Ivanhoe Australia’s good news double play
Ivanhoe Australia Ltd (ASX & TSX: IVA) announced today that a pre-feasibility study has been completed on the Merlin molybdenum-rhenium project in north western Queensland. At the same time, a trial decline at Merlin was on track and, in a joint announcement, Friedland as chairman, and Peter Reeve, chief executive of Ivanhoe Australia, said Merlin was targeting a production start in the first quarter of 2014. “The study shows that the Merlin Project will provide strong long-term cash-flows with potential for significant upside given the discovery of other high grade molybdenum/rhenium mineralisation in the region.” Reeve said.He described the “high-grade nature” of Merlin as “exceptional.”
“The project has a grade approximately seven times greater than the highest-grade molybdenum mine currently operating, when our rhenium credits are included.”
Reeve said exploration of the mineral belt that contains the Merlin deposit has identified several high-grade intercepts of molybdenum and rhenium that “potentially could prove to be repeats of Merlin-style mineralisation.”
Ivanhoe Australia has been describing Merlin as the world’s highest grade molybdenum and rhenium deposit.
It was discovered by Ivanhoe Australia in late 2008 and an initial mineral resource was declared in mid-2009.
The company said results of the pre-feasibility study confirm that Merlin is a key part of Ivanhoe Australia’s integrated plans for the development of its four major projects in the Cloncurry region during the next five years.
In a separate announcement today, Ivanhoe Australia said it had achieved a positive preliminary economic assessment on the Osborne copper-gold project, also in north west Queensland.
In this announcement, Reeve said: “The study confirms our view that Ivanhoe Australia is firmly on track to begin production from the Osborne complex within approximately five months
“A great deal has been accomplished since we purchased Osborne from Barrick (PD) Australia one year ago. A principal focus for Ivanhoe Australia now is to achieve producer status through the re-launch of Osborne in March 2012.”
“Importantly, the cashflow generated from the operations at Osborne will support the development of our other projects in the Cloncurry field and enable us to continue our aggressive exploration campaign.” Reeve added.
“The project has a grade approximately seven times greater than the highest-grade molybdenum mine currently operating, when our rhenium credits are included.”
Reeve said exploration of the mineral belt that contains the Merlin deposit has identified several high-grade intercepts of molybdenum and rhenium that “potentially could prove to be repeats of Merlin-style mineralisation.”
Ivanhoe Australia has been describing Merlin as the world’s highest grade molybdenum and rhenium deposit.
It was discovered by Ivanhoe Australia in late 2008 and an initial mineral resource was declared in mid-2009.
The company said results of the pre-feasibility study confirm that Merlin is a key part of Ivanhoe Australia’s integrated plans for the development of its four major projects in the Cloncurry region during the next five years.
In a separate announcement today, Ivanhoe Australia said it had achieved a positive preliminary economic assessment on the Osborne copper-gold project, also in north west Queensland.
In this announcement, Reeve said: “The study confirms our view that Ivanhoe Australia is firmly on track to begin production from the Osborne complex within approximately five months
“A great deal has been accomplished since we purchased Osborne from Barrick (PD) Australia one year ago. A principal focus for Ivanhoe Australia now is to achieve producer status through the re-launch of Osborne in March 2012.”
“Importantly, the cashflow generated from the operations at Osborne will support the development of our other projects in the Cloncurry field and enable us to continue our aggressive exploration campaign.” Reeve added.
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