For personal use only - Home - Australian Securities ... personal use only Disclaimer – Competent Person’s Statement Competent Person’s Statement • ... • Tiggtyhtly maaagenage

2011 Annual General Meeting

1

Perth –Thursday, 20 October 2011

Geoff Day, Managing Director & CEO

For

per

sona

l use

onl

y

Forward‐Looking Statements Disclaimer

Forward‐Looking Statements

• This presentation has been prepared by Kagara Ltd This document contains background information about Kagara Ltd current at the• This presentation has been prepared by Kagara Ltd. This document contains background information about Kagara Ltd current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipientsshould conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

• This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, i it ti li it ti d ti i l ti t th h l f K Ltd h i j i di tiinvitation, solicitation or recommendation in relation to the purchase or sale of Kagara Ltd shares in any jurisdiction.

• This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in suchjurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction.

• This presentation does not constitute investment advice and has been prepared without taking into account the recipient's i bj i fi i l i i l d d h i i d d i i hi iinvestment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation arenot intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

• To the fullest extent permitted by law, Kagara Ltd, its officers, employees, agents and advisers do not make any representation or l h l b l l f fwarranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions,

estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

• This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Kagara Ltd. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and ASX Listing Rules, Kagara Ltd does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

2

For

per

sona

l use

onl

y

Disclaimer – Competent Person’s Statement

Competent Person’s Statement

• Information in this presentation that relates to Mineral Resources and Ore Reserves is based on and accurately reflects reports• Information in this presentation that relates to Mineral Resources and Ore Reserves is based on and accurately reflects reports prepared by Peta Libby, Ingvar Kirchner, Ian Hodkinson, John Banning, Andrew Beaton, Glengarry Resources NL – ASX Release April 2, 2008*, North Queensland Metals Limited Prospectus, page 22 – released to the ASX 9 November, 2006*, Liontown Resources Limited – ASX Release 23 April 2008*, Charlie Georgees and Ian Morrison. All these persons, except Peta Libby and Ingvar Kirchner, are full‐time employees of Kagara Ltd or the relevant subsidiary. Each Competent Person consents to the inclusion of material in the f d t t i hi h it All f th C t t P d M b f Th A t l i I tit t f Mi i dform and context in which it appears. All of the Competent Persons named are Members of The Australasian Institute of Mining andMetallurgy and/or The Australian Institute of Geoscientists and possess relevant experience in relation to the mineralisation being reported on by them to qualify as Competent Persons as defined in the Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition). * With respect to the resource statements for these projects, Kagara Ltd has relied on the veracity of the original resource statements.

• This Presentation, so far as it pertains to exploration results, ore and mineralisation, is based on information compiled by and as reported upon by Mr Joe Treacy, a full‐time employee of Kagara, who is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists and has over five years experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person

f h f h ‘ l f f l l l ’as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Treacy consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appears.

JORC – Exploration Targets

• It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this presentation relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is

3

uncertain if further exploration will result in the determination of a Mineral Resource.

For

per

sona

l use

onl

y

Presentation AgendaKZL 2011 Annual General Meeting

• Overview• Safety

KZL 2011 Annual General Meeting

Safety• 5‐Year Growth Strategy• Why Zinc• Management (Structuring for Success)• Queensland Exploration Focus:

• Targets for Resources Growth• 5‐Year Production Outlook:

• Zinc• Copper

• Progress to date and FY12 Guidance

4

For

per

sona

l use

onl

y

A key turning point in KZL’s 12‐year historyOverview – 2011 in Review

• Shareholder Communication: safety, exploration, capital, margins, asset review, communications• Strategic review of all assets completed: divestment of non‐core assets underway

A key turning point in KZLs 12 year history

g p y• Focus to reposition KZL to become an ASX‐100 company• 5‐Year Growth Strategy developed and successfully articulated• Management team strengthened, accountabilities assigned, remuneration aligned• Company‐wide business improvement programs commenced – protect and enhance margins• New capital management program to support growth• New reporting timetable and improved investor and shareholder communications

d b d d b• New corporate identity, branding and website• Increased broker coverage• Last two quarters have established production records for the business

5

For

per

sona

l use

onl

y

SafetyImproved safety performance a key priority for Kagara

• Improved safety performance at our Queensland Operations during the year• Reinvigorated and new programs and safety initiatives being implemented around hazard

Improved safety performance a key priority for Kagara

• Reinvigorated and new programs and safety initiatives being implemented around hazard identification and risk assessment as well as injury management and return to work programs

• Independent external audit of KZL’s HSE and Community Relations systems completed, data being used to enhance our operating systems across the business

6

For

per

sona

l use

onl

y

Cornerstone of our Growth StrategyA clear strategy to become a dominant ASX‐listed zinc and copper producerA clear strategy to become a dominant ASX listed zinc and copper producer

• 5‐year growth strategy based on:• Growing production to 120ktpa zinc + 30ktpa copperGrowing production to 120ktpa zinc 30ktpa copper• $50M program to build resource life• Structuring the business to become an ASX‐100 Company

• Immediate growth based on increased Zn + Cu production from North Queensland:I d d ti f lli t i d i• Increased production, falling costs, increased margins

• Strong and well managed project pipeline • Medium‐to‐longer term growth based on development of Admiral Bay (WA):

• Positioning KZL as a world‐leader in zinc, lead and silver• Preparing for future overseas expansion

• Divestment of non‐core assets to focus on growing North Queensland business• Capital management program to support production growth

Exploration and Project Optionality + Capital Flexibility + Team to Deliver

7

For

per

sona

l use

onl

y

Our Strategy for GrowthA clear three‐stage roadmap

H i 3 B d 2015H i 2 2012 14H i 1 2011 12

A clear three stage roadmap

Horizon 3: Beyond 2015Horizon 2: 2012‐14Horizon 1: 2011‐12

Growbeyond

Delivertoth

Buildingthe

th our ownbackyard

thestrategy

growthplatform

8

For

per

sona

l use

onl

y


Horizon 1: 2011‐12“Building the growth platform”


Building the growth platform• Get the strategy right and communicate it• Increase credibility with employees and investors• Develop the organisation to deliver results…consistentlyDevelop the organisation to deliver results…consistently• Develop and hone our skills through business improvement, technology, planning, etc• Never lose sight of safety, community or the environment in which we operate

9

For

per

sona

l use

onl

y


Horizon 2: 2012‐14“Deliver to the strategy”


Deliver to the strategy• Identify and mine longer life assets. Our first milestone:

• An 8‐12 yr production outlook• Tightly manage the capital project pipeline from studies to profitable operationsg t y a age t e cap ta p oject p pe e o stud es to p o tab e ope at o s• Reduce site controllable costs• Become the preferred Zn & Cu producer on the ASX• Position the company for growth outside of current operations

10

For

per

sona

l use

onl

y


Horizon 3: Beyond 2015“Grow beyond our own backyard”


Grow beyond our own backyard• Identify and mine longer life assets. Our second milestone:

• A 15+ yr production outlook• Ongoing reductions in site controllable cash costs to protect and enhance marginsO go g educt o s s te co t o ab e cas costs to p otect a d e a ce a g s• Complete assessment of Admiral Bay and its development timeframe• Develop as a regional leader in finding and developing assets throughout Australia and selected

SE Asian countries

11

For

per

sona

l use

onl

y

Why Zinc?A looming supply deficit…

• A metal with outstanding supply/demand fundamentals

A looming supply deficit…

• World consumption to double between 2009 and 2025 = 5.2% pa growth

• Growth driven by growing use of galvanized steel in Chinese and Indian constructionsteel in Chinese and Indian construction

• Significant market deficits likely beyond 2013• Supply‐side constraints due to anticipated

closure of several major Zn‐Pb mines, e.g. Brunswick, Century, Lisheen and Perseverance

• Brook Hunt forecasts 1,215kt will be removed from the market in 2011 and 1,189kt in 2012

1212

For

per

sona

l use

onl

y

Becoming One of Australia’s Largest Zinc ProducersOn a zinc equivalent basis, production to rise from 117ktpa to +200ktpaOn a zinc equivalent basis, production to rise from 117ktpa to +200ktpa

13

Source: Company filings, Broker researchNote: 1) Equivalent production calculation based on long‐term prices: US$0.86/lb for Zinc, US$0.89/lb for Lead, US$17.5/oz for Silver, US$2.5/lb for Copper, US$7.7/lb for Nickel, US$1,200/oz for Gold and US$40/lb for Uranium

2) Cash costs shown are post by product credits3) Excluding Mungana

For

per

sona

l use

onl

y

Becoming a Leading Global Zinc ProducerKagara will rank in the world’s top 20 within five yearsKagara will rank in the world s top 20 within five years

Leading global zinc producers by 2011 Zn production (paid metal)

Source: Company filings, AME

1414

For

per

sona

l use

onl

y

A strong company structure to underpin the growth…Management and StructuresA strong company structure to underpin the growth…

Managing Director & Chief Executive Officer

Geoff Day

EGM* Organisation EGM Finance EGM Corporate COO EGM Minerals and gDevelopment and SustainabilityPeter Gough

EGM Finance Flavio Garofalo

EGM Corporate Dave Peterson

COO Evan Spencer Business

DevelopmentJoe Treacy

• Executive Committee (ExCo) structure introduced with several recent senior appointments• Experience and skills – more than 150 years of combined experience at ExCo • Process and systems being introduced to enable KZL to become an ASX‐100 CompanyProcess and systems being introduced to enable KZL to become an ASX 100 Company

*EGM = Executive General Manager

15

For

per

sona

l use

onl

y

Minerals Group Structure Structure consistent with Mineral Resource and Ore Reserve Governance

EGMMinerals & Business

Structure consistent with Mineral Resource and Ore Reserve Governance

Minerals & Business DevelopmentJoe Treacy

General Manager Exploration

General Manager Resource Development

General Manager Mine Geology

16

For

per

sona

l use

onl

y

Operations Group StructureA disciplined and rigorous approach: from project evaluation through operations and closure

• Establish a clear structure for delivery• A clear toll‐gate process for project management from concept through to closure

A disciplined and rigorous approach: from project evaluation through operations and closure

• A clear toll‐gate process for project management from concept through to closure

Chief Operating OfficerEvan Spencerp

S di & P jProject Implementation

Studies & Projects(Design, Schedule, Costing)

j p&

Operational ReadinessOperations

17

For

per

sona

l use

onl

y

Accountability and Governance: Keys for DeliveryImproved governance around Mineral Resources and Ore Reserves

• Key components:R d R G C itt t bli h d

Improved governance around Mineral Resources and Ore Reserves

• Resource and Reserve Governance Committee established• Accountability to ensure management of Company assets underpinned by:

• appropriate level of support/resources (funding, time, soft/hardware, etc)• adequately trained/skilled personneladequately trained/skilled personnel• standardised and auditable practices (develop culture)• clear and reliable reporting format – credible, timely, accurate and JORC compliant

• Clear linkage to and embedded within project planning process from discovery through to closure

18

For

per

sona

l use

onl

y

A New Remuneration StructureBenchmarked against best practice for Top‐100 ASX companies

• Improved structure of risk and reward• Competitive nature of mining employment market – maintain acceptable retention / turnover ratio

Benchmarked against best practice for Top 100 ASX companies

• Two level approach to remuneration based on level within the organization• New structure designed to:

• Drive alignment between personal contribution and business objectives• Improve performance through enhanced incentives – encourage personal + team performance• Attract and retain talent• Improve visibility and management of (under)performance

For Manager Level and Above:• A 3‐tiered remuneration structure introduced:

• Base salary, reviewed annually• Short Term Incentive (STI) – Salary At Risk, agreed KPI’s based on business & personal

performance, annual cash payment, not accrued in the base salary entitlement• Long Term Incentive (LTI) – based on share price performance, incorporates retention incentive

For Superintendent Level and Below:• A ‘gain‐share’ model being developed • Paid quarterly based on company performance above budget

19

• Hurdles to entry include safety and industrial relations stability

For

per

sona

l use

onl

y

Three Queensland Production RegionsAn outstanding asset base to underpin the growth strategyAn outstanding asset base to underpin the growth strategy

• $50M spend over two years to rebuild KZL’s resource inventory

• Strategy has two key resource development milestones:• 8 12 ear prod ction profile (2 ears)• 8‐12 year production profile (2 years)• 15+ year production profile (within 5 years)

• Equates to ~10Mt of resources per region q p g(resources to reserve conversion of 70%)

• Aim for only 1 or 2 mining developments per region over the next decadeper region over the next decade

2020

For

per

sona

l use

onl

y

Zinc Deposits and ProspectsA healthy pipeline for growth

ZINC

A healthy pipeline for growth

Mungana

Balcooma

Vomacka

West 45

King Vol

DRS Balcooma Resource

Mt Garnet Resource

W l

Liontown Orient

Balcooma Extension

Montevideo

Thalanga DeepsBalcooma RegionalRed Cap / Morrison

Victoria

Waterloo

Agincourt

Balcooma ExtensionThalanga Deeps

Bald Hill

Waterloo ExtensionBalcooma DeepsPrices Dam

Nolans

Ivors

Tigertown, Cougar Town

Herberton Extension

2121

g , g

For

per

sona

l use

onl

y

Copper Deposits and ProspectsA healthy pipeline for growth

COPPER

A healthy pipeline for growth

Balcooma

Baal Gammon

Maitland

Einasleigh

Kaiser Bill

Griffiths Hill

Maitland

Kaiser Bill

Victoria

Thalanga RewardZillmantonZillmanton

Harpers

Balcooma Deeps

Herberton Extension

Red Hill

Shannons

Tartana

2222

For

per

sona

l use

onl

y

Chillagoe Region – Key Resources & Exploration TargetsThe engine room of Kagara’s zinc and polymetallic production growthThe engine room of Kagara s zinc and polymetallic production growth

• Key deposits include:King Vol – Probable Reserve:King Vol – Probable Reserve:• 1.3Mt @ 11.2% Zn, 0.7% Pb, 0.8%

Cu, 36 g/t AgKing Vol – Inferred Resource:

80k• 1.97Mt @ 14% Zn, 1.1% Pb, 0.9% Cu, 43 g/t Ag

Montevideo – Inferred Resource:• 0 72Mt @ 7 7% Zn 7 g/t Ag

80km

• 0.72Mt @ 7.7% Zn, 7 g/t AgVictoria – Inferred Resource:• 3.4Mt @ 5.1% Zn, 1% Cu, 22g/t Ag,

0.14g/t Aug• Currently in‐fill drilling King Vol to

increase reserve and extend deposit • Currently drilling Redcap with

i l ( 14 84 @encouraging results (e.g. 14.84m @ 12.2% Zn, 1.16% Cu, 1.8% Pb, 97g/t Ag)

• Multiple targets along Red Dome Mine Corridor (Griffiths Hill, Annie, Girofla,

23

( , , ,Red Hill)

For

per

sona

l use

onl

y

5‐Year Production Profile – Underpinned by ExplorationRegional resource growth targetsRegional resource growth targets

Northern Region: Polymetallic

24Note: the information on which this graph is based is provided in the Exploration Target summaries provided in slides 52-55 in the Supporting Tables at the end of this presentation. Refer to the disclaimer in the supporting tables. 24

For

per

sona

l use

onl

y

Central Mt Garnet Region – Resources & Exploration TargetsDriving Kagara’s copper production growth

• Key deposits include:Mt Garnet – remaining resource:

Driving Kagara s copper production growth

Mt Garnet remaining resource:• 683kt @ 6% Zn, 0.4% Cu,

13g/t AgBalcooma – copper reserve:

• 448 4kt @ 2 7% C 13 /t A• 448.4kt @ 2.7% Cu, 13g/t AgBalcooma – polymetallic reserve:

• 243kt @ 5.46% Zn, 1.5% Pb, 1% Cu, 0.1g/t Au, 25g/t Ag

Baal Gammon – current resource:• 5.5Mt @ 0.8% Cu, 0.2% Sn,

29g/t AgMaitland – current resource:Maitland current resource:

• 1.5Mt @ 1.5% Cu, 0.02% Mo• Currently drilling to re‐optimise open

pit design at Baal GammonSi ifi i l d l• Significant potential down‐plunge and along strike at Balcooma

• Maitland mineralisation open down‐plunge and down‐dip

25

p g p• Exciting exploration potential in the

Baal Gammon tenements

For

per

sona

l use

onl

y


Central Region: Polymetallic

2626Note: the information on which this graph is based is provided in the Exploration Target summaries provided in slides 52-55 in the Supporting Tables at the end of this presentation. Refer to the disclaimer in the supporting tables.

For

per

sona

l use

onl

y


Central Region: Copper


For

per

sona

l use

onl

y

Southern Thalanga RegionVMS Region with potential for multiple polymetallic deposits

• Thalanga pre‐mining resource = ~7Mt @ 12% Zn, 2.5% Cu, 3.8% Pb,

VMS Region with potential for multiple polymetallic deposits

West 45 ThalangaOrient

7Mt @ 12% Zn, 2.5% Cu, 3.8% Pb, 98g/t Ag, 0.62g/t Au

• Current resource = 1.51Mt @ 7.5% Zn, 2.4% Pb, 1% Cu, 55g/t Ag, 0.3% AAu

• Large untested system with significant potential remaining (no deep drilling or exploration since p g p1999)

• Highly prospective regional landholding with large database of exploration dataexploration data

28

For

per

sona

l use

onl

y


Southern Region: Polymetallic


For

per

sona

l use

onl

y

Generating Tomorrow’s GrowthMoving to longer life ore sourcesMoving to longer life ore sources

Red CapKing Vol Mungana

Polymetallic Ore300ktpa

Polymetallic Ore300ktpa

600ktpa

Polymetallic Ore250kt

Mount Garnet250ktpa

500ktpa

PolymetallicOre

CopperOre

500ktpa

EinasleighEinasleigh

Thalanga

OrientPolymetallic

Ore300ktpaBalcooma

250ktpa 250ktpa

CopperOre

500ktpa

Polymetallic Ore

Thalanga Deeps

Polymetallic

Liontown

Ore250ktpa

30

250ktpayOre

250ktpa

30

For

per

sona

l use

onl

y

Zinc: 5‐Year Production OutlookA well‐structured plan to reach 120ktpa productionA well structured plan to reach 120ktpa production

3131

For

per

sona

l use

onl

y

Copper: 5‐Year Production OutlookTargeting 30ktpa production within five yearsTargeting 30ktpa production within five years

3232

For

per

sona

l use

onl

y

A Pipeline of Options and OpportunitiesSupports continued growth…

ZINC

Supports continued growth…

West 45Baal Gammon

COPPER

Balcooma North

ENGINEERING

Filter upgrade

King Vol

Mungana Plant

Einasleigh (Cu)

Dry RiverKaiser BillRed Cap

Orient

Einasleigh (Zn)

Griffiths Hill

Maitland

VictoriaLiontown

CUF fl h fl ’

Waterloo

Red Hill

Zillmanton

HarpersMontevideoOre sorting

CUF flash float’n

3333

For

per

sona

l use

onl

y

Summary: Key Milestones for Kagara Over Next 12 months

Delivery onThe

StrategicExecutingFundingPlan forAdmiralB

Strategicvision

Define &

BayDivest

Non‐coreassets

Define &Communicate

Strategicvision

CurrentMarketV l

3434

Value

For

per

sona

l use

onl

y

Quarterly Production TrendFurther incremental improvements to production and costs in September Quarter

• Continued focus on production growth and cost control• Zinc production for Q1FY12 within upper end of guidance range

Further incremental improvements to production and costs in September Quarter

• Zinc production for Q1FY12 within upper end of guidance range• Copper production 3% lower but in line with plan and guidance• FY12 zinc production guidance = 53‐59kt• FY12 copper production guidance = 17‐20ktpp p g

3535

For

per

sona

l use

onl

y

Performance Improvement on TrackRecord total concentrate production for last two Quarters since KZL operations startedRecord total concentrate production for last two Quarters since KZL operations started

Production – metal‐in‐concentrate (’000t)Source: Wilson HTM Investment Group

36

For

per

sona

l use

onl

y

The Scorecard – FY12 Guidance

Q 1Guidance

Q 1Actuals

Q 2Guidance

Q 3Guidance

Q 4Guidance

Full Year Guidance

OPERATIONS

Copper GuidanceProductionUpper (kt) 6.0

5.7394.7 4.8 4.5 20.0

5.739Lower (kt) 5.2 3.9 4.0 3.9 17.0CostUpper (c/lb) N/A 1.61Lower (c/lb) 1.55Zinc GuidanceProduction Upper (kt) 18.3

17.79015.1 15.0 10.6 59.0

Lower (kt) 17.0 13.8 12.6 9.6 53.0CostUpper (c/lb) N/A 0.75Lower (c/lb) 0.72

EXPLORATION

Expenditure ($M) 7.5 5.42 6.0 6.0 6.5 26.0Metres Drilled (m) 39,000 26,000 30,000 30,000 35,000 134,000

RESOURCE GROWTH

Inferred (mt) N/A 3.0 N/A 3.8Indicated (mt) 5.2 5.2

FINANCE

37

EBITDA Upper ($M) N/A 72.0EBITDA Lower ($M) 54.0

For

per

sona

l use

onl

y

2011 Annual General Meeting

38

Perth –Thursday, 20 October 2011

Geoff Day, Managing Director & CEO

For

per

sona

l use

onl

y

Resources and Reserves Tables – 2011

39

For

per

sona

l use

onl

y


40

For

per

sona

l use

onl

y


41

For

per

sona

l use

onl

y


42

For

per

sona

l use

onl

y


43

For

per

sona

l use

onl

y

Thalanga Regional – Exploration Target SummaryResource growth targets: Southern Thalanga Region

ProspectCurrent Resource (Mt)*

2 Year Target (Mt)

Target Zinc Grade

5 Year Target(Mt)

Target Zinc G d

Conceptual Target (Mt)

Target Zinc Grade

Resource growth targets: Southern Thalanga Region

(Mt)* Target (Mt) Grade (Mt) Grade Target (Mt) Grade

Thalanga 1.7 2.8 – 3.8 7‐10% 4.8 – 5.8 7‐10% 6.5 – 7.5 7‐10%

Liontown 1.8 2.3 – 3.3 7‐10% 3.3 – 4.3 7‐10% 4.5 – 5.5 7‐10%

Waterloo 0.7 0.7 – 1.7 7‐10% 1.2 – 2.2 7‐10% 2.5 – 3.5 7‐10%

Regional Exploration 7‐10% 7‐10% 7‐10%

TOTAL 4.2 5.8 – 8.8 7‐10% 9.3 – 12.8 7‐10% 16 – 20 7‐10%

(assuming 70% conversion of resources to reserves)

2.9 4 – 6 7‐10% 7 – 9 7‐10% 11.2 – 14.0 7‐10%

Milling life (assuming 600,000tpa milling rate)

5 7 – 10 7‐10% 11 – 15 7‐10% 19 – 23 7‐10%

JORC – Exploration TargetsIt is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this table relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or R ( ) h t b d i thi t t Th t ti l tit d d i t l i t i th h b i ffi i t k l t d t

4444

Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

* Inclusive of reserves where applicable. See full Resource and Reserves Table in Supporting Tables Appendix, slides 38‐41

For

per

sona

l use

onl

y

Mt Garnet Polymetallic – Exploration Target SummaryResource growth targets for Central Mt Garnet region


2 Year Target (Mt)

Target Zinc Grade

5 Year Target(Mt)

Target Zinc Grade


Target Zinc Grade

Resource growth targets for Central Mt Garnet region

(Mt)* (Mt) (Mt)

Balcooma 2.2 2.7 – 3.7 7‐10% 3.7 – 4.7 7‐10% 4.5 – 5.5 7‐10%

Mt G t 0 7 0 7 1 7 7 10% 1 2 2 2 7 10% 2 5 3 5 7 10%Mt Garnet 0.7 0.7 – 1.7 7‐10% 1.2 – 2.2 7‐10% 2.5 – 3.5 7‐10%

Bald Hill 0 0 – 1 7‐10% 0.5 – 1.5 7‐10% 1.5 – 2.5 7‐10%

Regional Exploration 0.5 7‐10% 0.5 7‐10% 1.5 – 2.5 7‐10%

TOTAL 2.9 3.9 – 6.9 7‐10% 5.9 – 8.9 7‐10% 10 – 15 7‐10%


2.0 3 – 59 7‐10% 4 – 6 7‐10% 7.0 – 9.8 7‐10%

Milling life 8 1 9 0% 1 2 0% 28 0 39 2 0%(assuming 250,000tpa

milling rate)8.1 11 – 19 7‐10% 17 – 25 7‐10% 28.0 – 39.2 7‐10%


4545



For

per

sona

l use

onl

y

Mt Garnet Copper – Exploration Target SummaryResource growth targets for Central Mt Garnet region


2 Year Target (Mt)

Target Copper Grade

5 Year Target(Mt)

Target Copper Grade


Target Copper Grade

Resource growth targets for Central Mt Garnet region

(Mt) (Mt) Grade (Mt) Grade Grade

Balcooma 1.1 1.9 – 2.9 2– 4% 2.9 – 3.9 2 – 4% 5.9 – 6.9 2 – 4%

Maitland 1.5 1.5 – 2.5 2 – 4% 2 – 3 2 – 4% 2.5 – 3.5 2 – 4%

Griffiths Hill Copper Zone 1.1 1.1 – 2.1 2 – 4% 1.6 – 2.6 2 – 4% 2.1 – 3.1 2 – 4%

Baal Gammon 0.5 0.6 – 1.6 2 – 4% 1 – 2 2 – 4% 1.5 – 2.5 2 – 4%

Einasleigh 0.6 – 1.6 2 – 4% 2.5 – 3.5 2 – 4% 0.5 2 – 4%

Regional Exploration 1.5 – 2.5 2 – 4% 4.5 – 5.5 2 – 4% 6.5 – 7.5 2 – 4%

TOTAL 4.2 7.2 – 13.2 2 – 4% 14.5 – 20.5 2 – 4% 24 – 29 2 – 4%


2.9 5 – 9 2 – 4% 10 – 14 2 – 4% 16 – 20 2 – 4%

Milling lifeMilling life (assuming 500,000tpa milling rate)

5.9 10 – 18 2 – 4% 20 – 24 2 – 4% 33 – 40 2 – 4%

JORC – Exploration TargetsIt is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this table relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if

4646

The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

* Inclusive of reserves where applicable. See full Resource and Reserves Table in Supporting Tables Appendix, slides 38‐411 The Einasleigh sale is subject to shareholder approval by Copper Strike at a meeting to be held on October 14th, 2011

For

per

sona

l use

onl

y

Chillagoe – Exploration Target SummaryResource growth targets for Northern Chillagoe Region


2 Year Target (Mt)

Target Zinc Grade

5 Year Target(Mt)

Target Zinc Grade


Target Zinc Grade

Resource growth targets for Northern Chillagoe Region

(Mt) (Mt)

Mungana 0.5 0.2 – 1.2 7‐10% 1.5 – 2.5 7‐10% 1.5 – 2.5 7‐10%

King Vol 3.3 4.5 – 5.5 7‐10% 6.5 – 7.5 7‐10% 9.5 – 10.5 7‐10%

Victoria 3.4 4.5 – 5.5 7‐10% 6.5 – 7.5 7‐10% 9.5 – 10.5 7‐10%

Red Cap / Morrisons 1 – 2 7‐10% 2.5 – 3.5 7‐10% 4.5 – 5.5 7‐10%

Montevideo 0.7 0.7 – 1.7 7‐10% 1.2 – 2.2 7‐10% 2.5 – 3.5 7‐10%

Regional Exploration 0.5 7‐10% 0.5 7‐10% 2.5 – 3.5 7‐10%

TOTAL 7.0 11.4 – 16.4 7‐10% 18.7 – 23.7 7‐10% 30 – 36 7‐10%


5.5 8 – 11 7‐10% 13 – 17 7‐10% 21 – 25 7‐10%

Milling lifeMilling life (assuming 850,000tpa milling rate)

6.5 9 – 14 7‐10% 15 – 20 7‐10% 25 – 30 7‐10%


4747



For

per

sona

l use

onl

y

Documents

For personal use only - Home - Australian Securities ... personal use only Disclaimer – Competent Person’s Statement Competent Person’s Statement • ... • Tiggtyhtly maaagenage