Zenith Minerals Limited · ASX:ZNC
Zenith Minerals — Zinc Co Australia — Investor Presentation (May 2010)
32 slides from Zenith Minerals's investor presentation, May 24, 2010
Slide 1: ASX cover letter for investor presentation
For personal use only 24 May 2010 ASX Operations Announcement Office Level 10, 20 Bond Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Please find attached for release to the market a copy of the presentation to be delivered by Zinc Co’s General Manager to investors this week. Yours fait
Slide 2: Zinc Co Australia Limited Investor Presentation May 2010
Zinc Co For personal use only Australia Limited ABN 96 119 397 938 Steel feed materials - iron, manganese Investor Presentation May 2010
Slide 3: Disclaimer
Disclaimer For personal use only Forward looking statements Some statements in this presentation regarding estimates or future events are forward looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements inclu
Slide 4: Zinc Co Australia Limited
Zinc Co Australia Limited For personal use only ASX code: ZNC Source: ASX 16 May 2010 Issued shares: 65.5 million Market Cap: A$14.8m* Options: 2.05 million unlisted** Cash Mar/2010: A$1.2m Portfolio value A$0.18m*** Major shareholder: Giralia, ~12% ; Directors and Management 9.3% *At 14 May 2010 **
Slide 5: Experienced Board and Management
Zinc Co Australia Limited For personal use only Experienced Board and Management : Gary Comb, Chairman Managing Director of zinc producer Jabiru Metals Stan Macdonald, non-Executive Director Executive Director of Giralia Resources, emerging iron ore company Mike Joyce, non-Executive Director Managin
Slide 6: History, Strategy, Results
History, Strategy, Results For personal use only • Zinc Co listed May 2007, IPO raised $5m • 65.5 million shares, no capital raising since listing • Formed to explore a portfolio of zinc properties assembled by Giralia Resources • March 2010, announced 0.6 to 1 billion tonne magnetite iron explorati
Slide 7: Zinc Co Project Locations
Zinc Co Project Locations For personal use only Zn Fe Zn, Mn Zn
Slide 8: Mount Alexander magnetite iron ore project
Mount Alexander magnetite iron ore project For personal use only 100% Zinc Co Well located: • Gas pipeline • Highway • Coast
Slide 9: Mount Alexander exploration target
Mount Alexander magnetite iron ore project For personal use only Exploration Target*: • Announced 11 March 2010 •0.6 to 1.2 B tonnes • 25% to 35% Fe • includes only 4.2 km of total 6.5 km outcrop • Additional exploration potential – 3.3km strike magnetic anomaly in Image – Total Magnetic Intensity a
Slide 10: Mount Alexander banded iron formation
Mount Alexander magnetite iron ore project For personal use only Structural repetition brings iron formation (pink) close to surface Mt Alexander banded iron formation looking west Prominent outcrop of banded iron formation in exploration target zone – low mining stripping ratio Mt Alexander drill s
Slide 11: Preliminary DTR metallurgical tests summary
Mount Alexander magnetite iron ore project For personal use only Preliminary DTR* metallurgical tests summary: •38 diamond drill core samples, January 2010 drilling • 8 metre composites, represent all BIF drilled •P80 -40 micron grind • Fe concentrate grade excellent • SiO2 concentrate grade excelle
Slide 12: Mt Alexander metallurgical performance comparison
Mount Alexander magnetite iron ore project For personal use only Comparison of Mt Alexander metallurgical performance* with published resource data from Australian magnetite deposits *The data from Mt Alexander is based on 23 drill core samples above 20% DTR weight recovery cut-off. Further testing
Slide 13: Magnetite Iron Ore
Magnetite Iron Ore For personal use only Magnetite (Fe3O4) v Hematite (Fe2O3) iron ore: • 50% of world mine production of iron ore is from magnetite, 50% from hematite • Typical range of in situ ore grades • magnetite 20% to 40% Fe, • hematite 55% to 67% Fe • Magnetite ores require substantially mor
Slide 14: Market cap of ASX magnetite junior miners
Mount Alexander magnetite iron ore project For personal use only Market cap (undiluted) of ASX junior miners with magnetite project focus: Market capitalisation at 14 May 2010
Slide 15: Australian magnetite deposits value from recent transactions
Mount Alexander magnetite iron ore project For personal use only Australian magnetite deposits value – evidence from recent transactions: Centrex Metals, Southern Central Tenements Project: •$186m cash payment to earn 60% interest in stages up to definition of 2Bt JORC inferred resource plus $75m to
Slide 16: Project Summary
Mount Alexander magnetite iron ore project For personal use only Project Summary Parameter Data/Expectation Size (mine life) Large In situ grade Good Weight recovery Good Depth to primary magnetite Shallow Mining shape Compact Grind size Average Concentrate quality Excellent Location/infrastructure
Slide 17: Mount Alexander project development plan
Mount Alexander magnetite iron ore project For personal use only Mount Alexander project development plan: 1.Permitting for drilling in progress for Mt Alexander West 2.Drilling Mt Alexander West scheduled June/July 3.Estimate additional JORC exploration target tonnage Mt Alexander West 4.Metallurgy
Slide 18: Earaheedy Manganese, Lockeridge Prospect
Earaheedy Manganese For personal use only Lockeridge Prospect New discovery of stratabound high grade manganese, Earaheedy Basin 100% Zinc Co
Slide 19: Earaheedy Basin
Earaheedy Manganese For personal use only Earaheedy Basin: Zinc Co Manganese Project Area Identified by Geological Survey Manganese occurrence WA as right tectonic setting for stratabound manganese deposits Known manganese occurrences 150km east of Zinc Co project area (blue on map) No previous expl
Slide 20: Lockeridge Prospect
Earaheedy Manganese For personal use only Lockeridge Prospect Massive manganese occurs as erosional remnant caps on four hills Dip north at shallow angle – 15 degrees Footwall zone of Mn and Fe enrichment Stratigraphic N position of the manganese is traceable over 4km in ZNC tenement
Slide 21: Lockeridge Prospect sampling
Earaheedy Manganese For personal use only Lockeridge Prospect Sampling on Hill 2 Hill 4 Hill 3 Massive manganese No rt h di p Footwall manganese stained shale
Slide 22: Lockeridge exploration concept
Earaheedy Manganese For personal use only Lockeridge Prospect Exploration concept: • Stratabound horizon ed n er od • Shallow dipping izo or e h aly ne s om a an an g al • 2m to 6m thick M sic p hy g eo E M ter He li co p • Erosional gap between ridge top and plain
Slide 23: Earaheedy manganese project development plan 2010
Earaheedy Manganese For personal use only Earaheedy manganese project development plan 2010: • Permitting for drilling at Lockeridge in progress • Drilling at Lockeridge June/July • Regional exploration over 75 strike km following grant of applications Indicative economic target for Earaheedy mangan
Slide 24: Manganese industry
Manganese For personal use only Manganese industry • 90% of manganese is used in steel making, ~9kg Mn per tonne of steel • Essential additive in steel making – no practical substitute • Correlation of Mn consumption with Fe • World manganese ore production is around 40 million tonnes at grades vary
Slide 25: Australian Manganese Producers
Manganese For personal use only Australian Manganese Producers Groote Eylandt – Samancor (BHPB 60%, AA 40%) Resource: 160Mt @ 45.5% Mn (2009) Groote Eylandt Form: Sheet 22km x 6km, averaging 3m thick, dip 50 west Mining: open cut from 11 pits where grade x thickness exceeds economic cut off Producti
Slide 26: Manganese and iron ore price history
Manganese For personal use only Historical Mn ore price 20 year Mn, Fe ore price history – Australian export ~ US$2/mtu Historical price ratio Mn:Fe ~ 5:1 Price spike/reversal 2008 to 2009 Forecast price range US$4 to US8$ mtu out to 2012
Slide 27: Summary
Summary For personal use only • Re-rating of Zinc Co since Oct 2009 based on magnetite iron discovery at Mount Alexander • Drilling planned to extend magnetite exploration target, scheduled June/July • Important new discovery of high grade manganese in the Earaheedy Basin • Drilling planned to test
Slide 28: Zinc Co Australia Limited contact details
Zinc Co Australia Limited ABN 96 119 397 938 For personal use only Registered office: Postal address: Level 3, 33 Ord St PO Box 1426 West Perth West Perth WA 6005 WA 6872 Telephone +61 8 9226 1110 Fax +61 8 9321 0070 Email info@zincco.com.au Website www.zincco.com.au Australian Securities Exchange Z
Slide 29: Additional information
Zinc Co Australia Limited ABN 96 119 397 938 For personal use only Additional information
Slide 30: Manganese Ore and Iron Ore Minerals
Manganese Ore and Iron Ore Minerals For personal use only X Manganese ores – oxides Iron ores – oxides Cryptomelane KMn4+6Mn2+2O16 Hematite Fe2O3 Pyrolusite Mn4+O2 Magnetite Fe3O4 Bixbyite Mn3+1.5Fe3+0.5O3 Braunite Mn2+Mn3+6SiO12 Hausmannite Mn3+3O4
Slide 31: Mt Alexander Exploration Target
Mt Alexander Exploration Target For personal use only Area included in exploration target Representative cross section of exploration target Base level depth cut Equivalent depth below Tonnes, billion at Tonnes, billion exploration off surface (metres) density 3.5 t/m3 target range 0m 150 - 250 0.76
Slide 32: Competent person statement
Mt Alexander Exploration Target For personal use only The information in this presentation that relates to Exploration Results and Mineral Resources is based on information compiled by A M Hespe, who is a Member of the Australasian Institute of Geoscientists. Mr Hespe has sufficient experience which