Ivanhoe Mines Gets a Boost from SouthGobi Discovery

Dec.18.07 | About: Turquoise Hill (TRQ)

Shares of Ivanhoe Mines Ltd. (IVN) were up more than 3% this morning after its subsidiary announced positive sampling results.

Ivanhoe owns roughly 90% of SouthGobi Energy Resources Ltd., which has discovered a gold and silver system at its property in Java, Indonesia.

On Monday, BMO Capital Markets analyst Craig Miller said the impact of this news could be positive given that the sampling program of more than 70 trenches identified several “high-level veins” in an 520 metre-wide and 200 metre-long area.

The mineralization may extend for an additional 500 metres, he told clients in a note, adding that SouthGobi’s 3,000-metre drilling program is scheduled to begin in early 2008.