AUSTRALI A’S NEXT GREAT COPPER PROJECT
HILLSIDE: SOUTH AUSTRALIA
Hillside Community Voice – Project Update, 1 September 2015
Richard Laufmann, CEO
Hillside Overview
Copper-gold operation
•
Open Pit
•
Shallow orebody
•
Copper flotation processing plant
•
Quality Cu-Au (copper & gold) concentrate
•
27% copper concentrate with no arsenic
Advantages
•
Low CapEx start-up
•
Low capital intensity (~US$9,650/annual copper
equivalent payable tonne of production)
•
Competitive cash costs (US$1.61/lb Cu) net of by
product
Average Output (first 12 years)
•
Payable copper (Cu) 35,000+tpa
•
Payable gold (Au) ~25,000+ozpa
1
Updated Hillside Ore Reserve
Resource  Reserve Conversion
•
2Mt contained copper classified as a Mineral Resource
•
Approximately 25% has converted into Proved and Probable
Reserves
Hillside Ore Reserve Summary – May 2015
Reserve Category
Tonnes
(Mt)
Grade
Copper Gold
Contained Metal
Copper
Gold
(%)
(g/t)
(t)
(oz)
Proved
42
0.55
0.19
228,049
250,454
Probable
40
0.70
0.14
281,213
181,051
Total
82
0.62
0.16
509,262
431,504
2
Extended Feasibility Study (EFS) Summary
Life of Mine (LOM) Key Financials
Project revenue*
A$4.3b
Operating costs, royalties and sustaining capital
A$2.7b
Pre-tax project operating cash flow*
A$1.6b
Copper head grade - first 12 years
0.66%
Pre-production capital
A$480m
(US$360m)
C1 cash cost
US$1.61/lb
Post tax real Net Present Value (NPV 8%)*
Internal Rate of Return (IRR)*
Pre-production capital
Construction
(plant, equipment, TSF)
Mining Fleet
Pre-strip
Other infrastructure and utilities
Surface works, spares, other
Sub-Total
Contingency
Total up-front capital
*Refer
$188m
14%
A$206m
A$66m
A$80m
A$21m
A$67m
A$440m
A$40m
A$480m
(US$360m)
to Appendix 1
3
Iron ore to copper-gold: why change?
Rex announced
commencement of
EFS
4
EFS mine plan – copper gold
MLP Western
RSF
MLP Tailings
Dam
Processing
plant
EFS
Tailings
Dam
EFS Pit
MLP Pit
Highway
diversion
Pine
Point
5
Physical infrastructure
Saline
Groundwater
Power
Water
(no change)
Seawater
intake not
required
Road
upgrades
(no change)
Freshwater
(SA Water)
Seawater
(seawater
intake)
Not required as less
water is needed for
smaller mine
6
Employment
Construction workforce
approx.
500 - 550
Construction workforce 18 months
Pre-strip commences 12 months
Production workforce
employing an average of
500 for 13 + years
MLP – average production workforce of 650
7
What this means in operation…
Previously…
Now…
62
16
13
5
0
7
75% less
Total
trucks on
roads are
the same
8
Copper concentrate transport
Concentrate loaded in an
enclosed shed (as described
in the Mining Lease
Proposal) at port facility
9
The view from above
MLP RL90
MLP
RL170
MLP RL100
10
How do the EFS emissions stack up to the
mining lease conditions?
Noise modelling
New modelling shows full compliance with lease conditions.
Dust modelling
New modelling shows full compliance with lease conditions.
Blasting
No changes to blast designs. Blasting is less frequent as
mining rate is less.
11
Noise Modelling
(Year 5; maximum
impact to the nearest
receptor)
12
Dust
Modelling
PM10* max 24 hour
with background dust
(18µg/m3)
(Year 5; maximum
impact to the
nearest receptor)
*PM10: Particulate Matter up
to 10 micrometers in size
13
Blast Modelling
Vibration levels
1mm/s = someone walking
2mm/s = light breeze (~8km/hr winds)
5mm/s = compliance limit (at closest home)
10mm/s = fresh breeze (~40km/hr winds)
Residences
14
Where to from here…
1. Extension of Program for Environmental Protection &
Rehabilitation (PEPR) and Social Management Plans
(SMP) granted.
2. Communication of EFS results to all stakeholders
3. Develop PEPR documentation
4. Financing and development decision
15
Contact details
Website: www.rexminerals.com.au
Email: [email protected]
For community, please contact Erica Dearlove
phone +61 408 006 540
[email protected]
For media and investor relations enquiry, please contact Gavan Collery
phone +61 419 372 210
[email protected]
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Appendix 1
Competent Persons’ Report – Ore Reserves
The information in this report that relates to Ore Reserves is based on information compiled by Mr Charles McHugh who is a Member of the Australasian
Institute of Mining and Metallurgy and is a consultant to Rex Minerals Ltd. Mr McHugh has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 McHugh consents to the inclusion in the
report of the matters based on their information in the form and context in which it appears.
Competent Persons’ Report– Mineral Resources
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Patrick Say who is a
Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of Rex Minerals Ltd. Mr Say has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Say consents to
the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward-Looking Statements
This announcement contains “forward-looking statements”. All statements other than those of historical facts included in this announcement are forwardlooking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is
expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such
risks include, but are not limited to, copper and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade
or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The
Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement”.
Metal Price and Exchange Rate assumptions
Commodity and exchange rate
Copper
Gold
AUD:USD*
•
•
Assumption
US$3.0/lb
US$1,250/oz
0.70
Quotes for the capital cost estimates in the EFS assumed an exchange rate of 0.75.
A longer term exchange rate forecast of 0.70 was used for the life of the operation.
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