TERRAMIN TALA HAMZA DFS PRESENTATION - Investor Presentation Richard Taylor | CEO - Terramin Australia ...
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TERRAMIN TALA HAMZA DFS PRESENTATION Investor Presentation Richard Taylor | CEO August 2018
Forward Looking & Competent Person Statements
Disclaimer
The material contained in this presentation has been prepared by Terramin Australia Limited (Terramin). It is current as at the date of this presentation.
It contains information in a summary form and should be read in conjunction with Terramin’s other periodic and continuous disclosure announcements to
the Australian Securities Exchange (ASX) available at www.asx.com.au. An investment in Terramin shares is subject to known and unknown risks, many of
which are beyond the control of Terramin. In considering an investment in Terramin shares, investors should have regard to (amongst other things) the risks
outlined in this presentation and in other announcements and disclosures made by Terramin to the ASX. This presentation contains statements, opinions,
forecasts and other material based on various assumptions which may or may not be correct.
The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient
and is not financial advice or financial product advice.
To the extent permitted by law, Terramin, its directors, officers, employees, agents, advisers and persons named in its presentation:
• give no warranty or guarantee as to the accuracy or likelihood of fulfilment, any assumptions upon which any part of this presentation is based
or the accuracy, completeness or reliability of the information contained in this presentation;
• accept no responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this
presentation.
Competent Person Statement
The information in this presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Eric Whittaker, a
Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Whittaker is an employee and Principal Resource
Geologist of Terramin Australia Limited. Mr Whittaker has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’. Mr Whittaker consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.
The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr Luke Neesham, a Competent Person who is
a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Neesham is Principal Mining Engineer for GO Mining Pty Ltd a consulting
firm engaged by Terramin Australia Limited to prepare mining designs and schedules for the Tala Hamza Feasibility Study. Mr Neesham has sufficient
experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Mr Neesham consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Aspects of the information used as inputs to or generated as part of the Feasibility Study associated with the Mineral Resources and Ore Reserves Estimates
rely upon information prepared by parties other than the Competent Persons and outside of their areas of expertise. The associated documentation has
been reviewed and utilised by the Competent Persons in compiling the Mineral Resources and Ore Reserves Estimate and Table 1 commentary.
2
Corporate Update
Corporate Snapshot - 31 July 2018 Board and Management
Share on issue 1,869,601,371 Feng Sheng Executive Chairman
Market Cap $206M @ $0.11/share Michael Kennedy Non-Executive Vice-Chairman
Liquidity 12 Month - 120,735 shares (0.01%) Angelo Siciliano Non-Executive Director
Enterprise Value $220M Kevin McGuinness Non-Executive Director
Wang Xinyu Executive Director
Richard Taylor CEO
Simon Iacopetta CFO / Company Secretary
5 Year Share Price Snapshot Largest Shareholders - 31 July 2018
Asipac Group Pty Ltd
Citicorp Nominees Pty Ltd
Tronic Enterprise
26.5% 33.2%
Development Ltd
HSBC Custody Nominees
(Australia) Ltd
3.6% JP Morgan Nominees Aust Ltd
3.8% China Non-Ferrous Metal
Industry's Foreign Engineering
8.1% 14.2% & Construction Co Ltd
10.6% Other
3
Tala Hamza Highlights
High grade • Tala Hamza is a high grade zinc and lead operation
& large
scale • Concentrate production will be significant in global terms
• Tala Hamza has a projected mine life of 21 years
Long life
• Deposit is open to the south and east with near mine exploration potential
Terramin • Terramin owns 65% of the WMZ joint-venture
65% &
control • Strong joint venture partners in state-owned ENOF and ORGM
Robust • Compelling economics from initial project
economics • Optimisation potential from already identified expansion cases
Strategic • Located in the heart of the Mediterranean
advantage • Close to major infrastructure, including ports, roads and rail
4
Board & Management
Board & Executives
Mr Feng Sheng Mr Kevin McGuinness
Executive Chairman – Appointed 17 April 2013 Non-Executive Director – Appointed 17 April 2013
Mr. Sheng is the Chairman of Melbourne based Asipac Mr McGuinness is a finance executive with more than 20 years
Group. Mr. Sheng has been involved in the investment of experience as a director and in executive management with
sector for more than 15 years, mainly in the areas of ASX listed and private companies in the mining, medical equipment
property and resources. Mr. Sheng is the Vice Chairman industries and not-for-profit organisations. Mr McGuinness was
of the Australia China Business Council (Victoria previously the Chief Financial Officer of Exact Mining Services.
Mr Michael H Kennedy BComm (Economics) Mr Angelo Siciliano FIPA, Registered Tax Agent, BBus
Non-Executive Deputy Chairman Non-Executive Director – Appointed 2 January 2013
– Appointed 15 June 2005
Mr Siciliano has more than 20 years’ experience as an accountant in
Mr Kennedy has enjoyed a 40 year career in the non- the property sector and financial accounting. Mr Siciliano is the
ferrous mining and smelting industry, and has held a Chief Financial Accountant of Asipac Group and for the last 20 years
number of senior marketing and logistics roles with the has owned and managed an accounting practice predominantly
CRA/RTZ Group, managing raw material sales. focussing on taxation and business consulting. Mr Siciliano is a
Fellow of the Institute of Public Accountants.
Mr Wang Xinyu
Executive Director – Appointed 2 March 2017 Richard Taylor
Chief Executive Officer
Mr Wang is a vice president of NFC and is currently a
director of Industrial Construction Corporation LLC Richard is a mining executive with more than 15 years’ experience
(Mongolia), China Nerin Engineering Co. Ltd and NFC India in senior international and resource sector roles. He was most
Pvt. Ltd. Mr Wang has project management experience in recently Managing Director of PanAust Ltd’s Asia business
a number of smelting and mining operations in the Middle subsidiary, Phu Bia Mining Limited.
East and Central Asia.
Simon lacopetta
Chief Financial Officer/Company Secretary
Simon is a mining executive with broad experience in corporate
finance and financial management functions in the resources and
professional services sectors. He was most recently Chief Financial
Officer of ASX listed gold miner Ramelius Resources Limited.
5
Vision & Values
Terramin will become a globally diversified top 5 base metals company through its first-mover
advantage in Algeria and strengths in stakeholder engagement and environmental stewardship
Acting in a manner that is compliant Working with others, being a
with regulatory, safety and member of a high performing team
environmental standards
Behaving with honesty
and acting with integrity
Seeking new and innovative Building shareholder
opportunities to develop Ambition confidence
and grow Terramin Trust
Vision Shaping perception
Listening to others
Treating fellow employees
with respect
Shared success A solutions orientated approach
and accountability for results
6
Terramin Sustainability
A core value of Terramin is safety and sustainability, particularly acting in a manner that both
complies and exceeds regulatory, safety and environmental standards.
Sustainability Program
• Mining baseline studies covering
- water sources (ground and surface water)
- soil and land quality
- air quality (noise and dust)
- ecosystems
- local community and demographics
• Developing design and management measures to
minimise impacts for all projects
• Ensuring environmental management systems
comply with all regulations and commitments
• Developing approvals for key projects
• Continual monitoring and review of environmental
data and reporting to government agencies and
the public
Baseline surveys and monitoring at Tala Hamza
7
Stakeholder Engagement
Terramin actively engages with communities in Algeria through formal government processes as well
as employing predominantly from the local area and conducting hundreds of informal interactions
Terramin Approach
• All Projects have a Community Engagement Plan
• CEP clearly identifies key stakeholders within the
community
• Outlines the framework for how Terramin engages
with the stakeholders during all stages of
Farming communities in the local area of Tala Hamza and Oued Amizour
development, operation and ultimately closure
• Enhances and encourages positive relations
between all parties
• Clearly disseminates information about the
company’s plans, projects, activities and potential
impacts, both adverse and positive
• Details how this information flow will be achieved
• Manages the identification and response to issues Community Participation in Tala Hamza Bejaia and local port surrounds
raised by stakeholders. Biodiversity Monitoring
8
Tala Hamza Overview Tala Hamza is one of the largest undeveloped zinc & lead mines in the world and an important part of future supply geared towards meeting projected increases in global zinc demand next decade Overview • World class resource containing 3.5 million tonnes of zinc and lead • Global resource1 of 53.0 million tonnes at 6.6% zinc plus lead. • Joint venture with Algerian government owned entity (65% Terramin). • Infrastructure available including deep water port and international airport. • Low operating cost due to availability of low cost power and fuel. • Young educated workforce available. 1. As per Tala Hamza DFS 2018 9
Infrastructure
The Tala Hamza Deposit is located close to the Mediterranean coast, within close proximity to major
roads, rail, air, energy & port facilities. The mine site is close to the township of Bejaia and will be
served by a drive in drive out workforce underpinned by Terramin’s local recruitment policy.
10Why Zinc? Why Now?
Globally zinc and other base metals are entering a period of supply side restrictions as old mines
close, head grades fall and new mines face permitting and approval delays leading to high prices
LME Zinc Prices Sources of Future Mine Production
Nominal Real
1960 - 69 12 93 kt Zn Probable (bankable feasibility) Projects
300 1970 - 79 29 141
Probable (financing) Projects
1980 - 89 43 101
1990 - 99 51 87 Possible Mine Life Extensions
250 2000 - 09 73 92
22000 Base Case Production Capability
Real $ 2010 - 19 112 118
2020 - 40 151 124 Requirement for Zinc Mine Production
200
US Cents per lb
17000
150
12000
100
7000
50
Nominal $
0 2000
1960 1970 1980 1990 2000 2010 2020 2030 1990 1995 2000 2005 2010 2015 2020 2025 2030
Source: Wood Mackenzie 11Growth in Galvanising
Galvanising and construction are the dominant first- and end-uses of zinc. Urbanisation and
industrialisation will remain the most significant force behind global zinc consumption. The
developing world will drive consumption and, as a result, galvanising will remain the main end use.
First-use End-use
2%
Galvanizing Construction
Die-casting alloys 6% Transport
5%
Brass semis & casting 7% Infrastructure
9%
Oxides & chemicals Industrial machinery
Semi-manufactured Consumer products
11% products 16%
Misc
50%
59%
13%
21%
Source: Wood Mackenzie 12Tala Hamza – DFS Scope Changes
Tala Hamza is one of the largest undeveloped zinc & lead mines in the world and an important part
of future supply geared towards meeting projected increases in global zinc demand next decade
Evolution of the Project Comparison
PFS DFS DFS
2010 1 2010 1 2018 2
• DFS 2010 saw Terramin examine large scale Production Conc. Kt - LOM ave 425 155
bulk tonnage block cave mining method Pre-Production Capex (US$M) $285 $579 $341
• Block caving was unacceptable to Terramin’s Total Tonnes Mined Mt 25 40 26
Algerian partners ENOF and ORGM Zinc & Lead Metal in Conc. Mt 1.41 2.04 1.8
Tonnes Treated Mtpa 2.0 4.0 1.4
• Underhand Drift and Fill (UDF) allows for
more selective mining and does not sterilise Unit Ops Cost US$/t $25.3 $19.6 $63.5
any areas of the deposit allowing for later C1 Cash Cost US cents/lb payable zinc 41.5c 32.2c 52.7c
mining of lower grades 1 As per DFS Roadshow Presentation released to ASX 12 October 2010
2 DFS 2018 financial numbers are in real terms
• Reduction in surface infrastructure and
location of all assets in one valley
substantially reduced pre-production capex
• Trade-off with higher operating costs
• Opportunities remain to be explored to
increase mining efficiencies during front end
design and optimisation processes
13Tala Hamza – DFS Capital Costs
Capital Costs
Project CAPEX 2 DFS 1 US$M DFS 1 AU$M
2018 2018
• Mining and processing infrastructure
have been centralised in a single valley Direct Capital
Mining 96.9 127.5
• Mining decline optimised to reduce
Processing Plant & Surface Infrastructure 186.3 245.1
initial decline concepts
Total Direct Capital 283.2 372.6
• Tailings dam removed and replaced Total Indirect Capital 58.22 76.7
by Cement Paste Backfill (CPB) and
Total Pre-Production Capital (Direct & Indirect) 341.4 449.2
Cake Storage Facility (CSF)
Total Sustaining Capital 144.4 190.0
• Processing plant utilises gravity feed to Total Life of Mine Capital 485.8 639.2
reduce opex costs 1 AUD: USD FX 0.76
2 DFS 2018 financial numbers are in real terms
• Port and transport facilities minimised
with ‘rotatable container’ - ‘rotainer’ model
• Project footprint minimised to reduce
land access costs
14Tala Hamza – Key Financials
2018 DFS 4 Base Case3 High Case
Key Financial Metrics Nominal Nominal
Commodity Price Metrics
Zinc price - LOM average US$1.25/lb US$1.50/lb
Lead price - LOM average US$1.05/lb US$1.11/lb
Cost Metrics
C1 Operating Costs - LOM average US$0.53/lb US$0.55/lb
All-in Sustaining Costs (AISC) - LOM average US$0.61/lb US$0.64/lb
Financial Metrics
Discount rate 8.0% 8.0%
US$341M US$341M
Start-up-capital cost
(A$449M) (A$449M)
US$144M US$144M
Sustaining capital cost
(A$190M) (A$190M)
US$303M US$553M
NPV8 Post-tax nominal 1 2
(A$399M) (A$728M)
IRR Post-tax nominal (%) 1 14% 19%
US$1.5B US$2.1B
Free cash flow - Post tax nominal 1
(A$2.0B) (A$2.8B)
Payback Period 9 years 7 years
1 NPV and IRR assume a 2 year pre-production capital work program
2 NPV is pre-financing
3 Long term Base Case commodity pricing assumptions are derived from Woods Mackenzie forecasts at Jun-18. Exchange rate assumption is AUD/USD FX 0.76
4 DFS 2018 financial numbers are in real terms unless otherwise noted
15Terramin Strategy – Zinc Peers
Tala Hamza is competitive with peer projects at the pre-production stage and the project
presents attractive exposure to zinc and lead production over the next two decades
Contained Metal Tonnes v Market Cap
4.5
Simon to update with 700
4.0
3.5
Zinc peers 600
Metal Tonnes Millions
500
3.0
A$ Millions
2.5 400
2.0 300
1.5
200
1.0
100
0.5
- -
Ironbark Terramin New Century Terramin Heron Red River Zinc of Ireland Consolidated Metals Australia
(Citronen (Tala Hamza (Century (Tala Hamza (Woodlawn (Thalanga (Kildare Zinc (Manindi
Resource) Resource) Tailings Reserve) Resource) Resource) Resource) (Plomosas Resource)
Reserve) Resource)
Insitu Metal 100% Tala Hamza Market Cap 65% Tala Hamza
Resources, Reserves and grade data sourced from latest company announcements
Market capitalisation as at 30 June 2018
16Expansion Case 1: Increase Mining Rate
The Tala Hamza Deposit remains open in
multiple areas. Land access achieved through 704150E
the grant of the Mining Lease opens up the
opportunity for a second access, maintain
mine life and support expansion Drill Pb+Zn%
of the processing plant.
Unfinished business
• Tala Hamza mineralisation is open to the east
• Historic eastern most holes only intersected
the upper lode
• WMZ drillhole TH039, eastern most hole to
intercept the deeper lode
• TH039 intercepted from 381m, 106.4m @ 5.6% PbZn OA095
OA083 OA076
• includes 413m, 5m @ 14.48% PbZn
• and from 436m 12.1m @ 11.48% PbZn TH039
17Expansion Case 2: Near Mine Deposits
The Tala Hamza District is heavily mineralised. There are a number of nearby under explored zinc targets that
provide the potential for conveying or haulage to a centralised processing hub at the Tala Hamza Deposit.
18Mining & Waste Management
Algerian environmental and social concerns ruled out block caving and sub-level caving. The revised
DFS looked at alternate methodologies to cater for poor rock quality and water management
Mining Method
• Tala Hamza deposit is deep (greater than
500 metres)
• Early works focus on decline development
and accessing early ore mineralisation
• Mining method recommended by NFC and
ENFI adapted from nickel and coal
operations in China and Australia
• Mining method limits production output and
requires multiple faces to be in operation at
any time
• Opportunities to optimise once permitting
completed and land access is available
0 Metres 100
19Mining Method: Underhand Drift & Fill (UDF)
UDF was selected as an alternative to block caving and is required to deal with the poor quality
of rock within the mine area. Tailings are blended with concreting agents to fill and stabilise voids
• Underhand drift and fill (UDF) mining is a technique • Conventional cut and fill or overhand cut and fill, is a
similar to the cut and fill mining method often used bottom up mining method where the first level is
in narrow vein deposits. extracted and filled and then the consecutive level is
mined by working on top of the fill to progress
• UDF permits mining in low strength or highly
mining.
stressed rock types and improves control in difficult
ground conditions. • Underhand mining is where a cemented fill is used
in combination with steel reinforcing, allowing
• The main difference to narrow-vein is that instead of
mining to occur beneath the fill.
cuts along the vein, a lattice of drifts, also referred to
as stopes or cells are mined alongside each other
across a massive ore body
20Process Plant Layout & Design
The DFS 2018 maintains the same standard process plant design concept as DFS2010 with the
exception of the introduction of dry stack tailings storage and use of cement paste backfill
21Process Plant Layout & Design
Tala Hamza processing will utilise conventional flotation technology. Process plant infrastructure
has been consolidated entirely within Valley B and provides scalability options going forward
ROM Crusher & stockpile
The process plant design has a
small footprint ad maximises the
local land form to achieve
SAG & Ball Mill
efficiency within the process
Lead & zinc flotation
Reagents
Tailings thickening
Concentrate filtration & storage
22Transportation & Logistics
Trucking containerised concentrate to the Port of Bejaia has been chosen as the most efficient
method. Rotatable containers avoids additional capex at the Port of Bejaia.
Rotatable containers stacked
Container in process of ship loading Port of Bejaia
at port awaiting ship loading
23Project Benefits
• Low pre-production capital cost
Low Capex • Starter project for broader regional development potential
• Infrastructure contained within one valley
• Competitive cost structure for new projects
Cost 2nd
• Low labour costs and educated workforce
Quartile
• Access to reliable and cost effective port and energy sources
• Spare capacity and potential to increase throughput
Simple
• No tailings dam required
Processing
• Standard flotation technology
• National highway to deep water port
1st Class • Grid electricity
Infrastructure
• Proximity to Bejaia requires no camp facilities
24Tala Hamza – Forward Looking Plan
New management team has been appointed with a clear pipeline of activities to deliver
on Terramin’s base and precious metals strategies. Current status:
01 Formal submission of the DFS to the Government of Algeria
02 Wilaya (local administration approvals)
03 Land access and acquisition of sites designated to host infrastructure
04 Optimisation and FEED (Front End Engineering and Design) works
05 Early works road access and administration establishment
06 Establishment of owner’s team and EPCM
25Tala Hamza – Indicative Time Frames
Timeframes are for indicative purposes only. The project has been delayed while working with the
Algerian authorities to address environmental and social aspects. Timeframes may extend.
2018 2019 2020 2021
01 Approvals & Permitting
02 Early Works and FEED
WE ARE
03 EPCM
HERE
04 Construction
26Terramin Demerger of Gold Assets
Terramin has announced a strategic review looking at the demerger of its precious and base metals
business. The focus of today’s presentation is the South Australian gold assets:
27Bird-in-Hand – Exploration Upside
Bird in Hand Gold Project has significant exploration upside – deposit open at depth and historic
mines highlight the potential along strike. Current Bird in Hand Resource stands at 252,000 ounces.
Planned
Infill drilling
Planned Extension
drilling
28Grade 1 (g/t)
0
2
4
6
8
10
12
14
16
18
Fosterville
1.
Gwalia
Bird in Hand
Nicolsons
Waihi
Penny's Find
Agnew Lawlers
Tanami
Hera
Cracow
Mt Carlton
Jundee
Granny Smith
Mount Monger
Deflector
Kalgoorlie Ops
Darlot
Challenger
Sunrise Dam
St Ives
Carosue Dam
Tomingley
Mungari
Bird-in-Hand – High Grade Potential
Mt magnet Ops
Central Murchison
Kalgoorlie
South Kalgoorlie
Tropicana
Fortnum
Thunderbox
Nullagine
Aurum Analytics March Quarter 2018 - Final Report. Bird in Hand Resource grade, remaining reflects quarterly production grade. Higginsville
Matilda-Wiluna
Mt Rawdon
Duketon South
Ravenswood
Edna May
Cowal
Cadia
Macraes
Duketon North
will focus on similar high-grade opportunities identified from historical 19th Century workings
Telfer
The Bird-in-Hand mine will be one of the highest grade mines in Australia. Regional exploration
Boddington
Ernest Henry
29Terramin Exploration Pipeline – Pathway 1m Oz
Terramin has a pipeline of high grade potential gold targets that will form the basis of its
aspirational target of 1m Oz in resource from existing tenements and potential acquisitions.
Bird in 252k Oz Resource
Hand
BIH The
Deeps Ridge
500k Oz Planned Resource Drilling
Black The Bird
-bird Brind Est
Lady Angas 750k Oz Advanced Exploration
MP 1 Pipeline
Jane North
Wild The 1m Oz Targeting
Cam 2 Kap 2 Kap 3 Pfeiffer
Horse Slopes
30Reasons to Invest in Terramin
Terramin is in the right place at the right time and with the right projects and people
to capitalise on a strong price environment for its key commodities
Right Commodity Right Assets Right People
• Zinc & lead historic • Algeria an emerging • Significant base & precious
high levels mining jurisdiction metals experience
• Gold in AUD at record prices • First mover advantage • Long association with the
• Strong long term • Multiple near mine targets projects
fundamentals • High grade gold targets • Strong shareholder support
• Low opex
31Contact Details
For further information please contact:
Richard Taylor Main Office
Chief Executive Officer Unit 7, 202-208 Glen Osmond Road,
Fullarton, Adelaide
Simon Iacopetta South Australia, 5063
Chief Financial Officer T +61 (0) 8 8213 1415
F +61 (0) 8 8213 1416
info@terramin.com.au
terramin.com.au
32Annex: Tala Hamza Resources & Reserves
Tala Hamza Resource
Measured + Indicated Resource Inferred Resource Total Resource
2009 Resource Terramin
Tala Hamza Interest (%) Tonnes Zn Pb Tonnes Zn Pb Tonnes Zn Pb
(Mt) (%) (%) (Mt) (%) (%) (Mt) (%) (%)
Tala Hamza - 51.1 4.87 1.27 17.5 3.7 0.6 68.6 4.6 1.1
Total - 51.1 4.87 1.27 17.5 3.7 0.6 68.6 4.6 1.1
Terramin Share 65% 33.2 4.87 1.27 11.4 3.7 0.6 44.6 4.6 1.1
1 November 2009 Tala Hamza Resource was prepared and reported in accordance with the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves,
December 2004 (JORC Code 2004).
2 Resource Estimate assumed the bulk mining method of block caving.
3 Resource classification; Measured - drill spacing < 50 m, Indicated - drill spacing 50 to 75 m, Inferred – drill spacing +75m.
4 Estimated at a nominal 2.5% ZnEq cut-off for the Measured and Indicated Resources with internal waste included (~approximately 8Mt @ 1.9% Zn + Pb).
5 Zinc Equivalence formula %ZnEq = %Zn + 0.59 x %Pb.
6 Inferred Resource is at a 2.5% zinc equivalent cut-off within the 1% lead + zinc outline.
7 The 2009 Resource was inclusive of Reserves
Indicated Resource Inferred Resource Total Resource
2018 Resource Terramin
Tala Hamza Interest (%) Tonnes Zn Pb Tonnes Zn Pb Tonnes Zn Pb
(Mt) (%) (%) (Mt) (%) (%) (Mt) (%) (%)
Tala Hamza - 44.2 5.54 1.44 8.9 4.0 0.7 53.0 5.3 1.3
Total - 44.2 5.54 1.44 8.9 4.0 0.7 53.0 5.3 1.3
Terramin Share 65% 28.7 5.54 1.44 5.8 4.0 0.7 34.5 5.3 1.3
1 January 2018 Tala Hamza Resource Estimate prepared and reported in accordance with the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves, December 2012 (JORC Code 2012).
2 Resource Estimate assumes the selective mining method of Underhand Drift and Fill.
3 Resource classification; Indicated - drill spacingAnnex: Tala Hamza Resources & Reserves
Tala Hamza Resource
Probable Reserve Total Reserve
2010 Reserve Terramin
Tala Hamza Interest (%) Tonnes Zn Pb Tonnes Zn Pb
(Mt) (%) (%) (Mt) (%) (%)
Tala Hamza - 38.10 4.78 1.36 38.10 4.78 1.36
Total - 38.10 4.78 1.36 38.10 4.78 1.36
Terramin Share 65% 24.80 4.78 1.36 24.80 4.78 1.36
1 2010 Ore Reserves reported under JORC-2004
2 Reserves estimated based on Block Caving Mining Method
3 Total extraction included 46.8Mt, less 6.9Mt waste material separated and 1.8Mt Inferred or unclassified material
4 Cut-off grade was 2.5% ZnEq
Proved Reserves Probable Reserves Total Reserves
2018 Reserve Terramin
Tala Hamza Interest (%) Tonnes Zn Pb Tonnes Zn Pb Tonnes Zn Pb
(Mt) (%) (%) (Mt) (%) (%) (Mt) (%) (%)
Tala Hamza - - - - 25.9 6.3 1.8 25.9 6.3 1.8
Total - - - - 25.9 6.3 1.8 25.9 6.3 1.8
Terramin Share 65% - - - 16.8 6.3 1.8 16.8 6.3 1.8
1 2018 Ore Reserves Estimate is reported in accordance with JORC-2012
2 Designs and schedules use the Underhand Drift and Fill method
3 Project cut-off grade is 4.5% Pb+Zn (approx. 4.4% ZnEq)
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