the giant oyu tolgoi porphyry copper deposit : discovery history and ...

THE GIANT OYU TOLGOI PORPHYRY COPPER DEPOSIT :
DISCOVERY HISTORY AND IMPLICATIONS
FOR FUTURE EXPLORATION IN THE GOBI
By: D.J. Kirwin
SEEGF Conference – October 2006

Copyright Notice
Please be advised that Mr. Douglas Kirwin claims copyright on these materials. No
reproduction without the permission of the author .
Contacts:
Douglas Kirwin:
Ivanhoe Mines Limited - Singapore
#37-02 Millenia Tower
No.1 Temasek Avenue
Singapore 039192
T: 62 21 722 4962
E: doug@ivanhoemines.com
SE Europe Geoscience Foundation
Level 2, 162 Tcvetan Lazarov Blvd.,
DRUZHBA 2
SOFIA
BULGARIA 1582
T: 359 2 978 4880
E: jcmenzies@see-geoscience.org
W: www.see-geoscience.org
SEEGF Conference – October 2006

ACKNOWLEDGEMENTS
Magma BHP
Ivanhoe Mines
Sergei Diakov
Dennis Cox
Don Shissel
Peter Leaman
Barry Bolton
Jose Perello
Charles Forster
David Crane
Hugo Dummett
Tosi Firman
Garamjav, D.
Kerry Griffin
Grant Hendrickson
Imants Kavalieris
Toby Mayo
Munkhbat, T.
Niislelkhuu, G.
Cyrill Orssich
Craig Panther
Sanjdorj, D.
Dale Sketchley
Peter Terry

We We need you you to to find find
a world class
mineral deposit

Location Map of Oyu Tolgoi

Neolithic and Bronze Age History at Oyu Tolgoi

The Mongol Conquests

Andrews Central Asiatic Expedition 1922

Andrews Central Asiatic Expedition 1922

Andrews Central Asiatic Expedition 1922

Hanbogd town
Oyu Shivee
Exploration block boundary
Ba
Ba
Ba
OT10-1
OT10-2
Ba
Spring 1983 - Kh
Ign
Khanbogdanbogd Complex
April 13 th 1983 - Visit to Oyu Tolgoi
Satellite Image View of Khanbogd Complex
D. Garamjav at Khanbogd Complex

South Oyu Tolgoi Cu Deposit

Erdenet-BHP Meeting in Beijing, May 1996

Discovery Hill – Central Oyu, September 1996

BHP Oyu Tolgoi Camp, May 1997

Core logging, first 6 BHP drill holes, August 1997

Hugo Dummett and D. Jargalsaikhan visiting Oyu Tolgoi camp, 1997

Magma BHP - Diamond Drill Hole Locations, 1997 and 1998

Display of Oyu Tolgoi drill core at PDAC, March 1999

Exploration in Northeast Kalimantan - Indonesia, 1996

Ivanhoe’s History in Mongolia
Ivanhoe Mines commenced exploration Mongolia late in 1997 for the following reasons:
Prospective for gold and copper deposits
Attractive new minerals law
Emerging free market economy
1996 - 1998
2000
‣ 1996 – First Mongolian visit.
‣ 2000 – Aerial reconnaissance Mongolia.
‣ 1997 – Follow up 1996 visit after
new minerals law and commence
reconnaissance exploration.

North Oyu
Central Oyu
Aerial View of Oyu Tolgoi in July 1999

Oyu Tolgoi site visit in July 1999

South Oyu Southwest Oyu Base Camp
Panorama of Oyu Tolgoi

Reasons for the positive assessment
The large size potential of the porphyry system indicated by walking
around the area defined by drilling.
The high grade intercepts of secondary copper encountered below the
leached outcrops at Central Oyu. (DDH OT3 – 38 metres @ 1.6% copper).
The intense biotite alteration and stockwork quartz veining observed in
drill core and that there were significant associated gold values.
Interesting gold and copper results intersected at Southwest Oyu
(DDH OT10 – 36.5 metres @ 1.16 g/t gold and 0.69% copper).
The possibilities for exotic copper mineralisation under Recent cover in the
vicinity of Central Oyu.
The BHP drill holes were mostly shallow and widely spaced.
The existing tenement was large and relatively unexplored.
JV agreement signed on 5 th May 2000

Ivanhoe’s History in Mongolia
2000
‣ 2000 – RC drilling to test the chalcocite blanket.
2001
‣ 2001 – Diamond drilling to explore primary potential.

Magma BHP - Diamond Drill Hole Locations, 1997 and 1998

Southwest Oyu Section; OTD-150

Drill Section Illustrating OTD-159 at Central Oyu, Compiled in August 2001.

Charlie Forster celebrating
with a “COLD COLD ONE”
Recon helicopter trip, mid 2001.

Hugo Dummett
OTD270
North Oyu
Central Oyu
SW Oyu
South Oyu
Far SW Oyu
Ground Magnetics and IP Maps

OTD 270
638m @
0.07g/t Au, 1.61% Cu

Far North OTD270: Chalcocite

IP Chargeability Oyu Tolgoi
OTD367A
N-S lines, 2001 E-W lines, 2002

Oyu Tolgoi Team
Proof that Geophysics causes hair loss to Geologists!

Discovery of Hugo North: OTD367A
OTD399
OTD405
144m: 4.41% Cu, 1.61g/t Au
Section FN-14
OTD363
OTD367A
OTD361
OTD355
OTD355, 56m; 3.01%, 0.09g/t
OTD344, 78m; 3.30%, 0.34g/t
Outline of Hugo South, March 2003
“We just wanted to know what
was out there”, David &
Imants justifying the big step
out on OTD367

High grade mineralization: OTD344
First “porphyry-style”, quartz-chalcopyrite, bornite stockwork in Far North
0.43
5.43
>90% quartz with chalcopyrite-bornite: 5.43% copper, 0.43g/t gold

116m @ 0.57g/t Au, 4.95% Cu
236m @ 0.80g/t Au, 4.03% Cu
526m @
1.00g/t Au,
2.79% Cu
OTD 514B

High grade mineralization: OTD514
Quartz Stockwork with chalcopyrite-bornite in Quartz Monzodiorite
2.47 g/t Au, 2.91% Cu

Ivanhoe’s Turquoise Hill discovery at
December 2002
Hugo Chalcopyrite-bornite-chalcocite zone
Hugo Dummett
Longitudinal Section of Oyu Tolgoi

SOUTH & SOUTHWEST OYU
CENTRAL OYU
HUGO & EXTENSION
Four Deposits…….and Growing, 2004

Longitudinal Section of Oyu Tolgoi, 2005

Southwest Oyu
• Hole 150 – Southwest Oyu, July 2001;
590 metres @ 1.1 g/t Au and 0.8% Cu
• Hole 159 – Central Oyu, August 2001;
301 metres @ 0.7% Cu
• Hole 270 – Hugo Dummett, September 2002;
638 metres @ 1.6% Cu
• Hole 367A – Hugo Dummett, March 2003;
164 metres @ 1.42 g/t Au and 4.41% Cu
including 74 meters @ 2.5 g/t Au and 6% Cu
• Hole EGD006A – Hugo North, May 2005;
608 metres @ 0.9 g/t Au and 3.24% Cu
• Hole EGD008 – Hugo North (450m step), June 2005;
324 metres @ 1.23 g/t Au and 2.45% Cu
Hugo Dummett
6 Significant Drill Holes

Consultants Review, August 2005

Oyu Tolgoi
Deposit
Tonnage
(tonnes)
Copper
(%)
Gold
(g/t)
Copper
Equiv. (%)
Copper
('000 lbs)
Contained Metal
Gold
(ounces)
Cu eq
('000 lbs)
Measured +
Indicated
1,148,560,000 1.27 0.48 1.58 32,230,000 17,650,000 39,950,000
and, in addition
Inferred 1,250,550,000 1.04 0.24 1.20 28,750,000 9,880,000 33,070,000
Shivee Tolgoi
Deposit
Tonnage
(tonnes)
Copper
(%)
Gold
(g/t)
Copper
Equiv. (%)
Copper
('000 lbs)
Contained Metal
Gold
(ounces)
Cu eq
('000 lbs)
Inferred 190,160,000 1.57 0.53 1.91 6,590,000 3,240,000 8,010,000
0.6% Cu eq cut-off grade

About Oyu Tolgoi
DISCOVERY
3000 – 4000 BC Bronze age
1983 D. Garamjav – Mongolian Geological Survey
RECOGNITION
1996 Dennis Cox – Magma Copper
1997 BHP Drilling Program
OPPORTUNITY
1999 Ivanhoe in Mongolia
2001 Charles Forster’s Second Diamond Drill Hole
2002 - 2005 On going Drill Success
CHALLENGE
2006 and Beyond Mining Methods Logistics and Infrastructure

Thanks, you’ve found us
what we wanted, now….
go and find another one

Discovering Mongolia’s Future