February 25, 2010 / 11:54 AM / 8 years ago

UPDATE 2-Ivernia restarts Australian mine; shares rise

* Sees 60,000 tonnes contained lead production in 2010

* Says to reach full production levels by Q3

* Shares up as much as 13 percent (Adds details, share movement)

Feb 25 (Reuters) - Canadian miner Ivernia Inc IVW.TO said it expects its restarted Magellan lead mine to be cash flow positive from May and reach full production levels by the end of the third quarter, sending its shares up as much as 13 percent.

The Western Australian mine currently has about seven weeks of stockpiled ore available for processing through the plant, and mining operations are scheduled to start again in March, the company said in a statement.

Shipments of concentrate stockpiles at the mine, which has been in care and maintenance for almost three years now, were nearing completion, boosting its cash balances to about $19 million as at Feb. 23.

Shares of Toronto-based Ivernia were trading up 10 percent at 43 Canadian cents in mid-day trade on the Toronto Stock Exchange. They touched a high of 44 Canadian cents earlier in the day.

The mining company said it expects to produce about 60,000 tonnes of contained lead in concentrates in 2010 and expects that to ramp up to 85,000 tonnes a year from 2011 onwards.

Located about 900 kilometres (560 miles) northeast of Perth, the Magellan mine was set to supply 100,000 tonnes of lead a year, or about 3 percent of the world’s mined lead, before it closed. Chinese smelting firms were its major customers.

Magellan said that it would need about $6 million to fund the ramp up of operations at the mine from now until the end of May. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Mike Miller and Maju Samuel)

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