ExplorationExploration andand DevelopmentDevelopment OpportunitiesOpportunities inin SouthSouth AustraliaAustralia MarkMark McGeoughMcGeough ManagerManager ofof GeologicalGeological SurveySurvey andand TedTed TyneTyne DirectorDirector ofof MineralMineral ResourcesResources PrimaryPrimary IndustriesIndustries andand ResourcesResources SouthSouth AustraliaAustralia SouthSouth Australia’sAustralia’s MineralMineral SectorSector HighlightsHighlights forfor 20072007 RecordRecord levelslevels ofof mineralmineral andand geothermalgeothermal explorationexploration expenditureexpenditure andand drillingdrilling inin 20072007 drivendriven by:by: •• Copper-Gold;Copper-Gold; Uranium;Uranium; Gold;Gold; BaseBase Metals;Metals; MineralMineral SandsSands andand hothot RocksRocks (geothermal)(geothermal) •• NewNew discoveriesdiscoveries andand encouragingencouraging intersectionsintersections inin allall mineralmineral provincesprovinces andand acrossacross allall commoditiescommodities •• NewNew geosciencegeoscience andand PACEPACE collaborativecollaborative drillingdrilling successessuccesses •• MajorMajor miningmining developmentsdevelopments forfor Copper-Gold;Copper-Gold; Uranium;Uranium; Gold;Gold; BaseBase Metals;Metals; IronIron OreOre andand MineralMineral SandsSands South Australian Export Figures Minerals contribution has almost doubled in 3 years Other Other Petroleum 11% Agriculture and 14% Agriculture and 2% Petroleum Food Road Food 3% 23% vehicles 34% Road vehicles 17% 11% Wine 20% Minerals Wine Machinery Machinery 13% 18% Minerals 5% 24% 5% 2003/04 2006/07 South Australia – 300 250 200 150 100 $m record levels of minera 50 Exploration Share 0 1992-93 1993-94 1994-95 1995-96 1996-97 l exploration expenditure 1997-98 1998-99 1999-00 2000-01 PACE startup 2001-02 2002-03 18.00% 16.00% 2003-04 14.00% 12.00% 2004-05 10.00% 8.00% 2005-06 6.00% 4.00% 2006-07 2.00% 0.00% South Australia’s share of exploration in Australia PACE recognised through a prestigious Premier's Award • PACE wins 2007 Premier's Award for the category Growing Prosperity during Public Sector Week • The inaugural awards showcase excellence in the public sector and are an opportunity to recognise the best and brightest public sector initiatives from across the State Total Exploration Drilling Metres* includes Olympic Dam 1400000 Total drilling metres Diamond drilling metres 1200000 Estimate 1000000 800000 Metres 600000 400000 200000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Roxby Downs – delineation drilling 14 rigs South Australia’s Expanding Minerals and Energy Sector 2001 2007 Habanero 1, 2 Arckaringa Basin CSM Yerila Cairn Hill Peculiar Knob Prominent Hill Beverley Beverley 4 Mile Paralana 1B-DW1 Challenger Olympic Dam Leigh Creek Beverley Olympic Dam Mount Gee Ambrosia Blanche 1 & Mt Painter Leigh Creek Tunkillia Beltana Jacinth Carrapateena Goulds Dam Oban Tripitaka Punt Hill Crockers Well Portia Kalkaroo Honeymoon Gullivers Crockers Well Mutooroo Middleback Ranges Menninnie Dam White Dam Wilcherry Hill Radium Hill Middleback Ranges Wilgerup Mindarie Bird in Hand Kanmantoo Angas Heat Flow 1, 1A, 3, 3A, 4 Mineral Projects 2007 and the list is growing! New Mines: Honeymoon (U) Prominent Hill (Cu-Au) Mindarie (HMS) Angas (Zn-Pb) Beltana/Reliance (Zn Habanero 1, 2 Mine Expansion Projects: Arckaringa Basin Olympic Dam (Cu-Au-U) Beverley (U) CSM Project Magnet (Iron Ore) Challenger (Au) Cairn Hill Yerila Leigh Creek (Coal) Peculiar Knob Prominent Hill Challenger Beverley 4 Mile Paralana 1B-DW1 Proposed Mining Developments: Olympic Dam Mount Gee Beverley Beltana Leigh Creek Kanmantoo (Cu) Jacinth, Ambrosia (HMS) Ambrosia Blanche 1 Tunkillia White Dam (Au) Cairn Hill (Iron Ore) Jacinth Carrapateena Gould’s Dam Oban Tripitaka Punt Hill Crockers Well Portia Portia (Au) Beverley Extension (U) Kalkaroo Honeymoon Mutooroo Cairn Hill (Iron Ore) Gullivers Menninnie Dam White Dam Wilcherry Hill Radium Hill Advanced Exploration: Project Magnet Arkaringa Basin (CSM) Mutooroo (Cu-Co) Wilgerup 4 Mile (U) Oban (U) Bird in the Hand (Au) Peculiar Knob (Iron Ore) Mount Gee (U) Menninnie Dam (Pb, Zn) Bird in Hand Mindarie Kanmantoo Punt Hill (Cu-Au-U) Kalkaroo (Cu, Mo) Projects to watch Angas Carrapateena (Cu-Au-U) Tripitaka (HMS) • Major Mine Crocker’s Well (U) Tunkillia (Au, Ag) • Mining Development Gullivers (HMS) Wilgerup (Iron Ore) Kingston Gould’s Dam (U) Wilcherry Hill (Iron Ore) • Geothermal Projects Heat Flow 1, 1A, 3, 3A, 4 New Mines 2008 ProminentProminent HillHill –– Copper-Gold-SilverCopper-Gold-Silver Prominent Hill OxianaOxiana •• ConstructionConstruction currentlycurrently pre-strippingpre-stripping phasephase •• $775$775 millionmillion projectproject withwith initinitialial minemine lifelife ofof 1010 yearsyears •• MineralMineral ResourceResource 102.01102.01 MtMt @@ 1.45%1.45% Cu,Cu, 0.510.51 g/tg/t AuAu andand 3.33.3 g/tg/t AgAg •• TotalTotal containedcontained metalmetal 1.481.48 MtMt CuCu,, 2.5762.576 MozMoz AuAu andand 11.6811.68 MozMoz AgAg •• OreOre ReserveReserve 68.268.2 MtMt @@ 1.31%1.31% Cu,Cu, 0.590.59 g/tg/t AuAu andand 3.253.25 g/tg/t AgAg •• TotalTotal containedcontained metalmetal 0.8920.892 MtMt Cu,Cu, 1.2971.297 MozMoz AuAu andand 7.1327.132 MozMoz AgAg •• AnnualAnnual productionproduction forfor firstfirst fourfour yearsyears •• 88 MtMt ofof oreore •• 104104 000000 tt Cu,Cu, 115115 000000 ozoz AuAu andand 400400 000000 ozoz AgAg •• HighHigh gradegrade CuCu andand AuAu mineralisationmineralisation upup toto 500500 mm belowbelow plannedplanned openopen pitpit •• BestBest resultsresults include;include; •• D276D276 –– 28m28m @@ 2.1%2.1% CuCu andand 0.60.6 g/tg/t Au,Au, 135135 mm @@ 1.5%1.5% CuCu andand 1.01.0 g/tg/t AuAu •• D277D277 –– 62m62m @@ 1.45%1.45% CuCu andand 0.80.8 g/tg/t AuAu AngasAngas –– Zinc-Lead-SilverZinc-Lead-Silver TerraminTerramin AustraliaAustralia Angas •• IndicatedIndicated resourceresource estimatedestimated atat 3.043.04 MtMt gradigradingng 8.0%8.0% Zn,Zn, 3.1%3.1% Pb,Pb, 3333 g/tg/t Ag,Ag, 0.50.5 g/tg/t AuAu andand 0.3%0.3% CuCu withwith mineralisationmineralisation averagiaveragingng aroundaround 77 mm inin thicknessthickness inin thethe mainmain RankineRankine orebodyorebody •• AnnualAnnual oreore throughputthroughput whenwhen fullyfully opeoperationalrational isis expectedexpected toto rampramp upup toto 400400 000000 t,t, producingproducing atat peakpeak 6565 000000 tt ofof ZnZn andand 1616 000000 tt ofof Ag-PbAg-Pb concentrateconcentrate respectivelyrespectively •• ConstructionConstruction ofof portalportal complete,complete, tunnellitunnellingng ofof declinedecline toto accessaccess orebodyorebody inin progressprogress •• PlantPlant constructionconstruction commencedcommenced inin OctoberOctober 20072007 withwith commissioningcommissioning inin JulyJuly 20082008 •• FirstFirst concentratesconcentrates scheduledscheduled forfor AugustAugust 20082008 •• SempraSempra MetalsMetals andand ConcentrateConcentrate CorpCorp havehave sisignedgned offoff taketake agreementsagreements forfor thethe lifelife ofof thethe minemine September 2007 MindarieMindarie MineMine –– HeavyHeavy MineralMineral SandsSands AustralianAustralian ZirconZircon Mindarie •• ConstructionConstruction phase,phase, firstfirst productproduct dispatdispatchedched fromfrom MindarieMindarie railrail exportexport facilityfacility OctoberOctober 20072007 •• MeasuredMeasured andand IndicatedIndicated ResourcesResources ofof 171171 MtMt containingcontaining 3.2%3.2% HMSHMS (Mine(Mine ResourceResource 44.744.7 MtMt @@ 3.6%)3.6%) •• CurrentCurrent plannedplanned minemine lifelife inin excessexcess ofof 1414 yearsyears •• MiningMining OperationOperation toto treattreat 3–43–4 MtMt oreore papa producingproducing 150150 000000 tt ofof HMHM concentrateconcentrate containing:containing: -- 3030 000000 tt zirconzircon -- 66 000000 tt rutilerutile -- 44 000000 tt leucoxeneleucoxene -- 6060 000000 tt ilmeniteilmenite September 2007 HoneymoonHoneymoon –– UraniumUranium UraniumUranium OneOne Honeymoon •• CurrentCurrent mineralmineral resourceresource ~~ 1.21.2 MtMt atat anan averageaverage gradegrade ofof 0.24%0.24% containingcontaining 22 900t900t (6.5(6.5 Mlb)Mlb) UU33 O O88 forfor annualannual productionproduction ofof 400t400t (880(880 000000 lb)lb) UU33 O O88 •• ProjectProject nownow withwith finalfinal approvalsapprovals •• ConstructionConstruction ofof inin situsitu leachleach uraniumuranium minemine (est.(est. capitalcapital costcost $53$53 m)m) progressingprogressing withwith aa newnew designdesign usingusing pulsepulse columnscolumns beingbeing finalisedfinalised •• ProductionProduction scheduledscheduled forfor 22ndnd quarterquarter 20082008 September 2007 Mine Expansions September 2007 OlympicOlympic DamDam –– Copper-Gold-Uranium-SilverCopper-Gold-Uranium-Silver Olympic Dam BHPBHP BillitonBilliton •• 77 738738 MtMt atat 0.87%Cu,0.87%Cu, 0.029%0.029% UU33 O O88 , , 0.30.3 g/tg/t AuAu andand 1.611.61 g/tg/t AgAg •• GoldGold onlyonly (non-sulfide)(non-sulfide) resresourceource 117117 MtMt atat 1.19g/t1.19g/t AuAu •• ExpansionExpansion Pre-FeasibilityPre-Feasibility studystudy continuingcontinuing •• FullFull FeasibilityFeasibility studystudy proposedproposed completioncompletion 20082008 •• FullFull productionproduction isis setset downdown forfor 20142014 •• NewNew 4040 MtMt papa OlympicOlympic DamDam willwill havehave anan approximateapproximate annualannual productionproduction of:of: -- 500500 000000 tt CuCu -- 1515 000000 tt UU33 O O88 -- 500500 000000 ozoz AuAu -- 22 091091 000000 ozoz AgAg September 2007 ProjectProject MagnetMagnet