World Class Zircon Developments in the Eucla basin

Transcription

1 World Class Zircon Developments in the Eucla basin Speaker: Keith Yates Slide 1

2 Zircon Market Slide 2

3 Zircon Market Bemax 2% Others 14% Ticor 10% DuPont 6% Namakwa 11% BHPB 10% Source: Iluka Indicative Market Share - Zircon Iluka 37% Rio Tinto 10% Slide 3

4 Eucla Basin HM Projects World s foremost zircon source 10Mt of HM, ~5Mt zircon in 3 world class deposits J/A + Tripitaka More discoveries likely Discovery History Jacinth Nov 04 Ambrosia Dec 04 Tripitaka Nov 05 Gullivers June 06 Cyclone July 07 Typhoon July 07 Slide 4

5 Eucla Basin - Potentially world s premier zircon source WA SA Iluka discoveries Tripitaka Adelaide/Iluka Ceduna Slide 5

6 Regional DTM Image Jacinth Ambrosia Typhoon Tripitaka Ceduna 60 KM Slide 6

7 Tenement History Adelaide Resources Tenements subject to Colona JV with Iluka (5250 sq. km.) Iluka Tenements Iluka Discoveries EUCLA BASIN Trans Australia Railway Tripitaka Application date No. of tenements Size km 2 Total Area km Ceduna 300 Kilometres Eyre Highway Port Lincoln Adelaide Slide 7

8 Eucla Basin HM Overview Discoveries to date Jacinth-Ambrosia (100% ILU) Tripitaka (~70% ILU/~30ADN) Gullivers (100% ILU) Typhoon (100% ILU) 10.1 million tonnes of Heavy Mineral booked as resource to date Zircon assemblages: 47% - 68% ~5 million tonnes of in-ground zircon Jacinth-Ambrosia DFS well advanced Tripitaka in PFS Strong prospects of further discoveries Source: Iluka Slide 8

9 Comparison of Australian HM Resources (Feb07) Province Company MT %HM HM Mt % % % A$/t A$/t in Zircon Rutile Ilmenite (7) HM conc (8) ground Stradbroke Is (1) Iluka % % 14% 45% Murray Basin (1) Iluka % % 13% 48% Murray Basin (2) Bemax % % 17% 53% Murray Basin (3) Aust. Zircon % % 11% 66% WA mid-west (1) Iluka % % 6% 52% WA south-west (1) Iluka % % 1% 79% WA south-west (2) Bemax % % 82% Tiwi Islands (4) Matilda Min % % 19% 32% (1&6) Eucla Basin Iluka % % 5% 28% Eucla Basin (5) TRIPITAKA % % 5% 9% Data Sources and Notes (1) - Iluka Resources Limited Concise Annual Report 2005 (2) - Bemax Resources NL 2005 Annual Report (3) - Australian Zircon NL 2006 Annual Report (4) Matilda Minerals 2006 Annual Report (5) ADN/Iluka ASX announcement 27 Sept 06 (6) - Iluka Resources Limited ASX announcement 17 Aug 2006 (7) - Includes various Ti minerals including leucoxene and HiTi Illmenite which may sell for higher prices (8) - Based on prices from Bemax Sept06 QR Commodity A$/tonne Zircon $1000 Rutile $600 Ilmenite $100 Slide 9

10 Exceptional Zircon Assemblage Slide 10

11 Jacinth-Ambrosia Project Brownfield development Processing using existing MSP facilities at Narngulu, Western Australia Estimated capex ~A$400 million Production potential ~300,000 tonnes per annum zircon in initial years estimated total project production ~3 million tonnes of zircon ~120,000 tonnes per annum ilmenite ~30,000 tonnes per annum of rutile in initial years Estimated 15+ year life of mine (dependent on production profile) DFS completion mid-2008 First production expected mid 2010 Source: Iluka Slide 11

12 Development Concept for J/A Source: Iluka Mining Method conventional dry mining in large open pit overburden removal by scraper dozer trap mining Wet Concentration MC2 concentrator relocated from Georgia Infrastructure hyper saline water source small RO plant for fresh water 100 person permanent village Ooldea Road upgraded and sealed Mineral Separation Plant Narngulu, Geraldton WA Other group capacity Port Facilities HMC shipped from Port of Ceduna, South Australia (~200kms from mine site) Final product shipped from Geraldton, Western Australia Slide 12

13 Tripitaka Zircon Project Strategic holding in basin heartland Tripitaka world class 1Mt of HM, 0.65Mt of zircon Adres share ~30% PFS completion Q Discovery potential high Slide 13

14 Tripitaka Inferred Resources Ownership ILUKA 100% (400,000t HM) COLONA JV ILUKA 51% (306,000t HM) AdRes 49% (294,000t HM) TRIPITAKA Total 400,000t HM 600,000t HM 1,000,000t HM (650,000t zircon) Adelaide Resources share ~0.3 million tonnes of HM Slide 14

15 Tripitaka Resource Drilling Slide 15

16 Tripitaka Resource Drilling Slide 16

17 Tripitaka has a favourable location Ambrosia Jacinth Tripitaka 90km from Ceduna to Tripitaka turn-off Slide 17

18 Tripitaka Prefeasibility Study (PFS) Elements of PFS - Mine planning - Resource upgrade - Water supply - Metallurgy - Environment - Permitting - Native Title Slide 18

19 Tripitaka PFS Work Modules Resource Drilling Water Exploration Section 5085SE Slide 19

20 Tripitaka - Section 5085SE (looking North) Iluka Resources 1000m Colona Joint Venture 4.1%HM 5.6%HM incl 15.4%HM Slide 20

21 Tripitaka PFS PFS scheduled for completion in first quarter of calendar 2008 PFS report will include the scope, cost and schedule for a definitive feasibility study (DFS) Colona Joint Venture to then decide on DFS Slide 21

22 Zircon Exploration - Typhoon Discovery Follow-up Jacinth Typhoon Results 4.7%HM from 1.5m 17% zircon in assemblage Slide 22

23 Quasar Joint Venture JV with Quasar Resources discoverer of the Four Mile deposit Major drilling program underway Drilling to target the Narlaby and Yaninee palaeochannels Utilisation of PFN instruments Slide 23

24 Providing shareholders with discovery opportunities! Slide 24