Ivanhoe Australia has discovered high grade Molybdenum and Rhenium mineralisation close to its current Merlin deposit in Queensland.
Christened the Little Wizard deposit, Ivanhoe expects the 15 000 tonne inferred resource to provide potential early cash flow of up to $100 million through selling the material as Direct Shipping Ore (DSO).
This cash flow represents a substantial portion of Merlin’s development capital expenditure.
The 15, 000 tonnes is graded at 13% Molybdenum, 160 grams per tonne of Rhenium, 1.7% Copper and 0.8 grams per tonne of gold.
According to reports, the Little Wizard zone lies 90 metres below the surface and is 55 metres west of the current proposed Merlin deposit.
While Little Wizard has been delineated as a separate mineralised system, Ivanhoe geologists believe that further surveys may define the potential connection between the Little Wizard Zone and its main Merlin Deposit.
In addition to Little Wizard, Ivanhoe has assays pending for two additional holes, with a report adding that the potential exists for further high grade molybdenum mineralisation. Merlin and Little Wizard are located in Northern Queensland, south of Cloncurry.
Ivanhoe operates solely in the Cloncurry region of Queensland and is currently trading at a price of $3.99 per share.