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1INTERNATIONAL BASE METALS LIMITED
INVESTORPRESENTATIONNovember 2010
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Disclaimer
This document contains certain "forward–looking statements", including, but not limited to, statements concerning current and future drilling programmes, estimation of mineral resources, the continuing development plan, the type of mineralisation present and expected results. Information inferred from the interpretation of drilling results may be deemed to be a forward looking statement, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Statements and estimates concerning mineral resources may also be deemed to be forward looking statements in that they involve estimates, based on certain assumptions, regarding the mineralisation that would be encountered if and when a mineral deposit is actually developed and mined. Forward looking statements are not historical facts, and are subject to a number of risks and uncertainties beyond management’s control. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward–looking statements include, among other things, but without limitation, those set forth in the Annual Report and the website (www.interbasemetals.com) of International Base Metals Limited (IBML).
For more information about the Company’s properties and projects, please refer to the 2009 Annual Report.
The technical information contained in this document was compiled by Dr Ken Maiden (MAIG, FAusIMM), a Director of International Base Metals Limited. Dr Maiden is a Member of the Australian Institute of Geoscientists and a Fellow of the Australasian Institute of Mining and Metallurgy. He has sufficient experience to qualify as a Competent Person as defined in the September 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Maiden consents to the inclusion of the matters in the form and context in which they appear.
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Section 1 – Introduction
INTRODUCTION
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International Base Metals Limited (IBML)
NAMIBIA AUSTRALIA
Project Areas
Unlisted public company based in Sydney, Australia Exploration in low-risk jurisdictions – Australia and Namibia Omitiomire project, Namibia – over 550,000 tonnes contained copper (Cu) Positive pre-feasibility study (PFS) – June 2010 Three other Namibian copper projects Three other early stage projects in Australia Strong cornerstone investor – West Minerals Pty Ltd
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Board of Directors
Dr James MacdonaldChairman; ex Chief Geoscientist for BHP Billiton; ex Exploration Manager, Homestake Chile
Mr Frank BethuneManaging Director; ex Mine Manager, Sunrise Dam, Western Australia; ex General Manager, Navachab gold mine, Namibia
Dr Ken MaidenFounding director of IBML; successful exploration geologist, ex CSR, MIM
Dr Deng JiniuChairman of Qinghai West Resources Co Ltd; successful exploration geologist
Mr Chen QiangInternational commodities trader and investor (Alternate to Dr Deng)
Mr Alan HumphrisCorporate advisor; ex Head of Hambros Australia and former director of JP Morgan Australia
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Capital Structure and Shareholder Register
As at 3 November 2010
Shares on Issue 329,790,812Options
– 20 cents exp 20/12/2012 22,000,000– 30 cents exp 02/10/2013 2,500,000
MAJOR NUMBER OF %SHAREHOLDERS SHARES
WEST MINERALS PTY LTD 104,993,158 31.8 HANGZHOU KINGS INDUSTRY CO LIMITED 23,333,333 7.1 MANICA MINERALS LTD 15,000,000 4.5 BLACKMANS & ASSOCIATES PTY LTD 14,470,558 4.4 PEARL GLOBAL INVESTMENT LIMITED 13,333,333 4.0 MAIDEN FAMILY SUPER FUND 11,077,307 3.4 GREAT SEA WAVE INVESTMENT PTY LTD 9,167,333 2.8 MACQUARIE BANK LTD 8,333,333 2.5 PERPETUAL CORPORATE TRUST LIMITED 8,333,333 2.5 PEAK SUCCEED INVESTMENTS LIMITED 6,666,667 2.0
Supportive cornerstone investor : WEST MINERALS PTY LTD
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Global copper shortfall by 2011 Average US$3.00 /lb in 2010 Average US$3.30 /lb in 2011 Average US$3.86 /lb in 2012
(Barclays Commodity Research, 02/2010)
The Copper Market – Going Forward
US government analysis forecasts a copper resource shortfall over the next 15 years equivalent to ~30 typical porphyry copper deposits (Singer, 2009)
Copper (since 2005)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
3/01/05 3/01/06 3/01/07 3/01/08 3/01/09 3/01/10
US
$/lb
Source: IRESS
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Why Namibia?
Low political risk Well-developed mining
industry Under-explored major base
metal trends Good infrastructure Effective mining & taxation
legislation Security of tenure Effective bureaucracy Full convertibility for
foreign investment Good exploration & mining
support Exploration tenements
clustered into severalproject areas
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Omitiomire Project – Infrastructure
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IPO - Use of Funds
Use of Funds - Summary A$ million
Omitiomire DFS (1 year) 17.0Long lead-time items 1.0Exploration (2 years) 6.0Corporate (2 years) 4.0
TOTAL 28.0 plus IPO costs
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Section 2 – Omitiomire Project
OMITIOMIRE PROJECT
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Omitiomire Project – Resource
Cut-off (%Cu) Ore (Mt) Cu% Cu (t) Cu (Mlb)
0.10 202 0.36 726,000 1,600
0.20 143 0.45 638,000 1,406
0.25 117 0.50 579,000 1,277
0.35 74 0.61 453,000 999
0.45 50 0.71 356,000 785
Summary of resource estimates (~ 20% Indicated, 80% Inferred)(Hellman & Schofield Pty Ltd, 2010, Independent Report)
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Omitiomire Project – Geology
305 holes totalling > 42,000m Deposit covers 2,600m x 700m Dips east –
depth > 150m at eastern edge Plunges north –
depth > 150m at northern end Remains open at depth to northeast Known low grade zone to southeast
- not yet quantified Further geochemical anomalies to
be tested
Proposed pit outline
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Omitiomire Project – Mining and Processing (PFS)
Item Parameter
In-pit ore 69 million tonnes at 0.55% Cu
Waste to ore ratio 5-6:1
Crusher feed 6 million tonnes per annum
Processing Crush, dense medium separation (DMS), grind, flotation
Mill feed
Overall Recovery
3.45 million tonnes at 1% Cu
Sulphides – 90%, oxides – 63%
Concentrate 30,000 – 36,000 tpa Cu in concentrate at +50% Cu
Capex (incl mining) US$297 million
Opex (before royalties & taxes) US$1.30 – 1.65/lb
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Omitiomire Project – Pit Design
Isometric view, looking north:
Final pit design of Cut 1 & Cut 4
of the 69 Mt pit
1.00%
0.50%
0.35%
0.20%
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Omitiomire Project – Mineralogy and Metallurgy
Coarse-grained chalcocite & minor bornite Partly oxidised to 40m depth Crush / screen / dense medium separation
– low tech / low cost upgrade Overall 90% sulphide copper recovery
and 63% oxide copper recovery Sulphide flotation: +50% Cu concentrate No deleterious elements (no arsenic, etc)
2 cm
500 µm
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Omitiomire Project – Process Flow Chart
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Section 2 – Omitiomire Project
Benchmarking
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Political risk (Fraser Institute ranking 2009 – 2010)
Namibia compares very favourably as a destination for mining companies to conduct business
Note: 100 is a perfect score
Source: CRU Strategies
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Resource grade comparison (% Cu)
Omitiomire resource grade after pre concentration
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With an estimated concentrate grade of 55% Copper, Omitiomire will have the highest grade product of all new, open pit, greenfield mines
Concentrate grade comparison (% Cu)
Source: CRU Strategies
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Capital cost per tonne (US$/tonne)
And almost the lowest on a capex per annual tonne of contained copper basis
Source: CRU Strategies
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Omitiomire Global Ranking
Source: Austock Research
Omitiomire Copper Project ranks at #22 on Global project rankings (Top 10 percentile) for open pit, undeveloped copper projects globally
Ranking based on a weighted basis according to the following criteria:
– Contained Resource (10%)
– Resource Grade (5%)– Contained Reserve
(15%)– Reserve Grade (15%)– Regional Country
Prospectively (10%)– Political Risk (45%)
OverallRank Project Company Country
1 Quellaveco Anglo American Peru2 Tambo Empresa Minera Peru3 Rio Blanco ZiJin Peru4 Mina Justa China Sci-Tech Peru5 Toromocho Chinalco Peru6 El Morro Goldcorp / New Gold Chile=6 Wafi Newcrest / Harmony PNG7 Cobre Panama Inmet Panama8 118 Vale Brazil9 Roseby Altona / Xstrata Australia10 Zeta Discovery Metals Botswana...20 Rosemont Ranch Augusta United States21 Prosperity Taseko Canada22 Los Sulfatos Anglo American Chile
=22 Omitiomire IBML Namibia23 Morrison-Hearne Hill Pacific Booker Canada24 La Arena Rio Alto Peru
=24 Blackard Xstrata Australia25 Bedford Xstrata Australia…
290 Langmuir Golden Chalice Canada291 Alexo Canadian Arrow Canada292 Kuhmo Altona Finland293 Mäntymäki Suomen Nikkeli Finland294 Jerusalem Dynasty Metals Ecuador
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Section 3 – Other Projects
Exploration Potential – Namibia and Australia
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Exploration Projects in Namibia
Focus on copper Extensive tenement position EPLs provide security of tenure Good access to all project areas Project areas:
- Omitiomire
- Steinhausen
- Kamanjab
- Kalahari Copperbelt
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Omitiomire Area – Near-Mine Exploration Potential
Soil geochemical surveys have identified extensive geochemical anomalies associated with Ekuja Dome
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Steinhausen Project
Large tenement position Surrounds Omitiomire Known copper occurrences Good geochem anomalies Under-explored
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Kalahari Copperbelt Project
Craton holds 3 tenements with known copper occurrences
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Kamanjab Project
Tenements cover over 100 km strike of prospective strata
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Australian Projects
Early-stage projects Cobar, NSW:
- historic Cu-Au mines
- JV Maranoa, Queensland:
- Ni-Cu targets Mount Isa, Queensland:
- Cu targets New project generation:
- in progress
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Why Invest in IBML?
JORC compliant Resource of 117 million tonnes of ore
Recently completed pre feasibility study supports attractive project economic potential
Namibia is a favourable country for mineral exploration and investment
Highly prospective tenements around Omitiomire Project
Potential for significant resource growth in other Namibian and Australian tenements
Experienced Board and management team with extensive skills in the resources sector
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APPENDIX
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Omitiomire Project Details
Appendix
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Omitiomire Project – Geological Setting
Two basement domes; partly bounded by large thrust zones
Omitiomire deposit and other copper prospects are hosted by metamorphic rocks of the Ekuja Dome
Domes consist of quartz-feldspar (‘felsic’) gneiss, amphibolite and biotite schist
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Omitiomire Project – Geological Setting
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Potential In Pit Resource Increase
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Potential Adjacent to Pit Resource Increase
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Outside Pit Resource Targets
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Ekuja Dome Resource Targets
Extensive copper geochemical anomalies
Shallow RAB drilling confirms copper in target areas
Follow-up drilling to commence in 2011
Omitiomire deposit
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Potential Pit Design Improvements
Improvements to design include: Remove dual ramps Design slopes to geotechnical
recommendations
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Potential Geotechnical Pit Slopes
Additional Geotechnical drilling will provide more information that may
allow for steeper slopes
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IBML Contact Details
International Base Metals Limited
Address Level 8 / 275 George Street
Sydney NSW 2000 Australia
Telephone +61 (0) 2 8223 3777
Fax +61 (0) 2 8223 3799
Email [email protected]
Website http://www.interbasemetals.com