Name: Paroo Station mine.

Location: The Paroo Station mine is located in Western Australia, about 30 km west of the town of Wiluna and 750 km north-east of Perth.

Controlling Company: The Paroo Station mine is 100% owned and operated by Rosslyn Hill Mining, a wholly owned indirect subsidiary of Ivernia.

Brief History: Ivernia’s involvement with Paroo Station mine began in April 1999. From June 2003 to April 2005, Ivernia was part of a joint venture (JV) with Sentient Global Resources Fund. This JV was terminated when Ivernia acquired Sentient’s interest in the mine and Ivernia became the sole owner of Paroo Station through its 100% interest in Rosslyn Hill Mining. The operation was placed under care and maintenance in April 2011. On December 17, 2012, Ivernia entered into a management services agreement with Enirgi Group Corporation, Ivernia’s majority shareholder. Pursuant to the manage- ment services agreement, Enirgi Group is responsible for providing the necessary officers responsible for, among other things, general management and executive services for Ivernia, including strategic and business planning functions, accounting, treasury and other day-to-day matters. Operations resumed at the mine in April 2013 and has since remained in continuous operation. The mine achieved record production levels during the second half of 2013.

Brief Description: The Paroo Station mine is the world’s largest pure-play lead mine. It is an opencut lead carbonate mine and concentrating facility. Lead carbonate concentrate produced from the mine is exported to customers internationally. Production guidance for 2014 remains at between 80 000 t and 85 000 t of contained lead in concentrate.

Geology/Mineralisation: Paroo Station is situated within the East Murchison mineral field of Western Australia, on the southern margin of the Proterozoic Yerrida basin. Mineralisation is hosted within sediments of the Yelma formation. At Paroo Station, the Yelma formation comprises quartz sandstone and siltstone, overlain by a poorly lithified and silcretised solution collapse breccia of probable carbonate origin.

The Magellan, Cano and Pinzon lead deposits have been discovered on Magellan Hill. The Magellan deposit was discovered in 1993, followed by Cano in 2001 and Pinzon in 2004. Two outlying deposits, Drake and Pizarro were discovered about 20 km to the south of Magellan Hill.

The deposits are interpreted to represent ancient carbonate- hosted base metal deposits that have become enriched in secondary lead minerals through prolonged and extensive weathering oxidation of primary base metal sulphide minerals. Mineralisation occurs at relatively flat-lying zones of secondary lead enrichment, with no by-product or penalty elements, along topographic highs. The upper margins of the deposits range from surface to 50 m in depth.

Mineralisation consists of sediment-hosted zones of secondary lead carbonate (cerrusite) and sulphate (anglesite). High-grade zones are interpreted to surround relict primary mineralised structures or more permissive rock.

Reserves: Total proven and probable reserves as at December 31, 2013, were estimated at 18.6-million tonnes grading 5.5% lead.

Resources: Total measured and indicated resources as at December 31, 2013, were estimated at 39-million tonnes grading 4.4% lead. Inferred resources were estimated at 12.1-million tonnes grading 4% lead.

Products: Lead carbonate.

Mining Method: Ore at Paroo Station is extracted by drilling and blasting from a series of shallow openpits on Magellan Hill.

Major Infrastructure and Equipment: Excavators are used to dig and load ore and waste onto 85 t haulage trucks. Ore is mined simultaneously from several faces to provide a homogeneous blend for the concentrator. Ore is stockpiled and further blended on the run-of-mine (RoM) pad. Grade control is enhanced by testing every blasthole using a hand-held X-ray fluorescence analyser for lead content.

Ore is processed on site through crushing, grinding, sulphidisation, froth flotation, dewatering and bagging. From the RoM pad, ore passes through a jaw crusher and a two-stage milling process comprising a primary semiautogenous mill, followed by a secondary ball mill. After milling, material is subject to a unique sulphidisation process, which coats lead carbonate particles with a molecular sulphide layer, thereby encouraging flotation and allowing for conventional flotation.

Dewatering to achieve 8% final moisture is accomplished through dual-stage concentrate thickening tanks, followed by pressure filter- ing. Concentrate is gravity-fed from the pressure filter to the bagging area, where material is loaded into 2 t bags for transport.

Prospects: The Paroo Station mine is the world’s largest lead carbo- nate mine. At full production, the operation has the capacity to account for about 2% of the world’s total yearly mined lead.

Contact Person: VP corporate communications Jessica Helm.

Contact Details:
Ivernia,
tel +1 416 867 9298,
fax: +1 416 867 9384,
email investor@ivernia.ca, and
website http://www.ivernia.com.