MINOTAUR EXPLO

CAREY’S WELL KCAREY’S WELL K

POOCHERA, SOPOOCHERA, SO

Lew Barnes aLew Barnes a

ORATION LIMITED

MINOTAURMINOTAUR

KAOLIN PROJECTKAOLIN PROJECT

OUTH AUSTRALIAOUTH AUSTRALIA

and Tom Mayerand Tom Mayer

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MT HOPEKAOLIN

MT HOPEKAOLIN

LATE 1970s TSEVERAL AREAS OF K

FOUND ON EYR

POOCHERA

KAOLIN

POOCHERA

KAOLIN

POOCHERAPOOCHERA

MT STUKAOLI

POOCHERTHE HUB OF EYRE P

ALL WERE INITIALLY EVALUATPAPER COATING HYDROUS

SEVERAL POOCHERA SAPAPER COATING

KIMBAKAOLI

N

KIMBAKAOLI

N

TO MID 1980s KAOLINISED BASEMENT

RE PENINSULA

RTN

RAPENINSULA

TED AS POSSIBLE SOURCE OF KAOLIN - NONE SUITABLE

AMPLES VERY CLOSE TO G SPECIFICATION MINOTAURMINOTAUR

19921992--2000 NORMANDY IND2000 NORMANDY INDEVALUATED POOCEVALUATED POOC

Extensive drilling furtherExtensive drilling furtherand located additional areand located additional are

USTRIAL MINERALS (CML)USTRIAL MINERALS (CML)CHERA DEPOSITSCHERA DEPOSITSr defined known deposits r defined known deposits eas of kaolin developmenteas of kaolin development MINOTAURMINOTAUR

CML DETERMINED KAOLIN FROM TSUITABLE FOR USE IN HIGH QUAL

PAINT, RUBBER & PL

DOMESTIC AND REGIONAL MARKTOO SMALL TO WARR

TO GENERATE SUFFICIENT VOLUMTO ACCESS PAPER

1998 – ABOUT 2 TONNES OF CARPROCESSED THROUGH SKARDON

ABOUT 200kg OF CALCINED KAOWAS FOUND TO BE FAVOURABLYQUALITY CALCINED KAOLIN PRO

TOMNEY AND CAREY’S WELL WAS LITY CERAMICS AND AS PREMIUM LASTIC (PRP) FILLER

KETS WERE CONSIDERED TO BERANT DEVELOPMENT

ME CML RECOGNISED THE NEEDCOATING MARKETS

MINOTAURMINOTAUR

REY’S WELL KAOLIN WAS TRIAL N RIVER PILOT PLANT IN CAIRNS.

OLIN WAS PRODUCED AND THIS Y COMPARABLE TO PREMIUM ODUCED IN USA

Carey’s WellPremium Calcined Kaolin

ISO Brightness R457nm 96.48CIE b* value +0.85Cum. residue% <0.01Einlehner Abrasion mg 25.9

PRODUCT COMPARISO

Hegman Grind >16umRefractive Index 1.56Oil Absorb. 80Specific Gravity 2.68Bulk Density 0.38Equiv. spherical diameter 0.90

Engelhard (USA)Ansilex93/Satintone

ISO Brightness R457nm 90.17CIE b* value +3.04Cum. residue% 0.06Einlehner Abrasion mg ~20

ON CALCINED KAOLIN

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Hegman Grind >50umRefractive Index 1.56Oil Absorb. 101Specific Gravity 2.74Bulk Density 0.38Equiv. Spherical diameter 0.73

S

POOCHERA KAOGENERALISED GEO

N

OLIN DEPOSITSOLOGICAL SECTION

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HILTABA HILTABA SUITESUITE

GRANITEGRANITE KAOLINISED GRAN

CALC

CALCRETE LAYERS

NITE

CAREOUS SILT AND SAND(OVERBURDEN)

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2KAlSi3O8 +    3H2O                       (Potash feldspar)                                  

~50% quartz-50% feldsparminor mica – trace anatase

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     Al2Si2O5(OH)4  +  SiO2 +  2KOH            (Kaolin)  

~50% quartz-50% feldsparminor mica – trace anatase

HYDROUS KAOLINAl2Si2O5(OH)4

HIGH VALUE - LOW VOLUMECeramics/porcelains/glazes

Premium PRP fillers & extenders

MODERATE VALUE - HIGH VOLUMEPaper coating

PRP fillers/ceramics

LOW VALUE – VERY HIGH VOLUMEPaper filling

Stoneware/tableware/ceramic tilesCements/general fillers

CALCINED KAOLIN(Calcined  @ 950 ‐ 1000oC)

Amorphous 2Al2O3.3SiO2.SiO2

HIGH VALUE – MODERATE VOLUMEGlossy paper and board coatingPremium PRP fillers & extenders

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MODERATE VALUE - HIGH VOLUME(Includes chamotte & mullite)

Refractories/general fillers

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SPECIFICATIONS FOR CALCCINED KAOLIN FEEDSTOCK

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HIGH PURITY – VERY L

SPECIFICATIONS FOR CALC

LOW QUARTZ CONTENT

CINED KAOLIN FEEDSTOCK

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SPECIFICATIONS FOR CALC

HIGH WHITENESS RAW R

HIGH PURITY – VERY L

CINED KAOLIN FEEDSTOCK

REFLECTANCE R457 >80

LOW QUARTZ CONTENT

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SPECIFICATIONS FOR CALC

HIGH WHITENESS RAW R

HIGH PURITY – VERY L

VERY FINE PA

+95% LESS TH

% SS~90% LESS TH

CINED KAOLIN FEEDSTOCK

REFLECTANCE R457 >80

LOW QUARTZ CONTENT

PARTICLE SIZE

HAN 2 MICRONS

C O

MINOTAURMINOTAUR

HAN 1 MICRON

SPECIFICATIONS FOR CALC

HIGH WHITENESS RAW R

HIGH PURITY – VERY L

VERY FINE PA

+95% LESS TH

% SS~90% LESS TH

TOTAL IRON AND TITAN

CINED KAOLIN FEEDSTOCK

REFLECTANCE R457 >80

LOW QUARTZ CONTENT

PARTICLE SIZE

HAN 2 MICRONS

C O

MINOTAURMINOTAUR

HAN 1 MICRON

NIA VERY LOW (<0.8%)

SPECIFICATIONS FOR CALC

HIGH WHITENESS RAW R

HIGH PURITY – VERY L

VERY FINE PA

+95% LESS TH

% SS~90% LESS TH

PREFERABLY HIGH DEG

VERY LOW STRUCTU

TOTAL IRON AND TITAN

CINED KAOLIN FEEDSTOCK

REFLECTANCE R457 >80

LOW QUARTZ CONTENT

PARTICLE SIZE

HAN 2 MICRONS

C O

MINOTAURMINOTAUR

HAN 1 MICRON

GREE OF CRYSTALLINITY

URAL IRON CONTENT

NIA VERY LOW (<0.8%)

JULY 2008 – MINOTAUR DRILLEED 8 CALWELD DRILL HOLES

MINOTAURMINOTAUR

ABOUT 55 TONNES (~1 TONNE/TRANSPORTED TO ADELAIDE

PILOT

METRE) BAGGED ANDFOR FUTURE PILOT PLANT TRIALS

T PLANT CURRENTLY BEINGCONSTRUCTED

MINOTAURMINOTAUR

MINOTAURMINOTAUR

EACH 1 TONNE BULK BAG SUBSAM

WHITENESS, PARTICLDETERMINED USING CTECHNIQUES AND SCAAT ADELAIDE MICROS

16 SUBSAMPLES, REPRESENTINGFROM 6 HOLES PROCESSED

LABORATORIES TO PRODUCE A

PLED

E SIZING AND MINERALOGYCONVENTIONAL LABORATORY ANNING ELECTRON MICROSCOPYSCOPY CENTRE

G 48m OF KAOLINISED GRANITED AT IAN WARK RESEARCH A -38 MICRON CLAY FRACTION

MINOTAURMINOTAUR

LABORATORY TESTING ANCONFIRMED THAT CAR

WHITE, FREE OF CONTAMIGRAINE

KAOLIN FROM THE 2008IS VERY SIMILAR TO THE

THAT WAS PROCESSED TCALCINECALCINE

FROM THIS WE CANCAREY’S WELL THERE

KAOLIN RESOURPRODUCTION OF

D SEM EXAMINATION HAS REY’S WELL KAOLIN IS

NANTS, EXTREMELY FINE ED AND

8 CALWELD DRILL HOLESE EARLIER BULK SAMPLE O ULTRA WHITE, PREMIUM D KAOLIN

MINOTAURMINOTAUR

D KAOLIN

N CONCLUDE THAT AT E IS A LARGE, UNIFORM

RCE SUITABLE FOR CALCINED KAOLIN

CAREY’S WELL KAOLCAREY’S WELL KAOL

QUARTZ

100µm

100µm

LIN LIN --38µm FRACTION38µm FRACTION

50µm

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100µm

70µm

PLATES IN STACKS COMPOSED OFMODERATELY TO WELL CRYSTALL

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F VERY FINE (<<2µm) LINE KAOLIN PLATELETS

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MINOTAURMINOTAUR

MINOTAURMINOTAUR

MINOTAURMINOTAUR

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SEM EXAMINATION HAS CWELL KAOLIN IS EXTREM

KAOLIN FROM THE RECENIS IDENTICAL TO THE EARLIE

PROCESSED TO ULTRA WHKAO

TH

THE RESOURCE IS LA

ANWITH APPROPRIATE CON

TECHNOLOGY KAOLINISEDWELL CAN BE PROCESSED T

KAO

CONFIRMED THAT CAREY’S MELY FINE GRAINED AND

NT CALWELD DRILL HOLESER BULK SAMPLE THAT WAS HITE, PREMIUM CALCINED OLIN

US

MINOTAURMINOTAUR

ARGE AND UNIFORM

NDNVENTIONAL PROCESSING D GRANITE FROM CAREY’S TO HIGH QUALITY CALCINED

OLIN

WHITE KAOLINISEDWHITE KAOLINISEDGRANITE RESOURCEGRANITE RESOURCE

MINOTAURMINOTAUR

WHITE, FINE GRAINEDKAOLIN SUITABLE FOR

PRODUCTION OF CALCINED KAOLIN

(Resource as determined to date)

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Infill drilling planned in this area should significantly increase the high quality kaolin resource

LABORATORY TESTING ANTRIALS HAVE DETERMIN

KAOLINISED GRANITE CAN BOTH HYDROUS AND CA“OFF THE SHELF” PROC

THE MOST SUITABLE PROCEAND COSTS ARE TO BE DETE

PLANT TRIALS TO

ND EARLIER PILOT PLANT ED THAT CAREY’S WELLBE EASILY PROCESSED TO

ALCINED KAOLIN USINGCESSING TECHNOLOGY

MINOTAURMINOTAUR

SSING METHOD, EQUIPMENT ERMINED BY EXTESIVE PILOT COMMENCE SOON

PROCESSING OF PROCESSING OF CAREY’S WELL KAOLCAREY’S WELL KAOL

ROM ORE LOW SHEARBLUNGE

DESA

CL

95%<2um96%<2umR 90 MAGNETIC

SEPARATIONR= 88.3

DRIEDHYDROUS

KAOLIN

R = 90

PULVERISE

? 30%<2umR = 95

PU

SPRAYDRY

CALCINE950OC

LINLIN

AND

52%<2umR = 83.1

PRIMARYLASSIFICATION

91%<2umR = 84.5

95%<2um

HIGH SHEARBLUNGE/

DELAMINATION

UNDERFLOW

R = 84.5LEACH &FILTER

TRIPLEPASS

ULVERISATION

CALCINED KAOLINCALCINED KAOLIN88%<2um67%<1umR = 95.8b = 0.6

MINOTAURMINOTAUR

SECONDARYCLASSIFICATION

OVERFLOW

PROCESSING OF PROCESSING OF CAREY’S WELL KAOLCAREY’S WELL KAOL

ROM ORE LOW SHEARBLUNGE

DESA

CL

95%<2um96%<2umR 90 MAGNETIC

SEPARATIONR= 88.3

DRIEDHYDROUS

KAOLIN

R = 90

PULVERISE

? 30%<2umR = 95

PU

SPRAYDRY

CALCINE950OC

FILTER

LINLIN

AND

52%<2umR = 83.1

PRIMARYLASSIFICATION

91%<2umR = 84.5

95%<2um

HIGH SHEARBLUNGE/

DELAMINATION

UNDERFLOW

R = 84.5LEACH

TRIPLEPASS

ULVERISATION

CALCINED KAOLINCALCINED KAOLIN

88%<2um67%<1umR = 95.8b = 0.6

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SECONDARYCLASSIFICATION

OVERFLOW

CAREY’S WELL CACAREY’S WELL CAALCINED KAOLINALCINED KAOLIN

MINOTAURMINOTAUR

EXTRA PERSUASION SOMECALCRETE AMENABLE

ETIMES REQUIRED TO MAKE TO CALWELD DRILLING

NEGOTIATIONS WITH POTENTPARTNERS TO ASSIST IN THECAREY’S WELL KAOLIN PROJSTAGE

TIAL JOINT VENTURE E DEVELOPMENT OF THE JECT ARE AT AN ADVANCED