re: Ann: Diggers and Dealers Mining Conferenc... Cloncurry to...

re: Ann: Diggers and Dealers Mining Conferenc... Cloncurry to underpin Ivanhoe hopes.

August 04, 2009
Article from: Australian Associated Press.

IVANHOE Australia says its rhenium and molybdenum-rich ground holdings at Cloncurry in Queensland contain enough resources to underpin its base-metal mining goals.

Chief executive Peter Reeve presented the upbeat assessment at the Diggers and Dealers mining conference, after the company's chairman, billionaire mining magnate Robert Friedland, pulled out of the event at the last minute.

Mr Reeve said Ivanhoe Australia, which made its debut on the local bourse during the 2008 Diggers forum, had made substantial progress defining iron oxide, copper, gold and uranium mineralisation at its Cloncurry tenements.

It also discovered a huge molybdenum and rhenium deposit named Merlin that the company said in April could be worth more than $6 billion.

"In general, I feel that we've finally realised the potential of the Cloncurry tenements," Mr Reeve told delegates on day one of the three-day conference. "We've found these things but by no means think it is the last discovery we'll make. We think we can make a really substantial base metals company over the next three to five years solely out of what we've got at these tenements at Cloncurry."

Mr Reeve said it was "an indictment on our sector in Australia that this ground wasn't fully explored years ago".

"It comes back to showing that sometimes, to get the operations, (you need to) get the exploration dollars spent and get a decent resource," he said. "What we want to do is build up a great base metals company in Australia, but we don't want to do it by acquisition. We want to do it by organic growth."

Mr Reeve flagged in December that Ivanhoe would consider running the ruler over the assets of collapsed copper miner CopperCo, but these were recently acquired by the cashed-up Tony Sage-led explorer Cape Lambert Iron Ore.

Canada-based Mr Friedland is known for his pursuit of approval to develop Ivanhoe's Oyu Tolgoi copper and gold project in Mongolia.

The project, a joint venture with Rio Tinto, has been delayed for several years as Ivanhoe's British Columbia-based parent company battles to reach agreement with the Mongolian government. There were rumours at the Diggers conference that Mr Friedland had pulled out of presenting alongside Mr Reeve to attend a meeting finalising an agreement.

http://www.theaustralian.news.com.au/business/story/0,28124,25877529-36418,00.html