Joe Hamilton CEO January 2008 AIM/TSX: ACU BSE:African Copper

Transcription

1 Joe Hamilton CEO January 2008 AIM/TSX: ACU BSE:African Copper

2 Forward Looking Statement Except for historical information contained in this presentation relating to African Copper, certain disclosure statements and information contained herein constitute forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning mineral resource estimates, exploration and mine development plans, the future price of copper, capital and operating cost estimates, timing of the development of the Company s projects in Botswana, exploration results, requirements for additional capital, the impact of exchange rates and the timing and possible outcome of pending and future regulatory applications and other statements which are not historical facts. When used in this document, the words such as could, plan, estimate, expect, intend, may, potential, should, and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include risks related to failure to convert estimated mineral resources to reserves, the grade and recovery of ore which is mined varying from estimates, future prices of copper, capital and operating costs varying significantly from estimates, political risks arising from operating in Africa, uncertainties relating to the availability and costs and availability of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, uninsured risks and other risks involved in the mineral exploration and development industry. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company makes no responsibility to update them or to revise them to reflect new events or circumstances, except as required by law.

3 Corporate Structure African Copper Plc UK 100% Mortbury Limited BVI Listed: AIM TSX BSE

4 Corporate Structure African Copper Plc UK 100% Mortbury Limited BVI 100% Listed: AIM TSX BSE

5 Corporate Structure African Copper Plc UK 100% Mortbury Limited BVI 100% Listed: AIM TSX BSE AFRICAN COPPER MINING (Botswana) (Pty) Ltd. Botswana Operating Company Mowana Mining Licence Dukwe Prospecting Licence

6 Corporate Structure African Copper Plc UK 100% Mortbury Limited BVI 100% Listed: AIM TSX BSE AFRICAN COPPER MINING (Botswana) (Pty) Ltd. Botswana Operating Company Mowana Mining Licence Dukwe Prospecting Licence AFRICAN COPPER EXPLORATION (Botswana) (Pty) Ltd. Botswana Operating Company Matsitama Prospecting Licences

7 Share Structure Millions of shares Outstanding Exercise price Expiry date Employee Options 12.1 TOTAL Fully-diluted C$ Share Ownership UK 60% North America 25% Botswana 15% O/S F/D Insiders 3% 12% Institutions 75% 69% Private investors 22% 19%

8 Experienced Management Team Directors Roy Derek Corrans (Non-Exec. Chairman): Exploration Geologist Michael Evans (Non-Exec. Director): Exploration Geologist Anthony Williams (Non-Exec. Director): Chartered Engineer David Jones : P.Geoph. Executive Joseph Hamilton (CEO): P.Geo., CFA Bradley Kipp (CFO): CA, CFA Chris Fredericks (COO): SAIMM, Geologist Project Directors Paul Thomson: MD Botswana, Electrical Engineer Mike Haywood: CA, Administrative Manager James Arthur : SAIMM, Mine Manager 50 full-time staff in Botswana

9 Infrastructure Excellent Keeps Costs Down Botswana has the highest stability rating in Africa grade A credit rating no foreign debt Mowana Mine is 120 km from Francistown (second largest city) Excellent infrastructure Road, rail, power, water within 12 km of mine

10 Building Shareholder Value Strong Track Record Raised 52.9 million in new equity Construction of Mowana plant facilities largely complete First production Q fold increase in M&I Resources over past 18 months Building Shareholder Value Growth in resources Rapid production growth Aggressive development and exploration team

11 Update on the Mowana Mine Project

12 Consultants to the Report Read, Swatman & Voigt (Pty) Ltd. (RSV) prepared the Report, with independent experts contributing to : K Enyuka & Metallicon Metallurgical work Caracle Creek International Consulting Inc. Geological Modelling & Resources Estimation Senet and Minero Mineral Processing & Metallurgical Processing Turgis Consulting Mine Design

13 10-Fold Increase in Measured and Indicated Resources Reserves and Resources (M mt) Copper Contained (mt) May 06 Jan 07 M&I Resources Reserves 800, , , ,000 0 May 06

14 Mineral Resources for Mowana Deposit

15 Resource Base

16 Mowana Mine 1 million tonne per year concentrator under construction Initial open pit for 7 to 9 years Underground mine for 15 years Construction commenced October 2006 Mining commenced July 2007 Production scheduled for early Q2 2008

17 Construction Targets

18 November 24, 2007 Open-pit Reserves Mowana Mine Open-pit Proven & Probable Reserves and In-pit Inferred Resources Category Tonnage Copper Contained Metal Mt % 000 Mt Cu Proven Probable Total Proven & Probable In-pit Inferred

19 October 2007 Capital Cost Estimate

20 $5.00 $3.75 $2.50 $1.25 $0 Kamoto (Katanga) Kinsevere (Anvil) Lumwana (Equinox) Kov (Nikanor) Tenke (Tenke) Mowana (ACU) San Javier Constellation) Frontier (First Quantum) Brown's (Compass Res) El Boleo (Baja Mining)

21 How is it possible to produce MORE copper with LOWER process recoveries from the SAME ore body? By incorporating Dense Media Separation ( DMS ) technology into the mine and plant design

22 Mowana Mine Incorporation of a DMS plant into the plant design allows access to 50% more copper over Life-of-Mine Tonnes (millions) 300,000, ,000, ,000,000 75,000,000 0 Mowana Total Resource Cut-off Grade Measured Indicated Inferred M&I Grade

23 DMS technology is a pre-concentration step Cut-off Mining 1 1.6% Cu 16,000 t copper DMS Mining Flotation recovery = 85% 48,600 t concentrate 13,600 t copper % Cu DMS Recovery 80% 3.2% Cu Flotation recovery 85% 75,000 t concentrate 21,000 t copper 30,000 t copper Overall Recovery 68%

24 Normal mining operations will unavoidably extract some of these Inferred Resources with a resulting dilution of the RO RSV, NI Technical Report conclusions, Nov 26, 2007 Estimated Open Pit Production Normal mining operations will unavoidably extract some of these Inferred Resources with a resulting dilution of the ROM ore. The production schedules therefore should probably use a 29% dilution factor and a 0.8% Cu grade of dilution as the most likely. The 95% mining recovery and 5% dilution at zero grade incorporated into the production schedules may be too conservative. RSV, NI Technical Report conclusions, Nov 26, 2007

25 Off Site Costs General and Administrative Costs $4 million / yr Payable Copper 96.50% Transportation Costs $100 /tonne Smelter Treatment Charge $65 /tonne Smelter Refining Charge $0.065 / lb copper Government Royalty 3% recognized revenue Income Taxes 25%

26 Aerial View Pit & Plant Sites Access Road Power Line Tailings Water Line Plant Primary Crusher Pit Area Waste piles 500 metres

27 Process Flow Sheet DMS plant inserted here

28 Underground Mine Is the Upside for this Project Prefeasibility study complete by yearend 68 million tonne resource estimated $50 to $60 million over 18 months May be used to supplement open pit ore feed Can support installed capacity for 10 to 20 years

29 Exploration High priority areas for 2008: 1. Dukwe South Extension Copper-Lead-Zinc-Silver targets 2. Nakalakwana Hill Coppergold targets 3. Thakadu/Makala Copper Silver resource drilling 4. Gaokae Grid Nickel PGE targets 5. Lepashe Copper Snake Copper-silver targets 6. Mutsuku/Dihudi Area Copper-gold and Lead-Zinc- Silver 2008 Budget $5 million

30 Regional Geology and Exploration Areas

31 Near Term Production with Exploration Upside Near Term Production Construction is 80% complete Potential mine life of 20+ years Exploration Potential Mowana Mine allows us to explore Matsitama First concentrate is expected in April 2008