.0 7 OTD319 651432.9 4765972.0 522.48 0.89 0.08 194 7 1 687 5.0 7 OTD319 651431.8 4765973.5 517.81 0.85 0.11 176 7 1 692 5.0 7 OTD319 651430.8 4765975.0 513.15 0.62 0.09 96 7 1 697 5.0 7 OTD319 651427.6 4765979.5 499.15 0.71 0.11 164 7 1 712 5.0 7 OTD319 651425.6 4765982.0 489.81 0.80 0.03 171 7 1 722 5.0 7 OTD319 651424.5 4765983.5 485.14 0.79 0.04 428 7 1 727 5.0 7 OTD319 651422.5 4765986.5 475.81 0.62 0.04 76 7 1 737 5.0 7 OTD319 651420.4 4765989.5 466.48 0.85 0.09 88 7 1 747 5.0 7 OTD319 651419.6 4765990.5 462.75 0.71 0.02 84 7 1 750 3.0 7 OTD319 651418.7 4765992.0 459.01 0.66 0.02 111 10 1 755 5.0 7 OTD319 651415.6 4765996.5 445.02 0.68 0.09 163 10 1 770 5.0 7 OTD319 651414.6 4765998.0 440.35 0.63 0.08 112 10 1 775 5.0 7 OTD319 651413.6 4765999.5 435.69 0.64 0.06 146 10 1 780 5.0 7 OTD319 651409.4 4766005.5 417.04 0.64 0.04 105 10 1 800 5.0 7 OTD319 651404.3 4766013.0 393.75 0.60 0.09 92 10 1 825 5.0 7 OTD319 651394.0 4766028.5 349.49 0.71 0.11 229 7 1 873 5.0 7 OTD319 651392.9 4766030.0 344.90 0.80 0.12 2625 7 1 878 5.0 7 OTD319 651391.8 4766032.0 340.31 1.12 0.08 755 7 1 883 5.0 7 OTD319 651390.8 4766033.5 335.72 0.92 0.07 279 7 1 888 5.0 7 OTD324 651272.6 4765327.0 852.25 0.82 0.04 31 6 7 341 5.0 7 OTD324 651270.7 4765328.5 847.85 0.73 0.05 33 6 7 346 5.0 7 OTD324 651268.9 4765330.0 843.46 0.97 0.03 26 6 7 351 5.0 7 OTD324 651267.0 4765331.5 839.09 1.00 0.01 24 6 7 356 5.0 7 OTD324 651265.1 4765333.0 834.71 0.95 0.04 64 6 7 361 5.0 7 OTD324 651263.3 4765334.5 830.34 0.73 0.01 68 6 7 366 5.0 7 OTD324 651261.6 4765336.0 826.41 1.00 0.03 77 6 7 370 4.0 7 OTD324 651259.8 4765337.5 822.49 1.25 0.02 45 4 7 375 5.0 7 OTD324 651257.9 4765339.0 818.13 1.35 0.02 41 4 7 380 5.0 7 OTD324 651256.1 4765340.5 813.77 0.90 0.02 50 4 7 385 5.0 7 OTD324 651254.1 4765342.0 809.43 1.00 0.02 84 4 7 390 5.0 7 OTD324 651252.3 4765344.0 805.09 1.40 0.01 142 4 7 395 5.0 7 OTD324 651250.3 4765345.5 800.75 1.47 0.02 177 4 7 400 5.0 7 OTD324 651248.4 4765347.0 796.42 1.13 0.03 97 4 7 405 5.0 7 OTD324 651246.4 4765348.5 792.10 1.27 0.03 94 4 7 410 5.0 7 OTD324 651244.4 4765350.0 787.78 1.24 0.02 47 4 7 415 5.0 7 OTD324 651242.5 4765351.5 783.45 1.26 0.02 133 4 7 420 5.0 7 OTD324 651240.6 4765353.0 779.13 1.26 0.02 101 4 7 425 5.0 7 OTD324 651238.6 4765354.5 774.81 1.30 0.02 87 4 7 430 5.0 7 OTD324 651236.6 4765356.0 770.48 1.48 0.03 77 4 7 435 5.0 7 OTD324 651234.6 4765357.5 766.16 1.16 0.04 120 4 7 440 5.0 7 OTD324 651232.7 4765359.0 761.83 1.95 0.04 534 4 7 445 5.0 7 OTD324 651230.8 4765360.5 757.50 1.69 0.02 132 4 7 450 5.0 7 OTD324 651228.8 4765362.0 753.18 2.01 0.03 134 4 7 455 5.0 7 OTD324 651226.9 4765363.5 748.85 1.63 0.02 79 4 7 460 5.0 7 OTD324 651224.9 4765365.5 744.52 1.81 0.02 115 4 7 465 5.0 7 OTD324 651223.0 4765367.0 740.20 1.53 0.03 351 4 7 470 5.0 7 OTD324 651214.1 4765374.5 720.38 0.76 0.03 370 6 7 493 5.0 7 OTD324 651212.1 4765376.0 716.08 0.66 0.03 420 6 7 498 5.0 7 OTD324 651210.3 4765377.5 712.22 1.01 0.06 278 6 7 502 4.0 7 OTD324 651201.5 4765385.5 692.97 1.29 0.05 258 6 7 525 5.0 7 OTD324 651199.5 4765387.0 688.71 1.53 0.05 243 6 7 530 5.0 7 OTD324 651198.1 4765388.0 685.73 0.70 0.04 47 6 7 532 2.0 7
DHID EASTING NORTHING ELEVATION CU (WT%) AU (G/T) MO (PPM) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD324 651180.3 4765402.5 648.97 0.62 0.03 60 10 7 577 5.0 7 OTD324 651165.6 4765415.5 619.75 0.69 0.06 333 10 7 612 5.0 7 OTD324 651086.5 4765483.0 478.94 0.76 0.14 113 10 1 787 5.0 7 OTD324 651084.1 4765485.0 475.09 0.69 0.09 129 10 1 792 5.0 7 OTD327 651561.2 4765964.0 826.74 0.91 0.02 17 6 7 363 5.0 7 OTD327 651560.1 4765965.0 823.01 0.72 0.01 23 6 7 366 3.0 7 OTD327 651558.9 4765965.5 819.29 1.01 0.02 25 4 7 371 5.0 7 OTD327 651557.4 4765967.0 814.64 0.93 0.02 30 4 7 376 5.0 7 OTD327 651556.0 4765968.0 809.99 1.23 0.02 22 4 7 381 5.0 7 OTD327 651554.6 4765969.0 805.34 1.36 0.02 23 4 7 386 5.0 7 OTD327 651553.1 4765970.0 800.68 1.27 0.02 19 4 7 391 5.0 7 OTD327 651552.0 4765971.0 796.96 1.29 0.03 14 4 7 394 3.0 7 OTD327 651550.8 4765972.0 793.24 2.61 0.14 7 2 7 399 5.0 7 OTD327 651549.4 4765973.0 788.59 2.35 0.12 5 2 7 404 5.0 7 OTD327 651547.9 4765974.0 783.94 2.50 0.39 5 2 7 409 5.0 7 OTD327 651546.5 4765975.5 779.28 2.96 0.41 7 2 7 414 5.0 7 OTD327 651545.1 4765976.5 774.63 2.83 0.15 5 2 7 419 5.0 7 OTD327 651543.6 4765977.5 769.98 2.43 0.12 5 2 7 424 5.0 7 OTD327 651542.1 4765978.5 765.33 2.69 0.11 7 2 7 429 5.0 7 OTD327 651540.7 4765979.5 760.68 3.29 0.12 8 2 7 434 5.0 7 OTD327 651539.3 4765980.5 756.02 3.29 0.10 5 2 7 439 5.0 7 OTD327 651537.8 4765982.0 751.37 2.84 0.09 5 2 7 444 5.0 7 OTD327 651536.3 4765983.0 746.72 3.55 0.09 9 2 7 449 5.0 7 OTD327 651534.9 4765984.0 742.07 3.82 0.12 14 2 7 454 5.0 7 OTD327 651533.4 4765985.0 737.42 3.25 0.11 14 2 7 459 5.0 7 OTD327 651531.9 4765986.0 732.76 3.10 0.06 12 2 7 464 5.0 7 OTD327 651530.6 4765987.0 728.11 2.27 0.07 22 2 7 469 5.0 7 OTD327 651529.1 4765988.0 723.46 2.09 0.05 37 2 7 474 5.0 7 OTD327 651527.7 4765989.5 718.81 2.01 0.03 18 2 7 479 5.0 7 OTD327 651526.5 4765990.0 715.09 2.31 0.02 38 2 7 482 3.0 7 OTD327 651525.4 4765991.0 711.36 1.78 0.05 20 4 7 487 5.0 7 OTD327 651523.9 4765992.0 706.71 1.50 0.10 31 4 7 492 5.0 7 OTD327 651522.5 4765993.5 702.06 1.28 0.09 19 4 7 497 5.0 7 OTD327 651520.8 4765994.5 696.48 1.06 0.08 34 5 1 503 5.0 7 OTD327 651519.4 4765995.5 691.83 1.09 0.10 29 5 1 508 5.0 7 OTD327 651518.0 4765996.5 687.17 1.32 0.08 24 5 1 513 5.0 7 OTD327 651516.5 4765997.5 682.52 0.88 0.03 27 5 1 518 5.0 7 OTD327 651515.1 4765999.0 677.87 1.06 0.05 25 5 1 523 5.0 7 OTD327 651513.6 4766000.0 673.23 1.07 0.04 49 5 1 528 5.0 7 OTD327 651512.2 4766001.0 668.58 1.16 0.02 57 5 1 533 5.0 7 OTD327 651510.8 4766002.5 663.93 1.57 0.05 137 5 1 538 5.0 7 OTD327 651509.3 4766003.5 659.29 1.21 0.04 109 5 1 543 5.0 7 OTD327 651507.9 4766004.5 654.65 1.26 0.04 113 5 1 548 5.0 7 OTD327 651506.4 4766006.0 650.01 1.40 0.06 119 5 1 553 5.0 7 OTD327 651504.9 4766007.0 645.38 1.49 0.07 102 5 1 558 5.0 7 OTD327 651503.5 4766008.0 640.74 2.32 0.11 165 5 1 563 5.0 7 OTD327 651502.1 4766009.5 636.10 1.54 0.06 98 5 1 568 5.0 7 OTD327 651500.6 4766010.0 631.47 1.72 0.03 99 5 1 573 5.0 7 OTD327 651499.2 4766011.0 626.83 1.72 0.09 95 5 1 578 5.0 7 OTD327 651497.8 4766012.5 622.20 1.06 0.08 61 5 1 583 5.0 7 OTD327 651496.3 4766014.0 617.56 0.77 0.06 55 5 1 588 5.0 7 OTD327 651494.9 4766015.0 612.92 1.36 0.18 104 5 1 593 5.0 7 OTD327 651493.4 4766016.5 608.29 1.33 0.14 89 5 1 598 5.0 7 OTD327 651492.1 4766017.5 603.65 0.77 0.06 51 5 1 603 5.0 7 OTD327 651489.2 4766020.0 594.38 1.14 0.06 119 5 1 613 5.0 7 OTD327 651487.8 4766021.5 589.74 0.82 0.06 55 5 1 618 5.0 7 OTD327 651486.8 4766022.0 586.50 1.00 0.09 115 5 1 620 2.0 7 OTD327 651485.8 4766023.0 583.25 0.75 0.04 56 7 1 625 5.0 7 OTD327 651484.4 4766024.0 578.62 0.74 0.04 98 7 1 630 5.0 7 OTD327 651483.0 4766025.5 573.98 0.61 0.03 61 7 1 635 5.0 7 OTD327 651481.6 4766026.5 569.35 0.90 0.05 72 7 1 640 5.0 7 OTD327 651480.2 4766028.0 564.71 0.76 0.08 99 7 1 645 5.0 7 OTD327 651478.8 4766029.0 560.07 0.89 0.06 93 7 1 650 5.0 7 OTD327 651477.3 4766031.0 555.44 0.98 0.04 59 7 1 655 5.0 7 OTD327 651475.9 4766032.0 550.80 0.92 0.05 91 7 1 660 5.0 7 OTD327 651474.4 4766033.5 546.17 1.16 0.05 102 7 1 665 5.0 7 OTD327 651473.1 4766034.0 541.53 1.02 0.04 88 7 1 670 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD327 651471.7 4766035.5 536.89 1.07 0.08 108 7 1 675 5.0 7 OTD327 651470.3 4766036.5 532.26 1.01 0.08 175 7 1 680 5.0 7 OTD327 651468.8 4766038.5 527.62 0.81 0.06 186 7 1 685 5.0 7 OTD327 651467.4 4766039.5 522.99 0.91 0.06 152 7 1 690 5.0 7 OTD327 651466.1 4766041.0 518.35 0.92 0.09 145 7 1 695 5.0 7 OTD327 651464.7 4766042.0 513.72 0.88 0.07 129 7 1 700 5.0 7 OTD327 651463.3 4766043.0 509.08 0.88 0.07 194 7 1 705 5.0 7 OTD327 651461.9 4766044.5 504.44 0.76 0.07 242 7 1 710 5.0 7 OTD327 651460.6 4766045.5 499.81 0.96 0.06 136 7 1 715 5.0 7 OTD327 651459.2 4766047.0 495.17 1.10 0.07 254 7 1 720 5.0 7 OTD327 651457.8 4766048.0 490.54 0.85 0.10 163 7 1 725 5.0 7 OTD327 651456.5 4766049.5 485.90 0.64 0.16 177 7 1 730 5.0 7 OTD327 651455.2 4766050.5 481.26 0.72 0.19 69 7 1 735 5.0 7 OTD327 651453.8 4766052.0 476.63 0.68 0.20 71 7 1 740 5.0 7 OTD327 651452.4 4766053.0 471.99 0.61 0.18 128 7 1 745 5.0 7 OTD327 651449.8 4766056.0 462.72 0.66 0.05 121 7 1 755 5.0 7 OTD327 651448.4 4766057.0 458.08 0.64 0.04 77 7 1 760 5.0 7 OTD327 651445.7 4766059.5 448.81 0.80 0.05 63 7 1 770 5.0 7 OTD327 651444.3 4766061.0 444.18 0.82 0.05 88 7 1 775 5.0 7 OTD327 651443.0 4766062.0 439.54 0.81 0.04 65 7 1 780 5.0 7 OTD327 651441.7 4766063.0 434.90 0.85 0.05 72 7 1 785 5.0 7 OTD327 651440.3 4766064.5 430.27 0.88 0.07 92 7 1 790 5.0 7 OTD327 651438.9 4766065.5 425.63 0.64 0.06 85 7 1 795 5.0 7 OTD327 651437.6 4766067.0 421.00 0.79 0.06 54 7 1 800 5.0 7 OTD327 651436.2 4766068.0 416.36 0.77 0.08 155 7 1 805 5.0 7 OTD327 651434.8 4766069.5 411.73 0.82 0.09 53 7 1 810 5.0 7 OTD327 651433.4 4766070.5 407.09 0.79 0.07 102 7 1 815 5.0 7 OTD327 651432.1 4766072.0 402.45 0.69 0.10 150 7 1 820 5.0 7 OTD329 651506.3 4765630.0 741.89 0.61 0.02 30 6 7 449 5.0 7 OTD329 651504.9 4765630.5 737.21 0.67 0.02 32 6 7 454 5.0 7 OTD329 651503.6 4765632.0 732.54 0.89 0.03 36 6 7 459 5.0 7 OTD329 651502.5 4765633.0 728.81 0.82 0.02 36 6 7 462 3.0 7 OTD329 651501.4 4765633.5 725.07 1.25 0.02 39 4 7 467 5.0 7 OTD329 651500.1 4765634.5 720.41 2.65 0.03 40 4 7 472 5.0 7 OTD329 651498.7 4765636.0 715.74 2.30 0.04 35 4 7 477 5.0 7 OTD329 651497.3 4765637.0 711.08 1.43 0.04 24 4 7 482 5.0 7 OTD329 651496.0 4765639.0 706.42 1.14 0.02 28 4 7 487 5.0 7 OTD329 651494.7 4765640.0 701.76 1.56 0.03 33 4 7 492 5.0 7 OTD329 651493.3 4765641.0 697.10 1.99 0.03 41 4 7 497 5.0 7 OTD329 651491.9 4765642.0 692.44 1.40 0.01 41 4 7 502 5.0 7 OTD329 651490.6 4765643.5 687.78 1.30 0.01 35 4 7 507 5.0 7 OTD329 651489.3 4765644.5 683.13 1.33 0.01 34 4 7 512 5.0 7 OTD329 651487.9 4765646.0 678.47 1.92 0.03 31 4 7 517 5.0 7 OTD329 651486.6 4765647.5 673.82 1.55 0.02 36 4 7 522 5.0 7 OTD329 651485.2 4765648.5 669.17 1.78 0.02 39 4 7 527 5.0 7 OTD329 651483.9 4765650.0 664.52 1.85 0.02 40 4 7 532 5.0 7 OTD329 651482.5 4765651.0 659.88 1.76 0.02 43 4 7 537 5.0 7 OTD329 651481.2 4765652.0 655.24 1.55 0.03 63 4 7 542 5.0 7 OTD329 651479.8 4765653.5 650.60 1.95 0.03 41 4 7 547 5.0 7 OTD329 651478.1 4765655.0 645.02 2.66 0.12 53 2 7 553 5.0 7 OTD329 651476.8 4765656.0 640.39 3.23 0.12 63 2 7 558 5.0 7 OTD329 651475.4 4765657.5 635.76 2.41 0.08 93 2 7 563 5.0 7 OTD329 651474.1 4765659.0 631.13 2.47 0.06 17 2 7 568 5.0 7 OTD329 651472.8 4765660.0 626.49 1.85 0.05 25 2 7 573 5.0 7 OTD329 651471.4 4765662.0 621.86 2.00 0.04 49 2 7 578 5.0 7 OTD329 651470.1 4765663.5 617.24 1.95 0.04 49 2 7 583 5.0 7 OTD329 651468.8 4765664.5 612.62 2.87 0.06 55 2 7 588 5.0 7 OTD329 651467.4 4765666.0 608.00 2.97 0.17 37 2 7 593 5.0 7 OTD329 651466.1 4765667.5 603.38 2.81 0.03 39 2 7 598 5.0 7 OTD329 651464.8 4765668.5 598.76 2.07 0.03 17 2 7 603 5.0 7 OTD329 651463.4 4765670.0 594.15 2.49 0.06 22 2 7 608 5.0 7 OTD329 651462.1 4765671.5 589.54 2.13 0.10 18 2 7 613 5.0 7 OTD329 651460.8 4765673.0 584.93 2.57 0.10 26 2 7 618 5.0 7 OTD329 651459.4 4765674.0 580.33 1.76 0.08 5 2 7 623 5.0 7 OTD329 651458.1 4765675.5 575.73 1.61 0.08 15 2 7 628 5.0 7 OTD329 651456.8 4765677.0 571.13 1.75 0.11 12 2 7 633 5.0 7 OTD329 651455.5 4765678.5 566.54 2.18 0.13 10 2 7 638 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD329 651454.2 4765680.0 561.95 2.42 0.19 17 2 7 643 5.0 7 OTD329 651452.6 4765681.5 556.44 1.39 0.10 19 4 7 649 5.0 7 OTD329 651450.1 4765685.0 547.74 3.16 0.11 24 4 7 658 4.0 7 OTD329 651447.7 4765687.5 539.05 1.57 0.08 17 5 1 668 5.0 7 OTD329 651446.5 4765689.0 534.93 1.49 0.08 35 5 1 672 4.0 7 OTD329 651444.0 4765692.0 526.26 0.73 0.04 31 7 1 682 5.0 7 OTD329 651435.8 4765702.0 498.02 1.07 0.04 118 7 1 713 5.0 7 OTD329 651434.5 4765703.5 493.47 0.82 0.04 59 7 1 718 5.0 7 OTD329 651429.3 4765710.5 475.32 0.64 0.06 60 7 1 738 5.0 7 OTD329 651426.7 4765713.5 466.26 0.77 0.03 68 7 1 748 5.0 7 OTD329 651425.4 4765715.5 461.73 0.93 0.11 60 7 1 753 5.0 7 OTD329 651424.2 4765717.0 457.22 1.18 0.14 84 7 1 758 5.0 7 OTD329 651422.9 4765719.0 452.71 0.90 0.01 75 7 1 763 5.0 7 OTD329 651421.8 4765720.5 448.20 0.61 0.01 420 7 1 768 5.0 7 OTD329 651420.5 4765722.0 443.69 0.91 0.01 231 7 1 773 5.0 7 OTD329 651419.3 4765724.0 439.19 1.27 0.02 478 7 1 778 5.0 7 OTD329 651418.0 4765725.5 434.69 1.58 0.03 121 7 1 783 5.0 7 OTD329 651416.7 4765727.5 430.19 1.22 0.01 132 7 1 788 5.0 7 OTD329 651415.6 4765729.0 426.15 1.47 0.04 135 7 1 792 4.0 7 OTD333 651065.1 4765922.0 891.03 0.60 0.08 48 10 7 291 5.0 7 OTD333 651077.4 4765910.0 839.78 0.68 0.09 61 6 7 345 5.0 7 OTD333 651078.5 4765909.0 835.03 1.01 0.12 65 6 7 350 5.0 7 OTD333 651079.6 4765908.0 830.27 0.70 0.09 61 6 7 355 5.0 7 OTD333 651082.0 4765906.0 820.76 0.71 0.03 76 6 7 365 5.0 7 OTD333 651083.1 4765905.5 816.01 1.01 0.11 104 6 7 370 5.0 7 OTD333 651084.3 4765904.5 811.24 1.15 0.15 51 6 7 375 5.0 7 OTD333 651085.4 4765903.5 806.48 0.77 0.08 67 6 7 380 5.0 7 OTD333 651086.6 4765902.5 801.72 0.76 0.08 195 6 7 385 5.0 7 OTD333 651087.8 4765901.5 796.94 0.81 0.06 128 6 7 390 5.0 7 OTD333 651088.8 4765900.5 792.17 0.77 0.06 60 6 7 395 5.0 7 OTD333 651089.9 4765899.5 787.40 0.89 0.06 55 6 7 400 5.0 7 OTD333 651091.0 4765899.0 782.62 1.60 0.14 70 6 7 405 5.0 7 OTD333 651092.1 4765898.0 777.84 1.03 0.10 76 6 7 410 5.0 7 OTD333 651093.2 4765897.0 773.06 1.15 0.10 68 6 7 415 5.0 7 OTD333 651094.3 4765895.5 768.27 0.85 0.09 67 6 7 420 5.0 7 OTD333 651095.4 4765894.5 763.49 1.45 0.12 75 6 7 425 5.0 7 OTD333 651096.3 4765894.0 759.66 0.71 0.07 62 6 7 428 3.0 7 OTD333 651105.6 4765885.5 717.50 0.63 0.08 92 6 7 473 5.0 7 OTD333 651106.7 4765885.0 712.71 0.73 0.10 92 6 7 478 5.0 7 OTD333 651108.8 4765883.0 703.13 0.78 0.14 72 10 7 488 5.0 7 OTD333 651113.1 4765879.0 683.99 0.64 0.08 48 10 7 508 5.0 7 OTD333 651115.4 4765877.5 674.43 0.69 0.09 47 10 7 518 5.0 7 OTD333 651116.4 4765876.5 669.65 1.16 0.16 85 10 7 523 5.0 7 OTD333 651117.5 4765875.5 664.86 0.71 0.09 41 10 7 528 5.0 7 OTD333 651123.7 4765869.5 636.12 0.75 0.09 67 10 7 558 5.0 7 OTD334 651154.1 4765133.5 770.85 0.66 0.03 101 10 7 425 5.0 7 OTD339 651417.8 4765932.0 842.71 0.88 0.05 44 6 7 347 5.0 7 OTD339 651416.6 4765933.0 838.00 1.10 0.05 91 6 7 352 5.0 7 OTD339 651412.6 4765936.5 824.00 0.64 0.08 34 6 7 367 5.0 7 OTD339 651409.9 4765939.0 814.68 0.95 0.14 33 6 7 377 5.0 7 OTD339 651408.5 4765940.0 810.01 0.70 0.05 33 6 7 382 5.0 7 OTD339 651407.2 4765942.0 805.35 0.74 0.01 20 6 7 387 5.0 7 OTD339 651406.1 4765942.5 801.63 0.71 0.01 28 6 7 390 3.0 7 OTD339 651404.9 4765943.5 797.90 0.99 0.04 26 4 7 395 5.0 7 OTD339 651402.3 4765946.0 788.58 1.48 0.06 19 4 7 405 5.0 7 OTD339 651400.9 4765947.0 783.93 0.96 0.03 9 4 7 410 5.0 7 OTD339 651399.5 4765948.5 779.27 1.19 0.03 17 4 7 415 5.0 7 OTD339 651398.1 4765949.5 774.62 0.88 0.03 31 4 7 420 5.0 7 OTD339 651396.6 4765951.0 769.96 1.33 0.07 14 4 7 425 5.0 7 OTD339 651395.3 4765952.0 765.31 1.06 0.04 13 4 7 430 5.0 7 OTD339 651392.4 4765955.0 756.01 1.02 0.05 14 4 7 440 5.0 7 OTD339 651391.1 4765956.0 751.36 1.25 0.05 41 4 7 445 5.0 7 OTD339 651389.6 4765957.0 746.71 1.16 0.04 17 4 7 450 5.0 7 OTD339 651388.4 4765958.5 742.53 1.21 0.04 16 4 7 454 4.0 7 OTD339 651387.1 4765959.5 738.35 0.70 0.02 19 6 7 459 5.0 7 OTD339 651385.7 4765961.0 733.71 0.73 0.04 20 6 7 464 5.0 7 OTD339 651384.3 4765962.0 729.06 0.75 0.04 26 6 7 469 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD339 651382.8 4765963.0 724.42 0.90 0.05 19 6 7 474 5.0 7 OTD339 651381.4 4765964.0 719.77 0.77 0.03 18 6 7 479 5.0 7 OTD339 651380.0 4765965.5 715.12 0.85 0.06 48 6 7 484 5.0 7 OTD339 651378.6 4765966.5 710.47 1.07 0.10 47 6 7 489 5.0 7 OTD339 651377.2 4765968.0 705.82 1.06 0.09 30 6 7 494 5.0 7 OTD339 651375.8 4765969.0 701.17 0.71 0.06 22 6 7 499 5.0 7 OTD339 651374.7 4765969.5 697.45 0.84 0.10 22 6 7 502 3.0 7 OTD339 651373.6 4765970.5 693.73 1.16 0.08 42 7 1 507 5.0 7 OTD339 651372.2 4765972.0 689.07 0.95 0.04 25 7 1 512 5.0 7 OTD339 651370.9 4765973.0 684.88 0.67 0.04 49 7 1 516 4.0 7 OTD339 651369.7 4765973.5 680.69 1.19 0.15 91 5 1 521 5.0 7 OTD339 651368.3 4765975.0 676.05 1.51 0.24 65 5 1 526 5.0 7 OTD339 651366.9 4765976.0 671.40 1.24 0.09 68 5 1 531 5.0 7 OTD339 651365.4 4765977.5 666.76 0.73 0.09 105 5 1 536 5.0 7 OTD339 651364.1 4765978.5 662.12 0.70 0.07 63 5 1 541 5.0 7 OTD339 651362.6 4765980.0 657.48 1.47 0.15 121 5 1 546 5.0 7 OTD339 651361.2 4765981.0 652.84 1.07 0.09 69 5 1 551 5.0 7 OTD339 651359.8 4765982.5 648.20 1.10 0.05 121 5 1 556 5.0 7 OTD339 651358.8 4765983.0 644.96 1.01 0.13 140 5 1 558 2.0 7 OTD339 651357.8 4765984.0 641.72 0.91 0.08 117 7 1 563 5.0 7 OTD339 651356.4 4765985.5 637.09 0.85 0.08 102 7 1 568 5.0 7 OTD339 651354.9 4765986.5 632.47 0.77 0.04 128 7 1 573 5.0 7 OTD339 651353.5 4765987.5 627.85 0.62 0.04 93 7 1 578 5.0 7 OTD339 651352.1 4765989.0 623.23 0.80 0.05 111 7 1 583 5.0 7 OTD339 651350.6 4765990.5 618.61 1.02 0.06 152 7 1 588 5.0 7 OTD339 651349.1 4765991.5 614.00 0.74 0.02 146 7 1 593 5.0 7 OTD339 651347.7 4765993.0 609.39 0.94 0.06 72 7 1 598 5.0 7 OTD339 651346.3 4765994.0 604.78 0.88 0.03 121 7 1 603 5.0 7 OTD339 651344.8 4765995.5 600.19 1.05 0.09 165 7 1 608 5.0 7 OTD339 651343.3 4765997.0 595.59 1.27 0.06 233 7 1 613 5.0 7 OTD339 651341.8 4765998.0 590.99 1.40 0.07 247 7 1 618 5.0 7 OTD339 651340.4 4765999.5 586.39 1.09 0.07 463 7 1 623 5.0 7 OTD339 651338.8 4766000.5 581.79 0.72 0.05 177 7 1 628 5.0 7 OTD339 651335.8 4766003.0 572.63 0.90 0.08 131 7 14 638 5.0 7 OTD339 651334.3 4766004.5 568.05 0.66 0.05 81 7 14 643 5.0 7 OTD339 651332.8 4766005.5 563.47 0.66 0.04 104 7 14 648 5.0 7 OTD339 651331.3 4766007.5 558.89 0.87 0.05 119 7 14 653 5.0 7 OTD339 651329.8 4766008.5 554.33 0.73 0.05 167 7 14 658 5.0 7 OTD339 651328.3 4766010.0 549.77 0.76 0.08 122 7 14 663 5.0 7 OTD339 651326.8 4766011.5 545.20 0.66 0.08 158 7 14 668 5.0 7 OTD339 651325.3 4766012.5 540.64 0.78 0.07 237 7 14 673 5.0 7 OTD339 651323.7 4766014.0 536.07 0.72 0.07 223 7 14 678 5.0 7 OTD342 651005.1 4765712.0 698.67 0.69 0.16 21 10 7 496 5.0 7 OTD342 651006.2 4765711.0 693.90 0.88 0.16 25 10 7 501 5.0 7 OTD342 651008.4 4765709.0 684.35 0.63 0.08 17 10 7 511 5.0 7 OTD342 651016.2 4765702.0 650.90 0.65 0.07 25 10 1 546 5.0 7 OTD342 651043.1 4765677.0 526.28 0.81 0.13 41 7 1 676 5.0 7 OTD342 651044.1 4765676.0 521.48 0.72 0.07 61 7 1 681 5.0 7 OTD342 651046.1 4765674.5 511.88 0.77 0.12 48 7 1 691 5.0 7 OTD342 651047.1 4765673.5 507.08 0.68 0.08 84 7 1 696 5.0 7 OTD342 651048.1 4765672.0 502.28 0.78 0.09 89 7 1 701 5.0 7 OTD342 651049.2 4765671.0 497.47 0.92 0.09 55 7 1 706 5.0 7 OTD342 651054.1 4765666.5 473.44 0.76 0.11 78 7 1 731 5.0 7 OTD342 651056.1 4765665.0 463.82 0.61 0.09 130 7 1 741 5.0 7 OTD342 651067.1 4765653.5 406.04 0.70 0.19 64 7 1 801 5.0 7 OTD342 651067.9 4765652.5 401.21 1.07 0.46 61 7 1 806 5.0 7 OTD342 651068.8 4765651.5 396.39 1.18 0.62 81 7 1 811 5.0 7 OTD342 651069.6 4765650.5 391.56 0.88 0.52 53 7 1 816 5.0 7 OTD342 651070.5 4765649.5 386.74 0.84 0.35 52 7 1 821 5.0 7 OTD342 651071.4 4765648.5 381.91 0.79 0.22 54 7 1 826 5.0 7 OTD342 651072.2 4765647.5 377.09 1.18 0.32 59 7 1 831 5.0 7 OTD342 651073.9 4765646.0 367.44 0.76 0.23 59 7 1 841 5.0 7 OTD342 651074.8 4765645.0 362.61 1.05 0.22 62 7 1 846 5.0 7 OTD342 651075.6 4765643.5 357.78 0.96 0.43 129 7 1 851 5.0 7 OTD342 651076.4 4765642.5 352.96 1.06 0.39 60 7 1 856 5.0 7 OTD342 651077.3 4765641.5 348.13 0.77 0.27 60 7 1 861 5.0 7 OTD342 651079.8 4765639.0 333.65 0.67 0.20 80 7 1 876 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- ----- ------ ---- OTD342 651080.3 4765638.5 330.27 1.16 0.95 93 7 1 878 2.0 7 OTD343 650979.1 4765993.5 721.16 0.69 0.20 29 10 7 481 5.0 7 OTD343 650989.1 4765985.5 688.62 0.61 0.06 28 10 7 516 5.0 7 OTD343 651002.6 4765973.5 643.62 0.93 0.40 56 7 14 564 4.0 7 OTD343 651003.9 4765972.5 639.45 0.93 0.15 49 6 7 569 5.0 7 OTD343 651005.3 4765971.0 634.81 0.71 0.15 90 6 7 574 5.0 7 OTD343 651006.6 4765970.0 630.18 0.94 0.19 26 6 7 579 5.0 7 OTD343 651013.5 4765963.0 607.04 0.99 0.24 124 7 1 604 5.0 7 OTD343 651014.8 4765962.0 602.42 0.64 0.16 438 7 1 609 5.0 7 OTD343 651016.2 4765960.5 597.80 0.75 0.27 58 7 1 614 5.0 7 OTD343 651017.6 4765959.0 593.17 0.80 0.27 93 7 1 619 5.0 7 OTD343 651018.9 4765957.5 588.55 1.00 0.31 88 7 1 624 5.0 7 OTD343 651020.2 4765956.0 583.93 0.78 0.24 29 7 1 629 5.0 7 OTD343 651021.6 4765954.5 579.31 0.84 0.59 35 7 1 634 5.0 7 OTD343 651022.9 4765953.5 574.69 0.85 0.35 26 7 1 639 5.0 7 OTD343 651024.3 4765952.0 570.07 0.70 0.15 27 7 1 644 5.0 7 OTD343 651025.6 4765950.5 565.45 0.88 0.17 15 7 1 649 5.0 7 OTD343 651026.6 4765949.5 561.75 0.70 0.34 13 7 1 652 3.0 7 OTD343 651034.4 4765941.5 534.97 0.76 0.14 30 10 1 682 5.0 7 OTD343 651052.9 4765922.0 470.38 1.04 0.52 373 10 1 752 5.0 7 OTD343 651070.6 4765901.0 405.02 0.62 0.09 119 10 1 823 5.0 7 OTD343 651073.1 4765897.5 395.83 0.89 0.31 42 10 1 833 5.0 7 OTD343 651115.1 4765843.5 238.28 0.98 0.18 51 7 14 1005 5.0 7 OTD343 651116.3 4765842.0 233.72 0.63 0.27 34 7 14 1010 5.0 7 OTD343 651118.8 4765838.0 224.61 0.76 0.34 67 7 14 1020 5.0 7 OTD343 651120.0 4765836.5 220.05 0.90 0.32 39 7 14 1025 5.0 7 OTD343 651121.3 4765835.0 215.50 1.09 0.48 32 7 14 1030 5.0 7 OTD343 651122.5 4765833.0 210.94 0.99 0.45 74 7 14 1035 5.0 7 OTD343 651123.8 4765831.5 206.39 0.73 0.32 71 7 14 1040 5.0 7 OTD343 651125.0 4765830.0 201.84 1.46 0.28 105 7 14 1045 5.0 7 OTD343 651126.3 4765828.5 197.29 1.18 0.30 104 7 14 1050 5.0 7 OTD343 651130.0 4765823.0 183.65 0.69 0.71 136 7 14 1065 5.0 7 OTD343 651131.3 4765821.0 179.10 0.69 0.25 54 7 14 1070 5.0 7 OTD343 651132.5 4765819.0 174.57 1.51 0.39 121 7 14 1075 5.0 7 OTD343 651134.0 4765817.0 169.12 0.89 0.66 110 10 14 1081 5.0 7 OTD343 651135.3 4765815.5 164.58 0.64 0.30 109 10 14 1086 5.0 7 OTD343 651144.6 4765802.0 128.38 0.62 0.18 142 10 14 1126 5.0 7 OTD343 651156.7 4765784.5 83.19 1.31 0.45 55 10 14 1176 5.0 7 OTD343 651157.9 4765782.5 78.68 1.78 0.61 142 10 14 1181 5.0 7 OTD343 651159.1 4765780.5 74.17 0.70 0.24 53 10 14 1186 5.0 7 OTD346 651067.2 4765215.0 782.58 0.60 0.05 41 10 7 415 5.0 7 OTD346 651065.8 4765216.5 778.05 0.64 0.07 63 10 7 420 5.0 7 OTD346 651049.8 4765234.0 728.53 0.70 0.09 68 10 7 475 5.0 7 OTD346 651048.3 4765236.0 724.04 0.92 0.08 85 10 7 480 5.0 7 OTD346 651046.9 4765237.5 719.55 0.99 0.08 75 10 7 485 5.0 7 OTD346 651045.4 4765239.0 715.07 0.97 0.08 101 10 7 490 5.0 7 OTD346 651043.9 4765240.5 710.58 1.04 0.10 84 10 7 495 5.0 7 OTD346 650990.8 4765302.0 544.09 1.00 0.07 189 10 1 680 5.0 7 OTD346 650985.3 4765309.0 526.08 0.68 0.12 140 10 1 700 5.0 7 OTD346 650983.9 4765310.5 521.93 0.93 0.42 505 10 1 704.2 4.2 7 OTD356 651597.9 4765583.0 564.62 0.71 0.02 34 10 1 632 5.0 7 OTD356 651596.8 4765584.0 559.85 0.66 0.03 32 10 1 637 5.0 7 OTD356 651595.6 4765585.0 555.09 0.85 0.03 68 10 1 642 5.0 7 OTD356 651594.6 4765586.0 550.33 0.67 0.03 48 10 1 647 5.0 7 OTD356 651590.1 4765590.0 531.29 0.99 0.03 49 7 1 667 5.0 7 OTD356 651589.0 4765591.0 526.53 0.98 0.02 52 7 1 672 5.0 7 OTD356 651587.9 4765592.5 521.77 0.94 0.04 25 7 1 677 5.0 7 OTD356 651585.7 4765594.0 512.24 0.62 0.02 16 7 1 687 5.0 7 OTD356 651584.6 4765595.0 507.48 1.06 0.02 30 7 14 692 5.0 7 OTD356 651583.5 4765596.0 502.71 1.09 0.07 38 7 14 697 5.0 7 OTD356 651582.4 4765597.0 497.95 0.85 0.07 50 7 14 702 5.0 7 OTD356 651581.3 4765598.0 493.18 1.21 0.12 50 7 14 707 5.0 7 OTD356 651580.3 4765599.0 488.41 1.19 0.11 34 7 14 712 5.0 7 OTD356 651579.1 4765600.0 483.64 1.00 0.15 32 7 14 717 5.0 7 OTD356 651578.1 4765600.5 478.87 1.40 0.08 49 7 14 722 5.0 7 OTD356 651577.0 4765602.0 474.10 1.37 0.09 48 7 14 727 5.0 7 OTD356 651575.9 4765603.0 469.33 1.22 0.12 69 7 14 732 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- ---- ------ ---- OTD356 651573.8 4765605.0 459.79 0.70 0.05 12 7 1 742 5.0 7 OTD356 651568.5 4765610.0 435.91 0.83 0.05 20 7 1 767 5.0 7 OTD356 651567.4 4765611.0 431.14 0.87 0.07 24 7 1 772 5.0 7 OTD356 651566.4 4765612.0 426.36 0.90 0.06 51 7 1 777 5.0 7 OTD356 651565.4 4765613.0 421.58 0.82 0.07 61 7 1 782 5.0 7 OTD356 651564.6 4765613.5 418.23 0.77 0.05 145 7 1 784 2.0 7 OTD356 651563.9 4765614.5 414.89 1.46 0.22 55 5 1 789 5.0 7 OTD356 651562.9 4765615.5 410.11 1.65 0.24 66 5 1 794 5.0 7 OTD356 651561.8 4765616.5 405.33 1.35 0.29 124 2 1 799 5.0 7 OTD356 651560.8 4765617.0 400.55 2.36 0.50 97 2 1 804 5.0 7 OTD356 651559.7 4765618.5 395.77 2.30 0.34 509 2 1 809 5.0 7 OTD356 651558.7 4765619.5 391.00 2.16 0.48 165 2 1 814 5.0 7 OTD356 651557.6 4765620.5 386.22 1.95 0.42 74 2 1 819 5.0 7 OTD356 651556.6 4765621.5 381.45 1.59 0.36 117 2 1 824 5.0 7 OTD356 651555.6 4765622.5 376.67 2.02 0.39 59 2 1 829 5.0 7 OTD356 651554.6 4765623.5 371.90 2.73 0.52 31 2 1 834 5.0 7 OTD356 651553.7 4765624.5 367.60 2.72 0.47 28 2 1 838 4.0 7 OTD356 651552.9 4765625.5 363.78 1.79 0.23 38 5 1 842 4.0 7 OTD356 651551.9 4765626.5 359.49 0.74 0.07 12 7 1 847 5.0 7 OTD356 651550.9 4765627.5 354.72 0.93 0.09 34 7 1 852 5.0 7 OTD356 651549.9 4765629.0 349.95 0.75 0.06 24 7 1 857 5.0 7 OTD356 651548.8 4765630.0 345.18 0.74 0.06 27 7 1 862 5.0 7 OTD356 651547.8 4765631.0 340.41 0.82 0.06 32 7 1 867 5.0 7 OTD356 651546.7 4765632.0 335.64 0.67 0.05 38 7 1 872 5.0 7 OTD356 651545.6 4765633.0 330.88 0.63 0.04 38 7 1 877 5.0 7 OTD356 651544.6 4765634.0 326.11 0.95 0.07 42 7 1 882 5.0 7 OTD356 651543.5 4765635.0 321.34 0.75 0.06 27 7 1 887 5.0 7 OTD356 651542.4 4765636.5 316.57 0.93 0.07 44 7 1 892 5.0 7 OTD356 651541.4 4765637.5 311.80 0.80 0.04 52 7 1 897 5.0 7 OTD356 651540.3 4765638.0 307.03 0.87 0.07 66 7 1 902 5.0 7 OTD356 651539.3 4765639.5 302.26 0.67 0.06 32 7 1 907 5.0 7 OTD356 651538.2 4765640.5 297.49 1.11 0.08 60 7 1 912 5.0 7 OTD356 651537.1 4765641.5 292.72 0.67 0.04 56 7 1 917 5.0 7 OTD356 651536.3 4765642.5 288.90 0.77 0.05 34 7 1 920 3.0 7 OTD356 651534.4 4765644.5 280.31 0.62 0.05 45 10 1 930 5.0 7 OTD356 651528.2 4765651.0 251.63 0.67 0.03 103 10 1 960 5.0 7 OTD356 651525.2 4765653.5 237.27 0.74 0.03 107 10 1 975 5.0 7 OTD356 651523.1 4765655.5 227.69 0.64 0.03 68 10 1 985 5.0 7 OTD356 651520.6 4765658.0 216.19 0.65 0.01 174 7 1 997 5.0 7 OTD356 651519.6 4765659.0 211.40 0.89 0.01 49 7 1 1002 5.0 7 OTD356 651518.6 4765660.0 206.60 0.79 0.01 61 7 1 1007 5.0 7 OTD356 651517.6 4765661.0 201.80 0.99 0.03 60 7 1 1012 5.0 7 OTD356 651516.5 4765662.0 197.01 0.88 0.03 39 7 1 1017 5.0 7 OTD356 651515.4 4765662.5 192.21 0.80 0.04 50 7 1 1022 5.0 7 OTD356 651514.4 4765663.5 187.41 0.78 0.04 37 7 1 1027 5.0 7 OTD356 651513.4 4765664.5 182.61 0.63 0.03 47 7 1 1032 5.0 7 OTD356 651512.3 4765665.5 177.82 0.69 0.02 53 7 1 1037 5.0 7 OTD356 651510.3 4765667.5 168.22 0.76 0.03 59 7 1 1047 5.0 7 OTD356 651509.5 4765668.0 164.38 0.82 0.07 122 7 1 1050 3.0 7 OTD356 651507.8 4765670.0 155.74 0.63 0.02 47 10 1 1060 5.0 7 OTD356 651500.6 4765676.5 122.16 0.68 0.05 28 10 1 1095 5.0 7 OTD356 651498.6 4765678.5 112.56 0.68 0.07 33 10 1 1105 5.0 7 OTD359 651200.1 4766053.5 817.81 1.00 0.09 5 6 7 373 5.0 7 OTD359 651201.3 4766052.5 813.12 1.19 0.09 8 6 7 378 5.0 7 OTD359 651202.1 4766051.5 809.84 1.02 0.05 5 6 7 380 2.0 7 OTD359 651211.0 4766041.0 772.90 0.93 0.04 16 6 7 421 5.0 7 OTD359 651214.4 4766036.5 758.89 0.63 0.04 16 6 7 436 5.0 7 OTD359 651215.6 4766035.5 754.23 0.83 0.12 27 6 7 441 5.0 7 OTD359 651216.7 4766034.0 749.56 0.68 0.10 33 6 7 446 5.0 7 OTD359 651217.8 4766032.5 744.89 0.93 0.09 22 6 7 451 5.0 7 OTD359 651219.0 4766031.0 740.22 0.79 0.09 23 6 7 456 5.0 7 OTD359 651222.0 4766027.5 728.09 0.67 0.11 48 7 14 469 5.0 7 OTD359 651223.1 4766026.0 723.43 0.75 0.14 70 7 14 474 5.0 7 OTD359 651224.2 4766025.0 719.23 0.81 0.51 48 7 14 478 4.0 7 OTD366 651414.8 4765326.0 765.77 1.22 0.02 23 10 7 425 5.0 7 OTD366 651413.3 4765327.5 761.21 0.74 0.01 15 10 7 430 5.0 7 OTD366 651396.7 4765343.5 711.21 0.62 0.05 108 10 7 485 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD366 651387.8 4765352.5 684.04 0.68 0.02 22 6 7 515 5.0 7 OTD366 651385.9 4765354.0 678.62 1.11 0.01 22 4 7 521 5.0 7 OTD366 651384.4 4765356.0 674.13 0.64 0.01 20 4 7 526 5.0 7 OTD366 651382.9 4765357.5 669.64 0.98 0.02 15 4 7 531 5.0 7 OTD366 651381.5 4765359.0 665.14 1.06 0.02 21 4 7 536 5.0 7 OTD366 651379.9 4765360.5 660.67 0.84 0.01 15 4 7 541 5.0 7 OTD366 651376.9 4765364.0 651.74 0.78 0.01 17 4 7 551 5.0 7 OTD366 651375.4 4765365.5 647.28 1.24 0.01 22 4 7 556 5.0 7 OTD366 651361.7 4765380.0 609.33 4.08 0.86 11 2 7 599 5.0 7 OTD366 651360.4 4765382.0 605.83 4.70 1.09 18 2 7 602 3.0 7 OTD366 651359.1 4765383.5 602.36 1.12 0.06 5 2 7 607 5.0 7 OTD366 651357.4 4765385.0 598.03 1.21 0.09 29 4 7 612 5.0 7 OTD366 651354.1 4765389.0 589.37 1.60 0.03 119 4 7 622 5.0 7 OTD366 651352.6 4765390.5 585.47 1.07 0.02 140 4 7 626 4.0 7 OTD366 651351.0 4765392.0 581.60 0.70 0.02 106 6 7 631 5.0 7 OTD366 651349.3 4765394.0 577.33 0.82 0.02 61 6 7 636 5.0 7 OTD366 651347.5 4765396.0 573.06 0.78 0.02 70 6 7 641 5.0 7 OTD366 651345.8 4765398.0 568.79 0.73 0.02 71 6 7 646 5.0 7 OTD366 651344.1 4765399.5 564.51 1.47 0.03 185 6 7 651 5.0 7 OTD366 651342.3 4765401.5 560.30 0.93 0.02 159 6 7 656 5.0 7 OTD366 651340.4 4765403.5 556.09 0.84 0.03 78 6 7 661 5.0 7 OTD366 651336.8 4765407.5 547.67 0.63 0.02 90 6 7 671 5.0 7 OTD366 651335.1 4765409.5 543.48 0.99 0.03 76 6 7 676 5.0 7 OTD366 651333.4 4765412.0 539.29 0.74 0.01 51 7 1 681 5.0 7 OTD366 651331.6 4765414.0 535.09 1.35 0.03 71 7 1 686 5.0 7 OTD366 651329.9 4765416.0 530.91 1.09 0.03 72 7 1 691 5.0 7 OTD366 651328.3 4765418.5 526.74 1.15 0.02 107 7 1 696 5.0 7 OTD366 651326.7 4765420.0 522.56 0.99 0.02 127 7 1 701 5.0 7 OTD366 651325.2 4765422.5 518.40 0.97 0.02 141 7 1 706 5.0 7 OTD366 651323.6 4765425.0 514.24 0.98 0.04 144 7 1 711 5.0 7 OTD366 651322.1 4765427.0 510.08 1.16 0.03 137 7 1 716 5.0 7 OTD366 651320.6 4765429.5 505.94 1.23 0.03 75 7 1 721 5.0 7 OTD366 651319.1 4765432.0 501.81 0.75 0.02 179 7 1 726 5.0 7 OTD366 651317.5 4765434.5 497.68 0.99 0.04 69 7 1 731 5.0 7 OTD366 651315.9 4765437.0 493.54 0.86 0.03 110 7 1 736 5.0 7 OTD366 651314.9 4765438.5 490.68 0.65 0.06 75 7 1 738 2.0 7 OTD366 651306.5 4765452.0 468.22 0.64 0.03 56 7 1 767 5.0 7 OTD366 651305.0 4765454.5 464.17 0.67 0.06 71 7 1 772 5.0 7 OTD366 651303.4 4765457.0 460.13 0.96 0.09 86 7 1 777 5.0 7 OTD366 651301.9 4765460.0 456.09 1.09 0.04 99 7 1 782 5.0 7 OTD366 651286.2 4765486.5 414.06 0.60 0.07 108 10 1 833 2.0 7 OTD373 651629.2 4765940.5 513.34 0.76 0.04 61 7 1 701 5.0 7 OTD373 651626.6 4765943.5 504.71 0.70 0.03 23 7 1 710 4.0 7 OTD373 651625.4 4765945.0 500.62 0.73 0.04 16 5 1 715 5.0 7 OTD373 651622.8 4765948.0 491.56 0.65 0.05 15 5 1 725 5.0 7 OTD373 651621.5 4765950.0 487.04 0.73 0.04 35 5 1 730 5.0 7 OTD373 651620.3 4765951.5 482.97 0.87 0.08 28 5 1 734 4.0 7 OTD373 651619.1 4765953.0 478.91 0.80 0.02 62 7 1 739 5.0 7 OTD373 651617.8 4765954.5 474.39 0.68 0.01 60 7 1 744 5.0 7 OTD373 651616.4 4765956.0 469.88 0.64 0.01 48 7 1 749 5.0 7 OTD373 651615.1 4765957.5 465.37 0.94 0.01 94 7 1 754 5.0 7 OTD373 651613.8 4765959.5 460.85 0.79 0.02 61 7 1 759 5.0 7 OTD373 651612.4 4765961.5 456.35 0.85 0.01 66 7 1 764 5.0 7 OTD373 651611.1 4765963.0 451.85 0.90 0.09 31 7 1 769 5.0 7 OTD373 651608.4 4765966.5 442.87 0.86 0.09 91 7 1 779 5.0 7 OTD373 651607.0 4765968.5 438.38 0.79 0.06 61 7 1 784 5.0 7 OTD373 651605.6 4765970.5 433.91 0.80 0.03 103 7 1 789 5.0 7 OTD373 651604.3 4765972.0 429.45 0.80 0.02 102 7 1 794 5.0 7 OTD373 651602.8 4765974.0 424.98 0.89 0.03 139 7 1 799 5.0 7 OTD373 651601.5 4765975.5 420.51 0.75 0.02 106 7 1 804 5.0 7 OTD373 651600.1 4765977.0 416.06 0.80 0.07 222 7 1 809 5.0 7 OTD373 651598.7 4765979.0 411.61 0.78 0.05 182 7 1 814 5.0 7 OTD373 651597.3 4765981.0 407.15 0.76 0.06 136 7 1 819 5.0 7 OTD373 651595.9 4765982.5 402.70 0.90 0.12 106 7 1 824 5.0 7 OTD373 651594.4 4765984.0 398.26 0.84 0.16 198 7 1 829 5.0 7 OTD373 651593.0 4765986.0 393.82 0.91 0.23 172 7 1 834 5.0 7 OTD373 651570.1 4766014.0 326.03 0.68 0.15 87 10 14 911 5.0 7
DHID EASTING NORTHING ELEVATION Cu (wt%) Au (g/t) Mo (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------- -------- --------- --------- -------- -------- -------- ------ --------- ------- ------ ---- OTD374 651756.1 4765972.5 232.55 0.74 0.12 73 10 14 961.67 5.0 7 OTD374 651746.4 4765985.5 185.09 0.65 0.60 16 10 14 1011.67 5.0 7 OTD374 651745.5 4765986.5 180.34 0.71 0.13 6 10 14 1016.67 5.0 7 OTD374 651736.4 4765999.0 132.49 0.91 1.40 220 10 14 1067 5.0 7 OTD374A 651713.8 4765994.5 380.41 0.61 0.04 16 10 7 846.67 5.0 7 OTD374A 651692.1 4766017.0 332.36 0.63 0.07 11 10 1 904 5.0 7 OTD374A 651690.3 4766018.5 328.16 0.80 0.12 39 10 1 909 5.0 7 OTD374A 651686.6 4766022.5 319.78 0.74 0.06 66 10 1 919 5.0 7 OTD374A 651684.7 4766024.5 315.58 0.67 0.04 68 10 1 924 5.0 7 OTD374A 651682.8 4766027.0 311.39 0.92 0.07 42 10 1 929 5.0 7 OTD374A 651673.8 4766037.0 290.42 0.61 0.02 74 10 1 954 5.0 7 OTD376A 650780.1 4766147.0 899.43 0.61 0.07 16 10 14 285 5.0 7 OTD376A 650781.4 4766146.0 894.69 0.85 0.10 27 10 14 290 5.0 7 OTD376A 650869.6 4766086.5 571.94 0.75 0.16 86 10 14 630 5.0 7 OTD376A 650872.0 4766084.5 562.42 0.65 0.12 85 10 14 640 5.0 7 OTD376A 650876.8 4766081.0 543.37 0.61 0.19 65 10 14 660 5.0 7 OTD376A 650885.3 4766074.5 510.01 0.76 0.18 95 10 14 695 5.0 7 OTD376A 650891.5 4766069.5 485.22 0.66 0.17 99 10 14 721 5.0 7 OTD376A 650897.6 4766064.5 460.43 0.88 0.06 57 7 14 747 5.0 7 OTD376A 650898.8 4766064.0 455.66 0.66 0.07 38 7 14 752 5.0 7 OTD376A 650899.9 4766063.0 450.89 0.71 0.06 41 7 14 757 5.0 7 OTD376A 650902.3 4766061.0 441.36 0.78 0.10 14 7 14 767 5.0 7 OTD376A 650903.3 4766059.5 437.55 0.68 0.11 12 7 14 770 3.0 7 OTD377 651765.4 4766203.0 634.68 0.93 0.02 95 6 7 577 5.0 7 OTD377 651763.9 4766204.5 630.18 0.76 0.02 74 6 7 582 5.0 7 OTD377 651762.3 4766206.0 625.68 1.31 0.02 163 6 7 587 5.0 7 OTD377 651760.8 4766207.5 621.19 0.69 0.01 99 6 7 592 5.0 7 OTD377 651756.0 4766212.0 607.70 0.73 0.01 31 6 7 607 5.0 7 OTD377 651754.4 4766214.0 603.22 0.83 0.02 10 6 7 612 5.0 7 OTD377 651739.6 4766229.0 559.72 1.46 0.02 18 4 7 660 4.0 7 OTD377 651738.3 4766230.5 555.69 0.83 0.03 11 5 1 665 5.0 7 OTD377 651736.8 4766231.5 551.21 1.06 0.05 11 5 1 670 5.0 7 OTD377 651735.2 4766233.5 546.74 1.32 0.03 18 5 1 675 5.0 7 OTD377 651733.3 4766235.0 541.38 1.16 0.02 15 4 7 681 5.0 7 OTD377 651732.1 4766236.5 537.81 0.90 0.02 12 4 7 684 3.0 7 OTD377 651730.9 4766238.5 534.23 2.24 0.05 53 5 1 689 5.0 7 OTD377 651729.3 4766240.0 529.77 1.25 0.04 41 5 1 694 5.0 7 OTD377 651728.2 4766241.0 526.65 1.18 0.03 11 5 1 696 2.0 7 OTD377 651723.9 4766245.0 514.62 1.32 0.08 11 5 1 711 5.0 7 OTD377 651722.3 4766246.5 510.17 1.46 0.09 13 5 1 716 5.0 7 OTD377 651720.7 4766248.5 505.71 1.91 0.08 14 5 1 721 5.0 7 OTD377 651719.1 4766250.0 501.27 2.02 0.10 41 5 1 726 5.0 7 OTD377 651717.5 4766251.5 496.83 1.58 0.07 68 5 1 731 5.0 7 OTD377 651715.9 4766253.5 492.39 2.04 0.09 25 5 1 736 5.0 7 OTD377 651714.3 4766255.0 487.95 1.74 0.11 23 5 1 741 5.0 7 OTD377 651712.6 4766257.0 483.52 1.81 0.14 28 5 1 746 5.0 7 OTD377 651711.1 4766258.5 479.09 1.13 0.08 20 5 1 751 5.0 7 OTD377 651709.2 4766260.5 473.78 3.12 0.38 20 2 14 757 5.0 7 OTD377 651707.6 4766262.0 469.36 4.45 0.60 12 2 14 762 5.0 7 OTD377 651706.0 4766264.0 464.94 4.15 0.80 23 2 14 767 5.0 7 OTD377 651704.7 4766265.5 461.40 2.37 0.27 41 2 14 770 3.0 7 OTD377 651703.4 4766266.5 457.87 0.88 0.12 47 5 14 775 5.0 7 OTD377 651701.8 4766268.5 453.47 0.70 0.04 49 5 14 780 5.0 7 OTD377 651700.3 4766270.0 449.06 0.80 0.06 39 5 14 785 5.0 7 OTD377 651698.7 4766272.5 444.65 0.95 0.07 40 5 14 790 5.0 7 OTD377 651697.2 4766274.5 440.25 0.91 0.15 59 5 14 795 5.0 7 OTD377 651695.6 4766276.0 435.86 1.67 0.30 62 5 14 800 5.0 7 OTD377 651694.1 4766278.0 431.46 1.23 0.14 102 5 14 805 5.0 7 OTD377 651692.6 4766280.0 427.08 1.41 0.12 63 5 14 810 5.0 7 OTD377 651691.3 4766281.5 423.13 1.55 0.17 60 5 14 814 4.0 7 OTD377 651689.9 4766283.5 419.19 0.83 0.23 42 7 14 819 5.0 7 OTD377 651688.4 4766285.0 414.80 0.70 0.20 72 7 14 824 5.0 7 OTD377 651686.8 4766287.0 410.41 0.68 0.18 29 7 14 829 5.0 7 OTD377 651685.3 4766289.0 406.05 0.94 0.15 26 7 14 834 5.0 7 OTD377 651683.8 4766291.0 401.69 0.83 0.10 28 7 14 839 5.0 7 OTD377 651682.2 4766293.0 397.34 0.73 0.25 28 7 14 844 5.0 7 OTD377 651680.7 4766294.5 392.98 1.22 0.46 49 7 14 849 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD377 651679.1 4766296.5 388.62 0.98 0.18 27 7 14 854 5.0 7 OTD377 651677.6 4766298.0 384.28 0.79 0.25 31 7 14 859 5.0 7 OTD377 651676.0 4766300.0 379.95 1.50 0.28 60 7 14 864 5.0 7 OTD378 651422.6 4765440.5 779.16 0.91 0.01 33 6 7 413 5.0 7 OTD378 651420.9 4765442.0 773.68 1.07 0.02 97 4 7 419 5.0 7 OTD378 651419.6 4765443.5 769.11 1.03 0.03 83 4 7 424 5.0 7 OTD378 651418.3 4765445.0 764.53 1.98 0.05 40 4 7 429 5.0 7 OTD378 651417.0 4765446.5 759.95 1.23 0.02 41 4 7 434 5.0 7 OTD378 651415.8 4765448.0 755.37 0.85 0.02 37 4 7 439 5.0 7 OTD378 651414.4 4765449.5 750.78 1.19 0.02 47 4 7 444 5.0 7 OTD378 651413.1 4765451.0 746.19 1.14 0.01 36 4 7 449 5.0 7 OTD378 651411.8 4765452.5 741.60 1.21 0.02 28 4 7 454 5.0 7 OTD378 651410.5 4765454.0 737.00 1.28 0.04 65 4 7 459 5.0 7 OTD378 651409.3 4765455.5 732.40 1.61 0.05 48 4 7 464 5.0 7 OTD378 651407.9 4765457.5 727.81 1.46 0.07 69 4 7 469 5.0 7 OTD378 651406.6 4765459.0 723.23 1.39 0.03 57 4 7 474 5.0 7 OTD378 651405.3 4765460.5 718.66 1.47 0.03 47 4 7 479 5.0 7 OTD378 651404.0 4765462.0 714.09 1.62 0.03 56 4 7 484 5.0 7 OTD378 651402.8 4765463.0 709.53 1.57 0.05 44 4 7 489 5.0 7 OTD378 651401.1 4765465.0 704.07 2.99 0.08 66 2 7 495 5.0 7 OTD378 651399.8 4765466.5 699.53 2.11 0.06 55 2 7 500 5.0 7 OTD378 651398.6 4765468.5 695.45 2.50 0.09 94 2 7 504 4.0 7 OTD378 651397.4 4765470.0 691.39 1.60 0.08 61 4 7 509 5.0 7 OTD378 651396.0 4765471.5 686.87 1.05 0.04 42 4 7 514 5.0 7 OTD378 651394.7 4765473.0 682.35 1.00 0.03 57 4 7 519 5.0 7 OTD378 651392.0 4765476.5 673.36 1.22 0.03 20 4 7 529 5.0 7 OTD378 651390.6 4765478.5 668.86 1.65 0.03 50 4 7 534 5.0 7 OTD378 651389.4 4765480.0 664.37 1.53 0.03 28 4 7 539 5.0 7 OTD378 651388.0 4765482.0 659.90 1.53 0.03 55 4 7 544 5.0 7 OTD378 651386.7 4765483.5 655.42 1.21 0.04 46 4 7 549 5.0 7 OTD378 651385.3 4765485.0 650.95 0.94 0.03 32 4 7 554 5.0 7 OTD378 651384.1 4765486.5 646.94 0.80 0.02 30 4 7 558 4.0 7 OTD378 651368.6 4765508.5 594.94 1.33 0.03 71 4 7 617 5.0 7 OTD378 651367.3 4765510.5 590.52 0.97 0.03 29 4 7 622 5.0 7 OTD378 651366.0 4765512.5 586.09 0.92 0.03 53 4 7 627 5.0 7 OTD378 651364.7 4765514.0 581.67 0.73 0.02 92 4 7 632 5.0 7 OTD378 651363.4 4765516.0 577.24 1.17 0.02 141 4 7 637 5.0 7 OTD378 651362.2 4765518.0 572.83 1.23 0.02 65 4 7 642 5.0 7 OTD378 651360.9 4765520.0 568.41 0.60 0.01 34 4 7 647 5.0 7 OTD378 651357.4 4765526.5 555.19 1.42 0.04 88 4 7 662 5.0 7 OTD378 651356.2 4765528.5 550.77 1.23 0.02 78 4 7 667 5.0 7 OTD378 651355.0 4765530.5 546.39 0.87 0.08 119 4 7 672 5.0 7 OTD378 651353.8 4765532.5 542.00 0.67 0.05 64 5 1 677 5.0 7 OTD378 651352.6 4765534.5 537.62 1.24 0.05 70 5 1 682 5.0 7 OTD378 651351.7 4765536.0 534.55 1.28 0.08 57 7 1 684 2.0 7 OTD381 651484.7 4766026.5 862.76 0.79 0.04 5 6 7 376 4.0 7 OTD381 651482.7 4766028.0 859.29 1.11 0.04 26 4 7 381 5.0 7 OTD381 651480.3 4766030.5 855.44 1.19 0.04 45 4 7 386 5.0 7 OTD381 651478.0 4766032.5 851.58 1.44 0.04 19 4 7 391 5.0 7 OTD381 651475.7 4766034.5 847.73 1.47 0.07 12 4 7 396 5.0 7 OTD381 651473.3 4766036.5 843.88 1.05 0.03 15 4 7 401 5.0 7 OTD381 651471.0 4766039.0 839.99 0.85 0.03 7 4 7 406 5.0 7 OTD381 651468.7 4766041.0 836.11 1.30 0.04 15 4 7 411 5.0 7 OTD381 651466.4 4766043.0 832.22 0.83 0.03 15 4 7 416 5.0 7 OTD381 651461.8 4766047.5 824.45 0.91 0.03 15 4 7 426 5.0 7 OTD381 651459.6 4766050.0 820.56 1.07 0.04 9 4 7 431 5.0 7 OTD381 651457.3 4766052.0 816.68 1.10 0.02 5 4 7 436 5.0 7 OTD381 651455.7 4766053.5 813.95 1.37 0.02 5 4 7 438 2.0 7 OTD381 651454.1 4766054.5 811.23 0.87 0.02 5 6 7 443 5.0 7 OTD381 651451.9 4766057.0 807.36 0.92 0.01 5 6 7 448 5.0 7 OTD381 651449.6 4766059.0 803.48 0.96 0.01 8 6 7 453 5.0 7 OTD381 651447.4 4766061.5 799.60 1.11 0.02 5 6 7 458 5.0 7 OTD381 651445.1 4766063.5 795.72 1.14 0.03 10 6 7 463 5.0 7 OTD381 651442.9 4766066.0 791.84 0.82 0.03 10 6 7 468 5.0 7 OTD381 651433.6 4766075.5 775.51 1.11 0.05 14 7 1 489 5.0 7 OTD381 651431.3 4766077.5 771.60 0.82 0.03 30 7 1 494 5.0 7 OTD381 651429.1 4766079.5 767.70 0.87 0.03 7 7 1 499 5.0 7
DHID EASTING NORTHING ELEVATION CU (WT%) AU (G/T) MO (PPM) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD381 651426.9 4766082.0 763.79 0.94 0.03 25 7 1 504 5.0 7 OTD381 651424.8 4766084.5 759.88 0.87 0.05 13 7 1 509 5.0 7 OTD381 651422.6 4766086.5 755.96 1.02 0.05 17 7 1 514 5.0 7 OTD381 651414.1 4766095.5 740.27 0.61 0.03 5 7 1 534 5.0 7 OTD381 651411.9 4766098.0 736.34 0.99 0.03 7 7 1 539 5.0 7 OTD381 651409.8 4766100.0 732.41 0.73 0.03 17 7 1 544 5.0 7 OTD381 651403.7 4766107.0 721.01 0.83 0.04 13 7 1 558 4.0 7 OTD381 651401.8 4766108.5 717.47 1.75 0.07 35 5 1 563 5.0 7 OTD381 651399.8 4766111.0 713.54 1.20 0.03 23 5 1 568 5.0 7 OTD381 651397.7 4766113.0 709.60 1.16 0.06 24 5 1 573 5.0 7 OTD381 651395.6 4766115.5 705.66 1.21 0.07 14 5 1 578 5.0 7 OTD381 651393.4 4766117.5 701.72 1.03 0.10 17 5 1 583 5.0 7 OTD381 651391.4 4766120.0 697.80 1.19 0.10 32 5 1 588 5.0 7 OTD381 651389.3 4766122.0 693.87 1.25 0.13 56 5 1 593 5.0 7 OTD381 651387.3 4766124.5 689.95 1.48 0.21 48 5 1 598 5.0 7 OTD381 651385.1 4766127.0 686.02 1.62 0.11 41 5 1 603 5.0 7 OTD381 651383.1 4766129.0 682.12 1.32 0.09 38 5 1 608 5.0 7 OTD381 651381.1 4766131.5 678.21 1.13 0.08 169 5 1 613 5.0 7 OTD381 651379.0 4766134.0 674.31 1.48 0.07 82 5 1 618 5.0 7 OTD381 651377.0 4766136.0 670.40 0.99 0.06 66 5 1 623 5.0 7 OTD381 651375.0 4766138.5 666.49 1.43 0.10 46 5 1 628 5.0 7 OTD381 651372.9 4766140.5 662.58 0.78 0.06 31 5 1 633 5.0 7 OTD381 651370.9 4766143.0 658.67 1.01 0.06 52 5 1 638 5.0 7 OTD381 651368.8 4766145.5 654.76 1.08 0.10 93 5 1 643 5.0 7 OTD381 651366.8 4766148.0 650.86 0.95 0.08 79 5 1 648 5.0 7 OTD381 651364.8 4766150.5 646.95 0.89 0.08 67 5 1 653 5.0 7 OTD381 651363.1 4766152.5 643.83 1.11 0.05 44 5 14 656 3.0 7 OTD381 651359.4 4766156.5 636.81 0.88 0.04 100 7 14 666 5.0 7 OTD381 651357.4 4766159.0 632.91 0.85 0.03 74 7 14 671 5.0 7 OTD381 651355.4 4766161.5 629.02 1.64 0.07 163 7 14 676 5.0 7 OTD381 651351.3 4766166.0 621.22 0.94 0.05 51 7 14 686 5.0 7 OTD381 651349.3 4766168.5 617.33 0.77 0.05 51 7 14 691 5.0 7 OTD381 651347.3 4766171.0 613.43 0.72 0.07 48 7 14 696 5.0 7 OTD381 651345.1 4766173.0 609.53 0.86 0.09 30 7 14 701 5.0 7 OTD381 651343.1 4766175.5 605.64 1.02 0.05 47 7 14 706 5.0 7 OTD381 651341.1 4766178.0 601.75 0.99 0.05 74 7 14 711 5.0 7 OTD381 651339.0 4766180.5 597.86 1.01 0.08 74 7 14 716 5.0 7 OTD381 651336.9 4766182.5 593.97 1.28 0.12 66 7 1 721 5.0 7 OTD381 651334.9 4766185.0 590.07 1.15 0.15 76 7 1 726 5.0 7 OTD381 651332.9 4766187.5 586.18 0.73 0.09 69 7 1 731 5.0 7 OTD381 651330.8 4766190.0 582.29 0.75 0.09 57 7 1 736 5.0 7 OTD382 651478.2 4765405.5 699.82 0.62 0.03 48 10 7 506 5.0 7 OTD382 651473.3 4765411.0 686.84 0.87 0.02 33 6 7 521 5.0 7 OTD382 651471.7 4765413.0 682.54 0.94 0.01 34 6 7 526 5.0 7 OTD382 651470.1 4765415.0 678.24 0.85 0.02 26 6 7 531 5.0 7 OTD382 651468.4 4765416.5 673.93 0.86 0.01 30 6 7 536 5.0 7 OTD382 651466.8 4765418.5 669.66 0.97 0.01 35 6 7 541 5.0 7 OTD382 651465.1 4765420.5 665.39 0.84 0.01 22 6 7 546 5.0 7 OTD382 651463.4 4765423.0 661.11 0.86 0.02 33 7 1 551 5.0 7 OTD382 651461.8 4765425.0 656.86 1.23 0.03 38 7 1 556 5.0 7 OTD382 651457.6 4765430.0 645.83 1.33 0.02 60 5 1 569 5.0 7 OTD382 651456.0 4765432.0 641.63 1.30 0.03 38 5 1 574 5.0 7 OTD382 651454.3 4765434.5 637.42 1.27 0.03 31 5 1 579 5.0 7 OTD382 651452.6 4765436.5 633.21 1.43 0.03 26 5 1 584 5.0 7 OTD382 651451.0 4765438.5 629.03 1.22 0.02 18 5 1 589 5.0 7 OTD382 651449.3 4765441.0 624.86 1.26 0.02 27 5 1 594 5.0 7 OTD382 651447.6 4765443.0 620.70 1.19 0.03 44 5 1 599 5.0 7 OTD382 651445.8 4765445.5 616.54 1.29 0.02 44 5 1 604 5.0 7 OTD382 651444.1 4765447.5 612.42 0.95 0.02 28 5 1 609 5.0 7 OTD382 651442.3 4765449.5 608.29 1.25 0.03 32 5 1 614 5.0 7 OTD382 651440.5 4765452.0 604.16 1.15 0.03 19 5 1 619 5.0 7 OTD382 651438.8 4765454.0 600.06 1.17 0.03 20 5 1 624 5.0 7 OTD382 651437.1 4765456.5 595.97 1.43 0.04 63 5 1 629 5.0 7 OTD382 651435.3 4765458.5 591.88 1.67 0.04 97 5 1 634 5.0 7 OTD382 651433.6 4765460.5 587.77 1.72 0.04 51 5 1 639 5.0 7 OTD382 651431.9 4765463.0 583.71 1.67 0.06 38 5 1 644 5.0 7 OTD382 651430.2 4765465.5 579.66 1.47 0.06 128 5 1 649 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD382 651428.8 4765467.5 576.41 1.58 0.04 8 5 1 652 3.0 7 OTD382 651427.4 4765469.5 573.16 2.28 0.08 25 2 1 657 5.0 7 OTD382 651425.8 4765472.0 569.13 4.70 0.20 33 2 1 662 5.0 7 OTD382 651424.0 4765474.5 565.11 5.93 0.41 12 2 1 667 5.0 7 OTD382 651422.3 4765477.0 561.09 4.85 0.44 9 2 1 672 5.0 7 OTD382 651420.6 4765479.5 557.06 3.56 0.29 7 2 1 677 5.0 7 OTD382 651418.9 4765481.0 553.06 4.00 0.23 10 2 1 682 5.0 7 OTD382 651417.3 4765483.5 549.09 5.25 0.29 33 2 1 687 5.0 7 OTD382 651415.6 4765486.0 545.12 4.88 0.24 24 2 1 692 5.0 7 OTD382 651413.9 4765488.5 541.15 4.47 0.25 26 2 1 697 5.0 7 OTD382 651412.3 4765491.0 537.17 2.09 0.11 46 2 1 702 5.0 7 OTD382 651410.6 4765493.5 533.26 2.38 0.09 45 2 1 707 5.0 7 OTD382 651409.0 4765496.5 529.35 2.78 0.07 45 2 1 712 5.0 7 OTD382 651407.6 4765498.5 525.83 2.30 0.06 59 2 1 716 4.0 7 OTD382 651406.1 4765501.5 522.31 1.63 0.06 107 5 1 721 5.0 7 OTD382 651402.3 4765507.5 513.80 0.93 0.05 37 7 1 732 5.0 7 OTD382 651398.9 4765512.5 506.11 0.80 0.04 41 7 1 742 5.0 7 OTD382 651397.1 4765515.5 502.28 0.78 0.07 30 7 1 747 5.0 7 OTD382 651395.4 4765518.0 498.45 0.98 0.07 45 7 1 752 5.0 7 OTD382 651393.6 4765520.5 494.65 0.83 0.05 35 7 1 757 5.0 7 OTD382 651389.9 4765525.5 487.09 0.78 0.05 35 7 1 767 5.0 7 OTD382 651388.1 4765528.5 483.31 0.70 0.04 54 7 1 772 5.0 7 OTD382 651376.7 4765545.5 460.14 0.88 0.07 216 7 1 803 5.0 7 OTD382 651374.8 4765548.5 456.48 0.70 0.04 124 7 1 808 5.0 7 OTD382 651372.9 4765551.5 452.81 0.67 0.05 81 7 1 813 5.0 7 OTD382 651369.2 4765557.0 445.51 1.62 0.05 284 7 1 823 5.0 7 OTD382 651367.3 4765560.0 441.89 1.16 0.03 188 7 1 828 5.0 7 OTD382 651363.6 4765565.5 434.66 0.92 0.02 123 7 1 838 5.0 7 OTD382 651358.2 4765575.0 423.96 0.84 0.05 155 7 1 853 5.0 7 OTD382 651356.3 4765578.0 420.43 0.72 0.03 138 7 1 858 5.0 7 OTD382 651354.7 4765580.5 417.26 0.64 0.03 87 7 1 862 4.0 7 OTD382 651346.0 4765595.5 400.15 0.64 0.05 68 10 1 887 5.0 7 OTD385 651324.1 4765500.0 979.80 0.73 0.03 45 6 7 195 5.0 7 OTD385 651322.8 4765501.0 975.09 0.66 0.01 26 6 7 200 5.0 7 OTD385 651321.4 4765502.5 970.38 0.75 0.01 59 6 7 205 5.0 7 OTD385 651320.1 4765503.5 965.66 1.00 0.01 102 6 7 210 5.0 7 OTD385 651318.9 4765504.5 960.95 0.87 0.01 64 6 7 215 5.0 7 OTD385 651317.6 4765506.0 956.24 0.67 0.02 73 6 7 220 5.0 7 OTD385 651316.4 4765507.0 952.00 0.74 0.02 94 6 7 224 4.0 7 OTD385 651315.3 4765508.0 947.76 1.08 0.02 74 4 7 229 5.0 7 OTD385 651314.0 4765509.0 943.04 1.05 0.02 108 4 7 234 5.0 7 OTD385 651312.8 4765510.0 938.34 1.13 0.01 134 4 7 239 5.0 7 OTD385 651311.4 4765511.0 933.63 1.07 0.02 93 4 7 244 5.0 7 OTD385 651310.2 4765512.5 928.92 1.52 0.01 100 4 7 249 5.0 7 OTD385 651308.9 4765513.5 924.21 1.47 0.02 118 4 7 254 5.0 7 OTD385 651307.6 4765514.5 919.51 2.05 0.02 85 4 7 259 5.0 7 OTD385 651306.3 4765515.5 914.81 1.51 0.02 68 4 7 264 5.0 7 OTD385 651305.1 4765517.0 910.10 1.58 0.04 79 4 7 269 5.0 7 OTD385 651303.8 4765518.0 905.40 1.49 0.02 75 4 7 274 5.0 7 OTD385 651302.6 4765519.0 900.70 1.51 0.04 99 4 7 279 5.0 7 OTD385 651301.3 4765520.0 896.00 1.33 0.03 55 4 7 284 5.0 7 OTD385 651300.0 4765521.5 891.30 1.34 0.04 47 4 7 289 5.0 7 OTD385 651298.8 4765522.5 886.61 1.26 0.03 51 4 7 294 5.0 7 OTD385 651297.4 4765523.5 881.91 1.32 0.04 58 4 7 299 5.0 7 OTD385 651296.2 4765524.5 877.22 1.14 0.03 28 4 7 304 5.0 7 OTD385 651294.9 4765525.5 872.53 1.09 0.03 32 4 7 309 5.0 7 OTD385 651283.9 4765536.0 831.25 0.77 0.02 99 4 7 353 5.0 7 OTD385 651282.8 4765537.5 826.56 1.07 0.03 80 4 7 358 5.0 7 OTD385 651281.5 4765538.5 821.87 1.13 0.03 58 4 7 363 5.0 7 OTD385 651280.3 4765539.5 817.18 1.25 0.02 52 4 7 368 5.0 7 OTD385 651279.1 4765541.0 812.49 1.35 0.03 36 4 7 373 5.0 7 OTD385 651277.9 4765542.0 807.79 1.35 0.05 45 4 7 378 5.0 7 OTD385 651276.7 4765543.5 803.10 1.26 0.05 27 4 7 383 5.0 7 OTD385 651275.4 4765545.0 798.41 1.67 0.03 47 4 7 388 5.0 7 OTD385 651274.3 4765546.5 793.72 1.65 0.03 42 4 7 393 5.0 7 OTD385 651273.0 4765547.5 789.02 1.37 0.01 37 4 7 398 5.0 7 OTD385 651271.8 4765548.5 784.33 1.42 0.02 41 4 7 403 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD385 651270.6 4765550.0 779.63 1.27 0.03 34 4 7 408 5.0 7 OTD385 651269.4 4765551.0 774.94 1.37 0.02 96 4 7 413 5.0 7 OTD385 651268.2 4765552.5 770.24 1.21 0.03 31 4 7 418 5.0 7 OTD385 651266.9 4765554.0 765.54 0.98 0.03 44 4 7 423 5.0 7 OTD385 651264.6 4765556.5 756.15 1.70 0.02 56 2 7 433 5.0 7 OTD385 651263.4 4765557.5 751.46 2.05 0.06 43 2 7 438 5.0 7 OTD385 651262.6 4765558.5 748.17 1.01 0.03 17 2 7 440 2.0 7 OTD385 651260.6 4765560.5 740.19 1.05 0.01 28 4 7 450 5.0 7 OTD385 651259.4 4765561.5 735.50 1.39 0.01 52 4 7 455 5.0 7 OTD385 651258.2 4765563.0 730.80 1.19 0.01 36 4 7 460 5.0 7 OTD385 651257.0 4765564.0 726.11 1.52 0.01 56 4 7 465 5.0 7 OTD385 651255.8 4765565.5 721.41 1.22 0.01 43 4 7 470 5.0 7 OTD385 651254.7 4765567.0 716.71 1.30 0.01 136 4 7 475 5.0 7 OTD385 651253.5 4765568.0 712.01 1.36 0.02 138 4 7 480 5.0 7 OTD385 651252.4 4765569.0 707.31 1.65 0.02 61 4 7 485 5.0 7 OTD385 651251.2 4765570.0 702.61 1.13 0.01 31 4 7 490 5.0 7 OTD385 651250.0 4765571.5 697.90 1.25 0.05 27 4 7 495 5.0 7 OTD385 651248.9 4765572.5 693.19 1.46 0.04 59 4 7 500 5.0 7 OTD385 651247.7 4765574.0 688.48 1.08 0.04 232 4 7 505 5.0 7 OTD385 651245.3 4765576.5 679.06 1.15 0.03 56 4 7 515 5.0 7 OTD385 651244.2 4765578.0 674.35 1.30 0.05 70 4 7 520 5.0 7 OTD385 651243.0 4765579.0 669.64 1.11 0.04 74 4 7 525 5.0 7 OTD385 651241.8 4765580.5 664.93 1.25 0.05 124 4 7 530 5.0 7 OTD385 651240.6 4765582.0 660.22 0.97 0.05 92 4 7 535 5.0 7 OTD385 651239.5 4765583.0 655.51 1.17 0.06 69 4 7 540 5.0 7 OTD385 651238.3 4765584.0 650.80 1.52 0.06 99 4 7 545 5.0 7 OTD385 651237.2 4765585.5 646.09 1.41 0.07 122 4 7 550 5.0 7 OTD385 651236.1 4765586.5 641.37 1.16 0.07 140 4 7 555 5.0 7 OTD385 651234.9 4765588.0 636.66 1.31 0.04 73 4 7 560 5.0 7 OTD385 651233.8 4765589.0 631.95 1.19 0.04 127 4 7 565 5.0 7 OTD385 651232.7 4765590.0 627.24 1.49 0.04 45 4 7 570 5.0 7 OTD385 651231.6 4765591.5 622.53 1.22 0.03 65 4 7 575 5.0 7 OTD385 651229.3 4765594.0 613.11 0.79 0.09 99 6 7 584 3.0 7 OTD385 651224.3 4765600.0 590.53 0.63 0.04 106 10 7 609 5.0 7 OTD385 651217.0 4765610.0 557.61 0.66 0.08 76 10 7 644 5.0 7 OTD385 651216.0 4765611.0 552.91 0.62 0.13 96 10 7 649 5.0 7 OTD392 651253.9 4765435.5 986.85 0.75 0.02 68 6 7 189 5.0 7 OTD392 651252.4 4765436.5 982.16 0.75 0.01 89 6 7 194 5.0 7 OTD392 651251.4 4765437.5 978.88 1.37 0.01 36 6 7 196 2.0 7 OTD392 651250.4 4765438.5 975.60 1.37 0.01 33 4 7 201 5.0 7 OTD392 651249.1 4765439.5 970.92 1.19 0.01 40 4 7 206 5.0 7 OTD392 651247.6 4765440.5 966.23 1.23 0.03 51 4 7 211 5.0 7 OTD392 651246.3 4765441.5 961.54 1.33 0.04 51 4 7 216 5.0 7 OTD392 651237.0 4765448.0 930.57 0.60 0.04 24 6 7 249 5.0 7 OTD392 651231.2 4765451.5 911.77 2.45 0.12 13 6 7 269 5.0 7 OTD392 651227.0 4765454.5 897.65 0.68 0.02 45 6 7 284 5.0 7 OTD392 651225.6 4765455.5 892.94 0.69 0.04 47 6 7 289 5.0 7 OTD392 651222.8 4765457.5 883.51 0.75 0.06 81 6 7 299 5.0 7 OTD392 651221.5 4765458.5 878.80 0.64 0.02 97 6 7 304 5.0 7 OTD392 651220.1 4765459.5 874.08 0.90 0.04 84 6 7 309 5.0 7 OTD392 651217.4 4765461.0 864.64 0.86 0.02 43 6 7 319 5.0 7 OTD392 651216.1 4765462.0 859.91 0.64 0.02 55 6 7 324 5.0 7 OTD392 651214.7 4765463.0 855.18 0.93 0.01 41 6 7 329 5.0 7 OTD392 651209.8 4765466.0 838.13 0.61 0.04 83 6 7 347 5.0 7 OTD392 651204.5 4765469.5 819.15 0.81 0.06 28 6 7 367 5.0 7 OTD392 651203.2 4765470.0 814.40 0.66 0.07 28 6 7 372 5.0 7 OTD392 651198.0 4765473.5 795.42 0.82 0.05 68 6 7 392 5.0 7 OTD392 651196.9 4765474.5 791.15 0.66 0.05 60 6 7 396 4.0 7 OTD392 651193.3 4765477.0 777.40 0.60 0.03 30 10 7 411 5.0 7 OTD392 651189.4 4765480.0 763.18 0.64 0.06 57 10 7 426 5.0 7 OTD392 651186.9 4765482.0 753.71 0.70 0.06 116 10 7 436 5.0 7 OTD392 651178.0 4765489.0 720.58 0.82 0.06 303 10 7 471 5.0 7 OTD392 651176.8 4765490.0 715.86 0.80 0.06 149 10 7 476 5.0 7 OTD392 651175.4 4765491.5 711.13 0.69 0.04 168 10 7 481 5.0 7 OTD392 651172.9 4765493.5 701.68 0.65 0.04 298 10 1 491 5.0 7 OTD392 651167.8 4765497.5 682.80 0.64 0.02 107 10 1 511 5.0 7 OTD392 651166.5 4765498.5 678.08 0.79 0.02 125 10 1 516 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD395 651246.1 4765351.0 931.16 0.82 0.01 21 6 7 251 5.0 7 OTD395 651244.6 4765352.5 926.63 0.83 0.02 17 6 7 256 5.0 7 OTD395 651243.2 4765354.0 922.10 0.80 0.01 13 6 7 261 5.0 7 OTD395 651241.8 4765355.5 917.57 0.87 0.01 29 6 7 266 5.0 7 OTD395 651240.3 4765357.0 913.04 1.17 0.01 115 6 7 271 5.0 7 OTD395 651238.8 4765358.5 908.51 0.98 0.01 97 6 7 276 5.0 7 OTD395 651237.4 4765360.0 903.98 0.80 0.02 65 6 7 281 5.0 7 OTD395 651235.9 4765362.0 899.45 0.67 0.01 78 6 7 286 5.0 7 OTD395 651234.5 4765363.5 894.92 0.81 0.02 68 6 7 291 5.0 7 OTD395 651233.1 4765365.0 890.40 1.03 0.02 99 6 7 296 5.0 7 OTD395 651231.6 4765366.5 885.87 0.65 0.03 178 6 7 301 5.0 7 OTD395 651230.1 4765368.0 881.34 0.85 0.02 82 6 7 306 5.0 7 OTD395 651228.6 4765369.5 876.82 0.80 0.02 44 6 7 311 5.0 7 OTD395 651227.1 4765371.0 872.30 0.74 0.02 43 6 7 316 5.0 7 OTD395 651225.7 4765372.5 867.78 0.93 0.05 67 6 7 321 5.0 7 OTD395 651224.1 4765374.0 863.27 0.67 0.11 53 6 7 326 5.0 7 OTD395 651223.1 4765375.0 860.11 0.87 0.02 51 6 7 328 2.0 7 OTD395 651222.0 4765376.0 856.95 1.25 0.02 20 4 7 333 5.0 7 OTD395 651220.4 4765378.0 852.44 0.95 0.02 34 4 7 338 5.0 7 OTD395 651218.8 4765379.5 847.95 1.38 0.04 107 4 7 343 5.0 7 OTD395 651217.1 4765380.5 843.45 1.33 0.02 79 4 7 348 5.0 7 OTD395 651215.7 4765382.0 839.40 0.69 0.01 45 6 7 352 4.0 7 OTD395 651208.1 4765388.5 819.23 0.74 0.03 30 6 7 375 5.0 7 OTD395 651206.4 4765390.0 814.74 0.78 0.02 28 6 7 380 5.0 7 OTD395 651179.9 4765413.0 744.02 0.68 0.04 69 10 7 459 5.0 7 OTD395 651178.3 4765414.5 739.54 0.96 0.05 55 10 7 464 5.0 7 OTD395 651175.1 4765418.0 730.58 0.70 0.05 71 10 7 474 5.0 7 OTD395 651162.1 4765430.0 694.77 0.75 0.05 92 10 7 514 5.0 7 OTD395 651160.5 4765431.5 690.29 0.72 0.04 126 10 7 519 5.0 7 OTD395 651157.9 4765434.0 683.14 1.88 0.19 180 6 7 527 5.0 7 OTD395 651156.3 4765435.5 678.66 2.01 0.28 174 6 7 532 5.0 7 OTD395 651151.4 4765440.5 665.24 0.67 0.03 185 6 7 547 5.0 7 OTD395 651149.8 4765442.0 660.77 0.67 0.04 323 6 7 552 5.0 7 OTD395 651148.4 4765443.5 656.74 0.90 0.04 143 6 7 556 4.0 7 OTD401 651212.4 4765478.0 1023.55 2.42 0.08 12 10 7 151 5.0 7 OTD401 651241.9 4765455.5 926.37 0.77 0.04 22 4 7 255 5.0 7 OTD401 651243.2 4765454.5 921.69 0.69 0.02 46 4 7 260 5.0 7 OTD401 651244.6 4765453.5 917.00 3.70 0.30 10 4 7 265 5.0 7 OTD401 651245.6 4765452.5 913.26 1.25 0.01 15 4 7 268 3.0 7 OTD401 651251.6 4765447.0 892.69 1.03 0.03 124 4 7 291 5.0 7 OTD401 651253.1 4765446.0 888.02 1.68 0.02 38 4 7 296 5.0 7 OTD401 651254.4 4765444.5 883.35 1.43 0.02 21 4 7 301 5.0 7 OTD401 651255.8 4765443.5 878.70 1.12 0.02 49 4 7 306 5.0 7 OTD401 651257.3 4765442.5 874.05 1.51 0.02 39 4 7 311 5.0 7 OTD401 651258.7 4765441.5 869.40 1.41 0.03 73 4 7 316 5.0 7 OTD401 651260.1 4765440.5 864.75 1.12 0.02 52 4 7 321 5.0 7 OTD401 651261.5 4765439.0 860.10 1.08 0.03 52 4 7 326 5.0 7 OTD401 651262.9 4765438.0 855.45 1.01 0.02 35 4 7 331 5.0 7 OTD401 651264.4 4765437.0 850.80 0.93 0.01 59 4 7 336 5.0 7 OTD401 651265.8 4765435.5 846.16 1.27 0.02 54 4 7 341 5.0 7 OTD401 651267.3 4765434.5 841.52 1.07 0.02 50 4 7 346 5.0 7 OTD401 651268.8 4765434.0 836.87 1.15 0.02 73 4 7 351 5.0 7 OTD401 651270.2 4765433.0 832.23 1.39 0.02 46 4 7 356 5.0 7 OTD401 651271.7 4765431.5 827.59 1.60 0.02 28 4 7 361 5.0 7 OTD401 651273.1 4765430.5 822.95 1.50 0.02 18 4 7 366 5.0 7 OTD401 651274.6 4765429.5 818.32 1.89 0.02 41 4 7 371 5.0 7 OTD401 651276.1 4765428.5 813.69 1.63 0.02 48 4 7 376 5.0 7 OTD401 651277.5 4765427.0 809.07 1.84 0.02 25 4 7 381 5.0 7 OTD401 651279.1 4765425.5 804.44 1.40 0.02 20 4 7 386 5.0 7 OTD401 651280.6 4765424.0 799.83 1.74 0.05 48 4 7 391 5.0 7 OTD401 651282.1 4765423.0 795.23 1.40 0.01 21 4 7 396 5.0 7 OTD401 651283.6 4765422.0 790.62 1.30 0.03 33 4 7 401 5.0 7 OTD401 651285.1 4765420.5 786.03 1.16 0.03 87 4 7 406 5.0 7 OTD401 651286.7 4765419.5 781.44 1.16 0.02 86 4 7 411 5.0 7 OTD401 651288.3 4765418.0 776.85 1.45 0.02 21 4 7 416 5.0 7 OTD401 651289.8 4765417.0 772.26 1.25 0.02 31 4 7 421 5.0 7 OTD401 651291.3 4765415.5 767.67 1.33 0.02 57 4 7 426 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD401 651292.9 4765414.5 763.08 1.10 0.01 48 4 7 431 5.0 7 OTD401 651294.5 4765413.0 758.49 1.72 0.02 269 4 7 436 5.0 7 OTD401 651295.9 4765412.0 754.37 1.29 0.01 34 4 7 440 4.0 7 OTD401 651297.3 4765411.0 750.24 2.15 0.02 94 2 7 445 5.0 7 OTD401 651298.9 4765409.5 745.65 1.92 0.02 24 2 7 450 5.0 7 OTD401 651300.4 4765408.5 741.07 1.33 0.03 114 2 7 455 5.0 7 OTD401 651301.7 4765407.5 737.40 1.81 0.03 86 2 7 458 3.0 7 OTD401 651302.9 4765406.5 733.73 1.49 0.03 58 4 7 463 5.0 7 OTD401 651304.5 4765405.0 729.15 1.03 0.02 31 4 7 468 5.0 7 OTD401 651306.0 4765403.5 724.57 1.19 0.03 43 4 7 473 5.0 7 OTD401 651307.6 4765402.5 719.99 1.02 0.02 32 4 7 478 5.0 7 OTD401 651314.9 4765396.0 697.08 0.99 0.02 99 4 7 503 5.0 7 OTD401 651316.3 4765394.5 692.50 2.94 0.08 277 4 7 508 5.0 7 OTD401 651317.8 4765393.0 687.92 1.04 0.02 66 4 7 513 5.0 7 OTD401 651319.1 4765391.5 683.35 0.80 0.02 60 4 7 518 5.0 7 OTD401 651320.5 4765390.0 678.77 0.60 0.04 83 4 7 523 5.0 7 OTD401 651321.9 4765389.0 674.19 0.83 0.02 56 4 7 528 5.0 7 OTD401 651323.3 4765387.5 669.62 0.62 0.03 29 4 7 533 5.0 7 OTD401 651324.6 4765386.0 665.04 1.37 0.01 51 4 7 538 5.0 7 OTD401 651326.0 4765384.5 660.47 1.06 0.01 39 4 7 543 5.0 7 OTD401 651327.4 4765383.5 655.89 1.62 0.03 41 4 7 548 5.0 7 OTD401 651328.8 4765381.5 651.32 1.85 0.02 52 4 7 553 5.0 7 OTD401 651330.2 4765380.0 646.75 1.43 0.04 52 4 7 558 5.0 7 OTD401 651331.6 4765378.5 642.18 1.35 0.03 63 4 7 563 5.0 7 OTD401 651333.0 4765377.0 637.60 0.63 0.02 72 4 7 568 5.0 7 OTD401 651334.4 4765375.5 633.03 0.81 0.04 44 4 7 573 5.0 7 OTD401 651335.8 4765374.5 628.46 1.13 0.05 44 4 7 578 5.0 7 OTD401 651337.3 4765373.0 623.90 1.80 0.05 44 4 7 583 5.0 7 OTD401 651338.6 4765371.5 619.35 1.44 0.07 60 4 7 588 5.0 7 OTD401 651340.1 4765370.0 614.80 12.57 0.24 103 2 7 593 5.0 7 OTD401 651341.5 4765368.5 610.24 12.82 0.33 65 2 7 598 5.0 7 OTD401 651342.9 4765367.0 605.69 10.51 0.23 65 2 7 603 5.0 7 OTD401 651344.4 4765365.5 601.15 2.34 0.06 37 2 7 608 5.0 7 OTD401 651345.9 4765364.0 596.61 2.84 0.05 38 2 7 613 5.0 7 OTD401 651347.4 4765362.0 592.07 3.09 0.08 41 2 7 618 5.0 7 OTD401 651348.8 4765360.5 587.54 3.11 0.12 39 2 7 623 5.0 7 OTD401 651350.3 4765359.0 583.02 3.67 0.15 37 2 7 628 5.0 7 OTD401 651351.7 4765357.5 578.49 3.54 0.06 28 2 7 633 5.0 7 OTD401 651353.1 4765356.0 573.96 2.80 0.03 14 2 7 638 5.0 7 OTD401 651354.4 4765354.5 569.45 1.71 0.03 82 4 7 643 5.0 7 OTD401 651355.8 4765352.5 564.93 1.46 0.22 51 4 7 648 5.0 7 OTD401 651357.2 4765351.5 560.42 0.87 0.02 21 7 1 653 5.0 7 OTD401 651358.6 4765350.0 555.91 1.01 0.02 20 7 1 658 5.0 7 OTD401 651359.9 4765348.0 551.40 1.33 0.03 196 7 1 663 5.0 7 OTD401 651361.2 4765346.5 546.90 0.78 0.02 20 7 1 668 5.0 7 OTD401 651362.6 4765344.5 542.40 1.37 0.03 106 7 1 673 5.0 7 OTD401 651363.9 4765343.0 537.90 0.87 0.02 34 7 1 678 5.0 7 OTD401 651365.3 4765341.5 533.40 0.61 0.02 48 7 1 683 5.0 7 OTD401 651369.6 4765336.0 519.93 0.71 0.04 27 7 1 698 5.0 7 OTD401 651371.0 4765334.5 515.44 1.30 0.04 69 7 1 703 5.0 7 OTD401 651372.4 4765333.0 510.96 1.07 0.04 30 7 1 708 5.0 7 OTD401 651373.9 4765331.0 506.48 0.93 0.05 29 7 1 713 5.0 7 OTD401 651375.3 4765329.0 502.00 1.19 0.04 145 7 1 718 5.0 7 OTD401 651376.7 4765327.5 497.53 0.92 0.02 96 7 1 723 5.0 7 OTD401 651378.1 4765325.5 493.06 0.84 0.02 201 7 1 728 5.0 7 OTD401 651379.6 4765324.0 488.58 0.78 0.03 534 7 1 733 5.0 7 OTD401 651380.9 4765322.5 484.11 0.87 0.03 728 7 1 738 5.0 7 OTD401 651386.4 4765315.5 466.25 0.69 0.02 35 7 1 758 5.0 7 OTD401 651388.7 4765312.0 458.22 2.72 0.09 41 2 1 767 5.0 7 OTD401 651390.0 4765310.0 453.77 5.06 1.11 36 2 1 772 5.0 7 OTD401 651391.3 4765308.5 449.31 3.76 0.77 7 2 1 777 5.0 7 OTD401 651392.6 4765306.5 444.86 6.21 0.95 8 2 1 782 5.0 7 OTD401 651393.8 4765305.0 440.86 3.11 0.09 21 2 1 786 4.0 7 OTD401 651394.9 4765303.5 437.30 1.68 0.05 64 7 1 790 4.0 7 OTD401A 651291.0 4765416.5 768.56 0.79 0.01 40 4 7 425 5.0 7 OTD401A 651292.5 4765415.0 763.96 1.26 0.03 51 4 7 430 5.0 7 OTD401A 651299.1 4765410.5 743.62 2.12 0.04 49 2 7 452 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- ----- ------ ---- OTD401A 651300.7 4765408.5 739.12 1.89 0.03 74 2 7 457 5.0 7 OTD401A 651302.1 4765407.0 735.60 1.63 0.01 78 2 7 460 3.0 7 OTD401A 651303.6 4765406.0 732.09 1.27 0.02 34 4 7 465 5.0 7 OTD401A 651305.4 4765404.5 727.70 1.24 0.02 39 4 7 470 5.0 7 OTD401A 651318.5 4765394.0 698.79 1.45 0.02 279 4 7 503.7 5.0 7 OTD401A 651320.6 4765391.5 694.65 1.30 0.03 110 4 7 508.7 5.0 7 OTD401A 651322.9 4765389.5 690.78 1.60 0.04 63 4 7 513.7 5.0 7 OTD401A 651325.3 4765387.5 686.91 0.68 0.01 11 4 7 518.7 5.0 7 OTD401A 651327.6 4765385.5 683.04 1.58 0.02 33 4 7 523.7 5.0 7 OTD401A 651329.9 4765383.0 679.16 1.47 0.05 15 4 7 528.7 5.0 7 OTD401A 651332.3 4765381.0 675.31 1.83 0.03 51 4 7 533.7 5.0 7 OTD401A 651334.7 4765378.5 671.51 1.30 0.04 44 4 7 538.7 5.0 7 OTD401A 651337.1 4765376.5 667.70 1.68 0.03 41 4 7 543.7 5.0 7 OTD401A 651339.4 4765374.5 663.90 1.24 0.03 53 4 7 548.7 5.0 7 OTD401A 651341.8 4765372.5 660.10 1.15 0.05 70 4 7 553.7 5.0 7 OTD401A 651344.2 4765370.0 656.28 1.24 0.02 25 4 7 558.7 5.0 7 OTD401A 651346.6 4765368.0 652.45 1.31 0.03 32 4 7 563.7 5.0 7 OTD401A 651349.1 4765366.0 648.62 1.22 0.03 22 4 7 568.7 5.0 7 OTD401A 651351.5 4765364.0 644.80 1.82 0.03 38 4 7 573.7 5.0 7 OTD401A 651353.9 4765362.0 640.97 1.40 0.02 9 4 7 578.7 5.0 7 OTD401A 651356.3 4765359.5 637.16 0.76 0.03 24 4 7 583.7 5.0 7 OTD401A 651358.0 4765358.0 634.37 0.81 0.03 22 4 7 586 2.3 7 OTD401A 651359.7 4765356.5 631.58 0.97 0.03 25 6 7 591 5.0 7 OTD401A 651362.1 4765354.0 627.77 0.90 0.03 34 6 7 596 5.0 7 OTD401A 651364.4 4765352.0 623.95 0.87 0.02 35 6 7 601 5.0 7 OTD401A 651366.6 4765350.0 620.15 0.73 0.02 55 6 7 606 5.0 7 OTD401A 651368.7 4765348.0 616.72 0.65 0.02 32 6 7 610 4.0 7 OTD401A 651372.9 4765343.5 609.49 0.76 0.03 134 7 1 620 5.0 7 OTD401A 651375.2 4765341.0 605.68 0.65 0.03 22 7 1 625 5.0 7 OTD401A 651379.7 4765336.5 598.06 0.78 0.03 88 7 1 635 5.0 7 OTD401A 651381.8 4765334.0 594.24 1.11 0.04 81 7 1 640 5.0 7 OTD401A 651384.0 4765331.5 590.42 0.81 0.06 86 7 1 645 5.0 7 OTD401A 651386.2 4765329.0 586.60 0.88 0.06 95 7 1 650 5.0 7 OTD401A 651388.4 4765327.0 582.78 0.71 0.03 155 7 1 655 5.0 7 OTD401A 651405.4 4765307.5 552.23 0.61 0.02 111 10 1 695 5.0 7 OTD401A 651409.6 4765302.5 544.60 0.60 0.01 63 10 1 705 5.0 7 OTD401A 651416.0 4765295.0 533.19 0.70 0.02 241 10 1 720 5.0 7 OTD401A 651422.3 4765287.5 521.76 0.72 0.02 28 10 1 735 5.0 7 OTD401A 651424.4 4765285.0 517.94 0.96 0.02 52 10 1 740 5.0 7 OTD401A 651432.6 4765275.0 502.67 0.63 0.01 114 10 1 760 5.0 7 OTD401B 651295.6 4765413.0 754.79 1.67 0.03 65 4 7 440 5.0 7 OTD401B 651297.2 4765411.5 750.19 1.95 0.05 74 2 7 445 5.0 7 OTD401B 651298.8 4765410.5 745.59 0.90 0.03 105 2 7 450 3.0 7 OTD401B 651322.3 4765395.5 664.09 0.97 0.01 143 4 7 536.4 3.4 7 OTD401B 651323.4 4765395.0 659.25 0.79 0.01 93 4 7 541.4 5.0 7 OTD401B 651324.6 4765394.5 654.40 0.80 0.02 43 4 7 546.4 5.0 7 OTD401B 651325.6 4765394.0 649.55 0.81 0.05 34 4 7 551.4 5.0 7 OTD401B 651326.6 4765393.5 644.66 0.89 0.05 54 4 7 556.4 5.0 7 OTD401B 651327.6 4765393.0 639.77 0.82 0.06 51 4 7 561.4 5.0 7 OTD401B 651332.5 4765391.5 615.34 2.34 0.04 1799 4 7 586.4 5.0 7 OTD401B 651333.6 4765391.0 610.45 1.67 0.02 402 4 7 591.4 5.0 7 OTD401B 651335.6 4765390.5 600.68 0.73 0.02 42 4 7 601.4 5.0 7 OTD401B 651336.6 4765390.0 595.79 0.72 0.02 30 4 7 606.4 5.0 7 OTD401B 651337.6 4765390.0 590.91 1.05 0.03 91 4 7 611.4 5.0 7 OTD401B 651343.8 4765387.5 561.02 1.20 0.04 100 6 7 642 5.0 7 OTD401B 651344.8 4765387.5 556.14 0.68 0.02 49 6 7 647 5.0 7 OTD401B 651345.9 4765386.5 550.27 0.62 0.04 54 7 1 653 4.0 7 OTD401B 651353.8 4765383.0 511.23 0.63 0.05 84 7 1 693 5.0 7 OTD401B 651354.8 4765382.5 506.35 0.96 0.04 195 7 1 698 5.0 7 OTD401B 651355.8 4765382.0 501.47 1.19 0.03 119 7 1 703 5.0 7 OTD401B 651356.8 4765381.5 496.60 1.10 0.03 309 7 1 708 5.0 7 OTD401B 651357.9 4765381.0 491.72 0.71 0.03 280 7 1 713 5.0 7 OTD401B 651358.9 4765381.0 486.85 0.62 0.09 154 7 1 718 5.0 7 OTD401B 651369.8 4765376.0 433.20 0.71 0.03 232 7 1 773 5.0 7 OTD401B 651370.8 4765375.0 428.32 0.81 0.04 286 7 1 778 5.0 7 OTD401B 651374.7 4765373.0 408.82 0.67 0.01 79 7 1 798 5.0 7 OTD401B 651375.8 4765372.5 403.95 0.71 0.01 46 7 1 803 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD401B 651377.8 4765371.5 394.21 0.79 0.04 120 7 1 813 5.0 7 OTD401B 651378.8 4765371.0 389.33 0.82 0.04 144 7 1 818 5.0 7 OTD401B 651379.8 4765370.5 384.47 0.68 0.03 128 7 1 823 5.0 7 OTD401B 651380.8 4765370.0 379.60 0.79 0.02 75 7 1 828 5.0 7 OTD401B 651381.9 4765369.5 374.73 0.85 0.02 94 7 1 833 5.0 7 OTD401B 651382.9 4765369.5 369.86 0.79 0.01 142 7 1 838 5.0 7 OTD401B 651383.9 4765369.0 364.99 0.69 0.01 49 7 1 843 5.0 7 OTD401B 651384.8 4765368.5 361.10 0.95 0.01 67 7 1 846 3.0 7 OTD404 651380.3 4765242.0 755.85 0.95 0.02 355 6 7 435 5.0 7 OTD404 651378.9 4765243.0 751.16 0.65 0.02 278 6 7 440 5.0 7 OTD404 651377.4 4765244.0 746.47 0.99 0.04 71 6 7 445 5.0 7 OTD404 651376.1 4765245.0 741.78 0.97 0.03 310 6 7 450 5.0 7 OTD404 651374.6 4765246.0 737.08 1.04 0.04 88 6 7 455 5.0 7 OTD404 651368.7 4765250.0 717.36 0.73 0.03 47 10 7 476 5.0 7 OTD404 651367.3 4765251.0 712.66 0.72 0.03 26 10 7 481 5.0 7 OTD404 651360.4 4765255.5 689.18 0.89 0.02 68 10 7 506 5.0 7 OTD404 651349.5 4765263.5 652.56 0.66 0.03 43 6 7 545 5.0 7 OTD404 651348.1 4765264.5 647.86 0.86 0.04 81 6 7 550 5.0 7 OTD404 651343.9 4765267.5 633.77 0.65 0.02 42 6 7 565 5.0 7 OTD404 651342.5 4765268.5 629.07 0.64 0.01 40 6 7 570 5.0 7 OTD404 651341.1 4765269.5 624.37 0.61 0.02 41 6 7 575 5.0 7 OTD404 651339.8 4765270.5 619.67 0.88 0.05 51 6 7 580 5.0 7 OTD404 651338.3 4765271.0 614.97 0.68 0.03 61 6 7 585 5.0 7 OTD404 651336.9 4765272.0 610.28 0.62 0.03 63 6 7 590 5.0 7 OTD404 651335.7 4765273.0 606.05 1.02 0.04 163 6 7 594 4.0 7 OTD404 651334.5 4765274.0 601.82 0.68 0.02 78 4 7 599 5.0 7 OTD404 651333.3 4765274.5 598.06 1.72 0.04 81 4 7 602 3.0 7 OTD404 651332.3 4765275.0 594.30 0.96 0.02 56 6 7 607 5.0 7 OTD404 651330.9 4765276.5 589.60 0.81 0.02 34 6 7 612 5.0 7 OTD404 651329.6 4765278.0 584.90 1.06 0.03 136 6 7 617 5.0 7 OTD404 651328.2 4765279.0 580.20 0.84 0.02 36 6 7 622 5.0 7 OTD404 651327.0 4765280.0 575.97 0.95 0.04 78 6 7 626 4.0 7 OTD404 651325.8 4765280.5 571.74 0.72 0.03 31 7 1 631 5.0 7 OTD404 651324.4 4765281.5 567.04 0.67 0.03 14 7 1 636 5.0 7 OTD404 651323.1 4765282.5 562.33 0.93 0.02 41 7 1 641 5.0 7 OTD404 651321.7 4765283.5 557.62 0.61 0.02 33 7 1 646 5.0 7 OTD404 651320.3 4765284.5 552.92 0.83 0.03 38 7 1 651 5.0 7 OTD404 651319.0 4765285.5 548.21 0.84 0.03 12 7 1 656 5.0 7 OTD404 651317.7 4765286.5 543.50 2.96 0.10 37 5 1 661 5.0 7 OTD407 651341.9 4765273.0 784.15 0.82 0.01 99 10 7 428 5.0 7 OTD407 651340.1 4765274.5 779.70 1.23 0.01 152 10 7 433 5.0 7 OTD407 651331.1 4765280.0 758.31 0.82 0.01 38 6 7 457 5.0 7 OTD407 651329.3 4765281.5 753.85 0.96 0.01 30 6 7 462 5.0 7 OTD407 651327.4 4765282.5 749.40 0.71 0.01 117 6 7 467 5.0 7 OTD407 651325.6 4765284.0 744.94 0.75 0.02 74 6 7 472 5.0 7 OTD407 651323.8 4765285.5 740.48 0.75 0.02 43 6 7 477 5.0 7 OTD407 651320.2 4765288.0 731.57 0.73 0.02 47 6 7 487 5.0 7 OTD407 651318.4 4765289.5 727.11 0.65 0.02 42 6 7 492 5.0 7 OTD407 651316.6 4765291.0 722.65 0.68 0.02 68 6 7 497 5.0 7 OTD407 651314.8 4765292.5 718.19 0.92 0.02 90 6 7 502 5.0 7 OTD407 651313.6 4765293.5 715.06 0.95 0.01 52 6 7 504 2.0 7 OTD407 651312.3 4765294.5 711.94 1.07 0.02 34 4 7 509 5.0 7 OTD407 651310.6 4765296.0 707.48 1.01 0.01 25 4 7 514 5.0 7 OTD407 651308.9 4765297.0 703.02 1.14 0.01 10 4 7 519 5.0 7 OTD407 651307.1 4765298.5 698.55 1.06 0.02 15 4 7 524 5.0 7 OTD407 651305.4 4765300.0 694.09 1.32 0.04 16 4 7 529 5.0 7 OTD407 651303.6 4765301.5 689.62 1.34 0.02 13 4 7 534 5.0 7 OTD407 651301.8 4765302.5 685.16 1.27 0.03 13 4 7 539 5.0 7 OTD407 651300.1 4765304.0 680.69 1.33 0.02 41 4 7 544 5.0 7 OTD407 651298.4 4765305.5 676.22 2.02 0.03 30 4 7 549 5.0 7 OTD407 651296.6 4765307.0 671.75 1.24 0.01 21 4 7 554 5.0 7 OTD407 651294.9 4765308.5 667.28 1.29 0.02 27 4 7 559 5.0 7 OTD407 651293.1 4765310.0 662.80 1.12 0.01 21 4 7 564 5.0 7 OTD407 651291.4 4765311.5 658.33 1.35 0.01 32 4 7 569 5.0 7 OTD407 651289.7 4765312.5 653.86 1.21 0.01 33 4 7 574 5.0 7 OTD407 651287.9 4765314.5 649.38 1.26 0.02 18 4 7 579 5.0 7 OTD407 651286.2 4765316.0 644.90 1.39 0.01 28 4 7 584 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD407 651284.5 4765317.0 640.41 1.51 0.03 33 4 7 589 5.0 7 OTD407 651282.8 4765318.5 635.93 1.44 0.03 58 4 7 594 5.0 7 OTD407 651281.1 4765320.0 631.45 1.36 0.02 46 4 7 599 5.0 7 OTD407 651279.4 4765321.0 626.96 1.57 0.06 37 4 7 604 5.0 7 OTD407 651277.7 4765322.5 622.46 0.67 0.04 30 4 7 609 5.0 7 OTD407 651274.3 4765325.5 613.48 1.70 0.05 50 4 7 619 5.0 7 OTD407 651272.6 4765326.5 608.98 1.60 0.04 44 4 7 624 5.0 7 OTD407 651270.9 4765328.0 604.48 0.84 0.02 107 6 7 629 5.0 7 OTD407 651269.2 4765329.5 599.98 0.74 0.01 133 6 7 634 5.0 7 OTD407 651267.5 4765331.0 595.48 0.69 0.01 73 6 7 639 5.0 7 OTD407 651265.8 4765332.0 590.98 0.93 0.01 102 6 7 644 5.0 7 OTD407 651264.2 4765333.5 586.47 0.99 0.01 233 6 7 649 5.0 7 OTD407 651262.5 4765335.0 581.97 0.65 0.03 157 6 7 654 5.0 7 OTD407 651261.0 4765336.0 577.91 0.69 0.02 368 6 7 658 4.0 7 OTD407 651246.3 4765348.0 537.75 0.74 0.05 160 10 7 703 5.0 7 OTD407 651241.2 4765352.5 523.28 0.86 0.01 156 6 7 719 5.0 7 OTD407 651239.6 4765353.5 518.76 0.94 0.01 87 6 7 724 5.0 7 OTD407 651238.4 4765354.5 515.59 0.94 0.01 89 6 7 726 2.0 7 OTD407 651237.3 4765355.5 512.43 0.77 0.01 145 10 7 731 5.0 7 OTD410 651259.1 4765218.0 751.75 0.88 0.02 44 6 7 481 5.0 7 OTD410 651257.4 4765219.5 747.43 1.16 0.03 29 6 7 486 5.0 7 OTD410 651255.7 4765221.5 743.10 1.06 0.01 11 6 7 491 5.0 7 OTD410 651254.0 4765223.0 738.77 0.98 0.02 5 6 7 496 5.0 7 OTD410 651252.3 4765225.5 734.44 1.26 0.02 12 6 7 501 5.0 7 OTD410 651250.6 4765227.0 730.09 0.87 0.02 18 6 7 506 5.0 7 OTD410 651248.8 4765229.0 725.75 0.94 0.01 23 6 7 511 5.0 7 OTD410 651247.1 4765230.5 721.41 0.95 0.03 26 6 7 516 5.0 7 OTD410 651243.7 4765234.0 712.73 0.94 0.03 19 6 7 526 5.0 7 OTD410 651242.5 4765235.5 709.69 1.02 0.03 50 6 7 528 2.0 7 OTD410 651241.3 4765236.5 706.66 0.71 0.05 137 4 7 533 5.0 7 OTD410 651239.7 4765238.5 702.32 0.94 0.02 62 4 7 538 5.0 7 OTD410 651238.6 4765239.5 699.29 1.13 0.02 93 4 7 540 2.0 7 OTD410 651229.6 4765250.5 675.47 0.64 0.01 37 4 7 569 5.0 7 OTD410 651228.1 4765252.0 671.13 1.42 0.02 58 4 7 574 5.0 7 OTD410 651226.5 4765254.0 666.79 1.38 0.02 49 4 7 579 5.0 7 OTD410 651224.9 4765256.0 662.45 1.26 0.04 33 4 7 584 5.0 7 OTD410 651223.4 4765258.0 658.10 1.12 0.01 31 4 7 589 5.0 7 OTD410 651221.8 4765260.0 653.74 1.05 0.01 30 4 7 594 5.0 7 OTD410 651220.3 4765261.5 649.39 1.14 0.01 37 4 7 599 5.0 7 OTD410 651218.7 4765263.5 645.03 1.04 0.01 50 4 7 604 5.0 7 OTD410 651217.1 4765265.5 640.67 1.65 0.03 60 4 7 609 5.0 7 OTD410 651215.9 4765267.0 637.17 1.37 0.02 65 4 7 612 3.0 7 OTD410 651214.7 4765268.5 633.68 1.68 0.03 63 6 7 617 5.0 7 OTD410 651213.1 4765270.5 629.31 1.20 0.01 27 6 7 622 5.0 7 OTD410 651211.6 4765272.0 624.93 0.84 0.01 19 6 7 627 5.0 7 OTD410 651210.1 4765274.0 620.56 1.04 0.01 19 6 7 632 5.0 7 OTD410 651209.1 4765275.5 617.50 0.99 0.02 21 6 7 634 2.0 7 OTD410 651187.6 4765304.5 551.15 0.61 0.05 132 10 7 711 5.0 7 OTD411 651567.3 4766221.5 648.35 1.51 0.06 17 4 7 582 5.0 7 OTD411 651565.7 4766223.0 644.05 0.75 0.01 16 4 7 587 5.0 7 OTD411 651564.0 4766225.0 639.76 1.07 0.01 18 4 7 592 5.0 7 OTD411 651562.3 4766227.0 635.47 1.45 0.03 8 4 7 597 5.0 7 OTD411 651560.6 4766229.0 631.18 1.58 0.04 10 4 7 602 5.0 7 OTD411 651559.4 4766230.5 628.19 0.87 0.02 12 4 7 604 2.0 7 OTD411 651534.3 4766261.0 564.19 0.81 0.15 34 5 1 681 5.0 7 OTD411 651532.6 4766263.5 559.99 1.74 0.08 48 5 1 686 5.0 7 OTD411 651531.0 4766265.5 555.81 1.49 0.08 35 5 1 691 5.0 7 OTD411 651529.4 4766268.0 551.64 1.50 0.12 13 5 1 696 5.0 7 OTD411 651527.8 4766270.0 547.47 1.60 0.11 22 5 1 701 5.0 7 OTD411 651525.8 4766272.5 542.46 0.61 0.03 10 7 1 707 5.0 7 OTD411 651524.1 4766275.0 538.31 0.70 0.08 34 7 1 712 5.0 7 OTD411 651522.5 4766277.0 534.17 1.04 0.04 48 7 1 717 5.0 7 OTD411 651520.9 4766279.5 530.03 1.04 0.08 29 7 1 722 5.0 7 OTD411 651519.3 4766282.0 525.88 0.79 0.06 32 7 1 727 5.0 7 OTD411 651517.8 4766284.5 521.75 1.02 0.04 25 7 1 732 5.0 7 OTD411 651516.1 4766287.0 517.63 1.22 0.15 40 7 1 737 5.0 7 OTD411 651514.4 4766289.0 513.52 0.61 0.05 30 7 1 742 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------- -------- --------- --------- -------- -------- -------- ------ --------- ------ ------ ---- OTD411 651512.8 4766291.5 509.41 0.92 0.09 85 7 1 747 5.0 7 OTD411 651511.2 4766294.0 505.29 0.61 0.05 85 7 1 752 5.0 7 OTD411 651509.6 4766296.5 501.21 1.15 0.04 104 7 14 757 5.0 7 OTD411 651506.8 4766300.5 494.28 1.02 0.09 100 7 14 764 2.0 7 OTD411A 651532.9 4766261.5 562.21 1.44 0.07 30 5 1 683.33 2.3 7 OTD411A 651531.4 4766263.5 558.01 1.80 0.10 80 5 1 688.33 5.0 7 OTD411A 651529.8 4766265.5 553.84 0.99 0.02 10 5 1 693.33 5.0 7 OTD411A 651528.1 4766268.0 549.67 1.49 0.03 13 5 1 698.33 5.0 7 OTD411A 651526.8 4766269.5 546.05 2.12 0.11 26 5 1 702 3.7 7 OTD411A 651523.6 4766274.0 538.29 0.95 0.01 78 7 1 712 5.0 7 OTD411A 651522.0 4766276.0 534.14 1.24 0.03 204 7 1 717 5.0 7 OTD411A 651520.4 4766278.5 530.00 1.03 0.04 24 7 1 722 5.0 7 OTD411A 651518.8 4766281.0 525.85 0.83 0.04 31 7 1 727 5.0 7 OTD411A 651517.3 4766283.5 521.72 0.95 0.05 40 7 1 732 5.0 7 OTD411A 651515.6 4766286.0 517.61 1.24 0.15 56 7 1 737 5.0 7 OTD411A 651509.1 4766295.5 501.19 1.03 0.06 76 7 14 757 5.0 7 OTD411A 651507.4 4766297.5 497.10 0.76 0.10 71 7 14 762 5.0 7 OTD411A 651505.9 4766300.0 493.43 0.75 0.06 61 7 14 766 4.0 7 OTD415 651435.6 4766276.0 783.94 0.97 0.03 17 6 7 402 2.0 7 OTD415 651436.4 4766275.5 780.61 1.07 0.02 16 4 7 407 5.0 7 OTD415 651437.7 4766274.5 775.87 1.31 0.05 9 4 7 412 5.0 7 OTD415 651439.0 4766273.0 771.12 1.89 0.08 16 4 7 417 5.0 7 OTD415 651440.3 4766272.0 766.37 1.48 0.09 47 4 7 422 5.0 7 OTD415 651441.6 4766271.5 761.62 1.55 0.08 36 4 7 427 5.0 7 OTD415 651444.1 4766269.0 752.13 2.23 0.07 5 4 7 437 5.0 7 OTD415 651445.3 4766268.5 747.39 1.65 0.03 9 4 7 442 5.0 7 OTD415 651446.6 4766267.5 742.65 1.61 0.05 5 4 7 447 5.0 7 OTD415 651447.8 4766267.0 737.90 1.64 0.01 5 4 7 452 5.0 7 OTD415 651449.1 4766266.0 733.16 1.85 0.05 5 4 7 457 5.0 7 OTD415 651450.3 4766265.0 728.42 2.09 0.07 5 4 7 462 5.0 7 OTD415 651451.6 4766263.5 723.68 1.19 0.04 18 4 7 467 5.0 7 OTD415 651452.8 4766262.5 718.94 1.37 0.01 17 4 7 472 5.0 7 OTD415 651454.1 4766261.5 714.21 1.70 0.01 13 4 7 477 5.0 7 OTD415 651455.3 4766261.0 709.47 1.71 0.01 15 4 7 482 5.0 7 OTD415 651456.6 4766260.0 704.73 1.78 0.01 24 4 7 487 5.0 7 OTD415 651457.8 4766259.0 700.00 1.15 0.02 24 4 7 492 5.0 7 OTD415 651459.1 4766258.0 695.27 1.19 0.04 11 4 7 497 5.0 7 OTD415 651460.3 4766256.5 690.54 0.99 0.03 9 4 7 502 5.0 7 OTD415 651461.6 4766255.5 685.81 1.20 0.02 19 5 1 507 5.0 7 OTD415 651462.9 4766254.5 681.08 1.80 0.07 63 5 1 512 5.0 7 OTD415 651464.1 4766253.5 676.35 1.49 0.03 5 5 1 517 5.0 7 OTD415 651465.4 4766252.5 671.62 1.17 0.04 5 5 1 522 5.0 7 OTD415 651466.6 4766251.5 666.90 1.37 0.03 11 5 1 527 5.0 7 OTD415 651467.8 4766250.5 662.17 1.31 0.03 9 5 1 532 5.0 7 OTD415 651469.1 4766249.0 657.44 1.27 0.03 5 5 1 537 5.0 7 OTD415 651470.3 4766248.0 652.71 1.30 0.03 5 5 1 542 5.0 7 OTD415 651471.4 4766247.0 648.46 1.34 0.01 18 5 1 546 4.0 7 OTD415 651474.9 4766244.0 634.75 1.08 0.05 7 7 1 561 5.0 7 OTD415 651476.2 4766243.0 630.02 1.04 0.04 7 7 1 566 5.0 7 OTD415 651477.4 4766242.0 625.29 0.61 0.06 5 7 1 571 5.0 7 OTD415 651478.6 4766241.5 620.56 0.77 0.03 9 7 1 576 5.0 7 OTD415 651479.8 4766240.0 615.83 1.15 0.04 7 7 1 581 5.0 7 OTD415 651481.0 4766239.0 611.10 0.77 0.02 19 7 1 586 5.0 7 OTD415 651481.9 4766238.5 607.79 0.77 0.03 5 7 1 588 2.0 7 OTD415 651482.8 4766237.5 604.48 1.40 0.05 11 5 1 593 5.0 7 OTD415 651483.9 4766236.5 599.76 1.42 0.06 13 5 1 598 5.0 7 OTD415 651485.2 4766235.5 595.03 0.65 0.03 6 5 1 603 5.0 7 OTD415 651486.4 4766234.5 590.30 1.55 0.21 72 5 1 608 5.0 7 OTD415 651487.6 4766233.0 585.57 1.03 0.21 178 5 1 613 5.0 7 OTD415 651491.4 4766229.5 570.44 0.62 0.01 71 7 1 629 5.0 7 OTD415 651492.6 4766228.5 565.71 1.76 0.07 195 7 1 634 5.0 7 OTD415 651493.8 4766227.0 560.98 1.73 0.09 73 7 1 639 5.0 7 OTD415 651494.9 4766226.0 556.25 0.67 0.05 47 7 1 644 5.0 7 OTD415 651504.3 4766217.0 518.42 0.70 0.12 87 7 1 684 5.0 7 OTD415 651505.4 4766216.0 513.69 0.93 0.06 113 7 1 689 5.0 7 OTD415 651506.5 4766214.5 509.20 1.41 0.07 132 7 1 693.5 4.5 7 OTD418 651342.9 4766232.5 659.89 0.73 0.05 18 6 7 512 4.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD418 651343.4 4766232.0 655.43 1.28 0.11 22 4 7 517 5.0 7 OTD418 651343.9 4766231.5 650.48 1.11 0.10 16 4 7 522 5.0 7 OTD418 651344.4 4766231.0 645.54 0.81 0.06 24 5 1 527 5.0 7 OTD418 651344.9 4766230.5 640.59 0.98 0.04 33 5 1 532 5.0 7 OTD418 651345.4 4766230.0 635.64 1.32 0.02 51 5 1 537 5.0 7 OTD418 651345.9 4766229.5 630.69 0.80 0.04 51 5 1 542 5.0 7 OTD418 651346.4 4766229.0 625.75 1.31 0.04 53 5 1 547 5.0 7 OTD418 651346.9 4766228.5 620.80 1.33 0.17 62 5 1 552 5.0 7 OTD418 651347.4 4766228.0 615.85 1.31 0.10 135 5 1 557 5.0 7 OTD418 651347.9 4766227.5 610.90 1.25 0.22 60 5 1 562 5.0 7 OTD418 651349.0 4766226.5 601.01 0.72 0.06 53 7 1 572 5.0 7 OTD418 651349.5 4766226.0 596.06 0.84 0.03 54 7 1 577 5.0 7 OTD418 651350.0 4766225.5 591.11 0.87 0.01 104 7 1 582 5.0 7 OTD418 651350.5 4766225.0 586.17 1.07 0.06 60 7 14 587 5.0 7 OTD418 651350.9 4766224.5 581.22 0.77 0.04 50 7 14 592 5.0 7 OTD418 651351.4 4766224.0 576.27 1.18 0.15 94 7 14 597 5.0 7 OTD418 651351.9 4766223.5 571.32 1.06 0.17 74 7 14 602 5.0 7 OTD418 651352.3 4766223.0 566.37 1.04 0.05 76 7 14 607 5.0 7 OTD418 651352.8 4766222.5 561.42 0.87 0.07 85 7 14 612 5.0 7 OTD418 651353.3 4766222.0 556.47 0.98 0.08 89 7 14 617 5.0 7 OTD418 651353.7 4766221.5 551.52 0.89 0.11 162 7 14 622 5.0 7 OTD418 651354.1 4766221.0 546.57 0.84 0.06 134 7 14 627 5.0 7 OTD418 651354.6 4766220.5 541.62 1.05 0.08 159 7 14 632 5.0 7 OTD418 651355.0 4766220.0 536.67 0.69 0.07 132 7 14 637 5.0 7 OTD418 651355.4 4766219.5 532.71 1.03 0.15 180 7 14 640 3.0 7 OTD418 651355.7 4766219.0 528.74 0.96 0.10 126 10 14 645 5.0 7 OTD418 651356.1 4766218.5 523.79 0.94 0.05 63 10 14 650 5.0 7 OTD418 651356.5 4766218.0 518.84 0.72 0.05 112 10 14 655 5.0 7 OTD418 651356.9 4766217.5 513.89 0.71 0.03 114 10 14 660 5.0 7 OTD420 651565.8 4766189.0 694.44 1.15 0.04 9 4 7 499 5.0 7 OTD420 651567.1 4766188.5 689.70 0.66 0.01 8 4 7 504 5.0 7 OTD420 651568.4 4766187.5 684.95 1.17 0.01 6 4 7 509 5.0 7 OTD420 651569.8 4766186.5 680.20 1.42 0.02 10 4 7 514 5.0 7 OTD420 651570.8 4766186.0 676.87 1.34 0.01 30 4 7 516 2.0 7 OTD420 651573.8 4766183.5 665.95 1.16 0.01 5 4 7 529 5.0 7 OTD420 651574.9 4766183.0 662.15 1.10 0.02 5 4 7 532 3.0 7 OTD420 651580.1 4766180.0 643.14 0.95 0.03 18 4 7 553 5.0 7 OTD420 651581.4 4766179.0 638.39 1.13 0.04 27 4 7 558 5.0 7 OTD420 651582.8 4766178.0 633.64 1.18 0.04 42 4 7 563 5.0 7 OTD420 651584.1 4766177.5 628.88 1.36 0.02 42 4 7 568 5.0 7 OTD420 651585.4 4766176.5 624.13 1.04 0.03 27 4 7 573 5.0 7 OTD420 651586.7 4766175.5 619.37 1.35 0.03 30 4 7 578 5.0 7 OTD420 651588.0 4766174.5 614.62 1.28 0.02 27 4 7 583 5.0 7 OTD420 651589.3 4766173.5 609.86 0.74 0.02 25 4 7 588 5.0 7 OTD420 651590.2 4766173.0 606.53 0.90 0.02 39 4 7 590 2.0 7 OTD420 651594.2 4766170.5 591.79 1.91 0.07 5 2 1 607 5.0 7 OTD420 651595.5 4766169.5 587.03 1.73 0.05 7 2 1 612 5.0 7 OTD420 651596.8 4766168.5 582.27 2.45 0.18 15 2 1 617 5.0 7 OTD420 651598.1 4766167.5 577.52 2.61 0.20 21 2 1 622 5.0 7 OTD420 651599.4 4766166.5 572.75 3.69 0.30 35 2 1 627 5.0 7 OTD420 651600.6 4766166.0 567.99 1.41 0.08 20 2 1 632 5.0 7 OTD420 651601.9 4766165.0 563.23 2.16 0.13 118 2 1 637 5.0 7 OTD420 651603.1 4766164.0 558.47 2.46 0.13 50 2 1 642 5.0 7 OTD420 651604.4 4766163.5 553.70 1.60 0.09 50 5 1 647 5.0 7 OTD420 651605.6 4766162.5 548.94 1.37 0.05 39 5 1 652 5.0 7 OTD420 651606.8 4766161.5 544.17 1.12 0.02 28 5 1 657 5.0 7 OTD420 651608.1 4766160.5 539.40 1.15 0.03 26 5 1 662 5.0 7 OTD420 651609.3 4766159.5 534.63 1.17 0.04 44 5 1 667 5.0 7 OTD420 651610.5 4766158.5 529.86 1.04 0.04 41 5 1 672 5.0 7 OTD420 651611.8 4766158.0 525.09 1.35 0.04 51 5 1 677 5.0 7 OTD420 651612.9 4766157.0 520.32 1.29 0.04 63 5 1 682 5.0 7 OTD420 651614.1 4766156.0 515.55 1.26 0.05 117 5 1 687 5.0 7 OTD420 651615.3 4766155.0 510.78 1.41 0.08 77 5 1 692 5.0 7 OTD420 651616.5 4766154.5 506.02 1.15 0.09 64 5 1 697 5.0 7 OTD420 651617.8 4766153.5 501.25 1.42 0.24 136 5 1 702 5.0 7 OTD420 651618.9 4766152.5 496.48 0.80 0.06 98 5 1 707 5.0 7 OTD420 651620.2 4766152.0 491.72 1.12 0.09 88 5 1 712 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD420 651621.4 4766150.5 486.95 0.97 0.08 61 5 1 717 5.0 7 OTD420 651622.6 4766150.0 482.19 1.27 0.08 101 5 1 722 5.0 7 OTD420 651623.8 4766149.0 477.43 1.00 0.11 56 5 1 727 5.0 7 OTD420 651624.8 4766148.0 473.62 1.09 0.52 67 5 1 730 3.0 7 OTD420 651625.8 4766147.5 469.81 0.95 0.35 65 7 1 735 5.0 7 OTD420 651627.0 4766146.5 465.05 0.88 0.04 27 7 1 740 5.0 7 OTD420 651628.2 4766145.5 460.29 0.91 0.05 44 7 1 745 5.0 7 OTD420 651629.4 4766144.5 455.53 0.63 0.03 42 7 1 750 5.0 7 OTD420 651630.6 4766143.5 450.77 0.88 0.03 54 7 1 755 5.0 7 OTD420 651631.8 4766142.5 446.01 0.90 0.04 73 7 1 760 5.0 7 OTD420 651633.0 4766141.5 441.26 0.84 0.07 57 7 1 765 5.0 7 OTD420 651635.4 4766139.5 431.74 0.76 0.34 88 7 1 775 5.0 7 OTD420 651636.3 4766138.5 427.94 0.67 0.24 85 7 1 778 3.0 7 OTD421 651492.8 4766131.5 782.51 0.90 0.07 22 6 7 409 5.0 7 OTD421 651494.3 4766130.5 777.79 1.54 0.14 36 6 7 414 5.0 7 OTD421 651495.7 4766130.0 773.07 1.37 0.03 38 6 7 419 5.0 7 OTD421 651501.1 4766127.0 755.61 0.91 0.01 5 7 1 436 2.0 7 OTD421 651502.1 4766126.5 752.31 1.62 0.15 21 5 1 441 5.0 7 OTD421 651503.5 4766125.5 747.59 1.84 0.08 27 5 1 446 5.0 7 OTD421 651504.9 4766125.0 742.87 1.04 0.04 15 5 1 451 5.0 7 OTD421 651506.4 4766124.0 738.16 1.40 0.03 14 5 1 456 5.0 7 OTD421 651507.9 4766123.0 733.44 1.28 0.04 24 5 1 461 5.0 7 OTD421 651509.3 4766122.5 728.73 1.25 0.05 23 5 1 466 5.0 7 OTD421 651510.7 4766121.5 724.02 1.33 0.06 6 5 1 471 5.0 7 OTD421 651512.1 4766120.5 719.30 1.74 0.09 11 5 1 476 5.0 7 OTD421 651513.6 4766120.0 714.59 1.44 0.06 7 5 1 481 5.0 7 OTD421 651515.1 4766119.0 709.87 1.22 0.03 7 5 1 486 5.0 7 OTD421 651516.5 4766118.0 705.16 1.12 0.05 5 5 1 491 5.0 7 OTD421 651517.9 4766117.0 700.45 1.22 0.03 15 5 1 496 5.0 7 OTD421 651519.4 4766117.0 695.73 1.55 0.06 16 5 1 501 5.0 7 OTD421 651520.9 4766116.0 691.02 1.72 0.06 10 5 1 506 5.0 7 OTD421 651522.3 4766115.0 686.31 1.64 0.06 18 5 1 511 5.0 7 OTD421 651523.8 4766114.5 681.60 1.59 0.05 38 5 1 516 5.0 7 OTD421 651525.2 4766113.5 676.89 1.33 0.05 18 5 1 521 5.0 7 OTD421 651526.6 4766112.5 672.18 1.62 0.05 18 5 1 526 5.0 7 OTD421 651528.1 4766111.5 667.46 2.18 0.05 13 5 1 531 5.0 7 OTD421 651529.5 4766111.5 662.75 2.57 0.04 16 5 1 536 5.0 7 OTD421 651530.9 4766110.5 658.04 1.27 0.05 6 5 1 541 5.0 7 OTD421 651532.4 4766109.5 653.33 1.67 0.11 11 5 1 546 5.0 7 OTD421 651533.8 4766109.0 648.62 1.75 0.11 11 5 1 551 5.0 7 OTD421 651535.3 4766108.0 643.91 1.81 0.07 39 5 1 556 5.0 7 OTD421 651536.7 4766107.0 639.20 1.17 0.06 61 5 1 561 5.0 7 OTD421 651538.1 4766106.0 634.49 1.65 0.10 139 5 1 566 5.0 7 OTD421 651539.6 4766105.5 629.78 1.38 0.09 123 5 1 571 5.0 7 OTD421 651541.0 4766105.0 625.07 1.54 0.07 115 5 1 576 5.0 7 OTD421 651542.4 4766104.0 620.36 1.14 0.07 101 5 1 581 5.0 7 OTD421 651543.8 4766102.5 615.65 1.36 0.09 51 5 1 586 5.0 7 OTD421 651545.2 4766101.5 610.93 1.17 0.10 29 5 1 591 5.0 7 OTD421 651546.6 4766100.5 606.22 1.04 0.07 54 5 1 596 5.0 7 OTD421 651547.8 4766100.0 601.51 1.20 0.05 91 5 1 601 5.0 7 OTD421 651549.1 4766099.0 596.80 1.17 0.13 78 5 1 606 5.0 7 OTD421 651550.4 4766098.0 592.09 0.73 0.05 42 5 1 611 5.0 7 OTD421 651551.8 4766097.0 587.38 0.83 0.07 26 5 1 616 5.0 7 OTD421 651553.1 4766095.5 582.66 1.16 0.07 77 5 1 621 5.0 7 OTD421 651554.4 4766094.5 577.95 1.21 0.08 75 5 1 626 5.0 7 OTD421 651555.6 4766093.5 573.23 1.23 0.10 81 5 1 631 5.0 7 OTD421 651556.9 4766092.0 568.51 1.47 0.16 78 5 1 636 5.0 7 OTD421 651558.1 4766091.0 563.79 1.19 0.31 101 5 1 641 5.0 7 OTD421 651559.3 4766090.0 559.07 1.34 0.18 76 5 1 646 5.0 7 OTD421 651560.6 4766089.0 554.34 1.20 0.05 89 5 1 651 5.0 7 OTD421 651561.8 4766088.0 549.62 1.05 0.08 62 5 1 656 5.0 7 OTD421 651562.9 4766086.5 544.89 0.99 0.10 45 5 1 661 5.0 7 OTD421 651564.1 4766085.5 540.16 0.97 0.05 79 5 1 666 5.0 7 OTD421 651565.3 4766084.5 535.43 0.96 0.03 76 5 1 671 5.0 7 OTD421 651566.3 4766083.5 531.65 1.73 0.06 82 5 1 674 3.0 7 OTD421 651567.2 4766082.5 527.86 0.91 0.05 64 7 1 679 5.0 7 OTD421 651568.4 4766081.5 523.14 0.89 0.03 53 7 1 684 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD421 651569.5 4766080.5 518.41 0.92 0.03 73 7 1 689 5.0 7 OTD421 651570.6 4766079.5 513.68 0.67 0.04 53 7 1 694 5.0 7 OTD421 651571.8 4766078.0 508.95 0.76 0.05 41 7 1 699 5.0 7 OTD421 651574.0 4766076.0 499.49 0.67 0.10 74 7 1 709 5.0 7 OTD421 651575.1 4766075.0 494.76 1.07 0.24 141 7 1 714 5.0 7 OTD421 651576.2 4766074.0 490.03 1.03 0.39 199 7 1 719 5.0 7 OTD421 651577.3 4766072.0 485.31 0.95 0.34 107 7 1 724 5.0 7 OTD421 651578.4 4766071.0 480.59 0.88 0.48 120 7 14 729 5.0 7 OTD421 651579.6 4766070.0 475.87 1.17 0.76 81 7 14 734 5.0 7 OTD421 651580.7 4766068.5 471.15 1.23 0.43 178 7 14 739 5.0 7 OTD421 651581.9 4766067.0 466.43 0.91 0.47 136 7 14 744 5.0 7 OTD421 651583.0 4766065.5 461.72 0.80 0.79 82 7 14 749 5.0 7 OTD421 651584.2 4766064.5 457.01 0.99 0.31 100 7 14 754 5.0 7 OTD421 651585.3 4766063.5 452.30 0.73 0.88 190 7 14 759 5.0 7 OTD421 651586.4 4766062.0 447.59 0.62 1.05 86 7 14 764 5.0 7 OTD421 651588.8 4766059.5 438.18 0.92 0.45 117 7 14 774 5.0 7 OTD421 651589.9 4766058.5 433.48 0.61 1.21 52 7 14 779 5.0 7 OTD421 651591.1 4766057.0 428.78 0.76 0.45 101 7 14 784 5.0 7 OTD421 651592.3 4766056.0 424.09 1.01 0.22 169 7 14 789 5.0 7 OTD421 651593.5 4766054.5 419.39 0.72 0.40 103 7 14 794 5.0 7 OTD421 651595.8 4766052.0 410.01 0.77 0.85 64 7 1 804 5.0 7 OTD421 651597.1 4766050.5 405.33 0.94 2.19 222 7 1 809 5.0 7 OTD421 651598.3 4766049.5 400.64 0.72 1.24 126 7 1 814 5.0 7 OTD421 651599.4 4766048.0 395.96 0.83 0.25 181 7 1 819 5.0 7 OTD421 651600.7 4766047.5 391.28 0.90 0.10 221 7 1 824 5.0 7 OTD421 651601.8 4766046.0 387.07 0.92 0.15 255 7 1 828 4.0 7 OTD421 651602.9 4766045.0 382.87 0.61 0.08 102 10 1 833 5.0 7 OTD421 651605.3 4766042.5 373.52 0.62 0.28 260 10 1 843 5.0 7 OTD421 651620.3 4766026.0 317.69 0.68 0.98 105 10 14 903 5.0 7 OTD423 651491.2 4765513.5 806.24 0.94 0.01 20 10 7 365 5.0 7 OTD423 651482.4 4765522.5 747.63 0.76 0.03 122 10 7 425 5.0 7 OTD423 651481.7 4765523.5 742.75 0.61 0.02 60 10 7 430 5.0 7 OTD423 651481.0 4765524.5 737.86 0.60 0.01 57 10 7 435 5.0 7 OTD423 651478.8 4765526.5 723.20 0.79 0.02 100 6 7 450 5.0 7 OTD423 651478.1 4765527.5 718.80 0.86 0.02 128 6 7 454 4.0 7 OTD423 651477.4 4765528.0 714.41 1.06 0.02 77 4 7 459 5.0 7 OTD423 651476.7 4765529.0 709.52 1.27 0.02 65 4 7 464 5.0 7 OTD423 651475.9 4765529.5 704.63 1.15 0.01 39 4 7 469 5.0 7 OTD423 651475.2 4765530.5 699.75 1.00 0.01 47 4 7 474 5.0 7 OTD423 651474.4 4765531.5 694.87 1.11 0.01 36 4 7 479 5.0 7 OTD423 651473.7 4765532.0 689.98 1.08 0.01 36 4 7 484 5.0 7 OTD423 651472.9 4765533.0 685.10 1.22 0.01 36 4 7 489 5.0 7 OTD423 651472.2 4765534.0 680.22 1.25 0.01 61 4 7 494 5.0 7 OTD423 651471.4 4765534.5 675.34 1.30 0.01 101 4 7 499 5.0 7 OTD423 651470.8 4765535.0 670.46 1.97 0.01 194 4 7 504 5.0 7 OTD423 651470.0 4765536.0 665.59 1.59 0.01 158 4 7 509 5.0 7 OTD423 651469.3 4765536.5 660.71 0.97 0.01 57 4 7 514 5.0 7 OTD423 651468.4 4765537.5 655.84 0.79 0.01 117 4 7 519 5.0 7 OTD423 651467.7 4765538.5 650.96 0.98 0.01 38 4 7 524 5.0 7 OTD423 651466.9 4765539.0 646.09 1.34 0.02 22 4 7 529 5.0 7 OTD423 651466.2 4765540.0 641.21 0.95 0.03 22 4 7 534 5.0 7 OTD423 651465.4 4765541.0 636.34 1.34 0.03 25 4 7 539 5.0 7 OTD423 651464.6 4765542.0 631.46 1.05 0.02 17 4 7 544 5.0 7 OTD423 651462.3 4765544.0 616.84 1.26 0.02 35 4 7 559 5.0 7 OTD423 651461.6 4765545.0 611.97 1.20 0.02 10 4 7 564 5.0 7 OTD423 651460.8 4765545.5 607.10 1.81 0.03 13 4 7 569 5.0 7 OTD423 651460.1 4765546.5 602.23 1.98 0.02 20 4 7 574 5.0 7 OTD423 651459.4 4765547.0 597.85 1.51 0.19 72 4 7 578 4.0 7 OTD423 651458.8 4765548.0 593.46 2.14 0.04 48 2 7 583 5.0 7 OTD423 651458.0 4765548.5 588.59 2.40 0.08 33 2 7 588 5.0 7 OTD423 651457.3 4765549.5 583.73 1.98 0.06 39 2 7 593 5.0 7 OTD423 651456.5 4765550.5 578.86 2.18 0.06 48 2 7 598 5.0 7 OTD423 651455.8 4765551.5 574.00 2.33 0.07 20 2 7 603 5.0 7 OTD423 651455.1 4765552.5 569.13 3.05 0.07 27 2 7 608 5.0 7 OTD423 651454.4 4765553.0 564.27 3.35 0.05 36 2 7 613 5.0 7 OTD423 651453.8 4765554.0 560.38 3.64 0.07 15 2 7 616 3.0 7 OTD423 651453.3 4765554.5 556.49 3.37 0.08 18 2 1 621 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD423 651452.6 4765555.5 551.63 3.70 0.12 23 2 1 626 5.0 7 OTD423 651451.9 4765556.5 546.76 4.76 0.18 10 2 1 631 5.0 7 OTD423 651451.2 4765557.5 541.90 3.76 0.24 5 2 1 636 5.0 7 OTD423 651450.4 4765558.5 537.04 3.60 0.25 29 2 1 641 5.0 7 OTD423 651449.8 4765559.5 532.18 3.10 0.27 30 2 1 646 5.0 7 OTD423 651449.0 4765560.5 527.31 3.01 0.25 41 2 1 651 5.0 7 OTD423 651448.4 4765561.5 523.43 2.52 0.12 41 2 1 654 3.0 7 OTD423 651447.9 4765562.0 519.54 1.44 0.09 23 5 1 659 5.0 7 OTD423 651447.2 4765563.0 514.67 1.37 0.07 15 5 1 664 5.0 7 OTD423 651446.6 4765564.0 509.81 1.23 0.05 18 5 1 669 5.0 7 OTD423 651445.9 4765565.0 504.95 0.85 0.03 13 5 1 674 5.0 7 OTD423 651445.2 4765566.0 500.10 1.46 0.04 40 5 1 679 5.0 7 OTD423 651444.5 4765567.0 495.24 1.76 0.04 126 5 1 684 5.0 7 OTD423 651443.8 4765568.0 490.86 1.38 0.04 140 5 1 688 4.0 7 OTD423 651443.2 4765569.0 486.49 0.98 0.02 28 7 1 693 5.0 7 OTD423 651442.5 4765570.0 481.64 0.90 0.02 39 7 1 698 5.0 7 OTD423 651441.1 4765571.5 471.92 0.80 0.01 28 7 1 708 5.0 7 OTD423 651439.0 4765574.0 457.36 0.62 0.01 38 7 1 723 5.0 7 OTD423 651438.3 4765575.0 452.50 0.86 0.03 42 7 1 728 5.0 7 OTD423 651434.8 4765580.0 428.24 0.67 0.01 54 7 1 753 5.0 7 OTD423 651433.4 4765582.0 418.53 0.63 0.01 82 7 1 763 5.0 7 OTD423 651432.1 4765584.5 408.83 0.76 0.03 48 7 1 773 5.0 7 OTD423 651429.2 4765588.0 389.43 0.69 0.02 51 7 1 793 5.0 7 OTD423 651428.5 4765589.0 384.58 0.67 0.03 88 7 1 798 5.0 7 OTD423 651427.8 4765590.0 379.74 0.65 0.02 72 7 1 803 5.0 7 OTD423 651426.4 4765592.5 370.04 0.84 0.03 137 7 1 813 5.0 7 OTD423 651425.7 4765593.5 365.19 1.10 0.04 175 7 1 818 5.0 7 OTD423 651425.0 4765594.5 360.35 0.65 0.03 117 7 1 823 5.0 7 OTD423 651424.3 4765595.5 355.51 0.78 0.05 327 7 1 828 5.0 7 OTD423 651423.8 4765596.0 352.11 0.93 0.05 160 7 1 830 2.0 7 OTD423 651421.3 4765600.0 334.19 0.60 0.02 184 10 1 850 5.0 7 OTD424 651538.5 4765591.5 671.39 0.82 0.08 63 6 7 525 5.0 7 OTD424 651537.1 4765592.5 666.70 0.69 0.04 44 6 7 530 5.0 7 OTD424 651535.6 4765593.5 662.02 0.72 0.02 40 6 7 535 5.0 7 OTD424 651534.2 4765594.5 657.33 0.68 0.02 29 6 7 540 5.0 7 OTD424 651531.4 4765596.5 647.94 0.77 0.02 25 6 7 550 5.0 7 OTD424 651530.0 4765597.0 643.25 0.88 0.01 48 7 1 555 5.0 7 OTD424 651528.6 4765598.0 638.55 0.90 0.02 43 7 1 560 5.0 7 OTD424 651527.2 4765599.0 633.85 0.68 0.02 31 7 1 565 5.0 7 OTD424 651525.8 4765600.0 629.15 0.70 0.02 40 7 1 570 5.0 7 OTD424 651524.4 4765601.0 624.45 0.90 0.02 37 7 1 575 5.0 7 OTD424 651522.9 4765602.0 619.75 0.98 0.03 49 7 1 580 5.0 7 OTD424 651520.1 4765603.5 610.34 0.68 0.02 48 7 1 590 5.0 7 OTD424 651518.8 4765604.5 605.63 0.93 0.02 45 7 1 595 5.0 7 OTD424 651517.4 4765605.5 600.92 0.88 0.02 30 7 1 600 5.0 7 OTD424 651515.9 4765606.5 596.21 0.71 0.03 26 7 1 605 5.0 7 OTD424 651514.3 4765608.0 590.56 0.94 0.02 38 5 1 611 5.0 7 OTD424 651512.9 4765609.0 585.85 1.17 0.03 31 5 1 616 5.0 7 OTD424 651511.6 4765609.5 581.14 0.83 0.03 52 5 1 621 5.0 7 OTD424 651508.7 4765611.5 571.73 1.22 0.02 16 5 1 631 5.0 7 OTD424 651507.3 4765612.5 567.03 1.21 0.03 22 5 1 636 5.0 7 OTD424 651505.9 4765613.5 562.33 0.81 0.04 18 5 1 641 5.0 7 OTD424 651504.4 4765614.5 557.64 0.98 0.03 18 5 1 646 5.0 7 OTD424 651503.0 4765615.0 552.94 1.19 0.03 17 5 1 651 5.0 7 OTD424 651501.6 4765616.0 548.25 1.11 0.04 19 5 1 656 5.0 7 OTD424 651500.1 4765617.0 543.56 1.17 0.04 28 5 1 661 5.0 7 OTD424 651498.6 4765618.0 538.87 1.16 0.11 27 5 1 666 5.0 7 OTD424 651495.8 4765620.0 529.50 0.61 0.09 27 5 1 676 5.0 7 OTD424 651492.8 4765622.0 520.12 0.65 0.10 6 5 1 686 5.0 7 OTD424 651491.4 4765623.0 515.44 2.23 0.11 11 5 1 691 5.0 7 OTD424 651490.0 4765624.0 510.75 1.68 0.09 5 5 1 696 5.0 7 OTD424 651488.6 4765625.0 506.06 1.81 0.14 7 5 1 701 5.0 7 OTD424 651486.9 4765626.5 500.44 2.79 0.35 5 2 1 707 5.0 7 OTD424 651485.6 4765627.5 495.75 2.99 0.35 8 2 1 712 5.0 7 OTD424 651484.2 4765628.5 491.06 1.61 0.17 14 2 1 717 5.0 7 OTD424 651482.8 4765630.0 486.38 0.96 0.16 17 2 1 722 5.0 7 OTD424 651481.3 4765631.0 481.70 4.59 0.35 12 2 1 727 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD424 651480.2 4765631.5 477.95 3.14 0.25 11 2 1 730 3.0 7 OTD424 651479.5 4765632.0 475.61 3.05 0.28 52 5 1 732 2.0 7 OTD424 651477.0 4765633.5 467.66 0.71 0.04 72 7 1 742 5.0 7 OTD424 651475.6 4765634.5 462.99 0.83 0.07 67 7 1 747 5.0 7 OTD424 651474.1 4765635.5 458.31 0.82 0.02 52 7 1 752 5.0 7 OTD424 651454.7 4765648.0 398.70 0.60 0.02 60 7 1 816 5.0 7 OTD424 651451.6 4765650.0 389.42 0.74 0.02 110 7 1 826 5.0 7 OTD424 651450.1 4765651.0 384.79 0.81 0.02 291 7 1 831 5.0 7 OTD424 651445.3 4765655.0 369.95 0.60 0.02 88 10 1 847 5.0 7 OTD424 651443.8 4765655.5 365.32 0.90 0.04 152 10 1 852 5.0 7 OTD424 651442.3 4765657.0 360.69 0.72 0.03 103 10 1 857 5.0 7 OTD424 651439.4 4765659.5 351.43 0.85 0.04 113 10 1 867 5.0 7 OTD426 651129.1 4766092.0 818.08 0.95 0.18 176 6 7 419 5.0 7 OTD426 651125.5 4766086.5 810.28 0.85 0.09 196 6 7 429 5.0 7 OTD426 651123.8 4766084.0 806.39 1.39 0.18 112 6 7 434 5.0 7 OTD426 651122.0 4766081.5 802.51 0.67 0.08 98 6 7 439 5.0 7 OTD426 651112.9 4766068.0 783.20 0.94 0.05 131 6 7 464 5.0 7 OTD426 651111.1 4766065.5 779.36 0.86 0.05 91 6 7 469 5.0 7 OTD426 651109.2 4766062.5 775.54 1.03 0.08 179 6 7 474 5.0 7 OTD426 651103.4 4766054.5 764.09 0.99 0.11 126 6 7 489 5.0 7 OTD426 651064.5 4766003.5 692.57 0.66 0.09 7 10 7 585 5.0 7 OTD426 651060.3 4765998.0 685.33 0.74 0.11 20 10 7 595 5.0 7 OTD426 651058.1 4765995.5 681.71 0.64 0.10 14 10 7 600 5.0 7 OTD426 651053.8 4765990.5 674.51 1.04 0.21 14 10 7 610 5.0 7 OTD426 651047.2 4765982.0 663.76 1.10 0.18 21 10 7 625 5.0 7 OTD426 651022.6 4765952.5 625.72 1.62 0.55 24 7 1 679 5.0 7 OTD426 651020.3 4765950.0 622.24 2.00 0.72 24 7 1 684 5.0 7 OTD426 651017.9 4765947.0 618.78 1.86 0.54 35 7 1 689 5.0 7 OTD426 651015.6 4765944.5 615.32 1.17 0.31 86 7 1 694 5.0 7 OTD426 651013.3 4765941.5 611.86 1.10 0.24 116 7 1 699 5.0 7 OTD426 651011.3 4765939.0 609.09 0.94 0.24 54 7 1 702 3.0 7 OTD442 651358.0 4765606.5 959.37 0.86 0.02 65 6 7 221 5.0 7 OTD442 651356.2 4765608.0 953.84 1.12 0.01 89 4 7 227 5.0 7 OTD442 651354.6 4765609.0 949.22 1.29 0.01 87 4 7 232 5.0 7 OTD442 651353.1 4765610.5 944.61 1.17 0.01 87 4 7 237 5.0 7 OTD442 651351.6 4765611.5 940.01 0.98 0.01 74 4 7 242 5.0 7 OTD442 651350.0 4765612.5 935.41 1.39 0.01 69 4 7 247 5.0 7 OTD442 651348.5 4765614.0 930.80 1.42 0.01 33 4 7 252 5.0 7 OTD442 651346.9 4765615.0 926.21 1.39 0.04 49 4 7 257 5.0 7 OTD442 651345.4 4765616.0 921.61 1.44 0.03 43 4 7 262 5.0 7 OTD442 651343.8 4765617.5 917.02 1.41 0.03 32 4 7 267 5.0 7 OTD442 651342.3 4765619.0 912.42 1.32 0.03 35 4 7 272 5.0 7 OTD442 651340.6 4765620.5 907.84 1.46 0.03 52 4 7 277 5.0 7 OTD442 651339.1 4765621.5 903.26 1.64 0.03 45 4 7 282 5.0 7 OTD442 651337.4 4765622.5 898.67 1.98 0.02 42 4 7 287 5.0 7 OTD442 651335.9 4765624.0 894.09 1.58 0.04 25 4 7 292 5.0 7 OTD442 651334.3 4765625.0 889.51 1.42 0.07 26 4 7 297 5.0 7 OTD442 651332.7 4765626.5 884.93 1.76 0.04 33 4 7 302 5.0 7 OTD442 651331.1 4765627.5 880.36 1.46 0.06 24 4 7 307 5.0 7 OTD442 651329.5 4765629.0 875.78 1.74 0.04 13 4 7 312 5.0 7 OTD442 651327.9 4765630.0 871.21 1.83 0.02 23 4 7 317 5.0 7 OTD442 651326.4 4765631.0 866.63 1.73 0.05 20 4 7 322 5.0 7 OTD442 651324.8 4765632.5 862.07 1.12 0.10 21 4 7 327 5.0 7 OTD442 651323.2 4765633.5 857.50 1.58 0.04 23 4 7 332 5.0 7 OTD442 651321.6 4765635.0 852.93 1.50 0.05 19 4 7 337 5.0 7 OTD442 651320.0 4765636.5 848.36 1.58 0.05 37 4 7 342 5.0 7 OTD442 651318.4 4765637.5 843.80 1.98 0.05 11 4 7 347 5.0 7 OTD442 651316.8 4765639.0 839.23 1.29 0.04 22 4 7 352 5.0 7 OTD442 651315.3 4765640.5 834.66 1.33 0.05 23 4 7 357 5.0 7 OTD442 651313.6 4765641.5 830.09 1.13 0.07 19 4 7 362 5.0 7 OTD442 651312.1 4765643.0 825.53 1.37 0.06 16 4 7 367 5.0 7 OTD442 651310.4 4765644.0 820.96 1.64 0.07 8 4 7 372 5.0 7 OTD442 651308.8 4765645.5 816.40 1.50 0.03 5 4 7 377 5.0 7 OTD442 651307.2 4765646.5 811.83 1.67 0.04 11 4 7 382 5.0 7 OTD442 651305.6 4765648.0 807.25 1.95 0.05 14 4 7 387 5.0 7 OTD442 651304.1 4765649.0 802.68 1.42 0.05 6 4 7 392 5.0 7 OTD442 651302.4 4765650.5 798.11 1.51 0.04 17 4 7 397 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD442 651300.8 4765651.0 793.54 1.44 0.04 20 4 7 402 5.0 7 OTD442 651299.3 4765652.5 788.97 1.55 0.06 22 4 7 407 5.0 7 OTD442 651297.7 4765653.5 784.39 1.40 0.06 20 4 7 412 5.0 7 OTD442 651296.2 4765655.0 779.82 1.21 0.03 15 4 7 417 5.0 7 OTD442 651294.6 4765656.5 775.25 1.07 0.03 10 4 7 422 5.0 7 OTD442 651293.1 4765657.5 770.67 1.39 0.03 26 4 7 427 5.0 7 OTD442 651291.5 4765659.0 766.10 1.61 0.03 12 4 7 432 5.0 7 OTD442 651289.9 4765660.0 761.53 1.69 0.04 67 4 7 437 5.0 7 OTD442 651288.4 4765661.5 756.96 1.70 0.04 71 4 7 442 5.0 7 OTD442 651286.8 4765662.5 752.39 1.50 0.04 66 4 7 447 5.0 7 OTD442 651285.1 4765664.0 747.82 1.27 0.03 45 4 7 452 5.0 7 OTD442 651283.6 4765665.5 743.26 0.68 0.04 24 4 7 457 5.0 7 OTD442 651282.0 4765666.5 738.69 1.33 0.04 102 4 7 462 5.0 7 OTD442 651277.3 4765670.5 724.99 1.25 0.04 60 4 7 477 5.0 7 OTD442 651275.7 4765671.5 720.43 1.43 0.03 82 4 7 482 5.0 7 OTD442 651274.1 4765672.5 715.87 2.20 0.11 59 4 7 487 5.0 7 OTD442 651272.6 4765674.0 711.30 1.36 0.03 76 4 7 492 5.0 7 OTD442 651271.0 4765675.0 706.74 1.62 0.02 70 4 7 497 5.0 7 OTD442 651269.4 4765676.5 702.18 1.41 0.05 64 4 7 502 5.0 7 OTD442 651267.8 4765677.5 697.62 1.71 0.07 48 4 7 507 5.0 7 OTD442 651266.3 4765679.0 693.06 1.77 0.07 80 4 7 512 5.0 7 OTD442 651264.7 4765680.0 688.50 1.78 0.07 74 4 7 517 5.0 7 OTD442 651263.1 4765681.5 683.94 2.51 0.07 73 4 7 522 5.0 7 OTD442 651261.6 4765683.5 679.37 0.96 0.04 50 4 7 527 5.0 7 OTD442 651260.0 4765684.5 674.81 1.41 0.06 90 4 7 532 5.0 7 OTD442 651258.4 4765686.0 670.25 1.32 0.07 45 4 7 537 5.0 7 OTD442 651256.9 4765687.0 665.69 1.57 0.07 171 4 7 542 5.0 7 OTD442 651255.3 4765688.5 661.13 1.45 0.05 78 4 7 547 5.0 7 OTD442 651253.8 4765690.0 656.58 1.06 0.06 53 4 7 552 5.0 7 OTD442 651252.2 4765691.0 652.02 0.90 0.05 82 4 7 557 5.0 7 OTD442 651250.6 4765692.5 647.46 1.49 0.06 87 4 7 562 5.0 7 OTD442 651249.1 4765694.0 642.90 1.21 0.05 110 4 7 567 5.0 7 OTD442 651247.6 4765695.0 638.34 1.34 0.07 106 4 7 572 5.0 7 OTD442 651246.1 4765696.5 634.24 1.44 0.10 103 4 7 576 4.0 7 OTD442 651244.9 4765697.5 630.60 0.66 0.10 80 6 7 580 4.0 7 OTD442 651243.5 4765699.0 626.50 0.79 0.08 54 7 1 585 5.0 7 OTD442 651241.9 4765700.5 621.95 0.77 0.08 59 7 1 590 5.0 7 OTD442 651240.3 4765701.5 617.40 0.87 0.07 131 7 1 595 5.0 7 OTD442 651238.8 4765703.0 612.85 0.69 0.06 95 7 1 600 5.0 7 OTD442 651237.7 4765704.0 609.66 0.65 0.05 125 7 1 602 2.0 7 OTD442 651231.8 4765709.5 592.84 0.68 0.04 72 10 1 622 5.0 7 OTD442 651225.4 4765714.5 574.68 0.70 0.07 48 10 1 642 5.0 7 OTD443 651407.1 4766178.0 762.85 1.09 0.06 5 4 7 405 5.0 7 OTD443 651407.4 4766178.0 757.87 1.33 0.10 12 4 7 410 5.0 7 OTD443 651407.8 4766178.0 752.88 1.47 0.11 5 4 7 415 5.0 7 OTD443 651408.1 4766177.5 747.90 1.62 0.10 7 4 7 420 5.0 7 OTD443 651408.6 4766177.5 742.91 1.43 0.07 15 4 7 425 5.0 7 OTD443 651408.9 4766177.5 737.93 1.48 0.07 5 4 7 430 5.0 7 OTD443 651409.3 4766177.0 732.95 1.27 0.06 9 4 7 435 5.0 7 OTD443 651409.6 4766177.0 727.96 1.16 0.06 8 4 7 440 5.0 7 OTD443 651410.4 4766176.5 717.99 1.32 0.03 15 4 7 450 5.0 7 OTD443 651411.1 4766177.0 707.03 0.90 0.04 9 5 1 461 5.0 7 OTD443 651411.5 4766176.5 702.04 1.00 0.05 11 5 1 466 5.0 7 OTD443 651411.8 4766176.5 697.06 1.65 0.08 11 5 1 471 5.0 7 OTD443 651412.2 4766176.5 692.08 0.65 0.03 5 5 1 476 5.0 7 OTD443 651412.9 4766176.0 682.11 0.64 0.04 5 5 1 486 5.0 7 OTD443 651413.3 4766176.0 677.13 0.85 0.15 33 5 1 491 5.0 7 OTD443 651413.7 4766175.5 672.14 1.38 0.09 18 5 1 496 5.0 7 OTD443 651414.0 4766175.5 667.16 1.39 0.05 19 5 1 501 5.0 7 OTD443 651414.4 4766175.5 662.17 1.37 0.10 20 5 1 506 5.0 7 OTD443 651414.8 4766175.0 657.19 0.92 0.13 23 5 1 511 5.0 7 OTD443 651415.1 4766175.0 652.21 1.10 0.28 26 5 1 516 5.0 7 OTD443 651415.5 4766175.0 647.22 1.02 0.09 34 5 1 521 5.0 7 OTD443 651415.9 4766175.0 642.24 1.10 0.09 32 5 1 526 5.0 7 OTD443 651416.3 4766175.0 637.26 1.26 0.07 27 5 1 531 5.0 7 OTD443 651416.7 4766174.5 631.28 0.79 0.06 79 7 1 537 5.0 7 OTD443 651417.1 4766174.0 626.29 0.87 0.07 73 7 1 542 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD443 651417.4 4766174.0 621.31 0.98 0.05 34 7 1 547 5.0 7 OTD443 651417.8 4766174.0 616.33 1.31 0.08 111 7 1 552 5.0 7 OTD443 651418.2 4766174.0 611.35 1.47 0.07 150 7 1 557 5.0 7 OTD443 651418.6 4766173.5 606.36 1.25 0.08 127 7 1 562 5.0 7 OTD443 651418.9 4766173.5 601.38 1.13 0.05 50 7 1 567 5.0 7 OTD443 651419.3 4766173.0 596.40 0.94 0.05 91 7 1 572 5.0 7 OTD443 651419.7 4766173.0 591.42 1.11 0.13 45 7 1 577 5.0 7 OTD443 651420.1 4766173.0 586.44 0.79 0.11 54 7 1 582 5.0 7 OTD443 651420.4 4766172.0 581.45 1.06 0.04 36 7 1 587 5.0 7 OTD443 651420.8 4766172.0 576.47 1.23 0.06 67 7 1 592 5.0 7 OTD443 651421.1 4766172.0 572.99 1.20 0.06 23 7 1 594 2.0 7 OTD443 651421.3 4766171.5 570.00 1.30 0.07 33 5 1 598 4.0 7 OTD443 651421.7 4766171.5 565.52 1.05 0.05 50 7 1 603 5.0 7 OTD443 651422.1 4766171.5 560.53 0.95 0.07 84 7 1 608 5.0 7 OTD443 651422.4 4766171.0 555.55 0.88 0.06 84 7 1 613 5.0 7 OTD443 651422.9 4766171.0 550.57 0.66 0.03 40 7 1 618 5.0 7 OTD443 651423.3 4766171.0 545.59 0.69 0.02 50 7 1 623 5.0 7 OTD443 651423.6 4766170.5 540.61 1.07 0.04 116 7 1 628 5.0 7 OTD443 651424.0 4766170.5 535.63 0.95 0.04 132 7 1 633 5.0 7 OTD443 651424.4 4766170.0 530.65 1.05 0.03 59 7 1 638 5.0 7 OTD443 651424.8 4766170.0 525.67 0.93 0.06 100 7 1 643 5.0 7 OTD443 651425.2 4766169.5 520.69 1.12 0.06 82 7 1 648 5.0 7 OTD443 651425.6 4766169.5 515.71 0.83 0.03 123 7 1 653 5.0 7 OTD443 651426.0 4766169.0 510.73 0.95 0.07 139 7 1 658 5.0 7 OTD443 651426.4 4766169.0 505.75 1.10 0.05 170 7 1 663 5.0 7 OTD443 651426.8 4766169.0 500.77 0.93 0.03 128 7 1 668 5.0 7 OTD443 651427.2 4766168.0 495.79 1.51 0.09 235 7 1 673 5.0 7 OTD443 651427.6 4766168.0 490.81 1.54 0.08 293 7 1 678 5.0 7 OTD443 651428.0 4766168.0 485.83 1.25 0.06 347 7 1 683 5.0 7 OTD443 651428.4 4766168.0 480.85 1.24 0.05 289 7 1 688 5.0 7 OTD443 651428.8 4766168.0 475.87 1.31 0.05 305 7 1 693 5.0 7 OTD443 651429.2 4766168.0 470.89 1.34 0.10 243 7 1 698 5.0 7 OTD443 651429.6 4766168.0 465.91 1.38 0.09 388 7 1 703 5.0 7 OTD443 651430.0 4766167.5 460.93 2.50 0.29 618 7 1 708 5.0 7 OTD443 651430.4 4766167.5 455.95 2.04 0.12 400 7 1 713 5.0 7 OTD443 651430.8 4766167.0 450.97 1.50 0.08 104 7 1 718 5.0 7 OTD445 650745.1 4765965.5 1037.52 0.64 0.01 5 10 7 160 5.0 7 OTD445 650756.3 4765965.5 1020.92 0.72 0.02 11 10 7 180 5.0 7 OTD445 650759.1 4765965.5 1016.77 0.64 0.02 5 10 7 185 5.0 7 OTD445 650761.8 4765965.5 1012.61 1.03 0.03 5 10 7 190 5.0 7 OTD445 650772.9 4765965.5 995.97 0.75 0.05 216 10 7 210 5.0 7 OTD445 650789.5 4765965.5 970.94 0.68 0.03 9 10 7 240 5.0 7 OTD445 650797.6 4765965.5 958.39 0.62 0.02 18 10 7 255 5.0 7 OTD445 650822.1 4765965.5 920.57 0.63 0.05 20 10 7 300 5.0 7 OTD445 650824.8 4765965.5 916.35 0.61 0.07 16 10 7 305 5.0 7 OTD445 650965.3 4765960.5 687.02 0.64 0.17 18 10 1 574 5.0 7 OTD445 650976.2 4765959.5 669.10 0.71 0.33 30 7 14 595 5.0 7 OTD445 650978.8 4765959.5 664.83 0.82 0.24 24 7 14 600 5.0 7 OTD445 650981.4 4765959.0 660.56 0.72 0.17 45 7 14 605 5.0 7 OTD445 650983.9 4765959.0 656.29 0.92 0.27 21 7 14 610 5.0 7 OTD445 650986.6 4765958.5 652.02 1.10 0.27 64 7 14 615 5.0 7 OTD445 650989.1 4765958.5 647.76 0.79 0.13 126 7 14 620 5.0 7 OTD445 650990.9 4765958.0 644.77 1.05 0.21 59 7 14 622 2.0 7 OTD445 651004.1 4765956.5 623.00 0.91 0.14 128 7 1 649 5.0 7 OTD445 651006.7 4765956.5 618.73 0.87 0.16 71 7 1 654 5.0 7 OTD445 651009.3 4765956.0 614.46 1.27 0.57 89 7 1 659 5.0 7 OTD445 651017.1 4765955.0 601.66 1.08 0.22 47 7 1 674 5.0 7 OTD445 651019.6 4765954.5 597.39 0.93 0.19 120 7 1 679 5.0 7 OTD445 651022.2 4765954.5 593.12 1.08 0.33 54 7 1 684 5.0 7 OTD445 651024.8 4765954.0 588.85 1.70 0.44 53 7 1 689 5.0 7 OTD445 651027.3 4765953.5 584.59 1.58 0.42 64 7 1 694 5.0 7 OTD445 651029.9 4765953.5 580.32 1.71 0.58 29 7 1 699 5.0 7 OTD445 651032.5 4765953.0 576.05 1.24 0.19 27 7 1 704 5.0 7 OTD445 651035.1 4765952.5 571.78 1.40 0.26 38 7 1 709 5.0 7 OTD445 651037.7 4765952.5 567.52 0.76 0.17 39 7 1 714 5.0 7 OTD445 651039.5 4765952.0 564.53 0.78 0.15 83 7 1 716 2.0 7 OTD445 651059.4 4765949.0 531.73 0.75 0.13 89 10 1 756 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD445 651062.1 4765948.5 527.48 0.79 0.33 84 10 1 761 5.0 7 OTD448 651264.6 4765542.0 1020.37 0.88 0.03 23 6 7 153 5.0 7 OTD448 651260.4 4765545.0 1006.30 0.69 0.04 87 6 7 168 5.0 7 OTD448 651256.1 4765548.0 992.23 1.00 0.04 22 6 7 183 5.0 7 OTD448 651254.8 4765549.0 987.54 0.64 0.03 84 6 7 188 5.0 7 OTD448 651253.3 4765550.0 982.85 0.70 0.03 37 6 7 193 5.0 7 OTD448 651251.9 4765551.0 978.16 0.60 0.03 26 6 7 198 5.0 7 OTD448 651250.6 4765552.0 973.47 0.81 0.03 25 6 7 203 5.0 7 OTD448 651243.6 4765557.0 950.01 0.84 0.03 26 6 7 228 5.0 7 OTD448 651240.8 4765559.0 940.62 0.98 0.03 56 6 7 238 5.0 7 OTD448 651239.4 4765560.0 935.92 0.86 0.03 32 6 7 243 5.0 7 OTD448 651238.1 4765561.0 931.23 1.04 0.02 101 6 7 248 5.0 7 OTD448 651236.6 4765562.5 926.53 0.67 0.19 73 6 7 253 5.0 7 OTD448 651235.3 4765563.5 921.84 0.89 0.04 73 6 7 258 5.0 7 OTD448 651233.9 4765564.5 917.14 0.86 0.03 50 6 7 263 5.0 7 OTD448 651232.3 4765565.5 911.50 0.99 0.03 49 4 7 269 5.0 7 OTD448 651230.9 4765566.5 906.81 1.33 0.06 47 4 7 274 5.0 7 OTD448 651229.5 4765567.5 902.11 1.06 0.07 43 4 7 279 5.0 7 OTD448 651228.1 4765568.5 897.42 0.98 0.04 67 4 7 284 5.0 7 OTD448 651226.8 4765569.5 892.73 1.25 0.04 57 4 7 289 5.0 7 OTD448 651225.4 4765570.5 888.03 1.28 0.05 94 4 7 294 5.0 7 OTD448 651224.0 4765571.5 883.34 1.16 0.07 45 4 7 299 5.0 7 OTD448 651222.6 4765572.5 878.65 1.76 0.19 56 4 7 304 5.0 7 OTD448 651221.3 4765573.5 873.96 1.01 0.05 53 4 7 309 5.0 7 OTD448 651219.9 4765575.0 869.27 1.74 0.09 81 4 7 314 5.0 7 OTD448 651218.5 4765576.0 864.58 1.09 0.05 46 4 7 319 5.0 7 OTD448 651217.4 4765577.0 860.83 1.11 0.12 42 4 7 322 3.0 7 OTD448 651216.3 4765577.5 857.09 0.78 0.04 50 6 7 327 5.0 7 OTD448 651214.9 4765579.0 852.40 0.75 0.02 24 6 7 332 5.0 7 OTD448 651213.6 4765580.0 847.72 1.28 0.03 25 6 7 337 5.0 7 OTD448 651212.1 4765581.0 843.03 0.83 0.04 35 6 7 342 5.0 7 OTD448 651210.8 4765582.0 838.35 0.65 0.02 27 6 7 347 5.0 7 OTD448 651209.3 4765583.0 833.67 1.20 0.04 83 6 7 352 5.0 7 OTD448 651207.9 4765584.5 828.99 0.65 0.02 29 6 7 357 5.0 7 OTD448 651206.6 4765585.0 824.31 0.63 0.02 28 6 7 362 5.0 7 OTD448 651205.2 4765586.0 819.64 0.87 0.04 67 6 7 367 5.0 7 OTD448 651203.8 4765587.5 814.96 0.83 0.04 74 6 7 372 5.0 7 OTD448 651202.4 4765588.5 810.29 0.76 0.09 94 6 7 377 5.0 7 OTD448 651199.6 4765591.0 800.94 1.03 0.08 92 6 7 387 5.0 7 OTD448 651198.1 4765592.0 796.27 0.89 0.03 73 6 7 392 5.0 7 OTD448 651196.8 4765593.0 791.60 0.77 0.02 71 6 7 397 5.0 7 OTD448 651195.3 4765594.0 786.93 0.80 0.04 92 6 7 402 5.0 7 OTD448 651193.9 4765595.0 782.27 0.77 0.04 113 6 7 407 5.0 7 OTD448 651192.4 4765596.0 777.60 1.26 0.06 148 6 7 412 5.0 7 OTD448 651191.1 4765597.5 772.94 1.50 0.07 100 6 7 417 5.0 7 OTD448 651189.7 4765598.5 768.27 0.93 0.18 92 6 7 422 5.0 7 OTD448 651188.3 4765599.5 763.60 0.69 0.01 60 6 7 427 5.0 7 OTD448 651186.9 4765600.5 758.92 0.70 0.02 62 6 7 432 5.0 7 OTD448 651185.4 4765601.5 754.25 0.86 0.03 137 6 7 437 5.0 7 OTD448 651184.1 4765602.5 749.57 0.85 0.04 356 6 7 442 5.0 7 OTD448 651182.7 4765603.5 744.89 0.62 0.02 80 6 7 447 5.0 7 OTD448 651181.3 4765604.5 740.21 0.64 0.01 81 6 7 452 5.0 7 OTD448 651179.9 4765606.0 735.53 0.62 0.03 63 6 7 457 5.0 7 OTD448 651178.6 4765607.0 730.84 1.45 0.04 100 6 7 462 5.0 7 OTD448 651175.5 4765609.5 720.53 1.03 0.05 183 7 1 473 5.0 7 OTD448 651174.2 4765610.5 715.84 0.85 0.05 135 7 1 478 5.0 7 OTD448 651172.8 4765611.5 711.16 0.64 0.05 137 7 1 483 5.0 7 OTD448 651171.5 4765613.0 706.47 1.06 0.08 215 7 1 488 5.0 7 OTD448 651170.1 4765614.0 701.79 0.90 0.06 166 7 1 493 5.0 7 OTD448 651168.8 4765615.0 697.10 0.72 0.02 154 7 1 498 5.0 7 OTD448 651166.1 4765617.5 687.73 0.64 0.08 128 7 1 508 5.0 7 OTD448 651163.4 4765619.0 678.36 0.61 0.04 90 7 1 518 5.0 7 OTD448 651156.9 4765625.0 654.95 1.02 0.08 33 10 1 543 5.0 7 OTD448 651134.4 4765647.5 571.19 0.73 0.07 65 7 1 632 4.0 7 OTD451 651305.5 4765640.5 991.31 0.95 0.04 14 6 7 181 5.0 7 OTD451 651301.1 4765644.0 972.17 0.72 0.01 214 6 7 201 5.0 7 OTD451 651299.8 4765645.0 966.43 1.16 0.01 77 4 7 207 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD451 651298.8 4765646.0 961.64 1.01 0.01 40 4 7 212 5.0 7 OTD451 651297.6 4765647.0 956.86 0.81 0.01 47 4 7 217 5.0 7 OTD451 651296.6 4765648.0 952.07 1.37 0.02 45 4 7 222 5.0 7 OTD451 651295.5 4765648.5 947.28 1.38 0.02 37 4 7 227 5.0 7 OTD451 651294.4 4765649.5 942.50 1.06 0.01 46 4 7 232 5.0 7 OTD451 651293.3 4765650.5 937.73 1.04 0.01 45 4 7 237 5.0 7 OTD451 651292.3 4765651.5 932.95 1.13 0.01 24 4 7 242 5.0 7 OTD451 651291.1 4765652.5 928.17 0.99 0.01 16 4 7 247 5.0 7 OTD451 651290.1 4765654.0 923.40 0.98 0.01 10 4 7 252 5.0 7 OTD451 651289.1 4765655.0 918.63 1.58 0.02 26 4 7 257 5.0 7 OTD451 651287.9 4765656.0 913.86 1.32 0.01 51 4 7 262 5.0 7 OTD451 651287.2 4765656.5 910.52 1.07 0.02 40 4 7 264 2.0 7 OTD451 651286.4 4765657.5 907.18 1.37 0.01 97 5 1 269 5.0 7 OTD451 651285.3 4765658.0 902.41 1.14 0.01 73 5 1 274 5.0 7 OTD451 651284.3 4765659.0 897.64 1.23 0.01 80 5 1 279 5.0 7 OTD451 651283.2 4765660.0 892.87 1.42 0.02 86 5 1 284 5.0 7 OTD451 651282.2 4765662.0 888.11 1.37 0.02 70 5 1 289 5.0 7 OTD451 651281.1 4765663.0 883.34 1.45 0.02 76 5 1 294 5.0 7 OTD451 651280.1 4765664.0 878.57 1.30 0.02 58 5 1 299 5.0 7 OTD451 651279.1 4765665.0 873.80 1.11 0.01 38 5 1 304 5.0 7 OTD451 651277.9 4765666.0 869.03 1.09 0.01 34 5 1 309 5.0 7 OTD451 651276.9 4765667.0 864.26 1.34 0.02 61 5 1 314 5.0 7 OTD451 651275.9 4765668.0 859.49 1.34 0.07 43 5 1 319 5.0 7 OTD451 651274.9 4765669.5 854.73 1.67 0.11 60 5 1 324 5.0 7 OTD451 651273.9 4765671.0 849.96 1.46 0.06 41 5 1 329 5.0 7 OTD451 651272.9 4765672.0 845.19 1.53 0.04 12 5 1 334 5.0 7 OTD451 651271.8 4765673.0 840.43 1.07 0.01 7 5 1 339 5.0 7 OTD451 651270.8 4765674.0 835.66 1.42 0.04 15 5 1 344 5.0 7 OTD451 651269.8 4765675.5 830.90 1.44 0.05 25 5 1 349 5.0 7 OTD451 651268.8 4765676.0 826.14 1.26 0.02 49 5 1 354 5.0 7 OTD451 651267.8 4765677.5 821.38 1.34 0.03 148 5 1 359 5.0 7 OTD451 651266.8 4765678.5 816.62 1.23 0.02 134 5 1 364 5.0 7 OTD451 651265.8 4765680.0 811.86 1.14 0.02 29 5 1 369 5.0 7 OTD451 651264.8 4765681.0 807.11 1.64 0.02 13 5 1 374 5.0 7 OTD451 651263.8 4765682.0 802.35 1.21 0.02 12 5 1 379 5.0 7 OTD451 651262.9 4765683.5 797.59 1.27 0.07 10 5 1 384 5.0 7 OTD451 651261.9 4765684.0 792.84 0.97 0.06 5 5 1 389 5.0 7 OTD451 651260.9 4765685.5 788.08 0.87 0.01 8 5 1 394 5.0 7 OTD451 651259.9 4765686.5 783.33 1.24 0.01 15 5 1 399 5.0 7 OTD451 651258.9 4765688.0 778.57 1.35 0.02 27 5 1 404 5.0 7 OTD451 651257.9 4765689.0 773.82 1.48 0.06 40 5 1 409 5.0 7 OTD451 651256.9 4765690.5 769.07 1.88 0.10 43 5 1 414 5.0 7 OTD451 651256.0 4765691.5 764.32 1.32 0.08 125 5 1 419 5.0 7 OTD451 651255.0 4765692.5 759.57 1.26 0.06 42 5 1 424 5.0 7 OTD451 651254.0 4765694.0 754.82 1.44 0.05 36 5 1 429 5.0 7 OTD451 651253.1 4765695.0 750.08 1.67 0.08 60 5 1 434 5.0 7 OTD451 651252.1 4765696.5 745.33 1.24 0.08 31 5 1 439 5.0 7 OTD451 651251.1 4765697.5 740.59 1.12 0.05 38 5 1 444 5.0 7 OTD451 651250.4 4765698.5 737.27 1.11 0.05 19 5 1 446 2.0 7 OTD451 651249.8 4765700.0 733.94 1.01 0.04 36 7 1 451 5.0 7 OTD451 651248.8 4765701.0 729.20 0.85 0.04 55 7 1 456 5.0 7 OTD451 651247.8 4765702.5 724.47 0.95 0.06 71 7 1 461 5.0 7 OTD451 651246.8 4765703.5 719.73 1.04 0.04 87 7 1 466 5.0 7 OTD451 651245.9 4765705.0 714.99 1.11 0.04 79 7 1 471 5.0 7 OTD451 651244.9 4765706.0 710.25 1.06 0.05 116 7 1 476 5.0 7 OTD451 651242.9 4765708.5 700.77 0.68 0.04 153 7 1 486 5.0 7 OTD451 651242.0 4765710.0 696.04 0.62 0.03 77 7 1 491 5.0 7 OTD451 651241.1 4765711.0 691.30 0.72 0.04 73 7 1 496 5.0 7 OTD451 651240.2 4765712.5 686.56 0.95 0.08 81 7 1 501 5.0 7 OTD451 651239.3 4765713.5 681.83 0.88 0.03 121 7 1 506 5.0 7 OTD451 651238.4 4765714.5 677.09 1.08 0.05 104 7 1 511 5.0 7 OTD451 651237.5 4765716.0 672.36 0.80 0.10 80 7 1 516 5.0 7 OTD451 651236.6 4765717.5 667.62 0.83 0.05 110 7 1 521 5.0 7 OTD451 651234.8 4765720.5 658.16 0.63 0.05 75 7 1 531 5.0 7 OTD451 651233.9 4765722.0 653.43 1.26 0.12 100 7 1 536 5.0 7 OTD451 651220.9 4765744.5 577.78 1.55 0.15 74 10 14 616 5.0 7 OTD452 650828.3 4765987.5 980.59 0.85 0.01 5 10 7 195 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------ -------- --------- --------- -------- -------- -------- ------ --------- --- ------ ---- OTD452 650829.6 4765986.5 975.80 0.67 0.01 9 10 7 200 5.0 7 OTD452 650830.9 4765986.5 971.01 0.67 0.02 5 10 7 205 5.0 7 OTD452 650832.1 4765986.0 966.22 0.66 0.01 31 10 7 210 5.0 7 OTD452 650839.9 4765981.5 937.49 0.90 0.04 27 10 7 240 5.0 7 OTD452 650841.2 4765981.0 932.70 1.25 0.11 14 10 7 245 5.0 7 OTD452 650842.4 4765980.0 927.91 0.91 0.08 9 10 7 250 5.0 7 OTD452 650845.0 4765978.5 918.34 0.71 0.04 7 10 7 260 5.0 7 OTD452 650850.2 4765976.0 899.18 1.02 0.06 8 10 7 280 5.0 7 OTD452 650861.4 4765970.5 856.01 0.68 0.04 36 10 7 325 5.0 7 OTD452 650863.8 4765969.5 846.40 0.78 0.04 32 10 7 335 5.0 7 OTD452 650865.0 4765968.5 841.59 1.11 0.07 71 10 7 340 5.0 7 OTD452 650895.9 4765952.5 716.25 0.61 0.06 9 10 14 470 5.0 7 OTD452 650901.8 4765950.0 692.13 0.86 0.23 18 7 14 495 5.0 7 OTD452 650903.0 4765949.0 687.31 0.84 0.39 10 7 14 500 5.0 7 OTD452 650904.2 4765948.5 682.49 0.73 0.58 10 7 14 505 5.0 7 OTD452 650905.4 4765948.0 677.66 0.72 0.54 9 7 14 510 5.0 7 OTD452 650906.6 4765947.5 672.84 1.28 1.43 11 7 14 515 5.0 7 OTD452 650907.8 4765947.0 668.02 1.11 1.23 18 7 14 520 5.0 7 OTD452 650908.9 4765946.0 663.20 0.97 0.58 23 7 14 525 5.0 7 OTD452 650915.7 4765943.0 636.20 0.78 0.06 19 7 14 553 5.0 7 OTD452 650918.0 4765941.5 626.56 0.79 0.35 25 7 14 563 5.0 7 OTD452 650919.2 4765941.0 621.74 0.73 0.26 46 7 14 568 5.0 7 OTD452 650921.6 4765940.0 612.10 0.93 0.40 38 7 14 578 5.0 7 OTD452 650922.8 4765939.5 607.28 1.09 0.65 45 7 14 583 5.0 7 OTD452 650923.9 4765938.5 602.45 1.32 0.73 38 7 14 588 5.0 7 OTD452 650925.1 4765938.0 597.63 1.05 0.44 36 7 14 593 5.0 7 OTD452 650926.3 4765937.5 592.81 0.94 0.30 44 7 14 598 5.0 7 OTD452 650927.5 4765937.0 587.99 1.14 0.30 48 7 14 603 5.0 7 OTD452 650928.8 4765936.0 583.17 0.63 0.12 61 7 14 608 5.0 7 OTD452 650931.1 4765935.0 573.53 0.81 0.20 43 7 14 618 5.0 7 OTD452 650933.5 4765934.0 563.89 0.84 0.11 70 7 14 628 5.0 7 OTD452 650934.6 4765933.5 559.55 0.65 0.08 30 7 14 632 4.0 7 OTD452 650944.8 4765927.0 517.62 0.61 0.18 38 10 14 676 5.0 7 OTD452 650945.9 4765926.5 512.80 0.72 0.12 24 10 14 681 5.0 7 OTD452 650955.3 4765921.0 474.25 0.84 0.09 31 10 14 721 5.0 7 OTD452 650965.7 4765915.5 430.87 0.62 0.09 28 10 14 766 5.0 7 OTD452 650967.9 4765914.0 421.23 0.62 0.17 27 10 14 776 5.0 7 OTD452 650970.2 4765912.5 411.59 0.69 0.20 32 10 14 786 5.0 7 OTD452 650972.4 4765911.0 401.95 0.64 0.07 31 10 14 796 5.0 7 OTD458 651766.8 4766047.0 371.05 0.81 0.06 31 6 7 801 5.0 7 OTD458 651764.6 4766049.0 352.80 0.99 0.03 87 6 7 818 2.0 7 OTD458 651764.3 4766049.5 349.35 0.64 0.06 25 7 1 823 5.0 7 OTD458 651763.7 4766050.0 344.41 0.89 0.10 30 7 1 828 5.0 7 OTD458 651763.3 4766050.5 340.96 0.74 0.08 5 7 1 830 2.0 7 OTD458 651756.9 4766057.5 282.25 0.64 0.01 34 10 1 891 5.0 7 OTD458 651756.3 4766058.0 277.31 0.65 0.03 34 10 1 896 5.0 7 OTD458 651751.6 4766064.0 232.90 0.81 0.03 74 10 14 941 5.0 7 OTD458 651751.1 4766064.5 227.96 0.70 0.03 50 10 14 946 5.0 7 OTD458 651748.9 4766067.0 208.22 0.81 0.03 150 10 14 966 5.0 7 OTD458A 651755.0 4766053.0 630.75 1.24 0.03 53 4 7 549 5.0 7 OTD458A 651754.1 4766053.5 625.90 1.66 0.02 41 4 7 554 5.0 7 OTD458A 651753.1 4766054.5 621.05 0.73 0.02 49 4 7 559 5.0 7 OTD458A 651752.2 4766055.5 616.20 0.62 0.01 19 4 7 564 5.0 7 OTD458A 651751.6 4766056.0 612.80 0.63 0.02 5 4 7 566 2.0 7 OTD458A 651750.9 4766056.5 609.40 1.77 0.06 5 5 1 571 5.0 7 OTD458A 651750.0 4766057.5 604.55 1.40 0.04 10 5 1 576 5.0 7 OTD458A 651749.1 4766058.0 599.70 1.31 0.03 16 5 1 581 5.0 7 OTD458A 651748.2 4766059.0 594.85 0.84 0.03 7 5 1 586 5.0 7 OTD458A 651747.3 4766059.5 589.99 1.52 0.06 20 5 1 591 5.0 7 OTD458A 651746.4 4766060.5 585.14 0.90 0.04 11 5 1 596 5.0 7 OTD458A 651745.5 4766061.5 580.29 1.25 0.03 5 5 1 601 5.0 7 OTD458A 651744.6 4766062.0 575.43 1.11 0.04 11 5 1 606 5.0 7 OTD458A 651743.7 4766063.0 570.58 1.64 0.04 14 5 1 611 5.0 7 OTD458A 651742.8 4766064.0 565.72 0.86 0.01 5 5 1 616 5.0 7 OTD458A 651741.9 4766064.5 560.87 1.61 0.04 13 5 1 621 5.0 7 OTD458A 651740.9 4766065.0 556.02 1.77 0.03 12 5 1 626 5.0 7 OTD458A 651740.1 4766066.0 551.16 1.28 0.03 6 5 1 631 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD458A 651739.2 4766067.0 546.31 1.14 0.03 33 5 1 636 5.0 7 OTD458A 651738.4 4766067.5 541.94 1.50 0.04 16 5 1 640 4.0 7 OTD458A 651737.6 4766068.5 537.57 2.46 0.03 52 2 1 645 5.0 7 OTD458A 651736.8 4766069.0 532.72 2.41 0.06 42 2 1 650 5.0 7 OTD458A 651735.9 4766069.5 527.86 2.14 0.05 20 2 1 655 5.0 7 OTD458A 651735.1 4766070.5 523.01 2.32 0.05 23 2 1 660 5.0 7 OTD458A 651734.3 4766071.5 518.15 2.17 0.07 30 2 1 665 5.0 7 OTD458A 651733.4 4766072.0 513.30 2.16 0.15 15 2 1 670 5.0 7 OTD458A 651732.5 4766073.0 508.44 3.08 0.42 34 2 1 675 5.0 7 OTD458A 651731.7 4766074.0 503.59 5.55 1.11 31 2 1 680 5.0 7 OTD458A 651730.8 4766075.0 498.74 4.39 0.64 60 2 1 685 5.0 7 OTD458A 651729.8 4766076.0 492.91 1.10 0.15 86 5 1 691 5.0 7 OTD458A 651728.9 4766077.0 488.06 1.19 0.13 130 5 1 696 5.0 7 OTD458A 651728.1 4766077.0 483.21 1.50 0.16 74 5 1 701 5.0 7 OTD458A 651727.3 4766078.0 478.36 1.08 0.10 69 2 1 706 5.0 7 OTD458A 651726.4 4766079.0 473.50 1.89 0.30 98 2 1 711 5.0 7 OTD458A 651725.6 4766079.5 468.65 2.02 0.44 88 2 1 716 5.0 7 OTD458A 651724.6 4766080.5 463.80 2.97 0.49 153 2 1 721 5.0 7 OTD458A 651723.8 4766081.5 458.95 2.78 0.47 67 2 1 726 5.0 7 OTD458A 651722.9 4766082.0 454.09 2.46 0.31 49 2 1 731 5.0 7 OTD458A 651722.2 4766083.0 449.24 3.14 0.30 132 2 1 736 5.0 7 OTD458A 651721.4 4766084.0 444.38 1.51 0.16 25 5 1 741 5.0 7 OTD458A 651720.5 4766084.5 439.53 1.27 0.11 46 5 1 746 5.0 7 OTD458A 651719.8 4766085.5 435.16 1.10 0.06 57 5 1 750 4.0 7 OTD458A 651719.1 4766086.0 430.79 0.89 0.09 50 7 1 755 5.0 7 OTD458A 651718.3 4766087.0 425.93 0.72 0.08 23 7 1 760 5.0 7 OTD458A 651717.4 4766088.0 421.07 0.68 0.04 59 7 1 765 5.0 7 OTD458A 651716.6 4766088.5 416.21 0.74 0.07 35 7 1 770 5.0 7 OTD458A 651715.8 4766089.5 411.35 0.72 0.05 24 7 1 775 5.0 7 OTD458A 651715.1 4766090.0 407.46 0.99 0.08 27 7 1 778 3.0 7 OTD458A 651709.6 4766096.0 374.39 0.61 0.04 81 10 1 813 5.0 7 OTD458A 651705.0 4766101.0 345.20 0.69 0.03 91 10 1 843 5.0 7 OTD458A 651702.9 4766103.5 331.67 0.69 0.04 88 10 14 855.8 2.8 7 OTD460 651543.0 4765837.0 658.40 0.97 0.01 54 6 7 532 2.0 7 OTD460 651542.2 4765838.0 655.08 1.00 0.01 38 4 7 537 5.0 7 OTD460 651541.0 4765839.0 650.33 1.09 0.01 42 4 7 542 5.0 7 OTD460 651539.8 4765840.0 645.59 1.04 0.01 80 4 7 547 5.0 7 OTD460 651538.6 4765841.5 640.84 1.22 0.01 76 4 7 552 5.0 7 OTD460 651537.6 4765842.5 636.57 1.71 0.03 27 4 7 556 4.0 7 OTD460 651536.6 4765843.5 632.30 0.76 0.01 9 5 1 561 5.0 7 OTD460 651535.4 4765844.5 627.55 1.04 0.02 32 5 1 566 5.0 7 OTD460 651534.3 4765845.5 622.80 1.40 0.05 20 5 1 571 5.0 7 OTD460 651533.2 4765846.5 618.05 1.89 0.06 38 5 1 576 5.0 7 OTD460 651532.0 4765848.0 613.30 2.07 0.07 30 5 1 581 5.0 7 OTD460 651530.9 4765848.5 608.55 1.37 0.03 55 5 1 586 5.0 7 OTD460 651529.8 4765850.0 603.80 1.52 0.03 97 5 1 591 5.0 7 OTD460 651528.8 4765851.0 599.05 1.38 0.04 38 5 1 596 5.0 7 OTD460 651527.6 4765852.0 594.30 1.24 0.06 17 5 1 601 5.0 7 OTD460 651526.3 4765853.5 588.59 1.99 0.10 12 2 1 607 5.0 7 OTD460 651525.2 4765854.5 583.84 1.90 0.11 9 2 1 612 5.0 7 OTD460 651524.1 4765856.0 579.09 1.99 0.10 20 2 1 617 5.0 7 OTD460 651523.0 4765857.0 574.34 1.81 0.12 24 2 1 622 5.0 7 OTD460 651521.9 4765858.0 569.59 2.84 0.16 60 2 1 627 5.0 7 OTD460 651520.8 4765859.0 564.85 2.60 0.21 56 2 1 632 5.0 7 OTD460 651519.8 4765860.5 560.10 2.15 0.17 36 2 1 637 5.0 7 OTD460 651518.7 4765861.5 555.36 2.34 0.17 28 2 1 642 5.0 7 OTD460 651517.6 4765862.5 550.63 1.80 0.20 76 2 1 647 5.0 7 OTD460 651516.5 4765864.0 545.89 0.73 0.14 190 2 1 652 5.0 7 OTD460 651515.4 4765865.0 541.16 2.39 0.26 36 2 1 657 5.0 7 OTD460 651514.6 4765866.0 537.37 2.77 0.25 28 2 1 660 3.0 7 OTD460 651513.8 4765867.0 533.58 1.96 0.16 91 5 1 665 5.0 7 OTD460 651512.8 4765868.0 528.85 1.49 0.08 59 5 1 670 5.0 7 OTD460 651511.7 4765869.5 524.13 1.21 0.10 81 5 1 675 5.0 7 OTD460 651510.6 4765870.5 519.40 1.17 0.08 167 5 1 680 5.0 7 OTD460 651509.6 4765872.0 514.67 0.96 0.09 47 5 1 685 5.0 7 OTD460 651508.4 4765873.0 509.96 1.21 0.11 19 5 1 690 5.0 7 OTD460 651507.4 4765874.5 505.24 1.06 0.08 26 5 1 695 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD460 651506.4 4765875.5 501.46 1.40 0.09 57 5 1 698 3.0 7 OTD460 651505.6 4765876.5 497.69 0.83 0.07 20 7 1 703 5.0 7 OTD460 651504.5 4765877.5 492.97 0.97 0.07 45 7 1 708 5.0 7 OTD460 651503.4 4765879.0 488.26 1.07 0.07 40 7 1 713 5.0 7 OTD460 651502.3 4765880.0 483.54 1.10 0.06 65 7 1 718 5.0 7 OTD460 651498.8 4765884.0 469.44 0.87 0.02 46 7 1 733 5.0 7 OTD460 651497.6 4765885.0 464.74 0.89 0.01 80 7 1 738 5.0 7 OTD460 651496.4 4765886.5 460.05 0.83 0.04 42 7 1 743 5.0 7 OTD460 651492.9 4765890.5 445.99 0.65 0.04 32 7 1 758 5.0 7 OTD460 651491.8 4765891.5 441.31 0.63 0.01 20 7 1 763 5.0 7 OTD460 651490.6 4765893.0 436.63 1.08 0.04 57 7 1 768 5.0 7 OTD460 651489.4 4765894.5 431.96 0.90 0.05 47 7 1 773 5.0 7 OTD460 651488.4 4765895.5 428.23 0.92 0.04 66 7 1 776 3.0 7 OTD460 651484.0 4765901.0 410.51 0.61 0.08 142 10 1 796 5.0 7 OTD460 651482.8 4765902.0 405.85 0.89 0.07 216 10 1 801 5.0 7 OTD460 651481.7 4765903.5 401.20 0.79 0.12 178 10 1 806 5.0 7 OTD461 651856.6 4766173.0 560.57 0.90 0.04 61 6 7 667 5.0 7 OTD461 651855.2 4766174.5 556.08 0.85 0.05 83 6 7 672 5.0 7 OTD461 651851.1 4766180.0 542.59 0.86 0.04 34 6 7 687 5.0 7 OTD461 651849.7 4766181.5 538.10 0.80 0.04 39 6 7 692 5.0 7 OTD461 651848.3 4766183.5 533.61 0.77 0.03 61 6 7 697 5.0 7 OTD461 651846.9 4766185.0 529.12 1.09 0.05 30 6 7 702 5.0 7 OTD461 651845.6 4766186.5 524.64 1.05 0.01 29 6 7 707 5.0 7 OTD461 651844.2 4766188.5 520.15 0.96 0.01 36 6 7 712 5.0 7 OTD461 651842.8 4766190.0 515.66 0.97 0.01 73 6 7 717 5.0 7 OTD461 651841.7 4766191.0 512.07 0.93 0.01 78 6 7 720 3.0 7 OTD461 651840.6 4766192.5 508.49 0.97 0.01 41 4 7 725 5.0 7 OTD461 651839.3 4766194.5 504.00 1.10 0.01 38 4 7 730 5.0 7 OTD461 651837.9 4766195.5 499.51 1.34 0.01 115 4 7 735 5.0 7 OTD461 651836.6 4766197.5 495.03 1.41 0.01 45 4 7 740 5.0 7 OTD461 651835.2 4766199.0 490.55 1.20 0.01 40 4 7 745 5.0 7 OTD461 651833.8 4766201.0 486.06 1.59 0.01 37 4 7 750 5.0 7 OTD461 651832.5 4766202.5 482.03 1.46 0.02 170 4 7 754 4.0 7 OTD461 651831.3 4766204.0 478.00 1.00 0.03 53 5 1 759 5.0 7 OTD461 651829.8 4766206.0 473.51 0.89 0.03 45 5 1 764 5.0 7 OTD461 651828.5 4766207.5 469.03 0.92 0.03 28 5 1 769 5.0 7 OTD461 651827.1 4766209.5 464.55 0.86 0.02 43 5 1 774 5.0 7 OTD461 651825.7 4766211.0 460.07 0.94 0.02 33 5 1 779 5.0 7 OTD461 651824.3 4766212.5 455.58 1.16 0.02 41 5 1 784 5.0 7 OTD461 651822.9 4766214.5 451.10 1.05 0.06 12 5 1 789 5.0 7 OTD461 651821.6 4766216.5 446.62 1.51 0.08 5 5 1 794 5.0 7 OTD461 651820.1 4766218.0 442.14 1.45 0.12 5 5 1 799 5.0 7 OTD461 651818.8 4766219.5 437.65 1.86 0.16 18 5 1 804 5.0 7 OTD461 651817.3 4766221.5 433.17 1.75 0.16 49 5 1 809 5.0 7 OTD461 651815.9 4766223.0 428.68 1.52 0.14 63 5 1 814 5.0 7 OTD461 651814.5 4766224.5 424.20 1.23 0.03 82 5 14 819 5.0 7 OTD461 651813.1 4766226.5 419.72 1.29 0.04 78 5 14 824 5.0 7 OTD461 651811.7 4766228.0 415.24 1.17 0.07 55 5 14 829 5.0 7 OTD461 651810.0 4766230.0 409.87 0.85 0.06 55 7 14 835 5.0 7 OTD461 651808.6 4766232.0 405.39 0.74 0.08 57 7 14 840 5.0 7 OTD461 651807.2 4766234.0 400.92 0.91 0.04 71 7 14 845 5.0 7 OTD461 651805.8 4766235.5 396.45 0.86 0.03 54 7 14 850 5.0 7 OTD461 651804.4 4766237.5 391.98 1.01 0.09 74 7 14 855 5.0 7 OTD461 651800.1 4766242.5 378.57 0.75 0.08 47 7 14 870 5.0 7 OTD461 651798.8 4766244.5 374.11 0.73 0.17 37 7 14 875 5.0 7 OTD461 651797.3 4766246.0 369.64 0.68 0.06 32 7 14 880 5.0 7 OTD461 651796.0 4766248.0 365.18 1.00 0.06 39 7 14 885 5.0 7 OTD461 651794.6 4766250.0 360.72 0.89 0.14 32 7 14 890 5.0 7 OTD461 651793.2 4766251.5 356.25 1.06 0.12 53 7 14 895 5.0 7 OTD461 651791.8 4766253.5 351.79 0.76 0.14 35 7 14 900 5.0 7 OTD461 651790.4 4766255.5 347.33 0.68 0.24 58 7 14 905 5.0 7 OTD461 651789.0 4766257.0 342.87 0.62 0.18 37 7 14 910 5.0 7 OTD461 651787.6 4766259.0 338.41 0.64 0.14 42 7 14 915 5.0 7 OTD461 651784.8 4766262.5 329.49 0.89 0.10 61 7 14 925 5.0 7 OTD469 651891.2 4766134.0 440.23 0.81 0.01 14 6 7 812 5.0 7 OTD469 651887.7 4766137.0 431.43 0.75 0.03 24 6 7 822 5.0 7 OTD469 651886.0 4766138.5 427.02 0.66 0.03 43 6 7 827 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD469 651884.2 4766140.0 422.65 1.01 0.02 52 6 7 832 5.0 7 OTD469 651882.4 4766141.5 418.28 1.04 0.02 50 6 7 837 5.0 7 OTD469 651880.6 4766143.0 413.91 0.89 0.02 52 6 7 842 5.0 7 OTD469 651878.9 4766145.0 409.54 1.22 0.02 31 6 7 847 5.0 7 OTD469 651877.1 4766146.5 405.17 1.07 0.02 46 6 7 852 5.0 7 OTD469 651875.8 4766148.0 402.13 0.87 0.02 23 6 7 854 2.0 7 OTD469 651874.5 4766149.0 399.09 0.87 0.02 16 7 1 859 5.0 7 OTD469 651872.7 4766150.5 394.75 0.90 0.02 29 7 1 864 5.0 7 OTD469 651870.9 4766152.5 390.41 0.91 0.03 29 7 1 869 5.0 7 OTD469 651869.0 4766154.0 386.09 1.01 0.04 30 7 1 874 5.0 7 OTD469 651867.2 4766156.0 381.77 0.86 0.04 29 7 1 879 5.0 7 OTD469 651865.3 4766157.5 377.45 0.81 0.05 48 7 1 884 5.0 7 OTD469 651863.5 4766159.5 373.13 0.97 0.07 18 7 1 889 5.0 7 OTD469 651861.7 4766161.0 368.83 1.26 0.08 24 7 1 894 5.0 7 OTD469 651859.8 4766163.0 364.53 0.95 0.02 53 7 14 899 5.0 7 OTD469 651857.9 4766165.0 360.22 1.07 0.01 52 7 14 904 5.0 7 OTD469 651856.1 4766166.5 355.94 1.04 0.04 43 7 14 909 5.0 7 OTD469 651854.2 4766168.5 351.65 0.87 0.01 50 7 14 914 5.0 7 OTD469 651852.4 4766170.0 347.36 0.84 0.04 103 7 14 919 5.0 7 OTD469 651850.5 4766171.5 343.08 1.17 0.12 117 7 14 924 5.0 7 OTD469 651848.8 4766173.5 338.74 0.80 0.25 79 7 14 929 5.0 7 OTD469 651847.0 4766175.0 334.40 0.88 0.46 98 7 14 934 5.0 7 OTD469 651845.2 4766177.0 330.06 0.85 0.10 75 7 14 939 5.0 7 OTD469 651843.4 4766178.5 325.73 0.71 0.05 71 7 14 944 5.0 7 OTD469 651841.8 4766180.5 321.36 0.61 0.12 94 7 14 949 5.0 7 OTD469 651836.8 4766185.5 308.18 0.73 0.16 63 7 14 964 5.0 7 OTD469 651835.1 4766187.0 303.77 0.85 0.14 65 7 14 969 5.0 7 OTD469 651830.4 4766192.5 290.44 0.87 0.19 138 7 14 984 5.0 7 OTD469 651828.8 4766194.0 286.06 0.98 0.27 91 7 14 989 5.0 7 OTD469 651827.1 4766195.5 281.74 1.20 0.16 94 7 14 994 5.0 7 OTD469 651825.4 4766197.5 277.42 0.91 0.24 36 7 14 999 5.0 7 OTD469 651823.7 4766199.5 273.11 0.93 0.48 52 7 14 1004 5.0 7 OTD469 651822.0 4766201.5 268.80 0.85 0.63 41 7 14 1009 5.0 7 OTD469 651820.1 4766203.5 264.62 0.82 0.36 83 7 14 1014 5.0 7 OTD469 651818.3 4766205.5 260.44 1.03 0.45 25 7 14 1019 5.0 7 OTD469 651816.5 4766207.5 256.26 0.82 0.47 37 7 14 1024 5.0 7 OTD469 651814.6 4766209.5 252.08 0.67 0.19 47 7 14 1029 5.0 7 OTD469 651812.8 4766211.5 247.91 0.87 0.27 43 7 14 1034 5.0 7 OTD469 651811.6 4766213.0 244.99 1.26 0.33 58 7 14 1036 2.0 7 OTD469 651805.9 4766219.5 232.06 0.98 0.58 15 7 14 1053 5.0 7 OTD469 651804.1 4766221.5 227.90 0.66 0.19 119 7 14 1058 5.0 7 OTD469 651800.5 4766226.0 219.58 0.65 0.36 17 7 14 1068 5.0 7 OTD469 651798.7 4766228.0 215.42 0.82 0.23 21 7 14 1073 5.0 7 OTD469 651796.9 4766230.5 211.26 1.06 0.28 44 7 14 1078 5.0 7 OTD469 651795.1 4766232.5 207.09 0.69 0.12 23 7 14 1083 5.0 7 OTD469 651793.4 4766234.5 202.92 0.62 0.20 19 7 14 1088 5.0 7 OTD469 651789.8 4766239.0 194.58 0.63 0.20 32 7 14 1098 5.0 7 OTD469 651788.0 4766240.5 190.41 0.86 0.34 13 7 14 1103 5.0 7 OTD469 651780.9 4766249.0 173.67 0.78 0.51 55 7 14 1123 5.0 7 OTD469 651777.9 4766252.5 166.54 0.71 0.43 49 7 14 1130 2.0 7 OTD470 651192.9 4765593.5 1056.70 0.73 0.03 11 10 7 120 5.0 7 OTD470 651206.6 4765585.5 1025.44 0.86 0.02 25 10 7 155 5.0 7 OTD470 651221.8 4765577.0 991.62 0.92 0.02 20 6 7 193 5.0 7 OTD470 651223.8 4765576.0 987.18 0.78 0.01 42 6 7 198 5.0 7 OTD470 651225.8 4765575.0 982.74 0.79 0.02 377 6 7 203 5.0 7 OTD470 651227.8 4765574.0 978.31 0.64 0.01 465 6 7 208 5.0 7 OTD470 651231.8 4765571.5 969.45 0.82 0.01 81 6 7 218 5.0 7 OTD470 651233.9 4765570.0 965.03 0.79 0.03 230 6 7 223 5.0 7 OTD470 651235.9 4765569.0 960.61 1.51 0.04 93 6 7 228 5.0 7 OTD470 651237.9 4765568.0 956.19 0.81 0.02 41 6 7 233 5.0 7 OTD470 651240.0 4765567.0 951.78 0.77 0.01 90 6 7 238 5.0 7 OTD470 651242.1 4765566.0 947.37 0.65 0.01 112 6 7 243 5.0 7 OTD470 651244.1 4765565.0 942.96 0.72 0.01 67 6 7 248 5.0 7 OTD470 651246.2 4765564.0 938.56 0.80 0.03 44 6 7 253 5.0 7 OTD470 651248.3 4765563.0 934.16 0.89 0.01 136 6 7 258 5.0 7 OTD470 651250.4 4765561.5 929.76 0.97 0.03 127 6 7 263 5.0 7 OTD470 651252.9 4765560.0 924.48 1.31 0.01 121 4 7 269 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD470 651255.0 4765559.0 920.09 1.38 0.03 62 4 7 274 5.0 7 OTD470 651257.1 4765558.0 915.70 1.03 0.04 115 4 7 279 5.0 7 OTD470 651259.2 4765557.0 911.31 0.85 0.03 121 4 7 284 5.0 7 OTD470 651261.3 4765556.0 906.93 0.98 0.03 108 4 7 289 5.0 7 OTD470 651263.4 4765554.5 902.55 0.99 0.05 98 4 7 294 5.0 7 OTD470 651267.8 4765552.5 893.80 0.86 0.02 55 4 7 304 5.0 7 OTD470 651269.9 4765551.5 889.43 0.79 0.01 46 4 7 309 5.0 7 OTD470 651272.0 4765550.5 885.06 1.16 0.03 52 4 7 314 5.0 7 OTD470 651274.1 4765549.5 880.70 0.85 0.05 26 4 7 319 5.0 7 OTD470 651276.3 4765548.5 876.34 1.20 0.05 51 4 7 324 5.0 7 OTD470 651278.4 4765547.0 871.99 0.62 0.02 64 4 7 329 5.0 7 OTD470 651280.6 4765546.0 867.63 1.11 0.02 50 4 7 334 5.0 7 OTD470 651282.7 4765544.5 863.29 1.59 0.03 35 4 7 339 5.0 7 OTD470 651284.9 4765543.5 858.95 1.65 0.03 57 4 7 344 5.0 7 OTD470 651302.9 4765533.5 823.45 1.15 0.01 12 4 7 385 5.0 7 OTD470 651305.1 4765532.5 819.13 1.34 0.01 31 4 7 390 5.0 7 OTD470 651307.3 4765531.0 814.81 1.48 0.01 79 4 7 395 5.0 7 OTD470 651309.4 4765530.0 810.49 1.02 0.01 26 4 7 400 5.0 7 OTD470 651311.6 4765528.0 806.16 1.29 0.02 20 4 7 405 5.0 7 OTD470 651313.8 4765527.0 801.84 1.14 0.05 51 4 7 410 5.0 7 OTD470 651315.9 4765525.5 797.52 0.70 0.01 33 4 7 415 5.0 7 OTD470 651318.1 4765524.5 793.20 1.52 0.02 59 4 7 420 5.0 7 OTD470 651320.3 4765523.5 788.88 1.37 0.01 29 4 7 425 5.0 7 OTD470 651322.5 4765522.0 784.56 1.91 0.02 27 4 7 430 5.0 7 OTD470 651324.7 4765521.0 780.24 1.63 0.05 31 4 7 435 5.0 7 OTD470 651326.9 4765519.5 775.92 1.57 0.03 21 4 7 440 5.0 7 OTD470 651329.1 4765518.0 771.59 2.01 0.03 99 4 7 445 5.0 7 OTD470 651331.3 4765517.0 767.27 2.02 0.01 43 4 7 450 5.0 7 OTD470 651333.4 4765516.0 762.95 1.77 0.02 29 4 7 455 5.0 7 OTD470 651335.2 4765515.0 759.49 1.74 0.03 30 2 7 458 3.0 7 OTD470 651336.9 4765514.0 756.03 2.65 0.04 23 2 7 463 5.0 7 OTD470 651339.1 4765512.5 751.71 3.40 0.09 28 2 7 468 5.0 7 OTD470 651341.3 4765511.5 747.38 2.51 0.08 51 2 7 473 5.0 7 OTD470 651343.6 4765510.0 743.06 2.89 0.09 27 2 7 478 5.0 7 OTD470 651345.8 4765509.0 738.74 3.04 0.15 25 2 7 483 5.0 7 OTD470 651347.9 4765507.5 734.42 2.76 0.12 42 2 7 488 5.0 7 OTD470 651350.1 4765506.5 730.10 2.97 0.14 40 2 7 493 5.0 7 OTD470 651352.3 4765505.0 725.78 2.97 0.16 43 2 7 498 5.0 7 OTD470 651354.5 4765504.0 721.46 3.94 1.35 66 2 7 503 5.0 7 OTD470 651356.6 4765503.0 717.14 2.10 0.24 133 2 7 508 5.0 7 OTD470 651358.8 4765501.5 712.83 1.44 0.14 84 2 7 513 5.0 7 OTD470 651361.1 4765500.5 708.51 1.43 0.14 225 2 7 518 5.0 7 OTD470 651363.3 4765499.0 704.20 2.81 0.20 58 2 7 523 5.0 7 OTD470 651365.4 4765498.0 699.88 2.90 0.23 82 2 7 528 5.0 7 OTD470 651367.7 4765496.0 695.57 2.51 0.17 75 2 7 533 5.0 7 OTD470 651369.9 4765495.0 691.26 3.12 0.09 79 2 7 538 5.0 7 OTD470 651372.1 4765493.5 686.95 2.04 0.07 25 2 7 543 5.0 7 OTD470 651374.8 4765492.0 681.78 1.72 0.05 41 4 7 549 5.0 7 OTD470 651376.9 4765491.0 677.47 1.56 0.04 56 4 7 554 5.0 7 OTD470 651379.1 4765490.0 673.17 1.50 0.03 79 4 7 559 5.0 7 OTD470 651381.3 4765488.5 668.86 1.62 0.05 116 4 7 564 5.0 7 OTD470 651383.4 4765487.5 664.56 1.36 0.03 26 4 7 569 5.0 7 OTD470 651385.7 4765486.0 660.26 1.27 0.03 27 4 7 574 5.0 7 OTD470 651387.9 4765485.0 655.96 0.88 0.02 25 4 7 579 5.0 7 OTD470 651390.1 4765483.5 651.66 0.68 0.02 19 4 7 584 5.0 7 OTD470 651396.7 4765480.0 638.76 1.38 0.02 35 4 7 599 5.0 7 OTD470 651398.9 4765478.5 634.46 1.04 0.01 47 4 7 604 5.0 7 OTD470 651401.1 4765477.5 630.16 1.20 0.02 37 4 7 609 5.0 7 OTD470 651403.3 4765476.0 625.86 1.62 0.03 43 4 7 614 5.0 7 OTD470 651405.4 4765475.0 621.56 1.23 0.02 46 4 7 619 5.0 7 OTD470 651407.6 4765473.5 617.26 1.39 0.03 53 4 7 624 5.0 7 OTD470 651409.8 4765472.5 612.95 2.59 0.03 131 4 7 629 5.0 7 OTD470 651412.1 4765471.0 608.65 3.52 0.02 138 4 7 634 5.0 7 OTD470 651414.3 4765469.5 604.35 3.28 0.05 73 4 7 639 5.0 7 OTD470 651416.5 4765468.5 600.04 2.17 0.04 45 4 7 644 5.0 7 OTD470 651418.7 4765467.0 595.74 2.30 0.02 63 4 7 649 5.0 7 OTD470 651420.9 4765466.0 591.44 3.07 0.06 58 4 7 654 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD470 651423.1 4765464.5 587.13 2.19 0.05 66 4 7 659 5.0 7 OTD470 651425.8 4765463.0 581.96 1.28 0.02 34 5 1 665 5.0 7 OTD470 651428.0 4765462.0 577.66 2.06 0.04 40 5 1 670 5.0 7 OTD470 651429.5 4765461.0 574.65 1.28 0.01 28 5 1 672 2.0 7 OTD470 651431.1 4765460.0 571.64 1.44 0.03 11 2 1 677 5.0 7 OTD470 651433.3 4765459.0 567.35 2.52 0.08 18 2 1 682 5.0 7 OTD470 651435.5 4765458.0 563.05 1.99 0.02 15 2 1 687 5.0 7 OTD470 651437.8 4765456.5 558.76 1.58 0.02 64 2 1 692 5.0 7 OTD470 651440.0 4765455.5 554.47 1.96 0.02 19 2 1 697 5.0 7 OTD470 651442.3 4765454.5 550.19 1.34 0.03 14 2 1 702 5.0 7 OTD470 651444.5 4765453.0 545.91 1.27 0.04 28 5 1 707 5.0 7 OTD470 651446.8 4765451.5 541.63 1.35 0.02 69 5 1 712 5.0 7 OTD470 651449.1 4765450.5 537.35 1.65 0.04 7 5 1 717 5.0 7 OTD470 651451.3 4765449.0 533.07 3.01 0.13 5 5 1 722 5.0 7 OTD470 651453.5 4765448.0 528.79 4.60 0.08 7 5 1 727 5.0 7 OTD470 651455.8 4765446.5 524.51 2.02 0.11 9 5 1 732 5.0 7 OTD470 651457.9 4765445.5 520.23 3.20 0.15 8 5 1 737 5.0 7 OTD470 651460.2 4765444.0 515.95 2.94 0.14 5 5 1 742 5.0 7 OTD470 651462.4 4765443.0 511.67 2.09 0.09 60 5 1 747 5.0 7 OTD470 651464.6 4765441.5 507.39 1.43 0.06 11 5 1 752 5.0 7 OTD470 651466.8 4765440.0 503.11 1.62 0.07 33 5 1 757 5.0 7 OTD470 651468.9 4765438.5 498.83 1.64 0.09 54 5 1 762 5.0 7 OTD470 651471.1 4765436.5 494.55 1.41 0.09 14 5 1 767 5.0 7 OTD470 651473.4 4765435.5 490.27 1.00 0.08 22 5 1 772 5.0 7 OTD470 651475.6 4765434.0 486.00 1.30 0.11 24 5 1 777 5.0 7 OTD470 651477.8 4765432.5 481.72 1.66 0.11 40 5 1 782 5.0 7 OTD470 651479.9 4765431.0 477.45 1.42 0.10 37 5 1 787 5.0 7 OTD470 651482.2 4765430.0 473.17 1.46 0.10 26 5 1 792 5.0 7 OTD470 651484.4 4765428.5 468.90 1.74 0.15 59 5 1 797 5.0 7 OTD470 651486.6 4765427.0 464.63 2.25 0.19 93 5 1 802 5.0 7 OTD470 651488.6 4765426.0 460.79 1.36 0.07 54 5 1 806 4.0 7 OTD470 651490.6 4765424.5 456.94 0.61 0.03 41 7 1 811 5.0 7 OTD470 651492.8 4765423.5 452.68 0.62 0.03 90 7 1 816 5.0 7 OTD470 651495.0 4765422.0 448.40 0.71 0.02 55 7 1 821 5.0 7 OTD470 651497.2 4765420.5 444.14 0.99 0.04 45 7 1 826 5.0 7 OTD470 651499.4 4765419.0 439.87 1.21 0.04 151 7 1 831 5.0 7 OTD470 651501.2 4765418.0 436.46 0.77 0.03 64 7 14 834 3.0 7 OTRCD340 651415.2 4765570.5 874.81 0.78 0.03 322 10 7 305 5.0 7 OTRCD340 651406.0 4765579.0 834.79 1.62 0.04 43 4 7 347 5.0 7 OTRCD340 651404.9 4765580.0 830.02 1.18 0.02 35 4 7 352 5.0 7 OTRCD340 651403.8 4765581.0 825.26 1.39 0.02 28 4 7 357 5.0 7 OTRCD340 651402.7 4765582.0 820.49 1.05 0.03 51 4 7 362 5.0 7 OTRCD340 651398.2 4765586.5 800.48 0.81 0.03 26 4 7 383 5.0 7 OTRCD340 651397.1 4765587.5 795.71 1.44 0.04 35 4 7 388 5.0 7 OTRCD340 651396.1 4765588.5 790.94 1.27 0.02 39 4 7 393 5.0 7 OTRCD340 651395.0 4765589.5 786.17 1.46 0.09 55 4 7 398 5.0 7 OTRCD340 651393.9 4765591.0 781.40 0.94 0.06 29 4 7 403 5.0 7 OTRCD340 651392.9 4765592.0 776.63 1.10 0.06 31 4 7 408 5.0 7 OTRCD340 651391.9 4765593.0 771.86 1.11 0.07 57 4 7 413 5.0 7 OTRCD340 651390.0 4765595.0 762.79 0.76 0.09 50 4 7 422 4.0 7 OTRCD340 651389.1 4765596.0 758.49 2.67 0.26 53 2 7 427 5.0 7 OTRCD340 651388.1 4765597.0 753.71 2.85 0.19 42 2 7 432 5.0 7 OTRCD340 651387.1 4765598.5 748.93 2.53 0.09 41 2 7 437 5.0 7 OTRCD340 651386.1 4765599.5 744.15 2.56 0.08 19 2 7 442 5.0 7 OTRCD340 651385.1 4765600.5 739.37 1.09 0.06 5 2 7 447 5.0 7 OTRCD340 651384.1 4765601.5 734.59 3.83 0.26 54 2 7 452 5.0 7 OTRCD340 651383.1 4765602.5 729.81 5.01 0.19 16 2 7 457 5.0 7 OTRCD340 651382.2 4765603.5 725.02 2.98 0.16 19 2 7 462 5.0 7 OTRCD340 651381.2 4765604.5 720.24 4.55 0.11 36 2 7 467 5.0 7 OTRCD340 651380.2 4765605.5 715.45 3.69 0.13 42 2 7 472 5.0 7 OTRCD340 651379.3 4765606.5 710.67 3.22 0.15 20 2 7 477 5.0 7 OTRCD340 651378.3 4765608.0 705.88 2.96 0.18 28 2 7 482 5.0 7 OTRCD340 651377.3 4765609.5 701.10 2.75 0.10 47 2 7 487 5.0 7 OTRCD340 651376.3 4765610.5 696.32 2.15 0.08 56 2 7 492 5.0 7 OTRCD340 651375.4 4765611.5 691.53 4.00 0.14 44 2 7 497 5.0 7 OTRCD340 651374.6 4765612.5 687.71 2.83 0.14 68 2 7 500 3.0 7 OTRCD340 651373.8 4765613.0 683.88 1.02 0.08 107 4 7 505 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD340 651372.9 4765614.0 679.09 1.71 0.12 67 4 7 510 5.0 7 OTRCD340 651371.9 4765615.5 674.31 1.59 0.11 53 4 7 515 5.0 7 OTRCD340 651371.1 4765616.5 669.53 0.85 0.08 48 4 7 520 5.0 7 OTRCD340 651370.1 4765617.5 664.74 1.70 0.13 54 4 7 525 5.0 7 OTRCD340 651369.2 4765618.5 659.96 0.88 0.10 47 4 7 530 5.0 7 OTRCD340 651366.4 4765622.0 645.60 1.85 0.12 29 2 7 545 5.0 7 OTRCD340 651365.4 4765623.0 640.81 2.04 0.12 95 2 7 550 5.0 7 OTRCD340 651364.5 4765624.0 636.03 2.53 0.07 42 2 7 555 5.0 7 OTRCD340 651363.6 4765625.0 631.24 2.23 0.05 36 2 7 560 5.0 7 OTRCD340 651362.7 4765626.0 626.45 1.82 0.04 20 2 7 565 5.0 7 OTRCD340 651361.8 4765627.0 621.67 1.84 0.04 38 2 7 570 5.0 7 OTRCD340 651360.9 4765628.5 616.88 1.42 0.04 26 2 7 575 5.0 7 OTRCD340 651360.1 4765629.5 613.05 2.05 0.07 77 2 7 578 3.0 7 OTRCD340 651359.4 4765630.5 609.22 1.03 0.03 13 4 7 583 5.0 7 OTRCD340 651358.5 4765631.5 604.43 1.15 0.03 14 4 7 588 5.0 7 OTRCD340 651357.6 4765632.5 599.64 1.56 0.06 32 4 7 593 5.0 7 OTRCD340 651356.6 4765634.0 594.85 1.50 0.04 26 4 7 598 5.0 7 OTRCD340 651355.8 4765635.0 590.06 0.94 0.02 18 4 7 603 5.0 7 OTRCD340 651354.9 4765636.0 585.28 1.35 0.05 23 4 7 608 5.0 7 OTRCD340 651354.1 4765637.0 580.97 1.42 0.09 36 4 7 612 4.0 7 OTRCD340 651350.6 4765642.0 562.29 0.94 0.07 71 6 7 632 5.0 7 OTRCD340 651349.8 4765643.0 557.50 0.86 0.03 74 7 1 637 5.0 7 OTRCD340 651348.9 4765643.5 552.71 1.23 0.04 107 7 1 642 5.0 7 OTRCD340 651348.0 4765645.0 547.92 0.75 0.03 90 7 1 647 5.0 7 OTRCD340 651347.1 4765646.0 543.13 0.96 0.03 93 7 1 652 5.0 7 OTRCD340 651346.3 4765647.0 538.34 1.10 0.03 51 7 1 657 5.0 7 OTRCD340 651345.4 4765648.5 533.55 0.88 0.03 72 7 1 662 5.0 7 OTRCD340 651344.5 4765649.5 528.76 1.37 0.03 93 7 1 667 5.0 7 OTRCD340 651343.6 4765651.0 523.97 1.03 0.03 134 7 1 672 5.0 7 OTRCD340 651342.8 4765652.0 519.18 0.72 0.02 114 7 1 677 5.0 7 OTRCD340 651341.9 4765653.0 514.38 0.76 0.02 155 7 1 682 5.0 7 OTRCD340 651341.0 4765654.0 509.59 0.76 0.02 119 7 1 687 5.0 7 OTRCD340 651340.2 4765655.0 504.80 0.99 0.03 159 7 1 692 5.0 7 OTRCD340 651339.3 4765656.5 500.01 0.93 0.02 158 7 1 697 5.0 7 OTRCD340 651338.5 4765657.5 495.22 0.86 0.04 136 7 1 702 5.0 7 OTRCD340 651337.6 4765658.5 490.43 0.69 0.03 189 7 1 707 5.0 7 OTRCD340 651335.1 4765662.0 476.05 0.90 0.03 246 7 1 722 5.0 7 OTRCD340 651334.3 4765663.0 471.26 0.68 0.04 174 7 1 727 5.0 7 OTRCD344 651629.1 4766057.0 762.55 0.86 0.03 25 6 7 423 5.0 7 OTRCD344 651627.9 4766058.5 756.87 1.21 0.03 29 4 7 429 5.0 7 OTRCD344 651626.9 4766059.5 752.13 1.34 0.03 32 4 7 434 5.0 7 OTRCD344 651625.9 4766061.0 747.39 1.08 0.02 12 4 7 439 5.0 7 OTRCD344 651624.9 4766062.0 742.66 1.25 0.06 13 4 7 444 5.0 7 OTRCD344 651623.9 4766063.5 737.92 1.47 0.09 9 4 7 449 5.0 7 OTRCD344 651622.9 4766064.5 733.18 1.84 0.29 9 4 7 454 5.0 7 OTRCD344 651622.3 4766065.5 729.86 0.60 0.06 5 4 7 456 2.0 7 OTRCD344 651621.6 4766066.0 726.54 4.82 1.09 10 2 7 461 5.0 7 OTRCD344 651620.6 4766067.5 721.81 5.50 0.70 10 2 7 466 5.0 7 OTRCD344 651619.6 4766068.5 717.07 4.39 0.44 5 2 7 471 5.0 7 OTRCD344 651618.6 4766070.0 712.34 3.82 0.30 9 2 7 476 5.0 7 OTRCD344 651617.6 4766071.0 707.60 4.39 0.45 27 2 7 481 5.0 7 OTRCD344 651616.6 4766072.5 702.88 4.13 0.40 18 2 7 486 5.0 7 OTRCD344 651615.6 4766073.5 698.15 3.66 0.45 22 2 1 491 5.0 7 OTRCD344 651614.6 4766075.0 693.42 3.45 0.41 31 2 1 496 5.0 7 OTRCD344 651613.7 4766076.0 688.69 3.48 0.28 51 2 1 501 5.0 7 OTRCD344 651612.7 4766077.5 683.97 2.85 0.16 85 2 1 506 5.0 7 OTRCD344 651611.7 4766079.0 679.24 1.88 0.07 7 2 1 511 5.0 7 OTRCD344 651610.8 4766080.0 674.52 1.98 0.07 121 2 1 516 5.0 7 OTRCD344 651609.8 4766081.0 669.79 1.56 0.05 28 2 1 521 5.0 7 OTRCD344 651608.9 4766082.0 666.01 3.92 0.11 50 2 1 524 3.0 7 OTRCD344 651608.1 4766083.0 662.22 1.80 0.06 39 5 1 529 5.0 7 OTRCD344 651607.2 4766084.5 657.49 1.57 0.06 59 5 1 534 5.0 7 OTRCD344 651606.2 4766085.5 652.76 1.33 0.04 15 5 1 539 5.0 7 OTRCD344 651605.3 4766087.0 648.03 1.00 0.07 21 5 1 544 5.0 7 OTRCD344 651604.3 4766088.5 643.29 0.95 0.04 42 5 1 549 5.0 7 OTRCD344 651603.3 4766089.5 638.55 1.15 0.03 42 5 1 554 5.0 7 OTRCD344 651602.4 4766091.0 633.81 0.70 0.02 44 5 1 559 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD344 651601.3 4766092.0 629.07 1.04 0.03 43 5 1 564 5.0 7 OTRCD344 651600.4 4766093.5 624.33 1.18 0.11 82 5 1 569 5.0 7 OTRCD344 651599.4 4766094.5 619.59 1.13 0.06 57 5 1 574 5.0 7 OTRCD344 651598.4 4766096.0 614.85 1.06 0.06 41 5 1 579 5.0 7 OTRCD344 651597.5 4766097.0 610.11 0.82 0.05 43 5 1 584 5.0 7 OTRCD344 651596.5 4766098.0 605.37 0.80 0.03 42 5 1 589 5.0 7 OTRCD344 651595.6 4766099.5 600.64 1.01 0.04 50 5 1 594 5.0 7 OTRCD344 651594.6 4766100.5 595.90 0.85 0.03 44 5 1 599 5.0 7 OTRCD344 651593.6 4766101.5 591.15 0.95 0.06 53 5 1 604 5.0 7 OTRCD344 651592.7 4766103.0 586.41 0.82 0.04 40 5 1 609 5.0 7 OTRCD344 651591.8 4766104.5 581.67 0.73 0.07 53 5 1 614 5.0 7 OTRCD344 651590.8 4766105.5 576.93 0.99 0.06 52 5 1 619 5.0 7 OTRCD344 651589.8 4766107.0 572.19 1.07 0.04 132 5 1 624 5.0 7 OTRCD344 651588.9 4766108.0 567.45 1.29 0.05 115 5 1 629 5.0 7 OTRCD344 651587.9 4766109.5 562.71 1.34 0.11 89 5 1 634 5.0 7 OTRCD344 651587.0 4766110.5 557.97 1.17 0.06 76 5 1 639 5.0 7 OTRCD344 651586.1 4766112.0 553.23 1.26 0.19 83 5 1 644 5.0 7 OTRCD344 651585.1 4766113.5 548.49 1.27 0.14 75 5 1 649 5.0 7 OTRCD344 651584.2 4766114.5 543.75 1.42 0.23 92 5 1 654 5.0 7 OTRCD344 651583.3 4766116.0 539.01 1.07 0.10 59 5 1 659 5.0 7 OTRCD344 651582.1 4766117.0 533.32 0.76 0.27 85 7 1 665 5.0 7 OTRCD344 651581.1 4766118.0 528.59 0.91 0.22 77 7 1 670 5.0 7 OTRCD344 651580.2 4766119.5 523.85 0.90 0.15 99 7 1 675 5.0 7 OTRCD344 651579.3 4766121.0 519.11 0.62 0.05 43 7 1 680 5.0 7 OTRCD344 651578.3 4766122.0 514.37 0.84 0.09 73 7 1 685 5.0 7 OTRCD344 651577.4 4766123.5 509.63 0.75 0.11 61 7 1 690 5.0 7 OTRCD344 651575.6 4766126.0 500.14 0.77 0.13 103 7 1 700 5.0 7 OTRCD344 651574.7 4766127.5 495.40 0.91 0.15 70 7 1 705 5.0 7 OTRCD344 651573.8 4766128.5 490.66 0.62 0.13 40 7 1 710 5.0 7 OTRCD344 651572.9 4766130.0 485.91 0.66 0.52 87 7 1 715 5.0 7 OTRCD344 651572.0 4766131.5 481.17 0.89 0.40 204 7 1 720 5.0 7 OTRCD344 651571.2 4766132.5 476.43 0.79 0.39 204 7 1 725 5.0 7 OTRCD344 651570.4 4766134.0 471.69 0.72 1.08 86 7 1 730 5.0 7 OTRCD344 651569.5 4766135.0 466.94 0.96 1.22 84 7 1 735 5.0 7 OTRCD344 651568.6 4766136.5 462.20 0.73 0.40 86 7 1 740 5.0 7 OTRCD344 651567.8 4766138.0 457.46 0.74 0.43 85 7 1 745 5.0 7 OTRCD344 651566.1 4766140.5 447.98 0.63 0.99 63 7 1 755 5.0 7 OTRCD344 651565.3 4766142.0 443.24 0.75 0.47 76 7 1 760 5.0 7 OTRCD344 651564.5 4766143.5 438.50 0.69 0.21 65 7 1 765 5.0 7 OTRCD344 651563.7 4766145.0 433.76 0.68 0.11 67 7 1 770 5.0 7 OTRCD344 651562.9 4766146.5 429.03 0.69 0.11 47 7 1 775 5.0 7 OTRCD344 651562.1 4766147.5 424.29 0.70 0.09 62 7 1 780 5.0 7 OTRCD344 651561.3 4766149.0 419.56 0.67 0.17 62 7 1 785 5.0 7 OTRCD344 651558.9 4766153.5 405.36 0.67 0.18 60 7 1 800 5.0 7 OTRCD344 651558.1 4766155.0 400.62 0.93 0.16 117 7 1 805 5.0 7 OTRCD347 651598.6 4765816.0 602.74 0.70 0.01 80 10 1 583 5.0 7 OTRCD347 651593.7 4765821.5 577.79 1.02 0.03 23 7 1 609 5.0 7 OTRCD347 651592.8 4765822.5 573.00 0.92 0.04 20 7 1 614 5.0 7 OTRCD347 651591.8 4765823.5 568.21 0.88 0.05 12 7 1 619 5.0 7 OTRCD347 651590.8 4765824.5 563.43 0.77 0.02 12 7 1 624 5.0 7 OTRCD347 651587.9 4765828.0 549.08 1.30 0.05 21 7 1 639 5.0 7 OTRCD347 651586.9 4765829.0 544.30 0.61 0.03 14 7 1 644 5.0 7 OTRCD347 651585.9 4765830.0 539.53 1.35 0.05 29 7 1 649 5.0 7 OTRCD347 651584.9 4765831.5 534.75 0.78 0.02 21 7 1 654 5.0 7 OTRCD347 651583.9 4765832.5 529.99 0.65 0.02 19 7 1 659 5.0 7 OTRCD347 651581.8 4765834.5 520.45 0.67 0.02 21 7 1 669 5.0 7 OTRCD347 651578.1 4765839.0 502.85 0.69 0.02 11 7 1 686 2.0 7 OTRCD347 651577.3 4765840.0 499.53 1.40 0.07 13 5 1 691 5.0 7 OTRCD347 651576.3 4765841.0 494.79 1.11 0.05 12 5 1 696 5.0 7 OTRCD347 651575.2 4765842.0 490.04 1.49 0.05 73 5 1 701 5.0 7 OTRCD347 651574.1 4765843.0 485.31 1.21 0.06 36 5 1 706 5.0 7 OTRCD347 651573.2 4765844.5 481.05 1.27 0.07 225 5 1 710 4.0 7 OTRCD347 651572.2 4765845.5 476.79 2.17 0.12 30 2 1 715 5.0 7 OTRCD347 651571.1 4765847.0 472.06 2.17 0.18 35 2 1 720 5.0 7 OTRCD347 651570.1 4765848.0 467.80 1.57 0.12 55 5 1 724 4.0 7 OTRCD347 651563.9 4765855.5 440.88 1.59 0.10 36 5 1 753 5.0 7 OTRCD347 651562.9 4765856.5 436.16 1.30 0.09 20 5 1 758 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD347 651561.8 4765858.0 431.44 1.34 0.06 68 5 1 763 5.0 7 OTRCD347 651560.6 4765859.0 426.73 1.61 0.11 21 5 1 768 5.0 7 OTRCD347 651559.6 4765860.0 422.01 1.46 0.09 20 5 1 773 5.0 7 OTRCD347 651558.4 4765861.5 417.29 1.47 0.08 59 5 1 778 5.0 7 OTRCD347 651557.4 4765862.5 412.59 1.12 0.06 43 5 1 783 5.0 7 OTRCD347 651556.3 4765864.0 407.90 1.23 0.07 44 5 1 788 5.0 7 OTRCD347 651555.1 4765865.5 403.20 1.08 0.10 28 5 1 793 5.0 7 OTRCD347 651553.8 4765867.0 397.56 0.79 0.06 51 7 1 799 5.0 7 OTRCD347 651551.6 4765869.5 388.18 0.83 0.04 77 7 1 809 5.0 7 OTRCD347 651550.5 4765871.0 383.50 0.75 0.06 49 7 1 814 5.0 7 OTRCD347 651549.4 4765872.5 378.82 0.79 0.07 35 7 1 819 5.0 7 OTRCD347 651548.3 4765873.5 374.15 0.75 0.05 20 7 1 824 5.0 7 OTRCD347 651546.1 4765876.5 364.80 0.63 0.04 75 7 1 834 5.0 7 OTRCD347 651545.0 4765877.5 360.13 0.78 0.07 163 7 1 839 5.0 7 OTRCD347 651543.9 4765879.0 355.47 0.96 0.07 259 7 1 844 5.0 7 OTRCD347 651536.3 4765889.5 322.88 0.71 0.09 88 10 1 879 5.0 7 OTRCD347 651535.3 4765891.0 318.24 0.67 0.06 141 10 1 884 5.0 7 OTRCD347 651534.1 4765892.5 313.60 0.60 0.05 122 10 14 889 5.0 7 OTRCD350 651580.7 4765712.0 549.00 0.71 0.02 36 7 1 631 5.0 7 OTRCD350 651580.1 4765713.0 544.11 0.79 0.02 38 7 1 636 5.0 7 OTRCD350 651579.4 4765713.5 539.22 0.66 0.03 37 7 1 641 5.0 7 OTRCD350 651578.8 4765714.5 534.33 0.97 0.03 49 7 1 646 5.0 7 OTRCD350 651578.1 4765715.5 529.44 0.76 0.03 33 7 1 651 5.0 7 OTRCD350 651577.4 4765716.0 524.55 0.68 0.03 30 7 1 656 5.0 7 OTRCD350 651573.9 4765720.5 499.13 0.71 0.03 35 10 1 682 5.0 7 OTRCD350 651572.4 4765722.5 487.40 0.72 0.03 25 7 1 694 5.0 7 OTRCD350 651571.8 4765723.0 482.51 0.82 0.03 47 7 1 699 5.0 7 OTRCD350 651571.1 4765723.5 477.62 0.73 0.03 30 7 1 704 5.0 7 OTRCD350 651570.4 4765724.5 472.73 0.75 0.05 31 7 1 709 5.0 7 OTRCD350 651569.8 4765725.0 467.84 0.89 0.06 21 7 1 714 5.0 7 OTRCD350 651569.2 4765726.5 462.95 0.90 0.05 38 7 1 719 5.0 7 OTRCD350 651568.7 4765727.0 459.04 0.65 0.05 34 7 1 722 3.0 7 OTRCD350 651568.1 4765727.5 455.13 1.57 0.10 35 5 1 727 5.0 7 OTRCD350 651567.5 4765728.5 450.24 1.23 0.15 19 5 1 732 5.0 7 OTRCD350 651566.8 4765729.0 445.35 1.28 0.16 59 5 1 737 5.0 7 OTRCD350 651566.2 4765730.0 440.47 1.02 0.09 129 5 1 742 5.0 7 OTRCD350 651565.5 4765730.5 435.59 1.94 0.11 106 5 1 747 5.0 7 OTRCD350 651564.9 4765731.5 430.70 1.06 0.16 34 5 1 752 5.0 7 OTRCD350 651564.3 4765732.5 425.83 2.07 0.31 74 5 1 757 5.0 7 OTRCD350 651563.6 4765733.0 420.95 1.68 0.29 48 5 1 762 5.0 7 OTRCD350 651562.9 4765734.0 416.07 1.29 0.20 21 5 1 767 5.0 7 OTRCD350 651562.2 4765734.5 411.19 1.36 0.23 18 5 1 772 5.0 7 OTRCD350 651561.8 4765735.5 407.77 1.38 0.32 15 5 1 774 2.0 7 OTRCD350 651561.3 4765736.0 404.36 2.15 0.52 27 2 1 779 5.0 7 OTRCD350 651560.6 4765737.0 399.47 3.14 0.61 40 2 1 784 5.0 7 OTRCD350 651560.0 4765737.5 394.59 1.71 0.33 195 2 1 789 5.0 7 OTRCD350 651559.4 4765738.5 390.69 3.47 0.77 117 2 1 792 3.0 7 OTRCD350 651558.9 4765739.5 386.78 1.31 0.19 128 5 1 797 5.0 7 OTRCD350 651558.3 4765740.0 381.89 0.72 0.05 155 5 1 802 5.0 7 OTRCD350 651557.6 4765741.0 377.01 1.11 0.09 55 5 1 807 5.0 7 OTRCD350 651557.0 4765741.5 372.13 1.96 0.27 128 5 1 812 5.0 7 OTRCD350 651556.4 4765742.5 367.24 1.28 0.18 29 5 1 817 5.0 7 OTRCD350 651555.8 4765743.5 362.35 1.29 0.21 32 5 1 822 5.0 7 OTRCD350 651554.4 4765745.5 352.58 1.54 0.32 73 7 1 832 5.0 7 OTRCD350 651553.3 4765747.0 342.80 0.67 0.04 35 7 1 842 5.0 7 OTRCD350 651552.6 4765748.0 337.90 0.76 0.06 51 7 1 847 5.0 7 OTRCD350 651552.1 4765748.5 333.01 0.65 0.03 72 7 1 852 5.0 7 OTRCD350 651551.4 4765749.5 328.12 0.78 0.17 31 7 1 857 5.0 7 OTRCD350 651550.9 4765750.5 323.23 1.07 0.03 38 7 1 862 5.0 7 OTRCD350 651549.0 4765753.0 308.55 0.81 0.04 34 7 1 877 5.0 7 OTRCD350 651548.4 4765753.5 303.65 1.32 0.08 37 7 1 882 5.0 7 OTRCD350 651547.8 4765754.5 298.76 0.78 0.04 60 7 1 887 5.0 7 OTRCD350 651547.2 4765755.5 293.86 0.63 0.04 66 7 1 892 5.0 7 OTRCD350 651546.6 4765756.0 288.97 0.62 0.04 50 7 1 897 5.0 7 OTRCD350 651546.0 4765757.0 284.07 0.78 0.04 52 7 1 902 5.0 7 OTRCD350 651545.4 4765757.5 279.18 0.79 0.04 48 7 1 907 5.0 7 OTRCD350 651544.8 4765758.5 274.28 0.66 0.03 58 7 1 912 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD350 651544.1 4765759.5 269.39 0.61 0.02 43 7 1 917 5.0 7 OTRCD352 651653.1 4766244.5 601.17 0.87 0.01 8 4 7 596 4.0 7 OTRCD352 651651.9 4766245.5 597.02 2.01 0.12 78 2 7 601 5.0 7 OTRCD352 651650.5 4766247.0 592.42 1.78 0.10 21 2 7 606 5.0 7 OTRCD352 651649.2 4766248.0 588.19 1.35 0.12 51 2 7 610.2 4.2 7 OTRCD352A 651653.1 4766244.5 601.17 1.08 0.02 132 4 7 596 4.0 7 OTRCD352A 651651.9 4766245.5 597.02 1.18 0.04 20 2 7 601 5.0 7 OTRCD352A 651650.4 4766246.5 592.42 1.84 0.07 20 2 7 606 5.0 7 OTRCD352A 651649.2 4766248.0 588.28 2.02 0.13 16 2 7 610 4.0 7 OTRCD352A 651648.0 4766249.0 584.14 2.06 0.12 41 2 1 615 5.0 7 OTRCD352A 651646.6 4766250.5 579.53 1.01 0.06 17 2 1 620 5.0 7 OTRCD352A 651645.3 4766252.0 574.93 1.88 0.16 65 2 1 625 5.0 7 OTRCD352A 651643.9 4766253.5 570.33 1.35 0.13 40 2 1 630 5.0 7 OTRCD352A 651642.6 4766255.0 565.73 2.33 0.19 65 2 1 635 5.0 7 OTRCD352A 651641.5 4766256.0 562.04 2.37 0.19 46 2 1 638 3.0 7 OTRCD352A 651640.4 4766257.0 558.36 1.80 0.11 59 5 1 643 5.0 7 OTRCD352A 651639.1 4766258.5 553.76 1.66 0.10 51 5 1 648 5.0 7 OTRCD352A 651637.6 4766260.5 549.16 1.37 0.09 17 5 1 653 5.0 7 OTRCD352A 651636.3 4766262.0 544.55 1.51 0.13 24 5 1 658 5.0 7 OTRCD352A 651635.0 4766263.0 539.95 1.22 0.06 26 5 1 663 5.0 7 OTRCD352A 651633.7 4766264.5 535.35 1.37 0.07 54 5 1 668 5.0 7 OTRCD352A 651632.4 4766266.0 530.75 1.48 0.08 60 5 1 673 5.0 7 OTRCD352A 651631.1 4766267.5 526.14 1.66 0.09 33 5 1 678 5.0 7 OTRCD352A 651629.8 4766269.0 521.54 1.50 0.07 45 5 1 683 5.0 7 OTRCD352A 651628.8 4766269.5 517.86 1.63 0.08 10 5 1 686 3.0 7 OTRCD352A 651627.8 4766270.5 514.18 0.64 0.04 9 7 1 691 5.0 7 OTRCD352A 651626.5 4766272.0 509.57 0.94 0.06 29 7 1 696 5.0 7 OTRCD352A 651623.9 4766275.5 500.37 0.83 0.04 23 7 1 706 5.0 7 OTRCD352A 651622.8 4766277.0 495.77 0.74 0.04 14 7 1 711 5.0 7 OTRCD352A 651621.5 4766278.5 491.16 0.83 0.71 29 7 1 716 5.0 7 OTRCD352A 651620.3 4766280.0 486.56 0.95 0.06 18 7 14 721 5.0 7 OTRCD352A 651619.0 4766281.5 481.96 1.25 0.07 30 7 14 726 5.0 7 OTRCD352A 651617.8 4766283.0 477.36 0.97 0.04 20 7 14 731 5.0 7 OTRCD352A 651616.6 4766285.0 472.75 1.11 0.06 34 7 14 736 5.0 7 OTRCD352A 651615.3 4766286.5 468.15 1.31 0.10 61 7 14 741 5.0 7 OTRCD352A 651614.1 4766288.0 463.55 1.01 0.13 91 7 14 746 5.0 7 OTRCD352A 651612.8 4766289.5 458.95 1.04 0.12 40 7 14 751 5.0 7 OTRCD352A 651611.6 4766291.0 454.34 0.74 0.39 34 7 14 756 5.0 7 OTRCD352A 651610.3 4766292.5 449.74 0.82 0.47 27 7 14 761 5.0 7 OTRCD352A 651609.1 4766294.0 445.14 0.91 0.32 37 7 14 766 5.0 7 OTRCD352A 651607.8 4766295.5 440.54 0.69 0.23 30 7 14 771 5.0 7 OTRCD352A 651606.6 4766297.0 435.93 0.63 0.47 22 7 14 776 5.0 7 OTRCD352A 651605.3 4766298.5 431.33 0.76 2.26 31 7 14 781 5.0 7 OTRCD352A 651604.0 4766300.0 426.73 0.85 3.91 20 7 14 786 5.0 7 OTRCD352A 651603.1 4766301.0 423.51 0.99 0.42 25 7 14 788 2.0 7 OTRCD353 651551.2 4765492.0 642.84 0.92 0.02 13 6 7 529 5.0 7 OTRCD353 651550.9 4765492.5 637.88 0.95 0.02 31 6 7 534 5.0 7 OTRCD353 651550.5 4765493.0 632.91 0.93 0.03 44 6 7 539 5.0 7 OTRCD353 651550.2 4765493.5 627.95 1.07 0.02 34 6 7 544 5.0 7 OTRCD353 651549.9 4765494.0 622.98 0.67 0.01 73 6 7 549 5.0 7 OTRCD353 651549.6 4765494.5 618.02 0.99 0.01 50 6 7 554 5.0 7 OTRCD353 651549.3 4765495.0 613.05 0.96 0.02 46 6 7 559 5.0 7 OTRCD353 651549.0 4765495.5 608.09 0.76 0.02 35 6 7 564 5.0 7 OTRCD353 651548.7 4765496.0 603.13 0.68 0.04 74 6 7 569 5.0 7 OTRCD353 651548.4 4765496.5 598.17 0.78 0.04 29 6 7 574 5.0 7 OTRCD353 651547.3 4765498.5 581.29 0.64 0.02 36 10 1 591 5.0 7 OTRCD353 651547.0 4765499.0 576.33 0.62 0.02 43 10 1 596 5.0 7 OTRCD353 651546.7 4765499.0 571.36 0.73 0.03 79 10 1 601 5.0 7 OTRCD353 651545.5 4765501.0 552.00 0.72 0.03 75 10 1 620 4.0 7 OTRCD353 651545.2 4765501.5 547.53 0.73 0.02 46 7 1 625 5.0 7 OTRCD353 651544.6 4765502.5 537.61 0.91 0.02 70 7 1 635 5.0 7 OTRCD353 651543.8 4765504.5 522.72 0.71 0.03 93 7 1 650 5.0 7 OTRCD353 651543.5 4765505.5 517.76 0.76 0.02 44 7 1 655 5.0 7 OTRCD353 651543.3 4765506.0 512.80 0.62 0.01 55 7 1 660 5.0 7 OTRCD353 651543.0 4765506.5 507.84 0.83 0.01 64 7 1 665 5.0 7 OTRCD353 651542.8 4765507.0 502.88 1.18 0.02 66 7 1 670 5.0 7 OTRCD353 651542.6 4765507.5 497.92 0.88 0.02 63 7 1 675 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD353 651542.3 4765508.0 492.95 0.71 0.01 58 7 1 680 5.0 7 OTRCD353 651542.1 4765508.5 489.48 0.63 0.04 40 7 1 682 2.0 7 OTRCD353 651541.9 4765509.0 486.01 1.07 0.03 45 5 1 687 5.0 7 OTRCD353 651541.7 4765509.5 481.04 1.21 0.02 69 5 1 692 5.0 7 OTRCD353 651541.4 4765510.0 476.08 1.39 0.03 99 5 1 697 5.0 7 OTRCD353 651541.2 4765510.5 471.11 2.05 0.08 87 5 1 702 5.0 7 OTRCD353 651540.9 4765511.0 466.15 1.24 0.05 98 5 1 707 5.0 7 OTRCD353 651540.7 4765511.5 461.18 0.68 0.10 61 5 1 712 5.0 7 OTRCD353 651540.4 4765512.0 456.21 2.61 0.17 24 2 1 717 5.0 7 OTRCD353 651540.2 4765512.5 450.25 1.27 0.06 65 5 1 723 5.0 7 OTRCD353 651539.9 4765513.0 445.28 0.94 0.06 55 5 1 728 5.0 7 OTRCD353 651539.5 4765514.5 435.35 1.45 0.06 55 5 1 738 5.0 7 OTRCD353 651539.3 4765515.0 430.88 1.88 0.11 51 5 1 742 4.0 7 OTRCD353 651539.1 4765515.5 426.41 0.83 0.06 60 7 1 747 5.0 7 OTRCD353 651538.9 4765515.5 421.44 0.65 0.06 32 7 14 752 5.0 7 OTRCD353 651538.7 4765516.5 416.48 0.69 0.05 29 7 14 757 5.0 7 OTRCD353 651538.5 4765517.0 411.51 1.04 0.05 38 7 14 762 5.0 7 OTRCD353 651538.3 4765517.5 406.55 0.62 0.03 28 7 14 767 5.0 7 OTRCD353 651538.1 4765518.0 401.58 0.69 0.04 51 7 14 772 5.0 7 OTRCD353 651537.9 4765518.5 396.61 0.87 0.11 66 7 14 777 5.0 7 OTRCD353 651537.6 4765519.0 391.65 0.83 0.05 45 7 14 782 5.0 7 OTRCD353 651537.4 4765519.5 386.68 0.81 0.09 30 7 14 787 5.0 7 OTRCD353 651536.9 4765521.0 375.26 0.65 1.02 26 10 14 797 2.0 7 OTRCD365 651656.8 4766018.0 630.20 1.70 0.19 5 2 7 577 5.0 7 OTRCD365 651655.4 4766019.0 625.59 2.18 0.26 17 2 7 582 5.0 7 OTRCD365 651653.9 4766020.5 620.98 2.70 0.22 62 2 7 587 5.0 7 OTRCD365 651652.4 4766022.0 616.37 3.85 0.27 60 2 7 592 5.0 7 OTRCD365 651651.0 4766023.0 611.77 2.99 0.42 51 2 7 597 5.0 7 OTRCD365 651649.6 4766024.5 607.16 2.69 0.37 50 2 7 602 5.0 7 OTRCD365 651648.1 4766026.0 602.56 5.62 0.33 52 2 7 607 5.0 7 OTRCD365 651646.7 4766027.0 597.95 6.40 0.49 25 2 7 612 5.0 7 OTRCD365 651645.3 4766028.5 593.35 3.90 0.70 58 2 7 617 5.0 7 OTRCD365 651643.8 4766030.0 588.75 3.59 0.37 49 2 7 622 5.0 7 OTRCD365 651642.4 4766031.5 584.15 3.05 0.19 47 2 1 627 5.0 7 OTRCD365 651641.0 4766032.5 579.55 2.79 0.18 39 2 1 632 5.0 7 OTRCD365 651639.5 4766034.0 574.95 1.56 0.09 38 2 1 637 5.0 7 OTRCD365 651638.1 4766035.5 570.36 1.45 0.07 24 2 1 642 5.0 7 OTRCD365 651636.6 4766036.5 565.76 1.51 0.08 38 2 1 647 5.0 7 OTRCD365 651635.2 4766037.5 561.16 2.17 0.13 38 2 1 652 5.0 7 OTRCD365 651634.2 4766038.5 557.95 2.10 0.13 40 2 1 654 2.0 7 OTRCD365 651633.1 4766039.5 554.73 1.27 0.08 43 5 1 659 5.0 7 OTRCD365 651631.7 4766041.0 550.14 1.11 0.06 37 5 1 664 5.0 7 OTRCD365 651630.3 4766042.5 545.55 1.09 0.05 39 5 1 669 5.0 7 OTRCD365 651628.8 4766044.0 540.96 1.03 0.06 41 5 1 674 5.0 7 OTRCD365 651627.3 4766045.0 536.37 0.92 0.04 26 5 1 679 5.0 7 OTRCD365 651625.9 4766047.0 531.78 1.29 0.06 55 5 1 684 5.0 7 OTRCD365 651624.4 4766048.5 527.19 1.24 0.06 48 5 1 689 5.0 7 OTRCD365 651623.0 4766050.0 522.60 1.08 0.06 44 5 1 694 5.0 7 OTRCD365 651621.6 4766051.0 518.02 1.14 0.06 67 5 1 699 5.0 7 OTRCD365 651620.2 4766052.5 513.43 1.08 0.04 41 5 1 704 5.0 7 OTRCD365 651618.7 4766054.0 508.85 1.06 0.04 64 5 1 709 5.0 7 OTRCD365 651617.3 4766055.0 504.26 0.90 0.05 34 5 1 714 5.0 7 OTRCD365 651615.8 4766056.5 499.68 2.27 0.10 93 5 1 719 5.0 7 OTRCD365 651614.6 4766057.5 496.02 1.72 0.07 60 5 1 722 3.0 7 OTRCD365 651613.5 4766058.5 492.35 0.88 0.04 113 7 1 727 5.0 7 OTRCD365 651612.1 4766060.0 487.77 0.97 0.04 95 7 1 732 5.0 7 OTRCD365 651610.7 4766061.5 483.19 0.98 0.07 96 7 1 737 5.0 7 OTRCD365 651609.3 4766063.0 478.61 0.67 0.27 106 7 1 742 5.0 7 OTRCD365 651607.9 4766064.5 474.03 0.83 0.52 147 7 1 747 5.0 7 OTRCD365 651606.4 4766066.0 469.46 0.92 0.40 173 7 1 752 5.0 7 OTRCD365 651605.1 4766067.5 464.88 1.04 0.33 188 7 1 757 5.0 7 OTRCD365 651603.6 4766069.0 460.31 1.03 0.32 110 7 1 762 5.0 7 OTRCD365 651602.3 4766070.0 455.73 0.82 0.21 253 7 1 767 5.0 7 OTRCD365 651595.4 4766077.5 432.88 0.73 0.29 92 7 14 792 4.0 7 OTRCD365 651594.1 4766079.0 428.31 0.64 0.38 77 7 14 797 5.0 7 OTRCD365 651592.8 4766080.5 423.73 0.79 0.21 64 7 14 802 5.0 7 OTRCD365 651591.4 4766082.0 419.17 0.69 0.20 57 7 14 807 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD365 651588.6 4766085.5 409.12 0.65 0.31 59 10 14 818 5.0 7 OTRCD365 651584.7 4766090.0 395.43 0.76 0.62 89 10 14 833 5.0 7 OTRCD365 651578.4 4766097.5 373.56 0.66 0.87 55 7 14 857 5.0 7 OTRCD365 651569.3 4766109.0 341.76 0.79 0.09 82 7 1 892 5.0 7 OTRCD365 651568.1 4766110.5 337.22 0.86 0.17 81 7 1 897 5.0 7 OTRCD365 651566.8 4766112.5 332.68 0.69 0.07 73 7 1 902 5.0 7 OTRCD365 651565.5 4766114.0 328.15 0.76 0.09 118 7 1 907 5.0 7 OTRCD365 651564.2 4766115.5 323.62 0.79 0.13 173 7 1 912 5.0 7 OTRCD365 651562.9 4766117.5 319.09 0.68 0.17 95 7 1 917 5.0 7 OTRCD365 651561.6 4766119.5 314.56 0.60 0.10 92 7 1 922 5.0 7 OTRCD365 651560.4 4766121.0 310.04 0.71 0.11 71 7 1 927 5.0 7 OTRCD365 651559.1 4766123.0 305.52 0.91 0.16 79 7 1 932 5.0 7 OTRCD365 651557.8 4766124.0 301.00 1.20 0.34 124 7 1 937 5.0 7 OTRCD365 651556.5 4766125.5 296.48 1.26 0.29 104 7 1 942 5.0 7 OTRCD365 651555.2 4766127.5 291.97 1.12 0.19 113 7 1 947 5.0 7 OTRCD365 651553.9 4766129.0 287.45 0.73 0.11 36 7 1 952 5.0 7 OTRCD365 651542.7 4766145.5 246.92 1.55 0.67 52 7 14 997 5.0 7 OTRCD365 651541.5 4766147.5 242.41 1.09 0.44 51 7 14 1002 5.0 7 OTRCD365 651540.3 4766149.0 237.91 0.69 0.18 50 7 14 1007 5.0 7 OTRCD365 651539.1 4766151.0 233.41 1.20 0.33 36 7 14 1012 5.0 7 OTRCD365 651536.7 4766154.5 224.42 1.00 0.48 61 7 14 1022 5.0 7 OTRCD365 651535.4 4766156.5 219.92 0.83 0.16 60 7 14 1027 5.0 7 OTRCD365 651534.3 4766158.5 215.43 0.85 0.17 48 7 14 1032 5.0 7 OTRCD365 651530.7 4766163.5 201.96 0.74 0.14 23 7 14 1047 5.0 7 OTRCD365 651529.5 4766165.5 197.48 0.91 0.17 37 7 14 1052 5.0 7 OTRCD365 651524.7 4766172.5 179.57 0.68 0.15 34 7 14 1072 5.0 7 OTRCD365 651523.5 4766174.5 175.10 0.68 0.14 28 7 14 1077 5.0 7 OTRCD365 651522.3 4766176.5 170.63 0.64 0.11 15 7 14 1082 5.0 7 OTRCD365 651521.1 4766178.0 166.15 0.63 0.10 29 7 14 1087 5.0 7 OTRCD365 651520.2 4766179.5 162.58 0.68 0.13 25 7 14 1090 3.0 7 OTRCD365 651513.6 4766191.0 136.72 0.73 0.12 30 10 14 1120 5.0 7 OTRCD365 651509.3 4766199.0 118.93 0.60 0.12 65 10 14 1140 5.0 7 OTRCD365 651507.2 4766203.0 110.05 0.91 0.15 155 10 14 1150 5.0 7 OTRCD365 651496.9 4766224.5 65.81 0.76 0.11 58 10 14 1200 5.0 7 OTRCD365 651495.9 4766227.0 61.40 0.69 0.28 38 10 14 1205 5.0 7 OTRCD365 651493.9 4766231.0 52.60 0.63 0.18 19 10 14 1215 5.0 7 OTRCD365A 651665.7 4766003.5 648.18 1.84 0.07 21 4 7 555 5.0 7 OTRCD365A 651664.4 4766004.0 643.39 2.40 0.24 5 4 7 560 5.0 7 OTRCD365A 651663.1 4766004.5 638.60 3.38 0.56 8 4 7 565 5.0 7 OTRCD365A 651657.6 4766007.0 619.52 0.73 0.09 9 4 7 585 5.0 7 OTRCD365A 651655.8 4766008.0 613.85 2.45 0.29 17 2 7 591 5.0 7 OTRCD365A 651651.3 4766010.0 599.71 2.73 0.23 30 2 7 606 5.0 7 OTRCD365A 651649.6 4766011.0 595.05 2.66 0.61 14 2 7 611 5.0 7 OTRCD365A 651647.9 4766011.5 590.39 2.72 0.58 12 2 7 616 5.0 7 OTRCD365A 651646.3 4766012.0 585.73 3.13 0.21 19 2 7 621 5.0 7 OTRCD365A 651644.8 4766012.5 580.99 2.94 0.21 29 2 7 626 5.0 7 OTRCD365A 651643.3 4766013.5 576.25 3.93 0.23 30 2 7 631 5.0 7 OTRCD365A 651641.8 4766014.0 571.52 3.74 0.35 18 2 7 636 5.0 7 OTRCD365A 651640.9 4766014.5 568.17 2.33 0.19 32 2 7 638 2.0 7 OTRCD365A 651640.4 4766014.5 566.25 1.35 0.08 48 4 7 640 2.0 7 OTRCD365A 651635.8 4766016.5 548.43 1.19 0.11 37 5 1 660 5.0 7 OTRCD365A 651634.6 4766017.0 543.58 0.98 0.06 22 5 1 665 5.0 7 OTRCD365A 651633.6 4766017.5 538.73 0.84 0.02 23 5 1 670 5.0 7 OTRCD365A 651632.4 4766017.5 533.88 1.20 0.05 66 5 1 675 5.0 7 OTRCD365A 651631.3 4766018.5 529.03 1.19 0.06 74 5 1 680 5.0 7 OTRCD365A 651630.2 4766019.0 524.17 0.83 0.08 31 7 1 685 5.0 7 OTRCD365A 651629.1 4766019.5 519.32 0.77 0.08 21 7 1 690 5.0 7 OTRCD365A 651628.0 4766020.0 514.46 0.91 0.07 28 7 1 695 5.0 7 OTRCD365A 651626.9 4766020.5 509.61 0.86 0.08 28 7 1 700 5.0 7 OTRCD365A 651625.8 4766021.0 504.75 0.79 0.06 40 7 1 705 5.0 7 OTRCD365A 651624.6 4766021.5 499.89 1.02 0.08 83 7 1 710 5.0 7 OTRCD365A 651623.6 4766021.5 495.03 0.76 0.07 59 7 1 715 5.0 7 OTRCD365A 651622.5 4766021.5 490.17 0.69 0.07 79 7 1 720 5.0 7 OTRCD365A 651621.4 4766022.0 485.31 0.84 0.06 163 7 1 725 5.0 7 OTRCD365A 651620.3 4766022.5 480.45 0.78 0.10 50 7 1 730 5.0 7 OTRCD365A 651619.3 4766023.0 475.59 0.75 0.40 172 7 1 735 5.0 7 OTRCD365A 651618.2 4766023.5 470.73 0.92 0.25 134 7 1 740 5.0 7
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTRCD365A 651617.1 4766024.0 465.86 1.07 0.16 163 7 1 745 5.0 7 OTRCD365A 651616.1 4766024.5 461.00 0.94 0.20 129 7 1 750 5.0 7 OTRCD365A 651615.0 4766025.0 456.14 1.56 0.24 199 7 1 755 5.0 7 OTRCD365A 651613.9 4766025.5 451.27 0.82 0.31 129 7 1 760 5.0 7 OTRCD365A 651612.9 4766026.0 446.40 0.84 0.84 141 7 1 765 5.0 7 OTRCD388 651680.4 4766098.5 703.45 1.38 0.07 14 6 7 468 4.0 7 OTRCD388 651679.8 4766099.0 699.53 1.82 0.10 5 4 7 472 4.0 7 OTRCD388 651678.9 4766099.5 695.13 2.49 0.09 9 2 7 477 5.0 7 OTRCD388 651678.1 4766100.0 690.23 3.57 0.10 19 2 7 482 5.0 7 OTRCD388 651677.2 4766100.5 685.34 4.02 0.11 21 2 7 487 5.0 7 OTRCD388 651676.3 4766101.0 680.45 3.86 0.13 18 2 7 492 5.0 7 OTRCD388 651675.4 4766101.5 675.56 4.92 0.16 56 2 7 497 5.0 7 OTRCD388 651674.6 4766102.0 670.67 4.30 0.14 14 2 7 502 5.0 7 OTRCD388 651673.7 4766102.5 665.77 3.81 0.10 9 2 7 507 5.0 7 OTRCD388 651672.8 4766103.0 660.88 3.69 0.18 17 2 7 512 5.0 7 OTRCD388 651672.0 4766103.5 655.99 4.46 0.16 23 2 7 517 5.0 7 OTRCD388 651671.1 4766104.5 651.10 5.15 0.20 24 2 7 522 5.0 7 OTRCD388 651670.3 4766105.0 646.21 4.15 0.18 65 2 7 527 5.0 7 OTRCD388 651669.4 4766106.0 641.32 4.38 0.33 54 2 7 532 5.0 7 OTRCD388 651668.5 4766106.5 636.43 4.03 0.42 40 2 7 537 5.0 7 OTRCD388 651667.6 4766107.0 631.54 4.90 0.33 21 2 7 542 5.0 7 OTRCD388 651666.7 4766107.5 626.65 3.71 0.22 33 2 7 547 5.0 7 OTRCD388 651666.0 4766108.0 622.74 1.43 0.09 17 2 7 550 3.0 7 OTRCD388 651657.6 4766114.0 575.81 1.32 0.07 54 5 1 599 5.0 7 OTRCD388 651656.7 4766114.5 570.93 1.42 0.07 35 5 1 604 5.0 7 OTRCD388 651655.8 4766115.0 566.05 0.88 0.07 27 5 1 609 5.0 7 OTRCD388 651654.9 4766115.5 561.17 1.06 0.09 20 5 1 614 5.0 7 OTRCD388 651653.9 4766116.5 556.28 1.13 0.06 18 5 1 619 5.0 7 OTRCD388 651653.0 4766117.0 551.40 1.16 0.06 26 5 1 624 5.0 7 OTRCD388 651652.1 4766117.5 546.52 0.83 0.05 17 5 1 629 5.0 7 OTRCD388 651651.3 4766118.0 541.63 1.25 0.05 30 5 1 634 5.0 7 OTRCD388 651650.4 4766119.0 536.74 1.12 0.04 37 5 1 639 5.0 7 OTRCD388 651649.8 4766119.5 532.84 1.05 0.03 64 5 1 642 3.0 7 OTRCD388 651649.0 4766120.0 528.93 0.71 0.05 45 7 1 647 5.0 7 OTRCD388 651648.1 4766120.5 524.04 0.77 0.05 36 7 1 652 5.0 7 OTRCD388 651647.2 4766121.0 519.15 0.63 0.04 38 7 1 657 5.0 7 OTRCD388 651646.3 4766121.5 514.27 0.79 0.07 44 7 1 662 5.0 7 OTRCD388 651645.4 4766122.0 509.38 0.83 0.05 50 7 1 667 5.0 7 OTRCD388 651644.6 4766123.0 504.50 1.03 0.05 57 7 1 672 5.0 7 OTRCD388 651643.7 4766124.0 499.61 0.77 0.06 27 7 1 677 5.0 7 OTRCD388 651642.8 4766124.5 494.72 0.87 0.07 28 7 1 682 5.0 7 OTRCD388 651641.9 4766125.0 489.84 1.10 0.05 51 7 1 687 5.0 7 OTRCD388 651641.1 4766125.5 484.95 1.21 0.09 72 7 1 692 5.0 7 OTRCD388 651640.1 4766126.0 480.06 0.82 0.15 59 7 1 697 5.0 7 OTRCD388 651639.3 4766126.5 475.17 0.74 0.17 90 7 1 702 5.0 7 OTRCD388 651637.5 4766128.0 465.40 0.67 0.14 81 7 1 712 5.0 7 OTRCD388 651634.8 4766129.5 450.74 0.79 0.13 85 7 1 727 5.0 7 OTRCD388 651634.2 4766130.0 447.08 0.79 0.12 98 7 1 729.5 2.3 7
TABLE A.3: HUGO NORTH COMPOSITED ASSAY VALUES (FOR VALUES >= 0.60% CU) A NEGATIVE VALUE DENOTES "NO ASSAY VALUE". DOMAIN CODE DESCRIPTIONS ARE IN TABLE 17-1.
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD355 651757.4 4766524.5 365.61 1.42 0.03 17 5 7 850 4.0 8 OTD355 651753.6 4766530.0 348.33 1.61 0.05 7 5 7 869 5.0 8 OTD355 651752.6 4766531.5 343.67 1.50 0.04 5 2 7 874 5.0 8 OTD355 651751.8 4766533.0 339.47 1.48 0.05 5 2 7 878 4.0 8 OTD355 651750.8 4766534.5 335.27 1.88 0.06 5 2 7 883 5.0 8 OTD355 651749.8 4766536.0 330.61 2.27 0.10 8 2 7 888 5.0 8 OTD355 651748.8 4766537.5 325.95 1.55 0.14 20 2 7 893 5.0 8 OTD355 651747.8 4766539.0 321.29 2.49 0.13 9 2 7 898 5.0 8 OTD355 651745.8 4766541.5 311.96 0.94 0.02 7 2 7 908 5.0 8 OTD355 651737.1 4766555.5 269.96 3.08 0.11 25 2 1 953 5.0 8 OTD355 651736.1 4766557.0 265.29 2.83 0.07 18 2 1 958 5.0 8 OTD355 651735.1 4766558.5 260.62 2.72 0.05 18 2 1 963 5.0 8 OTD355 651734.1 4766559.5 255.95 2.78 0.05 7 2 1 968 5.0 8 OTD355 651733.1 4766561.0 251.28 3.06 0.08 21 2 1 973 5.0 8 OTD355 651732.1 4766562.5 246.60 2.38 0.07 7 2 1 978 5.0 8 OTD355 651731.1 4766564.0 241.93 3.08 0.07 5 2 1 983 5.0 8 OTD355 651730.3 4766566.0 237.26 2.76 0.06 5 2 1 988 5.0 8 OTD355 651729.3 4766567.5 232.58 5.24 0.21 5 2 1 993 5.0 8 OTD355 651728.3 4766569.0 227.91 3.67 0.10 21 2 1 998 5.0 8 OTD355 651727.6 4766570.0 224.64 3.30 0.11 32 2 1 1000 2.0 8 OTD355 651726.9 4766571.0 221.37 1.52 0.14 140 5 1 1005 5.0 8 OTD355 651725.9 4766572.5 216.69 1.43 0.16 164 5 1 1010 5.0 8 OTD355 651724.9 4766574.0 212.02 1.48 0.20 157 5 1 1015 5.0 8 OTD355 651724.0 4766575.5 207.34 1.16 0.09 123 5 1 1020 5.0 8 OTD355 651723.1 4766577.0 202.67 0.95 0.10 162 5 1 1025 5.0 8 OTD355 651722.1 4766578.5 197.99 1.41 0.12 87 5 1 1030 5.0 8 OTD355 651721.1 4766580.0 193.32 1.35 0.15 94 5 1 1035 5.0 8 OTD355 651720.2 4766581.5 188.65 1.41 0.13 81 5 1 1040 5.0 8 OTD355 651719.3 4766583.0 183.97 1.00 0.09 54 5 1 1045 5.0 8 OTD355 651718.4 4766584.5 179.30 1.09 0.09 64 5 1 1050 5.0 8 OTD355 651717.6 4766586.0 174.63 1.14 0.09 46 5 1 1055 5.0 8 OTD355 651716.8 4766587.5 169.96 1.05 0.09 77 5 1 1060 5.0 8 OTD355 651715.8 4766589.5 165.29 1.03 0.13 65 5 1 1065 5.0 8 OTD355 651714.9 4766591.5 160.62 0.69 0.08 58 5 1 1070 5.0 8 OTD355 651714.1 4766593.0 155.94 1.24 0.18 103 5 1 1075 5.0 8 OTD355A 651665.6 4766528.5 462.04 0.64 0.08 68 7 7 807 5.0 8 OTD355A 651662.6 4766530.0 458.50 0.79 0.09 38 7 7 812 5.0 8 OTD355A 651657.1 4766533.5 452.13 0.72 0.10 20 7 7 820 3.0 8 OTD355A 651654.7 4766535.0 449.29 1.32 0.19 137 5 7 825 5.0 8 OTD355A 651651.6 4766537.0 445.75 1.30 0.10 62 5 7 830 5.0 8 OTD355A 651648.6 4766538.5 442.20 0.78 0.04 11 5 7 835 5.0 8 OTD355A 651645.6 4766540.5 438.65 1.87 0.08 22 5 7 840 5.0 8 OTD355A 651642.6 4766542.0 435.09 2.31 0.14 25 5 7 845 5.0 8 OTD355A 651639.5 4766544.0 431.53 1.66 0.08 13 5 7 850 5.0 8 OTD355A 651636.5 4766545.5 427.97 1.59 0.07 18 5 7 855 5.0 8 OTD355A 651633.4 4766547.5 424.41 1.50 0.09 22 5 7 860 5.0 8 OTD355A 651630.4 4766549.0 420.84 2.19 0.10 17 5 7 865 5.0 8 OTD355A 651627.3 4766550.5 417.27 0.76 0.06 7 5 7 870 5.0 8 OTD355A 651624.3 4766552.0 413.70 1.92 0.11 33 5 7 875 5.0 8 OTD355A 651618.3 4766556.0 406.55 0.92 0.14 44 5 7 885 5.0 8 OTD355A 651615.4 4766557.5 402.97 1.38 0.11 23 5 7 890 5.0 8 OTD355A 651612.4 4766559.5 399.39 1.49 0.18 35 5 7 895 5.0 8 OTD355A 651566.5 4766586.0 344.63 0.98 0.15 158 5 1 971 5.0 8 OTD355A 651563.4 4766587.5 341.01 1.27 0.15 164 5 1 976 5.0 8 OTD355A 651560.3 4766589.0 337.38 0.90 0.17 129 7 1 981 5.0 8 OTD355A 651538.1 4766600.0 310.89 1.01 0.17 130 6 14 1016 2.0 8 OTD355A 651535.9 4766601.0 308.34 0.85 0.14 125 7 1 1021 5.0 8 OTD355A 651533.0 4766602.5 304.71 0.71 0.13 173 7 1 1026 5.0 8 OTD355A 651527.1 4766606.0 297.44 0.77 0.10 74 7 1 1036 5.0 8 OTD355A 651524.1 4766607.5 293.80 0.61 0.09 77 7 1 1041 5.0 8 OTD355A 651521.8 4766609.0 290.89 0.70 0.09 132 7 1 1044 3.0 8 OTD355A 651502.4 4766622.0 266.18 0.70 0.06 126 10 1 1079 5.0 8 OTD355A 651488.0 4766631.0 247.83 0.60 0.07 51 10 1 1104 5.0 8 OTD355A 651470.6 4766641.0 225.65 0.73 0.17 65 10 1 1134 5.0 8 OTD355A 651419.1 4766671.5 159.76 0.76 0.05 135 7 1 1223 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD355A 651416.3 4766673.5 156.08 0.68 0.05 73 7 1 1228 5.0 8 OTD355A 651413.3 4766675.0 152.39 0.76 0.09 131 7 1 1233 5.0 8 OTD355A 651410.4 4766676.5 148.70 0.87 0.13 105 7 1 1238 5.0 8 OTD355A 651407.4 4766678.0 145.03 0.99 0.14 85 7 1 1243 5.0 8 OTD355A 651404.6 4766680.0 141.35 0.83 0.24 94 7 1 1248 5.0 8 OTD355A 651401.6 4766681.5 137.67 0.93 0.17 171 7 1 1253 5.0 8 OTD355A 651398.6 4766683.5 134.01 1.34 0.17 188 7 1 1258 5.0 8 OTD355A 651395.7 4766685.0 130.34 1.13 0.38 136 7 1 1263 5.0 8 OTD355A 651392.8 4766686.5 126.68 0.94 0.34 126 7 1 1268 5.0 8 OTD355A 651389.8 4766688.5 123.04 1.03 1.37 236 7 1 1273 5.0 8 OTD355A 651386.9 4766690.0 119.41 0.99 0.15 94 7 1 1278 5.0 8 OTD355A 651383.9 4766692.0 115.77 0.91 0.30 78 7 1 1283 5.0 8 OTD355B 651711.9 4766535.5 393.00 1.05 0.05 20 5 7 843 5.0 8 OTD355B 651710.1 4766537.5 388.73 1.31 0.04 15 5 7 848 5.0 8 OTD355B 651708.2 4766539.5 384.50 0.83 0.02 7 5 7 853 5.0 8 OTD355B 651706.3 4766541.5 380.31 0.89 0.04 7 5 7 858 5.0 8 OTD355B 651704.3 4766543.5 376.12 1.90 0.07 7 5 1 863 5.0 8 OTD355B 651702.4 4766545.5 371.92 1.78 0.05 7 5 1 868 5.0 8 OTD355B 651700.7 4766547.0 368.15 1.63 0.04 18 5 1 872 4.0 8 OTD355B 651677.2 4766571.5 315.77 1.54 0.07 11 5 1 935 5.0 8 OTD355B 651675.4 4766573.5 311.57 1.08 0.04 13 5 1 940 5.0 8 OTD355B 651673.6 4766575.5 307.37 1.30 0.08 18 5 1 945 5.0 8 OTD355B 651671.8 4766577.5 303.17 1.13 0.05 13 5 1 950 5.0 8 OTD355B 651669.9 4766579.5 298.97 1.00 0.18 25 5 1 955 5.0 8 OTD355B 651668.1 4766581.5 294.77 0.90 0.16 35 5 1 960 5.0 8 OTD355B 651666.3 4766583.5 290.56 1.15 0.09 44 5 1 965 5.0 8 OTD355B 651664.5 4766585.5 286.36 2.05 0.19 35 5 1 970 5.0 8 OTD355B 651662.7 4766587.5 282.15 1.04 0.06 22 5 1 975 5.0 8 OTD355B 651660.9 4766589.5 277.95 1.02 0.05 52 5 1 980 5.0 8 OTD355B 651659.1 4766591.5 273.74 1.44 0.17 94 5 1 985 5.0 8 OTD355B 651657.3 4766593.5 269.53 1.05 0.10 134 5 1 990 5.0 8 OTD355B 651655.6 4766595.5 265.32 1.02 0.09 85 5 1 995 5.0 8 OTD355B 651653.8 4766597.5 261.11 1.05 0.15 76 5 1 1000 5.0 8 OTD355B 651651.9 4766600.0 256.90 1.23 0.25 84 5 1 1005 5.0 8 OTD355B 651650.1 4766602.0 252.69 0.97 0.15 69 5 1 1010 5.0 8 OTD355B 651648.3 4766604.0 248.47 1.19 0.39 56 5 1 1015 5.0 8 OTD355B 651646.5 4766606.0 244.26 0.87 0.12 44 5 1 1020 5.0 8 OTD355B 651644.8 4766608.0 240.04 1.17 0.11 141 5 1 1025 5.0 8 OTD355B 651642.9 4766610.0 235.82 1.06 0.19 184 5 1 1030 5.0 8 OTD355B 651641.2 4766612.0 231.61 0.62 0.12 60 7 1 1035 5.0 8 OTD355B 651635.8 4766618.0 218.93 1.25 0.19 101 7 1 1050 5.0 8 OTD355B 651634.3 4766620.0 215.12 0.78 0.16 135 7 1 1054 4.0 8 OTD355B 651633.2 4766621.0 212.58 0.70 0.14 36 6 14 1056 2.0 8 OTD355C 651816.6 4766443.0 383.55 0.91 0.06 10 7 7 810 2.0 8 OTD355C 651816.6 4766443.0 380.05 1.04 0.10 14 5 7 815 5.0 8 OTD355C 651816.6 4766443.0 375.05 0.82 0.03 9 5 7 820 5.0 8 OTD355C 651816.5 4766443.0 370.05 0.91 0.01 19 5 7 825 5.0 8 OTD355C 651816.4 4766443.0 365.05 1.34 0.06 11 5 7 830 5.0 8 OTD355C 651816.4 4766443.5 361.56 1.80 0.13 19 5 7 832 2.0 8 OTD355C 651816.4 4766443.5 358.06 2.13 0.17 12 2 7 837 5.0 8 OTD355C 651816.3 4766443.5 353.06 0.63 0.08 9 2 7 842 5.0 8 OTD355C 651816.3 4766443.5 348.06 3.46 0.37 21 2 7 847 5.0 8 OTD355C 651816.2 4766443.5 344.06 2.18 0.28 26 2 7 850 3.0 8 OTD355C 651816.1 4766444.5 335.06 0.64 0.06 13 5 7 860 5.0 8 OTD355C 651816.0 4766444.5 330.07 1.28 0.15 12 5 7 865 5.0 8 OTD355C 651815.9 4766444.5 325.07 0.90 0.09 18 5 7 870 5.0 8 OTD355C 651815.8 4766444.5 310.07 0.99 0.12 27 5 1 885 5.0 8 OTD355C 651815.7 4766444.5 306.07 0.78 0.13 14 5 1 888 3.0 8 OTD355C 651815.6 4766444.5 302.58 0.72 0.10 30 7 1 892 4.0 8 OTD355C 651815.6 4766444.5 298.58 0.63 0.10 30 6 14 896 4.0 8 OTD355C 651815.0 4766446.0 254.09 0.76 0.09 58 6 14 941 5.0 8 OTD355C 651814.9 4766446.0 249.09 0.81 0.09 23 6 14 946 5.0 8 OTD355C 651814.9 4766446.5 244.09 0.66 0.08 24 6 14 951 5.0 8 OTD355C 651814.8 4766446.5 234.09 0.64 0.18 56 6 14 961 5.0 8 OTD355C 651814.7 4766446.5 229.09 1.22 0.27 42 6 14 966 5.0 8 OTD355C 651814.6 4766447.0 224.10 0.82 0.25 29 6 14 971 5.0 8 OTD363 651419.1 4766796.0 411.98 1.10 0.13 73 7 7 829 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD363 651418.1 4766798.5 407.74 0.87 0.03 52 7 7 834 5.0 8 OTD363 651416.3 4766804.0 399.29 1.06 0.12 88 7 7 844 5.0 8 OTD363 651415.2 4766806.5 395.07 0.73 0.08 84 7 7 849 5.0 8 OTD363 651413.1 4766811.0 386.66 0.78 0.02 62 7 1 859 5.0 8 OTD363 651412.1 4766814.0 382.48 0.80 0.08 69 7 1 864 5.0 8 OTD363 651410.9 4766816.5 378.29 0.94 0.05 43 7 1 869 5.0 8 OTD363 651410.1 4766818.5 374.95 1.17 0.06 53 7 1 872 3.0 8 OTD367 651782.8 4766830.0 295.92 3.06 0.10 94 2 7 949 5.0 8 OTD367 651781.3 4766832.0 291.39 1.20 0.03 80 2 7 954 5.0 8 OTD367 651779.9 4766834.0 286.86 1.80 0.07 105 2 7 959 5.0 8 OTD367 651778.6 4766835.5 282.33 3.00 0.30 5 2 1 964 5.0 8 OTD367A 651750.5 4766876.0 469.96 0.94 0.02 16 5 7 835 5.0 8 OTD367A 651748.0 4766878.5 466.63 1.57 0.03 5 5 1 840 5.0 8 OTD367A 651745.5 4766881.5 463.30 1.56 0.03 5 5 1 845 5.0 8 OTD367A 651743.0 4766884.0 459.97 1.71 0.05 5 5 1 850 5.0 8 OTD367A 651740.5 4766887.0 456.66 0.94 0.04 18 5 1 855 5.0 8 OTD367A 651737.9 4766889.5 453.36 1.12 0.01 20 5 1 860 5.0 8 OTD367A 651735.4 4766892.5 450.07 1.27 0.03 14 5 1 865 5.0 8 OTD367A 651732.9 4766895.5 446.78 1.29 0.04 8 5 1 870 5.0 8 OTD367A 651730.5 4766898.0 443.50 0.72 0.01 5 5 1 875 5.0 8 OTD367A 651728.0 4766901.0 440.22 1.27 0.02 5 5 1 880 5.0 8 OTD367A 651725.5 4766904.0 436.93 1.65 0.04 8 5 1 885 5.0 8 OTD367A 651723.1 4766907.0 433.66 1.67 0.03 6 5 1 890 5.0 8 OTD367A 651720.8 4766910.0 430.39 1.76 0.04 7 5 1 895 5.0 8 OTD367A 651718.4 4766913.0 427.12 1.95 0.05 11 5 1 900 5.0 8 OTD367A 651715.9 4766916.0 423.86 1.37 0.04 5 5 1 905 5.0 8 OTD367A 651713.6 4766919.0 420.60 1.23 0.04 17 5 1 910 5.0 8 OTD367A 651711.3 4766922.0 417.34 1.45 0.05 5 5 1 915 5.0 8 OTD367A 651709.0 4766925.0 414.08 1.53 0.10 5 5 1 920 5.0 8 OTD367A 651707.4 4766927.0 411.80 1.87 0.12 25 5 1 922 2.0 8 OTD367A 651705.8 4766929.0 409.52 2.26 0.15 5 2 1 927 5.0 8 OTD367A 651703.4 4766932.0 406.27 2.22 0.08 5 2 1 932 5.0 8 OTD367A 651701.2 4766935.5 403.01 1.84 0.10 15 2 1 937 5.0 8 OTD367A 651698.9 4766938.5 399.76 2.06 0.10 6 2 1 942 5.0 8 OTD367A 651696.6 4766941.5 396.52 3.48 0.66 5 2 1 947 5.0 8 OTD367A 651694.3 4766944.0 393.27 2.27 0.22 9 2 1 952 5.0 8 OTD367A 651692.6 4766946.0 391.00 1.03 0.08 14 2 1 954 2.0 8 OTD367A 651691.1 4766948.5 388.73 1.02 0.07 64 5 1 959 5.0 8 OTD367A 651688.8 4766951.5 385.48 0.61 0.05 56 5 1 964 5.0 8 OTD367A 651686.4 4766954.0 382.24 1.56 0.07 32 5 1 969 5.0 8 OTD367A 651684.2 4766957.0 379.01 1.33 0.07 34 5 1 974 5.0 8 OTD367A 651682.1 4766960.0 376.11 0.80 0.07 68 5 1 978 4.0 8 OTD367A 651650.4 4767004.5 331.42 1.30 0.07 5 5 1 1049 5.0 8 OTD367A 651648.1 4767007.5 328.35 1.16 0.04 5 5 1 1054 5.0 8 OTD367A 651645.8 4767011.0 325.31 0.95 0.05 5 5 1 1059 5.0 8 OTD367A 651643.5 4767014.0 322.28 2.22 0.08 5 5 1 1064 5.0 8 OTD367A 651641.1 4767017.5 319.24 1.63 0.12 13 5 1 1069 5.0 8 OTD367A 651639.3 4767020.0 316.83 1.81 0.11 11 5 1 1072 3.0 8 OTD367A 651637.4 4767022.5 314.42 2.61 0.11 12 2 1 1077 5.0 8 OTD367A 651635.1 4767026.0 311.41 2.56 0.21 18 2 1 1082 5.0 8 OTD367A 651633.5 4767028.0 309.31 2.36 0.26 20 2 1 1084 2.0 8 OTD367A 651631.9 4767030.0 307.21 5.25 1.34 14 3 1 1089 5.0 8 OTD367A 651629.6 4767033.5 304.23 4.89 1.21 9 3 1 1094 5.0 8 OTD367A 651627.3 4767037.0 301.25 6.31 0.67 18 3 1 1099 5.0 8 OTD367A 651625.0 4767040.0 298.28 8.14 1.46 17 3 1 1104 5.0 8 OTD367A 651622.8 4767043.0 295.33 5.81 1.80 15 3 1 1109 5.0 8 OTD367A 651620.4 4767046.5 292.38 6.17 2.05 14 3 1 1114 5.0 8 OTD367A 651618.1 4767049.5 289.43 7.23 3.57 12 3 1 1119 5.0 8 OTD367A 651615.8 4767053.0 286.53 3.87 1.16 7 3 1 1124 5.0 8 OTD367A 651613.4 4767056.5 283.63 8.42 4.13 9 3 1 1129 5.0 8 OTD367A 651611.1 4767059.5 280.73 11.54 3.19 30 3 1 1134 5.0 8 OTD367A 651608.6 4767063.5 277.86 6.51 7.02 19 3 1 1139 5.0 8 OTD367A 651606.2 4767066.5 275.01 6.75 3.29 26 3 1 1144 5.0 8 OTD367A 651603.8 4767070.0 272.17 2.16 4.28 18 3 1 1149 5.0 8 OTD367A 651601.4 4767073.0 269.34 2.58 1.23 10 3 1 1154 5.0 8 OTD367A 651598.9 4767076.5 266.54 4.03 0.81 5 3 1 1159 5.0 8 OTD367A 651596.4 4767080.0 263.75 2.38 0.71 5 3 1 1164 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD367A 651593.9 4767083.0 260.96 2.78 0.65 12 3 1 1169 5.0 8 OTD367A 651591.4 4767086.5 258.19 4.25 1.20 8 3 1 1174 5.0 8 OTD367A 651588.9 4767089.5 255.43 3.46 0.86 34 3 1 1179 5.0 8 OTD367A 651586.4 4767093.0 252.67 1.82 0.49 9 3 1 1184 5.0 8 OTD367A 651583.9 4767096.0 249.92 0.73 0.25 20 3 1 1189 5.0 8 OTD367A 651581.4 4767099.5 247.19 3.23 0.84 19 3 1 1194 5.0 8 OTD367A 651578.9 4767102.5 244.46 3.84 1.37 21 3 1 1199 5.0 8 OTD367A 651576.3 4767106.0 241.74 2.98 1.67 32 3 1 1204 5.0 8 OTD367A 651574.5 4767108.5 239.85 3.72 1.24 72 3 1 1206 2.0 8 OTD367A 651520.9 4767179.0 183.15 0.95 0.08 54 5 1 1313 5.0 8 OTD367A 651518.5 4767182.5 180.45 1.33 0.15 156 5 1 1318 5.0 8 OTD367A 651516.1 4767186.0 177.75 1.48 0.18 122 5 1 1323 5.0 8 OTD367A 651513.8 4767189.5 175.05 1.74 0.20 154 5 1 1328 5.0 8 OTD367A 651511.3 4767193.0 172.35 1.33 0.12 92 5 1 1333 5.0 8 OTD367A 651508.9 4767196.0 169.65 0.94 0.12 97 5 1 1338 5.0 8 OTD367A 651506.5 4767199.5 166.94 0.97 0.07 57 5 1 1343 5.0 8 OTD367B 651753.8 4766844.0 348.43 2.88 0.09 16 2 1 917 5.0 8 OTD367B 651751.9 4766845.5 344.13 2.48 0.09 17 2 1 922 5.0 8 OTD367B 651749.9 4766847.0 339.84 2.03 0.10 10 2 1 927 5.0 8 OTD367B 651748.0 4766849.0 335.55 3.92 0.39 17 2 1 932 5.0 8 OTD367B 651746.1 4766850.5 331.25 2.64 0.13 5 2 1 937 5.0 8 OTD367B 651744.2 4766852.0 326.97 2.08 0.07 5 2 1 942 5.0 8 OTD367B 651742.3 4766854.0 322.68 0.67 0.02 5 2 1 947 5.0 8 OTD367B 651740.3 4766855.5 318.39 1.71 0.14 5 2 1 952 5.0 8 OTD367B 651738.4 4766857.5 314.10 7.28 0.40 8 2 1 957 5.0 8 OTD367B 651736.4 4766859.0 309.82 4.20 0.16 5 2 1 962 5.0 8 OTD367B 651734.7 4766860.5 305.96 5.63 0.22 10 2 1 966 4.0 8 OTD367B 651732.9 4766862.5 302.11 4.92 0.46 19 3 1 971 5.0 8 OTD367B 651731.0 4766864.5 297.85 5.09 0.41 31 3 1 976 5.0 8 OTD367B 651729.1 4766866.0 293.59 5.89 0.46 28 3 1 981 5.0 8 OTD367B 651727.1 4766868.0 289.33 4.58 0.27 22 3 1 986 5.0 8 OTD367B 651725.1 4766869.5 285.09 3.93 0.27 31 3 1 991 5.0 8 OTD367B 651723.2 4766871.5 280.86 4.27 0.31 52 3 1 996 5.0 8 OTD367B 651721.2 4766873.0 276.62 4.93 0.48 183 3 1 1001 5.0 8 OTD367B 651718.8 4766875.0 271.57 3.50 0.29 5 2 1 1007 5.0 8 OTD367B 651716.8 4766877.0 267.36 3.00 0.26 8 2 1 1012 5.0 8 OTD367B 651714.9 4766879.0 263.15 3.32 0.28 5 2 1 1017 5.0 8 OTD367B 651712.9 4766881.0 258.95 2.75 0.28 12 2 1 1022 5.0 8 OTD367B 651710.9 4766883.0 254.74 2.18 0.16 5 2 1 1027 5.0 8 OTD367B 651708.6 4766885.0 249.69 1.76 0.12 8 5 1 1033 5.0 8 OTD367B 651706.6 4766886.5 245.49 1.79 0.08 7 5 1 1038 5.0 8 OTD367B 651704.7 4766888.5 241.28 1.52 0.09 9 5 1 1043 5.0 8 OTD367B 651702.8 4766890.5 237.08 1.10 0.09 7 5 1 1048 5.0 8 OTD367B 651700.8 4766892.0 232.88 1.80 0.14 18 5 1 1053 5.0 8 OTD367B 651698.9 4766894.0 228.68 1.32 0.10 15 5 1 1058 5.0 8 OTD367B 651697.0 4766896.0 224.48 1.01 0.10 14 5 1 1063 5.0 8 OTD367B 651695.1 4766898.0 220.27 1.04 0.07 15 5 1 1068 5.0 8 OTD367B 651693.3 4766900.0 216.07 1.18 0.07 13 5 1 1073 5.0 8 OTD367B 651691.3 4766902.0 211.86 1.45 0.14 15 5 1 1078 5.0 8 OTD367B 651689.4 4766904.0 207.65 1.92 0.11 32 5 1 1083 5.0 8 OTD367B 651687.5 4766905.5 203.44 1.87 0.14 34 5 1 1088 5.0 8 OTD367B 651685.6 4766907.5 199.23 1.86 0.17 34 5 1 1093 5.0 8 OTD367B 651683.6 4766909.5 195.01 1.90 0.18 42 5 1 1098 5.0 8 OTD367B 651681.7 4766911.0 190.80 1.41 0.22 19 5 1 1103 5.0 8 OTD367B 651679.8 4766913.0 186.58 1.43 0.11 28 5 1 1108 5.0 8 OTD367B 651677.8 4766914.5 182.36 0.97 0.05 29 5 1 1113 5.0 8 OTD367B 651669.8 4766922.5 164.64 1.18 0.11 29 2 1 1134 5.0 8 OTD367B 651667.8 4766924.5 160.42 2.24 0.19 38 2 1 1139 5.0 8 OTD367B 651661.8 4766931.0 146.93 2.33 0.18 47 2 1 1155 5.0 8 OTD367B 651659.9 4766933.0 142.71 2.11 0.15 36 2 1 1160 5.0 8 OTD367B 651658.6 4766934.0 139.76 2.16 0.31 27 2 1 1162 2.0 8 OTD367B 651657.3 4766935.5 136.81 1.35 0.08 32 5 1 1167 5.0 8 OTD367B 651655.4 4766937.5 132.59 1.64 0.11 19 5 1 1172 5.0 8 OTD367D 651890.7 4766735.0 203.75 0.75 0.03 35 10 7 996.67 5.0 8 OTD367D 651890.4 4766735.0 198.78 0.73 0.04 23 10 7 1001.67 5.0 8 OTD367D 651889.6 4766736.0 189.52 0.82 0.03 24 7 7 1011 5.0 8 OTD367D 651889.3 4766736.5 184.56 1.17 0.04 17 7 7 1016 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD367D 651888.8 4766737.5 179.60 0.95 0.01 32 7 7 1021 5.0 8 OTD367D 651888.4 4766738.0 174.64 0.86 0.02 26 7 7 1026 5.0 8 OTD367D 651888.0 4766738.5 169.67 0.79 0.01 19 7 7 1031 5.0 8 OTD367D 651887.6 4766738.5 164.71 0.74 0.02 28 7 7 1036 5.0 8 OTD367D 651887.3 4766739.0 160.24 0.70 0.04 36 7 7 1040 4.0 8 OTD367D 651886.9 4766739.0 155.78 1.10 0.04 25 5 7 1045 5.0 8 OTD367D 651886.4 4766739.5 150.82 1.22 0.04 24 5 7 1050 5.0 8 OTD367D 651886.1 4766740.5 145.85 1.37 0.01 31 5 7 1055 5.0 8 OTD367D 651885.6 4766740.5 140.89 1.61 0.02 38 5 7 1060 5.0 8 OTD367D 651885.2 4766741.0 135.93 1.27 0.04 39 5 7 1065 5.0 8 OTD367D 651884.8 4766741.5 130.97 1.25 0.05 31 5 7 1070 5.0 8 OTD367D 651884.4 4766742.0 126.00 0.84 0.02 13 5 7 1075 5.0 8 OTD367D 651883.9 4766742.5 121.04 1.42 0.01 26 5 7 1080 5.0 8 OTD367D 651883.5 4766743.0 116.08 1.36 0.02 58 5 7 1085 5.0 8 OTD367D 651883.1 4766743.5 111.11 1.29 0.03 56 5 7 1090 5.0 8 OTD367D 651882.7 4766744.0 106.15 1.20 0.09 18 5 7 1095 5.0 8 OTD367D 651882.3 4766744.0 101.18 1.32 0.02 9 5 7 1100 5.0 8 OTD367D 651881.8 4766745.0 96.22 0.98 0.04 13 5 7 1105 5.0 8 OTD367D 651881.4 4766745.5 91.25 0.80 0.04 23 5 7 1110 5.0 8 OTD367D 651881.1 4766745.5 86.29 1.89 0.08 25 5 7 1115 5.0 8 OTD367D 651880.7 4766746.0 81.32 1.07 0.02 25 5 7 1120 5.0 8 OTD367D 651879.9 4766747.0 71.39 1.19 0.05 28 5 7 1130 5.0 8 OTD367D 651879.5 4766747.5 66.43 1.55 0.07 18 5 7 1135 5.0 8 OTD367D 651879.1 4766748.0 61.46 0.92 0.05 23 5 1 1140 5.0 8 OTD367D 651878.8 4766748.5 56.50 0.84 0.06 5 5 1 1145 5.0 8 OTD367D 651877.9 4766749.0 46.57 1.28 0.03 32 5 1 1155 5.0 8 OTD367D 651877.5 4766749.5 41.61 1.16 0.02 27 5 1 1160 5.0 8 OTD367D 651877.1 4766750.0 36.64 1.46 0.04 27 5 1 1165 5.0 8 OTD367D 651876.8 4766750.5 31.68 1.94 0.04 18 5 1 1170 5.0 8 OTD367D 651875.6 4766751.5 16.79 0.80 0.02 13 7 1 1185 5.0 8 OTD367D 651875.3 4766752.0 11.83 1.76 0.09 14 7 1 1190 5.0 8 OTD367D 651874.9 4766752.5 6.86 0.90 0.34 5 7 1 1195 5.0 8 OTD367D 651874.6 4766753.0 1.90 0.64 0.39 5 7 1 1200 5.0 8 OTD367D 651874.1 4766754.5 -7.03 0.88 0.23 25 6 14 1209 5.0 8 OTD367D 651873.8 4766755.0 -11.99 0.78 0.31 15 6 14 1214 5.0 8 OTD367D 651873.4 4766755.5 -16.96 0.87 0.15 223 6 14 1219 5.0 8 OTD367D 651872.7 4766756.5 -26.88 0.80 0.17 22 6 14 1229 5.0 8 OTD367D 651872.3 4766757.0 -31.84 0.70 0.16 16 6 14 1234 5.0 8 OTD367D 651872.0 4766757.5 -36.80 1.51 0.22 20 6 14 1239 5.0 8 OTD367D 651871.6 4766758.0 -41.76 1.39 0.22 5 6 14 1244 5.0 8 OTD367D 651870.4 4766759.5 -56.64 0.75 0.10 6 6 14 1259 5.0 8 OTD367D 651870.1 4766759.5 -61.60 0.67 0.17 6 6 14 1264 5.0 8 OTD367D 651869.6 4766760.0 -66.56 0.80 0.22 13 6 14 1269 5.0 8 OTD367D 651869.3 4766760.5 -71.22 1.47 0.15 26 6 14 1273.4 4.4 8 OTD367E 651831.8 4766770.0 344.39 0.94 0.01 145 7 7 874 2.0 8 OTD367E 651830.8 4766771.0 341.13 1.40 0.03 19 5 7 879 5.0 8 OTD367E 651829.4 4766772.0 336.49 1.22 0.09 18 5 7 884 5.0 8 OTD367E 651827.9 4766773.5 331.85 2.28 0.31 9 5 7 889 5.0 8 OTD367E 651826.6 4766775.0 327.22 0.99 0.02 19 5 7 894 5.0 8 OTD367E 651825.1 4766776.0 322.59 1.06 0.02 14 5 7 899 5.0 8 OTD367E 651823.7 4766777.5 317.96 1.53 0.01 16 5 7 904 5.0 8 OTD367E 651822.3 4766778.5 313.34 1.50 0.02 15 5 7 909 5.0 8 OTD367E 651820.8 4766780.0 308.72 0.63 0.01 8 5 7 914 5.0 8 OTD367E 651819.4 4766781.0 304.09 3.76 0.05 19 2 7 919 5.0 8 OTD367E 651817.9 4766782.5 299.48 2.47 0.09 25 2 7 924 5.0 8 OTD367E 651816.5 4766783.5 294.86 0.96 0.08 13 2 7 929 5.0 8 OTD367E 651815.1 4766785.0 290.25 0.90 0.05 30 2 7 934 5.0 8 OTD367E 651813.6 4766786.0 285.63 3.80 0.46 47 2 7 939 5.0 8 OTD367E 651812.1 4766787.5 281.02 2.89 0.13 23 2 7 944 5.0 8 OTD367E 651810.7 4766789.0 276.41 3.53 0.14 31 2 1 949 5.0 8 OTD367E 651809.3 4766789.5 271.80 5.33 0.27 49 2 1 954 5.0 8 OTD367E 651807.8 4766791.0 267.20 6.04 0.49 161 2 1 959 5.0 8 OTD367E 651806.4 4766792.5 262.59 5.57 0.37 98 2 1 964 5.0 8 OTD367E 651804.9 4766794.0 257.98 3.69 0.26 50 2 1 969 5.0 8 OTD367E 651803.8 4766795.0 254.30 3.11 0.17 69 2 1 972 3.0 8 OTD367E 651802.6 4766796.0 250.62 4.92 0.36 17 3 1 977 5.0 8 OTD367E 651801.1 4766797.0 246.02 9.19 0.58 5 3 1 982 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD367E 651799.7 4766798.5 241.42 5.01 0.63 5 3 1 987 5.0 8 OTD367E 651798.3 4766799.5 236.82 4.61 0.73 5 3 1 992 5.0 8 OTD367E 651796.8 4766801.0 232.22 4.45 0.70 5 3 1 997 5.0 8 OTD367E 651795.3 4766802.0 227.62 4.92 0.82 5 3 1 1002 5.0 8 OTD367E 651794.3 4766803.0 224.40 4.27 0.70 10 3 1 1004 2.0 8 OTD367E 651793.3 4766803.5 221.19 0.81 0.12 12 2 1 1009 5.0 8 OTD367E 651791.8 4766805.0 216.59 2.57 0.33 8 2 1 1014 5.0 8 OTD367E 651790.3 4766806.5 212.00 2.33 0.24 7 2 1 1019 5.0 8 OTD367E 651788.9 4766807.5 207.41 2.77 0.30 5 2 1 1024 5.0 8 OTD367E 651787.4 4766809.0 202.83 3.96 0.35 5 2 1 1029 5.0 8 OTD367E 651785.9 4766810.0 198.26 3.41 0.39 5 2 1 1034 5.0 8 OTD367E 651784.4 4766811.5 193.68 3.61 0.36 5 2 1 1039 5.0 8 OTD367E 651782.9 4766813.0 189.12 3.87 0.38 5 2 1 1044 5.0 8 OTD367E 651781.4 4766814.5 184.56 3.07 0.38 5 2 1 1049 5.0 8 OTD367E 651779.9 4766815.5 180.00 1.32 0.23 5 2 1 1054 5.0 8 OTD367E 651778.8 4766816.5 176.82 2.00 0.29 18 2 1 1056 2.0 8 OTD367E 651777.7 4766817.5 173.64 4.10 0.43 48 3 1 1061 5.0 8 OTD367E 651776.2 4766819.0 169.10 5.31 1.25 92 3 1 1066 5.0 8 OTD367E 651774.6 4766820.5 164.56 5.07 0.87 52 3 1 1071 5.0 8 OTD367E 651773.1 4766822.0 160.02 5.99 0.95 7 3 1 1076 5.0 8 OTD367E 651771.6 4766823.5 155.48 4.36 0.45 28 3 1 1081 5.0 8 OTD367E 651769.8 4766825.5 150.05 2.70 0.21 11 2 1 1087 5.0 8 OTD367E 651768.2 4766827.0 145.53 3.34 0.30 9 2 1 1092 5.0 8 OTD367E 651766.6 4766828.0 141.00 2.02 0.18 5 2 1 1097 5.0 8 OTD367E 651765.1 4766829.5 136.47 3.38 0.29 11 2 1 1102 5.0 8 OTD367E 651763.5 4766831.0 131.97 3.39 0.31 31 2 1 1107 5.0 8 OTD367E 651761.9 4766832.5 127.46 3.03 0.21 43 2 1 1112 5.0 8 OTD367E 651760.4 4766834.0 122.95 3.81 0.31 31 2 1 1117 5.0 8 OTD367E 651758.4 4766836.0 117.55 1.66 0.14 42 5 1 1123 5.0 8 OTD367E 651756.9 4766837.5 113.05 1.72 0.09 30 5 1 1128 5.0 8 OTD367E 651755.3 4766839.0 108.56 1.28 0.05 15 5 1 1133 5.0 8 OTD367E 651753.8 4766840.5 104.06 1.51 0.14 35 5 1 1138 5.0 8 OTD367E 651752.2 4766842.0 99.58 1.55 0.15 35 5 1 1143 5.0 8 OTD367E 651750.6 4766843.5 95.09 1.12 0.18 66 5 1 1148 5.0 8 OTD367E 651748.9 4766845.0 90.61 1.57 0.12 45 5 1 1153 5.0 8 OTD367E 651747.4 4766846.5 86.14 1.89 0.15 56 5 1 1158 5.0 8 OTD367E 651745.8 4766848.5 81.67 1.53 0.18 20 5 1 1163 5.0 8 OTD367E 651744.2 4766850.0 77.19 1.59 0.24 29 5 1 1168 5.0 8 OTD367E 651742.6 4766851.5 72.73 1.88 0.15 134 5 1 1173 5.0 8 OTD367E 651741.0 4766853.0 68.28 0.64 0.17 62 5 1 1178 5.0 8 OTD367E 651739.4 4766854.5 63.82 1.10 0.11 139 5 1 1183 5.0 8 OTD367E 651737.9 4766856.5 59.37 1.63 0.28 85 5 1 1188 5.0 8 OTD367E 651736.3 4766858.5 54.93 1.29 0.22 110 5 1 1193 5.0 8 OTD367E 651733.1 4766861.5 46.05 1.44 0.35 75 5 1 1203 5.0 8 OTD367E 651731.8 4766863.0 42.51 0.70 0.16 50 5 1 1206 3.0 8 OTD367F 651766.6 4766828.0 378.84 1.13 0.03 57 5 7 896 4.0 8 OTD367F 651764.1 4766831.0 376.14 2.89 0.13 15 2 7 901 5.0 8 OTD367F 651761.3 4766833.5 373.15 3.04 0.11 29 2 7 906 5.0 8 OTD367F 651758.6 4766836.5 370.16 3.51 0.10 22 2 1 911 5.0 8 OTD367F 651755.9 4766839.5 367.18 2.06 0.06 20 2 1 916 5.0 8 OTD367F 651753.1 4766842.5 364.20 4.00 0.17 75 2 1 921 5.0 8 OTD367F 651750.4 4766845.0 361.22 2.69 0.07 7 2 1 926 5.0 8 OTD367F 651747.7 4766848.0 358.24 1.08 0.01 13 2 1 931 5.0 8 OTD367F 651742.3 4766854.0 352.31 1.64 0.08 7 2 1 941 5.0 8 OTD367F 651739.6 4766857.0 349.35 1.35 0.06 9 2 1 946 5.0 8 OTD367F 651736.8 4766860.0 346.38 1.88 0.03 5 2 1 951 5.0 8 OTD367F 651734.1 4766863.0 343.44 2.41 0.06 5 2 1 956 5.0 8 OTD367F 651731.4 4766866.0 340.49 1.81 0.07 5 2 1 961 5.0 8 OTD367F 651728.8 4766869.0 337.54 2.71 0.22 5 2 1 966 5.0 8 OTD367F 651725.9 4766872.0 334.61 2.77 0.19 5 2 1 971 5.0 8 OTD367F 651723.1 4766874.5 331.70 2.35 0.20 5 2 1 976 5.0 8 OTD367F 651720.2 4766877.5 328.79 2.29 0.43 5 2 1 981 5.0 8 OTD367F 651717.3 4766881.0 325.87 4.25 0.51 5 2 1 986 5.0 8 OTD367F 651714.3 4766883.5 322.99 3.60 0.32 5 2 1 991 5.0 8 OTD367F 651711.2 4766886.5 320.12 2.06 0.27 5 2 1 996 5.0 8 OTD367F 651708.2 4766889.0 317.23 3.12 0.22 12 2 1 1001 5.0 8 OTD367F 651704.9 4766891.5 314.39 3.57 0.29 24 2 1 1006 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD367F 651701.7 4766894.0 311.55 3.73 0.37 17 2 1 1011 5.0 8 OTD367F 651698.4 4766896.5 308.71 1.49 0.14 16 2 1 1016 5.0 8 OTD367F 651695.2 4766899.0 305.87 2.50 0.28 8 2 1 1021 5.0 8 OTD367F 651691.9 4766901.5 303.02 2.42 0.18 16 2 1 1026 5.0 8 OTD367F 651688.6 4766904.0 300.22 3.28 0.30 14 2 1 1031 5.0 8 OTD367F 651685.4 4766906.5 297.42 2.82 0.15 10 2 1 1036 5.0 8 OTD367F 651675.5 4766914.0 289.03 1.63 0.19 26 2 1 1051 5.0 8 OTD367F 651672.1 4766916.5 286.27 0.92 0.11 8 2 1 1056 5.0 8 OTD367F 651668.8 4766919.0 283.52 2.27 0.25 30 2 1 1061 5.0 8 OTD367F 651665.4 4766921.0 280.77 2.44 0.16 17 2 1 1066 5.0 8 OTD367F 651662.1 4766923.5 278.04 2.10 0.18 24 2 1 1071 5.0 8 OTD367F 651658.8 4766926.5 275.31 2.40 0.28 45 2 1 1076 5.0 8 OTD367F 651655.4 4766929.0 272.61 2.14 0.14 67 2 1 1081 5.0 8 OTD367F 651652.1 4766931.5 269.91 2.01 0.10 45 2 1 1086 5.0 8 OTD367F 651648.8 4766934.0 267.21 2.46 0.13 22 2 1 1091 5.0 8 OTD367F 651645.8 4766936.5 264.78 1.02 0.08 22 5 1 1094 2.0 8 OTD367F 651624.3 4766952.5 248.03 1.54 0.15 32 5 1 1127 5.0 8 OTD367F 651620.8 4766955.0 245.36 1.61 0.19 54 5 1 1132 5.0 8 OTD367F 651456.1 4767078.0 112.97 0.99 0.14 167 5 1 1377 5.0 8 OTD367F 651452.8 4767080.5 110.24 1.53 0.15 167 5 1 1382 5.0 8 OTD367F 651449.4 4767083.5 107.51 1.81 0.18 169 5 1 1387 5.0 8 OTD367F 651446.1 4767086.0 104.77 1.39 0.14 107 5 1 1392 5.0 8 OTD367F 651442.8 4767088.5 102.03 1.31 0.12 163 5 1 1397 5.0 8 OTD367F 651439.4 4767090.5 99.30 0.97 0.09 213 5 1 1402 5.0 8 OTD367F 651436.1 4767093.0 96.55 0.77 0.09 163 5 1 1407 5.0 8 OTD367F 651432.7 4767095.5 93.81 0.72 0.09 205 5 1 1412 5.0 8 OTD367F 651429.3 4767098.5 91.07 0.77 0.08 211 5 1 1417 5.0 8 OTD367F 651425.9 4767101.0 88.31 0.79 0.08 157 5 1 1422 5.0 8 OTD367F 651422.6 4767103.5 85.56 1.34 0.20 148 5 1 1427 5.0 8 OTD367F 651419.3 4767106.0 82.80 1.56 0.22 132 5 1 1432 5.0 8 OTD367F 651416.1 4767108.0 80.05 1.66 0.22 191 5 1 1437 5.0 8 OTD367F 651412.8 4767110.5 77.29 2.30 0.40 169 5 1 1442 5.0 8 OTD367F 651409.6 4767113.5 74.52 1.86 0.36 82 5 1 1447 5.0 8 OTD367F 651406.3 4767116.5 71.76 1.73 0.27 115 5 1 1452 5.0 8 OTD367F 651403.1 4767119.0 68.99 1.73 0.26 93 5 1 1457 5.0 8 OTD367F 651399.3 4767122.5 65.66 1.84 0.21 66 4 14 1463 5.0 8 OTD367F 651396.1 4767124.5 62.89 1.74 0.24 71 4 14 1468 5.0 8 OTD367F 651392.8 4767127.5 60.11 1.34 0.15 85 4 14 1473 5.0 8 OTD367F 651389.6 4767130.0 57.33 1.25 0.20 60 4 14 1478 5.0 8 OTD367F 651386.4 4767132.5 54.55 1.31 0.27 46 4 14 1483 5.0 8 OTD367F 651383.1 4767135.5 51.77 1.75 0.94 41 4 14 1488 5.0 8 OTD367F 651380.3 4767137.5 49.26 1.27 1.58 67 4 14 1492 4.0 8 OTD367F 651377.4 4767140.0 46.75 0.78 0.26 41 6 14 1497 5.0 8 OTD367F 651374.1 4767143.0 43.96 0.65 0.19 31 6 14 1502 5.0 8 OTD367F 651370.9 4767145.5 41.17 0.90 0.22 25 6 14 1507 5.0 8 OTD367G 651757.0 4766838.5 355.67 1.89 0.08 16 7 1 923 3.0 8 OTD367G 651754.8 4766842.0 351.95 1.13 0.05 5 5 1 928 4.0 8 OTD367G 651752.9 4766844.5 348.91 3.99 0.17 10 2 1 933 5.0 8 OTD367G 651750.8 4766848.0 345.52 4.11 0.24 5 2 1 938 5.0 8 OTD367G 651748.7 4766851.0 342.14 4.38 0.78 20 2 1 943 5.0 8 OTD367G 651746.6 4766854.0 338.75 4.33 0.39 21 2 1 948 5.0 8 OTD367G 651744.6 4766857.0 335.37 0.97 0.06 5 2 1 953 5.0 8 OTD367G 651740.3 4766863.0 328.59 3.51 0.09 5 2 1 963 5.0 8 OTD367G 651738.1 4766866.0 325.19 1.44 0.13 5 2 1 968 3.0 8 OTD367G 651725.7 4766884.5 305.06 2.50 0.96 19 3 1 997.67 3.7 8 OTD367G 651723.7 4766887.5 301.67 6.08 1.56 23 3 1 1002.67 5.0 8 OTD367G 651721.6 4766890.0 298.28 4.54 1.24 38 3 1 1007.67 5.0 8 OTD367G 651719.7 4766893.0 294.88 2.28 0.53 13 3 1 1012.67 5.0 8 OTD367G 651717.7 4766896.0 291.49 2.55 0.69 7 3 1 1017.67 5.0 8 OTD367G 651715.8 4766899.0 288.09 3.36 1.07 12 3 1 1022.67 5.0 8 OTD367G 651713.8 4766902.0 284.70 2.94 0.93 20 3 1 1027.67 5.0 8 OTD367G 651712.3 4766904.5 282.22 3.19 0.73 14 3 1 1030 2.3 8 OTD367G 651710.9 4766907.0 279.78 3.55 0.45 8 2 1 1035 5.0 8 OTD367G 651709.0 4766910.0 276.46 3.36 0.26 10 2 1 1040 5.0 8 OTD367G 651707.1 4766913.5 273.13 1.90 0.16 6 2 1 1045 5.0 8 OTD367G 651705.1 4766916.5 269.80 1.64 0.11 6 2 1 1050 5.0 8 OTD367G 651703.2 4766919.5 266.51 2.41 0.13 38 2 1 1055 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD367G 651701.3 4766922.5 263.26 3.14 0.22 52 2 1 1060 5.0 8 OTD367G 651699.4 4766926.0 260.01 2.72 0.18 25 2 14 1065 5.0 8 OTD367G 651697.6 4766929.5 256.77 3.16 0.21 33 2 14 1070 5.0 8 OTD367G 651695.7 4766932.5 253.56 2.82 0.15 43 2 14 1075 5.0 8 OTD367G 651693.8 4766936.0 250.36 2.34 0.15 36 2 14 1080 5.0 8 OTD367G 651691.9 4766939.5 247.14 2.64 0.24 42 2 14 1085 5.0 8 OTD367G 651690.0 4766943.0 244.00 2.29 0.13 28 2 14 1090 5.0 8 OTD367G 651688.1 4766946.5 240.85 1.93 0.15 43 2 14 1095 5.0 8 OTD367G 651686.2 4766950.0 237.71 1.89 0.17 42 2 14 1100 5.0 8 OTD367G 651684.3 4766953.0 234.59 2.01 0.11 30 2 14 1105 5.0 8 OTD367G 651682.4 4766956.5 231.50 2.19 0.29 62 2 14 1110 5.0 8 OTD367G 651680.5 4766960.0 228.41 1.96 0.19 38 2 14 1115 5.0 8 OTD367G 651678.6 4766963.5 225.32 1.88 0.22 47 2 14 1120 5.0 8 OTD367G 651676.7 4766967.0 222.28 1.64 0.15 32 4 14 1125 5.0 8 OTD367G 651674.8 4766970.5 219.25 1.92 0.25 24 4 14 1130 5.0 8 OTD367G 651672.8 4766974.0 216.20 1.62 0.17 34 4 14 1135 5.0 8 OTD367G 651667.1 4766984.5 207.26 0.75 0.09 20 4 14 1150 5.0 8 OTD367G 651665.2 4766987.5 204.28 1.08 0.10 56 4 14 1155 5.0 8 OTD367G 651663.3 4766991.5 201.36 1.65 0.16 96 4 14 1160 5.0 8 OTD367G 651661.4 4766995.0 198.44 2.05 0.29 70 4 14 1165 5.0 8 OTD367G 651659.4 4766998.5 195.52 3.47 1.11 18 4 14 1170 5.0 8 OTD367G 651657.6 4767002.5 192.62 2.92 0.77 28 4 14 1175 5.0 8 OTD367G 651655.6 4767006.0 189.76 1.29 0.25 32 4 14 1180 5.0 8 OTD367G 651653.8 4767010.0 186.89 1.20 0.16 59 4 14 1185 5.0 8 OTD367G 651628.3 4767060.0 149.54 1.50 0.20 121 4 14 1253 5.0 8 OTD367G 651626.5 4767063.5 146.95 1.46 0.13 57 4 14 1258 5.0 8 OTD367G 651624.7 4767067.5 144.36 0.80 0.15 44 4 14 1263 5.0 8 OTD367G 651622.9 4767071.5 141.76 0.82 0.16 113 4 14 1268 5.0 8 OTD367G 651621.1 4767075.5 139.21 1.02 0.23 92 4 14 1273 5.0 8 OTD367G 651614.1 4767091.0 129.21 0.96 0.25 70 4 14 1293 5.0 8 OTD367G 651612.3 4767095.0 126.77 0.75 0.21 83 4 14 1298 5.0 8 OTD367G 651610.6 4767099.0 124.32 0.66 0.18 45 4 14 1303 5.0 8 OTD367G 651608.9 4767103.0 121.90 1.03 0.20 147 4 14 1308 5.0 8 OTD367G 651607.2 4767107.0 119.53 1.02 0.22 130 4 14 1313 5.0 8 OTD367G 651605.4 4767111.5 117.17 0.99 0.20 130 4 14 1318 5.0 8 OTD367G 651603.8 4767115.5 114.80 0.78 0.11 184 4 14 1323 5.0 8 OTD367G 651602.1 4767120.0 112.42 1.01 0.20 163 4 14 1328 5.0 8 OTD367G 651600.4 4767124.0 110.13 1.14 0.18 164 4 14 1333 5.0 8 OTD367G 651598.8 4767128.0 107.84 1.16 0.19 100 4 14 1338 5.0 8 OTD367G 651597.1 4767132.0 105.54 0.73 0.14 117 4 14 1343 5.0 8 OTD367G 651595.4 4767136.5 103.25 1.10 0.21 162 4 14 1348 5.0 8 OTD367G 651593.6 4767140.5 100.96 0.69 0.20 703 4 14 1353 5.0 8 OTD367G 651592.0 4767144.5 98.75 1.40 0.22 384 4 14 1358 5.0 8 OTD367G 651590.3 4767149.0 96.54 1.30 0.26 224 4 14 1363 5.0 8 OTD367G 651588.8 4767153.0 94.32 0.89 0.15 67 4 14 1368 5.0 8 OTD367G 651587.1 4767157.0 92.12 1.07 0.20 89 4 14 1373 5.0 8 OTD367G 651585.4 4767161.0 89.92 1.16 0.21 104 4 14 1378 5.0 8 OTD367G 651583.8 4767165.5 87.72 1.00 0.15 50 4 14 1383 5.0 8 OTD367G 651582.1 4767169.5 85.53 0.80 0.16 126 4 14 1388 5.0 8 OTD367G 651580.4 4767174.0 83.35 1.29 0.26 80 4 14 1393 5.0 8 OTD367G 651578.8 4767178.0 81.16 1.77 0.44 89 4 14 1398 5.0 8 OTD367G 651577.1 4767182.5 78.98 1.08 0.27 40 4 14 1403 5.0 8 OTD367G 651572.0 4767195.0 72.47 0.63 0.13 43 4 14 1418 5.0 8 OTD367G 651566.9 4767207.5 65.98 0.62 0.24 17 4 14 1433 5.0 8 OTD367G 651558.3 4767229.5 54.80 1.10 0.13 163 4 14 1459 5.0 8 OTD367G 651556.6 4767233.5 52.66 0.86 0.15 253 4 14 1464 5.0 8 OTD367G 651554.9 4767237.5 50.52 1.86 0.20 118 4 14 1469 5.0 8 OTD367G 651553.3 4767242.5 48.40 2.10 0.25 94 4 14 1474 5.0 8 OTD367G 651551.6 4767246.5 46.31 1.81 0.20 245 4 14 1479 5.0 8 OTD367G 651549.9 4767251.0 44.22 0.74 0.18 151 4 14 1484 5.0 8 OTD367G 651548.3 4767255.0 42.14 1.16 0.23 126 4 14 1489 5.0 8 OTD367G 651546.9 4767258.5 40.47 1.27 0.19 125 4 14 1492 3.0 8 OTD367G 651545.6 4767262.0 38.84 1.13 0.20 59 5 1 1497 5.0 8 OTD367G 651543.9 4767266.0 36.80 1.36 0.25 60 5 1 1502 5.0 8 OTD367G 651542.2 4767270.5 34.76 1.91 0.26 42 5 1 1507 5.0 8 OTD367G 651540.5 4767274.5 32.72 1.88 0.30 43 5 1 1512 5.0 8 OTD367G 651538.9 4767278.5 30.92 1.46 0.16 208 5 1 1516 4.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD367G 651537.6 4767282.0 29.33 1.79 0.31 121 4 14 1520 4.0 8 OTD367G 651536.6 4767284.5 28.14 1.64 0.24 82 5 1 1522 2.0 8 OTD367G 651535.3 4767287.5 26.74 1.97 0.24 63 4 14 1527 5.0 8 OTD367G 651533.6 4767291.5 24.75 1.99 0.28 56 4 14 1532 5.0 8 OTD367G 651531.8 4767295.5 22.81 1.72 0.15 53 4 14 1537 5.0 8 OTD367G 651530.1 4767300.0 20.87 2.00 0.25 26 4 14 1542 5.0 8 OTD367G 651528.3 4767304.0 18.93 1.99 0.23 40 4 14 1547 5.0 8 OTD367G 651526.6 4767308.5 16.98 2.12 0.27 54 4 14 1552 5.0 8 OTD367G 651524.8 4767313.0 15.09 1.92 0.28 32 4 14 1557 5.0 8 OTD367G 651523.0 4767317.0 13.20 1.48 0.26 23 4 14 1562 5.0 8 OTD367G 651521.3 4767321.5 11.31 1.95 0.21 28 4 14 1567 5.0 8 OTD367G 651519.4 4767325.5 9.41 1.58 0.19 41 4 14 1572 5.0 8 OTD367G 651517.6 4767330.0 7.54 2.08 0.27 29 4 14 1577 5.0 8 OTD367G 651515.9 4767334.5 5.78 2.00 0.26 27 4 14 1582 5.0 8 OTD367G 651514.1 4767338.5 4.02 1.97 0.32 33 4 14 1587 5.0 8 OTD367G 651512.4 4767343.0 2.26 1.81 0.27 49 4 14 1592 5.0 8 OTD367G 651510.6 4767347.5 0.51 2.68 0.30 40 4 14 1597 5.0 8 OTD367G 651508.8 4767351.5 -1.27 2.86 0.33 44 4 14 1602 5.0 8 OTD367G 651507.1 4767356.0 -2.88 1.95 0.26 43 4 14 1607 5.0 8 OTD367G 651505.3 4767360.0 -4.49 1.47 0.20 35 4 14 1612 5.0 8 OTD367G 651503.6 4767364.5 -6.11 1.36 0.17 22 4 14 1617 5.0 8 OTD367G 651501.8 4767369.0 -7.73 1.43 0.18 47 4 14 1622 5.0 8 OTD367G 651500.3 4767373.5 -9.26 1.51 0.17 73 4 14 1627 5.0 8 OTD367G 651498.9 4767378.0 -10.79 1.66 0.22 68 4 14 1632 5.0 8 OTD367G 651497.4 4767382.5 -12.32 1.70 0.19 53 5 1 1637 5.0 8 OTD367G 651495.9 4767387.0 -13.86 1.92 0.25 86 5 1 1642 5.0 8 OTD367G 651494.6 4767391.5 -15.31 1.55 0.18 83 5 1 1647 5.0 8 OTD367G 651493.4 4767396.0 -16.76 1.78 0.22 50 5 1 1652 5.0 8 OTD367G 651492.2 4767400.5 -18.21 1.60 0.22 48 5 1 1657 5.0 8 OTD367G 651491.0 4767405.5 -19.67 1.92 0.20 50 5 1 1662 5.0 8 OTD367G 651490.0 4767410.5 -21.04 1.68 0.24 77 5 1 1667 5.0 8 OTD367G 651489.1 4767415.0 -22.40 1.87 0.31 41 5 1 1672 5.0 8 OTD367G 651488.1 4767419.5 -23.77 1.85 0.22 49 5 1 1677 5.0 8 OTD367G 651487.2 4767424.5 -25.15 1.52 0.17 33 5 1 1682 5.0 8 OTD367G 651485.9 4767429.0 -26.41 2.03 0.21 27 5 1 1687 5.0 8 OTD367G 651484.6 4767434.0 -27.66 2.09 0.27 42 5 1 1692 5.0 8 OTD367G 651483.5 4767438.0 -28.80 1.61 0.19 26 5 1 1696 4.0 8 OTD367G 651482.3 4767442.5 -29.93 1.63 0.25 39 4 14 1701 5.0 8 OTD367G 651481.1 4767447.0 -31.19 1.98 0.44 63 4 14 1706 5.0 8 OTD367G 651479.9 4767451.0 -32.32 2.05 0.41 60 4 14 1710 4.0 8 OTD367G 651478.8 4767455.5 -33.45 1.58 0.26 66 5 1 1715 5.0 8 OTD367G 651477.5 4767460.0 -34.71 1.89 0.32 76 5 1 1720 5.0 8 OTD367G 651476.3 4767464.5 -35.97 1.03 0.15 53 5 1 1725 5.0 8 OTD367G 651474.9 4767469.5 -37.22 1.28 0.13 55 5 1 1730 5.0 8 OTD367G 651473.7 4767474.0 -38.48 0.98 0.11 43 5 1 1735 5.0 8 OTD367G 651472.4 4767478.5 -39.74 1.16 0.11 83 5 1 1740 5.0 8 OTD367G 651471.1 4767483.5 -41.00 0.96 0.17 247 5 1 1745 5.0 8 OTD367G 651469.8 4767488.0 -42.25 1.74 0.38 148 5 1 1750 5.0 8 OTD367G 651468.6 4767492.5 -43.51 1.34 0.23 95 5 1 1755 5.0 8 OTD367G 651467.3 4767497.5 -44.77 1.53 0.18 69 5 1 1760 5.0 8 OTD367G 651466.2 4767501.5 -45.88 0.69 0.10 60 7 1 1763.8 3.8 8 OTD377 651674.4 4766302.0 375.62 1.13 0.24 36 6 14 869 5.0 8 OTD377 651672.9 4766304.0 371.29 0.73 0.26 36 6 14 874 5.0 8 OTD377 651671.4 4766306.0 366.96 0.96 0.29 59 6 14 879 5.0 8 OTD377 651669.8 4766308.0 362.66 0.74 0.41 21 6 14 884 5.0 8 OTD377 651668.2 4766310.0 358.37 0.80 0.18 25 6 14 889 5.0 8 OTD377 651666.6 4766312.0 354.08 0.70 0.12 63 6 14 894 5.0 8 OTD377 651665.1 4766314.0 349.78 0.73 0.12 31 6 14 899 5.0 8 OTD377 651663.5 4766316.0 345.50 0.86 0.39 63 6 14 904 5.0 8 OTD377 651662.1 4766318.0 341.67 1.01 0.43 15 6 14 908 4.0 8 OTD377 651659.0 4766322.0 333.58 0.69 0.24 16 10 14 918 5.0 8 OTD383 651808.6 4767004.0 134.90 1.50 0.06 17 10 7 1090 5.0 8 OTD383 651807.4 4767005.0 130.11 0.69 0.03 21 10 7 1095 5.0 8 OTD383 651806.3 4767005.5 125.33 0.74 0.03 25 10 7 1100 5.0 8 OTD383 651803.9 4767008.0 115.75 0.89 0.04 43 10 7 1110 5.0 8 OTD383 651800.0 4767011.0 99.48 1.11 0.08 47 7 7 1127 5.0 8 OTD383 651797.8 4767012.5 90.38 0.68 0.04 24 7 7 1136 4.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD383 651796.8 4767013.0 86.07 1.23 0.06 24 5 7 1141 5.0 8 OTD383 651795.6 4767014.0 81.28 0.74 0.04 19 5 7 1146 5.0 8 OTD383 651794.4 4767014.5 76.50 3.28 0.15 18 2 7 1151 5.0 8 OTD383 651793.3 4767015.5 71.71 5.68 0.15 13 2 7 1156 5.0 8 OTD383 651792.1 4767016.0 66.92 3.39 0.25 20 2 1 1161 5.0 8 OTD383 651790.9 4767017.0 62.13 3.70 0.23 361 2 1 1166 5.0 8 OTD383 651789.9 4767018.5 57.35 2.99 0.19 66 2 1 1171 5.0 8 OTD383 651788.7 4767019.5 52.56 3.46 0.22 41 2 1 1176 5.0 8 OTD383 651787.6 4767020.0 47.77 2.64 0.18 42 2 1 1181 5.0 8 OTD383 651786.4 4767021.0 42.98 2.65 0.18 38 2 1 1186 5.0 8 OTD383 651785.3 4767022.0 38.19 1.39 0.09 26 5 1 1191 5.0 8 OTD383 651784.3 4767022.5 34.17 1.50 0.11 44 5 1 1194.4 3.4 8 OTD383B 651878.3 4766973.0 -36.03 0.69 0.03 45 5 7 1241 5.0 8 OTD383B 651877.8 4766973.0 -40.99 1.03 0.03 57 5 7 1246 5.0 8 OTD383B 651877.3 4766973.5 -45.96 1.00 0.04 87 2 7 1251 5.0 8 OTD383B 651876.8 4766973.5 -51.92 1.82 0.14 59 2 7 1257 5.0 8 OTD383B 651876.3 4766974.0 -56.88 0.70 0.15 9 2 7 1262 5.0 8 OTD383B 651875.9 4766974.0 -61.85 2.16 0.30 24 2 1 1267 5.0 8 OTD383B 651875.4 4766974.5 -66.82 2.65 0.28 7 2 1 1272 5.0 8 OTD383B 651875.0 4766975.0 -71.78 2.18 0.22 14 2 1 1277 5.0 8 OTD383B 651874.5 4766976.0 -76.75 1.49 0.19 14 2 1 1282 4.2 8 OTD383B 651874.1 4766976.0 -81.72 1.91 0.28 19 2 1 1287 2.6 8 OTD383B 651873.6 4766976.5 -86.68 1.50 0.12 19 2 1 1292 4.8 8 OTD383B 651873.1 4766977.0 -91.65 1.62 0.14 10 2 1 1297 5.0 8 OTD383B 651872.7 4766977.0 -96.61 1.86 0.14 69 2 1 1302 5.0 8 OTD383C 651881.6 4766988.0 46.61 0.63 0.02 25 10 7 1160 5.0 8 OTD383C 651875.3 4766996.0 -22.62 0.62 0.02 36 10 7 1230 5.0 8 OTD383C 651873.0 4766999.0 -48.33 0.64 0.01 49 7 7 1256 5.0 8 OTD383C 651872.6 4766999.5 -53.27 1.68 0.03 55 5 7 1261 5.0 8 OTD383C 651872.1 4767000.5 -58.22 1.52 0.18 28 5 1 1266 5.0 8 OTD383C 651871.8 4767001.0 -63.16 2.32 0.28 22 2 1 1271 5.0 8 OTD383C 651870.9 4767002.0 -73.05 1.88 0.27 17 2 1 1281 5.0 8 OTD383C 651870.4 4767002.5 -77.99 1.62 0.31 25 2 1 1286 5.0 8 OTD383C 651870.0 4767003.5 -82.94 1.41 0.14 9 2 1 1291 5.0 8 OTD383C 651869.5 4767004.0 -87.88 1.71 0.24 45 2 1 1296 5.0 8 OTD383C 651869.1 4767004.5 -92.83 2.41 0.46 43 2 1 1301 5.0 8 OTD383C 651868.6 4767005.0 -97.77 3.24 0.80 74 2 1 1306 5.0 8 OTD383C 651868.3 4767005.5 -102.07 2.64 0.43 126 2 1 1309.7 3.7 8 OTD383D 651871.9 4767023.0 -51.57 0.75 0.03 19 7 7 1263 5.0 8 OTD383D 651871.5 4767024.0 -55.50 0.75 0.09 8 7 1 1266 3.0 8 OTD383D 651871.1 4767024.5 -59.43 1.09 0.09 15 5 1 1271 5.0 8 OTD383D 651870.3 4767026.0 -69.25 1.95 0.32 29 5 1 1281 5.0 8 OTD383D 651869.7 4767027.0 -75.15 3.01 0.23 7 2 1 1287 5.0 8 OTD383D 651869.3 4767028.0 -80.06 2.38 0.23 27 2 1 1292 5.0 8 OTD383D 651868.8 4767028.5 -84.97 2.38 0.34 49 2 1 1297 5.0 8 OTD383D 651868.4 4767030.0 -89.88 3.41 0.56 126 2 1 1302 5.0 8 OTD383D 651867.9 4767031.0 -94.79 3.78 0.61 84 2 1 1307 5.0 8 OTD383D 651867.4 4767031.5 -99.70 3.54 0.56 72 2 1 1312 5.0 8 OTD383D 651866.9 4767032.0 -104.61 3.96 0.39 76 2 1 1317 5.0 8 OTD383D 651866.5 4767033.0 -109.52 3.57 0.62 70 2 1 1322 5.0 8 OTD383D 651866.0 4767034.0 -114.43 2.60 0.59 62 2 1 1327 5.0 8 OTD383D 651865.5 4767034.5 -119.34 2.22 0.33 48 2 1 1332 5.0 8 OTD383D 651865.1 4767035.5 -124.25 2.98 0.58 80 2 1 1337 5.0 8 OTD383D 651864.6 4767036.5 -129.15 3.30 0.42 99 2 1 1342 5.0 8 OTD383D 651864.1 4767037.0 -134.06 2.62 0.42 45 2 1 1347 5.0 8 OTD383D 651863.7 4767038.0 -137.98 2.27 0.38 21 2 1 1350 3.0 8 OTD383D 651863.3 4767038.5 -141.90 1.70 0.58 17 5 1 1355 5.0 8 OTD383D 651862.8 4767039.5 -146.80 1.89 0.41 24 5 1 1360 5.0 8 OTD383D 651862.3 4767040.5 -151.71 1.12 0.21 34 5 1 1365 5.0 8 OTD383D 651861.8 4767041.0 -156.61 1.26 0.24 47 5 1 1370 5.0 8 OTD383D 651861.3 4767042.0 -161.51 1.17 0.23 38 5 1 1375 5.0 8 OTD383D 651860.8 4767043.0 -166.41 1.20 0.47 27 5 1 1380 5.0 8 OTD383D 651860.3 4767044.0 -171.32 1.01 0.35 35 5 1 1385 5.0 8 OTD383D 651859.8 4767044.5 -176.22 0.85 0.24 39 5 1 1390 5.0 8 OTD383D 651859.3 4767045.5 -181.12 0.87 0.11 35 5 1 1395 5.0 8 OTD383D 651858.8 4767046.5 -186.02 0.91 0.12 31 5 1 1400 5.0 8 OTD383D 651858.3 4767047.5 -190.93 0.81 0.14 33 5 1 1405 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD383D 651857.8 4767048.0 -195.83 0.98 0.21 22 5 1 1410 5.0 8 OTD383D 651857.3 4767049.0 -200.73 1.53 0.19 22 4 14 1415 5.0 8 OTD383D 651856.8 4767050.0 -205.63 1.86 0.22 40 4 14 1420 5.0 8 OTD383D 651856.3 4767051.0 -210.54 1.09 0.14 30 4 14 1425 5.0 8 OTD383D 651855.8 4767051.5 -215.44 1.27 0.08 36 4 14 1430 5.0 8 OTD383D 651855.3 4767052.0 -220.34 1.48 0.09 42 4 14 1435 5.0 8 OTD383D 651854.8 4767053.0 -225.24 1.18 0.22 35 4 14 1440 5.0 8 OTD383D 651854.3 4767054.0 -230.14 1.04 0.18 27 4 14 1445 5.0 8 OTD383D 651853.9 4767055.0 -235.05 1.20 0.19 31 4 14 1450 5.0 8 OTD383D 651853.4 4767056.0 -239.95 0.93 0.11 48 4 14 1455 5.0 8 OTD383D 651852.9 4767056.5 -244.85 1.01 0.13 22 4 14 1460 5.0 8 OTD383D 651852.4 4767057.5 -249.75 1.18 0.25 22 4 14 1465 5.0 8 OTD383D 651852.0 4767058.5 -254.66 1.20 0.17 20 4 14 1470 5.0 8 OTD383D 651851.5 4767059.5 -259.57 1.09 0.17 21 4 14 1475 5.0 8 OTD383D 651851.1 4767060.0 -264.48 1.16 0.17 29 4 14 1480 5.0 8 OTD383D 651850.6 4767061.5 -269.39 1.13 0.21 10 4 14 1485 5.0 8 OTD383D 651850.1 4767062.0 -274.31 1.11 0.16 18 4 14 1490 5.0 8 OTD383D 651849.7 4767063.0 -279.23 1.03 0.10 20 4 14 1495 5.0 8 OTD383D 651849.3 4767063.5 -284.15 1.02 0.13 15 4 14 1500 5.0 8 OTD383D 651848.8 4767064.5 -289.08 1.20 0.22 24 4 14 1505 5.0 8 OTD383D 651848.3 4767065.5 -294.99 1.10 0.28 23 6 14 1511 5.0 8 OTD383D 651847.8 4767066.0 -299.92 0.99 0.20 26 6 14 1516 5.0 8 OTD383D 651847.4 4767067.0 -304.85 0.89 0.19 41 6 14 1521 5.0 8 OTD383D 651846.9 4767067.5 -309.78 0.68 0.77 36 6 14 1526 5.0 8 OTD383D 651846.6 4767068.0 -314.71 0.87 0.15 28 6 14 1531 5.0 8 OTD383D 651844.9 4767071.5 -334.43 0.64 0.12 25 6 14 1551 5.0 8 OTD383D 651844.6 4767072.0 -339.36 0.89 0.17 27 6 14 1556 5.0 8 OTD383D 651844.2 4767073.0 -344.29 0.79 0.09 39 6 14 1561 5.0 8 OTD383D 651843.5 4767074.5 -354.16 0.68 0.12 73 6 14 1571 5.0 8 OTD383D 651843.1 4767075.0 -359.09 0.90 0.17 67 6 14 1576 5.0 8 OTD383D 651842.8 4767075.5 -363.33 0.62 0.06 38 6 14 1579.6 3.6 8 OTD396 651573.3 4766923.0 362.92 2.37 0.19 24 2 1 809 5.0 8 OTD396 651573.4 4766922.5 356.96 3.50 0.33 27 3 1 815 5.0 8 OTD396 651573.4 4766922.0 351.99 2.86 0.44 37 3 1 820 5.0 8 OTD396 651573.4 4766921.0 347.02 3.00 0.26 35 2 1 825 5.0 8 OTD396 651573.4 4766920.5 342.06 2.83 0.15 30 2 1 830 5.0 8 OTD396 651573.4 4766920.0 337.09 2.74 0.13 25 2 1 835 5.0 8 OTD396 651573.4 4766919.5 332.13 2.20 0.18 5 2 1 840 5.0 8 OTD396 651573.5 4766919.0 327.16 0.91 0.04 10 2 1 845 5.0 8 OTD396 651573.5 4766918.0 321.21 3.26 0.70 51 3 1 851 5.0 8 OTD396 651573.6 4766917.5 316.24 3.36 0.76 73 3 1 856 5.0 8 OTD396 651573.6 4766917.0 312.77 2.93 0.74 26 3 1 858 2.0 8 OTD396 651573.6 4766916.5 309.29 0.73 0.07 16 2 1 863 5.0 8 OTD396 651573.6 4766916.0 304.33 3.43 0.38 19 2 1 868 5.0 8 OTD396 651573.6 4766915.5 299.37 3.25 0.29 22 2 1 873 5.0 8 OTD396 651573.6 4766914.5 294.41 2.16 0.14 34 2 1 878 5.0 8 OTD396 651573.6 4766913.0 284.49 2.03 0.29 18 2 1 888 5.0 8 OTD396 651573.6 4766912.5 279.53 2.89 0.20 18 2 1 893 5.0 8 OTD396 651573.6 4766912.0 274.57 3.35 0.49 93 2 1 898 5.0 8 OTD396 651573.6 4766911.5 270.10 2.58 0.46 9 2 1 902 4.0 8 OTD396 651573.6 4766910.5 265.64 1.60 0.19 27 5 1 907 5.0 8 OTD396 651573.6 4766908.5 247.80 1.91 0.17 21 5 1 925 5.0 8 OTD396 651573.5 4766908.0 243.84 0.88 0.09 13 5 1 928 3.0 8 OTD396 651573.4 4766906.5 230.95 0.85 0.08 126 10 1 941 3.0 8 OTD402 651327.5 4767330.0 326.37 1.14 0.12 120 7 1 851 5.0 8 OTD402 651327.8 4767329.5 321.39 1.02 0.08 112 7 1 856 5.0 8 OTD402 651328.9 4767327.5 302.50 1.00 0.05 35 5 1 875 5.0 8 OTD402 651329.3 4767327.0 297.53 1.60 0.11 89 5 1 880 5.0 8 OTD402 651329.6 4767327.0 292.56 1.51 0.07 49 5 1 885 5.0 8 OTD402 651329.8 4767326.5 287.59 1.04 0.05 101 5 1 890 5.0 8 OTD402 651330.1 4767326.0 282.62 1.04 0.08 69 5 1 895 5.0 8 OTD402 651330.4 4767325.5 277.65 1.20 0.12 64 5 1 900 5.0 8 OTD402 651330.7 4767324.5 272.68 0.95 0.06 69 5 1 905 5.0 8 OTD402 651331.9 4767322.5 252.80 1.46 0.18 66 5 1 925 5.0 8 OTD402 651332.4 4767321.5 241.87 0.86 0.08 102 7 1 936 5.0 8 OTD405 651177.4 4766832.5 679.03 0.68 0.07 22 10 1 500 5.0 8 OTD405 651178.0 4766832.0 674.10 0.84 0.08 47 10 1 505 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD405 651182.7 4766829.0 639.56 0.67 0.02 60 10 1 540 5.0 8 OTD405 651184.1 4766828.0 629.70 0.63 0.03 78 10 1 550 5.0 8 OTD409 651643.9 4767205.5 281.95 1.46 0.02 20 10 7 888 5.0 8 OTD409 651644.1 4767205.0 276.96 1.11 0.03 51 10 7 893 5.0 8 OTD409 651644.9 4767203.5 255.01 0.97 0.02 32 7 7 915 5.0 8 OTD409 651645.1 4767203.5 250.02 1.01 0.02 28 7 1 920 5.0 8 OTD409 651645.5 4767202.5 235.05 0.75 0.01 12 7 1 935 5.0 8 OTD409 651645.7 4767202.5 230.06 0.86 0.01 17 7 1 940 5.0 8 OTD409 651645.9 4767202.0 225.07 1.10 0.02 20 7 1 945 5.0 8 OTD409 651646.1 4767202.0 220.08 1.22 0.01 17 7 1 950 5.0 8 OTD409 651646.2 4767201.5 215.09 1.08 0.01 28 7 1 955 5.0 8 OTD409 651646.8 4767200.5 199.12 1.19 0.01 16 5 1 971 5.0 8 OTD409 651646.9 4767200.5 194.13 1.23 0.02 21 5 1 976 5.0 8 OTD409 651647.1 4767200.5 189.14 1.22 0.04 36 5 1 981 5.0 8 OTD409 651647.6 4767199.0 174.18 1.33 0.02 17 5 1 996 5.0 8 OTD409 651647.8 4767198.5 169.19 1.09 0.01 99 5 1 1001 5.0 8 OTD409 651648.0 4767198.5 164.20 1.10 0.01 81 5 1 1006 5.0 8 OTD409 651648.2 4767198.0 159.22 1.48 0.03 18 5 1 1011 5.0 8 OTD409 651648.3 4767198.0 154.23 1.28 0.03 9 5 1 1016 5.0 8 OTD409 651648.5 4767197.5 149.24 1.34 0.06 9 5 1 1021 5.0 8 OTD409 651648.7 4767197.0 144.26 1.34 0.07 15 2 1 1026 5.0 8 OTD409 651648.9 4767197.0 139.27 2.34 0.05 10 2 1 1031 5.0 8 OTD409 651649.0 4767196.5 134.28 3.37 0.05 14 2 1 1036 5.0 8 OTD409 651649.2 4767196.0 129.30 2.70 0.07 9 2 1 1041 5.0 8 OTD409 651649.4 4767195.5 124.31 1.63 0.05 5 2 1 1046 5.0 8 OTD409 651649.6 4767195.5 119.33 2.59 0.07 7 2 1 1051 5.0 8 OTD409 651649.8 4767195.0 114.34 1.42 0.08 16 2 1 1056 5.0 8 OTD409 651649.9 4767194.0 109.36 2.60 0.15 42 2 1 1061 5.0 8 OTD409 651650.0 4767194.0 104.38 2.71 0.08 24 2 1 1066 5.0 8 OTD409 651650.4 4767193.0 94.41 1.53 0.14 11 5 1 1076 5.0 8 OTD409 651650.6 4767192.5 85.43 1.35 0.31 17 5 1 1084 3.0 8 OTD409 651650.8 4767192.0 81.45 2.32 1.05 103 4 1 1089 5.0 8 OTD409 651650.9 4767191.5 76.46 1.74 0.57 59 4 1 1094 5.0 8 OTD409 651651.1 4767191.0 71.48 1.83 0.65 106 4 1 1099 5.0 8 OTD409 651651.2 4767190.5 66.49 0.75 0.16 16 4 1 1104 5.0 8 OTD409 651651.3 4767190.5 61.51 0.83 0.36 12 4 1 1109 5.0 8 OTD409 651651.5 4767190.0 56.52 1.87 0.65 94 3 1 1114 5.0 8 OTD409 651651.6 4767190.0 51.54 2.67 1.55 71 3 1 1119 5.0 8 OTD409 651651.8 4767189.5 46.55 3.66 2.16 62 3 1 1124 5.0 8 OTD409 651651.9 4767189.0 41.57 3.71 1.64 70 3 1 1129 5.0 8 OTD409 651652.1 4767189.0 36.59 3.96 2.15 61 3 1 1134 5.0 8 OTD409 651652.2 4767188.5 31.60 3.62 1.94 47 3 1 1139 5.0 8 OTD409 651652.4 4767188.0 26.62 3.29 1.86 158 3 1 1144 5.0 8 OTD409 651652.5 4767187.5 21.64 4.63 2.59 99 3 1 1149 5.0 8 OTD409 651652.6 4767187.0 16.66 4.94 2.79 65 3 1 1154 5.0 8 OTD409 651652.8 4767186.5 11.67 4.52 2.47 53 3 1 1159 5.0 8 OTD409 651653.0 4767186.5 6.69 3.55 1.60 52 3 1 1164 5.0 8 OTD409 651653.2 4767186.0 1.71 2.45 1.28 31 3 1 1169 5.0 8 OTD409 651653.3 4767185.5 -3.27 1.33 0.59 22 3 1 1174 5.0 8 OTD409 651653.5 4767185.0 -8.25 3.50 1.91 72 3 1 1179 5.0 8 OTD409 651653.6 4767185.0 -12.74 1.07 0.16 18 2 1 1182 2.0 8 OTD409 651653.8 4767184.5 -16.23 0.62 0.22 59 4 14 1187 5.0 8 OTD409 651653.9 4767184.0 -21.21 0.99 0.33 74 4 14 1192 5.0 8 OTD409A 651754.9 4767205.0 195.74 1.41 0.01 38 10 7 990 5.0 8 OTD409A 651756.1 4767205.0 190.90 1.43 0.06 126 10 7 995 5.0 8 OTD409A 651757.3 4767204.5 186.05 1.42 0.02 112 10 7 1000 5.0 8 OTD409A 651759.6 4767204.0 176.35 0.78 0.02 33 10 7 1010 5.0 8 OTD409A 651776.9 4767198.5 103.60 0.62 0.02 91 10 7 1085 5.0 8 OTD409A 651794.6 4767191.0 27.95 1.61 0.02 127 7 7 1163 5.0 8 OTD409A 651795.8 4767190.5 23.10 0.81 0.01 120 7 7 1168 5.0 8 OTD409A 651796.9 4767190.0 18.25 0.85 0.02 195 7 7 1173 5.0 8 OTD409A 651798.0 4767190.0 13.40 1.04 0.02 156 7 7 1178 5.0 8 OTD409A 651799.2 4767189.0 8.55 0.82 0.01 137 7 7 1183 5.0 8 OTD409A 651800.3 4767188.5 3.70 0.76 0.01 115 7 7 1188 5.0 8 OTD409A 651801.5 4767188.0 -1.15 0.85 0.02 44 7 7 1193 5.0 8 OTD409A 651802.6 4767187.5 -5.99 0.94 0.02 32 7 7 1198 5.0 8 OTD409A 651803.8 4767187.5 -10.84 1.09 0.01 38 7 7 1203 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD409A 651804.8 4767187.0 -15.68 1.04 0.02 140 7 7 1208 5.0 8 OTD409A 651806.0 4767186.5 -20.53 1.33 0.02 60 7 7 1213 5.0 8 OTD409A 651807.2 4767185.5 -25.37 1.29 0.01 23 7 7 1218 5.0 8 OTD409A 651808.3 4767185.0 -30.21 1.34 0.01 58 7 7 1223 5.0 8 OTD409A 651809.5 4767185.0 -35.06 1.32 0.03 57 7 7 1228 5.0 8 OTD409A 651810.5 4767184.5 -39.41 0.93 0.01 73 7 1 1232 4.0 8 OTD409A 651811.6 4767184.0 -43.77 1.29 0.02 35 5 1 1237 5.0 8 OTD409A 651812.8 4767183.5 -48.60 1.16 0.01 30 5 1 1242 5.0 8 OTD409A 651814.0 4767183.0 -53.43 1.46 0.01 30 5 1 1247 5.0 8 OTD409A 651815.2 4767182.5 -58.26 1.75 0.02 18 5 1 1252 5.0 8 OTD409A 651816.4 4767182.5 -63.08 1.67 0.02 15 5 1 1257 5.0 8 OTD409A 651817.7 4767182.0 -67.89 1.46 0.02 29 5 1 1262 5.0 8 OTD409A 651818.9 4767181.5 -72.71 1.68 0.04 24 5 1 1267 5.0 8 OTD409A 651820.2 4767180.5 -77.53 2.06 0.05 22 5 1 1272 5.0 8 OTD409A 651821.5 4767180.0 -82.33 1.48 0.03 18 5 1 1277 5.0 8 OTD409A 651822.8 4767179.5 -87.13 1.10 0.02 27 5 1 1282 5.0 8 OTD409A 651824.1 4767179.0 -91.93 0.85 0.03 17 5 1 1287 5.0 8 OTD409A 651825.3 4767178.5 -96.73 1.16 0.03 21 5 1 1292 5.0 8 OTD409A 651826.6 4767178.0 -101.52 1.26 0.03 21 5 1 1297 5.0 8 OTD409A 651827.9 4767177.5 -106.30 1.55 0.02 31 5 1 1302 5.0 8 OTD409A 651829.3 4767177.0 -111.09 1.38 0.01 31 5 1 1307 5.0 8 OTD409A 651832.0 4767176.0 -120.64 1.09 0.02 30 5 1 1317 5.0 8 OTD409A 651833.3 4767175.5 -125.41 0.89 0.03 58 5 1 1322 5.0 8 OTD409A 651834.7 4767174.5 -130.18 0.80 0.05 66 5 1 1327 5.0 8 OTD409A 651836.0 4767173.5 -134.96 1.95 0.11 57 5 1 1332 5.0 8 OTD409A 651837.4 4767173.0 -139.71 1.87 0.13 63 5 1 1337 5.0 8 OTD409A 651840.2 4767171.5 -149.22 0.75 0.02 38 5 1 1347 5.0 8 OTD409A 651841.6 4767171.0 -153.97 0.85 0.02 31 5 1 1352 5.0 8 OTD409A 651842.9 4767170.5 -158.73 0.64 0.01 29 5 1 1357 5.0 8 OTD409A 651844.4 4767170.0 -163.46 0.93 0.03 51 5 1 1362 5.0 8 OTD409A 651845.8 4767169.0 -168.20 1.67 0.06 33 5 1 1367 5.0 8 OTD409A 651847.3 4767168.5 -172.93 1.23 0.02 22 5 1 1372 5.0 8 OTD409A 651848.7 4767167.5 -177.67 1.45 0.02 19 5 1 1377 5.0 8 OTD409A 651850.1 4767167.0 -182.39 1.33 0.03 14 5 1 1382 5.0 8 OTD409A 651851.6 4767166.0 -187.11 1.17 0.03 30 5 1 1387 5.0 8 OTD409A 651853.1 4767165.5 -191.82 1.36 0.02 33 5 1 1392 5.0 8 OTD409A 651854.6 4767164.5 -196.53 1.18 0.01 10 5 1 1397 5.0 8 OTD409A 651856.1 4767164.0 -201.24 1.46 0.04 29 5 1 1402 5.0 8 OTD409A 651857.6 4767163.0 -205.94 1.85 0.07 28 2 1 1407 5.0 8 OTD409A 651859.1 4767162.5 -210.63 2.15 0.20 31 2 1 1412 5.0 8 OTD409A 651860.6 4767161.5 -215.32 2.24 0.22 22 2 1 1417 5.0 8 OTD411 651505.6 4766302.0 491.42 1.43 0.22 98 6 14 769 5.0 8 OTD411 651504.0 4766304.5 487.34 1.54 0.32 120 6 14 774 5.0 8 OTD411A 651504.4 4766302.0 489.76 0.76 0.07 46 6 14 771 5.0 8 OTD411A 651502.8 4766304.5 485.69 1.45 0.12 97 6 14 776 5.0 8 OTD411A 651501.2 4766306.5 481.62 1.86 0.25 121 6 14 781 5.0 8 OTD411A 651499.6 4766309.0 477.56 0.79 0.10 73 6 14 786 5.0 8 OTD411A 651497.9 4766311.0 473.49 1.21 0.40 138 6 14 791 5.0 8 OTD411A 651496.3 4766313.5 469.44 0.90 0.15 211 6 14 796 5.0 8 OTD411A 651494.6 4766316.0 465.38 1.12 0.16 144 6 14 801 5.0 8 OTD411A 651492.9 4766318.5 461.33 0.92 0.10 79 6 14 806 5.0 8 OTD411A 651491.8 4766320.0 458.50 0.60 0.04 49 7 1 808 2.0 8 OTD411A 651490.8 4766321.5 456.07 1.18 0.11 145 6 14 812 4.0 8 OTD411A 651487.6 4766326.0 448.40 0.65 0.14 18 7 1 822 5.0 8 OTD411A 651480.8 4766336.5 431.47 1.43 0.15 60 6 14 843 5.0 8 OTD411A 651479.1 4766339.0 427.45 1.71 0.08 51 6 14 848 5.0 8 OTD411A 651477.4 4766342.0 423.43 1.44 0.08 50 6 14 853 5.0 8 OTD411A 651475.8 4766344.5 419.42 1.03 0.03 74 6 14 858 5.0 8 OTD411A 651474.1 4766347.0 415.42 0.93 0.04 62 6 14 863 5.0 8 OTD411A 651472.5 4766349.5 411.41 1.02 0.05 122 6 14 868 5.0 8 OTD411A 651470.8 4766352.0 407.40 1.03 0.05 190 6 14 873 5.0 8 OTD411A 651469.2 4766354.5 403.40 1.35 0.08 137 6 14 878 5.0 8 OTD411A 651467.8 4766356.5 399.87 1.48 0.08 174 6 14 881.8 3.8 8 OTD412 651551.5 4766798.0 440.41 0.78 0.12 13 7 7 732 4.0 8 OTD412 651551.9 4766797.5 435.94 1.88 0.14 30 5 7 737 5.0 8 OTD412 651552.3 4766797.0 430.98 1.23 0.10 31 5 7 742 5.0 8 OTD412 651552.9 4766796.0 421.04 0.86 0.06 33 5 7 752 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD412 651558.4 4766789.0 344.55 1.33 0.09 50 5 7 829 5.0 8 OTD412 651558.8 4766788.5 339.59 1.09 0.14 86 5 7 834 5.0 8 OTD412 651559.3 4766788.5 334.62 0.78 0.08 89 5 7 839 5.0 8 OTD412 651559.7 4766788.0 329.66 1.45 0.14 83 5 7 844 5.0 8 OTD412 651560.1 4766787.5 324.69 1.65 0.12 100 5 7 849 5.0 8 OTD412 651560.4 4766786.5 319.73 1.50 0.10 80 5 7 854 5.0 8 OTD412 651560.8 4766786.5 314.77 1.13 0.04 34 5 7 859 5.0 8 OTD412 651561.3 4766786.0 309.81 1.77 0.03 113 5 7 864 5.0 8 OTD412 651561.7 4766785.5 304.85 2.02 0.12 265 5 7 869 5.0 8 OTD412 651562.1 4766785.0 299.89 1.38 0.10 169 5 7 874 5.0 8 OTD412 651562.5 4766784.5 295.42 1.59 0.10 133 5 7 878 4.0 8 OTD413 651525.8 4766585.5 467.28 1.04 0.11 20 6 14 703 5.0 8 OTD413 651526.1 4766585.0 462.30 1.54 0.20 46 6 14 708 5.0 8 OTD413 651527.3 4766584.0 445.38 0.73 0.14 35 6 14 725 5.0 8 OTD413 651527.6 4766583.5 440.41 0.67 0.10 36 6 14 730 5.0 8 OTD413 651527.8 4766583.5 436.92 0.99 0.13 38 6 14 732 2.0 8 OTD413 651528.0 4766583.0 433.44 1.23 0.15 47 4 14 737 5.0 8 OTD413 651528.3 4766582.5 428.46 1.39 0.17 63 4 14 742 5.0 8 OTD413 651528.6 4766582.0 423.49 1.15 0.10 50 4 14 747 5.0 8 OTD413 651529.3 4766582.0 413.54 1.50 0.07 59 4 14 757 5.0 8 OTD413 651529.6 4766581.5 408.56 1.33 0.10 44 4 14 762 5.0 8 OTD413 651530.0 4766581.5 403.58 1.26 0.11 37 4 14 767 5.0 8 OTD413 651530.3 4766581.0 398.61 0.85 0.05 54 4 14 772 5.0 8 OTD413 651530.6 4766580.5 393.63 1.13 0.05 50 4 14 777 5.0 8 OTD413 651530.9 4766580.0 388.66 1.32 0.12 27 4 14 782 5.0 8 OTD413 651531.3 4766579.5 383.68 1.36 0.13 57 4 14 787 5.0 8 OTD413 651531.6 4766579.0 378.71 1.07 0.06 58 4 14 792 5.0 8 OTD413 651532.0 4766579.0 373.73 0.92 0.08 55 4 14 797 5.0 8 OTD413 651532.3 4766578.5 368.76 1.22 0.17 127 4 14 802 5.0 8 OTD413 651532.6 4766578.0 363.79 2.00 0.34 120 4 14 807 5.0 8 OTD413 651532.9 4766578.0 358.81 1.57 0.23 137 4 14 812 5.0 8 OTD413 651533.3 4766577.5 353.84 1.31 0.14 80 6 14 817 5.0 8 OTD414A 651825.0 4766619.0 188.69 1.27 0.02 29 5 7 1007 5.0 8 OTD414A 651824.3 4766619.5 183.81 1.47 0.04 33 5 7 1012 5.0 8 OTD414A 651823.4 4766620.5 178.94 1.42 0.12 31 5 7 1017 5.0 8 OTD414A 651822.7 4766621.0 174.06 1.68 0.07 60 5 7 1022 5.0 8 OTD414A 651821.9 4766622.0 169.18 1.98 0.07 26 5 7 1027 5.0 8 OTD414A 651821.1 4766622.5 164.30 1.25 0.02 22 5 7 1032 5.0 8 OTD414A 651816.2 4766627.5 134.06 2.58 0.03 11 2 1 1063 5.0 8 OTD414A 651815.4 4766628.5 129.18 3.54 0.04 9 2 1 1068 5.0 8 OTD414A 651814.6 4766629.5 124.30 1.59 0.03 5 2 1 1073 5.0 8 OTD414A 651813.8 4766630.0 119.42 3.04 0.04 8 2 1 1078 5.0 8 OTD414A 651813.3 4766630.5 116.01 3.09 0.87 5 2 1 1080 2.0 8 OTD414A 651812.7 4766631.0 112.59 0.63 0.18 5 5 1 1085 5.0 8 OTD414A 651811.9 4766632.0 107.72 0.76 0.04 9 5 1 1090 5.0 8 OTD414A 651809.5 4766634.5 93.08 0.90 0.07 9 5 1 1105 5.0 8 OTD414A 651808.6 4766635.0 87.23 0.90 0.19 22 4 14 1111 5.0 8 OTD414A 651807.8 4766636.0 82.35 1.04 0.18 28 4 14 1116 5.0 8 OTD414A 651807.2 4766636.5 78.94 1.07 0.16 20 4 14 1118 2.0 8 OTD414A 651806.7 4766637.0 75.52 0.86 0.21 14 6 14 1123 5.0 8 OTD414A 651805.9 4766638.0 70.64 0.80 0.18 48 6 14 1128 5.0 8 OTD414A 651805.2 4766638.5 66.40 0.68 0.25 38 10 14 1131.7 3.7 8 OTD419 651442.4 4766863.5 204.19 0.91 0.11 72 5 1 967 5.0 8 OTD419 651442.8 4766863.0 194.23 0.80 0.08 50 5 1 977 5.0 8 OTD419 651443.0 4766862.5 189.24 1.09 0.10 46 5 1 982 5.0 8 OTD419 651443.2 4766862.0 184.26 0.93 0.12 74 5 1 987 5.0 8 OTD419 651443.4 4766861.5 179.27 0.92 0.18 45 5 1 992 5.0 8 OTD419 651443.6 4766861.0 174.29 1.16 0.13 59 5 1 997 5.0 8 OTD419 651443.8 4766860.5 169.31 0.81 0.15 73 5 1 1002 5.0 8 OTD419 651443.9 4766860.0 164.32 1.54 0.12 109 5 1 1007 5.0 8 OTD419 651444.1 4766860.0 159.34 1.52 0.11 95 5 1 1012 5.0 8 OTD419 651444.3 4766859.5 154.36 1.49 0.13 119 5 1 1017 5.0 8 OTD419 651445.1 4766858.0 134.43 0.87 0.14 169 5 1 1037 5.0 8 OTD419 651445.3 4766858.0 129.45 1.01 0.21 101 5 1 1042 5.0 8 OTD419 651445.4 4766857.5 124.46 1.21 0.19 102 5 1 1047 5.0 8 OTD419 651445.6 4766857.0 119.48 1.27 0.23 81 5 1 1052 5.0 8 OTD419 651445.8 4766856.5 114.50 0.96 0.10 158 5 1 1057 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD419 651446.0 4766856.5 109.52 0.95 0.08 184 5 1 1062 5.0 8 OTD419 651446.2 4766856.0 104.54 0.91 0.16 167 5 1 1067 5.0 8 OTD419 651446.4 4766855.5 99.55 0.96 0.11 131 5 1 1072 5.0 8 OTD419 651446.6 4766855.0 94.57 1.12 0.18 166 5 1 1077 5.0 8 OTD419 651446.8 4766855.0 89.59 1.46 0.26 204 5 1 1082 5.0 8 OTD419 651446.9 4766854.5 84.60 1.13 0.14 99 5 1 1087 5.0 8 OTD419 651447.1 4766854.0 79.62 1.33 0.16 100 5 1 1092 5.0 8 OTD419 651447.3 4766854.0 74.64 0.90 0.11 83 5 1 1097 5.0 8 OTD419 651447.6 4766853.5 69.65 1.21 0.18 146 5 1 1102 5.0 8 OTD419 651447.8 4766853.5 64.67 1.55 0.16 126 5 1 1107 5.0 8 OTD419 651447.9 4766853.0 59.68 1.17 0.15 87 5 1 1112 5.0 8 OTD419 651448.2 4766852.5 54.70 1.59 0.17 90 5 1 1117 5.0 8 OTD419 651448.4 4766852.0 49.71 1.70 0.21 171 5 1 1122 5.0 8 OTD419 651448.6 4766852.0 44.73 2.65 0.17 147 5 1 1127 5.0 8 OTD419 651448.8 4766851.5 39.75 1.34 0.16 106 5 1 1132 5.0 8 OTD419 651448.9 4766851.5 34.76 1.56 0.23 126 5 1 1137 5.0 8 OTD419 651449.1 4766851.0 29.78 1.46 0.29 89 5 1 1142 5.0 8 OTD419 651449.3 4766851.0 24.79 1.70 0.24 159 5 1 1147 5.0 8 OTD419 651449.5 4766850.5 19.81 1.13 0.12 89 5 1 1152 5.0 8 OTD419 651450.2 4766849.0 -0.13 1.20 0.26 65 5 1 1172 5.0 8 OTD419 651450.4 4766849.0 -5.11 0.65 0.13 33 5 1 1177 5.0 8 OTD419 651450.5 4766848.5 -10.09 1.52 0.23 72 5 1 1182 5.0 8 OTD419 651450.7 4766848.0 -15.08 1.03 0.36 146 5 1 1187 5.0 8 OTD419 651450.8 4766847.5 -20.06 1.35 0.20 40 5 1 1192 5.0 8 OTD419 651451.1 4766847.0 -29.03 0.61 0.14 17 4 14 1201 5.0 8 OTD419 651451.2 4766846.5 -34.02 1.79 0.53 32 4 14 1206 5.0 8 OTD419 651451.4 4766846.5 -39.00 1.23 0.43 36 4 14 1211 5.0 8 OTD419 651451.6 4766846.0 -43.99 0.72 0.15 13 4 14 1216 5.0 8 OTD419 651451.8 4766846.0 -48.97 1.18 0.36 36 4 14 1221 5.0 8 OTD419 651451.9 4766845.5 -53.96 1.12 1.00 27 4 14 1226 5.0 8 OTD419 651452.1 4766845.0 -58.94 1.23 0.46 30 4 14 1231 5.0 8 OTD419 651452.3 4766844.5 -63.92 1.69 0.45 29 4 14 1236 5.0 8 OTD419 651452.4 4766844.0 -68.91 0.81 0.24 55 4 14 1241 5.0 8 OTD419 651452.6 4766844.0 -73.89 1.36 1.03 92 4 14 1246 5.0 8 OTD419 651452.8 4766843.5 -78.87 1.19 0.47 46 4 14 1251 5.0 8 OTD419 651452.9 4766843.5 -83.85 1.17 0.40 45 4 14 1256 5.0 8 OTD419 651453.2 4766843.0 -88.84 0.91 0.27 36 4 14 1261 5.0 8 OTD419 651453.3 4766842.5 -92.82 1.16 0.33 29 4 14 1264 3.0 8 OTD419 651454.3 4766840.5 -118.72 1.12 0.54 16 6 14 1291 5.0 8 OTD419 651454.6 4766840.0 -128.68 0.85 0.40 28 6 14 1301 5.0 8 OTD419 651454.8 4766839.5 -133.66 0.88 0.75 31 6 14 1306 5.0 8 OTD419 651455.2 4766838.5 -143.62 0.63 0.26 58 6 14 1316 5.0 8 OTD419 651455.4 4766838.0 -148.60 0.72 0.28 76 6 14 1321 5.0 8 OTD419 651455.6 4766837.5 -153.58 1.08 0.44 117 6 14 1326 5.0 8 OTD419 651455.7 4766837.5 -158.06 1.15 0.48 99 6 14 1330 4.0 8 OTD422 651263.9 4766404.0 531.96 0.75 0.01 5 10 7 673 5.0 8 OTD446 651115.3 4766504.0 635.80 1.36 0.02 8 10 7 535 5.0 8 OTD446 651115.6 4766504.0 630.81 1.29 0.02 5 10 7 540 5.0 8 OTD446 651120.8 4766501.0 531.01 0.69 0.09 139 10 7 640 5.0 8 OTD447 651575.6 4766427.0 447.58 1.09 0.02 7 5 7 803 5.0 8 OTD447 651573.3 4766428.5 443.52 1.34 0.01 5 5 7 808 5.0 8 OTD447 651571.0 4766430.5 439.46 1.66 0.03 9 5 7 813 5.0 8 OTD447 651568.2 4766432.5 434.59 2.37 0.02 5 2 7 819 5.0 8 OTD447 651565.9 4766434.0 430.54 2.06 0.01 5 2 1 824 5.0 8 OTD447 651564.3 4766435.5 427.70 2.16 0.02 5 2 1 826 2.0 8 OTD447 651562.7 4766437.0 424.86 1.05 0.01 5 5 1 831 5.0 8 OTD447 651560.4 4766438.5 420.81 1.23 0.01 7 5 1 836 5.0 8 OTD447 651558.1 4766440.0 416.76 1.40 0.02 7 5 1 841 5.0 8 OTD447 651555.9 4766442.0 412.71 1.39 0.14 18 5 1 846 5.0 8 OTD447 651553.6 4766444.0 408.66 1.57 0.21 231 5 1 851 5.0 8 OTD447 651550.9 4766446.0 403.81 1.55 0.15 187 4 14 857 5.0 8 OTD447 651548.7 4766448.0 399.76 1.52 0.12 211 4 14 862 5.0 8 OTD447 651546.4 4766450.0 395.72 1.51 0.06 68 4 14 867 5.0 8 OTD447 651544.2 4766452.0 391.68 1.50 0.09 62 4 14 872 5.0 8 OTD447 651541.9 4766453.5 387.64 1.34 0.17 88 4 14 877 5.0 8 OTD447 651539.7 4766455.5 383.60 1.12 0.12 130 4 14 882 5.0 8 OTD447 651537.4 4766458.0 379.56 0.76 0.06 164 4 14 887 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD447 651535.2 4766459.5 375.53 1.24 0.12 220 4 14 892 5.0 8 OTD447 651532.9 4766461.5 371.50 1.29 0.17 233 4 14 897 5.0 8 OTD447 651530.7 4766463.5 367.46 1.09 0.16 195 4 14 902 5.0 8 OTD447 651528.4 4766465.5 363.44 1.06 0.14 177 4 14 907 5.0 8 OTD447 651526.1 4766467.0 359.41 1.40 0.18 117 4 14 912 5.0 8 OTD447 651524.6 4766468.5 356.59 1.01 0.25 100 4 14 914 2.0 8 OTD447 651523.6 4766469.5 354.98 0.87 0.16 80 6 14 916 2.0 8 OTD447 651514.8 4766476.5 339.25 0.73 0.08 63 10 14 937 5.0 8 OTD447 651503.6 4766486.0 319.02 0.85 0.19 60 10 14 962 5.0 8 OTD447 651461.3 4766522.0 242.18 0.62 0.09 39 10 14 1057 5.0 8 OTD447A 651596.1 4766417.0 420.54 1.29 0.02 12 5 7 815 5.0 8 OTD447A 651594.3 4766419.0 416.17 1.70 0.04 6 5 7 820 5.0 8 OTD447A 651592.4 4766420.5 411.81 1.07 0.05 23 5 7 825 5.0 8 OTD447A 651590.6 4766422.0 407.44 0.79 0.02 23 5 7 830 5.0 8 OTD447A 651589.3 4766423.5 404.41 1.92 0.06 5 5 7 832 2.0 8 OTD447A 651588.0 4766424.5 401.37 2.73 0.05 5 2 7 837 5.0 8 OTD447A 651586.2 4766426.0 397.04 2.99 0.09 7 2 7 842 5.0 8 OTD447A 651584.4 4766428.0 392.70 3.43 0.09 5 2 7 847 5.0 8 OTD447A 651582.5 4766430.0 388.37 2.49 0.06 9 2 7 852 5.0 8 OTD447A 651580.9 4766431.0 384.48 2.51 0.08 12 2 7 856 4.0 8 OTD447A 651579.3 4766432.5 380.60 1.57 0.06 5 5 1 861 5.0 8 OTD447A 651577.5 4766434.5 376.28 1.34 0.02 5 5 1 866 5.0 8 OTD447A 651575.7 4766436.0 371.96 1.64 0.09 30 5 1 871 5.0 8 OTD447A 651573.9 4766438.0 367.65 1.66 0.24 109 5 1 876 5.0 8 OTD447A 651572.1 4766440.0 363.34 1.67 0.21 152 5 1 881 5.0 8 OTD447A 651570.3 4766442.0 359.05 1.78 0.22 114 5 1 886 5.0 8 OTD447A 651568.5 4766444.0 354.75 1.93 0.16 48 5 1 891 5.0 8 OTD447A 651566.7 4766445.5 350.46 1.55 0.14 170 5 1 896 5.0 8 OTD447A 651564.9 4766447.5 346.16 1.58 0.14 150 5 1 901 5.0 8 OTD447A 651563.1 4766449.5 341.89 1.40 0.18 135 5 1 906 5.0 8 OTD447A 651561.3 4766451.0 337.61 1.38 0.19 173 5 1 911 5.0 8 OTD447A 651559.5 4766453.0 333.34 1.10 0.13 151 5 1 916 5.0 8 OTD447A 651557.9 4766454.5 329.50 1.02 0.11 188 5 1 920 4.0 8 OTD447A 651556.3 4766456.5 325.66 1.28 0.11 130 4 14 925 5.0 8 OTD447A 651554.4 4766458.5 321.41 1.33 0.08 88 4 14 930 5.0 8 OTD447A 651552.8 4766460.0 317.58 1.45 0.08 145 4 14 934 4.0 8 OTD447A 651551.4 4766461.5 314.18 1.07 0.10 146 6 14 938 4.0 8 OTD449 651648.7 4767185.0 230.88 0.69 0.03 52 7 1 1048 5.0 8 OTD449 651623.0 4767187.0 201.66 1.08 0.04 12 5 1 1087 5.0 8 OTD449 651619.6 4767187.5 197.94 1.13 0.03 24 5 1 1092 5.0 8 OTD449 651616.3 4767187.5 194.23 0.83 0.03 12 5 1 1097 5.0 8 OTD449 651612.9 4767188.0 190.52 1.19 0.05 12 5 1 1102 5.0 8 OTD449 651609.6 4767188.5 186.83 1.43 0.06 5 5 1 1107 5.0 8 OTD449 651606.3 4767188.5 183.14 1.18 0.05 5 5 1 1112 5.0 8 OTD449 651603.9 4767189.0 180.55 1.53 0.06 5 5 1 1114 2.0 8 OTD449 651601.6 4767189.5 177.97 2.68 0.33 5 2 1 1119 5.0 8 OTD449 651597.5 4767189.5 173.57 3.03 0.54 5 3 1 1125 5.0 8 OTD449 651594.1 4767190.0 169.91 2.68 1.06 79 3 1 1130 5.0 8 OTD449 651591.1 4767190.5 166.62 2.32 0.89 33 4 1 1134 4.0 8 OTD449 651589.0 4767190.5 164.42 0.99 0.24 21 5 1 1136 2.0 8 OTD449 651561.9 4767194.0 135.94 1.43 0.27 66 5 1 1177 5.0 8 OTD449 651558.4 4767195.0 132.37 1.25 0.20 51 5 1 1182 5.0 8 OTD449 651555.0 4767195.5 128.81 0.78 0.19 65 5 1 1187 5.0 8 OTD449 651551.5 4767196.0 125.27 0.91 0.25 77 5 1 1192 5.0 8 OTD449 651548.0 4767196.5 121.73 1.13 0.21 86 5 1 1197 5.0 8 OTD449 651544.5 4767197.5 118.19 1.09 0.24 72 5 1 1202 5.0 8 OTD449 651541.0 4767198.0 114.69 1.72 0.45 152 5 1 1207 5.0 8 OTD449 651537.5 4767198.5 111.18 1.02 0.24 23 5 1 1212 5.0 8 OTD449 651533.9 4767199.5 107.67 0.62 0.22 38 5 1 1217 5.0 8 OTD449 651512.8 4767203.5 86.89 1.62 0.18 246 5 1 1247 5.0 8 OTD449 651509.2 4767204.5 83.45 2.03 0.19 248 5 1 1252 5.0 8 OTD449 651505.7 4767205.5 80.04 1.90 0.15 155 5 1 1257 5.0 8 OTD449 651502.1 4767206.5 76.63 1.85 0.12 129 5 1 1262 5.0 8 OTD449 651498.6 4767207.0 73.22 1.40 0.13 77 5 1 1267 5.0 8 OTD449 651495.1 4767208.0 69.80 1.03 0.13 86 5 1 1272 5.0 8 OTD449 651491.6 4767209.0 66.39 1.53 0.13 94 5 1 1277 5.0 8 OTD449 651488.1 4767210.0 62.97 1.46 0.15 109 5 1 1282 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD449 651484.5 4767211.0 59.55 1.46 0.23 232 5 1 1287 5.0 8 OTD449 651481.0 4767212.0 56.13 1.25 0.18 174 5 1 1292 5.0 8 OTD449 651477.5 4767213.0 52.71 1.57 0.15 195 5 1 1297 5.0 8 OTD449 651473.9 4767214.0 49.28 1.60 0.14 235 5 1 1302 5.0 8 OTD449 651470.4 4767215.0 45.85 1.26 0.11 204 5 1 1307 5.0 8 OTD449 651466.9 4767216.0 42.42 1.12 0.13 176 5 1 1312 5.0 8 OTD449 651436.5 4767223.5 13.03 1.15 0.37 79 5 1 1355 5.0 8 OTD449 651433.0 4767224.5 9.62 1.60 0.19 67 5 1 1360 5.0 8 OTD449 651429.4 4767225.0 6.22 1.31 0.14 76 5 1 1365 5.0 8 OTD449 651425.9 4767226.5 2.82 1.34 0.15 55 5 1 1370 5.0 8 OTD449 651422.4 4767227.5 -0.60 1.68 0.17 109 5 1 1375 5.0 8 OTD449 651418.9 4767228.0 -4.02 1.56 0.16 105 5 1 1380 5.0 8 OTD449 651415.3 4767229.0 -7.43 2.09 0.26 125 5 1 1385 5.0 8 OTD449 651411.9 4767230.0 -10.86 1.73 0.27 83 5 1 1390 5.0 8 OTD449 651408.3 4767231.0 -14.29 1.64 0.19 54 5 1 1395 5.0 8 OTD449 651404.8 4767232.0 -17.73 1.72 0.26 49 5 1 1400 5.0 8 OTD449 651394.3 4767235.0 -28.05 0.98 0.12 13 5 1 1415 5.0 8 OTD449 651390.1 4767236.0 -32.19 2.32 0.59 23 2 1 1421 5.0 8 OTD449 651386.6 4767237.0 -35.64 1.96 0.52 29 2 1 1426 5.0 8 OTD449 651383.1 4767238.0 -39.09 2.33 0.38 32 2 1 1431 5.0 8 OTD449 651379.6 4767239.0 -42.54 2.08 0.32 79 2 1 1436 5.0 8 OTD449 651376.9 4767239.5 -45.30 1.65 0.23 28 2 1 1439 3.0 8 OTD449A 651740.9 4767226.0 189.98 0.76 0.01 51 10 7 1035 5.0 8 OTD449A 651738.9 4767226.5 185.44 0.76 0.02 25 10 7 1040 5.0 8 OTD449A 651724.4 4767228.5 153.67 0.65 0.02 79 10 7 1075 5.0 8 OTD449A 651719.4 4767229.5 142.78 0.74 0.02 97 7 7 1087 5.0 8 OTD449A 651715.3 4767230.0 133.69 0.94 0.01 145 7 7 1097 5.0 8 OTD449A 651713.3 4767230.5 129.15 0.85 0.01 70 7 7 1102 5.0 8 OTD449A 651711.3 4767230.5 124.60 0.84 0.01 40 7 7 1107 5.0 8 OTD449A 651709.6 4767231.0 120.97 0.89 0.01 42 7 7 1110 3.0 8 OTD449A 651707.9 4767231.5 117.33 1.21 0.03 59 5 7 1115 5.0 8 OTD449A 651705.9 4767231.5 112.79 1.29 0.05 36 5 1 1120 5.0 8 OTD449A 651703.8 4767232.0 108.24 1.54 0.03 9 5 1 1125 5.0 8 OTD449A 651701.8 4767232.5 103.69 1.59 0.03 15 5 1 1130 5.0 8 OTD449A 651699.7 4767232.5 99.15 1.71 0.03 49 5 1 1135 5.0 8 OTD449A 651697.7 4767233.0 94.60 1.04 0.02 20 5 1 1140 5.0 8 OTD449A 651695.9 4767233.5 90.51 1.03 0.04 29 5 1 1144 4.0 8 OTD449A 651694.0 4767234.0 86.41 2.21 0.04 31 2 1 1149 5.0 8 OTD449A 651692.1 4767234.5 81.86 2.61 0.06 29 2 1 1154 5.0 8 OTD449A 651690.0 4767235.0 77.31 2.34 0.05 46 2 1 1159 5.0 8 OTD449A 651685.9 4767236.0 68.21 2.49 0.12 35 2 1 1169 5.0 8 OTD449A 651683.9 4767236.5 63.66 3.72 0.17 15 2 1 1174 5.0 8 OTD449A 651681.9 4767236.5 59.10 4.15 0.15 8 2 1 1179 5.0 8 OTD449A 651679.9 4767237.0 54.54 5.06 0.25 18 2 1 1184 5.0 8 OTD449A 651678.6 4767238.0 51.35 3.43 0.86 27 2 1 1186 2.0 8 OTD449A 651677.2 4767238.0 48.15 4.59 1.50 9 3 1 1191 5.0 8 OTD449A 651675.2 4767238.5 43.59 5.80 2.77 11 3 1 1196 5.0 8 OTD449A 651673.1 4767239.0 39.03 4.11 2.29 28 3 1 1201 5.0 8 OTD449A 651671.1 4767239.5 34.46 4.30 2.73 67 3 1 1206 5.0 8 OTD449A 651669.1 4767240.0 29.88 3.67 2.34 59 3 14 1211 5.0 8 OTD449A 651667.2 4767240.0 25.31 3.61 1.67 56 3 14 1216 5.0 8 OTD449A 651665.2 4767240.5 20.74 3.45 2.20 90 3 14 1221 5.0 8 OTD449A 651663.2 4767241.0 16.18 4.19 2.58 93 3 14 1226 5.0 8 OTD449A 651661.2 4767241.5 11.63 4.94 2.39 38 3 1 1231 5.0 8 OTD449A 651659.2 4767242.0 7.07 4.01 2.61 49 3 1 1236 5.0 8 OTD449A 651657.2 4767242.5 2.52 3.32 1.51 43 3 1 1241 5.0 8 OTD449A 651655.2 4767243.0 -2.02 1.87 0.76 16 3 1 1246 5.0 8 OTD449A 651653.2 4767244.0 -6.57 0.86 0.17 24 3 1 1251 5.0 8 OTD449A 651651.2 4767244.0 -11.11 2.49 1.29 51 3 1 1256 5.0 8 OTD449A 651649.1 4767245.0 -15.64 3.75 2.10 18 3 1 1261 5.0 8 OTD449A 651647.1 4767245.5 -20.17 2.91 1.28 23 3 1 1266 5.0 8 OTD449A 651645.1 4767246.0 -24.71 3.00 1.23 37 3 1 1271 5.0 8 OTD449A 651643.1 4767247.0 -29.24 1.99 0.84 15 3 1 1276 5.0 8 OTD449A 651641.1 4767247.0 -33.76 3.40 1.26 19 3 1 1281 5.0 8 OTD449A 651639.0 4767247.5 -38.27 2.29 0.61 12 3 1 1286 5.0 8 OTD449A 651636.9 4767248.5 -42.78 3.00 1.00 31 3 1 1291 5.0 8 OTD449A 651634.9 4767249.0 -47.30 3.01 0.98 22 3 1 1296 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD449A 651632.8 4767249.5 -51.82 3.24 1.45 45 3 1 1301 5.0 8 OTD449A 651630.6 4767249.5 -56.31 3.37 1.51 44 3 1 1306 5.0 8 OTD449A 651628.5 4767250.0 -60.80 0.98 0.36 14 3 1 1311 5.0 8 OTD449A 651624.3 4767251.0 -69.79 1.74 0.56 21 3 14 1321 5.0 8 OTD449A 651622.1 4767251.5 -74.28 2.04 0.76 15 3 14 1326 5.0 8 OTD449A 651619.9 4767252.0 -78.78 2.08 0.77 12 3 14 1331 5.0 8 OTD449A 651618.3 4767252.5 -82.37 2.07 1.38 16 3 14 1334 3.0 8 OTD449A 651616.9 4767253.0 -85.25 1.47 0.40 5 2 14 1337.4 3.4 8 OTD455 651712.8 4767114.0 287.61 0.87 0.03 31 10 7 880 5.0 8 OTD455 651710.1 4767112.5 245.73 0.75 0.01 336 7 7 922 5.0 8 OTD455 651709.8 4767112.0 240.75 1.03 0.01 21 7 7 927 5.0 8 OTD455 651709.5 4767112.0 236.76 0.97 0.01 29 7 7 930 3.0 8 OTD455 651709.3 4767111.5 232.78 1.15 0.02 89 5 7 935 5.0 8 OTD455 651708.9 4767111.0 227.79 1.02 0.02 30 5 7 940 5.0 8 OTD455 651708.6 4767111.0 222.81 2.38 0.05 12 5 7 945 5.0 8 OTD455 651708.3 4767111.0 217.82 1.24 0.04 28 5 7 950 5.0 8 OTD455 651707.9 4767111.0 212.84 1.21 0.01 8 5 7 955 5.0 8 OTD455 651707.6 4767110.5 207.86 0.87 0.01 14 5 1 960 5.0 8 OTD455 651706.9 4767110.0 198.89 1.03 0.06 5 5 1 968 3.0 8 OTD455 651706.7 4767110.0 194.90 3.14 0.56 14 2 1 973 5.0 8 OTD455 651706.4 4767109.5 189.92 2.76 0.35 14 2 1 978 5.0 8 OTD455 651706.1 4767109.5 184.93 3.42 0.32 5 2 1 983 5.0 8 OTD455 651705.8 4767109.5 179.95 1.52 0.16 5 2 1 988 5.0 8 OTD455 651705.4 4767109.0 174.96 4.01 0.28 6 2 1 993 5.0 8 OTD455 651705.1 4767109.0 169.98 4.92 0.41 9 2 1 998 5.0 8 OTD455A 651698.4 4767097.0 258.83 1.62 0.01 146 5 7 911 5.0 8 OTD455A 651697.8 4767097.0 253.87 1.24 0.02 175 5 7 916 5.0 8 OTD455A 651697.3 4767096.0 248.91 1.89 0.16 58 5 1 921 5.0 8 OTD455A 651696.8 4767095.5 243.95 1.33 0.24 7 5 1 926 3.0 8 OTD455A 651695.4 4767095.0 231.05 2.64 0.43 10 2 1 939 5.0 8 OTD455A 651694.9 4767094.5 226.09 2.90 0.41 14 2 1 944 5.0 8 OTD455A 651694.4 4767094.0 221.12 2.68 0.41 5 3 1 949 5.0 8 OTD455A 651693.9 4767094.0 216.16 2.73 0.50 5 3 1 954 5.0 8 OTD455A 651693.3 4767094.0 211.20 2.50 0.39 14 3 1 959 5.0 8 OTD455A 651692.8 4767093.5 206.24 3.54 0.64 12 3 1 964 5.0 8 OTD455A 651692.3 4767093.0 201.27 3.79 0.58 7 3 1 969 5.0 8 OTD455A 651691.8 4767093.0 196.31 4.15 0.43 17 3 1 974 5.0 8 OTD455A 651691.3 4767092.5 191.35 3.18 0.45 13 3 1 979 5.0 8 OTD455A 651690.8 4767092.0 186.38 3.50 0.42 13 3 1 984 5.0 8 OTD455A 651690.3 4767092.0 181.42 4.18 0.44 142 3 1 989 5.0 8 OTD455A 651689.7 4767091.5 176.46 5.11 0.32 171 3 1 994 5.0 8 OTD455A 651689.2 4767091.0 171.49 2.99 0.49 64 3 1 999 5.0 8 OTD455A 651688.7 4767091.0 166.53 3.55 0.42 31 3 1 1004 5.0 8 OTD455A 651688.2 4767090.5 161.57 4.55 0.68 57 3 1 1009 5.0 8 OTD455A 651687.7 4767090.0 156.60 9.22 1.28 97 3 1 1014 5.0 8 OTD455A 651687.1 4767089.5 151.64 4.28 0.98 12 3 1 1019 5.0 8 OTD455A 651686.6 4767089.5 146.68 4.30 1.28 6 3 1 1024 5.0 8 OTD455A 651686.1 4767089.5 141.72 4.65 1.43 73 3 1 1029 5.0 8 OTD455A 651685.6 4767089.0 136.76 4.69 1.55 39 3 1 1034 5.0 8 OTD455A 651685.1 4767088.5 131.79 4.49 1.28 124 3 1 1039 5.0 8 OTD455A 651684.6 4767088.5 126.83 4.46 0.98 163 3 1 1044 5.0 8 OTD455A 651684.0 4767088.0 121.87 3.78 0.79 18 3 14 1049 5.0 8 OTD455A 651683.4 4767087.5 116.91 3.24 0.51 5 3 14 1054 5.0 8 OTD455A 651682.9 4767087.0 111.95 2.93 0.57 5 3 14 1059 5.0 8 OTD455A 651682.4 4767087.0 106.99 2.45 0.58 10 3 14 1064 5.0 8 OTD455A 651681.9 4767086.5 102.02 2.32 0.36 5 3 14 1069 5.0 8 OTD455A 651681.4 4767086.0 97.07 1.65 0.21 18 3 14 1074 5.0 8 OTD455A 651680.8 4767085.5 92.11 2.17 0.55 6 3 14 1079 5.0 8 OTD455A 651679.8 4767085.0 82.19 1.80 0.52 8 3 1 1089 5.0 8 OTD455A 651679.2 4767085.0 77.24 4.37 2.19 15 3 1 1094 5.0 8 OTD455A 651678.6 4767084.5 72.28 4.06 1.24 51 3 1 1099 5.0 8 OTD455A 651678.0 4767084.5 67.32 3.84 1.64 35 3 1 1104 5.0 8 OTD455A 651677.4 4767084.0 62.37 3.87 1.33 43 3 1 1109 5.0 8 OTD455A 651676.9 4767083.5 57.42 3.83 1.51 20 3 1 1114 5.0 8 OTD455A 651676.3 4767083.5 52.46 4.46 1.31 49 3 1 1119 5.0 8 OTD455A 651675.7 4767083.0 47.51 3.56 1.33 84 3 1 1124 5.0 8 OTD455A 651675.1 4767083.0 42.55 3.46 1.04 83 3 1 1129 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD455A 651674.5 4767082.5 37.60 2.97 0.67 76 3 1 1134 5.0 8 OTD455A 651673.9 4767082.0 32.64 3.46 3.93 284 3 1 1139 5.0 8 OTD455A 651673.3 4767082.0 27.69 3.82 3.96 610 3 1 1144 5.0 8 OTD455A 651672.7 4767081.5 22.73 3.92 0.59 354 3 1 1149 5.0 8 OTD455A 651672.1 4767081.5 17.78 1.95 0.68 132 3 1 1154 5.0 8 OTD455A 651671.5 4767080.5 12.82 2.88 0.73 109 3 1 1159 5.0 8 OTD455A 651670.9 4767080.5 7.86 3.17 0.87 195 3 1 1164 5.0 8 OTD455A 651670.4 4767080.0 2.91 2.64 0.34 132 3 1 1169 5.0 8 OTD455A 651669.8 4767079.5 -2.05 2.56 0.47 94 3 1 1174 5.0 8 OTD455A 651669.2 4767079.5 -7.00 0.65 0.14 47 2 1 1179 5.0 8 OTD455A 651665.6 4767077.5 -38.73 2.42 0.44 333 2 14 1211 5.0 8 OTD455A 651665.1 4767077.0 -43.68 2.44 0.22 336 2 14 1216 5.0 8 OTD455A 651664.6 4767077.0 -47.16 2.35 0.21 185 1 14 1218 2.0 8 OTD455A 651663.7 4767076.5 -55.58 1.95 0.30 213 4 14 1228 5.0 8 OTD455A 651663.1 4767076.0 -60.54 1.21 0.21 83 4 14 1233 5.0 8 OTD455A 651662.6 4767076.0 -65.50 0.68 0.24 15 4 14 1238 5.0 8 OTD455A 651662.0 4767075.5 -70.46 1.41 0.54 34 4 14 1243 5.0 8 OTD455A 651661.4 4767075.0 -75.41 1.81 0.46 33 4 14 1248 5.0 8 OTD455A 651660.9 4767075.0 -80.37 1.15 0.23 42 4 14 1253 5.0 8 OTD455A 651660.4 4767075.0 -85.33 1.15 0.21 34 4 14 1258 5.0 8 OTD455A 651659.9 4767074.5 -90.29 1.03 0.22 70 4 14 1263 5.0 8 OTD455A 651659.4 4767074.0 -94.26 1.19 0.23 128 4 14 1266 3.0 8 OTD455A 651658.9 4767074.0 -98.22 1.00 0.15 59 6 14 1271 5.0 8 OTD455A 651658.4 4767073.5 -103.18 1.13 0.18 62 6 14 1276 5.0 8 OTD455A 651657.8 4767073.0 -108.13 0.92 0.27 60 6 14 1281 5.0 8 OTD455A 651657.3 4767073.0 -113.09 0.92 0.17 50 6 14 1286 5.0 8 OTD455A 651656.6 4767073.0 -118.04 1.08 0.16 43 6 14 1291 5.0 8 OTD455A 651649.8 4767069.5 -171.53 0.75 0.17 15 6 14 1345 5.0 8 OTD455A 651649.2 4767069.0 -176.48 0.75 0.11 33 6 14 1350 5.0 8 OTD455A 651648.6 4767069.0 -181.44 0.66 0.14 31 6 14 1355 5.0 8 OTD455A 651648.0 4767068.5 -186.39 1.21 0.43 34 6 14 1360 5.0 8 OTD455A 651647.4 4767068.5 -191.35 0.74 0.13 37 6 14 1365 5.0 8 OTD455A 651646.7 4767068.0 -196.31 0.80 0.17 38 6 14 1370 5.0 8 OTD455A 651646.1 4767067.5 -201.26 0.74 0.17 31 6 14 1375 5.0 8 OTD455A 651645.5 4767067.0 -206.22 0.74 0.26 24 6 14 1380 5.0 8 OTD455A 651644.9 4767067.0 -211.18 0.64 0.13 29 6 14 1385 5.0 8 OTD455A 651643.8 4767066.5 -221.09 0.74 0.37 26 6 14 1395 5.0 8 OTD455A 651643.2 4767066.0 -226.05 0.71 0.54 19 6 14 1400 5.0 8 OTD455A 651642.7 4767066.0 -231.00 0.76 0.71 34 6 14 1405 5.0 8 OTD455A 651642.1 4767065.5 -235.96 0.95 0.57 22 6 14 1410 5.0 8 OTD455A 651641.5 4767065.5 -240.92 0.86 0.94 20 6 14 1415 5.0 8 OTD463 651794.0 4766609.0 356.71 1.85 0.03 29 5 1 853 5.0 8 OTD463 651791.8 4766609.5 352.31 1.35 0.43 27 5 1 858 5.0 8 OTD463 651789.6 4766610.5 347.91 1.34 0.03 18 5 1 863 5.0 8 OTD463 651787.3 4766611.5 343.51 1.04 0.02 14 5 1 868 5.0 8 OTD463 651785.1 4766612.0 339.11 1.79 0.06 18 5 1 873 5.0 8 OTD463 651782.9 4766613.0 334.72 1.44 0.06 10 5 1 878 5.0 8 OTD463 651780.7 4766614.0 330.33 1.38 0.03 14 5 1 883 5.0 8 OTD463 651778.5 4766614.5 325.94 1.69 0.04 9 5 1 888 5.0 8 OTD463 651776.3 4766615.5 321.56 1.71 0.02 11 5 1 893 5.0 8 OTD463 651774.0 4766616.5 317.18 1.75 0.05 20 5 1 898 5.0 8 OTD463 651771.8 4766617.0 312.80 1.53 0.04 26 5 1 903 5.0 8 OTD463 651769.5 4766618.0 308.43 0.92 0.03 21 5 1 908 5.0 8 OTD463 651767.3 4766619.0 304.06 1.81 0.02 9 5 1 913 5.0 8 OTD463 651765.0 4766620.0 299.69 1.31 0.01 10 5 1 918 5.0 8 OTD463 651762.7 4766621.0 295.32 2.60 0.04 7 2 1 923 5.0 8 OTD463 651760.4 4766621.5 290.96 3.30 0.15 5 2 1 928 5.0 8 OTD463 651758.2 4766622.5 286.60 3.67 0.12 5 2 1 933 5.0 8 OTD463 651755.9 4766623.5 282.24 3.15 0.10 5 2 1 938 5.0 8 OTD463 651753.6 4766624.5 277.89 2.81 0.08 5 2 1 943 5.0 8 OTD463 651751.3 4766625.5 273.54 3.48 0.14 9 2 1 948 5.0 8 OTD463 651749.0 4766626.5 269.20 4.47 0.21 20 2 1 953 5.0 8 OTD463 651746.7 4766627.5 264.85 4.24 0.22 9 2 1 958 5.0 8 OTD463 651744.4 4766628.5 260.51 4.26 0.20 7 2 1 963 5.0 8 OTD463 651742.1 4766629.5 256.17 4.42 0.14 10 2 1 968 5.0 8 OTD463 651739.8 4766630.5 251.85 3.34 0.13 8 2 1 973 5.0 8 OTD463 651737.5 4766631.5 247.52 3.84 0.11 9 2 1 978 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD463 651735.2 4766632.0 243.20 1.72 0.05 5 2 1 983 5.0 8 OTD463 651732.9 4766633.5 238.88 2.58 0.15 5 2 1 988 5.0 8 OTD463 651730.5 4766634.5 234.58 3.40 0.09 5 2 1 993 5.0 8 OTD463 651728.1 4766635.5 230.27 3.56 0.07 5 2 1 998 5.0 8 OTD463 651725.8 4766636.0 225.97 4.55 0.11 10 2 1 1003 5.0 8 OTD463 651723.3 4766637.0 221.69 3.23 0.22 5 2 1 1008 5.0 8 OTD463 651720.9 4766638.0 217.40 3.11 0.10 21 2 1 1013 5.0 8 OTD463 651718.6 4766639.0 213.11 3.82 0.16 27 2 1 1018 5.0 8 OTD463 651716.2 4766640.0 208.82 2.91 0.14 23 2 1 1023 5.0 8 OTD463 651713.3 4766641.0 203.70 0.96 0.10 45 5 1 1029 5.0 8 OTD463 651710.4 4766642.5 198.58 1.30 0.14 100 4 14 1035 5.0 8 OTD463 651708.0 4766643.0 194.32 1.38 0.10 65 4 14 1040 5.0 8 OTD463 651705.6 4766644.0 190.05 1.26 0.15 57 4 14 1045 5.0 8 OTD463 651703.1 4766645.0 185.81 1.33 0.13 48 4 14 1050 5.0 8 OTD463 651700.6 4766646.0 181.56 1.03 0.17 56 4 14 1055 5.0 8 OTD463 651695.8 4766648.0 173.07 1.33 0.23 117 6 14 1064 3.0 8 OTD463 651678.9 4766655.0 144.38 0.66 0.19 68 10 14 1099 5.0 8 OTD463 651676.4 4766656.0 140.18 0.74 0.13 82 10 14 1104 5.0 8 OTD463 651673.8 4766657.0 135.97 0.71 0.24 71 10 14 1109 5.0 8 OTD463 651668.8 4766659.0 127.61 0.69 0.14 74 10 14 1119 5.0 8 OTD463 651666.3 4766660.0 123.43 0.82 0.09 135 10 14 1124 5.0 8 OTD463 651663.7 4766661.5 119.24 0.71 0.09 128 10 14 1129 5.0 8 OTD463 651588.8 4766693.5 3.10 0.92 0.21 76 10 14 1271 5.0 8 OTD463 651581.8 4766696.0 -7.36 0.68 0.16 39 6 14 1284 5.0 8 OTD463 651579.1 4766697.5 -11.39 0.67 0.13 56 6 14 1289 5.0 8 OTD463 651576.9 4766698.5 -14.60 0.74 0.18 56 6 14 1292 3.0 8 OTD463 651560.8 4766706.0 -38.69 0.85 0.21 64 6 14 1323 5.0 8 OTD463 651558.1 4766707.0 -42.70 1.15 0.50 64 6 14 1328 5.0 8 OTD463 651555.4 4766708.5 -46.70 1.15 0.34 38 6 14 1333 5.0 8 OTD463 651552.7 4766710.0 -50.70 0.81 0.25 41 6 14 1338 5.0 8 OTD463 651550.0 4766711.5 -54.70 1.04 0.34 28 6 14 1343 5.0 8 OTD463 651547.3 4766712.5 -58.68 1.18 0.36 41 6 14 1348 5.0 8 OTD463 651545.3 4766713.5 -61.47 1.27 0.36 36 6 14 1350 2.0 8 OTD463 651527.9 4766721.0 -86.42 0.84 0.31 32 6 14 1383 5.0 8 OTD463 651525.1 4766722.5 -90.36 0.71 0.32 21 6 14 1388 5.0 8 OTD463 651522.4 4766724.0 -94.31 0.72 0.22 66 6 14 1393 5.0 8 OTD463 651511.4 4766729.5 -110.02 0.71 0.16 28 6 14 1413 5.0 8 OTD463 651503.1 4766734.0 -121.74 0.84 0.33 93 6 14 1428 5.0 8 OTD463 651497.6 4766737.0 -129.53 0.78 0.35 48 6 14 1438 5.0 8 OTD463 651483.8 4766745.0 -148.86 1.28 0.43 57 6 14 1463 5.0 8 OTD463 651481.1 4766746.5 -152.72 1.00 0.28 69 6 14 1468 5.0 8 OTD463 651475.5 4766750.0 -160.40 0.89 0.39 37 6 14 1478 5.0 8 OTD463 651472.7 4766751.5 -164.23 0.80 0.32 48 6 14 1483 5.0 8 OTD463 651469.9 4766753.0 -168.07 0.66 0.41 18 6 14 1488 5.0 8 OTD463 651467.1 4766754.5 -171.90 1.09 0.53 20 6 14 1493 5.0 8 OTD463 651464.3 4766756.5 -175.74 1.00 0.52 37 6 14 1498 5.0 8 OTD463 651461.9 4766757.5 -179.15 0.98 0.30 32 6 14 1501.9 3.9 8 OTD463A 651714.3 4766610.0 441.58 1.27 0.04 54 7 7 820 2.0 8 OTD463A 651711.8 4766611.0 439.35 1.48 0.06 79 5 7 825 5.0 8 OTD463A 651708.1 4766612.5 436.18 1.26 0.02 27 5 7 830 5.0 8 OTD463A 651704.4 4766614.0 433.00 1.49 0.03 23 5 7 835 5.0 8 OTD463A 651700.8 4766615.0 429.83 1.16 0.03 20 5 7 840 5.0 8 OTD463A 651697.3 4766616.5 426.67 1.04 0.05 27 5 7 845 5.0 8 OTD463A 651693.6 4766618.0 423.50 1.44 0.06 15 5 7 850 5.0 8 OTD463A 651690.1 4766619.5 420.33 1.67 0.06 16 5 7 855 5.0 8 OTD463A 651686.5 4766621.0 417.17 1.66 0.05 15 5 7 860 5.0 8 OTD463A 651682.9 4766622.5 414.01 1.59 0.15 29 5 7 865 5.0 8 OTD463A 651679.3 4766624.0 410.86 1.17 0.07 10 5 7 870 5.0 8 OTD463A 651675.8 4766625.5 407.71 1.28 0.04 9 5 7 875 5.0 8 OTD463A 651672.2 4766627.0 404.57 1.55 0.14 9 5 7 880 5.0 8 OTD463A 651669.0 4766628.5 401.74 1.33 0.41 10 5 7 884 4.0 8 OTD463A 651665.8 4766630.0 398.91 2.33 0.71 13 2 7 889 5.0 8 OTD463A 651662.2 4766631.5 395.78 2.34 0.39 13 2 7 894 5.0 8 OTD463A 651658.6 4766633.0 392.65 2.12 0.10 11 2 7 899 5.0 8 OTD463A 651655.0 4766634.5 389.53 2.15 0.09 7 2 7 904 5.0 8 OTD463A 651651.4 4766636.0 386.41 2.19 0.11 9 2 7 909 5.0 8 OTD463A 651647.8 4766638.0 383.30 2.45 0.09 11 2 7 914 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD463A 651644.3 4766639.5 380.18 2.88 0.28 11 2 7 919 5.0 8 OTD463A 651640.7 4766641.0 377.09 1.10 0.09 7 2 7 924 5.0 8 OTD463A 651633.5 4766644.0 370.89 2.07 0.05 72 2 1 934 5.0 8 OTD463A 651629.9 4766645.0 367.80 2.35 0.10 42 2 1 939 5.0 8 OTD463A 651626.9 4766646.5 365.34 2.14 0.07 24 2 1 942 3.0 8 OTD463A 651624.1 4766647.5 362.88 2.13 0.14 43 5 1 947 5.0 8 OTD463A 651620.4 4766649.5 359.80 1.32 0.13 40 5 1 952 5.0 8 OTD463A 651545.3 4766685.5 295.94 0.67 0.08 51 7 1 1057 5.0 8 OTD463A 651541.8 4766687.5 292.91 0.68 0.09 46 7 1 1062 5.0 8 OTD463A 651531.6 4766693.0 284.11 0.67 0.13 120 7 1 1076 4.0 8 OTD463A 651521.4 4766698.5 275.31 0.71 0.11 83 10 1 1091 5.0 8 OTD463A 651514.4 4766702.0 269.25 0.64 0.11 50 10 1 1101 5.0 8 OTD463A 651503.8 4766707.5 260.16 0.72 0.08 66 10 1 1116 5.0 8 OTD463A 651482.6 4766718.5 241.98 0.84 0.13 71 10 1 1146 5.0 8 OTD463A 651479.1 4766720.5 238.96 0.65 0.06 57 10 1 1151 5.0 8 OTD463A 651428.7 4766746.5 196.23 0.81 0.04 88 7 1 1222 5.0 8 OTD463A 651425.1 4766748.0 193.27 0.74 0.07 72 7 1 1227 5.0 8 OTD463A 651421.5 4766750.0 190.33 0.74 0.18 63 7 1 1232 5.0 8 OTD463A 651417.9 4766752.0 187.39 0.87 0.08 99 7 1 1237 5.0 8 OTD463A 651414.4 4766754.0 184.46 1.00 0.09 93 7 1 1242 5.0 8 OTD463A 651403.6 4766760.0 175.75 0.62 0.07 111 7 1 1257 5.0 8 OTD463A 651400.1 4766762.0 172.87 0.67 0.08 92 7 1 1262 5.0 8 OTD463A 651396.5 4766764.0 169.97 0.70 0.06 84 7 1 1267 5.0 8 OTD463A 651392.9 4766766.0 167.13 0.87 0.06 83 7 1 1272 5.0 8 OTD463A 651389.4 4766768.0 164.30 0.68 0.06 90 7 1 1277 5.0 8 OTD463A 651385.8 4766770.0 161.47 0.73 0.08 136 7 1 1282 5.0 8 OTD463A 651382.1 4766772.0 158.66 0.63 0.06 76 7 1 1287 5.0 8 OTD463A 651378.5 4766774.0 155.88 0.87 0.08 128 7 1 1292 5.0 8 OTD463A 651374.9 4766776.0 153.10 0.79 0.09 132 7 1 1297 5.0 8 OTD463A 651371.3 4766778.5 150.32 0.75 0.07 69 7 1 1302 5.0 8 OTD463A 651360.4 4766784.5 142.15 0.70 0.09 82 7 1 1317 5.0 8 OTD463A 651356.8 4766786.5 139.50 0.63 0.11 71 7 1 1322 5.0 8 OTD463A 651353.3 4766789.0 136.85 0.72 0.07 77 7 1 1327 5.0 8 OTD463A 651232.4 4766866.5 57.84 1.12 0.18 59 10 14 1491 5.0 8 OTD463A 651228.7 4766869.0 55.51 1.60 0.22 146 10 14 1496 5.0 8 OTD463A 651225.6 4766871.0 53.58 0.90 0.30 60 10 14 1499.3 3.3 8 OTD464 651919.9 4766309.0 408.80 0.88 0.01 31 10 7 815 5.0 8 OTD464 651916.6 4766311.5 395.43 1.07 0.05 49 7 7 829 5.0 8 OTD464 651915.5 4766312.5 390.65 0.72 0.03 25 7 7 834 5.0 8 OTD464 651914.3 4766313.5 385.87 0.66 0.01 15 7 7 839 5.0 8 OTD464 651911.9 4766315.0 376.31 0.68 0.01 22 7 7 849 5.0 8 OTD464 651910.8 4766316.0 371.53 0.71 0.01 21 7 7 854 5.0 8 OTD464 651909.6 4766317.0 366.75 0.91 0.03 62 7 7 859 5.0 8 OTD464 651908.5 4766318.0 361.97 1.16 0.05 138 7 7 864 5.0 8 OTD464 651907.3 4766319.0 357.19 0.83 0.05 85 7 7 869 5.0 8 OTD464 651906.1 4766319.5 352.41 0.89 0.03 98 7 7 874 5.0 8 OTD464 651905.0 4766320.5 347.63 0.78 0.02 61 7 1 879 5.0 8 OTD464 651903.8 4766321.5 342.84 0.81 0.04 50 7 1 884 5.0 8 OTD464 651902.7 4766322.0 338.06 0.73 0.03 44 7 1 889 5.0 8 OTD464 651900.3 4766324.0 328.50 0.67 0.02 81 7 1 899 5.0 8 OTD464 651899.2 4766325.0 323.72 0.65 0.03 43 7 1 904 5.0 8 OTD464 651898.0 4766326.0 318.94 0.76 0.03 57 7 1 909 5.0 8 OTD464 651896.9 4766326.5 314.16 1.25 0.17 46 7 1 914 5.0 8 OTD464 651895.8 4766327.5 309.38 0.65 0.03 92 7 1 919 5.0 8 OTD464 651892.9 4766329.5 297.91 0.90 0.13 22 6 14 931 5.0 8 OTD464 651891.8 4766330.5 293.13 0.73 0.23 14 6 14 936 5.0 8 OTD464 651890.6 4766331.5 288.35 0.86 0.12 12 6 14 941 5.0 8 OTD464 651889.5 4766332.5 283.57 0.96 0.32 22 6 14 946 5.0 8 OTD464 651888.4 4766333.0 278.79 0.80 0.11 10 6 14 951 5.0 8 OTD464 651887.2 4766334.0 274.01 0.79 0.08 9 6 14 956 5.0 8 OTD464 651886.1 4766335.0 269.23 0.75 0.11 8 6 14 961 5.0 8 OTD464 651884.9 4766336.0 264.45 1.03 0.19 10 6 14 966 5.0 8 OTD464 651884.1 4766336.5 261.10 0.97 0.29 12 6 14 968 2.0 8 OTD464 651878.7 4766341.0 238.63 0.69 0.22 10 6 14 993 5.0 8 OTD464 651877.6 4766342.0 233.84 0.81 0.18 14 6 14 998 5.0 8 OTD464 651876.4 4766343.0 229.06 0.79 0.16 12 6 14 1003 5.0 8 OTD464 651875.3 4766344.0 224.28 0.88 0.30 30 6 14 1008 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD464 651874.2 4766345.0 219.49 0.71 0.20 21 6 14 1013 5.0 8 OTD464 651873.1 4766346.0 214.71 0.81 0.23 17 6 14 1018 5.0 8 OTD464 651872.0 4766347.0 209.92 0.99 0.26 15 6 14 1023 5.0 8 OTD464 651870.9 4766348.0 205.14 0.75 0.24 17 6 14 1028 5.0 8 OTD464 651869.8 4766349.0 200.36 0.83 0.32 9 6 14 1033 5.0 8 OTD464 651868.8 4766350.0 195.58 0.90 0.30 20 6 14 1038 5.0 8 OTD464 651866.6 4766352.0 186.03 0.74 0.20 15 6 14 1048 5.0 8 OTD464 651865.5 4766352.5 181.25 0.86 0.26 18 6 14 1053 5.0 8 OTD464 651864.4 4766353.5 176.47 0.76 0.22 16 6 14 1058 5.0 8 OTD464 651863.4 4766354.5 171.70 1.05 0.28 18 6 14 1063 5.0 8 OTD464 651862.4 4766356.0 166.92 0.78 0.26 9 6 14 1068 5.0 8 OTD464 651861.3 4766357.0 162.15 0.80 0.23 24 6 14 1073 5.0 8 OTD464 651860.3 4766358.0 157.37 0.91 0.20 29 6 14 1078 5.0 8 OTD464 651859.3 4766359.0 152.59 0.85 0.32 26 6 14 1083 4.7 8 OTD464A 651898.7 4766325.0 315.70 1.32 0.05 63 7 1 911.67 5.0 8 OTD464A 651897.6 4766325.5 310.91 0.94 0.07 40 7 1 916.67 5.0 8 OTD464A 651895.4 4766328.0 301.65 0.62 0.04 11 7 1 926 4.3 8 OTD464A 651894.4 4766328.5 297.18 0.88 0.10 30 6 14 931 5.0 8 OTD464A 651893.3 4766329.5 292.40 0.65 0.12 13 6 14 936 5.0 8 OTD464A 651892.2 4766330.5 287.61 0.87 0.14 7 6 14 941 5.0 8 OTD464A 651891.1 4766331.5 282.81 0.67 0.12 7 6 14 946 5.0 8 OTD464A 651890.0 4766332.0 278.02 0.88 0.12 8 6 14 951 5.0 8 OTD464A 651888.9 4766333.0 273.23 1.37 0.49 20 6 14 956 5.0 8 OTD464A 651887.8 4766334.0 268.44 0.65 0.18 5 6 14 961 5.0 8 OTD464A 651886.8 4766335.0 263.64 0.81 0.17 11 6 14 966 5.0 8 OTD464A 651886.0 4766335.5 260.29 0.66 0.12 5 6 14 968 2.0 8 OTD464A 651884.2 4766337.0 252.13 0.62 0.09 5 10 14 978 5.0 8 OTD464A 651881.0 4766340.0 237.75 0.71 0.09 11 6 14 993 5.0 8 OTD464A 651879.9 4766341.0 232.95 0.66 0.08 12 6 14 998 5.0 8 OTD464A 651878.9 4766342.0 228.15 1.27 0.16 8 6 14 1003 5.0 8 OTD464A 651877.8 4766343.0 223.35 1.10 0.28 7 6 14 1008 5.0 8 OTD464A 651876.8 4766343.5 218.55 1.25 0.26 24 6 14 1013 5.0 8 OTD464A 651875.8 4766344.5 213.75 1.09 0.23 31 6 14 1018 5.0 8 OTD464A 651874.8 4766345.5 208.95 1.26 0.36 16 6 14 1023 5.0 8 OTD464A 651873.7 4766346.5 204.15 0.97 0.35 14 6 14 1028 5.0 8 OTD464A 651872.7 4766347.5 199.35 0.89 0.31 5 6 14 1033 5.0 8 OTD464A 651871.6 4766348.0 194.55 0.77 0.23 16 6 14 1038 5.0 8 OTD464A 651870.6 4766349.0 189.74 0.78 0.22 8 6 14 1043 5.0 8 OTD464A 651869.6 4766350.0 184.94 0.84 0.24 10 6 14 1048 5.0 8 OTD464A 651868.6 4766351.0 180.14 0.82 0.23 15 6 14 1053 5.0 8 OTD464A 651867.6 4766352.0 175.33 0.68 0.23 7 6 14 1058 5.0 8 OTD464A 651866.6 4766353.0 170.53 0.77 0.32 13 6 14 1063 5.0 8 OTD464A 651864.6 4766355.0 160.91 0.88 0.29 5 6 14 1073 5.0 8 OTD464A 651863.6 4766356.0 156.11 0.78 0.29 9 6 14 1078 5.0 8 OTD464A 651862.6 4766356.5 151.30 0.74 0.96 6 6 14 1083 5.0 8 OTD464A 651861.6 4766357.5 146.49 0.90 0.32 14 6 14 1088 5.0 8 OTD464A 651859.7 4766359.5 136.87 1.23 0.66 7 6 14 1098 5.0 8 OTD464A 651858.7 4766360.5 132.07 1.23 0.38 11 6 14 1103 5.0 8 OTD464A 651857.8 4766361.5 127.26 0.88 0.34 5 6 14 1108 5.0 8 OTD464A 651856.8 4766362.5 122.44 0.99 0.33 13 6 14 1113 5.0 8 OTD464A 651855.8 4766363.0 117.63 0.86 0.30 17 6 14 1118 5.0 8 OTD464A 651854.8 4766364.0 112.82 0.81 0.25 9 6 14 1123 5.0 8 OTD464A 651852.8 4766365.5 103.20 0.71 0.23 7 6 14 1133 5.0 8 OTD464A 651851.8 4766366.5 98.39 0.90 0.31 9 6 14 1138 5.0 8 OTD464A 651850.8 4766367.5 93.58 0.74 0.32 10 6 14 1143 5.0 8 OTD464A 651849.8 4766368.5 88.76 0.86 0.35 8 6 14 1148 5.0 8 OTD464A 651848.8 4766369.0 83.95 0.99 0.76 5 6 14 1153 5.0 8 OTD464A 651845.7 4766372.0 68.55 0.77 0.32 32 6 14 1169 5.0 8 OTD464A 651844.7 4766373.0 63.74 0.79 0.32 15 6 14 1174 5.0 8 OTD464A 651842.7 4766375.0 54.12 1.04 0.49 14 6 14 1184 5.0 8 OTD464A 651841.7 4766375.5 49.31 0.68 0.22 9 6 14 1189 5.0 8 OTD464A 651839.8 4766377.5 39.69 0.83 0.20 13 6 14 1199 5.0 8 OTD464A 651837.9 4766379.0 31.12 1.12 0.37 12 6 14 1206.8 2.8 8 OTD465A 651707.4 4767343.0 194.39 0.71 0.02 22 7 7 1041 5.0 8 OTD465A 651705.3 4767343.0 191.00 0.70 0.01 17 7 7 1044 3.0 8 OTD465A 651703.2 4767343.0 187.60 1.17 0.02 15 5 7 1049 5.0 8 OTD465A 651700.6 4767343.0 183.35 0.61 0.01 19 5 7 1054 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD465A 651697.9 4767342.5 179.11 1.11 0.02 19 5 7 1059 5.0 8 OTD465A 651695.3 4767342.5 174.87 1.03 0.10 5 5 7 1064 5.0 8 OTD465A 651692.6 4767342.5 170.63 1.02 0.01 5 5 7 1069 5.0 8 OTD465A 651687.4 4767343.0 162.15 1.34 0.03 10 5 7 1079 5.0 8 OTD465A 651684.2 4767343.0 157.07 2.14 0.15 5 2 1 1085 5.0 8 OTD465A 651681.6 4767343.0 152.84 2.25 0.10 5 2 1 1090 5.0 8 OTD465A 651678.9 4767343.0 148.60 3.02 0.33 5 2 1 1095 5.0 8 OTD465A 651676.2 4767343.0 144.37 4.09 0.49 5 2 1 1100 5.0 8 OTD465A 651673.6 4767342.5 140.14 4.47 0.49 9 2 1 1105 5.0 8 OTD465A 651670.9 4767342.5 135.92 5.04 0.52 32 2 1 1110 5.0 8 OTD465A 651668.2 4767342.5 131.69 2.06 0.27 5 2 1 1115 5.0 8 OTD465A 651665.5 4767342.5 127.47 2.86 0.15 5 2 1 1120 5.0 8 OTD465A 651660.1 4767342.0 119.03 2.69 0.19 5 2 1 1130 5.0 8 OTD465A 651657.4 4767342.0 114.82 5.58 0.39 5 2 1 1135 5.0 8 OTD465A 651654.8 4767341.5 110.60 4.07 0.34 5 2 1 1140 5.0 8 OTD465A 651652.1 4767342.0 106.39 5.28 0.23 5 2 1 1145 5.0 8 OTD465A 651649.3 4767342.0 102.19 3.38 0.33 5 2 1 1150 5.0 8 OTD465A 651646.6 4767342.0 97.99 1.54 0.12 5 2 1 1155 5.0 8 OTD465A 651643.9 4767342.0 93.78 2.59 0.15 5 2 1 1160 5.0 8 OTD465A 651641.2 4767342.0 89.58 3.44 0.25 5 2 1 1165 5.0 8 OTD465A 651638.4 4767342.0 85.39 3.68 0.28 7 2 1 1170 5.0 8 OTD465A 651635.8 4767342.0 81.20 0.64 0.23 5 2 1 1175 5.0 8 OTD465A 651633.0 4767342.0 77.01 2.20 0.19 5 2 1 1180 5.0 8 OTD465A 651630.3 4767342.0 72.82 4.38 0.26 5 2 1 1185 5.0 8 OTD465A 651627.6 4767342.0 68.63 5.44 0.30 5 2 1 1190 5.0 8 OTD465A 651624.8 4767342.0 64.46 4.01 0.25 5 2 1 1195 5.0 8 OTD465A 651621.6 4767342.0 59.44 4.59 0.34 9 3 1 1201 5.0 8 OTD465A 651618.8 4767342.0 55.27 5.28 0.55 7 3 1 1206 5.0 8 OTD465A 651616.0 4767342.0 51.09 5.04 0.52 7 3 1 1211 5.0 8 OTD465A 651613.3 4767342.0 46.92 5.03 0.58 24 3 1 1216 5.0 8 OTD465A 651610.5 4767342.0 42.76 3.36 5.31 25 3 1 1221 5.0 8 OTD465A 651607.8 4767342.0 38.59 4.56 2.65 28 3 1 1226 5.0 8 OTD465A 651604.9 4767342.0 34.43 5.40 2.84 29 3 1 1231 5.0 8 OTD465A 651602.2 4767342.0 30.27 3.87 2.35 68 3 1 1236 5.0 8 OTD465A 651599.4 4767342.0 26.15 1.16 1.08 13 3 1 1241 5.0 8 OTD465A 651596.6 4767342.0 22.03 2.01 1.06 53 3 1 1246 5.0 8 OTD465A 651593.7 4767342.0 17.91 1.84 1.03 30 3 1 1251 5.0 8 OTD465A 651588.1 4767341.5 9.68 0.89 0.52 28 3 14 1261 5.0 8 OTD465A 651585.2 4767341.5 5.61 1.70 0.99 13 3 14 1266 5.0 8 OTD465A 651582.3 4767341.5 1.53 3.07 2.07 38 3 14 1271 5.0 8 OTD465A 651579.4 4767341.5 -2.55 3.26 1.16 47 3 14 1276 5.0 8 OTD465A 651576.8 4767341.5 -6.22 1.57 0.45 134 2 14 1280 4.0 8 OTRCD352A 651602.3 4766302.0 420.29 0.72 0.28 26 6 14 793 5.0 8 OTRCD352A 651601.0 4766303.5 415.68 0.80 0.18 15 6 14 798 5.0 8 OTRCD352A 651599.8 4766305.0 411.08 1.13 0.28 28 6 14 803 5.0 8 OTRCD352A 651598.6 4766306.5 406.48 1.37 0.28 14 6 14 808 5.0 8 OTRCD352A 651592.3 4766314.0 383.47 1.34 0.40 27 6 14 833 5.0 8 OTRCD352A 651589.8 4766317.0 374.26 0.72 0.15 56 6 14 843 5.0 8 OTRCD352A 651588.5 4766318.5 369.66 0.74 0.21 72 6 14 848 5.0 8 OTD449B 651697.8 4767222.0 203.63 0.73 0.02 8 10 7 1045 5.0 8 OTD449B 651688.9 4767223.5 192.89 0.81 0.03 98 10 7 1058 3.0 8 OTD449B 651683.1 4767224.5 186.02 0.63 0.02 214 7 7 1068 5.0 8 OTD449B 651679.9 4767225.0 182.21 1.10 0.01 72 7 7 1073 5.0 8 OTD449B 651676.8 4767225.5 178.40 0.80 0.01 60 7 7 1078 5.0 8 OTD449B 651673.5 4767226.0 174.59 0.84 0.03 68 7 7 1083 5.0 8 OTD449B 651664.6 4767227.5 163.92 1.15 0.02 35 5 1 1097 5.0 8 OTD449B 651661.4 4767228.0 160.11 1.08 0.02 15 5 1 1102 5.0 8 OTD449B 651658.2 4767228.5 156.30 1.17 0.03 12 5 1 1107 5.0 8 OTD449B 651651.8 4767229.5 148.65 2.29 0.04 15 5 1 1117 5.0 8 OTD449B 651648.6 4767230.0 144.83 1.87 0.05 16 5 1 1122 5.0 8 OTD449B 651645.4 4767230.0 141.00 3.11 0.13 13 5 1 1127 5.0 8 OTD449B 651642.2 4767230.5 137.20 1.74 0.05 6 5 1 1132 5.0 8 OTD449B 651639.0 4767231.5 133.39 1.41 0.11 11 5 1 1137 5.0 8 OTD449B 651635.8 4767232.0 129.58 1.46 0.08 13 5 1 1142 5.0 8 OTD449B 651632.6 4767232.5 125.78 2.38 0.10 42 2 1 1147 5.0 8 OTD449B 651629.4 4767233.0 121.97 1.76 0.18 9 2 1 1152 5.0 8 OTD449B 651627.1 4767233.5 119.32 3.02 0.78 39 2 1 1154 2.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD449B 651624.9 4767233.5 116.68 2.17 0.96 56 3 1 1159 5.0 8 OTD449B 651611.5 4767236.5 102.08 0.93 0.27 37 2 14 1179 5.0 8 OTD449B 651607.5 4767237.0 97.67 2.52 1.45 43 3 14 1185 5.0 8 OTD449B 651604.2 4767238.0 94.00 3.82 1.69 107 3 14 1190 5.0 8 OTD449B 651600.9 4767238.5 90.32 4.19 1.82 104 3 14 1195 5.0 8 OTD449B 651597.5 4767239.0 86.65 3.14 1.43 56 3 14 1200 5.0 8 OTD449B 651594.2 4767239.5 82.96 1.97 0.90 22 3 14 1205 5.0 8 OTD449B 651590.9 4767240.5 79.26 3.97 1.82 59 3 14 1210 5.0 8 OTD449B 651587.6 4767241.0 75.56 2.34 1.44 57 3 14 1215 5.0 8 OTD449B 651584.3 4767241.5 71.86 2.41 1.10 13 3 14 1220 5.0 8 OTD449B 651581.0 4767242.5 68.16 3.52 1.57 27 3 14 1225 5.0 8 OTD449B 651577.7 4767243.0 64.46 3.56 1.40 45 3 14 1230 5.0 8 OTD449B 651574.4 4767244.0 60.76 3.04 1.31 24 3 14 1235 5.0 8 OTD449B 651571.1 4767244.5 57.07 2.82 1.17 18 3 14 1240 5.0 8 OTD449B 651548.1 4767249.5 31.17 1.64 0.66 9 4 14 1275 5.0 8 OTD449B 651544.8 4767250.0 27.46 1.40 0.48 8 4 14 1280 5.0 8 OTD449B 651541.6 4767251.0 23.75 1.13 0.32 19 4 14 1285 5.0 8 OTD449B 651535.0 4767252.0 16.34 0.68 0.37 7 4 14 1295 5.0 8 OTD449B 651531.7 4767253.0 12.62 0.86 0.40 5 4 14 1300 5.0 8 OTD449B 651515.3 4767256.0 -5.99 1.49 0.25 42 5 1 1325 5.0 8 OTD449B 651512.1 4767256.5 -9.72 0.68 0.09 53 5 1 1330 5.0 8 OTD449B 651508.8 4767257.0 -13.45 1.06 0.13 85 5 1 1335 5.0 8 OTD449B 651505.5 4767258.0 -17.18 1.62 0.19 62 5 1 1340 5.0 8 OTD449B 651502.3 4767258.5 -20.91 1.73 0.20 69 5 1 1345 5.0 8 OTD449B 651499.0 4767259.0 -24.64 1.60 0.17 112 5 1 1350 5.0 8 OTD449B 651495.8 4767260.0 -28.37 1.74 0.30 110 5 1 1355 5.0 8 OTD449B 651491.8 4767261.0 -32.85 1.63 0.46 79 4 14 1361 5.0 8 OTD449B 651488.6 4767261.5 -36.58 1.18 0.20 46 4 14 1366 5.0 8 OTD449B 651475.7 4767264.5 -51.53 1.31 0.19 38 4 14 1386 5.0 8 OTD449B 651472.4 4767265.0 -55.29 1.36 0.26 29 4 14 1391 5.0 8 OTD449B 651466.0 4767266.5 -62.80 1.05 0.16 22 4 14 1401 5.0 8 OTD449B 651462.8 4767267.5 -66.56 1.02 0.10 9 4 14 1406 5.0 8 OTD449B 651456.3 4767268.5 -74.12 0.92 0.18 14 4 14 1416 5.0 8 OTD449B 651453.1 4767269.0 -77.90 1.30 0.24 49 4 14 1421 5.0 8 OTD449B 651449.9 4767269.5 -81.68 1.42 0.29 36 4 14 1426 5.0 8 OTD449B 651446.6 4767269.5 -85.46 1.49 0.34 29 4 14 1431 5.0 8 OTD449B 651443.4 4767270.0 -89.24 1.34 0.23 16 4 14 1436 5.0 8 OTD449B 651440.2 4767270.5 -93.03 1.36 0.23 11 4 14 1441 5.0 8 OTD449B 651436.9 4767271.0 -96.81 1.25 0.29 20 4 14 1446 5.0 8 OTD449B 651433.7 4767271.5 -100.59 1.29 0.50 21 4 14 1451 5.0 8 OTD449B 651430.5 4767272.0 -104.39 1.15 0.20 12 4 14 1456 5.0 8 OTD449B 651427.3 4767272.5 -108.18 1.67 0.25 15 4 14 1461 5.0 8 OTD449B 651424.0 4767273.0 -111.97 1.10 0.26 20 4 14 1466 3.0 8 OTD449B 651401.3 4767276.5 -138.25 1.94 1.19 97 4 14 1501 5.0 8 OTD449B 651397.9 4767277.5 -141.97 2.61 1.73 85 4 14 1506 5.0 8 OTD449B 651394.6 4767278.0 -145.68 1.75 0.99 25 3 14 1511 5.0 8 OTD449B 651391.3 4767278.5 -149.38 0.91 0.64 18 4 14 1516 5.0 8 OTD449B 651388.1 4767279.0 -153.08 1.47 1.81 6 4 14 1521 5.0 8 OTD449B 651384.8 4767279.5 -156.77 1.46 1.91 19 4 14 1526 5.0 8 OTD449B 651378.1 4767280.5 -164.13 2.26 2.39 17 4 14 1536 5.0 8 OTD449B 651374.8 4767282.0 -167.80 3.08 1.81 105 3 14 1541 5.0 8 OTD449B 651371.4 4767282.5 -171.45 1.94 1.89 23 3 14 1546 5.0 8 OTD449B 651368.1 4767283.5 -175.11 1.20 1.22 15 4 14 1551 5.0 8 OTD449B 651364.8 4767284.0 -178.76 1.27 1.04 41 4 14 1556 5.0 8 OTD449B 651361.4 4767284.5 -182.39 1.21 0.90 38 4 14 1561 5.0 8 OTD449B 651358.1 4767285.5 -186.03 1.64 1.40 26 4 14 1566 5.0 8 OTD449B 651354.7 4767286.0 -189.66 1.80 1.87 19 4 14 1571 5.0 8 OTD449B 651337.7 4767289.5 -207.51 0.72 0.68 14 6 14 1596 5.0 8 OTD449B 651329.9 4767291.5 -215.22 0.64 0.50 9 6 14 1607 5.0 8 OTD455B 651685.7 4767063.5 316.28 1.22 0.06 14 7 7 865 5.0 8 OTD455B 651684.1 4767062.0 311.71 2.66 0.15 8 7 7 870 5.0 8 OTD455B 651682.9 4767061.5 308.50 4.83 0.41 5 5 7 872 2.0 8 OTD455B 651681.9 4767060.0 305.30 2.87 0.22 5 2 1 877 5.0 8 OTD455B 651680.3 4767059.0 300.73 2.72 0.24 5 2 1 882 5.0 8 OTD455B 651678.7 4767057.5 296.15 4.58 0.42 7 2 1 887 5.0 8 OTD455B 651677.1 4767056.5 291.58 1.25 0.12 5 2 1 892 5.0 8 OTD455B 651675.5 4767055.0 287.01 0.94 0.04 5 5 1 897 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD455B 651673.9 4767054.0 282.43 1.00 0.11 7 5 1 902 5.0 8 OTD455B 651672.3 4767053.0 277.86 1.64 0.06 6 5 1 907 5.0 8 OTD455B 651671.0 4767052.0 274.20 2.94 0.12 7 5 1 910 3.0 8 OTD455B 651669.7 4767051.0 270.55 4.49 0.20 5 2 1 915 5.0 8 OTD455B 651668.1 4767049.5 265.97 1.39 0.07 5 2 1 920 5.0 8 OTD455B 651666.6 4767048.0 261.40 3.36 0.20 9 2 1 925 5.0 8 OTD455B 651665.0 4767047.0 256.83 3.05 0.15 13 2 1 930 5.0 8 OTD455B 651663.4 4767045.5 252.25 3.35 0.20 5 2 1 935 5.0 8 OTD455B 651661.8 4767044.5 247.67 3.02 0.17 5 2 1 940 5.0 8 OTD455B 651660.3 4767043.0 243.10 2.98 0.20 5 2 1 945 5.0 8 OTD455B 651658.7 4767042.0 238.52 3.14 0.19 5 2 1 950 5.0 8 OTD455B 651657.1 4767041.0 233.94 3.84 0.41 5 3 1 955 5.0 8 OTD455B 651655.5 4767040.0 229.36 4.74 1.00 5 3 1 960 5.0 8 OTD455B 651653.9 4767038.5 224.78 3.58 3.55 5 3 14 965 5.0 8 OTD455B 651652.4 4767037.5 220.20 4.64 8.11 5 3 14 970 5.0 8 OTD455B 651650.9 4767036.0 215.62 5.83 4.36 7 3 14 975 5.0 8 OTD455B 651649.3 4767035.0 211.03 4.45 2.25 46 3 14 980 5.0 8 OTD455B 651647.7 4767033.5 206.45 2.63 0.32 49 3 14 985 5.0 8 OTD455B 651646.1 4767032.0 201.87 3.14 0.35 45 3 14 990 5.0 8 OTD455B 651644.6 4767031.0 197.29 2.95 1.29 26 3 14 995 5.0 8 OTD455B 651643.0 4767029.5 192.70 3.13 2.43 5 3 14 1000 5.0 8 OTD455B 651641.5 4767028.0 188.12 3.77 2.71 5 3 14 1005 5.0 8 OTD455B 651639.0 4767026.0 180.79 1.06 0.16 87 4 14 1013 5.0 8 OTD455B 651547.9 4766965.0 -77.76 0.61 0.17 24 6 14 1294 5.0 8 OTD455B 651546.3 4766964.0 -82.38 0.92 0.35 30 6 14 1299 5.0 8 OTD455B 651544.6 4766963.5 -87.01 0.83 0.91 29 6 14 1304 5.0 8 OTD455B 651502.9 4766940.0 -202.10 0.93 0.86 18 10 14 1428.2 4.2 8 OTD465B 651782.0 4767348.0 90.72 0.81 0.03 39 10 7 1108 3.0 8 OTD465B 651781.0 4767348.0 86.83 0.80 0.01 28 7 1 1113 5.0 8 OTD465B 651779.0 4767348.0 81.97 0.95 0.01 20 7 1 1118 5.0 8 OTD465B 651778.0 4767348.0 77.12 0.84 0.02 21 7 1 1123 5.0 8 OTD465B 651777.0 4767348.0 72.26 0.61 0.02 16 7 1 1128 5.0 8 OTD465B 651775.0 4767348.0 62.54 0.72 0.02 17 7 1 1138 5.0 8 OTD465B 651774.0 4767348.0 57.68 1.05 0.04 24 7 1 1143 5.0 8 OTD465B 651773.0 4767348.0 53.79 1.41 0.07 25 7 1 1146 3.0 8 OTD465B 651772.0 4767348.0 49.91 1.11 0.03 29 5 1 1151 5.0 8 OTD465B 651771.0 4767348.0 45.05 0.98 0.05 35 5 1 1156 5.0 8 OTD465B 651769.0 4767348.0 40.19 1.37 0.04 42 5 1 1161 5.0 8 OTD465B 651768.0 4767348.0 35.33 2.20 0.05 24 5 1 1166 5.0 8 OTD465B 651767.0 4767348.0 30.47 1.64 0.04 38 5 1 1171 5.0 8 OTD465B 651766.0 4767348.0 25.61 1.58 0.04 26 5 1 1176 5.0 8 OTD465B 651765.0 4767348.0 20.76 1.45 0.03 71 5 1 1181 5.0 8 OTD465B 651763.0 4767348.0 15.90 1.42 0.04 110 5 1 1186 5.0 8 OTD465B 651762.0 4767348.0 11.05 1.35 0.03 14 5 1 1191 5.0 8 OTD465B 651761.0 4767348.0 6.19 1.31 0.05 12 5 1 1196 5.0 8 OTD465B 651760.0 4767348.0 1.34 1.80 0.06 34 5 1 1201 5.0 8 OTD465B 651759.0 4767348.0 -3.50 1.07 0.05 12 5 1 1206 5.0 8 OTD465B 651757.0 4767348.0 -8.35 1.30 0.02 11 5 1 1211 5.0 8 OTD465B 651756.0 4767348.5 -13.20 1.40 0.04 12 5 1 1216 5.0 8 OTD465B 651755.0 4767348.5 -18.05 0.88 0.06 17 5 1 1221 5.0 8 OTD465B 651754.0 4767349.0 -22.89 1.28 0.04 21 5 1 1226 5.0 8 OTD465B 651752.0 4767349.0 -27.73 1.46 0.04 5 5 1 1231 5.0 8 OTD465B 651751.0 4767349.0 -33.54 2.72 0.10 8 2 1 1237 5.0 8 OTD465B 651750.0 4767349.0 -38.39 3.37 0.12 5 2 1 1242 5.0 8 OTD465B 651749.0 4767349.5 -43.23 4.05 0.23 7 2 1 1247 5.0 8 OTD465B 651747.0 4767349.5 -48.07 3.83 0.24 12 2 1 1252 5.0 8 OTD465B 651746.0 4767349.5 -52.91 3.59 0.17 5 2 1 1257 5.0 8 OTD465B 651745.0 4767350.0 -57.75 4.29 0.33 12 2 1 1262 5.0 8 OTD465B 651744.0 4767350.0 -62.59 3.96 0.18 9 2 1 1267 5.0 8 OTD465B 651742.0 4767350.0 -68.40 4.33 0.38 8 3 1 1273 5.0 8 OTD465B 651741.0 4767350.5 -73.24 4.73 7.43 12 3 1 1278 5.0 8 OTD465B 651740.0 4767350.5 -78.09 2.08 0.31 5 3 1 1283 5.0 8 OTD465B 651738.0 4767350.5 -82.93 4.77 1.10 5 3 1 1288 5.0 8 OTD465B 651737.0 4767350.5 -87.77 3.73 0.42 5 3 1 1293 5.0 8 OTD465B 651736.0 4767351.0 -92.61 4.30 0.40 5 3 1 1298 5.0 8 OTD465B 651735.0 4767351.0 -97.45 4.79 0.40 5 3 1 1303 5.0 8 OTD465B 651733.0 4767351.0 -102.30 4.05 0.57 6 3 1 1308 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD465B 651732.0 4767351.0 -107.14 4.52 0.38 9 3 1 1313 5.0 8 OTD465B 651731.0 4767351.5 -111.98 2.37 0.37 5 3 1 1318 5.0 8 OTD465B 651730.0 4767351.5 -116.82 6.24 0.43 5 3 1 1323 5.0 8 OTD465B 651729.0 4767351.5 -121.66 4.76 0.38 5 3 1 1328 5.0 8 OTD465B 651727.0 4767352.5 -126.50 3.56 0.55 5 3 1 1333 5.0 8 OTD465B 651726.0 4767352.5 -131.34 3.03 0.37 5 3 1 1338 5.0 8 OTD465B 651725.0 4767353.0 -136.17 5.60 0.25 5 3 1 1343 5.0 8 OTD465B 651724.0 4767353.0 -141.01 6.04 0.26 13 3 1 1348 5.0 8 OTD465B 651722.0 4767353.0 -145.84 3.98 0.45 8 3 1 1353 5.0 8 OTD465B 651721.0 4767353.5 -150.67 3.28 0.37 21 3 1 1358 5.0 8 OTD465B 651720.0 4767353.5 -155.50 3.77 0.68 33 3 1 1363 5.0 8 OTD465B 651718.0 4767354.0 -160.32 2.70 0.23 28 3 1 1368 5.0 8 OTD465B 651717.0 4767354.0 -165.15 1.74 0.23 25 3 1 1373 5.0 8 OTD465B 651716.0 4767354.0 -169.98 1.70 0.43 54 3 1 1378 5.0 8 OTD465B 651713.0 4767354.5 -179.63 2.64 0.69 5 3 14 1388 5.0 8 OTD465B 651712.0 4767355.0 -184.46 2.03 0.56 8 3 14 1393 5.0 8 OTD465B 651711.0 4767355.5 -189.29 2.25 0.50 14 3 14 1398 5.0 8 OTD465B 651709.0 4767355.5 -194.12 2.00 0.44 17 3 14 1403 5.0 8 OTD465B 651708.0 4767356.0 -198.94 1.97 0.44 22 3 14 1408 5.0 8 OTD465B 651707.0 4767356.0 -203.77 1.74 0.45 9 3 14 1413 5.0 8 OTD465B 651706.0 4767356.0 -208.60 1.93 0.43 9 3 14 1418 5.0 8 OTD465B 651704.0 4767356.5 -213.42 2.56 0.60 15 3 14 1423 5.0 8 OTD465B 651703.0 4767357.0 -218.25 2.03 0.56 13 4 14 1428 5.0 8 OTD465B 651702.0 4767357.0 -223.07 0.63 0.19 7 4 14 1433 5.0 8 OTD465B 651701.0 4767357.5 -227.89 1.73 0.43 23 4 14 1438 5.0 8 OTD465B 651699.0 4767358.0 -232.71 1.70 0.39 71 4 14 1443 5.0 8 OTD465B 651698.0 4767358.0 -237.53 1.52 0.44 35 4 14 1448 5.0 8 OTD465B 651697.0 4767358.0 -242.35 1.78 0.53 5 4 14 1453 5.0 8 OTD465B 651695.0 4767358.5 -247.16 1.31 0.40 8 4 14 1458 5.0 8 OTD465B 651694.0 4767359.0 -251.97 1.60 0.52 11 4 14 1463 5.0 8 OTD465B 651693.0 4767359.0 -256.78 1.75 0.52 14 4 14 1468 5.0 8 OTD465B 651691.0 4767359.5 -261.58 1.44 0.35 5 4 14 1473 5.0 8 OTD465B 651690.0 4767360.0 -266.39 1.42 0.36 10 4 14 1478 5.0 8 OTD465B 651689.0 4767360.0 -271.20 1.47 0.33 24 4 14 1483 5.0 8 OTD465B 651687.0 4767359.5 -275.97 1.13 0.23 22 4 14 1488 5.0 8 OTD465B 651686.0 4767359.5 -280.27 1.62 0.44 16 4 14 1492 4.0 8 OTD465B 651684.0 4767359.0 -284.57 1.91 0.43 24 4 14 1497 5.0 8 OTD465B 651683.0 4767359.0 -289.35 1.39 0.23 22 4 14 1502 3.0 8 OTD465B 651679.0 4767356.5 -303.59 1.12 0.32 37 4 14 1517 5.0 8 OTD465B 651678.0 4767356.0 -308.33 1.24 0.34 55 4 14 1522 5.0 8 OTD465B 651676.0 4767355.5 -313.07 1.00 0.36 42 4 14 1527 5.0 8 OTD465B 651675.0 4767355.0 -316.86 1.14 0.49 18 4 14 1530 3.0 8 OTD505 651582.1 4767377.0 397.40 0.99 0.04 170 7 7 785 5.0 8 OTD505 651581.1 4767376.0 392.54 1.06 0.02 73 7 7 790 5.0 8 OTD505 651580.0 4767375.5 387.67 1.06 0.03 45 7 7 795 5.0 8 OTD505 651578.8 4767375.0 381.83 1.40 0.04 47 5 7 801 5.0 8 OTD505 651577.7 4767375.0 376.97 1.47 0.04 38 5 7 806 5.0 8 OTD505 651576.6 4767374.5 372.10 0.86 0.02 50 5 7 811 5.0 8 OTD505 651575.6 4767374.0 367.23 1.16 0.02 39 5 7 816 5.0 8 OTD505 651574.6 4767373.5 362.36 1.06 0.02 33 5 7 821 5.0 8 OTD505 651573.5 4767373.0 357.50 1.19 0.02 20 5 7 826 5.0 8 OTD505 651572.4 4767372.5 352.63 1.43 0.05 16 5 7 831 5.0 8 OTD505 651570.3 4767371.5 342.89 1.64 0.11 15 5 7 841 5.0 8 OTD505 651569.3 4767371.0 338.02 1.96 0.14 10 5 7 846 5.0 8 OTD505 651568.3 4767370.5 333.15 1.46 0.03 6 5 1 851 5.0 8 OTD505 651567.3 4767370.0 328.28 1.67 0.07 6 5 1 856 5.0 8 OTD505 651566.3 4767369.5 323.41 1.12 0.05 5 5 1 861 5.0 8 OTD505 651565.2 4767369.0 318.54 1.53 0.23 5 5 1 866 5.0 8 OTD505 651564.1 4767369.0 313.66 1.85 0.06 11 5 1 871 5.0 8 OTD505 651562.9 4767368.0 307.82 2.93 0.32 5 2 1 877 5.0 8 OTD505 651561.7 4767367.5 301.97 4.59 0.86 39 3 1 883 5.0 8 OTD505 651560.7 4767367.5 297.09 3.32 0.76 16 3 1 888 5.0 8 OTD505 651559.7 4767367.0 292.22 4.84 2.25 11 3 1 893 5.0 8 OTD505 651558.7 4767366.5 287.34 4.05 0.70 5 3 1 898 5.0 8 OTD505 651557.7 4767366.0 282.47 4.33 0.78 5 3 1 903 5.0 8 OTD505 651556.7 4767365.5 277.59 5.07 1.04 7 3 1 908 5.0 8 OTD505 651555.7 4767365.0 272.71 3.75 1.03 5 3 1 913 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD505 651554.7 4767365.0 267.83 4.23 1.67 5 3 1 918 5.0 8 OTD505 651553.7 4767364.0 262.96 2.57 0.98 6 3 1 923 5.0 8 OTD505 651552.7 4767363.5 258.08 5.15 1.63 9 3 1 928 5.0 8 OTD505 651551.7 4767363.5 253.20 5.33 1.82 7 3 1 933 5.0 8 OTD505 651550.7 4767363.0 248.33 4.50 2.14 8 3 1 938 5.0 8 OTD505 651549.6 4767362.0 243.45 5.28 1.41 5 3 1 943 5.0 8 OTD505 651548.6 4767362.0 238.58 4.59 1.54 5 3 1 948 5.0 8 OTD505 651547.6 4767361.5 233.70 4.28 1.21 7 3 1 953 5.0 8 OTD505 651546.5 4767361.0 228.83 3.46 1.68 5 3 1 958 5.0 8 OTD505 651545.6 4767360.5 223.95 4.04 2.26 8 3 1 963 5.0 8 OTD505 651544.6 4767360.0 219.08 4.48 2.48 7 3 1 968 5.0 8 OTD505 651543.5 4767359.5 214.21 3.58 2.08 9 3 1 973 5.0 8 OTD505 651542.5 4767359.0 209.33 5.78 4.56 10 3 1 978 5.0 8 OTD505 651541.4 4767358.5 204.46 3.82 1.33 14 3 1 983 5.0 8 OTD505 651540.4 4767358.0 199.59 1.77 5.57 7 3 1 988 5.0 8 OTD505 651539.3 4767357.5 194.72 2.87 1.82 11 3 1 993 5.0 8 OTD505 651538.3 4767357.5 189.86 3.38 0.50 13 3 1 998 5.0 8 OTD505 651537.2 4767357.0 184.99 1.85 0.72 16 3 1 1003 5.0 8 OTD505 651536.1 4767356.5 180.13 2.15 1.02 35 3 1 1008 5.0 8 OTD505 651535.0 4767356.0 175.27 3.55 3.85 18 3 1 1013 5.0 8 OTD505 651533.9 4767355.5 170.41 3.89 4.48 38 3 1 1018 5.0 8 OTD505 651532.9 4767355.0 165.55 1.58 1.01 45 3 1 1023 5.0 8 OTD505 651500.8 4767343.0 21.53 1.81 0.34 120 5 1 1171 5.0 8 OTD505 651499.7 4767342.5 16.66 1.73 0.28 116 5 1 1176 5.0 8 OTD505 651498.6 4767342.0 11.79 1.26 0.16 228 5 1 1181 5.0 8 OTD505 651497.5 4767342.0 6.92 1.47 0.18 114 5 1 1186 5.0 8 OTD505 651496.5 4767342.0 2.05 1.51 0.20 66 5 1 1191 5.0 8 OTD505 651495.4 4767341.5 -2.82 1.43 0.23 40 5 1 1196 5.0 8 OTD505 651494.3 4767341.5 -7.69 1.81 0.33 59 5 1 1201 5.0 8 OTD505 651493.5 4767341.0 -11.52 1.20 0.24 57 5 1 1203.86 2.9 8 OTD505A 651503.3 4767345.5 18.92 1.70 0.27 178 5 1 1173 4.0 8 OTD514 651764.0 4767536.0 193.18 0.87 0.04 43 7 7 1021 5.0 8 OTD514 651759.0 4767537.0 179.08 0.96 0.02 116 7 7 1036 5.0 8 OTD514 651757.0 4767537.5 174.39 0.64 0.01 140 7 7 1041 5.0 8 OTD514 651755.0 4767538.0 169.69 0.67 0.01 58 7 7 1046 5.0 8 OTD514 651752.0 4767539.0 160.29 0.91 0.01 104 7 7 1056 5.0 8 OTD514 651749.0 4767539.5 150.90 0.89 0.03 43 7 7 1066 5.0 8 OTD514 651747.0 4767540.0 146.20 0.80 0.02 20 7 7 1071 5.0 8 OTD514 651745.0 4767540.5 141.49 1.12 0.04 37 7 7 1076 5.0 8 OTD514 651744.0 4767541.0 136.79 0.67 0.05 26 7 7 1081 5.0 8 OTD514 651742.0 4767541.0 132.09 0.79 0.02 8 7 7 1086 5.0 8 OTD514 651741.0 4767541.5 127.85 0.99 0.06 13 7 7 1090 4.0 8 OTD514 651739.0 4767542.0 123.61 1.18 0.02 14 5 7 1095 5.0 8 OTD514 651738.0 4767542.5 118.90 1.12 0.02 28 5 7 1100 5.0 8 OTD514 651736.0 4767543.0 114.20 1.66 0.03 26 5 7 1105 5.0 8 OTD514 651734.0 4767543.5 109.48 1.27 0.03 15 5 1 1110 5.0 8 OTD514 651733.0 4767544.0 104.77 1.46 0.03 24 5 1 1115 5.0 8 OTD514 651731.0 4767544.5 100.05 1.26 0.03 30 5 1 1120 5.0 8 OTD514 651730.0 4767545.0 95.34 1.37 0.02 26 5 1 1125 5.0 8 OTD514 651726.0 4767546.0 85.90 1.60 0.06 20 5 1 1135 5.0 8 OTD514 651725.0 4767546.0 81.18 1.86 0.06 18 5 1 1140 5.0 8 OTD514 651723.0 4767546.5 76.46 1.79 0.07 73 5 1 1145 5.0 8 OTD514 651722.0 4767547.0 71.74 1.54 0.05 23 5 1 1150 5.0 8 OTD514 651720.0 4767547.5 67.02 1.70 0.04 22 5 1 1155 5.0 8 OTD514 651718.0 4767548.0 62.30 1.38 0.06 34 5 1 1160 5.0 8 OTD514 651717.0 4767548.5 57.57 1.92 0.07 32 5 1 1165 5.0 8 OTD514 651715.0 4767549.0 52.85 1.64 0.06 25 5 1 1170 5.0 8 OTD514 651714.0 4767549.5 48.12 0.66 0.13 10 5 1 1175 5.0 8 OTD514 651712.0 4767550.0 42.45 2.61 0.13 20 2 1 1181 5.0 8 OTD514 651710.0 4767550.5 37.72 2.28 0.11 23 2 1 1186 5.0 8 OTD514 651709.0 4767550.5 33.00 1.95 0.09 7 2 1 1191 5.0 8 OTD514 651707.0 4767551.0 28.27 2.36 0.08 21 2 1 1196 5.0 8 OTD514 651706.0 4767551.5 23.55 3.42 0.12 8 2 1 1201 5.0 8 OTD514 651704.0 4767552.0 18.82 3.36 0.11 12 2 1 1206 5.0 8 OTD514 651702.0 4767552.5 14.10 3.38 0.13 18 2 1 1211 5.0 8 OTD514 651701.0 4767553.0 9.38 2.88 0.15 17 2 1 1216 5.0 8 OTD514 651699.0 4767553.0 4.65 3.49 0.19 19 2 1 1221 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD514 651698.0 4767553.5 -0.07 3.30 0.15 15 2 1 1226 5.0 8 OTD514 651696.0 4767554.0 -4.79 2.97 0.10 13 2 1 1231 5.0 8 OTD514 651695.0 4767555.0 -9.51 2.49 0.12 7 2 1 1236 5.0 8 OTD514 651693.0 4767555.0 -14.23 1.99 0.11 23 2 1 1241 5.0 8 OTD514 651691.0 4767555.5 -18.95 1.89 0.07 35 2 1 1246 5.0 8 OTD514 651690.0 4767556.0 -23.68 3.40 0.19 12 2 1 1251 5.0 8 OTD514 651688.0 4767556.5 -29.34 3.44 0.36 10 3 1 1257 5.0 8 OTD514 651686.0 4767556.5 -34.06 2.54 0.39 11 3 1 1262 5.0 8 OTD514 651685.0 4767557.0 -38.78 4.01 0.97 12 3 1 1267 5.0 8 OTD514 651683.0 4767557.5 -43.50 3.96 0.74 70 3 1 1272 5.0 8 OTD514 651682.0 4767558.0 -48.22 5.12 0.30 192 3 14 1277 5.0 8 OTD514 651680.0 4767559.0 -52.94 3.39 0.29 184 3 14 1282 5.0 8 OTD514 651678.0 4767559.5 -57.66 2.42 0.20 56 3 14 1287 5.0 8 OTD514 651677.0 4767559.5 -62.39 3.01 0.34 40 3 14 1292 5.0 8 OTD514 651675.0 4767560.0 -67.11 3.25 0.33 38 3 14 1297 5.0 8 OTD514 651674.0 4767560.5 -71.84 1.62 0.17 25 3 14 1302 5.0 8 OTD514 651672.0 4767561.0 -76.57 0.91 0.12 7 3 14 1307 5.0 8 OTD514 651671.0 4767561.5 -81.30 2.23 0.25 26 3 14 1312 5.0 8 OTD514 651669.0 4767562.0 -86.03 2.89 0.45 32 3 14 1317 5.0 8 OTD514 651668.0 4767562.5 -90.76 2.06 0.70 64 3 1 1322 5.0 8 OTD514 651666.0 4767562.5 -95.49 3.15 0.84 93 3 1 1327 5.0 8 OTD514 651665.0 4767563.0 -100.22 2.68 0.40 80 3 1 1332 3.0 8 OTD514 651663.0 4767563.5 -104.96 2.74 0.59 36 3 1 1337 5.0 8 OTD514 651661.0 4767564.0 -109.69 2.32 0.55 48 3 1 1342 5.0 8 OTD514 651660.0 4767565.0 -114.42 2.55 0.60 24 3 14 1347 5.0 8 OTD514 651658.0 4767565.5 -119.15 1.18 0.31 22 3 14 1352 5.0 8 OTD514 651657.0 4767566.0 -123.88 1.43 0.37 53 3 14 1357 5.0 8 OTD514 651655.0 4767566.5 -128.62 2.37 0.91 16 3 14 1362 5.0 8 OTD514 651654.0 4767567.0 -133.35 2.17 0.98 15 3 14 1367 5.0 8 OTD514 651652.0 4767567.5 -138.08 2.54 1.14 17 3 14 1372 5.0 8 OTD514 651651.0 4767568.0 -142.82 2.08 1.00 10 3 14 1377 5.0 8 OTD514 651649.0 4767568.5 -147.55 2.05 0.91 11 3 14 1382 5.0 8 OTD514 651648.0 4767569.0 -152.28 2.52 1.08 8 3 14 1387 5.0 8 OTD514 651646.0 4767569.5 -157.02 2.79 1.46 10 3 14 1392 5.0 8 OTD514 651645.0 4767570.5 -161.75 3.69 2.06 31 3 14 1397 5.0 8 OTD514 651643.0 4767571.0 -166.48 3.97 1.89 5 3 14 1402 5.0 8 OTD514 651642.0 4767571.5 -171.22 3.11 1.69 6 3 14 1407 5.0 8 OTD514 651640.0 4767572.0 -175.95 2.83 1.55 6 3 14 1412 5.0 8 OTD514 651639.0 4767572.5 -180.69 3.25 1.50 8 3 14 1417 5.0 8 OTD514 651637.0 4767573.0 -185.42 2.04 1.30 11 3 14 1422 5.0 8 OTD514 651636.0 4767573.5 -190.16 2.32 0.85 17 3 14 1427 5.0 8 OTD514 651634.0 4767574.0 -194.89 2.74 1.32 10 3 14 1432 5.0 8 OTD514 651629.0 4767576.0 -209.10 1.56 0.77 7 3 14 1447 5.0 8 OTD514 651628.0 4767576.5 -213.84 2.27 1.12 83 3 14 1452 5.0 8 OTD514 651626.0 4767577.0 -218.58 1.92 1.11 9 3 14 1457 5.0 8 OTD514 651625.0 4767578.0 -223.31 2.15 1.32 6 3 14 1462 5.0 8 OTD514 651623.0 4767578.5 -228.05 2.30 1.40 9 3 14 1467 5.0 8 OTD514 651622.0 4767579.0 -232.79 1.06 0.87 5 3 14 1472 5.0 8 OTD514 651621.0 4767579.5 -237.53 2.26 1.86 17 3 14 1477 5.0 8 OTD514 651619.0 4767580.0 -242.26 1.65 1.11 7 3 14 1482 5.0 8 OTD514 651618.0 4767581.0 -247.00 2.77 1.94 5 3 14 1487 5.0 8 OTD514 651616.0 4767581.0 -251.74 2.44 2.29 13 3 14 1492 5.0 8 OTD514 651615.0 4767581.5 -256.49 2.48 2.45 7 3 14 1497 5.0 8 OTD514 651613.0 4767582.0 -261.23 2.43 1.93 35 3 14 1502 5.0 8 OTD514 651612.0 4767582.5 -265.97 2.87 1.85 49 3 14 1507 5.0 8 OTD514 651610.0 4767583.0 -270.71 1.19 0.59 30 4 14 1512 5.0 8 OTD514 651606.0 4767584.5 -284.94 0.81 0.34 8 4 14 1527 3.0 8 OTD514 651604.0 4767585.5 -289.69 1.70 0.51 13 4 14 1532 5.0 8 OTD514 651603.0 4767586.0 -294.43 2.00 2.14 12 4 14 1537 5.0 8 OTD514 651601.0 4767586.5 -299.17 1.55 1.73 5 4 14 1542 5.0 8 OTD514 651600.0 4767587.0 -303.91 1.87 2.20 13 4 14 1547 5.0 8 OTD514 651598.0 4767587.5 -308.66 1.54 1.15 6 4 14 1552 5.0 8 OTD514 651597.0 4767588.5 -313.40 0.82 0.85 37 4 14 1557 5.0 8 OTD514 651595.0 4767589.0 -318.14 2.17 2.82 39 4 14 1562 5.0 8 OTD522 651667.9 4766731.0 420.62 3.24 0.29 12 5 7 861 5.0 8 OTD522 651670.1 4766732.5 416.38 1.74 0.17 6 5 7 866 5.0 8 OTD522 651672.4 4766733.5 412.14 1.45 0.03 10 5 7 871 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD522 651674.7 4766735.0 407.91 1.41 0.03 5 5 7 876 5.0 8 OTD522 651676.9 4766736.5 403.68 1.42 0.02 13 5 7 881 5.0 8 OTD522 651679.3 4766738.0 399.45 1.10 0.04 5 5 7 886 5.0 8 OTD522 651681.5 4766739.5 395.22 0.88 0.02 8 5 7 891 5.0 8 OTD522 651686.1 4766742.0 386.78 1.25 0.03 9 5 7 901 5.0 8 OTD522 651688.5 4766743.5 382.56 1.13 0.03 6 5 7 906 5.0 8 OTD522 651690.8 4766745.0 378.34 2.67 0.12 14 5 7 911 5.0 8 OTD522 651693.1 4766746.5 374.13 1.32 0.04 7 5 7 916 5.0 8 OTD522 651695.5 4766747.5 369.91 2.54 0.11 5 5 7 921 5.0 8 OTD522 651697.8 4766749.0 365.70 1.71 0.04 5 5 7 926 5.0 8 OTD522 651700.1 4766750.5 361.48 1.52 0.03 5 5 7 931 5.0 8 OTD522 651702.4 4766751.5 357.27 0.61 0.01 5 5 7 936 5.0 8 OTD522 651704.7 4766753.0 353.05 0.61 0.01 5 5 7 941 5.0 8 OTD522 651707.0 4766754.5 348.83 0.88 0.03 5 5 7 946 5.0 8 OTD522 651709.3 4766756.0 344.62 0.67 0.04 5 5 7 951 5.0 8 OTD522 651711.6 4766757.0 340.40 1.59 0.03 5 5 7 956 5.0 8 OTD522 651713.8 4766758.5 336.18 1.39 0.03 7 5 7 961 5.0 8 OTD522 651716.1 4766760.0 331.96 1.40 0.03 5 5 7 966 5.0 8 OTD522 651718.3 4766761.0 327.75 1.53 0.02 99 5 7 971 5.0 8 OTD522 651720.6 4766762.5 323.53 0.88 0.02 99 5 7 976 5.0 8 OTD522 651725.6 4766766.0 314.25 1.90 0.01 10 2 7 987 5.0 8 OTD522 651727.8 4766767.5 310.03 2.12 0.03 6 2 7 992 5.0 8 OTD522 651730.1 4766769.0 305.81 2.25 0.13 15 2 7 997 5.0 8 OTD522 651732.4 4766770.5 301.59 3.06 0.28 21 2 7 1002 5.0 8 OTD522 651734.6 4766772.0 297.37 3.04 0.18 12 2 7 1007 5.0 8 OTD522 651736.9 4766773.5 293.15 2.55 0.18 63 2 7 1012 5.0 8 OTD522 651739.1 4766775.0 288.94 1.72 0.12 23 2 7 1017 5.0 8 OTD522 651741.4 4766776.5 284.72 0.68 0.04 60 2 7 1022 5.0 8 OTD522 651743.7 4766778.0 280.50 0.70 0.05 38 2 1 1027 5.0 8 OTD522 651745.9 4766779.0 276.28 1.30 0.12 36 2 1 1032 5.0 8 OTD522 651748.3 4766781.0 272.06 6.60 0.36 62 3 1 1037 5.0 8 OTD522 651750.5 4766782.5 267.85 4.27 0.49 35 3 1 1042 5.0 8 OTD522 651752.8 4766783.5 263.64 4.18 0.57 31 3 1 1047 5.0 8 OTD522 651754.9 4766784.5 259.44 4.22 0.32 32 3 1 1052 5.0 8 OTD522 651757.3 4766786.0 255.24 4.58 0.52 15 3 1 1057 5.0 8 OTD522 651759.9 4766788.0 250.21 5.41 0.27 5 2 1 1063 5.0 8 OTD522 651762.2 4766789.5 246.02 5.29 0.43 5 2 1 1068 5.0 8 OTD522 651764.5 4766791.0 241.84 3.69 0.31 5 2 1 1073 5.0 8 OTD522 651766.8 4766792.5 237.66 4.67 0.33 5 2 1 1078 5.0 8 OTD522 651769.1 4766794.0 233.48 4.25 0.31 5 2 1 1083 5.0 8 OTD522 651771.4 4766796.0 229.30 2.76 0.11 5 2 1 1088 5.0 8 OTD522 651773.8 4766797.5 225.13 2.18 0.06 5 2 1 1093 5.0 8 OTD522 651776.1 4766799.0 220.97 2.30 0.10 16 2 1 1098 5.0 8 OTD522 651778.4 4766800.5 216.80 3.16 0.24 18 2 1 1103 5.0 8 OTD522 651780.8 4766802.0 212.65 4.14 5.26 23 2 1 1108 5.0 8 OTD522 651783.1 4766803.5 208.49 2.64 0.18 10 2 1 1113 5.0 8 OTD522 651785.4 4766805.0 204.34 1.28 0.09 21 2 1 1118 5.0 8 OTD522 651787.8 4766806.5 200.20 1.58 0.32 5 2 1 1123 5.0 8 OTD522 651790.2 4766808.5 196.07 1.70 0.55 5 2 1 1128 5.0 8 OTD522 651796.4 4766812.5 185.35 3.78 0.45 12 3 1 1141 5.0 8 OTD522 651798.8 4766814.0 181.24 5.85 0.46 17 3 1 1146 5.0 8 OTD522 651801.1 4766815.5 177.13 6.69 0.66 31 3 1 1151 5.0 8 OTD522 651803.6 4766817.0 173.03 6.62 0.37 25 3 1 1156 5.0 8 OTD522 651805.9 4766818.5 168.94 3.30 0.15 14 3 1 1161 5.0 8 OTD522 651808.4 4766820.0 164.86 11.93 0.66 21 3 1 1166 5.0 8 OTD522 651810.0 4766821.5 162.00 17.40 0.55 38 3 1 1168 2.0 8 OTD522 651811.7 4766822.0 159.14 2.87 0.16 9 2 1 1173 5.0 8 OTD522 651814.2 4766823.5 155.07 1.62 0.05 33 2 1 1178 5.0 8 OTD522 651816.6 4766825.0 150.99 0.80 0.03 5 2 1 1183 5.0 8 OTD522 651819.1 4766827.0 146.91 3.12 0.10 31 2 1 1188 5.0 8 OTD522 651821.6 4766828.5 142.84 3.32 0.09 68 2 1 1193 5.0 8 OTD522 651824.1 4766830.0 138.77 3.17 0.11 81 2 1 1198 5.0 8 OTD522 651826.5 4766831.5 134.70 3.62 0.13 43 2 1 1203 5.0 8 OTD522 651829.1 4766833.0 130.64 3.27 0.10 43 2 1 1208 5.0 8 OTD522 651831.4 4766834.5 126.99 1.73 0.04 8 2 1 1212 4.0 8 OTD522 651833.6 4766836.0 123.33 0.85 0.06 28 5 1 1217 5.0 8 OTD522 651836.2 4766837.0 119.27 1.69 0.09 60 5 1 1222 5.0 8
DHID EASTING NORTHING ELEVATION CU (wt%) AU (g/t) MO (ppm) DOMAIN ROCK CODE TO LENGTH ZONE ------------------------------------------------------------------------------------------------------------------------------- OTD522 651838.8 4766838.5 115.23 1.98 0.08 41 5 1 1227 5.0 8 OTD522 651841.3 4766839.5 111.19 2.37 0.07 32 5 1 1232 5.0 8 OTD522 651843.9 4766841.0 107.15 1.63 0.06 23 5 1 1237 5.0 8 OTD522 651846.4 4766843.0 103.12 1.60 0.05 22 5 1 1242 5.0 8 OTD522 651848.9 4766844.5 99.10 0.90 0.03 12 5 1 1247 5.0 8 OTD522 651851.5 4766846.0 95.08 1.08 0.05 14 5 1 1252 5.0 8 OTD522 651854.1 4766847.5 91.06 1.44 0.05 36 5 1 1257 5.0 8 OTD522 651856.7 4766849.0 87.06 0.93 0.02 20 5 1 1262 5.0 8 OTD522 651861.8 4766852.0 79.06 1.27 0.02 36 5 1 1272 5.0 8 OTD522 651864.4 4766853.5 75.06 1.25 0.03 37 5 1 1277 5.0 8
[IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA APPENDIX B ================================================================================ Standard Reference Material (SRM) Charts DECEMBER 2003 APPENDICES [AMEC LOGO] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #11 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #11 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #11 - OCTOBER 1 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #11 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #11 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL MOLYBDENUM ASSAYS FOR STANDARD #11 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #12 - NOVEMBER 1, 2002 1 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #12 - NOVEMBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #12 - NOVEMBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #12 - NOVEMBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #12 - NOVEMBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL MOLYBDENUM ASSAYS FOR STANDARD #12 - NOVEMBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #13 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #13 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #13 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #13 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #13 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #13 - OCTOBER 1, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #17 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #17 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #17 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #17 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #17 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #17 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #19 - DECEMBER 30, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #19 - DECEMBER 30, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #19 - DECEMBER 30, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #19 - DECEMBER 30, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #19 - DECEMBER 30, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL MOLYBDENUM ASSAYS FOR STANDARD #19 - DECEMBER 30, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #20 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #20 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #20 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #20 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #20 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL MOLYBDENUM ASSAYS FOR STANDARD #20 - DECEMBER 10, 2002 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #21 - MAY 23 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #21 - MAY 23 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD # 21 - MAY 23 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD # 21 - MAY 23 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #21 - MAY 23 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #21 - MAY 23 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL GOLD ASSAYS FOR STANDARD #26 - JULY 15 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL GOLD ASSAYS FOR STANDARD #26 - JULY 15 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL COPPER ASSAYS FOR STANDARD #26 - JULY 15 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL COPPER ASSAYS FOR STANDARD #26 - JULY 15 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT ORIGINAL MOLYBDENUM ASSAYS FOR STANDARD #26 - JULY 15 TO OCTOBER 31, 2003 [GRAPH] IVANHOE MINES MONGOLIA INC. - OYU TOLGOI PROJECT FINAL MOLYBDENUM ASSAYS FOR STANDARD #26 - JULY 15 TO OCTOBER 31, 2003 [GRAPH] [IVANHOE MINES LOGO] IVANHOE MINES LTD. TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA APPENDIX C ================================================================================ Data Analysis Box Plots Contact Profiles Histograms & probability Plots - Drill Hole Composite Values Histograms & probability Plots - Model Values DECEMBER 2003 APPENDICES [AMEC LOGO] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%: 2% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%: 2% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 2% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 2% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 2% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 2% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm: 2% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm: 2% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%: 1% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%: 1% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 1% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 1% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 1% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 1% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm: 1% shell, ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm: 1% shell, ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%:.6% Shell ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%:.6% Shell ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t:.6% Shell ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t:.6% Shell ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm:.6% Shell ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm:.6% Shell ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm:.6% Shell ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm:.6% Shell ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Cu%: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Au g/t: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Oct03 Composites) As ppm: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Ign domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Ign domain [GRAPH] Hugo South, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Qmd domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Qmd domain [GRAPH] Hugo North, Oyu Tolgoi Project (Composites) Cu%: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Composites) Cu%: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Composites) Au g/t: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Composites) Au g/t: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 2% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 2% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: 2% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: 2% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%: 1% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%: 1% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 1% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t: 1% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 1% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: 1% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: 1% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: 1% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%:.6% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%:.6% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t:.6% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t:.6% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm:.6% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm:.6% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm:.6% shell, ALL domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm:.6% shell, ALL domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Cu%: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Au g/t: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) Mo ppm: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Oct03 Composites) As ppm: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Ign domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Ign domain [GRAPH] Hugo North, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Qmd domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Composites) Au g/t: Bkgd Qmd domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Cu%: 1% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Cu%: 1% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Cu%: 0.6% ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Cu%: 0.6% ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Cu%: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Cu%: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 1% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 1% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 0.6% ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: 0.6% ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Cu%: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 1% shell, ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 1% shell, ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 0.6% ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: 0.6% ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Cu%: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 1% shell, ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 1% shell, ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 0.6% ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: 0.6% ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Cu%: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 2% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 2% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 1% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 1% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 0.6% Ign domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 0.6% Ign domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 0.6% Va + Qmd domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: 0.6% Va + Qmd domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Qmd domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Qmd domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Va + Ign [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Va + Ign [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 1% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 1% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 0.6% Ign domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 0.6% Ign domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 0.6% Va + Qmd domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: 0.6% Va + Qmd domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Qmd domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Qmd domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Va + Ign [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Va + Ign [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 1% shell, ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 1% shell, ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 0.6% ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: 0.6% ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Qmd domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Qmd domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Va + Ign Domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Au g/t: Bkgd Va + Ign Domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell, Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 2% shell, Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 1% shell, ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 1% shell, ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 0.6% ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: 0.6% ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Qmd domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Qmd domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Va + Ign Domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Au g/t: Bkgd Va + Ign Domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: 2% shell [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: 2% shell [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: 1% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: 1% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: 0.6% ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: 0.6% ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - NN) Mo ppm: Background domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: 2% shell [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: 2% shell [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: 1% shell, ALL domains [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: 1% shell, ALL domains [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: 0.6% ALL domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: 0.6% ALL domain [GRAPH] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: Background domain [BAR CHART] Hugo South, Oyu Tolgoi Project (Model - OK) Mo ppm: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: 2% shell+Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: 2% shell+Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: 1% shell, ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: 1% shell, ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: 0.6% ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: 0.6% ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - NN) Mo ppm: Background domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: 2% shell+Au domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: 2% shell+Au domain [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: 1% shell, ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: 1% shell, ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: 0.6% ALL domains [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: 0.6% ALL domains [GRAPH] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: Background domain [BAR CHART] Hugo North, Oyu Tolgoi Project (Model - OK) Mo ppm: Background domain [GRAPH] AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE COPPER COMPOSITES, BY DOMAIN, HUGO SOUTH [GRAPH] Number of data 397 136 4 1189 532 14 715 1055 256 2588 424 Number of data Mean 2.914 2.644 3.65 1.291 1.286 1.144 0.748 0.798 0.803 0.269 0.35 Mean Maximum 12.82 6.208 4.448 3.695 4.599 1.665 2.451 2.86 1.639 2.416 1.775 Maximum Upper quartile 3.534 3.077 4.27 1.527 1.468 1.353 0.894 0.927 0.978 0.428 0.477 Upper quartile Median 2.697 2.384 3.636 1.276 1.25 1.182 0.747 0.783 0.796 0.213 0.339 Median Lower quartile 2.117 1.987 2.819 1.057 1.062 0.9 0.609 0.627 0.66 0.05 0.17 Lower quartile Minimum 0.014 0.734 2.367 0.009 0.013 0.703 0.008 0.003 0.046 0.001 0.001 Minimum Variance 2.0637 1.0589 0.5993 0.1989 0.1676 0.0789 0.0766 0.0881 0.0731 0.0639 0.0531 Variance CV 0.493 0.389 0.212 0.345 0.318 0.246 0.37 0.372 0.337 0.94 0.659 CV Skewness 2.547 1.181 -0.468 0.49 1.72 0.204 0.449 1.182 -0.076 1.509 1.302 Skewness
Variable: Copper wt.% Acceptable range: 0.0 to 100.0 Weights: Length 2% Ign file: z71.prn 2% Va file: z72v.prn 2% Qmd file: z72q.prn 1% Ign file: z74.prn 1% Va file: z75v.prn 1% Qmd file: z75q.prn 0.6% Ign file: z76.prn 0.6% Va file: z77v.prn 0.6% Qmd file: z77q.prn Bkgd I+V file: z710r.prn Bkgd Qmd file: z710q.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE GOLD COMPOSITES, BY DOMAIN, HUGO SOUTH [GRAPH] Number of data 397 136 4 1189 532 14 715 1055 256 2588 424 Number of Data Mean 0.191 0.238 0.537 0.037 0.072 0.105 0.039 0.087 0.251 0.048 0.143 Mean Maximum 3.108 1.112 0.796 0.556 0.76 0.298 0.278 2.186 3.912 10.72 1.994 Maximum Upper quartile 0.236 0.306 0.676 0.046 0.092 0.142 0.046 0.076 0.315 0.049 0.149 Upper quartile Median 0.116 0.176 0.488 0.03 0.058 0.09 0.03 0.044 0.146 0.025 0.084 Median Lower quartile 0.064 0.091 0.335 0.018 0.036 0.053 0.02 0.028 0.068 0.012 0.04 Lower quartile Minimum 0.005 0.017 0.267 0.002 0.005 0.026 0.005 0.005 0.008 0.0 0.001 Minimum Variance 0.0562 0.0399 0.0386 0.0011 0.003 0.0051 0.0011 0.0219 0.1262 0.0498 0.0398 Variance CV 1.243 0.839 0.366 0.918 0.76 0.682 0.846 1.705 1.418 4.692 1.391 CV Skewness 5.925 1.982 0.074 5.476 2.955 1.361 2.474 5.973 5.759 43.454 4.085 Skewness
Variable: Gold g/t Acceptable range: 0.0 to 100.0 Weights: Length 2% Ign file: z71.prn 2% Va file: z72v.prn 2% Qmd file: z72q.prn 1% Ign file: z74.prn 1% Va file: z75v.prn 1% Qmd file: z75q.prn 0.6% Ign file: z76.prn 0.6% Va file: z77v.prn 0.6% Qmd file: z77q.prn Bkgd I+V file: z710r.prn Bkgd Qmd file: z710q.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE MOLYBDENUM COMPOSITES, BY DOMAIN, HUGO SOUTH [GRAPH] Number of data 397 136 4 1189 532 14 715 1055 256 2588 424 Number of data Mean 50.519 46.632 22.111 50.724 54.142 60.54 74.233 91.869 57.037 53.59 40.084 Mean Maximum 720.0 509.0 41.0 1799.0 960.0 102.0 465.0 2625.0 237.0 1603.0 443.0 Maximum Upper quartile 64.0 52.6 29.0 63.0 69.0 68.25 93.419 117.0 74.0 71.0 52.0 Upper quartile Median 37.0 34.0 20.9 39.0 41.0 59.25 61.0 66.0 48.0 30.0 28.0 Median Lower quartile 18.66 20.4 15.2 21.0 20.0 47.1 32.0 39.0 30.0 10.0 11.0 Lower quartile Minimum 5.0 5.0 12.0 5.0 5.0 39.0 5.0 5.0 5.0 0.0 1.0 Minimum Variance 3195.06 2946.11 89.321 4588.76 3712.63 308.947 3977.0 12742.5 1598.18 6010.13 2013.56 Variance CV 1.119 1.164 0.427 1.335 1.125 0.29 0.85 1.229 0.701 1.447 1.119 CV Skewness 5.165 5.256 0.988 15.797 7.708 0.89 2.278 12.15 1.585 7.201 3.431 Skewness
Variable: Molybdenum ppm Acceptable range: 0.0 to 100000.0 Weights: Length 2% Ign file: z71.prn 2% Va file: z72v.prn 2% Qmd file: z72q.prn 1% Ign file: z74.prn 1% Va file: z75v.prn 1% Qmd file: z75q.prn 0.6% Ign file: z76.prn 0.6% Va file: z77v.prn 0.6% Qmd file: z77q.prn Bkgd I+V file: z710r.prn Bkgd Qmd file: z710q.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE ARSENIC COMPOSITES, BY DOMAIN, HUGO SOUTH [GRAPH] Number of data 379 129 4 1189 532 14 702 1055 256 2429 424 Number of data Mean 254.033 98.089 50.0 257.682 101.683 101.746 247.25 147.17 265.845 144.264 94.161 Mean Maximum 4780.0 990.0 50.0 8416.0 2826.0 485.0 3498.0 3382.0 3224.0 4052.0 4416.0 Maximum Upper quartile 257.037 82.0 50.0 276.0 60.0 68.6 294.429 118.508 252.091 98.0 74.0 Upper quartile Median 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 64.0 50.0 50.0 Median Lower quartile 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 Lower quartile Minimum 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 Minimum Variance 189121.0 14997.8 0.0 226644.0 36978.8 13128.4 145629.0 68669.3 237117.0 86588.6 59278.5 Variance CV 1.712 1.249 0.0 1.848 1.891 1.126 1.543 1.781 1.832 2.04 2.586 CV Skewness 4.497 3.766 -1.0 6.374 7.826 2.436 3.322 5.605 3.797 6.791 14.481 Skewness
Variable: Arsenic ppm Acceptable range: 0.0 to 100000.0 Weights: Length 2% Ign file: z71.prn 2% Va file: z72v.prn 2% Qmd file: z72q.prn 1% Ign file: z74.prn 1% Va file: z75v.prn 1% Qmd file: z75q.prn 0.6% Ign file: z76.prn 0.6% Va file: z77v.prn 0.6% Qmd file: z77q.prn Bkgd I+V file: z710r.prn Bkgd Qmd file: z710q.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE COPPER COMPOSITES, BY DOMAIN, HUGO NORTH [GRAPH] Number of data 16 381 364 227 668 235 265 145 636 Number of data Mean 2.278 2.744 3.312 1.222 1.296 0.83 0.686 0.435 0.237 Mean Maximum 3.164 7.28 17.4 3.469 4.83 1.856 2.659 1.601 1.495 Maximum Upper quartile 2.538 3.395 4.255 1.491 1.586 0.987 0.894 0.594 0.362 Upper quartile Median 2.302 2.7 3.182 1.195 1.312 0.803 0.709 0.406 0.156 Median Lower quartile 1.947 2.119 2.129 0.97 1.024 0.682 0.495 0.226 0.057 Lower quartile Minimum 0.232 0.015 0.015 0.033 0.01 0.015 0.008 0.003 0.001 Minimum Variance 0.2524 1.2096 2.8992 0.2652 0.2085 0.0917 0.1404 0.0763 0.0585 Variance CV 0.221 0.401 0.514 0.421 0.352 0.365 0.546 0.635 1.02 CV Skewness -1.413 0.308 1.687 0.535 0.29 0.169 0.586 0.921 1.845 Skewness
Variable: Copper wt.% Acceptable range: 0.0 to 100.0 Weights: Length 2% Qmd file: z81.prn 2% Va file: z82.prn 2% Au zone file: z83.prn 1% Qmd file: z84.prn 1% Va file: z85.prn 0.6% Qmd file: z86.prn 0.6% Va file: z87.prn Bkgd Qmd file: z810q.prn Bkgd Va file: z810v.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE GOLD COMPOSITES, BY DOMAIN, HUGO NORTH [GRAPH] Number of data 16 381 364 227 668 235 265 145 636 Number of data Mean 0.201 0.216 1.183 0.234 0.103 0.236 0.059 0.128 0.037 Mean Maximum 0.436 5.264 8.106 1.58 0.582 0.962 1.374 0.914 2.5 Maximum Upper quartile 0.219 0.28 1.518 0.264 0.15 0.303 0.077 0.168 0.034 Upper quartile Median 0.179 0.16 0.873 0.2 0.074 0.203 0.028 0.086 0.018 Median Lower quartile 0.15 0.096 0.461 0.144 0.034 0.13 0.014 0.051 0.01 Lower quartile Minimum 0.09 0.007 0.006 0.012 0.005 0.005 0.005 0.005 0.001 Minimum Variance 0.0062 0.0932 1.1575 0.0319 0.0078 0.0245 0.0112 0.018 0.0125 Variance CV 0.393 1.414 0.909 0.764 0.862 0.665 1.797 1.05 3.023 CV Skewness 1.647 12.721 2.719 3.412 1.461 1.768 8.525 3.068 18.114 Skewness
Variable: Gold g/t Acceptable range: 0.0 to 100.0 Weights: Length 2% Qmd file: z81.prn 2% Va file: z82.prn 2% Au zone file: z83.prn 1% Qmd file: z84.prn 1% Va file: z85.prn 0.6% Qmd file: z86.prn 0.6% Va file: z87.prn Bkgd Qmd file: z810q.prn Bkgd Va file: z810v.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE MOLYBDENUM COMPOSITES, BY DOMAIN, HUGO NORTH [GRAPH] Number of data 16 381 364 227 668 235 265 145 636 Number of data Mean 82.541 20.713 34.246 65.171 50.568 35.731 58.665 36.734 37.123 Mean Maximum 336.0 361.0 610.0 703.0 265.0 223.0 336.0 146.0 632.0 Maximum Upper quartile 46.6 23.608 40.699 79.21 69.0 43.0 82.0 57.47 49.0 Upper quartile Median 42.0 11.0 18.0 44.0 30.0 25.0 44.0 26.3 22.0 Median Lower quartile 31.5 5.0 8.0 27.0 14.0 12.0 19.0 12.0 7.0 Lower quartile Minimum 24.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 1.0 Minimum Variance 10560.2 816.552 2564.97 5017.77 2671.73 1327.0 2924.58 920.394 2269.63 Variance CV 1.245 1.38 1.479 1.087 1.022 1.02 0.922 0.826 1.283 CV Skewness 1.944 5.845 5.812 4.318 1.634 2.439 1.895 1.189 4.865 Skewness
Variable: Molybdenum ppm Acceptable range: 0.0 to 100000.0 Weights: Length 2% Qmd file: z81.prn 2% Va file: z82.prn 2% Au zone file: z83.prn 1% Qmd file: z84.prn 1% Va file: z85.prn 0.6% Qmd file: z86.prn 0.6% Va file: z87.prn Bkgd Qmd file: z810q.prn Bkgd Va file: z810v.prn AMEC/IVANHOE HUGO DEPOSIT, OCT 2003 MR UPDATE ARSENIC COMPOSITES, BY DOMAIN, HUGO NORTH [GRAPH] Number of data 16 381 364 227 668 235 265 139 636 Number of data Mean 124.595 116.554 91.005 64.351 160.322 126.371 209.759 90.049 216.499 Mean Maximum 326.0 1674.0 1074.0 630.0 3162.0 1676.0 2368.0 1152.0 2132.0 Maximum Upper quartile 206.0 71.151 92.0 50.0 82.0 74.0 139.641 64.56 254.899 Upper quartile Median 79.8 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 Median Lower quartile 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 Lower quartile Minimum 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 Minimum Variance 8804.83 38494.3 10481.1 2881.09 115038.0 64524.7 133764.0 14103.4 97500.6 Variance CV 0.753 1.683 1.125 0.834 2.116 2.01 1.744 1.319 1.442 CV Skewness 0.984 4.765 5.138 5.879 4.596 4.487 3.035 6.03 2.68 Skewness
Variable: Arsenic ppm Acceptable range: 0.0 to 100000.0 Weights: Length 2% Qmd file: z81.prn 2% Va file: z82.prn 2% Au zone file: z83.prn 1% Qmd file: z84.prn 1% Va file: z85.prn 0.6% Qmd file: z86.prn 0.6% Va file: z87.prn Bkgd Qmd file: z810q.prn Bkgd Va file: z810v.prn HUGO SOUTH CONTACT PLOT: CU COMPOSITE DATA 2% SHELL VS. 1% SHELL 2.0% Cu Shell 1.0% Cu Shell N = 537 N = 1735 mean = 2.83 mean = 1.29 [GRAPH] HUGO SOUTH CONTACT PLOT: AU COMPOSITE DATA 1% SHELL VS. 0.6% SHELL 1.0% Cu Shell 0.6% Cu Shell N = 1735 N = 2026 mean = 1.29 mean = 0.78 [GRAPH] HUGO SOUTH CONTACT PLOT: CU COMPOSITE DATA 0.6% SHELL VS. BACKGROUND 0.6% Cu Shell Background N = 2026 N = 3012 mean = 0.78 mean = 0.28 [GRAPH] HUGO NORTH CONTACT PLOT: CU COMPOSITE DATA 2% SHELL VS. AU SHELL 2% Cu Shell Au Shell N = 397 N = 364 mean = 2.72 mean = 3.33 [GRAPH] HUGO NORTH CONTACT PLOT: CU COMPOSITE DATA 2%+AU SHELLS VS. 1% SHELL 2.0% Cu + Au Shells 1.0% Cu Shell N = 761 N = 895 mean = 3.01 mean = 1.28 [GRAPH] HUGO NORTH CONTACT PLOT: CU COMPOSITE DATA 1% SHELL VS. 0.6% SHELL 1.0% Cu Shell 0.6% Cu Shell N = 895 N = 500 mean = 1.28 mean = 0.75 HUGO NORTH CONTACT PLOT: CU COMPOSITE DATA 0.6% SHELL VS. BACKGROUND 0.6% Cu Shell Background N = 500 N = 781 mean = 0.75 mean = 0.27 [GRAPH] HUGO SOUTH CONTACT PLOT: AU COMPOSITE DATA 2% SHELL VS. 1% SHELL 2.0% Cu Shell 1.0% Cu Shell N = 537 N = 1735 mean = 0.20 mean = 0.05 [GRAPH] HUGO SOUTH CONTACT PLOT: AU COMPOSITE DATA 1% SHELL VS. 0.6% SHELL 1.0% Cu Shell 0.6% Cu Shell N = 1735 N = 2026 mean = 0.05 mean = 0.09 [GRAPH] HUGO SOUTH CONTACT PLOT: AU COMPOSITE DATA 0.6% SHELL VS. BACKGROUND 0.6% Cu Shell Background N = 2026 N = 3012 mean = 0.09 mean = 0.06 [GRAPH] HUGO NORTH CONTACT PLOT: AU COMPOSITE DATA 2% SHELL VS. AU SHELL 2% Cu Shell Au Shell N = 397 N = 364 mean = 0.22 mean = 1.17 [GRAPH] HUGO NORTH CONTACT PLOT: AU COMPOSITE DATA 2%+AU SHELLS VS. 1% SHELL 2.0% Cu + Au Shells 1.0% Cu Shell N = 761 N = 895 mean = 0.68 mean = 0.14 [GRAPH] HUGO NORTH CONTACT PLOT: AU COMPOSITE DATA 1% SHELL VS. 0.6% SHELL 1.0% Cu Shell 0.6% Cu Shell N = 895 N = 500 mean = 0.14 mean = 0.14 [GRAPH] HUGO NORTH CONTACT PLOT: AU COMPOSITE DATA 0.6% SHELL VS. BACKGROUND 0.6% Cu Shell Background N = 500 N = 781 mean = 0.14 mean = 0.05 [GRAPH] IVANHOE MINES LTD. [IVANHOE MINES LOGO] TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA APPENDIX D Variography DECEMBER 2003 APPENDICES [AMEC LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(29)(h) [GRAPH] AZIMUTH = 30 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(61)(h) [GRAPH] AZIMUTH = 60 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(14)(h) + 0.519 Sph(91)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 90 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(34)(h) [GRAPH] AZIMUTH = 120 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(24)(h) [GRAPH] AZIMUTH = 150 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(37)(h) + 0.519 Sph(23)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 180 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(29)(h) [GRAPH] AZIMUTH = 210 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(61)(h) [GRAPH] AZIMUTH = 240 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(14)(h) + 0.519 Sph(91)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 270 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(34)(h) [GRAPH] AZIMUTH = 300 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(24)(h) [GRAPH] AZIMUTH = 330 DIP = 0 (gamma)(h) = 0.100 + 0.381 Sph(37)(h) + 0.519 Sph(23)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 0 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(49)(h) + 0.519 Sph(34)(h) [GRAPH] AZIMUTH = 30 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(30)(h) + 0.519 Sph(57)(h) [GRAPH] AZIMUTH = 60 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(54)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 90 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(31)(h) [GRAPH] AZIMUTH = 120 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(23)(h) + 0.519 Sph(24)(h) [GRAPH] AZIMUTH = 150 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(18)(h) + 0.519 Sph(24)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 180 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(14)(h) + 0.519 Sph(30)(h) [GRAPH] AZIMUTH = 210 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(11)(h) + 0.519 Sph(57)(h) [GRAPH] AZIMUTH = 240 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(10)(h) + 0.519 Sph(137)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 270 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(12)(h) + 0.519 Sph(44)(h) [GRAPH] AZIMUTH = 300 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(29)(h) [GRAPH] AZIMUTH = 330 DIP = -30 (gamma)(h) = 0.100 + 0.381 Sph(28)(h) + 0.519 Sph(28)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 0 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(20)(h) + 0.519 Sph(46)(h) [GRAPH] AZIMUTH = 30 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(22)(h) + 0.519 Sph(51)(h) [GRAPH] AZIMUTH = 60 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(21)(h) + 0.519 Sph(45)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 90 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(18)(h) + 0.519 Sph(36)(h) [GRAPH] AZIMUTH = 120 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(31)(h) [GRAPH] AZIMUTH = 150 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(13)(h) + 0.519 Sph(31)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 180 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(11)(h) + 0.519 Sph(36)(h) [GRAPH] AZIMUTH = 210 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(10)(h) + 0.519 Sph(51)(h) [GRAPH] AZIMUTH = 240 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(10)(h) + 0.519 Sph(70)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 270 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(11)(h) + 0.519 Sph(59)(h) [GRAPH] AZIMUTH = 300 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(13)(h) + 0.519 Sph(46)(h) [GRAPH] AZIMUTH = 330 DIP = -60 (gamma)(h) = 0.100 + 0.381 Sph(16)(h) + 0.519 Sph(42)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU AZIMUTH = 0 DIP = -90 (gamma)(h) = 0.100 + 0.381 Sph(13)(h) + 0.519 Sph(49)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - CU DH AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.100 + 0.613 Sph(16.5)(h) + 0.287 Sph(68.3)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(14)(h) + 0.320 Sph(200)(h) [GRAPH] AZIMUTH = 30 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(17)(h) + 0.320 Sph(84)(h) [GRAPH] AZIMUTH = 60 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(29)(h) + 0.320 Sph(51)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 90 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(34)(h) + 0.320 Sph(45)(h) [GRAPH] AZIMUTH = 120 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(19)(h) + 0.320 Sph(51)(h) [GRAPH] AZIMUTH = 150 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(14)(h) + 0.320 Sph(83)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 180 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(14)(h) + 0.320 Sph(200)(h) [GRAPH] AZIMUTH = 210 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(17)(h) + 0.320 Sph(84)(h) [GRAPH] AZIMUTH = 240 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(29)(h) + 0.320 Sph(51)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 270 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(34)(h) + 0.320 Sph(45)(h) [GRAPH] AZIMUTH = 300 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(19)(h) + 0.320 Sph(51)(h) [GRAPH] AZIMUTH = 330 DIP = 0 (gamma)(h) = 0.230 + 0.450 Sph(14)(h) + 0.320 Sph(83)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 0 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(21)(h) + 0.320 Sph(136)(h) [GRAPH] AZIMUTH = 30 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(31)(h) + 0.320 Sph(64)(h) [GRAPH] AZIMUTH = 60 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(82)(h) + 0.320 Sph(45)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 90 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(31)(h) + 0.320 Sph(40)(h) [GRAPH] AZIMUTH = 120 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(17)(h) + 0.320 Sph(44)(h) [GRAPH] AZIMUTH = 150 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(13)(h) + 0.320 Sph(63)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 180 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(12)(h) + 0.320 Sph(134)(h) [GRAPH] AZIMUTH = 210 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(14)(h) + 0.320 Sph(157)(h) [GRAPH] AZIMUTH = 240 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(20)(h) + 0.320 Sph(83)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 270 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(29)(h) + 0.320 Sph(70)(h) [GRAPH] AZIMUTH = 300 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(26)(h) + 0.320 Sph(83)(h) [GRAPH] AZIMUTH = 330 DIP = -30 (gamma)(h) = 0.230 + 0.450 Sph(21)(h) + 0.320 Sph(155)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 0 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(46)(h) + 0.320 Sph(94)(h) [GRAPH] AZIMUTH = 30 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(64)(h) + 0.320 Sph(64)(h) [GRAPH] AZIMUTH = 60 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(45)(h) + 0.320 Sph(51)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 90 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(25)(h) + 0.320 Sph(48)(h) [GRAPH] AZIMUTH = 120 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(18)(h) + 0.320 Sph(51)(h) [GRAPH] AZIMUTH = 150 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(15)(h) + 0.320 Sph(63)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 180 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(14)(h) + 0.320 Sph(93)(h) [GRAPH] AZIMUTH = 210 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(15)(h) + 0.320 Sph(155)(h) [GRAPH] AZIMUTH = 240 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(18)(h) + 0.320 Sph(200)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 270 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(24)(h) + 0.320 Sph(192)(h) [GRAPH] AZIMUTH = 300 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(31)(h) + 0.320 Sph(200)(h) [GRAPH] AZIMUTH = 330 DIP = -60 (gamma)(h) = 0.230 + 0.450 Sph(37)(h) + 0.320 Sph(156)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU AZIMUTH = 0 DIP = -90 (gamma)(h) = 0.230 + 0.450 Sph(23)(h) + 0.320 Sph(83)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - AU DH AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.230 + 0.316 Sph(14.8)(h) + 0.454 Sph(64.9)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(37)(h) + 0.286 Sph(162)(h) [GRAPH] AZIMUTH = 30 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(24)(h) + 0.286 Sph(182)(h) [GRAPH] AZIMUTH = 60 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(19)(h) + 0.286 Sph(104)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 90 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(19)(h) + 0.286 Sph(78)(h) [GRAPH] AZIMUTH = 120 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(24)(h) + 0.286 Sph(76)(h) [GRAPH] AZIMUTH = 150 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(39)(h) + 0.286 Sph(96)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 180 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(37)(h) + 0.286 Sph(162)(h) [GRAPH] AZIMUTH = 210 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(24)(h) + 0.286 Sph(182)(h) [GRAPH] AZIMUTH = 240 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(19)(h) + 0.286 Sph(104)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 270 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(19)(h) + 0.286 Sph(78)(h) [GRAPH] AZIMUTH = 300 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(24)(h) + 0.286 Sph(76)(h) [GRAPH] AZIMUTH = 330 DIP = 0 (gamma)(h) = 0.390 + 0.324 Sph(39)(h) + 0.286 Sph(96)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 0 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(49)(h) + 0.286 Sph(151)(h) [GRAPH] AZIMUTH = 30 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(39)(h) + 0.286 Sph(91)(h) [GRAPH] AZIMUTH = 60 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(30)(h) + 0.286 Sph(64)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 90 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(29)(h) + 0.286 Sph(54)(h) [GRAPH] AZIMUTH = 120 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(34)(h) + 0.286 Sph(54)(h) [GRAPH] AZIMUTH = 150 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(35)(h) + 0.286 Sph(62)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 180 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(25)(h) + 0.286 Sph(86)(h) [GRAPH] AZIMUTH = 210 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(19)(h) + 0.286 Sph(147)(h) [GRAPH] AZIMUTH = 240 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(16)(h) + 0.286 Sph(223)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 270 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(16)(h) + 0.286 Sph(184)(h) [GRAPH] AZIMUTH = 300 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(20)(h) + 0.286 Sph(173)(h) [GRAPH] AZIMUTH = 330 DIP = -30 (gamma)(h) = 0.390 + 0.324 Sph(30)(h) + 0.286 Sph(196)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 0 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(33)(h) + 0.286 Sph(83)(h) [GRAPH] AZIMUTH = 30 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(40)(h) + 0.286 Sph(66)(h) [GRAPH] AZIMUTH = 60 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(40)(h) + 0.286 Sph(56)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 90 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(37)(h) + 0.286 Sph(51)(h) [GRAPH] AZIMUTH = 120 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(33)(h) + 0.286 Sph(51)(h) [GRAPH] AZIMUTH = 150 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(27)(h) + 0.286 Sph(55)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 180 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(22)(h) + 0.286 Sph(65)(h) [GRAPH] AZIMUTH = 210 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(19)(h) + 0.286 Sph(81)(h) [GRAPH] AZIMUTH = 240 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(17)(h) + 0.286 Sph(102)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 270 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(18)(h) + 0.286 Sph(120)(h) [GRAPH] AZIMUTH = 300 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(20)(h) + 0.286 Sph(120)(h) [GRAPH] AZIMUTH = 330 DIP = -60 (gamma)(h) = 0.390 + 0.324 Sph(25)(h) + 0.286 Sph(103)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO AZIMUTH = 0 DIP = -90 (gamma)(h) = 0.390 + 0.324 Sph(24)(h) + 0.286 Sph(64)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 2.0% CU SHELL - MO DH AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.390 + 0.239 Sph(45.3)(h) + 0.371 Sph(45.9)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 1.0% CU SHELL - CU AZIMUTH = 0 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(41)(h) + 0.200 Sph(50)(h) [GRAPH] AZIMUTH = 30 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(28)(h) + 0.200 Sph(36)(h) [GRAPH] AZIMUTH = 60 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(17)(h) + 0.200 Sph(34)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 1.0% CU SHELL - CU AZIMUTH = 90 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(15)(h) + 0.200 Sph(40)(h) [GRAPH] AZIMUTH = 120 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(16)(h) + 0.200 Sph(66)(h) [GRAPH] AZIMUTH = 150 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(23)(h) + 0.200 Sph(89)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 1.0% CU SHELL - CU AZIMUTH = 180 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(41)(h) + 0.200 Sph(50)(h) [GRAPH] AZIMUTH = 210 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(28)(h) + 0.200 Sph(36)(h) [GRAPH] AZIMUTH = 240 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(17)(h) + 0.200 Sph(34)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 1.0% CU SHELL - CU AZIMUTH = 270 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(15)(h) + 0.200 Sph(40)(h) [GRAPH] AZIMUTH = 300 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(16)(h) + 0.200 Sph(66)(h) [GRAPH] AZIMUTH = 330 DIP = 0 (gamma)(h) = 0.400 + 0.400 Sph(23)(h) + 0.200 Sph(89)(h) [GRAPH] [ISAAKS & CO. LOGO] HUGO SOUTH 1.0% CU SHELL - CU AZIMUTH = 0 DIP = -30 (gamma)(h) = 0.400 + 0.400 Sph(23)(h) + 0.200 Sph(58)(h) [GRAPH] AZIMUTH = 30 DIP = -30 (gamma)(h) = 0.400 + 0.400 Sph(32)(h) + 0.200 Sph(44)(h) [GRAPH] AZIMUTH = 60 DIP = -30 (gamma)(h) = 0.400 + 0.400 Sph(28)(h) + 0.200 Sph(42)(h) [GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Cu DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 100 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Au DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 1.0% Cu Shell - Mo DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Cu DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Au DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South 0.6% Cu Shell - Mo DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Cu DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Au DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain - Mo AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo South Background Domain Mo DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 90 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] AZIMUTH = 180 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 330 DIP = 0 [LINE GRAPH] AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 60 DIP = -30 [LINE GRAPH] AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 150 DIP = -30 [LINE GRAPH] AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] AZIMUTH = 270 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 2% plus Au shells: Cu AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Shells Au Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 270 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] AZIMUTH = 0 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] AZIMUTH = 90 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] AZIMUTH = 180 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] AZIMUTH = 270 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1 and 2% Cu Domains - Mo Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] AZIMUTH = 180 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] AZIMUTH = 270 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 330 DIP = 0 [LINE GRAPH] AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 60 DIP = -30 [LINE GRAPH] AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 150 DIP = -30 [LINE GRAPH] AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 180 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 240 DIP = -60 [LINE GRAPH] AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 1% plus 0.6% shells: Cu AZIMUTH = 330 DIP = -60 [LINE GRAPH] AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 270 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] AZIMUTH = 0 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] AZIMUTH = 90 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] AZIMUTH = 180 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] AZIMUTH = 270 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells Au Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North 0.6 and 1% Cu Shells - Mo Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Cu Grade AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Cu Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Au Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 270 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] AZIMUTH = 0 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] AZIMUTH = 90 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] AZIMUTH = 180 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] AZIMUTH = 270 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Au Domain Au Grade AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 0 DIP = 0 [LINE GRAPH] AZIMUTH = 30 DIP = 0 [LINE GRAPH] AZIMUTH = 60 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 90 DIP = 0 [LINE GRAPH] AZIMUTH = 120 DIP = 0 [LINE GRAPH] AZIMUTH = 150 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 180 DIP = 0 [LINE GRAPH] AZIMUTH = 210 DIP = 0 [LINE GRAPH] AZIMUTH = 240 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 270 DIP = 0 [LINE GRAPH] AZIMUTH = 300 DIP = 0 [LINE GRAPH] AZIMUTH = 330 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 0 DIP = -30 [LINE GRAPH] AZIMUTH = 30 DIP = -30 [LINE GRAPH] AZIMUTH = 60 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 90 DIP = -30 [LINE GRAPH] AZIMUTH = 120 DIP = -30 [LINE GRAPH] AZIMUTH = 150 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 180 DIP = -30 [LINE GRAPH] AZIMUTH = 210 DIP = -30 [LINE GRAPH] AZIMUTH = 240 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 270 DIP = -30 [LINE GRAPH] AZIMUTH = 300 DIP = -30 [LINE GRAPH] AZIMUTH = 330 DIP = -30 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 0 DIP = -60 [LINE GRAPH] AZIMUTH = 30 DIP = -60 [LINE GRAPH] AZIMUTH = 60 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 90 DIP = -60 [LINE GRAPH] AZIMUTH = 120 DIP = -60 [LINE GRAPH] AZIMUTH = 150 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 180 DIP = -60 [LINE GRAPH] AZIMUTH = 210 DIP = -60 [LINE GRAPH] AZIMUTH = 240 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 270 DIP = -60 [LINE GRAPH] AZIMUTH = 300 DIP = -60 [LINE GRAPH] AZIMUTH = 330 DIP = -60 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade AZIMUTH = 0 DIP = -90 [LINE GRAPH] [ISAAKS & CO. LOGO] Hugo North Background Domain Mo Grade DH AZIMUTH = 0 DIP = 0 [LINE GRAPH] [ISAAKS & CO. LOGO] IVANHOE MINES LTD. [IVANHOE MINES LOGO] TECHNICAL REPORT HUGO DUMMETT DEPOSIT, OYU TOLGOI PROJECT, MONGOLIA APPENDIX E Sections and Plans DECEMBER 2003 APPENDICES [AMEC LOGO] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [OYU TOLGOI PROJECT MAP] [BCSC LOGO] P. O. Box 10142, Pacific Centre BRITISH COLUMBIA 701 West Georgia Street SECURITIES COMMISSION Vancouver, British Columbia V7Y 1L2 CANADA SEDAR Electronic Correspondence Telephone: (604) 899-6500 Fax: (604)899-6506 (BC only) 1-800-373-6393 IN THE MATTER OF NATIONAL POLICY 43-201 MUTUAL RELIANCE REVIEW SYSTEM FOR PROSPECTUSES AND ANNUAL INFORMATION FORMS AND IN THE MATTER OF IVANHOE MINES LTD. DECISION DOCUMENT This preliminary mutual reliance review system decision document evidences that preliminary receipts of the regulators in each OF BRITISH COLUMBIA AND ONTARIO have been issued for a preliminary short form prospectus of the above issuer dated December 5, 2003. DATED at Vancouver, British Columbia on December 5, 2003. S/ Larry Wilkins ______________________________ Larry Wilkins, C.A. Manager Corporate Finance Branch Note: The issuance of this decision document is not to be construed as meaning that the adequacy of the preliminary materials has been established. The materials are being reviewed and initial comments will be furnished to you as soon as possible. SEDAR Project No.: 597258P A copy of this preliminary short form prospectus has been filed with the securities regulatory authorities in British Columbia and Ontario but has not yet become final for the purpose of the sale of securities. Information contained in this preliminary short form prospectus may not be complete and may have to be amended. The securities may not be sold until a receipt for the short form prospectus is obtained from the securities regulatory authorities. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. The securities offered hereby have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws. Accordingly, the securities may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This short farm prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby within the United States. See "Private Placement and Plan of Distribution". INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH SECURITIES REGULATORY AUTHORITIES IN CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe Mines Ltd. at Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1 (telephone (604) 688-5755). Preliminary Short Form Prospectus New Issue December 5, 2003 IVANHOE MINES LTD. U.S.$49,996,800 5,760,000 COMMON SHARES AND 5,760,000 SHARE PURCHASE WARRANTS TO BE ISSUED UPON THE EXERCISE OF 5,760,000 SPECIAL WARRANTS This short form prospectus qualifies for distribution 5,760,000 common shares ("Common Shares") and 5,760,000 share purchase warrants ("Purchase Warrants") of Ivanhoe Mines Ltd. ("Ivanhoe" or the "Corporation") to be issued upon the exercise of 5,760,000 special warrants (the "Special Warrants") of Ivanhoe (the "Offering"). Each ten (10) Purchase Warrants entitles the holder to acquire one (1.) Common Share at a price of U.S.$8.68 at any time on or before February 15, 2004. The Special Warrants were issued on October 31, 2003 pursuant to subscription agreements (the "Subscription Agreements") between Ivanhoe and institutional investors (the "Purchasers") at a price of U.S.$8.68 per Special Warrant. The price of the Special Warrants was determined by negotiation between Ivanhoe and the Purchasers. Ivanhoe sold the Special Warrants directly to the Purchasers without use of an agent or underwriter pursuant to registration and prospectus exemptions under applicable securities legislation. See "Private Placement and Plan of Distribution". NO UNDERWRITER HAS BEEN INVOLVED IN THE PREPARATION OF, OR HAS REVIEWED THE CONTENTS OF, THIS SHORT FORM PROSPECTUS. Subject to adjustment, each Special Warrant entitles the holder thereof to acquire one Common Share and one Purchase Warrant, at no additional cost, at any time until 5:00 p.m. (Vancouver time) on the fifth business day after the earlier of (the "Expiry Time"): (i) the date on which a final receipt for this prospectus has been issued by the British Columbia Securities Commission and the Ontario Securities Commission (the "Qualification 2 Date"); and (ii) the four month anniversary of the date of issuance of the Special Warrants. Any Special Warrants not exercised prior to the Expiry Time will be deemed to have been exercised immediately prior to the Expiry Time without any further action on the part of the holder. Ivanhoe paid no fees or commissions in connection with the Offering, nor will any fees or commissions be payable by Ivanhoe in connection with the issuance of the Common Shares and Purchase Warrants on the exercise of the Special Warrants. The expenses of the Offering, including the cost of preparation of this prospectus, will be borne by Ivanhoe. See "Private Placement and Plan of Distribution". Each Purchaser has represented and warranted in its Subscription Agreement that it is acquiring the Special Warrants and the underlying Common Shares and Purchase Warrants to be held for investment only and not with a view to immediate resale or distribution. Ivanhoe has no reason to believe that any of the Purchasers have any different investment intent in respect of the Special Warrants and their underlying Common Shares and Purchase Warrants than that represented in the Subscription Agreements. The Common Shares are traded on The Toronto Stock Exchange (the "TSX") and the Australian Stock Exchange under the symbol "IVN" and are quoted on the NASDAQ National Market ("Nasdaq") under the symbol "HUGO". The price of the Common Shares at the close of business on December 4, 2003 was Cdn.Sl1.12 on the TSX and U.S.$8.46 on the Nasdaq. 3 TABLE OF CONTENTS
PAGE FORWARD LOOKING STATEMENTS...................................... 3 CURRENCY AND EXCHANGE RATES..................................... 4 DOCUMENTS INCORPORATED BY REFERENCE............................. 4 NAME AND INCORPORATION.......................................... 5 SUMMARY DESCRIPTION OF THE BUSINESS............................. 7 CONSOLIDATED CAPITALIZATION..................................... 7 DESCRIPTION OF SHARE CAPITAL.................................... 8 DESCRIPTION OF PURCHASE WARRANTS................................ 9 PRIVATE PLACEMENT AND PLAN OF DISTRIBUTION...................... 10 USE OF PROCEEDS................................................. 11 OTHER MATERIAL FACTS............................................ 12 RISK FACTORS.................................................... 12 AUDITORS, TRANSFER AGENT AND REGISTRAR.......................... 13 LEGAL MATTERS................................................... 13 PURCHASERS' STATUTORY RIGHTS.................................... 14 CONTRACTUAL RIGHTS OF ACTION FOR RESCISSION..................... 14 CERTIFICATE OF IVANHOE MINES LTD................................ 12
FORWARD LOOKING STATEMENTS Certain statements contained in this short form prospectus and in the documents incorporated by reference herein respecting reserves, resources, plans, objectives and future performance of Ivanhoe's business are forward-looking statements including, without limitation, the discussion about a scoping study and feasibility study being performed on the Oyu Tolgoi Project (as defined below) and the use of proceeds of the Offering. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in commodity prices, unanticipated reserve and resource grades, geological, metallurgical, processing, transportation, infrastructure and other problems, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, political risk and related economic risk, actual performance of plant, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risk factors incorporated by reference in this short form prospectus. 4 CURRENCY AND EXCHANGE RATES In this short form prospectus, all references to "U.S.$" are to United States dollars and all references to "Cdn.$" are to Canadian dollars. The Bank of Canada noon buying rates for the purchase of one United States dollar using Canadian dollars were as follows during the indicated periods: (Stated in Canadian dollars)
NINE MONTHS ENDED SEPTEMBER 30, 2003 YEAR ENDED DECEMBER 31 --------------- ------------------------------ 2002 2001 2000 End of period 1.3504 1.5796 1.5928 1.4995 High for the period 1.5747 1.6184 1.6052 1.5601 Low for the period 1.3342 1.5155 1.4901 1.4349 Average for the period 1.4295 1.5703 1.5484 1.4859
The Bank of Canada noon buying rate on December 4, 2003 for the purchase of one United States dollar using Canadian dollars was Cdn.$1.3122 (one Canadian dollar on that date equalled U.S.$0.7621). DOCUMENTS INCORPORATED BY REFERENCE The following documents of Ivanhoe, filed with the various securities commissions or similar authorities in all of the provinces of Canada, are specifically incorporated by reference into, and form an integral part of, this short form prospectus: 1. Renewal Annual Information Form dated May 20, 2003 (the "AIF"). 2. Comparative consolidated financial statements of Ivanhoe for the years ended December 31, 2002 and 2001, together with the notes thereto and the auditors' report thereon and including the management's discussion and analysis of financial condition and results of operations ("MD&A") for such periods; 3. Comparative unaudited consolidated interim financial statements for the three and nine month periods ended September 30, 2003 and 2002, together with MD&A for such periods. 4. Management Information Circular dated April 15, 2003 prepared in connection with Ivanhoe's annual meeting of shareholders held on June 12, 2003 (excluding the report on executive compensation, the performance graph and the statement of corporate governance practices). 5. Material Change Report dated February 26, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi gold and copper mineral project (the "Oyu Tolgoi Project") in Mongolia. 6. Material Change Report dated August 7, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project, as amended by an Amended and Restated Material Change Report dated August 18, 2003. 5 7. Material Change Report dated November 6, 2003 regarding the acquisition by Ivanhoe from BHP Minerals International Exploration Inc. ("BHP Exploration") of a 2% net smelter returns royalty over production from the Oyu Tolgoi Project. 8. Material Change Report dated November 20, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project. Any documents of the type referred to in the preceding paragraph, interim financial statements and any material change reports (excluding confidential reports) filed by Ivanhoe with the securities commission or similar authority in each of the provinces of Canada subsequent to the date of this short form prospectus and prior to the termination of the Offering shall be deemed to be incorporated by reference in this short form prospectus. ANY STATEMENT CONTAINED IN A DOCUMENT INCORPORATED OR DEEMED TO BE INCORPORATED BY REFERENCE HEREIN SHALL BE DEEMED TO BE MODIFIED OR SUPERSEDED FOR PURPOSES OF THIS SHORT FORM PROSPECTUS, TO THE EXTENT THAT A STATEMENT CONTAINED HEREIN OR IN ANY SUBSEQUENTLY FILED DOCUMENT THAT ALSO IS OR IS DEEMED TO BE INCORPORATED BY REFERENCE HEREIN MODIFIES OR REPLACES SUCH STATEMENT. THE MODIFYING OR SUPERSEDING STATEMENT NEED NOT STATE THAT IT HAS MODIFIED OR SUPERSEDED A PRIOR STATEMENT OR INCLUDE ANY OTHER INFORMATION SET FORTH IN THE DOCUMENT THAT IT MODIFIES OR SUPERSEDES. THE MAKING OF A MODIFYING OR SUPERSEDING STATEMENT SHALL NOT BE DEEMED AN ADMISSION FOR ANY PURPOSES THAT THE MODIFIED OR SUPERSEDED STATEMENT WHEN MADE, CONSTITUTED A MISREPRESENTATION, AN UNTRUE STATEMENT OF A MATERIAL FACT OR AN OMISSION TO STATE A MATERIAL FACT THAT IS REQUIRED TO BE STATED OR THAT IS NECESSARY TO MAKE A STATEMENT NOT MISLEADING IN LIGHT OF THE CIRCUMSTANCES IN WHICH IT WAS MADE. ANY STATEMENT SO MODIFIED OR SUPERSEDED SHALL NOT BE DEEMED IN ITS UNMODIFIED OR SUPERSEDED FORM TO CONSTITUTE A PART OF THIS SHORT FORM PROSPECTUS. INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH THE SECURITIES COMMISSION OF EACH OF THE PROVINCES OF CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe, Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1 (telephone (604) 688-5755). NAME AND INCORPORATION Ivanhoe was incorporated under the Company Act (British Columbia) on January 25, 1994 under the name 463212 B.C. Ltd. In February 1994, Ivanhoe changed its name to Indochina Goldfields Ltd. In March 1994, Ivanhoe increased its authorized capital from 10,000 common shares without par value to 100,000,000 common shares without par value and created 100,000,000 preferred shares without par value. In February 1995, Ivanhoe was continued under the Business Corporations Act (Yukon). In July 1997, Ivanhoe increased its authorized capital to an unlimited number of common shares without par value and an unlimited number of preferred shares without par value (the "Preferred Shares"). In June 1999, Ivanhoe changed its name to Ivanhoe Mines Ltd. Ivanhoe's North American headquarters are located at Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1. Ivanhoe's Asian headquarters are located at 37th Floor #2, Millenia Tower, 1 Temasek Avenue, Singapore 039192. The Corporation's registered office is located at Suite 300, 204 Black Street, Whitehorse, Yukon, Canada, Yl A2M9. 6 SUBSIDIARIES AND MANAGEMENT STRUCTURE The corporate structure of Ivanhoe, its material subsidiaries, the percentage ownership in subsidiaries which are not wholly-owned by Ivanhoe and the jurisdiction of incorporation of such corporations as at the date of this short form prospectus are set out in the following chart. [FLOW CHART] Note: All subsidiaries are wholly-owned unless otherwise indicated. "BVI" means British Virgin Islands. 7 SUMMARY DESCRIPTION OF THE BUSINESS Ivanhoe is an international mineral exploration and development company. Ivanhoe holds interests in and conducts operations on mineral resource properties in Mongolia, Myanmar, Australia, China and Kazakhstan, and holds interests through investments in mineral resource properties in Mongolia, China, South Korea and Vietnam. The Corporation has identified the Oyu Tolgoi Project, the Monywa copper project in Myanmar (the "Monywa Copper Project") and the Savage River iron ore mine in Tasmania, Australia (the "Savage River Project") as the mineral resource properties material to Ivanhoe. Ivanhoe's interests in Kazakhstan, Mongolia (other than the Oyu Tolgoi Project), China, Myanmar (other than the Monywa Copper Project), South Korea and Vietnam are not considered material. A brief description of the Oyu Tolgoi Project is set forth below. For a more detailed description of all of the Corporation's properties see "Item 3. General Development of the Business" and "Item 4. Narrative Description of Business" on pages 9 through 52 of Ivanhoe's AIF and the financial statements, MD&A and material change reports incorporated by reference in this short form prospectus. SUMMARY OF OYU TOLGOI PROJECT The Oyu Tolgoi Project is a copper and gold mineral exploration project located in the South Gobi region of Mongolia. Ivanhoe acquired its interest in the Oyu Tolgoi Project in 2001 from BHP Exploration pursuant to a May 2000 earn-in agreement. BHP Exploration retained a 2% net smelter returns royalty (the "BHP Royalty"). In November 2003, the Corporation agreed to purchase the BHP Royalty for U.S.$37,000,000. Ivanhoe has identified four occurrences of copper and gold mineralization on the Oyu Tolgoi property, the Southwest Oyu, Central Oyu, South Oyu and Hugo Dummet deposits. The Corporation has completed a series of substantial drilling programs to define the nature and extent of the mineralization in these deposits and has, to date, identified quantities of inferred mineral resources at all four deposits and indicated mineral resources at the Southwest Oyu deposit. The Corporation continues to drill the property in order to better define the nature and extent of the mineralization to date on the property, particularly at the Hugo Dummet deposit, and to upgrade the previously identified inferred resources to the measured and indicated categories. The Corporation is also carrying out a scoping study on the project, which is expected to be completed in January 2004 and investigating opportunities to establish new infrastructure or improve existing infrastructure necessary to support potential mine development and production. The Corporation is in the process of negotiating a broadly-based, legally authorized global stability or concession agreement with the Government of Mongolia, the purpose of which is to maintain and/or enhance, for the Corporation's benefit, the Mongolian tax, fiscal and commercial environment over the life of the Oyu Tolgoi Project. The agreement is expected to address a range of matters including the following: project tax rates, confirmation of appropriate mining, land, license and infrastructure tenure necessary to carry out all exploration, mining, milling, processing, including smelting and refining, metallurgy arid related activities over the life of the project, water resources and long term water rights, energy and transportation matters and approvals, labour and staffing requirements, mineral royalties, environmental protection requirements, assurances in connection with the Corporation's long term right to sell and export products from the project at international market prices, the right and entitlement to receive and dispose of hard currency income derived from such sale or export, reduction of, or exemption from, import and export duties, favourable bilateral border and customs matters, project duration, investor protection including matters relating to the purpose, amount and term of the investor's investment and dispute resolution mechanisms. As part of these negotiations, the parties are discussing an advance by the Corporation to the Government of up to US$50 million on a basis to be negotiated, which may involve a prepayment of certain royalties and taxes that would otherwise accrue and become payable to the Government during the production phase of the project, a loan or some other basis. See "Use of Proceeds". There can be no assurance that the negotiations with respect to the stability agreement will be successful nor that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. CONSOLIDATED CAPITALIZATION The following table sets forth the consolidated capitalization of Ivanhoe as of the dates indicated and reflects material changes in Ivanhoe's capitalization since December 31, 2002. The following table should be read in 8 conjunction with Ivanhoe's comparative consolidated financial statements for the years ended December 31, 2002 and December 31, 2001 and the notes that accompany them.
As at As at As at December 31, 2002 October 31, 2003 October 31, 2003 ----------------- ---------------- ---------------- actual actual as adjusted(1) (unaudited) (unaudited) (in U.S.$000's) Loans Payable to Related Parties $ 5,088 $ 5,088 $ 5,088 Long-term Debt (including current portion) 23,414 23,414 Shareholders' Equity - Share Capital Common Shares 522,199 612,233 708,233 Special Warrants 26,516 49,975 49,975 Additional Paid-in Capital 1,508 1,193(2) 1,193 Contributed Surplus (arising from stock- 3,520 3,495(2) 3,495 based compensation) Accumulated Deficit (364,751) (422,332) (422,322) --------- --------- -------- Total Consolidated Capitalization $ 223,380 $ 273,066 369,066 ========= ========= ========
(1) The adjusted figures as at October 31, 2003 give effect to the issue of the units pursuant to an offering of the Corporation in which the Corporation anticipates realizing gross proceeds of U.S. $100,000,000 and net proceeds of U.S.$95,430,000. (2) Represents an estimate. DESCRIPTION OF SHARE CAPITAL The authorized share capital of Ivanhoe consists of an unlimited number of Common Shares without par value and an unlimited number of Preferred Shares. As of the date of this prospectus, there are 249,588,819 Common Shares and no Preferred Shares issued and outstanding. Rights and restrictions in respect of the Common Shares and the Preferred Shares are set out in Ivanhoe's articles of continuance, Ivanhoe's by-laws and in the Yukon Business Corporations Act, and its regulations. The holders of Common Shares are entitled to one vote per Common Share at all meetings of shareholders. The holders of Common Shares may appoint a proxy in accordance with Ivanhoe's by-laws. The holders of Common Shares are entitled to receive dividends as and when declared by the directors, and to receive a pro rata share of the remaining property and assets of the Corporation in the event of liquidation, dissolution or winding up of the Corporation. The Common Shares have no pre-emptive, redemption, purchase or conversion rights. Neither the Yukon Business Corporations Act nor the constating documents of the Corporation impose restrictions on the transfer of Common Shares on the register of the Corporation, provided that the Corporation receives the certificate representing the Common Shares to be transferred together with a duly endorsed instrument of transfer and payment of any fees and taxes which may be prescribed by the Board of Directors from time to time. There are no sinking fund provisions in relation to the Common Shares and they are not liable to further calls or to assessment by the Corporation. The Yukon Business Corporations Act provides that the rights and provisions attached to any class of shares may not be modified, amended or varied unless consented to by special resolution passed by a majority of not less than two-thirds of the votes cast in person or by proxy by holders of shares of that class. 9 The Preferred Shares as a class rank senior to the Common Shares as to the payment of dividends and the distribution of property and assets on the liquidation, dissolution or winding-up of the Corporation. Holders of Preferred Shares are not entitled to any voting rights as a class except as may be provided under the Yukon Business Corporations Act and except that the directors of the Corporation are empowered to attach to any series of voting rights relating to the election of directors on a default in payment of dividends. The Preferred Shares are issuable in one or more series, each consisting of such number of Preferred Shares as may be fixed by the Corporation's directors. The Corporation's directors may from time to time, by resolution passed before the issue of any Preferred Shares of any particular series, alter the constating documents of the Corporation to determine the designation of the Preferred Shares of that series and to fix the number of Preferred Shares therein and alter the constating documents to create, define and attach special rights and restrictions to the shares of that series, including, without limitation, the following: (i) the nature, rate or amount of dividends and the dates, places and currencies of payment thereof; (ii) the consideration for, and the terms and conditions of, any purchase of the Preferred Shares for cancellation or redemption; (iii) conversion or exchange rights; (iv) the terms and conditions of any share purchase plan or sinking fund; (v) voting rights and restrictions; and (vi) restrictions on transfer. Registered holders of both the Preferred Shares and Common Shares are entitled, at their option, to a certificate representing their shares of the Corporation. DESCRIPTION OF PURCHASE WARRANTS The Purchase Warrants are issuable in registered form under a warrant indenture (the "Purchase Warrant Indenture") between the Corporation and CIBC Mellon Trust Company, in its capacity as the warrant trustee. The principal office of CIBC Mellon Trust Company in Vancouver, British Columbia is the location at which the Purchase Warrants may be surrendered for exercise, transfer or exchange. The Purchase Warrants survive until February 15, 2004. Each ten (10) Purchase Warrants entitle the holder to purchase one Common Share at a price of U.S.$8.68 at any time on or prior to the expiry date of the Purchase Warrants, The Common Shares underlying the Purchase Warrants, when issued upon exercise of the Purchase Warrants, will be fully paid and non-assessable. The Corporation is not required to issue fractional Common Shares upon the exercise of Purchase Warrants and a holder of Purchase Warrants may not exercise less than ten Purchase Warrants at any time. A holder of Purchase Warrants will not possess any rights as a shareholder of the Corporation until he or she exercises the Purchase Warrants and acquires Common Shares. Purchase Warrants may be exercised upon surrender of the warrant certificate on or before the expiry date of the Purchase Warrants at the principal office of CIBC Mellon Trust Company in Vancouver, British Columbia, with the exercise form found on the back of the warrant certificate completed and executed as indicated, accompanied by payment of the exercise price (by bank draft or certified cheque payable to the order of "Ivanhoe Mines Ltd.") for the number of Common Shares with respect to which the Purchase Warrants are being exercised. The Purchase Warrant Indenture provides for adjustment in the number of Common Shares issuable upon the exercise of the Purchase Warrants and/or the exercise price per Common Share in the event of: (i) the subdivision or consolidation of the Common Shares or issuance of a stock dividend on the Common Shares or other distribution of Common Shares or securities convertible into Common Shares (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture); (ii) the issuance of rights, options or warrants to purchase Common Shares or securities convertible into Common Shares at less than 95% of the "current market price" (as defined in the Purchase Warrant Indenture) of the Common Shares; and (iii) the distribution to all or substantially all the holders of Common Shares of shares of any other class or of rights, 10 options or warrants (other than those referred to in (ii), above) to acquire Common Shares or securities convertible into Common Shares or property or other assets of the Corporation or of evidences of indebtedness or of assets (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture). The Purchase Warrant Indenture also provides for adjustment in the class and/or number of securities issuable upon the exercise of the Purchase Warrants and/or exercise price per security in the event of: (i) any reclassification of the Common Shares; (ii) an amalgamation, merger or consolidation of the Corporation with another entity; or (iii) the transfer of all or substantially all of the assets of the Corporation. No adjustment in the exercise price or the number of Common Shares purchasable upon the exercise of the Purchase Warrants will be required to be made unless the cumulative effect of such adjustment or adjustments would change the exercise price by at least 1% or the number of Common Shares purchasable upon exercise by at least one one-hundredth of a share. Holders of Purchase Warrants do not have any voting or pre-emptive rights or any other rights which a holder of Common Shares has. The rights of the holders of Purchase Warrants are subject to modification by "extraordinary resolution", which is defined in the Purchase Warrant Indenture as a resolution either passed at a meeting of the holders of Purchase Warrants by holders of not less than 66% of the Purchase Warrants represented at the meeting or adopted by instruments in writing signed by the holders of not less than 66% of all Purchase Warrants then outstanding. Subject to certain exceptions, the Purchase Warrants may not be exercised within the United States or by or on behalf of any U.S. Person (as defined in Regulation S under the U.S. Securities Act) and no certificate evidencing any Common Share issuable upon the exercise of a Purchase Warrant will be delivered to any address in the United States. See "Plan of Distribution". The foregoing discussion of the material terms and provisions of the Purchase Warrants is qualified in its entirety by reference to the detailed provisions of the Purchase Warrant Indenture, a copy of which may be obtained by contacting the Corporation. PRIVATE PLACEMENT AND PLAN OF DISTRIBUTION The Special Warrants were issued pursuant to the Offering at a price of U.S. $8.68 per Special Warrant. The Offering closed on October 31, 2003. The price of the Special Warrants was determined by negotiation between Ivanhoe and the Purchasers. Ivanhoe sold the Special Warrants directly to the Purchasers pursuant to registration and prospectus exemptions under applicable securities legislation and paid no fees or commissions in connection with the Offering. No fees or commissions will be payable by Ivanhoe in connection with the issuance of the Common Shares or Purchase Warrants on the exercise of the Special Warrants. The expenses of the Offering, including the cost of preparation of this prospectus, will be borne by Ivanhoe. The Special Warrants may be exchanged or exercised at any time after their issuance, subject to the terms and conditions of the special warrant indenture dated October 31, 2003 (the "Special Warrant Indenture") between Ivanhoe and CIBC Mellon Trust Company. According to the Special Warrant Indenture, subject to adjustment, each Special Warrant entitles the holder thereof to acquire one Common Share and one Purchase Warrant, at no additional cost, at any time until the Expiry Time. Any Special Warrants not exercised prior to the Expiry Time will be deemed to have been exercised immediately prior to the Expiry Time without any further action on the part of the holder. Each Purchaser has represented and warranted in its Subscription Agreement that it is acquiring the Special Warrants and the underlying Common Shares to be held for investment only and not with a view to immediate resale or distribution. Ivanhoe has no reason to believe that any of the Purchasers has any different investment intent in respect of the Special Warrants and the underlying Common Shares than that represented in the Subscription Agreements. This prospectus is being filed in British Columbia and Ontario to qualify the distribution of the Common Shares and Purchase Warrants to be issued upon the exercise of the Special Warrants. Common Shares and Purchase 11 Warrants issued to holders of the Special Warrants prior to issuance of a receipt for the (final) prospectus may be subject to resale restrictions under applicable securities legislation. The TSX has conditionally approved for listing the Common Shares issuable upon the exercise of the Special Warrants and the Common Shares issuable upon the exercise, if any, of the Purchase Warrants. The Special Warrants, the Common Shares issuable upon exercise of the Special Warrants the Purchase Warrants and the Common Shares issuable upon the exercise, if any, of the purchase Warrants have not been registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within in the United States or to U.S. Persons (as defined in Regulation S under the U.S. Securities Act) except in transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. Ivanhoe has no plans to register any such securities under the U.S. Securities Act. USE OF PROCEEDS On December 5, 2003, Ivanhoe filed a short form prospectus in respect of the sale of units consisting of one Common Share and one Common Share purchase warrant (the "Unit Offering"). See "Other Material Facts". The aggregate net proceeds of the Unit Offering are anticipated to be approximately U.S.$95,430,000. The aggregate net proceeds received by Ivanhoe from the sale of the Special Warrants pursuant to this Offering, after deducting expenses of the Offering, including preparation of this short form prospectus estimated to be U.S.$65,000, will be approximately U.S.$49,930,000. Ivanhoe intends to allocate the combined net proceeds of this Offering and the Unit Offering as follows:
USE OF PROCEEDS AMOUNT --------------- ------ payment of the purchase price for the BHP Royalty(1) U.S.$ 37,000,000 exploration and development expenditures on the Oyu Tolgoi Project and elsewhere in Mongolia(2) U.S.$ 50,000,000 general and administrative expenditures(2) U.S.$ 8,360,000 working capital(3) U.S.$ 50,000,000 ---------------- Total U.S.$145,360,000 ================
Notes: (1) U.S. $17 million was paid to BHP Exploration in November 2003. (2) The Corporation anticipates incurring these expenditures through the third quarter of 2004, subject to finalization of project expenditure budgets for the entire 2004 fiscal year and to the results and recommendations of a scoping study on the Oyu Tolgoi Project which is expected to be completed in early 2004. Ivanhoe plans to use existing financial resources to cover expenditures on projects outside Mongolia. (3) As part of the Corporation's ongoing negotiations with the Government of Mongolia respecting a stability agreement for the Oyu Tolgoi Project, the Corporation and the Government are also discussing an advance by the Corporation to the Government of up to US$50 million on a basis to be negotiated, which may involve a prepayment of certain royalties and taxes that would otherwise become payable to the Government during the production phase of the project, a loan or some other basis. See "Summary Description of the Business - Summary of Oyu Tolgoi Project". If and when an agreement respecting such an advance is reached, the Corporation may use up to U.S.$50 million from the proceeds of the Offering, currently allocated as working capital, to the Government to fund the advance. There can be no assurance that the negotiations with respect to the 12 stability agreement will be successful nor that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. OTHER MATERIAL FACTS On December 5, 2003, Ivanhoe filed with the securities commissions in each of the provinces of Canada, except Quebec, a short form prospectus relating to the issuance of U.S.$100,000,000 of units, each unit consisting of one Common Share and one-half of one Common Share purchase warrant. Each full purchase warrant will entitle the holder to purchase one Common Share for a term of two years following the closing of that offering. RISK FACTORS Investment in securities of Ivanhoe involves a significant degree of risk and should be considered speculative due to the nature of Ivanhoe's business and the present stage of its development. Investors should give careful consideration to the risk factors described in "Item 4. Narrative Description of Business - Risk Factors" on pages 54 through 63 of Ivanhoe's AIF, which is incorporated by reference in this short form prospectus. These risk factors include : - Ivanhoe's business in Mongolia may be harmed if the country fails to complete its transition from state socialism and a planned economy to political democracy and a free market economy; - future amendments to Mongolian laws could weaken, shorten or curtail Ivanhoe's mineral exploration rights or make it more difficult or expensive to obtain mining rights and carry out mining; - the mineral resources identified on the Oyu Tolgoi Project do not have demonstrated economic viability and the feasibility of mining has not been established; - lack of infrastructure in proximity to the Oyu Tolgoi Project could adversely affect mining feasibility; - Ivanhoe's exploration licenses could expire before Ivanhoe is ready or able to obtain a mining license; - economic sanctions imposed by the United States and Canada against Myanmar may adversely affect the Monywa Copper Project; - Ivanhoe faces geotechnical and development risks at the Monywa Copper Project; - there can be no assurance that Ivanhoe will be capable of raising the additional funding that it needs to carry out its development and exploration objectives; - Ivanhoe has a limited customer base for its products and needs to secure additional markets; - the Savage River Project is dependent on older process facilities and pipeline operations which may be prone to failure or breakdown; - there is a risk of long term decline in pellet grade at the Savage River Project; - the pit wall of the Savage River pit requires additional work to ensure its stability; 13 - there can be no assurance that the interest held by Ivanhoe in its exploration, development and mining properties is free from defects or that material contractual arrangements between Ivanhoe and entities owned or controlled by foreign governments will not be unilaterally altered or revoked; - competition for new mining properties by larger, more established companies may prevent Ivanhoe from acquiring interests in additional properties or mining operations; - Ivanhoe has a limited operating history, and there is no assurance that it will be capable of consistently producing positive cash flows; - a substantial portion of Ivanhoe's operations involve exploration and development and there is no guarantee that any such activity will result in commercial production of mineral deposits; - mining operations are subject to numerous hazards that could have a material adverse effect on the financial position of Ivanhoe; - calculation of reserves and metal recovery is only an estimate, and there can be no assurance about the quantity and grade of minerals until reserves or resources are actually mined; - fluctuations in currency exchange rates may adversely affect ABM's financial position and results of operations; - the indebtedness on the Monywa Copper Project is subject to floating interest rates; - the Monywa Copper Project is not in full compliance with certain covenants under its principal project financing agreement; - metal prices are volatile; - Ivanhoe is exposed to risks of changing political stability and government regulation in the countries in which it operates; - Ivanhoe is subject to substantial environmental and other regulatory requirements and such regulations are becoming more stringent. Non-compliance with such regulations, either through current or future operations or a pre-existing condition could materially adversely affect Ivanhoe; - previous mining operations may have caused environmental damage at Ivanhoe mining sites, and its indemnities and exemptions from liability may not be effective; - Ivanhoe's prospects depend on its ability to attract and retain key personnel, and; certain directors of Ivanhoe are directors or officers of, or have significant shareholdings, in other mineral resource companies and there is the potential that such directors will encounter conflicts of interest with Ivanhoe. AUDITORS, TRANSFER AGENT AND REGISTRAR The auditors of Ivanhoe are Deloitte & Touche LLP, Chartered Accountants, Vancouver, British Columbia. The registrar and transfer agent for the Common Shares in Canada is CIBC Mellon Trust Company at its principal offices in Vancouver. LEGAL MATTERS Certain Canadian legal matters in connection with this Offering will be passed upon by Goodmans on behalf of Ivanhoe. As at the date hereof, the partners and associates of Goodmans, as a group, beneficially own directly or indirectly less than one percent of the outstanding Common Shares. 14 PURCHASERS' STATUTORY RIGHTS Securities legislation in British Columbia and Ontario provides purchasers with the right to withdraw from an agreement to purchase securities offered hereby. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment thereto. The securities legislation further provides a purchaser with remedies for rescission or, in some cases, damages if the prospectus and any amendment contains a misrepresentation or is not delivered to the purchaser, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the Purchaser's province of residence. Purchasers should refer to any applicable provisions of the securities legislation of the Purchaser's province of residence for the particulars of these rights or consult with a legal adviser. CONTRACTUAL RIGHTS OF ACTION FOR RESCISSION In the event that a holder of a Special Warrant who acquires a Common Share upon the exercise of the Special Warrant as provided for in this prospectus, is or becomes entitled under applicable legislation to the remedy of rescission by reason of this prospectus or any amendment thereto containing a misrepresentation, the holder will be entitled to rescission not only of the holder's exercise of their Special Warrant but also of the private placement transaction pursuant to which the Special Warrant was initially acquired and shall be entitled, in connection with such rescission, to a full refund of all consideration paid on the acquisition of the Special Warrant. In the event the holder is a permitted assignee of the interest of the original Special Warrant subscriber, that permitted assignee shall be entitled to exercise the rights of rescission and refund granted hereunder as if the permitted assignee was the original subscriber. The foregoing is in addition to any other right or remedy available to a holder of a Special Warrant under section 131 of the Securities Act (British Columbia), or otherwise at law. 12 CERTIFICATE OF IVANHOE MINES LTD. Dated: December 5, 2003 This short form prospectus, together with the documents incorporated herein by reference, constitutes full, true and plain disclosure of all material facts relating to the securities being offered by this short form prospectus as required by the securities laws of the province of British Columbia and Ontario. "Robert M, Friedland" "Pierre Masse" Chief Executive Officer Chief Financial Officer On behalf of the Board of Directors "R. Edward Flood" "David Huberman" Director Director [BCSC LOGO] P. O. Box 10142, Pacific Centre BRITISH COLUMBIA 701 West Georgia Street SECURITIES COMMISSION Vancouver, British Columbia V7Y 1L2 CANADA SEDAR Electronic Correspondence Telephone: (604) 899-6500 Fax: (604)899-6506 (BC only) 1-800-373-6393 IN THE MATTER OF NATIONAL POLICY 43-201 MUTUAL RELIANCE REVIEW SYSTEM FOR PROSPECTUSES AND ANNUAL INFORMATION FORMS AND IN THE MATTER OF IVANHOE MINES LTD. DECISION DOCUMENT This preliminary mutual reliance review system decision document evidences that preliminary receipts of the regulators in each of BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, NEW BRUNSWICK, NOVA SCOTIA, PRINCE EDWARD ISLAND AND NEWFOUNDLAND AND LABRADOR have been issued for a preliminary SHORT FORM PROSPECTUS of the above issuer dated December 5, 2003 DATED at Vancouver, British Columbia on December 5, 2003. Larry Wilkins ------------------------------- Larry Wilkins, C.A. Manager Corporate Finance Branch NOTE: The issuance of this decision document is not to be construed as meaning that the adequacy of the preliminary materials has been established. The materials are being reviewed and initial comments will be furnished to you as soon as possible. SEDAR Project No.: 597256 [NOVASCOTIA LOGO] SECURITIES 2nd Floor, Bus: 902-424-7768 Joseph Howe Building Fax: 902-424-4625 COMMISSION 1690 Hollis Street Website: www.gov.ns.ca/nssc P.O. Box 458 Halifax, Nova Scotia B3J 2P8 IN THE MATTER OF THE SECURITIES ACT R.S.N.S. 1989, CHAPTER 418, AS AMENDED AND IN THE MATTER OF IVANHOE MINES LTD. Receipt for a Preliminary Short Form Prospectus dated DECEMBER 5, 2003 relating to the securities of the above Issuer is hereby issued pursuant to section 60 of the Act. DATED at Halifax, this 5th day of DECEMBER, 2003. "Donna M, Gouthro" ----------------------------------- j.wiliiam SLattery, C.A. Deputy Director, Corporate Finance per Donna M. Gouthro, Corporate Finance Officer (Analyst) NOTE: The issuance of this receipt is not construed as meaning that the adequacy of the Preliminary Short Form Prospectus and supporting material has been established. These are being reviewed by the Commission staff and initial comments will be furnished to you by letter as soon as practicable. Project #597256 A copy of this preliminary short form prospectus has been filed with the securities regulatory authorities in each of the provinces of Canada, except Quebec but has not yet become final for the purpose of the sale of securities. Information contained in this preliminary short form prospectus may not be complete and may have to be amended. The securities may not be sold until a receipt for the short form prospectus is obtained from the securities regulatory authorities. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. The securities offered hereby have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the " U.S. Securities Act") or any state securities laws. Accordingly, such securities may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This short form prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby within the United States. See "Plan of Distribution". INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH SECURITIES REGULATORY AUTHORITIES IN CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe Mines Ltd. at Suite 654 - 999 Canada Place, Vancouver, British Columbia V6C 3E1 (telephone (604) 688-5755). Preliminary SHORT Form Prospectus New Issue December 5, 2003 IVANHOE MINES LTD. U.S.$100,000,000 (Cdn.$---) UNITS CONSISTING OF------COMMON SHARES AND -------PURCHASE WARRANTS This short form prospectus qualifies for distribution (the "Offering")---- units ("Units") of Ivanhoe Mines Ltd. ("Ivanhoe" or the "Corporation") at a price of Cdn.$--- (U,S.$---) per Unit. Each Unit consists of one common share in the capital of the Corporation ("Common Shares") and one-half of one Common Share purchase warrant ("Purchase Warrant"). Each full Purchase Warrant will entitle the holder to purchase one Common Share at a price of Cdn.$--- at any time until the date that is one year following the closing of the Offering and at a price of Cdn.$ --- at any time thereafter until the date that is two years following the closing of the Offering. See "Description of Purchase Warrants", The Common Shares and Purchase Warrants comprising the Units will separate immediately on the closing of the Offering. PRICE: CDN.$---- (U.S.$----) PER UNIT The offering price of the Units was determined by negotiation between Ivanhoe and HSBC Securities (Canada) Inc., Griffiths McBurney & Partners and CIBC World Markets Inc. (collectively, the "Underwriters").
Net Proceeds to Price to the Public Underwriters' Fee(2) the Corporation (1) ------------------- -------------------- ------------------- Per Unit (Cdn.$).......... $ - $ - $ - Total(Cdn.$).............. $ - $ - $ -
Note: (1) Before deducting expenses of this Offering, estimated to be approximately Cdn.$750,000 which will be paid from the net proceeds of the Offering. 2 (2) Ivanhoe granted to the Underwriters an option (the "Underwriters' Option") to purchase Units equal to 15% of the Units sold pursuant to the Offering at a price per Unit equal to the offering price hereunder (the "Offering Price") to cover over-allotments, if any. The Underwriters' Option will be exercisable for a period of 30 days following the closing date of the Offering. Taking into account the exercise of the Underwriters' Option, the total Price to the Public, Underwriters' Fee and Net Proceeds to the Corporation will be Cdn, $---, Cdn.$--- and Cdn.$---- respectively. This prospectus qualifies the distribution of the Underwriters' Option, and the additional Units (Common Shares and Purchase Warrants) issuable upon the exercise of the Underwriters' Option. See "Plan of Distribution". (3) On December 5, 2003, Ivanhoe filed with the securities commissions in each of British Columbia and Ontario a short form prospectus relating to the issuance of 5,760,000 units, each unit consisting of one Common Share and one Common Share purchase warrant, issuable upon the exercise or deemed exercise of 5,760,000 previously issued special warrants sold pursuant to (a) private placement of Special Warrants completed October 31, 2003. The aggregate net proceeds of the special warrant private placement were approximately U.S. $49,930,000 (approximately Cdn. $65,518,000). Each ten of those Common Share purchase warrants entitle the holder to purchase one Common Share at a price of U.S.$8.68 at any time on or before February 15. 2004. The Underwriters, as principals, conditionally offer the Units, subject to prior sale, if, as and when issued by Ivanhoe and accepted by the Underwriters in accordance with the conditions contained in the Underwriting Agreement referred to under "Plan of Distribution" and subject to the approval of certain legal matters on behalf of Ivanhoe by Goodmans, Vancouver and on behalf of the Underwriters by Fasken Martineau DuMoulin LLP. Subscriptions for the Units will be received subject to rejection or allotment in whole or in part and the right is reserved to close the subscription books at any time without notice. Certificates representing the Common Shares and Purchase Warrants will be available for delivery at the closing of this Offering, which is expected to occur on or about December 19, 2003 (the "Closing Date") but in any event no later than ----. In accordance with applicable laws and policies, the Underwriters may effect transactions that stabilize or maintain the market price of the Common Shares. See "Plan of Distribution". The Units will qualify as investments under certain statutes as described herein under the "Eligibility for Investment". The Common Shares are traded on The Toronto Stock Exchange (the "TSX") and the Australian Stock Exchange under the symbol "IVN" and are quoted on the NASDAQ National Market ("Nasdaq") under the symbol "HUGO". The price of the Common Shares at the close of business on December 4, 2003 was Cdn.$l1.12 on the TSX and U.S.$8.46 on the Nasdaq. The Corporation has applied to list the Common Shares and the Purchase Warrants to be distributed pursuant to the Offering, including the Common Shares issuable upon exercise of the Purchase Warrants, on the TSX. Listing of such Common Shares and Purchase Warrants will be subject to the Corporation fulfilling all the listing requirements of the TSX. 3 TABLE OF CONTENTS
PAGE ELIGIBILITY FOR INVESTMENT.............................................. 3 FORWARD LOOKING STATEMENTS.............................................. 4 CURRENCY AND EXCHANGE RATES............................................. 4 NAME AND INCORPORATION.................................................. 6 SUMMARY DESCRIPTION OF THE BUSINESS..................................... 8 CONSOLIDATED CAPITALIZATION............................................. 9 DESCRIPTION OF SHARE CAPITAL............................................ 9 DESCRIPTION OF PURCHASE WARRANTS........................................ 10 PLAN OF DISTRIBUTION.................................................... 11 USE OF PROCEEDS......................................................... 13 OTHER MATERIAL FACTS.................................................... 14 RISK FACTORS............................................................ 14 AUDITORS, TRANSFER AGENT AND REGISTRAR.................................. 16 LEGAL MATTERS........................................................... 16 PURCHASERS' STATUTORY RIGHTS,........................................... 16 CERTIFICATE OF IVANHOE MINES LTD........................................ 17 CERTIFICATE OF THE UNDERWRITERS......................................... 18
ELIGIBILITY FOR INVESTMENT In accordance with legislation in effect at the date of this prospectus and subject to compliance with the prudent investment standards and general investment provisions and restrictions contained in the statutes referred to below (and, where applicable, the regulations made under those statutes) and, in certain cases, subject to the satisfaction of additional requirements relating to investment policies, standards, procedures or goals and in certain cases, subject to the filing of such policies, standards, procedures or goals with the appropriate regulatory authorities, the Units offered by this prospectus would not, if issued on the date hereof, be precluded as investments under the following statutes: Insurance Companies Act (Canada) Pension Benefits Standards Act, 1985 (Canada) Trust and Loan Companies Act (Canada) Financial Institutions Act (British Columbia) Pension Benefits Standards Act (British Columbia) Insurance Act (Alberta) Heritage Savings Trust Fund Act (Alberta) Loan and Trust Corporations Act (Alberta) Employment Pension Plans Act (Alberta) The Insurance Act (Manitoba) The Trustee Act (Manitoba) 4 The Pension Benefits Standards Act (Manitoba) Pension Benefits Act (Ontario) Loan and Trust Corporations Act (Ontario) In the opinion of Goodmans, counsel to the Corporation, and Fasken Martineau DuMoulin LLP, counsel to the Underwriters, provided the Common Shares offered hereby are listed on a prescribed stock exchange (which currently includes the TSX), based on the law as of the date hereof the Common Shares and the Purchase Warrants constituting the Units would, if issued on the date hereof, be qualified investments under the Income Tax Act (Canada) (the "Tax Act") and the regulations thereunder for trusts governed by registered retirement savings plans, registered retirement income funds, deferred profit sharing plans and registered education savings plans(collectively, "Registered Plans"). In the opinion of such counsel, based in part on a certificate of an officer of the Corporation, the Units would not as of the date hereof be considered foreign property under the Tax Act for trusts governed by Registered Plans. FORWARD LOOKING STATEMENTS Certain statements contained in this short form prospectus and in the documents incorporated by reference herein respecting reserves, resources, plans, objectives and future performance of Ivanhoe's business are forward-looking statements, within the meaning of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, discussions about scoping studies and feasibility studies being performed on the Oyu Tolgoi Project (as defined below) and the use of proceeds of the Offering. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in commodity prices, unanticipated reserve and resource grades, geological, metallurgical, processing, transportation, infrastructure and other problems, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, political risk and related economic risk, actual performance of plant, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risk factors incorporated by reference in this short form prospectus. CURRENCY AND EXCHANGE RATES In this short form prospectus, all references to "U.S.$" are to United States dollars and all references to "Cdn.$" are to Canadian dollars. The Bank of Canada noon buying rates for the purchase of one United States dollar using Canadian dollars were as follows during the indicated periods: (Stated in Canadian dollars)
NINE MONTHS ENDED SEPTEMBER 30, 2003 YEAR ENDED DECEMBER 31 --------------- ------------------------------ 2002 2001 2000 End of period 1.3504 1.5796 1.5928 1.4995 High for the period 1.5747 1.6184 1.6052 1.5601 Low for the period 1.3342 1.5155 1.4901 1.4349 Average for the period 1.4295 1.5703 1.5484 1.4859
5 The Bank of Canada noon buying rate on December 4, 2003 for the purchase of one United States dollar using Canadian dollars was Cdn.$1.3122 (one Canadian dollar on that date equalled U.S.$0.7621). DOCUMENTS INCORPORATED BY REFERENCE The following documents of Ivanhoe, filed with the various securities commissions or similar authorities in all of the provinces of Canada, are specifically incorporated by reference into, and form an integral part of, this short form prospectus: 1. Renewal Annual Information Form dated May 20, 2003 (the "AIF"). 2. Comparative consolidated financial statements of Ivanhoe for the years ended December 31, 2002 and 2001, together with the notes thereto and the auditors' report thereon and including the management's discussion and analysis of financial condition and results of operations ("MD&A") for such periods. 3. Comparative unaudited consolidated interim financial statements for the three and nine month periods ended September 30, 2003 and 2002, together with MD&A for such periods. 4. Management Information Circular dated April 15, 2003 prepared in connection with Ivanhoe's annual meeting of shareholders held on June 12, 2003 (excluding the report on executive compensation, the performance graph and the statement of corporate governance practices). 5. Material Change Report dated February 26, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi gold and copper mineral project (the "Oyu Tolgoi Project") in Mongolia. 6. Material Change Report dated August 7, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project, as amended by an Amended and Restated Material Change Report dated August 18, 2003. 7. Material Change Report dated November 6, 2003 regarding the acquisition by Ivanhoe from BHP Minerals International Exploration Inc. ("BHP Exploration") of a 2% net smelter returns royalty over production from the Oyu Tolgoi Project. 8. Material Change Report dated November 20, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project. Any documents of the type referred to in the preceding paragraph, interim financial statements and any material change reports (excluding confidential reports) filed by Ivanhoe with the securities commission or similar authority in each of the provinces of Canada subsequent to the date of this short form prospectus and prior to the termination of the Offering shall be deemed to be incorporated by reference in this short form prospectus. ANY STATEMENT CONTAINED IN A DOCUMENT INCORPORATED OR DEEMED TO BE INCORPORATED BY REFERENCE HEREIN SHALL BE DEEMED TO BE MODIFIED OR SUPERSEDED FOR PURPOSES OF THIS SHORT FORM PROSPECTUS, TO THE EXTENT THAT A STATEMENT CONTAINED HEREIN OR IN ANY SUBSEQUENTLY FILED DOCUMENT THAT ALSO IS OR IS DEEMED TO BE INCORPORATED BY REFERENCE HEREIN MODIFIES OR REPLACES SUCH STATEMENT. THE MODIFYING OR SUPERSEDING STATEMENT NEED NOT STATE THAT IT HAS MODIFIED OR SUPERSEDED A PRIOR STATEMENT OR INCLUDE ANY OTHER INFORMATION SET FORTH IN THE DOCUMENT THAT IT MODIFIES OR SUPERSEDES. THE MAKING OF A MODIFYING OR SUPERSEDING STATEMENT SHALL NOT BE DEEMED AN ADMISSION FOR ANY PURPOSES THAT THE MODIFIED OR 6 SUPERSEDED STATEMENT WHEN MADE, CONSTITUTED A MISREPRESENTATION, AN UNTRUE STATEMENT OF A MATERIAL FACT OR AN OMISSION TO STATE A MATERIAL FACT THAT IS REQUIRED TO BE STATED OR THAT IS NECESSARY TO MAKE A STATEMENT NOT MISLEADING IN LIGHT OF THE CIRCUMSTANCES IN WHICH IT WAS MADE. ANY STATEMENT SO MODIFIED OR SUPERSEDED SHALL NOT BE DEEMED IN ITS UNMODIFIED OR SUPERSEDED FORM TO CONSTITUTE A PART OF THIS SHORT FORM PROSPECTUS. INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH THE SECURITIES COMMISSION OF EACH OF THE PROVINCES OF CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe, Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1 (telephone (604) 688-5755). NAME AND INCORPORATION Ivanhoe was incorporated under the Company Act (British Columbia) on January 25, 1994 under the name 463212 B.C. Ltd. In February 1994, Ivanhoe changed its name to Indochina Goldfields Ltd. In March 1994, Ivanhoe increased its authorized capital from 10,000 common shares without par value to 100,000,000 common shares without par value and created 100,000,000 preferred shares without par value. In February 1995, Ivanhoe was continued under the Business Corporations Act (Yukon). In July 1997, Ivanhoe increased its authorized capital to an unlimited number of common shares without par value and an unlimited number of preferred shares without par value ("Preferred Shares"). In June 1999, Ivanhoe changed its name to Ivanhoe Mines Ltd. Ivanhoe's North American headquarters are located at Suite 654,999 Canada Place, Vancouver, B.C. V6C 3E1. Ivanhoe's Asian headquarters are located at 37th Floor #2, Millenia Tower, 1 Temasek Avenue, Singapore 039192. The Corporation's registered office is located at Suite 300, 204 Black Street, Whitehorse, Yukon, Canada, YlA 2M9. Subsidiaries The corporate structure of Ivanhoe, its material subsidiaries, the percentage ownership in subsidiaries which are not wholly-owned by Ivanhoe and the jurisdiction of incorporation of such corporations as at the date of this short form prospectus are set out in the following chart. 7 [FLOWCHART] Note: All subsidiaries are wholly-owned unless otherwise indicated. "BVI" means British Virgin Islands. 8 SUMMARY DESCRIPTION OF THE BUSINESS Ivanhoe is an international mineral exploration and development company. Ivanhoe holds interests in and conducts operations on mineral resource properties in Mongolia, Myanmar, Australia, China and Kazakhstan, and holds interests through investments in mineral resource properties in Mongolia, China, South Korea and Vietnam. The Corporation has identified the Oyu Tolgoi Project, the Monywa copper project in Myanmar (the "Monywa Copper Project") and the Savage River iron ore mine in Tasmania, Australia (the "Savage River Project") as the mineral resource properties material to Ivanhoe. Ivanhoe's interests in Kazakhstan, Mongolia (other than the Oyu Tolgoi Project), China, Myanmar (other than the Monywa Copper Project), South Korea and Vietnam are not considered material. A brief description of the Oyu Tolgoi Project is set forth below. For a more detailed description of all of the Corporation's properties see "Item 3. General Development of the Business" and "Item 4. Narrative Description of Business" on pages 9 through 52 of Ivanhoe's AIF and the financial statements, MD&A and material change reports incorporated by reference in this short form prospectus. SUMMARY OF OYU TOLGOI PROJECT The Oyu Tolgoi Project is a copper and gold mineral exploration project located in the South Gobi region of Mongolia. Ivanhoe acquired its interest in the Oyu Tolgoi Project in 2001 from BHP Exploration pursuant to a May 2000 earn-in agreement. BHP Exploration retained a 2% net smelter returns royalty (the "BHP Royalty"). In November 2003, the Corporation agreed to purchase the BHP Royalty for U.S.$37,000,000. Ivanhoe has identified four occurrences of copper and gold mineralization on the Oyu Tolgoi property, the Southwest Oyu, Central Oyu, South Oyu and Hugo Dummet deposits. The Corporation has completed a series of substantial drilling programs to define the nature and extent of the mineralization in these deposits and has, to date, identified quantities of inferred mineral resources at all four deposits and indicated mineral resources at the Southwest Oyu deposit. The Corporation continues to drill the property in order to better define the nature and extent of the mineralization to date on the property, particularly at the Hugo Dummet deposit, and to upgrade the previously identified inferred resources to the measured and indicated categories. The Corporation is also carrying out a scoping study on the project, which is expected to be completed in January 2004 and investigating opportunities to establish new infrastructure or improve existing infrastructure necessary to support potential mine development and production. The Corporation is in the process of negotiating a broadly-based, legally authorized global stability or concession agreement with the Government of Mongolia, the purpose of which is to maintain and/or enhance, for the Corporation's benefit, the Mongolian tax, fiscal and commercial environment over the life of the Oyu Tolgoi Project. The agreement is expected to address a range of matters including the following: project tax rates, confirmation of appropriate mining, land, license and infrastructure tenure necessary to carry out all exploration, mining, milling, processing, including smelting and refining, metallurgy and related activities over the life of the project, water resources and long term water rights, energy and transportation matters and approvals, labour and staffing requirements, mineral royalties, environmental protection requirements, assurances in connection with the Corporation's long term right to sell and export products from the project at international market prices, the right and entitlement to receive and dispose of hard currency income derived from such sale or export, reduction of, or exemption from, import and export duties, favourable bilateral border and customs matters, project duration, investor protection including matters relating to the purpose, amount and term of the investor's investment and dispute resolution mechanisms. As part of these negotiations, the parties are discussing an advance by the Corporation to the Government of up to US$50 million on a basis to be negotiated, which may involve a prepayment of certain royalties and taxes that would otherwise accrue and become payable to the Government during the production phase of the project, a loan or some other basis. See "Use of Proceeds". There can be no assurance that the negotiations with respect to the stability agreement will be successful nor that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. 9 CONSOLIDATED CAPITALIZATION The following table sets forth the consolidated capitalization of Ivanhoe as of the dates indicated and reflects material changes in Ivanhoe's capitalization since December 31, 2002. The following table should be read in conjunction with Ivanhoe's comparative consolidated financial statements for the years ended December 31, 2002 and December 31, 2001 and the notes that accompany them.
As at As at As at December 31,2002 October 31, 2003 October 31, 2003 actual actual as adjusted(1) (unaudited) (unaudited) (in U.S.$000's) Loans Payable to Related Parties $ 5,088 $ 5,088 $ 5,088 Long-term Debt (including current portion) 23,414 23,414 Shareholders' Equity - Share Capital Common Shares 522,199 612,233 708,233 Special Warrants 26,516 49,975 49,975 Additional Paid-in Capital 1,508 1,193(2) 1,193 Contributed Surplus (arising from stock- 3,520 3,495(2) 3,495 based compensation) Accumulated Deficit (364,751) (422,332) (422,322) --------- --------- --------- Total Consolidated Capitalization $ 223,380 $ 273,066 $ 369,066 ========= ========= =========
(1) The adjusted figures as at October 31, 2003 give effect to the issue of the - Units for gross proceeds of U.S.$100,000,000 (Cdn.$-) and reflect estimated expenses of the Offering amounting to approximately Cdn.$750,000 (approximately U.S.$570,000). No amount of the gross proceeds has been allocated to the Purchase Warrants. (2) Represents an estimate. DESCRIPTION OF SHARE CAPITAL The authorized share capital of Ivanhoe consists of an unlimited number of Common Shares without par value and an unlimited number of preferred shares without par value ("Preferred Shares"). As of the date of this short form prospectus, there are 249,588,819 Common Shares and no Preferred Shares issued and outstanding. Rights and restrictions in respect of the Common Shares and the Preferred Shares are set out in Ivanhoe's articles of continuance, Ivanhoe's by-laws and in the Yukon Business Corporations Act, and its regulations. The holders of Common Shares are entitled to one vote per Common Share at all meetings of shareholders. The holders of Common Shares may appoint a proxy in accordance with Ivanhoe's by-laws. The holders of Common Shares are entitled to receive dividends as and when declared by the directors, and to receive a pro rata share of the remaining property and assets of the Corporation in the event of liquidation, dissolution or winding up of the Corporation. The Common Shares have no pre-emptive, redemption, purchase or conversion rights. Neither the Yukon Business Corporations Act nor the constating documents of the Corporation impose restrictions on the transfer of Common Shares on the register of the Corporation, provided that the Corporation receives the certificate representing the Common Shares to be transferred together with a duly endorsed instrument of transfer and payment of any fees and taxes which may be prescribed by the Board of Directors 10 from time to time. There are no sinking fund provisions in relation to the Common Shares and they are not liable to further calls or to assessment by the Corporation. The Yukon Business Corporations Act provides that the rights and provisions attached to any class of shares may not be modified, amended or varied unless consented to by special resolution passed by a majority of not less than two-thirds of the votes cast in person or by proxy by holders of shares of that class. The Preferred Shares as a class rank senior to the Common Shares as to the payment of dividends and the distribution of property and assets on the liquidation, dissolution or winding-up of the Corporation. Holders of Preferred Shares are not entitled to any voting rights as a class except as may be provided under the Yukon Business Corporations Act and except that the directors of the Corporation are empowered to attach to any series of voting rights relating to the election of directors on a default in payment of dividends. The Preferred Shares are issuable in one or more series, each consisting of such number of Preferred Shares as may be fixed by the Corporation's directors. The Corporation's directors may from time to time, by resolution passed before the issue of any Preferred Shares of any particular series, alter the constating documents of the Corporation to determine the designation of the Preferred Shares of that series and to fix the number of Preferred Shares therein and alter the constating documents to create, define and attach special rights and restrictions to the shares of that series, including, without limitation, the following: (i) the nature, rate or amount of dividends and the dates, places and currencies of payment thereof; (ii) the consideration for, and the terms and conditions of, any purchase of the Preferred Shares for cancellation or redemption; (iii) conversion or exchange rights; (iv) the terms and conditions of any share purchase plan or sinking fund; (v) voting rights and restrictions; and (vi) restrictions on transfer. Registered holders of both the Preferred Shares and Common Shares are entitled, at their option, to a certificate representing their shares of the Corporation. DESCRIPTION OF PURCHASE WARRANTS The Purchase Warrants will be issued in registered form under a warrant indenture (the "Purchase Warrant Indenture") between the Corporation and CIBC Mellon Trust Company, in its capacity as the warrant trustee. The principal office of CIBC Mellon Trust Company in Vancouver, British Columbia and Toronto, Ontario will be the location at which the Purchase Warrants may be surrendered for exercise, transfer or exchange. The Purchase Warrants will survive for a term of two years following the closing of the Offering. Each Unit issued hereunder will include one half of one Purchase Warrants. Each full Purchase Warrant will entitle the holder to purchase one Common Share at a price of Cdn.$- at any time until the date that is one year following the closing of the Offering and at a price of Cdn.$- at any time thereafter until the date that is two years following the closing of the Offering. The Common Shares underlying the Purchase Warrants, when issued upon exercise of the Purchase Warrants, will be fully paid and non-assessable. The Corporation is not required to issue fractional Common Shares upon the exercise of Purchase Warrants and a holder of Purchase Warrants may not exercise less than one full Purchase Warrant at any time. A holder of Purchase Warrants will not possess any rights as a shareholder of the Corporation until he or she exercises the Purchase Warrants and acquires Common Shares. Purchase Warrants may be exercised upon surrender of the warrant certificate on or before the expiry date of the Purchase Warrants at the principal office of CIBC Mellon Trust Company in Vancouver, British Columbia and Toronto, Ontario, with the exercise form found on the back of the warrant certificate completed and executed as indicated, accompanied by payment of the exercise price (by money order, wire transfer, bank draft or certified cheque payable to the order of "Ivanhoe Mines Ltd.") for the number of Common Shares with respect to which the Purchase Warrants are being exercised. 11 The Purchase Warrant Indenture will provide for adjustment in the number of Common Shares issuable upon the exercise of the Purchase Warrants and/or the exercise price per Common Share in the event of: (i) the subdivision or consolidation of the Common Shares or issuance of a stock dividend on the Common Shares or other distribution of Common Shares or securities convertible into Common Shares (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture); (ii) the issuance of rights, options or warrants to purchase Common Shares or securities convertible into Common Shares at less than 95% of the "current market price" (as defined in the Purchase Warrant Indenture) of the Common Shares; and (iii) the distribution to all or substantially all the holders of Common Shares of shares of any other class or of rights, options or warrants (other than those referred to in (ii), above) to acquire Common Shares or securities convertible into Common Shares or property or other assets of the Corporation or of evidences of indebtedness or of assets (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture). The Purchase Warrant Indenture will also provide for adjustment in the class and/or number of securities issuable upon the exercise of the Purchase Warrants and/or exercise price per security in the event of: (i) any reclassification of the Common Shares; (ii) an amalgamation, merger or consolidation of the Corporation with another entity; or (iii) the transfer of all or substantially all of the assets of the Corporation. No adjustment in the exercise price or the number of Common Shares purchasable upon the exercise of the Purchase Warrants will be required to be made unless the cumulative effect of such adjustment or adjustments would change the exercise price by at least 1% or the number of Common Shares purchasable upon exercise by at least one one-hundredth of a share. Holders of Purchase Warrants will not have any voting or pre-emptive rights or any other rights which a holder of Common Shares would have. The rights of the holders of Purchase Warrants will be subject to modification by "extraordinary resolution", which will be defined in the Purchase Warrant Indenture as a resolution either passed at a meeting of the holders of Purchase Warrants by holders of not less than 66% of the Purchase Warrants represented at the meeting or adopted by instruments in writing signed by the holders of not less than 66% of all Purchase Warrants then outstanding. Subject to certain exceptions, the Purchase Warrants may not be exercised within the United States or by or on behalf of any U.S. Person (as defined in Regulation S under the U.S. Securities Act) and no certificate evidencing any Common Share issuable upon the exercise of a Purchase Warrant will be delivered to any address in the United States. See "Plan of Distribution". The foregoing discussion of the material terms and provisions of the Purchase Warrants is qualified in its entirety by reference to the detailed provisions of the Purchase Warrant Indenture, a copy of which may be obtained by contacting the Corporation. PLAN OF DISTRIBUTION Pursuant to an underwriting agreement (the "Underwriting Agreement") dated as of December -, 2003 between the Corporation and the Underwriters, as underwriters, the Corporation has agreed to sell and the Underwriters have agreed to purchase on or about December 19, 2003 or in any event not later than -, - Units at a price of Cdn.$- (U.S.$-) per Unit payable in cash against delivery of certificates representing the Common Shares and Purchase Warrants. Each Unit consists of one Common Share and one half of one Purchase Warrant. The total consideration of the Offering will be U.S.$100,000,000. The Corporation also granted to the Underwriters an option (the "Underwriter's Option") to purchase up to 15% of the Units issuable hereunder at the Offering Price, exercisable at any time prior to 30 days following the closing date of the Offering to cover over-allotments, if any. This short form prospectus qualifies the distribution of the Underwriters' Option and the additional Units (Common Shares and Purchase Warrants) issuable upon the exercise of the Underwriter's Option. The Offering Price was determined by negotiation between Ivanhoe and the Underwriters. The Underwriting Agreement states that the Corporation will pay to the Underwriters a fee equal to Cdn.$- (U.S.$-) per Unit (4% of the issue price) in consideration of services rendered by them in connection with the Offering. 12 The obligations of the Underwriters under the Underwriting Agreement may be terminated at their discretion on the basis of their assessment of the state of the financial markets and may also be terminated on the occurrence of certain stated events. The Underwriters are, however, obligated to take up and pay for all of the Units offered hereby if any are purchased under the Underwriting Agreement. The Corporation has agreed to indemnify the Underwriters and their broker/dealer affiliates against certain liabilities, including liabilities under the United States securities laws and under Canadian securities legislation, and to contribute to payments that the Underwriters may be required to make in respect thereof. Ivanhoe has agreed not to issue or enter into an agreement to issue any Common Shares or any securities convertible into or exchangeable for Common Shares without the prior written consent of the Underwriters, such consent not to be unreasonably withheld, until the date which is - days after the closing of the Offering, except pursuant to: (i) the grant or exercise of stock options and other similar issuances pursuant to Ivanhoe's equity incentive plan and other compensation arrangements; (ii) the exercise or conversion of outstanding warrants and special warrants; (iii) obligations in respect of existing mineral property agreements, and (iv) the issuance of securities in connection with property or share acquisitions in the normal course of business. The Corporation has applied to list the Common Shares and the Purchase Warrants to be distributed pursuant to the Offering, including the Common Shares issuable upon exercise of the Purchase Warrants, on the TSX. Listing of the Common Shares and Purchase Warrants on the TSX will be subject to the Corporation fulfilling all listing requirements of the TSX, including in the case of the Purchase Warrants prescribed distribution requirements. Pursuant to policies of the Ontario Securities Commission, the Underwriters may not, throughout the period of distribution under this short form prospectus, bid for or purchase Common Shares. The foregoing restriction is subject to certain exceptions, on the condition that the bid or purchase not be engaged in for the purpose of creating actual or apparent active trading in or raising the price of the Common Shares. These exceptions include a bid or purchase permitted under the by-laws and rules of the TSX relating to market stablization and passive market marking activities and a bid or purchase made for or on behalf of a customer where the order was not solicited during the period of distribution. The Corporation has been advised that, in connection with the offering and subject to the foregoing, the Underwriters may over-allot or effect transactions which stabilize or maintain the market price of the Common Shares at levels above that which would otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. Such a transaction would not occur in Australia. U.S. SALES The Units, the Common Shares, the Purchase Warrants and the Common Shares issuable upon exercise of the Purchase Warrants have not been and will not be registered under the U.S. Securities Act or any state securities laws, and accordingly may not be offered or sold within the United States or to U.S. persons; except that the Underwriters may, through certain of their qualified U.S. broker-dealer affiliates, offer Units in transactions that comply with exemptions from registration under the U.S. Securities Act and applicable state securities laws. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy, any of the Units in the United States. The Underwriters have agreed that, except in certain transactions exempt from the registration requirements of the U.S. Securities Act, they will not offer or sell within the United States or to, or for the account or benefit of, U.S. persons, the Units as part of their distribution. The Underwriters have further agreed that all offers and sales of the Units will be made in compliance with Rule 903 or 904 of Regulation S under the U.S. Securities Act, or in compliance with an exemption from registration thereunder, and that they will have sent to each dealer, or other person who is receiving a selling concession, fee or other remuneration in respect of the Units to which they sell, a confirmation or other notice setting forth the restrictions on offers and sales of the Units within the United States or to or for the account or benefit of, U.S. persons. Common Shares comprised in the Units and Common Shares acquired upon exercise of the Purchase Warrants may be resold on the TSX 13 pursuant to Rule 904 of Regulation S under the U.S. Securities Act, which requires among other things, that neither the seller of the Common Shares nor any person acting on its behalf is aware of the fact that: (i) the offeree or the buyer is in the United States, or (ii) the transaction has been pre-arranged with a buyer in the United States. Terms used in this paragraph have the meanings ascribed to them by Regulation S under the U.S. Securities Act. In addition, until 40 days after the commencement of this offering, an offer or sale of the Common Shares or Purchase Warrants comprised in the Units within the United States by any dealer, whether or not participating in this offering, may violate the registration requirements of the U.S. Securities Act if such offer or sale is made otherwise than in accordance with an available exemption under the U.S. Securities Act. The Purchase Warrants will not be exercisable in the United States or by or on behalf of a U.S. person unless an exemption from the registration requirements under the U.S. Securities Act and any applicable state securities law is available, and the Corporation has received an opinion of counsel to such effect, provided however, that an institutional accredited investor that was the original purchaser of Units in the offering in the United States will not be required to deliver an opinion letter in connection with the exercise of Purchase Warrants that were part of those Units. Certificates representing any securities which are sold in the United States or to or for the account or benefit of a U.S. person will bear a legend to the effect that the securities represented thereby are not registered under the U.S. Securities Act and may only be offered pursuant to certain exemptions from the registration requirements of the U.S. Securities Act. AUSTRALIAN SALES The Units, the Common Shares, the Purchase Warrants and the Common Shares acquirable upon exercise of the Purchase Warrants will not have been issued under an Australian disclosure document and, subject to certain exceptions, may not be sold or offered for sale in Australia within 12 months after the issue of the Units. Ivanhoe may, if it deems it necessary, issue an Australian prospectus in relation to Common Shares at or after the time of issue of the Common Shares but before any on-sale of the Common Shares in Australia. Each Underwriter has agreed that it will not offer any of the Common Shares or Purchase Warrants for sale in Australia within 12 months after their issue, except as may be permitted under Australian securities laws. USE OF PROCEEDS On October 31, 2003, Ivanhoe completed a private placement of special warrants (the "Special Warrant Private Placement"). See "Other Material Facts". The aggregate net proceeds of the Special Warrant Private Placement were approximately U.S.$49,930,000 (approximately Cdn.$65,518,000). The aggregate net proceeds received by Ivanhoe from the sale of the Units pursuant to this Offering (excluding the sale of any Units to be issued on the exercise of the Underwriters' Option), after deducting the Underwriters' fee and payment of expenses of the Offering, including preparation of this short form prospectus, estimated to be Cdn.$750,000 (approximately U.S.$570,000) will be approximately U.S.$95,430,000. Ivanhoe intends to allocate the combined net proceeds of this Offering and the Special Warrant Private Placement as follows:
USE OF PROCEEDS AMOUNT ---------------- ------------------ payment of the purchase price for the BHP Royalty(1) U.S.$ 37,000,000 exploration and development expenditures on the Oyu Tolgoi Project and elsewhere in
14 Mongolia(2) U.S.$ 50,000,000 general and administrative expenditures (2) U.S.$ 8,360,000 working capital(3) U.S.$ 50,000,000 ------------------ Total U.S.$ 145,360,000 ==================
Notes: (1) U.S. $17 million was paid to BHP Exploration in November 2003. (2) The Corporation anticipates incurring these expenditures through the third quarter of 2004, subject to finalization of project expenditure budgets for the entire 2004 fiscal year and to the results and recommendations of a scoping study on the Oyu Tolgoi Project which is expected to be completed in early 2004. Ivanhoe plans to use existing financial resources to cover expenditures on projects outside Mongolia. (3) As part of the Corporation's ongoing negotiations with the Government of Mongolia respecting a stability agreement for the Oyu Tolgoi Project, the Corporation and the Government are also discussing an advance by the Corporation to the Government of up to US$50 million on a basis to be negotiated, which may involve a prepayment of certain royalties and taxes that would otherwise become payable to the Government during the production phase of the project, a loan or some other basis. See "Summary Description of the Business - Summary of Oyu Tolgoi Project". If and when an agreement respecting such an advance is reached, the Corporation may use up to U.S.$50 million from the proceeds of the Offering, currently allocated as working capital, to the Government to fund the advance. There can be no assurance that the negotiations with respect to the stability agreement will be successful nor that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. OTHER MATERIAL FACTS On December 5, 2003, Ivanhoe filed with the securities commissions in each of British Columbia and Ontario a short form prospectus relating to the issuance of 5,760,000 units, each unit consisting of one Common Share and one Common Share purchase warrant, issuable upon the exercise or deemed exercise of 5,760,000 previously issued special warrants sold pursuant to the Special Warrant Private Placement. Each ten of those Common Share purchase warrants entitle the holder to purchase one Common Share at a price of U.S.$8.68 at any time on or before February 15, 2004. RISK FACTORS Investment in securities of Ivanhoe involves a significant degree of risk and should be considered speculative due to the nature of Ivanhoe's business and the present stage of its development. Investors should give careful consideration to the risk factors described in "Item 4. Narrative Description of Business - Risk Factors" on pages 54 through 63 of Ivanhoe's AIF, which is incorporated by reference in this short form prospectus. These risk factors include: - Ivanhoe's business in Mongolia may be harmed if the country fails to complete its transition from state socialism and a planned economy to political democracy and a free market economy; - future amendments to Mongolian laws could weaken, shorten or curtail Ivanhoe's mineral exploration rights or make it more difficult or expensive to obtain mining rights and carry out mining; - the mineral resources identified on the Oyu Tolgoi Project do not have demonstrated economic viability and the feasibility of mining has not been established; - lack of infrastructure in proximity to the Oyu Tolgoi Project could adversely affect mining feasibility; 15 - Ivanhoe's exploration licenses could expire before Ivanhoe is ready or able to obtain a mining license; - economic sanctions imposed by the United States and Canada against Myanmar may adversely affect the Monywa Copper Project; - Ivanhoe faces geotechnical and development risks at the Monywa Copper Project; - there can be no assurance that Ivanhoe will be capable of raising the additional funding that it needs to carry out its development and exploration objectives; - Ivanhoe has a limited customer base for its products and needs to secure additional markets; - the Savage River Project is dependent on older process facilities and pipeline operations which may be prone to failure or breakdown; - there is a risk of long term decline in pellet grade at the Savage River Project; - the pit wall of the Savage River pit requires additional work to ensure its stability; - there can be no assurance that the interest held by Ivanhoe in its exploration, development and mining properties is free from defects or that material contractual arrangements between Ivanhoe and entities owned or controlled by foreign governments will not be unilaterally altered or revoked; - competition for new mining properties by larger, more established companies may prevent Ivanhoe from acquiring interests in additional properties or mining operations; - Ivanhoe has a limited operating history, and there is no assurance that it will be capable of consistently producing positive cash flows; - a substantial portion of Ivanhoe's operations involve exploration and development and there is no guarantee that any such activity will result in commercial production of mineral deposits; - mining operations are subject to numerous hazards that could have a material adverse effect on the financial position of Ivanhoe; - calculation of reserves and metal recovery is only an estimate, and there can be no assurance about the quantity and grade of minerals until reserves or resources are actually mined; - fluctuations in currency exchange rates may adversely affect ABM's financial position and results of operations; - the indebtedness on the Monywa Copper Project is subject to floating interest rates; - the Monywa Copper Project is not in full compliance with certain covenants under its principal project financing agreement; - metal prices are volatile; - Ivanhoe is exposed to risks of changing political stability and government regulation in the countries in which it operates; 16 - Ivanhoe is subject to substantial environmental and other regulatory requirements and such regulations are becoming more stringent. Non-compliance with such regulations, either through current or future operations or a pre-existing condition could materially adversely affect Ivanhoe; - previous mining operations may have caused environmental damage at Ivanhoe mining sites, and its indemnities and exemptions from liability may not be effective; - Ivanhoe's prospects depend on its ability to attract and retain key personnel, and; certain directors of Ivanhoe are directors or officers of, or have significant shareholdings, in other mineral resource companies and there is the potential that such directors will encounter conflicts of interest with Ivanhoe. AUDITORS, TRANSFER AGENT AND REGISTRAR The auditors of Ivanhoe are Detoitte & Touche LLP, Chartered Accountants, Vancouver, British Columbia. The registrar and transfer agent for the Common Shares in Canada is CIBC Mellon Trust Corporation at its principal offices in Vancouver. LEGAL MATTERS Certain Canadian legal matters in connection with this Offering will be passed upon by Goodmans on behalf of Ivanhoe and by Fasken Martineau DuMoulin LLP on behalf of the Underwriters. As at the date hereof, the partners and associates of Goodmans, as a group, and the partners and associates of Fasken Martineau DuMoulin LLP, as a group, beneficially own directly or indirectly less than one percent of the outstanding Common Shares. PURCHASERS' STATUTORY RIGHTS Securities legislation in the provinces of Canada provides purchasers with the right to withdraw from an agreement to purchase securities offered hereby. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment thereof. In several of the provinces of Canada, securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, damages if the prospectus and any amendment thereto contains a misrepresentation or is not delivered to the purchaser, provided that such remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province. The purchaser should refer to any applicable provisions of the securities legislation of such purchaser's province for the particulars of these rights or consult with a legal adviser. 17 CERTIFICATE OF IVANHOE MINES LTD. Dated: December 5, 2003 This short form prospectus, together with the documents incorporated herein by reference, constitutes full, true and plain disclosure of all material facts relating to the securities being offered by this short form prospectus as required by the securities legislation of the province of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland. (signed) Robert M. Friedland (signed) Pierre Masse Chief Executive Officer Chief Financial Officer On behalf of the Board of Directors (signed) R. Edward Flood (signed) David Huberman Director Director 18 CERTIFICATE OF THE UNDERWRITERS Dated: December 5, 2003 To the best of our knowledge, information and belief, this short form prospectus, together with the documents incorporated herein by reference, constitutes full, true and plain disclosure of all material facts relating to the securities being offered by this short form prospectus as required by the securities legislation of the province of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland.
HSBC SECURITIES (CANADA) INC. GRIFFITHS MCBURNEY & PARTNERS CIBC WORLD MARKETS INC. (signed) Jeffrey B. Allsop (signed) Eugene McBurney (signed) David A. Scott
No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. The securities offered hereby have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws. Accordingly, such securities may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This short form prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby within the United States. See "Private Placement and Plan of Distribution". INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH SECURITIES REGULATORY AUTHORITIES IN CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe Mines Ltd. at Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1 (telephone (604) 688-5755). Short Form Prospectus New Issue December 17, 2003 IVANHOE MINES LTD. U.S.$49,996,800 5,760,000 COMMON SHARES AND 5,760,000 SHARE PURCHASE WARRANTS TO BE ISSUED UPON THE EXERCISE OF 5,760,000 SPECIAL WARRANTS This short form prospectus qualifies for distribution 5,760,000 common shares ("Common Shares") and 5,760,000 share purchase warrants ("Purchase Warrants") of Ivanhoe Mines Ltd. ("Ivanhoe" or the "Corporation") to be issued upon the exercise of 5,760,000 special warrants (the "Special Warrants") of Ivanhoe (the "Offering"). Each ten (10) Purchase Warrants entitles the holder to acquire one (1) Common Share at a price of U.S.$8.68 at any time on or before February 15, 2004. The Special Warrants were issued on October 31, 2003 pursuant to subscription agreements (the "Subscription Agreements") between Ivanhoe and institutional investors (the "Purchasers") at a price of U.S.$8.68 per Special Warrant. The price of the Special Warrants was determined by negotiation between Ivanhoe and the Purchasers. Ivanhoe sold the Special Warrants directly to the Purchasers without use of an agent or underwriter pursuant to registration and prospectus exemptions under applicable securities legislation. See "Private Placement and Plan of Distribution". NO UNDERWRITER HAS BEEN INVOLVED IN THE PREPARATION OF, OR HAS REVIEWED THE CONTENTS OF, THIS SHORT FORM PROSPECTUS. Subject to adjustment, each Special Warrant entitles the holder thereof to acquire one Common Share and one Purchase Warrant, at no additional cost, at any time until 5:00 p.m. (Vancouver time) on the fifth business day after the earlier of (the "Expiry Time"): (i) the date on which a final receipt for this prospectus has been issued by the British Columbia Securities Commission and the Ontario Securities Commission (the "Qualification Date"); and (ii) the four month anniversary of the date of issuance of the Special Warrants. Any Special Warrants not exercised prior to the Expiry Time will be deemed to have been exercised immediately prior to the Expiry Time without any further action on the part of the holder. Ivanhoe paid to CIBC World Markets Inc. consideration equal to U.S.$1,000,000 for corporate advice, including assistance in respect of the Offering. The fee was equal to 2% of the gross proceeds of the Offering, and was 2 paid by Ivanhoe to CIBC World Markets Inc. through the issue of 115,207 Common Shares at a deemed price of U.S.$8.68 per Common Share. Ivanhoe will pay no fee or commission in connection with the issuance of the Common Shares and Purchase Warrants on the exercise of the Special Warrants. The expenses of the Offering, including the cost of preparation of this prospectus, will be borne by Ivanhoe. See "Private Placement and Plan of Distribution". Each Purchaser has represented and warranted in its Subscription Agreement that it is acquiring the Special Warrants and the underlying Common Shares and Purchase Warrants to be held for investment only and not with a view to immediate resale or distribution. Ivanhoe has no reason to believe that any of the Purchasers have any different investment intent in respect of the Special Warrants and their underlying Common Shares and Purchase Warrants than that represented in the Subscription Agreements. The Common Shares are traded on the Toronto Stock Exchange (the "TSX") and the Australian Stock Exchange under the symbol "IVN" and are quoted on the NASDAQ National Market ("Nasdaq") under the symbol "HUGO". The price of the Common Shares at the close of business on December 15, 2003 was Cdn.$10.00 on the TSX. The TSX has approved for listing the Common Shares issuable upon exercise of the Special Warrants (including the Common Shares issuable upon exercise of the Purchase Warrants). 3 TABLE OF CONTENTS
PAGE FORWARD LOOKING STATEMENTS...................................................................................... 3 CURRENCY AND EXCHANGE RATES..................................................................................... 3 DOCUMENTS INCORPORATED BY REFERENCE............................................................................. 4 NAME AND INCORPORATION.......................................................................................... 5 SUMMARY DESCRIPTION OF THE BUSINESS............................................................................. 7 CONSOLIDATED CAPITALIZATION..................................................................................... 8 DESCRIPTION OF SHARE CAPITAL.................................................................................... 8 DESCRIPTION OF PURCHASE WARRANTS................................................................................ 9 PRIVATE PLACEMENT AND PLAN OF DISTRIBUTION...................................................................... 10 USE OF PROCEEDS................................................................................................. 11 OTHER FINANCIAL INFORMATION..................................................................................... 12 OTHER MATERIAL FACTS............................................................................................ 12 RISK FACTORS.................................................................................................... 12 AUDITORS, TRANSFER AGENT AND REGISTRAR.......................................................................... 14 LEGAL MATTERS................................................................................................... 14 PURCHASERS' STATUTORY RIGHTS.................................................................................... 14 CONTRACTUAL RIGHTS OF ACTION FOR RESCISSION..................................................................... 14 CERTIFICATE OF IVANHOE MINES LTD................................................................................ 15 CONSENT OF DELOITTE AND TOUCHE LLP.............................................................................. 16
FORWARD LOOKING STATEMENTS Certain statements contained in this short form prospectus and in the documents incorporated by reference herein respecting reserves, resources, plans, objectives and future performance of Ivanhoe's business are forward-looking statements including, without limitation, discussions about scoping studies and feasibility studies being performed on the Oyu Tolgoi Project (as defined below) and the use of proceeds of the Offering. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in commodity prices, unanticipated reserve and resource grades, geological, metallurgical, processing, transportation, infrastructure and other problems, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, political risk and related economic risk, actual performance of plant, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risk factors incorporated by reference in this short form prospectus. See also "RISK FACTORS". CURRENCY AND EXCHANGE RATES In this short form prospectus, all references to "U.S.$" are to United States dollars and all references to "Cdn.$" are to Canadian dollars. The Bank of Canada noon buying rates for the purchase of one United States dollar using Canadian dollars were as follows during the indicated periods: (Stated in Canadian dollars) 4
NINE MONTHS ENDED SEPTEMBER 30, 2003 YEAR ENDED DECEMBER 31 ---------------- ---------------------------------------- 2002 2001 2000 End of period 1.3504 1.5796 1.5928 1.4995 High for the period 1.5747 1.6184 1.6052 1.5601 Low for the period 1.3342 1.5155 1.4901 1.4349 Average for the period 1.4295 1.5703 1.5484 1.4859
The Bank of Canada noon buying rate on December 15, 2003 for the purchase of one United States dollar using Canadian dollars was Cdn.$l.3183 (one Canadian dollar on that date equalled U.S.$0.7586). DOCUMENTS INCORPORATED BY REFERENCE The following documents of Ivanhoe, filed with the various securities commissions or similar authorities in all of the provinces of Canada, are specifically incorporated by reference into, and form an integral part of, this short form prospectus: 1. Renewal Annual Information Form dated May 20, 2003 (the "AIF"). 2. Comparative consolidated financial statements of Ivanhoe for the years ended December 31, 2002 and 2001, together with the notes thereto and the auditors' report thereon and including the management's discussion and analysis of financial condition and results of operations ("MD&A") for such periods; 3. Comparative unaudited consolidated interim financial statements for the three and nine month periods ended September 30, 2003 and 2002, together with the MD&A for such periods. 4. Management Information Circular dated April 15, 2003 prepared in connection with Ivanhoe's annual meeting of shareholders held on June 12, 2003 (excluding the report on executive compensation, the performance graph and the statement of corporate governance practices). 5. Material Change Report dated March 7, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi gold and copper mineral project (the "Oyu Tolgoi Project") in Mongolia. 6. Material Change Report dated July 31, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project, as amended by an Amended and Restated Material Change Report dated August 18, 2003. 7. Material Change Report dated November 6, 2003 regarding the acquisition by Ivanhoe from BHP Minerals International Exploration Inc. ("BMP Exploration") of a 2% net smelter returns royalty over production from the Oyu Tolgoi Project. 8. Material Change Report dated November 20, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project. 9. Material Change Report dated December 12, 2003 regarding a prospectus offering of the Corporation dated December 12, 2003 (the "Unit Offering"). 5 Any documents of the type referred to in the preceding paragraph, interim financial statements and any material change reports (excluding confidential reports) filed by Ivanhoe with the securities commission or similar authority in each of the provinces of Canada subsequent to the date of this short form prospectus and prior to the termination of the Offering shall be deemed to be incorporated by reference in this short form prospectus. ANY STATEMENT CONTAINED IN A DOCUMENT INCORPORATED OR DEEMED TO BE INCORPORATED BY REFERENCE HEREIN SHALL BE DEEMED TO BE MODIFIED OR SUPERSEDED FOR PURPOSES OF THIS SHORT FORM PROSPECTUS, TO THE EXTENT THAT A STATEMENT CONTAINED HEREIN OR IN ANY SUBSEQUENTLY FILED DOCUMENT THAT ALSO IS OR IS DEEMED TO BE INCORPORATED BY REFERENCE HEREIN MODIFIES OR REPLACES SUCH STATEMENT. THE MODIFYING OR SUPERSEDING STATEMENT NEED NOT STATE THAT IT HAS MODIFIED OR SUPERSEDED A PRIOR STATEMENT OR INCLUDE ANY OTHER INFORMATION SET FORTH IN THE DOCUMENT THAT IT MODIFIES OR SUPERSEDES. THE MAKING OF A MODIFYING OR SUPERSEDING STATEMENT SHALL NOT BE DEEMED AN ADMISSION FOR ANY PURPOSES THAT THE MODIFIED OR SUPERSEDED STATEMENT WHEN MADE, CONSTITUTED A MISREPRESENTATION, AN UNTRUE STATEMENT OF A MATERIAL FACT OR AN OMISSION TO STATE A MATERIAL FACT THAT IS REQUIRED TO BE STATED OR THAT IS NECESSARY TO MAKE A STATEMENT NOT MISLEADING IN LIGHT OF THE CIRCUMSTANCES IN WHICH IT WAS MADE. ANY STATEMENT SO MODIFIED OR SUPERSEDED SHALL NOT BE DEEMED IN ITS UNMODIFIED OR SUPERSEDED FORM TO CONSTITUTE A PART OF THIS SHORT FORM PROSPECTUS. INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH THE SECURITIES COMMISSION OF EACH OF THE PROVINCES OF CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe, Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1 (telephone (604) 688-5755). NAME AND INCORPORATION Ivanhoe was incorporated under the Company Act (British Columbia) on January 25, 1994 under the name 463212 B.C. Ltd. In February 1994, Ivanhoe changed its name to Indochina Goldfields Ltd. In March 1994, Ivanhoe increased its authorized capital from 10,000 common shares without par value to 100,000,000 common shares without par value and created 100,000,000 preferred shares without par value. In February 1995, Ivanhoe was continued under the Business Corporations Act (Yukon). In July 1997, Ivanhoe increased its authorized capital to an unlimited number of common shares without par value and an unlimited number of preferred shares without par value (the "Preferred Shares"). In June 1999, Ivanhoe changed its name to Ivanhoe Mines Ltd. Ivanhoe's North American headquarters are located at Suite 654,999 Canada Place, Vancouver, B.C. V6C 3E1. Ivanhoe's Asian headquarters are located at 37th Floor #2, Millenia Tower, 1 Temasek Avenue, Singapore 039192. The Corporation's registered office is located at Suite 300, 204 Black Street, Whitehorse, Yukon, Canada, YlA 2M9. 6 SUBSIDIARIES The corporate structure of Ivanhoe, its material subsidiaries, the percentage ownership in subsidiaries which are not wholly-owned by Ivanhoe and the jurisdiction of incorporation of such corporations as at the date of this short form prospectus are set out in the following chart. [FLOW CHART OF IVANHOE MINES LTD.] Note: All subsidiaries are wholly-owned unless otherwise indicated. "BVI" means British Virgin Islands. 7 SUMMARY DESCRIPTION OF THE BUSINESS Ivanhoe is an international mineral exploration and development company. Ivanhoe holds interests in and conducts operations on mineral resource properties in Mongolia, Myanmar, Australia, China and Kazakhstan, and holds interests through investments in mineral resource properties in Mongolia, China, South Korea and Vietnam. The Corporation has identified the Oyu Tolgoi Project in Mongolia, the Monywa copper project in Myanmar (the "Monywa Copper Project") and the Savage River iron ore mine in Tasmania, Australia (the "Savage River Project") as the mineral resource properties material to Ivanhoe. Ivanhoe's interests in Kazakhstan, Mongolia (other than the Oyu Tolgoi Project), China, Myanmar (other than the Monywa Copper Project), South Korea and Vietnam are not considered material. A brief description of the Oyu Tolgoi Project is set forth below. For a more detailed description of all of the Corporation's properties see "Item 3. General Development of the Business" and "Item 4. Narrative Description of Business" on pages 9 through 52 of Ivanhoe's AIF and the financial statements, MD&A and material change reports incorporated by reference in this short form prospectus. SUMMARY OF OYU TOLGOI PROJECT The Oyu Tolgoi Project is a copper and gold mineral exploration project located in the South Gobi region of Mongolia. Ivanhoe acquired its interest in the Oyu Tolgoi Project in 2001 from BHP Exploration pursuant to a May 2000 earn-in agreement. BHP Exploration retained a 2% net smelter returns royalty (the "BHP Royalty"). In November 2003, the Corporation agreed to purchase the BHP Royalty for U.S.$37,000,000. Ivanhoe has identified four occurrences of copper and gold mineralization on the Oyu Tolgoi property, the Southwest Oyu, Central Oyu, South Oyu and Hugo Dummett deposits. The Corporation has completed a series of substantial drilling programs to define the nature and extent of the mineralization in these deposits and has, to date, identified quantities of inferred mineral resources at all four deposits and indicated mineral resources at the Southwest Oyu deposit. The Corporation continues to drill the property in order to better define the nature and extent of the mineralization to date on the property, particularly at the Hugo Dummett deposit, and to upgrade the previously identified inferred resources to the measured and indicated categories. The Corporation is also carrying out a scoping study on the project, which is expected to be completed in January 2004 and is investigating opportunities to establish new infrastructure or improve existing infrastructure necessary to support potential mine development and production. The Corporation is in the process of negotiating a broadly-based, legally authorized global stability or concession agreement with the Government of Mongolia, the purpose of which is to maintain and/or enhance, for the Corporation's benefit, the Mongolian tax, fiscal and commercial environment over the life of the Oyu Tolgoi Project. The agreement is expected to address a range of matters including the following: project tax rates, confirmation of appropriate mining, land, license and infrastructure tenure necessary to carry out all exploration, mining, milling, processing, including smelting and refining, metallurgy and related activities over the life of the project, water resources and long term water rights, energy and transportation matters and approvals, labour and staffing requirements, mineral royalties, environmental protection requirements, assurances in connection with the Corporation's long term right to sell and export products from the project at international market prices, the right and entitlement to receive and dispose of hard currency income derived from such sale or export, reduction of, or exemption from, import and export duties, favourable bilateral border and customs matters, project duration, investor protection including matters relating to the purpose, amount and term of the investor's investment and dispute resolution mechanisms. As part of these negotiations, the parties are discussing an advance by the Corporation to the Government of up to U.S.$50 million on a basis to be negotiated, which may involve a prepayment or purchase of certain royalties and/or taxes that would otherwise accrue and become payable to the Government during the production phase of the project, a loan or on some other basis. See "Use of Proceeds". There can be no assurance that the negotiations with respect to the stability agreement will be successful or that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. 8 CONSOLIDATED CAPITALIZATION The following table sets forth the consolidated capitalization of Ivanhoe as of the dates indicated and reflects material changes in Ivanhoe's capitalization since December 31, 2002. The following table should be read in conjunction with Ivanhoe's comparative consolidated financial statements for the years ended December 31, 2002 and December 31, 2001 and the notes that accompany them.
As at As at As at December 31, 2002 October 31, 2003 October 31, 2003 ----------------- ---------------- ---------------- actual actual as adjusted(1) (unaudited) (unaudited) (in U.S.$000's) Loans Payable to Related Parties $ 5,088 $ 5,088 $ 5,088 Long-term Debt (including current portion) 29,300 23,414 23,414 Shareholders' Equity Share Capital Common Shares 522,199 612,233 706,635(2) Special Warrants 26,516 49,930 49,930 Additional Paid-in Capital 1,508 1,193(2) 1,193(2) Contributed Surplus (arising from stock- 3,520 3,495(2) 3,495(2) based compensation) Accumulated Deficit (364,751) (422,332)(2) (422,332)(2) ----------- ------------ ---------- Total Consolidated Capitalization $ 223,380 $ 273,021 367,423 =========== ============ ==========
(l) The adjusted figures as at October 31, 2003 give effect to the issue of the units under the Unit Offering for gross proceeds of Cdn.$131,250,000 (approximately U.S.$99,447,000) and reflect estimated expenses of the Unit Offering amounting to approximately Cdn.$750,000 (approximately U.S.$570,000). No amount of the gross proceeds has been allocated to the Purchase Warrants. (2) Represents an estimate. DESCRIPTION OF SHARE CAPITAL The authorized share capital of Ivanhoe consists of an unlimited number of Common Shares without par value and an unlimited number of Preferred Shares. As of the date of this short form prospectus, there are 249,583,819 Common Shares and no Preferred Shares issued and outstanding. Rights and restrictions in respect of the Common Shares and the Preferred Shares are set out in Ivaohoe's articles of continuance, Ivanhoe's by-laws and in the Yukon Business Corporations Act, and its regulations. The holders of Common Shares are entitled to one vote per Common Share at all meetings of shareholders except meetings at which only holders of another specified class or series of shares of the Corporation are entitled to vote separately or as a class or series. The holders of Common Shares may appoint a proxy in accordance with Ivanhoe's by-laws and the Yukon Business Corporations Act. Subject to the prior right of the holders of Preferred Shares, the holders of Common Shares are entitled to receive dividends as and when declared by the directors, and to receive a pro rata share of the remaining property and assets of the Corporation in the event of liquidation, dissolution or winding up of the Corporation. The Common Shares have no pre-emptive, redemption, purchase or conversion rights. Neither the Yukon Business Corporations Act nor the constating documents of the Corporation impose restrictions on the transfer of Common Shares on the register of the Corporation, provided that the Corporation receives the certificate representing the Common Shares to be transferred together with a duly endorsed instrument of transfer and payment of any fees and taxes which may be prescribed by the Board of Directors from time to time. There are no sinking fund provisions in relation to the Common Shares and they are 9 not liable to further calls or to assessment by the Corporation. The Yukon Business Corporations Act provides that the rights and provisions attached to any class of shares may not be modified, amended or varied unless consented to by special resolution passed by a majority of not less than two-thirds of the votes cast in person or by proxy by holders of shares of that class. The Preferred Shares as a class rank senior to the Common Shares as to the payment of dividends and the distribution of property and assets on the liquidation, dissolution or winding-up of the Corporation. Holders of Preferred Shares are not entitled to any voting rights as a class except as may be provided under the Yukon Business Corporations Act and except those voting rights which attach to any series of Preferred Shares as determined by the directors of the Corporation from time to time. The Preferred Shares are issuable in one or more series, each consisting of such number of Preferred Shares as may be fixed by the Corporation's directors. The Corporation's directors may from time to time, by resolution passed before the issue of any Preferred Shares of any particular series, alter the constating documents of the Corporation to determine the designation of the Preferred Shares of that series and to fix the number of Preferred Shares therein and alter the constating documents to create, define and attach special rights and restrictions to the shares of that series, including, without limitation, the following: (i) the nature, rate or amount of dividends and the dates, places and currencies of payment thereof; (ii) the consideration for, and the terms and conditions of, any purchase of the Preferred Shares for cancellation or redemption; (iii) conversion or exchange rights; (iv) the terms and conditions of any share purchase plan or sinking fund; and (v) voting rights and restrictions. Registered holders of both the Preferred Shares and Common Shares are entitled, at their option, to a certificate representing their shares of the Corporation. DESCRIPTION OF PURCHASE WARRANTS The Purchase Warrants are issuable in registered form under a warrant indenture (the "Purchase Warrant Indenture") between the Corporation and CIBC Mellon Trust Company, in its capacity as the warrant trustee. The principal office of CIBC Mellon Trust Company in Vancouver, British Columbia is the location at which the Purchase Warrants may be surrendered for exercise, transfer or exchange. The Purchase Warrants survive until February 15, 2004. Each ten (10) Purchase Warrants entitle the holder to purchase one Common Share at a price of U.S.$8.68 at any time on or prior to the expiry date of the Purchase Warrants. The Common Shares underlying the Purchase Warrants, when issued upon exercise of the Purchase Warrants, will be fully paid and non-assessable. The Corporation is not required to issue fractional Common Shares upon the exercise of Purchase Warrants and a holder of Purchase Warrants may not exercise less than ten Purchase Warrants at any time. A holder of Purchase Warrants will not possess any rights as a shareholder of the Corporation until he or she exercises the Purchase Warrants and acquires Common Shares. Purchase Warrants may be exercised upon surrender of the warrant certificate on or before the expiry date of the Purchase Warrants at the principal office of CIBC Mellon Trust Company in Vancouver, British Columbia, with the exercise form found on the back of the warrant certificate completed and executed as indicated, accompanied by payment of the exercise price (by bank draft or certified cheque payable to the order of "Ivanhoe Mines Ltd.") for the number of Common Shares with respect to which the Purchase Warrants are being exercised. The Purchase Warrant Indenture includes a provision in which the rights attached to the Purchase Warrant may be modified to the extent necessary to comply with the rules of the Australian Stock Exchange. The Purchase Warrant Indenture has been reviewed by the Australian Stock Exchange who have not required any amendments to the terms of the Purchase Warrants. Nevertheless, to the extent the rules or policies of the Australian Stock Exchange change in the future, such changes may result in amendments to the terms of the Warrants. 10 The Purchase Warrant Indenture provides for adjustment in the number of Common Shares issuable upon the exercise of the Purchase Warrants and/or the exercise price per Common Share in the event of: (i) the subdivision or consolidation of the Common Shares or issuance of a stock dividend on the Common Shares or other distribution of Common Shares or securities convertible into Common Shares (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture); (ii) the issuance of rights, options or warrants to purchase Common Shares or securities convertible into Common Shares at less than 95% of the "current market price" (as defined in the Purchase Warrant Indenture) of the Common Shares; and (iii) the distribution to all or substantially all the holders of Common Shares of shares of any other class or of rights, options or warrants (other than those referred to in (ii), above) to acquire Common Shares or securities convertible into Common Shares or property or other assets of the Corporation or of evidences of indebtedness or of assets. The Purchase Warrant Indenture also provides for adjustment in the class and/or number of securities issuable upon the exercise of the Purchase Warrants and/or exercise price per security in the event of: (i) any reclassification of the Common Shares; (ii) an amalgamation, merger, consolidation or other business combination of the Corporation with another entity; or (iii) the transfer of all or substantially all of the assets of the Corporation. No adjustment in the exercise price or the number of Common Shares purchasable upon the exercise of the Purchase Warrants will be required to be made unless the cumulative effect of such adjustment or adjustments would change the exercise price by at least 1%. Holders of Purchase Warrants do not have any voting or pre emptive rights or any other rights which a holder of Common Shares has. The rights of the holders of Purchase Warrants are subject to modification by "extraordinary resolution", which is defined in the Purchase Warrant Indenture as a resolution either passed at a meeting of the holders of Purchase Warrants by holders of not less than 66% of the Purchase Warrants represented at the meeting or adopted by instruments in writing signed by the holders of not less than 66% of all Purchase Warrants then outstanding. Subject to certain exceptions, the Purchase Warrants may not be exercised within the United States or by or on behalf of any U.S. Person (as defined in Regulation S under the U.S. Securities Act) and no certificate evidencing any Common Share issuable upon the exercise of a Purchase Warrant will be delivered to any address in the United States. See "Plan of Distribution". The foregoing discussion of the material terms and provisions of the Purchase Warrants is qualified in its entirety by reference to the detailed provisions of the Purchase Warrant Indenture, a copy of which may be obtained by contacting the Corporation. PRIVATE PLACEMENT AND PLAN OF DISTRIBUTION The Special Warrants were issued pursuant to the Offering at a price of U.S.$8.68 per Special Warrant. The Offering closed on October 31, 2003. The price of the Special Warrants was determined by negotiation between Ivanhoe and the Purchasers. Ivanhoe sold the Special Warrants directly to the Purchasers pursuant to registration and prospectus exemptions under applicable securities legislation. Ivanhoe paid to CIBC World Markets Inc. consideration equal to U.S.$1,000,000 for corporate advice, including assistance in respect of the Offering. The fee was equal to 2% of the gross proceeds of the Offering, and was paid by Ivanhoe to CIBC World Markets Inc. through the issue of 115,207 Common Shares at a deemed price of U.S.$8.68 per Common Share. No fees or commissions will be payable by Ivanhoe in connection with the issuance of the Common Shares or Purchase Warrants on the exercise of the Special Warrants. The expenses of the Offering, including the cost of preparation of this prospectus, will be borne by Ivanhoe. The Special Warrants may be exchanged or exercised at any time after their issuance, subject to the terms and conditions of the special warrant indenture dated October 31, 2003 (the "Special Warrant Indenture") between Ivanhoe and CIBC Mellon Trust Company. According to the Special Warrant Indenture, subject to adjustment, each Special Warrant entitles the holder thereof to acquire one Common Share and one Purchase Warrant, at no additional cost, at any time until the Expiry Time. Any Special Warrants not exercised prior to the Expiry Time will be deemed to have been exercised immediately prior to the Expiry Time without any further action on the part of the holder. 11 Each Purchaser has represented and warranted in its Subscription Agreement that it is acquiring the Special Warrants and the underlying Common Shares to be held for investment only and not with a view to immediate resale or distribution. Ivanhoe has no reason to believe that any of the Purchasers has any different investment intent in respect of the Special Warrants and the underlying Common Shares than that represented in the Subscription Agreements. This prospectus is being filed in British Columbia and Ontario to qualify the distribution of the Common Shares and Purchase Warrants to be issued upon the exercise of the Special Warrants. Common Shares and Purchase Warrants issued to holders of the Special Warrants prior to issuance of a receipt for this prospectus may be subject to resale restrictions under applicable securities legislation. The TSX has approved for listing the Common Shares issuable upon the exercise of the Special Warrants and the Common Shares issuable upon the exercise, if any, of the Purchase Warrants. The Special Warrants, the Common Shares issuable upon exercise of the Special Warrants, the Purchase Warrants and the Common Shares issuable upon the exercise, if any, of the Purchase Warrants have not been registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within in the United States or to U.S. Persons (as defined in Regulation S under the U.S. Securities Act) except in transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. Ivanhoe has no plans to register any such securities under the U.S. Securities Act. USE OF PROCEEDS On December 12, 2003, Ivanhoe filed a short form prospectus in respect of the Unit Offering. See "Other Material Facts". The aggregate net proceeds of the Unit Offering are anticipated to be approximately U.S.$94,402,000. The aggregate net proceeds received by Ivanhoe from the sale of the Special Warrants pursuant to this Offering, after deducting expenses of the Offering, including preparation of this short form prospectus, which was approximately U.S.$66,800, will be approximately U.S.$49,930,000. Ivanhoe intends to allocate the combined net proceeds of this offering and the Unit Offering as follows:
USE OF PROCEEDS AMOUNT --------------------------------------------- ----------------- Payment of the purchase price for the BHP(l) Royalty U.S. $ 37,000,000 Exploration and development expenditures on the Oyu Tolgoi Project and elsewhere in Mongolia(1) U.S. $ 50,000,000 General and administrative expenditures(1) U.S. $ 7 ,332,000 Working capital(2) U.S. $ 50,000,000 ----------------- Total U.S. $144.332.000 =================
Notes: (1) U.S.$17 million was paid to BHP Exploration in November 2003. (2) The Corporation anticipates incurring these expenditures through the third quarter of 2004, subject to finalization of project expenditure budgets for the entire 2004 fiscal year and to the results and recommendations of a scoping study on the Oyu Tolgoi Project which is expected to be completed in early 2004. Ivanhoe plans to use existing financial resources to cover expenditures on projects outside Mongolia. 12 (3) As part of the Corporation's ongoing negotiations with the Government of Mongolia respecting a stability agreement for the Oyu Tolgoi Project, the Corporation and the Government are also discussing an advance by the Corporation to the Government of up to U.S.$50 million on a basis to be negotiated, which may involve a prepayment or purchase of certain royalties and/or taxes that would otherwise become payable to the Government during the production phase of the project, a loan or on some other basis. See "Summary Description of the Business - Summary of the Oyu Tolgoi Project". If and when an agreement respecting such an advance is reached, the Corporation may use up to U.S.$50,000,000 from the proceeds of the Offering, currently allocated as working capital, to the Government to fund the advance. There can be no assurance that the negotiations with respect to the stability agreement will be successful or that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. OTHER FINANCIAL INFORMATION AMENDED AND RESTATED QUARTERLY DATA ($ in millions except per share information)
2002 2001(1) ------------------------------ ----------------------------- Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ------------------------------ ----------------------------- Revenue 21.3 19.3 24.8 21.8 19.5 15.9 21.9 18.0 Operating profit (0.7) 2.1 5.6 4.5 1.2 2.1 1.1 5.6 Net (income) loss 28.8 (0.5) 2.6 (0.7) 68.0 6.0 2.1 8.9 Cash provided (used by operations) (8.8) (11.2) (4.2) (0.5) (7.4) (4.7) 5.6 (6.7) Loss per share $0.15 $ 0.00 $0.01 $0.00 $0.52 $0.05 $0.02 $0.07
(1) Restated to give retroactive effect to an accounting change in 2001 Q4. OTHER MATERIAL FACTS On December 12, 2003, Ivanhoe filed with the securities commissions in each of the provinces of Canada, except Quebec, a short form prospectus in respect of the Unit Offering, which qualified the issuance of 12,500,000 units, each unit consisting of one Common Share and one-half of one Common Share purchase warrant. The Unit Offering also included an over-allotment option of 1,800,000 units. Each two of those purchase warrants will entitle the holder to purchase one Common Share at a price of Cdn.$12.00 at any time until the date that is one year following the closing of that offering and at a price of Cdn.$12.50 at any time thereafter until the date that is two years following the closing of that offering. RISK FACTORS Investment in securities of Ivanhoe involves a significant degree of risk and should be considered speculative due to the nature of Ivanhoe's business and the present stage of its development. Investors should give careful consideration to the risk factors described in "Item 4. Narrative Description of Business - Risk Factors" on pages 54 through 63 of Ivanhoe's AIF, which is incorporated by reference in this short form prospectus. These risk factors include: - Ivanhoe's business in Mongolia may be harmed if the country fails to complete its transition from state socialism and a planned economy to political democracy and a free market economy; - future amendments to Mongolian laws could weaken, shorten or curtail Ivanhoe's mineral exploration rights or make it more difficult or expensive to obtain mining rights and carry out mining; - the mineral resources identified on the Oyu Tolgoi Project do not have demonstrated economic viability and the feasibility of mining has not been established; 13 - lack of infrastructure in proximity to the Oyu Tolgoi Project could adversely affect mining feasibility; - Ivanhoe's exploration licenses could expire before Ivanhoe is ready or able to obtain a mining license; - economic sanctions imposed by the United States and Canada against Myanmar may adversely affect the Monywa Copper Project; - Ivanhoe faces geotechnical and development risks at the Monywa Copper Project; - there can be no assurance that Ivanhoe will be capable of raising the additional funding that it needs to carry out its development and exploration objectives; - Ivanhoe has a limited customer base for its products and needs to secure additional markets; - the Savage River Project is dependent on older process facilities and pipeline operations which may be prone to failure or breakdown; - there is a risk of long term decline in pellet grade at the Savage River Project; - the pit wall of the Savage River pit requires additional work to ensure its stability; - there can be no assurance that the interest held by Ivanhoe in its exploration, development and mining properties is free from defects or that material contractual arrangements between Ivanhoe and entities owned or controlled by foreign governments will not be unilaterally altered or revoked; - competition for new mining properties by larger, more established companies may prevent Ivanhoe from acquiring interests in additional properties or mining operations; - Ivanhoe has a limited operating history, and there is no assurance that it will be capable of consistently producing positive cash flows; - a substantial portion of Ivanhoe's operations involve exploration and development and there is no guarantee that any such activity will result in commercial production of mineral deposits; - mining operations are subject to numerous hazards that could have a material adverse effect on the financial position of Ivanhoe; - calculation of reserves and metal recovery is only an estimate, and there can be no assurance about the quantity and grade of minerals until reserves or resources are actually mined; - fluctuations in currency exchange rates may adversely affect ABM's financial position and results of operations; - the indebtedness on the Monywa Copper Project is subject to floating interest rates; - the Monywa Copper Project is not in full compliance with certain covenants under its principal project financing agreement; - metal prices are volatile; - Ivanhoe is exposed to risks of changing political stability and government regulation in the countries in which it operates; 14 - Ivanhoe is subject to substantial environmental and other regulatory requirements and such regulations are becoming more stringent. Non-compliance with such regulations, either through current or future operations or a pre-existing condition could materially adversely affect Ivanhoe; - previous mining operations may have caused environmental damage at Ivanhoe mining sites, and its indemnities and exemptions from liability may not be effective; - Ivanhoe's prospects depend on its ability to attract and retain key personnel, and; certain directors of Ivanhoe are directors or officers of, or have significant shareholdings, in other mineral resource companies and there is the potential that such directors will encounter conflicts of interest with Ivanhoe. AUDITORS, TRANSFER AGENT AND REGISTRAR The auditors of Ivanhoe are Deloitte & Touche LLP, Chartered Accountants, Vancouver, British Columbia. The registrar and transfer agent for the Common Shares in Canada is CIBC Mellon Trust Company at its principal offices in Vancouver and Toronto. LEGAL MATTERS Certain Canadian legal matters in connection with this Offering will be passed upon by Goodmans on behalf of Ivanhoe. As at the date hereof, the partners and associates of Goodmans, as a group, beneficially own directly or indirectly less than one percent of the outstanding Common Shares. PURCHASERS' STATUTORY RIGHTS Securities legislation in British Columbia and Ontario provides purchasers with the right to withdraw from an agreement to purchase securities offered hereby. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment thereto. The securities legislation further provides a purchaser with remedies for rescission or, in some cases, damages if the prospectus and any amendment contains a misrepresentation or is not delivered to the purchaser, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the Purchaser's province of residence. Purchasers should refer to any applicable provisions of the securities legislation of the Purchaser's province of residence for the particulars of these rights or consult with a legal adviser. CONTRACTUAL RIGHTS OF ACTION FOR RESCISSION In the event that a holder of a Special Warrant who acquires a Common Share upon the exercise of the Special Warrant as provided for in this prospectus, is or becomes entitled under applicable legislation to the remedy of rescission by reason of this prospectus or any amendment thereto containing a misrepresentation, the holder will be entitled to rescission not only of the holder's exercise of their Special Warrant but also of the private placement transaction pursuant to which the Special Warrant was initially acquired and shall be entitled, in connection with such rescission, to a full refund of all consideration paid on the acquisition of the Special Warrant. In the event the holder is a permitted assignee of the interest of the original Special Warrant subscriber, that permitted assignee shall be entitled to exercise the rights of rescission and refund granted hereunder as if the permitted assignee was the original subscriber. The foregoing is in addition to any other right or remedy available to a holder of a Special Warrant under section 131 of the Securities Act (British Columbia) and comparable requirements of the province of Ontario, or otherwise at law. 15 CERTIFICATE OF IVANHOE MINES LTD. Dated: December 17, 2003 This short form prospectus, together with the documents incorporated herein by reference, constitutes full, true and plain disclosure of all material facts relating to the securities being offered by this short form prospectus as required by the securities laws of the province of British Columbia and Ontario. "Robert M. Friedland" "Pierre Masse" Chief Executive Officer Chief Financial Officer On behalf of the Board of Directors "R. Edward Flood" "David Huberman" Director Director 16 CONSENT OF DELOITTE AND TOUCHE LLP We have read the short form prospectus of Ivanhoe Mines Ltd. (the "Company) dated December 17, 2003 relating to Common Shares and share purchase warrants to be issued on exercise of Special Warrants. We have complied with Canadian generally accepted standards for an auditor's involvement with offering documents. We consent to the incorporation by reference in the above-mentioned short form prospectus of our report to the shareholders of the Company on the consolidated balance sheets as at December 31, 2002 and 2001 and the consolidated statements of operations, shareholders' equity and cash flows for each of the years then ended. Our report is dated March 14, 2003. (Signed) Deloitte & Touche LLP Chartered Accountants Vancouver, British Columbia December 17, 2003 [AMEC LOGO] The following sentences will be added to AMEC's standard disclaimer currently included in the Far North Report dated August, 2003. This report is intended to be used by the Ivanhoe Mines Ltd. ("Ivanhoe") subject to the terms and conditions with AMEC E&C Services Ltd. That contract permits Ivanhoe to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities laws, any other use of this report by any third party is at that party's sole risk. AMEC E&C Services Limited 111 Dunsmuir Street. Suite 400 Vancouver, British Columbia Canada V6B 5W3 Tel +1 604 664 4315 Fax +1 604 669 9516 www.arnec.com UNDERWRITING AGREEMENT December 8, 2003 Ivanhoe Mines Ltd. Suite 654, 999 Canada Place Vancouver, British Columbia V6C 3E1 Attention: Robert M. Friedland Chairman and Chief Executive Officer Dear Sirs/Mesdames: HSBC Securities (Canada) Inc. ("HSBC"), GMP Securities Ltd. ("GMP") and CIBC World Markets Inc., as co-lead underwriters (with HSBC and GMP as joint bookrunners), and UBS Securities Canada Inc. (collectively, the "Underwriters" and individually an "Underwriter") understand that Ivanhoe Mines Ltd. (the "Company") proposes to issue and sell 12,500,000 units of the Company (the "Offered Units") at a price of $10.50 per Offered Unit for aggregate gross proceeds of $131,250,000. Each Offered Unit will consist of one common share in the capital of the Company ("Common Share") and one-half of one Common Share purchase warrant. Each whole warrant (a "Warrant") will entitle the holder to purchase one Common Share (a "Warrant Share") at a price of $12.00 until the date that is one year from the Closing Date (as defined herein) and, thereafter, at a price of $12.50 until the date that is two years from the Closing Date. The certificates representing the Warrants will be in a form satisfactory to the Company and the Underwriters, acting reasonably, and consistent with the terms of this Agreement and a Warrant Indenture to be dated as of the Closing Date between the Company and CIBC Mellon Trust Company, as indenture trustee (the "Warrant Indenture"). Subject to the terms and conditions contained herein, the Underwriters hereby severally, but not jointly or jointly and severally, offer and agree to purchase the Offered Units, in the respective percentages set forth in section 24 hereof, and the Company hereby agrees to issue and sell to the Underwriters, all but not less than all of the Offered Units at the purchase price of $10.50 per Offered Unit, for an aggregate purchase price of $ 131,250,000. The Company understands that although this Agreement is presented on behalf of the Underwriters as purchaser, the Underwriters may arrange for substituted purchasers (the "Substituted Purchasers") for the Units in connection with the private placements of the Units in the United States only in accordance with United States securities laws and the provisions of this Agreement and, without limiting the foregoing, specifically Section 16 of this Agreement. It is further understood that the Underwriters agree to purchase or cause to be purchased the Offered Units, and if the Over-Allotment Option (as defined herein) is exercised, the Additional Units (as defined herein), being issued by the Company and that this commitment is not subject to the Underwriters being able to arrange Substituted Purchasers. Each Substituted Purchaser shall purchase Offered Units and Additional Units at the offering price per Unit set forth in the paragraphs above, and to the extent that Substituted Purchasers purchase Offered Units and the Additional Units, the obligations of the Underwriters to do so will be reduced by the number of -2- Units purchased by the Substituted Purchasers from the Company. Any reference in this Agreement hereafter to "purchasers" shall be taken to be a reference to the Underwriters, as the initial committed purchasers, and to the Substituted Purchasers, if any. TERMS AND CONDITIONS The following are additional terms and conditions of the Agreement between the Company and the Underwriters: 1. DEFINITIONS. Where used in this Agreement, unless the context otherwise requires, the following terms shall have the following meanings: (a) "Additional Units" has the meaning ascribed thereto in section 5; (b) "affiliate" means affiliate as defined under the Securities Laws or any of them; (c) "Agreement" means the agreement resulting from the acceptance by the Company of the offer made by the Underwriters herein; (d) "ASX" means the Australian Stock Exchange Limited; (e) "business day" means a day other than a Saturday, a Sunday or a statutory holiday in Vancouver, British Columbia; (f) "Closing Date" means December 19, 2003 or such earlier or later date as the Company and the Underwriters may agree, but in no event no later than January 23, 2004; (g) "Common Shares" mean common shares in the capital of the Company; (h) "Company" means Ivanhoe Mines Ltd.; (i) "Eligible Issuer" means an issuer which meets the eligibility criteria and has complied with the requirements of Nl 44-101 so as to allow it to distribute securities using a short form prospectus; (j) "Environmental Authority" has the meaning ascribed thereto in section 1l(z); (k) "Environmental Laws" has the meaning ascribed thereto in section 1l(z); (1) "Environmental Permits" has the meaning ascribed thereto in section 1l(aa); (m) "Final Prospectus" means the (final) short form prospectus of the Company qualifying the distribution of the Units in all of the Qualifying Provinces; (n) "Financial Statements" means the audited consolidated balance sheets of the Company as at December 31, 2002 and December 31, 2001 and the consolidated statements of operations, shareholders' equity and cash flows of the Company for the years ended December 31, 2002 and December 31, 2001, together with the interim consolidated balance sheet of the Company as at September 30, 2003 and -3- the interim consolidated statements of operations, shareholders' equity and cash flows of the Company for the nine month periods ended September 30, 2003 and September 30, 2002; (o) "Hazardous Substances" has the meaning ascribed thereto in section 1l(z); (p) "Information Record" means the documents incorporated by reference in the Final Prospectus; (q) "material change" means a material change as defined under the Securities Laws or any of them or, where undefined under the applicable securities laws of a jurisdiction, means a change in the business, operations or capital of the Company or any of its Subsidiaries that would reasonably be expected to have a significant effect on the market price or value of any of the Company's securities and includes a decision to implement such a change made by the board of directors or senior management of the Company; (r) "material fact" means a material fact as defined under the Securities Laws or any of them or, where undefined under the applicable securities laws of a jurisdiction, means a fact that significantly affects, or would reasonably be expected to have a significant effect on, the market price or value of the Company's securities; (s) "misrepresentation" means a misrepresentation as defined under the Securities Laws or any of them or, where undefined under the applicable securities laws of a jurisdiction, means: (i) an untrue statement of a material fact, or (ii) an omission to state a material fact that is required to be stated or that is necessary to make a statement not misleading in the light of the circumstances in which it was made; (t) "NASDAQ" means The NASDAQ Stock Market; (u) "NI 43-101" means National Instrument 43-101 Standards of Disclosure for Mineral Projects; (v) "NI 44-101" means National Instrument 44-101 Short Form Prospectus Distributions; (w) "Offered Units" has the meaning ascribed thereto in the first paragraph of this Agreement; (x) "Optional Closing Time" has the meaning ascribed thereto in section 5; (y) "Over-Allotment Option" has the meaning ascribed thereto in section 5; (z) "Preliminary Prospectus" means the preliminary short form prospectus of the Company dated December 5, 2003 prepared in connection with the qualification of the distribution of the Units in the Qualifying Provinces, including any amendments thereto filed with the Securities Commissions; -4- (aa) "Principal Subsidiaries" means, collectively, those Subsidiaries listed in Schedule "A"; (bb) "Qualifying Provinces" means, collectively, each of the provinces of Canada except Quebec; (cc) "Securities Commissions" means, collectively, the securities commissions or similar regulatory authorities in each of the Qualifying Provinces; (dd) "Securities Laws" means, collectively, the applicable securities laws of each of the Qualifying Provinces, including the respective rules, regulations, rulings and orders made thereunder; (ee) "Subsidiaries" means all subsidiaries of the Company within the meaning of the Securities Laws or any of them, and "Subsidiary" means any one of such subsidiaries; (ff) "Supplementary Material" means, collectively, any amendment to the Final Prospectus, any amended or supplemental prospectus or ancillary materials, information or documents filed by or on behalf of the Company under the Securities Laws relating to the qualification for distribution of, inter alia, the Units hereunder; (gg) "Time of Closing" means 5:30 a.m. (Vancouver time) on the Closing Date, or such other time on the Closing Date as the Company and the Underwriters may agree upon; (hh) "Trust Company" means CIBC Mellon Trust Company; (ii) "TSX" means The Toronto Stock Exchange; (jj) "U.S. Private Placement Memorandum" means the U.S. Placement Memorandum of the Company dated December 12, 2003 and any amendment thereto, prepared in accordance with U.S. securities laws; (kk) "Underwriter" and "Underwriters" have the respective meanings ascribed thereto in the first paragraph of this Agreement; (11) "Units" means, collectively, the Offered Units and the Additional Units; (mm) "Warrant Indenture" has the meaning ascribed thereto in the first paragraph of this Agreement; (nn) "Warrant Shares" has the meaning ascribed thereto in the first paragraph of this Agreement; and (oo) "Warrants" has the meaning ascribed thereto in the first paragraph of this Agreement. -5- Capitalized terms used but not defined herein have the meanings ascribed to them in the Final Prospectus. Any reference in this Agreement to a section, subsection, paragraph or subparagraph shall refer to a section, subsection, paragraph or subparagraph, as the case may be, of this Agreement, All words and personal pronouns relating thereto shall be read and construed in such manner as the number and gender of the party or parties referred to in each case require and the verb shall be construed as agreeing with the required word and/or pronoun. 2. OFFERING IN THE UNITED STATES. Offers to purchase Units in the United States shall be made only by affiliates of the Underwriters registered to sell securities in the United States or by purchasers substituted for such affiliates by the Underwriters, and only in accordance with United States securities laws and the provisions of this Agreement. 3. ATTRIBUTES OF THE UNITS. The Company covenants and agrees that the Common Shares and Warrants comprising the Units and the Warrant Shares to be issued upon the due exercise of the Warrants shall be duly and validly issued by the Company and, when issued, shall have rights, privileges, restrictions and conditions that conform in all material respects to the rights, privileges, restrictions and conditions set forth in the Final Prospectus. 4. QUALIFICATION OF UNITS, The Company hereby covenants and agrees that: (a) the Company shall, as soon as possible and, in any event, not later than December 12, 2003 (or such later date as may be agreed to in writing by the Underwriters and the Company) have prepared and filed the Final Prospectus with each of the Securities Commissions under the Securities Laws, and shall have obtained receipts therefor dated the date of filing, and shall have taken all other steps and proceedings and fulfilled and complied with all legal requirements that may be necessary in order to qualify the Units for distribution in each of the Qualifying Provinces by the Underwriters and other persons who are registered in a category permitting them to distribute the Units under the Securities Laws; (b) until the distribution of the Units is completed, the Company shall promptly take or cause to be taken all such additional steps and proceedings and fulfil and comply with all requirements from time to time required under the Securities Laws to continue to qualify the distribution of the Units or, in the event that the Units have, for any reason, ceased to so qualify, to so qualify again the Units; and (c) the Company shall, as soon as possible and in any event by the Closing Date, fulfill and comply with, to the satisfaction of the Underwriters, acting reasonably, all legal requirements to be fulfilled or complied with by the Company to enable the Units to be lawfully offered for sale and sold in the United States in accordance with section 16. 5. OVER-ALLOTMENT OPTION. The Company hereby grants to the Underwriters, in the respective percentages set forth in section 24, an option (the "Over-Allotment Option") to purchase and offer for sale to the public pursuant hereto up to an additional 1,800,000 units of -6- the Company (the "Additional Units"), each Additional Unit consisting of one Common Share and one-half of one Warrant, for $10.50 per Additional Unit. Delivery of and payment for any Additional Units shall be made at the offices of Goodmans, Vancouver, British Columbia, at such time on such date as set out in the written notice of HSBC referred to below (the "Optional Closing Time"), which Optional Closing Time may occur on the Closing Date but shall in no event occur earlier than the Closing Date nor earlier than two nor later than five business days after the delivery of a written notice by HSBC on behalf of the Underwriters to the Company setting out the number of Additional Units to be purchased by the Underwriters, which notice must be received by the Company not later than 5:00 p.m. (Vancouver time) on the day that is 30 days after the Closing Date. Upon the furnishing of such notice, the Underwriters shall be committed to purchase severally, but not jointly or jointly and severally, and the Company shall be committed to issue and sell in accordance with, and subject to the provisions hereof, that number of Additional Units as set out in the written notice by HSBC. Additional Units may be purchased by the Underwriters only for the purpose of satisfying over-allotments made in connection with the offering of the Offered Units and for market stabilization as permitted pursuant to Securities Laws. 6. DISTRIBUTION. (a) The Underwriters will not solicit, directly or indirectly, offers to purchase or sell the Units so as to require registration thereof or filing of a prospectus or other similar document with respect thereto under the laws of any jurisdiction other than the Qualifying Provinces. Notwithstanding the foregoing, the Underwriters may offer the Units for sale in the United States subject to and in compliance with section 16, and in such other jurisdictions (including Australia) as the Underwriters may determine, provided that the offer and sale of the Units in such jurisdictions would not result in any registration or prospectus filing or similar requirements under the laws of such jurisdictions. The Underwriters shall notify the Company when, in the Underwriters' opinion, the distribution of the Units has been completed and provide the Company, in writing, with a breakdown of the number of Units distributed in each of the Qualifying Provinces where such breakdown is required by the Securities Commission of such Qualifying Province. (b) No Underwriter will be liable under section 6(a) or otherwise under this Agreement with respect to a default by any of the other Underwriters. 7. UNDERWRITERS' FEE. In consideration for the Underwriters' services in: (a) assisting in the preparation of the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum and any Supplementary Material; (b) forming and managing any selling, banking or other groups in connection with the distribution of the Units, should the Underwriters determine to do so; (c) distributing the Units, both directly and through other registered dealers and brokers, in the Qualifying Provinces and other jurisdictions; -7- (d) offering the Units in the United States to Institutional Accredited Investors (as hereinafter defined) as Substituted Purchasers, in accordance with Regulation D and/or Section 4(2) of the U.S. Securities Act (as hereinafter defined); (e) arranging marketing information meetings; and (f) all other matters in connection with the issue and sale of the Units in the Qualifying Provinces, the United States and other jurisdictions as agreed among the Company and the Underwriters, the Company agrees to pay, on the basis of the number of Units sold by them, to the Underwriters by wire transfer or other mutually acceptable method, at the Time of Closing (and, if applicable, at the Optional Closing Time) a commission fee of 4.5% of the total gross proceeds received by the Company. 8. DELIVERY OF FINAL PROSPECTUS AND RELATED MATTERS. (a) The Company shall cause to be delivered to the Underwriters, at such delivery points as HSBC, on behalf of the Underwriters, may reasonably request, as soon as possible but in any event no later than one day after the date of issuance of the receipt for the Final Prospectus in the Province of British Columbia and thereafter from time to time during the distribution of the Units, as many commercial copies of the Final Prospectus as HSBC may reasonably request. The Company shall similarly cause to be delivered to HSBC on behalf of the Underwriters, as promptly as practicable, commercial copies of any Supplementary Material required to be delivered to purchasers or prospective purchasers of the Units. In addition, the Company shall as promptly as practicable cause to be delivered to the Underwriters such number of copies of the U.S. Private Placement Memorandum as the Underwriters shall reasonably require. The Company has heretofore delivered to the Underwriters copies of the Preliminary Prospectus as approved, signed and certified as required by the Securities Laws. Each delivery of the Preliminary Prospectus, the Final Prospectus, any Supplementary Material or the U.S. Private Placement Memorandum shall have constituted or constitute, as the case may be, consent by the Company to the use by the Underwriters and members of their selling group (if any) of such documents in connection with the distribution and sale of the Units in all of the Qualifying Provinces and, where applicable, the United States and other jurisdictions; (b) Each delivery of the Preliminary Prospectus, the Final Prospectus, any Supplementary Material and the U.S. Private Placement Memorandum by the Company to the Underwriters in accordance with subsection 8(a) shall constitute a representation and warranty of the Company to the Underwriters that, at the respective times of such delivery: (i) the information and statements (except information and statements relating solely to and supplied by the Underwriters) contained therein (including the information and statements in documents incorporated by reference therein): -8- (A) are true and correct in all material respects and contain no misrepresentation; and (B) constitute full, true and plain disclosure of all material facts relating to the Units and to the Company and its Subsidiaries; and (ii) no material fact has been omitted therefrom which is required to be stated therein or is necessary to make the statements therein not misleading in the light of the circumstances in which they are made; and (iii) such document complies in all material respects with the Securities Laws and, in the case of the U.S. Private Placement Memorandum, U.S. securities laws; and (c) The Company shall deliver to the Underwriters, without charge, in Vancouver, British Columbia, prior to the filing of the Final Prospectus: (i) a copy of the Final Prospectus, signed as required by the Securities Laws of each of the Qualifying Provinces; (ii) a copy of the U.S. Private Placement Memorandum; (iii) a copy of any other document required to be filed by or on behalf of the Company under the Securities Laws of any of the Qualifying Provinces in connection with the public offering of the Units; (iv) evidence reasonably satisfactory to the Underwriters that the application to list the Common Shares and Warrants comprising the Units and the Warrant Shares on the TSX has been conditionally accepted by the TSX; (v) a long form comfort letter dated the date of the Final Prospectus from the Company's auditors, addressed to the Underwriters, in form and substance satisfactory to the Underwriters and their counsel and with reference to such matters as they may reasonably request, including: (A) as to the auditors' opinion to the effect that the Financial Statements examined by them comply in all material respects with all applicable accounting requirements, including, without limitation, Canadian generally accepted accounting principles and the applicable accounting requirements of the Securities Laws; and (B) as to the verification of the financial information, statistical and accounting data (the "Financial Information") contained in the Final Prospectus and as to matters involving changes or developments since the respective dates as of which specified Financial Information is given in the Final Prospectus, to a date not more than two business days prior to the date of such letter. -9- A similar letter from the Company's auditors shall be delivered to the Underwriters with respect to any Supplementary Material concurrently with the execution thereof; and (vi) such other documents as may reasonably be requested by the Underwriters or their counsel. 9. MATERIAL CHANGE. (a) The Company shall, from the date hereof until the completion of the distribution of the Units, promptly upon becoming aware thereof, inform the Underwriters in writing of particulars of: (i) any material change (actual, anticipated, proposed or prospective, whether financial or otherwise) in the business, affairs, operations, assets, liabilities (contingent or otherwise), prospects, financial position, capital or control of the Company or any of the Subsidiaries; (ii) any material fact which has arisen or has been discovered and which would have been required to be stated in the Preliminary Prospectus, Final Prospectus, U.S. Private Placement Memorandum or any Supplementary Material had such fact arisen or been discovered on or prior to the date of the Preliminary Prospectus, Final Prospectus, the U.S. Private Placement Memorandum or any such Supplementary Material; or (iii) any change in any material fact contained in the Preliminary Prospectus, Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material or any event or state of facts that has occurred after the date hereof which, in any case, is of such a nature as to render the Preliminary Prospectus, Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material untrue or misleading in any material respect or to result in any misrepresentation in the Preliminary Prospectus, Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material, including as a result of the Preliminary Prospectus, Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make any statement therein not false or misleading in the light of the circumstances in which it was made, or which would result in the Preliminary Prospectus, Final Prospectus or any Supplementary Material not complying with any Securities Laws or which would result in the U.S. Private Placement Memorandum not complying with any U.S. Securities laws; (b) The Company shall comply with Section 67 of the Securities Act (British Columbia) and with the comparable provisions of the other Securities Laws, and shall prepare and file promptly at the request of the Underwriters any Supplementary Material which, in the reasonable opinion of the Underwriters and their counsel may be necessary or advisable in order to comply with, and shall -10- otherwise comply with, all legal requirements necessary to continue to qualify the Units for distribution in each of the Qualifying Provinces; and (c) In addition to the provisions of subsections 9(a) and 9(b), the Company shall in good faith discuss with the Underwriters any change, event or fact contemplated in subsections 9(a) and 9(b) which is of such a nature that there may be reasonable doubt as to whether notice should be given to the Underwriters under subsection 9(a), and shall consult with the Underwriters with respect to the form and content of any amendment proposed to be filed by the Company, it being understood and agreed that no such amendment shall be filed with any Securities Commission prior to the review and approval thereof by the Underwriters and their counsel, acting reasonably. 10. REGULATORY APPROVALS. (a) The Company shall file or cause to be filed with the TSX all necessary documents and shall take or cause to be taken all necessary steps to ensure that the Common Shares and Warrants comprising the Units and the Warrant Shares have been approved for listing and posting for trading on the TSX prior to the Closing Date, subject only to satisfaction by the Company of the conditions imposed by such exchange ("Standard Listing Conditions") as set out in its conditional approval letter dated December 12, 2003 or otherwise as required in the normal course; and (b) The Company shall make all necessary filings and shall obtain all regulatory and other consents and approvals required in connection with the transactions contemplated herein. 11. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to each of the Underwriters as of the date hereof and as of the Closing Date, and acknowledges that the Underwriters are relying upon such representations and warranties, that: (a) the Company and each of the Subsidiaries: (i) is a corporation duly incorporated, amalgamated or continued and validly existing under the laws of its jurisdiction of incorporation, amalgamation or continuation; (ii) is duly qualified to carry on its business and is in good standing in its jurisdiction of incorporation, amalgamation or continuation and in each jurisdiction in which the conduct of its business or the ownership, leasing or operation of its property and assets requires such qualification, except to the extent that the failure to be so qualified would not have a material adverse effect upon the Company and its Subsidiaries, taken as a whole; and (iii) has all requisite corporate power and authority to carry on its business as now conducted and as currently proposed to be conducted, to own, lease and operate its property and assets; -11- (b) the Company and each of its Subsidiaries has conducted and is conducting its business in compliance in all material respects with all applicable laws, rules and regulations of each jurisdiction in which its business is carried on, and holds all necessary licences, permits, approvals, consents, certificates, registrations and authorizations, whether governmental, regulatory or otherwise, to enable its business to be carried on as now conducted and its property and assets to be owned, leased and operated, and the same are validly existing and in good standing, except to the extent that non-compliance with any such laws, rules or regulations, or failure to hold any such licences, permits, or approvals, consents, certificates, registrations and authorizations would not have a material adverse effect upon the Company and its Subsidiaries, taken as a whole; (c) except as disclosed in the Final Prospectus and the Information Record, (i) the Company's direct or indirect ownership interest in each Subsidiary is held free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances, claims or demands whatsoever, (ii) no person, firm, or company has any agreement, or option or right or privilege (whether pre-emptive or contractual) capable of becoming an agreement for the purchase of all or any part of the securities representing such ownership interest, (iii) all such securities have been validly issued and are outstanding as fully paid and non-assessable, (iv) each Subsidiary is directly or indirectly beneficially wholly-owned by the Company, and (v) except for the securities of the Subsidiaries, neither the Company nor its Subsidiaries own any securities or ownership interest in any other person which are material to the Company and its Subsidiaries, taken as a whole; (d) the Company has no material subsidiaries other than the Principal Subsidiaries listed in Schedule "A" attached hereto; (e) the Company has all requisite corporate power and authority to enter into this Agreement and the Warrant Indenture, and this Agreement and the Warrant Indenture and the performance of the terms hereof and thereof, the transactions contemplated hereby and thereby and the granting of the Over-Allotment Option, the issuance and sale by the Company of the Units and the Common Shares and Warrants comprising the Units and the issuance of the Warrant Shares upon exercise of the Warrants have been duly authorized by all necessary corporate action of the Company, and each of this Agreement and the Warrant Indenture has been duly executed and delivered by the Company and is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, moratorium or similar laws affecting creditors' rights generally and except as limited by the application of equitable remedies which may be granted in the discretion of a court of competent jurisdiction and that enforcement of the rights to indemnity and contribution set out in this Agreement or in the Warrant Indenture, as applicable, may be limited by applicable law; (f) at the Time of Closing and upon payment for the Offered Units, the authorized capital of the Company will consist of an unlimited number of Common Shares and an unlimited number of preferred shares without par value, of which at such -12- time, after giving effect to the issuance of the Offered Units by the Company, no preferred shares and 262,083,819 Common Shares will be issued and outstanding as fully paid and non-assessable shares; (g) other than as disclosed in the Final Prospectus and the Information Record or as set out in Schedule "B", no person, firm or corporation has any agreement, option, right or privilege, whether pre-emptive, contractual or otherwise, capable of becoming an agreement for the purchase, acquisition, subscription for or issuance of any of the unissued shares of the Company or any of the Subsidiaries, or other securities convertible, exchangeable or exercisable for shares of the Company or any of the Subsidiaries; (h) at the time of delivery thereof to the Underwriters: (i) the Preliminary Prospectus fully complied with, and the Final Prospectus, the U.S. Private Placement Memorandum, and all Supplementary Material will fully comply with, the requirements of the Securities Laws and United States securities laws, as applicable; (ii) the Preliminary Prospectus provided and the Final Prospectus, the U.S. Private Placement Memorandum and all Supplementary Material will provide, full, true and plain disclosure of all material facts relating to the Company and to the Units; and (iii) the Preliminary Prospectus did not contain and the Final Prospectus, the U.S. Private Placement Memorandum and all Supplementary Material will not contain, any misrepresentation or any untrue, false or misleading statement of a material fact or omit to state any material fact required to be stated therein or necessary to make any statement therein, in the light of the circumstances in which it is made, not false or misleading, provided, however that the foregoing representations, warranties and agreements of the Company do not and will not apply with respect to information and statements contained in the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum or Supplementary Material which relate solely to the Underwriters for inclusion in the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum or Supplementary Material; (i) the execution and delivery of this Agreement and the Warrant Indenture, the performance of the terms hereof and thereof by the Company and the issuance, sale and delivery of the Units and the Common Shares and Warrants comprising the Units and the consummation of the other transactions contemplated herein and in the Final Prospectus: (i) do not require the consent, approval, authorization, registration or qualification of or with any governmental authority, stock exchange, securities commission or other third party, except such as have been obtained or will be obtained prior to the Time of Closing, and such as may -13- be required (and shall be obtained as provided herein prior to the Time of Closing) under applicable Securities Laws; and (ii) do not and will not result in a breach of, and are not and will not be in conflict with, or constitute a default under, and do not and will not create a state of facts which, after notice or lapse of time or both, will result in a breach of or constitute a default under, and do not and will not conflict with: (A) any of the terms, conditions or provisions of the constating documents of the Company or resolutions of the securityholders, directors, or any committee of directors of the Company, (B) any mortgage, note, indenture, contract, agreement (written or oral), instrument, lease, license, or other document to which the Company is a party or to which it is subject or by which it is bound; or (C) any laws applicable to the Company and the sale of the Units or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company; (j) the Units and the Warrants have been validly created and issued by the Company and the Common Shares comprising part of the Units and the Warrant Shares have been duly allotted and reserved for issuance by all necessary corporate action on the part of the Company and shall, upon receipt of consideration therefor and, in the case of the Warrant Shares, upon the due exercise of the Warrants in accordance with their terms, be issued as fully-paid and nonassessable shares in the capital of the Company, and all statements made in the Final Prospectus describing the Units, the Common Shares and the Warrants are accurate; (k) the Company is, and will at the Time of Closing be, an Eligible Issuer and a "reporting issuer", not in default of its obligations under the securities laws of each of the provinces of Canada, and no material change relating to the Company (except in respect of this offering) has occurred with respect to which the requisite material change report has not been filed under the securities laws of such provinces and no such disclosure has been made on a confidential basis; (1) there has not been any reportable event (within the meaning of National Policy Statement 31 of the Canadian Securities Administrators) with the auditors of the Company; (m) the auditors of the Company who audited the financial statements for the year ended December 31, 2002 and who provided their audit report thereon are independent public accountants; (n) there has never been a reportable disagreement with the present or any former auditors of the Company; -14- (o) the currently issued and outstanding Common Shares of the Company are listed and posted for trading on the TSX and are quoted on the ASX and on NASDAQ, and the Company is in compliance with all rules and policies of such exchanges, and further, that Common Shares of the Company are quoted ED securities under and as defined in section 111AM of the Corporations Act 2001 (Commonwealth of Australia) and have been so at all times in the 12 months prior to the Closing Date; (p) the Common Shares and Warrants comprising the Units and the Warrant Shares have been approved for listing on the TSX, subject to compliance with the Standard Listing Conditions; (q) the Trust Company, at its principal offices in the city of Vancouver, has been duly appointed transfer agent and registrar for the Common Shares of the Company, and has been duly appointed as trustee and registrar under the Warrant Indenture; (r) except as provided herein, there is no person, firm or corporation acting or purporting to act for the Company entitled to any brokerage or finder's fee in connection with this Agreement or any of the transactions contemplated hereunder, and in the event any person, firm or corporation acting or purporting to act for the Company becomes entitled at law to any fee from the Underwriters, the Company covenants to indemnify and hold harmless the Underwriters with respect thereto and with respect to all costs reasonably incurred in the defense thereof; (s) other than as disclosed in the Final Prospectus and the Information Record, since December 31,2002, (i) there has been no material change (actual, anticipated, proposed or prospective, whether financial or otherwise) in the business, affairs, operations, assets, liabilities (contingent or otherwise) prospects, financial position, capital or control of the Company or the Subsidiaries, taken as a whole; (ii) the Company and the Subsidiaries have carried on their respective businesses in the ordinary course and there has been no transaction entered into by the Company or its Subsidiaries which is material to the Company and Subsidiaries, taken as a whole, other than those in the ordinary course of business; (iii) the Company has not incurred or surrendered any right of material value; and (iv) there has been no material change in the capital or long term debt of the Company or the Subsidiaries, taken as a whole; (t) other than as disclosed in the Final Prospectus and the Information Record: -15- (i) the Company and its Subsidiaries are not liable for the debts, liabilities or other obligations of any third party (other than the Subsidiaries) whether by way of guarantee or indemnity or other contingent or indirect obligation; (ii) all indebtedness of the Company and its Subsidiaries is being paid in the ordinary course of business; and (iii) the Company and its Subsidiaries are not a party to any agreement restricting the Company or any Subsidiary from engaging in any line of business which the Company or any of its Subsidiaries currently engages or proposes to engage in or competing with any other person in any business in which the Company or any of its Subsidiaries currently engages or proposes to engage in; (u) other than as disclosed in the Final Prospectus and the Information Record, the Company has not, since December 31, 2002, directly or indirectly declared or paid any dividend or declared or made any other distribution on any of its securities of any class, or directly or indirectly, redeemed, purchased or otherwise acquired any of its securities, or agreed to do any of the foregoing; (v) other than as disclosed in the Final Prospectus and the Information Record or as disclosed in writing to the Underwriters, the Company has not entered into nor has any present intention to enter into any agreement to acquire any securities in any other corporation or entity or to acquire or lease any other business operations which are material to the business and operations of the Company and its Subsidiaries, taken as a whole; (w) other than as disclosed in the Final Prospectus and the Information Record, there is no action, suit, proceeding or investigation in respect of the Company and the Subsidiaries, taken as a whole, pending or, to the knowledge of the Company or its directors and officers, threatened against or affecting the Company and the Subsidiaries, taken as a whole, at law or in equity or before or by any federal, provincial, municipal government, court or other governmental department, commission, board or agency, domestic or foreign, which could in any way materially and adversely affect the Company or the Subsidiaries, taken as a whole, or the condition (financial or otherwise) of the Company or the Subsidiaries, taken as a whole, or which questions the validity of the issue and sale of the Units or of any action taken or to be taken by the Company pursuant to or in connection with this Agreement; (x) except in respect of the Sabetaung & Kyisintaung mine's insurance coverage, the assets of the Company and its Principal Subsidiaries and their business and operations are insured against loss or damage with responsible insurers on a basis consistent with insurance obtained by reasonably prudent participants in comparable businesses, and such coverage is in full force and effect, and the Company or Principal Subsidiary have not failed to promptly give any notice or present any material claim thereunder; -16- (y) the Company is in material compliance with all laws respecting employment and employment practices, terms and conditions of employment, pay equity and wages, except where non-compliance would not have a material adverse effect on the assets or properties, business, results of operations, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, and has not engaged in any unfair labour practice; (z) the Company and the Subsidiaries have been and are in compliance with all applicable federal, state, municipal and local laws, statutes, ordinances, by-laws, regulations, orders, directives and decisions (the "Environmental Laws") rendered by any ministry, department or administrative or regulatory agency ("Environmental Authority") relating to the protection of human health and safety, the environment or pollutants, contaminants, chemicals, or industrial, toxic or hazardous wastes or substances ("Hazardous Substances") and no condition exists or event has occurred which, with or without notice or the passage of time or both, would constitute a violation of or give rise to liability under any applicable Environmental Laws, and there are no environmental audits, evaluations, assessments or studies relating to the Company or its Subsidiaries; (aa) the Company and each of the Subsidiaries has obtained all material licences, permits, approvals, consents, certificates, registrations and other authorizations (the "Environmental Permits") required for the operation of its business, or any part thereof. Each Environmental Permit is valid, subsisting and in good standing and the Company is not in default or breach of any Environmental Permit and no proceeding is pending or threatened to revoke, amend or limit any Environmental Permit; (bb) neither the Company nor any of the Subsidiaries has used or permitted to be used any of its assets or facilities, whether owned, leased, occupied, controlled or licensed or which it owned, leased, occupied, controlled or licensed at any prior time, to generate, manufacture, process, distribute, use, treat, store, dispose of, transport or handle any Hazardous Substance except in compliance with the Environmental Permits and all applicable Environmental Laws; (cc) neither the Company nor any of the Subsidiaries has received any notice of, or been prosecuted for, an offence alleging violation of or non-compliance with any Environmental Law, nor has it settled any allegation of violation or non-compliance short of prosecution. The Company is not aware of any orders of Environmental Authorities relating to environmental matters requiring any work, repairs, construction or capital expenditures to be made with respect to the business or any property, facilities or assets (whether currently owned, leased, occupied, controlled or licensed or owned, leased, occupied, controlled or licensed at any time prior to the date hereof) of the Company or any of the Subsidiaries; (dd) except in compliance with the Environmental Permits and all Environmental Laws, neither the Company nor any of the Subsidiaries has caused, allowed or permitted, or has any knowledge of, the release of any Hazardous Substance into -17- the environment, in any manner whatsoever, or the presence of any Hazardous Substance on, under, around or from any of its properties, facilities or other assets (whether owned, leased, occupied, controlled or licensed), or any property, facility or other asset which it owned, controlled, occupied, licensed or leased at any time prior to the date hereof, or any such release or presence on or from a property, facility or other asset owned, leased, occupied, managed, controlled or licensed by third parties but with respect to which the Company or any of the Subsidiaries is or may reasonably be alleged to have liability. All Hazardous Substances used in whole or in part by the Company or any of the Subsidiaries or resulting from their respective businesses have been disposed of, treated or stored in compliance with all Environmental Permits and all Environmental Laws; (ee) neither the Company nor any of the Subsidiaries has received any notice from any Environmental Authority that its business or the operation of any of its properties, facilities or other assets is in violation of any Environmental Law or any Environmental Permit or that it is responsible (or potentially responsible) for the clean up of any Hazardous Substances at, on or beneath any of its property, facilities or other assets (whether currently owned, leased, occupied, managed, controlled or licensed, or owned, leased, occupied, managed, controlled or licensed at any time prior to the date hereof), or at, on or beneath any other land or in connection with any waste or contamination migration to or from any of the Company's or any of the Subsidiaries' properties, facilities or other assets; (ff) neither the Company nor any of the Subsidiaries is the subject of any international, foreign, federal, provincial, municipal or private action, suit, litigation, arbitration proceeding, governmental proceeding, investigation or claim involving a demand for damages or other potential liability with respect to violations of Environmental Laws or Environmental Permits; (gg) no order, ruling or determination having the effect of suspending the sale or ceasing the trading of any securities of the Company has been issued or made by any Securities Commission or stock exchange or any other regulatory authority having jurisdiction over the Company and is continuing in effect and no proceedings for that purpose have been instituted or are pending or, to the best of the Company's knowledge after due inquiry, contemplated or threatened by any such authority or under any applicable securities laws; (hh) other than as disclosed in the Final Prospectus and the Information Record, neither the Company nor any of the Subsidiaries is in material violation of its constating documents or resolutions of its securityholders, directors, or any committee of its directors, or in default in the performance or observance of any material terms, obligation, agreement, covenant or condition contained in any contract, indenture, trust, deed, mortgage, loan agreement, note, lease or other agreement or instrument to which it is a party or by which it or its property may be bound and there exists no state of facts which, after notice or lapse of time or both, or otherwise, would constitute a default under or breach of a material obligation, agreement, covenant or condition of any of such documents and all -18- such contracts, indentures, trusts, deeds, mortgages, loan agreements, notes, leases and other agreements are in good standing; (ii) the Financial Statements are complete and comply with applicable securities laws in all material respects, and fairly present the consolidated financial position of the Company as of the dates and for the periods indicated, and have been prepared in accordance with Canadian generally accepted accounting principles applied on a consistent basis throughout such periods; (jj) each of the Company and the Subsidiaries has duly and on a timely basis filed all tax returns required to be filed by it, has paid all taxes due and payable by it and has paid all assessments and re-assessments and all other taxes, governmental charges, penalties, interest and other fines due and payable by it and which are claimed by any governmental authority to be due and owing, and adequate provision has been made for taxes payable for any completed fiscal period for which tax returns are not yet required to be filed; there are no agreements, waivers or other arrangements providing for an extension of time with respect to the filing of any tax return or payment of any tax, governmental charge or deficiency by the Company or any of the Subsidiaries; there are no actions, suits or proceedings threatened or pending against the Company or any of the Subsidiaries in respect of taxes, governmental charges or assessments and there are no matters under discussion with any governmental authority relating to taxes, governmental charges or assessments asserted by any such authority; (kk) all original minute books and corporate records of the Company and each of its Principal Subsidiaries have been made available to Fasken Martineau DuMoulin LLP, counsel to the Underwriters, in connection with due diligence investigations of the Company and the Principal Subsidiaries, each minute book contained complete documentation in all material respects of all proceedings of the shareholders, the board of directors and all committees of the board of directors of the Company and each of its Principal Subsidiaries for the periods from their respective dates of incorporation, amalgamation or acquisition by the Company, as the case may be, to the date of review thereof by such counsel, and there have been no meetings, resolutions or proceedings since the date of review which are material in the context of the Company and the Subsidiaries, taken as a whole; (ll) the Oyu Tolgoi Project, the Monywa Copper Project and the Savage River Project (each as defined in the Information Record) are the only material mineral projects of the Company; except as disclosed in the Final Prospectus and the Information Record, all mineral licences or other interests in the Oyu Tolgoi Project (as such interests are set out in Schedule "C"), the Monywa Copper Project, the Savage River Project and in all other mineral properties of the Company or the Subsidiaries are owned or held by the Company or the Subsidiaries as owner thereof with good and marketable title, are in good standing, are valid and enforceable, are free and clear of any liens, charges or encumbrances, and no royalty is payable in respect of any of them, and no other property rights are currently necessary for the conduct of the Company's or the Subsidiaries' business; there are no restrictions on the ability of the Company or the -19- Subsidiaries to use, transfer or otherwise exploit any such property rights except as set out in the Final Prospectus and the Information Record, and the Company or the Subsidiaries do not know of any claim or basis for a claim that may adversely affect such rights; (mm) the technical reports relating to the Oyu Tolgoi Project have been prepared in compliance with NT 43-101, by an independent qualified person within the meaning of NI43-101; (nn) all written agreements and other written materials provided to or made available to the Underwriters and their counsel contain no material misrepresentations as of the date provided; (oo) the net proceeds of the offering of the Units will be used by the Company as described in the Final Prospectus; (pp) the Company is not issuing the Offered Units or the Additional Units with the purpose of them being on-sold, whether by the Underwriters or other persons, to retail investors in Australia; (qq) the Company is, and will be until the completion of the distribution of the Units hereunder, subject to the reporting requirements under Section 12 of the U.S. Exchange Act, has filed all reports required to be filed pursuant to Section 13 of the U.S. Exchange Act, and is not in default of its obligations under the U.S. Exchange Act or the Sarbanes Oxley Act of 2002; and (rr) all material written representations and submissions made by or on behalf of the Company to any Securities Commission or stock exchange or any other regulatory authority in furtherance of the filing of the Preliminary Prospectus, the Final Prospectus and any Supplementary Material, other than for written information provided by or in respect of the Underwriters and their affiliates are true and correct in all material respects and contain no misrepresentation. 12. ADDITIONAL COVENANTS OF THE COMPANY. The Company covenants and agrees with the Underwriters that the Company: (a) shall advise the Underwriters promptly after receiving notice thereof, of the time when the Final Prospectus or any Supplementary Material has been filed and receipts therefor have been obtained and will provide evidence satisfactory to the Underwriters of each such filing and issuance of receipts; (b) shall, until the completion of the distribution of the Units, advise the Underwriters promptly after receiving notice or obtaining knowledge thereof, of: (i) the issuance by any Securities Commission or other regulatory authority of any order suspending or preventing the use of the Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material; -20- (ii) the suspension of the qualification of the Units or offering or sale thereof in any of the Qualifying Provinces or the United States; (iii) the institution, threatening or contemplation of any proceeding for any such purposes; or (iv) any requests made by any Securities Commission for amending or supplementing the Final Prospectus or for additional information, and will use its best efforts to prevent the issuance of any such order, and, if any such order is issued, to use its best efforts to obtain the withdrawal thereof as quickly as possible; (c) allow, until completion of the distribution of the Units, the Underwriters and counsel to the Underwriters, acting reasonably, full access to all books, records, documents, agreements and other material of the Company and its Subsidiaries to conduct all due diligence investigations, examinations and inspections which the Underwriters and their counsel, in their opinion, acting reasonably, may require in order to fulfil the Underwriter's obligation to avail themselves of a defence to any claim for misrepresentation in the Final Prospectus or any Supplementary Material and shall be entitled to review and copy such books, records, documents, agreements and other material, inspect properties of the Company and its Subsidiaries, except where copying may be restricted by the terms of the contract, and consult with management of the Company and its Subsidiaries; (d) shall execute or use its reasonable best efforts to procure the execution of all documents and use its reasonable best efforts to take or cause to be taken all such steps as may be reasonably necessary or desirable to fulfil, to the satisfaction of counsel for the Underwriters, acting reasonably, the terms and conditions of this Agreement, including without limitation, the conditions of closing as set out herein and all legal requirements to enable the Underwriters to offer the Units for sale to the public in all of the Qualifying Provinces and on a private placement basis in the United States in accordance with the applicable Securities Laws and U.S. securities laws, and in other jurisdictions in accordance with applicable laws, and shall use its reasonable best endeavours to give a notification to the ASX under Category 1 of the Australian Securities and Investments Commission Class Order [CO 02/1180] at or about the time of issue of the Offered Units and the Additional Units (if any); (e) shall not, without prior consultation with the Underwriters, for the period commencing on the date hereof and expiring on the Closing Date, issue any press release, and for the period expiring on the Optional Closing Time, provide to HSBC a copy of every press release issued immediately upon issuance thereof; (f) during the period commencing on the date hereof and ending on the day which is 90 days following the Closing Date, the Company shall not, without the prior written consent of HSBC, on behalf of all of the Underwriters (which consent shall not be unreasonably withheld), reserve, allot, create or issue any shares or securities convertible, exchangeable or exercisable for shares of the Company, or -21- agree or become bound to do so or publicly announce any intention to do so, other than: (i) the securities to be issued as contemplated hereby; (ii) options issuable under, and Common Shares issuable pursuant to the exercise of options issued under, the Company's stock option plan; (iii) Common Shares issuable pursuant to the exercise of outstanding warrants or other convertible securities or similar rights as disclosed in the Final Prospectus and Information Record or Schedule "B" hereto; or (iv) the issuance of securities in connection with property or share acquisitions in the normal course of business, 13. CONDITIONS OF CLOSING IN FAVOUR OF THE UNDERWRITERS. The Underwriters shall not be obligated to purchase the Units as herein provided unless, at or prior to the Time of Closing, each of the following conditions has been satisfied, it being understood that the conditions are for the sole benefit of the Underwriters and may be waived in writing, in whole or in part, by the Underwriters in their discretion: (a) the Company has complied with all the covenants and satisfied all the terms and conditions of this Agreement on its part to be complied with and satisfied at or prior to the Time of Closing; (b) the representations and warranties of the Company contained herein including, without limitation, those arising by reason of the delivery of the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material, continue to be true and correct as at the Time of Closing, after giving effect to the transactions contemplated hereby; (c) all necessary documents have been filed and all requisite proceedings have been taken and all other legal requirements have been fulfilled under the laws of each of the Qualifying Provinces to qualify the sale of the Units to the public in each of the Qualifying Provinces through persons who are registered under applicable legislation; (d) the Common Shares and Warrants comprising the Units and the Warrant Shares shall have been conditionally approved for listing on the TSX, subject only to satisfaction by the Company of the standard conditions imposed by such exchange; (e) all authorizations, approvals, consents, waivers or permits, if any, of any governmental authority, regulatory body, any contracting party to any agreement by which the Company or any of its Subsidiaries is a party or is bound that are required in connection with the lawful issuance and sale of the Units and the transactions contemplated by this Agreement shall have been obtained and effective as of the Closing Date; -22- (f) no order, ruling or determination having the effect of ceasing the trading or suspending the sale of any securities of the Company has been issued and no proceedings for such purpose have been instituted or are pending, contemplated or threatened; (g) the Underwriters shall have received favourable legal opinions, dated the Closing Date and addressed to the Underwriters and their counsel, in form and substance satisfactory to the Underwriters and their counsel, acting reasonably, from the Company's counsel with respect to such matters as the Underwriters and their counsel may reasonably request relating to the distribution of the Units, including that: (i) the Company is: (A) a corporation duly incorporated or continued and existing under the laws of the Yukon territory and in good standing with respect to the filing of annual returns under the Business Corporations Act (Yukon), (B) duly registered or licensed to carry on business under the laws of the jurisdictions in which it carries on business, except to the extent that the failure to do so would not have a material adverse effect upon the Company and its Subsidiaries taken as a whole, and (C) has all requisite corporate power and capacity to carry on its business as now conducted and as currently proposed to be conducted and to own, lease and operate its property and assets; (ii) the authorized capital of the Company consists of an unlimited number of Common Shares and an unlimited number of preferred shares without par value, of which no preferred shares and 262,083,819 Common Shares are issued and outstanding after giving effect to the issuance of the Offered Units; (iii) all necessary corporate action has been taken by the Company to create, authorize and issue the Units, the Warrants and the Over-Allotment Option and to authorize, allot and reserve for issuance the Common Shares comprising part of the Units and the Warrant Shares; (iv) the Common Shares comprising part of the Units have been authorized, allotted and reserved for issuance and are fully paid and non-assessable shares in the capital of the Company, and the Warrant Shares to be issued upon exercise of the Warrants have been authorized, allotted and reserved for issuance and, upon the due exercise of the Warrants in accordance with the provisions thereof, the Warrant Shares will be validly issued as fully paid and non-assessable shares in the capital of the Company; (v) the Units, the Warrants and the Over-Allotment Option have been validly created, executed and issued by the Company; -23- (vi) all necessary corporate action has been taken by or on behalf of the Company to authorize the execution and delivery of the U.S. Private Placement Memorandum and the execution and delivery of each of the Preliminary Prospectus, the Final Prospectus and any Supplementary Material and the filing thereof with the Securities Commissions; (vii) the Company has all requisite corporate power and capacity to enter into this Agreement and the Warrant Indenture and to perform its obligations hereunder and thereunder, all necessary corporate action has been taken by the Company to authorize the execution and delivery by it of this Agreement and the Warrant Indenture, the performance of its obligations hereunder and thereunder and the transactions contemplated hereby and thereby, and each of this Agreement and the Warrant Indenture have been duly executed and delivered by the Company and, assuming due authorization, execution and delivery by each of the parties to this Agreement and the Warrant Indenture except the Company, constitute valid and binding obligations of the Company enforceable against the Company in accordance with its respective terms, subject to bankruptcy, insolvency, moratorium or similar laws affecting creditors' rights generally and except as limited by the application of equitable remedies which may be granted in the discretion of a court of competent jurisdiction and that enforcement of the rights to indemnity and contribution set out in this Agreement, or in the Warrant Indenture, as applicable, may be limited by applicable law; (viii) the rights, privileges, restrictions and conditions attaching to the Common Shares are accurately summarized in all material respects under the heading "Description of Share Capital" in the Final Prospectus, and the rights, privileges, restrictions and conditions attaching to the Warrants are accurately summarized in all material respects under the heading "Description of Purchase Warrants" in the Final Prospectus; (ix) all necessary documents have been filed, all requisite proceedings have been taken, all approvals, permits, consents and authorizations of the Securities Commissions have been obtained and all other legal requirements have been fulfilled under the laws of each of the Qualifying Provinces to qualify the issuance and sale of the Units to the public in each of the Qualifying Provinces through persons who are registered under applicable legislation; (x) the issuance by the Company of the Warrant Shares upon the due exercise of the Warrants will be exempt from the prospectus and registration requirements of the laws of each of the Qualifying Provinces and no document must be filed, proceeding taken or approval, permit, consent or authorization obtained under such laws in connection with the issuance of such Warrant Shares, provided that such issuance is made in accordance with the terms and conditions of the Warrants and no commission or other remuneration is paid or given to others in respect of such trade except for -24- administrative or ministerial or professional services performed or for services performed by a registered dealer under such laws; (xi) the Common Shares and Warrants comprising the Units and the Warrant Shares have been listed and posted for trading on the TSX, subject only to the Standard Listing Conditions; (xii) the rights, privileges, restrictions and conditions attaching to the Warrants are not inconsistent with the listing rules of the ASX applicable to any options issued by a Listed entity, after taking into account the terms of any waiver from such listing rules obtained by the Company; (xiii) the Common Shares are qualified investments for trusts governed by registered retirement savings plans, registered retirement income funds and deferred profit sharing plans under the Income Tax Act (Canada) and will not constitute foreign property for such plans; (xiv) subject to general investment provisions, the Units are eligible investments or are not precluded as investments under the statutes set out under the heading "Eligibility for Investment" in the Final Prospectus; (xv) the form and terms of the definitive certificates representing the Common Shares and the Warrants have been approved and adopted by the directors of the Company and the definitive certificates representing the Common Shares comply with all legal requirements of the Business Corporations Act (Yukon); (xvi) the Trust Company at its principal offices in the City of Vancouver has been duly appointed the transfer agent and registrar for the Common Shares of the Company and has been duly appointed as trustee and registrar under the Warrant Indenture; (xvii) the execution and delivery of this Agreement and the Warrant Indenture by the Company, the performance of the terms hereof and thereof by the Company, the issuance, sale and delivery of the Units and Warrant Shares by the Company and the consummation of the other transactions contemplated herein and in the Final Prospectus by the Company do not and will not result in a breach of or be in conflict with, or constitute a default under, and do not and will not create a state of facts which, after notice or lapse of time or both, will result in a breach of or constitute a default under, and do not and will not conflict with: (A) any of the terms, conditions or provisions of the constating documents of the Company or resolutions of the securityholders, directors, or any committee of directors of the Company, or (B) to the best of such counsel's knowledge, any mortgage, note, indenture, contract, agreement (written or oral), instrument, lease, -25- license, or other document to which the Company is a party or to which it is subject or by which it is contractually bound; (xviii) to the best of such counsel's knowledge, other than as disclosed in the Final Prospectus and the Information Record, there is no action, proceeding or investigation in respect of the Company or its Subsidiaries pending or threatened against or affecting the Company or any of the Subsidiaries, at law or in equity or before any federal, provincial, state, municipal government, court or other governmental department, commission, board or agency, domestic or foreign, which in any way would materially and adversely affect the Company and its Subsidiaries, taken as a whole; and (xix) as to such other matters as counsel to the Underwriters may reasonably request, relating to the offering of the Units as contemplated herein. In connection with such opinion, counsel to the Company may rely on the opinions of local counsel acceptable to counsel to the Underwriters, as to the qualification for distribution of the Units and as to other matters governed by the laws of jurisdictions other than the province in which they are qualified to practise and may rely, to the extent appropriate in the circumstances, as to matters of fact on certificates of officers of the Company and others. Where such opinions above state that a matter is "to the best of such counsel's knowledge and belief it shall mean in the course of acting for the Company those lawyers in the firm who have rendered legal services in connection with the distribution of the Units under the Final Prospectus have acquired no actual knowledge and received no information to cause them to believe that the statements qualified by that expression are not correct; (h) the Underwriters shall have received a favourable legal opinion from foreign counsel, dated the Closing Date and addressed to the Underwriters, in form and substance satisfactory to the Underwriters and their counsel, acting reasonably, with respect to Ivanhoe Mines Mongolia Inc. (BVI), Ivanhoe Mines Mongolia Inc. (Mongolia), ABM Mining Limited (Yukon), Goldamere Holdings (Canada) Limited (Yukon), Ivanhoe Australia Pty. Ltd, (Australia), and Goldamere Pty, Ltd. (Australia) (the "Specified Subsidiaries") relating to (i) the due incorporation and good standing under the laws of the applicable jurisdiction and qualification to carry on business in such jurisdictions where the Specified Subsidiaries carry on business; (ii) the outstanding share capital; (iii) the ownership of the issued and outstanding shares; and (iv) the title to the mineral licences or other rights relating to the Oyu Tolgoi Project; (i) if the Underwriters provide certificates regarding compliance with Rule 506 of Regulation D of the U.S. Securities Act (as hereinafter defined), in the form of Schedule "E" hereto, the Underwriters shall have received a favourable legal opinion from the Company's United States counsel, dated the Closing Date and addressed to the Underwriters and their legal counsel, in form and substance satisfactory to the Underwriters and their counsel, acting reasonably, with respect -26- to the availability of an exemption from the registration requirements under the securities laws of the United States in connection with sale in the United States of the Units by the Company to Substituted Purchasers for the Underwriters; (j) the Underwriters shall have received a long form comfort letter and certificates from the Company's auditors, dated the Closing Date and addressed to the Underwriters, in form and substance satisfactory to the Underwriters and their counsel, acting reasonably, bringing forward to the Closing Date the information contained in the comfort letter and certificates referred to in subsection 8(c) hereof, (k) the Underwriters shall have received incumbency certificates, dated the Closing Date, including specimen signatures of the Chief Executive Officer and the Chief Financial Officer and any other signing officer or director of the Company; (l) the Underwriters shall have received a certificate, dated the Closing Date and addressed to the Underwriters and their counsel, signed by the Chief Executive Officer and Chief Financial Officer of the Company, in the form and substance satisfactory to the Underwriters and their counsel, acting reasonably, certifying for and on behalf of the Company, to the effect that: (i) the Company has complied with all the covenants and satisfied all the terms and conditions of this Agreement on its part to be complied with and satisfied at or prior to the Time of Closing; (ii) the representations and warranties of the Company contained herein, including without limitation those arising by reason of the delivery of the Final Prospectus, the U.S. Private Placement Memorandum and any Supplementary Material are true and correct as at the Time of Closing, with the same force and effect as if made on and as at the Time of Closing after giving effect to the transactions contemplated hereby; (iii) no order, ruling or determination having the effect of ceasing the trading or suspending the sale of the Units or any other securities of the Company has been issued and no proceedings for such purpose have been instituted or are pending or, to the knowledge of such officers, contemplated or threatened; (iv) the constating documents of the Company attached to such certificate are full, true and correct copies and in effect on the date thereof, unamended; (v) each such officer has carefully examined the Final Prospectus, the U.S. Private Placement Memorandum and any Supplementary Material and, since the respective dates as of which information is given in the Final Prospectus, neither the Company nor any of its Subsidiaries has incurred any material liabilities or obligations (actual, anticipated, accrued, contingent or otherwise) or entered into any material transaction not in the ordinary course of business, and there has been no material change in the business, affairs, operations, assets, liabilities (contingent or otherwise), -27- prospects, financial position, capital or control of the Company or any of the Subsidiaries, taken as a whole; and there has occurred no event and exists no state of fact that is required, under the Securities Laws and the terms of this Agreement, to be set forth in an amendment to the Final Prospectus or the U.S. Private Placement Memorandum that has not been so set forth and the Final Prospectus, the U.S. Private Placement Memorandum and any Supplementary Materials contains full, true and plain disclosure of all material facts relating to the Units and the Company; and (vi) such other matters as the Underwriters or their counsel may reasonably request; and all such matters shall in fact be true and correct as at the Time of Closing; and (m) all actions required to be taken by or on behalf of the Company and all requisite filings with governmental authorities, shall have occurred at or prior to the Time of Closing so as validly to authorize the execution and filing of the Preliminary Prospectus, the Final Prospectus and any Supplementary Material and to create and grant the Over-Allotment Option, to allot and create, as applicable, and issue and sell the Common Shares and Warrants comprising the Units, having the rights, privileges, restrictions and conditions contemplated thereby and by the Final Prospectus and to authorize the execution and delivery of this Agreement and the Warrant Indenture. 14. CLOSING. (a) The Closing of the purchase and sale of the Offered Units shall occur at the Time of Closing at the offices of Goodmans, Suite 1900 - 355 Burrard Street, Vancouver, British Columbia, V6C 2G8 or such other place as the Company and the Underwriters may agree; (b) At the Time of Closing relating to the sale of the Offered Units, the Company shall issue and sell the Offered Units by the Company causing to be delivered to the Underwriters in Toronto, Ontario or as otherwise directed by HSBC on behalf of the Underwriters, certificates in definitive form representing the Common Shares and Warrants comprising the Offered Units to be purchased by the Underwriters hereunder at such Time of Closing, duly registered in such name or names as HSBC has directed at least 24 hours prior to such Time of Closing, against payment by HSBC on behalf of the Underwriters of the purchase price therefor by wire transfer to or at the direction of the Company; and (c) In addition, at such Time of Closing, the Company shall contemporaneously pay to HSBC on behalf of the Underwriters, a commission equal to 4.5% of the gross proceeds of the sale of the Offered Units for the Underwriters' services in connection with the issuance and sale of such Offered Units, by wire transfer or such other method as the parties may agree upon. -28- 15. CLOSING FOR UNITS PURCHASED UNDER OVER-ALLOTMENT OPTION. (a) In the event the Over-Allotment Option is exercised, the Company shall sell to HSBC, on behalf of the Underwriters, at or prior to the Optional Closing Time, that number of Additional Units as set out in the notice provided in accordance with section 5. At the Optional Closing Time, the Company shall deliver to HSBC on behalf of the Underwriters: (i) in Toronto, Ontario or as otherwise directed by HSBC on behalf of the Underwriters, the certificates representing the number of Common Shares and Warrants comprising the Additional Units to be purchased by the Underwriters, registered in such name or names as shall be designated by HSBC on behalf of the Underwriters not less than 24 hours prior to the Optional Closing Time, against payment by the Underwriters to the Company of the purchase price therefor by wire transfer or other payment method acceptable to the parties; and (ii) payment from the Company (by payment method acceptable to the parties) in an amount equal to 4.5% of the aggregate purchase price for their respective Additional Units being purchased by the Underwriters, payable to HSBC on behalf of the Underwriters, for their services in connection with the issuance and sale of such Additional Units, which shall be a several obligation to the extent of Additional Units sold. (b) The obligation of the Underwriters to complete the purchase of the Additional Units hereunder if the Over-Allotment Option granted pursuant to section 5 hereof is exercised, is subject to the satisfaction of the following conditions, which conditions are for the sole benefit of the Underwriters and may be waived in writing, in whole or part, by the Underwriters in their discretion: (i) no order, ruling or determination having the effect of ceasing the trading or suspending the sale of any securities of the Company has been issued and no proceedings for such purpose have been instituted or are pending contemplated or threatened; (ii) the receipt by the Underwriters of certificates signed by the Company as referred to and described in section 13, dated the date of the Optional Closing Time and acceptable in all reasonable respects to the Underwriters and counsel to the Underwriters; (iii) the receipt of opinions from counsel and a long form auditors comfort letter as referred to and described in section 13 dated the date of the Optional Closing Time and acceptable in all reasonable respects to the Underwriters and counsel to the Underwriters; and (iv) the receipt of such other documents as reasonably requested by the Underwriters or their counsel. -29- 16. UNITED STATES SELLING RESTRICTIONS, REPRESENTATIONS AND COVENANTS. (a) For the purposes of this section 16, the following terms shall have the meanings indicated: (i) "Directed Selling Efforts" means "directed selling efforts" as that term is defined in Rule 902 of Regulation S, without limiting the foregoing, but for greater clarity, such term means, subject to the exclusions from the definition contained in Regulation S, any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities, and shall include, without limitation, the placement of any advertisement in a publication with a general circulation in the United States that refers to the offering of the Securities; (ii) "Foreign Issuer" means "foreign issuer" as that term is defined in Rule 902 of Regulation s; (iii) "Institutional Accredited Investor" means an investor that satisfies one or more of the criteria set forth in Rule 501(a)(l), (2), (3) or (7) of Regulation D; (iv) "Regulation D" means Regulation D adopted by the SEC under the U.S. Securities Act; (v) "Regulation S" means Regulation S adopted by the SEC under the U.S. Securities Act; (vi) "SEC" means the United States Securities and Exchange Commission; (vii) "Securities" means the Units, the securities underlying the Units, including the Common Shares and the Warrants, and the Warrant Shares; (viii) "Selling Firms" means the dealers and brokers other than the Underwriters, if any, who participate in the offer of the Units pursuant to the Underwriting Agreement; (ix) "Subscription Agreement" means the form of agreement attached hereto as Schedule "D"; (x) "Substantial U.S. Market Interest" means "substantial U.S. market interest" as that term is defined in Rule 902 of Regulation S; (xi) "United States" means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia; (xii) "U.S. Exchange Act" means the United States Securities Exchange Act of 1934, as amended; -30- (xiii) "U.S. Person" means "U.S. person" as that term is defined in Rule 902 of Regulations; (xiv) "U.S. Placement Agent" means a U.S. broker-dealer affiliate of an Underwriter that offers Units in the United States or to or on behalf of any U.S. Person pursuant to this Agreement; and (xv) "U.S. Securities Act" means the United States Securities Act of 1933, as amended. Unless otherwise defined in this section 16, all additional initially capitalized terms used herein continue to have the meaning ascribed thereto in this Agreement. (b) The Underwriters severally but not jointly: (i) acknowledge that the Securities have not been and will not be registered with the SEC under the U.S. Securities Act and may be offered and sold only in transactions exempt from or not subject to the registration requirements of the U.S. Securities Act and applicable state securities laws. (ii) agree that neither they, nor any member of the Selling Finns, nor any of their respective affiliates: (A) have engaged or will engage in any Directed Selling Efforts with respect to the Units, (B) except to the extent permitted by subsection (c) of this section 16, have made or will make (i) any offer to sell or solicitation of an offer to buy any of the Units to any person or (ii) any sale of the Units to any person unless (1) the offer is not made to any U.S. person or person in the United States, (2) the seller of such Units and any person acting on its behalf reasonably believe that at the time such person placed the order to purchase Units such person was outside the United States and (3) such sale is otherwise in compliance with the applicable requirements of Regulation S, (C) have taken or will take any action which would constitute a violation of Regulation M of the SEC under the U.S. Exchange Act, or (D) have solicited or will solicit offers for, or have made or will make offers to sell, the Securities by means of any form of general solicitation or general advertising (as those terms are used in Regulation D under the U.S. Securities Act) or in any manner involving a public offering within the meaning of the U.S. Securities Act; (iii) represent that all offers and sales of the Securities in the United States were made to Institutional Investors; (iv) agree that all purchasers of Units in the United States or that are U.S. Persons or are purchasing Units on behalf of a U.S. Person (each, a U.S. Purchaser) shall be informed that the Securities have not been and will not be registered under the U.S. Securities Act and are being offered and sold to such purchasers in reliance on an exemption from the registration -31- requirements of the U.S. Securities Act provided by Regulation D or another exemption from registration thereunder; (v) agree that all offers of the Units in the United States or to or on behalf of any U.S. Person will be made by the U.S. Placement Agents in compliance with all applicable United States federal and state laws with respect to the registration and conduct of securities brokers and dealers; (vi) agree that they have caused or will promptly cause each member of the Selling Firms to acknowledge in writing its awareness of and agreement to be bound by and shall use their best efforts to ensure that each member of the Selling Firms complies with the provisions of this section 16 in connection with all offers and sale of the Units; (vii) represent that their respective broker-dealer affiliated U.S. Placement Agents are duly registered brokers or dealers with the SEC and are members of, and in good standing with, the National Association of Securities Dealers, Inc. on the date such representation is given; (viii) agree that they have not used and will not use any written material in connection with the offering of the Units in the United States other than the U.S. Private Placement Memorandum, including the Final Prospectus (together, the "Offering Documents"); (ix) represent that prior to the sale of any Securities in the United States, it caused each U.S. Purchaser to sign a Subscription Agreement containing representations, warranties and agreements to the Company substantially similar to those set forth in Schedule "D" to this Agreement; and (x) represent that immediately prior to transmitting the Offering Documents to offerees in the United States or to or on behalf of any U.S. Person, the Underwriter and the U.S. Placement Agent had reasonable grounds to believe and did believe that each offeree was an Institutional Accredited Investor and, on the date of this representation they continue to believe that each U.S. Purchaser is an Institutional Accredited Investor. (c) It is understood and agreed that the Units may be offered by the Underwriters and members of the Selling Firms in the United States only in compliance with all applicable state securities ("blue sky") laws of the United States and in a transaction exempt from the registration requirements of the U.S. Securities Act, pursuant to Rule 506 of Regulation D, to Institutional Accredited Investors, provided that each purchaser pursuant to this paragraph (c) shall execute and deliver a Subscription Agreement; provided however, that sales of Units in the United States may only be made if prior to any such sale each purchaser shall have been provided with the Final Prospectus and the U.S. Private Placement Memorandum. (d) The Underwriters have not entered, and will not enter, into any contractual arrangement without the prior written consent of the Company with respect to the -32- distribution of the Units, except (i) with their affiliates, (ii) with the U.S. Placement Agents, or (iii) with members of the Selling Firms in accordance with this section 16. (e) At the Time of Closing, each Underwriter shall cause its respective U.S. Placement Agent to deliver a certificate, substantially in the form of Schedule E to this Agreement, relating to the manner of the offer and sale in the United States of the Units. (f) The Company: (i) represents that the Company at the date hereof is, and on the Closing Date will be, a Foreign Issuer and reasonably believes that there is no Substantial U.S. Market Interest in the Securities; (ii) represents and agrees that neither it nor any of its affiliates (A) has engaged or will engage in any Directed Selling Efforts with respect to the Securities, (B) except to the extent permitted by subsection (c) of this Section 16, have made or will make (i) any offer to sell or solicitation of any offer to buy any of the Securities to any person or (ii) any sale of the Securities to any person unless (1) the offer is not made to any U.S. Person or person in the United States, (2) the seller of such Securities and any person acting on its behalf reasonably believe that at the time such person placed the order to purchase Securities such person was outside the United States and (3) such sale is otherwise in compliance with the applicable requirements of Regulation S, (C) have taken or will take any action which would constitute a violation of Regulation M of the SEC under the U.S. Exchange Act, or (D) have solicited or will solicit offers for, or have made or will make offers to sell, the Securities by means of any form of general solicitation or general advertising (as those terms are used in Regulation D under the U.S. Securities Act) or in any manner involving a public offering within the meaning of the U.S. Securities Act; (iii) represents that the Company is not, and agrees to use its best efforts not to become at any time prior to the expiration of three years after the Closing Date, an "investment company" as defined in the United States Investment Company Act of 1940; (iv) agrees to use its best efforts to remain a Foreign Issuer for a period of three years after the Closing Date; (v) agrees that it will notify CIBC Mellon Trust Corporation as soon as practicable upon it becoming a "domestic issuer", as defined in Regulation S; (vi) represents and agrees that neither the Company nor any of its affiliates has taken or will take any action which would cause the exemptions afforded by Rule 506 of Regulation D to be unavailable for the offer and sale of the Securities pursuant to the Underwriting Agreement; and -33- (vii) it has not, for a period of six months prior to the date hereof sold, offered for sale or solicited any offer to buy any of its securities, and will not within six months after the Closing Date, offer or sell any securities in a manner that would be integrated with the offer and sale of the Securities and would cause the exemption from registration set forth in Rule 506 of Regulation D to become unavailable with respect to the offer and sale of the Securities. (g) Neither the Company nor any of its predecessors or affiliates (as defined in the U.S. Securities Act) has been subject to any order, judgment, or decree of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining such person for failure to comply with Rule 503 of Regulation D. (h) The Company will, within fifteen (15) days after the first sale of Units in the United States, prepare and file with the SEC a notice on Form D with respect to the Units and will file all amendments required to be filed as a result of subsequent sales of Securities in the United States. The Company shall also prepare and file within prescribed time periods any notices required to be filed with state securities authorities under applicable blue sky laws in connection with any Securities sold pursuant to Rule 506 of Regulation D. 17. INDEMNIFICATION. (a) The Company agrees to indemnify and save harmless each of the Underwriters, each of their subsidiaries and affiliated companies and each and every of their respective directors, officers, employees, partners, agents, each other person, if any, controlling the Underwriters or any of their subsidiaries, and each shareholder of the Underwriters (each, an "Underwriter Indemnified Party") from and against any and all losses (other than a loss of profits), costs, expenses, claims (including shareholder actions, derivative or otherwise), actions, damages and liabilities, joint or several, including the aggregate amount paid in reasonable settlement of any actions, suits, proceedings, investigations or claims and the reasonable fees and expenses of their counsel that may be incurred in advising with respect to and/or defending any action, suit, proceeding, investigation or claim that may be made or threatened against any Underwriter Indemnified Party or in enforcing this indemnity (collectively an "Underwriter Claim") to which any Underwriter Indemnified Party may become subject or otherwise involved, in any capacity insofar as such Claims relate to, are caused or incurred, directly or indirectly, by reason of: (i) any statement made in this Agreement or in any certificate delivered to the Underwriters pursuant to this Agreement by such person which at the time and in light of the circumstances under which it was made is or is alleged to be untrue; (ii) any statement or information contained in the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material (other than any statement or information relating solely to the Underwriters and provided by the Underwriters for inclusion -34- in such document) which at the time and in light of the circumstances under which it was made contains or is alleged to contain a misrepresentation or is or is alleged to be untrue, false or misleading in light of the circumstances in which it was made; (iii) the omission or alleged omission to state in the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material any material fact (other than a material fact relating solely to the Underwriters and provided by the Underwriters for inclusion in such document) required to be stated therein or necessary to make any statement therein not false or misleading in the light of the circumstances under which it was made; (iv) the Company not complying with any requirements of applicable Securities Laws or U.S. securities laws other than in respect of any matter or thing contemplated by or included in subsections 1.7(a)(i), (ii), (iii), (v) or (vi) hereof; (v) any order made or inquiry, investigation or proceeding (formal or informal) commenced or threatened by any officer or official of any of the Securities Commissions or any other securities regulatory authority or by any other competent authority based upon the circumstances applicable to the Company described in subsections 17(a)(ii), (iii) or (iv) above or otherwise which operates to prevent or restrict trading in or distribution of the Units or Common Shares or Warrants in any of the Qualifying Provinces or elsewhere; or (vi) any breach of any representations, warranties, covenants or agreements of the Company contained in this Agreement or given pursuant to this Agreement. The Company agrees that no Underwriter Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company, or to any person asserting claims on behalf of or in right of the Company for or in connection with this Agreement, except to the extent any losses, expenses, claims, actions, damages or liabilities incurred by the Company are determined by a court of competent jurisdiction in a final judgment that has become non-appealable to have resulted primarily from the gross negligence, wilful misconduct or fraud of such Underwriter Indemnified Party. (b) The indemnifications contained in this section 17 do not and shall not apply to the extent that a court of competent jurisdiction in a final judgment that has become non-appealable shall determine that: (i) the Underwriter Indemnified Party has been grossly negligent or has committed wilful misconduct or a fraudulent act in the course of their performance of their obligations pursuant to this Agreement; and -35- (ii) the Claim, as to which indemnification is claimed, was directly caused by the gross negligence, wilful misconduct or fraud referred to in (i). (c) No admission of liability and no settlement of any Claim in respect of which indemnification may be sought hereunder shall be made without the consent of the relevant Underwriter Indemnified Party, such consent not to be unreasonably withheld or delayed. No admission of liability shall be made by the relevant Underwriter Indemnified Party without the consent of the Company and the Company shall not be liable for any settlement of any Claim made without its consent, such consent not to be unreasonably withheld or delayed. Any such settlement shall include a release of each Underwriter Indemnified Party from any liabilities arising out of such Claim. (d) Promptly after receipt by an Underwriter Indemnified Party of notice of the commencement of any Claim in respect of which it may be entitled to be indemnified by the Company hereunder, such Underwriter Indemnified Party shall notify the Company thereof, but the omission to so notify the Company will not relieve the Company from any liability which they may have to any Underwriter Indemnified Party under this section 17 except and only to the extent that such delay or failure to give notice as herein required prejudices the defense of such Claim or results in any material increase in liability which the Company has under this Agreement. In case any such Claim is made against any Underwriter Indemnified Party, and the Underwriter Indemnified Party notifies the Company thereof, the Company will assume the defense thereof, including the employment of counsel and the payment of all expenses and throughout the course thereof, the Company will provide copies of all relevant documentation to the Underwriter Indemnified Party, will keep the Underwriter Indemnified Party advised of the progress thereof and will discuss with the Underwriter Indemnified Party all significant actions proposed unless precluded from doing so by law or court order. The Underwriter Indemnified Party shall have the right to elect to employ their own separate counsel in any such action or investigation and participate in the defence thereof but the fees and expenses of such counsel shall be at its expenses unless: (i) the employment thereof has been specifically authorized by the Company in writing; (ii) the Company has failed within a reasonable time after receipt of such written notice to assume the defence of such Claim on behalf of the Underwriter Indemnified Party and employ counsel therefor; or (iii) in the reasonable belief of the Underwriter Indemnified Party there are defences available to the Underwriter Indemnified Party which are required to be advanced by separate counsel because of an actual or potential conflict of interest or any similar reason. In the event the Underwriter Indemnified Party exercises its right to employ their own counsel and either (i), (ii) or (iii) above applies, the reasonable fees and -36- expenses of such counsel as well as the reasonable costs and out-of-pocket expenses incurred by the Underwriter Indemnified Party in connection therewith shall be paid by the Company as they occur. The Company shall pay the Underwriter Indemnified Party their standard per diem rates for each of their employers, directors and officers who are required to attend or give evidence at or for any hearing, action or other proceeding in connection with any Claim. (e) The Company hereby constitutes each Underwriter as a trustee for its Subsidiaries and affiliated companies and their respective directors, officers, employees, shareholders, partners and agents, each other person, if any, controlling the Underwriter or any of their subsidiaries and each shareholder of the Underwriter (the "Underwriter Related Party") for the covenants of the Company contained in this section 17 with respect to the Underwriter Related Party and each Underwriter agrees to accept such trust and to hold it and such covenants on behalf of their Underwriter Related Party; (f) The Company hereby waives its rights to recover contribution from any of the Underwriters or any other Underwriter Indemnified Party with respect to any liability of the Company by reason of or arising out of any misrepresentation contained in the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum or in any Supplementary Material; provided, however, that such waiver shall not apply in respect of liability caused or incurred by reason of or arising out of any misrepresentation which is based upon or results from a statement or information relating solely to the Underwriters contained in such document and which statement or information was provided by the Underwriters for inclusion in such document 18. CONTRIBUTION. (a) If for any reason (other than the occurrence of any of the events in subsections 17(b)(i) and 17(b)(ii)) the indemnification provided for in section 17 is unavailable, in whole or in part, to an Underwriter Indemnified Party, or insufficient to hold it harmless, in respect of any Claims referred to in section 17 or claims, actions, suits or proceedings in respect thereof, and subject to the restrictions and limitation referred to therein, the Company shall contribute to the amount paid or payable as a result of such Claims in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one hand and the Underwriters on the other hand but also the relative fault of the Company and the Underwriters, as well as any relevant equitable considerations provided that the Company shall in any event contribute to the amount paid or payable by the Underwriters as a result of such Claims, any excess of such amount over the amount of the fees received by the Underwriters pursuant to this Agreement. (b) The relative benefits received by the Company on the one hand and the Underwriters on the other hand shall be deemed to be in the same proportion as the total proceeds from the distribution of the Units (net of the fee payable to the -37- Underwriters but before deducting expenses) received by the Company is to the fee received by the Underwriters, in each case as set forth in the Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether the statement, misrepresentation, omission, order, inquiry, investigation, proceeding or other matter or thing referred to in section 17 which resulted in such Claim in respect thereof relates to information supplied by or steps or actions taken or done by or on behalf of the Underwriters and the relative intent, knowledge, access to information and opportunity to correct or prevent such statement, misrepresentation, omission, order, inquiry, investigation, proceeding or other matter or thing referred to in section 17; (c) If the Underwriter Indemnified Party has reason to believe that a claim for contribution may arise, they shall give the Company notice thereof in writing as soon as reasonably possible, but failure to notify the Company shall not relieve the Company of any obligation they may have to the Underwriter Indemnified Party under this section 18; (d) Notwithstanding any other provision of this section 18, no person guilty of gross negligence, wilful misconduct, or fraud in respect of the claim for contribution shall be entitled to contribution from any person who was not guilty of such negligence, wilful misconduct or fraud; (e) The rights to contribution provided herein shall be in addition to and not in derogation of any other right to contribution which the Underwriter Indemnified Party may have by statute or otherwise at law; (f) With respect to this section 18, the Company acknowledges and agrees that the Underwriters are contracting on their own behalf and as agents for their respective Underwriter Related Party; (g) The parties hereto covenant and agree that to the extent that any Underwriter Related Party is not a signatory hereto, the Underwriters shall be entitled to hold the benefit of the indemnity and contribution rights contained herein for and on behalf of such Underwriter Related Party and shall be entitled to enforce such rights on their behalf as if each such Underwriter Indemnified Party were a signatory hereto; (h) The rights and remedies of the Underwriter Indemnified Party set forth in section 17 and this section 18 and in each subsection hereof are, to the fullest extent possible in law, mutually exclusive and are cumulative and not alternative and the election by the Underwriter Indemnified Party to exercise any such right or remedy shall not be, and shall not be deemed to be, a waiver of any of such other rights and remedies, and are in addition to any other rights the Indemnified Party may have by statute or otherwise at law; (i) It is expressly acknowledged and agreed that the indemnity and contribution provisions contained in section 17 and this section 18 shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the -38- Underwriter, any closing of the transactions herein or any termination of this Agreement. 19. EXPENSES. Whether or not the transactions herein contemplated are completed, all reasonable costs and expenses of and incidental to the issue of the Units, if any, and the sale and delivery thereof to the Underwriters and of and incidental to all other matters in connection with the transactions contemplated herein shall be borne by the Company, including, without limitation, the cost of preparation and printing of all the documents contemplated hereby (including all costs of printing the Preliminary Prospectus, the Final Prospectus, the U.S. Private Placement Memorandum, any Supplementary Material, and the Underwriters' reasonable requirements of commercial copies of each thereof), all costs, expenses and fees (including filing fees) in connection with qualifying the Units for sale to the public in all Qualifying Provinces and listing the Common Shares, Warrants and Warrant Shares on the TSX, all costs and expenses in connection with sales of the Units in the United States and elsewhere, all marketing and travel expenses, all costs and expenses in connection with the preparation and issue of the certificates for the Common Shares and Warrants, the reasonable fees, charges and expenses of counsel and auditors of the Company, the reasonable fees and disbursements of the Underwriters' legal counsel (subject to a maximum of $100,000 in legal fees, exclusive of taxes and disbursements), and all applicable taxes. All fees and expenses of the Underwriters will be payable by the Company at the Time of Closing (and, if applicable, at the Optional Closing Time) or upon receipt by the Company of a detailed invoice from the Underwriters, and will be payable whether or not the Offering is completed. 20. ALL TERMS TO BE CONDITIONS. The Company agrees that the conditions contained in section 13 hereof will be complied with insofar as the same relate to acts to be performed or caused to be performed by the Company and that it will use all best efforts to cause all such conditions to be complied with. All representations, warranties, covenants and other terms of this Agreement shall be and shall be deemed to be conditions, and any breach or failure to comply with any of them or any of the conditions set out in section 13 shall entitle the Underwriters to terminate their obligation to purchase the Units, by written notice to that effect given to the Company at or prior to the Time of Closing or the Optional Closing Time, as the case may be. It is understood that the Underwriters may waive, in whole or in part, or extend the time for compliance with, any of such terms and conditions without prejudice to the rights of the Underwriters in respect of any such terms and conditions or any other or subsequent breach or non-compliance, provided that to be binding on the Underwriters any such waiver or extension must be in writing. 21. TERMINATION BY UNDERWRITERS IN CERTAIN EVENTS. (a) If at any time during the period commencing on the date hereof and ending at the Time of Closing or, if applicable, the Optional Time of Closing: (i) there should develop, occur or come into effect or existence any event, action, state, condition or major financial occurrence of national or international consequence or any law or regulation which in the reasonable opinion of any of the Underwriters seriously adversely affects, or involves, or would be expected to seriously adversely affect or involve, the financial markets or the business, operations or affairs of the Company and its -39- Subsidiaries, taken as a whole, or the market price or value of the Common Shares; (ii) any inquiry, action, suit, proceeding or investigation (whether formal or informal) is instituted or any order or ruling is issued or made by any federal, provincial, state, municipal, or other governmental department, commission, board, bureau, agency or instrumentality in Canada, the United States or elsewhere, including without limitation, either the TSX, NASDAQ or any securities regulatory authority in such jurisdictions (other than an inquiry, action, suit, proceeding, investigation or order based solely on the activities or alleged activities of the Underwriters) or any law or regulation is promulgated or changed, which in any Underwriter's reasonable opinion, operates to prevent or restrict the trading or distribution of the Units, Warrants or Common Shares of the Company or could reasonably be expected to have a significant adverse effect on the market price or value of the Common Shares; (iii) there should occur any material change, a change in any material fact or other change such as is contemplated in section 9 or 21 herein which, in the reasonable opinion of the Underwriters or any one of them, results or could reasonably be expected to result in the purchasers of a material number of Units exercising their right under any of the Securities Laws to withdraw from their purchase thereof or could reasonably be expected to have a significant adverse effect on the market price or value of the Common Shares; or (iv) the Underwriters or their representatives, through their due diligence investigations, discover any misrepresentation, or there is in the reasonable opinion of the Underwriters a material adverse change or a change in a material fact or a new material fact which could reasonably be expected to have a material adverse effect on the business, affairs or operations of the Company and its Subsidiaries on a consolidated basis or on the market price or value of the Common Shares, each of the Underwriters shall be entitled, at its option, to terminate its obligations under this Agreement by written notice to that effect given to the Company as hereinafter provided at or prior to the Time of Closing or the Optional Time of Closing, as the case may be. (b) Any termination by the Underwriters pursuant to the provisions hereof shall be effected by notice in writing delivered or sent by facsimile to the Company at its address as herein set out. The rights of termination contained in this section 21 are in addition to any other rights or remedies the Underwriters may have in respect of any default, misrepresentation, act or failure to act of the Company in respect of any matters contemplated by this Agreement. In the event of any such termination by the Underwriters of their obligations under this Agreement the Company shall continue to be liable to the Underwriters under this Agreement, and in particular Sections 17, 18 and 19 hereof. -40 22. OVER-ALLOTMENT. In connection with the distribution of the Units, the Underwriters and members of their selling group (if any) may over-allot or effect transactions which stabilize or maintain the market price of the Common Shares or Warrants at levels above those which might otherwise prevail in the open market in compliance with Securities Laws. Such stabilizing transactions, if any, may be discontinued at any time. No such stabilizing transactions will take place in Australia or on the ASX. 23. SURVIVAL. The respective representations, warranties, agreements, covenants, indemnities and contribution obligations of the Company set forth in this Agreement, or contained in any certificates or documents submitted pursuant to or in connection with the transaction herein referred to, shall survive the Closing Date and the Optional Closing Time, if applicable, and remain in full force and effect thereafter, unaffected by any subsequent disposition of the Units by an Underwriter or the termination of an Underwriter's obligations and shall not be limited or prejudiced by: (a) any investigation made by or on behalf of the Underwriters in connection with the preparation of the Prospectus, the U.S. Private Placement Memorandum or any Supplementary Material; and (b) delivery of and payment for the Units. 24. OBLIGATIONS OF THE UNDERWRITERS TO BE SEVERAL. Subject to the terms and conditions hereof, the obligation of the Underwriters to purchase the Units shall be several (and not joint or joint and several). The percentage of the Units to be severally purchased and paid for by each of the Underwriters shall be as follows: HSBC Securities (Canada) Inc. - 27.66% GMP Securities Ltd. - 27.66% CIBC World Markets Inc. - 27.66% UBS Securities Canada Inc. 17.0 % If an Underwriter (a "Refusing Underwriter") shall not complete the purchase and sale of the Units which such Underwriter has agreed to purchase hereunder for any reason whatsoever, the other Underwriters (the "Continuing Underwriters") shall be entitled, at their option, to purchase all but not less than all of the Units which would otherwise have been purchased by such Refusing Underwriter pro rata according to the number of Units to have been acquired by the Continuing Underwriters hereunder or in such proportion as the Continuing Underwriters shall agree in writing. If the Continuing Underwriters do not elect to purchase the balance of the Units pursuant to the foregoing: (a) the Continuing Underwriters shall not be obliged to purchase any of such Units; (b) the Company shall not be obliged to sell less than all of the Offered Units; and (c) the Company shall be entitled to terminate their obligations under this Agreement arising from its acceptance of this offer, in which event there shall continue to be further liability on the part of the Company, in particular in respect of Sections 17, 18 and 19. -41- 25. ACTION BY UNDERWRITERS. Except in respect of any matter referred to in section 21, or any settlement under sections 17, 18 or otherwise hereunder, all steps which must or may be taken by the Underwriters in connection with the closing of the Offering may be taken by HSBC on behalf of itself and the other Underwriters, and the execution of this Agreement by the Underwriters and the Company will constitute the Company's authority and obligation for accepting notification of any such steps from, and for delivering the definitive documents constituting the Offered Securities to or to the order of the other Underwriters. HSBC will consult with the other Underwriters with respect to all material notices, waivers, extensions or similar communications to or with the Company. 26. NOTICES. (a) Unless herein otherwise expressly provided, any notice, request, direction, consent, waiver, extension, agreement or other communication (a "Communication") that is or may be given or made hereunder shall be in writing addressed as follows: If to the Company, addressed and sent to: Ivanhoe Mines Ltd. Suite 654, 999 Canada Place Vancouver, BC V6C 3E1 Attention: Robert M. Friedland, Chairman & Chief Executive Officer Fax No.: (604) 278-1837 With a copy to: Goodmans Suite 1900 - 355 Burrard Street Vancouver, BC V6C 2G8 Attention: Paul Goldman Fax No.: (604) 682-7131 If to the Underwriters, addressed and sent to: HSBC Securities (Canada) Inc. Suite 5300, TD Centre TD Bank Tower Toronto, ON M5K 1E7 Attention: Jeff Allsop, Director, Corporate Finance Fax No.: (416) 369-9498 -42- GMP Securities Ltd. Suite 1100 - 145 King Street West Toronto, Ontario M5H 1J8 Attention: Eugene McBurney, Managing Partner Fax No.: (416) 943-6160 CIBC World Markets Inc. P.O. Box 500, BCE Place 161 Bay Street Toronto, Ontario M5J 2S8 Attention: Rick McCreary, Executive Director Fax No.: (416) 594-8848 UBS Securities Canada Inc. Suite 4100, P.O. Box 617 161 Bay Street Toronto, Ontario M5J 2S1 Attention: Steven Latimer, Executive Director Fax No.: (416) 364-9296 With a copy to: Fasken Martineau DuMoulin LLP Barristers and Solicitors Suite 2100 - 1075 West Georgia Street Vancouver, British Columbia V6E 3G2 Attention: Lata C. Casciano Fax No.: (604) 632-4746 or to such other address as any of the parties may designate by notice given to the others. (b) Each Communication shall be personally delivered to the addressee or sent by facsimile transmission to the addressee and (i) a Communication which is personally delivered shall, if delivered before 5:00 p.m. (Vancouver time) on a business day, be deemed to be given and received on that day and, in any other case, be deemed to be given and received on the first business day following the day on which it is delivered; and (ii) a Communication which is sent by facsimile transmission shall, if sent on a business day and the machine on which it is sent receives the answerback code of the party to whom it is sent before 5:00 p.m. (Vancouver time), be deemed to be given and received on that day and, in any other case, be deemed to be given and received on the first business day following the day on which it is sent. -43- 27. MISCELLANEOUS. (a) No party may assign any of its rights or obligations hereunder without the consent of the other parties hereto. (b) This Agreement shall enure to the benefit of, and shall be binding upon, the Underwriters and the Company and their respective successors, permitted assigns and legal representatives. (c) This Agreement shall be governed by and interpreted in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. (d) Unless otherwise noted, all funds referred to in this Agreement shall be in Canadian dollars. (e) Time shall be of the essence hereof and, following any waiver or indulgence by any party, time shall again be of the essence hereof. (f) If any provision of this Agreement is determined to be void or unenforceable in whole or in part, such void or unenforceable provision shall not affect or impair the validity of any other provision of the Agreement and shall be severable from this Agreement. (g) This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. (h) This Agreement may be executed by the parties and transmitted by facsimile and, if so executed and transmitted, this Agreement will for all purposes be as effective as if the parties had delivered an executed original Agreement. -44- If this letter accurately reflects terms of the transactions which we are to enter into and are agreed to by you, please your acceptance by executing this letter where indicated below and returning it to us. Yours very truly, HSBC SECURITIES (CANADA) INC. GMP SECURITIES LTD. By: "Jeffrey B. Allsop" By: "Mark Wellings" ------------------------------------ -------------------------------- CIBC WORLD MARKETS INC. UBS SECURITIES CANADA INC. By: "David A. Scott" By: "Steven A. Latimer" ------------------------------------ -------------------------------- The foregoing offer is accepted and agreed to by us as of the date first above written. IVANHOE MINES LTD. By: "Beverly Bartlett" ------------------------------------ SCHEDULE "A" PRINCIPAL SUBSIDIARIES Bagan Holdings Ltd. (BVI) Ivanhoe Myanmar Holdings Ltd. (BVI) Ivanhoe Myanmar Holdings Limited (Myanmar) Myanmar Ivanhoe Copper Company Limited (Myanmar) Ivanhoe Mines Mongolia Inc. (BVI) Ivanhoe Mines Mongolia Inc. (Mongolia) ABM Mining Limited (Yukon) Goldamere Holdings (Canada) Limited (Yukon) Ivanhoe Australia Pty. Ltd. (Australia) Goldamere Pty Ltd. (Australia) SCHEDULE "B" OUTSTANDING CONVERTIBLE OR EXCHANGEABLE SECURITIES 5,760,000 special warrants exercisable for 6,336,000 Common Shares (including Common Shares issuable upon exercise of warrants underlying the special warrants). 10,330,554 options. 115,207 Common Shares approved for issuance to CIBC World Markets Inc. SCHEDULE "C" OYU TOLGOI PROJECT (MONGOLIA) Mongolian Mineral Exploration License No.: 66X 66X-1 66X-2 66X-3 3677X 5979X 6360X 6358X 6359X SCHEDULE "D" U.S. SUBSCRIPTION AGREEMENT SUBSCRIPTION AGREEMENT FOR UNITS TO: IVANHOE MINES LTD. (THE "CORPORATION") AND TO: HSBC SECURITIES (CANADA) INC., GMP SECURITIES LTD., CIBC WORLD MARKETS INC. AND UBS SECURITIES CANADA INC. (COLLECTIVELY, THE "UNDERWRITERS") The undersigned (hereinafter referred to as the "SUBSCRIBER") hereby irrevocably subscribes for and agrees to purchase the number of units, each unit consisting of one common share and one-half of one common share purchase warrant (collectively, the "UNITS") of the Corporation for the aggregate subscription price set forth below, representing a subscription price of Cdn.$10.50 per Unit, upon and subject to the terms and conditions set forth in the "Terms and Conditions of Subscription for Units of Ivanhoe Mines Ltd." attached hereto (the "TERMS AND CONDITIONS"). This page plus the Terms and Conditions and any Schedules attached thereto, are collectively referred to as the "SUBSCRIPTION AGREEMENT". NUMBER OF UNITS: ____________________ _________________________________________ (Name of Subscriber - please print) AGGREGATE SUBSCRIPTION PRICE: $______ By: ____________________________________ Authorized Signature _________________________________________ IMPORTANT: PLEASE INITIAL WHERE (Official Capacity or Title - please APPLICABLE ON THE NEXT print) PAGES _________________________________________ IF THE SUBSCRIBER IS SIGNING AS AGENT (Please print name of individual whose FOR A PRINCIPAL,COMPLETE signature appears above if different THE FOLLOWING than the name of the subscriber printed above.) _____________________________________ _________________________________________ Name of Principal (Subscriber's Address, including postal code) _____________________________________ _________________________________________ Principal's Address (Telephone Number) (E-mail Address) _____________________________________ (Telephone Number) (E-mail Address) REGISTER THE UNITS AS SET FORTH BELOW: DELIVER THE UNITS AS SET FORTH BELOW: _________________________________________ _____________________________________ (Name) (Name) _________________________________________ _____________________________________ (Account Reference, if applicable) (Account Reference, if applicable) _________________________________________ _____________________________________ (Address, including postal code) (Contact Name) (Telephone Number) _________________________________________ _____________________________________ (Address, including postal code) _________________________________________ _____________________________________ _____________________________________ -2- ACCEPTANCE: The Corporation hereby accepts the subscription as set forth above on the Terms and Conditions and the Corporation represents and warrants to the Subscriber that the representations and warranties made by the Corporation to the Underwriters in the Underwriting Agreement (as defined herein) are true and correct in all material respects as of the Closing Date (as defined herein) (save and except as waived in whole or in part by the Underwriters) and that the Subscriber is entitled to rely thereon and on the terms, conditions and covenants contained in the Underwriting Agreement as if the Subscriber were a party thereto. IVANHOE MINES LTD. Per: __________________________ __________________________, 2003. -3- TERMS AND CONDITIONS OF SUBSCRIPTION FOR UNITS OF IVANHOE MINES LTD. THE OFFERING 1. The Subscriber acknowledges (on its own behalf and, if applicable, on behalf of each person on whose behalf the Subscriber is contracting) that the Units subscribed for by it hereunder form part of a larger offering by the Corporation of Cdn.$131,250,000 of Units (the "OFFERING") pursuant to an Underwriting Agreement dated as of December 8, 2003 among the Corporation and the Underwriters (the "UNDERWRITING AGREEMENT"). 2. The undersigned hereby irrevocably subscribes for and agrees to purchase from the Corporation the number of Units set forth on page one of the Subscription Agreement for the Aggregate Subscription Price, representing a subscription price of Cdn$10.50 per Unit. Each Unit is comprised of one common share of the Corporation (a "Common Share") and one half of one Common Share purchase warrant. Each whole Common Share purchase warrant (a "Warrant") will entitle the holder to purchase one additional Common Share at a price of Cdn$12.00 at any time until the date that is one year following the Closing Date (as defined herein) and at a price of Cdn$12.50 at any time thereafter until the date that is two years following the Closing Date (as defined herein). The Units, the Common Shares and Warrants comprising the Units and the Common Shares underlying the Warrants are collectively referred to herein as the "SECURITIES." REPRESENTATIONS, WARRANTIES AND COVENANTS BY U.S. SUBSCRIBER 3. The Subscriber acknowledges (on its own behalf and, if applicable, on behalf of each person on whose behalf the Subscriber is contracting) that this subscription is not subject to any minimum subscription level and that THIS SUBSCRIPTION IS SUBJECT TO REJECTION OR APPORTIONMENT BY THE CORPORATION AT ITS SOLE DISCRETION IN WHOLE OR IN PART. The Subscriber should set out the total number of Units requested and, if applicable, the minimum number of Units the Subscriber is prepared to subscribe for where indicated on the face page of this agreement. 4. The Subscriber represents and warrants that it is authorized to consummate the purchase of the Units. 5. The Subscriber understands and acknowledges that the Securities comprising the Units and the Common Shares underlying the Warrants have not been and will not be registered under the United States Securities Act of 1933, as amended (the "SECURITIES ACT"), or the securities laws of any state of the United States and may not be offered or sold within the United States or to a U.S. Person, except that the Securities may be offered and sold to institutional "accredited investors" that satisfy one or more of the criteria set forth in subsections (1), (2), (3) or (7) of Rule 501(a) of Regulation D ("INSTITUTIONAL ACCREDITED INVESTORS") under the Securities Act, in reliance on the exemptions from such registration provided by the Securities Act. In that regard, the Units are being offered hereby in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act to a limited number of Institutional Accredited Investors. 6. The Subscriber represents that it is an Institutional Accredited Investor and falls within at least one of the categories below, next to which it has placed its initial in the space designated therefor: INITIAL ONE OR MORE OF THE FOLLOWING CATEGORIES, AS APPLICABLE: ________ A bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Securities Act; an investment company registered under the Investment Company Act of 1940 or business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940; a Small Business Investment Company licensed by the US Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political -4- subdivisions, for the benefit of employees, if such plan has total assets in excess of $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, a savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are Accredited Investors; ________ A private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940; ________ An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Units, with total assets in excess of $5,000,000; ________ A trust, with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the Units, whose purchase is directed by a sophisticated person as described in Rule 506 of Regulation D of the Securities Act. 7. The Subscriber agrees that if it decides to offer, sell or otherwise transfer or pledge all or any part of the Securities, it will not offer, sell or otherwise transfer or pledge any of such Securities (other than pursuant to an effective registration statement under the Securities Act), directly or indirectly unless: (a) the sale is to the Corporation; (b) the sale is made outside the United States in accordance with the requirements of Rule 904 of Regulation S under the Securities Act and in compliance with applicable local laws and regulations; the sale is made pursuant to the exemption from registration under the Securities Act provided by Rule 144 thereunder; (c) the Units are sold in a transaction that does not require registration under the Securities Act or any applicable United States state laws and regulations governing the offer and sale of securities, and the Subscriber has furnished to the Corporation an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, to that effect; or (d) the sale is to an Institutional Accredited Investor and a purchaser's letter containing representations, warranties and agreements substantially similar to those contained in this Subscription Agreement (except that such subsequent Subscription Agreement need not contain the representation set forth in paragraph (10) below) is executed by the subsequent purchaser and delivered to the Corporation prior to the sale. 8. The Subscriber understands and acknowledges that the Securities are "restricted securities" as defined in Rule 144 under the Securities Act, and upon the original issuance thereof, and until such time as the same is no longer required under applicable requirements of the Securities Act or state securities laws, the certificates representing the Securities, and all certificates issued in exchange therefor or in substitution thereof, shall bear on the face of such certificates the following legend: THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF IVANHOE MINES LTD. THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO IVANHOE MINES LTD., (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, OR (D) PURSUANT TO ANOTHER EXEMPTION FROM -5- REGISTRATION AFTER PROVIDING A LEGAL OPINION OR OTHER EVIDENCE SATISFACTORY TO IVANHOE MINES LTD. IF, AT ANY TIME IVANHOE MINES LTD. IS A "FOREIGN ISSUER" AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT, A NEW CERTIFICATE BEARING NO LEGEND MAY BE OBTAINED FROM IVANHOE MINES LTD. UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN A FORM SATISFACTORY TO IVANHOE MINES LTD., TO THE EFFECT THAT THE SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT; provided, that if, at the time the Corporation is a "foreign issuer" as defined in Regulation S under the U.S. Securities Act, the Securities are being sold in compliance with the requirements of Rule 904 of Regulation S, the legend may be removed by providing a declaration to the Corporation to the following effect (or as the Corporation may prescribe from time to time): "The undersigned (A) acknowledges that the sale of the securities to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and (B) certifies that (1) it is not an "affiliate" (as defined in Rule 405 under the Securities Act) of Ivanhoe Mines Ltd., (2) the offer of such securities was not made to a person in the United States and at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, (3) neither the seller nor any person acting on its behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities, (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act), (5) the seller does not intend to replace such securities with fungible unrestricted securities and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S under the U.S. Securities Act, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act. Terms used herein have the meanings given to them by Regulation S." If any such Units are being sold pursuant to Rule 144 of the Securities Act, the legend may be removed by delivery to the Corporation of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, to the effect that such legend is no longer required under applicable requirements of the Securities Act or state securities laws. 9. The Subscriber understands that the Warrants may not be exercised in the United States or by or on behalf of a U.S. person (as defined in Regulation S under the Securities Act) unless exercised by the undersigned at such time as the representations and warranties made by the undersigned in this subscription agreement are then true and correct, or the purchaser has provided the Corporation with an opinion of counsel to the effect that the exercise of the Warrants by the holder is not subject to registration under the Securities Act or the securities laws of any state of the United States, and it understands that upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the Securities Act or applicable U.S. state laws and regulations, the certificates representing the Warrants will bear a legend to the following effect: THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THE WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE, AND THE CORPORATION RECEIVES AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT, PROVIDED THAT A PERSON THAT PURCHASED WARRANTS DIRECTLY -6- FROM THE CORPORATION FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A BENEFICIAL PURCHASER, THAT IS EXERCISING SUCH WARRANTS FOR ITS OWN ACCOUNT OR THE ACCOUNT OF SUCH BENEFICIAL PURCHASER WHEN SUCH PERSON AND ANY SUCH BENEFICIAL PURCHASER REMAIN INSTITUTIONAL ACCREDITED INVESTORS (AN INSTITUTION THAT SATISFIES ONE OR MORE OF THE CRITERIA SET FORTH IN SUBSECTIONS (1), (2), (3) AND (7) OF RULE 501(A) OF REGULATION D OF THE U.S. SECURITIES ACT), NEED NOT PROVIDE AN OPINION OF COUNSEL UNLESS REQUESTED BY THE CORPORATION. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT. 10. The Subscriber has received a copy of the Canadian Final Short-Form Prospectus, together with a U.S. covering memorandum, relating to the offering in the United States of the Units and it has had access to such additional information, if any, concerning the Corporation as it has considered necessary in connection with its investment decision to acquire the Units. 11. The Subscriber represents that it has such knowledge and experience in financial and business affairs as to be, or as a result of advice received from a registered person other than the Corporation or an affiliate or promoter thereof, capable of assessing the merits and risks associated with its proposed investment in the Units and it, or where it is not purchasing as principal, each beneficial purchaser, is able to bear the economic risk of loss of its investment hereunder. 12. The Subscriber acknowledges that it is not purchasing the Units as a result of any general solicitation or general advertising, as those terms are used in Regulation D under the Securities Act including, without limitation, advertisements, articles, notices and other communications published in any newspaper, magazine or similar media or broadcast over television or radio or any seminar or meeting whose attendees have been invited by general solicitation or general advertising. 13. The Subscriber understands and acknowledges that the Corporation (i) is under no obligation to be or to remain a "foreign issuer," (ii) may not, at the time we sell the Units or at any other time, be a "foreign issuer," and (iii) may engage in one or more transactions which could cause the Corporation not to be a "foreign issuer." If the Corporation is not a "foreign issuer" at the time of any sale pursuant to Rule 904 of Regulation S, the certificate delivered to the buyer may continue to bear the legend contained in paragraph (8) above. 14. The Subscriber acknowledges that the representations and warranties and agreements contained herein are made by the Subscriber with the intent that they may be relied upon by the Corporation in determining the Subscriber's eligibility or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Units. The Subscriber further agrees that by accepting the Units it shall be representing and warranting that the foregoing representations and warranties are true as at the closing time with the same force and effect as if they had been made by it at the closing time and that they shall survive the purchase by it of the Units and shall continue in full force and effect notwithstanding any subsequent disposition by it of the Units. CLOSING 15. The closing of this subscription will take place at the Time of Closing on the Closing Date (as each of such terms are defined in the Underwriting Agreement) and in the manner set forth in the Underwriting Agreement. 16. At the Closing Time the Corporation is irrevocably entitled to the Subscription Price, subject to the rights of the Subscriber under this Agreement and any applicable laws and the rights of the Underwriters under the Underwriting Agreement and any applicable laws. AUTHORITY OF UNDERWRITERS 17. The Underwriters, or any one of them are hereby appointed as the Subscriber's agent to act as the Subscriber's representative at the closing of the Offering for the purpose of all closing matters and deliveries of documents, including without limitation the delivery of certificates representing the Units, and -7- the Underwriters, or any one of them, are hereby irrevocably authorized by the Subscriber to, in their sole discretion: (a) execute in the Subscriber's name and on its behalf all closing receipts and documents required; (b) negotiate and settle any amendments thereto, the terms relating to the Offering, any related documents, indentures and agreements and any opinions, certificates or other documents addressed to the Subscriber; (c) extend or shorten time periods, or to modify or waive, in whole or in part, any representations, warranties, covenants or conditions contained herein or in any agreement or document ancillary or related thereto whether for the benefit of the Subscriber or not, provided that any material waiver shall only be made with the Subscriber's consent; and (d) correct manifest errors or omissions in the information provided by the Subscriber in this Subscription Agreement and accompanying documents. GENERAL 18. The Subscriber acknowledges that the representations, warranties and covenants contained herein including, without limitation, those set forth in Sections 3 to 17 are made with the intent that they may be relied upon by the Corporation and the Underwriters and their respective counsel in determining the Subscriber's eligibility to purchase the Units under the relevant securities legislation including, without limitation, the availability of exemptions from the registration requirements of applicable securities legislation in connection with the issuance of the Units to the Subscriber hereunder. The Subscriber further covenants that by the acceptance of the Units, it shall be representing and warranting that such representations and warranties are true as at the Closing Time as if made at that time. The Subscriber hereby agrees to indemnify the Corporation and the Underwriters and their respective directors, officers, employees, advisers, affiliates, shareholders and agents (including their respective legal counsel) against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur caused or arising from reliance thereon. The Subscriber undertakes to immediately notify the Corporation and the Underwriters of any change in any statement or other information relating to the Subscriber set forth herein which takes place prior to the Closing Time on the Closing Date. 19. The contract arising out of this Subscription Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia, without regard to the principles of conflicts of law of any jurisdiction and the Subscriber and the Corporation each irrevocably attorns to the jurisdiction of the courts of the Province of British Columbia. 20. Time shall be of the essence hereof. 21. This Subscription Agreement represents the entire agreement of the parties hereto relating to the subject matter hereof and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein. 22. The Subscriber acknowledges and agrees that all costs incurred by the Subscriber (including any fees and disbursements of any counsel retained by the Subscriber) relating to the sale of the Units to the Subscriber shall be borne by the Subscriber. 23. The terms and provisions of this Subscription Agreement shall be binding upon and enure to the benefit of the Subscriber and the Corporation and their respective heirs, executors, administrators, successors and assigns; provided that, except for the assignment by a Subscriber who is acting as nominee or agent to the beneficial owner and as otherwise herein provided, this Subscription Agreement shall not be assignable by any party without prior written consent of the other parties. 24. The Corporation and the Underwriters will have the right to accept or reject the Subscriber's offer to subscribe for Units in whole or in part at any time at or prior to the Closing Time. Notwithstanding the foregoing, the Subscriber acknowledges and agrees that the acceptance of this Subscription Agreement will -8- be conditional upon, among other things, the sale of the Units to the Subscriber being exempt from any registration requirements of applicable U.S. securities laws. 25. The Subscriber, on its own behalf and, if applicable, on behalf of others for whom it is contracting hereunder, agrees that this subscription is made for valuable consideration and may not be withdrawn, cancelled, terminated or revoked by the Subscriber, on its own behalf and, if applicable, on behalf of others for whom it is contracting hereunder. 26. Subject to Section 17, neither this Subscription Agreement nor any provision hereof shall be modified, changed, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought. 27. The covenants, representations and warranties contained herein shall survive the closing of the transactions contemplated hereby. 28. All references herein to "$" means, unless otherwise specified, Canadian dollars. SCHEDULE "E" UNDERWRITERS CERTIFICATE In connection with the private placement in the United States of units, each unit consisting of one common share and one-half of a share purchase warrant (the "Units") of Ivanhoe Mines Ltd. (the "Company") pursuant to an Underwriting Agreement dated as of December 8, 2003, among the Company and the Underwriters named therein (the "Underwriting Agreement"), the undersigned does hereby certify as follows: (i) each U.S. affiliate of each Underwriter (a "U.S. Placement Agents") who offered or sold Units in the United States is a duly registered broker or dealer with the United States Securities and Exchange Commission and is a member of and is in good standing with the National Association of Securities Dealers, Inc. on the date hereof; (ii) all offers of Units by U.S. Placement Agents and sales of Units to Substituted Purchases by the Company in the United States were made only to Institutional Accredited Investors (as defined below); (iii) all offers of Units in the United States have been effected in accordance with all applicable U.S. broker-dealer requirements; (iv) each offeree in the United States was provided with a copy of the U.S. Placement Memorandum which included the Final Prospectus filed in Canada for the offering of the Units; (v) immediately prior to transmitting the U.S. Placement Memorandum to such offerees, we had reasonable grounds to believe and did believe that each offeree was an institutional "accredited investor" that satisfied one or more of the criteria set forth in Rule 501(a)(1), (2), (3) or (7) of Regulation D (an "Institutional Accredited Investor") under the Securities Act of 1933, as amended (the "U.S. Securities Act"), and, on the date hereof, we continue to believe that each Substituted Purchaser purchasing Units from the Company is an Institutional Accredited Investor; (vi) no form of general solicitation or general advertising (as those terms are used in Regulation D under the 1933 Act) was used by us, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees had been invited by general solicitation or general advertising, in connection with the offer or sale of the Units in the United States or to U.S. persons; (vii) the offering of the Units in the United States has been conducted by us through our U.S. affiliates in accordance with the terms of the Underwriting Agreement; and - 2 - (viii) prior to any sale of Units in the United States we caused each U.S. purchaser to execute a U.S. Subscription Agreement in the form of Appendix IV to the Underwriting Agreement. Terms used in this certificate have the meanings given to them in the Underwriting Agreement unless otherwise defined herein. Dated this ______________day of December, 2003. HSBC SECURITIES (CANADA) INC. GMP SECURITIES LTD. By: _________________________________ By: _________________________________ Name: Name: Title: Title: CIBC WORLD MARKETS INC. UBS SECURITIES CANADA INC. By: _________________________________ By: _________________________________ Name: Name: Title: Title: [U.S. PLACEMENT AGENTS] No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. The securities offered hereby have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws. Accordingly, such securities may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This short form prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby within the United States. See "Plan of Distribution". INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH SECURITIES REGULATORY AUTHORITIES IN CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe Mines Ltd. at Suite 654 - 999 Canada Place, Vancouver, British Columbia V6C 3E1 (telephone (604) 688-5755). Short Form Prospectus New Issue December 12, 2003 IVANHOE MINES LTD. CDN.$131,250,000 12,500,000 UNITS CONSISTING OF 12,500,000 COMMON SHARES AND 6,250,000 PURCHASE WARRANTS This short form prospectus qualifies for distribution (the "Offering") 12,500,000 units ("Units") of Ivanhoe Mines Ltd. ("Ivanhoe" or the "Corporation") at a price of Cdn.$10.50 per Unit (the "Offering Price"). Each Unit consists of one common share in the capital of the Corporation ("Common Share") and one-half of one Common Share purchase warrant ("Purchase Warrant"). Each full Purchase Warrant will entitle the holder to purchase one Common Share at a price of Cdn.$12.00 at any time until the date that is one year following the closing of the Offering and at a price of Cdn.$12.50 at any time thereafter until the date that is two years following the closing of the Offering. See "Description of Purchase Warrants". The Common Shares and Purchase Warrants comprising the Units will separate immediately on the closing of the Offering. PRICE: CDN.$10.50 PER UNIT The Offering Price of the Units was determined by negotiation between Ivanhoe and HSBC Securities (Canada) Inc., GMP Securities Ltd., CIBC World Markets Inc. and UBS Securities Canada Inc. (collectively, the "Underwriters").
Net Proceeds to Price to the Public Underwriters' Fee(1) the Corporation (2) ------------------- -------------------- ------------------- Per Unit .................................. $ 10.50 $ 0.4725 $ 10.0275 Total ....................................... $ 131,250,000 $ 5,906,250 $ 125,343,750
Note: (1) Ivanhoe granted to the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 1,800,000 Units at a price per Unit equal to the offering price hereunder (the "Offering Price") to cover over-allotments, if any. The Underwriters' Option will be exercisable for a period of 30 days following the closing date of the Offering. If the full Underwriters' Option is exercised, the total Price to the Public, Underwriters' Fee and Net Proceeds to the Corporation will be Cdn.$150,150,000, Cdn.$6,756,750 and Cdn.$143,393,250, respectively. This prospectus qualifies the distribution of the Underwriters' Option, and the additional Units (Common Shares and Purchase Warrants) issuable upon the exercise of the Underwriters' Option. See "Plan of Distribution". 2 (2) Before deducting expenses of this Offering, estimated to be approximately Cdn.$750,000 which will be paid from the net proceeds of the Offering. The Underwriters, as principals, conditionally offer the Units, subject to prior sale, if, as and when issued by Ivanhoe and accepted by the Underwriters in accordance with the conditions contained in the Underwriting Agreement referred to under "Plan of Distribution" and subject to the approval of certain legal matters on behalf of Ivanhoe by Goodmans, Vancouver and on behalf of the Underwriters by Fasken Martineau DuMoulin LLP. Subscriptions for the Units will be received subject to rejection or allotment in whole or in part and the right is reserved to close the subscription books at any time without notice. Certificates representing the Common Shares and Purchase Warrants will be available for delivery at the closing of this Offering, which is expected to occur on or about December 19, 2003 (the "Closing Date"), or as otherwise agreed, but in any event no later than January 23, 2004. In accordance with applicable laws and policies, the Underwriters may effect transactions that stabilize or maintain the market price of the Common Shares. Such transactions, if commenced, may be discontinued at any time. See "Plan of Distribution". The Units will qualify as investments under certain statutes as described herein under the "Eligibility for Investment". The Common Shares are traded on the Toronto Stock Exchange (the "TSX") and the Australian Stock Exchange under the symbol "IVN" and are quoted on the NASDAQ National Market ("Nasdaq") under the symbol "HUGO". The price of the Common Shares at the close of business on December 11, 2003 was Cdn.$9.18 on the TSX and U.S.$6.99 on the Nasdaq. The TSX has conditionally approved for listing the Common Shares and the Purchase Warrants to be distributed pursuant to the Offering, including the Common Shares issuable upon exercise of the Purchase Warrants, on the TSX. Listing of such Common Shares and Purchase Warrants is subject to the Corporation fulfilling all the listing requirements of the TSX on or before March 8, 2004, including prescribed distribution requirements. 3 TABLE OF CONTENTS
PAGE ELIGIBILITY FOR INVESTMENT.................................................... 3 FORWARD LOOKING STATEMENTS.................................................... 4 CURRENCY AND EXCHANGE RATES................................................... 4 DOCUMENTS INCORPORATED BY REFERENCE........................................... 5 NAME AND INCORPORATION........................................................ 6 SUMMARY DESCRIPTION OF THE BUSINESS........................................... 8 CONSOLIDATED CAPITALIZATION................................................... 9 DESCRIPTION OF SHARE CAPITAL.................................................. 9 DESCRIPTION OF PURCHASE WARRANTS.............................................. 10 PLAN OF DISTRIBUTION.......................................................... 11 USE OF PROCEEDS............................................................... 14 OTHER FINANCIAL INFORMATION................................................... 15 OTHER MATERIAL FACTS.......................................................... 15 RISK FACTORS.................................................................. 15 AUDITORS, TRANSFER AGENT AND REGISTRAR........................................ 17 LEGAL MATTERS................................................................. 17 PURCHASERS' STATUTORY RIGHTS.................................................. 17 CERTIFICATE OF IVANHOE MINES LTD.............................................. 18 CERTIFICATE OF THE UNDERWRITERS............................................... 19 CONSENT OF DELOITTE AND TOUCHE LLP............................................ 20
ELIGIBILITY FOR INVESTMENT In accordance with legislation in effect at the date of this prospectus and subject to compliance with the prudent investment standards and general investment provisions and restrictions contained in the statutes referred to below (and, where applicable, the regulations made under those statutes) and, in certain cases, subject to the satisfaction of additional requirements relating to investment policies, standards, procedures or goals and in certain cases, subject to the filing of such policies, standards, procedures or goals with the appropriate regulatory authorities, the Units offered by this prospectus would not, if issued on the date hereof, be precluded as investments under the following statutes: Insurance Companies Act (Canada) Pension Benefits Standards Act, 1985 (Canada) Trust and Loan Companies Act (Canada) Financial Institutions Act (British Columbia) Pension Benefits Standards Act (British Columbia) Insurance Act (Alberta) Heritage Savings Trust Fund Act (Alberta) Loan and Trust Corporations Act (Alberta) Employment Pension Plans Act (Alberta) The Insurance Act (Manitoba) The Trustee Act (Manitoba) The Pension Benefits Standards Act (Manitoba) Pension Benefits Act (Ontario) Loan and Trust Corporations Act (Ontario) 4 In the opinion of Goodmans, counsel to the Corporation, and Fasken Martineau DuMoulin LLP, counsel to the Underwriters, provided the Common Shares offered hereby are listed on a prescribed stock exchange (which currently includes the TSX), based on the law as of the date hereof the Common Shares and the Purchase Warrants constituting the Units would, if issued on the date hereof, be qualified investments under the Income Tax Act (Canada) (the "Tax Act") and the regulations thereunder for trusts governed by registered retirement savings plans, registered retirement income funds, deferred profit sharing plans and registered education savings plans(collectively, "Registered Plans"). In the opinion of such counsel, based in part on a certificate of an officer of the Corporation, the Units would not as of the date hereof be considered foreign property under the Tax Act for trusts governed by Registered Plans. FORWARD LOOKING STATEMENTS Certain statements contained in this short form prospectus and in the documents incorporated by reference herein respecting reserves, resources, plans, objectives and future performance of Ivanhoe's business are forward-looking statements, within the meaning of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, discussions about scoping studies and feasibility studies being performed on the Oyu Tolgoi Project (as defined below) and the use of proceeds of the Offering. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in commodity prices, unanticipated reserve and resource grades, geological, metallurgical, processing, transportation, infrastructure and other problems, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, political risk and related economic risk, actual performance of plant, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risk factors incorporated by reference in this short form prospectus. See also "RISK FACTORS". CURRENCY AND EXCHANGE RATES In this short form prospectus, all references to "U.S.$" are to United States dollars and all references to "Cdn.$" are to Canadian dollars. The Bank of Canada noon buying rates for the purchase of one United States dollar using Canadian dollars were as follows during the indicated periods: (Stated in Canadian dollars)
NINE MONTHS ENDED SEPTEMBER 30, 2003 YEAR ENDED DECEMBER 31 ------------------ -------------------------------- 2002 2001 2000 End of period 1.3504 1.5796 1.5928 1.4995 High for the period 1.5747 1.6184 1.6052 1.5601 Low for the period 1.3342 1.5155 1.4901 1.4349 Average for the period 1.4295 1.5703 1.5484 1.4859
The Bank of Canada noon buying rate on December 11, 2003 for the purchase of one United States dollar using Canadian dollars was Cdn.$1.3263 (one Canadian dollar on that date equalled U.S.$0.7540). 5 DOCUMENTS INCORPORATED BY REFERENCE The following documents of Ivanhoe, filed with the various securities commissions or similar authorities in all of the provinces of Canada, are specifically incorporated by reference into, and form an integral part of, this short form prospectus: 1. Renewal Annual Information Form dated May 20, 2003 (the "AIF"). 2. Comparative consolidated financial statements of Ivanhoe for the years ended December 31, 2002 and 2001, together with the notes thereto and the auditors' report thereon and including the management's discussion and analysis of financial condition and results of operations ("MD&A") for such periods. 3. Comparative unaudited consolidated interim financial statements for the three and nine month periods ended September 30, 2003 and 2002, together with the MD&A for such periods. 4. Management Information Circular dated April 15, 2003 prepared in connection with Ivanhoe's annual meeting of shareholders held on June 12, 2003 (excluding the report on executive compensation, the performance graph and the statement of corporate governance practices). 5. Material Change Report dated March 7, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi gold and copper mineral project (the "Oyu Tolgoi Project") in Mongolia. 6. Material Change Report dated July 31, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project, as amended by an Amended and Restated Material Change Report dated August 18, 2003. 7. Material Change Report dated November 6, 2003 regarding the acquisition by Ivanhoe from BHP Minerals International Exploration Inc. ("BHP Exploration") of a 2% net smelter returns royalty over production from the Oyu Tolgoi Project. 8. Material Change Report dated November 20, 2003 respecting an updated independent resource estimate for Ivanhoe's Oyu Tolgoi Project. 9. Material Change Report dated December 12, 2003 regarding this Offering. Any documents of the type referred to in the preceding paragraph, interim financial statements and any material change reports (excluding confidential reports) filed by Ivanhoe with the securities commission or similar authority in each of the provinces of Canada subsequent to the date of this short form prospectus and prior to the termination of the Offering shall be deemed to be incorporated by reference in this short form prospectus. ANY STATEMENT CONTAINED IN A DOCUMENT INCORPORATED OR DEEMED TO BE INCORPORATED BY REFERENCE HEREIN SHALL BE DEEMED TO BE MODIFIED OR SUPERSEDED FOR PURPOSES OF THIS SHORT FORM PROSPECTUS, TO THE EXTENT THAT A STATEMENT CONTAINED HEREIN OR IN ANY SUBSEQUENTLY FILED DOCUMENT THAT ALSO IS OR IS DEEMED TO BE INCORPORATED BY REFERENCE HEREIN MODIFIES OR REPLACES SUCH STATEMENT. THE MODIFYING OR SUPERSEDING STATEMENT NEED NOT STATE THAT IT HAS MODIFIED OR SUPERSEDED A PRIOR STATEMENT OR INCLUDE ANY OTHER INFORMATION SET FORTH IN THE DOCUMENT THAT IT MODIFIES OR SUPERSEDES. THE MAKING OF A MODIFYING OR 6 SUPERSEDING STATEMENT SHALL NOT BE DEEMED AN ADMISSION FOR ANY PURPOSES THAT THE MODIFIED OR SUPERSEDED STATEMENT WHEN MADE, CONSTITUTED A MISREPRESENTATION, AN UNTRUE STATEMENT OF A MATERIAL FACT OR AN OMISSION TO STATE A MATERIAL FACT THAT IS REQUIRED TO BE STATED OR THAT IS NECESSARY TO MAKE A STATEMENT NOT MISLEADING IN LIGHT OF THE CIRCUMSTANCES IN WHICH IT WAS MADE. ANY STATEMENT SO MODIFIED OR SUPERSEDED SHALL NOT BE DEEMED IN ITS UNMODIFIED OR SUPERSEDED FORM TO CONSTITUTE A PART OF THIS SHORT FORM PROSPECTUS. INFORMATION HAS BEEN INCORPORATED BY REFERENCE IN THIS SHORT FORM PROSPECTUS FROM DOCUMENTS FILED WITH THE SECURITIES COMMISSION OF EACH OF THE PROVINCES OF CANADA. Copies of the documents incorporated herein by reference may be obtained on request without charge from the Secretary of Ivanhoe, Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1 (telephone (604) 688-5755). NAME AND INCORPORATION Ivanhoe was incorporated under the Company Act (British Columbia) on January 25, 1994 under the name 463212 B.C. Ltd. In February 1994, Ivanhoe changed its name to Indochina Goldfields Ltd. In March 1994, Ivanhoe increased its authorized capital from 10,000 common shares without par value to 100,000,000 common shares without par value and created 100,000,000 preferred shares without par value. In February 1995, Ivanhoe was continued under the Business Corporations Act (Yukon). In July 1997, Ivanhoe increased its authorized capital to an unlimited number of common shares without par value and an unlimited number of preferred shares without par value ("Preferred Shares"). In June 1999, Ivanhoe changed its name to Ivanhoe Mines Ltd. Ivanhoe's North American headquarters are located at Suite 654, 999 Canada Place, Vancouver, B.C. V6C 3E1. Ivanhoe's Asian headquarters are located at 37th Floor #2, Millenia Tower, 1 Temasek Avenue, Singapore 039192. The Corporation's registered office is located at Suite 300, 204 Black Street, Whitehorse, Yukon, Canada, Y1A 2M9. SUBSIDIARIES The corporate structure of Ivanhoe, its material subsidiaries, the percentage ownership in subsidiaries which are not wholly-owned by Ivanhoe and the jurisdiction of incorporation of such corporations as at the date of this short form prospectus are set out in the following chart. 7 [FLOWCHART] Note: All subsidiaries are wholly-owned unless otherwise indicated. "BVI" means British Virgin Islands. 8 SUMMARY DESCRIPTION OF THE BUSINESS Ivanhoe is an international mineral exploration and development company. Ivanhoe holds interests in and conducts operations on mineral resource properties in Mongolia, Myanmar, Australia, China and Kazakhstan, and holds interests through investments in mineral resource properties in Mongolia, China, South Korea and Vietnam. The Corporation has identified the Oyu Tolgoi Project in Mongolia, the Monywa copper project in Myanmar (the "Monywa Copper Project") and the Savage River iron ore mine in Tasmania, Australia (the "Savage River Project") as the mineral resource properties material to Ivanhoe. Ivanhoe's interests in Kazakhstan, Mongolia (other than the Oyu Tolgoi Project), China, Myanmar (other than the Monywa Copper Project), South Korea and Vietnam are not considered material. A brief description of the Oyu Tolgoi Project is set forth below. For a more detailed description of all of the Corporation's properties see "Item 3. General Development of the Business" and "Item 4. Narrative Description of Business" on pages 9 through 52 of Ivanhoe's AIF and the financial statements, MD&A and material change reports incorporated by reference in this short form prospectus. SUMMARY OF OYU TOLGOI PROJECT The Oyu Tolgoi Project is a copper and gold mineral exploration project located in the South Gobi region of Mongolia. Ivanhoe acquired its interest in the Oyu Tolgoi Project in 2001 from BHP Exploration pursuant to a May 2000 earn-in agreement. BHP Exploration retained a 2% net smelter returns royalty (the "BHP Royalty"). In November 2003, the Corporation agreed to purchase the BHP Royalty for U.S.$37,000,000. Ivanhoe has identified four occurrences of copper and gold mineralization on the Oyu Tolgoi property, the Southwest Oyu, Central Oyu, South Oyu and Hugo Dummet deposits. The Corporation has completed a series of substantial drilling programs to define the nature and extent of the mineralization in these deposits and has, to date, identified quantities of inferred mineral resources at all four deposits and indicated mineral resources at the Southwest Oyu deposit. The Corporation continues to drill the property in order to better define the nature and extent of the mineralization to date on the property, particularly at the Hugo Dummet deposit, and to upgrade the previously identified inferred resources to the measured and indicated categories. The Corporation is also carrying out a scoping study on the project, which is expected to be completed in January 2004 and is investigating opportunities to establish new infrastructure or improve existing infrastructure necessary to support potential mine development and production. The Corporation is in the process of negotiating a broadly-based, legally authorized global stability or concession agreement with the Government of Mongolia, the purpose of which is to maintain and/or enhance, for the Corporation's benefit, the Mongolian tax, fiscal and commercial environment over the life of the Oyu Tolgoi Project. The agreement is expected to address a range of matters including the following: project tax rates, confirmation of appropriate mining, land, license and infrastructure tenure necessary to carry out all exploration, mining, milling, processing, including smelting and refining, metallurgy and related activities over the life of the project, water resources and long term water rights, energy and transportation matters and approvals, labour and staffing requirements, mineral royalties, environmental protection requirements, assurances in connection with the Corporation's long term right to sell and export products from the project at international market prices, the right and entitlement to receive and dispose of hard currency income derived from such sale or export, reduction of, or exemption from, import and export duties, favourable bilateral border and customs matters, project duration, investor protection including matters relating to the purpose, amount and term of the investor's investment and dispute resolution mechanisms. As part of these negotiations, the parties are discussing an advance by the Corporation to the Government of up to U.S.$50 million on a basis to be negotiated, which may involve a prepayment or purchase of certain royalties and/or taxes that would otherwise accrue and become payable to the Government during the production phase of the project, a loan or on some 9 other basis. See "Use of Proceeds". There can be no assurance that the negotiations with respect to the stability agreement will be successful or that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. CONSOLIDATED CAPITALIZATION The following table sets forth the consolidated capitalization of Ivanhoe as of the dates indicated and reflects material changes in Ivanhoe's capitalization since December 31, 2002. The following table should be read in conjunction with Ivanhoe's comparative consolidated financial statements for the years ended December 31, 2002 and December 31, 2001 and the notes that accompany them.
As at As at As at December 31, 2002 October 31, 2003 October 31,2003 ----------------- ----------------- --------------- actual actual as adjusted(1) (unaudited) (unaudited) (in U.S.$000's) Loans Payable to Related Parties $ 5,088 $ 5,088 $ 5,088 Long-term Debt (including current portion) 29,300 23,414 23,414 Shareholders' Equity Share Capital Common Shares 522,199 612,233 706,635(2) Special Warrants 26,516 49,930 49,930 Additional Paid-in Capital 1,508 1,193(2) 1,193(2) Contributed Surplus (arising from stock- 3,520 3,495(2) 3,495(2) based compensation) Accumulated Deficit (364,751) (422,332)(2) (422,332)(2) ---------- ------------- ------------ Total Consolidated Capitalization $ 223,380 $ 273,021 $ 367,423 ========== ============= ============
(1) The adjusted figures as at October 31, 2003 give effect to the issue of the Units under the Offering for gross proceeds of Cdn.$131,250,000 (approximately U.S.$99,447,000) and reflect estimated expenses of the Offering amounting to approximately Cdn.$750,000 (approximately U.S.$570,000). No amount of the gross proceeds has been allocated to the Purchase Warrants. (2) Represents an estimate. DESCRIPTION OF SHARE CAPITAL The authorized share capital of Ivanhoe consists of an unlimited number of Common Shares without par value and an unlimited number of preferred shares without par value ("Preferred Shares"). As of the date of this short form prospectus, there are 249,583,819 Common Shares and no Preferred Shares issued and outstanding. Rights and restrictions in respect of the Common Shares and the Preferred Shares are set out in Ivanhoe's articles of continuance, Ivanhoe's by-laws and in the Yukon Business Corporations Act, and its regulations. The holders of Common Shares are entitled to one vote per Common Share at all meetings of shareholders except meetings at which only holders of another specified class or series of shares of the Corporation are entitled to vote separately as a class or series. The holders of Common Shares may appoint a proxy in accordance with Ivanhoe's by-laws and the Yukon Business Corporation Act. Subject to the prior right of the holders of Preferred Shares, the holders of Common Shares are entitled to receive dividends as and when declared by the directors, and to receive a pro rata share of the remaining property and assets of the Corporation in the event of liquidation, dissolution or winding up of the Corporation. The Common Shares have no pre- 10 emptive, redemption, purchase or conversion rights. Neither the Yukon Business Corporations Act nor the constating documents of the Corporation impose restrictions on the transfer of Common Shares on the register of the Corporation, provided that the Corporation receives the certificate representing the Common Shares to be transferred together with a duly endorsed instrument of transfer and payment of any fees and taxes which may be prescribed by the Board of Directors from time to time. There are no sinking fund provisions in relation to the Common Shares and they are not liable to further calls or to assessment by the Corporation. The Yukon Business Corporations Act provides that the rights and provisions attached to any class of shares may not be modified, amended or varied unless consented to by special resolution passed by a majority of not less than two-thirds of the votes cast in person or by proxy by holders of shares of that class. The Preferred Shares as a class rank senior to the Common Shares as to the payment of dividends and the distribution of property and assets on the liquidation, dissolution or winding-up of the Corporation. Holders of Preferred Shares are not entitled to any voting rights as a class except as may be provided under the Yukon Business Corporations Act and except those voting rights which attach to any series of Preferred Shares as determined by the directors of the Corporation from time to time. The Preferred Shares are issuable in one or more series, each consisting of such number of Preferred Shares as may be fixed by the Corporation's directors. The Corporation's directors may from time to time, by resolution passed before the issue of any Preferred Shares of any particular series, alter the constating documents of the Corporation to determine the designation of the Preferred Shares of that series and to fix the number of Preferred Shares therein and alter the constating documents to create, define and attach special rights and restrictions to the shares of that series, including, without limitation, the following: (i) the nature, rate or amount of dividends and the dates, places and currencies of payment thereof; (ii) the consideration for, and the terms and conditions of, any purchase of the Preferred Shares for cancellation or redemption; (iii) conversion or exchange rights; (iv) the terms and conditions of any share purchase plan or sinking fund; and (v) voting rights and restrictions. Registered holders of both the Preferred Shares and Common Shares are entitled, at their option, to a certificate representing their shares of the Corporation. DESCRIPTION OF PURCHASE WARRANTS The Purchase Warrants will be issued in registered form under a warrant indenture (the "Purchase Warrant Indenture") between the Corporation and CIBC Mellon Trust Company, in its capacity as the warrant trustee. The principal office of CIBC Mellon Trust Company in Vancouver, British Columbia and Toronto, Ontario will be the location at which the Purchase Warrants may be surrendered for exercise, transfer or exchange. The Purchase Warrants will survive for a term of two years following the closing of the Offering. Each Unit issued hereunder will include one half of one Purchase Warrant. Each full Purchase Warrant will entitle the holder to purchase one Common Share at a price of Cdn.$12.00 at any time until the date that is one year following the closing of the Offering and at a price of Cdn.$12.50 at any time thereafter until the date that is two years following the closing of the Offering. The Common Shares underlying the Purchase Warrants, when issued upon exercise of the Purchase Warrants, will be fully paid and non-assessable. The Corporation is not required to issue fractional Common Shares upon the exercise of Purchase Warrants and a holder of Purchase Warrants may not exercise less than one full Purchase Warrant at any time. A holder of Purchase Warrants will not possess any rights as a shareholder of the Corporation until he or she exercises the Purchase Warrants and acquires Common Shares. Purchase Warrants may be exercised upon surrender of the warrant certificate on or before the expiry date of the Purchase Warrants at the principal office of CIBC Mellon Trust Company in Vancouver, British Columbia and Toronto, Ontario, with the exercise form found on the back of the warrant certificate completed and executed as indicated, accompanied by payment of the exercise price (by money order, bank draft or certified cheque 11 payable to or to the order of "Ivanhoe Mines Ltd.") for the number of Common Shares with respect to which the Purchase Warrants are being exercised. The Purchase Warrant Indenture includes a provision in which the rights attached to the Purchase Warrants may be modified to the extent necessary to comply with the rules of the Australian Stock Exchange. The Purchase Warrant Indenture has been reviewed by the Australian Stock Exchange who have not required any amendments to the terms of the Purchase Warrants. Nevertheless, to the extent the rules or policies of the Australian Stock Exchange change in the future, such changes may result in amendments to the terms of the Warrants. The Purchase Warrant Indenture will provide for adjustment in the number of Common Shares issuable upon the exercise of the Purchase Warrants and/or the exercise price per Common Share in the event of: (i) the subdivision or consolidation of the Common Shares or issuance of a stock dividend on the Common Shares or other distribution of Common Shares or securities convertible into Common Shares (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture); (ii) the issuance of rights, options or warrants to purchase Common Shares or securities convertible into Common Shares at less than 95% of the "current market price" (as defined in the Purchase Warrant Indenture) of the Common Shares; and (iii) the distribution to all or substantially all the holders of Common Shares of shares of any other class or of rights, options or warrants (other than those referred to in (ii), above) to acquire Common Shares or securities convertible into Common Shares or property or other assets of the Corporation or of evidences of indebtedness or of assets (other than a "dividend paid in the ordinary course", as defined in the Purchase Warrant Indenture). The Purchase Warrant Indenture will also provide for adjustment in the class and/or number of securities issuable upon the exercise of the Purchase Warrants and/or exercise price per security in the event of: (i) any reclassification of the Common Shares or a capital reorganization other than those referred to above; (ii) an amalgamation, merger, consolidation or other business combination of the Corporation with another entity; or (iii) the transfer of all or substantially all of the assets of the Corporation. No adjustment in the exercise price or the number of Common Shares purchasable upon the exercise of the Purchase Warrants will be required to be made unless the cumulative effect of such adjustment or adjustments would change the exercise price by at least 1% or the number of Common Shares purchasable upon exercise by at least one one-hundredth of a share. Holders of Purchase Warrants will not have any voting or pre-emptive rights or any other rights which a holder of Common Shares would have. The rights of the holders of Purchase Warrants will be subject to modification by "extraordinary resolution", which will be defined in the Purchase Warrant Indenture as a resolution either passed at a meeting of the holders of Purchase Warrants by holders of not less than 66% of the Purchase Warrants represented at the meeting or adopted by instruments in writing signed by the holders of not less than 66% of all Purchase Warrants then outstanding. Subject to certain exceptions, the Purchase Warrants may not be exercised within the United States or by or on behalf of any U.S. Person (as defined in Regulation S under the U.S. Securities Act) and no certificate evidencing any Common Share issuable upon the exercise of a Purchase Warrant will be delivered to any address in the United States. See "Plan of Distribution". The foregoing discussion of the material terms and provisions of the Purchase Warrants is qualified in its entirety by reference to the detailed provisions of the Purchase Warrant Indenture, a copy of which may be obtained by contacting the Corporation. PLAN OF DISTRIBUTION Pursuant to an underwriting agreement (the "Underwriting Agreement") dated as of December 8, 2003 between the Corporation and the Underwriters, as underwriters, the Corporation has agreed to sell and the Underwriters have agreed to purchase on or about December 19, 2003 or as otherwise agreed, but in any event not later than January 23, 2004, 12,500,000 Units at a price of Cdn.$10.50 per Unit payable in cash against delivery. Each Unit consists of one Common Share and one half of one Purchase Warrant. The total consideration of the 12 Offering will be Cdn.$131,250,000. The Corporation also granted to the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 1,800,000 Units issuable hereunder at the Offering Price, exercisable at any time prior to 30 days following the closing date of the Offering, to cover over-allotments, if any. This short form prospectus qualifies the distribution of the Underwriters' Option and the additional Units (Common Shares and Purchase Warrants) issuable upon the exercise of the Underwriters' Option. The Offering Price was determined by negotiation between Ivanhoe and the Underwriters. The Underwriting Agreement states that the Corporation will pay to the Underwriters a fee equal to 4.5% of the total gross proceeds received by the Corporation in consideration of services rendered by them in connection with the Offering. The obligations of the Underwriters under the Underwriting Agreement may be terminated on the occurrence of certain stated events. The Underwriters are, however, obligated to take up and pay for all of the Units offered hereby if any are purchased under the Underwriting Agreement. The Corporation has agreed to indemnify the Underwriters and their broker/dealer affiliates against certain liabilities, including liabilities under the United States securities laws and under Canadian securities legislation, and to contribute to payments that the Underwriters may be required to make in respect thereof. Ivanhoe has agreed not to reserve, allot, create or issue, or enter into an agreement or publicly announce any intention to reserve, allot, create or issue any Common Shares or any securities convertible into or exchangeable for Common Shares without the prior written consent of the Underwriters, such consent not to be unreasonably withheld, until the date which is 90 days after the closing of the Offering, except pursuant to this offering or: (i) the grant or exercise of stock options pursuant to Ivanhoe's equity incentive plan; (ii) the exercise or conversion of outstanding warrants or other convertible securities or similar rights; and (iii) the issuance of securities in connection with property or share acquisitions in the normal course of business. The TSX has conditionally approved for listing the Common Shares and the Purchase Warrants to be distributed pursuant to the Offering, including the Common Shares issuable upon exercise of the Purchase Warrants, on the TSX. Listing of such Common Shares and Purchase Warrants is subject to the Corporation fulfilling all the listing requirements of the TSX on or before March 8, 2004, including prescribed distribution requirements. Pursuant to policies of the Ontario Securities Commission, the Underwriters may not, throughout the period of distribution under this short form prospectus, bid for or purchase Common Shares. The foregoing restriction is subject to certain exceptions, on the condition that the bid or purchase not be engaged in for the purpose of creating actual or apparent active trading in or raising the price of the Common Shares. These exceptions include a bid or purchase permitted under the by-laws and rules of the TSX relating to market stabilization and passive market making activities and a bid or purchase made for or on behalf of a customer where the order was not solicited during the period of distribution. The Corporation has been advised that, in connection with the Offering and subject to the foregoing, the Underwriters may over-allot or effect transactions which stabilize or maintain the market price of the Common Shares at levels above that which would otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. Such a transaction would not occur in Australia. U.S. SALES The Units, the Common Shares, the Purchase Warrants and the Common Shares issuable upon exercise, if any, of the Purchase Warrants have not been and will not be registered under the U.S. Securities Act or any state securities laws, and accordingly may not be offered or sold within the United States or to U.S. persons; except that the Underwriters may, through certain of their qualified U.S. broker-dealer affiliates, offer Units in transactions that comply with exemptions from registration under the U.S. Securities Act and applicable state securities laws. 13 This prospectus does not constitute an offer to sell or a solicitation of an offer to buy, any of the Units in the United States. The Underwriters have agreed that, except in certain transactions exempt from the registration requirements of the U.S. Securities Act, they will not offer or sell within the United States or to, or for the account or benefit of, U.S. persons, the Units as part of their distribution. The Underwriters have further agreed that all offers and sales of the Units will be made in compliance with Rule 903 or 904 of Regulation S under the U.S. Securities Act, or in compliance with an exemption from registration thereunder, and that they will have sent to each dealer, or other person who is receiving a selling concession, fee or other remuneration in respect of the Units to which they sell, a confirmation or other notice setting forth the restrictions on offers and sales of the Units within the United States or to or for the account or benefit of U.S. persons. Common Shares comprised in the Units and Common Shares acquired upon exercise of the Purchase Warrants may be resold on the TSX pursuant to Rule 904 of Regulation S under the U.S. Securities Act, which requires, among other things, that neither the seller of the Common Shares nor any person acting on its behalf is aware of the fact that: (i) the offeree or the buyer is in the United States, or (ii) the transaction has been pre-arranged with a buyer in the United States. Terms used in this paragraph have the meanings ascribed to them by Regulation S under the U.S. Securities Act. In addition, until 40 days after the commencement of this Offering, an offer or sale of the Common Shares or Purchase Warrants comprised in the Units within the United States by any dealer, whether or not participating in this Offering, may violate the registration requirements of the U.S. Securities Act if such offer or sale is made otherwise than in accordance with an available exemption under the U.S. Securities Act. The Purchase Warrants will not be exercisable in the United States or by or on behalf of a U.S. person unless an exemption from the registration requirements under the U.S. Securities Act and any applicable state securities law is available, and the Corporation has received an opinion of counsel to such effect, provided however, that an institutional accredited investor that was the original purchaser of Units in the Offering in the United States will not be required to deliver an opinion letter in connection with the exercise of Purchase Warrants that were part of those Units. Certificates representing any securities which are sold in the United States or to or for the account or benefit of a U.S. person will bear a legend to the effect that the securities represented thereby are not registered under the U.S. Securities Act and may only be offered pursuant to certain exemptions from the registration requirements of the U.S. Securities Act. AUSTRALIAN SALES The Units, the Common Shares, the Purchase Warrants and the Common Shares issuable upon exercise of the Purchase Warrants will not have been issued under an Australian disclosure document. The Offering, to the extent it includes persons in Australia, will be restricted to professional or sophisticated investors or to other persons not requiring the use of an Australian disclosure document. Ivanhoe intends to qualify for Australian on-sale (if required) the Common Shares issued on the closing of the Offering and any Common Shares issued on exercise of the Purchase Warrants and the Underwriters' Option (including Purchase Warrants issuable upon exercise of the Underwriters' Option) by giving a notification to the Australian Stock Exchange under Category 1 of ASIC Class Order [CO 02/1180] at or about, and in any event by no later than 2 business days after, the time of issue of such Common Shares. The giving of such notification is intended to enable any seller to make an offer of the Common Shares for sale in Australia within 12 months after their issue. In order to rely on Category 1 of the Class Order, the offer for sale in Australia made by a seller must not occur until after this notification has occurred. Certain Australian on-sale restrictions for Common Shares may apply to persons exercising Purchase Warrants and such persons should obtain advice in this regard. 14 Common Shares in Ivanhoe are quoted ED securities under section 111AM of the Corporations Act in Australia and have been so at all times since 1 July 2002. USE OF PROCEEDS On October 31, 2003, Ivanhoe completed a private placement of special warrants (the "Special Warrant Private Placement"). See "Other Material Facts". The aggregate net proceeds of the Special Warrant Private Placement were approximately U.S.$49,930,000 (approximately Cdn.$65,518,000). The aggregate net proceeds received by Ivanhoe from the sale of the Units pursuant to this Offering (excluding the sale of any Units to be issued on the exercise of the Underwriters' Option), after deducting the Underwriters' fee of Cdn.$5,906,250 (approximately U.S.$4,475,000) and payment of expenses of the Offering, including preparation of this short form prospectus, estimated to be Cdn.$750,000 (approximately U.S.$570,000) will be approximately U.S.$94,402,000. Ivanhoe intends to allocate the combined net proceeds of this Offering and the Special Warrant Private Placement as follows:
USE OF PROCEEDS AMOUNT --------------- ------ Payment of the purchase price for the BHP Royalty(1) U.S.$ 37,000,000 Exploration and development expenditures on the Oyu Tolgoi Project and elsewhere in Mongolia(2) U.S.$ 50,000,000 General and administrative expenditures (2) U.S.$ 7,332,000 Working capital(3) U.S.$ 50,000,000 ---------------- Total U.S.$144,332,000 ================
Notes: (1) U.S. $17 million was paid to BHP Exploration in November 2003. (2) The Corporation anticipates incurring these expenditures through the third quarter of 2004, subject to finalization of project expenditure budgets for the entire 2004 fiscal year and to the results and recommendations of a scoping study on the Oyu Tolgoi Project which is expected to be completed in early 2004. Ivanhoe plans to use existing financial resources to cover expenditures on projects outside Mongolia. (3) As part of the Corporation's ongoing negotiations with the Government of Mongolia respecting a stability agreement for the Oyu Tolgoi Project, the Corporation and the Government are also discussing an advance by the Corporation to the Government of up to U.S.$50 million on a basis to be negotiated, which may involve a prepayment or purchase of certain royalties and/or taxes that would otherwise become payable to the Government during the production phase of the project, a loan or on some other basis. See "Summary Description of the Business - Summary of Oyu Tolgoi Project". If and when an agreement respecting such an advance is reached, the Corporation may use up to U.S.$50 million from the proceeds of the Offering, currently allocated as working capital, to the Government to fund the advance. There can be no assurance that the negotiations with respect to the stability agreement will be successful or that the terms and conditions of the stability agreement will, in all events, be favourable to the Corporation. 15 OTHER FINANCIAL INFORMATION AMENDED AND RESTATED QUARTERLY DATA ($ in millions except per share information)
2002 2001(1) ------------------------------ ----------------------------- Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ------------------------------ ----------------------------- Revenue 21.3 19.3 24.8 21.8 19.5 15.9 21.9 18.0 Operating profit (0.7) 2.1 5.6 4.5 1.2 2.1 1.1 5.6 Net (income) loss 28.8 (0.5) 2.6 (0.7) 68.0 6.0 2.1 8.9 Cash provided (used) by operations (8.8) (11.2) (4.2) (0.5) (7.4) (4.7) 5.6 (6.7) Loss per share $0.15 $0.00 $0.01 $0.00 $0.52 $0.05 $0.02 $0.07
(1) Restated to give retroactive effect to an accounting change made in 2001 Q4. OTHER MATERIAL FACTS On December 5, 2003, Ivanhoe filed with the securities commissions in each of British Columbia and Ontario a preliminary short form prospectus relating to the issuance of 5,760,000 units, each unit consisting of one Common Share and one Common Share purchase warrant, issuable upon the exercise or deemed exercise of 5,760,000 previously issued special warrants sold pursuant to the Special Warrant Private Placement. Each ten of those Common Share purchase warrants entitle the holder to purchase one Common Share at a price of U.S.$8.68 at any time on or before February 15, 2004. The Corporation has agreed to issue 115,207 Common Shares to CIBC World Markets plc with respect to corporate finance matters, including advice provided to the Corporation with respect to the Special Warrant Private Placement. RISK FACTORS Investment in securities of Ivanhoe involves a significant degree of risk and should be considered speculative due to the nature of Ivanhoe's business and the present stage of its development. Investors should give careful consideration to the risk factors described in "Item 4. Narrative Description of Business - Risk Factors" on pages 54 through 63 of Ivanhoe's AIF, which is incorporated by reference in this short form prospectus. These risk factors include: - Ivanhoe's business in Mongolia may be harmed if the country fails to complete its transition from state socialism and a planned economy to political democracy and a free market economy; - future amendments to Mongolian laws could weaken, shorten or curtail Ivanhoe's mineral exploration rights or make it more difficult or expensive to obtain mining rights and carry out mining; - the mineral resources identified on the Oyu Tolgoi Project have not demonstrated economic viability and the feasibility of mining has not been established; - lack of infrastructure in proximity to the Oyu Tolgoi Project could adversely affect mining feasibility; 16 - Ivanhoe's exploration licenses could expire before Ivanhoe is ready or able to obtain a mining license; - economic sanctions imposed by the United States and Canada against Myanmar may adversely affect the Monywa Copper Project; - Ivanhoe faces geotechnical and development risks at the Monywa Copper Project; - there can be no assurance that Ivanhoe will be capable of raising the additional funding that it needs to carry out its development and exploration objectives; - Ivanhoe has a limited customer base for its products and needs to secure additional markets; - the Savage River Project is dependent on older process facilities and pipeline operations which may be prone to failure or breakdown; - there is a risk of long term decline in pellet grade at the Savage River Project; - the pit wall of the Savage River pit requires additional work to ensure its stability; - there can be no assurance that the interest held by Ivanhoe in its exploration, development and mining properties is free from defects or that material contractual arrangements between Ivanhoe and entities owned or controlled by foreign governments will not be unilaterally altered or revoked; - competition for new mining properties by larger, more established companies may prevent Ivanhoe from acquiring interests in additional properties or mining operations; - Ivanhoe has a limited operating history, and there is no assurance that it will be capable of consistently producing positive cash flows; - a substantial portion of Ivanhoe's operations involve exploration and development and there is no guarantee that any such activity will result in commercial production of mineral deposits; - mining operations are subject to numerous hazards that could have a material adverse effect on the financial position of Ivanhoe; - calculation of reserves and metal recovery is only an estimate, and there can be no assurance about the quantity and grade of minerals until reserves or resources are actually mined; - fluctuations in currency exchange rates may adversely affect ABM's financial position and results of operations; - the indebtedness on the Monywa Copper Project is subject to floating interest rates; - the Monywa Copper Project is not in full compliance with certain covenants under its principal project financing agreement; - metal prices are volatile; - Ivanhoe is exposed to risks of changing political stability and government regulation in the countries in which it operates; 17 - Ivanhoe is subject to substantial environmental and other regulatory requirements and such regulations are becoming more stringent. Non-compliance with such regulations, either through current or future operations or a pre-existing condition could materially adversely affect Ivanhoe; - previous mining operations may have caused environmental damage at Ivanhoe mining sites, and its indemnities and exemptions from liability may not be effective; - Ivanhoe's prospects depend on its ability to attract and retain key personnel, and; certain directors of Ivanhoe are directors or officers of, or have significant shareholdings, in other mineral resource companies and there is the potential that such directors will encounter conflicts of interest with Ivanhoe. AUDITORS, TRANSFER AGENT AND REGISTRAR The auditors of Ivanhoe are Deloitte & Touche LLP, Chartered Accountants, Vancouver, British Columbia. The registrar and transfer agent for the Common Shares in Canada is CIBC Mellon Trust Corporation at its principal offices in Vancouver and Toronto. LEGAL MATTERS Certain Canadian legal matters in connection with this Offering will be passed upon by Goodmans on behalf of Ivanhoe and by Fasken Martineau DuMoulin LLP on behalf of the Underwriters. As at the date hereof, the partners and associates of Goodmans, as a group, and the partners and associates of Fasken Martineau DuMoulin LLP, as a group, beneficially own directly or indirectly less than one percent of the outstanding Common Shares. PURCHASERS' STATUTORY RIGHTS Securities legislation in the provinces of Canada provides purchasers with the right to withdraw from an agreement to purchase securities offered hereby. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment thereof. In several of the provinces of Canada, securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, damages if the prospectus and any amendment thereto contains a misrepresentation or is not delivered to the purchaser, provided that such remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province. The purchaser should refer to any applicable provisions of the securities legislation of such purchaser's province for the particulars of these rights or consult with a legal adviser. 18 CERTIFICATE OF IVANHOE MINES LTD. Dated: December 12, 2003 This short form prospectus, together with the documents incorporated herein by reference, constitutes full, true and plain disclosure of all material facts relating to the securities being offered by this short form prospectus as required by the securities legislation of the province of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland. (signed) Robert M. Friedland (signed) Pierre Masse Chief Executive Officer Chief Financial Officer On behalf of the Board of Directors (signed) R. Edward Flood (signed) Kjeld Thygesen Director Director 19 CERTIFICATE OF THE UNDERWRITERS Dated: December 12, 2003 To the best of our knowledge, information and belief, this short form prospectus, together with the documents incorporated herein by reference, constitutes full, true and plain disclosure of all material facts relating to the securities being offered by this short form prospectus as required by the securities legislation of the province of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland. HSBC SECURITIES (CANADA) INC. GMP SECURITIES LTD. CIBC WORLD MARKETS INC. (signed) Jeffrey B. Allsop (signed) Mark Wellings (signed) David A. Scott UBS SECURITIES CANADA INC. (signed) Steven A. Latimer 20 CONSENT OF DELOITTE AND TOUCHE LLP We have read the short form prospectus of Ivanhoe Mines Ltd. (the "Company) dated December 12, 2003 relating to the issue and sale of Units consisting of Common Shares and Purchase Warrants. We have complied with Canadian generally accepted standards for an auditor's involvement with offering documents. We consent to the incorporation by reference in the above-mentioned short form prospectus of our report to the shareholders of the Company on the consolidated balance sheets as at December 31, 2002 and 2001 and the consolidated statements of operations, shareholders' equity and cash flows for each of the years then ended. Our report is dated March 14, 2003. (Signed) Deloitte & Touche LLP Chartered Accountants Vancouver, British Columbia December 12, 2003