Junior Gold companies (IVANHOE MINES)

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Ivanhoe Mines (IVN) key asset is the Oyu Tolgoi Project, the world's largest copper-gold development project located in the south Gobi region of Mongolia, 80 km north of the China border. Ivanhoe also controls exploration rights in Mongolia, where additional discoveries of coal, copper and gold are being delineated, and is exploring for gold and copper in Inner Mongolia, China, and Queensland, Australia.

Ivanhoe Mines is a 50%-owner of the Monywa Copper Mine in Myanmar, and has a 70% interest in the Bakyrchik Gold Mine in Kazakhstan.

The Mongolian Government is negotiating with Ivanhoe Mines on a formal agreement that will set a tax, financial and legal 30-year framework for the Oyu Tolgoi copper-gold mining project in the country. Mine life is projected at 40 years with an annual production of 1 billion pounds of copper and 330,000 ounces of gold. Ivanhoe’s negotiation process is also expected to cover whether the Mongolian Government or a future state-owned mining company would exercise an option of up to 34% ownership of the Oyu Tolgoi project. Currently, Ivanhoe owns 100% of the project.

After a huge fall in May with a tremendous gap down (after the approval of a new tax measure, currently under renegotiation), IVN was trading on a deep downtrend with prices under EMA50 and EMA200. But on the beginning of September, despite a weakening Gold, the price is breaking up (closed today at 6.87 on strength) and if it manages to exceed 7.00 and 8.00 resistances, the gap will be certainly closed and price may be headed to revisit 10.57.