The Cloncurry Project has been the subject of exploration and mining activities by a number of companies over the past 100 years. Open cut mining of oxide gold deposits was commenced along the Starra Line in 1988 by Armico Mining, and subsequently underground mining produced copper / gold concentrate from sulphide ore. Development of a modern underground mine at Mount Elliott commenced in 1993.

Ore from the Starra Line series of mines, Mount Elliott and, for a very short period, from two small open pits at Victoria and one open pit at Lady Ella, was treated through a mill located adjacent to the Starra Line mines. This mill has now been removed. Project production since start-up in 1988 to closure in 2003 totalled approximately 217,700 tonnes of copper and 1.02 million ounces of gold from a mined tonnage of approximately 12.9 million tonnes averaging 3.10g/t Au and 2.38%Cu.

In 2002 Selwyn Mines experienced difficulties due to ore production from the Starra and Mount Elliott mines not being able to sustain the required treatment rate during a period of low copper and gold prices. The Selwyn Mines operation closed as a consequence.

Ivanhoe Australia, through Ivanhoe Cloncurry Mines, acquired the IAL Mining Tenements in late 2003 and commenced low-level exploration over the following three years while activity was focused on Mongolia. This activity then increased following the more complete delineation of the Oyu Tolgoi orebody in Mongolia. As part of its acquisition of the IAL Tenements, Ivanhoe Australia obtained an extensive and valuable database of technical information relating to the mining exploration and drilling undertaken by the previous project owners. In May 2007 an interest in EXCO Resources, who were active in the region, was acquired, and a joint venture on EXCO's southern tenements entered into. Ivanhoe Australia successfully listed on the Australian Stock Exchange in August 2008

Ivanhoe Australia's exploration drilling program commenced in August 2004 on the partially drilled copper gold targets at the SWAN Zone at Mount Elliott and secondary copper Mount Dore prospect, followed by geophysical surveys and drilling at Metal Ridge and Amethyst Castle. Strong results from the SWAN Zone led to Ivanhoe Australia instigating an intensive drilling program designed to test mineralisation at depth which demonstrated a style similar to the Ernest Henry Mine, owned by Xstrata, to the north of Ivanhoe Australia's tenements, and the Osborne Mine, owned by Barrick, to the south.

The exploration pre 2006 on the tenements within the Cloncurry Project was focussed on shallow drilling in the range of 200 to 400 metres. The delineation of near surface deposits underpinned the exploration strategy of previous owners which were primarily focused on generating high grade mill feed to maintain cash flow. As a result of that approach, Ivanhoe Australia believes that the potential for larger scale IOCG targets was not tested at depth below surface indications or where geophysical surveys indicated that deposits could exist at depth.

As at 30 June 2009, Ivanhoe had completed 210 diamond and RC holes at Mount Elliott, bringing the total number of holes drilled on these deposits to 1,332. Drilling has established a link between the Mount Elliott, SWELL and SWAN zones at depth. The mineralisation encountered thus far at Mount Elliott is open to the north at depth and to the west. An updated mineral resource estimate was published in October 2010.

At Mount Dore exploration drilling has been carried out by Ivanhoe Australia since 2004. During a step-out drilling program at Mount Dore the high-grade Merlin molybdenum & rhenium deposit was discovered. A mineral resource estimate was published in September 2008 for the Mount Dore copper mineralisation and an Independent National Instrument (NI) NI43-101 compliant Mineral Resource estimate for the mineralisation at Merlin was published in November 2009. This was updated in August 2010 to include both the Mount Dore and Merlin mineralisation.

On the Starra Line of deposits previous mining, during periods of low metal prices, concentrated on extracting thin high-grade zones within the thick mineralised ironstone rocks. Total drilling of diamond and RC holes on the whole line is 1,268 holes of which 16 have been completed by Ivanhoe Australia. There is an excellent potential to extend the currently defined deposits down plunge and to test at depth and along strike for new deposits. A mineral resource estimate was published in September 2008.