IVA - Inova Resources

[J.B.Nimble]

Holy cow…! This morning’s announcement made me choke on my cornies… 67m at 1.28% Mo, 29.2 g/t Re and 0.13% Cu including 10m at 6.73% Mo, 150g/t Re and 0.52% Cu. Compare that with the 0.065% Mo grades at MOL’s Spinifex ridge. These are stunning grades seldom seen in Moly. The rhenium is interesting too – current price of 350 US$/oz puts it a shade under half the price of gold and makes these Re hits very worthwhile. Moly price may have tanked recently but the grades in these first 20 holes would put them well in front of most existing producers. It is good enough to have them launching straight in to scoping study work for a 500,000T per year underground operation at the Merlin prospect.

FWIW these guys are the Australian vehicle for TSX listed Ivanhoe Mines – a pretty substantial player. IVA listed on ASX in August, have 70mill cash (at end of September), and a market cap of 100mill (at 32 cents).

Their projects are a cluster of interesting copper prospects in the Cloncurry region for total resource 3.1MT Cu and 5.1 Moz gold .
Mt Elliot 2.3MT Cu, 4.3 Moz gold (0.5%Cu and 0.3g/t gold grades)
Mount Dore 480kT Cu (0.6% Cu grade)
Starra Line 274kT Cu, 809koz gold (0.9% Cu and 0.8g/t gold)
But for now let’s leave the copper and gold for another day – there’s a moly mine to be built.

 

[Wysiwyg]

Re: IVA - Ivanhoe Australia

$2 / share, gee whiz what a rip off.

Good intersected grades for molybdenum.Interesting that they say Starra Line would be the closest to production and 2 years away at the earliest.Maybe the metals market will be in strong demand again by then.Usual story, burn through the seed funds and then dilute share numbers with another raising.

Good pass the parcel till things fine up IMO.

 

[J.B.Nimble]

Re: IVA - Ivanhoe Australia

Some good price action following the latest announcement and resulting media interest. No question that the Mt Elliot copper prospect is pretty good but those spectacular moly grades at the Merlin prospect have this one filed under H for hold...

MINING billionaire Robert Friedland's Ivanhoe Australia is fast becoming a company to watch.

It has significant copper drilling results thought to rival Australia's massive diversified mines.

The company's stock jumped 11 per cent to 40c yesterday after chief executive Peter Reeve released drilling results from the Swan zone at its Mount Elliott project in northwest Queensland.

He said one of the drill holes had intersected 342m at 1.53 per cent copper.

"This is an outstanding result and is well above expectations," Mr Reeve said.

UBS analyst Jo Battershill said 1.53 per cent copper equalled the best sections in OZ Minerals' flagship Prominent Hill copper-gold mine in South Australia.

"These are very encouraging results and some of the best drill results we have seen in Australia in the last couple of years," Mr Battershill said.

"Ivanhoe have historically done well to identify potential sources of very large deposits, which they aim to drill out to discover how big it is, instead of jumping into early mine development."

Mr Battershill said that now was a terrible time to be announcing good news because of the difficult market.

But he said that Ivanhoe's previous big discovery, last December, also had the potential to be a significant find.

Ivanhoe revealed what it called a "company-changing" molybdenum and rhenium discovery in Queensland in December.

At the time it said recent drilling at its Mount Dore project at its Cloncurry tenements in northwestern Queensland had discovered and confirmed a significant zone of high-grade molybdenum and rhenium mineralisation.

It is understood that the drill results on the project indicate that the resource could have at least 13 million tonnes of molybdenum, and could be worth more than $US5 billion ($7.4 billion).

The unexpected discovery, which the company is calling the Merlin project, has become its top priority. Mt Elliott was originally the cornerstone project.

Ivanhoe has tenements covering 2250sqkm in the Mount Isa-Cloncurry mineral district in Queensland.

"I don't think people often understand the molybdenum market well but these were exceptionally high-grade results on any world standard," Mr Battershill said.

"Ivanhoe is well-positioned for any positive turn in the market.

"They can push to the stages of pre-feasibility studies on potentially significantly sized projects."

Mr Reeve said he was pleased the company was not in production yet because the tight credit conditions and falling commodity prices had sent some miners to the wall.

"It is a terrible time for some with the metal prices down and input costs still high," he said.

"Input costs will eventually fall, though, and we are cashed up with $70 million in the bank.

"We have development plans in place and are working towards building up our resources."

Canada-based Ivanhoe Mines owns 80 per cent of Ivanhoe Australia.

http://www.theaustralian.news.com.au/business/story/0,28124,24913762-5005200,00.html

 

[GumbyLearner]

Re: IVA - Ivanhoe Australia

Some good price action following the latest announcement and resulting media interest. No question that the Mt Elliot copper prospect is pretty good but those spectacular moly grades at the Merlin prospect have this one filed under H for hold...

MINING billionaire Robert Friedland's Ivanhoe Australia is fast becoming a company to watch.

It has significant copper drilling results thought to rival Australia's massive diversified mines.

The company's stock jumped 11 per cent to 40c yesterday after chief executive Peter Reeve released drilling results from the Swan zone at its Mount Elliott project in northwest Queensland.

He said one of the drill holes had intersected 342m at 1.53 per cent copper.

"This is an outstanding result and is well above expectations," Mr Reeve said.

UBS analyst Jo Battershill said 1.53 per cent copper equalled the best sections in OZ Minerals' flagship Prominent Hill copper-gold mine in South Australia.

"These are very encouraging results and some of the best drill results we have seen in Australia in the last couple of years," Mr Battershill said.

"Ivanhoe have historically done well to identify potential sources of very large deposits, which they aim to drill out to discover how big it is, instead of jumping into early mine development."

Mr Battershill said that now was a terrible time to be announcing good news because of the difficult market.

But he said that Ivanhoe's previous big discovery, last December, also had the potential to be a significant find.

Ivanhoe revealed what it called a "company-changing" molybdenum and rhenium discovery in Queensland in December.

At the time it said recent drilling at its Mount Dore project at its Cloncurry tenements in northwestern Queensland had discovered and confirmed a significant zone of high-grade molybdenum and rhenium mineralisation.

It is understood that the drill results on the project indicate that the resource could have at least 13 million tonnes of molybdenum, and could be worth more than $US5 billion ($7.4 billion).

The unexpected discovery, which the company is calling the Merlin project, has become its top priority. Mt Elliott was originally the cornerstone project.

Ivanhoe has tenements covering 2250sqkm in the Mount Isa-Cloncurry mineral district in Queensland.

"I don't think people often understand the molybdenum market well but these were exceptionally high-grade results on any world standard," Mr Battershill said.

"Ivanhoe is well-positioned for any positive turn in the market.

"They can push to the stages of pre-feasibility studies on potentially significantly sized projects."

Mr Reeve said he was pleased the company was not in production yet because the tight credit conditions and falling commodity prices had sent some miners to the wall.

"It is a terrible time for some with the metal prices down and input costs still high," he said.

"Input costs will eventually fall, though, and we are cashed up with $70 million in the bank.

"We have development plans in place and are working towards building up our resources."

Canada-based Ivanhoe Mines owns 80 per cent of Ivanhoe Australia.

http://www.theaustralian.news.com.au/business/story/0,28124,24913762-5005200,00.html

Impressive announcement today. Good for them they are just exploring and not producing at the present time in Qld.

 

[J.B.Nimble]

Re: IVA - Ivanhoe Australia

We've been a bit quiet lately but a bit of news...

London, 06 March 2009 - Ivanhoe Australia Ltd, a wholly owned subsidiary of Ivanhoe Mines Ltd of Canada, has applied to join the MMTA (Minor Metals Trade Association), the MMTA said on Friday.

The company has a molybdenum and rhenium development project in Queensland, Australia. It expects rhenium production to commence within two years.

The MMTA is a UK-based industry body, comprised of traders, producers and consumers of minor metals. Its membership comprises over 120 companies from 30 countries, accounting for $10-15 billion a year in minor metals trade.

Interesting view on outlook for moly prices...

London, 04 March 2009 - The global molybdenum market is expected to register a surplus of 10 million pounds this year, although this could be wiped out if Chinese production growth is less than expected, Douglas Horn, analyst at consultants CPM Group said on Wednesday.

In a broad annual market of 460 million pounds, this is a manageable surplus, which suggests an average price of between $10.50/11.00 for molybdenum oxide (MO3) this year, rising to $16 next year and over $20 in 2011, he said at at a conference organised by the LME and Metal-Pages.

MO3 is currently languishing around $8.50/9.00 a pound, close to its lowest since June 2004, having collapsed from early-September 2008 levels of some $32 a pound.

China accounted for 38 percent of world production in 2008, but its output growth has been slowing, due to many high cost and low-grade mines having to cut back. This trend will continue, although production is still seen growing by six percent this year.

"But if production growth is flat in China, that surplus will disappear, which is encouraging," he said.

The near-75 percent price drop, which was a result of the steep cutbacks in steel production -- molybdenum's key end-use -- has already seen some 30 million pounds of capacity being cut back, and more are possible, Horn said.

"The sharp correction in both molybdenum and copper prices may continue to spur significant slashes in output at existing producers."

"Project financing will remain an uphill battle for practically all of the potential new primary producers and expected copper by-product producers. Extended delays in financing may result in the cancelation of equipment orders and defaults on obligations," he added.

Demand has also been hit by the recession, and steel production cuts will continue to depress molybdenum sales until demand picks up significantly.

"Stimulus packages in China, the US, and other countries will help mitigate the cyclical downturn but will not replace private sector demand," Horn said.
MinorMetals.com

 

[Sean K]

Re: IVA - Ivanhoe Australia

MO3 is currently languishing around $8.50/9.00 a pound, close to its lowest since June 2004, having collapsed from early-September 2008 levels of some $32 a pound.

No wonder the likes of KMN have been smashed. Can we assume prices are going to really steady and continue up? I am sure that the BRIC story is just taking a short term hit in the early stages of a long term bull. Metals will be in demand once again. How long? 2-6 years? If companies like this can stay solvent in the immediate future they may represent a significant growth opportunity once the dust settles. Maybe.

 

[J.B.Nimble]

Re: IVA - Ivanhoe Australia

No wonder the likes of KMN have been smashed. Can we assume prices are going to really steady and continue up? I am sure that the BRIC story is just taking a short term hit in the early stages of a long term bull. Metals will be in demand once again. How long? 2-6 years? If companies like this can stay solvent in the immediate future they may represent a significant growth opportunity once the dust settles. Maybe.

The crash in moly contract prices was brutal but the Merlin prospect is attractive even at these prices. The grades are exceptional. The speculation on a possible 5bill in ground value was based on post crash prices. With 70mill cash at the start of the year they are fairly well placed to chase this through towards development. If prices do recover this will mint cash.

 

[Sean K]

Re: IVA - Ivanhoe Australia

IVA seem to be still hitting some good grades and in the news again.

312m on issue at .70 = $218m MC.

From last presentation (bit old)

♦ Targeting copper, gold and uranium mineralisation
♦ 100% interest in 2,315km² tenements (including application)
♦ Iron Oxide Copper Gold (IOCG) System typically large scale, extensive depth
and polymetallic
– Examples are Ernest Henry, Olympic Dam and Prominent Hill
♦ Global Resources total 3.1 Mt copper and 5.1 Mozs gold
♦ Principal IAL 100% projects have significant resources:
– Mount Elliott; 2.3 Mt copper, 4.3 Mozs gold
– Mount Dore; 480,000 tonnes copper
– Starra Line; 274,000 tonnes copper, 809,000 ozs gold
♦ All the key projects are on granted mining licences
♦ Uranium prospects, 220 targets and an evolving molybdenum story
♦ Cash position $70.2 million end September Quarter
♦ 19.9% interest in Exco

Cash must be down a bit from there.

This was before the massive Mo hits.

Looks prospective.

Nice break up a few days ago.


Ivanhoe drill finds highest grade molybdenum
Sarah-Jane Tasker | March 25, 2009
Article from: The Australian

ROBERT Friedland's Ivanhoe Australia has confirmed it has recorded the highest grade of molybdenum in the world at its flagship Queensland project.

Chief executive Peter Reeve revealed yesterday the company had received "significant" results from 75 of the 90 drill holes at its Merlin Project, on its Cloncurry tenements in northwestern Queensland.

He said results at the Merlin Project indicated it was the highest grade source of rhenium and molybdenum anywhere in the world. "These results are outstanding. This is one of the best discoveries in Australia in a long time," he said.

"It is hard to look at these results and not say that we have a viable project."

Shares in Ivanhoe, which listed on the Australian Securities Exchange in August, jumped 12.9per cent to 70c after the announcement.

The company said recent drilling had defined the highest-grade zone encountered so far, and were even better than initial results released in December, when it announced it had made a "company changing" discovery.

Molybdenum gives steel its strength. Rhenium is a rare metal used in molybdenum-based alloys for aircraft turbine blades and petroleum-forming catalysts.

UBS analyst Jo Battershill confirmed the results were some of the highest recorded.

"It's incredible. The core is unlike anything else I've ever seen before," Mr Battershill said.

It is understood that drill results indicated that there could be 15 million tonnes of molybdenum, worth more than $US5billion. Ivanhoe, 80 per cent owned by Canada-based Ivanhoe Mines, will do studies to get the mine into production.

 

[Trevor_S]

Re: IVA - Ivanhoe Australia

– Examples are Ernest Henry, Olympic Dam and Prominent Hill
♦ Global Resources total 3.1 Mt copper and 5.1 Mozs gold
♦ Principal IAL 100% projects have significant resources:
– Mount Elliott; 2.3 Mt copper, 4.3 Mozs gold
– Mount Dore; 480,000 tonnes copper
– Starra Line; 274,000 tonnes copper, 809,000 ozs gold
♦ All the key projects are on granted mining licences

I worked there from 1987 - 1994. Mt Dore is so low grade they engineers suggested a leaching process and cracking the ground using nukes was the only solution in getting the Cu out. Mt Elliott had been mined in the 1900's and then again in the middle 1990's, I worked on it as well. Starra, we mined the ying yang (underground open stopeing and open cut) out of that and took the best bits. Starra (Selwyn Mine) was the first, long before Osborne, Cannington, Ernst Henery etc which are all within cooee of Selwyn (Starra/Mt Dore) which led the way in terms of opening the area to mining.

I was out there on a motorbike tour of outback Qld back two years ago, one of the Geo's that was out there when I was there was working for Ivanhoe. That placed has been swiss cheesed with drill holes.

He said results at the Merlin Project indicated it was the highest grade source of rhenium and molybdenum anywhere in the world. "These results are outstanding. This is one of the best discoveries in Australia in a long time," he said.

Which is interesting. We were looking for Cu/Au only. Though just up the road, one of the largest Ag nuggets ever was found from memory. The area (especially around Kuridalla / Mt Elliott) is steeped in mining history.

 

[Sean K]

Re: IVA - Ivanhoe Australia

Which is interesting. We were looking for Cu/Au only. Though just up the road, one of the largest Ag nuggets ever was found from memory. The area (especially around Kuridalla / Mt Elliott) is steeped in mining history.

Focus seems to have shifted short term to the Mo/Re find. Sounds pretty spectacular. Requires Mo price to lift a bit to gain more interest I think. Blows KMN's Kalman deposit out of the water.

 

[J.B.Nimble]

Re: IVA - Ivanhoe Australia

Focus seems to have shifted short term to the Mo/Re find. Sounds pretty spectacular. Requires Mo price to lift a bit to gain more interest I think. Blows KMN's Kalman deposit out of the water.

Tons of interest today. Got in to this after choking on my cornies at the top of this thread - my best trade of the year. The grades are money making territory in any market. To put it in terms of more common commodities - moly grades of 1.4% are roughly equivalent to 7% copper at $8.8/lb and $1.8/lb respectively, and rhenium at 20 g/t is equivalent to around 7 g/t of gold. Very rich grades in anyones language...

 

[Sean K]

Re: IVA - Ivanhoe Australia

Tons of interest today. Got in to this after choking on my cornies at the top of this thread - my best trade of the year. The grades are money making territory in any market. To put it in terms of more common commodities - moly grades of 1.4% are roughly equivalent to 7% copper at $8.8/lb and $1.8/lb respectively, and rhenium at 20 g/t is equivalent to around 7 g/t of gold. Very rich grades in anyones language...

Thanks for putting in perspective JBN.

Yes, a little interest today.

Nice work!!!



Another stock that if you had your eye on the ball during the recent oversold nature of the market could have made a motza!

I'm actually hoping we see that again, I have too much in cash and have missed most of the gains I think.

 

[Sean K]

Re: IVA - Ivanhoe Australia

Seems to have been re-rated slightly.

Well done to those in from early on, or long term believers.

I wonder when profit takers, um, take profits.

Surely can't just keep going verticle. Or can it?

 

[Sean K]

Re: IVA - Ivanhoe Australia

Simply stunning. Up another 25% this morning. Incredible. Gobsmacked. One of those outliers you just dream of. Well done JBN!

 

[J.B.Nimble]

Re: IVA - Ivanhoe Australia

Simply stunning. Up another 25% this morning. Incredible. Gobsmacked. One of those outliers you just dream of. Well done JBN!

I'll probably kick myself but I took my profits on Friday. Fancied I saw drop in volume signalling the run was coming to an end. Mustn't grumble though - its been a nice ride...

 

[Sean K]

Re: IVA - Ivanhoe Australia

I'll probably kick myself but I took my profits on Friday. Fancied I saw drop in volume signalling the run was coming to an end. Mustn't grumble though - its been a nice ride...

Nice move JBN! Just about the top. Lots of profit taking moving in, as you would expect. Nothing just goes verticle for ever. Problem now is, where is technical support on the way back down? Maybe a little around $1.00 from last Sep, but then it's back at 50c. Must stop and consolidate at some point, the Mo find is too good. I've been patiently waiting for an opportunity, it may be close. First resource estimate for Merlin is due in April which might provide further interest.

I know the initial find of the high grade zone was in Oct and Jan but you'd have to question the run up in March wouldn't you. I mean there was no ann between 14 Jan to 24 Mar, and look at the chart. Didn't move until mid March, just before the last ann really confirming the discovery. Maybe it just all took a while to sink in?

 

[enigmatic]

Re: IVA - Ivanhoe Australia

The grades here sound great my one question is how much at this grade..
I have been following another possibly Moly.. seems to have really low grades .25-.35 range but Your looking at over a 2million ton of Moly

assuming the Ferro-Molybdenum which is $19.25/Kg cause Im not sure if it is that or $7.9/lb Molybdenum Oxide

Thats 2billion kgs at $19.25 giving this other joint arround $38billion in Moly..
Or am i missing something

 

[Sean K]

Re: IVA - Ivanhoe Australia

The grades here sound great my one question is how much at this grade..

Yes, excellent point! I have looked at the cross sections on the cartoons that they've produced and it all looks pretty thin, but open. Really hard to tell the tonnage from what they have produced. The good grades are around the 200m mark which is ok. I mean, I could dig down to that! The trick with this deposit is that it's the highest grade Mo/Re deposit on the planet, by what we know. Just what that is worth as far as current market cap is a good question. In it's present stage, is it cheap, or expensive? What's the sentiment?

 

[enigmatic]

Re: IVA - Ivanhoe Australia

It depends how far off they are till production..

200m is reasonably deep isnt it the one I'm looking at is roughly 5-9m and 9-15m although has more Vanadium then Molybdenum just trying to compare as 200mil cap seems large if there not near production well in the current climate that is back in the bull i would of thought it was super cheap..

 

[Sean K]

Re: IVA - Ivanhoe Australia

It depends how far off they are till production..

200m is reasonably deep isnt it the one I'm looking at is roughly 5-9m and 9-15m although has more Vanadium then Molybdenum just trying to compare as 200mil cap seems large if there not near production well in the current climate that is back in the bull i would of thought it was super cheap..

Not sure about the Vanadium up there, but they are claiming some big Cu and Au numbers as mentioned previously. Low grade by the look, except for that one gigantic 150m + 1.5% Cu equiv intersection mentioned a little back.

Attention all seems to be on the Mo/Re zone which, on the surface of it, caused it to jump 50c to almost $2.00 in a few days...

MC went out of whack at that point I think for being an explorer. Some sanity will prevail. Perhaps when the market gets an initial resource on this Mo find. Then, we all need to see the price of Cu, Mo and Re stabilise and have a strong outlook, instead of death and destruction as some are promulgating..