Quarterly Report - March 2013 - Altona Mining


Quarterly Report - March 2013 - Altona Mining

QUARTERLY REPORT MARCH 2013Safety and PeopleSafetyperformancecontinues toimproveSafety at Outokumpu in the March quarter saw continuing improvement in safetystandards. As of mid-April, the operation had achieved 180 days without a lost timeincident (“LTI”). The year to date lost time injury frequency rate and medically treatedinjury rate per one million man hours continue to trend downwards and are now 8 and25 respectively.Altona continues to pursue its aim to be equal to, or better than, the best of its Finnishpeers in safety performance.The Company now has 99 employees and 105 contractors in Finland and 18employees in Australia.Outokumpu OperationsAnother recordquarterlyproductionOutokumpu Project Production StatisticsThisQuarterYear toDateOre mined Tonnes 144,702 414,508Copper (%) 1.91 1.71Gold (g/t) 0.68 0.63Zinc (%) 0.81 0.58Ore milled Tonnes 141,090 407,704Copper (%) 1.92 1.66Gold (g/t) 0.75 0.66Zinc (%) 0.69 0.66Recovery Copper (%) 92.2 91.0Gold (%) 76.8 73.3Zinc (%) 40.6 41.9Copper concentrate produced Tonnes 11,220 28,599Copper (%) 22.3 21.5Gold (g/t) 7.2 6.9Zinc concentrate produced Tonnes 815 2,362Zinc (%) 48.5 47.7Contained metal in concentrates Copper (tonnes) 2,503 6,146Gold (ounces) 2,596 6,371Zinc (tonnes) 396 1,125SalesCopper concentrate delivered Tonnes 11,162 28,465Contained metal Copper (tonnes) 2,491 6,152Gold (ounces) 2,567 6,415Zinc concentrate delivered Tonnes 733 2,524Contained metal Zinc (tonnes) 352 1,1162.

QUARTERLY REPORT MARCH 2013It was an exceptional quarter for Outokumpu with production exceeding allexpectations as high grade Wallaby ore was mined and processed. Cost performancewas pleasing with C1 cash costs at US$1.30 per pound.Sales and CostsMetal production was the highest to date with 2,503 tonnes of copper, 2,596 ouncesof gold and 396 tonnes of zinc contained in concentrate. Production for the ninemonths to March was 6,146 tonnes of copper and 6,371 ounces of gold contained inconcentrate, resulting in a further upgrade to the full year production guidance for2012/2013 to 7,500-8,000 tonnes of copper and 7,500-8,000 ounces of gold.Cash costscontinue to fallas volumesincrease andgrades outperformQuarterly Production of Metal in Concentrate and Cash Cost by Quarter3,0002,5962,5002,2922,5032,0432,0001,6001,4831,5001.,000712 7340.95003972880.7-Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013Cu (tonnes) Au (ounces) C1 cash costs (USD, RHS)*0.5*C1 cash cost calculated per Brook Hunt methodology. The cash cost data during thecommissioning period (Q1, Q2 2012) is not meaningful.Commodity SalesMetricThisQuarterYear toDateRealised priceCopper USD/lb 3.39 3.49Gold USD/oz 1,584 1,607Silver USD/oz 28.22 30.65Zinc USD/lb 0.50 0.48Revenues (excluding TC/RC)Copper USD millions 17.65 45.03Gold USD millions 3.52 8.86Zinc USD millions 0.38 1.12Silver USD millions 0.27 0.80Total USD millions 21.82 55.81Realised prices include deliveries into hedge positions.3.

QUARTERLY REPORT MARCH 2013Cost performance was pleasing with year to date costs of US$1.50/lb falling to withinthe guidance range of US$1.40-1.60/lb.Cost PerformanceThisQuarter(US$M)ThisQuarter(US$/lb)Yearto Date(US$/lb)Mining Costs 4.65 0.87 1.08Ore trucking costs 1.00 0.19 0.21Site processing costs 3.20 0.60 0.64TC/RC and transport 1.74 0.32 0.33Other cash costs 0.67 0.12 0.12Net gold, silver and zinc credits * (4.27) (0.80) (0.88)C1 Cash cost per pound payable copper - 1.30 1.50Capital expenditure 5.16 0.96 1.07Financing costs 0.28 0.05 0.07Total Expenditure (capital and operating) 12.43 2.31 2.64Note: No royalties are payable in Finland.* Based on invoiced prices, exc. hedge settlements.Altona makes daily deliveries of copper-gold concentrate to New Boliden’s coppersmelter at Harjavalta on the south-west coast of Finland and delivers zinc concentrateto New Boliden at Kokkola as production allows.Production Guidance and OutlookProductionexceeding priorguidanceProduction guidance for the 2012/2013 financial year was originally forecast in July2012 to be between 5,000 and 6,000 tonnes of copper and 5,000 to 6,000 ounces ofgold in concentrate. This was increased to a range of 6,500 to 7,000 tonnes ofcopper and 6,500 to 7,000 ounces of gold in concentrate on 22 January 2013.Accordingly, production guidance for the year ended 30 June 2013 is as follows:Copper Production - 7,500 to 8,000 tonnes of contained copper in concentrateGold Production - 7,500 to 8,000 ounces of contained gold in concentrateCurrent high grade production is not expected to continue and production in comingquarters will be at or below the global reserve grade of 1.7% copper as productionmoves to lower grade areas of the Wallaby zone.MiningTotal material mined during the quarter again achieved a record for the operation with144,702 tonnes of ore and 98,807 tonnes of waste mined. The increased productionis primarily due to mining of larger stopes at above average grades.Some five stopes were completed and filled during the quarter and one new stopeopened. Reconciliation of mine production to Reserve models and of mine to mill isacceptable.4.

QUARTERLY REPORT MARCH 2013Ore gradescontinue toperform wellGrade was higher than the previous quarter at 1.91% copper due to mining of thehigher grade parts of the upper Wallaby zone. In particular, March was an exceptionalmonth with 1,100 tonnes of copper produced from the highest grade part of theWallaby zone.Some 964 metres of decline and level development was completed in the quarter andmine development is now down to 460 metres below surface (360 level). The declineand lateral development will remain the major focus for 2013 to ensure developmentis sufficiently advanced to support and expand production.Capital expenditure for the quarter consisted of approximately US$3.7 million ofdecline, level and fresh air shaft development plus US$0.1 million of miscellaneous,discretionary items.Figure 1: Longitudinal section of the Kylylahti mine showing the mine plan,drill drive and zone targeted for additional resourcesProcessingThe Luikonlahti processing plant continued to perform at a high level of availability,throughput and recovery this quarter. A total of 141,090 tonnes at 1.92% copper ofore were milled.5.

QUARTERLY REPORT MARCH 2013Recoveriesmeeting orexceedingexpectationsCopper recovery of 92.2% for the quarter was good reflecting higher grades of millfeed. Copper-gold concentrate grades are in the range of 21-23% copper and 6-9g/tgold. Zinc concentrate grade of 48.5% and recovery of 40.6% is below design of 50%zinc grade and recovery of 50%.The plant has met the challenge of dealing with a large daily range feed grade of 1%to 4% copper which is very pleasing.An unscheduled change in the rod mill lining occurred in February due to higher thanexpected wear rates and resulted in approximately 80 hours of down time. Aprogramme is in place to improve the monitoring of wear rates and investigatesuperior liner materials.Capital expenditure at the mill (US$1.1 million) was largely on expansion of the damfor storage of a low-grade cobalt-nickel concentrate and waste sulphur concentrateplus US$0.2 million of miscellaneous, discretionary items. Storage dams areexpensive and a range of strategies are underway to minimise costs.Disposal ofsulphide wasteaccelerated1. Options for disposal of cemented sulphur concentrate underground at Kylylahtior in old mine workings at the mill are being investigated: Leach test workindicates that manufacture of a cemented mix of appropriate mechanicalstrength and stability is likely to be possible.2. Work continues on optimising the design and efficiency of the existing sulphurflotation circuits to reduce the volume of sulphide waste.3. Marketing of sulphur and of cobalt-nickel concentrates continues.In parallel with these activities, work continues to ensure that ongoing disposal tostorage dams remains viable. These include:1. Construction has commenced on lifting the existing storage dam to RL151mwhich will give sufficient storage volume until Q1 2015. Further lifts may bepossible but the current focus is on identifying a new, longer term location for astorage dam.2. A suitable location for a new dam has been identified and land acquisition andpermitting activities have commenced. Preliminary engineering and costestimates for stage 1 of the new dam are likely to be due in June 2013.Mineral ResourcesSo far, the copper grade of ore produced at the Kylylahti mine has consistentlyoutperformed predictions. New geological mapping, mining information andunderground drilling since the start of production in February 2012 together with priordrilling data has permitted the estimation of a new Resource and Reserve Estimatefor the upper Wallaby zone, and thus global resources and reserves for the KylylahtiMine. Resources are reported above a 0.4% copper lower cut-off grade.The December 2012 Resource Estimate for the Kylylahti mine is:7.9 million tonnes at 1.25% copper, 0.69 g/t gold and 0.56% zinc for 99,050tonnes of copper, 175,750 ounces of gold and 44,250 tonnes of zinc.6.

QUARTERLY REPORT MARCH 2013This compares to 8.1 million tonnes at 1.27% copper, 0.67g/t gold and 0.56% zinc forthe previous estimate reported in Altona’s 2012 Annual Report.Geological understanding of the upper Wallaby zone has improved results in a betterdefined, structurally controlled semi-massive copper domain at higher grades, andlower tonnages of the lower-grade disseminated copper domain.The Resource Estimate is reported inclusive of the Ore Reserves reported below.Details of the new Resource Estimate are in the ASX Release dated 9 April 2013.Ore ReservesReserve gradesincreasedThe December 2012 Ore Reserves Estimate for the Kylylahti mine is:3.6 million tonnes at 1.69% copper, 0.66g/t gold and 0.67% zinc for 60,500tonnes of copper, 76,100 ounces of gold and 24,000 tonnes of zinc.This estimate compares to 4.2 million tonnes at 1.57% copper, 0.56g/t gold and0.58% zinc for the previous estimate reported in Altona’s 2012 Annual Report. The0.6 million tonnage reduction comprises of 0.38 million tonnes of mining depletionplus the previously mentioned reduction in disseminated tonnes in the upper Wallabyzone.The Ore Reserve has been derived from the latest design for the upper part of themine where the new resource model is available, whereas the 2010 Feasibility StudyOre Reserves are used for the deposit below 400 metres below surface (-300m RL).Ore Reserves for Wallaby have reduced in tonnage but this has been almostcompletely offset by a significant improvement in copper grade. Overall, copper metalin the Wallaby Ore Reserve after mining depletion has decreased by 9% compared toJune 2012 estimates.Details of the new Reserves Estimate are in the ASX Release dated 9 April 2013.Resource Development and ExplorationDrilling ofdepthextensions tocommence oncompletion ofdrill driveThe lower Wombat Zone is open at depth with the deepest drillhole (OKU-927J)intersecting 72 metres at 1.8% copper of typical Outokumpu style of mineralisation.Altona has commenced underground development to provide a platform to drill testpossible extensions of the Kylylahti mine at depth and to infill the upper and centralparts of the Wombat orebody. The drive is scheduled to be completed in September2013 with some 70 metres completed to date. Drilling will commence in Septemberand is scheduled to be completed in March 2014.Fifteen drillholes with a total length of 8,700 metres will target depth extensions 200-300 metres below current Ore Reserves (see Figure 1). Typical Wombat geometry attypical Wombat grades would provide an exploration target of approximately 2-3million tonnes at 1.3-1.5% copper. The target is inferred from characteristics andcontinuity demonstrated by other major deposits in the area.7.

QUARTERLY REPORT MARCH 2013About 4,690 metres of underground diamond drilling was completed during thequarter.Potentialextensions toResources inWallaby-Wombat gapDrilling at lower levels of the Wallaby orebody in the gap between Wallaby and thelower Wombat zone intersected interesting high grade mineralisation well above thegrade of the resource model of 1.6-1.8% copper. Best intersections using a 0.4%copper cut-off:6 metres at 5.5% copper in KU-275,7 metres at 4.8% copper in KU-153, and7 metres at 4.2% copper in KU-270.Expansion StudyExpansionunderconsiderationA study of the potential to expand production and de-bottleneck the plant is underwayand should be completed by mid-2013 to confirm the technical and economicfeasibility of higher production rates. Progress is as follows:Kylylahti Mine: Studies to determine if the mine can support a full 24/7 productionroutine and a new mine plan are in progress: Expansion of operations from 5 to 7days remain the most obvious mechanism for lifting production. A new, 7 day perweek employee roster arrangements schedule has been commenced as a trial.Discussion has begun with contractors for the supply of the additional equipment andservices required. Mine planning has focussed on examining the benefits oftransverse as opposed to longitudinal stoping in the deeper, wider Wombat orebody.A new life mine plan document is due for review by the end of June 2013.Luikonlahti Mill: GR Engineering Services have completed a metallurgical and plantaudit to permit design and costing modifications required for the plant. It is expectedthat costing and design of potential modifications will be available during Q3 2013.Permitting: A permit to allow processing above the rate of 550,000 tonnes per annumis in the regulatory approval process. The permit is expected to be available in late2013.Little Eva ProjectLittle Eva hasmining andenvironmentalpermits in placeand a completedDFSA Definitive Feasibility Study (“DFS”) on the 100% owned Little Eva Copper-GoldProject, 90 kilometres north-east of Mt Isa in Queensland, Australia was completed inMay 2012. The Project is 11 kilometres north of MMG’s $1.2 billion Dugald River zincmine, currently commencing development. The fully permitted Little Eva Project ispart of Altona’s larger Roseby Project and represents the first stage of thedevelopment of the large resource inventory at Roseby.Activities during the quarter have been restricted to regional exploration activitiesduring the wet season. The Company is reviewing the Definitive Feasibility Study foropportunities to optimise and improve performance. Work is underway on revised pitoptimisations for the Little Eva deposit using more current financial parameters. Theoptimisations are being carried out based on a variety of production rates toinvestigate the opportunity for an uplift in copper grade at the expense of tonnage. Ifa clear benefit is indicated then the concept may be tested by Reverse Circulation(“RC”) drilling from surface of an in-pit grade control pattern to determine degree of8.

QUARTERLY REPORT MARCH 2013selectivity, ore loss and dilution to support any change in reserve estimation.Discussion with the Department of Environment and Heritage Protection (“DEHP”)have resulted in a less onerous obligation to present environmental managementreports and plans to the department prior to a development decision. Informationrequired by DEHP will now be linked to the commencement of development.Ground survey work has been completed to permit further flood modelling andengineering work on the flood protection bund around the Little Eva pit which willprotect the pit from seasonal flows in Cabbage Tree Creek. This work will determinethe need for any modifications to the bund design in the current EnvironmentalManagement Plan.Roseby ExplorationFirst majorregionalexplorationprogrammeundertaken byAltona atRoseby tocommenceA major regional exploration programme of 7,000 metre Rotary Air Blast (“RAB”)drilling campaign has commenced at Roseby.The programme is designed to complement the proposed 38,000 tonnes per annumLittle Eva development project by testing high value exploration targets which havenear-term potential to deliver additional copper sulphide ore feed to Little Eva. Otherhigh value targets such as Turkey Creek and Airport will be tested later in the fieldseason with RC drilling.The greater Roseby Project represents a major mineral field (Little Eva and DugaldRiver) which is largely unexplored. Altona has spent two years compiling andsynthesising data and field checking old anomalies allowing the Company now tofocus on some of these high value targets.Companion / BrolgaThis target is 30 kilometres south of Little Eva and is a 7 kilometres long north-southtrending zone of small artisanal historic copper workings, outcropping oxide coppermineralisation (with rare visible gold) and high grade rock chip samples ranging up to10-26% copper and 25g/t gold in value. Host rocks are calcareous meta-sedimentaryrocks and are poorly explored. Prior drilling is very sparse (only 4 holes) returningintersections up to 7.5 metres at 0.9% copper.Turkey Creek / Little EvaThe Turkey Creek discovery some 2 kilometres east of Little Eva has been partlydefined by RAB and RC drilling but remains open, particularly to the north. RABdrilling will test for northern extensions and other modest anomalies immediatelyadjacent to Little Eva. Full definition of Turkey Creek is required as it underlies part ofthe proposed tailings storage facility.Green HillsThis major north-south structure is a possible continuation of the two trends whichhosts the Bedford deposit and Turkey Creek prospect. The targets are studded bynumerous artisanal historic workings and, rock chips and soil anomalies. These areoften coincident with magnetic and / or radiometric anomalies.9.

QUARTERLY REPORT MARCH 2013Prospect XThis is a moderate magnetic and radiometric anomaly 18 kilometres south-west ofLittle Eva with associated highly anomalous RAB samples (0.3-0.9% copper).Drilling will commence in late April and will be completed in approximately twomonths.CorporatePartner searchfor RosebyunderwayAltona has commenced a formal process to select a partner to assist in thedevelopment and financing of the Little Eva mine and mill and the greater RosebyProject and explore potential corporate transactions. A number of parties haveexecuted Confidentiality Agreements and are reviewing the Project data room.Altona is also to undertake an optimisation and value engineering exercise on theLittle Eva Definitive Feasibility Study and investigate options for a stageddevelopment.CashStrong cashbalance withA$33.5 millionin each,receivablesand stocksThe Company has A$22.59 million in cash, receivables from concentrate sales ofA$10.4 million and inventories of A$0.63 million. A$1.65 million is also held in cashas security for environmental performance. The cash balance has increased from theprior quarter due to strong performance from the Outokumpu project.Cash movements are tabulated below.Quarterly Cashflow (March quarter)A$ (millions)Opening cash 18.79Proceeds from concentrate sales 23.78Outokumpu operating costs (9.93)Sustaining capital expenditure (5.91)Other capital expenditure (0.68)Debt service (0.51)Roseby activities (0.73)Overheads/Corporate (1.59)Interest received and other (including FX impact on cash) (0.63)Closing cash position 22.59* Sustaining capital includes mine decline development and tailings dam costs etc.Please note that the attached Appendix 5B is required by ASX and forecast cashexpenditure for the fourth quarter excludes all revenues.DebtThe Company has debt of US$20.4 million with Credit Suisse. Principal repaymentscommence in March 2014.10.

QUARTERLY REPORT MARCH 2013HedgingThe Company has copper, gold and zinc hedging denominated in Euros. Deliveriesinto the hedge book this quarter were 816 tonnes of copper at €5,575 per tonne, 873ounces of gold at €1,190 per ounce and 201 tonnes of zinc at €1,475 per tonne.The schedule of outstanding metal deliveries is given below.Outstanding Hedge PositionYear ended30 JuneCopper(t)Copper(€/t)Gold(oz)Gold(€/oz)Zinc(t)Zinc(€/t)2013 180 5,656 873 1,191 201 1,4792014 2,832 5,656 5,000 1,191 795 1,4792015 2,946 5,656 5,004 1,191 804 1,4792016 3,264 5,656 5,003 1,191 809 1,479Total 9,222 15,872 2,609At the time of writing, the copper price was €5,280 per tonne and the gold price€1,092 per ounce.The Company also undertakes short-dated (3 months) hedging to secure revenue forthe period (Quotational Period) between receipt of the provisional invoice and finalpricing. Realised and unrealised gains and losses on Quotational Period hedging arenot included in the realised prices per commodity shown in page 3. Altona hasrecorded a gain of A$0.82 million on these hedges for the quarter.Share Price Activity on ASXQuarter open 0.285¢High 0.305¢Low 0.20¢Quarter close 0.22¢Average daily volume 710,92811.

QUARTERLY REPORT MARCH 2013Competent Persons StatementThe information in this report that relates to Exploration Targets, Exploration Results,Mineral Resources or Ore Reserves is based on information compiled by Dr AlistairCowden BSc (Hons), PhD, MAusIMM, MAIG, Mr Jarmo Vesanto MSc, MAusIMM, MrJani Impola, MSc, MAusIMM and Mr Jari Juurela MSc, MAusIMM. Dr Cowden, MrVesanto, Mr Impola and Mr Juurela are full time employees of the Company and havesufficient experience which is relevant to the style of mineralisation and type ofdeposit under consideration and to the activity being undertaking to qualify as aCompetent Person as defined in the 2012 Edition of the ‘Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Cowden,Mr Vesanto, Mr Impola and Mr Juurela consent to the inclusion in the report of thematters based on their information in the form and context in which it appears.Please directenquiries to:Alistair CowdenJames HarrisManaging DirectorProfessional Public RelationsTel: +61 8 9485 2929 Tel: +61 8 9388 0944altona@altonamining.comjames.harris@ppr.com.auJochen StaigerSwiss Resource Capital AG - GermanyTel: +41 71 354 8501js@resource-capital.ch12.

QUARTERLY REPORT SEPTEMBER 2012Table 1: Resource Estimates for the Roseby ProjectDEPOSITCopper-Gold DepositsTOTALCONTAINEDMETALMEASURED INDICATED INFERREDTonnes Grade Copper Gold Tonnes Grade Tonne Grade Tonnes GrademillionCu AuCu AuCu AuCu Autonnes ounces millionmillionmillion% g/t % g/t % g/t % g/tLittle 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 resource estimation methodology andattributions.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.13.

QUARTERLY REPORT DECEMBER 2012Table 2: Kylylahti Resource Estimate - December 2012Tonnes(m)Cu(%)Measured 1.2 1.50 0.71 0.60 0.27 0.20Indicated 6.4 1.22 0.69 0.55 0.23 0.21Inferred 0.3 0.97 0.57 0.70 0.24 0.18TOTAL 7.9 1.25 0.69 0.56 0.23 0.20Metal Tonnes 99,050 175,750oz 44,250 18,550 16,200See ASX release dated 9 April 2013 for JORC 2012 Compliance.Au(g/t)Zn(%)Co(%)Ni(%)Table 3: Kylylahti Ore Reserves, December 2012Tonnes(m)Cu(%)Probable Ore Reserves 3.6 1.69 0.66 0.67 0.26 0.14Metal Tonnes 60,500 76,100oz 24,000 9,400 5,000See ASX release dated 9 April 2013 for JORC 2012 Compliance.Au(g/t)Zn(%)Co(%)Ni(%)Table 4: Outokumpu Resources, December 2012DepositKylylahtiClassificationTonnes(m)Cu(%)Aug/tZn(%)Co(%)Measured 1.19 1.50 0.71 0.60 0.27 0.20Indicated 6.40 1.22 0.69 0.55 0.23 0.21Inferred 0.31 0.97 0.57 0.70 0.24 0.18Total 7.91 1.25 0.69 0.56 0.23 0.20Saramäki Inferred 3.40 0.71 - 0.63 0.09 0.05Vuonos Inferred 0.76 1.76 - 1.33 0.14 -HautalampiMeasured 1.03 0.47 - 0.06 0.13 0.47Indicated 1.23 0.30 - 0.07 0.11 0.42Inferred 0.90 0.30 - 0.10 0.10 0.40Total 3.16 0.36 - 0.07 0.11 0.43Riihilahti Indicated 0.14 1.69 - - 0.04 0.16Valkeisenranta Indicated 1.54 0.29 - - 0.03 0.71Särkiniemi Indicated 0.10 0.35 - - 0.05 0.70Sarkalahti Inferred 0.19 0.33 - - - 1.02TOTAL 17.20 0.90 0.32 0.45 0.15 0.26See ASX release dated 9 April 2013 for JORC 2012 Compliance.Ni(%)14.

QUARTERLY REPORT MARCH 2013APPENDIX 5BMining Exploration entity quarterly reportName of entityALTONA MINING LIMITEDABNQuarter ended (“current quarter”)35 090 468 018 31 March 2013Consolidated statement of cash flowsCash flows related to operating activitiesCurrent Quarter(3 months)A$’000Year to Date(9 months)$A’0001.1 Receipts from product sales and related debtors 23,778 55,2041.2 Payments for (a) exploration and evaluation (726) (4,685)(b) development (net of grant received) * (5,279) (12,961)(c) production (9,932) (28,789)(d) administration (1,595) (5,615)1.3 Dividends received - -1.4 Interest and other items of a similar nature received 68 4971.5 Interest and other costs of finance paid (508) (1,325)1.6 Income taxes rebate - -1.7 Other** 42 51Net Operating Cash Flows5,848 2,377Cash flows related to investing activities1.8 Payment for purchases of: (a) prospects - -(b) equity investments - -(c) other fixed assets (1,309) (5,785)1.9 Proceeds from sale of: (a) prospects - -(b) equity investments - -(c) other fixed assets - -1.10 Loans to other entities - -1.11 Loans repaid by other entities - -1.12 Other - -Net investing cash flows (1,309) (5,785)1.13 Total operating and investing cash flows (carried forward) 4,539 (3,408)* Cashflows for mine development have be re-classified to this category for the year-to-date followingclarification from the ASX.** Bonds and security deposits15.

QUARTERLY REPORT MARCH 2013Cash flows related to financing activities1.14 Proceeds from issues of shares (net of costs) - -1.15 Proceeds from sale of forfeited shares - -1.16 Proceeds from borrowings - -1.17 Repayment of borrowings - -1.18 Dividends paid - -1.19 Other - -Net financing cash flows - -Net increase (decrease) in cash held 4,539 (3,408)1.20 Cash at beginning of quarter/year 18,799 26,7111.21 Exchange rate adjustments to 1.20 (751) (716)1.22 Cash at end of quarter 22,587 22,587Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the related entities1.23 Aggregate amount of payments to the parties included in item 1.21.24 Aggregate amount of loans to the parties included in item 1.10Current quarter$A’000245-1.25 Explanation necessary for an understanding of the transactionsPayment of directors’ fees, salaries and superannuation to the directors during the quarter.Non-cash financing and investing activities2.1 Details of financing and investing transactions which have had a material effect on consolidatedassets and liabilities but did not involve cash flowsN/A2.2 Details of outlays made by other entities to establish or increase their share in projects in which thereporting entity has an interestN/A16.

QUARTERLY REPORT MARCH 2013Financing facilities availableAdd notes as necessary for an understanding of the position.Amountavailable$A’000Amount used$A’0003.1 Loan facilities(*) - 19,2313.2 Credit standby arrangements - -(*) The Credit Suisse debt facility of US$20 million has been fully drawn down.Estimated cash outflows for next quarter (excluding any proceeds from concentrate sales and otherincome)$A’0004.1 Evaluation/ Exploration (1,456)4.2 Development (4,123)4.3 Production (8,730)4.4 Administration (900)Total (15,209)Reconciliation of CashReconciliation of cash at the end of the quarter (as shown in theconsolidated statement of cash flows) to the related items in theaccounts is as follows.Currentquarter$A’000Previousquarter$A’0005.1 Cash on hand and at bank 11,567 6,2235.2 Deposits at call 11,020 12,5765.3 Bank overdraft - -5.4 Other (provide details) - -Total: cash at end of quarter (item 1.22) 22,587 18,799Changes in interests in mining tenements6.0 See attached Schedule A.17.

QUARTERLY REPORT MARCH 2013Issued and quoted securities at end of current quarter7.1 Preferencesecurities(description)Total numberNumber quotedIssue price persecurityAmount paid upper security- - - -7.2 Changes duringquarter - - - -7.3 Ordinarysecurities 528,937,704 528,937,704 - -7.4 Changes duringquarter- Issued1,666,666 1,666,666 - -7.5 Converting debtSecurities(description andconversion factor)- - - -7.6 Changes duringquarter - - - -7.7 Options(description andconversion factor)365,0001,000,0009,792,749^---Exercise Price$1.50$0.44-Expires30 June 201318 November 2013(various)7.8 Issued duringquarter - - - -7.9 Exercised duringquarter - - - -7.10 Expired duringquarter - - - -7.11 Debentures(totals only) - - - -7.12 Unsecured notes(totals only)- - - -^ Share rights issued pursuant to approved Employee Share Scheme. These Share Rights form part of the Long TermIncentive Scheme in compliance with Altona’s Remuneration Policy. The Share Rights have various expiry dates andperformance hurdles.18.

QUARTERLY REPORT MARCH 2013Compliance statement1. This statement has been prepared under accounting policies which comply with accounting standardsas defined in the Corporations Law or other standards acceptable to ASX.2. This statement does give a true and fair view of the matters disclosed.Sign here: Date: 29 April 2013Company SecretaryPrint Name: Eric Hughes19.

QUARTERLY REPORT MARCH 2013SCHEDULE AFINNISH MINING TENEMENTSInterests in mining tenements relinquished, reduced or lapsed during the quarter.During the quarter two of Kuhmo Metals Oy’s claims expired. Claim extension application for Arola claim wassubmitted as such but Peura-aho claim was reduced to only cover the area outside the Peura-aho mininglicense application area.Interests in mining tenements acquired or increased during the quarterA ten year Hietaharju mining license in Kiannaniemi was granted for Kuhmo Metals Oy. Also two new KuhmoMetals’ claims; Kelosuo East and Kirnulampi were granted during the quarter. These two claims cover thetotal area of 55.2 ha north of Arola deposit.Interests in mining tenements at end of the quarterOUTOKUMPU AREAMining LicensesNumber Name Holder3593/1a Kylylahti Kylylahti Copper Oy3593/1b Kylylahti Kylylahti Copper Oy3593/1c Kylylahti ML extension Kylylahti Copper Oy3593/2a Kylylahti 2 Kylylahti Copper Oy348/1a, 563/1a,98/13b, 257/1a Hautalampi Vulcan Hautalampi Oy7975 Riihilahti Kylylahti Copper Oy553/1a,2a,4a,6a-11a Luikonlahti1-2,4,6-11 Kylylahti Copper Oy1281/1a-2a Petkel I+ II Kylylahti Copper Oy2061/1a Petkellahti Kylylahti Copper Oy553/1a,2a,4a,6a-11a Luikonlahti auxiliary areas Kylylahti Copper Oy553/1a,2a,4a,6a-11a Luikonlahti auxiliary areas Extension Kylylahti Copper OyClaimsNumber Name Holder7799/2 Kylylahti 2 Kylylahti Copper Oy7799/3 Kylylahti 3 Kylylahti Copper Oy7799/4 Kylylahti 4 Kylylahti Copper Oy7914/1 Saramäki 1 Kylylahti Copper Oy7906/1 Perttilahti 1 Kylylahti Copper Oy7906/2 Perttilahti 2 Kylylahti Copper Oy7906/3 Vuonos 1 Kylylahti Copper Oy7906/4 Vuonos 2 Kylylahti Copper Oy7906/5 Vuonos 3 Kylylahti Copper Oy8393/1 Polvikoski 1 Kylylahti Copper Oy8393/2 Polvikoski 2 Kylylahti Copper Oy8393/3 Kylylahti 6 Kylylahti Copper Oy8394/1 Saramäki 2 Kylylahti Copper Oy8525/1 Sukkula 1 Kylylahti Copper Oy20.

QUARTERLY REPORT MARCH 20138525/2 Sukkula 2 Kylylahti Copper Oy7976/1 Kokonvaara Kylylahti Copper Oy7976/2 Perttilahti1 Kylylahti Copper Oy7976/3 Perttilahti2 Kylylahti Copper Oy8623/1 Sivakkavaara 2a Kylylahti Copper Oy8623/2 Sivakkavaara 2b Kylylahti Copper Oy8623/3 Sivakkavaara 3 Kylylahti Copper Oy8974/1 Kokka 2 Kylylahti Copper Oy8974/2 Kokka 3 Kylylahti Copper Oy8974/3 Kokka 4 Kylylahti Copper Oy8974/4 Kokka 5 Kylylahti Copper Oy9106/1 Kokka 6 Kylylahti Copper OyReservationsNumber Name HolderVA2011:0001 Ala-Penikka Kylylahti Copper OyVA2012:0188 Miihkali Kylylahti Copper OyVA2012:0189 Saramäki-South Kylylahti Copper OyKUHMO JOINT VENTUREMining LicensesNumber Name Holder7014 Hietaharju Kuhmo Metals Oy7922 Peura-aho Kuhmo Metals OyClaimsNumber Name HolderSaarikylä belt7789 Vaara Kuhmo Metals Oy8049/1 Kotisuo Kuhmo Metals Oy8049/2 Kauniinlampi Kuhmo Metals Oy8049/3 Hoikkalampi Kuhmo Metals Oy8049/4 Rytys Kuhmo Metals Oy8049/5 Vaara North Kuhmo Metals Oy8396/1 Hoikka Kuhmo Metals Oy8618/1 Hakovaara Kuhmo Metals Oy8602/1 Vaara West Kuhmo Metals OyKiannanniemi7922/1 Peura-aho Kuhmo Metals Oy8033/3 Peura-aho North Kuhmo Metals Oy8033/1 Peura-aho East Kuhmo Metals Oy8033/2 Peura-aho NE Kuhmo Metals Oy8033/5 Peura-aho SW Kuhmo Metals Oy8033/4 Peura-aho South Kuhmo Metals Oy8618/3 Myllyaho 1 Kuhmo Metals Oy8618/4 Myllyaho 2 Kuhmo Metals Oy8745/1 Hietaharju North Kuhmo Metals OyHuutoniemi8476/1 Huutoniemi 1 Kuhmo Metals Oy8476/2 Huutoniemi 2 Kuhmo Metals Oy8476/3 Huutoniemi 3 Kuhmo Metals Oy8476/4 Huutoniemi 4 Kuhmo Metals Oy21.

QUARTERLY REPORT MARCH 2013Moisiovaara8047/4 Luokkivaara Kuhmo Metals Oy8055/1 Luokkipuro Kuhmo Metals Oy8055/2 Hyyrylainen Kuhmo Metals Oy8049/7 Sika-aho Kuhmo Metals Oy8049/8 Paatola Kuhmo Metals Oy8049/9 Likosuo Kuhmo Metals Oy8049/10 Karsikkosuo Kuhmo Metals Oy8049/11 Lehdonmaa Kuhmo Metals Oy8049/12 Harju Kuhmo Metals Oy8049/13 Yhteisenaho Kuhmo Metals Oy8049/14 Selkajarvi Kuhmo Metals Oy8049/15 Kaartilanvaara Kuhmo Metals Oy8049/16 Kaivolampi Kuhmo Metals Oy8049/17 Paatolaislampi Kuhmo Metals Oy8233/1 Kinnula Kuhmo Metals Oy8233/2 Kupusenkangas Kuhmo Metals Oy8242/6 Metsälä Kuhmo Metals Oy8242/4 Viima-aho Kuhmo Metals Oy8242/5 Rinneaho Kuhmo Metals Oy8242/3 Kemppaanlehto Kuhmo Metals Oy8956/2 Lehdonmaa South Kuhmo Metals OyArola - Harma North7923/1 Arola Kuhmo Metals Oy8047/1 Arola South Kuhmo Metals Oy8047/2 Palovaara South Kuhmo Metals Oy8047/3 Tiikkaja-aho Kuhmo Metals Oy8043/1 Kelosuo South Kuhmo Metals Oy8049/18 Karhujarvi Kuhmo Metals Oy8049/19 Palovaara Kuhmo Metals Oy8049/20 Putkisuo Kuhmo Metals Oy8049/21 Kelosuo Kuhmo Metals Oy8049/22 Pitkaaho Kuhmo Metals Oy8242/2 Antinaho Kuhmo Metals Oy8242/1 Nyberginlehto Kuhmo Metals Oy8500/1 Korkea-aho 2 Kuhmo Metals Oy8500/2 Korkea-aho 3 Kuhmo Metals Oy8762/1 Naurissuo Kuhmo Metals Oy9412/1 Tiikkaja-aho 2 Kuhmo Metals Oy8955/1 Kelosuo East Kuhmo Metals Oy8955/2 Kirnulampi Kuhmo Metals OyKuhmo Area8055/3 Siivikkovaara Kuhmo Metals Oy8055/4 Niemenkyla Kuhmo Metals Oy8049/24 Riihilampi Kuhmo Metals OyKOTALAHTI AREA NICKELMining LicensesNumber Name Holder6977/1a Särkiniemi Vulcan Kotalahti Oy7739 Valkeisenranta Vulcan Kotalahti Oy22.

QUARTERLY REPORT MARCH 2013Claims8483/1 Kotalahti 1 Vulcan Kotalahti Oy8483/2 Kotalahti 2 Vulcan Kotalahti Oy8413/4 Valkeisenvuori Vulcan Kotalahti Oy8413/6 Pölkkysuo Vulcan Kotalahti Oy8413/9 Pölkkysuonkangas Vulcan Kotalahti Oy8413/10 Rytkynlampi Vulcan Kotalahti Oy8413/11 Ollinsalmi 2 Vulcan Kotalahti Oy8413/12 Valkeisenhiekka Vulcan Kotalahti OyReservationsNumber Name HolderVA2011:0073 Sarkalahti Vulcan Kotalahti OyVA2012:0145 Mäntymäki Vulcan Kotalahti OyVA2012:0146 Hyvelä Vulcan Kotalahti OyVA2012:0147 Sahakoski Vulcan Kotalahti OyAUSTRALIAN MINING TENEMENTSInterests in mining tenements relinquished, reduced or lapsed during the quarterDue to the grant of mining leases 90162 to 90166 in Q4 – 2012, any whole sub-blocks that formed prerequisitetenure to the MLs was required to be surrendered. EPMs 8506 – Mt Roseby, 10266 - Highway and14822 – River Gum were reduced by 16, 6 and 4 sub-blocks respectively.Interests in mining tenements acquired or increased during the quarterNo mining tenements (e.g. EPMs) were acquired during the quarter. Renewal applications for eight (8)greater Roseby Project EPMs are currently being processed by the Qld DNRM.The area under granted EPMs within Queensland presently totals 1,494.0km 2 .Interests in mining tenements at end of the quarterQUEENSLAND – ROSEBY PROJECTMining Leases (ML)Number Name Holder90162 Scanlan Altona Mining Ltd / Roseby Copper Pty Ltd90163 Longamundi Altona Mining Ltd / Roseby Copper Pty Ltd90164 Blackard Altona Mining Ltd / Roseby Copper Pty Ltd90165 Little Eva Altona Mining Ltd / Roseby Copper Pty Ltd90166 Village Altona Mining Ltd / Roseby Copper Pty LtdExploration Permit for Minerals (EPM)Number Name Holder8059 Cameron River Altona Mining Ltd8506 Mt Roseby Altona Mining Ltd / Roseby Copper Pty Ltd9056 Pinnacle Altona Mining Ltd / Roseby Copper Pty Ltd10266 Highway Altona Mining Ltd / Roseby Copper Pty Ltd10833 Cameron Altona Mining Ltd / Roseby Copper Pty Ltd11004 Ogorilla Altona Mining Ltd / Roseby Copper Pty Ltd11611 Gulliver Altona Mining Ltd / Roseby Copper Pty Ltd12121 Gulliver East Altona Mining Ltd / Roseby Copper Pty Ltd12492 Queen Sally Altona Mining Ltd / Roseby Copper Pty Ltd12493 Quamby Altona Mining Ltd / Roseby Copper Pty Ltd12529 Cabbage Tree Altona Mining Ltd / Roseby Copper Pty Ltd13249 Lilliput Altona Mining Ltd / Roseby Copper Pty Ltd23.

QUARTERLY REPORT MARCH 201314363 Bannockburn Altona Mining Ltd14365 Corella Altona Mining Ltd14535 Roseby Infill Altona Mining Ltd / Roseby Copper Pty Ltd14556 Coolullah Altona Mining Ltd14822 River Gum Altona Mining Ltd18784 Roseby East Roseby Copper Pty Ltd18983 Coolullah North Roseby Copper Pty LtdQUEENSLAND – REGIONAL PROJECTSExploration Permit for Minerals (EPM)Number Name Holder9611 Happy Valley Altona Mining Ltd14367 Spider14370 Malakoff Altona Mining Ltd14371 Mt. Angelay Altona Mining LtdAltona Mining Ltd (49%) / Deep YellowLimited (51%)24.

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