ENERGY AND MINERALS AUSTRALIA LIMITED Audio Webcast

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ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	EMA - AMEC Investing In Mining Stocks- Mr Chris Davis, Managing Director Mon, 17 Nov 2008 04:00PM
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ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)

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ENERGY AND MINERALS AUSTRALIA LIMITED (EMA) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/NSW
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Mon, 17 Nov 2008 04:00PM	EMA - AMEC Investing In Mining Stocks- Mr Chris Davis, Managing Director
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Fri, 26 Sep 2008 01:00PM	EMA - AMEC Investor Briefing: Developing Mulga Rock- Mr Chris Davis, Managing Director
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Tue, 2 Sep 2008 01:45PM	EMA - AMEC Investor Briefing: Investing in Mining Stocks - Mr Chris Davis, Managing Director
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA) Results Confirm High Grade Uranium & Base Metal Intersections	Tue, 17 Jun 2008 05:15PM	EMA - First Assay Results Confirm Mulga Rock Strategy - Mr Chris Davis, Managing Director
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Wed, 28 May 2008 03:45PM	EMA Lists on the ASX - Mr Chris Davis, Managing Director
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Wed, 28 May 2008 03:00PM	2008 AMEC National Mining Congress - Developing Mulga Rocks - Mr Chris Davis, Managing Director, Energy and Minerals Australia
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Thu, 20 Nov 2008 01:30PM 10:30AM Australia/West	Annual General Meeting BankWest Tower, 108 St George's Terrace, Perth, WA
ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)	Wed, 15 Oct 2008	Full Year Results
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ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)

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PRESENTATION BY CHRIS DAVIS, MANAGING DIRECTOR OF ENERGY AND MINERALS AUSTRALIA LIMITED (EMA)

“AMEC Investor Briefing:  Investing in Mining Stocks”

http://www.brr.com.au/event/50842

 

TUESDAY, SEPTEMBER 2, 2008, 1:45 PM.

 

            EMA     Ladies and Gentlemen, thank you very much for allowing me to present to you this morning.  I’m going to be talking this morning about Energy and

10                    Minerals Australia or EMA, stock code EMA, and the main asset of EMA, Mulga Rock.

 

                        EMA listed on May 23rd this year, the same day as AMEC had their annual congress and I presented on the morning we listed and it was a very

15                    successful listing.  I think one of the reasons for the successful listing was the take-up on the interest with AMEC. Okay, so when we listed and we…40  cents share, right now we’re standing at 35.5 cents.

 

                        I’m going to be talking today about an exploration target range, the resources

20                    at Mulga Rock before the JORC calculations were started in the middle 80’s, JORC (Joint Ore Reserve Committee).  What am I going to be talking about is… was done about five years before that.  I have to call it a target, but this is a target like you have in the center of a dart board in a pub.  There are 1,600 holes into Mulga Rock.  The resource work was done using 500 holes,

25                    60% of them diamond.  So, we have a lot of information about Mulga Rock.

 

                        Okay.  So what have we got?  We have the target date or the time it was estimated by PNC. PNC was a company owned by the Japanese government formed in the 70’s after the oil crisis to go looking for uranium.  They found it

30                    on the Malibu plain and they found a very large resource, 46,500 tonnes at 1100ppm eU3O8.  At the present time, Coffey Mining, used to be known as RSG or RSG Global, they’d calculated the JORC Resource that’s due in November.  That 46,500 tonnes makes the MRD, the Mulga Rock Deposits or MRD, the largest Australian uranium deposits outside Rio and BHP. They’re

35                    also be worth on noting at this point in time that we have base metals as well.  It’s a very well endowed, very unusual.  It doesn’t appalling metallic-like, some other ones like (inaudible) (00:02:50) in the northern territory which are complex polymetallics.  We have nickel, cobalt, zinc, copper, vanadium, all freely available hosted in the same zones.

40

                        Okay, this is a graph showing all the uranium resources in Australia.  Starting off with… you have Olympic Dam you’re pretty aware of…they have 2 to 25 million tonnes of yellowcake.  Ranger/Jabiluka have a 25 million so they’re off the graph, then you come down to ones that are there on the graph. 

45                    Yeelirrie, which is owned by BHP, it’s a (inaudible) (00: 03:32) basically, it’s kept in the coat cupboard for when they want to develop it after Olympic Dam. We’ve put here….. some of you probably hold Paladin stock.  They’ve developed the Langer Heinrich mine in Namibia.  We’ve put it here because we’re about the same size as Langer Heinrich, they’ve got 47, we got 46.5 but their grade is 620 parts per million,  we’re 1100.  Grade in mining, grade is always king.  As you come down in size then, you would’ve heard of Kintyre which was recently sold by Rio to Cameco, the big Canadian uranium company; and Mitsubishi, the Japanese trading house that was sold for over

5                      $0.5 billion; then there’s 4 Mile, which is he extension to Beverly, Mt. Gee in South Australia.

 

                        Now the interesting thing was that with this graph, Kintyre was sold…..the first announcement was just before the uranium conference in Fremantle about

10                    six, seven weeks ago, and at the conference one of the Japanese trading  houses came up ahead one of these as an A3 printout and he put his armor over everything from Koongara that way saying that while these smaller ones can actually produce uranium, the Japanese government currently uses 10,500 tonne a year of yellowcake. They have to stop providing 15,000

15                    tonnes of yellowcake.  Currently, they’ve got 55 nuclear reactors in Japan, they’re building it up to 22.  The trading houses are being told to go out and lock up strategic resources of uranium so they’re looking for large ones.  Now if you have got….if you’re down here below 10,000, you can actually get a mine started but it isn’t going to be a long-term mining, it isn’t what the

20                    Japanese know as strategic, which is something which is going to be there in 20 or 30 years.  So they said, they’re looking at anything to the left of Koongara.  Now, when you look at Koongara it’s owned by Areva, the big French Nuclear Company, but that’s in Kakadu National Park.  To the left of that you have Beverly, which was the operating mine that was just given

25                    permission to extend two days ago, but that’s 100% owned by General Atomics, a private company from the US, that isn’t going to Japan.  To the left of that, then again, is Westmoreland.  That’s probably available, that’s up in the Queensland. Valhalla is in Queensland. Valhalla is mostly (inaudible) (00:06:34) high cost, difficult to extract.  That’s owned by Summit in Paladin. 

30                    Mt. Gee, you’re pretty all aware of, in South Australia owned by Marathon that’s been having a few issues recently with the government, and then Four Mile, 75% owned by General Atomics again, the same people as Beverly and it’s unlikely that any of that will go to Japan.

 

35                    So, when look at what the Japanese can go after…. I’ve got a lot of Japanese friends at the moment who are looking at investing strategically in Mulga Rock for the long term.  Now, I’m sure a lot of you have heard that Alan Carpenter. the current Premier of West Australia has promised, threatened, what everyone call it, to pass a law very soon to make the mining of uranium

40                    in the West Australia illegal but he still has to get in. I’ll those raise my glass another floor, and once he gets back in, we have to understand how Martin Ferguson and a few of the other Federal Labor Cabinet again think of Alan Carpenter, as well.

 

45                    Anyway, I like looking at that graph because it does show how big we are and we’re going to get bigger.

 

                        Okay, we’re not using those numbers.  If you take all the undeveloped uranium in the northern territory added up, it’s things like Koongara, Angela, Pamela, (inaudible) (00:08:07) add them all up, they’re about the same size as Mulga Rock.  The Japanese understand that while the northern territory is a great place to be able to mine uranium, first you got to have some to mine, and what they’re saying is Mulga Rock is the same size as all the

5                      undeveloped uranium in the northern territory.

 

                        Where are we?  Okay.  Kalgoorlie, some of you may have heard of Tropicana, the big gold project owned by AngloGold Ashanti and Independence.  That is…. there’s a whole group of tenements to the east of

10                    us.  We have two grassroots exploration tenement  blocks, about 50 to 100 km north of our main area.  Those are about 2,200 grassroots paleo-channel.  interesting but the same as all the other exploration companies still going to be looked at.  Our main interest is now in Mulga Rock.  Right from this slide, it’s really interesting to note what 250 km northeast to Kal, Kal is a very good

15                    resource for everything to do with mining, gaskets and pumps and grease and all sort of exciting things.  We’ve got AngloGold Ashanti as a neighbour, they look after roads really well.  We’re close to infrastructure and rail.  The Trans-Australian railways is 120 k south of us.  When we’re mining uranium, we’ll be using about 2,000 tonnes of yellowcake a year.  You put 20 tonnes in

20                    a container that’s 100 containers a year, that ‘s too weak.  That’s not very much.  But what we can do is bring it south on (inaudible) (00:09:40) roads, two sidings on the railroad here which is…Trans-Australian railway is licensed to carry yellowcake. You can take it east over to South Australia, two ports in Australia which are permitted to export uranium, Adelaide and Darwin, both

25                    used by Olympic Dam and by Langer.

 

                        Okay.  Just looking at that… this shape here turns into this shape here.  The total area is called the….is our Narnoo project. Within it we have the MRDs (Mulga Rock Deposits).  These were found by the Japanese. These two,

30                    Emperor and Shogun, were found in 1980 to 84.  They’ve done a hell of lot of work on those two, and then the Australian geologist drilled a hole for (inaudible) (00:10:11) near the camp, came back and saw a fine 5% uranium.  There was a sudden refocusing of attention, that was Ambassador which is the highest grade.  Average grade 17,000ppm eU, which is about 2,000 ppm

35                    eU3O8, has holes in there up to 1.2%, actually there’s a hole of 5% small intersection, but the point to make on here is we’ve got 46,500 in the dark, red shapes.  The Japanese also identified using grab samples and very shallow auger drilling.  They identified a lot of other expressions of uranium but they didn’t follow up.  They have been told to find 2,000-tonne a year for

40                    20 years, so it’s about 40,000 tonnes, they found 46.5 thick. They were told to run the assay for uranium.  Same as any boom, when people were looking for nickel in the 60’s and 70’s they only assayed for nickel.  In the gold boom of the 80’s they only looked for gold so the Japanese only assayed  for uranium.  Out of that 1,600 holes only 10 were assayed for anything but uranium.

45

                        Now, this is the model of what we have. The uranium is hosted in (inaudible) (00:11:48) between 40…it’s a 5-meter seam, flat as a top, goes for miles. We’ll show you how many miles in a minute, 5 meters thick.  The top meter is also rich in base metals.  Below that we have sandstones which are also hosting uranium and base metals. So it’s a very rich sequence of material.  They assayed 10 holes for anything but uranium.  Most of those 10, they’ve got interest in grades like 1.2% nickel, 0.2, one over here 2%, we drill the hole, we went through, we can believe this….we drilled another hole around

5                      here somewhere in January.  We came up with… in a top meter, it’s the top meter we’re talking about and not top at there. Now, top meter, we came up with 1% nickel, 1% copper, 0.4% cobalt, 0.8% zinc, and 4% vanadium.  Sounds incredible but this is the reality of Mulga Rock.  So, what we’re going to be doing very soon is we’ll be drilling a few holes for uranium, then we’re

10                    going to pound the hell out of it for base metals.

 

                        Okay, this was a bulk sample pit that the Japanese excavated in the late 80’s, early 90’s.  This is  11 years after it was dug, just shows how… it’s all free dig, no drilling blast, but it’s quite competent.  This is it after 11 years.

15

                        We’ve done some preliminary metallurgical testwork because with all these things, if people think about lateritic nickel and things it’s how the hell do you get it out the laterite, it’s that first thing.  Hours and days of freight comes out immediately. Even in 2% acid we’re getting +80%.  At 25° C in 2% acid we’re

20                    getting +80% recovery in less than 12 hours.  The nickel and cobalt we’re getting 50 to 60% recovery in less than 12 hours.  Recovery into solution isn’t the problem.  We’re not going to have crushing, draining, floatation, we’re going to have a great, big chemistry lego set with a whole lot of tanks and polymers reverse osmosis types, have lots of chemistry things really because

25                    it does really have some solutions.  It isn’t complicated.

 

                        Okay, progress this year.  The company floated in May.  We hired a general manager geology and exploration we call Simon Fleming.  He was working for Paladin in Mt. (inaudible) (00:14:38) in the Valhalla on scale. He came

30                    over to us immediately because he knows us… an interesting project.  He’s hired six geologists, have started in the last four weeks, all with expertise on sediments not on hard rock because this is all to do with layers…young stuff sediments.

 

35                    We have Coffey’s working on the JORC Resource. We’ll have a JORC Inferred Resource by the end of the year, I’m hoping in November, which we believe we’ll be bigger than that 46.5.  We’re establishing a permanent camp because we’re 250 km east of Kalgoorlie and however much I may joke about it, it’s Club Med.  It can get fairly tough fairly soon, and so we need

40                    somewhere the people can actually live out there, not just go out and then swag in the sand.

 

                        We’re going to start drilling by the middle of September with 33 large fermented diamond drill holes down for twinning.  We have no sample from

45                    the 80’s so Coffey’s is part of their JORC work.  They have to be able to actually see some physical material.  So, we’re 33 holes with large diameter so they can see that.  We immediately then moved on to aircore.  The aircore… not even the diamond drill holes are cheap because we go open hole from surface to 38 meters, from 38 end to 60 we core, that’s 200 buck a meter for that 22 meters, but then we move after this first 33 holes, we move over to aircore which is only 20 bucks a meter.  Now that allows us to get base metal results, we can’t get uranium results from it.  Some of you may have heard of gamma probes which actually measure gamma rays and once

5                      you’ve opened the hole up with the aircore you can put the gamma probe down and you can get an eU. Some of you may have seen eU3O8 which was a derivative from the gamme using a thing called (inaudible) (00:16:41) to come with a uranium grade. 

 

10                    So we have 1,600 holes out there wherein they’ve all been rehab very assiduously by the Japanese.  So, we’ve got to go around and dig them all out again and open them all up, and we’ll be “gammaring” as many of those.  We’ve already got 300 opened, and we continue to open more holes so we’re “gammaring” the old holes and then the new holes that we’re drilling in.

15

                        Okay we have a board.  Every Board’s got to have an accountant and a lawyer so we’ve got one of each.  One is the Chairman, Phil Golding.  Stephen Penrose is a lawyer, terrific guy.  I’m Mining Engineer, thank you, Sonia.  Mike Fewster is a geologist, he’s the guy who hit mine work in Alabor

20                    since 1983, and he and I were looking for lignite back in the early 80’s.  We found 2 billion tonnes out there. I figured that was enough and left.  He stayed because he thought it was an interesting place to be which is…. it’s a bit a comment about really the social life that Alabor’s an interesting place to be.

 

25                    Anyways, Mike’s been out there. You got to give him for persistence and he circled the tenements. There was one area in Alabor he couldn’t go and that was where the Japanese were, and they dropped it in the year 2000.  He pegged it immediately so invented it into EMA,

 

30                    Okay, we have Simon Fleming, I’ve mentioned earlier.  They’re a country I’ve worked with (inaudible) (00:18:11)  He and I both developed the Paulsen’s gold mine which was owned by Intrepid Co. when they did the merger with Emperor. Then Colin Woolard and Mark Sonter, both worked on the development of Olympic Dam back in the late 60’s, early 70’s, and I’ve known

35                    them both for some time. They both want to be involved in an interesting project and came over.

 

                        In conclusion, what have we got?  We have large valuable strategic assets.  This isn’t just going to be a little mine that goes on for five years then shuts

40                    down, Mulga Rock is going to be there in 30 or 40 years time.  This is a big area.  We have terrific grades of uranium, and we have got growth potential both from uranium and from other streams. Now that’s who I am.

 

                        Now, here’s an interesting thing for those of you who are interested in

45                    reducing carbon dioxide emissions.. The mining at Mulga Rock go right for the bottom line, you don’t have to mine 640 million tonnes, we’ve got 46,500 right now, and it’s only going to get bigger.  Right now, by mining Mulga Rock …and this is what Alan Carpenter wants to avoid …by mining Mulga Rock, you can get the power out of not mining 640 million tonnes of black coal which would release 1.4 billion tonnes of CO2 in the atmosphere.  That’s the same approximately as the entire world’s airline fleet for two years.  That’s the benefit of mining uranium.  Uranium has carbon emissions in a full-life cycle less than wind power. It is essential to countries which are not as

5                      prosperous as Australia such as Japan, such as China, Vietnam, Egypt,. These are countries that haven’t got the same natural  resources as we have.  They’ve decided to go for nuclear power, we should not stand in their way like an imperial or colonial power.

 

10                    Thank you very much for listening to me.

 

PRESENTATION CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

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