Forward Looking Statements. Forward looking statements in these materials speak only at the date of issue. Subject to any

Transcription

1 South Australian Explorers Conference 2008

2 Forward Looking Statements These materials include forward looking statements. Forward looking statements inherently involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to, the Company. Actual results and developments may vary materially from those expressed in these materials. The types of uncertainties which are relevant to the Company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the Company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based.

3 Commodity Focus Iron Oxide Copper-Gold Punt Hill Initial discovery 0.4 % Cu GHDD1 Follow up hole 0.47 % Cu GHDD4 0.34% Cu - GHDD2 0.47% Cu GHDD6 Ambrosia IOCG drilling planned for February 2009 Manganese Waddikee Up to 54.1 % Mn at Jamieson Prospect in rock chips 40km + prospective mineralised horizon Stage 1 drilling completed in May 2008 Manganese mineralisation confirmed at depth Iron Ore Waddikee Hematite-goethite rock chips to 60% iron Over 80km prospective banded iron formation

4 Commodity Focus Gold Parndana Kohinoor Gold Mine Quartz vein hosted gold mineralisation identified in rock chips 150m deep diamond hole completed beneath historical Kohinoor Gold Mine Dingo Hill Extensive alteration zone coincident with multi-element soil anomalism PACE funded drilling program planned for first quarter 2009

5 Manganese and Iron Ore - Waddikee Waddikee: Recent rock chip sampling has produced assays of up to 60% iron, 54.1% manganese and 1.13% vanadium pentoxide Tenement position covers 1000 km 2 with more than 80km of interpreted strike length of prospective banded iron formation Located in the same province as the OneSteel and Centrex Metals deposits Rail and road infrastructure exists within the tenement which connects to the OneSteel steelworks at Whyalla and deep water port at Port Lincoln

6 Manganese - Waddikee Why Manganese? Manganese is a non-substitutable component of the steel making process Acts as the glue to harden iron and make it less brittle Manganese is likely to be one of the few commodities to survive the downturn relatively unscathed Supply constraints in South Africa and China Only 3 producers of manganese ore in Australia (Groote Eylandt GEMCO; Woodie Woodie - Consolidated Minerals; Bootu Creek - OM Holdings) Low capital costs for development

7 Manganese- Waddikee Case Study (Woodie Woodie)* Owned and operated by Consolidated Minerals Individual deposits range up to 5 million tonnes grading 48% manganese with total resources in the order of million tonnes. Beneficiation, mining and transport capital - $15 million (2007 equiv) for 1.1 Mtpa operation Beneficiated ore is trucked 400 km from the mine to Port Hedland for export In 2007 approximately 900,000 tonnes of ore were produced At March 2008 prices, 48% manganese ore is estimated to be worth $A600 per tonne loaded on the ship at Port Hedland * Source: Spitfire Resources Research Report, March 2008, Green Leader Equities Research

8 Manganese- Waddikee Case Study (Bootu Creek)* Owned and operated by OM Holdings Pty Ltd Total resources of 15.9 million tonnes gradingg 25% manganese Beneficiated ore is railed 800 km from the mine to Darwin for export In 2008 targeting approximately 700,000 tonnes of manganese product YTD net profit of $52.9 million from manganese operations 769% increase from same time in 2007 due to increase in manganese price * Source: OM Holdings website

9 Manganese- Waddikee Waddikee Manganese Three known occurrences of outcropping manganese mineralisation over a 40 km strike length Exploration target of 4-6 million >20% per prospect, based on a strike length of 1 km, thickness of 10m, depth of 150m and specific gravity of approximately 3. * (the potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource) Rock chip samples at the Jamieson Tank Prospect have returned grades of up to 54.1% manganese Outcrops occur over a 5km strike length Rock chip samples have been collected from two other locations at the Pollinga and Hodgins Prospects. Manganese mineralisation occurs at surface which suggest potentially low strip ratio Good infrastructure (rail, road and power) exists within the tenement Ingredients exist for low cost operation on high value commodity

10 Manganese- Waddikee Manganese rich sample (43.8% Mn) Jamieson Tank Prospect Manganese rich sample (41.2% Mn) Jamieson Tank Prospect

11 Manganese - Waddikee Jamieson Tank: Anomalous manganese and iron intersected in eight out of eight assayed target areas at the Jamieson Tank Prospect 2.5 km Manganese intercepts range from 1-22 m with grades in excess of 10% Mn and from 1-4 m with grades in excess of 20% Mn Higher than expected iron ore intercepts range from m with grades in the range of % Fe Manganese and iron mineralisation confirmed over > 2.5 km strike length open at depth and along strike

12 Manganese - Waddikee Jamieson Tank: Simple gravity beneficiation should significantly upgrade manganese and iron to commercially acceptable product Beneficiation testing underway 48 RC holes drilled for a total of 2950 m Exploration target for individual deposits of 4 6 >20% Mn* * (the potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource)

13 Manganese - Waddikee Manganese Drillhole Interval (m)mn % JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC Iron Ore Drillhole Interval (m)fe % JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC JTRC PRC JTRC JTRC

14 Manganese - Waddikee Manganese intercepts range from 1-22 m with grades in excess of 10 % Mn and from 1-4 m with grades in excess of 20 % Mn

15 Manganese - Stratigraphy Manganese mineralisation (Lower Middleback Jaspilite)

16 Manganese - Waddikee Beneficiation testing is underway, due mid November 2008 Aim is to produce a high grade +44% Mn product and a high grade +60% iron ore product Simple and inexpensive gravity separation to upgrade manganese and iron Standard magnetic separation Aim to recommence drilling to to separate iron from manganese define a resource in January 2009 Project funding discussions underway with current manganese producers

17 Manganese- Waddikee Massive manganese oxide Hodgins Prospect Massive manganese oxide Pollinga Prospect

18 Manganese- Waddikee

19 The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M P Schwarz, who is a Member of the Australian Institute of Geoscientists. Mr Schwarz is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves Mr Schwarz consents to the inclusion of the information in this report in the form and context in which it appears

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