Terramin Australia Limited · ASX:TZN
Terramin Australia — Africa Mining Congress 2011
27 slides from Terramin Australia's conference presentation, Feb 7, 2011
Slide 1: Leveraged for Success
TERRAMIN AUSTRALIA LIMITED For personal use only Leveraged for Success Africa Mining Congress 2011 February 2011
Slide 2: Important information
Important information For personal use only The information in this presentation is designed as an aid to a spoken explanation. It is not to be considered without that explanation. It is not intended to guide any investment decisions in Terramin Australia Limited. The information is intended as a gu
Slide 3: Contents
Contents For personal use only Introduction to Terramin Zinc Market Outlook Company Strategy and Objectives Operations & Projects South Australian Mines and Projects Tala Hamza Project Conclusions TERRAMIN AUSTRALIA LIMITED SLIDE No. 3
Slide 4: Terramin is……………
Terramin is…………… For personal use only An Australian zinc miner with a large African project Attributable metal – 3 million tonnes lead and zinc 3 billion lbs zinc in low cost ore reserves Average C1 cost 32c/lb A compelling option on the zinc price TERRAMIN AUSTRALIA LIMITED SLIDE No. 4
Slide 5: Mines and projects
Mines and projects For personal use only Angas Zinc Mine - South Australia (100%) 400ktpa operation Development and operating capability Menninnie Dam Project - South Australia (100%) 3.8Mt Inferred Resource 3+ targets with similar characteristics Oued Amizour Project – Algeria (65%)
Slide 6: Zinc Market Outlook
For personal use only Zinc Market Outlook TERRAMIN AUSTRALIA LIMITED SLIDE No. 6
Slide 7: Zinc market – supply/demand imbalance 2014-16
Zinc market – supply/demand imbalance 2014-16 For personal use only Deficit looming Deficit market forecast from 2014 as mines (Century, Brunswick, Lisheen and Skorpion) close and demand increases The pipeline of large project developments Refined Zinc equivalent - Source CHR Metals Ltd 2010 are
Slide 8: Zinc price to rise as market moves towards deficit
Zinc price to rise as market moves towards deficit For personal use only Global Refined Zinc Supply/Demand and Prices Analysts are predicting a significant uplift in the zinc price from 2014 Tala Hamza project start up timed to capture a period of high zinc prices Consensus view forming that the
Slide 9: Strategy and Objectives
For personal use only Strategy and Objectives TERRAMIN AUSTRALIA LIMITED SLIDE No. 9
Slide 10: Strategic framework and objectives
Strategic framework and objectives For personal use only Grow production from operations Low cost operating base Maximise returns from established operating Angas Mine Grow production pipeline Building on existing portfolio through focused exploration Bring forward Tala Hamza production
Slide 11: Production profile
Production profile For personal use only Pb-Zn Metal - Attributable Production by Project 200 180 Pb+Zn metal tonnes (,000) 160 140 120 100 80 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Angas - operating Angas extension - targets Menninnie - resource T
Slide 12: Operations
For personal use only Operations TERRAMIN AUSTRALIA LIMITED SLIDE No. 12
Slide 13: Sth Australian mines and projects: Angas Mine
Sth Australian mines and projects For personal use only Angas Mine Began production in 2008 2011 Forecast: 400,000t ROM, 46-48,000t Zn and 18-19,000t Lead Conc Four plus year LOM - exploration drilling in progress Advanced underground development - stable mill feed and plant performance
Slide 14: Sth Australian mines and projects: Menninnie Exploration
Sth Australian mines and projects For personal use only Menninnie Exploration Menninnie Central Zone Inferred Resource of 3.8Mt @ 4.0% Zn and 3.2% Pb, and 34g/t Ag (not closed off) Other prospects with good Pb-Zn drill results Concept a central plant with satellite orebodies Drilling and scopi
Slide 15: Tala Hamza Project Africa
For personal use only Tala Hamza Project Africa TERRAMIN AUSTRALIA LIMITED SLIDE No. 15
Slide 16: Project ownership
Project ownership For personal use only Exploration Permit 5225PE FRANCE ITALY 100% owned by Western PORTUGAL Madrid Rome Mediterranean Zinc (“WMZ”) Lisbon SPAIN Sardinia incorporated private Algerian company Mediterranean Sea Sicily Rabat Algiers Tunis MALTA TUNISIA WMZ Ownership: MOROCCO A
Slide 17: The Tala Hamza deposit
The Tala Hamza deposit For personal use only Mineral Resource - Measure, Indicated and Inferred 68.6 Mt @ 4.6% Zn and 1.1% Pb Low operating cost Block Cave mining method Favourable local infrastructure – power, port Low input costs - power and fuel Highly saleable concentrate output with l
Slide 18: DFS – key outcomes
DFS – key outcomes For personal use only Long life mine: An initial 39.9Mt mine design Low operating costs: A forecast C1 cost of 32c/lb Capital cost: Pre-production capex of circa US$580 is back ended Metal production: Zinc and lead metal production of 2.04Mt over the life of the mine Fle
Slide 19: Anticipated project schedule
Anticipated project schedule For personal use only 2010 2011 2012 2013 2014 2015 2016 DFS Project Approvals / Financing Land Acquisition Decline Development Underground Infrastructure Undercut / Extraction Process Plant Vent Shaft TSF Concentrate Production The DFS assumes conventional drill and bla
Slide 20: Mine design
Mine design For personal use only Best Height of Draw Surface PCBC modeling used to 260m simulate mixing of ore and waste into each drawpoint Footprint determined by drawpoints with positive dollar return Height of each drawpoint (“Best Height of Draw”) from 60-260m, based on economic 60m shut
Slide 21: Mine design
Mine design For personal use only Design incorporates stepped undercut and extraction levels so that the development of the infrastructure follows the footwall Ventilation of the orebody shaft MEASURED & Total lateral pre-production INDICATED RESOURCE development for the project is 30 Undercut k
Slide 22: Production profile
Production profile For personal use only First concentrate production is scheduled for the final quarter of 2016 Peak zinc and lead concentrate production of 425,000t (230,000t Zn and Pb metal) in 2018 If the orebody is extended mining will continue beyond 2027 Tala Hamza Metal in Concentrate
Slide 23: Exploration potential
Exploration potential For personal use only Recent exploration activity at the Lbarkouk prospect has confirmed a large hydrothermal alteration system Channel sampling has recorded a number of polymetallic zones with anomalous copper and gold mineralisation Follow up drilling is in progress wit
Slide 24: The next months
The next 12 months For personal use only Partner due diligence and review of the DFS - underway Negotiate revised fiscal regime - commenced Mining Lease Application Land acquisition Complete project financing Commence construction Continue regional exploration program TERRAMIN AUSTRALI
Slide 25: Conclusion
Conclusion For personal use only Terramin is poised for a period of growth: The completion of the DFS is a milestone toward a major mine Options to reduce the time to first production a focus Angas is running smoothly and 2012-15 is major cash generator Tala Hamza project set to commission a
Slide 26: Resources & Reserves
Resources & Reserves For personal use only Measured Resource Indicated Resource Inferred Resource Total Resources Table of Resources Terramin Zinc Lead Zinc Lead Zinc Lead Zinc Lead Interest Tonnes grade grade Tonnes grade grade Tonnes grade grade Tonnes grade grade (%) (Mt) (%) (%) (Mt) (%) (%) (Mt
Slide 27: Notes to Reserves & Resources
Notes to Reserves & Resources For personal use only 1. Resources for Angas are estimated at a cut off of 2% Pb+Zn 2. Resources for Tala Hamza are estimated at a cut off of 2.5% ZnEq. The Zinc Equivalence formula for Tala Hamza is %ZnEq = %Zn + 0.59 x %Pb and is based on long term predicted prices at