Ivanhoe Australia Limited
Merlin Project – Cloncurry QLD
Barry Goss, General Manager
Development
0
DRAFT
2008 Ivanhoe Australia Highlights
• IPO raised $125M for sale of 20% of the company
• Declaration of 4 significant Mineral Resources
• Discovery of Merlin Molybdenum Rhenium deposit
• Emmerson Resources Investment in Tennant Creek region
• Realisation of exploration potential for Cloncurry tenements
KEY FOCUS IS TO BUILD ORGANIC GROWTH VIA
PURSUIT OF METAL DISCOVERIES IN UNDER
EXPLORED, HIGHLY MINERALISED GEOLOGICAL BELTS
WITH RELENTLESS AND WELL FUNDED EXPLORATION
PROGRAMS
1
DRAFT
2
DRAFT
The Mt. Isa Inlier
3
DRAFT
Cloncurry Projects
Declared Resources (as at 30 June 2008, Merlin – 31 Dec 2008)
• Merlin
13 Mt @ 0.8% Mo, 14 g/t Re, 0.2% Cu and 4.8 g/t Ag
• Mount Dore
80 Mt @ 0.6% Cu
• Mount Elliott
475 Mt @ 0.5% Cu, 0.3 g/t Au
• Starra Line
30 Mt @ 0.9 % Cu, 0.8 g/t Au
Aggregate Metals Inventory in Resources:
• 3.1 million tonnes of copper
• 5.4 million ounces of gold
• 110,000 tonnes of molybdenum
• 180,000 kilograms of rhenium
• 2 million ounces of silver
Current Exploration Status
• 3 rigs operating - was 8 rigs until December 2008:
• Staff 60 of which 22 are highly experienced geoscientists
4
DRAFT
5
5
DRAFT
Overview of Mount Dore
6
DRAFT
Mount Dore 1920’s Mine site
7
DRAFT
Mount Dore Shaft
8
8
DRAFT
Mount Dore copper oxides on surface
9
9
DRAFT
MDHQ 07 – 87 copper oxides in blackshale
10
10
DRAFT
Mount Dore copper oxides and native copper in core
11
11
DRAFT
Overview of Mount Dore showing mineral zones
12
DRAFT
Mount Dore – untested area 2007
Western Ironstones
THE STARRA LINE
13
DRAFT
MDHQ 07-92 and RC rig in background Feb 08
14
14
DRAFT
MDQ0153 discovery hole?
15
15
DRAFT
There’s Molybdenite in this!
28-72 m 1.65% Cu 0.2 g/t Au
then
154-196m 0.46% Mo, 10 g/t Re, 0.15% Cu
16
16
17
DRAFT
18
DRAFT
19
DRAFT
Cross section 7605300N
20
20
DRAFT
Cross section 7605350N
21
21
DRAFT
Cross section 7605400N
22
22
DRAFT
Cross section 7605550N
23
23
DRAFT
Mount Dore Long Section
24
DRAFT
Mount Dore Long Section
25
DRAFT
Mount Dore – looking north
Granite
Mount
Dore BM
Merlin as
a solid
26
26
DRAFT
Merlin Project – World’s Highest-Grade MolybdenumRhenium Deposit
• 13 million tonnes at 0.8% molybdenum,
14 g/t rhenium,
0.2% copper,
4.8 g/t silver
• Estimate of contained metal is:
- 110,000 tonnes (240 million pounds) of molybdenum;
- 180,000 kilograms (6 million ounces) of rhenium;
- 30,000 tonnes copper;
- 2 million ounces of silver.
• Merlin’s declared resource accounts for only half the currently identified
mineralisation
27
DRAFT
Merlin Attributes
• Located in Australia – Low Political Risk
• Deposit is extremely high grade
• Relatively shallow therefore low risk / low cost mining
• High grade ore means processing plant small
• Metallurgical testwork showing positive results
• General ease of production
• Merlin is not by-product rhenium - Very important
• Direct source of rhenium to Market
• Production within 2 years
28
DRAFT
Rhenium’s Unique Properties
29
♦
Third highest melting point - 3180㼻 C, exceeded only by tungsten and carbon.
♦
Extreme resistance to heat and wear.
♦
No ductile-to-brittle transition temperature. Ductile from 0㼻 Kelvin (-273㼻 C) to
melting point, which allows plastic deformation without fracturing.
♦
Current global production totals only approximately 50 tonnes each year.
♦
An estimated 77% of rhenium is used in super-alloys and 15% is used in petroleum
catalysts.
♦
Aircraft-engine turbine blades use rhenium alloys to allow operation at higher temperatures,
which also improves fuel efficiency.
♦
Petroleum-forming catalysts.
♦
Rocket thrusters, Oil refinery and nuclear power plant components, Heating elements and
thermocouples.
29
DRAFT
30
30
DRAFT
Comparison Molybdenum and Rhenium Deposits
31
31
DRAFT
Comparison to Kambalda
Kambalda WMC 1965
♦ Little Ni S in Aust Tasmania
Merlin Ivanhoe 2008
♦ Small Mo producers
Qld/NSW, no significant Re
♦ 750,000 t 5.2% Ni first
resource
♦ 13 Mt 0.8% Mo 14 g/t Re first
resource
♦ 4Mt in 1 yr
♦ Potential to be Worlds highest
grade Re and Mo mine?
♦ 14 Mt 2 yr
♦ First primary supplier of Re
♦ New Nickel sulphide province ♦ New Mo province Kalman an
example
♦ World significant Ni producer
32
32
DRAFT
Merlin Decline Concept Design May 09
33
DRAFT
Development Plan
♦ Develop decline mine
♦ Produce concentrate
♦ Roast to produce MoO3
34
♦
Recover Re from flue gases
♦
SX (EW) for NH4ReO4 Ammonium perrhenate and copper, zinc, cobalt, silver
♦
Residue leached for gold.
♦
Receive full value for ore versus sale of concentrate to overseas roaster who will deduct etc – our
concentrate will be no better than porphyry copper deposit by product MoS2 concentrates.
♦
Bingham to put in MAP Mo concentrate plant to do the same, lower grde conscentrates can be prodcued more Mo and get
full value for Re..
♦
KGHM have put a plant in at Lubin to recover 3 tpa of Re metal rather than sell concentrates
34
DRAFT
Mineralised Trend Mount Dore – Metal Ridge
35
DRAFT
Copper oxides on surface Flora
36
36
DRAFT
Heading North – after the wet
37
37
DRAFT
Copper sulphides and Molybdenite
38
38
DRAFT
Exploration
y 220 prospects to be explored
y Very good team of geologists
y First time these tenements
have had adequate funding
and exploration
y Confident of further
discoveries and extensions
to existing resources
39
DRAFT
Corporate
Foreign Institutions
77.0%
Australian Institutions
5.6%
Retail
17.4%
40
DRAFT
Ivanhoe Australia Board & Management
Robert Friedland
Chairman
Non-Executive Director
David Woodall
Douglas Kirwin
William Hayden
John Macken
Peter Reeve
Peter Meredith
David Korbin
Ian Plimer
Kyle Wightman
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
Non-Executive
Director
CEO and
Managing Director
Non-Executive
Director
Non-Executive
Director
Independent
Non-Executive
Director
Independent
Non-Executive
Director
Darren Millman
Barry Goss
Paul Carter
Finance Manager /
Company
Secretary
General Manager,
Development
General Manager,
Cloncurry Project
41
DRAFT
Path Forward
• Complete Merlin Project Scoping
Study by end May 2009
• Mineral Resource updates complete
during June Quarter 2009 are:
- Mount Elliott and SWAN HGZ
- Mount Dore oxide and
polymetallics
- Merlin
• Accelerate step-out drilling to north
of Merlin
• Explore corridor north of Mount
Dore extending 8 km to Metal Ridge
• Continue drilling high-grade
mineralisation in the SWAN zone of
the Mount Elliott deposit
• Ramp-up exploration tempo at
Tennant Creek Mineral Field, with
Emmerson Resources Limited
42
DRAFT
• Are there any questions or comments?
43
DRAFT
Thank you
www.ivanhoeaustralia.com
IVANHOE AUSTRALIA LIMITED
44