The Merlin project is situated 130 km south of Cloncurry in North West Queensland, Australia. It is located within the Pre-Cambrian Mt Isa Inlier and is grouped within the Eastern Fold Belt. The host rocks are metasedimentary rocks of the Proterozoic Kuridala and Staveley Formations adjacent to the Mount Dore Granite.Merlin zone represents part of the Mount Dore polymetallic deposit containing copper, zinc, silver, gold, lead, cobalt and most recently has been found to host molybdenum mineralisation. This is intimately associated with economic grades of rhenium, a naturally occurring metal that is an important component of high temperature aircraft engines. The host rock sequence is a 200 m thick zone of metasediments sandwiched between competent granite in the hanging wall and brittle quartzite in the foot wall. A distinct shear marks the contact between the granite and metasediments. The host rocks are comprised of three main rock types: black shale, phyllite and altered banded calc-silicate.Mineralisation dips to the east at approximately 45 in a package of fine grained pelites and banded calc-silicates. The top 150 m of the sequence is typified by black shale and phyllite. The lower 50 m is typified by pink banded calc-silicate. The main molybdenite zone is located at and parallel to the pelite-calc-silicate contact. Down dip, the zone splits into two or three veins hosted by the calc-silicate rock suite and haloed by thin, steep dipping, stylolitic molybdenite veinlets.The deposit was discovered in 2008 by routine infill reverse circulation sampling conducted for the Mount Dore copper deposit. One hole penetrated below the main target Cu horizon and intersected visible molybdenite. During 2009 and 2010 a 50_x000D_
50 m diamond drill pattern delineated a total mineral resource of 6.7 Mt @ 1.3 per cent Mo, 23g/t Re, 0.3 per cent Cu (mostly Indicated Mineral Resource with minor Inferred Mineral Resource). The resource has been estimated using ordinary kriging within grade domains. Access to the deposit has commenced via a decline and production through the nearby Osborne flotation concentrator (70 km south) is expected in 2012. All facilities and resources are fully owned and operated by Ivanhoe Australia Limited, a public listed company on the Australian and Toronto stock exchanges._x000D_
FORMAL CITATION:Phillips, G, Crimeen, D and Horton, J, 2011. The Merlin molybdenum rhenium deposit, Mt Isa Inlier - two years from discovery to development, in Proceedings Eighth International Mining Geology Conference 2011, pp 169-180 (The Australasian Institute of Mining and Metallurgy: Melbourne).