Day 2- Session 5: Global Hotspots (part 2) Objective Capital Global Mining Investment Conference 2010 Stationers' Hall, City of London 28-29 September 2010 Speakers: Ian Ransome - Diamond Fields International Ltd David Hargreaves - Fair Trade Gemstomes Glen Jones - Intierra Resource Intelligence
GLOBAL MINING INVESTMENT CONFERENCE 2010 STATIONERS’ HALL ● CITY OF LONDON ● TUESDAY -WEDNESDAY , 28-29 SEP 2010 www.ObjectiveCapitalConferences.com Investment Conferences Mining the deep ocean Ian Ransome – CEO, Diamond Fields International Ltd Opportunities in Zimbabwe David Hargreaves – CEO, Fair Trade Gemstones World Mining Hotspots Glen Jones – Exec Director, Intierra Resource Intelligence DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2)
Transcript
Investment Conferences GLOBAL MINING INVESTMENT CONFERENCE 2010
DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2) Mining the deep ocean
Ian Ransome CEO, Diamond Fields International Ltd Opportunities in
Zimbabwe David Hargreaves CEO, Fair Trade Gemstones World Mining
Hotspots Glen Jones Exec Director, Intierra Resource Intelligence
CITY OF LONDON TUESDAY-WEDNESDAY, 28-29 SEP 2010 STATIONERS HALL
www.ObjectiveCapitalConferences.com
GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media
partners: Other sponsors & participating organisations:
Meeting The Technical Challenges To Develop New Resources
3
NEXT FRONTIER MARINE RESOURCES Increased Global Demand for
mineral resources >80% of Global mineral resources beneath the
Oceans Rise in Metal prices combined with development in deep water
technology now make Marine mining feasible Land Resources becoming
scarcer 4
NEXT FRONTIER MARINE RESOURCES Transition to Marine Resource
Exploration and Mining happening at depth up to 5 000 metres NOW.
Marine Mineral Resources reserved by major countries such as China,
Russia, Germany, France etc. Witnessing the birth of a NEW
industry. 5
NEXT FRONTIER SMS AND SEDEX DEPOSITS Marine Seafloor Massive
Sulphides and Sedimentary Exhalative Suphide Deposits formed at
Ocean Ridge Spreading Ridges at depths between 1 500 3 000 metres
6
Jiddah Atlantis II POLYMETALLIC (Zn, Cu, Ag, Au, Co) SEDEX Red
Sea Commission Mining Licence 30 Years 7
Atlantis II Deeps Mining Depths: 1900 2200 metres Brine Pool:
200 metres thick 62C 45C LIMIT OF BRINES 2km 8
NEXT FRONTIER HISTORY Atlantis II Deposit Explored since 1969
1974 Red Sea Commission Formed to jointly Explore Atlantis II 1977
1982 Preussag AG German MV VALDIVIA Exploration Company contracted
to undertake Feasibility Study of Atlantis II Deeps Resource,
Processing, Metallurgical, Pre-Pilot Mining and Environmental
Studies Successfully Completed (US$28 Million) FLOATATION PLANT
Largest known marine SEDEX MV SEDCO 445 ABOARD SEDCO 45 Deposit in
the World 9
Preussag A.G. Coring Programs North Basin West Basin Total 628
core samples East Basin Sampling Density 0.091km Average Sampling
depth 1 metre 8.5m Southwest Basin 10
HISTORIC RESOURCE ESTIMATE North Basin Bulk Resources Based on
9.4% top 8.5 metres Average 91 700 000 tonnes DSF 1 890 000 tonnes
Zn 425 000 tonnes Cu 3 750 tonnes Ag East Basin 47 tonnes Au Zinc 5
368 tonnes Co Minimum Resource West Basin 0.2% Southwest Basin
11
TECHNICAL CHALLENGES The Atlantis II Project Is A Technical
Challenge Deposit is located in 2000 meters of water 70km from
nearest shore New processing and mining technology required No
existing infrastructure Elevated Brine Pool temperatures 45C 62C
Fine Particle Size Distribution (PSD) of Ore 80% < 2 microns A
Commercial risk Worlds Deepest mining operation and First deep sea
mud deposit to be mined But: Largest known and only tested Marine
SEDEX in the World. It has the potential to focus expertise and
innovation on a new frontier -- deep sea mineral resources 12
MINING SYSTEM REQUIREMENTS: Mine muds in hostile environment
Transport material 2000 metres to surface Geodynamic Positioning
CONVENTIONAL DRILL SHIP Integrated Design Capital Intensive
Operating Costs 13
STAND ALONE MINING RISER SUBSEA PLATFORM Offshore Oil Industry
FPSO BUOYANCY CANS Offshore Oil Industry RISER PIPES Offshore Oil
Industry RISER BUOYANCY Offshore Oil Industry RISER LIFT PUMP (RLP)
Offshore Oil Industry SYSTEM MINING TOOL (SMT) Dredging Industry
14
Offshore Processing Challenges Ore is fine grained sulphide
muds Pre-Pilot Mining Operations undertaken by Preussag (1980s)
successively concentrated offshore using floatation to 30% Zn @ 70%
Recoveries New processing techniques using sea water are being
developed to achieve recoveries up to 85% Filtration using Rotary
Vacuum Filters or Disc Nozzle Filters Slurry Transport 15
SYSTEM FLOW DESIGN Offshore Processing Support Vessel
Offloading and Stockpiling Concentrate Transport Integrated Mining
Tool Hydrometallurgy Product 16
Early studies by the Red Sea Commission show that neither
sensitive coral reefs or fauna within surface layers affected The
Atlantis II Project can be developed with minimal environmental
impact The environment at Atlantis II is naturally variable
Possibility of Pumping Tailings under brine layer by return riser
17
FISCAL FINANCIAL VIABILITY Project Currently in Engineering
Feasibility Stage Project Costings Dependent on final Design
Selection Initial Financial Viability Assessment undertaken using
updated Preussag A.G. Feasibility Study (1981) Variable IRR returns
calculated ranging from 16.1% - 22% Production Model Dependent
Expected IRRs to range from 25%-35% from new Feasibility study
using improved technologies, improved resource base and recoveries
18
Minimal Infrastructure Limited Social Disturbance Minimal
Overburden or Stripping Minimal Waste Increased Worker Safety
Remote Controlled at the Mine Face 19
BUSINESS STRATEGY 26 Other Deeps Known in Red Sea Vast Areas of
Ridge Complex Unexplored Major Potential for Massive SEDEX , SMS
Deposits Technology developed from Atlantis II Project will be
applied to developing these further prospects Operational Cost
Advantages working from Saudi Arabia Diamond Fields set to Be at
forefront in Deep Water Marine Resources the Next Frontier 20
GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media
partners: Other sponsors & participating organisations:
Fair Trade Gemstones
Zimbabwe Country Data Location: Southern Africa, between South
Africa and Zambia Area: 390,580 sq km of which 2910 is water. About
1.5x the size of the UK. It is landlocked and shares borders with
Botswana, Mozambique, South Africa and Zambia. People: The
population is approaching 12 millions compared with 5.2 million in
1970. The population increase of 1.5% annually presages 16 millions
by 2030. Well over one million people have fled into neighbouring
Botswana and South Africa. Climate: Tropical, moderated by
altitude. Rainy season, November to March. Natural Resources: Coal,
chromium, asbestos, gold, nickel, copper, iron ore, vanadium,
lithium, tin, PGMs. GDP per capita:US $200 Unemployment: 80% World
Rankings: 136/139 World Economic Forum Global Competitiveness; 4th
from the bottom in the Fraser Institute Mining Survey Fair Trade
Gemstones
Zimbabwes Mineral Wealth, 1991 Mineral/unit Output 1991 Value
1991 World Rank Chromite/t 643.098 $56M 5 Copper/t 13,811 $32M
Gold/t 17.8 $195M 14 Iron Ore/Mt 1.14 $46M Lithium/t 9,186 $38M 2
Nickel/t 11,313 $92M 15 Coal/Mt 5.6 $206M PGMs/t 0 0 Diamonds 0 0
Total $665M Source: World Index of Population and Resources, David
Hargreaves Fair Trade Gemstones
GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media
partners: Other sponsors & participating organisations:
Objective Capital Global Mining Investment Conference World
Mining Hotspots September 2010 Presented By: Glen Jones
The data contained in this presentation is a snapshot from the
live Intierra database. The statistics are obtained mostly from
daily stream of data from Stock Exchange feeds around the world,
including Canada, United States, Johannesburg, Australia and
London, Hong Kong and Philippines Data base is updated daily.
Intierra Database database >40,000 companies >3500 listed
companies >39,000 global projects monitor all size of projects
and all commodities
Assumptions All values in $ US Commodities when calculated can
be primary or secondary Data from Jan/09 to September/10
Active Projects 0 1000 2000 3000 4000 5,000 6,000 7,000 8,000
Australia Canada United States China Mexico South Africa Peru
Brazil Argentina Top Ten Countries Chile
Top Ten Commodities
Number of Active Projects 18,000 0 2000 4000 6000 8000 10,000
12,000 14,000 16,000 Gold Copper Silver Uranium Lead-Zinc Nickel
Coal Iron Diamonds Platinum Top Ten Commodities
Active Gold Projects Top Ten Countries Brazil: 276 projects =
2% South Africa: 237 projects = 2% Argentina: 287 projects = 2%
Peru: 414 projects = 3% Chile: 216 projects = 2% Canada: China:
4055 projects = 35% 710 projects = 6% Mexico: 840 projects = 7%
United States: 1368 projects = 11% Australia: 3520 projects =
30%
Active Platinum Projects Top Ten Countries Finland: 12 projects
= 1% Botswana: 12 projects = 1% Sweden: 16 projects = 2% China: 27
projects = 3% Russia: 31 projects = 3% Tanzania: 11 projects = 1%
United States: 50 projects = 5% South Africa: 155 projects = 15%
Canada: 503 projects = 49% Australia: 202 projects = 20%
The Project Pipeline
Global Gold Projects by Status Grass Roots (no drilling) 6198
38% Exploration (limited drilling) 4732 30% Advanced Exploration
2454 16% Pre-Feasibility/Scoping 524 3% Feasibility 393 4%
Construction 180 1% Operating Mines 1211 8% Total 15,692 100%
Global Copper Projects by Status Grass Roots (no drilling) 2770
39% Exploration (limited drilling) 2285 32% Advanced Exploration
1006 14% Pre-Feasibility/Scoping 280 4% Feasibility 193 4%
Construction 80 1% Operating Mines 571 8% Total 7,185 100%
Global Silver Projects by Status Grass Roots (no drilling) 1620
31% Exploration (limited drilling) 1507 30% Advanced Exploration
867 17% Pre-Feasibility/Scoping 249 5% Feasibility 170 5%
Construction 81 2% Operating Mines 519 10% Total 5,013 100%
Global Uranium Projects by Status Grass Roots (no drilling)
2088 57% Exploration (limited drilling) 985 26% Advanced
Exploration 340 9% Pre-Feasibility/Scoping 95 3% Feasibility 37 2%
Construction 14 1% Operating Mines 70 2% Total 3,629 100%
Global Lead - Zinc Projects by Status Grass Roots (no drilling)
1141 35% Exploration (limited drilling) 1068 32% Advanced
Exploration 537 16% Pre-Feasibility/Scoping 134 4% Feasibility 83
4% Construction 40 1% Operating Mines 299 9% Total 3,293 100%
Global Nickel Projects by Status Grass Roots (no drilling) 895
38% Exploration (limited drilling) 699 30% Advanced Exploration 342
15% Pre-Feasibility/Scoping 104 4% Feasibility 66 4% Construction
28 1% Operating Mines 213 9% Total 2,347 100%
Global Coal Projects by Status Global Coal Projects by Status
Grass Roots (no drilling) 274 14% Exploration (limited drilling)
168 9% Advanced Exploration 366 19% Pre-Feasibility/Scoping 89 5%
Feasibility 92 7% Construction 61 3% Operating Mines 863 44% Total
1,913 100%
Global Iron Projects by Status Global Iron Projects by Status
Grass Roots (no drilling) 455 26% Exploration (limited drilling)
293 17% Advanced Exploration 330 19% Pre-Feasibility/Scoping 146 8%
Feasibility 93 8% Construction 26 1% Operating Mines 384 21% Total
1,727 100%
Global Diamonds Projects by Status Grass Roots (no drilling)
598 48% Exploration (limited drilling) 378 31% Advanced Exploration
111 9% Pre-Feasibility/Scoping 21 2% Feasibility 18 2% Construction
8 1% Operating Mines 80 7% Total 1,214 100%
Global PGE Projects by Status Grass Roots (no drilling) 417 37%
Exploration (limited drilling) 379 33% Advanced Exploration 137 12%
Pre-Feasibility/Scoping 44 4% Feasibility 44 6% Construction 10 1%
Operating Mines 101 9% Total 1,132 100%
Early Late Gold 68% 23% Copper 71% 22% Silver 61% 27% Uranium
83% 14% Lead-Zinc 67% 24% Nickel 68% 23% Coal group 23% 31% Iron
Group 43% 35% Diamonds 79% 13% PGEs 70% 22%
Global Drilling Activity
Global Drilling Projects Global Drilling Projects Global
Drilling Projects June 2009 to August 2010 Exploration 835 Advanced
Exploration 582 Pre-Feasibility/Scoping 259 Operating 190
Feasibility 137 Construction 51 Grass Roots 21 Care/Maintenance 3
Total 2078
Global Drilling Global Drilling June 2009 to August 2010
Australia 720 Canada 512 United States 116 Mexico 107 Brazil 41
Peru 32 Ghana 32 Chile 31
Total Global Projects
Global Gold Projects
Global Copper Projects
Global Silver Projects
Global Lead-Zinc Projects
Global Uranium Projects
Global Nickel Projects
Global Iron Projects
Global Platinum Projects
Global Moly Projects
Global Rare Earth Metals Projects
Property Transactions
Global Property Transactions Total: 744 Amount: US$ 38.4B
Property Transactions
Global Property Transactions Number $Amount Gold 259 8.7 B
Copper 91 5.5 B Silver 88 3.8 B Uranium 20 871.4 M Lead-Zinc 52 2.1
B Nickel 20 862.9 M Coal Group 35 4.9 B Iron Group 9 2.7 B Diamonds
10 451.4 M PGEs 12 186.2 M Molybdenum 16 1.1 B
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GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media
partners: Other sponsors & participating organisations: