Ivanhoe Mines has conducted an active exploration program in Inner Mongolia, China since 2003, principally through two joint ventures with Chinese governing bodies.
In August 2003, a subsidiary of IVN entered into a joint venture agreement with the China Geology and Mining Inner Mongolia Company, a subsidiary of Inner Mongolia Bureau of Geology and Minerals Exploration and Development (the "Bureau").
The joint venture agreement entitles IVN to earn an 80% interest, increasing to 90% under certain circumstances, in the Yahao joint venture company, which has been established under the laws of China to explore, develop, mine and process minerals within China. Properties included in the joint venture cover 282 km2 within Inner Mongolia, including six exploration licenses and one mining license. To date the joint venture group has conducted exploration on several prospects, largely with mixed success. In 2007 the joint venture will focus on conducting secondary level exploration on two prospects in western Inner Mongolia.
In April 2003, a subsidiary of IVN entered into a joint venture agreement with the Inner Mongolia Huayu Geology and Minerals Exploration Co. Ltd ("Huayu"). Throughout 2004 and 2005, the joint venture conducted exploration on its principal property with modest results. After completion of its drilling program in 2005, the joint venture decided to terminate its interests in the exploration project. Following its decision to relinquish the original property, the joint venture continued to examine additional exploration projects and has obtained approval from the provincial government to transfer an additional exploration project known as "Anomaly Five" into the joint venture. Due to the termination of the joint venture's interests in the Oblaga Project, and the return of the exploration licenses and mining license to Huayu in late 2005, the "earn-in" terms of the joint venture have been re-negotiated and adjusted to a 95% interest held by IVN and a 5% interest held by Huayu. Final Government approvals are currently being sought for this interest adjustment.
JINSHAN GOLD MINES - targeting mid 2007 to graduate to gold producer
Ivanhoe Mines has a significant equity interest in Jinshan Gold Mines, a Canadian mining company focused on the exploration and development of gold projects in China.
Jinshan Gold Mines is taking a leadership role in a country which is currently the fourth largest global gold producer. Jinshan's CSH 217 Gold Mine in Inner Mongolia, China, is expected to begin production in the summer of 2007 at an initial production rate of approximately 117,000 ounces of gold per year. Jinshan also is conducting regional exploration in the Tianshan mineral belt in Xinjiang Province, Northwestern China. Through well-established joint-venture partnerships, operating experience and a strong presence in China, Jinshan is committed to building a significant gold company and enhancing shareholder value.
AI
