Corporate Update November 2007

Transcription

1 P A N A U S T R A L I A N R E S O U R C E S L I M I T E D Corporate Update November 2007

2 About Pan Australian Resources Limited Australia-based emerging copper-gold miner (ASX:PNA) Immediate growth from the Phu Kham Copper-Gold Mine, Laos: Commissioning March Q 2008; mine life +12 years +200,000t pa concentrate containing 52,000t copper, 47,000oz gold and 400,000oz silver Capital cost US$241m - fully funded (50/50 debt/equity) Competitive cash unit costs - US 74/lb* Medium term growth from: Phu Kham Copper-Gold Mine Expansion to 65,000t pa copper Ban Houayxai Gold-Silver Project, Laos * Source: 2006 feasibility study. Estimated cash cost after precious metal credits: US$450/oz gold and US$8.00/oz silver.

3 Phu Kham Development.. Now 12 Months Ago..ahead of schedule, within budget

4 Phu Kham Development.. Mine, Crusher and conveyor alignment..ahead of schedule, within budget

5 Phu Kham Development.. Now 12 Months Ago..ahead of schedule, within budget

6 Competitive on Capital Intensity Capital Intensity US$/t Cu Equiv Industry Average Phu Kham 2006 Dollars 2003 Dollars 2003 Dollars ~US$5,500/t Cu Eq (2003 Dollars) ~US$6,000/t Cu Eq (2006 Dollars) (Adjusted for mine cost inflation) Phu Kham Cu Eq assumptions copper US$1.35/lb, gold US$450/oz, silver US$8/oz

7 Competitive Operating Costs Business operating cost (c/lb Cu) Scenario 2 1st Quartile Copper mine cost curve, 2009 Assumptions: Copper price: US$1.00/lb Gold price:us430/oz Silver price:us$6.50/oz Molybdenum oxide price:us$4.56/lb TC:US$55/dmt RC:US5.5/lb Production:52,312t contained Cu Business operating cost: US$0.659/lb 2nd Quartile Phu Kham 8th Decile th Decile -50 Cumulative production (000t)

8 Concentrate Marketing BHP Billiton manager of all concentrate sales Exposure to considerable global market presence and expertise TC/RC s secured for 40,000t of concentrate in 2008 at < US 3/lb Well positioned to supply custom smelters in SE Asia

9 Phu Kham Operations A Track Record of Leveraging Assets Heap Leach Gold operation Strategic greenfield starter project Operations team, systems and infrastructure established Annual cash flow funds group overheads Phu Kham Copper-Gold Mine Project ahead of schedule and within budget Pre-commissioning from December 2007 New Ore Reserve March 2008 Concentrate sales commence in June Q 2008 Planned expansion mid-2010

10 Phu Kham Deposit Schematic Section

11 Phu Kham Copper-Gold Ore Reserve Category* Tonnes (Mt) Cu Grade (%) Au Grade (g/t) Copper Metal (000 t) Gold Metal (Moz) Proved Probable Total Exceptionally low strip ratio ~ 0.6 : 1 Likely Ore Reserve increase in north mine area Price assumptions: copper US$1.35/lb, gold US$450/oz * Refer to Competent Person Statement

12 Likely Reserve Upside - North Mine Area Target area for step-out drilling A GRD251: 1.3% Cu, 0.5g/t Au fm 192m inc 3.4% Cu, 0.4g/t Au fm 340m GDD99: 1.1% Cu, 0.2g/t Au fm 8m inc 4.6% Cu, 0.7g/t Au fm 294m GDD223: 1.0% Cu, 0.6g/t Au fm 70m inc 1.5% Cu, 0.8g/t Au fm 131m GDD231: 2.7% Cu, 1.1g/t Au fm 8m inc 4.4% Cu, 1.7g/t Au fm 24m and 0.5% Cu, 0.1g/t Au fm 93m A' GDD228: 0.6%, 0.4g/t fm 6m inc 2.3% Cu, 0.5g/t Au fm 163m

13 North Mine Area Drilling North mine area infill and resource extension drill area GDD99 Cross Section A -A

14 Planned Expansion at Phu Kham 33% increase in throughput to 16Mt/yr Additional 6.5MW ball mill, upgraded flotation and concentrate handling Commissioning by mid-2010 Capital efficient - US$40 million (inc.us$7m contingency) Increases annual metal output to ~ 65,000t copper, 60,000oz gold and 550,000oz silver * Maximises value from the anticipated increased Ore Reserve * Based on 2006 feasibility study operating costs and head grade of 0.56% copper and 0.25g/t gold

15 Phu Kham Expansion - Cash Flow Indicative cash flows at various price assumptions * Cu Price Au Price 12 Mt/yr Feasibility Study 16 Mt/yr Expanded US$2.25/lb US$550/oz US$110M US$135M US$3.15/lb US$650/oz US$180M US$225M * Silver price assumption US$8.00/oz

16 Projects & Selected Prospects Ban Houayxai Gold-Silver Project Phonsavan Copper-Project Pha Nai Copper Prospect Puthep Copper Project Phu Kham Copper-Gold Mine Expansion Project

17 Ban Houayxai Pre-Feasibility Study Drilling primary mineralisation to 100m centres now Proposals for pre-feasibility & feasibility works invited Oct 2007 Primary Mineral Resource March 2008 Pre-feasibility study June Q ,000oz pa gold objective Silver : gold ratio ~15 : 1 Recoveries: +90% gold and +80% silver Favourable topography for a low strip ratio mine

18 Ban Houayxai Gold-Silver Deposit Primary mineralisation open below 300m and along strike Overlain by Oxide/Transitional Mineral Resource # 6.4M 1.0g/t for 199,000oz (0.5g/t cut-off)* # Refer to Competent Person Statement * Measured: 2.3M 1.0g/t, Indicated: 3.5M 0.9g/t & Inferred: 0.6M 1.1g/t

19 Ban Houayxai Deposit North Zone 4.9g/t Au Eq from 88m inc. 12.9g/t Au Eq from 120m & 21.3g/t Au Eq from 136m 3.7g/t Au Eq from 176m inc. 12.8g/t Au Eq from 211m Gold to silver price ratio assumption: 50 to 1

20 Ban Houayxai Deposit Looking Southeast Possible waste dump location Northern mineralised zone Dilation zone oxide mineralisation Southern mineralised zone Proposed plant site & TSF locations behind hill

21 Pha Nai Copper-Gold-Molybdenum Prospect 20km north of Phu Kham High tenor - up to 0.18% copper soil anomaly 1.5km x up to 1km within a 4km x 2km halo Elevated molybdenum (70 to 150ppm) and gold zones Geophysical survey in progress

22 Phonsavan Copper Project mn Bohr Thong mn me Cu in Soils (ppm) NEA Copper Project 1,000 to 10,000 (11) 300 to 1,000 (110) 100 to 300 (215) me Phonsavan me me Tharkhek me me KTL 0 to 100 (1776) 4 km me me mn mn

23 Puthep copper project 1H 2007 drilling targeted primary copper-gold mineralisation below existing oxide & transitional mineral resource New program started October 2007 testing new geological model Pre-Feasibility Study due mid-2008 Bulk flotation concept similar to Phu Kham being evaluated Positive flotation test results from primary mineralisation

24 Puthep Copper Project, Thailand P1DD006: 0.6% Cu, 0.3g/t Au fm 62m Multiple sub-10m intercepts P1DD010: 0.4% Cu fm 14m, 0.7% Cu fm 54m & 0.4% Cu & 0.2g/t Au fm 138m PUT1 Deposit Boundary Sedimentary Rocks Diorite Intrusive Rocks Breccia Zone Skarn Western Western Western Western Western Western Western Western Western Fault Fault Fault Fault Fault Fault Fault Fault Fault Zone Zone Zone Zone Zone Zone Zone Zone Zone Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Eastern Fault Fault Fault Fault Fault Fault Fault Fault Fault Zone Zone Zone Zone Zone Zone Zone Zone Zone P1DD012: 0.6% Cu from 134m P1DD008: 1.0% Cu fm 70m P1DD013: 1.6% Cu, 2.15g/t Au fm 64m & 1.6% Cu, 1.75g/t Au fm 82m P1DD002: 1.0% Cu, 0.2% Zn, 0.2g/t Au, 1.3g/t Ag metres Holes from previous drill programs 2007 Phase 1 Drillhole, drilled, assays received 2007 Phase 1 Drillhole - drilled, assays pending 2007 Phase 1 Drillhole - planned P1DD011: 0.8% Cu from 58m P1DD001: 0.7% Cu, 8.0% Zn, 0.2g/t Au, 3.0g/t Ag & 0.6% Cu, 4.5% Zn, 0.2g/t Au, 3.0g/t Ag

25 Production Summary and Strategy 120 Phu Kham expansion Copper Eq. (t 000's) Phu Kham copper Phu Kham gold + silver Heap leach gold Five-year growth strategy to double production. Potential sources include: Ban Houayxai gold, Puthep copper Indicative production profile (100% basis) based on 2006 feasibility study metal-in-concentrate production; includes planned expansion from mid-2010 Revised Ore Reserve scheduled for March 2008 Copper Equivalents assumptions - copper US$1.35/lb, gold US$450/oz, silver US$8/oz

26 Important Notices This presentation has been prepared by the management of Pan Australian Resources Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future projects, such expectation or belief is based on management s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For a more detailed discussion of risks and other factors, refer to the Directors' Report in the Company's 2006 Annual Report which has been lodged with the Australian Securities Exchange, as well as the Company's other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast. The data in this report that relates to Exploration Results, Ore Reserves and Mineral Resources is based on information evaluated by the Competent Person as identified below. All these persons are affiliated in the capacity indicated with the professional institution shown and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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 (the JORC Code ). All these persons are full-time employees of the organisation indicated and consent to the inclusion in the report of the matters based upon their information in the form and context in which they appear. Exploration Results: Mr. Richard Hague is a Member of the Australian Institute of Geoscientists (MAIG) and an employee of Pan Australian Resources Ltd. Phu Kham Copper-Gold Ore Reserve: Mr Chris Desoe is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and an employee of Australian Mine Design and Development Pty Ltd. Ban Houayxai Resource: Mr. Richard Hague is a Member of the Australian Institute of Geoscientists (MAIG) and an employee of Pan Australian Resources Ltd.

27 P A N A U S T R A L I A N R E S O U R C E S LIMITED Joe Walsh GM Corporate Development Website: info@panaustralian.com.au