Results from the 2010 phase one drilling program which is progressing at Ivanhoe Mines’ Kyzyl Gold Project will be used in an updated, independent resource estimate and pre-feasibility study.
Project operator Altynalmas Gold has completed more than half of the 39,000 metre, deep-level drilling program at the world-class project in north-east Kazakhstan.
Ivanhoe Mines owns 50% of Altynalmas Gold, 100% owner of Kyzyl, which includes the Bakyrchik and Bolshevik gold deposits. An established, privately-owned Kazakh shareholder owns the other 50%.
Altynalmas Gold chief executive officer and Ivanhoe Mines’ Gold Division president David Woodall says, “The drilling program is beginning the process of testing enormous exploration potential in what Ivanhoe’s management considers to be one of the world’s highest-grade and largest undeveloped gold systems.
“We have completed 21,000 metres of our phase-one program and we expect the results to form the basis for upgrading the project’s indicated resources to reserves as part of a mine plan to be include in an independent pre-feasibility study.”
Following completion of the pre-feasibility study, Altynalmas Gold intends to proceed with the detailed design of a phase-one, 1.5 million tonne/year commercial plant that will treat head grades in the range of nine or more grams/tonne of gold.
Altynalmas is targeting to begin mine construction in 2011 with production starting in 2013. The company has also started a 6000 metre, near-surface drilling program at the Bakyrchik property to test targets for potential, initial open-pit development.