Ivernia profitable in fourth quarter (March 31, 2006)

Ivernia (IVW-T) closed out 2005 with its first quarter of commercial production at the Magellan lead mine in Western Australia, and made money doing it.

Magellan produced about 14,900 tonnes lead in 37,700 tonnes of concentrate in the last quarter of 2005, generating a top line of US$14.7 million for Ivernia; this was the company’s only revenue for the year. That left Ivernia with a profit of US$1 million in the quarter and a loss of US$646,000 (US1 per share) for the year.

Magellan is scheduled to produce about 30,000 tonnes lead in the first half of 2006 and about 50,000 tonnes in the second half, based on planned process optimization at the mine. Cash production costs are forecast at US30 per lb. (US$660 per tonne).

Magellan, near Wiluna about 300 km northwest of Kalgoorlie, went into commercial production in October and appears to be a residual supergene concentration of lead salts derived from an original carbonate-hosted lead deposit. There are four separate deposits; Magellan has a measured and indicated resource of 13.9 million tonnes grading 6% lead, plus 3.3 million tonnes inferred grading 5% lead. Cano, where most early mining has taken place, started with a measured and indicated resource of 3.3 million tonnes grading 5.6% lead.

Pinzon, now in development, has 4.8 million tonnes grading 5.3% lead in measured and inferred resources, plus 1.5 million tonnes inferred at an average 4.2%. The Drake deposit has an inferred resource of 2.3 million tonnes grading 4.4% lead.