AusIMMMelbourne Branch

6 March 2008Tom Eadie FAusIMM

MOVING TOWARDS PRODUCTION

The

Einasleigh Project

Today’s Presentation

LOCATION & PERSPECTIVE

THE DEPOSITS

EXPLORATION POTENTIAL

THE CHALLENGES

CURRENT PROGRESS TO FEASIBILITY

SUMMARY

March 08

Location of Einasleigh

N

0 200km

Mt Garnet

Balcooma

GreenvaleKidston

Chillagoe

Charters Towers

Maitland

Thalanga

Einasleigh

Cairns

Townsville

Copperfield River in “normal” times

Copperfield River in February 2008

0 50 100

GeorgetownBlock

(incl Einasleigh)

0 50 100

Curnamona Craton(incl Broken Hill)

Mt Isa Inlier

Relative Sizes of Broken Hill - type Terranes

0 50 100

Relative Sizes of Broken Hill - type Terranes

0 50 100

Broken Hill Block Einasleigh Metamorphics Eastern Succession of The Mount Isa Block

Einasleigh

Broken Hill

Ernest Henry

Eloise

Cannington

Dugald River

Osborne

Selwyn

Einasleigh Regional Geology

THE DEPOSITS

EINASLEIGH – MOVING TO PRODUCTION

Chloe

Jackson

Railway Flat

Einasleigh Copper Mine

Kaiser Bill

March 08

JORC Resources

March 08

Einasleigh JORC Resources

March 08

Prospect Resource

Chloe Inferred: 1.8Mt @ 5.1% Zn, 2.2% Pb, 42g/t Ag and 0.3% Cu

Jackson Inferred: 0.5Mt @ 5.3% Zn, 4.1% Pb, 115g/t Ag and 0.1% Cu

Railway Flat

Inferred: 0.8Mt @ 4.3% Zn, 1.4% Pb, 23g/t Ag and 0.2% Cu

Einasleigh Indicated: 0.5Mt @ 4.0% Cu, 0.22g/t Au and 18g/t AgInferred: 0.6Mt @ 1.9% Cu, 0.1g/t Au and 8g/t Ag

Kaiser Bill Indicated: 10.9Mt @ 0.81% Cu, 0.13g/t Au and 6g/t AgInferred: 1.9Mt @ 0.85% Cu, 0.14g/t Au and 5g/t Ag

Copper Strike (incl Walford Creek)Increase in Resource Inventory

119

194 194

0 0

260

496

00

100

200

300

400

500

600

2004 2005 2006 2007

Tonn

es o

f Met

al (o

oo)

Copper

Zn / Pb

March 08

Chloe Trend

March 08

ChloeJackson

500m

Chloe 3D Model

March 08

Intersection23.6 m @ 7.9% Zn,

3.2% Pb, & 0.4% Cu

Inferred Resource1.8Mt @ 7.6%

Zn/Pb/Cu

Surface

400metres

200metres

Chloe Alteration

0 10m

Assemblages

4

3

2

1

Po-cal-spGar-px-amp-sp

Mag-gar-spQtz-ep

Simplified zoned alteration pattern

Chloe Mineralisation

CH007 variation, garnetite to po-cal-sp

Inferred Resource 0.5Mt @9.5%

Zn/Pb/Cu

Possible outline of additional

mineralisation

Surface

200metres

100metres

Jackson 3D Model

Details of this area in next slide

Jackson – Cross Section

Jackson(progressive replacement of amphibolite)

Railway Flat

6m @10.1% Zn/Pb/Cu

11m @5.3% Zn/Pb/Cu

RF045

Host biotite gneisses – little altered

Einasleigh Copper Mine

100mbelow surface

East Limb485,000t 4.0% Cu

(Indicated)

Old Einasleigh CopperMine Workings

& Shaft

Surface

200mbelow surface N

West Limb340,000t 1.7% Cu

(Inferred)

Einasleigh Copper Mine

Two styles of mineralisation:•Massive py-po-cp-chlorite (east limb, high grade)•“Skarn” gar-amp-px-mag-bar-py-po-cp (west limb, lower grade)

Host is psammitic metasedimentMineralisation ages younger than host (Evins et al)

Kaiser BillStringer system mag-py-po-cp-chlHost biotite gneisses – little altered

Kaiser Bill

EXPLORATION

March 08

Prospects

Bloodwood – 5m @ 9.3% Zn/Pb/Cu & 43g/t Ag

Teasdale – 45m @ 0.9% Cu & Au, Ag

Advanced ProspectNew Prospect

JORC Resource

Dreadnought – 5m @ 5.6% Zn/Pb/Cu & 19g/t Ag

Young – 17m @ 4.4% Zn/Pb/Cu & 31g/t Ag

Area 2

Area 1

Dreadnought to Teasdale Trend (Area 1)

March 08

N

0 1000m

Younger Volcanics

Chloe

Jackson

Dreadnought

Young

Teasdale?

?

Wipe out yv

?

New Prospects to West (Area 2)

THE CHALLENGES

URGENCY

RESOURCE DEFINITION vs EXPLORATION

MINING / SCHEDULING

METALLURGY

INFRASTRUCTURE

SOFTER ISSUES

March 08

Urgency

Take advantage of today’s prices

Start small and grow bigger

Focus on drilling for resource definition

Get the project off the ground

Patience

Get the scale right

Focus on exploration

Full Bankable Feasibility Study

Big Co. ApproachSmall Co. Approach

vs

Mining / Scheduling

vs

Five different deposits –

o Copper

o Medium grade

o Close to mill

o Open pit

o Flexibility of mill

o Metallurgy

o Capital costs

Hard to rank

o Zinc / Lead

o High grade

o 15 km trucking

o Underground

o Customer demands

o Ease of mining / transport

o Operating costs

Jackson & Chloe Pits

March 08

Jackson Pit in Section

March 08

Chloe Pit in Section

March 08

Metallurgy

Einasleigh Copper Mine – easy and excellent

Kaiser Bill – pre-concentration possibilities?

Zinc / Lead – coarse liberation of metals though pyrrhotite issues need some attention

Flexibility of millo Copper and(?) zinc / lead

o High grade Einasleigh along with Kaiser Bill feed

o Totally separate circuits?

o Synergies of a bigger operation

Financing and Infrastructure

Financingo Conventional bank finance following feasibility

study?o Large shot of equity issued up front?o Variations?o How much is needed?Transport corridor to TownsvillePowero Diesel generation?o Hook up to national grid?Water

Softer Issues

Environment – management going well

Native Title – signed mining ILUA with Ewamian people

Local people very supportive

Good regional government and state government support

Conceptual Plan – Two Separate Mills

Mill #2Mill #1• 2010 – 0.5 Mta from

Chloe & Kaiser Bill• 2012 – 0.5 Mta from

Chloe & Jackson• 2012 – 0.5 Mta* from

Kaiser Bill & Einasleigh

Metal Production* 20-25 ktpa Zn (from 2012) 8-12 ktpa Pb

8-10 ktpa Cu

*assuming pre-concentration of KB ore after 2012

Upcoming Milestones

Einasleigh Feasibility Study – mid-2008

Confirm financing and go-ahead decision – Sept.

Expand resources at Einasleigh and prove up new targets - ongoing

Confirm high grade section at Kamarga - June

Drill new targets at Mt Lyell – April

March 08

Summary

On track for Einasleigh production in 2 years

Well financed for the feasibility study

Demonstrated upside to all projects

The Einasleigh Projectbigger & brighter

March 08