The Mindarie Zircon Project

Transcription

1 The Mindarie Zircon Project Exploration to Production Gerard Bosch Exploration Manager Australian Zircon NL SA EXPLORERS CONFERENCE 30 November 2007

2 Murray Basin exploration & development 1960 s : Vic, SA, NSW government water searches 1969: Kerang quarry, Vic. early 1970 s: strandline discoveries Boort, Vic. late 1970 s: improved commodity prices; coarse-grained strandline discoveries Tyrrell Ridge Vic. 1982: CRA discovery of large fine-grained WIM-style deposit near Horsham Vic during coal exploration. mid late 1980 s: further strandline and WIM-style discoveries, Vic & NSW. 1989: Aberfoyle Resources Ltd discovers Mindarie strandline deposits. mid 1990 s 2007: renewed interest driven by higher zircon / rutile prices; numerous discoveries. 2000: Wemen operations Vic, RZM / Aberfoyle 2005: Pooncarrie operations NSW, Bemax Resources Ltd 2006: Douglas operations Vic, Iluka Resources Ltd 2007: Mindarie operations SA, Australian Zircon NL

3 Why focus in South Australia? South easterly longshore drift in Tertiary times left residual high concentrations of zircon, the most stable and heaviest of the resistate minerals, along the north westerly extensions of many of the Murray Basin strandlines. MASSIDON The Mindarie Zircon deposits, in the Basin s west, have very high zircon to titanium ratios. Strandlines in the west average 19 % Zr compared with 10% for those in the east of the Basin. Different geological processes related to the interaction of headlands and open marine environments resulted in the WIM150 resources also having high zircon to titanium ratios. 3

4 Why focus on zircon? Independent industry analyst TZ Minerals International expects the zircon supply market to remain tight for the next several years. At current zircon prices for high quality ceramic grade zircon, approximately 70% of the Mindarie Mine s revenue will be derived from the zircon stream. Subject to completion of a favourable Bankable Feasibility Study, zircon sales revenue is also expected to constitute the majority of the revenue from WIM150. TZMI The Global Zircon Industry: Outlook to 2015, July Australian Zircon s resources and reserves are, on a world scale, particularly zircon rich

5 Projects & Tenements Australian Zircon maintains a strategic holding within the western part of the Murray Basin. The Company holds Exploration Licenses totaling 16,000 square kilometres in the west and northwest of the Basin (AZC 100%). Holdings also include Mineral Leases and Miscellaneous Purpose Licenses covering 86 square kilometres in the Mindarie Project Area (AZC 100%). In the southeast of the Basin, Australian Zircon is earning an 80% beneficial interest in the WIM150 resource, currently owned by Austpac Resources NL. 5

6 Strandline & Resource Location Arcuate linear features reflecting successive stranded coastlines Strand plain evident in SRTM, processed airmagnetics, Landsat, thermal imagery Exploration based on stratigraphic interpretation, geophysics 6

7 Deposit Characteristics hosted in late Miocene Pliocene Loxton Parilla Sands unit (transgressive marine and paralic formation largely nearshore / shore) positioned on coarse-grained surf zone sands 4 seaward slope average 2.5m thick, m wide, 7 25km long, 12m cover high grade core / base average assemblage 19% Zr, 5% R, 6% Lx, 66% Ilm, 11% slimes above water table

8 Deposit Characteristics Modern Analogue Mindarie A2 Starter Pit

9 RESERVES & RESOURCES RESOURCES (1% THM cut-off) MT % THM % Slimes % Zircon % Leucox % Rutile % Ilmenite MEASURED INDICATED INFERRED RESERVES (variable cut-off) MT % THM % Slimes % Zircon % Leucox % Rutile % Ilmenite PROVED PROBABLE TOTAL PROVED AND PROBABLE Resources & Reserves calculated by Snowden Mining Industry Consultants Pty Ltd on behalf of Australian Zircon NL

10 10 Mindarie Zircon Project Mining

11 Mindarie Zircon Project Mining Overburden Removal Ore Mining

12 Mindarie Zircon Project Post Mining - Farmland Rehabilitation Australian Zircon is committed to rehabilitate the land it disturbs to a high standard and it has a significant program of rehabilitative work scheduled. Where modern rehabilitation techniques have been used elsewhere in the region, restoration of the land after mining has been effective, as is evident below. 12 Representatives of Primary Industries and Resources and local landowners join Australian Zircon in an inspection of crop trials on rehabilitated land

13 Mindarie Zircon Project Processing 13

14 Mindarie Zircon Project Primary Concentrator Plant Processing Heavy Mineral Concentrate Mineral Separation Plant Wet High Intensity Magnetic Separator at Concentrate Upgrade Plant

15 Mindarie Zircon Project Production Profile Annual Production (from 4,000,000 tpa or 550 tph ore mined) 170,000 t heavy mineral concentrate Non-magnetic HMC stockpile 35,000 t Zircon 3,000 t Leucoxene 55,000 t Ilmenite 7,000 t Rutile Zircon product - MSP Ilmenite product - MSP

16 Mindarie Zircon Project Status Mining Leases granted for the first 8 years of operation Land access, compensation and water agreements in place Initial Mining & Rehabilitation Plan approved Agreement with off-take partner for 100% of product for the first 8 10 years Parsons Brinckerhoff overseeing construction and commissioning of Project EPCM Contractor R J Robbins and Associates overseeing design and construction of Primary Concentrator, Concentration Upgrade Plant, Mineral Separation Plant and Inpit Mining Unit. Construction phase near completion Commissioning of Mine and Plant commenced 3Q 2007 Production commenced September 2007 Plant handover planned for December

17 WIM150 Project Resource discovered by CRA Exploration in 1982 Very large, flat-lying, fine-grained, off-shore resource EL 4521 held by Austpac Resources Australian Zircon entitled to earn 80% interest by completing a Bankable Feasibility Study Prefeasibility study underway; complete January 2008 Measured Resource 4.0%HM (1990 CRAE estimate compliant with Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves, 1989) Average 13% Zr; core 15% Zr Adjacent rail, HV powerline, natural gas pipeline and sealed highway. Servicing from nearby Rural City of Horsham. 17 A world class zircon resource

18 WIM150 Project Preliminary wet circuit flowsheet developed by Australian Zircon recovery of 87% of raw feed zircon into an acceptable (86%) grade HMC wet magnetic separation of HMC to produce crude Ilmenite and non-magnetic heavy minerals (principally zircon, rutile & leucoxene) Crude Ilmenite and non-magnetic heavy minerals stream successfully processed separately through Mindarie Mineral Separation Plant flowsheet pilot plant to produce indicative products of ilmenite, zircon and a high quality titanium mineral product Twin drilling program of zircon-rich core by AZ verifies tenor of mineralisation and confirms Zr % and total TiO2 % of previous CRAE work CRAE s Pilot Plant WIM150 High zircon assemblage WIM150 18

19 Mindarie Zircon Project Community Benefits New long term industry for the Mallee region and for South Australia Annual wages, goods and services expenditure, predominantly within the local community and the State Over 110 jobs during construction and commissioning Over 75 permanent positions now largely filled Skills gained will be transferable to other mineral sands operations and related industries Better utilisation of existing infrastructure (railway line) and investment in new infrastructure (power line) Royalties payable to the State over life of mine 19

20 Short / Medium Term Objectives Construct and commission the Mindarie Mine at a throughput rate of 550tph. Undertake a Bankable Feasibility Study on the WIM150 deposit in the southern Murray Basin. Evaluate expansion potential at Mindarie from 550tph throughput to 850tph. Appraise development options of WIM150. Further explore the Company s 16,000 km² tenements in the Murray Basin to discover further resources and reserves. Australian Zircon holds a strong exploration portfolio at Mindarie and further drilling is expected to add to the Project s established resource and reserve base, thus enabling either increased mine life and/or increased production rates from the Mindarie Zircon Mine. 20

21 The Beginning.. First shipment of product leaving site November 2007