Pure Play Metals Conference GS-JBWere 30 th November 2006 Project - - PowerPoint PPT Presentation

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Pure Play Metals Conference GS-JBWere 30 th November 2006 Project - - PowerPoint PPT Presentation

P A N A U S T R A L I A N R E S O U R C E S L I M I T E D Pure Play Metals Conference GS-JBWere 30 th November 2006 Project Location Map S/E Asia Phu Bia Contr ac t Ar ea TRUONGSON CHIANG MAI TRUONGSON C H I A N G M A I BELT


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SLIDE 1

P A N A U S T R A L I A N

R E S O U R C E S L I M I T E D

Pure Play Metals Conference

GS-JBWere 30th November 2006

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SLIDE 2

Project Location Map S/E Asia

Phu Bia Contr ac t Ar ea Puthep Puthep Pr

  • jec t

Pr

  • jec t

C H I A N G M A I B E L T TRUONGSON BELT L O E I

  • P

H E T C H A B U N / L O U A N G P H A B A N G B E L T

Mae Sot Chatree L E GE ND

Ac id igneous r

  • c ks

Palaeozoic -Mesozoic volc ano sedimentar y belt - volc anic ar c s

CHIANG MAI BELT TRUONGSON BELT

LOEI-PHETCHABUN/ LOUANGPHABANG BELT

Sepon Sepon

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SLIDE 3

Development Strategy

Phu Kham Phu Bia Gold Mine: Phase I

Strategic greenfield “starter” project Op’s team, systems, infrastructure established

Phu Kham Phu Kham Copper-Gold Project: Phase II

Brownfield development Leverage off gold mine – synergy benefits Fully financed June 2006 Owner operate mining late 2006 Production from mid-2008

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SLIDE 4

Phu Kham Copper-Gold Project

Mine Life +12 years Throughput Rate 12M tpa Annual Concentrate 207,000dmt @ 25% Cu, 7g/t Au, 65g/t Ag Annual Production 52,000t Cu, 47,000oz Au, 400,000oz Ag Development Capital US$232m (Inc US$19m contingency) Senior Debt / Equity ~51 / 49 Mine Site Cash Cost* US¢ 40/lb Total Cash Op Cost* US¢ 74/lb

* After precious metal credits: US$450/oz gold and US$8.00/oz silver.

Project Fundamentals

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SLIDE 5

EPCM Contract

  • Ausenco conducted the Feasibility Study and have been

awarded the EPCM contract.

  • Conventional crushing and grinding followed by flotation to

produce a Cu/Au concentrate for sale to smelters. Ausenco have experience in the region with:

  • Chatree Gold Mine (Thailand)
  • Sepon Gold and Copper Mines (Laos)
  • Jinfeng Gold Mine (China)
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SLIDE 6

Phu Kham Process Plant

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SLIDE 7

Phu Kham Process Plant

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SLIDE 8

Phu Kham Infrastructure

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SLIDE 9

Phu Kham Development: November 2006…

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SLIDE 10

Phu Kham Development: November 2006…

... on schedule, within budget

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SLIDE 11

Phu Kham Development: November 2006…

... on schedule, within budget

Transporting Haul Trucks to site

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SLIDE 12

Phu Kham Development: November 2006…

... on schedule, within budget

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SLIDE 13

Phu Kham Development

... on schedule, within budget

SAG Mill Castings October 2006

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SLIDE 14

Phu Kham Project Layout

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SLIDE 15

Phu Kham Development: November 2006…

Tailings Storage Facility Plant Site ROM Pad and Crusher Phu Kham South Pit Access Road Phu Kham North Pit Stage 1 Campsite Overland Conveyor

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SLIDE 16

Phu Kham Development: November 2006…

... on schedule, within budget

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SLIDE 17

Community Development

New School and Market Place in the local village

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SLIDE 18

Phu Kham Funding Secured

US$M New equity 140 Sempra Metals transactions 15 Project Bank Debt Facility 140 Total sources of funds 295 Debt / equity ratio 51 / 49

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SLIDE 19

Total Funding Envelope

US$M Estimated project capital costs 232.4 Additional contingency (BDA rpt) 8.7 Pre-commissioning costs 11.0 Financing costs inc. cap interest 20.4 Refinancing existing facilities 10.0 Working capital 12.5 Total uses of funds 295.0

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SLIDE 20

Capital Expenditure Nov 2006

Phu Kham CuA U Project Com m itm ent Curves - Total Project

  • 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000

J a n

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F e b

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M a r

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A p r

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M a y

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J u n

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J u l

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A u g

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S e p

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O c t

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N

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D e c

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J a n

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F e b

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M a r

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A p r

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M a y

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J u n

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J u l

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A u g

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S e p

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O c t

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D e c

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F e b

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M a r

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M a y

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A u g

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S e p

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US$ Commitments (Monthly )

  • 50,000,0

100,000 150,000 200,000 250,000 Planned C

  • mmitted

Forecast Planned Committed Forecast

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SLIDE 21

Change Management November 2006

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SLIDE 22

Phu Kham Copper-Gold Ore Reserve

1.2 810 0.25 0.56 144 Total 0.6 390 0.23 0.51 77 Probable 0.6 420 0.28 0.63 67 Proved Gold Metal (M oz) Copper Metal (000 t) Au Grade (g/t) Cu Grade (%) Tonnes (Mt) Category

  • 85% of Measured & Indicated Resources convert to Ore Reserve
  • 9M t of Inferred Resources fall within final pit shell
  • Strip ratio exceptionally low at 0.57:1

Price assumptions: Copper US$1.35/lb, Gold US$450/oz, Silver US$8.00/oz

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SLIDE 23

Phu Kham Deposit Schematic Section

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SLIDE 24

Phu Kham Plan View

  • In-fill drilling north mine area

to start early 2007

  • 45M tonnes of measured &

indicated resource immediately below pit

  • 37M tonnes inferred resource

beneath pit

  • 9M tonnes inferred resource

in pit

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SLIDE 25

Cross Sections

+1% copper in floor of final pit Limited drilling below current pit

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SLIDE 26

Cash Operating Costs

Copper Copper mi mine cost ne cost cur curve, e, 2009 2009

  • 50

50 100 150 200 2000 4000 6000 8000 10000 12000 Cumulative production (000t) Business operating cost (c/lb Cu)

1st Quartile 2nd Quartile 8th Decile 9th Decile Phu Kham

Assumptions: Copper price: US$1.00/lb Gold price:US430/oz Silver price:US$6.50/oz Molybdenum oxide price:US$4.56/lb TC:US$55/dmt RC:US5.5/lb Production:52,312t contained Cu

Business operating cost: US$0.659/lb

Scenario 2

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SLIDE 27

Competitive on Capital Intensity

Mine & Mill Industry Average ~US$5,500/t Cu Equiv in 2003 Dollars Phu Kham ~US$3,900/t in 2006 Dollars ~US$3,700/t in 2003 Dollars CPI Adjusted ~US$2,700/t in 2003 Dollars Mine Cost Inflation Adjusted

1000 2000 3000 4000 5000 6000 7000 8000 1985 1990 1995 2000 2005 2010 Capital Intensity US$/t Cu Equiv

2006 Dollars 2003 Dollars cost inflation adjusted 2003 Dollars CPI adjusted

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SLIDE 28

Phu Kham Copper-Gold Economics

<3 yrs US$108M US$550/oz US$2.25/lb3 <4 yrs US$75M US$500/oz US$1.75/lb2 <5 yrs US$50M US$450/oz US$1.35/lb1 Capital Payback Annual Cash Flow Au Price Cu Price

Annual Cash Flow Sensitivity adopting 12Mtpa inputs

Silver price assumption US$8.00/oz all scenarios

1Assumes a diesel price of 45¢/l to correlate with lower commodity price scenario 2Assumes a diesel price of 60¢/l to correlate with middle commodity price scenario 3Assumes a diesel price of 70¢/l to correlate with current commodity price scenario

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SLIDE 29

Concentrate Transport

By road:

  • Vietnam Ports

525km to 590km

  • Rayong 970km
  • Kunming 1415km
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SLIDE 30

BHP Billiton & Sempra

BHP Billiton – manager of all concentrate sales Exposure to global market presence and expertise Optionality on benchmark or spot sales Sempra – guaranteed offtake for 50% of production US$5M placement at $0.55 per share – 20% premium US$10M debt facility on very competitive terms

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SLIDE 31

This presentation has been prepared by the management of Pan Australian Resources Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification

  • f those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and

limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the

  • rigin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to

the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out

  • f or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.

Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability

  • f future project evaluations, such expectation or belief is expressed in good faith and believed to have a reasonable basis.

However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For a more detailed discussion of risks and

  • ther factors, refer to the Directors' Report in the Company's 2005 Annual Report which has been lodged with the Australian Stock

Exchange, as well as the Company's other Australian Stock Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast.

Disclaimer

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SLIDE 32

Simon Milroy Manager Technical Services

Website: www.panaustralian.com.au Email: info@panaustralian.com.au

P A N A U S T R A L I A N

R E S O U R C E S LIMITED