1
AguablancaAguablanca
MineMine
2
LOCATION
SPAINSPAIN
Huelva
AguablancaAguablanca• Located in mining-friendly
EU country
• Excellent infrastructures
(roads, ports, airport,
power, airport, etc.)
• 75 Km from Seville
• Close to European
suppliers & customers
• Skilled, stable workforce
AguablancaAguablanca
MineMine
3
Infrastructure
Open Pit Clear Water Dam
UG Portal
Tailing Dam
ProcessPlant
Offices WasteDump
4
Open Pit Operation
• Conventional OP operation.
• Three push-backs.
• 8-meter benches (100% blasting).
• Equipment on Waste - (2 KOM PC2000/2 KOM PC 1250/CAT777 or KOM785 trucks)
• Equipment on Ore – (FH1200 (CAT777 or KOM785 trucks).
• 7.2 Mm3 budgeted for 2008 - 5 day/week shift regime - 20h/day.
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Ore Processing Plant
• Conventional Crushing-Grinding-Flotation plant.
• Initial capacity 1.5 Mtpa 1.8 Mtpa in 2007 2.1 Mtpa in 2008.
• Bulk flotation Ni + Cu (prepared for differential).
• 75-81% Ni recovery (depending on head grades).
• 7-8% Ni and 7-9% Cu in concentrate.
• Operates a 7 day/week - 24h/day.
• 1.0 Mt treated in 2005 - 1.5 Mt in 2006 – forecast 1.7 Mt in 2007
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Reserves & Resources
UppeUppe
rr
bodybody
DeeDee
pp
bodbod
yy
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2007 Highlights
• Throughput capacity increase 1.5 to 1.7 Mtpa (Completed)• YTD processed 1.26 Mtof ROM ore (+20% cf 2006)• YTD Ni production 4,940 t (+ 178 t cf 2006)• YTD Ni concentrate grade 7.21% (+8.2% cf 2006)• YTD Cu concentrate grade 6.92% (+2.2% cf 2006)• YTD Tailings grade @ 0.13% Ni (cf 0.18% in 2006)• Improve Availability Plant - PMP in SAP (80% achieved)• Increase waste mining rate (2.1 to 4.6 Mm3pa) • Definition of UG orebody – drilling 10km (>13,000 completed)• U/G design and reserve statement (95% done for U/Body)
(Drilling Deep body)
• Implementation of OSHAS 18001 (Internal audit 09/07)
YTD refers to the period (January – September 2007)
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Production Profile 2007
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 (*) TOTAL Variance
2006 2006 2006 2006 2006 2007 2007 2007 2007 20072007-
2006
Milled Ore (tonnes) 314,730 359,681 374,963 418,634 1,468,008 406,749 422,925 433,178 422,926 1,685,778 15%
Head Grade (%Ni) 0.68% 0.61% 0.60% 0.54% 0.60% 0.54% 0.54% 0.48% 0.57% 0.53% -12%
Head Grade (%Cu) 0.54% 0.49% 0.51% 0.47% 0.50% 0.45% 0.41% 0.38% 0.41% 0.41% -18%
Nickel Prod. (tonnes) 1,607 1,613 1,542 1,635 6,397 1,631 1,730 1,590 1,822 6,773 6%
Copper Prod. (tonnes) 1,548 1,596 1,697 1,775 6,616 1,645 1,569 1,535 1,561 6,310 -5%
Ni Recovery (%) 75.36% 73.22% 68.02% 72.28% 72.18% 74.02% 76.33% 77.09% 75.74% 75.78% 5%
Cu Recovery (%) 90.94% 91.21% 88.24% 90.99% 90.31% 90.75% 91.14% 92.08% 90.98% 91.22% 1%
Conc. Grade (%Ni) 7.07% 6.58% 6.35% 6.38% 6.58% 7.26% 7.33% 7.04% 7.51% 7.29% 11%
Conc. Grade (%Cu) 6.81% 6.50% 6.99% 6.92% 6.81% 7.32% 6.65% 6.80% 6.44% 6.79% 0%
REGISTERED RESULTS
(*) Real Oct results + Nov&Dec forecast
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Short Term Planning
• Increase processing capacity in 2008 (1.8 to 2.1 Mtpa - Capex @ US$ 10.8M)
• Process 1.8 Mtonnes in 2008 and 2.1 Mtonnes in 2009
• Capex to start up of U/G production 6.6 M USD
• Mine 100 Ktonnes @ 0.55% Ni & 0.58% Cu from U/G in 2008.
• Develop processing of Oxide Stockpile (> 1.0 Mt)
• Implementation of the ISO 14001
* Excludes 2.3 MUSD Exploration
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Underground Design
•Selected sub-level open stoping method with cemented aggregate fill.
•Standard mining equipment is used.
•Stope - 20m x 20m x 25m high (30m floor to floor).
•Sequence is conservative.
•Systematic ground support planned.
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UNDERGROUND DESIGNUpper
Orebody Data
• Sublevel Stoping with CRF.
• Paste Fill being evaluated and potential for OPEX reduction (~6 $/t).
• Production hoisted through the existing adit by trucks.
• Prepare Deep orebody infrastructure whilst Upper orebodyproduces..
• Contractor tenders now available for adjudication.
Unit 2008 2009 2010
Capex 000 USD 6,638 0 0
Ore hoisted tonnes 102,005 220,153 202,700
Ni grade % 0.55% 0.65% 0.77%
Cu grade % 0.58% 0.65% 0.74%
Unit operating cost USD/ore tonne 58.96 44.93 50.76
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Production Profile
Ni & Cu Metal Production
(tonnes)
Open pit & U/G
Aguablanca Exploration-Spain
Aguablanca Mine (Ni-Cu-PGE)Aguablanca Mine (Ni-Cu-PGE)The newest and largest Ni sulphide mine in Western EuropeThe newest and largest Ni sulphide mine in Western Europe
• 1983 Granting Provisional State Reserve
• 1989 JV agreement Presur and Rio Tinto Minera (later Atlantic Cooper)
• 1993 Discovery of the Aguablanca Ni bearing gossan
• 1994-1996 RTM completed a PFS including 33,000 m of drilling.
• 2001 RNGM acquired Aguablanca
• BFS completed by July 2002
• Construction started in early 2003
• First concentrate produced on Dec 2004
Aguablanca Exploration-History
Aguablanca Exploration-Spain
Aguablanca Reserves and Resources Summary
Nickel/Copper - Aguablanca (0.2% Ni cut-off) YE 2006
Category Tonnes
(000)
Ni(%)
Cu(%)
Contained
Ni (Tonnes)
ContainedCu (Tonnes)
P + P 11,500
14,800
0.60
0.58
0.47 69,100
86,400
54,400
M + l 0.48 71,400
Inferred 4,700 0.40 0.31 18,800 14,400
A open pit optimization plan is currently underway as well as an economic study for an UG mining operation.
Reserves
Resources
2007 Exploration Main objective: to expand and upgrade existing resources and discover new
satellite orebodies
• US$2.9m budget including 15,500 m of drilling.
• Three UG rigs currently running. 14,725 m completed to date.
• Drilling focused on the Deep Body where a 25x25 infill drilling program is now being finalized.
• A 635 line Km VTEM airborne survey completed plus borehole and surface EM surveys.
Aguablanca Exploration-Spain
2007 Exploration Highlights
Aguablanca Exploration-Spain
Nickel sulphide explorationThis is what we are looking for..
Nickel sulphide explorationThis is what we are looking for..
Massive sulphides at the Aguablanca Deep Body: 2,20 meters at 6,3% Ni and 1,5 % Cu.
Massive sulphides at the Aguablanca Deep Body: 2,20 meters at 6,3% Ni and 1,5 % Cu.
• Wide and continuous intervals of disseminated and semimassivesulphide mineralization defined at the Deep Body indicating an strong UG mining potential.
• 200 m proven strike length but still open to the east. Average true thickness around 20 m. Weighted average grades of 0,9% Ni and 0,6% Cu plus Pt+Pd+Au credits.
• Several new VTEM and off hole conductors delineated and ready for drill testing.
Aguablanca exploration potential
Aguablanca Exploration-Spain
Mainorebody
DeclineDeclineGabbroGabbro
Deep Body(projected from -50 m level)
PitOutlinePitOutline
Northorebody
Discovery hole 1085.30m at 0.94% Ni+0.41% Cu
¹
7400 E
7425 E
7450 E
OPEN
100 m
5400 N
5300 N
5300 N
7200 E
7300 E
7400 E
7500 E
Deep Body –50m Level Map
Aguablanca Exploration-Spain
Ni mineralization >0.5%
AGU-106114.30 m @ 0.77 % Ni, 0.80 % CuInc. 3.20 m @ 1.16 % Ni, 0.82 % Cu
AGU-107934.10m @ 1.05 % Ni, 0.91 % CuInc. 15.80 m @ 1.4 % Ni, 0.76 % Cu
AGU-108745.80m @ 1.23 % Ni, 0.95 % CuInc. 20.35 m @ 1.75 % Ni, 1.03 % Cu
AGU-107857.30m @ 0.91 % Ni, 0.84 % CuInc. 13.20 m @ 2.04 % Ni, 1.25 % Cu
AGU-106018.00m @ 0.84 % Ni, 0.62 % CuInc. 3.90 m @ 2.09 % Ni, 0.76 % Cu
CompletedDrill-holes
>0.5 % NiCut-off
¹
50 m
AGU-10837.00m @ 1.76 % Ni, 0.72 % CuInc. 5.40 m @ 2.15 % Ni, 0.71 % Cu
AGU-109817.95m @ 1.04 % Ni, 0.72 % Cu
AGU-108619.65m @ 0.92 % Ni, 0.56 % Cu
AGU-10957.85m @ 1.21 % Ni, 0.65 % Cu
Aguablanca Exploration-Spain
AGU-1058
AGU-1056
AGU-1027
AGU-1025
AGU-1006
AGU-1007
AGU-1013AGU-1009
AGU-1048
400m
300m
200m
100m
00m
6758
AGU-10
6544
AGU-27 6507
6714
66096630
67456744
6749
5500 N
5600 N
5200 N
Open pitPhase-3
S
N
AGU-1060
AGU-1062
AGU-1093
AGU-1090
AGU-1011
5100 N
Deep Body Section 7350 E
Cut-off
>1.0 % Ni
>0.5 % Ni
Underground Drilling 2006
Underground Drilling 2007
AGU-105811.30m @ 2.23 % Ni, 1.20 % CuInc. 10.20 m @ 2.39 % Ni, 1.24 % Cu
AGU-109334.00m @ 0.60 % Ni, 0.45 % Cu
AGU-105626.00m @ 0.85 % Ni, 0.57 % CuInc. 12.40 m @ 1.26 % Ni, 0.65 % Cu
AGU-109039,40 @ 0.73 % Ni, 0.80 % CuInc. 11,45 m @ 1,32% Ni, 0.88%Cu
AGU-106018.00m @ 0.84 % Ni, 0.62 % CuInc. 3.90 m @ 2.09 % Ni, 0.76 % Cu
• US$6m total Ni exploration budget including 26,400 m of drilling.
• 20,400 m allocated to UG drilling and surface near mine exploration.
• 6,000 m allocated to regional exploration mostly to drill testing the newly generated VTEM anomalies.
• Detailed surface and borehole EM surveys to better define drill targets.
Aguablanca - 2008Nickel Exploration
Nickel Targets
Aguablanca Regional Exploration-Spain
•Predominant land position -2564 km2 -in one of Europe’s most prospective and pro-mining regions.
•Wide intervals of low grade, disseminated magmatic sulphidemineralization already intersected at Cortegana, Argallón and Calzadilla.
•Narrow high grade drill intercepts at Cortegana returned up to 1.36% Ni and 0.2% Cu.
•US$ 1,7 m exploration budget for 2007 comprising 2478 line Km airborne VTM survey; ground and borehole EM surveys and 5000 m of drilling.
Airborne magnetic map with main Ni projectsAirborne magnetic map with main Ni projects
•Multiple VTEM anomalies already identified in the 6 covered areas. Drill testing will commence early next year.25 Km
CAMPILLO DE LLERENA
CAMPILLO DE LLERENA
AGUABLANCA MINE
AGUABLANCA MINE
CALZADILLACALZADILLA
CORTEGANACORTEGANA
ARGALLON ARGALLON
SIERRA LEON SIERRA LEON
RIBERA DELFRESNO
RIBERA DELFRESNO
An emerging new nickel belt with strong exploration potential.An emerging new nickel belt with strong exploration potential.
Aguablanca Exploration-Spain
1Km VTEM conductors
AGUABLANCA
MINE
AGUABLANCA AGUABLANCA
MINEMINE
Magnetic first vertical derivative¹
Portugal - Mine site and
Regional Exploration
• Summary of 2007 Results
–Neves Corvo Minesite Exploration
–Aljustrel Minesite Exploration
–Regional Exploration
Neves CorvoMinesite Exploration
• 2007 Goals– Infill Lombador South Zinc Zone (LSZZ)
to upgrade Inferred tonnes to Indicated;
– Expand LSZZ Inferred resource.
LSZZ Drill Intersections
Drillhole From (m) To (m) Interval (m)
Est. True
Width (m) Pb % Zn %
ND20A-1 696.0 731.0 35.0 34 3.2 9.4
NE18C-3 747.0 777.0 30.0 28 2.5 8.1
NF22A 911.0 966.0 55.0 53 2.5 8.5
NF22A-1 901.0 936.0 35.0 35 0.7 7.7
NF24 902.0 960.0 58.0 58 2.6 8.7
NF24A-1 893.0 938.5 45.5 45 2.5 9.0
NF34 1,151.8 1,219.0 67.2 67 2.9 8.0
NG20 863.0 895.0 32.0 30 2.4 9.8
Plan Showing Deposits with Existing Underground
Development
Lombador
Neves
Graça
Corvo
3 km
Zambujal
LSZZ
LSZZ 2006 Resource Shape
55m @ 8.51% Zn
67m @ 8.03% Zn
16m @ 3.92% Cu
270 m
etres
Neves CorvoMine Lease
GREY: Inf 8.3 Mt @ 7.7% Zn
All at 3.3%Zn cutoffGREY: Inf 8.3 Mt @ 7.7% Zn
3.3%Zn cutoff
2006 Neves-CorvoZinc Resource
Zinc resources were estimated using a 3.3% cut-off.
The indicated resources are inclusive of those mineral resources
modified to produce the mineral reserve
1,397
1,887
1,827
60
Contained
000’s of tonnes
1324.861.2Measured
4,0286.2029.4Indicated
4,1606.1530.6M+I
3,0805.4925.5Inferred
Metal
Million pounds
Zinc Grade (%)
Tonnes (Mt)
1,397
1,887
1,827
60
Contained
000’s of tonnes
1324.861.2Measured
4,0286.2029.4Indicated
4,1606.1530.6M+I
3,0805.4925.5Inferred
Metal
Million pounds
Zinc Grade (%)
Tonnes (Mt)
Resource Expansion Potential
700 metres
620 metres
100m massive
sulphide
47m @ 4.2% Zn
stockwork
55m @ 8.51% Zn
67m @ 8.03% Zn
Lombador
Neves
Corvo
Resource Expansion Potential
Aljustrel Mine Site Exploration
• 2007 Goals
– Infill and expand Feitais deposit;– Infill Estação deposit.
Feitais Deposit Expansion
Added in 2007
Target Area
For 2008
Feitais and EstaçãoDeposits
615 metres
590 metres
Feitais – conversion of
Inferred to Indicated,
Expansion of Inferred
Estação – infill drilling,
Step-outs to determine
Deposit limits
Represa
Fault
Regional Exploration
• 2007 Goals– Complete compilation and organization
of historical exploration data;– Complete levelling of historic gravity
data;– Drill test priority areas;– TEM orientation and surveying;– AirFTG survey.
LombadorTEM
Estação Inverted TEM Section
Completed and Planned AirFTG
Survey Completed
October 2007
Proposed AirFTG
Expansion
Aljustrel
Neves Corvo