Australian Mines Limited · ASX:AUZ
Australian Mines — Diggers & Dealers 2004
23 slides from Australian Mines's conference presentation, July 2004
Slide 1: Australian Mines Limited – Gaining Momentum
Australian Mines Limited GAINING MOMENTUM JULY 2004
Slide 2: The Company
AUSTRALIAN MINES AUZ THE COMPANY
Slide 3: A Growing Resource Company
A Growing Resource Company AUZ ¾ Nickel Mine at Blair ¾ Large Tenement Position ¾ No Project Debt ¾ Increasing Cash Position ……. Strengthening Position
Slide 4: Corporate Details
Corporate Details AUZ ¾ 144.6 million Shares on Issue ¾ Market Capitalisation of ~$24M ¾ Cash (at bank end of June 2004) $1.8M ¾ Debt free ¾ Nickel metal hedge at A$20,000 per tonne (A$9.07 per pound)
Slide 5: The Mine
AUSTRALIAN MINES AUZ THE MINE
Slide 6: Blair Nickel Mine
Blair Nickel Mine AUZ Blair History.. ¾ Discovered in 1988 by WMC ¾ First mined in 1989 ¾ Placed on care & maintenance in 2001 ¾ Purchased and re-opened by AUZ in 2003
Slide 7: Aerial Photograph of Blair
Aerial Photograph of Blair AUZ
Slide 8: Blair Mine Today
Blair Mine Today AUZ Targeted monthly performance ¾ Production 5,000 to 10,000 tonnes ¾ Nickel Grades of between 2.5% and 3.5% ¾ Payable Nickel of 75 tonnes to 150 tonnes ¾ Current cash costs of A$3.63 /lb nickel ¾ Targeted cash costs of A$2.50 /lb nickel ¾ Sustaining capital costs of A$0.50 /lb nic
Slide 9: Blair - Future Strategy
Blair - Future Strategy AUZ ¾ Deeps 01 & 03 Surfaces ¾ Area 57 Extensions ¾ Upper 01 & 03 Surfaces ¾ Remnant Blocks
Slide 10: Deeps & Surfaces
Deeps 03 Surfaces AUZ 3.16m @ 12.02% Ni ~3.0m massive nickel sulphide
Slide 11: Area 57 Extensions
Area 57 Extensions 6579050 mN 6578950 mN & Updip Area 57 massive sulphide shoot 1100m RL LEGEND Proposed drill holes Previous drill intercept Other drill holes >10m % Ni 5-10m % Ni . ~ Projected Area 57 2-5m % Ni ' shoot 1-2m % Ni 0.1-1m % Ni sulphide \
Slide 12: Upper 01 Surfaces
Upper O1 Surfaces 376800 mE 530 Level 6579000 mN LEGEND \ Projected target Mafic \ location Sediment Ultramafic | Massive Nickel Sulphide | Matrix Nickel Sulphide Ore Prospective Contact Fault 6578900 mN
Slide 13: Remnant Mining
Remnant Mining AUZ Potential Stoping Blocks
Slide 14: The Potential
AUSTRALIAN MINES AUZ THE POTENTIAL
Slide 15: Blair – Exploration …… the next mine
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 16: Blair Regional - Nickel
Blair Regional ~ Nickel 380000 mE mE BLAIR PROJECT Nickel Resource Targets 4m @ 2.55% Ni from 78m 1m @ 5.1% Ni 1.4m @ 2.5% Ni Under explored section au ; of prospective contact 7 ° \ beneath soil cover SQ\S) AK J ReCoURSE 80,000t @ 3.9% Ni 4m @ 1.86% Ni from 224m 1.8m @ 2.32% Ni from 170.6m 0.3m @ 2
Slide 17: Blair Regional - Nickel
Blair Regional - Nickel AUZ Blair Mine and Conceptual target Blair East Blair West Blair Mine Analogue BLAIR MINE 0.54% Ni & 340ppm Cu 03 Surface Blair East Blair Mine 01 Surface N 10 Contact 0.97m @ 5.35%Ni Area 57 0.20m @ 9.0% Ni Untested basal contact Aeromagnetic Image Interpretation
Slide 18: Blair Regional - Nickel
Blair Regional - Nickel AUZ Blair South Plan Blair South Location of mineralisation Broader co-incident Ni-Cu anomaly Untested basal contact Aeromagnetic Image Interpretation
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: Gold – 18 Footer
6583200 mN 6583100 mN 6583000 mN 6582900 mN 6582800 mN 7m @ 281gitA 3m @ 2.91g/t Au m @ 2.81g/t Au 4m @ 1.25g/t Au 6m @ 2.72g/t Au ; 3m @ 1.48g/t Au . - 7 = = sy Surface |4m @ 2.29g/t Au =e : — ™ LS : 2m @ 1.75g/t Au | “aera “ a a <= q Gurren Limit of Drilling 3m @ 4.86g/t Au a 4m @ 2.7g/t Au SomkO
Slide 21: 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 22: Australian Mines Limited
Australian Mines Limited AUZ ……Gaining Momentum as ¾ Cashflow Strengthens ¾ Growth through exploration ¾ Opportunistic acquisitions ... Maintaining Momentum and Continue to Grow
Slide 23: Australian Mines Limited – Gaining Momentum
Australian Mines Limited GAINING MOMENTUM JULY 2004