For personal use only

Transcription

1 Strategic Metals World Class Projects Australian Nickel Conference, Perth September

2 Disclaimer And Competent Persons Statement Disclaimer & Forward Looking Statements This presentation has been prepared by Highlands Pacific (the Company ). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. The Company has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws Highlands makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of Highlands does not purport to be all inclusive or to contain al information which its recipients may require in order to make an informed assessment of the Company s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. Reserves & Resource and Competent Persons Statement Information contained in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on previous announcements made by Highlands Pacific Group Limited to the ASX & POMSOX. The information in this report that relates to the Kurumbukari and Koki Mineral Resources and any exploration results is based on information compiled by Lawrence Queen, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Queen is a full time employee of Highlands Pacific and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify asa Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Queen consents to the inclusion in the report of the matters based onhisinformationintheform and context in which it appears. The information in this report that relates to Ore Reserves is based on information compiled by Dr Brian White, who is an Honorary Fellow of The Australasian Institute of Mining and Metallurgy. Dr White is employed by Brian White Mining Services and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr White consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The ore reserve estimate includes low grade rocks and rock fragments, which are present at the base of the ore body. These rocks and rock fragments, which are consideredasinternal waste, along with chromite will beremoved atthe mine site in the beneficiation plant. The information in the report that relates to Frieda Horse/Ivaal/Trukai & Nena Mineral Resources presented is based on information compiled by Mr Raúl Roco, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Roco is a full time employee of an Xstrata Copper entity. Mr Roco has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the estimation of Mineral Resources to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resourcesand Ore Reserves. Mr Roco consents to the inclusion in the report of the mattersbasedonhisinformation in the form and context in which it appears. Throughout the presentation all figures are quoted in US$ unless otherwise stated 2

3 Highlands Pacific Our Base Papua New Guinea PNG Mining laws: World Standard Taxation: 30% Infrastructure: Improving Compelling Geology 1. Ramu Nickel 2. Frieda Copper/Gold 3. Star Mountains 3

4 Investment Snapshot Our credentials and assets Investment Snapshot Assets Cash US$15m, debt free Leverage Share of metal in ground Tier 1 long life and strong partners Projects Frieda (Copper/Gold) 18.18% Star Mountains (Copper/Gold) 100% Ramu (Nickel/Cobalt) 8.56% to 20.55% * Based on 100% ownership of the Nena deposit which is subject to an option by Xstrata 4 # Subject to PNG election to take up to 30% interest

5 Board of Directors Ken MacDonald Chairman Legal/Resources/Management John Gooding Managing Director & CEO Mining Engineer/Management Drew Simonsen Non executive Director Mining Engineer/Project Finance Mike Carroll Non executive Director Finance/Management Dan Wood Non executive Director Geology/Exploration/Management Fiu Williame Igara Non executive Director PNG/Government 5

6 Capital Structure And shareholders Finance Cash & Equivalents* A$15M (US$15M) Debt and Hedging nil Issued Capital Issued Shares 685 million Unlisted Options (7.8c 27c) 24 million Performance Rights 3.6 million *As at 30 th June Markets Exchanges ASX and POMSoX (ASX300 Index) Share Price A30c Capitalisation A$200 million Ave. Daily T/O ~ +1M shares 6 Month price range A22c to A38c Shareholders Baker Steel 9.2 % National Super Fund 7.1 % Independent Public Business 4.4 % Kina Funds Management 4.3 % Regal Funds Management 3.7 % Top 20 holders 45 % Mgt (Diluted) ~ 3 4 % 6

7 Our Resource Base Significant share of metal and potential Project Frieda District Copper 12Mt Gold 18Moz Ramu Nickel 1.4Mt Cobalt 140 kt Star Mountain Maiden Resource Target 2012 Highlands Share 18.18% Copper 3 Mt* Gold 4 Moz* 8.56% Nickel 125,000t Cobalt 12,250t250t 100% To exercise option Xstrata needs to repay 3 times Highlands spend to reenter JV for 72% after Highlands produces a PFS * Based on 100% ownership of the Nena deposit which is subject to an option by Xstrata # Subject to PNG election to take up to 30% interest 7

8 Frieda Copper Gold Project A world class Tier 1 asset FRIEDA PROJECT 8

9 Frieda Copper Gold Project HIT Resource Drilling and Huge Potential for Growth at Depth Hole 280CX09 968metres at 05% 0.5% Cu and 0.4g/t Au from 10 metres 9

10 Frieda Copper Gold Project Capex and Timeline PFS capital cost US$5.3bn Includes 16% contingency Includes US$803m hydro electric dam Four year construction Strip Ratio 1:1 is among world s lowest Cost very competitive US$8.68/t ore milled Pre Feasibility Definitive Feasibility Permitting Construction Commissioning Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 10

11 Star Mountains Project Olgal Not your average prospect! p OK Tedi High Altitude Tabubil Olgal STAR MOUNTAINS EXPLORATION PROJECT 11

12 Star Mountains Project Olgal is one of 12 prospects RATTATAT PAD48 TUK FUTIK OLGAL 12

13 Ramu Nickel RAMU NICKEL COBALT PROJECT 13

14 Ramu Nickel Snapshot - Long life project (+20 years) no recourse to Highlands Reserves and Resource Resource: 143 Ni and 0.1% Co Reserve: 75.7 and 0.1% Co Mine Life: +20 years at Mtpa throughput h Process and Production Production: Process: Recoveries: 31,150tpa Ni and 3,300tpa Co HPAL with 3 autoclaves 85% Ni and 85% Co 14

15 Ramu Nickel Project Progressing to commissioning Madang Offices 15

16 Mining Key Feature of Mining 1. Free digging with progressive rehabilitation undertaken throughout the mine life 2. Simultaneous mining from multiple benches to ensure grade control 16

17 Mining Fleet and De agglomeration Key Feature of Mining Fleet t Volvo haul trucks 2. Digging equipment includes backhoes, face shovels, bulldozers 3. Graders for road maintenance 4. Covered and open air ROM storage Key Feature of De agglomeration 1. Rotating screens for removal of large rocks 2. Log washer to remove fine stones 3. Stones recovered for road making 4. Water recycle facility 17

18 Kurrumbukari Beneficiation Plant removes Chromite Key Features Operational 1. All plant built and undergoing commissioning 5. Chromite removal recovery system MW diesel fired power station. 6. Large maintenance workshops 3. Assay laboratories 7. Large slurry storage capacity 4. Abundant water resource with recylcing. 8. Mess and accommodation 18

19 Pipe line Key Features of Pipeline km long (50 % buried) mm diameter 3. Runs beside road for easy access 4. No pumping during normal operation 5. Monitoring system to detect insipient leaks 19

20 Basamuk Processing Plant Key Areas of Operation Support Systems 1. HPAL 1. Power generation Wartsila (60 MW) 2. Counter Current Dewatering 2. Sulphur burning and acid making 3. Iron and Aluminium removal 3. Limestone quarry nearby 4. Ni and Co precipitation 4. Lime and milk of lime production 5. Filtration andproduct packaging 5. Auxiliaryservices including clean water, 6. Waste Disposal (DSTP) compressed air, boiler, first aide, controls etc 20

21 Quality Components used throughout 21

22 Deep Sea Tailings Placement (DSTP) System overview DSTP System Key DSTP Aspects 1. Enables tailings material to be deposited in the sea deep (>1000 m in case of Ramu) 2. Proven technology successfully used in locations where there is a deep basin close to shore. 22

23 Natural Sediment Run off along Rai Coast Key Aspects of Rai Coast Run off 1. There are many rivers that deposit natural sediments into the sea off the Rai Coast 2. The project will discharge less than 6% of the total sediment load of the basin ~ 5 Mtpa 3. Tailings stream at Ramu NiCo will be similar to the naturally occurring sediments BUT will be deposited at depths >1000m 23

24 Community Contribution New Homes for Ramu Landowners Houses for the community Enekwai Village at Kurumbakari Mine Site 24

25 In Summary Cash No Debt World Class Deposits World Class Partners Near Production Exploration Potential 25

26 Contact us Tel Level Eagle Street Bib Brisbane QLD

27 APPENDICES 27

28 Disclaimer Ramu Resource The Ramu resource is estimated at 143 million tonnes at 1.01% nickel (Ni) and 0.10% cobalt (Co). The resource report is shown in the Table below: Mineral Resources (excluding +2mm internal rocky material) Category Mt Ni% Co% Measured Indicated Inferred TOTAL Notes: No upper cut off used. Maximum grade (lithology composite) is 3.44% Ni and 0.91% Co. Lower cut off of 0.5% Ni used to define the down hole limit of the overburden. The lower boundary of the rocky saprolite is determined by either the first metre boulder intersected or a 3 metre intersection of greater than 50% of the volume of the intercept being rock. 1,139 HQ and NG diamond drill holes totalling 22,363 metres, with an average depth of 19.6 metres per hole. Most drilling on a nominal 100 metre by 100 metre grid, with select areas closed down to 25 metres by 25 metres to establish Geostatistical variability. 22,145 drill samples were assayed for Ni, Co and Mg. Selected samples and composites were analysed for Mn, Al, Si, Fe and Cr. Bulk density measurement from 1,550 drill core samples and 12 insitu tests. Face sampling and mapping from two trial mining pits. 60 line kilometres of ground penetrating radar (GPR) survey to map the depth profile of the laterite development between drill holes..in addition to the 2mm material, the Ramu laterite contains 90 Mt of oversize grading 0.44% Ni and 0.01% Co. This material is easy to remove by simple screening The information in this report that relates to Kurumbukari Mineral Resources is based on information compiled by Lawrence Queen, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Queen is a full time employee of Highlands Pacific and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify 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 Queen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 28

29 Disclaimer Ramu Reserve Ore Reserves An ore reserve was designated from part of the mineral resource, reported above, during the feasibility study and has subsequently been reviewed and confirmed by SRK Consulting. Category Mt Ni% Co% Proved Probable TOTAL The information in this report that relates to Ore Reserves is based on information compiled by Dr Brian White, who is an Honorary Fellow of The Australasian Institute of Mining and Metallurgy. Dr White is employed by Brian White Mining Services and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr White consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The ore reserve calculation includes low grade rocks and rock fragments, which are present at the base of the ore body. These rocks and rock fragments, which are considered as internal waste, along with chromite, will be removed at the mine site in the beneficiation plant. 29

30 Frieda District Koki Deposit Inferred Resources Koki Deposit Estimated Mineral Resource using a 0.2% copper cut off Koki Deposit Identified Mineral Resource (Inferred) Mt Cu% Au g/t Notes: The Koki deposit has been intersected by 30 drill holes on a nominal 150 m x 300 m grid. The resource information for Koki is based on information compiled by Lawrence Queen, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Queen is a full time employee of Highlands Pacific and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify 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 Queen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 30

31 Frieda District Nena Deposit Indicted and Inferred Resources Nena Deposit Identified Mineral Resource (0.5% Cu lower cut off) Category Mt Cu% Au g/t As% Sb ppm Indicated Inferred TOTAL Notes: Copper resource lower cut off grade 0.5% copper, Mineral Resources stated herein are based on the Nena 2008 Conceptual Stage Resource Model These figures are constrained by topography; no economic pit has been applied to constrain the estimate. Numbers have been rounded for tabulation. The information in the report that relates to Mineral Resources presented in Tables 3 is based on information compiled by Mr Raul Roco, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Roco is a full time employee of Xstrata Copper entity. Mr Roco has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the estimation of Mineral Resources to quality 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 Roco consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 31

32 Frieda District Horse Ivaal Trukia Measure, Indicted and Inferred Resources Horse Ivaal Trukai deposit estimated Mineral Resource using a 0.2% copper cut off Category Mt Cu% Au g/t Ag g/t Measured Indicated Inferred Total Notes: Mineral Resources stated are based on HIT 2010, feasibility Study Mineral Resource Model. These figures are constrained by topography and an economic pit calculated with Measured, Indicated and Inferred resources. Numbers may not be exact as they are rounded for tabulation. The information in the report that relates to Mineral Resources presented in Tables 1 is based on information compiled by Mr Raúl Roco, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Roco is a full time employee of an Xstrata Copper entity. Mr Roco has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the estimation of Mineral Resources to qualify 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 Roco consents to the inclusion in the report of the matters based on his information in the form and context in which it appears 32