DIGGERS AND DEALERS 2008 (4 August 2008) Bruce Hooper General Manager - Exploration
Slide 2 Corporate Overview Capital structure (as at 1 Aug 2008) “Balance Sheet” (as at 30 June 2008) ASX PEM Cash $77m Shares on issue 197m Hedge Book (in-the money) $80m Options 2.0m Debt $26m Market capitalisation A$106m Beltana zinc stockpile 81kt zinc (undiluted at $0.54 per share) 7 7,000 Perilya Zinc Price Lead Price 6 6,000 5 5,000 (A$/TONNE) ($/SHARE) Key Shareholders (as at 1 Aug 2008) 4 4,000 AXA Group 10.6% 3 3,000 UBS Nominees 8.0% 2 2,000 Barclays Global Investors 5.3% 1 1,000 Employees 2.1% 0 0 4 4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 l t l t l t l t l u n r u n r u n r u n r u c c c c p p p p J O a J O a J O a J O a J A A A A J J J J Corporate Broken Hill Flinders Mount Oxide
Slide 3 Key Assets Broken Hill Flinders Mount Oxide Corporate Broken Hill Flinders Mount Oxide
Slide 4 Our Proj ects Operating Operating Operating Operating Projects Projects Projects Projects Tampang (Cu, Au) Tampang (Cu, Au) Tampang (Cu, Au) Tampang (Cu, Au) Exploration Exploration Exploration Exploration Mineral Resources 2.5 Contained Metal Mt 2.0 1.5 Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) 1.0 0.5 0.0 Zinc Lead Copper Dee Range (Cu, Zn) Dee Range (Cu, Zn) Dee Range (Cu, Zn) Dee Range (Cu, Zn) Ore Reserves 1.0 Beltana Beltana Beltana Beltana Contained Metal Mt 0.8 (Zn) (Zn) (Zn) (Zn) 0.6 0.4 Broken Hill Broken Hill Broken Hill Broken Hill 0.2 (Zn, Pb, Ag) (Zn, Pb, Ag) (Zn, Pb, Ag) (Zn, Pb, Ag) 0.0 Zinc Lead Potosi (Zn, Pb, Ag) Potosi (Zn, Pb, Ag) Potosi (Zn, Pb, Ag) Potosi (Zn, Pb, Ag) Note : Cu as at Feb 2008 North Mine Deeps North Mine Deeps North Mine Deeps North Mine Deeps Zn, Pb as at 2006/07 (Zn, Pb, Ag) (Zn, Pb, Ag) (Zn, Pb, Ag) (Zn, Pb, Ag) Flinders (Zn) Flinders (Zn) Flinders (Zn) Flinders (Zn) Corporate Broken Hill Flinders Mount Oxide
Slide 5 Broken Hill S ustainable Production • Top 20 zinc producing mine and Top 10 lead producer worldwide. • Full Year Production of 91,295t of contained zinc and 52,412t of lead in line with market guidance. • Metal production at Broken Hill up 18.5% on the previous quarter. • Significant new mineral inventory identified in the Southern Operations and North Mine. • Leveraged substantial producer. • Development advanced during year at North Mine and Potosi exploration decline. • Permitting underway for Flying Doctor Open Pit Operation. • Optionality of production sources. Background Image – painting by Pro Hart Corporate Broken Hill Flinders Mount Oxide
Slide 6 Broken Hill Exploration S uccess • Significant Exploration success during year. • Potosi, Flying Doctor region. • New resources at Henry George and 1130 deposits. • New prospects Sam Deeds, Esmeralda. • Best intercepts at depth in Pinnacles regional with potential for larger deposits. Background Image – painting by Pro Hart Corporate Broken Hill Flinders Mount Oxide
Slide 7 Broken Hill Developing new ore sources Piesses Knob Potosi Flying Doctor North Mine North Mine Deeps City Southern Operations 5 km Concentrator Stirling Vale Southern Ops Extensions 1130 Smiths Sam Deeds Perilya Broken Hill Mining Lease Surface projection of ore bodies Henry George Existing Operations Feasiblity Study Monarch Flat Exploration targets Corporate Broken Hill Flinders Mount Oxide
Slide 8 Flinders zinc oxide proj ect • Beltana – stage 1 completed (Feb 08) • Stockpiled 316,400t @ 32% zinc (101kt contained zinc at Feb 08 ) • Cash cost US$0.65/lb zinc • Completed within year Rail line Rail line Tenements Tenements Existing infrastructure + direct high grade ore shipping + stockpiles of 81kt zinc Corporate Broken Hill Flinders Mount Oxide
Slide 9 Mount Oxide Copper and Cobalt Proj ect Mount Oxide historical Pit, looking South Corporate Broken Hill Flinders Mount Oxide
Slide 10 Mount Oxide advanced copper proj ect • Mt Isa region • Close to existing infrastructure • Resource recently upgraded • Significant new exploration results • Exploration camp installed • Infill & extensional drilling April – Dec 08 • Scoping Study completed June Qtr 2008 • Expressions of interest received to further development of the project • Permitting advancing • Feasibility Study June 2009 Corporate Broken Hill Flinders Mount Oxide
Slide 11 Mount Oxide resource open in all directions Table 1: Mount Oxide Mineral Resource Estimate at 0.2 % Cu cut off (As at 19 February 2008) Cu Co Ag Copper Cobalt Silver Classification M Tonnes % % g/t Contained t Contained t Contained oz Indicated 9.8 1.6 0.05 12 154,000 5,200 3,430,000 Inferred 5.7 0.9 0.05 4 47,000 3,100 770,000 - Stockpiles 0.3 0.7 - - 2,000 - Total 15.5 1.3 0.05 9 203,000 8,300 4,200,000 • 80% increase in contained copper • 60% in Indicated Category • Scoping study completed on metallurgy, geotechnical and economics • Significant new explorations results outside the resource from current drilling program • Potential bi-products Corporate Broken Hill Flinders Mount Oxide
Slide 12 Mount Oxide - Drill Rig Corporate Broken Hill Flinders Mount Oxide
Slide 13 chematic Mineralisation Model Core Samples Mount Oxide Flinders Broken Hill Mount Oxide - S Corporate
Slide 14 Mount Oxide - Resource model looking North in 3d 300 metres Mount Oxide Resource model looking North in 3d, demonstrating the relationship of shallow and low angle stratigraphic mineralised lenses and vertical structures at depth Corporate Broken Hill Flinders Mount Oxide
Slide 15 Mount Oxide - Whittle Optimised Open Pit Pit Shell – Feb 08 N S coping S tudy W Mt Oxide Pit E S
Slide 16 Mount Oxide - S ection 70800mN Recent Intercepts MOXD089 Part of 31m @ 6.2% Cu in replaced sedimentary unit 20 cm • Significant intercepts outside the existing resource. • MOXD89 – 23m @ 8.9%, 31m @6.2% and 19m @3.7% • New visual intercept in MOXD104 ~ 40m away. Results all pending. MOXD92 no significant mineralisation ~ 80m away. Corporate Broken Hill Flinders Mount Oxide
Slide 17 Mount Oxide - S ection 70800mN 345.1 to 349.2m in hole MOXD104 MOXD104 25m S outh of MOXD89 20 cm MOXD103 MOXD104 MOXD92 Corporate Broken Hill Flinders Mount Oxide
Slide 18 Deposit Comparisons - S imilar Deposits in size and scale Mt Gordon Mineralised Footprint Mt Oxide 600m Corporate Broken Hill Flinders Mount Oxide
Slide 19 E Mount Oxide - Underground Potential – 1.5% Cu wireframe W
Slide 20 Mount Oxide - Drilling Program up to December 2008 S N Infill drilling to permit open pit Untested extension of pit 300m wide malachite zone Target Zone 600m Corporate Broken Hill Flinders Mount Oxide
Slide 21 Mount Oxide - Untested Malachite Outcrop immediately NE of Resource 1m 1m 20 cm Corporate Broken Hill Flinders Mount Oxide
Slide 22 Mount Oxide - IOCG Targets – Magnetics and Gravity Theresa ● Theresa ● Big Oxide ● Big Oxide ● Weberra ● Weberra ● Old Mt Gordon Old Mt Gordon ● ● ● ● Mt Oxide Mt Oxide 15.5 Mt @ 1.3% Cu 15.5 Mt @ 1.3% Cu Mammoth Mammoth ● ● ● ● Esperanza Esperanza TMI Magnetics Bouger Gravity Corporate Broken Hill Flinders Mount Oxide
Slide 23 Mount Oxide – Mount Isa copper province • Excellent copper project. • 203,000 t contained copper. • Maximising value by rapid 15.5 Mt @ 1.3% Cu advancement. • Assessing expressions of interest. • Looking to exploit as optimally as possible. • Spectacular drill results. • Ongoing aggressive exploration. Corporate Broken Hill Flinders Mount Oxide
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