Press Reelase dated December 7, 2005
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
From: Dec. 07, 2005
IVANHOE MINES LTD.
(Translation of Registrants Name into English)
Suite 654
999 CANADA PLACE, VANCOUVER, BRITISH COLUMBIA V6C 3E1
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F.)
(Indicate by check mark whether the registrant by furnishing the information contained in this form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
(If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82- .)
Enclosed:
Press release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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IVANHOE MINES LTD.
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Date: December 7, 2005 |
By: |
/s/ Beverly A. Bartlett
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BEVERLY A. BARTLETT |
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Corporate Secretary |
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Analytical Results Indicate Metallurgical-Grade Coal
at Ivanhoes Nariin Sukhait Coal Deposit, Mongolia
ULAANBAATAR, MONGOLIA Gene Wusaty, Ivanhoe Mines President, Coal Division, and
John Macken, Ivanhoes President, are pleased to announce that independent analytical data on core
samples from recent drill holes completed at Ivanhoe Mines Nariin Sukhait Coal Project indicate
that a significant portion of the coal discovery contains indicators of metallurgical-grade
(coking) coal. The coal is high quality in terms of calorific value, has low associated sulphur and
has low to moderate ash.
Core from three drill holes in the West Field of Ivanhoes Nariin Sukhait license area contain a
number of indicators of metallurgical-grade (coking) coal; bituminous rank, high FSI, low ash, very
low phosphorous and low sulfur content. These qualities are amenable for making coke, a critical
component in steel making. The coal exhibiting these qualities appears to lie in the lower
portions of the very thick seams (up to 50 metres) that have been intersected in the extensive
drill program completed this year. Further work will define distinct benches which are suitable
for use as a blend coal in producing coke for the Chinese steel industry.
Core samples from other drill holes in the West Field area are now being tested. Once completed,
geologic models representing the distribution of key coal quality parameters will be prepared by
Norwest. Additional efforts will focus on determining the stratigraphic boundaries between the
thermal and metallurgical-grade products.
Salient aspects of analytical data include:
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All samples indicate the coal rank (ASTM) as high volatile A bituminous (hvAb),
containing volatiles of 32% 35% on a dry basis. |
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Samples indicate a low to very low phosphorous content
(0.001% 0.010%) |
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Total alkali (K2O and NaO)
content also is indicated to be low (0.23% 1.01%) |
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Relatively low sulfur (0.3% to 1.0%) and low ash content on an unwashed (raw) basis
(5.5% 12.0%) are indicated. |
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A direct correlation appears to exist between increasing coal depth and increasing free
swelling indices (FSI), with the higher values ranging between 6 and 8. |
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Selective mining may be able to produce a raw, low ash (<7%), high FSI (>6) and
low alkali (<0.35%) product |
Though high volatile coals are not generally used alone in the making of coke, but they are
commonly traded in the export market and typically blended with low and/or mid-volatile coals
depending on specific customer requirements. Tables 1 & 2 illustrate the actual sample data and
key metallurgical properties.
Nariin Sukhait, Ivanhoes most advanced coal project, is located approximately 40 kilometres north
of the Mongolia-China border. Independent estimates prepared by Norwest Corporation of Salt Lake
City, Utah, based on drilling to August 9, 2005, total approximately 116 million tonnes of measured
plus indicated resources* (see Ivanhoe Mines news release October 16, 2005). New resource
estimates based on drilling through mid-November, 2005, are expected before the end of the year.
The resource estimates were prepared to depths of 250 metres. Though the recent analytical data is
encouraging, it is clear that only a portion of the total resources contain these favorable
metallurgical characteristics.
To put this information in perspective, the 2005 contract price range for seaborne
high-quality thermal coal is approximately US$45 to US$60 a tonne.
Depending on quality, world prices for metallurgical coal range from US$70 for
semi-soft coking coal to more than US$125 for hard coking coal, Mr. Wusaty said.
Northern China will likely be the end user of our coal from Nariin Sukhait and it is a market that
is experiencing significant industrial growth and widespread coal shortages.
Table 1: Nariin Sukhait Unwashed Composite West Field Resource Area
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Seam Interval (m) |
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Unwashed Composite |
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Hole Number |
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Sample Id |
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From |
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To |
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Seam |
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*Thickness (m) |
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Ash (% Dry) |
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Btu/lb (% Dry) |
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Volatiles (% Dry) |
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Sulfur (% Dry) |
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Volatiles (MAF) (ASTM) |
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Rank (ASTM) |
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NSW-35 |
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S5 THRU S23 |
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117.2 |
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128.6 |
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5 |
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11.4 |
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6.7 |
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13,654 |
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34 |
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0.93 |
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36.5 |
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hvAb |
NSW-35 |
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S24 THRU S40 |
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129.1 |
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139.1 |
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5 |
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10.0 |
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6.8 |
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13,646 |
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34 |
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0.99 |
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36.7 |
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hvAb |
NSW-35 |
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S41 THRU S81 |
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139.4 |
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163.7 |
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5 |
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24.3 |
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6.6 |
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13,714 |
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35 |
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0.71 |
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37.2 |
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hvAb |
NSW-35 |
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S82 THRU S98 |
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164.1 |
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174.1 |
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5 |
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10.0 |
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7.1 |
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13,691 |
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33 |
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0.54 |
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35.9 |
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hvAb |
NSW-35 |
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S99 THRU S149 |
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174.6 |
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204.7 |
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5 |
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30.1 |
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5.5 |
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13,844 |
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34 |
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0.48 |
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35.9 |
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hvAb |
NSW-35 |
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S151 THRU S164 |
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205.3 |
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213.2 |
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5 |
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7.9 |
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5.4 |
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14,190 |
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33 |
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0.48 |
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34.6 |
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hvAb |
NSW-35 |
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S166 THRU S174 |
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213.6 |
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218.7 |
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5 |
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5.1 |
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12.0 |
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13,159 |
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32 |
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0.76 |
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36.9 |
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hvAb |
NSW-35 |
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S176 THRU S192 |
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219.0 |
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229.0 |
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5 |
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10.0 |
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6.5 |
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13,827 |
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33 |
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0.33 |
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35.7 |
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hvAb |
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NSW-36 |
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S1 THRU S20 |
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115.3 |
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127.0 |
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6b |
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11.7 |
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9.3 |
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13,146 |
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34 |
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1.05 |
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37.4 |
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hvAb |
NSW-36 |
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S22 THRU S31 |
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134.7 |
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140.5 |
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6 |
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5.8 |
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6.4 |
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13,643 |
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33 |
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0.51 |
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35.7 |
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hvAb |
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NSW-37 |
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S13 THRU S57 |
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31.7 |
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58.6 |
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5 |
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26.9 |
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7.4 |
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13,296 |
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33 |
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0.96 |
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36.3 |
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hvAb |
NSW-37 |
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S58 THRU S97 |
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58.6 |
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82.6 |
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5 |
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24.0 |
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6.3 |
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13,683 |
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35 |
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0.91 |
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37.1 |
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hvAb |
NSW-37 |
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S98 THRU S116 |
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82.6 |
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93.2 |
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5 |
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10.6 |
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8.1 |
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13,194 |
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34 |
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0.93 |
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37.8 |
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hvAb |
* All thicknesses shown are core sample thickness and do not represent actual true seam
thickness.
Table 2: Nariin Sukhait Key Metallurgical Properties West Field Resource Area
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Seam Interval (m) |
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Metallurgical Properties |
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Hole Number |
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Sample Id |
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From |
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To |
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Seam |
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*Thickness (m) |
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HGI Grind |
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FSI |
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Max Fluidity Gieseler (DDPM) |
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Dilatometer Dilation (%
Max) |
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Mean-Max Reflectance (%
in Oil) |
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Inerts (%) |
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Phosphorus (% Dry) |
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NSW-35 |
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S5 THRU S23 |
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117.2 |
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128.6 |
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5 |
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11.4 |
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56 |
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3 |
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4 |
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-6 |
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0.93 |
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27.3 |
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0.001 |
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NSW-35 |
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S24 THRU S40 |
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129.1 |
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139.1 |
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5 |
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10.0 |
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53 |
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2 |
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7 |
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-18 |
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0.91 |
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26.7 |
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0.001 |
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NSW-35 |
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S41 THRU S81 |
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139.4 |
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163.7 |
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5 |
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24.3 |
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56 |
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5 |
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12 |
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-19 |
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0.88 |
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28.9 |
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0.002 |
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NSW-35 |
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S82 THRU S98 |
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164.1 |
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174.1 |
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5 |
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10.0 |
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59 |
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2 ½ |
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7 |
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-22 |
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0.89 |
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30.1 |
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0.002 |
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NSW-35 |
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S99 THRU S149 |
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174.6 |
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204.7 |
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5 |
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30.1 |
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57 |
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6 ½ |
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27 |
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-24 |
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0.97 |
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30.3 |
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0.002 |
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NSW-35 |
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S151 THRU S164 |
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205.3 |
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213.2 |
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5 |
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7.9 |
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56 |
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7 |
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26 |
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-25 |
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0.96 |
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27.3 |
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0.001 |
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NSW-35 |
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S166 THRU S174 |
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213.6 |
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218.7 |
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5 |
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5.1 |
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57 |
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7 |
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130 |
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0 |
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0.89 |
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27.7 |
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0.005 |
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NSW-35 |
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S176 THRU S192 |
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219.0 |
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229.0 |
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5 |
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10.0 |
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NT |
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8 |
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190 |
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26 |
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0.90 |
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31.3 |
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0.004 |
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NSW-36 |
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S1 THRU S20 |
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115.3 |
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127.0 |
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6b |
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11.7 |
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NT |
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6 |
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8 |
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-24 |
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0.91 |
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32.7 |
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0.007 |
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NSW-36 |
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S22 THRU S31 |
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134.7 |
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140.5 |
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6 |
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5.8 |
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NT |
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7 ½ |
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108 |
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18 |
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0.85 |
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23.8 |
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0.007 |
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NSW-37 |
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S13 THRU S57 |
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31.7 |
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58.6 |
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5 |
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26.9 |
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NT |
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4 |
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4 |
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-22 |
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0.87 |
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27.0 |
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0.010 |
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NSW-37 |
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S58 THRU S97 |
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58.6 |
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82.6 |
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5 |
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24.0 |
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55 |
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3 |
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9 |
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-7 |
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0.91 |
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23.9 |
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0.003 |
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NSW-37 |
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S98 THRU S116 |
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82.6 |
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93.2 |
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5 |
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10.6 |
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58 |
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6 ½ |
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45 |
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-24 |
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0.95 |
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32.7 |
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0.004 |
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* All thicknesses shown are core sample thickness and do not represent actual true seam
thickness.
NT = Not Tested
Qualified Person
Richard Tifft, Vice President Geologic Services with Norwest Corporation and a Qualified Person as
defined by NI 43-101, has reviewed and approved the technical information contained in this
release. *Resources that are not reserves do not have demonstrated economic viability. The coal
samples reported in the tables above were analyzed at the SGS Beckley, West Virginia, laboratory.
Ivanhoe has engaged Norwest to provide consulting services regarding the exploration and evaluation
of the Nariin Sukhait property. Norwest has extensive coal experience in Mongolia including
completing a pre-feasibility study of the Tavan Tolgoi coal deposit for the Mongolian Ministry of
Infrastructure and Development, providing advisory services to the operating coal mines at Shivee
Ovoo and Bagaa Nuur, and overseeing coal exploration programs in Mongolia for other multi-national
mining and exploration companies.
Ivanhoe shares are listed on the Toronto and New York stock exchanges under the symbol IVN.
Information contacts in North America
Investors: Bill Trenaman: +1.604.688.5755 / Media: Bob Williamson: +1.604.688.5755
Forward-Looking Statements: This document includes forward-looking statements. Forward-looking
statements include, but are not limited to statements concerning Ivanhoes planned coal development
program, updated resource estimates, pre-feasibility studies, and other statements that are not
historical facts. When used in this document, the words such as could, plan, estimate,
expect, intend, may, potential, should, and similar expressions are forward-looking
statements. Although Ivanhoe Mines believes that its expectations reflected in these
forward-looking statements are reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ from these forward-looking
statements are disclosed under the heading Risk Factors and elsewhere in the corporations
periodic filings with Canadian and US securities regulators.
China-bound trucks loading in east pit at MAK Qin Hua Mongolian/Chinese joint-venture coal
mine. Ivanhoes Nariin Sukhait property is adjacent to, and surrounds, the MAK mine.