As far as I know there is only one pure lead company -- IVW.TO. I've been looking very carefully at Ivernia as they seem to have come through their recent troubles in pretty good shape.
Ivernia Inc. Provides an Operations Progress Update
Wednesday September 20, 11:18 am ET
ca.us.biz.yahoo.com
TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2006) -
All Dollar Amounts are in U.S. Dollars Unless Otherwise Noted
Ivernia Inc. ("Ivernia" or the "Company") (TSX:IVW - News) is pleased to provide the following update on its operations and optimization projects at its Magellan lead mine in Western Australia.
SUMMARY
- Completed the majority of the commissioning and started regular operations of the secondary ball mill which is delivering on design expectations; mill throughput totaled 112,000 tonnes for the 30-day post-commissioning operating period ended September 17, 2006 (equivalent to an annual throughput rate of 1.36 million tonnes). This performance compares to an average 30-day throughput rate of 73,000 tonnes for the 7-month period to July 31, 2006 prior to commissioning of the secondary ball mill
- Anticipated third quarter production is expected to slightly surpass the previously announced guidance of 15,000 tonnes of lead metal in concentrate. Actual production for the quarter will be released on October 10, 2006
- Shipped a total of approximately 9,500 tonnes of lead metal in concentrate since June 30, 2006; an additional confirmed sale of approximately 4,400 tonnes to be completed before September 30, 2006
- Advanced the gas pipeline project towards an expected commissioning in the first quarter of 2007
- Completed preliminary design work for installation of the Metso pressure filter; project on schedule for installation in the second quarter of 2007
- Paving of road, undertaken by Western Australian government, improving access to mine
- Drawdowns in LME inventories have resulted in an increase in lead prices of approximately 46% since June 21, 2006
Plant Operations - commissioning of secondary ball mill
Installation was completed in early August and the commissioning process immediately followed. Now in regular operation since mid-August, throughput to the mill is being managed to maximize current filter capacity until the new Metso pressure filter is installed and commissioned in the second quarter of 2007. Mill throughput totaled 112,000 tonnes (177 tonnes per operating hour) for the 30-day post commissioning operating period ended September 17, 2006. This is equivalent to an annual throughput rate of 1.36 million tonnes. The 30-day performance compares to an average 30-day throughput rate of 73,000 tonnes (120 tonnes per operating hour) over the 7-month period to July 31, 2006 prior to the start of commissioning of the secondary ball mill.
The ball mill is delivering on expectations within the current design specifications. Further optimization over the next few months is expected to enhance plant performance to achieve a steady-state target throughput rate of about 116,000 tonnes per month. The new mill capacity is expected to complement the expanded filtering capacity, which will be provided by the new Metso pressure filter. The capital investment for the secondary ball mill was approximately $5 million.
A 7-day shutdown is scheduled for early October for plant maintenance. The most important work will be a major overhaul of the jaw crusher, which will be undertaken in Perth. The work will include the replacement of bearings, machining of the mainshaft and line boring of bearing housings. While the jaw crusher is off-line, a mobile crusher will be utilized. During the shutdown period, maintenance will also be performed on the secondary concentrate thickener, one bank of the flotation cells, belt filters and other areas of the plant. These improvement works have been identified over the past couple of months and are in accordance with our overall optimization program to seek higher operating efficiencies and plant availability.
Shipments and sales
Two shipments of lead concentrates have been made since June 30, 2006 for a total of approximately 9,500 tonnes of lead metal in concentrate. An additional sale of approximately 4,400 tonnes of lead metal in concentrate has been confirmed and will be completed before the end of the third quarter.
Gas pipeline project
Pre-construction preparations for the installation of the 35-kilometre gas pipeline continue. Construction crews are expected to be mobilized before the end of September 2006 to begin the installation process, which is scheduled to be completed in the first quarter of 2007.
The pipeline will reduce our exposure to the volatile oil markets and minimize the potential for energy-supply disruptions. The estimated capital investment for this project is approximately $7 million.
Metso pressure filter project
Preliminary design work for the installation of the new Metso pressure filter has been completed. The filter is on schedule for delivery in the first quarter of 2007 and installation in the following quarter.
The new filter will increase filtering capacity to approximately 125,000 tonnes of lead metal in concentrate, which is comfortably beyond current planned production levels. It should also enable the operation to consistently achieve transportable moisture levels while maintaining the current non-dusting nature of the concentrate, eliminate the use of the temporary solar drying pad and reduce operating costs and working capital requirements. The estimated capital investment for this project is approximately $5 million.
Road access
The paving of a critical 13-kilometre section of the 33-kilometre road between the turnoff to the Magellan mine and the town of Wiluna has been substantially completed. This development, undertaken by the Western Australian government, significantly improves access to the mine, especially in the event of inclement weather conditions. It is understood that the government intends to pave the remaining 20-kilometre section of this road in 2007.
LME lead inventories and prices
Lead stocks in LME warehouses have dropped by over 40% since its current peak on June 21, 2006 to approximately 67,000 tonnes at the close of business on Tuesday September 19. This drawdown is being attributed to a buoyant lead-acid battery manufacturing segment, which accounts for approximately 72% of lead consumption. The increased activity is being driven mainly by higher new car sales in the developing economies and greater worldwide demand for replacement batteries.
The LME cash settlement price for lead has reflected the drawdown in inventories and has risen approximately 46% to $0.61 per pound over the same period.
About Ivernia
Ivernia is an international base metals, exploration, development and operating company. The Company is the sole owner and operator of the Magellan lead mine in Western Australia. When in full production, Magellan is expected to be one of the top five lead-producing mines in the world producing close to 3% of total world lead mine production. The inferred resources and considerable regional exploration opportunities offer significant potential to extend the mine's current long reserve life.
Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's new web site at www.ivernia.com and at SEDAR at www.sedar.com.
Forward-Looking Statements
This document may contain forward-looking statements within the meaning of Canadian securities law. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Ivernia based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Ivernia with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. The reader should not place undue reliance on them. Some factors that could cause actual results to differ materially from those set forth in the forward-looking statements include: resources and reserves, metal price volatility, exchange rates, single mineral property, metallurgy, environmental factors, mining risks, health and safety, and government regulations, dependence on key personnel, constraints on cash flow and nature of mineral exploration and development. Other risks and factors that could cause actual results to differ are described in Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2005 under the heading "Risks and Uncertainties". Our MD&A and additional information on Ivernia are available on the Company's web site at www.ivernia.com and on Ivernia's SEDAR profile at www.sedar.com. All of the forward-looking statements made herein are qualified by the foregoing cautionary statements. Ivernia undertakes no obligation to publicly update or revise any forward-looking statements or information whether as a result of new information, future events or otherwise.
Contact:
Sharon Loung
Ivernia Inc.
Director, Investor Relations
(416) 365-2783
(416) 867-9384 (FAX)
investor@ivernia.ca
www.ivernia.com
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Source: Ivernia Inc.
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