Ivanhoe Electric Reports Year-End Update on United States Exploration Programs Drilling Expands the Texaco Deposit in Arizona with Intersections of Significant Enriched Mineralization Drilling at the Hog Heaven Project Identifies a Porphyry Copper-
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January 6, 2025
Ivanhoe Electric Reports Year-End Update on United States
Exploration Programs
Drilling Expands the Texaco Deposit in Arizona with Intersections of
Significant Enriched Mineralization
Drilling at the Hog Heaven Project Identifies a Porphyry Copper-
Gold-Molybdenum System in the Battle Butte Area Associated with
a Typhoon™-identified Anomaly
Drilling at the Tintic Copper-Gold-Silver Project Continues to
Explore for the Source Porphyry Copper System
Typhoon™ and Computational Geoscience Inc. Guide Technology-
led Exploration Efforts in the United States
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 Company’s exploration
projects in the United States, including the Santa Cruz Copper Project in Arizona, Hog
Heaven Project in Montana, and the Tintic Project in Utah.
Mr. Melvin commented: “Our U.S. exploration team, led by Graham Boyd, successfully
advanced multiple large-scale and early-stage exploration projects in 2024, while
continually evaluating new opportunities. Our technology-driven exploration platform
allowed our experienced team to expand the known copper mineralization at the Texaco
Deposit in Arizona, discover a copper-gold-molybdenum porphyry system at Hog
Heaven in Montana, and gain a better understanding of our Tintic Project in Utah. We
are using the seasonal winter break in drilling to evaluate our 2024 results, review new
potential projects, and prioritize our 2025 exploration plans in the U.S.”
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Ivanhoe Electric completed approximately 34,000 meters of exploration drilling
across projects in the U.S. portfolio
Exploration programs at Ivanhoe Electric’s projects during 2024 included approximately
29,000 meters of exploration drilling at the Santa Cruz Copper Project, Hog Heaven
Project, and Tintic Project, in addition to approximately 5,000 meters of drilling at earlier
stage projects.
The 2024 exploration programs were successful at extending mineralization at our
Texaco Deposit and discovering our first gold-bearing porphyry copper system at Hog
Heaven. Exploration drilling has paused at most sites for the winter season, allowing a
natural break for interpretation of new geological, geochemical, and geophysical data to
support subsequent exploration programs in 2025.
Exploration drilling at the Santa Cruz Copper Project intersected new chalcocite-
enriched mineralization at the Texaco Deposit
Exploration drilling in 2024 at the Santa Cruz Copper Project focused on the Texaco
Deposit and the Southwest Exploration Area, with eight drill holes totaling
approximately 8,700 meters completed (Figure 1). Both drilling campaigns were guided
by previous Typhoon™ surveys.
Recent assay results from Texaco drill holes SCC-242 and SCC-248, at the same 0.80%
total copper cut-off grade used for the Texaco Mineral Resource Estimate (“MRE”),
confirm the presence of copper mineralization on the northeastern and northwestern
edge of the Texaco Deposit (Figure 2).
• Hole SCC-242: 63.4 meters @ 1.70% total copper from 895.6 meters, including
25.7 meters @ 2.00% total copper from 897.4 meters
• Hole SCC-248: 10.0 meters @ 1.19% total copper from 859.0 meters, and 24.0
meters @ 1.06% total copper from 877.0 meters, and 6.0 meters @ 1.71% total
copper from 916.0 meters
• Hole SCC-249: 35.6 meters @ 1.37% total copper from 923.4 meters, including
26.1 meters @ 1.56% total copper from 923.4 meters
Exploration drilling in the Southwest Exploration Area included four drill holes. The
Southwest Exploration Area was recognized after Ivanhoe Electric drilled an anomaly
generated by Typhoon™ and intersected sulfide copper mineralization under cover
more than one kilometer southwest of the Santa Cruz Deposit (refer to Ivanhoe
Electric’s November 29, 2022 news release).
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Drill hole SCC-236 was completed approximately 600 meters southwest of the
southernmost extent of the currently defined MRE at the Santa Cruz Copper Project.
SCC-238 was collared 75 meters northeast of SCC-236. Using the Santa Cruz MRE total
copper cut-off grade of 0.70%, no intercepts are reportable from drill hole SCC-236, and
one intercept is reportable from SCC-238. However, below the 0.70% total copper cut-off
grade, assay results confirm the presence of widespread copper mineralization (Figure
3).
Further exploration drilling in the Southwest Exploration Area will be considered after
the results of recent three-dimensional seismic and ambient noise tomography surveys
are processed and interpreted.
The Texaco Deposit is expected to have an updated MRE as part of the Santa Cruz
Copper Project Preliminary Feasibility Study on track to be completed by the end of Q2
2025. Exploration drilling continues to demonstrate the potential for future expansion of
the mineral resources at the Santa Cruz Copper Project.
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Figure 1. Plan view map of the Santa Cruz Copper Project showing completed drill holes
since the December 2022 MRE contained in the September 2023 Initial Assessment, the
location of drill holes from the 2024 exploration program, and the location of cross-
sections A to A’ and B to B’.
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Figure 2. Cross-section A to A’ at the Santa Cruz Copper Project, looking northwest, of
drilling at the Texaco Deposit, showing SCC-242 intersecting broad mineralization
below cut-off grades on the right, the northeastern edge of the Texaco MRE, and
Typhoon™ chargeability data.
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Figure 3. Cross-section B to B’ at the Santa Cruz Copper Project, looking northwest, of
drilling at the Southwest Exploration Area, showing SCC-236 and SCC-238 intersecting
mineralization below the cut-off grade, the southwestern edge of the Santa Cruz MRE,
and Typhoon™ chargeability data.
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Exploration drilling in the Battle Butte Area at the Hog Heaven Project intersected
a porphyry copper-gold-molybdenum system within a large, deep Typhoon™-
identified anomaly
Exploration drilling at the Hog Heaven Project in Montana included approximately
14,000 meters in eleven drill holes (Figure 4). Exploration efforts focused on identifying
the extensions of shallow mineralization that characterized historical production near
the Flathead Mine (refer to Ivanhoe Electric’s April 2, 2024 news release) and exploring
for porphyry systems in the Battle Butte Area associated with a deep Typhoon™-
generated anomaly.
Exploration drilling in the Flathead Mine area included drill holes HHD-012 through to
HHD-016, which intersected broad intervals of epithermal-type low-grade precious
metals-bearing polymetallic sulfide mineralization hosted in veins, breccia matrix fill,
and disseminations. Subsequent exploration focused on exploring porphyry copper
systems.
Initial drilling at the Battle Butte Area, HHD-017 through to HHD-022, has intersected a
porphyry copper-gold-molybdenum system (“Battle Butte Porphyry”) associated with a
large, 1,500 meters by 1,000 meters Typhoon™ conductivity anomaly at 1,200 meters
depth (Figure 5). Mineralization is related to a series of variably mineralized and altered
porphyry intrusives and hydrothermal breccias hosting gold-bearing copper, iron, and
molybdenum sulfides as breccia matrix, sheeted to stockwork veining and as
disseminations.
• Hole HHD-018: 286.0 meters @ 0.14% copper, 0.14 grams per tonne of gold, 0.01%
molybdenum, and 1.70 grams per tonne of silver from 947.0 meters
o Including 97.9 meters @ 0.21% copper, 0.20 grams per tonne of gold, 0.01%
molybdenum, and 2.79 grams per tonne of silver from 947.0 meters
• Hole HHD-019: 680.0 meters @ 0.09% copper, 0.06 grams per tonne of gold, 0.02%
molybdenum, and 0.96 grams per tonne of silver from 1,172.0 meters
Five drill holes intersecting the Battle Butte Porphyry demonstrate a porphyry system
believed to be starting at approximately 900 meters depth, with a vertical thickness of
800 meters, at least 600 meters by 400 meters in lateral dimension, and open to the east
and northeast. Initial assay results show broad intervals of low-grade mineralization
with a gold-to-copper ratio near one-to-one. Narrower but higher-grade sub-intervals are
associated with the presence of the higher-grade copper sulfide mineral bornite
(approximately 63% copper by weight), where the gold-to-copper ratio starts to
increase.
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Current evidence suggests that the Battle Butte Porphyry system is open to the east
and north, where the Typhoon™ anomaly remains untested at depth. Exploration in
2025 will continue to test the Battle Butte Porphyry, searching for higher-grade copper-
gold zones and the presence of additional porphyry centers across the project.
Ivanhoe Electric has leased a further 4,925 acres of private surface and mineral rights at
the Hog Heaven Project from a private owner, consolidating the district and providing
additional access to areas prospective for porphyry systems.
Figure 4. Plan view map of the Hog Heaven Project showing drill holes and their traces
from the 2024 exploration program, newly leased land, and the location of cross-section
A to A’.