Astral Resources Nl · ASX:AAR
Astral Resources Nl — Anglo Australian Resources NL — Investor Presentation (April 2008)
31 slides from Astral Resources Nl's investor presentation, Apr 18, 2008
Slide 1: Investor Presentation April 2008
Anglo Australian Resources NL Investor Presentation April 2008 Contacts: Executive Director General Manager Exploration Angus Pilmer Peter Komyshan 08 93889545 08 93225811 angus@acpco.com.au pkomyshan@anglo.com.au For personal use only
Slide 2: Anglo Australian Resources - April 2008
Anglo Australian Resources - April 2008 For personal use only
Slide 3: Disclaimer
ANGLO AUSTRALIAN RESOURCES NL Disclaimer The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in Anglo Australian Resources NL (“AAR”) nor does it form the basis of any contract or commitment.
Slide 4: Undervalued company with strong cashflow and copper-zinc project
ANGLO AUSTRALIAN RESOURCES NL Anglo Australian Resources NL is an undervalued company. It has generated a strong cashflow and profit from gold mining in Western Australia which is financing Pre-feasibility activities at its 100% owned Koongie copper - zinc deposit – one of the better undeveloped mul
Slide 5: Corporate Fact File
Corporate Fact File ASX Code: AAR Listing: November 1986 Issued Capital: 501m Share Price: 7c Market Cap: $35m Top 20 Shareholders: 22.1% Directors Shareholdings 10.0% Cash at 31st December 2007 $8.4m For personal use only
Slide 6: Corporate Fact File: Directors and Management
Corporate Fact File Directors •John Jones – Non-Executive Chairman •Denis Clarke – Non-Executive Director •Chris Fyson – Non-Executive Director •Angus Pilmer – Executive Director/ Company Secretary Management Peter Komyshan – General Manager Exploration William Holly – Manager Koongie Pre-feasibilit
Slide 7: AAR Project Locations
AAR Project Locations For personal use only
Slide 8: Mandilla Project – Key Points
Mandilla Project – Key Points • Mining West Mandilla commenced June 2006 and completed April 2007 • Production of 78,000t @ 8.22g/t Au for 20,130oz Au and 1100oz Ag • Mining produced profit of $5.6 million in FY07. Profit expected in FY08 • Indicated Resource of 356,800t @ 3.04g/t Au for 34,873 ounc
Slide 9: Bedrock mineralisation - East Mandilla
Bedrock mineralisation - East Mandilla For personal use only
Slide 10: Pre-Feasibility April
Koongie Pre-Feasibility April 08 For personal use only
Slide 11: Study
Koongie Pre-feasibility Study For personal use only
Slide 12: Koongie Project – Copper Zinc Project
Koongie – Copper Zinc Project Koongie Project • Kimberley Region • Two Cu / Zn resources at Onedin and Sandiego • Wholly owned • $8.5 million spent on exploration since 1972 • $2.7m approved budgets for 2008 For personal use only
Slide 13: Overview
Koongie Pre-feasibility – Overview • Mining Sandiego by underground methodologies could be highly profitable • Stand alone milling options or toll treatment at nearby plants • Production 500,000tpa producing 60,000t of zinc and copper concentrates. • Batch treatment of various ore types. • Concentra
Slide 14: Key Ingredients
Koongie Pre-feasibility – Key Ingredients • Geology and Resources • Mining Methodology • Metallurgical extraction and methodology • Plant design • Marketing and sales • Logistics • Government Permitting and Regulations • Environmental • Aboriginal Heritage • Financing For personal use only
Slide 15: Resources
Resources Sandiego Domain Indicated Tonnes Zn Cu Pb Ag (Mt) (%) (%) (%) (g/t) Zinc Zone 1.14 8.1 0.4 0.7 30.3 Copper Zone 0.89 1 2.4 0.1 16 Mixed Zone 0.25 8.5 1.7 0.5 45.9 Total 2.32 5.4 1.3 0.5 26.4 Onedin Domain Indicated Tonnes Zn Cu Pb Ag (Mt) (%) (%) (%) (g/t) Zinc Zone 1.1 5.9 0.4 0.7 23.5 Co
Slide 16: Project In Ground Value by Commodity and Ore Type
Koongie Project In Ground Value by Commodity and Ore Type Excluded from financial model Future additions via flotation or leaching $250,000,000 Included in financial model Extraction by Flotation $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Onedin Value Copper $A Onedin Oxide Total Onedin T
Slide 17: Geology and Resources: Sandiego
Koongie Pre-feasibility – Geology and Resources Sandiego • Tabular orebody with at least 120m strike and up to 50m in width, steeply dipping • Top 120m depleted, weathered to 250m below surface • Separate copper and zinc lodes • Robust Indicated Resource with high level of confidence • Resource open
Slide 18: Mineralisation
Koongie Mineralisation Zinc Ore Copper Ore For personal use only
Slide 19: Koongie Park Copper Zinc Project Long Section
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Slide 20: Mining Methodology: Sandiego
Koongie Pre-feasibility – Mining Methodology Sandiego • Orebody shape, depletion zone, proximity of highway points to underground option • Decline access to ore bodies at 20m levels • Mining by bottom up and top down methodologies using uphole bench retreat and highlift cut and fill • Detailed plann
Slide 21: Sandiego Project Proposed Underground Mine
KOONGIE PARK Sandiego Project SECTION 1080mN DIAGRAMATIC REPRESENTATION PROPOSED UNDERGROUND MINE
Slide 22: Geology and Resources: Onedin
Koongie Pre-feasibility – Geology and Resources Onedin • Folded south plunging deposit • Copper and zinc lodes cannot be separated • Indicated Resource - a number of different interpretations are possible. • Wide high grade intersections. • Down plunge extensions to be determined • Copper oxide pote
Slide 23: Onedin Prospect Long Section
——— PARK PROJECT nedin Prospect LONG SECTION S000rm# ==
Slide 24: Mining Methodology: Onedin
Koongie Pre-feasibility – Mining Methodology Onedin • Shape of deposit favours open pit – providing adequate metal recoveries from oxide and transition ore • Metallurgical testwork on oxide and transition zone continuing. • Low cost leach techniques to be investigated • Conceptual planning and deter
Slide 25: Metallurgy
Koongie Pre-feasibility - Metallurgy • 192 tests completed • 8 different ore types • Conventional flotation techniques applied to sulphide ore and CPS techniques to transitional (weathered) ore • Saleable concentrates at marketable grades with excellent recoveries from Onedin and Sandiego sulphide z
Slide 26: Marketing
Koongie Pre-feasibility – Marketing • Metallurgy suggests we can produce a high quality copper, zinc and minor lead concentrates which are very marketable • Minimal smelter penalties • High demand for concentrate - A number of approaches to AAR from commodity traders to buy concentrate • Preliminary
Slide 27: Commodity pricing
Koongie Pre-feasibility – Commodity pricing • Base case modelling conducted at prices below current levels • Long term optimistic view of commodity prices • Value in project divided evenly between copper and zinc • Project is sensitive to exchange rates and commodity prices For personal use only
Slide 28: Logistics
Koongie Pre-feasibility – Logistics • Sealed highway access • Project 20km from population centre of Halls Creek • Sealed airstrip at Halls Creek enables workers to be sourced from Perth, Broome or Kununurra • Site of Camp / worker accommodation to be investigated For personal use only
Slide 29: Logistics
Koongie Pre-feasibility – Logistics • Ore concentrates through Wyndham port • Container port For personal use only
Slide 30: Heritage and Environment
Koongie Pre-feasibility – Heritage and Environment • Heritage survey at Sandiego and Onedin showed no issues • Archaeological survey completed – No significant issues. • Base line Flora and Fauna survey to commence soon. • Acid drainage problems are expected to be low given carbonate host rock and l
Slide 31: Strategy
Koongie Strategy • Complete pre-feasibility documentation • Improve viability of project by: – Increase resources at depth at Sandiego – Investigate potential resources on strike to the north at Sandiego – Improving knowledge of shape, size and orientation of Onedin sulphide mineralisation – Refine
Anglo Australian Resources NL — Investor Presentation (April 2008) on 6ix