Ivanhoe Mines Announces Discovery of Copper Mineralization on Surface at Project Licences in Kazakhstan

Core Viewpoint - Ivanhoe Mines has announced the discovery of copper mineralization on the surface at its joint venture project in the Chu-Sarysu Basin, Kazakhstan, and has commenced a 15,000-meter diamond drill campaign across a 16,000 km² license package [1][2][10]. Group 1: Exploration Activities - The Chu-Sarysu Basin is the world's third-largest sediment-hosted copper basin, covering an area over seven times larger than Ivanhoe's Western Forelands Exploration Project in the Democratic Republic of the Congo [2]. - Recent fieldwork on the Merke license has identified a 20-meter thick zone of copper mineralization, with samples returning between 1.0% and 5.0% copper [3][4]. - The discovery supports the theory that mineralization is structurally controlled, with faults and fractures acting as conduits for copper-bearing fluids [4][7]. Group 2: Drilling Campaign - A 15,000-meter drill campaign has commenced in the western section of the joint venture's license package, specifically on the Glubokoe license [10][11]. - The initial drill holes are expected to be between 800 and 1,000 meters deep, aimed at calibrating results with historic and newly acquired geophysical datasets [12][29]. Group 3: Geological Context - The Chu-Sarysu Basin hosts approximately 27 million tonnes of known copper and is home to the world-class Dzhezkazgan deposit, which has been mined for over a century [14]. - The US Geological Survey estimates that there remains about 25 million tonnes of undiscovered copper in the basin, indicating significant untapped potential [15]. Group 4: Economic and Strategic Context - Kazakhstan is recognized as a low-cost, mining-friendly jurisdiction, contributing approximately 14% to the country's GDP and 17.5% to its exports, equivalent to about US$10.5 billion [19]. - Despite its geological potential, exploration expenditure in Kazakhstan has lagged, averaging around $100 million annually over the past 15 years, although recent activity has increased due to streamlined licensing processes [21]. Group 5: Joint Venture Details - Ivanhoe Mines formed a strategic alliance and joint venture with UK-based Pallas Resources, accumulating a license package totaling over 16,000 km² across seven projects [22]. - The company plans to sole-fund up to $18.7 million over the first two years and can earn up to 80% in all seven projects for a maximum consideration of $115 million over four years [23][24].