Ivanhoe Electric and Saudi Arabian Mining Company Ma’aden Complete First Full Quarter of Exploration Activities in Saudi Arabia Initial 76 km2 Typhoon™ Survey on the Umm Ash Shalahib Exploration License Surrounding Ma’aden’s Al Amar Gold-Copper-
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April 11, 2024
Ivanhoe Electric and Saudi Arabian Mining Company Ma’aden
Complete First Full Quarter of Exploration Activities in Saudi Arabia
Initial 76 km2 Typhoon™ Survey on the Umm Ash Shalahib
Exploration License Surrounding Ma’aden’s Al Amar Gold-Copper-
Zinc Mine is Complete
Computational Geosciences Rapidly Processed the Initial
Typhoon™ Results and Identified Two High Priority Anomalies for
Drill Testing
Construction and Delivery of the First of Three New Generation
Typhoon™ Units Ordered by the Joint Venture is Complete
Next Stage Mapping and Sampling Commencing on Additional Joint
Venture Lands in the Al Amar and Wadi Bidah Belts
RIYADH, SAUDI ARABIA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American:
IE; TSX: IE) is pleased to provide this update following the completion of the first full
quarter of exploration activities in Saudi Arabia by our 50/50-owned joint venture
company (the “Joint Venture”) established between Ivanhoe Electric and Saudi Arabian
Mining Company Ma’aden (“Ma’aden”) (Saudi Stock Exchange Tadawul: 1211).
Ivanhoe Electric’s President and Chief Executive Officer Taylor Melvin commented: “We
had an exceptional first quarter of exploration activities in Saudi Arabia with our
partners at Ma’aden. Our dedicated joint team completed the first TyphoonTM survey at
Umm Ash Shalahib and identified our first drill targets which we expect to start drilling
by the end of May. We demonstrated the disruptive capabilities of TyphoonTM together
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with the machine learning-based inversion software of our subsidiary, Computational
Geosciences, to rapidly identify subsurface geophysical anomalies in a challenging
geologic environment. With large areas of resistive rock exposed at surface, several
portions of our survey required transmission voltages of over 5,000 volts, which
TyphoonTM is capable of achieving while maintaining a high signal quality. We are
excited to continue our Joint Venture’s exploration activities across the Al Amar and
Wadi Bidah belts as we deploy a new generation of Typhoon™ units into the field.”
Initial Typhoon™ survey on the Umm Ash Shalahib Exploration License
near the Al Amar Gold-Copper-Zinc Mine was successfully completed and
identified promising anomalies for drill testing
The Joint Venture’s initial Typhoon™ survey commenced in late November 2023 and
was completed in March 2024. The survey covered 76 km2 of the Umm Ash Shalahib
exploration license which largely surrounds Ma’aden’s Al Amar Gold-Copper-Zinc mine
(which is not part of the Joint Venture).
Ivanhoe Electric’s subsidiary, Computational Sciences Inc. (“CGI”), utilized its latest
inversion software to produce three-dimensional subsurface images that extend to
depths of up to 1 km below ground surface. CGI’s proprietary software technology
includes complex algorithmic codes and artificial intelligence tools that are used to
process geophysical data generated by TyphoonTM. CGI is uniquely capable of rapidly
processing and interpreting the large volumes of data created by Typhoon™ surveys.
CGI’s inversion of the chargeability and conductivity data produced by TyphoonTM
across the entirety of the exploration license has ultimately yielded two high priority
drill targets.
Earlier survey results disclosed in our news release dated January 9, 2024 had
identified three high priority targets south of the Al Amar mine. However, subsequent
verification work and Typhoon™ results has now refined those drill targets to ‘Area B’
and ‘Umm Ad Dabah’ as shown in Figure 1 below.
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Figure 1. Initial CGI Inversion Results across the Umm Ash Shalahib Exploration
License.
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The first high priority area is called ‘Area B’, an area previously explored by France’s
Bureau de Recherches Géologiques et Minières (“BRGM”) in the 1970s. The BRGM
identified several areas at surface with geological alteration and mineralization,
including Area B. Our Typhoon™ survey results correlate very closely with the previous
work but extend and expand the results to greater depth, providing an attractive target
for follow-up drilling. Area B is an area that also features ancient artisanal vein mining
for gold at surface, attesting to the presence of historical near-surface mineralization.
Photo 1. Ancient artisan vein mining near Area B, Umm Ash Shalahib, Saudi
Arabia.
The second high priority area is called ‘Umm Ad Dabah’, which is located to the north of
the Umm Ash Shalahib exploration license at the northern limit of the recently
completed survey grid. Previous mapping and drilling by the BRGM in the 1980s had
identified an area showing Volcanogenic Massive Sulfide (“VMS”) mineralization in their
drill holes. The Typhoon™ survey results show these as both conductivity and
chargeability anomalies extending to the northeast and southwest of the surface
outcrop and historic drill holes. The altered zone is about 360 m long and consists of
very intense epidote-chlorite-actinolite alteration with disseminated iron oxide
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boxworks, presumably after pyrite. Copper oxides are locally observed in fractures and
rock cleavage at surface.
Drilling of these two high priority targets is expected to commence before the end of
May 2024.
As the survey at Umm Ash Shalahib encompassed the Al Amar Gold-Copper-Zinc Mine
site, identification of on-mine or near-mine geological targets is also a priority. As a
result, a joint interpretation team has been assigned from the Al Amar mine geology
team, Ma’aden, and Ivanhoe Electric to help guide this interpretation.
Joint Venture exploration activities expanding within the Al Amar Belt and
to the Wadi Bidah Belt
Typhoon™ survey work has now moved to the Al Amar Exploration License 11 which is
to the immediate north of Umm Ad Dabah and was chosen because the Umm Ad Dabah
geophysical anomalies trend onto this license.
In addition, while initial exploration activities have focused on the Al Amar Belt, early
exploration work will start in the second quarter at the ‘Gehab’ prospect in the Wadi
Bidah Belt area located between 220 km and 270 km southeast of Jeddah.
Gehab was identified as an outcropping gossan related to the surface exposure of VMS
by the BRGM in their work in the 1970s. Limited drilling was completed but was not
expanded beyond the limited surface expression. Gehab is a high priority for
Typhoon™ survey work once the first new generation Typhoon™ unit arrives in Saudi
Arabia. Ahead of that, geological mapping and sampling work will start in the second
quarter to provide geological and geochemical data for incorporation into the
TyphoonTM model that will potentially provide significant down dip and strike extension
of known surface mineralized exposures.
As the subsequent new generation TyphoonTM units arrive in Saudi Arabia, they will be
deployed to the other high priority areas in the Al Amar Belt where satellite imagery and
historical work has identified surface alteration potentially associated with
mineralization.
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Figure 2. Map of ~48,500 km2 of exploration land available to the Joint Venture
showing the ‘Gehab’ prospect and Al Amar area.
Construction completed on the first new generation Typhoon™ unit
ordered by the Joint Venture
The Joint Venture purchased three new generation Typhoon™ units, the first of which
completed acceptance testing at the manufacturing facility in Toulouse, France in
March 2024, and is currently en route to Saudi Arabia. The next two new generation
units will be completed in the first half of 2024. In the interim, the Joint Venture is
currently utilizing two Typhoon™ units owned by Ivanhoe Electric.
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Photo 2. Acceptance of the first new generation Typhoon™ unit with
representatives of Ma’aden, Ivanhoe Electric and the manufacturer I-Pulse Inc. in
Toulouse, France (March 2024).
Qualified Persons
Disclosures of a scientific or technical nature included in this news release have been
reviewed, verified and approved by Charles N. Forster, P.Geo., and Mark Gibson,
P.Geo., both who are Qualified Persons as defined by Regulation S-K, Subpart 1300
promulgated by the U.S. Securities and Exchange Commission and by Canadian
National Instrument 43-101. Mr. Forster is a Senior Advisor to Ivanhoe Electric and Mr.
Gibson is Chief Geophysics Officer of Ivanhoe Electric.
About Ivanhoe Electric
We are a U.S. company that combines advanced mineral exploration technologies with
electric metals exploration projects predominantly located in the United States. We use
our accurate and powerful TyphoonTM geophysical surveying system, together with
advanced data analytics provided by our subsidiary, Computational Geosciences Inc.,
to accelerate and de-risk the mineral exploration process as we seek to discover new
deposits of critical metals that may otherwise be undetectable by traditional exploration
technologies. We believe the United States is significantly underexplored and has the
potential to yield major new discoveries of critical metals. Our mineral exploration
efforts focus on copper as well as other metals including nickel, vanadium, cobalt,
platinum group elements, gold and silver. Through the advancement of our portfolio of
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electric metals exploration projects, headlined by the Santa Cruz Copper Project in
Arizona and the Tintic Copper-Gold Project in Utah, as well as other exploration
projects in the United States, we intend to support United States supply chain
independence by finding and delivering the critical metals necessary for the
electrification of the economy. We also operate a 50/50 joint venture with Saudi Arabian
Mining Company Ma’aden to explore for minerals on ~48,500 km2 of underexplored
Arabian Shield in the Kingdom of Saudi Arabia. Website: www.ivanhoeelectric.com.
About Ma’aden
Ma’aden is the largest multi-commodity mining and metals company in the Middle East
and among the fastest-growing mining companies in the world, with revenues of SAR
40.2 billion (US$10.7 billion) in 2022. Ma’aden is developing the mining industry into the
third pillar of the Saudi economy in line with Vision 2030 and aims to be a role model in
responsible and sustainable operations. Ma’aden operates 17 mines and sites, has
6,000+ direct employees and exports products to over 30 countries. Ma’aden is
embarking on massive growth over the next 18 years across phosphate, aluminum,
gold, copper and new minerals. Ma’aden is also Ivanhoe Electric’s second largest
stockholder holding approximately 9.9% of the currently issued common stock.
Website https://www.maaden.com.sa/
Contact Information
Lucy Chitilian, CFA, Director, Investor Relations
Email: [email protected]
Phone: 1-520-602-7536
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