31 July 2009 Companies Announcements Office ASX Limited Level 6, 20 Bridge Street Sydney NSW 2000 By E-Lodgement Highlights Corporate Matilda Zircon Limited (ASX: MZI) (formerly Olympia Resources Ltd) Quarterly Activities Report for Period Ended 30 June 2009 Stirling Resources Ltd becomes major shareholder with 82% of shares after approved by minority shareholders at General Meeting on July 17 th Stirling provides $350,000 loan to Matilda in May which was converted to 35 million shares after approval by minority shareholders Shareholders approve name change from Olympia Resources Limited to Matilda Zircon Limited Matilda Board is restructured to improve efficiency and Michael Kiernan assumes role as acting Managing Director Matilda purchases Tiwi Island zircon tenements along with 150 tph processing plant and accommodation camp Matilda Zircon purchases Cape York Exploration Permits covering over 300 kms of very prospective coastline Matilda Board decides to divest Harts Range project and Southwest mineral sands tenements to concentrate on zircon at Kalimantan, Tiwi Islands and Cape York as well as development of the Keysbrook leucoxene deposit
Matilda Projects Mining planned to commence on Tiwi Islands in September 2009 Exploration commenced on Cape York exploration permits on July 20 th WA Minister for Environment determines appeals with respect to Keysbrook Project 70 tonnes of zircon sold from Kalimantan in June Corporate Changes strengthen Matilda and gives short term cash flow from Tiwi Islands mine In May Olympia announced it had signed an agreement to purchase zircon assets and which would enable Stirling Resources to become the major shareholder. This agreement was ratified by a General Meeting of shareholder post the end of the quarter on July 17 th along with a company name change to Matilda Resources Ltd (Matilda). This agreement has greatly strengthened Matilda with the support of Stirling Resources and the tenements in the Tiwi Islands which will allow Matilda to commence mining in September this year to provide cashflow in 2010. To strengthen and improve efficiency within the Matilda Board a number of changes have been made. Doctor James Searle, Mr Keith Vuleta, Mr Bruce Maluish and Mr Michael Kiernan have joined the Matilda Board. Mr Mal Randall rejoined the Board as Chairman and Mr Barry Bolitho and Mr Nigel Goodall stepped down from the Board. Ms Ildiko Wowesny was appointed as Company Secretary. Post the end of the quarter Mr Michael Kiernan has been appointed Acting CEO. Mr Peter Gazzard has taken the role of Technical Director to concentrate on the start up of the Tiwi mining operations and the continuing development of the Keysbrook and Kalimantan projects. The new Board members all bring significant experience and skills to the Matilda Board. Short biographies of the new Board members are attached.
Project Summaries Tiwi Zircon The Tiwi Islands are located 50kms north of Darwin and having an area of some 4,900 square kilometers. The project consists of exploration and mining tenements that are generally characterized as being at surface, well sorted, low in clay therefore low in slimes and can be mined with minimal environmental impact using low cost infrastructure and straight forward mining methods. Rehabilitation is very quick and effective. The project includes a 150 tonne per hour processing plant, supporting equipment and complete infrastructure. The concentrate produced is exported to China for final mineral separation. Tiwi concentration plant
It is proposed to recommence operations in the first week of September. Previous production was 46,000 tonnes of concentrate grading 50% zircon and the balance being rutile and leucoxene. Tiwi Island Tenements Cape York The Cape York Project includes 300 kilometers of prospective coastline. Previous preliminary exploration has identified high grade zircon occurrences and significant strandlines with potentially low strip ratios, low slime levels resulting in a low capital cost start up and low operating costs. An exploration budget of $500,000 is proposed for further exploration at Cape York, with the program to commence in mid 2009. Over the next five years, Matilda Zircon s aim is to commence production and build up to some 50,000 tonnes per year of zircon-rich concentrate. The current price of zircon is approximately USD$900 per tonne
Cape York Exploration Permits Keysbrook The Keysbrook Project consists of a low overburden and clay deposit with a reserve of 43m tonnes at 2.7% HM suite with approximately 40% leucoxene. The current value of leucoxene is US$450 per tonne. The environmental process is finally drawing to a close. The Environmental Protection Authority has given a recommendation for project approval. The appeals to the EPA s recommendation are currently being determined and we believe the project conditions will be finalised in the immediate future and a Ministerial determination will be shortly thereafter.
Should Ministerial approval be given the next step in the process is to seek Shire development approval. According to the company s advisors all environmental matters are most likely to be resolved by year s end and development matters resolved by June next year. Should this be the case the project should commence the 1 st quarter 2011. Drilling on the Keysbrook site
Indonesia The difficult cash flow position the company was in late in 2008 dictated that the company needed to minimize expenditure. This lead to the Board deciding to stop exploration in Indonesia and try to sell PT Olympia Resources Indonesia Ltd along with its assets to reduce expenditure and realize cash from the asset sale To this end Matilda has been negotiating to sell PT Olympia Resources Indonesia and during the past quarter the Sampit Plant has been made available for a potential purchaser to carry out an operating trial as part of a due diligence process. This trial was ongoing at the end of the quarter. With Stirling s support Matilda is now in a better position with respect to cash flow than in late 2008. Matilda will consider any offer made for PT Olympia Resources Ltd however depending on the nature of the offer may retain part or all of its Indonesian assets. During the quarter Matilda operated the Sampit plant for 104 hours on retreat of stockpiles to produce 38.4 tonnes of ilmenite and 9.6 tonnes of leucoxene. Matilda sold 70 tonnes of zircon in June. At the end of the quarter 23 tonnes of zircon remained in stock at Sampit along with 9.6 tonnes of leucoxene and 168 tonnes of ilmenite. Sampit Processing Plant in Kalimantan
Harts Range The Board has decided to divest the Harts Range project. This decision reflects the Board s desire to concentrate on heavy mineral sands and in particular zircon rich sands. Southwest Tenements The mineral sands deposits in the Busselton area are dominated by ilmenite with only minor zircon and leucoxene. Ilmenite is a relatively low value product of some US$100 per tonne. Following review it is proposed to divest these tenements. New Board Members and Company Secretary Mal Randall, Non-Executive Chairman Dip Applied Chem, MAICD Mal Randall has extensive experience in corporate, management and marketing in the resources sector including more than 20 years with the Rio Tinto group of companies. His experience extends over a broad range of commodities including iron ore, diamonds, base metals, coal, uranium and industrial minerals both in Australia and internationally. Currently a Chairman of Iron Ore Holdings Ltd and Non-Executive Director of a number of ASX listed resource companies. Mr Randall rejoins Matilda after previously being chairman of Olympia Resources from February 2006 to November 2008. Michael Kiernan, Director B Bus, FAICD Michael Kiernan has more than 35 years experience in transport, mining, contracting and resources industries, including the development and operation of mining projects in iron ore, manganese, chromite, nickel, copper, coal, gold and mineral sands. He has a track record in management and leadership of resources based projects having held executive positions with Australia s major mining and transport contractors. He was founding Managing Director of the diversified minerals producer Consolidated Minerals Limited. He is currently managing director of Stirling Resources and non-executive Director of Redbank Copper Limited and Australian Zircon Limited.
James Searle Director B. Sc, PhD, MAusIMM, MAICD Dr Searle is a geologist with more than 25 years in the resources industry. He has extensive practical project development experience across a range of commodities, on projects in Australia and overseas. Dr Searle has served on Boards for ASX-listed resources companies including Dragon Mining and Crest Resources, and is currently Chairman of copper developer Redbank Copper. Mr Searle is an advisor to Stirling Resources. Keith Vuleta Director B. Bu, CA Mr Vuleta has been a Chartered Accountant for more than 20 years. He has a strong financial management background with ASX-listed companies, working as Finance Director, Chief Financial Officer and Company Secretary for public companies in the mining, engineering and financial services industries. Mr Vuleta has also worked for Ernst and Young. He is currently Chief Financial Officer for Stirling Resources. Bruce Maluish, Non-Executive Director B. AppSc (Surv), Dip Met. Mining Bruce Maluish has over 20 years experience in the management and development of mining operations. He has previously been the Operations and General Manager with various public companies in Australia including formative years of the very successful companies, Hill 50 Ltd and Abelle Ltd. He is currently Managing Director of Swan Gold Mining Ltd. Ildiko Wowesny - Company Secretary B Bus Ms Wowesny has considerable experience in company secretary roles, together with corporate management, accounting and financial areas. She has worked for ASX-listed resource and energy companies both in Australia and in the UK, and has strong financial background as a senior accountant for Deloitte. She is currently Company Secretary for Stirling Resources and Redbank Copper.