Australian Mines Limited · ASX:AUZ
Australian Mines — Investor Presentation (October 2004)
24 slides from Australian Mines's investor presentation, October 2004
Slide 1: Australian Mines Limited – Mining 2004
Australian Mines Limited MINING 2004 October 2004
Slide 2: Executive Summary
Executive Summary AUZ ¾ Nickel producer ¾ Increasing production and extending mine life ¾ No Project Debt ¾ Increasing Cash Position ¾ Exploring for gold & nickel …. Emerging Resources Company
Slide 3: Share Structure
Share Structure AUZ ¾ ASX Code AUZ ¾ 144.6 million Shares on Issue ¾ 53.6 million Unlisted Options ¾ Market Capitalisation of ~$18M ¾ Cash (at bank end of September 2004) $2.4M
Slide 4: Share Price
Share Price AUZ AUZ 12 month Share Price 10,000,000 30.0 9,000,000 25.0 8,000,000 Share price (cps) 7,000,000 20.0 Volume 6,000,000 5,000,000 15.0 4,000,000 10.0 3,000,000 2,000,000 5.0 1,000,000 - - 17/10/2003 14/11/2003 12/12/2003 9/01/2004 6/02/2004 5/03/2004 2/04/2004 30/04/2004 28/05/2004 25/06
Slide 5: Blair Nickel Mine
Blair Nickel Mine AUZ Blair History…….. ¾ Discovered in 1988 and mined in 1989 by WMC ¾ Produced over 1million tonnes of ore at a grade of 2.5% Ni for 26,000 tonnes of nickel metal ¾ Purchased and re-opened by AUZ in November 2003 ¾ AUZ recommenced the main decline to access deeper reserves in Septe
Slide 6: Blair – Aerial Photograph
Blair – Aerial Photograph AUZ
Slide 7: Blair – Reserves & Resources
Blair – Reserves & Resources AUZ Tonnes grade Nickel tonnes t Ni % Ni t Resources 160,600 3.1 4,950 Reserves 93,500 2.6 2,410 ……. Extending Mine Life
Slide 8: Blair – Production Results
Blair – Production Results AUZ 25,000 600 500 20,000 400 15,000 300 10,000 200 5,000 100 0 0 March Quarter 2004 June Quarter 2004 September Quarter Forecast 2004 Ore Tonnes Mined Contained Nickel Tonnes
Slide 9: Blair – Production Profile
Blair – Production Profile AUZ Targeted monthly performance ¾ Production 5,000 to 10,000 tonnes ¾ Contained Nickel of 150 tonnes to 250 tonnes ¾ Current cash costs of A$3.66 /lb nickel ¾ Increase developed inventory ¾ Target project cash of $500k per month ……. Stable Cashflow
Slide 10: Blair – Ore Zones Plan
Blair - Ore Zones Plan AUZ Blair Nickel Mine Geology Plan 1090mRL
Slide 11: Blair – Deeps 01 & 03 Surfaces
Blair – Deeps 01& 03 Surfaces AUZ Planned Stopes Planned Decline 03 Surface 01 Surface
Slide 12: Blair – Unmined Shoots
Blair — Unmined Shoots ! 6579100 mN 6579000 mN [EG] Remnant ore oy Fi [_] void real : .__., Decline © Previous drill intercept AMUG061 e) Recent drill intercept c P| 3 ; AMUGO60 \ @) AMUG057 \ 714 Level J \ | " 1@ 3.18% Ni | \ “By \ i i Shoot \ ~~ >>, 700 Level \ \ \ | | | \ \
Slide 13: Blair Future
Blair Future AUZ ¾ Develop and mine current reserve ¾ Prove up reserves for a further 12 to 24 months ¾ Develop un-mined shoots (B & L) ¾ Expand resources outside currently mined areas ¾ Explore for new near mine resources ……. Planned Performance
Slide 14: Blair – Exploration
Blair – Exploration AUZ ¾ Closed spaced aero magnetics ¾ Nickel target prioritisation & drilling ¾ Gold target prioritisation & drilling ¾ Other opportunities outside tenements …… the next mine
Slide 15: Blair Regional – Nickel
Blair Regional ~ Nickel BLAIR PROJECT Nickel Resource Targets 6585000 mN 4m @ 2.55% Ni from 78m ga 1m@5.1% Ni 1.4m @ 2.5% Ni of prospective contact beneath soil cover 4m @ 1.86% Ni from 224m [on 1.8m @ 2.32% Ni from 170.6m 0.3m @ 2.4% Ni from 177.3m | - im @ 1.54% Ni from 30m : im @ 1.58% Ni from 44
Slide 16: Blair Regional – Nickel
Blair Regional - Nickel AUZ Blair Mine and Conceptual target Blair East Blair West BLAIR MINE 03 Surface Blair East Blair Mine 01 Surface N 10 Contact Aeromagnetic Image Interpretation
Slide 17: Anomaly 11 – Long Section
— 300m RL f— 200m RL LEGEND + 15%m Ni ) 10-15%m Ni (0 7-10%m Ni tome. LL] 5-7%m Ni AMRC015 EE ———EE————— 11m @ 1.18% Ni incl 3m @ 2.33% Ni AMRC014 10m @ 1.04% Ni incl 3m @ 1.46% Ni Sept 2004 RC Drilling by Australian Mines Ltd (AMRCO014 - 019) Other holes drilled by previous explorers Drill Section
Slide 18: Anomaly 11 – Cross Section
Anomaly 11 – Cross Section AUZ
Slide 19: Blair Regional – Gold
Blair Regional ~ Gold 10 mE a7 380000 mE BLAIR PROJECT 2m @ 6.88 g/t Au from 47m Gold Resource Targets 7m @ 2.81 g/t Au from surface GOLDEN RIDGE MINE 8m @ 4.29 g/t Au from 55m (Gold) 17m @ 2.82 g/t Au from 63m (EOH) 5m @ 3.93 g/t Au from 72m 4m @ 8.33 g/t Au from 31m (incl. 2m @ 14 g/t Au) Up to 11
Slide 20: Footer – Long Section
18 Footer — Long section 3m @ 2.91g/t Au 7m @ 2.81g/t Au 6m @ 2.72g/t Au 4m @ 1.25g/t Au 3m @ 1.48g/t Au 4m @ 2.29g/t Au é Depth of 350m RL : : : 2m @ 1.75git Au | "eaterng ; 4m @ 2.7g/t Au Curent Limit of Diling 3m @ 4.86g/t Au Se OS a Anne aN ° Base of Oxidalion PLUNGE LEGEND s+ 10 gimAu +5 gimAu
Slide 21: Footer – Cross Section
18 Footer — Cross Section AMRCO026 5m @ 3.01 g/t Au incl 1m @9.9 gitAu 7 4m @ 4.12 git Au incl 1m @ 5.32 git Au incl 1m @ 6.56 g/t Au RL Base of oxidation ~ Sediment I 280mRL 0
Slide 22: Blair Potential
Blair Potential AUZ Summary ¾ Good potential for further Gold and Nickel mineralisation ¾ Further investigation to targets under cover ¾ Considerable advantage with over 20 years of previous exploration ¾ Large volume of exploration data that can be integrated ¾ Utilising improved technology and exp
Slide 23: Gaining Momentum and Continue to Grow
Australian Mines Limited AUZ ……Gaining Momentum as ¾ Cashflow Strengthens ¾ Growth through exploration ¾ Opportunistic acquisitions ....... and Continue to Grow
Slide 24: Australian Mines Limited – Mining 2004
Australian Mines Limited MINING 2004 October 2004
Australian Mines — Investor Presentation (October 2004) on 6ix