Friedland could have first Australian copper mine in 2014
Ivanhoe Australia Ltd (ASX & TSX: IVA) said Wednesday, a scoping study has shown the Mt Dore cathode copper project in north-west Queensland would provide “robust long-term cash flows for a modest outlay. The announcement, jointly by Ivanhoe Australia’s chief executive and high profile chairman Robert Friedland – better known for his long term advance of the mammoth Oyu Tolgoi being advanced with Rio Tinto – said the Queensland project would, in its first 10 years, have a processing rate of 3 million tonnes per annum. This should produce 19,000 tpa of cathode copper.The planned open pit would tap an indicated 28.6 million tonnes grading 0.75% copper and an inferred 1 Mt @ 0.7% Cu.
Ivanhoe Australia said the initial project specific capital costs were estimated at A$83 million (US$84.67 million) and would have average life-of=mine cash costs of about $US2.24 per pound.
The total after-tax cash flow was estimated at about A$492 million (US$50 million).
“The scoping study confirms that our Mount Dore Cathode Copper project has the potential to provide a steady long-term cashflow stream for Ivanhoe Australia, from late 2014, to reinvest in our prospective exploration and development activities,” said Peter Reeve.
“Ivanhoe Australia’s substantial drilling, geological integrity and project development thinking has resulted in an extraordinary mineral system taking shape at the long-ignored Mount Dore mineralised complex.”
He said evaluating the potential to treat other types of copper ore within the existing Mount Dore resource.
The project’s resource was updated in June last year. Mt Dore hosts an extensive mineralised system that contains three main zones – the leachable copper zone, the polymetallic zone and the Merlin deposit.
The Mt Dore polymetallic zone contains copper, lead, zinc, silver, cobalt and gold. The sulphide mineralisation remains open at depth below the leachable copper.
Recent drilling has intersected Mt Dore-style polymetallic mineralisation at Marilyn, about 800m east of Mount Dore, suggesting the system may extend eastward under the shallow granite cover.
Merlin, near Mt Dore, is a high grade molybdenum and ruthenium project.
The company holds a large package of properties in Queensland, including the new Houdini copper-gold discovery and also has a package of leases in the Tennant Creek field of the Northern Territory.
Ivanhoe Mines (TSX, NYSE & NASDAQ: IVN) is Ivanhoe Australia’s largest shareholder and currently owns, directly and indirectly, about 62% of Ivanhoe Australia.
Ivanhoe Australia said the initial project specific capital costs were estimated at A$83 million (US$84.67 million) and would have average life-of=mine cash costs of about $US2.24 per pound.
The total after-tax cash flow was estimated at about A$492 million (US$50 million).
“The scoping study confirms that our Mount Dore Cathode Copper project has the potential to provide a steady long-term cashflow stream for Ivanhoe Australia, from late 2014, to reinvest in our prospective exploration and development activities,” said Peter Reeve.
“Ivanhoe Australia’s substantial drilling, geological integrity and project development thinking has resulted in an extraordinary mineral system taking shape at the long-ignored Mount Dore mineralised complex.”
He said evaluating the potential to treat other types of copper ore within the existing Mount Dore resource.
The project’s resource was updated in June last year. Mt Dore hosts an extensive mineralised system that contains three main zones – the leachable copper zone, the polymetallic zone and the Merlin deposit.
The Mt Dore polymetallic zone contains copper, lead, zinc, silver, cobalt and gold. The sulphide mineralisation remains open at depth below the leachable copper.
Recent drilling has intersected Mt Dore-style polymetallic mineralisation at Marilyn, about 800m east of Mount Dore, suggesting the system may extend eastward under the shallow granite cover.
Merlin, near Mt Dore, is a high grade molybdenum and ruthenium project.
The company holds a large package of properties in Queensland, including the new Houdini copper-gold discovery and also has a package of leases in the Tennant Creek field of the Northern Territory.
Ivanhoe Mines (TSX, NYSE & NASDAQ: IVN) is Ivanhoe Australia’s largest shareholder and currently owns, directly and indirectly, about 62% of Ivanhoe Australia.
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