ANGLO AMERICAN
GROUP EXPLORATION
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1
ANGLO AMERICAN A GLOBAL PLAYER
Headquartered in London with 12 corporate and representative offices
Key
Headquarters
Corporate &
representative offices
Iron Ore and Manganese
Metallurgical Coal
Thermal Coal
Copper
Nickel
Platinum
Diamonds
Other Mining and Industrial
2
EXPLORATION FOOTPRINT
3
PROJECT PIPELINE – LEVERAGING EXPLORATION
SUCCESS
Exploration has been an effective value model…
Estimate of Value Creation
(2000-2012 US$m)
• Significant value creation since 2000
– Added Resources from
Ni, 3Mt Zn
discoveries1
7,000
- 30Mt Cu, 4Mt
6,000
4,000
• Discoveries over the past decade highlight industry-
3,000
leading Exploration capability
– Discovery of potential Tier 1 assets (Los Bronces
District)
– Greenfield discoveries in established and emerging
mineral districts (West Wall, Sakatti)
– Leveraging Base Metals experience into new
commodities
2,000
Exploration
Spend
2000
West Wall
Lagunillas
2001
2002
2003
2004
2005
6
4
2.7
2
Los
Sulfatos
2006
Discovery
Value2
Copper Discovery and Acquisition Costs
(US$ c/lb)
5.5
0
San
Enrique
Gamsberg
Monolito
East
Jacaré
Sale of non-core assets
0
discoveries into cash generating assets
El
Soldado
Norte
Bayugo
Sale of copper
assets
1,000
• More work to be done on converting promising
Mantoverde
Sulphide
Boyongan
Value of
retained
assets 1
5,000
0.4
Anglo
American
Gergarub
2007
2008
Notes:
1. JORC compliant Copper and Nickel Resources multiply by the average industry average acquisition costs from MEG (2010).
2. Industry discovery and acquisition costs from MEG (2010)
Sakatti
2009
Industry
discovery
cost2
West Wall
Norte
2010
Industry
acquisition cost2
2011
2012
4
SAKATTI PROJECT- FINLAND
AA’s KEY DRIVERS FOR EXPLORATION IN FINLAND
• High geological prospectivity
• Stable government and transparent regulatory regimes. 2013 Fraser Institute ratings as
follows:
• Number 1 for policy environment for mining and Number 2 in their mineral potential index.
• Fair and stable fiscal / tax systems
• Skilled workforce (world-class mining service providers such as Outotec and Metso)
• Access to infrastructure
• Support by local government and community for responsible mineral development.
6
6
LOCATION OF THE SAKATTI PROJECT, FINLAND
7
SAKATTI DISCOVERY HISTORY
• 2004 - Anglo American commenced fieldwork for Ni-Cu sulphides in Lapland
• Central Lapland Greenstone Belt – Pechenga-Imandra Varzuga Greenstone Belt analogy
• Excellent base geological and geophysical data from the Geological Survey of Finland
• Sakatti highlighted from initial targeting – target number 8
• Discovered using conventional exploration methods - Geochemistry (B.O.T) – coherent CuNi, PGE anomaly, Geophysics (airborne and ground systems)
• 2009 - Discovery DDH (09MOS8013) at Sakatti - first drilled 2006
• >75,000 m drilled to date – OY Kati AB rigs with Closed System
• Considered mature area – new approach confirms Lapland potential
• One of a number of mineralised intrusions discovered by Anglo American team in the region.
8
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GEOLOGY - SAKATTI
• Sakatti is magmatic Cu-Ni-PGE deposit hosted predominantly by a
serpentinised ultramafic olivine cumulate
• Ultramafic body trends roughly east-west and plunges to the west
• It is overlain in the west by a multi-textured breccia and fine-grained mafic unit
• The ultramafic body has a sidewall (and footwall) contact with an aphanitic
•
mafic unit.
Hosting interstitial/disseminated, vein related (at least three generations) and
semi- to massive sulphides
• Evidence of hydrothermal alteration seen in the rock units and mineralisation.
9
MINERALISATION
Massive, semi massive, vein and disseminated style sulphide mineralisation
10
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ESTIMATION OF GRADES
(ESTIMATED ACCORDING TO THE GUIDELINES AS SET OUT IN THE JORC CODE)
• 0.20 %Cu mineralised intersections are calculated in the following manner:
The first and last sample of the mineralised intersection must be ≥0.20 %Cu
An intersection of ≥30m that does not include a sample of ≥0.20 %Cu is excluded as waste
If the overall Cu grade of the intersection is <0.20 %Cu, the intersection is excluded as it is not deemed mineralised
The minimum mineralised intersection length is 5.00m
• 1.00 %Cu significant intersections are calculated in the following manner:
The first and last sample of the significant intersection must be ≥0.20 %Cu
An intersection of ≥15m that does not include a sample of ≥1.00 %Cu is excluded from the 1.00 %Cu significant
intersection
If the overall Cu grade of the intersection is <1.00 %Cu, the intersection is excluded as it is not deemed significant
The minimum significant intersection length is 5.00m
The 1.00 %Cu significant intersections are included within the 0.20 %Cu mineralised intersections.
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SAKATTI DRILLING RESULTS – SURFACE EXPRESSION
SECTION 3489500E
0
200m
SECTION 3489800E
0
12
200m
12
INTERCEPTS – SECTION 3489500E (SOUTH TO NORTH)
09MOS8019: 3489502E 7495497N Dip: -64º AZ 183 EOH: 644.50
from 523.60m: 5.50m @ 0.48 % Cu, 0.16 % Ni, 1.40 g/t Pt, 0.80 g/t Pd, 0.21 g/t Au
10MOS8038: 3489502E 7495651N Dip: -75º AZ: 172º EOH: 745.90m
from 492.50m: 16.50m @ 0.25 % Cu, 0.06 % Ni, 0.60 g/t Pt, 0.09 g/t Pd, 0.18 g/t Au
from 560.00m: 121.95m @ 1.37% Cu, 0.22% Ni, 0.24g/t Pt, 0.16g/t Pd, 0.23g/t Au
incl. 560.00m: 48.10m @ 3.13% Cu, 0.47% Ni, 0.18g/t Pt, 0.12g/t Pd, 0.47g/t Au
11MOS8044: 3489500E 7495750N Dip: -76º AZ: 173º EOH: 849.70m
from 573.50m: 225.70m @ 1.11 % Cu, 0.94 % Ni, 0.37 g/t Pt, 0.42 g/t Pd,0.09 g/t Au
from 593.50m: 5.40m @ 1.49 % Cu, 0.27 % Ni, 0.37 g/t Pt, 0.26 g/t Pd, 0.22 g/t Au
from 636.30m: 17.00m @ 2.13 % Cu, 1.09 % Ni, 0.52 g/t Pt, 0.56 g/t Pd, 0.16 g/t Au
from 671.00m: 128.20m @ 1.55 % Cu, 1.45 % Ni, 0.55 g/t Pt, 0.64 g/t Pd, 0.13 g/t Au
11MOS8046: 3489500E 7495849N Dip: -75º AZ: 170º EOH: 895.90m
from 619.00m: 199.00m @ 0.62% Cu, 0.66% Ni, 0.24g/t Pt, 0.21g/t Pd, 0.04g/t Au
from 637.30m: 5.75m @ 2.09% Cu, 2.50% Ni, 0.89g/t Pt, 1.12g/t Pd, 0.06g/t Au
from 699.00m: 57.00m @ 1.57% Cu, 1.48% Ni, 0.43g/t Pt, 0.44g/t Pd, 0.07g/t Au
13
INTERCEPTS – SECTION 3489500E (SOUTH TO NORTH)
11MOS8049: 3489500E 7495950N Dip: -75º AZ: 175º EOH: 914.00m
from 679.00m: 141.20m @ 0.98% Cu, 1.06% Ni, 0.05% Co, 0.30g/t Pt, 0.32g/t Pd, 0.08g/t Au
from 739.90m: 58.10m @ 1.91% Cu, 2.08% Ni, 0.59g/t Pt, 0.65g/t Pd, 0.15g/t Au
from 813.80m: 6.40m @ 2.30% Cu, 0.87% Ni, 0.46g/t Pt, 0.46g/t Pd, 0.34g/t Au
11MOS8052: 3489500E 7496050N Dip: -78º AZ: 176º EOH: 986.90m
from 613.40m: 228.20m @ 0.60% Cu, 0.45% Ni, 0.24g/t Pt, 0.15g/t Pd, 0.10g/t Au
from 779.30m: 31.70m @ 2.72% Cu, 1.29% Ni, 0.38g/t Pt, 0.34g/t Pd, 0.21g/t Au
from 893.70m: 5.60m @ 0.56% Cu, 0.50% Ni, 0.46g/t Pt, 0.09g/t Pd, 1.10g/t Au
14
INTERCEPTS – SECTION 3489800E (SOUTH TO NORTH)
09MOS8023: no significant intercept
09MOS8011:
3489804E 7495390N Dip: -69º AZ: 182º EOH: 271.30m
from 164.35m: 152.15m @ 0.39% Cu, 0.13% Ni, 0.42g/t Pt, 0.20g/t Pd, 0.12g/t Au
from 263.30m: 9.45m @ 1.01% Cu, 0.16% Ni, 1.68g/t Pt, 0.67g/t Pd, 0.34g/t Au
09MOS8013: 3489808E 7495548N Dip: -60º AZ: 179º EOH: 457.95m
from 257.25m: 168.15m @ 0.93% Cu, 0.23% Ni, 0.42g/t Pt, 0.23g/t Pd, 0.27g/t Au
from 323.25m: 102.15m @ 1.43% Cu, 0.23% Ni, 0.52g/t Pt, 0.26g/t Pd, 0.41g/t Au
10MOS8029: 3489804E 7495651N Dip: -66º AZ: 173º EOH: 658.50m
from 350.00m: 259.65m @ 0.48% Cu, 0.14% Ni, 0.36g/t Pt, 0.21g/t Pd, 0.19g/t Au
from 491.20m: 40.50m @ 1.00% Cu, 0.23% Ni, 0.80g/t Pt, 0.47g/t Pd, 0.30g/t Au
from 559.50m: 35.10m @ 1.03% Cu, 0.15% Ni, 0.61g/t Pt, 0.37g/t Pd, 0.26g/t Au
10MOS8041: 3489806E 7495750N Dip: -71º AZ: 175º EOH: 650.80m
from 498.40m: 152.40m @ 0.34% Cu, 0.05% Ni, 0.23g/t Pt, 0.15g/t Pd, 0.07g/t Au
from 510.70m: 23.30m @ 1.02% Cu, 0.07% Ni, 0.69g/t Pt, 0.50g/t Pd, 0.18g/t Au
1515
PROJECT STATUS
• Better understanding of geological model through selected in-fill drilling
• Preliminary Business Case (using standard Finnish capital and operating costs) being
worked on at present.
• Project to be advanced responsibly and respectfully within the host community
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THANK YOU
ANY QUESTIONS ?