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EMA TARGETS 2013 START‐UP FOR WA URANIUM PRODUCTION
Energy and Minerals Australia Limited (ASX:EMA), a Western Australian focused uranium development company, has set itself a target of producing uranium in 2013 at the Mulga Rock Deposits (‘MRD’) making it one of the first companies to take advantage of the new WA Government’s pro‐uranium policy.
Speaking at the Sydney Mining Club today, EMA Managing Director Chris Davis said that the target was within the Company’s capabilities. A copy of the presentation to the Sydney Mining Club is attached.
“EMA has an advantage over most of the other companies planning uranium developments in WA because we already have a substantial JORC Code compliant ore resource,” he said.
“With very few exceptions, the other companies in our field are in earlier stages of exploration and resource‐proving.”
Mr Davis said EMA was planning to commence mining at an annual rate of 1,000 tonnes of U308 from its Ambassador deposit at Mulga Rock, 250 kilometres north‐north east of Kalgoorlie.
Ambassador is one of three uranium deposits already identified in EMA’s Mulga Rock tenements.
“We are confident that our continuing exploration programme at the MRD will increase the resource substantially,” he said.
“Clearly, however, it is already big enough to be of global significance in the fight against climate change by reducing the world’s dependence on fossil fuels for electricity generation.”
Chris Davis Media contact: Managing Director Warrick Hazeldine Purple Communications
5 February 2009 (08) 9485 1254 / 0417 944 616
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About Energy and Minerals Australia
Energy and Minerals Australia (ASX: EMA) is a Perth‐based resource development company. EMA’s primary focus is the development of the Mulga Rock Deposits, located about 770 kilometres east‐northeast of Perth in Western Australia.
The Mulga Rock Deposits were discovered by the Japanese government company PNC Exploration in the early 1980s. The project offers the advantage of established access to infrastructure such as rail and airstrip, 1,000km of roads and cleared grid lines along with a large water resource.
The EMA package also includes the nearby project areas – Gunbarrel and Minigwal – which combined cover more than 2,000km2 of prospective area to provide a large and consolidated landholding in a highly prospective region. The Company has an experienced board and management team, which includes strong geological experience in the eastern Goldfields region.
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Energy and Minerals AustraliaEnergy and Minerals Australia
Mulga Rock: timing is everything5 February 2009
Chris DavisManaging Director
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Disclaimer and Competent PersonThe presentation (in this projected form and as verbally presented) (Presentation) is provided on the basis that none of the Company norits respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make anyrepresentation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in thePresentation and nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether asto the past or the future. The Company hereby excludes all warranties that can be excluded by law.
The Presentation may contain prospective financial material which is predictive in nature and may be affected by inaccurate assumptionsor by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved.
The Presentation may contain "forward‐looking statements". All statements other than those of historical facts included in thePresentation are forward‐looking statements including, without limitation, (i) estimates of future earnings, and the sensitivity of earningsto commodity prices; (ii) estimates of future commodity production and sales; (iii) estimates of future cash costs; (iv) estimates of futurecash flows, and the sensitivity of cash flows to commodity prices; (v) estimates of future capital expenditures; and (vi) estimates ofresources and/or reserves, and statements regarding future exploration results and the replacement of resources and/or reserves./ , g g p p /Where the Company expresses or implies and expectation or belief as to future events or results, such expectation or belief is expressedin good faith and believed to have a reasonable basis. However, forward‐looking statements are subject to risks, uncertainties and otherfactors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward‐lookingstatements. Such risks include, but are not limited to, commodity price volatility, currency fluctuations, increased production costs, aswell as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake anyobligation to release publicly any revisions to any "forward‐looking statement" to reflect events or circumstances after the date of theP t ti t fl t th f ti i t d t t b i d d li bl iti lPresentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
All persons should consider seeking appropriate professional advice in reviewing the Presentation and all other information with respectto the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of thePresentation nor any information contained in the Presentation or subsequently communicated to any person in connection with thePresentation is, or should be taken as, constituting the giving of investment advice to any person.
The information in this Presentation has been compiled by the Managing Director of Energy and Minerals Australia Limited, Chris Davis,The information in this Presentation has been compiled by the Managing Director of Energy and Minerals Australia Limited, Chris Davis,who has over 40 years experience in the mining industry, and is a Fellow of the AusIMM, and complemented with information fromExecutive Director Mike Fewster, who is a Geologist with more than 27 years’ experience.
The information in this announcement that relates to Mineral Resources is based on information compiled by Neil Inwood, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Inwood is a full time employee of Coffey Mining. Mr Inwood has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in
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style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the JORC ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Inwood consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
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EMA project locations
MRD is 250 kms NE250 kms NE of Kalgoorlie
Close to roadClose to road and rail infrastructure
Total tenement package of 3 397 km23,397 km2
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EMA project locations
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Narnoo and Mulga Rock Deposits
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Mineralisation
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2,000 holes drilled
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Bulk sample pit at Shogun
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What’s been happening at EMA?
Corporately
Political environment
Publicity as a consequence of the change in state policychange in state policy
In the field
In the office
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Corporate
ASX listing in May 2008
1,597 shareholders
360 million ordinary shares360 million ordinary shares
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Still some challenges
Yarri Mining Pty Ltd have:
lodged plaints and applications for forfeiture− lodged plaints and applications for forfeiture of the MRD tenements
− taken separate Supreme Court action that was heard mid December 2008
There are risks and uncertainties associated with this litigation as with all litigationwith this litigation, as with all litigation, but EMA believes there were reasonable and proper grounds for defending this litigation.proper grounds for defending this litigation.
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WA political landscape
26 A tAlan Carpenter promises to ban
26 Augustp p
uranium mining in Western Australia
14 September New state government formed
17 NovemberOfficial lifting of ban on uranium mining in Western Australia
2012 / 2013 Next WA state election
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The first – and second ‐ press coverage!
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Press coverage
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Television coverage
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People
BoardPhil Golding Chairman AccountantGo d g C a a ccou ta t
Chris Davis Managing Director Mining Engineer
Mike Fewster Executive Director Geologist
Stephen Penrose Non Executive Director Lawyer
A d l i tA developing teamSimon Fleming GM Geology and Exploration
Derek Humphry CFO and Company SecretaryDerek Humphry CFO and Company Secretary
Colin Woolard Environmental and Permitting consultant
Mark Sonter Radiation and Occupational Health consultant
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The camp is installed
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Environment
Base line studies are underway
Historical flora and fauna report
Two years data required for final mine permitting
No fatal flaws identified
Some rare flora identified and management programmes implemented
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programmes implementedFor
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Geological database
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Initial JORC Code compliant resource
U3O8 Cut Tonnes U3O8 C t i dContained 3 8
off (ppm)
ore(Mt)
3 8 Grade (ppm)
Contained U3O8 (t)
U3O8 (Mlb) *
200 44.36 550 24,520 54.06
300 35.22 630 22,220 48.99
500 18.63 850 15,810 34.86
700 10.31 1,060 10,930 24.10700 10.31 1,060 10,930 24.10
20* ‐ Tonnes are metric (2,204.62 pounds)Note: Appropriate rounding has been applied
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Deposits and Resources
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Ambassador Initial Resource boundaries
Inferred Boundary
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Emperor Initial Resource boundaries
Inferred Boundary
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Where are we going?
EMA will:
develop a uranium mine on the MRD withdevelop a uranium mine on the MRD, with first production scheduled for 2013
While progressing the mine, increase the uranium resource
identify and quantify the potential for base metal and gold within the MRD and Narnoo
jprojects
carry out exploration of the Minigwal and
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Gunbarrel projects
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Timetable
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Uranium Resource upgrade
Nickel and Cobalt Inferred Resource
Permitting and baseline studies
Permitting and baseline studies
Native title
Metallurgical development
Scoping study
Pre feasibility study
Pre‐feasibility study
Feasibility study
Long lead items and construction
Production
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The financial crisis and EMA
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2008 Uranium transactions
July:
Mitsubishi (30%) and Cameco (70%) bought Kintyre (WA) in July
~US$500M
=(pre lifting of uranium mining ban in WA)
[~36,000 tonnes U3O8 pre JORC resource]~A$10 / lb
@US$0.65=A$1
October:
Mitsui bought 49% of Honeymoon (SA) ~A$104Mg y ( )
[~3,000 tonnes U3O8 resource; in development]=
A$32 / lb
As at 1 December 2008
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Conclusions
EMAThe MRD are a large source of uranium
MRD and Narnoo data shows:MRD and Narnoo data shows:
A large JORC code compliant resource
growth potential for both uranium and other commodities
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Contact details
Energy and Minerals Australia Limited
25 Richardson StreetWest PerthWest Perth
Telephone: (08) 9389 2700
Mobile: 0417 902 646
Email: [email protected]
Website: www.eama.com.au
ASX code: EMA
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Advisors
bli ff iCorporate Public AffairsDavid Cornell Warrick HazeldineElement CapitalPerth
Purple CommunicationPerth
Tel: (08) 6267 0256 Tel: (08) 9485 1254
Mobile: 0416 238 114 Mobile: 0417 944 616
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