Ivanhoe Mines is continuing exploration of its copper and gold projects in Mongolia.

Primary focus has been on the Kharmagtai project where a 5100-metre diamond-drilling program is continuing. Drill targets were defined by the survey carried out earlier in the year. A program is also under way at the central Kharmagtai deposits.

Drilling in the basin included one hole on a large, circular magnetic anomaly 2km east of the main deposits. The magnetic anomaly is 500 metres in diameter, beneath 30 metres of colluvium cover and associated with strong chargeability from a depth of 200 metres. The drill hole intercepted 48 metres @ 0.34 grams/tonne gold and 0.13% copper. The alteration and high gold/copper ratio is similar to the main deposits.

BHP Billiton Exploration work on the Falcon joijnt venture area is also continuing but with no significant results to date.

Reconnaissance exploration by Ivanhoe is also underway on various other targets outside the BHPB joint venture area, including the Maanit Ovoo prospect in the Tsagaan Suvarga area.