Mining the North West, Mt Isa, Queensland ... - Altona Mining

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Mining the North West, Mt Isa, Queensland ... - Altona Mining

Altona’s Copper AssetsOutokumpu ProjectRoseby ProjectCopper Production in FinlandMajor copper development in Australiaaltonamining.com April 2013 3.


Copper – Crisis? What crisis?A step change in copper markets in 2005Post 2005 price averages: US$7,265 (US$3.30/lb)$8,811$7,540$7,958$7,838$6,731$7,126$6,952Today$5,164$3,684$2,868$1,577 $1,558$1,7802001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTDaltonamining.com April 20135.


Roseby Copper ProjectLittle EvaLooking north-westfrom Green Hillsaltonamining.comApril 20138.


Roseby is a Strategic Assetaltonamining.com April 2013 9.


3 Elements to the Roseby ProjectLittle Eva: A Development Ready ProjectFully permitted with DFS completed on a simple39,000tpa (86mlbs pa) copper open pit mine andflotation plant.Major Resource Inventory1.52Mt copper metal including 0.84Mt (1,850mlbs)copper in 7 ‘native copper’ deposits outside Little EvaProject.Exploration1,500km² of exploration tenure prospective for copper,gold, molybdenum, uranium and zinc-lead-silver.altonamining.com April 201310.


Little Eva is a Large Deposit• 1.3km long, 20-370m wide• Drilled up to 300m deep (511drillholes, 76km)• Large bulk IOCG style deposit similarto Ernest Henry• Strip ratio of 1.8:1 after 15Mt pre-strip• Little Eva deposit reserve: 53Mt ore at0.6% copper, 0.1g/t gold.• Additional 6Mt reserves in 3 smallsatellite pits• 15Mt of low grade ore stockpiled andtreated at end of mine life• 11 year mine life• Underground potentialaltonamining.com April 201311.


Little Eva Definitive Feasibility Study DFS to bankable standard by GREngineering Services Large, simple and well drilledresource Straightforward open pit miningand processing Simple processing route Quality copper-gold concentrate Stable, skilled mining jurisdiction Native title, environmental permitsand mining leases all in place Potential to expand production,resources and reserves Potential to optimise DFSaltonamining.com April 201312.


Logistics and Permits• 220 man camp 7km from sealedhighway and 60km from Cloncurryairport• Concentrate trucked 65km toCloncurry rail siding in sealed halfcontainers, rail to Townsville port• Power via 12km spur line from DugaldRiver proposed 220KV line• Native title complete• Environmental Authority granted• Mining licences granted• Minor modifications to EnvironmentalManagement Plan may be required toreflect Definitive Feasibility Studyaltonamining.com April 201313.


Financial PerformanceKey Financial AssumptionsUnitLong term copper price 2.75 US$ per poundLong term gold price 1,300 US$ per onuceLong term exchange rate 0.81 AUD/USDaltonamining.com April 201314.


Production ExpansionCopper Sulphide Deposits• Resource extensions likely• Targets such as Turkey Creek discoverymay will provide additional feedCopper-only Deposits• 7 copper-only deposits (137Mt ore) inaddition to Little Eva and satellites• Copper only deposits comprise ‘Nativecopper ore’ in weathered rocks overlyingfresh copper sulphide ore• Sulphide ore will be treated as per Little Eva• Native copper ore has lower (60%) recoveryaltonamining.com April 201315.


Can Roseby be bigger than 2Mt copper?• Altona has grown resource 60% to1.52Mt of copper metal in 2 years• 4 Reserves, 7 Resources and manyprospects and workings• Little systematic exploration for 15years• Turkey Creek discovery in August2012 highlights prospectivity• All deposits open and growing, manytargets for extensions• Dugald River zinc and Mary Kathleenuranium highlight that explorationpotential not limited to copperPlan of depositsand prospects atcentral Rosebyareaaltonamining.com April 201316.


Companion: Example of Exploration Target• Several parallel zones ofmineralised outcrop and artisanalworkings 25km south of Little Eva• Total strike ~7km, individual zonesup to 1km long and up to 30m inwidth• Potential for additional 4km alongstrike to south (work in progress)• Outcrop samples up to severalpercent copper and several gramsper tonnes gold, visible gold atsurface• Only 4 historic drill holes in thearea (best 7.5m at 0.9% copper)• Systematic RAB drilling underwayaltonamining.com April 201317.


Fourpart Strategy for Roseby1. Finance: Conclude financing /partnering negotiations in mid20132. Produce: Build a stand alone~7Mtpa copper concentrator atLittle Eva sulphide ore from LittleEva open pit and 3 satellites3. Expand: Develop ‘native copper’deposits for additional 10-15ktpacopper4. Explore: Target 2Mt coppermetal resource. Initial focus onsulphide ore to supply Little Evaconcentrator eg. Turkey CreekOld copper workings at Lady Clayrealtonamining.com April 201318.


2011 was a turbulent year,2012 will be Altona’s year to shineTHANKYOUTermite mounds watching summerstorms at the Blackard depositaltonamining.com April 201319.


Appendix 1Roseby Supplementary Informationaltonamining.comApril 201320.


History of Roseby ProjectAsset HistoryDiscovery − 1970’s: Initial CRA discoveries of Dugald Zinc and adjacent Roseby Copper− 1990’s: Copper project divested by Pasminco / Zinifex, retained Dugald ZincProjectUnderFunded -held by acash poorjuniorAltonaFormed andProjectAdvanced−−−−−−2000: Universal Resources acquired Roseby CopperFocus on Little Eva depositJV with Bolnisi on native copper depositsUniversal bought out Bolnisi and completed DFS on 8Mtpa blendedsulphide and native copper ore2009: DFS on 5Mtpa copper / sulphide operation2010: Vulcan merges with Universal, new entity named AltonaAltona completes DFS on sulphide ores only (mainly Little Eva)Little Eva deposit increased from 30Mt to 100MtGlobal Roseby Resource increased from 0.9Mt contained copper to 1.5Mtcontained copperaltonamining.comApril 201321.


Simple Geology: Little Eva Cross Section (25900mN)altonamining.com April 201322.


Roseby Resource EstimatesTOTALCONTAINEDMETALMEASURED INDICATED INFERREDDEPOSITTonnes Grade Copper Gold Tonnes Grade Tonne Grade Tonnes GrademillionCu%Aug/ttonnes I metreounces millionCu%Aug/tmillionCu%Aug/tmillionCu%Aug/tCOPPER-GOLD DEPOSITSLittle Eva 100.3 0.54 0.09 538,000 271,000 36.3 0.63 0.08 41.4 0.48 0.08 22.6 0.49 0.11Ivy Ann 7.5 0.57 0.07 43,000 17,000 5.4 0.60 0.08 2.1 0.49 0.06Lady Clayre 14.0 0.56 0.20 78,000 85,000 3.6 0.60 0.24 10.4 0.54 0.18Bedford 1.7 0.99 0.20 17,000 11,000 1.3 1.04 0.21 0.4 0.83 0.16Sub-total 123.4 0.55 0.10 675,000 384,000 36.3 0.63 0.08 51.7 0.52 0.09 35.5 0.51 0.13COPPER ONLY DEPOSITSBlackard 76.4 0.62 475,000 27.0 0.68 6.6 0.60 42.7 0.59Scanlan 22.2 0.65 143,000 18.4 0.65 3.8 0.60Longamundi 10.4 0.66 69,000 10.4 0.66Legend 17.4 0.54 94,000 17.4 0.54Great Southern 6.0 0.61 37,000 6.0 0.61Caroline 3.6 0.53 19,000 3.6 0.53Charlie Brown 0.7 0.40 3,000 0.7 0.40Sub-total 136.7 0.61 840,000 27.0 0.68 25.0 0.64 84.7 0.59TOTAL 260.1 0.58 0.05 1,515,000 384,000 63.2 0.65 0.05 76.7 0.55 0.06 120.1 0.56 0.04See ASX release of 26 July 2011, 19 December 2011, 23 April 2012, 3 July 2012 and 22 August 2012 for full details of resourceestimation methodology and attributions.Note: All figures may not sum exactly due to rounding.Little Eva is reported above a 0.2% copper lower cut-off grade, all other deposits are above 0.3% copper lower cut-off grade.altonamining.comApril 201323.


Little Eva Project - Resources and ReservesTonnes(m)Copper(%)Gold(g/t)ContainedCopper(t)ContainedGold(oz)RESOURCESMeasured 36.3 0.63 0.08 228,000 90,000Indicated 51.7 0.52 0.10 266,000 152,000Inferred 35.5 0.51 0.13 180,000 141,000Total 123.4 0.55 0.10 675,000 384,000RESERVESProven 31.2 0.64 0.08 198,000 85,000Probable 28.1 0.53 0.10 149,000 90,000Sub Total 59.3 0.59 0.09 347,000 174,000Probable (stockpile) 15.3 0.18 0.06 28,000 31,000Total 74.7 0.50 0.08 375,000 204,000Mining Inventory 1.9 0.51 0.23 10,000 14,000Little Eva Project comprises Little Eva, Bedford, Lady Clayre and Ivy Ann.altonamining.comApril 201324.


Little Eva – Site Layoutaltonamining.comApril 201325.


Straightforward Plant and ProcessingSimple and rapid flotation with coarse grind. 96% copper and 85% gold recoveries to a clean25% copper and 4g/t gold concentrate.altonamining.com April 201326.


Little Eva – Production Schedulealtonamining.com April 201327.


Little Eva – Feasibility Study MetricsOperating costs (years 1-5)altonamining.comApril 2013UnitsMining 10.4 $/t oreProcessing 9.1 $/t oreGeneral & administration 0.6 $/t oreTotal site costs 20.1 $/t oreConcentrate TC/RC’s505US$/tUS¢/lbConcentrate transport to China 2.4 $/t oreRoyalties 2.0 $/t oreC1 cash cost (after gold credit) 1.73 US$/lb copperCapital costs 320 A$MPre-strip 61 A$MProcess plant and infrastructure 181 A$MFirst fill and spares 12 A$MTailings facility 19 A$MAccommodation village 18 A$MOwners costs 11 A$MContingency 18 A$M28.


Blackard: 76Mt Copper-only Depositaltonamining.com April 201329.


Telephone: +61 8 9485 2929Facsimile: +61 8 9486 8700Email: altona@altonamining.comwww.altonamining.comaltonamining.com April 2013

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