EuclaEucla MineralMineral Sands ProjectProjectProjectsaemc.com.au/archive/2004/04adelaide.pdf · Company Profile Adelaide Resources Limited •ASX Code:ASX Code: ADN • Shares issued

Adelaide Resources LimitedAdelaide Resources Limited

EuclaEuclaMineralMineralSands

ProjectSands

ProjectProjectProject

Chris Drown

SA Explorers ConferenceSt Barbara’s Day SA Explorers ConferenceSt Barbara’s Day SA Explorers Conference

Company ProfileCompany ProfileAdelaide Resources LimitedAdelaide Resources Limited

• ASX Code: ADN• ASX Code: ADNASX Code: ADN

• Shares issued 63.03 million

ASX Code: ADN

• Shares issued 63.03 million

• Unlisted options2.4 million

• Cash

• Unlisted options2.4 million

• CashCash$3.5 million

• ~1300 shareholders

Cash$3.5 million

• ~1300 shareholders

• Major Shareholders:Troy Resources NL (14.5%)Keith Yates (8.9%)

• Major Shareholders:Troy Resources NL (14.5%)Keith Yates (8.9%) Left to right:

• 12 month trading 15 to 37.5 cents

• Market capitalisation

• 12 month trading 15 to 37.5 cents

• Market capitalisation

Chris Drown – Exploration ManagerKeith Yates – Executive ChairmanJohn Horan – DirectorD K i Will Di t

SA Explorers Conference

• Market capitalisation$22 million (35 cents)

• Market capitalisation$22 million (35 cents)

Dr Kevin Wills – Director

Performance IndicatorsPerformance IndicatorsAdelaide Resources LimitedAdelaide Resources Limited

3$ (million)

Joint Venture

Expenditure($ million) 1

2Adelaide Resources Limited

97-98 98-99 99-00 00-01 01-02 02-03 03-040

40x 1000 metres

Drilling(metres)

10

20

30 RAB / AircoreRC / Diamond

97-98 98-99 99-00 00-01 01-02 02-03 03-040

30cents

Trading(cents)

10

20

30


97-98 98-99 99-00 00-01 01-02 02-03 03-040

Quality projects / Quality relationshipsQuality projects / Quality relationshipsAdelaide Resources LimitedAdelaide Resources Limited

Ad l id R

COPPERCOPPERIRON OREIRON ORE100%

Adelaide Resources

100%100% AnabamaWarrambooAdelaide Exploration

NICKELNICKELCOPPER-GOLDCOPPER-GOLDGOLDGOLD

JOINT VENTURESJOINT VENTURES

HMSHMS

BartonBartonIncoInco

earning 60%earning 60%

Eyre PeninsulaNewmont

earning 51%

MoontaPhelps Dodge/Red Metal

earning 70%

ColonaIluka

earning 51%earning 60%earning 60%earning 51% earning 70%

Mount Woods SouthPerilya 50:50

earning 51%


Metal Price GraphsMetal Price GraphsAdelaide Resources LimitedAdelaide Resources Limited as at 30 June 2004as at 30 June 2004

500

450

$US tonne (2004 real)440

390

$US per ounce

400

350

450

300

390

340

290

240 30098-99 99-00 00-01 01-02 02-03 03-04

24096-97 98-99 00-01 02-03

18000

15000

$US tonne

12000

3000

2000

2500

$US tonne200

150

100

Chinese imports (million tonnes)

9000

6000

300098-99 99-00 00-01 01-02 02-03 03-04

1500

100099-00 00-01 01-02 02-03 03-04

50

096-97 98-99 00-01 02-03


South Australian ProjectsSouth Australian ProjectsAdelaide Resources LimitedAdelaide Resources Limited

SOUTHAUSTRALIA

SOUTHAUSTRALIAAUSTRALIAAUSTRALIA

GawlerCratonGawlerCraton

Olympic DamOlympic Dam

Prominent HillProminent HillMOUNT WOODS SOUTH (Copper-Gold)

BARTON (Nickel)

MOUNT WOODS SOUTH (Copper-Gold)

BARTON (Nickel)

COLONA (Mineral Sands)

ANABAMA (Copper)

EYRE PENINSULA (G ld)

COLONA (Mineral Sands)

ANABAMA (Copper)

EYRE PENINSULA (G ld)EYRE PENINSULA (Gold)

WARRAMBOO (Iron)

MOONTA-WALLAROO (Copper-Gold)

EYRE PENINSULA (Gold)

WARRAMBOO (Iron)

MOONTA-WALLAROO (Copper-Gold)

Olympic Copper-Gold ProvinceOlympic Copper-Gold Province

AdelaideMOONTA-WALLAROO (Copper-Gold)MOONTA-WALLAROO (Copper-Gold)


300 KM300 KMCentral Gawler Gold ProvinceCentral Gawler Gold Province

Olympic Copper Gold ProvinceOlympic Copper Gold Province

Colona Joint VentureColona Joint VentureAdelaide Resources LimitedAdelaide Resources Limited

With Iluka Resources Limited(spending $1.0M to earn 51%)



Barton SidingBarton SidingImmarnaImmarna

1000 km1000 km

EL 2841EL 2841EL 2841EL 2841

EL 2900EL 2900(Iluka)(Iluka)

Colona JVColona JV AdelaideAdelaide

Gawler CratonGawler CratonEL 2841EL 2841(ARL)(ARL)(ADN)(ADN)


EL 2840EL 2840EL 2840EL 2840(ARL)(ARL)(ADN)(ADN)JACINTH DISCOVERY

(Iluka)(Iluka)

T t bj t tT t bj t t

(ARL)(ARL)(ADN)(ADN)JACINTH DISCOVERY EL 3233EL 3233(Iluka)(Iluka)

Tenements subject toColona JV with Iluka(5250 sq. km.)

Tenements subject toColona JV with Iluka(5250 sq. km.)

ELA 233/03ELA 727/04ELA 727/04


20 KM20 KMIluka TenementsIluka TenementsELA 233/03ELA 727/04ELA 727/04

(Iluka)(Iluka)(Iluka)


The AgreementThe Agreement

• 2500m of drilling in year 1• 2500m of drilling in year 1

The AgreementThe Agreement

• $1 million expenditure over next five years toearn 51%

• $1 million expenditure over next five years toearn 51%

• $200,000 minimum expenditure in years 2 and 3

• Once Iluka have earned 51% ARL may contribute

• $200,000 minimum expenditure in years 2 and 3

• Once Iluka have earned 51% ARL may contribute• Once Iluka have earned 51% ARL may contributeand hold its 49% interest

• Once Iluka have earned 51% ARL may contributeand hold its 49% interest

• Alternatively ARL may revert to a 30% interest carried to completion of a positive BFS

• Alternatively ARL may revert to a 30% interest carried to completion of a positive BFS


Zircon OutlookZircon OutlookAdelaide Resources LimitedAdelaide Resources Limited

D d ll t dD d ll t dZircon UsesZircon Uses Demand across all sectors and

regions expected to remain strong in H2 2004 and throughout 2005

Demand across all sectors and regions expected to remain strong in H2 2004 and throughout 20056%6%

6%6%

Fully sold in 2004

E t t b f ll ld i 2005

Fully sold in 2004

E t t b f ll ld i 200510%10%

9%9%

Expect to be fully sold in 2005

Chinese market continues to be th j th

Expect to be fully sold in 2005

Chinese market continues to be th j th

10%10%

12%12%57%57% the major growth area

Continuing to progress short-term zircon production initiatives to

the major growth area

Continuing to progress short-term zircon production initiatives to

57%57%

CeramicsCeramicsRefractoryRefractory zircon production initiatives to

meet market opportunity gapzircon production initiatives to meet market opportunity gap

RefractoryRefractoryFoundryFoundryZirconia ChemicalsZirconia ChemicalsInvestment CastingInvestment Casting


Investment CastingInvestment CastingTV GlassTV Glass

(courtesy Iluka Resources)

Zircon PriceZircon PriceAdelaide Resources LimitedAdelaide Resources Limited

?

$500$500

$600$600 ?

$400$400

nom

inal

nom

inal

$200$200

$300$300

US$

/t n

US$

/t n

$100$100

$200$200

$0$0

9090 9191 9292 9393 9494 9595 9696 9797 9898 9999 0000 0101 0202 0303 0404 0505

SA Explorers Conference(courtesy Iluka Resources)

Tertiary setting of Adelaide Resources LimitedAdelaide Resources Limited the Eucla Basin

• ~2000 km long shoreline

• palaeovalleyspalaeovalleys extended landward in 3 cratons

• economic potential:• economic potential: HMs, gold, coal, uranium, groundwater

SA Explorers Conference(courtesy B. Hou, PIRSA)

Palaeogeographic ReconstructionPalaeogeographic ReconstructionAdelaide Resources LimitedAdelaide Resources Limited (courtesy B. Hou, PIRSA)

Bedrock headlands Fluvial channel High order strandlineFluvial channel

Littoral bypassingLittoral bypassing

Heavy mineralconcentration

Erosion surface

concentration


Jacinth Prospect – LocationJacinth Prospect – LocationAdelaide Resources LimitedAdelaide Resources Limited

………

Line 5776

Jacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectLine 5776

EL2900ILUKA Resources Ltd

EL2840

EUCLA BASIN

ILUKA Resources LtdN

Jacinth is the name of a variety of gem zircon

Jacinth is the name of a variety of gem zircon

Jacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth ProspectJacinth Prospect

South AustraliaLegendMineralised Zone

Line 5776

TenementsIluka Granted

Iluka Application

variety of gem zirconvariety of gem zircon

SA Explorers Conference2kms

pJacinth ProspectJacinth ProspectpJacinth ProspectpJacinth ProspectJacinth ProspectJacinth Prospect

AdelaideAdelaideAdelaideAdelaideAdelaideAdelaideAdelaideAdelaideAdelaide

Drill Hole

Line 5776

Iluka & Adelaide JV

Iluka Application

GDA94 Zone 53

(courtesy Iluka Resources)(courtesy Iluka Resources)

Jacinth Prospect – SectionJacinth Prospect – SectionAdelaide Resources LimitedAdelaide Resources Limited

10% heavy mineral, averages 52% zircon, 7% rutile, 24% ilmeniteMineral assemblage similar to Eneabba in its he da

10% heavy mineral, averages 52% zircon, 7% rutile, 24% ilmeniteMineral assemblage similar to Eneabba in its he da

0 1000m500mW E Mineral assemblage similar to Eneabba in its heyday Mineral assemblage similar to Eneabba in its heyday

0

10m

0m

20m

30m


> 1% HM> 1% HM > 3%HM> 3%HM > 20% HM> 20% HMHeavy Mineral Contours – LaboratoryHeavy Mineral Contours – Laboratory

(courtesy Iluka Resources)

Indicative Comparison of Australian HMS ResourcesIndicative Comparison of Australian HMS ResourcesAdelaide Resources LimitedAdelaide Resources Limited

Province Company MT %HM(4) MT HM %Zircon %Rutile %Ilmenite US$/t conc(6) US$/t in groundProvince Company MT %HM( ) MT HM %Zircon %Rutile %Ilmenite US$/t conc( ) US$/t in ground

Stradbroke Is (1) Iluka 808 0.8% 6.74 11% 13% 44% ~150 ~1

Murray Basin (1) Iluka 473 10.5% 49.73 10% 11% 49% ~140 ~14

(2)Murray Basin (2) Bemax 2196 2.8% 61.49 10% 18% 53% ~170 ~5

Murray Basin (3) Aust. Zircon 170 3.2% 5.44 19% 11% 66% ~190 ~6

WA mid-west (1) Iluka 842 5.3% 44.48 12% 7% 51% ~130 ~7

WA south-west (1) Iluka 669 8.1% 54.27 8% 2% 79% ~110 ~9

WA south-west (2) Bemax 154 9.0% 13.86 9% 81% ~110 ~10

Early exploration results - Jacinth Prospect

C dit US$/t (6)

a y e p o at o esu ts Jac t ospect

Eucla Basin(5) Iluka ? 10.0% ? 52% 7% 24% ~310 ~31

Commodity US$/tonne(6)Data SourcesData SourcesZircon $500(1) - Iluka Resources Limited Concise Annual Report 2003(1) - Iluka Resources Limited Concise Annual Report 2003Rutile $430(2) - Bemax Resources NL 2004 Annual Report(2) - Bemax Resources NL 2004 Annual Report

Illmenite $80(3) - Southern Titanium NL 2004 Annual Report(3) - Southern Titanium NL 2004 Annual Report(4) - Cut off grades used in resource calculations vary(4) - Cut off grades used in resource calculations vary


(4) - Cut off grades used in resource calculations vary(4) - Cut off grades used in resource calculations vary(5) - Iluka Resources Limited ASX announcement 5 Nov 2004(5) - Iluka Resources Limited ASX announcement 5 Nov 2004(6) - Representative prices as advised by TZ Minerals International (see table)(6) - Representative prices as advised by TZ Minerals International (see table)

Iluka SA Tenement HistoryIluka SA Tenement HistoryAdelaide Resources LimitedAdelaide Resources Limited

300 KilometresAdelaide ResourcesTenements subject toColona JV with Iluka

Adelaide ResourcesTenements subject toColona JV with Iluka EUCLA BASIN(5250 sq km )(5250 sq km )

Trans Australia Railway

Iluka TenementsIluka Tenements

(5250 sq. km.)(5250 sq. km.)


Application Total No Total Area

Jacinth Discovery

Eyre HighwayCedunaApplication Date

Total No. Tenements

Total Area km2

2001 1 1,889

Port Lincoln Ad l id2003 16 23,971

2002 2 4,351

2003* 4 8,117


Port Lincoln Adelaide2003 16 23,971

2004 43 47,961

Mineral Sands DepositsMineral Sands DepositsAdelaide Resources LimitedAdelaide Resources Limited

GinginGingin Deposit

? SA NSW

R kh t

Byfield

50 km50 km

WoolcundaMassidon

Nanya

Jacks TankSpring Hill

BirthdayGift Gladstone

Rockhampton

Curtis Island

Wild Cattle IslandHummock Hill Island

50 km50 km

MundijongMundijongDeposit

PERTH

50 km50 kmRenmark

Loxton

Mildura

Doubloon

Finigans Tank

WemenMindarie

Perponda

Rodds PeninsulaMiddle IslandEurimbula

Rocky Point

Waroona

WaroonaNorthMine Site

Ouyen

Woornack

KulwinBoorongieMurrayville

Bundaberg

MaryboroughFraserWaroona

WaroonaSouthMine Site

Bunbury Yogan p

Bordertown Nhill

Horsham

NaracoorteWIM 150

Douglas

Gympie

FraserIsland

Inskip Point

CooloolaNoosa

Bunbury YoganupNorth Mine Site

BoyanupYoganupExtended NorthMine Site

YoganupMine Site

Capel

Busselton Portland

g

Brisbane

Moreton Island

Pinkenba


Mine Site

SW Western AustraliaSW Western Australia Murray BasinMurray Basin100 km100 km

South Stradbroke IslandGold CoastKirra

QueenslandQueensland

Previous HM drillingPrevious HM drillingAdelaide Resources LimitedAdelaide Resources Limited


20 km20 km

JACINTH DISCOVERY

Colona JV TenementsColona JV Tenements

Iluka TenementsIluka Tenements

G kG kGeopekoGeopeko

BHPBHP


Eucla Basin HM OccurrencesEucla Basin HM OccurrencesAdelaide Resources LimitedAdelaide Resources Limited (courtesy B. Hou, PIRSA)

Late Eocene shoreline

L. Middle Eocene shoreline

Gawler Craton

Paling

Eucla Basin

Paling Bay

Pidinga Bay

Eucla

Middle Eocene shoreline


HM anomalyInferred HM anomaly


Area considered mostArea considered mostprospective for heavyprospective for heavymineral sands depositsmineral sands deposits

1000 km1000 kmmineral sands depositsmineral sands deposits(SA Government(SA Governmentassessment)assessment)Barton SidingBarton SidingImmarnaImmarna

EL 2900EL 2900

Colona JVColona JV AdelaideAdelaide

Gawler CratonGawler Craton

EL 2841EL 2841(ADN)(ADN)


DrillholeEL 3268EL 3268

(Il k )(Il k )DrillholeEB119JACINTH DISCOVERY

(Iluka)(Iluka)

EL 2840EL 2840(ADN)(ADN)


“The eastern Eucla Basin of South Australia has potential as a world-

class heavy-mineral sand province.”

“The eastern Eucla Basin of South Australia has potential as a world-

class heavy-mineral sand province.”

SA Explorers Conference20 kilometres

20 KM20 KMc ass ea y e a sa d p o ce

(Hou et. al. 2003)c ass ea y e a sa d p o ce

(Hou et. al. 2003)

Distribution of the eastern basin and palaeovalleysinterpreted as subsurface

Distribution of the eastern basin and palaeovalleysinterpreted as subsurface


pp

(courtesyB. Hou,

Barton Range

PIRSA)

SA Explorers ConferenceJacinth Discovery


A i t Sh liA i t Sh liAncient ShorelineAncient Shoreline

30km prospective strike

JACINTH DISCOVERY30km prospective strike

Shuttle Radar TopographyShuttle Radar Topographyp g p yMission (SRTM) data image

p g p yMission (SRTM) data image


30 km30 km


EB119 - (Peko)High Zircon Assemblage

EB119 - (Peko)High Zircon AssemblageHigh Zircon Assemblage

(Drilled 1990)

38 40 t

High Zircon Assemblage(Drilled 1990)

38 40 t38 - 40 metres2m @ 27% HM

51% Zircon

38 - 40 metres2m @ 27% HM

51% Zircon51% Zircon3% Rutile

35% Ilmenite

51% Zircon3% Rutile

35% Ilmenite

SA Explorers Conference(courtesy Iluka Resources)

Eucla Basin - Key AttributesEucla Basin - Key AttributesAdelaide Resources LimitedAdelaide Resources Limited

• Exceptional grade in early Jacinth drilling• Exceptional grade in early Jacinth drilling

• Zircon dominant – high value concentrate

• Sizeable plan area at Jacinth

• Zircon dominant – high value concentrate

• Sizeable plan area at Jacinth• Sizeable plan area at Jacinth

• Above water table

• Sizeable plan area at Jacinth

• Above water table

• One early discovery – high potential for more

P i f HMS i

• One early discovery – high potential for more

P i f HMS i• Promise for new HMS province• Promise for new HMS province



Interesting things are to beInteresting things are to be found on coastlines!



Th E t E l B iTh E t E l B iThe Eastern Eucla Basin: The Eastern Eucla Basin: An exciting emerging mineral sandAn exciting emerging mineral sandAn exciting emerging mineral sand

provinceAn exciting emerging mineral sand

province

ZIRCON ILMENITE


ZIRCON ILMENITE

Documents

EuclaEucla MineralMineral Sands ProjectProjectProjectsaemc.com.au/archive/2004/04adelaide.pdf · Company Profile Adelaide Resources Limited •ASX Code:ASX Code: ADN • Shares issued