LOCATION. Mine. Aguablanca. Huelva SPAIN

Transcription

1 Aguablanca Mine 1

2 LOCATION Aguablanca Mine SPAIN Huelva Aguablanca 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 2

3 Infrastructure Open Pit Clear Water Dam Offices UG Portal Waste Dump Process Plant Tailing Dam 3

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 Mm 3 budgeted for day/week shift regime - 20h/day. 4

5 Ore Processing Plant Conventional Crushing-Grinding-Flotation plant. Initial capacity 1.5 Mtpa 1.8 Mtpa in Mtpa in Bulk flotation Ni + Cu (prepared for differential) % 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 Mt in 2006 forecast 1.7 Mt in

6 Reserves & Resources Uppe r body Dee p bod y 6

7 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 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 (Internal audit 09/07) YTD refers to the period (January September 2007) 7

8 Production Profile 2007 REGISTERED RESULTS Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 (*) TOTAL Variance Milled Ore (tonnes) 314, , , ,634 1,468, , , , ,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% (*) Real Oct results + Nov&Dec forecast 8

9 Short Term Planning Increase processing capacity in 2008 (1.8 to 2.1 Mtpa - 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 % Ni & 0.58% Cu from U/G in Develop processing of Oxide Stockpile (> 1.0 Mt) Implementation of the ISO * Excludes 2.3 MUSD Exploration 9

10 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. 10

11 UNDERGROUND DESIGN Upper Orebody Data Unit Capex 000 USD 6, Ore hoisted tonnes 102, , ,700 Ni grade % 0.55% 0.65% 0.77% Cu grade % 0.58% 0.65% 0.74% Unit operating cost USD/ore tonne 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 orebody produces.. Contractor tenders now available for adjudication. 11

12 Production Profile Ni & Cu Metal Production (tonnes) Open pit & U/G 12

13 Aguablanca Exploration- Spain Aguablanca Mine (Ni-Cu-PGE) The newest and largest Ni sulphide mine in Western Europe

14 Aguablanca Exploration- History 1983 Granting Provisional State Reserve 1989 JV agreement Presur and Rio Tinto Minera (later Atlantic Cooper) 1993 Discovery of the Aguablanca Ni bearing gossan RTM completed a PFS including 33,000 m of drilling RNGM acquired Aguablanca BFS completed by July 2002 Construction started in early 2003 First concentrate produced on Dec 2004

15 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) Contained Cu (Tonnes) Reserves P + P 11, ,100 54,400 Resources M + l 14, ,400 71,400 Inferred 4, ,800 14,400 open pit optimization plan is currently underway as well as n economic study for an UG mining operation.

16 Aguablanca Exploration- Spain 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.

17 Aguablanca Exploration- Spain 2007 Exploration Highlights Wide and continuous intervals of disseminated and semimassive sulphide mineralization defined at the Deep Body indicating an strong UG mining potential. Nickel sulphide exploration This is is what we we are are looking for 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. Massive sulphides at at the the Aguablanca Deep Body: 2,20 meters at at 6,3% Ni Ni and 1,5 1,5 % Cu.

18 Aguablanca Exploration- Spain Aguablanca exploration potential ¹ Discovery hole m at 0.94% Ni+0.41% Cu Pit Outline North orebody Deep Body (projected from -50 m level) Decline Gabbro OPEN 100 m Main orebody 7400 E 7425 E 7450 E

19 Deep Body 50m Level Map Ni mineralization >0.5% Aguablanca Exploration- Spain AGU % Ni, 0.91 % Cu Inc % Ni, 0.76 % Cu 7200 E AGU % Ni, 0.84 % Cu Inc % Ni, 1.25 % Cu ¹ 7300 E 7400 E AGU % Ni, 0.62 % Cu Inc % Ni, 0.76 % Cu 7500 E AGU % Ni, 0.72 % Cu AGU % Ni, 0.80 % Cu Inc % Ni, 0.82 % Cu 5400 N 5300 N AGU % Ni, 0.72 % Cu Inc % Ni, 0.71 % Cu AGU % Ni, 0.65 % Cu AGU % Ni, 0.95 % Cu Inc % Ni, 1.03 % Cu 50 m 5300 N AGU % Ni, 0.56 % Cu Drill-holes Completed Cut-off >0.5 % Ni

20 Aguablanca Exploration- Spain Deep Body Section 7350 E S N 400m AGU m 6544 AGU Open pit Phase-3 AGU m AGU-1027 AGU-1025 AGU % Ni, 1.20 % Cu Inc % Ni, 1.24 % Cu Underground Drilling 2006 Underground Drilling m 00m 6758 AGU-1006 AGU-1007 AGU-1013 AGU-1009 AGU-1011 AGU % Ni, 0.45 % Cu AGU % Ni, 0.57 % Cu Inc % Ni, 0.65 % Cu Cut-off >1.0 % Ni >0.5 % Ni 5100 N 5200 N AGU-1060 AGU-1062 AGU-1093 AGU-1056 AGU-1090 AGU N 5600 N AGU % Ni, 0.80 % Cu Inc. 11,45 1,32% Ni, 0.88%Cu AGU % Ni, 0.62 % Cu Inc % Ni, 0.76 % Cu

21 Aguablanca Nickel Exploration 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.

22 Aguablanca Regional Exploration-Spain An emerging new nickel belt with strong exploration potential. 25 Km Nickel Targets CORTEGANA CALZADILLA AGUABLANCA MINE RIBERA DEL FRESNO CAMPILLO DE LLERENA ARGALLON SIERRA LEON Airborne magnetic map with main Ni projects Predominant land position km2 - in one of Europe s most prospective and pro-mining regions. Wide intervals of low grade, disseminated magmatic sulphide mineralization 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. Multiple VTEM anomalies already identified in the 6 covered areas. Drill testing will commence early next year.

23 Aguablanca Exploration- Spain ¹ Magnetic first vertical derivative AGUABLANCA MINE 1Km VTEM conductors

24 Portugal - Mine site and Regional Exploration Summary of 2007 Results Neves Corvo Minesite Exploration Aljustrel Minesite Exploration Regional Exploration

25 Neves Corvo Minesite Exploration 2007 Goals Infill Lombador South Zinc Zone (LSZZ) to upgrade Inferred tonnes to Indicated; Expand LSZZ Inferred resource.

26 LSZZ Drill Intersections Drillhole From (m) To (m) Interval (m) Est. True Width (m) Pb % Zn % ND20A NE18C NF22A NF22A NF NF24A NF34 1, , NG

27 Plan Showing Deposits with Existing Underground Development Lombador LSZZ Neves 3 km Corvo Graça Zambujal

28 LSZZ 2006 Resource Shape 8.51% Zn 8.03% Zn 270 metres 3.92% Cu

29 Neves Corvo Mine Lease GREY: Inf % Zn GREY: Inf % Zn All at 3.3%Zn cutoff 3.3%Zn cutoff

30 2006 Neves-Corvo Zinc Resource Tonnes (Mt) Zinc Grade (%) Contained 000 s of tonnes Metal Million pounds Measured Indicated ,827 4,028 M+I ,887 4,160 Inferred ,397 3,080 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

31 Resource Expansion Potential 100m massive 8.51% Zn sulphide 8.03% Zn 620 metres 700 metres 4.2% Zn stockwork

32 Resource Expansion Neves Potential Corvo Lombador

33 Aljustrel Mine Site Exploration 2007 Goals Infill and expand Feitais deposit; Infill Estação deposit.

34 Feitais Deposit Expansion Added in 2007 Target Area For 2008

35 Feitais and Estação Deposits Estação infill drilling, 615 metres Step-outs to determine Deposit limits 590 metres Feitais conversion of Inferred to Indicated, Expansion of Inferred Represa Fault

36 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.

37 Lombador TEM

38 Estação Inverted TEM Section

39 Completed and Planned AirFTG Aljustrel Survey Completed October 2007 Proposed AirFTG Expansion Neves Corvo