Ivanhoe Electric Identifies Visible Soluble Copper Mineralization at Texaco Ridge Step-Out Exploration Drill Hole Drill Hole SCC-122 Intersects Atacamite and Chrysocolla Above Thick Intersection of Primary Mineralization, Indicating Potential to
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March 16, 2023
Ivanhoe Electric Identifies Visible Soluble Copper Mineralization at
Texaco Ridge Step-Out Exploration Drill Hole
Drill Hole SCC-122 Intersects Atacamite and Chrysocolla Above
Thick Intersection of Primary Mineralization, Indicating Potential to
Expand Known Resource
Santa Cruz Infill Drill Hole SCC-058 Intersected 55 Meters Grading
3.10% Copper, Including 37 Meters Grading 4.15% Copper
Initial Assessment Underway to Evaluate Economics of a Potential
High-Grade, Low-Impact Underground Copper Mine
PHOENIX, ARIZONA – Ivanhoe Electric (NYSE American: IE; TSX: IE) Executive
Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are
pleased to provide an update on drilling operations, including visual confirmation of the
presence of soluble copper mineralization at the Typhoon™-identified Texaco Ridge
Exploration Area, within the Santa Cruz Copper Project, located west of Casa Grande,
Arizona.
Mr. Friedland commented: “We continue to experience positive drilling results at
Typhoon™-identified Texaco Ridge. With our exploration drilling precisely focused on
areas highlighted by Typhoon™, we are excited about the potential at the Texaco Ridge
Exploration Area and the development of the entire Santa Cruz Copper Project in
Arizona.”
Mr. Melvin commented: “The identification of soluble copper mineralization at a step-
out exploration drill hole at Texaco Ridge, approximately 200 meters from the nearest
drill hole, is an encouraging sign for the expansion potential of the Santa Cruz Copper
Project. Our Typhoon™ technology led us to the Texaco Ridge Exploration Area, and
the recent visual confirmation of additional oxide mineralization at Texaco Ridge is
indicative of the upside potential of the area. Additionally, we continue to advance our
successful infill drilling program at the Santa Cruz Project in support of the Initial
Assessment process.”
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Exploration step-out drill hole SCC-122 at the Texaco Ridge Exploration
Area intersects visible copper oxide, chalcocite and chalcopyrite
mineralization starting at approximately 429 meters depth.
Ivanhoe Electric’s proprietary Typhoon™ 3D Induced Polarization geophysical survey,
completed in July 2022, continues to guide drilling activities at the Texaco Ridge
Exploration Area. This area was included in Ivanhoe Electric’s September 15, 2022 news
release.
Exploration drilling has confirmed the presence of previously unrecognized
mineralization starting at a relatively shallow depth of approximately 429 meters
downhole. Importantly, hole SCC-122 is located 200 meters west of the closest historic
drill hole and over 600 meters from the nearest Ivanhoe Electric drill hole.
Core sample from Texaco Ridge drill hole SCC-122 at 409.50 meters depth
showing brecciated Oracle Granite with blue chrysocolla (a leachable mineral
that is approximately 30% copper by weight) mineralization along fractures.
This drill hole crossed a zone of soluble copper mineralization, including atacamite (a
leachable copper-chloride mineral which is approximately 60% copper by weight) and
chrysocolla (a leachable copper oxide mineral which is approximately 34% copper by
weight).
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Additionally, a wide chalcocite (a leachable copper sulfide mineral which is
approximately 80% copper by weight) enrichment blanket was identified from
approximately 542 to 587 meters in depth that transitions into a thick (over 264 meters)
intercept of primary-style mineralization containing chalcopyrite (a copper sulfide
mineral which is approximately 35% copper by weight). Assay results for drill hole SCC-
122 are pending.
At Texaco Ridge, the presence of primary hypogene chalcopyrite mineralization, and
evidence of the same protracted supergene enrichment processes seen at Santa Cruz,
is encouraging for the potential of a greater discovery of high-quality enriched copper
mineralization.
Importantly, there are indications of potential soluble oxide mineralization occurring at
relatively shallow depths. Exploration drilling will continue in the Texaco Ridge
Exploration Area.
360-degree photogrammetry video of drill core from Texaco Ridge step-out drill
hole SCC-122 at 702.20 meters depth showing Oracle Granite with brassy
chalcopyrite (a copper sulfide mineral that is approximately 35% copper by
weight) mineralization along veins and fractures.
Click on the image below for the high-resolution video.
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Santa Cruz Deposit infill drilling assay results continue to demonstrate
high-grade copper mineralization, exceeding the cut-off grade of 0.70%
copper applied in the December 31, 2022 Mineral Resource Estimate.
Infill drill holes at the Santa Cruz Deposit, not included in the December 31, 2022
updated Mineral Resource Estimate, as reported in Ivanhoe Electric’s February 14, 2023
news release, have been intersecting high-grade copper oxide and chalcocite
mineralization.
Drill hole SCC-058 intercepted 55 meters grading 3.10% copper, including 37 meters
grading 4.15% copper. The intercepted high-grade copper mineralization included
strong chalcocite in veins and disseminations. Importantly, the copper mineralization
intercepted continues to correlate to the resource model. The table further below
highlights additional intercepts received after the December 31, 2022 Mineral Resource
Estimate, which also shows continued correlation to the resource model.
360-degree photogrammetry video of drill core from Santa Cruz Deposit infill drill
hole SCC-058 at 582.27 meters depth showing Oracle Granite with bright green
atacamite (a leachable mineral that is approximately 60% copper by weight)
mineralization along veins and fractures.
Click on the image below for the high-resolution video.
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Figure 1. Map showing step-out and infill drilling locations not included in the
Mineral Resource Estimate as announced on February 14, 2023.
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Cross-sectional image showing the visual mineralization observations from drill
hole SCC-122 at the Texaco Ridge Exploration Area, the Texaco Deposit Mineral
Resource and the Typhoon chargeability anomaly.
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Highlighted drill hole intercepts from the Santa Cruz Project Area, not
included in the December 31, 2022 Mineral Resource Estimate. (Refer to the
Santa Cruz Drill Results page on Ivanhoe Electric’s website for complete details of all reported
drill holes.)
DRILL HOLE FROM
(M)
TO
(M)
INTERVAL
LENGTH
(M)
TOTAL
COPPER
(%)
TOTAL SOLUBLE
COPPER
(%)
SCC-029 541.5 577.5 36.0 2.73 2.48
SCC-032 557.0 595.0 38.0 2.13 2.01
SCC-048 628.6 670.0 41.4 2.46 2.31
Including 640.0 667.0 27.0 2.86 2.66
And 678.0 696.0 18.0 1.66 1.55
And 705.0 723.0 18.0 0.91 0.81
And 765.0 792.0 27.0 1.12 0.64
SCC-058 596.0 651.0 55.0 3.10 2.91
Including 597.0 634.0 37.0 4.15 4.02
And 659.9 725.0 65.1 1.21 0.71
Including 671.0 713.0 42.0 1.49 0.92
And 793.0 842.0 49.0 1.05 0.08
Including 805.0 828.0 23.0 1.29 0.09
And 850.0 863.0 13.0 1.12 0.23
SCC-080 575.0 622.0 47.0 1.96 1.87
Including 592.0 622.0 30.0 2.26 2.15
And 630.0 727.0 97.0 1.13 1.06
Including 630.0 645.3 15.3 1.88 1.85
And 747.0 759.3 12.3 1.20 0.58
SCC-109 687.0 703.0 16.0 1.25 1.23
Including 687.0 701.0 14.0 1.30 1.27
*Total Soluble Copper is the calculated summation of all soluble copper derived from the sequential copper analysis suite.
*Reported intervals at the Santa Cruz Deposit are calculated at a cut-off grade of 0.70% total copper, Texaco Deposit is reported at a cut-off grade of 0.80% total copper and East
Ridge Deposit is reported at a cut-off grade of 0.90% total copper.
*Results are core intervals and may not be true widths but are believed to be representative of actual drill thicknesses.
*Hole SCC-048 was partially released prior to the 2023 Mineral Resource Estimate using previous cut-off grades. Intercepts have been recalculated using current cut-off grades.
*All reported holes are from the Santa Cruz Deposit, with the exception of SCC-109 which is in the East Ridge Deposit Area.
*Some rounding errors may occur.
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Initial Assessment Underway for the Santa Cruz Copper Project
The Initial Assessment will be based on the December 31, 2022 Mineral Resource
Estimate, as announced on February 14, 2023, with data derived from 147 drill holes.
Ivanhoe Electric’s technical team is currently refining various trade-off studies that
include: underground mine access, primary development alternatives, mine methods,
stope sizing, mobile equipment selection, dewatering options, tailings and waste
options, process throughput, processing type and ore handling options. Collectively,
these trade-off studies will be used as the basis for the Initial Assessment. The Initial
Assessment will also include assessments of assumed technical, economic and
operational factors to determine reasonable prospects for economic extraction of
copper mineralization.
Emalyn Glastetter (left) and Samantha Pascarelli (right), Geologists, logging drill
core at the Santa Cruz Copper Project.