Recent Exploration of the Olympic Dam Southern Orebody DAVE THOMAS Olympic Dam Development Study SA Explorers Conference 2 December 2005
BHP Billiton profile (2005) The company BHP Billiton is the world s largest diversified mining company It employs more than 100,000000 people in 20 countries Australia is the largest region with 38% of employees BHP Billiton consists of seven Customer Sector Groups: Aluminium Base Metals Carbon Steel Materials Diamonds and Speciality Products Energy Coal Petroleum Stainless Steel Materials BHP Billiton s global headquarters is in Melbourne Base Metals global HQ is in Santiago, Chile HQ is in Adelaide Page 2 2005
BHP Billiton - The world s largest diversified resources company Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Prod Energy Coal Stainless Steel Materials Page 3 2005
Olympic Dam is part of BHP Billiton - Base Metals Group Resolution Project, Arizona Base Metals Marketing, The Hague Marketing presence in Shanghai, Tk Tokyo and dseoul Cerro Colorado Chile Antamina, Peru Tintaya, Peru Escondida, Chile Spence Project, Chile Olympic Dam Cannington, Australia Page 4 2005 Base Metals Head Office Santiago Chile
Olympic Dam Page 5 2005
The Mining lease Marree 170km Borefields 120 & 200km Operation 8km 10km Roxby Downs Woomera 90km Page 6 2005 Port Augusta 270km
Operation History 1975 Discovery 1982 SA Parliament Ratifies Indenture Agreement 1989 First Production (45,000 tonnes) 1992 Optimisation 1 1995 Optimisation 2 1997-9 Major Expansion (200,000 tonnes) 2002 Optimisation 3 2005 3 June - BHP Billiton gains majority control of WMC 2005 17 June - BHP Billiton gains over 90% of WMC 2005 2 August - BHP Billiton gains 100% of WMC Page 7 2005
Production History Ore (Mtpa) Copper (tpa) U 3 O 8 (tpa) 1988 2.1 45,000 1,100 1991 24 2.4 68,000 1,400 1993 3.0 84,000 1,900 1998 8.5 200,000 4,500 2005 10.0 225,000 4,500 2013 (proposed) 40.0 500,000 15,000 Page 8 2005
Olympic Dam Mining Page 9 2005
The PFS Study
Objectives of Study Identify the total resource base Select a single preferred, sustainable life of mine plan Identify key HSEC risks and opportunities Identify development costs Identify implementation requirements Assess strategic t implications of the preferred development option Page 11 2005
Project budgets and timelines Budgets $5 billion plus estimated for total project 10% of budget proposed for the PFS/FS $130m allocated to drilling programme $24m for new underground tunnel into Southern Ore body to allow for bulk sampling Timelines 2004-07 Pre-Feasibility Study (PFS) 2005-07 Commonwealth/State approvals (EIS) 2007-08 Feasibility Study (FS) 2009-12 Pre-strip and construction 2013-14 Ramp up to full production Page 12 2005
Olympic Dam Development Current Proposed Mine production Ore = 10 Mt Ore = ~40 Mt (per year) Roxby Downs population Copper = 220,000 t Uranium = 4,000 t Gold = 80,000 ounces Silver = 800,000 ounces 4000 (avg. age 27yrs, 32% under 15yrs) Copper = ~500,000 t Uranium = ~15,000 t Gold = ~500,000 ounces Silver - ~2,900,000 ounces Total ~7000-9000 Energy 120 MW, from grid Total of ~400 MW, from State grid, on-site gas or a combination (per year) Water 32 Ml/d, from GAB Total of ~120 Ml/d, from GAB / regional aquifers or coastal desalination Transport In/Out (per year) 1 Mt, by road 12,000 trucks (30 per day) Total of ~2.2 Mt, by road/rail intermodal or direct rail Exports Via Port Adelaide Via Port Adelaide and / or Darwin Page 13 2005
B ulk S am p le D rift L o c atio n Surface Raise Position Page 14 2005
Mineral Resource
Change to mineral resource wireframe 2003 resource plan outline July 2004 indicative plan outline The indicative outline above incorporates drill results up to June 2004; drilling continues. Page 16 2005
Footprint of Southern resource Page 17 2005
Recent Drill results Hole ID Interval Cu U3O8 Au Ag % kg/t g/t g/t RD2009 72 0.93 0.27 0.48 1.44 RD1991 134 3.03 0.79 0.8 3.95 RD2040 695 0.7 0.25 0.96 2.07 RD1969 195 0.74 0.19 0.29 1.38 RD1930 105 1.27 0.25 0.13 2.04 RD2068 41 133 1.33 062 0.62 030 0.30 230 2.30 Page 18 2005
Olympic Dam Mineral Resources 2003-05 Category Model Tonnes (Mt) Cu (%) U 3 O 8 (kg/t) Au (g/t) Ag (g/t) Cu:S 2003 590 1.6 0.5 0.5 3.3 1.2 Measured 2004 650 1.5 0.5 0.5 3.2 1.2 2005 650 1.5 0.5 0.5 3.1 1.2 2003 1370 1.1 0.4 0.5 2.5 0.9 Indicated 2004 1420 1.1 0.4 0.5 2.5 0.9 2005 1440 1.1 0.4 0.5 2.4 0.9 2003 990 1.1 0.4 0.5 2.2 0.7 Inferred 2004 1740 1.0 0.3 0.5 2.0 0.8 2005 1880 1.0 0.3 0.4 2.0 0.8 2003 2950 1.2 0.4 0.5 2.6 0.9 TOTAL 2004 3810 1.1 0.4 0.5 2.4 0.9 2005 3970 1.1 0.4 0.4 2.3 0.9 The estimates of Mineral Resources in this slide were prepared in accordance with the standards for reporting and classification set out in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code'). The information is based on information compiled by Neil Pickers (AusIMM), a full-time employee of BHP Billiton who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a Competent Person as defined in the JORC Code. Page 19 2005
Mining
Mining Methods Studied Sub level open stope Block Cave Sub level cave Open Pit Page 21 2005
Pit with Drill holes Page 22 2005
Final Pit Shell (October 2004 Model) Pre-stripping Total waste Total Ore: ~4.0 years 11 870 Mt 2 400 Mt Stripping Ratio 4.5: 1 Life of mine Indicative Dimensions 72 years @ 35 Mtpa 3 600 m West-East 3 650 m North-South Depth -1 015m RL (1 120 m Below Surface) Page 23 2005
Principal Mining Equipment Conceptual Mining Equipment Required for 325 Mtpa Material Movement capacity: Drill Rigs 10 Face shovels 8-10 Haul trucks 80-100 Track dozers 5 Water carts 3 In-Pit/Ex-Pit Crushers 6 Ramp Conveyors 3 Waste Dump Conveyors 3 Waste Dump Spreaders 3 Estimated Capital Costs $US - $1 billion (Contingency allowance 15%) Final Equipment Size, Type and Quantity subject to Engineering g trade offs and Optimization Studies Page 24 2005
Olympic Dam Pit Outline Open pit outline compared to the Adelaide CBD area Page 25 2005