Ivernia resumes operations at Australian lead mine, shares jump

Thu Mar 28, 2013 11:01am EDT
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March 28 (Reuters) - Canadian miner Ivernia Inc restarted operations at its flagship lead mine in Western Australia nearly two years after it suspended work due to concerns about lead contamination.

The company's shares jumped 13 percent to a 13-month high of 17 Canadian cents on the Toronto Stock Exchange on Thursday, making them one of the top percentage gainers on the exchange.

Ivernia halted operations and cut 195 of 235 jobs at the mine on April 7, 2011 after lead was detected in mud samples taken from shipping containers coming from the property.

There have been a number of work stoppages at the mine over the years due to environmental concerns.

Ivernia said on Thursday that there is no set date for first exports to begin, but expects to ship some of its stockpiled concentrate in April.

The company said it expected the mine to reach full production levels over the next eight months.

The mine located near Wiluna, Western Australia, is operated by Ivernia's wholly owned subsidiary Rosslyn Hill Mining, formerly known as Magellan Metals. The company also changed the mine's name to Paroo Station Mine from Magellan in November 2012.

Ivernia shares were up 10 percent at 16.5 Canadian cents by late morning. (Reporting by Sandhya Vijayan in Bangalore; Editing by Sriraj Kalluvila)