News: RELEASE OF EPA REPORT ON DRAFT RECOMMENDED CIVERNIA ANNOUNCES RELEASE OF EPA REPORT ON DRAFT RECOMMENDED
CONDITIONS AND PROVIDES BUSINESS UPDATE
TORONTO, ONTARIO – October 3, 2011 – Ivernia Inc. (“Ivernia” or the “Company”) (TSX: IVW) today
reported that the Environmental Protection Authority (“EPA”) of Western Australia released its report
(“Section 46 Report”) to the Minister for Environment of Western Australia (“Minister”) detailing its
recommendations on the operating conditions for the Magellan Mine (the “Draft Recommended
Conditions”). The Draft Recommended Conditions were also publically released by the EPA as an
appendix to the Section 46 Report. The Company received the Section 46 Report and Draft
Recommended Conditions today at the same time they were released by the EPA and is currently
reviewing and considering the impact and implications on the Magellan Mine operations. Once the
Minister has decided the final content of the operating conditions and has issued them, the Company will
make a further announcement on the final operating conditions’ impact on the timing for a decision to
restart the Magellan Mine.
As previously announced, pursuant to Section 46A of the Environmental Protection Act 1986 of Western
Australia (the “EP Act”), the interim implementation conditions relating to the Company’s operations
issued by the Minister on February 23, 2011 were issued pending a full inquiry by the EPA into the
existing operating conditions and finalization of operating conditions to be approved and issued by the
Minister. The Section 46 Report provides EPA recommendations on the Draft Recommended Conditions
for the Minister’s consideration. The Minister will now consider the Section 46 Report and decide on the
final content of the operating conditions. The Company’s wholly-owned subsidiary, Magellan Metals Pty
Ltd. (“Magellan Metals”), provided submissions to the Office of the Environmental Protection Authority
(“OEPA”) on the Draft Recommended Conditions. The Company cannot provide any guidance on the
content or timing for the finalization of the Minister’s review and issuance of the final operating conditions.
The Section 46 Report is available on the EPA website. A link to the Section 46 Report, which includes
the Draft Recommended Conditions, can be found on the Magellan Metals’ website at:
www.magellanmetals.com.au/compliance/ministerial-conditions.aspx
Business Update
As previously disclosed, the Company believes that Magellan Metals must complete its internal end-to-
end review and the Minister must issue the final operating conditions before the Company will be in a
position to provide guidance on the expected timing for a decision to restart the Magellan Mine. As per the
Company’s previous guidance, the Company expects to complete its internal end-to-end review by the
end of October 2011 but cannot provide any guidance as to the timing for the issuance by the Minister of
the final operating conditions.
The Draft Recommended Conditions released today contain certain conditions that would need to be
satisfied prior to the resumption of the transportation of lead carbonate concentrate from the Magellan
Mine. If the operating conditions are adopted as they are currently drafted, the Company expects that it
will not be able to make a decision with respect to the restart of the Magellan Mine until it is satisfied that
any requirements to commence the transportation of lead carbonate concentrate from the Magellan Mine
have been or will be met to the satisfaction of the OEPA. Upon making the decision to restart the
Magellan Mine, the Company expects that it would take greater than three months for a ramp-up of
operations to be completed.
As at September 30, 2011, the Company had approximately US$10.5 million in cash to fund the care and
maintenance activities at the Magellan Mine including the completion of the end-to-end review. The
Company expects to continue to have negative cash flows during the care and maintenance period. Until
the final operating conditions are issued, the Company does not expect to be in a position to assess when
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it will be able to commence shipments of the existing stockpile of 10,100 tonnes of lead carbonate
concentrate currently held at the mine site. Until the Company is in a position to assess when it will be able
to recommence shipments of lead carbonate concentrate from the Magellan Mine, the Company cannot
make any assurances that it will have sufficient working capital on hand to fund the care and maintenance
period and/or restarting the Magellan Mine, if and when a restart decision is made. Due to such uncertainty,
the Company now anticipates that it will require additional financing prior to the restart of the Magellan Mine
and is pursuing financing alternatives.
About Ivernia
Ivernia is an international base metal mining company and the owner of the Magellan Mine, located in
Western Australia.
Ivernia trades under the symbol “IVW” on the Toronto Stock Exchange. Additional information on Ivernia
is available on the Company's website at
www.ivernia.com and at SEDAR at
www.sedar.com.
For further information please contact:
Ivernia Inc.
Brent Omland
Vice President, Finance & Chief Financial Officer
Suite 3303, 130 Adelaide Street West
Toronto, Ontario M5H 3P5
(416) 867-9298
Email: investor@ivernia.ca
Forward-Looking Statement