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Heap Leach Demonstration Plant

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					Nickel Laterite Heap Leaching
   Çaldağ project - Turkey
    Association of Mine Analysts
          Little Ship Club
       London - March 2005
         Company Information
• 4 years privately funded
  development
• $2.5m convertible loan
  from Standard Bank Nov
  03
• Listed on AIM, 31st March
  2004, raised £15m
• 98.2m shares in issue
• 44.8m warrants and
  options
• Cash £6m
• Market capitalisation
  £35m
                                Group Structure
                                European Nickel PLC

             97.7%                 100%                100%            100%                100%          100%
Bosphorus            Adriatic Nickel      Dinara Nickel         Morova            Vardiste          Ozren doo
  Nickel              Resources              d.o.o.           Nickel L.L.C       Nickel doo          Sarajevo
Madencilick              sh.p.k             Beograd                               Zvornik

Turkey                Albania             Serbia &        Kosovo              Republic Srbska     Federation of
                                          Montenegro                                              Bosnia and
2 years in            2 years                             Several             Several
                                                                                                  Herzegovina
country               exploration in      Several         deposits            deposits
                      country             deposits        identified          identified          Several
Çaldağ deposit
                                          identified                                              deposits
licensed and          8 deposits                          5 exploration
                                                                                                  identified
permitted             evaluated           1 exploration   licence
                                          licence granted applications
40,000 tonnes         2 pre-feasibility
trial mine and        studies
export
Trial heaps under
irrigation
             EN Development
• Balkan laterites
  – Low clay content
  – Rock characteristics
     • Variable hardness and leach characteristics between
       deposits
     • Developed laterite profile
• Heap leaching testwork
  – 10 years, various laboratories
  – Similar process to copper heap leaching
• Commercialisation by European Nickel
           Çaldağ project location
• Çaldağ deposit 75km from Izmir
  – Second largest deep water
  port in Turkey, 3rd largest city




                                     • Western Turkey
                                     • Good infrastructure
                                        –   Deep water port
                                        –   Good highways
                                        –   Rail 5km from deposit
                                        –   HV power at site
    Çaldağ Project – Production
• 2 million tpa mining rate
• 15,000tpa contained nickel
• 800tpa contained cobalt
• Mixed hydroxide product, 30-35% metal
  content
• Sulphur burning acid plant
• Capex - current estimate $150m
 Çaldağ JORC Resource
    Resource       Ore kt          Ni%           Co%
    Indicated       3,500          1.39           0.06
    Inferred       34,400          1.12           0.04
    Total          37,900          1.14           0.05
                        Source: Butty Herinckx and Partners


• 430kt contained nickel
• 19kt contained cobalt
• $6 billion contained nickel (current
  prices)
            Drilling Programme


• 30,000 metre drill
  programme completed

• Updated resource
  April/May 2005

• MTA geological data
  integrity confirmed
           Commercial trial heap
• Objective
   –   Demonstrate permeability
   –   Demonstrate recoveries
   –   Measure acid consumption
   –   Produce product
   –   Ship product
• 1st Heap
   – Irrigation started Oct 04
• 2nd Heap
   – Irrigation started Feb 05
• 3rd Heap
   – Under construction
• Downstream plant
   – Being commissioned
        New process – Yes ….
• Heap design – copper & gold industries
  – Materials, liquid control, HDPE science
• Downstream processing - simple
  – Iron precipitation – numerous installations
  – Nickel cobalt precipitation
     • Cawse
     • Ravensthorpe
     • Most newcomers
• Economics
  – Low power, low emissions
  – Sulphur and acid prices

          but not completely
               BHP Billiton
• World’s largest mining group
• Nickel division
  – Yabulu refinery suited for MHP product
  – Other novel nickel technologies
  – Potentially 3rd largest nickel producer in world
  – 10 years work on nickel laterite heap leaching
  – Patents
• Joint development programme on nickel
  laterite heap leaching
               Joint Development
• Options                 • Technology             • Offtake
  – $200k on signing        – Pooling of heap        – Right to 50% of
  – $1.5m paid on             leach technology         Çaldağ offtake
    start of irrigation     – Access to                on exercise of
  – $4.3m second              BHPB’s                   second option at
    option before             technology and           market rates
    60% nickel                patents for heap       – Rights to further
    extraction                leaching and             30% at market
  – Option to JV              product definition       rates
    projects                – Input from
    depending on              BHPB’s
    size                      technology
                              centres.
                Programme
•   Heap construction started     May 04
•   Heap 1 Irrigation             October 04
•   Heap 2 Irrigation             March 05
•   Commission downstream plant   March 05
•   Heap 3 Irrigation             April 05
•   Feasibility study complete    3Q05
•   Financing complete            End 05
•   First Product                 1Q07
•   Full production               2Q08
           Balkan region
     Past and current production
• Current production
  – Greece – Larco ferronickel smelter
  – Macedonia – Feni ferronickel smelter
• Past production
  – Albania – ferronickel production
  – Serbia (Kosovo) – ferronickel production
• Region
  – 26,000 tpa nickel production in ferronickel
  – High cost producers (high capital installations)
Regional potential
                Conclusions
European Nickel has:
• Cash
• Alliance with the world’s largest mining company
• Proven management
• A resource base to support the project
• Future growth developing similar deposits in
  Turkey and the Balkans
• Nickel in solution from heap leaching a laterite
• Shortly - Product

				
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