Admiralty Resources NL ABN 74 010 195 972 Registered in Australia Registered Office: Level 14, 200 Queen Street Melbourne Victoria 3000 Australia Tel: +61 3 9642 8787 Fax: +61 3 8677 6949
CORPORATE STRUCTURE
ADMIRALTY RESOURCES NL
SUBSIDIARIES
FORTUNE GLOBAL HOLDINGS
INVERSIONES ADMIRALTY RESOURCES CHILE LIMITADA
PYKE HILL RESOURCES
BULMAN RESOURCES
FIVE STAR RESOURCES ADY INVESTMENTS
(currently inactive)
SCM VALLENAR IRON COMPANY
S. B. GRANELES S.A.
LAST 6 MONTHS IN A NUTSHELL
NOVEMBER 2008 JUNE 2009
Increase in company assets and gain smoothness at management level. Settlement of all legal issues. Reduction of debt:
A$11.8m to Hawskwood Investments Pty Ltd’s Receivers and A$1.9m owed to private investors paid off in December 2008 Debt of US$12m to Ya Global Investments reduced to US$6.1m
MINING PLAN FOR 2009 & BEYOND
Geology and Explorations Department - Gerencia de Geología y Exploraciones
VALLENAR IRON’S PROPERTIES AT A GLANCE
CHILEAN IRON ORE BELT
Cerro Imán (Santa Fe)
OUR TENURE (11,000 Ha)
Copiapó
Pampa Tololo (5,500 Ha)
Manto Negro (Vechiolla) Boquerón Chañar (Hostchild, 500 mt) Los Colorados (CMP, 245 mt) Huasco Las Sosas, Huanteme, Chañar Quemado (CMP, 73 mt) Freirina Vallenar
Vallenar
JAPONESA GROUP (VIC, 231 MT @ 18% FE) Japonesa and the mine operations area (4,700 Ha)
Algarrobo (CMP)
ARGENTINA
Leo Sur (900 Ha)
El Romeral (CMP) La Serena
Geology and Explorations Department - Gerencia de Geología y Exploraciones
PRODUCT SPECIFICATION
The geological composition of the deposit is one of the most concentrated magnetite deposits known to exist. IRON ORE GEOLOGICAL MAKE UP (%)
• • • • • Iron (Fe) Silica (Si02) Alumina (Al203 ) Phosphorus (P) Sulphur (S) 63.50 5.00 1.20 0.07 0.01
Geology and Explorations Department - Gerencia de Geología y Exploraciones
JAPONESA GROUP AEROMAGNETIC SURVEY VIEW
Chillán Viejo Viviana Japonesita Japonesa Mirador Primavera
Pit 1
JAPONESA MINE
Mariposa
Camp
Pit 2
Plant
Negrita Soberana
Geology and Explorations Department - Gerencia de Geología y Exploraciones
IRON MINERAL RESOURCES, SRK (2007)
Cut-off Grade 10%, * 9%
DEPOSIT INFERRED RESOURCES Tonnage Japonesa * Japonesita Mariposa 6,434,700 23,187,195 98,098,146 % 16.51 23.452 17.739 INDICATED RESOURCES Tonnage 41,876,400 39,521,222 70,290,801 % 13.87 16.87 18.66 TOTAL RESOURCES Tonnage 48,311,100 62,708,417 168,388,946 % 14.22 19.30 17.95
*5,338,612 tonnes of mineral have been mined from the date that SRK performed the measurement of the resources till October 2008.
Geology and Explorations Department - Gerencia de Geología y Exploraciones
BUSINESS PLAN
A detailed review of Vallenar Iron’s iron deposits has been undertaken to ascertain n Chile what will it cost for the company to mine these resources. Mine cost per tonne
- Rail cost per tonne - Transport - Operations
Loading cost per tonne
Geology and Explorations Department - Gerencia de Geología y Exploraciones
STRUCTURE OF THE MINE OPERATIONS
MINE OWNERSHIP
100%
ADY to secure fleet leases over transport, rail equipment and ship loaders including stand-by or portable power units.
LEASE
Geology and Explorations Department - Gerencia de Geología y Exploraciones
STRATEGIC OBJECTIVES
1. MEASURED AND INDICATED RESOURCES Japonesita, Mariposa, Primavera and Mirador • Validation check of the Geologic Model (Check and re-log of the drill holes, • • • • • •
reinterpretation of the geologic profiles, incorporate the magnetic iron and total iron variable in the model) Infill program design for each area (availability of drilling companies & costs)
Drilling program Field Geotechnical campaign Metallurgical tests (grinding & crushing test, dry & wet magnetic concentration test, microscopic analisys of Fe species) New resource estimation (SRK and in-house) Mineral reserve estimation (mine plan)L SRK, Metalica, or any other third party
2. BROWN FIELD EXPLORATION Chillán Viejo, Viviana, Negrita, Soberana, Pampa Tololo • Geologic mapping 1:20.000 and 1: 5.000 • Rock, soil and chip geochemical compilation • Ground mag in the rest of the area • Interpretation and target definition • Drilling program
Geology and Explorations Department - Gerencia de Geología y Exploraciones
DRILLING PROGRAM COST 2009 - 2010
Geology and Explorations Department - Gerencia de Geología y Exploraciones
FOB PRICE PER TONNE
Based on mining a minimum of 10 years at a conservative production rate of 2,500,000 tonnes per annum
Capital Works
RAILWAY UPGRADE BRIDGES TRAIN & OFF MINE MOBILES WHARF SHIPLOADER CAMP ADMINISTRATION OVERHEADS PRE-DRILLING STUDIES MINING FUEL & CONSUMABLES
x $1000
$36,175 $600
Cost per tonne
$3.15 $0.25 $5.63
Comments
Rebuild every 5 years Annualized cost Annualized cost Annualized cost Annualized cost Annualized cost Annualized cost Annualized cost Annualized cost Annualized cost
$42,976 $9,378 $768 $445 $5,100 $23,317
$0.50 $0.11 $0.31 $0.18 $0.20 $9.33 $5.00
Total/Tonne Shipped
$US24.66
Geology and Explorations Department - Gerencia de Geología y Exploraciones