Zenith Minerals Limited · ASX:ZNC
Zenith Minerals — Zinc Co Australia — Shareholder Meeting (November 2009)
27 slides from Zenith Minerals's shareholder meeting presentation, Nov 27, 2009
Slide 1: Presentation to Shareholders, Annual General Meeting
Zine Co Australia Limited ABN 96 119 397 938 ASX Operations Announcement Office, Level 10, 20 Bond Street Sydney, NSW, 200 Dear Sir/Madam, Presentation to Shareholders, Annual General Meeting Please find attached for release to the market a copy of the presentation delivered by Zine Co’s General Man
Slide 2: Annual General Meeting - General Manager's Presentation
Zinc C Zi Co For personal use only Australia Limited ABN 96 119 397 938 Annual General Meeting 26 November 2009 General Manager’s Presentation
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. statements They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking state
Slide 4: Zinc Co Australia Limited
Zinc Co Australia Limited For personal use only ASX code: ZNC Issued shares: 65.5 million Market Cap: A$7.2m undiluted* Options: 26.44 million listed ** 26 0.55 million unlisted*** Cash Oct/09: A$1.7m Major shareholder: Giralia, Giralia ~12% Source: http://www.asx.com.au/asx/research * At 25/Nov/200
Slide 5: Zinc Co Project Locations
Zinc Co Project j Locations For personal use only
Slide 6: Recent Developments
Recent Developments p For personal use only • Preliminary work shows potential for the Mt Alexander project to host very large tonnages of magnetite iron ore • Recognised by market with share price increase since October • ZNC’s ZNC’ medium di term t f focus will ill be b on Mt Al Alexander d magnet
Slide 7: Magnetite Iron Ore
Magnetite g Iron Ore For personal use only Magnetite (Fe3O4) v Hematite (Fe2O3) iron ore • 50% of world mine production of iron ore is from magnetite • In situ ore grades • magnetite 20% to 40% Fe, • hematite h tit 55% tto 67% F Fe • Magnetite ores require capital expenditure for upgrading before sh
Slide 8: Magnetite Iron Ore
Magnetite g Iron Ore For personal use only Investment in magnetite iron ore in Australia driven by China: • China seeks to diversify sources of iron ore • China seeks to source iron ore from countries with low geo-political risk • China wants to convert holdings of US dollars into physical assets •
Slide 9: Iron ore supply, China
Iron ore supply, pp y China For personal use only • China produces ~700Mt/year iron ore • Imports ~400Mt/year now, expected to import ~800Mt/year 800Mt/year by 2014 ABARE 2009 Upgrading magnetite ore with hand held magnet • 53 llarge mines i accountt for f 20% Chinese iron ore production • 8000 smal
Slide 10: Australian early stage magnetite projects – recent transactions
Australian early stage magnetite projects – recent transactions For personal use only Project Southern/Central Tenements Owner Centrex Metals (ASX:CXM) Location Eyre Peninsula, east coast, no port – CXM proposing to build a port Partner Wuhan Iron and Steel (WISCO) – 3rd largest steel producer in Ch
Slide 11: Australian early stage magnetite projects – recent transactions
Australian early stage magnetite projects – recent transactions For personal use only Project Razorback Owner (subject to $25m Royal Resources (ASX:ROY) payment to vendor) Location South Australia, ~200km 200km north of Adelaide, 40km east of Indian Pacific rail, 170km from Port Pirie Partner Sin-Ta
Slide 12: Mt Alexander project location
Mount Alexander magnetite g iron ore project p j For personal use only 100% % Zinc Co Well located: • Gas pipeline • Highway • Coast
Slide 13: Mt Alexander aeromagnetic image
Mount Alexander magnetite g iron ore project p j For personal use only East section - 6.5 km long outcrops long, West section - 3.3 km long, under shallow cover TMI aeromagnetic image Banded Iron Formation (BIF) mapped by aeromagnetics
Slide 14: Eastern outcropping section
Mount Alexander magnetite g iron ore project p j For personal use only Eastern (outcropping) section. section Rock chip sampling shows extent of iron mineralisation Quickbird satellite image
Slide 15: Average assay values for surface rock chip samples
Mount Alexander magnetite g iron ore project p j For personal use only Average assay values for 580 surface rock chip samples Fe_% SiO2_% Al2O3_% P_% S_% 34 0 34.0 48 0 48.0 06 0.6 01 0.1 00 0.0 Consistent Fe grade, low level of penalty elements over 6.5 km strike length. Comparable with grades of m
Slide 16: Rock chip sampling – consistent Fe grade
Mount Alexander magnetite g iron ore project p j For personal use only Rock chip sampling – consistent Fe grade g across strike T7491600N: 320 metres, av. 32.7% Fe T491200N 255 metres, av. 36.0% Fe T 7491000N 405 metres, av. 32.2% Fe Quickbird satellite image
Slide 17: Davis Tube Recovery Test Results
Mount Alexander magnetite g iron ore project p j For personal use only Davis Tube Recovery Test Results (Surface samples, 75 micron grind) Head grade DTR concentrate grade Mass Sample Fe% Fe% SiO2% Al2O3% P% S% Mn% LOI1000 Recovery 890R 42 6 42.6 69 8 69.8 26 2.6 0 03 0.03 0 01 0.01 X 0 05 0.05 ‐1 7
Slide 18: Banded Iron Formation outcrops as prominent ridge
Mount Alexander magnetite g iron ore project p j For personal use only Quartzite BIF Amphibolite Dolomite BIF Looking south west Banded Iron Formation outcrops as prominent ridge – low l striping ti i ratio ti for f mining i i
Slide 19: BIF outcrop width
Mount Alexander magnetite g iron ore project p j For personal use only BIF outcrop width 560 metres Looking north east along strike at widest point Width indicates potential for large tonnage of ore
Slide 20: Sample of magnetite mineralisation
Mount Alexander magnetite g iron ore project p j For personal use only Sample of magnetite mineralisation Sample S l number b 000345 38.2% Fe 44.5% SiO2 0 26% Al2O3 0.26% 0.02% P
Slide 21: Mount Alexander project development plan
Mount Alexander magnetite g iron ore project p j For personal use only Mount Alexander project development plan: 1. reconnaissance mapping pp g and extensive rock chip p sampling p g to determine if the BIF has size potential (complete) 2. permitting for drill programme (in progress) 3. structural m
Slide 22: Cardinals JV (ZNC 75%)
Cardinals JV ((ZNC 75%)) For personal use only Two diamond drill holes completed on 10900N section The holes tested for massive base metal sulphides related to EM conductor extending 500m south of g gossan Intersected strong footwall alteration and zinc rich mineralisation: 1m @ 4.96% Zn, 3m @ 2.59%
Slide 23: Earaheedy (ZNC 100%)
Earaheedy y ((ZNC 100%) %) For personal use only Rock chip sampling and Helicopter EM completed over Lockeridge Fault in E69/1771. Interpretation of HEM has identified anomalies which will ill be b rated t d for f drilling d illi in i 2010 with existing targets at Magazine, Navajoh, Chinook prospect
Slide 24: Conquistador, Snake Well (ZNC 75%)
Conquistador, q , Snake Well (ZNC ( 75%) %) For personal use only Helicopter EM survey completed over area Shown Sh 4 targets identified RAB drilling planned to test these and other targets
Slide 25: Lennard Shelf (ZNC 100%)
Lennard Shelf ((ZNC 100%)) For personal use only Sale of tenements: Zinc Co will receive: • $150,000 $150 000 cash • 2 million Meridian* shares In exchange for four tenement applications ELA80/4240 ELA80/4251 ELA04/1894 ELA04/1895 Completion expected Dec 2009 *Meridian Minerals Limited ASX:MII
Slide 26: Medium term company strategy
Medium term company p y strategy gy For personal use only • Focus on defining economic potential of Mt Alexander magnetite iron project • Purchase full control of Mount Alexander E08/1410 (completed) • Sell Lennard Shelf Projects (in progress) • Advance Earaheedy, Cardinals, Snake Well projects • Wi
Slide 27: Zinc Co Australia Limited
Zinc Co Australia Limited For personal use only Mount Alexander Project, north west valley
Zinc Co Australia — Shareholder Meeting (November 2009) on 6ix