First Drill Results From Initial Exploration Program At Hog Heaven Project

PHOENIX, AZ - Ivanhoe Electric Inc. reported 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. The 2023 drill program at Hog Heaven commenced in June. 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.

The Company 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.

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. 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.

Figure 1. Hog Heaven Project map showing geophysical data and location of Ivanhoe Electric exploration drilling. 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.

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.

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.