Ivanhoe Electric Reports First Drill Results from its Initial Exploration Program at the Hog Heaven Project in Montana Exploration Drilling Intersects Widespread Precious and Base Metal Mineralization to Significant Depth Below Historic Mining Levels
1
October 9, 2023
Ivanhoe Electric Reports First Drill Results from its Initial
Exploration Program at the Hog Heaven Project in Montana
Exploration Drilling Intersects Widespread Precious and Base Metal
Mineralization to Significant Depth Below Historic Mining Levels
Exploration Drill Hole HHD-005 Intersects 311 Meters Containing
0.35 g/t Gold, 22.89 g/t Silver, 0.36% Lead, and 0.55% Zinc, from 162
to 473 Meters
Ivanhoe Electric’s Proprietary Typhoon™ Geophysical Survey
System Deployed to Advance the Search for Additional Epithermal
Mineralization and Deep Porphyry Source at Hog Heaven
PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“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 the status of ongoing
exploration efforts, including the initial results of Ivanhoe Electric’s exploration drilling,
at the Hog Heaven exploration Project located on private land approximately 50 miles
southwest of Kalispell, Montana.
Mr. Friedland commented: “We have a wonderful opportunity at the Hog Heaven
Project, located on private land in the silver-rich state of Montana, to pick up where
legendary miners like Anaconda left off. This region is well known for its long and rich
history of silver production, and we believe there is more to the story. Our recent
drilling efforts have returned promising initial results, and our geologists see potential
for mineralization to continue to great depths.”
Mr. Melvin commented: “We are excited by the initial results of our exploration drilling
program at Hog Heaven, a high-quality exploration project on private land in Montana.
The early presence of high-grade precious metal mineralization along with base metal
mineralization, at depths much greater than the historical drilling and mining operations
in the district, is encouraging as our team advances to the next phases of exploration
2
drilling. The Hog Heaven Project is emerging rapidly as one of our most interesting
exploration projects in the United States.”
The Hog Heaven district consists of several high sulfidation epithermal mineral
deposits and prospects as well as several now-closed mines, including the Flathead
Mine.
The Flathead Mine was mined by Anaconda Mining Inc. from 1929 to 1946, producing
approximately 241,000 short tons of direct-ship ore averaging 26.6 troy oz/ton silver.
Another operator mined the Flathead Mine from 1963 to 1975 producing 49,700 short
tons averaging 9.35 troy oz/ton silver. Other previously mined high sulfidation
epithermal mineral deposits within the bounds of the Hog Heaven Project include the
Ole Hill and West Flathead Mines located 1 mile west of the Flathead Mine; the Margarite
Mine, south of Flathead Mine; and the Martin Mine just northwest of Margarite Mine.
Ivanhoe Electric’s exploration team believes that the Flathead Mine is part of a much
larger mineralized system that has remained unrecognized by past miners and
explorers.
2023 Hog Heaven Drilling Program
Ivanhoe Electric’s 2023 drill program at Hog Heaven commenced in June 2023. The
program to date has consisted of six holes totaling 6,147 meters. Partial assays have
been received for the first three holes: HHD-003, HHD-004, HHD-005, with assays
pending for HHD-006, HHD-007 and HHD-008. HHD-001 and HHD-002 were drilled in
early winter 2022 for a total of 1,582 meters.
Ivanhoe Electric has been drilling with two rigs at the project over the summer. The
current drilling campaign is designed to search for additional silver, gold and copper-
rich high sulfidation epithermal mineralization, which was the focus of these previous
mining activities; and to search for potential porphyry copper mineralization located at
depth, which may represent the heat and fluid source to this epithermal system.
Ivanhoe Electric’s diamond drill hole HHD-005 was collared near the Flathead Mine, and
oriented to test the extent of known mineralization by drilling along the margin of the
volcanic pipe to depth. Observations and assay results demonstrate that mineralization
is widespread, extending from surface to over 900m depth.
3
Initial drilling returns encouraging early results with widespread precious
and base metal mineralization
Mineralization intersected in HHD-005 is typified by disseminated pyrite typically
carrying gold grades of 0.15 – 0.75 g/t, cut by a series of flat-lying 0.05 – 0.5-meter
pyrite-sulfosalt veins that carry high-grade silver, copper and other base metal
mineralization. This mineralization is interpreted to be outboard to one or more
structural feeder zone(s) which may exist laterally to the west or east with potential to
contain higher-grade mineralization.
Drilling has been underway with two drill rigs. The drill rigs are currently being
exchanged for track mounted equipment more appropriate for winter conditions.
Drilling will continue at the Hog Heaven Project with two drill rigs subject to winter
conditions, which may necessitate a slowdown in operations. This change in equipment
will allow for continued exploration for high-grade feeders, and testing porphyry target
areas as further assay results and data continue to be received.
4
Figure 1. Hog Heaven Project map showing geophysical data and location of
Ivanhoe Electric exploration drilling.
5
Figure 2. Cross section showing geology, drill hole locations and historical mine
workings.
Drilling provides increasingly stronger evidence supporting the existence
of a deeper porphyry copper system
Mineralization at the Hog Heaven Project area is comprised of gold-silver-copper-lead-
zinc high sulfidation epithermal replacement, veins and breccia deposits.
6
One of Ivanhoe Electric’s goals, in addition to discovering additional base and precious-
metal rich high sulfidation mineralization, is to search for the porphyry copper source
believed to be the source of these systems and the deposits that were historically
mined.
Diamond drillholes HHD-003, HHD-004, and HHD-005 all intersected increasing copper
as a proportion of mineralization with increasing depth. Copper mineralization is
dominantly comprised of enargite and chalcopyrite, which are approximately 48% and
35% copper by weight, respectively. HHD-004 notably intersected quartz-molybdenite
veins at depth. Molybdenite is approximately 59% molybdenum by weight.
Furthermore, copper-molybdenum mineralization was observed as early stockwork
veins present within clasts hosted in breccia, which were subsequently mineralized by
later gold-silver-copper-lead-zinc rich fluids. These relationships point to multiple
mineralizing events over extended periods of time, reflecting the potential for a robust
mineralizing system at depth. Stockwork quartz, chalcopyrite, and molybdenite veins
are common features of porphyry copper systems globally. These observed geological
features support the potential for porphyry copper mineralization at depth at the Hog
Heaven Project.
7
Photo of HHD-005 drill core at 903.5 m displaying a sub-vertical pyrite-enargite
vein cutting diatreme breccia. The presence of gold- and copper-rich veins at
depth in HHD-005 are indicative of a vertically extensive hydrothermal system
and suggests proximity to a high-grade feeder zone.
8
Photo of fine early quartz veins with clear alteration halos cut by later
molybdenite-pyrite veins observed in drill core from HHD-004 at 1241.9 meters
depth. Molybdenite veins such as this are commonly observed in the outer
portions of mineralized porphyry systems.
Photos of a breccia fragment comprised of a porphyritic intrusion cut by
porphyry stockwork quartz-pyrite veins observed in drill core from HHD-003 at
943.9 meters depth (left) and HHD-007 at 772 meters depth (right). Stockwork
veins in fragments provide strong evidence of a potential deep porphyry system
at Hog Heaven.