STRAITS ASIA RESOURCES LIMITED (Incorporated in the Republic of Singapore on June 10, 1995) (Company Registration Number: 199504024R)
ANNOUNCEMENT BY STRAITS RESOURCES LIMITED ON THE AUSTRALIAN STOCK EXCHANGE
Q2 Activities Report
The attached announcement was released to the Australian Stock Exchange today by Straits Resources Limited (ASX: SRL). Straits Resources Limited has a 60.4% shareholding in Straits Asia Resources Limited.
The release contains information relating to the activities of Straits Asia Resources Limited.
James Carter Company Secretary
25 July 2007
Macquarie Securities (Singapore) Pte Limited is the Sole Global Coordinator, Bookrunner and Underwriter for, and Macquarie Securities (Asia) Pte Limited is the Issue Manager for, the Initial Public Offering of the Company. This announcement has been prepared and released by the Company.
QUARTERLY REPORT
FOR THE PERIOD ENDED 30 JUNE 2007
SUMMARY
Tritton Stage 1 expansion to approximately 35,000 tonnes of copper in concentrate in 2008 is underway with work commenced to increase processing plant from 850 ktpa to 1.4 Mtpa; and development of new decline at Larsens commencing in September 2007 quarter.
Very encouraging drill results at Murrawombie may lead to acceleration of development for Tritton Stage 2 expansion.
Tritton production of 4,480 tonnes of copper in concentrate during the quarter, down 7% on the previous quarter.
Resource definition drilling is well progressed in respect of the Whim Creek sulphide development, and remains on track for December quarter decision.
Whim Creek Copper mine production 3,794 tonnes of copper cathode in the quarter and 7,829 tonnes for the half year ended June 2007, up 5% on the previous corresponding period.
Hillgrove development on track with commissioning of the process plant to commence in the September 2007 quarter. Exploration results continue to provide confidence in system.
Mt Muro quarterly production of 9,831oz gold and 13,838 oz silver. Total production for the 6 months to June 2007 of 27,914 gold equivalent ounces. Higher grades expected in September quarter as transition to Tasat pit is completed.
Sebuku production impacted adversely by heavy rainfalls; continuing to pursue 2007 production of 4.0 Mt, however, this is dependent on the mines production recovery from the rainfall. Expansion works proceeding to raise capacity by 2 Mt, to 6Mtpa.
Further information can be obtained from our website: www.straits.com.au
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OPERATIONS Quarter Quarter SUMMARY Ended Ended Half Year Half Year 30 June-07 31 March-07 30-June-07 30 June-06
Whim Creek Copper Mine
Copper produced (stripped) tonnes 3,794 4,035 7,829 7,467
Copper sales tonnes 3,923 4,219 8,142 7,627 US$/lb Cash costs produced 1.86 1.28 1.56 1.17
Tritton Copper Mine Copper produced in concentrate (100%) tonnes 4,480 4,805 9,285 12,122 Copper sales in concentrate (100%) tonnes 4,992 5,035 10,027 12,778 Cash costs(excludes US$/lb TC/RC) produced 1.21 0.99 1.10 0.81
Mt Muro Gold Mine
Production Au oz 9,831 13,838 23,668 27,686
Ag oz 62,495 171,050 233,546 175,953
Sales Au oz 11,734 14,627 26,361 25,236
Ag oz 86,808 181,050 267,818 151,256
Cash costs US$/oz Au 657 409 512 NA
Sebuku Coal Mine
Coal mined t'000 694 1,005 1,699 1,856
Product coal t'000 623 834 1,457 1,641
Sales t'000 652 851 1,503 1,752
Revenue Sales revenue Group (excl Varomet) A$’000 94,950 87,844 182,794 270,023
Varomet A$’000 894,115 771,816 1,665,931 NA
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BULK COMMODITIES the half year was 7,829 tonnes, a 5% increase on the corresponding period in 2006. Sebuku Coal Mine, Indonesia Straits Asia Resources – 100% Cash costs for the quarter were Coal Co-operation Contract US$1.86/lb and US$1.56/lb for the half year. Sebuku production for the quarter was below expectation due to a prolonged wet The strong appreciation of the Australian season in Kalimantan. In the 6 months to dollar, has increased costs expressed as June 2007 Sebuku recorded rainfall far in US$/lb. This appreciation has raised unit excess of the historical average for the cots by approximately 15% over the past period. Production of 623 Kt was achieved 12 months. for the quarter, and 1,457 Kt for the half year. Towards the end of the second quarter the site was subjected to cyclonic events, Sebuku historically achieves higher which impacted all producers in the Pilbra. production in the second half of the year This event impacted infrastructure and and continues to pursue production in ponds which has abnormally lifted the cost 2007 of 4.0 Mt, however, this is dependent of production. These abnormal costs on the mines production recovery from the constitute approximately US$0.29/lb. recent high rainfall. Measures have been implemented to The mine continues to increase its mitigate the impacts from the above footprint and accelerate waste removal in events which will ensure that second half line with Sebuku’s expansion plan to costs fall back inline with expectations. 6 Mtpa. The expansion works to 6 Mtpa are well under way with the plant and infrastructure expected to be completed by Tritton Copper Mine mid 2008. Production in 2008 is targeted Straits – 100% at 5 Mt and 6 Mt in 2009.
QUARTERLY PRODUCTION STATISTICS BASE METALS TRITTON
Whim Creek Copper Mine Units June Qtr Mar Qtr 2007 2007 Straits – 100% Mined Cu Ore t 200,561 171,495
QUARTERLY PRODUCTION STATISTICS Grade Cu % 3.15% 2.96% WHIM CREEK Milled Cu Ore t 194,758 194,068
Grade Cu % 2.46% 2.63% Units June Qtr Mar Qtr Recovery Cu % 93.33% 94.1% 2007 2007 Cu Concentrate t 17,982 18,925 Ore Mined t 582,218 440,647 Cu Grade % 24.9% 25.4% Grade % 0.85% 1.06%
Ore Stacked t 501,328 445,647 Grade % 0.78% 1.08% Production from the Tritton Copper Mine Production (stripped) t 3,794 4,035 totalled 4,480 tonnes of copper in Cathode Sold t 3,923 4,219 concentrate, a decrease on the previous quarter of 7%. Ore mined was 200,561 Production from the Whim Creek Copper tonnes at a grade (prior to dilution effects) Mine totalled 3,794 tonnes of copper of 3.15% Cu and ore milled 194,758 cathode produced from 582,218 tonnes of tonnes at a grade of 2.46% Cu. ore mined at a grade of 0.85% copper. Production was negatively impacted Copper produced decreased by 6% on the during the quarter due to increased stope previous quarter, however production for ore dilution as a result of continued mining
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through the very narrow “Gap Zone” area. Development ore tonnages were also GOLD lower due to a major focus being placed on the development, in waste rock areas, Mt Muro Gold Mine, Indonesia of major capital ventilation infrastructure, Straits - Contract of Work 100% and of the 4814 Level Diamond Drill Drive. The latter drive will be used as a base for detailed resource definition drilling set to QUARTERLY PRODUCTION STATISTICS MT MURO commence in August 2007. Units June Qtr Mar-Qtr The “Lower Ore Zone” has now been 2007 2007 accessed, providing higher tonnes per Ore Milled t 95,345 84,960 vertical meter, with ore development Gold grade g/t 3.49 5.15 proceeding north and south on 4785 Silver grade g/t 33 73 Level. Gold recovery % 91.8% 93.4% Silver recovery % 58.9% 79.0% As a result of the lower production, cash Production Gold* oz 9,831 13,838 costs (excluding TC/RC’s) for the quarter Silver oz 62,495 171,050 were higher at US$1.21 per pound (US$ Gold Sold oz 11,734 14,627 0.99 per pound in the March quarter). * Production reported is gold poured
During the quarter the Stage 1 Tritton Mt Muro produced 9,831 ounces of gold expansion was commenced with the and 62,495 ounces of silver during the processing plant increased to 1.4 Mt June quarter. While tonnes milled throughput per annum (from 850ktpa). increased to 95,345 from 84,960, the head Work on a decline to the Larsens/North- grade fell to 3.5 g/t from 5.2g/t. east ore bodies is expected to commence in September 2007 with first production As a result of the lower production, cash from Larsens in early 2008. Following the costs increased to US$657 per ounce plant expansion production in 2008 is from US$409 per ounce. forecast at approximately 35,000 tonnes of copper in concentrate. The capital Lower grades resulted in lower metal required for the expansion is production increasing the cash costs per approximately $20 million. ounce. With ore now being sourced from Tasat the grade issue will result in The hedge commitment for Tritton fell off improved production rates and cash costs. sharply in the second quarter and from June 2007 the monthly hedged tonnage is Open cut mining has started at the new approximately 1,300 tonnes per month Tasat pit during the quarter and ore until the end of 2007 (from approx 1,800 production from Tasat has now tpm in the first half of 2007). In 2008 commenced. Tasat will augment the approximately 12,225 tonnes of production supply of ore to the mill currently is hedged and consequently at a processing high grade ore from the Botol production rate of 35,000 tonnes, 65% of pit and small, near mine elluvials and by production will be exposed to the spot the end of the year will be the main source market. of production going forward.
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PROJECTS EXPLORATION
Hillgrove Antimony/Gold Project Straits have continued an aggressive Straits – 100% exploration program during the quarter, throughout Australia and Indonesia.
The redevelopment of the Hillgrove Antimony/Gold Mine, located near INDONESIA Armidale NSW, continued during the quarter. Sebuku, Kalimantan Straits Asia Resources – 100% The underground development continued at Syndicate-Metz with access to the ore Exploration activities continue to define body being achieved. Ore development further extensions to the existing coal along lode has commenced and stoping seams at Sebuku. activities are expected in the last quarter of 2007. Development ore is currently Mt Muro, Kalimantan being transported to the plant stockpile in Straits – 100% readiness for commissioning. Exploration activities at Mt Muro have The construction of the demonstration continued with drilling at the Tumbang process plant is well underway with Lahung area (see Figure 1). commissioning of the crushing/milling circuit expected in August. Discrete dilatational zones at Botol- Tagape, Soan, Sinter and Sinbar have The remainder of the process is expected developed along a well defined northwest to be in production in late September. structurally controlled corridor. Encouraging results have been returned The redevelopment capital cost for from the Sinbar and Soan Prospects Hillgrove to date is approximately including; $37 million including working capital. The site currently employs 120 contractors and 5.7m @ 10 g/t Au & 213 g/t Ag staff who contribute significantly to the economy of the Armidale region. 6.8m @ 16 g/t Au & 113 g/t Ag
Metal production at Hillgrove is expected 8.5m @ 8.6 g/t Au & 61 g/t Ag to ramp up over a 6 month period with annualised production rates being (See Figures 1 & 2 and Table 1 for detail). achieved early in 2008. Initial production is forecast at 10,000 tonnes of antimony Drilling continues at the Tasat / Rabu vein metal, 21,000 ounces of gold and system were mining activities have 300 tonnes of tungsten in concentrate per commenced. annum.
Yannarie Solar Project QUEENSLAND Straits – 100% Straits have a strategic landholding within Responses to the ERMP were completed the Drummond Basin including the 100% by Straits and have been returned to the owned Yandan and the Wirralie JV tenure. EPA. Some further field work to support Historically the Drummond Basin, with additional investigatory work requested by deposits like Pajingo, has proven to be a multi-million ounce gold producing district. the EPA is in progress and once conducted, the final responses for the ERMP will be completed.
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Yandan, Queensland Salt Creek, Western Australia Straits – 100% (Option to purchase 100%)
The project area consists of structural / The Salt Creek Deposit is located stratigraphic targets that are considered approximately 16km from the Whim Creek prospective for covered bulk mineable operation. Yandan-style, and low sulphidation high grade epithermal gold mineralisation. Drilling designed to infill the known Detailed magnetics has identified a resource and extend the limits of the number of zones currently being followed identified high grade lenses is ongoing. up with detailed gradient array IP geophysics. Drilling of these targets will Straits had previously planned to complete be undertaken during the second half of an infill drill program and the calculation of 2007. a new resource by the end of the second quarter 2007. Delays to access caused by Activities on the ground have been rain and rig availability have slowed the hampered due to adverse weather program however. At the end of the conditions which have affected much of quarter 9 holes had been completed and central and northern Queensland. assay results for only 3 holes have been received with the majority still outstanding. The most significant results returned to Wirralie, Queensland date is: Straits – earning 80% WSD118 with 5.8m @ 1.6% Cu. Geological consultants have been commissioned to undertake a generative For results from the drill program see study targeting and ranking all exploration Table 4, and Figure 5 & 6. prospects in the Wirralie JV tenure. Compilation work has commenced with ground activities to start in July. NEW SOUTH WALES
WESTERN AUSTRALIA Tritton Copper Project Straits – 100% Whim Creek, Western Australia Straits – 100% Very encouraging results have been returned from drilling at Murrawombie and Mine Site Drilling Whim Creek & Mons Larsens. Exploration activities during the Cupri. Straits - 100%. period have concentrated on definition drilling of resources and reserves at Drilling activities in the Whim Creek area Murrawombie and the Larsens areas. have concentrated at the Rushalls Prospect located some 200m North West Better results for the drilling at of the Whim Creek Pit. At Mons Cupri Murrawombie include: drilling was targeting the NW pits zone located some 400m North West of Mons 18.0m @ 4.6% Cu Cupri. Both of these programs were designed with the aim to test for near 14.9m @ 3.4% Cu surface cu-oxide mineralisation which is amenable to the SX-EW treatment route. 7.2m @ 2.3% Cu
For better intercepts at the Whim Creek 34.7m @ 2.9% Cu Pit see Tables 2.1 & 2.2 and Figure 3, and for the Mons Cupri (Northwest) see Tables Better results for the drilling at Larsens 3.1 & 3.2, and Figure 4. include:
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8.5m @ 4.5% Cu In the current quarter, exploration drilling will test the Golden Gate and Bakers 16m @ 3.1% Cu Creek mines from the Lower Cooney Tunnel. Following on from this, 8m @ 4.33% Cu exploration drilling will continue with resource extensions to the Syndicate lode. 13m @ 3% Cu Goldminco 5.9m @ 5.5% Cu Straits - 55% (TSX-V:GCP)
For complete results from the drilling Straits is a major shareholder in program please refer to Table 7 and Goldminco, a TSX listed Exploration Figure 7 for Murrawombie & Tables 6 and Company. An exploration update for Figure 8 for Larsens. Goldminco was released to the market on 6 July 2007, the highlight being the At Murrawombie, drilling is focussing on significant aircore results at the Monza definition drilling below the mined prospect where a highly anomalous Murrawombie oxide pit. At Larsens drilling (>3,000 ppm Cu) porphyry intrusive is targeting the extension of sulphide measuring approx 500m x 400m has been systems previously mined in the Larsens identified. Aircore results include; oxide open pit. Work is currently in progress to calculate resources and • 27m @ 0.8% Cu and 0.3 g/t Au reserves. • 12m @ 0.9% Cu and 0.1 g/t Au.
Hillgrove Gold Project Goldminco plans to diamond drill test this Straits – 100% exciting new prospect in the second half of 2007. The first phase of definition drilling was completed at Brackins Spur during the A drill program is currently underway at quarter. The 10 hole program was the Discovery Ridge prospect. At 30 June designed to test the grade distribution of 2007, two holes had been completed, with the Brackins Spur shear system, over a one intersecting strong arsenopyrite strike length of 400m. Significant mineralisation. Assay results are awaited intercepts were returned that highlighted for these holes and a third hole is in the potential depth extension of the progress. Goldminco plans to conduct Northern Blocks #1 and #2 (previously further drilling at the Dam project later in defined by New England Antimony Mines the year. Pty Ltd). High grade tungsten (up to 2.8% W) was associated with gold/antimony mineralisation within the SOUTH AUSTRALIA lode. A second phase of drilling is planned for the last quarter of 2007 this will EL3195, South Australia continue the drill coverage to the south. Straits – earning 70% (see Figure 9.) Straits and JV partner Kelray Pty Ltd are Resource drilling commenced at the exploring for iron oxide copper gold Eleanora prospect, with a 13 hole (“IOCG”) systems in the highly prospective diamond drill program from the 1745 level. Stuart Shelf region of South Australia. The holes were designed to evaluate the During the quarter, Straits has grade distribution of the gold commenced a gravity survey and plans to mineralisation over a strike distance of commence drilling in the second half of 650m. All holes intersected the Eleanora 2007. lode with significant intersections tabulated in Table 1.0.
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CORPORATE Currency In the June quarter, Straits delivered Cash US$6.82 million into US$/A$ forward At the end of June 2007, the Straits Group contracts at a weighted average contract cash resources totaled A$68 million. This rate of US$/A$ 0.7100.Total A$/US$ comprised A$29 million for the Group’s currency hedging comprises contracts to operations in Australia, A$19 million cash sell forward US$44.9 million at a weighted resources within the Straits Asia Group average exchange rate of and A$20 million attributable to the Straits A$1.00=US$0.7507 with maturities Group’s other activities. between July 2007 and January 2009. The
net mark to market valuation of these Hedging contracts at 30th June 2007 is Hedging in place relating to the Whim approximately A$6.1 million in the money. Creek and Tritton Copper operations is summarised below. Tritton Whim Creek Tritton Resources Limited has in place
fixed copper forward contracts and Copper forward foreign exchange contracts (to During the quarter, Straits settled hedge hedge the US$ denominated copper contracts for 2,166 tonnes (55% of June revenue derived from delivery under the quarter sales) at the weighted average fixed copper forward contracts). There are contract rate of US$3,912 per tonne no margin calls payable on the hedging. compared to the weighted average LME Tritton settled copper hedge contracts for settlement price of US$7,359 per tonne. 4,850 tonnes in the quarter, representing During the same period collar option 97% of the quarters sales. The weighted contracts for 600 tonnes lapsed. average contract rate was US$2,249.42 per tonne compared to the weighted Copper hedge contracts position at 30 average LME settlement price of June 2007: US$7,257.08. US$/A$ forward contracts to 1. Fixed forward contracts totalling the value of US$10.9 million at a weighted 10,954 tonnes of copper at a average contract rate of US$/A$ 0.7065 weighted average contract price of were also settled. US$5,068 per tonne with settlement dates between July Tritton has forward exchange contracts to 2007 and January 2009 sell forward US$49.9 million with 2. Collar option contracts totalling maturities between July 2007 and January 6,200 tonnes of copper at a 2009 at a weighted average exchange weighted average bought put strike rate of A$1.00=US$0.7126. price of US$5,806 per tonne and sold call strike price of US$7,112 Tritton has fixed forward contracts totalling per tonne. 21,250 tonnes of copper with maturities 3. The net mark to market valuation between July 2007 and January 2009 at a of these contracts at 30 June 2007 weighted average price of US$2,346 per is approximately A$29.2 million out tonne. of the money. There are no margin calls to Straits in respect of its The net mark to market valuation of the hedging contracts. forward currency exchange and copper forward contracts is approximately A$100.2 million out of the money.
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By Order of the Board
Milan Jerkovic Chief Executive 30 June 2007
References in this report to “Straits Resources Limited”, “Straits” and “Company” include, where applicable, its subsidiaries.
For further information contact: Mr Milan Jerkovic – Chief Executive Officer (08) 9480 0500
Mr Dave Greenwood –Corporate Affairs (08) 9480 0500
www.straits.com.au
About Straits Resources
Straits is an ASX200 diversified resources company focussed on generating strong and sustainable earnings for its shareholders from a balanced portfolio of resource projects. Based in Perth, the company has a management team with an impressive track record of advancing resource projects through to full-production. Straits controls and operates the Whim Creek Copper Operation in WA, the Tritton Copper Operation in NSW, the Mt Muro gold mine in Indonesia and the Sebuku Coal mine in Indonesia owned by Straits subsidiary Straits Asia Resources which is listed on the Singapore exchange. In addition Straits holds an outstanding portfolio of mining investments, development projects and exploration ground throughout Australia and Indonesia. Straits also owns Varomet, a UK based physical metal distribution and marketing business.
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PROJECT LOCATION
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DRILLHOLE RESULTS AND LOCATIONS Figure 1. Location Plan of Tumbang Lahung Prospects.
Figure 2. Long-section Tumbang Lahung vein systems.
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Table 1: Sinter/Sinbar veins significant results. HoleId East North Dip Azimuth From (m) To (m) Width (m) Au ppm Ag ppm Location BOTD309 199827 9927484 -65 70 350.8 357.8 7 2.6 22 Sinter Vein 364.8 365.8 1 1.2 8 Sinter Vein BOTD311 199666 9927693 -61 27.5 256.75 257.75 1 15.5 98 Sinbar Vein 267.8 273.45 5.65 10.2 213 Sinbar Vein 277.6 284 6.4 1.5 5 Sinbar Vein BOTD313 199827 9927484 -75 70 71.5 75.6 4.1 3.6 16 Sinter Vein 77.9 78.9 1 1.0 2 Sinter Vein BOTD320 200140 9927136 -76 76 402.1 407.7 5.6 4.2 147 Soan Vein 411.9 416.9 5 1.9 93 Soan Vein BOTD321 199827 9927484 -55 58 314.95 318.8 3.85 2.5 17 Sinter Vein BOTD322 199739 9927747 -66 55 193.35 193.8 0.45 3.2 49 Sinbar Vein 201.7 202.5 0.8 2.2 5 Sinbar Vein 205.65 210.65 5 9.4 76 Sinbar Vein 232.05 233.1 1.05 4.3 10 Sinbar Vein BOTD324 199828 9927482 -62 81 72.3 72.9 0.6 2.6 2 Sinter Vein 378.45 382.25 3.8 1.7 44 Sinter Vein 385.1 387 1.9 1.6 39 Sinter Vein BORC089 200290 9927333 -71 50 84 85 1 15.2 473 Soan Vein BORC090 200271 9927316 -72 50 110.5 113.5 3 7.7 162 Soan Vein BORC091 200283 9927347 -67 55 81 81.8 0.8 6.6 273 Soan Vein 93.58 93.9 0.32 1.3 4 Soan Vein BORC093 200332 9927388 -50 90 19 21 2 5.3 4 Soan Vein BORC095 200274 9927283 -72 50 112.95 116.3 3.35 1.0 16 Soan Vein 120 126.75 6.75 16.0 113 Soan Vein BORC096 200284 9927260 -67 50 98.7 101.5 2.8 2.7 6 Soan Vein 111.65 116.15 4.5 3.1 42 Soan Vein BOTD327 200245 9927124 -79 46 298.98 307.5 8.52 8.6 61 Soan Vein Minimum 10 Au_eq g x mtrs Calculation Specifications Lower Cut of 1.00ppm Au No Top Cut Applied Maximum Internal Waste 2m Minimum Width To Accumulate 0.2m
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Figure 3: Location Plan for Drilling at Whim Creek Deposit, West Australia.
Table 2.1: Cu intercepts Whim Creek Drilling Hole ID East North Dip Azimuth From (m) Interval (m) Cu % Pb % Zn % Ag ppm Au ppm WWC137 586680.5 7694484 -60 180 0 4 10.8 0.0 0.0 6 0.1 WWC139 5866696 7695597 -60 180 8 8 1.0 0.0 0.0 1 0.0 WWC161 586814 7694542 -60 180 16 12 0.8 0.1 0.0 4 0.0 WWD143 586769 7694613 -64 184 65 8 1.1 0.2 0.1 5 0.0 includes 66 1 3.2 0.7 0.2 14 0.0 Lower Cut 0.5% Cu, max internal dilution 6m, minimum 10% Cu (grade% x m) Including Values: 2% Cu max internal dilution 6m
Table 2.2 :Zn intercepts Whim Creek Hole ID East North Dip Azimuth From (m) Interval (m) Zn % Pb % Cu % Ag ppm Au ppm WWC141 586693.7 7694538 -60 180 36 4 2.5 0.1 0.1 4 0.0 WWC146 586725.4 7694562 -60 180 44 8 5.0 0.3 0.1 8 0.1 includes 44 4 9.3 0.6 0.0 12 0.1 WWC147 586729.3 7694581 -60 180 52 12 1.3 0.4 0.1 8 0.0 WWC151 586712 7694561 -60 180 44 8 2.3 0.2 0.1 5 0.1 includes 44 4 4.1 0.3 0.1 9 0.1 WWC158 586784.7 7694615 -60 180 68 4 2.4 0.6 0.2 11 0.0 includes 68 4 2.4 0.6 0.2 11 0.0 Lower Cut 1% Zn, max internal dilution 6m, minimum 10% Zn (grade% x m) Including Values: 2% Zn max internal dilution 6m
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Figure 4. Location Plan for Drilling at Mons Cupri NW Pits, West Australia.
Table 3.1 Intercepts from Drilling at Mons Cupri NW Pits, West Australia. Hole ID East North Dip Azimuth From (m) Interval (m) Cu % Pb % Zn % Ag ppm Au ppm WMC087 583541 7691092 -60 60 24 11 1.7 0.0 0.0 4 0.0 includes 32 3 3.2 0.0 0.0 6 0.1 WMC091 583555 7691083 -60 60 16 12 2.5 0.0 0.1 3 0.1 includes 16 4 4.9 0.0 0.2 7 0.1 WMC104 583501 7691017 -60 60 12 12 1.6 6.3 1.0 295 0.5 includes 12 4 3.3 6.1 2.5 146 0.3 WMC106 583534 7690985 -60 67 20 8 3.6 0.9 0.5 66 0.6 includes 20 4 6.0 1.7 0.9 125 0.9 WMC109 583522 7690978 -75 33 24 12 0.8 1.9 0.3 35 0.5 6041.00.00.130.0 WMC110 583549 7690976 -55 70 24 8 2.2 0.4 0.9 38 0.1 includes 28 4 3.1 0.5 1.7 40 0.2 WMC112 583525 7690962 -62 70 28 12 0.9 0.1 0.1 11 0.1 WMC115 583531 7691104 -60 56 4 20 2.3 0.1 0.1 20 0.3 includes 16 8 4.4 0.0 0.0 16 0.2 WMC117 583539 7691116 12 8 3.6 0.1 0.1 17 0.2 includes 12 8 3.6 0.1 0.1 17 0.2 WMC121 583522 7691116 -60 60 4 20 0.5 3.1 0.1 91 0.6 WMD060 583379 7690971 -86 36 70 24 0.7 0.3 1.0 35 0.1 includes 71.75 1.75 3.7 1.9 12.1 172 0.9 10510.50.00.030.0 WMC125 584118.1 7690659 -90 0 23 13 0.8 0.0 0.1 4 0.0 includes 28 1 3.0 0.1 0.1 12 0.1 WMC127 584064.4 7690700 -60 203 4 6 0.9 0.0 0.0 3 0.0 WMC127 584064.4 7690700 -60 203 21 38 0.5 0.0 0.1 3 0.0 WMC128 583765 7690756 -90 0 50 9 1.2 0.2 0.8 26 0.1 includes 54 1 2.2 0.1 0.7 29 0.2 WMC130 583797.8 7690706 7 1 1.1 0.7 0.5 7 0.0 WMC130 583797.8 7690706 30 10 1.4 0.1 0.3 27 0.1 WMC131 583786.9 7690647 15 10 1.4 0.6 1.0 56 0.3 includes 18 1 3.4 1.2 0.4 182 0.3 Lower Cut 0.5% Cu, max internal dilution 6m, minimum 10% Cu (grade% x m) Including Values: 2% Cu max internal dilution 6m
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Table 3.2 Intercepts from Drilling at Mons Cupri NW Pits, West Australia. Hole ID East North Dip Azimuth From (m) Interval (m) Zn % Pb % Cu % Ag ppm Au ppm WMC055 583776 7690926 -65 23 108 12 0.4 0.2 0.0 13 0.1 WMC056 583708 7690968 -60 20 20 4 0.8 0.1 0.0 7 0.0 40 8 1.4 0.4 0.2 32 0.1 146 1 1.9 1.0 0.1 25 0.0 WMC057 583708 7690966 -70 20 45 4 2.8 0.4 0.0 11 0.1 includes 46 2 4.2 0.6 0.0 14 0.1 149 4 3.2 1.5 0.2 58 0.1 includes 149 2 5.4 2.5 0.2 86 0.1 WMC062 584067.4 7690579 -90 0 38 14 0.8 0.5 0.4 22 0.1 WMC063 584026 7690569 -90 0 40 34 0.8 0.5 0.1 14 0.0 includes 54 2 2.3 1.3 0.1 19 0.0 WMC070 583507.2 7691008 -55 60 14 14 1.4 5.6 5.6 287 0.4 includes 14 4 2.8 2.9 10.6 438 0.1 WMC072 583421.5 7691088 -65 60 32 14 0.8 0.0 0.0 2 0.0 WMC075 583499.7 7690950 -55 47 50 14 5.6 2.2 0.7 73 0.4 includes 51 12 6.4 2.6 0.8 83 0.5 WMC078 583464.6 7691179 -55 230 13 20 0.7 0.0 0.0 2 0.0 WMC081 583448 7691012 -61 66 41 10 1.7 0.4 0.0 26 0.0 includes 42 8 1.8 0.5 0.0 31 0.0 65 2 0.7 0.0 0.0 1 WMC082 583466.3 7690926 -61.5 53 60 11 1.8 0.7 0.0 22 0.0 includes 60 7 2.4 1.0 0.1 29 0.1 83 14 0.8 0.3 0.0 15 0.0 116 4 1.0 0.0 0.0 2 132 4 0.7 0.3 0.0 6 159 1 0.8 0.1 0.0 12 168 6 1.6 0.4 0.0 17 0.0 includes 169 1 2.9 0.8 0.0 39 WMC088 583505 7691072 -60 60 28 8 1.2 0.2 0.4 9 0.0 WMC104 583501 7691017 -60 60 12 4 2.5 6.1 3.3 146 0.3 includes 12 4 2.5 6.1 3.3 146 0.3 WMC113 583495 7690997 -60 60 24 12 2.0 2.6 0.1 73 0.5 includes 32 4 5.2 7.5 0.2 209 0.5 WMC119 583448 7691073 -55 75 28 8 1.4 0.5 0.9 27 0.1 includes 32 4 2.2 0.9 1.7 50 0.1 4460.90.10.020.0 WMD055 583670 7691035 -78 49 125.4 1.6 19.2 9.2 0.1 373 0.2 includes 125.4 1.05 28.9 13.8 0.1 547 0.4 WMD058 583462 7690914 -64 31 62 54 1.4 0.4 0.1 9 0.0 includes 63.3 34.7 1.7 0.4 0.0 11 0.0 includes 110 2 3.4 0.6 0.0 9 0.1 126.45 4.55 1.7 0.5 0.1 24 0.0 includes 127.9 2.1 2.9 1.0 0.2 40 0.0 145 1 1.0 0.3 0.0 3 162 15 2.2 0.7 0.2 10 0.0 includes 163 10 2.7 0.8 0.2 11 0.0 186 1 0.7 0.2 0.0 4 WMD059 583379 7690971 -65 57 74 4.65 8.3 3.1 0.1 124 0.1 includes 74.5 3.5 10.8 4.0 0.0 158 0.1 107 1.42 0.6 0.7 0.0 20 WMD060 583379 7690971 -86 36 67.8 6.2 7.0 2.2 1.3 96 0.4 includes 67.8 5.7 7.4 2.4 1.4 103 0.4 89 1 0.8 0.2 0.6 23 0.1 WMD062 583720 7690566 -61 60 139 8 0.7 0.2 0.2 16 0.0 16110.60.10.030.0 169 12 1.2 0.3 0.1 11 0.0 includes 172 2 3.0 0.5 0.0 13 0.0 WMC128 583765 7690756 -90 0 35 24 1.3 0.5 0.5 25 0.1 includes 45 2 3.9 2.2 0.1 53 0.1 WMC129 583770.8 7690731 26 25 1.0 0.5 0.1 22 0.3 includes 35 3 2.4 1.2 0.1 34 0.0 Lower Cut 1% Zn, max internal dilution 6m, minimum 10% Zn (grade% x m) Including Values: 2% Zn max internal dilution 6m
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Figure 5. Location Plan for Drilling at Salt Creek Deposit, West Australia.
Figure 6. Salt Creek-Long Section
West East
0m
Western Lens Eastern Lens
100m
200m
WSD123 300m WSD118
WSD124 400m WSD121 WSD125
WSD122 Zinc 500m WSD126 WSD120 Copper WSD120 WSD119
250m
Longitudinal Projection Salt Creek – Recent Drilling
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Table 4: Intercepts from Drilling at Salt Creek Deposit, West Australia.
Hole ID East North Dip Azimuth From (m) Interval (m) Cu % Pb % Zn % Ag ppm Au ppm WSD118 573675 7704505 -65 311 227.2 5.8 1.6 0.0 0.1 3 0.06 WSD119 573702.6 7704391 -70 313 397 5 1.6 0.0 0.0 1 0.04 Lower Cut 0.5% Cu, max internal dilution 6m, minimum 10% Cu (grade% x m) Including Values: 2% Cu max internal dilution 6m
Figure 7. Long Section of Murrawombie Deposit Looking west, New South Wales.
Table 5. Intercepts from Drilling at Murrawombie Deposit, New South Wales.
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Table 5: Intercepts from Drilling at Murrawombie Deposit, New South Wales.
STRAITS TRITTON COPPER Drill Intercepts: Girilambone ML1280 TEP Programme (0.25% Cu and 1.0% Cu cutoff)
HoleID East North Dip Az (mag) From (m) Width (m) Cu % Au ppm Note MTD027 5703 10277 -70° 229 196.00 26.8 0.7 MZ 190-240m incl 197.20 8.8 1.2 0.3 MTD028 5699 10255 -65° 229 183.50 5.0 2.1 0.4 MZ 184-210m MTD029 5700 10255 -50° 219 253.90 4.1 1.5 0.2 MZ 251-278m MTD031 5714 10330 -65° 229 185.70 8.5 1.7 0.4 0.85%Zn incl 185.70 6.3 2.1 0.5 1.09%Zn MTD032 5714 10305 -77° 224 205.50 5.2 1.6 0.4 MTD033 5750 10175 -54° 229 298.20 11.8 0.5 0.1 MZ 299-315m MTD035 5750 10175 -60° 222 241.76 7.2 2.3 0.4 MZ 282-302m incl 241.76 3.1 5.2 1.0 and 287.70 18.3 0.8 0.1 MTD036 5735 10375 -60° 229 177.04 14.0 0.5 0.4 NS min MTD037 5692 10240 -65° 229 189.84 23.2 0.4 NA MZ 260-265m MTD038 5750 10225 -60 229 233.20 13.8 0.8 0.1 0.65%Zn and 258.00 46.0 1.2 0.3 0.4%Zn incl 272.05 20.0 1.8 0.5 0.44%Zn MTD039 5692 10240 -55 229 183.65 12.4 1.2 NA incl 185.95 3.1 3.5 NA and 203.00 28.0 1.2 NA incl 217.00 13.3 2.1 NA MTD040 5750 10225 -85 229 258.00 8.0 1.8 0.7 0.38%Zn and 336.00 14.0 0.7 0.0 incl 337.00 5.0 1.4 0.1 MTD041 5692 10240 -85 229 226.22 27.8 0.5 0.1 and 301.90 16.1 1.0 0.0 incl 301.90 4.1 2.2 0.1 MTD042 5770 10275 -80 229 340.00 17.0 1.0 0.1 incl 347.00 10.0 1.4 0.1 MTD043 5750 10190 -55 229 256.90 3.1 1.8 0.1 MTD044 5722 10325 -55 229 177.00 17.0 1.0 NA MTD045 5725 10350 -55 229 175.00 9.0 1.7 1.3 MTD046 5750 10190 -60 222 288.00 5.0 1.6 0.4 MTD047 5900 10160 -70 219 324.20 62.8 1.14 0.3 incl 328.55 14.9 3.43 0.8 MTD048 5900 10160 -75 219 346.10 56.9 0.98 0.2 incl 350.25 16.8 1.51 0.3 and 373.90 5.1 2.52 0.8 MTD049 5900 10160 -55 219 assays awaited MTD050 5906 10108 -68 219 365.30 34.7 2.88 0.5 0.52%Zn incl 366.00 18.0 4.58 0.9 0.89%Zn and 394.00 5.0 2.71 0.3 MTD051 assays awaited
Murrawombie: Recent significant drilling results, (0.25 & 1% Cu cut-off).
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Figure 8. Long Section of Drilling at Larsens, New South Wales.
Table 6. Intercepts from Drilling at Larsens, New South Wales.
STRAITS TRITTON COPPER Drill Intercepts (1.0% Cu cutoff) : Larsens ML1383
HoleID East North Dip Az (mag) From (m) Width (m) Cu % Au ppm Note LRDT013A 17202 22302 -65 240 212.75 2.55 1.8 0.2 LRDT015 17150 22401 -70 240 190.80 8.45 4.5 0.3 1.16%Zn and 211.00 16.00 3.1 0.1 LRDT019 17150 22400 -60 240 186.00 8.00 4.3 0.3 and 203.90 4.30 3.8 0.1 LRDT021 17180 22370 -70 240 202.65 6.00 1.5 NA and 213.40 5.60 3.7 NA and 227.30 35.70 1.5 NA incl 238.80 13.00 3.0 NA LRDT022 17180 22370 -60 240 226.00 9.00 2.9 0.1 LRDT023 17180 22370 -70 240 232.95 5.90 5.5 0.2
Larsens: Recent significant drilling results, (0.2 & 1.0% Cu cut-off).
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Figure 9. Long Section of Brackins Spur - Hillgrove, New South Wales.
Figure 10. Long Section of Eleanor/Garibaldi - Hillgrove, New South Wales.
Table 7. Intercepts from Drilling at Hillgrove, New South Wales. HOLE PROSPECT EAST NORTH DIP AZ. FROM WIDTH Au g/t Sb % W % Au Eq. BRK007 Brackins Spur 395250 6614845 -50 192 93.6 0.8 8.6 0.02 0.84 13.9 BRK007 Brackins Spur 395250 6614845 -50 192 127.1 1.2 10.8 8.4 0 28.2 BRK008 Brackins Spur 395333 6614651 -61 280 117.5 4.7 7.3 0.27 0 7.9 BRK008 Brackins Spur 395333 6614651 -61 280 136.2 0.9 0.0 0.01 2.82 17.6 BRK008 Brackins Spur 395333 6614651 -61 280 175.2 1.4 16.2 0 0.01 16.3 ELG073 Eleanora 394473 6616758 -43 225 191.6 1.1 2.6 1.65 0 6.1 ELG074 Eleanora 394556 6617050 -43 279 221.6 3.2 6.2 0.03 0.01 6.3 ELG076 Eleanora 394556 6617049 -53 241 199.6 6.4 5.5 0.01 0.01 5.6 Minimum 5 g x m Au (Au Eq = Au + (Sb%x2.07) + (W x factor)) Assumptions Au US$650, Sb US$5,500 & WO3 US$12,500. Sb Factor 2.07, Tungsten Factor 6.22 Exchange Rate: US$1 = AUD$0.70 20