Investor Series : Nickel Day Presentation

Transcription

1 Investor Series : Nickel Day Presentation February 2008 Stonehenge Metals Limited, Level 24, St Martins Tower, 44 St Georges Terrace, Perth WA 6000,

2 Summary Corporate Overview Mandiodo Nickel Project Australian Exploration Investment Summary

3 Corporate Overview Listed on ASX December 2006 Shares on Issue Listed Options (entitlement issue) Unlisted Options Fully diluted shares on Issue Share Price Market Capitalisation Market Cap. Fully Diluted Cash at Bank (Feb 08) Top 20 Shareholders Code: SHE 56,400,000 24,325,000 6,125,000 86,850, cents $16.92m $26.05m $3.1m 35.78%

4 Experienced Board Paul Rengel Non-Executive Chairman FCA, BCom. Todd Hibberd Managing Director BSc. (Hons), MSc. Dip. Bus. MAusIMM Andrew Parker Non-Executive Director LLB. Bevan Tarratt Non-Executive Director BCom. Warren Staude Non-Executive Director BSc, MSc, MAusIMM., F Fin

5 Mandiodo Nickel Project Operating Structure Project Summary Location and Infrastructure Geology Resources Metallurgy Development Schedule Exploration Blue Sky

6 Operating Structure Mining Services Agreement Between exploration permit holder and Stonehenge Indonesian subsidiary company Transition to listed Indonesian Company New mining laws will allow direct ownership of permits Exclusive Marketing Agreement

7 Project Summary JORC Resource Measured and Indicated 1.61% Ni* 167Kt nickel metal Drilled to feasibility level Ore - direct smelter feed Shipping access (barges) Exploration Potential Mt % nickel Mt nickel metal =$USD Billion ASX release, PT Aneka Tambang (ATM), The reader is cautioned that the potential quantity and grade of the Exploration Potential described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

8 Location Indonesia Southeast Sulawesi Mandiodo

9 Infrastructure Mandiodo Existing resource Coastal location Shipping access (barges) Local electricity, mobile phone and internet coverage Local workforce Sealed roads Local domestic airport Local Gov t support Perth time zone

10 Regional Laterite Mines La Sampala-Rio Tinto % nickel 2. Sorowako - Inco % nickel 3. Bahodopi - Inco % nickel 4. Pomalaa - Inco % nickel 5. Mandiodo - Stonehenge % nickel and growing

11 Geology Ultramafic Bedrock Underlies permits Background grades of 0.3% Ni Tropical weathering concentrates nickel Laterite blanket metres thick Laterite grades: 0.9% - 2.2% nickel

12 Geology - Laterite Extensive tropical laterite blanket Typically metres thick % Ni Limonite % Ni Saprolite Drill grids at: 50 by 50 metres 100 by 100 metres 200 by 200 metres

13 Existing Resources The reader is cautioned that the potential quantity and grade of the Exploration target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource Measured and Indicated resource of: nickel COG 1.8% Saprolite COG 1.2% limonite 167Kt contained nickel Massive resource increase as cut off grade drops Drilled to feasibility level Drill grid 50m,100m,200m 400 diamond drill holes

14 Resource Drilling The reader is cautioned that the potential quantity and grade of the Exploration target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource Immediate drilling Targeting resource increase of: nickel COG 1.0% Mt nickel metal $USD Billion value Timeline Drilling results by May 08 Resource Calc by June 08 Feasibility initiated July 08

15 Current Drilling 45 hole program 3 month timeframe Drilling in progress

16 Laterite Metallurgy Saprolite Metallurgy Tropical laterite Grade ~1.45% SiO2/MgO ratio = 2 Fe content 18% Limonite Metallurgy Tropical laterite Grade ~1.3% SiO2/MgO ratio = 2.2 Fe content 33% >1.5% suitable for ferro-smelting or pig iron production <1.5% suitable for leaching

17 Development Schedule Task Drilling starts Drilling results Resource Calc Feasibility initiated Resource Calc Feasibility complete Govt Approval Pre-stripping Mining start Date Feb 08 April 08 Jun 08 July 08 Nov 08 Dec 08 Mid Direct shipping Truck to Beach Beach to Barge Barge to Ship Ore is Free On Board ~$USD 84/t (1.5%) ~$USD 150/t (2.0%) Y1 production 1.2 Mtpa Y2 production 3.6 Mtpa Y1 free cash flow $30M Y2 free cash flow $100M

18 Exploration Blue Sky Mandiodo North Exploration target Mt Target grade % nickel 5 existing diamond drill holes with the following grades: The reader is cautioned that the potential quantity and grade of the Exploration target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource Hole Intersection width 27m 23m 26m 23m 21m Grade

19 Exploration Cross Section 450mRL 1.7% 2.0% Ophiolite bedrock 1.7% Mineralised limonite and Saprolite 1.9% surface 350mRL 2.1% Average thickness = 24 metres Average Grade 1.87% Nickel 1 Kilometre long section, open in all directions

20 Drill Hole Grades Open 1km Open 1.7% 2.0% 1.7% 1.9% 2.1%

21 Mandiodo Summary JORC Resource Measured and Indicated 1.61% Ni 167Kt nickel metal Drilled to BFS level Ore - direct smelter feed Shipping access (barges) Exploration Potential Mt % nickel Mt nickel metal =$USD Billion

22 Australian Exploration Stonehenge Nickel Drilling Geophysics Stonehenge Base Metals Resource calculation Granville East Tin Production commences Federation Tin-Zinc Resource calculation

23 Location Australia Northwest Tasmania

24 Stonehenge Nickel Two Avebury style nickel targets Stonehenge Southwest Similar rocks and magnetic signatures to Avebury High resolution geophysics Currently waiting on Assay results

25 Stonehenge Base Metals Tramway Shear 6.3% Zn, 2.9% Pb and 41 g/t Ag Sunshine Shear ~125 metres long ~10 metres wide Best result: 7m at: 12.2% Zinc 2.3% lead 64 g/t silver Resource Calculation underway

26 Granville East Tin Ore stockpiles of % Tin Mill Refurbishment 98% complete Refurbishment cost of $300,000 Planned Mill commissioning in March

27 Federation Tin-Zinc Modelling complete Resource calculation underway

28 Investment Summary Mandiodo nickel project in Indonesia Rapid resource and mine development Direct shipping to smelters Large exploration upside Australian projects Stonehenge Nickel discovery potential Lead-zinc-silver and tin-zinc resources Tin production imminent

29 More Information Level 24 St Martins Tower 44 St George Terrace, Perth, Western Australia P: +61 (8) F: +61 (8) Level 24 Royal Exchange Building 56 Pitt St, Sydney Australia P: +61 (2) F: +61 (2) AFS Licence No

30 Disclaimer The document is not a disclosure document nor does it constitute the provision of financial product advice. No representation or warranty is made as to the accuracy, completeness or reliability of the information. The information is provided expressly on the basis that recipients will carry out their own independent inquiries into the matters contained herein and make their own independent decisions about the affairs, financial position or prospects of the Company which reserves the right to update, amend or supplement any information at any time in its absolute discretion. Please consult Stonehenge Metals for more detailed information. Feb 2008