Anthony Molybdenum Project Zamia Metals Limited March 2011 ASX:ZGM - - PowerPoint PPT Presentation

ASX:ZGM

Anthony Molybdenum Project

Zamia Metals Limited

March 2011

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Forward-Looking Statements

This document contains certain "forward–looking statements", including, but not limited to, statements concerning current and future drilling programmes, estimation of mineral resources, the continuing development plan, the type of mineralisation present and expected results. Information inferred from the interpretation of drilling results may be deemed to be a forward looking statement, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Statements and estimates concerning mineral resources may also be deemed to be forward looking statements in that they involve estimates, based on certain assumptions, regarding the mineralisation that would be encountered if and when a mineral deposit is actually developed and mined. Forward looking statements are not historical facts, and are subject to a number of risks and uncertainties beyond management’s control. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed

• r implied by the forward–looking statements include, among other things, but without limitation, those set

forth in the Annual Report and the website (www.zamia.com.au) of Zamia Metals Limited (‘Zamia’). For more information about the Company’s properties and projects, please refer to the Annual Report. The technical information contained in this document was compiled by Dr Ken Maiden, Executive Chairman of Zamia Metals Limited. Dr Maiden is a Member of the Australian Institute of Geoscientists and a Fellow of the Australasian Institute of Mining and Metallurgy. He has sufficient experience to qualify as a Competent Person as defined in the September 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Maiden consents to the inclusion of the matters in the form and context in which they appear.

Disclaimer

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• Ken Maiden

Executive Chairman Geologist with 38 years professional experience

• Chen Qiang

Non Executive Director International commodities trader and investor, Mining Engineer

• Andrew Skinner

Non Executive Director Chartered accountant

• Alan Humphris

Non Executive Director Investment Banker

• John Stone

Company Secretary

Directors

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Management Team

Dr Ken Maiden - Executive Chairman

35 years in geology/exploration with major resource companies (CSR and MIM) and as a mineral exploration consultant in Australia, southern and central Africa, and Southeast Asia.

John Stone – Company Secretary

30 years in Australian and international corporate markets; Director and Company Secretary for a diverse range of private and public listed companies.

Barry Neal – Chief Financial Officer

15 years with Australian Trade Commission in Europe and Asia; 20 years accounting and company secretarial roles in range of industries including exploration.

Dr Colin Seaborn – General Manager Project Development

20 years with CRA (Rio) in metallurgy, business analysis and general management then 15 years industry consulting.

Sam Garrett - Manager Exploration

20 years in gold and base metal exploration programmes, including porphyry copper, in India, Asia, South America, New Zealand and Australia including copper/gold projects in Queensland.

Penny Daven – Senior Geologist/Tenement Management

10 years experience as a base metal and coal exploration geologist; 10 years with the NSW Department of Primary Industries, Geological Survey Division.

Graeme Deegan – Manager Business Services

10 years in technical roles in overseas oil & gas industry; 24 years in commercial and business management roles in the Australian and international mining industry.

Geologists and Field Staff are also based at Clermont, Central Queensland

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Holder Name % Brownstone International Pty Ltd 12.2 Hangzhou Kings Industry Co Limited 10.5 West Minerals Pty Ltd 9.3 International Base Metals Limited 7.3 Dr Deng Jiniu 4.6 Great Sea Wave Investment Pty Ltd 3.5 Mr Geng Haitao 3.4 Mrs Li Zhou 3.1 Mr Salvatore Di Vincenzo 2.2 Qinghai Genlid Mining Investment & Management Co Limited 2.1 Citi Resources Co Limited 2.1 Shares 187,245,109 Options 20,800,000 # Shareholders 950

Capital Structure - as at 25 January 2011

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Zamia Capital Raising History

Share issue date Share value Share price Share based payment to IBML 28/01/2009 $ 92,535 5.0c Share based payment to IBML 11/06/2009 $ 105,958 2.5c Share placement 30/09/2009 $ 341,250 3.0c Share purchase plan 23/11/2009 $ 780,000 3.0c Share based payment to John Burnett 18/01/2010 $ 6,700 5.5c Share placement 4/02/2010 $ 1,300,000 5.5c Share placement 25/06/2010 $ 1,400,000 7.0c Share placement 7/09/2010 $ 1,000,000 7.0c Share placement 30/11/2010 $ 1,600,000 10.0c

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Zamia Share Price

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Molybdenum - Chemical Symbol Mo

Attributes:

• Heavy metal
• Very high melting point

+ 2,600°C

• Steel, alloyed with Mo,

is stronger & more resistant to heat & corrosion Major uses:

• Construction steel
• Stainless steel

Emerging uses:

• Thin film solar panels
• Clean, efficient production
• f hydrogen

Source: International Molybdenum Association Source: Mineral Information Institute

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Molybdenum Price

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Molybdenum Price

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Supply:

• 25 years of low Mo prices until

2005: – Little exploration – Last new large Mo mine – 1982 – New mines delayed by financial crisis

• Existing mines require

expansion

• By-product producers can’t

easily expand production

• Supply deficit requires new

producers Demand:

• Consumption grew by 6%p.a.

between 2002 – 2010

• Demand increase 4 – 6%p.a.

next 20 years

• Chinese continuing to

stockpile

• Supply deficit anticipated by

2014

Source: Roskill Market Outlook to 2014

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Anthony Mo Project Location

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Advantages of Queensland

• Good infrastructure
• Plenty of power
• Plenty of water
• Good tenement management system
• Queensland welcomes mining

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Belyando gold mine Anthony Mo deposit

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Project Area

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400 million years ago … Central Queensland was an active volcanic area -

• igneous intrusions
• volcanic eruptions
• hydrothermal activity

Geological Setting

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Geological Setting

Hydrothermal activity  rock alteration  deposits Mo Au Cu

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Geological Setting

Eroded & oxidised (weathered) to 60 – 80m depth

Molybdenite

• xidised to Mo-Fe
• xide

Base of weathering Primary molybdenite

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Discovery: Mo-in-Soil

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Vein stockwork in altered porphyry Mo-quartz infill in micro-breccia

Style of Mineralisation

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Anthony Drill Plan

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West-East Section

The section shows the preliminary pit design at different Mo prices

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North-South Section

The section shows the preliminary pit design at different Mo prices

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Australian Molybdenum Projects

Spinifex Ridge

Moly Mines Limited Location: 140km E of Port Hedland Resource: 652Mt measured and indicated resources grading 0.05%Mo, 0.08%Cu and 1.3g/tAg Status:

• Proposed to have open cut starting

with 10mtpa production increasing to 20mtpa in year 7.

• Capex for 10mtpa case is $674m

($76m already spent).

• Financing dependent on better Mo

prices above US17.30/lb and/or better exchange rate (ASX 18 Jan 2011).

• Decision by end of 2011

Merlin

Ivanhoe Australia Limited Location: Sth of Cloncurry Resource: 6.7Mt resource with 1.34% Mo, Status:

• Average life-of-mine costs of

US$115/tonne due to underground steeply dipping narrow ore body; driving decline to underground resource (Feb 2011);

• PFS planned to be completed Q1,

2011.

• Still looking at roasting options to

maximise Rhenium value as Rhenium provides 40% value in ore

Whitewash

Aussie Q Resources Limited Location: 130Km W of Bundaberg Resource: 71Mt inferred resource with 300ppm Mo, 0.1%Cu and 1.2g/t Ag Status:

• Raised capital for scoping study to

commence in Q1, 2011;

• Resource update planned for April 2011;
• No clear geological model.
• Low Mo and Cu grade so one will

contaminate the other.

• At 300 ppm (0.66 lb/tonne) Mo US$17.30/lb

price value of ore is US$11.40/tonne at 100% recovery; at 0.1% (2.2lb) Cu and US$4.30/lb value of Cu at 100% recovery is US$9.50/tonne of ore.

• However, Mo recoveries are likely to be

lower than Zamia because of cross contamination of Cu and Mo in concentrates

Anthony

Zamia Metals Limited Location: 240KM SW of Mackay Resource: 173Mt inferred resource with 430ppm Mo Status:

• Scoping Study underway
• Further resource upgrades within

a few months

• Excellent location
• Pre-concentration gives 1000ppm

Mo process throughput

• Based on US$17.30/lb price and

100% recovery, the value of the

• re is US$38.12/tonne

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Anthony Resource

Inferred Resource estimate by Dr P Hellman of consultants Hellman & Schofield Pty Ltd, February 2011, reported in accordance with JORC Code & Guidelines. (Note: 400 ppm Mo = 0.04% Mo)

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Cut off grade Sulphide Resource Transition and Oxide Resource Total Resource (ppm Mo) Tonnes (million) Mo Grade (ppm) Cont’d Mo (million lb) Tonnes (million) Mo (ppm) Cont’d Mo (million lb) Tonnes (million) Grade ppm Mo Cont’d Mo (million lb)

600 20 810 36 6 690 9 26 780 45 400 82 570 103 25 530 29 108 560 132 200 173 430 163 60 400 54 233 420 216

Overall Inferred Resource Estimate within conceptual pit shell February 2011

Note: Figures have been rounded

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Resource Upgrade

Cut off Grade (ppm Mo) February 2011 Resource Estimate September 2010 Resource Estimate Increase in contained Mo from September 2010 to February 2011 Tonnes (million) Mo Grade (ppm) Contained Mo (million lb) Tonnes (million) Mo (ppm) Contained Mo (million lb) 600 20 810 35 15 730 23 55% 400 74 580 94 57 550 69 35% 200 144 440 140 132 400 118 19%

Note: Figures have been rounded

Substantial increase in Inferred Sulphide Resource since September 2010

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• February 2011 Resource based only on material within conceptual pit shell
• September 2010 Resource based on all material without regard to pit

Inferred Resource estimate by Dr P Hellman of consultants Hellman & Schofield Pty Ltd, February 2011, reported in accordance with JORC Code & Guidelines. (Note: 400 ppm Mo = 0.04% Mo)

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Average for eight drill core samples Head grade 408 ppm Mo Grade of pre-concentrated product 973 ppm Mo Mo grade of balance 270 ppm Mo Weight % of beneficiated product 20.3%

• During coarse crushing, rock breaks along veins
• Molybdenite is preferentially concentrated in fine fraction
• Then upgraded through sizing & gravity processes

Upgrading of Sulphide Mo Ore

Based on existing resource -  High grade feedstock of 24 Mt at 1,000 ppm Mo  High grade can be processed in early years of operation  Higher project returns  Lower grade stockpile to be processed later in life of project

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Flotation Tests

External locked cycle tests -

• + 50% Mo grade
• 90% recovery (to reach +90% with further testing)
• Low levels of deleterious elements (Cu As Pb)
• Rhenium (Re) by-product

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Simple Flowsheet

• Crush to -10 mm
• Pre-concentrate
• Grind 80% -75 microns
• Flotation  Mo concentrate (+ 50% Mo)

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• The Anthony deposit is weathered (oxidised) to 60 – 80m

depth

• Molybdenite breaks down; Mo re-precipitated as Mo-Fe
• xide minerals
• Oxide/transition resource - 60 million tonnes at 400 ppm Mo
• Metallurgical tests in progress - looking positive

Outcrop – veins in weathered schist

Oxide Resource

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• Geological interpretation
• Resource extension drilling
• Drilling of near-mine targets
• Metallurgical tests
• primary (sulphide) material
• secondary (oxide) material
• Preliminary mine planning
• Groundwater study
• Environmental study
• Infrastructure study
• Financial analysis
• Peer review planned for April - May

Scoping Study - in Progress

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Planned Development Schedule

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Targets near Anthony

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Central Queensland has excellent potential for discovery of gold (Au), copper (Cu) & molybdenum (Mo) Zamia has exploration permits & applications over more than 1,300 km2 Zamia has identified numerous targets, some with known Au, Cu & Mo

An Emerging Mineral Province

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Company Strategy

• Determine extent of the Anthony deposit
• Upgrade resource estimation
• Advance the Anthony project towards feasibility
• Test other targets within the Clermont district

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Likely news flow

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• Anthony assays to be released monthly to May 2011
• Resource upgrade February 2011
• Further upgrades anticipated in April 2011
• Scout drill holes to test other targets around

Anthony – results progressively released over next 2 months

• Scoping Study outcomes released end-June 2011
• Commence feasibility study 4th Quarter 2011
• Regional targets tested May – Sept 2011

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Why Invest in Zamia?

• Large porphyry-style resource – JORC inferred 144Mt at 442 ppm Mo

(63,600t contained Mo) in sulphide zone

• Contains high grade sulphide core (20Mt at 814 ppm Mo)
• Potential to upgrade ore by cheap pre-concentration process
• Excellent sulphide concentrate grade (+50% Mo) and recovery (+90% Mo)
• Near surface oxide molybdenum recovery potential
• Significant exploration upside - drilling only covers less than 20% of the

prospective mineralised area

• Close to major roads and rail, connecting to major export terminals
• Positive outlook for Mo price, circa US$38,000/t, trades on LME
• Regular news flow, with resource extension drilling and upgrades

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Zamia Metals Limited

Address: Level 8 / 275 George Street Sydney NSW 2000 Australia Telephone: +61 (2) 8223 3744 Email: info@zamia.com.au Website: www.zamia.com.au

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