Members of the Minmetals Resources Limited group of companies (HKEx:1208) IZOK CORRIDOR PROJECT NUNAVUT MINING SYMPOSIUM Iqaluit, April 19, 2012 Overview.

Members of the Minmetals Resources Limited group of companies (HKEx:1208)

IZOK CORRIDOR PROJECT

NUNAVUT MINING SYMPOSIUMIqaluit, April 19, 2012

Overview of the Izok Corridor Project

[email protected]

MMG : a newcomer in Canada: Zinc Strategy

Project History

Major decisions made in 2010 and 2011

2012 Major Tasks

Overview of the Izok Corridor Project

High Lake

Izok

All season Road

Port and Shipping

IZOK CORRIDOR PROJECT Overview

MMG OPERATING MINES

Australia’s largest open pit zinc mine.

An underground mine that produces zinc, copper, and lead and precious metals concentrates.

A gold and copper operation that produces copper cathode and gold dore.

An underground mine that produces zinc, copper, lead concentrates, and gold dore.

Century (Queensland, Australia) Sepon (Lao PDR)

Golden Grove (Western Australia) Rosebery (Tasmania, Australia)

MMG Copper & Zinc Metal Production

Century

Golden Grove

Rosebery0

100

200

300

400

500

600

700

800

900

1,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Year

kt m

etal

in

co

nce

ntr

ate

Current Zn Planned Zn Potential Zn

Current Cu Potential Cu Anvil

Dugald

Slave

MMG Copper & Zinc Metal Production

Century

Golden Grove

Rosebery0

100

200

300

400

500

600

700

800

900

1,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Year

kt m

etal

in

co

nce

ntr

ate

Current Zn Planned Zn Potential Zn

Current Cu Potential Cu Anvil

Dugald

Slave

• Century Mine 500 t zinc metal in concentrate shutting down in 2016

• Dugald River to replace half of the zinc production lost from Century

• 40% of Izok Corridor total revenue comes form copper that aligns with Anvil copper mine

MMG wants to grow its zinc business based on strong price fundamentals:

Investigations into existing and potential operations

knowledge of supply and demand in China

MMG Zinc Strategy

MMG Zinc Strategy

IZOK CORRIDOR PROJECT Selected Option for Feasibility Study

Zinc and Copper Concentrate from both Izok and High Lake as the base business case: both needed for an economic project

One plant only for both mines: Mine and Mill at Izok, tailings at Izok

Satellite Mine at High Lake, crusher only no plant

Port at Grays Bays, storage shed, fuel storage and camp

All-weather Road – from Grays Bay to High Lake and Izok sites : 350 km

Transport concentrate by truck from Izok to Grays Bay. Concentrate from both High Lake and Izok ore

Trucks pick up crushed High Lake Ore on the way back south and bring to Izok for processing

Ships at the port from early to mid August to October only

NO year round shipping

IZOK CORRIDOR PROJECTProject History

DISCOVERY

• High Lake• Kennarctic Explorations discovered High Lake in the mid 1950 by

airborne reconnaissance; followed by drilling

• Dormant until 1991; Kennecott performed 2 years of further exploration

• Izok• Texasgulf Sulphur (Texasgulf) discovered Izok in the early 1970’s

through geophysical survey and drilling

• Acquired by Falconbridge in 1985, but no more work carried out until 1993 when it was acquired by Minnova (renamed Metall Mining Corp, then Inmet)


OWNERSHIP since 2000

Wolfden Resources

• 2001- acquires High Lake from Kennecott Canada Inc.

• 2006- acquires Izok from Inmet Mining Corp.

Zinifex

• 2007 -acquires Wolfden Resources

• Merged with Oxiana in 2008 to form OZ minerals

MMG

• Subsidiary of China Minmetals

• 2009 -Acquired OZ Mineral Assets except for Prominent Hill


STUDIES

• 1994 Izok - Feasibility Study by Bechtel/CESL. Port near Kuglutuk

• 1996 Izok - Feasibility Study (Luzok Project) by Bechtel. Process ore at Lupin

• 2001 Update 1994 Izok Feasibility Study by Bechtel/CESL; port at Bathurst

• 2005 High Lake & Ulu - Prefeasibility Study by Wardrop. Port at Grays Bay

• 2006 Preliminary Economic Assessment of High Lake by Wardrop

• 2006 Preliminary Economic Assessment of Izok by Wardrop

• 2008 Izok Prefeasibility Study by Hatch; Port at Grays Bay

• 2010 Izok Prefeasibility Study by AMEC; Port at Bathurst Inlet

• 2011 Izok/High Lake Prefeasibility Study by SNC; Port at Grays Bay

IZOK CORRIDOR PROJECT2011 What did we do?

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• Assessed all assets-sale of Ulu and Lupin to Elgin Mining in July 2011

• Commitment to continue exploration in other Nunavut properties

• Transportation Options Review• PFS Completed• MMG Kugluktuk Office and

Sponsorship Programs• Built a Core Team in Canada:

engineering, consultation, environmental, H&S in addition to the geology team.

• Re-Engagement with NIRB• 2012 Programs: baseline,

geotech, metallurgy, FS

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Transportation Study

MMG reviewed all the transportation options for combing the High Lake and Izok resources:

27 different alternatives, from slurry pipeline, truck to rail,

3 ports and

numerous winter road options

IZOK CORRIDOR PROJECT Feasibility Study – Key Milestones

• Start Feasibility Study Q1 2012

• Initiate Process with NWB and NIRB Q2 2012

• Commence Field Activities and consultation Q2 2012

• Complete Feasibility Study Q1 2013

• Investment Approval Request (IAR) Q2 2013

• Submit Draft Environmental Impact Statement Q2/Q3 2013

• Start EPCM Phase of Work Q3 2013

IZOK CORRIDOR PROJECT Proposed Schedule – best case scenario in a perfect world…

Potential construction start Q3 2015

Potential first ore processed Q1 2018

Potential first concentrate shipped August 2018

Mine Life (Izok) 12 years

Metal ProductionZn 2,038 kt (approx. 180 kt

pa)Cu 554 kt (approx. 50 kt pa)Pb 135 kt (approx. 12 kt pa)Ag 33.3 Moz (approx 2.8

Moz pa) Au 201 koz (approx 17 koz pa)

IZOK CORRIDOR PROJECTHigh Lake Camp

HIGH LAKE MINE

• Two Open Pits

– 3 Mt ore mined over 6 years

– Moderate grade sulphide ore, rich in zinc, with low

copper and neglible lead grades

• One Underground Mine


– Lower grade than open pit, moderate zinc and copper

grades and negligible lead

IZOK CORRIDOR PROJECT High Lake Minesite and Infrastructure

IZOK CORRIDOR PROJECT High Lake Minesite and Infrastructure

• Primary and possibly secondary crushing

• Maintenance facilities

• Warehouse and Laydown Areas

• Fuel storage

• Explosives storage

• Ventilation fans

• Dewatering infrastructure

• Electric power distribution infrastructure

• Shops, offices, warehouse, and camp connected by utilidors

• Diesel power generation – 7 MW

• Airstrip – compatible with Dash 8 aircraft or similar, located at Sand Lake, 10 km north of High Lake

• Water supply

• Water Treatment Plant and water holding pond

• Communications

• Explosives storage

• Fuel storage

IZOK CORRIDOR PROJECTIzok Mine Site

HAM LAKE EXPLORATION CAMP NEAR IZOK LAKE

IZOK CORRIDOR PROJECTIzok Mine Site – Getting to the Deposit- Summary

• The deposit is under Izok Lake. Izok Lake needs to be drained and a diversion channel built to maintain flow between Iznogoudh and Itchen Lakes

• Operation and closure : no negative effect on water quality and quantity of Iznogoudh and Itchen Lakes.

• The Izok Plant will process crushed ore trucked in from High Lake and ore from Izok

• Tailings from both High Lake and Izok concentrate milling, dry stack is the prefered concept

• Mine Waste PAG and NAG from Izok

• Camp, airstrip, roads, power generation, shops, explosive storage, fuel storage and other.

> 8

IZOK CORRIDOR PROJECT Izok Mine Site

Izok Mine

• 1 Open Pit, mined in 3 main phases


– High grade sulphide ore, rich in zinc, with moderate copper

and lead grades

• 1 Underground Mine


– Lower grade than open pit, moderate zinc and copper grades

and negligible lead

IZOK CORRIDOR PROJECT Izok Mine Site, Processing, and Infrastructure

Inukshuk Underground

Mine

Izok Open Pit Mine

Existing Lake Shore

IZOK MINING ISOMETRIC

IZOK CORRIDOR PROJECTRoad – all weather, 350km

• 350 km all-weather access road from Izok to Grays Bay

• Concentrate Haul from Izok to Grays Bay and transfer to storage shed

• On the way back south, pick up crushed ore at High Lake and haul to Izok for processing

• 14 km to extend to Tibbett-Contwoyto ice road

• Majority of resupply in summer via Grays Bay Port: fuel and supplies

• Proposed horizontal alignment based on air photo interpretation, contour data, and 3 seasons of preliminary field reconnaissance

IZOK CORRIDOR PROJECTRoad

VEHICLES

Concentrate and Ore Hauling

Sea Container Transport Fuel Resupply

ROAD TRAFFIC- PFS

• Assumed 330 days per year operation (weather, caribou)

• Concentrate and Ore Movement (120 tonne capacity)

– 11 truck-trips per day at 18 hours each round trip

• Diesel -tankers (60 tonnes capacity)

– 3 truck-trips per day

• Containers and Equipment-3 container tractor-trailers

– 3 truck-trips per day

•Convoys of two to five trucks being studied

-PFS

IZOK CORRIDOR PROJECTRoad

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IZOK CORRIDOR PROJECTPort

PORT SELECTION CRITERIA

•Maximum ice-free shipping window

•Greatest certainty of ice-free

shipping window

•Shortest distance to High Lake and

Izok Lake

•Deep water shipping routes

•Deep water dock

•Sufficient land for port

infrastructure

•Beach-head barge landing area

IZOK CORRIDOR PROJECTPort Infrastructure

• Concentrate shed with capacity to store 10 months worth of concentrate production

• 50 million litres diesel storage – steel tanks within bunds

• Dock and ship loader facility to accommodate 50,000 DWT bulk carrier ships-Sheet-pile gravity-based structure – as used in most north Canadian ports

• Lay down area for 2,500 containers (20 ft) and mixed cargo

• Camp, administration, and maintenance facilities

• Diesel power generation

• Sea-water desalination plan

IZOK CORRIDOR PROJECTPort Operation

• Concentrate trucked year round from Izok Mine to Port

• Three month shipping window (early to mid August to October) 4 to 6 ships, 3 trips each

• Alternative container supply route - barge via Mackenzie River

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IZOK CORRIDOR PROJECTShipping

PROPOSED SHIPPING ROUTES

Members of the Minmetals Resources Limited group of companies (HKEx:1208) IZOK CORRIDOR PROJECT NUNAVUT MINING SYMPOSIUM Iqaluit, April 19, 2012 Overview.

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