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July 2010
www.zambeziresources.com
Mwembeshi Resources –
Kangaluwi Copper Project
David Russell CEO February 2011
Slide 2
Some background
ZRL has spent over $40m on exploration in
Zambia on Copper and Uranium projects
During GFC hit by a Perfect Wave with JV
partner pulling out, and heavy funding
requirements for Cu and U exploration projects
In 2008 ZRL unable to raise cash as markets and
metal prices sagged. Recapitalisation essential
LinQ Resources Fund took up challenge and
injected capital, new board and management
Rescue plan implemented by LinQ – focused on
new strategic initiative for potential early cash
flow
Slide 3
Zambezi Resources (ASX-ZRL)
Issued Share Capital 1220m Ordinary Shares
Hi / Lo $0.065 - $0.013
Current Price $0.021 (January 11th 2011)
Market Capitalisation $25.62m
Unlisted Options 1.85m @ £0.13 Expiry 31/3/11
3.08m @ £0.20 Expiry 31/8/11
136.25m @ $0.01 Expiry 0/11/12
5m @ $0.02 Expiry 5/5/13
30m @ $0.02 Expiry 31/5/13
Major Shareholders RBC Dexia Investor Services 26.1%
Southo Investments 5.33%
Glencore Investments 3.75%
Slide 4
Directors and Management
Willie Sweta MSc (Met) Dipl (Min Eng).
Chairman - Mwembeshi Resources Limited.
David Vilensky BA LLB. Non-Executive Chairman - Zambezi Resources
• Corporate and resources lawyer
Richard Procter BSc (Eng), MBA, CEng, MIMMM. Non-Executive Director
• 30 years global experience as Mining Engineer and Consultant
Pierre Malherbe BComm Investment Management; B.Comm Acc. (Hons);
M.Comm Business Management. Chief Financial Officer
Simon Durack B.Comm, Post Grad Dip Bus, CA, FCIS Non Executive Director
• Chartered Accountant and Company Secretary
Emmanuel Heyndrickz MSc Bus Econ MSc Fin Mngmnt
Non-Executive Director. Independent Financial Consultant
David Russell BSc Geology and Zoology, BSc (Special) Hons Geology,
MAusIMM, MGSSA, FFin, MAP and SMP (Wits Graduate School of
Business). Chief Executive Officer Zambezi Resources
Slide 5
Why Zambia?
Zambia has a long history of
mining and exploration, back to
early part of 20th century
Mining and exploration well
understood by the Government
Well established mining culture
prevalent and industry
encouraged by authorities
Excellent permitting system based
on Cadastral system
Fraser Institute ranks Zambia as
24 /41 countries globally in its
annual benchmark mining survey
of risk
Better than South Africa - 26/ 41!
Only 3 out of top 5 uranium
producing countries ranked higher
than Zambia in terms of risk
Nchanga Open Pit, Chingola
Nkana Open Pit, Kitwe
Slide 6
Zambia – Attractive Infrastructure
Power –
– Kariba Hydroelectric
scheme 1800MW,
reticulated directly to
Copperbelt
Water –
– Excellent supplies from
major rivers - Kafue,
Luangwa, Zambezi plus
Kariba Dam
Transport –
– Sealed road and rail links
directly to South African
and Tanzanian ports
Slide 7
Zambezi’s Copper and Uranium Portfolio
COPPER EXPLORATION PORTFOLIO
– Mwembeshi Resources - Kangaluwi- New assay
programme will potentially increase resource base up
from existing 23.4mt at 0.85% Cu (from only 25% of
existing strike)
– Cheowa (JV with Glencore) - resource base of 6.5mt
at 1.13% Cu
HARD ROCK – Chingola Dumps
– SX- EW processing of copper dumps is quickest route
to generating significant cash flow
URANIUM EXPLORATION PORTFOLIO
– Uranium portfolio of highly prospective, ready to drill
uraniferous targets
Slide 8
Re-precipitated Copper oxides at base of dumps
Slide 9
Kangaluwi Copper Project - Location Map
Slide 10
Typical landscape in Zambezi National Park
Slide 11
Zambezi’s Commitment to Kangaluwi
Since 2003 when licence granted to subsidiary
Mwembeshi Resources, Zambezi has spent over US$12
million on project
This has included extensive geophysical and geochemical
reconnaissance studies leading to delineation of the
Kangaluwi, Chisawa and Kalulu prospects
Prospects have been partially drilled by Diamond Drilling
and Reverse Circulation Drilling – over 50,000m drilling
Revised Resource Estimate to AusIMM JORC standards of
23.4mt at 0.85% Cu for around 200,000t contained Cu
Environmental Base Line studies initiated in 2006 along
with initial Consultation Process
Large Scale Mining Licence Application made in
December 2010
Slide 12
Additional assay results pending
Further assaying from
deeper drilling at
Kangaluwi remain
pending.
Will materially add to
the current Indicated
Mineral Resource.
Assays from the
Imboo prospect to be
conducted
Slide 13
Exploration Drilling
All diamond drilling core
and RC drilling samples in
storage in Lusaka
Commenced process of
submitting outstanding
samples for assay
Only 25% of strike has
been drilled
New assays may
significantly add to
resource base at
Kangaluwi
Slide 14
Staged process towards development decision
• Following grant of LSML, the next stage will be
conducting a Definitive Feasibility Study
• This detailed study will cover ALL aspects relating to
developing a mine and related infrastructure –
environmental, legal, technical, financial, social,
political issues
• All issues addressed to world’s best practice standards
(Equator Principles and World Bank Standards)with
emphasis on health and safety of Zambezi personnel,
contractors and sympathetic to all involved communities
• If this is positive and financing can be arranged the
intention would be to proceed to construct, commission
and operate a copper mine at Kangaluwi
Slide 15
Project Location and National Parks and Game management areas
Slide 16
Slide 17
Precedents for Mining coexisting with National
Parks
United States – Yellowstone National Park
Stillwater Platinum Group Metal Mine and Processing
facilities, owned by Nor’ilsk
South Africa – Kruger National Park
Palaborwa Copper Mine and Smelting facilities
Australia – Kakadu National Park
ERA Uranium mine and processing plant
South Africa – Kruger National Park
Exxaro Tshikondeni Coking Coal Mine
South Africa – Mapungbugwe World Heritage Site
Coal of Africa Vele Mine
Zambia – Lower Zambezi National Park
Chakwenga Gold Mine (closed 1940)
Slide 18
Mining Heritage at Chakwenga
Slide 19
Elephants at Palabora Copper Mine
“Fancy going to work and experiencing roaming animals as a common occurrence, what fun! Rio Tinto’s Palabora Mining Company
(PMC) is one such workplace which is close to the Kruger National Park (KNP) where inquisitive elephant bull came to visit”.
Source : SANParks website - Africa's Premier Wildlife Tourism Destinations
Slide 20
Elephants within RTZ’s Palabora Copper Plant
http://www.sanparks.org/groups/hr/news/2009/rio_tinto_adventure.php?PHPSESSID=udeinvcdabtm9fdmdiiujq7914
Slide 21
Kangaluwi overlay on Regional Geology
Slide 22
Globally Recognised Consultants used
ENVIRONMENT GeoQuest Consulting of Lusaka, to
conduct detailed environmental studies (EIS) and
incorporate all previous studies by GCS Consultants,RSA
RESOURCES Caracle Consulting of Lusaka has been
involved in the preparation of Resource Estimates (to
AusIMM JORC standards) for the Kangaluwi Copper
project
MINING CSA Global Resource, from UK, to conduct
Whittle Pit optimisation studies over the established
resources at Kangaluwi to establish the best pit design
METALLURGY Mineral Engineering Technical Services of
Perth, Australia to provide metallurgical Testwork on
Kangaluwi ore samples. Metallurgical Management
Services of Perth for Concentrator design
Slide 23
Kangaluwi Copper Prospects
Slide 24
Slide 25
Kangaluwi Copper Project
Adjacent to an EXISTING old mine - Chakwenga
Comprises multiple prospects in application area
» Kangaluwi
» Chisawa
» Imboo
» Kalulu
50,000m RC and diamond drilling confirmed structural
controls to sulphide mineralisation
Chalcopyrite, bornite, malachite and azurite
mineralisation intersected in multiple stacked shoots
Completion of priority assaying and JORC compliant
resource (23.4mt at 0.85% Cu )-Chisawa and Kangaluwi
only for 200,000t contained Cu
Slide 26
Kangaluwi Prospect Cross Section
Slide 27
Chisawa and Kalulu
Intersections up to 10m wide to depths of
150m of high grade copper mineralisation in
schist with pegmatite intrusives
Mineral zoning with bornite and chalcopyrite
dominant at depth
Strike of 4.1km at Chisawa and 1.3kms at
Kalulu. Remains open along strike at depth
At Imboo prospect mineralised zones up to 4m
wide with disseminated copper mineralisation
(chalcopyrite / bornite)
Slide 28
Chisawa Prospect Drill Section
Slide 29
Kangaluwi Copper Project
Prospect Measured Indicated Inferred Totals
Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade
(t) (% Cu) (t) (% Cu) (t) (% Cu) (t) (% Cu)
Kangaluwi - - 8,907,000 0.78 8,907,000 0.78
Chisawa - - 14,500,000 0.90 14,500,0000 0.90
Totals 8,907,000 0.78 14,500,000 0.90 23,400,000 0.85#
#For 199,265t Cu contained
Slide 30
Location – Conceptual Mine Site
Slide 31
From Resources to Mine Planning
Based on the initial Resource Estimation by
Caracle Consulting of Lusaka, Zambezi engaged
CSA Global as mining consultant
Conducted Whittle Pit Optimisation studies over
the Kangaluwi and Chisawa prospects
Prepared open pit mine design and scheduling
for open pits to operate at 1.5Mtpa
Prepared estimates for Capital and Operating
Costs, included manpower and site
infrastructure requirements
Concluded project is “financially viable
operation”
Slide 32
Proposed Mine Production Plan
To process 1.5Mtpa from open pit mines at Kangaluwi
using modern, environmentally approved metallurgical
processing as per existing Cu mines in Australia
Rock crushed and processed by flotation cells to
separate sulphide ore from waste rock. No cyanide used
Relatively benign reagents used at ppm level as flotation
agents. They breakdown in sunlight.
95% recoveries from ore to produce 14,000 tpa of Cu in
concentrate with small gold credit
Waste to properly constructed tailings dams (tailings are
only ground up rock with the Cu removed)
Dry Cu concentrate transported to smelter either in
Zambia or offshore to produce Cu metal
Slide 33
Conceptual Flowchart
Slide 34
Ranking of Copper Deposits by contained CuKangaluwi - Indicated and Inferred Mineral Resource
Rank Deposit Country Resources Mt Average Cu% Contained Cu Mt
1 Olympic Dam Australia 3810 1.00% 38.10
2 La Candelaria Chile 470 0.95% 4.47
3 Sossego Brazil 355 1.10% 3.91
4 Mantoverde Chile 630 0.53% 3.34
5 Igarape Bahia Brazil 219 1.40% 3.07
6 Salobo Brazil 256 0.90% 2.30
7 Ernest Henry Australia 166 1.10% 1.83
8 Punta del Cobre Chile 120 1.50% 1.80
9 Mina Justa Peru 209 0.86% 1.80
10 Prominent Hill Australia 119 1.30% 1.55
11 Cerro Negro Chile 249 0.40% 1.00
12 Madhan Kudhan India 66 1.50% 0.99
13 Kitumba (0.5% cut off) Zambia 87 0.94% 0.82
14 Teresa del Colmo Chile 70 0.80% 0.56
15 Kolinan Chandmari India 40 1.35% 0.54
16 Banwas India 30 1.70% 0.51
17 Sin Quyen Vietnam 53 0.91% 0.48
18 Guelb Moghrein Mauritania 24 1.88% 0.45
19 Raul Condestable Peru 25 1.70% 0.43
20 Osbourne Australia 11 2.90% 0.32
21 Mount Dore Australia 26 1.10% 0.29
22 Montecristo Chile 15 1.60% 0.24
23 KANGALUWI ZAMBIA 23.4 0.85% 0.20
24 Productora Chile 13 1.35% 0.18
25 Eloise Australia 3 5.50% 0.17
26 Stara Australia 7 1.90% 0.13
27 Cobrepampa Peru 4 3.00% 0.12
28 Mount Elliot Australia 3 3.60% 0.11
29 Kalkaroo Australia 30 0.28% 0.08
30 Tocopilla Chile 2 3.10% 0.06
31 Greenmount Australia 4 1.50% 0.06
32 Monterossas Peru 2 1.10% 0.02
33 Monakoff Australia 1 1.50% 0.02
34 Eliana Peru 1 2.70% 0.03
Only 25%
Kangaluwi drilled
Slide 35
Concluding Remarks
Mwembeshi Resources is a Zambian company
backed by Australian listed Zambezi
Resources
Utilised world class technical and financial
consultants to appraise all aspects of project
Mining Licence Application in progress and,
subject to successful outcome of all studies,
(technical, environmental, financial) the
project will proceed to development
Mwembeshi committed to maintaining highest
standards for project development
Slide 36
Competent Persons Statements
The information in this report that relates to Exploration Results is based on information compiled by Mr Jay Klopper BSc (Hons). Mr
Klopper has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Klopper consents to the inclusion in the report of the
matters based on the information in the form and context in which it appears.
The reported Mineral Resource as it relates to the Kangaluwi deposit was completed under the overall supervision and direction of
Jay Klopper, MAIG, who is a Competent Person as defined by the Australasian Code for the Reporting of Exploration Results,
Mineral Resources or Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion in this report of the matters based
on the information in the form and context in which it appears. The information in this report that relates to in‐situ Mineral Resources
is based on information provided by Zambezi Resources Limited.
The reported Mineral Resource as it relates to the Chisawa deposit was completed under the overall supervision and direction of
Boniface Nquni, MAIG, of Caracle Creek Consulting Zambia who is a Competent Person as defined by the Australasian Code for the
Reporting of Exploration Results, Mineral Resources or Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion
in this report of the matters based on the information in the form and context in which it appears. The information in this report that
relates to in‐situ Mineral Resources is based on information provided by Zambezi Resources Limited.
Qualifying Statement
This release may include forward‐looking statements. These forward‐looking statements are based on Zambezi’s expectations and
beliefs concerning future events. Forward‐looking statements are necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of Zambezi, which could cause actual results to differ materially from such statements. Zambezi
makes no undertaking to subsequently update or revise the forward‐looking statements made in this release, to reflect the
circumstances or events after the date of this release.
Slide 37