Slide 1: Aguablanca Mine
Aguablanca Wi] RECURSOS, S.A.U.]
Slide 2: Location
Aguablanca LOCATION Mine SPAIN Aguablanca • Located in mining-friendly EU country Huelva • Excellent infrastructures (roads, ports, airport, power, airport, etc.) • 75 Km from Seville • Close to European suppliers & customers • Skilled, stable workforce 2
Slide 3: Infrastructure
Infrastructure Open Pit Clear Water Dam UG Portal Offices Waste Dump Process Plant Tailing Dam 3
Slide 4: Open Pit Operation
Open Pit Operation • Conventional OP operation. • Three push-backs. • 8-meter benches (100% blasting). • Equipment on Waste - (2 KOM PC2000/2 KOM PC 1250/CAT777 or KOM785 trucks) • Equipment on Ore – (FH1200 (CAT777 or KOM785 trucks). • 7.2 Mm3 budgeted for 2008 - 5 day/week shift regime - 20h/day.
Slide 5: Ore Processing Plant
Ore Processing Plant • Conventional Crushing-Grinding-Flotation plant. • Initial capacity 1.5 Mtpa 1.8 Mtpa in 2007 2.1 Mtpa in 2008. • Bulk flotation Ni + Cu (prepared for differential). • 75-81% Ni recovery (depending on head grades). • 7-8% Ni and 7-9% Cu in concentrate. • Operates a 7 day/week -
Slide 6: Reserves & Resources
Reserves & Resources Uppe r body Dee p bod y 6
Slide 7: 2007 Highlights
2007 Highlights • Throughput capacity increase 1.5 to 1.7 Mtpa (Completed) • YTD processed 1.26 Mtof ROM ore (+20% cf 2006) • YTD Ni production 4,940 t (+ 178 t cf 2006) • YTD Ni concentrate grade 7.21% (+8.2% cf 2006) • YTD Cu concentrate grade 6.92% (+2.2% cf 2006) • YTD Tailings grade @ 0.13% Ni
Slide 8: Production Profile
Production Profile 2007 REGISTERED RESULTS Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 (*) TOTAL Variance 2007- 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2006 M illed Ore (tonnes) 314,730 359,681 374,963 418,634 1,468,008 406,749 422,925 433,178 422,926 1,685,778 15% Head Grade (%Ni) 0.68% 0.61% 0.60% 0.5
Slide 9: Short Term Planning
Short Term Planning • Increase processing capacity in 2008 (1.8 to 2.1 Mtpa - Capex @ US$ 10.8M) • Process 1.8 Mtonnes in 2008 and 2.1 Mtonnes in 2009 • Capex to start up of U/G production 6.6 M USD • Mine 100 Ktonnes @ 0.55% Ni & 0.58% Cu from U/G in 2008. • Develop processing of Oxide Stockpile (>
Slide 10: Underground Design
Underground Design •Selected sub-level open stoping method with cemented aggregate fill. •Standard mining equipment is used. •Stope - 20m x 20m x 25m high (30m floor to floor). •Sequence is conservative. •Systematic ground support planned. 10
Slide 11: Underground Design
Upper UNDERGROUND DESIGN Orebody Data Unit 2008 2009 2010 Capex 000 USD 6,638 0 0 Ore hoisted tonnes 102,005 220,153 202,700 Ni grade % 0.55% 0.65% 0.77% Cu grade % 0.58% 0.65% 0.74% Unit operating cost USD/ore tonne 58.96 44.93 50.76 • Sublevel Stoping with CRF. • Paste Fill being evaluated and pot
Slide 12: Production Profile
Production Profile Ni & Cu Metal Production (tonnes) Open pit & U/G 12
Slide 13: Aguablanca Mine (Ni-Cu-PGE)
Aguablanca Exploration- Spain Aguablanca Mine (Ni-Cu-PGE) The newest and largest Ni sulphide mine in Western Europe
Slide 14: Aguablanca Exploration - History
Aguablanca Exploration- History • 1983 Granting Provisional State Reserve • 1989 JV agreement Presur and Rio Tinto Minera (later Atlantic Cooper) • 1993 Discovery of the Aguablanca Ni bearing gossan • 1994-1996 RTM completed a PFS including 33,000 m of drilling. • 2001 RNGM acquired Aguablanca • BFS
Slide 15: Aguablanca Reserves and Resources Summary
Aguablanca Exploration- Spain Aguablanca Reserves and Resources Summary Nickel/Copper - Aguablanca (0.2% Ni cut-off) YE 2006 Category Tonnes Ni Cu Contained Contained (000) (%) (%) Ni (Tonnes) Cu (Tonnes) Reserves P+P 11,500 0.60 0.47 69,100 54,400 Resources M + l 14,800 0.58 0.48 86,400 71,400 Infe
Slide 16: 2007 Exploration
Aguablanca Exploration- Spain 2007 Exploration Main objective: to expand and upgrade existing resources and discover new satellite orebodies • US$2.9m budget including 15,500 m of drilling. • Three UG rigs currently running. 14,725 m completed to date. • Drilling focused on the Deep Body where a 25x
Slide 17: 2007 Exploration Highlights
Aguablanca Exploration- Spain 2007 Exploration Highlights • Wide and continuous intervals of disseminated and semimassive sulphide mineralization defined at the Deep Body indicating an strong Nickel Nickelsulphide This Thisis sulphideexploration iswhat whatwe exploration weare are looking lookingfor
Slide 18: Aguablanca exploration potential
Aguablanca Exploration- Spain Aguablanca exploration potential ¹ Discovery hole 108 Pit Outline North orebody 5.30m at 0.94% Ni+0.41% Cu Deep Body (projected from -50 m level) Decline Decline OPEN Gabbro Gabbro Main orebody 7450 E 7400 E 7425 E 100 m
Slide 19: Deep Body –50m Level Map
Aguablanca Exploration- Spain Deep Body –50m Level Map Ni mineralization >0.5% AGU-1078 AGU-1060 57.30m @ 0.91 % Ni, 0.84 % Cu 18.00m @ 0.84 % Ni, 0.62 % Cu AGU-1079 Inc. 13.20 m @ 2.04 % Ni, 1.25 % Cu Inc. 3.90 m @ 2.09 % Ni, 0.76 % Cu 34.10m @ 1.05 % Ni, 0.91 % Cu 7300 E 7400 E 7500 E 7200 E ¹ Inc
Slide 20: Deep Body Section 7350 E
Aguablanca Exploration- Spain Deep Body Section 7350 E N S 400m AGU-10 6544 AGU-27 6507 6714 Open pit 300m Phase-3 AGU-1048 6630 6609 6749 AGU-1058 200m AGU-1027 6744 11.30m @ 2.23 % Ni, 1.20 % Cu 6745 AGU-1025 Inc. 10.20 m @ 2.39 % Ni, 1.24 % Cu AGU-1006 AGU-1093 AGU-1007 100m 34.00m @ 0.60 % Ni, 0
Slide 21: Aguablanca - 2008 Nickel Exploration
Aguablanca - 2008 Nickel Exploration • US$6m total Ni exploration budget including 26,400 m of drilling. • 20,400 m allocated to UG drilling and surface near mine exploration. • 6,000 m allocated to regional exploration mostly to drill testing the newly generated VTEM anomalies. • Detailed surface a
Slide 22: Aguablanca Regional Exploration-Spain
Aguablanca Regional Exploration-Spain An emerging new nickel belt with strong exploration potential. • Predominant land position -2564 km2 - in one of Europe’s most prospective RIBERA RIBERA DEL DEL and pro-mining regions. FRESNO FRESNO CAMPILLO CAMPILLO DE DE • Wide intervals of low grade, LLERENA
Slide 23: Magnetic first vertical derivative
Aguablanca Exploration- Spain Magnetic first vertical derivative ¹ AGUABLANCA AGUABLANCA MINE MINE 1Km VTEM conductors
Slide 24: Portugal - Mine site and Regional Exploration
Portugal - Mine site and Regional Exploration • Summary of 2007 Results – Neves Corvo Minesite Exploration – Aljustrel Minesite Exploration – Regional Exploration
Slide 25: Neves Corvo Minesite Exploration
Neves Corvo Minesite Exploration • 2007 Goals – Infill Lombador South Zinc Zone (LSZZ) to upgrade Inferred tonnes to Indicated; – Expand LSZZ Inferred resource.
Slide 26: LSZZ Drill Intersections
LSZZ Drill Intersections Est. True Drillhole From (m) To (m) Interval (m) Width (m) Pb % Zn % ND20A-1 696.0 731.0 35.0 34 3.2 9.4 NE18C-3 747.0 777.0 30.0 28 2.5 8.1 NF22A 911.0 966.0 55.0 53 2.5 8.5 NF22A-1 901.0 936.0 35.0 35 0.7 7.7 NF24 902.0 960.0 58.0 58 2.6 8.7 NF24A-1 893.0 938.5 45.5 45 2.5
Slide 27: Plan Showing Deposits with Existing Underground Development
Plan Showing Deposits with Existing Underground Development Lombador LSZZ 3 km Neves Corvo Graça Zambujal
Slide 28: LSZZ 2006 Resource Shape
LSZZ 2006 Resource Shape 55m @ 8.51% Zn t res 0 me 67m @ 8.03% Zn 27 16m @ 3.92% Cu
Slide 29: Neves Corvo Mine Lease
Neves Corvo Mine Lease GREY: Inf 8.3 Mt @ 7.7% Zn GREY: Inf 8.3 MtAll@at7.7% Zn 3.3%Zn cutoff 3.3%Zn cutoff
Slide 30: 2006 Neves-Corvo Zinc Resource
2006 Neves-Corvo Zinc Resource Tonnes Zinc Contained Metal (Mt) Grade (%) 000’s of Million tonnes pounds Measured 1.2 4.86 60 132 Indicated 29.4 6.20 1,827 4,028 M+I 30.6 6.15 1,887 4,160 Inferred 25.5 5.49 1,397 3,080 Zinc resources were estimated using a 3.3% cut-off. The indicated resources are i
Slide 31: Resource Expansion Potential
Resource Expansion Potential 100m massive 55m @ 8.51% Zn sulphide 67m @ 8.03% Zn 620 metres 700 me t re 47m @ 4.2% Zn s stockwork
Slide 32: Resource Expansion Potential
Resource Expansion Potential Neves Corvo Lombador
Slide 33: Aljustrel Mine Site Exploration
Aljustrel Mine Site Exploration • 2007 Goals – Infill and expand Feitais deposit; – Infill Estação deposit.
Slide 34: Feitais Deposit Expansion
Feitais Deposit Expansion Added in 2007 Target Area For 2008
Slide 35: Feitais and Estação Deposits
Feitais and Estação Deposits 615 metres Estação – infill drilling, Step-outs to determine Feitais – conversion of Deposit limits Inferred to Indicated, 590 metres Expansion of Inferred Represa Fault
Slide 36: Regional Exploration
Regional Exploration • 2007 Goals – Complete compilation and organization of historical exploration data; – Complete levelling of historic gravity data; – Drill test priority areas; – TEM orientation and surveying; – AirFTG survey.
Slide 37: Lombador TEM
Lombador TEM
Slide 38: Estação Inverted TEM Section
Estação Inverted TEM Section
Slide 39: Completed and Planned AirFTG
Completed and Planned AirFTG Survey Completed Aljustrel October 2007 Neves Corvo Proposed AirFTG Expansion