Andromeda Metals Limited · ASX:ADN
Andromeda Metals — Adelaide Resources — Investor Presentation (March 2006)
38 slides from Andromeda Metals's investor presentation, Mar 30, 2006
Slide 1: a — rt—“_ ee So oO | a oe = ivers nerals play! *
a — rt—“_ ee So 5 oO | a oe = ivers nerals play! * d m ie if cl
Slide 2: Vital Statistics
Vital Statistics * ASX Code: ADN * Shares issued: 69.58 million * Unlisted options: 4.67 million * Cash: $4.5 million Shareholders: ~1300 Major Shareholders: Troy Resources NL (17%) Keith Yates (8.3%) 12 month trading: 19 to 72 cents Market capitalisation: $31.3 million (45 cents) Board members left
Slide 3: Mission
Mission To create shareholder value by minerals discovery
Slide 4: Profile
Profile South Australian based diversified mineral explorer listed since 1996 Experienced Board and Management - well funded Exciting mineral sands discovery in late 2005 Range of projects - gold-copper, uranium, iron ore - at promising stages Joint ventures with reputable majors
Slide 5: Exploration Activity
Exploration Activity [BE Joint Venture Exploration ~~ ©) Adelaide Resources Expenditure ($ million) 96-97 97-98 98-99 99-00 00-01 04-02 02-03 03-04 04-05 @ RC/Diamond _ 88 RAB/Aircore ! Drilling (metres) 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05
Slide 6: Warramboo - Iron Ore
Warramboo ~ /ron Ore
Slide 7: With Iluka Resources Limited
With Iluka Resources Limited spending $1.0M to earn 51% (expected mid 2006) Resource drill-out in progress
Slide 8: What are mineral sands?
What are mineral sands? * Mineral sands deposits are concentrations of heavy minerals generated by wave action on beaches * These beaches can be modern day or as old as 40-50 million years * The valuable components are typically zircon and the titanium bearing minerals rutile and illmenite
Slide 9: Zircon Products
aT ii .), Sa Ge ee ee Zircon Products ® nw 5 L © Soe © a £ ® ” ® = a w Seu ro o See 7) s Resources Limited Adelaide
Slide 10: Titanium Pigment
ee | v) ~ o > x?) ‘°) pe O. - Pigmen << — oo lum = See itan T Adelaide Resources Limited
Slide 11: suing
suing ye Q a oo
Slide 12: Zircon market share by producer
Adelaide Resources Limited RBM 20% lluka 38% Ticor 11% Namakwa 10% DuPont 5% Others 16% (courtesy lluka Resources)
Slide 13: CL oo
* oy CL 7 oo — Oey La Late Satie a a . Le ve a ee eer Le Do a 7 7 ae Z : Ly pee as I c 7 ye Lg ES nn PES ay < - — (courtesy lluka Resources)
Slide 14: Zircon Market
Adelaide Zircon Market Resources Limited Zircon Market Dynamics Supply remains very tight: Historical 7ircon Price - delay of some projects #100 - flat {declining output from F200. existing producers: $00 oo $6 00- #200 Supply shortage started In 2008 and will continue through 2006. ~ stocks steadil
Slide 15: World premier zircon province
S premier zircon province Ed BUA ten 3 Q 6 = 2 a Potenti = (= 12 In Eucla Bas iscoveries Tripitaka Adelaide/lluka Ha Wester, ata Adelaide Resources Limited A lluka d
Slide 16: Eucla Basin
EUCLA BASIN Trans Australia Railway a Adelaide Resources Tenements subject to Colona JV with Iluka (5250 sq. km.) Iluka Tenements
Slide 17: Adelaide
Adelaide Resources Limited
Slide 18: Jacinth and Ambrosia discoveries
lona Yee) JACINTH AND AMBROSIA DISCOVERIES (Late 2004) Shuttle Radar Topography Mission (SRTM) data image TRIPITAKA DISCOVERY
Slide 19: (luka Resources)
ae ea i — EL 3233 (luka Resources) — ion uy 0 =) © o ° a - 6 E4 6 ety ipi Tr e Resources) ic (Adela
Slide 20: Tripitaka traverse
Adelaide Resources Limited TRIPITAKA traverse EC85SE iq a = = A | | a 5: 21m @ 5.6%HM incl 3 @ 15.4%HM
Slide 21: Significant Intersections (>1% HM) Line 5085SE
7 pease Significant Intersections (>1% HM) Line 5085SE Limited Clay Hole | . noua (53 microns) YEC6S6 YEOR17 YEO655 / YEO823 YEOG15 YEOST3 | YEOS53 _YEQ812 Traverse % Zircon % Leucoxene* % lIlmenite 5085SE 68 12 11 “The leucoxene percentage contains a rutile component yet to be defined.
Slide 22: In-ground value comparison of mineral sands deposits
USSit USS/t in HM conc®) — ground Stradbroke Is ® | Iluka 162 1.46 Murray Basin | Iluka 151 Province Company Murray Basin | Bemax 185 Murray Basin © | Aust. Zircon 217 WA mid-west ® | Iluka 144 WA south-west @} Iluka 122 WA south-west 2) Bemax 120 WA south-west (} Olympia Res. 147 WA north-west ©} G
Slide 23: Tripitaka - Effect of Grade Variation
Tripitaka - Effect of Grade Variation USS$it in Province Company %Rutile | %llmenite ground Eucla Basin | lluka/Adelaide Res. T% 17% 13.44 T% 17% 15.68 T% 17% 17.92 7% 17% 22.41 : Commodit: US$/tonne Assumes that the rutile content unacd Zircon $620 (yet to be determined for Tripitaka) Rone $450 wil
Slide 24: What if Iluka's Jacinth / Ambrosia were gold deposits?
What if Iluka’s Jacinth / Ambrosia were gold deposits? Using a gold price of US$550/oz the combined in-ground resources of Jacinth and Ambrosia would be equivalent to a 5.7Moz gold deposit. i.e. 162MT @ 1.1g/t Au And this in deposits that are very close to surface and can be mined with a garden spad
Slide 25: Tripitaka - What next?
Tripitaka - What next? Resource drill-out recently commenced Field program will take at least 2 months Following that is laboratory analysis of samples and resource estimation Resource announcement expected towards end of September quarter Iluka will earn 51% during this program
Slide 26: Slide 26
Slide 27: Resources
Resources Adelaide ; ' ; Locality Limited
Slide 28: Eyre Peninsula Tenements
Eyre Peninsula Tenements ‘Wi, Palaeochannel HII" prospective for Uranium AdRes Tenements AdRes Tenements (Basement Uranium) @ Gold prospect Warramboo tron Project
Slide 29: Warramboo Iron Project - Locality
Adelaide Warramboo Iron Project - Locality Resources Limited Distance from Warramboe to Port Lincoln 47S km Whyalla, 185 km Elliston 80 km Ceduna 200 km
Slide 30: Warramboo magnetite and Davis Tube separator
a fe Warramboo magnetite held between the poles of Davis Tube magnetic separator. Amdel technician using Davis Tube magnetic separator.
Slide 31: Warramboo - Conclusions to date
Warramboo - Conclusions to date Extensive strike length Good location and . infrastructure Substantial tonneage potential Local workforce Coarse grain size Nearby deepwater port Excellent product No native title or chemistry environmental impediments 100% owned Worthy iron ore Supportive exploration
Slide 32: Tennant Creek
Adelaide Resources Limited Cambrian Wiso Basin Tennant Creek Block &® Operating mine ® Historic mine Warramunga | Formation 20 kilometres
Slide 33: Tennant Creek - Major Producers
Tennant Creek - Major Producers Mine Tonnes Au (02) Warrego 6,750,000 . 1,475,000 Nobles Nob 1,996,000 1,110,000 Juno 452,000 815,000 White Devil 1,618,000 761,000 Peko 3,676,000 . 414,000 Tennant Creek orebodies are company makers!
Slide 34: Creek Field
Creek Field (2.5M ounces) yy Rover Field (? ounces)
Slide 35: R12 Section 339850E
Adelaide R12 Section 339850E Resources Limited R12 Magnetic contours ..RVIZARD2 : en oc RVIZARDI RV12ARD3." 300 metres contours in nt “Wiso Basin | _- Sediments Uncoptormty
Slide 36: Rover Project
Rover Project An exciting gold-copper play in a district renowned for company making discoveries More drilling this year!
Slide 37: What Next?
What Next? Drilling underway at Wombat copper/gold (Jan-Mar 06) Resource drilling of Tripitaka mineral sands discovery lluka’s highest Eucla Basin priority for 2006 (Mar 06) Barns/Baggy Green gold drilling (April 06) Drilling recommences at Rover gold/copper (Q2-06) Tripitaka resource estimate (Q3)
Slide 38: www.adelaideresources.com.au
www. adelaideresources.com.au Providing shareholders with discovery opportunities!
Adelaide Resources — Investor Presentation (March 2006) on 6ix