Focus on diamonds and phosphate

Transcription

1 1 Focus on diamonds and phosphate NEW 1 near Orroroo Dr D H Tucker Managing Director 2 Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with the exploration and mining industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables which could cause actual results or trends to differ materially. 2

2 3 Outline Corporate Phosphate Project Diamond Project Summary 3 4 Corporate Flinders Exploration Board 4 Andrew Andrejewskis CHAIRMAN David Tucker MANAGING DIRECTOR Kevin Wills DIRECTOR

3 5 Corporate highlights FMS announced at 2009 AGM that non-iron ore assets would be spun off in a new company Flinders Exploration Ltd Flinders Exploration Ltd is planning to acquire major interest through JV arrangements under negotiation Flinders Exploration IPO is planned for first half of 2010 Anticipated to raise approximately $5-10 million dollars 5 6 FEX strategy To make mineral discoveries and develop them into profitable mines to create wealth for shareholders Main focus on phosphate and diamond exploration in the Flinders Ranges by:» Using innovative techniques and» Discovering and evaluating numerous prospects 6

4 7 Proposed Project areas Port Hedland Perth Broome Kalgoorlie WA Darwin NT Alice Springs SA Coober Pedy 500km QLD Adelaide VIC Townsville Melbourne NSW Sydney Brisbane Diamond project Phosphate project Barite project Base metal project 7 TAS Hobart 8 Project highlights Recent phosphate exploration is near defining drill targets Recent diamond exploration has located new diamondiferous kimberlites with high microdiamond counts to bulk sample Recent barite exploration has defined drill targets 8

5 9 9 Phosphate Project FMS announced launch of this new project in August 2008 Exploration program started in November 2008 Aim: locate a phosphate deposit of at least 10 million tonnes Why a Phosphate Project? o o 120 INDONESIA 132 TIMOR TORRES STRAIT 144 PA PU G UIN A N EA EW o SEA CORAL DARWIN Phosphate prices reached new high in 2008 Joseph Bonaparte Gulf Gulf SEA of Carpentaria 2000 m NORTHERN TERRITORY Cairns Normanton 200m Broome m m 100 D-Tree West m 200 Cummins Range D-Tree Wonarah Lily Creek G Lady Jane Townsville Lady Annie re 1000m at 200m Bar Sherrin Creek rie r Port Hedland ef Mackay Phosphate Hill Nolans Bore Re Balla Balla Longreach Alice Springs QUEENSLAND Gladstone WESTERN AUSTRALIA Demand for this fertiliser is growing Carnarvo n SOUTH AUSTRALIA Oodnadatta Mount Weld (Swan and Emu) BRISBA NE Geraldton Bourke Grafton N Tamworth Ceduna AN Port Macquari e PERTH NEW SOUTH 200m WALES 1000m Most of Australia s phosphate is in the NT distant from markets Most known phosphate occurrences in SA are found on FMS tenements No systematic exploration for phosphate ever in SA Newcastle 2000m Mildura Esperance Grea t Australian Bight SYDNEY ADELAIDE CANBER Albany ACT Wollongon g RA TASMAN SEA VICTORIA Phosphate deposits in Australia MELBOUR NE Warrnambool BASS STRAIT 4 TASMANIA HOBART o s indicate the average annual contribution a percentage of the national production States not numbered than 1% on average to national ually. Wheat crop calendar for most of Au PLANT HRV Jan Feb Mar Apr May Jun Jul A During a normal year, wheat plant in April, with the bulk of the crop and June. During years with abno however, planting is sometimes d continue into mid-july. Northern Territory Queensland Western Australia 6 43 South Australia 15 New South Wales 24 Ma areas combined account for approximately 75% of l national production annually. and minor areas combined account for approximately the total national production annually. and minor crop areas and state production percentages ved from Australian Bureau of Statistics Agricultural data from to Wheat production in Australia World Agricultural Outlook Board Joint Agricultural Weather Facility Mi 12 Victoria Tasmania

6 11 Phosphate Project area º30' Orroroo Prospective area 66km long and 1-8km wide Booleroo Centre Tarcowie -33º TPC Mine (ML6208) 12 known occurrences between Orroroo - Tarcowie Several old phosphate workings, one active open cut near Tarcowie Jamestown 0 5 km Gladstone Zone of high phosphate potential Phosphate occurrences Flinders Mines Exploration Licences 12 Work conducted to date 12 Mineralogy and metallurgical properties of rock samples Regional soil sampling grid defined target areas Follow up - more detailed soil sampling grid

7 13 Zone of high phosphate potential 13 Future program Continue soil sampling program detailing targets Drill program to test targets 14 Diamond projects 14 Total world production approx 37 tonnes per annum Botswana ~24% Russia ~22% Canada ~14% Australia ~8%

8 15 Marsfontein Fissure - Northern Cape, South Africa 15 Kimberlite fissure or blow (90x45m) on a kimberlite dyke Commenced exploration 1993, discovered 1998, mined Grade 2 carats/tonne, US$128/carat, revenue US$246 million TOTAL CAPITAL RECOVERED IN 3.5 DAYS 16 Diamonds in South Australia 16 Alluvial diamonds near Echunga (up to 5.2Ct) Alluvial diamonds in Springfield Basin (up to 0.3 Ct) In heavies in soil samples (including Flinders Island) Primary (kimberlite) sourced diamonds in Flinders Ranges Kimberlites Eurelia MUSGRAVE PROVINCE km Mintabie Oodnadatta GAWLER CRATON Tarcoola Ceduna ISLAND Coober Pedy ELLISTON Port Lincoln Kimberlite and lamproite Diamond occurrence Structural corridor Area of known kimberlite indicator minerals Flinders Mines project areas Roxby Downs Pt Augusta Moonta ADELAIDE Marree Andamooka Moomba CURNAMONA PROVINCE Northern Flinders Ranges SPRINGFIELD BASIN EURELIA Renmark ECHUNGA OTWAY BASIN Mt Gambier

9 17 Work done by FMS 17 Tenement package mostly for diamonds Extensive aeromagnetic surveys within tenements at 100 metre line spacing Ground magnetic surveys/ trenching Drilling Bulk sampling of 12 sites Eurelia Kimberlite field is where most diamondiferous kimberlites and fissures have been found Quorn Port Pirie Springfield FBS 05 (31 macrodiamonds) FBS 04 (18 macrodiamonds) FBS º Hawker EL4208 Gilbert Hill Eurelia Orroroo Jamestown Peterborough FBS 01 (1 macrodiamond) 50 km Eurelia Ultra-detailed Helimag Survey 2009 FBS 03 (35 macrodiamonds) FBS 02 Nackara 1 139º Nackara 2 FBS 06 FBS 07 (1 macrodiamond) FBS 08 Springfield Project Jamestown Project Nackara Project Primary Resources Tenements Ultradetailed Helimag July 2009 Detailed Helimag Completed Microdiamond location Bulk Sample Locations Yunta FBS 09,10,11,12 18 E U R E L I A Eurelia Kimberlite Field results K I M B E R L I T E EL4208 Gilbert Hill 18 ELA209/09 Amyton ' Springfield 2008 Helimag Survey P R O V I N C E New 25 metre helimag shows fine detail and thus untested targets Eurelia 2003 Helimag Survey Eurelia 2009 Ultra-detailed Helimag Survey ELA209/09 Amyton New targets follow up in progress Best ever FMS microdiamond results 0 4 km ELA207/09 Pekina ELA206/09 Steves Gap Groundmag grids ' '

10 19 Eurelia Kimberlite Field K3 trend ' ' ' E U R E L I A Microdiamond Results Microdiamond - positive (2009) Microdiamond - positive (2005) Microdiamond samples - results pending Trench 15 MD 51 MD 61 MD 56 MD 38 MD 1 MD 5 MD K 3 3T R E N D T R E N D 5 MD K3 trend best ever microdiamond results for Flinders 6 MD 250 m 20 Photomicrographs of Eurelia microdiamonds 20 Polished Prices World Price Index 1 carat Fine diamonds Microdiamond - Sample EU Microdiamond - Sample EU

11 21 Future exploration 21 Find commercial grade kimberlite/fissures in Eurelia Field Drilling and bulk sampling 22 Summary 22 FEX is a newly incorporated exploration company based in Adelaide Planning to take on non-iron ore exploration from Flinders Mines Ltd Looking to an IPO in the first half of 2010 Focussed on diamonds, phosphate and barite in South Australia Soil anomalies for phosphate will enable us to drill a new area of phosphate in SA We believe recent microdiamond results by FMS are best in SA yet, leading to bulk sampling for macro-diamonds