Tastarga, Royboy and Unsinkable,Some thoughts,IVA has some...

Tastarga, Royboy and Unsinkable,

Some thoughts,

IVA has some understandably pissed off shareholders and others following their recent performance and (still)backing low grade assets in a declining price environment.

Companies such as IVA with cash atm can pick up producing assets (or near to) so a clear review of activities needs to occur and the $10M qtr spend ditched imo. (see BSM, PEM ect) Not sure where they are going with their copper projects with copper at ~$1.4/lb.

However, (if they get their house in order) the results from Merlin require giving IVA a second look. The moly and Re grades are the highest i know of with the highest grade moly operation running around 0.25-0.3%. Re is typically a byproduct and not usully above a few grams/t. If Re assay are confirmed then it would be a serious byproduct on the world market, possibly the highest grade producer as well?

Mineralisation starts 100m down which is not deep, 30m width is more than ample and could continue for 700m along strike and still open at depth beyond that.

Target resouce tonnages should never be released for any deposit.

The 500kpa plant study is food for thought only for what IVA are thinking, much more drilling to complete before this is really known. (The plant may actually be limited by the Re production but just a thought atm).

To the moly market, every new moly mine i can think of has been shelved (MOL, AUA, FCX RIO BHP, TC GMO ect ) with retracting oil price and steel demand sending the price plunging to US$11/lb. Marginal cost is probably lower in the US$8/lb range so further falls are possible. This will further stagnate supply in the comming years to just a few current producers.

http://www.infomine.com/Investment/HistoricalCharts/ShowCharts.asp?c=Molybdenum

So why bother with moly? The price historically has followed the oil price in every recent boom since moly alloys are used in oil and gas pipelines and offshore drilling rigs where demand increases with higher oil prices. So if you believe in peak oil then you believe also in higher moly prices, albeit now in the medium term.

Moly sulphide concentration is simple by using floation with Re also reporting to the same concentrate for sale to a moly smelter. The same process as copper or nickel sulphide for example. Ironically this investment will be cheaper now than in the last few years with lower input costs. And 500kpa plant is at the small end.

Although poorly presented (including the BS Re reporting) the lattest release of drilling results from IVA indicate imo they may have a valuable high grade deposit that could become a mine in future. A second look (a first for me) is warranted.