Prominent Hill The worlds next major copper-gold mine comes to South Australia Brian Kilgariff Operations Manager

Transcription

1 Prominent Hill The worlds next major copper-gold mine comes to South Australia Brian Kilgariff Operations Manager

2 Safety performance 2 TRIFR 12MMA - Prominent Hill 25 TRIFR/LTIFR 12 MMA Australian industry average 0 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar /2008 Prominent Hill TRIFR

3 Oxiana: successful Australia/Asia Pacific mining company 3 VISION To grow a major mining company. STRATEGY Commodities: Base and precious metals; progressive diversification. Domain: Asia, Pacific Australia; other domains. Assets: High margin, long-life, upside. Maintain strong pipeline of development projects. Exploration: Strong commitment to near mine and regional exploration. VALUES Respect and Openness Action and Performance MANAGEMENT Strong, broad management team and highly experienced Board. MARKET STATISTICS ASX-listed (OXR; S&P/ASX100) 1,545m issued shares Average turnover; 15m/day Share price; A$3.20 Market capitalisation; A$5 billion Laos Thailand China Cambodia Indonesia Martabe gold-silver project en Grove zinc, copper, precious metals operation 46% of Toro Energy Australia Sepon copper and gold operations Prominent Hill coppergold project Headquarters Operation Development Equity interest Exploration

4 Prominent Hill 4 Status: Mining type: Resource base: Plant: Production: 2009(f) Under construction Open-pit 1.9Mt copper, 3.7Moz gold 8Mtpa crush, grind, flotation 110,000t - 120,000t copper 73,000oz - 85,000oz gold Cash cost: Capital cost: 85c/lb LOM A$1.08 billion First production: Fourth quarter 2008

5 Prominent Hill Project Status (as of end of March 2008) 5 Mining & Operations 53M bcm mined to date Pre-strip complete, below budget First ore mining commenced All key management operations positions filled Engineering 95% complete Infrastructure 79% complete Village 100% Access and airstrip 100% Main water pipeline 100% Tailings facility 92% Powerline 76% Concentrate Haul Road 41% Grinding area structure Process plant 42% complete Earthworks 100% Concrete 93% Tankage 75% Structural steel erection 40% Mechanical installation 18% Ball mill being installed Crusher being installed SAG Mill delay Overall Construction 58% complete Current Site Workforce 1100 Costs on Target Aerial view of the Prominent Hill site.

6 Prominent Hill infrastructure 6 Water: New water resource delineated Arkaringa Basin Separate from Great Artesian Basin New industrial water source for SA $70million (exploration and construction Power: 132kV ETSA contract via Olympic Dam $100million

7 1000+ people on site 7

8 Village environment 8

9 Mining Activities 9

10 Plant overview 10

11 Crusher Electrical Building and conveyors 11

12 Grinding and Flotation buildings 12

13 Ball Mill 13

14 Filter Building 14

15 Railway Prominent Hill Marketing & logistics plans 15 Melville Island Logistics 48 hours from mine to port. Bathurst Island DARWIN Batchelor Manganese Browns Oxide Cobalt/Nickel Rustlers Roost Ranger / Jabiluka Uranium Union Reefs Mt Porter Frances Creek Iron Ore KATHERINE Maud Creek Northern Lime Lime Gove Bauxite/Alumina Up to 1 month s storage at port. McArthur River Lead/Zinc/Silver Merlin Diamonds Darwin, 8-10 days sailing time to MCP. Oberon Groundrush Tanami Operations Redbank Copper Bootu Creek Manganese Edna Beryl Werrego Wonarah Phosphate TENNANT Chariot CREEK Peko Project Juno Century Zinc MT ISA Marketing Total sales kdmtpa % to smelters in China/India % domestic/or smelters in Korea, Philippines and China. Bigrlyi Uranium Nolans Bore Phosphate Lucy Creek Uranium Yalyirimba Uranium Mereenie ALICE Gas and Oil SPRINGS Palm Valley Gas Claude Hills Coal Wingellina Coal Railway Hatches Creek Tungsten, and Copper Molyhil Tungsten Harts Range Mineral Sands Mud Tank Varriculite White Range Arckinraga Coal Railway Peculiar Knob Phillipson Iron Ore Coal Prominent Hill Mt Fitton Copper / Challenger Leigh Creek Olympic Dam Coal Beverley Copper / / Uranium Ambrosia Uranium Reliance Mineral Sands TARCOOLA Zinc Jacinth Goulds Dam Portia Mineral Sands Uranium - Tunkillia Honeymoon Kalkaroo Uranium Copper / gold Middleback Range Iron Ore White Dam Legend km Operating mine Kanmantoo Copper / ADELAIDE Mindarie Mineral Angas Sands Zinc Mineral project

16 Prominent Hill local employment focus 16 Employment 1100 employed at Prominent Hill contractors, Oxiana South Australian employment preference Increasing indigenous employment (26) High percentage of females (33%, industry 3%) Project unity Low turnover (8.5% v 21% industry average) Employer of choice goal. South Australia Employment a Priority Interstate & O/S 28% Coober Pedy 8% Upper Spencer Gulf 7% Adelaide & Surrounds 57% Pre-employment Training Fourth course commenced Certificate II in Metalliferous Mining 8 weeks training, 4 weeks work experience. Students from Coober Pedy, Oodnadatta, Port Augusta 24 graduates working at Prominent Hill

17 Prominent Hill Using South Australian Businesses 17 South Australian Contracts Let to Date Adelaide $395m Bulk earthworks Roads Tailing storage facility Structural/mechanical installation Power-line and substations Pipelines Village construction Waste water treatment plant Mining truck assembly Concrete Steel supply Freight Sports facilities South Australia Regional $23m e.g. Whyalla, Mt Gambier, Port Augusta Village power installation Fabricated tank supply Tank installation Buildings Tank installation Crane hire Vehicle hire Power-line installation Coober Pedy $3m Road watering Labour hire Temporary road construction Fencing

18 Further upside beyond the current pit L L 9800 L West 20m@0.8% Cu 50m@1.8% Cu 0.6g/t Au 11m@6.28g/t Au 10m@7.8g/t Au 16m@2.4g/t Au 19m@1.9g/t Au 13m@2.6g/t Au 44m@2.7g/t Au Open-pit Cover Stage 1 - Upper SLOS Underground Study Area 77m@1.70% Cu & 1.46g/t Au 47m@1.2g/t Au 60m@1.2g/t Au East 11m@3.35% Cu & 0.69g/t Au 31.4m@0.6% Cu 15m@1.86g/t Au 9m@9.4g/t Au 71m@2.28% Cu & 0.49g/t Au 9600 L 9400 L 9200 L 9000 L Untested Potential LEGEND Measured & Indicated Resources Inferred Resources 12m@5.48g/t Au 146m@1.31% Cu & 0.4g/t Au 42m@1.5% Cu & 0.71g/t Au 175m@1.09g/t Au 52m@1.25% Cu & 1.12g/t Au 26m@1.4% Cu & 0.69g/t Au 26m@1.43g/t Au 31m@1.5% Cu 31m@1.16 g/t Au 42m@2.17g/t Au 51m@1.72g/t Au 62m@1.18g/t Au 64m@1.2% Cu & 0.52g/t Au 20m@1.5 % Cu & 0.42g/t Au 28m@2.25 g/t Au 86m@1.16% Cu & 0.78g/t Au 62m@1.4% Cu & 0.8g/t Au 69m@1.30% Cu & 0.81g/t Au Stage 2 - Lower Underground Study Area Drilling programs underway in 2008 to test for open-pit & underground potential at: 135m@1.5% Cu & 1.0g/t Au 8800 L 8600 L Eastern Cu/Au Zone Western Au Zone Western Cu/Au Zone Copper/ Intercepts Intercepts 48m@1.4% Cu & 0.27g/t Au Untested Potential metres 4000 E 4200 E 4400 E 4600 E 4800 E 5000 E 5200 E 5400 E 5600 E 5800 E 6000 E 6200 E 6400 E 6600 E

19 Excellent potential for more Prominent Hills 19 4,175km2 of highly prospective tenements. Remains under explored. Detailed gravity surveys undertaken Multiple Prominent Hill style targets 25 targets, drill testing underway. Yellow Dog EL 3079 Venus Mt Woods Mount Woods Inlier 1VD Gravity EL 3056 Prospect to be drilled Scorch N 20km 0 20 kilometres Peculiar Knob North Manxman B Manxman EL 3162 Joes Dam PROMINENT HILL Gravity (1 st vertical derivative) EL 2901 Wildfire Armstrong Taurus Neptune Blaze Torch Danae Hill Pluto EL 3229 Quaoar

20 THANK YOU For the purposes of the Forward-Looking Statements Safe Harbor provisions of the US securities laws This presentation contains statements which constitute forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as will, expect, anticipate, believe and envisage. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Oxiana s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation. P: E: admin@oxiana.com.au