Mt Carbine Tungsten Mine

Mt Carbine Tungsten MineFar North Queensland

August 2010

Icon Resources

Icon Resources Ltd (ASX: III)

Icon Resources

DisclaimerThe information in this presentation is published to provide information about Icon Resources Ltd (Icon) and its subsidiaries. All reasonable effort has been made to provide accurate information, but we do not warrant or represent its accuracy and reserve the right to make changes to it at any time without notice.

To the extent permitted by law, Icon accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation

Competent Person’s StatementInformation in this presentation that relates to Exploration Results is based on information compiled by Dr John Bishop, who is a member of the Australian Institute of Geoscientists. John is a full-time employee of Icon and has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Bishop consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Scheelite fluoresces under ultraviolet light. ‘Iron Duke’ lode, Mt Carbine


Emerging Tungsten Producer

ASX-listed - code IIINear-term tungsten producer and diversified mineral explorerKey focus: re-opening of the Mt Carbine tungsten mineExperienced, technical board and management

Dr Leon Pretorius, Chairman

Dr John Bishop, Managing Director

Dr Andy White, Non-exec. Director

Steve Bartrop, Non-exec. Director

Ian Sheffield-Parker, Project Manager

Darcy Milburn, Exploration Manager


What is Tungsten?

A metal with several unusual properties (chemical symbol W)

High melting point (3,400oC)Very heavy (≡ gold)Hardness (as tungsten carbide) second only to diamonds

No known substitute for many usesApplications include:

‘Hard metal’ cutting/drilling toolsHigh-speed steels, alloysLight globe filamentsMobile phones, smart windows, new technologies, aviation & military


Tungsten: A Strategic MetalChina has declared tungsten a ‘strategic metal’ with export quotasEuropean Commission declared tungsten a ‘critical raw material’

“High supply risk”“Global demand pressures due to developing economies & emerging technologies”

China dominates global tungsten production, has ~65% of global reserves (with current forecast to last just 20 years) China is a net importer with tungsten demand expected to grow by 8% in 2010


Supply & Demand IssuesEssential to modern manufacturing, demand is predicted to increase as developing nations increase their manufacturing capabilitiesRoskill predicts >12% supply shortage in 2015No current Australian producersTungsten remains under the radar of most Australian analysts

Supp

ly &

Dem

and

(tonn

es)

Supp

ly le

ss D

eman

d (to

nnes

)


Tungsten Pricing

Tungsten currently traded by contractsTungsten pricing referenced by ammonium paratungstate (APT)Raw concentrates 70-75% APT priceCurrent prices already at pre-GFC levels (on the way up)London Metal Exchange has indicated it will soon trade tungsten

US$/

mtu

*100 metric tonne units (mtu) = 1 tonne

5 yr APT Price Chart

$


Mt Carbine History

Historically one of the world’s largest tungsten minesProduced premium wolframite and scheelite concentratesResponsible for 40% of annual Australian tungsten production Closed mid-eighties as China flooded the market and price collapsedOpen cut mine with underground operation partially developed at mine closure


Mt Carbine Today

Granted Mining Leases Mine site is ~45 minutes drive to Port Douglas, 1.5 hours to Port of CairnsSealed roads and mains power pass through mine leasesSeveral options for waterEnvironmental approvals in placeExisting tailings storage facilities with several years capacity


Mt Carbine Current Works

Positive Scoping Study 2009 confirmed project viability (NPV = 33¢ per share)Increased, JORC-compliant Resource due Sept Qtr 2010Testing of ore-sorters and metallurgical processing underwayParallel investigation into production from dumps and tailings dam materialsHard-rock pre-feasibility due March Qtr 2011


Understated Opportunity

Model grade comparison with historical records suggest in situ grade is 20% higher than estimatedMining, ore-sorting, processing technology much improved in last 25 yearsAchievable 50% increase in tonnage Utilisation of existing dumps and tailings dams for early and increased output with low capex


Mt Carbine Prospects

Scoping Study modelled:

1.5Mtpa open cut with strip ratio of 1.7:1Resource of 7.2Mt @ 0.21% WO3

Producing ~2350t WO3 /yr

Excellent potential to increase life of mine

Access to adjacent mineralisationExisting decline partially developed for underground operation Model of diamond drilling completed July. All holes intersected

mineralisation. Legacy drilling in black, Icon drilling in purple.


Increasing the Resource

~5km diamond drilling (HQ core) completed July 2010, awaiting assaysResults will be used to upgrade resource and produce revised mining model Sept 2010Visible mineralisation intersected in all drill holes


More Sources of Ore

Untested resource potential within Carbine Hill, beneath old workingsWaste dump of ~12Mt with reported grade of 0.07% WO3. Bulk ore-sorter tests starting Sept 2010Reject dump of ~6Mt. Bulk ore-sorter tests Sept 2010Tailings dams of ~2Mt @ 0.11% WO3 (JORC-compliant)


Tailings Dams & Dumps

Recent metallurgical advances have opened up a market for low-grade concentratesOpportunity to produce mixed concentrates from waste dump fines and tailings damsLow capex, fast start - Dec 2010

Above, looking across the tailings dam to mine operations circa 1986. Below, #4 Tailings dam (plan view) ~1.8Mt @~0.1% WO3, pseudocoloured grade & thickness


Further Potential

Recently acquired 2 EPMs surrounding and adjacent to Mt CarbineEPMs contain old tungsten workings with no modern explorationAnomalous tungsten in soils identified in recent initial field surveysAcquisition facilitates potential extension to mining lease


Timelines


Tungsten Outlook“Western world future supply ‘desperately thin’ & limited number of projects” (PDAC, March 2009)“Tungsten - the next sexy metal?” (Strictly Boardroom, August 2009)“Increasing deficit in tungsten from 2013” (Roskill, September 2009)“In 2012, it will be tin, tungsten & molybdenum” (CRU, October 2009)“Tungsten a ‘critical’ raw material” (European Commission, June 2010) “China’s demand to increase 8% in 2010” (Investing in Tungsten, July 2010)

Source: European Commission, June 2010.

Sup

ply

Risk

Economic Importance

W

CRITICAL


Immediate OpportunityMt Carbine was a world-class tungsten mine, with excellent potential to be so againTailings/dumps production scheduled to be operational December 2010/Jan 2011Hard-rock resource upgrade scheduled Sept Qtr 2010 with start-up planned early 2013Tungsten supply forecast to be in deficit from 2013Icon share price does not reflect the value of the project


Corporate Details

•Shares

~104M shares on issue

23M unlisted options

Current share price ~7¢

Market cap ~$7M

Mt Carbine open cut, 1986

Documents

Mt Carbine Tungsten Mine