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Overview
Ivanhoe Australia has had great success in discovering a series of mineral resources rich in copper, gold, molybdenum and rhenium on the Cloncurry tenements, including Merlin, the world's highest grade molybdenum and rhenium deposit. These discoveries and the integration of them with the recently acquired Osborne Operation, provide the opportunity for Ivanhoe Australia to start exploiting its mineral resources from as early as late 2011 from the Little Wizard Mo-Re Project. Ivanhoe Australia's projects which have potential for development in the near term include mineral resources contained at:
With the exception of Mount Elliot, these projects are being assessed for development in parallel with the Merlin project to be processed in operating campaigns to economically provide the critical mass to allow the Osborne Operation to return to its full operating rate of 2mtpa.  Figure 1 -- Plan showing location of major projects and the proposed 58 km Osborne-Merlin haul road The currently proposed development sequence, which is being evaluated as part of the Merlin pre-feasibility study (expected to be completed by 4Q2010), is as follows:
Future Integrated Development The following work is being undertaken in order to integrate the Cloncurry and Osborne sites and achieve the Company's targeted production levels for the 2011-2015 period:
Commencement of the Merlin Decline The contract for the Merlin Decline and associated works was awarded in August 2010 and work on site commenced in September 2010. Construction of Osborne-Merlin haul road Work has commenced for the 58 km haul road access to the Cloncurry tenements. Ivanhoe Australia's production plans foresee recommencement of operations at the Osborne plant in 2011 with Little Wizard bonanza grade molybdenum and rhenium ore being the first to be processed via gravity separation and/or flotation. In 2012 processing of both Merlin ore and Kulthor copper-gold ore is planned to commence. Prefeasibility study work for Merlin indicates that steady state ore production of 500 ktpa from an underground mine is achievable. Establishment of a site operations team The Company has recently appointed a General Manager, Operations, who is responsible for the establishment and ongoing operation of this operating plan and the integration of both the Cloncurry and Osborne sites to enable a smooth transition for Ivanhoe Australia to operating status. Completion of the copper-gold study Evaluation of the potential development of copper-gold ore sources including those contained within the Osborne tenements as well as Starra Line and Mount Elliott are underway. The study is investigating the potential during the 2011-2015 period to process both the full output from the Merlin mine and all the available copper-gold ore sources at the Osborne Operation and Cloncurry projects concurrently. This may include the establishment of parallel molybdenum and copper trains within the existing Osborne processing facility. Further information is provided below. The copper and gold ore sources within the Osborne leases remain significant and will be reviewed in the coming months as part of Ivanhoe Australia's development plans. The most significant of these is the Kulthor project, for which a full feasibility study has been completed and access development is near complete. Work will proceed to seek to expand these resources with a vigorous Ivanhoe Australia-driven exploration program commencing as soon as possible. A brief summary of some of these potential ore sources is set out below:
Sources of potential feed also exist within the Starra Line. |