Ivanhoe Mines identifies Cu mineralization at Merke

Executive Summary

• Ivanhoe Mines + Pallas Resources discovered a ~20‑m thick zone of surface copper mineralization (malachite, azurite, chalcocite) on the Merke licence in Kazakhstan’s Chu‑Sarysu basin.
• Diamond drilling has begun on the Glubokoe licence as part of an approximately 15,000 m drill program planned for 2025, targeting extensions of historic copper intervals.
• Ivanhoe will fund up to US$18.7 million over the first two years of the joint‑venture and may earn up to an 80% interest in all seven licences (maximum US$115 million consideration).

Key Details

• Joint Venture: Ivanhoe Mines and UK‑based Pallas Resources formed a JV (announced Feb 12 2025) covering ~16,000 km² across seven licences in the Chu‑Sarysu basin.
• Surface Discovery – Merke Licence:
• ~20 m thick copper mineralization outcropping at surface.
• Visible minerals: malachite, azurite, chalcocite.
• Sample assays range from 1.0 % to 5.0 % Cu along a 36‑km stratigraphic trend.
• Drilling – Glubokoe Licence:
• First drill hole commenced within 10 months of JV formation.
• Target: extensions of Soviet‑era copper intervals (three intervals over 26 m total).
• Initial holes planned at 800–1,000 m depth; part of a ~15,000 m program for 2025.
• Exploration Strategy: Follow‑up work will prioritize detailed structural mapping, high‑resolution magnetic surveys, and evaluation of basement contacts/fault systems as fluid pathways.
• Geological Context: Chu‑Sarysu basin is the world’s third‑largest sediment‑hosted copper system (≈27 Mt known Cu; USGS estimates ≈25 Mt undiscovered). Also hosts lead, zinc, silver, barium, strontium.
• Jurisdictional Advantages: Kazakhstan offers low‑cost operations, skilled labor, and a mining‑friendly regulatory environment; exploration spend historically low (~US$100 M/yr) but rising recently.
• Financing Commitment: Ivanhoe to sole‑finance up to US$18.7 million over the first two years; option to earn up to 80 % of all seven licences for a total consideration of US$115 million over four years.

Notable Quotes

• “The discovery of copper mineralization at surface strongly supports our thesis that mineralization is structurally controlled, with faults and fractures acting as conduits for copper‑bearing fluids.” – Robert Friedland, Founder & Executive Chairman, Ivanhoe Mines Ltd.