Ceduna

Warramboo Iron Port Augusta

EL 2486
Project
EL 2188 Area
EL 2342
(partELAEL 2846) Iron Monarch (Fe)
34/00
EL 2132
EL 2211
EL 2669
EL 2177 Iron Baron (Fe) Whyalla
EL
2178 Port
100 kilometres
Iron Duke (Fe) Pirie

Major roads Elliston

Railways EL 2305

Tenement

Spencer
Gulf
NT

AUSTRALIA Gulf
QLD Port Lincoln St
WA SA Distance from Warramboo to: Vincent
NSW Port Lincoln 175 km
Whyalla 185 km ADELAIDE
See enlargement VIC
Elliston 80 km
TAS Ceduna 200 km

PROJECT LOCATION Warramboo Iron Project

 INFRASTRUCTURE

• 1.07
1.07 m
m gauge
gauge railway
railway for
for 175
175 km
km to
to Port
Port Lincoln
Lincoln
-- periodic
periodic use
use for
for grain
grain haulage
haulage

• Deepwater
Deepwater port
port at
at Port
Port Lincoln
Lincoln
-- suitable
suitable for
for Panamax
Panamax at
at least
least (100,000
(100,000 tonnes)
tonnes)

• 132
132 KV
KV power
power line
line crossing
crossing deposit
deposit

• 0.84
0.84 m
m water
water pipeline
pipeline crossing
crossing deposit
deposit
-- unlikely
unlikely to
to satisfy
satisfy mine
mine requirements
requirements

• Nearby
Nearby rural
rural townships
townships suitable
suitable for
for housing
housing work
work
force
force

Warramboo Iron Project

 No
No Native
Native Title
Title
Eyre Highway
Kyancutta
or
or significant
significant sites
sites

Warramboo

Kopi
Tod
Hig
hwa
y

10 kilometres

Lock

LAND TITLE Warramboo Iron Project

 2 kilometres

DOLPHIN

Warramboo
MURPHY

5000nT
4000nT
3000nT

TOPOGRAPHY Warramboo Iron Project

 Warramboo
Cluster

Warramboo

Kopi
Cluster

Kopi

ay hw
Tod Hig

-1475 -1000 0 2000 4000 6000 Hambidge

nT (nanno Teslas) Cluster
Highway
Railway
5 kilometres
Note: Data from a WMC 1994 Survey (Woffenden, 1995)

AEROMAGNETIC CONTOURS Warramboo Iron Project

AEROMAGNETIC CONTOURS
 PROJECT HISTORY
1953-55 Regional
Regional aeromagnetic
aeromagnetic survey
survey (BMR)
(BMR) detects
detects anomaly
anomaly

1960 More
More detailed
detailed aeromagnetics
aeromagnetics (SADM)
(SADM) refines
refines anomaly
anomaly

1961 Integrated
Integrated exploration
exploration program
program by
by SADM
SADM over
over
16
16 Km
Km strike
strike
• Ground
Ground magnetics
magnetics
• Gravity
Gravity survey
survey
• Shallow
Shallow auger
auger and
and percussion
percussion drilling
drilling
• 31
31 rotary
rotary drill
drill holes
holes
• 44 diamond
diamond core
core holes
holes (3
(3 in
in magnetic
magnetic zones)
zones)

Drilling
Drilling largely
largely confined
confined to
to the
the southern
southern zone
zone of
of the
the
Central
Central section
section

Warramboo Iron Project

 PROJECT HISTORY

1983 CRA
CRA Exploration
Exploration - RC drilling
drilling to
to base
base of
of weathering
weathering --
base
base metal
metal search
search

1995 Western
Western Mining
Mining Corporation
Corporation -- aeromagnetics
aeromagnetics localised
localised
RC
RC drilling
drilling for
for base
base metals
metals

1996 Adelaide
Adelaide Resources
Resources acquires
acquires exploration
exploration licence
licence

2000 Adelaide
Adelaide Resources
Resources -- ground
ground magnetics
magnetics & & gravity.
gravity.
66 RC
RC holes
holes for
for 945
945 m.
m. Metallurgical
Metallurgical testwork
testwork

2002 Ultra-detailed
Ultra-detailed aeromagnetic
aeromagnetic survey
survey (Portman
(Portman Limited)
Limited)

Only
Only nine
nine drillholes
drillholes effectively
effectively provide
provide intersections
intersections
in
in fresh
fresh magnetite
magnetite bearing
bearing rocks
rocks

Warramboo Iron Project

 MAGNETIC PLAN

ADRES DRILLING

SADM DRILLING

2 kilometres

Warramboo Iron Project

 RCWMB-4 RCWMB-1 RCWMB-5 RCWMB-6
70m

50m

41m@24.2%Fe
26.7wt% rec 20m@14.0%Fe
19.3% Fe3O4

8m@22.4%Fe
22m@17.7%Fe
0m 30.9% Fe3O4
24.4% Fe3O4

19m@18.1%Fe
25% Fe3O4
53m@21.6%Fe
25.8wt% rec Significant intercept
showing ore grade
-50m

Cover sediments

Weathered gneiss
25m@17.4%Fe Weathered magnetite gneiss
(magnetite destroyed)
24% Fe3O4
50 metres
Magnetite gneiss
-100m Gneiss

MURPHY SECTION Warramboo Iron Project

 Coarse
Coarse grain
grain size
size
Approx 2mm

Magnetite exhibiting microfracture network and minor quartz inclusions.

WMB-001, 70-72m.

POLISHED SECTION Warramboo Iron Project

 METALLURGICAL TESTWORK
• 18
18 composite
composite samples
samples from
from RC
RC holes
holes drilled
drilled 2000
2000
-- magnetite
magnetite is
is coarse
coarse grained
grained

• Magnetite
Magnetite concentrates
concentrates separated
separated by
by Davis
Davis Tube
Tube after
after
grinding
grinding to
to 85%
85% << 45
45 microns.
microns.
Two
Two laboratories
laboratories for
for duplication
duplication and
and comparison
comparison

• XRF
XRF analysis
analysis of
of concentrates
concentrates for
for iron
iron and
and other
other relevant
relevant
elements
elements

• Average
Average 24.9%
24.9% recovery
recovery of
of magnetite
magnetite with
with grade
grade of
of 70.4%Fe,
70.4%Fe,
i.e.
i.e. high
high grade
grade

• Analysis
Analysis of
of magnetite
magnetite shows
shows concentrations
concentrations of
of potentially
potentially
deleterious
deleterious elements
elements are
are at
at very
very acceptable
acceptable levels
levels

• See
See average
average analysis
analysis

Excellent results
Warramboo Iron Project
 Warramboo magnetite held between the
poles of Davis Tube magnetic separator.

Amdel technician using Davis Tube

magnetic separator.

DAVIS TUBE SEPARATION Warramboo Iron Project

AVERAGE ANALYSIS OF MAGNETITE
Fe
Fe 70.4%
70.4%
Si0
Si022 0.75%
0.75%
Al
Al220033 0.77%
0.77%
CaO
CaO 0.02%
0.02%
MgO
MgO 0.18%
0.18%
Na
Na22O
O 0.01%
0.01%
K
K22O
O 0.02%
0.02%
TiO
TiO22 0.09%
0.09%
Mn
Mn 0.64%
0.64%
P
P 0.
0. 007%
007%
S
S 0.002%
0.002%

Warramboo Iron Project

 IRON CONTENT

Warramboo
Warramboo magnetite
magnetite concentrate
concentrate and
and potential
potential pellet
pellet analysis
analysis
compared
compared with
with published
published specifications
specifications

Warramboo Potential
Midrex DR Iron BF pellet
average Warramboo
specification specification
concentrate pellet

Fe 70.4% 67.4% 67.0% min. 64.5% to 66%

IRON ANALYSIS Warramboo Iron Project

 Comparison
Comparison of
of potential
potential Warramboo
Warramboo product
product chemistry
chemistry with
with
some
some actual
actual pellet
pellet analyses
analyses

Warramboo Potential CVRD LKAB SRM

Specie Magnetite Warramboo DRI DRI BF
Concentrate pellet pellet pellet pellet

Total Fe 70.4% 67.4% 67.80% 67.7% 66.1%

SiO 2 0.75% 0.72% 1.20% 0.85% 2.10%

Al 2O3 0.77% 0.74% 0.50% 0.20% 0.42%

SiO2 and Al2O3 1.52% 1.46% 1.70% 1.05% 2.52%

CaO 0.02% 0.53% 0.70% 1.0% 0.17%

MgO 0.18% 0.17% 0.30% 0.75% 1.60%

S 0.002% 0.001% 0.002% 0.002% 0.004%

P 0.007% 0.007% 0.025% 0.025% 0.014%

COMPARISON Warramboo Iron Project

 ACHIEVEMENTS
• Work
Work in
in 2000
2000 was
was aimed
aimed at
at demonstrating
demonstrating the
the presence
presence of
of
potentially
potentially economic
economic iron
iron grades
grades and
and ability
ability to
to produce
produce aa
high
high quality
quality magnetite
magnetite concentrate
concentrate

• Particular
Particular emphasis
emphasis was
was on
on producing
producing concentrates
concentrates which
which
meet
meet demanding
demanding direct
direct reduced
reduced iron
iron (DRI)
(DRI) feedstock
feedstock chemical
chemical
specifications
specifications

• These
These objectives
objectives were
were achieved
achieved with
with excellent
excellent metallurgical
metallurgical
results
results

• Requirement
Requirement now
now is
is to
to complete
complete sufficient
sufficient drilling
drilling to
to confirm
confirm
there
there is
is potential
potential to
to prove
prove up
up aa resource
resource of
of >100
>100 Mt
Mt at
at
30%
30% magnetite
magnetite grade
grade

Warramboo Iron Project

PROJECT SCOPE/OREBODY MODELLING
• 22 mpta
mpta of
of high
high grade
grade magnetite
magnetite concentrate
concentrate for
for
export.
export. i.e.
i.e. railway
railway capacity
capacity

• Grade:
Grade: 30%
30% recoverable
recoverable magnetite
magnetite required
required

• Milling
Milling rate:
rate: 88 mpta
mpta

• Resource
Resource required:
required: >> 100
100 Mt
Mt

• Mine
Mine life:
life: min.
min. 12
12 years
years

Drilling
Drilling required
required to
to locate
locate consistent
consistent grades
grades of
of 30%
30% or
or more
more
magnetite
magnetite over
over about
about 80
80 metres
metres width
width and
and over
over 44 km
km strike.
strike.
i.e.
i.e. inferred
inferred resource
resource
<< 40
40 m
m cover
cover depth
depth is
is desirable
desirable

Warramboo Iron Project

 CONCLUSIONS TO DATE
• Extensive
Extensive strike
strike • Good
Good location
location and
and
length
length infrastructure
infrastructure
• Substantial
Substantial tonneage
tonneage • Local
Local workforce
workforce
potential
potential
• Nearby
Nearby deepwater
deepwater
• Coarse
Coarse grain
grain size
size port
port
• Excellent
Excellent product
product • No
No native
native title
title or
or
chemistry
chemistry environmental
environmental
impediments
impediments
• 100%
100% owned
owned
• Worthy
Worthy iron
iron ore
ore
• Supportive
Supportive exploration
exploration project
project
Government
Government

Further drilling is required to establish inferred

resource quality

Warramboo Iron Project