Eucla Mineral Sands Project Chris Drown St Barbara s Day SA Explorers SA Conference
Company Profile ASX Code: ADN Shares issued 63.03 million Unlisted options 2.4 million Cash $3.5 million ~1300 shareholders Major Shareholders: Troy Resources NL (14.5%) Keith Yates (8.9%) 12 month trading 15 to 37.5 cents Market capitalisation $22 million (35 cents) Left to right: Chris Drown Exploration Manager Keith Yates Executive Chairman John Horan Director Dr Kevin Wills Director
Expenditure 2 ($ million) 1 Performance Indicators $ (million) 3 Joint Venture 0 97-98 98-99 99-00 00-01 01-02 02-03 03-04 Drilling (metres) x 1000 metres 40 RC / Diamond 30 RAB / Aircore 20 10 0 97-98 98-99 99-00 00-01 01-02 02-03 03-04 Trading (cents) cents 30 20 10 0 97-98 98-99 99-00 00-01 01-02 02-03 03-04
Quality projects / Quality relationships Adelaide Resources 100% IRON ORE COPPER Adelaide Exploration 100% Warramboo Anabama JOINT VENTURES GOLD COPPER-GOLD NICKEL HMS Eyre Peninsula Moonta Newmont Phelps Dodge/Red Metal earning 51% earning 70% Mount Woods South Perilya 50:50 Barton Inco earning 60% Colona Iluka earning 51%
Metal Price Graphs as at 30 June 2004 $US per ounce 440 390 340 290 $US tonne (2004 real) 500 450 400 350 240 300 96-97 98-99 00-01 02-03 98-99 99-00 00-01 01-02 02-03 03-04 $US tonne 3000 2500 2000 1500 Chinese imports (million tonnes) 200 150 100 50 $US tonne 18000 15000 12000 9000 6000 1000 99-00 00-01 01-02 02-03 03-04 0 96-97 98-99 00-01 02-03 3000 98-99 99-00 00-01 01-02 02-03 03-04
South Australian Projects Gawler Craton SOUTH AUSTRALIA MOUNT WOODS SOUTH (Copper-Gold) BARTON (Nickel) Prominent Hill Olympic Dam COLONA (Mineral Sands) ANABAMA (Copper) EYRE PENINSULA (Gold) WARRAMBOO (Iron) MOONTA-WALLAROO (Copper-Gold) Adelaide Olympic Copper-Gold Province Central Gawler Gold Province 300 KM
Colona Joint Venture With Iluka Resources Limited (spending $1.0M to earn 51%)
Colona Joint Venture Immarna Barton Siding 1000 km Gawler Craton EL 2900 (Iluka) EL 2841 (ADN) (ARL) Colona JV Adelaide EL 3268 (Iluka) EL EL 2840 2840 (ADN) (ARL) JACINTH DISCOVERY EL 3233 EL 3233 (Iluka) Tenements subject to Colona JV with Iluka (5250 sq. km.) Iluka Tenements 20 KM ELA 727/04 233/03 (Iluka)
Colona Joint Venture The Agreement 2500m of drilling in year 1 $1 million expenditure over next five years to earn 51% $200,000 minimum expenditure in years 2 and 3 Once Iluka have earned 51% ARL may contribute and hold its 49% interest Alternatively ARL may revert to a 30% interest carried to completion of a positive BFS
Zircon Outlook 9% 10% 12% Zircon Uses 6% 6% Demand across all sectors and regions expected to remain strong in H2 2004 and throughout 2005 Fully sold in 2004 Expect to be fully sold in 2005 Chinese market continues to be 57% the major growth area Ceramics Refractory Foundry Zirconia Chemicals Investment Casting TV Glass Continuing to progress short-term zircon production initiatives to meet market opportunity gap (courtesy Iluka SA Resources) Explorers Conference
Zircon Price $600? $500 US$/t nominal $400 $300 $200 $100 $0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 (courtesy Iluka Resources)
Tertiary setting of the Eucla Basin ~2000 km long shoreline palaeovalleys extended landward in 3 cratons economic potential: HMs, gold, coal, uranium, groundwater (courtesy B. Hou, PIRSA)
Palaeogeographic Reconstruction (courtesy B. Hou, PIRSA) Bedrock headlands Fluvial channel High order strandline Littoral bypassing Heavy mineral concentration Erosion surface
Jacinth Prospect Location Jacinth Prospect Line 5776 EUCLA BASIN Jacinth is the name of a variety of gem zircon EL2900 ILUKA Resources Ltd Legend Tenements Mineralised Zone Iluka Granted N EL2840 South Australia Line 5776 Iluka Application Jacinth Prospect p (courtesy Iluka Resources) Drill Hole GDA94 Zone 53 2kms Iluka & Adelaide JV Adelaide
Jacinth Prospect Section W 10% heavy mineral, averages 52% zircon, 7% rutile, 24% ilmenite Mineral assemblage similar to Eneabba in its heyday 0 500m 1000m E 0m 10m 20m 30m Heavy Mineral Contours Laboratory > 1% HM > 3%HM > 20% HM (courtesy Iluka Resources)
Indicative Comparison of Australian HMS Resources Province Company MT %HM (4) MT HM %Zircon %Rutile %Ilmenite US$/t conc (6 ) US$/t in ground Stradbroke Is (1) Iluka 808 0.8% 6.74 11% 13% 44% ~150 ~1 Murray Basin (1) Iluka 473 10.5% 49.73 10% 11% 49% ~140 ~14 (2) Murray Basin (2) Bemax 2196 2.8% 61.49 10% 18% 53% ~170 ~5 Murray Basin (3) Aust. Zircon 170 3.2% 5.44 19% 11% 66% ~190 ~6 WA mid-west (1) Iluka 842 5.3% 44.48 12% 7% 51% ~130 ~7 WA south-west (1) Iluka 669 8.1% 54.27 8% 2% 79% ~110 ~9 WA south-west (2) Bemax 154 9.0% 13.86 9% 81% ~110 ~10 Early exploration o results - Jacinth Prospect Eucla Basin (5) Iluka? 10.0%? 52% 7% 24% ~310 ~31 Data Sources (1) - Iluka Resources Limited Concise Annual Report 2003 (2) - Bemax Resources NL 2004 Annual Report (3) - Southern Titanium NL 2004 Annual Report (4) - Cut off grades used in resource calculations vary (5) - Iluka Resources Limited ASX announcement 5 Nov 2004 (6) - Representative prices as advised by TZ Minerals International (see table) Commodity US$/tonne (6) Zircon $500 Rutile $430 Illmenite $80
Iluka SA Tenement History Adelaide Resources Tenements subject to Colona JV with Iluka (5250 sq. km.) Iluka Tenements EUCLA BASIN 300 Kilometres Jacinth Discovery Trans Australia Railway Application Total No. Total Area Date Tenements km 2 2001 1 1,889 2002 2 4,351 2003* 4 8,117 Ceduna Eyre Highway 2003 16 23,971 2004 43 47,961 Port Lincoln Adelaide
Mineral Sands Deposits? SA NSW 50 km PERTH Bunbury Capel Busselton Mundijong Waroona Gingin Deposit Gingin Mundijong Deposit Waroona North Mine Site Waroona South Mine Site Yoganup North Mine Site Boyanup Yoganup Extended North Mine Site Yoganup Mine Site SW Western Australia Massidon Renmark Woolcunda Nanya Loxton Mindarie Perponda Birthday Gift Mildura Wemen Jacks Tank Spring Hill Doubloon Finigans Tank Ouyen Boorongie Kulwin Murrayville Woornack Bordertown Naracoorte 100 km Nhill Horsham Portland Douglas Murray Basin WIM 150 Rockhampton Gladstone Brisbane Byfield Curtis Island 50 km Wild Cattle Island Hummock Hill Island Rodds Peninsula Middle Island Eurimbula Rocky Point Bundaberg Maryborough Gympie Fraser Island Inskip Point Cooloola Noosa Moreton Island Pinkenba South Stradbroke Island Gold Coast Kirra Queensland
Previous HM drilling Trans Australia Railway 20 km JACINTH DISCOVERY Colona JV Tenements Iluka Tenements Geopeko BHP
Eucla Basin HM Occurrences (courtesy B. Hou, PIRSA) Late Eocene shoreline Gawler Craton L. Middle Eocene shoreline Paling Bay Eucla Basin Pidinga Bay Middle Eocene shoreline Eucla HM anomaly Inferred HM anomaly
Colona Joint Venture 1000 km Immarna Barton Siding Area considered most prospective for heavy mineral sands deposits (SA Government assessment) Gawler Craton EL 2900 (Iluka) Colona JV Adelaide EL 2841 (ADN) JACINTH DISCOVERY The eastern Eucla Basin of South Australia has potential as a worldclass cass heavy-mineral sand dpo province. (Hou et. al. 2003) Drillhole EB119 EL 2840 (ADN) 20 kilometres 20 KM EL 3268 (Iluka) EL 3233 (Iluka)
Distribution of the eastern basin and palaeovalleys interpreted p as subsurface (courtesy B. Hou, PIRSA) Barton Range Jacinth Discovery
Colona Joint Venture Ancient Shoreline JACINTH DISCOVERY 30km prospective strike Shuttle Radar Topography p Mission (SRTM) data image 30 km
Colona Joint Venture EB119 - (Peko) High Zircon Assemblage (Drilled 1990) 38-40 metres 2m @ 27% HM 51% Zircon 3% Rutile 35% Ilmenite (courtesy Iluka Resources)
Eucla Basin - Key Attributes Exceptional grade in early Jacinth drilling Zircon dominant high value concentrate Sizeable plan area at Jacinth Above water table One early discovery high potential for more Promise for new HMS province
Interesting things are to be found on coastlines!
The Eastern Eucla Basin: An exciting emerging mineral sand province ZIRCON ILMENITE