Geometallurgy: 'No Surprises' when Mining

and Processing Olympic Dam Ore

SA Explorers Conference
30 November 2007
Kathy Ehrig
Principal Geometallurgist (Olympic Dam Expansion Project)
 Disclaimer
The views expressed here contain information derived from publicly
available sources that have not been independently verified. No
representation or warranty is made as to the accuracy,
completeness or reliability of the information. Any forward looking
information in this presentation has been prepared on the basis of a
number of assumptions which may prove to be incorrect. This
presentation should not be relied upon as a recommendation or
forecast by BHP Billiton.
Nothing in this release should be construed as either an offer to sell
or a solicitation of an offer to buy or sell shares in any jurisdiction.

Olympic Dam Expansion Project

Page 2 30 November 2007
 Geometallurgy: 'No Surprises‘ when Mining and Processing
Olympic Dam Ore
• Selection Phase Drilling
• Olympic Dam Resource Update
• Geometallurgy Program Update

Olympic Dam Expansion Project

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 Olympic Dam Fe-oxide Cu-U-Au-Ag Deposit

‘fresh’ Roxby Downs Granite

weakly brecciated/altered
Roxby Downs Granite

hematite breccias

Olympic Dam Expansion Project

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 Selection Phase Drilling (Jul 2005 – Dec 2007)
RC (m) Diamond (m)
Surface ~210,000 ~396,000
UG - Expansion - ~18,000
UG - Operation - ~186,000
Total Drilled ~210,000 ~600,000

Olympic Dam Expansion Project

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 Olympic Dam Mineral Resource 2007*
Tonnes Cu U3O8 Au Ag
(Mt) (%) (kg/t) (g/t) (g/t)

Measured
Measured 2006
2006 680
680 1.50
1.50 0.50
0.50 0.50
0.50 3.10
3.10

Measured 2007 1311 1.16 0.36 0.34 2.37

Indicated
Indicated 2006
2006 1360
1360 1.10
1.10 0.40
0.40 0.40
0.40 2.40
2.40

Indicated 2007 3129 0.85 0.29 0.28 1.65

Inferred
Inferred 2006
2006 2400
2400 0.90
0.90 0.30
0.30 0.50
0.50 1.90
1.90

Inferred 2007 3298 0.78 0.26 0.31 1.27

Total
Total 2006
2006 4440
4440 1.05
1.05 0.36
0.36 0.47
0.47 2.24
2.24

Total 2007 7738 0.87 0.29 0.30 1.61

*The above 2007 data have been previously released and are extracted from the BHP Billiton – Annual Report 2007.
The information contained in this statement relates to the Mineral Resource estimation for the Olympic Dam Deposit is based on information compiled by S O’Connell who is a member of the Australasian Institute of Mining and
Metallurgy and S Hayward who is a Member of the Australian Institute of Geoscientists, both are full time employees of BHP Billiton. S O’Connell and S Hayward both have sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Shane O’Connell and Stuart Hayward consent to the inclusion in the statement of the matters based on their information in the form and context in which it appears.

Olympic Dam Expansion Project

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 World Copper Deposits
Copper Metal (millions of tonnes) World Copper Deposits

120 112

96
100
86
80
68
58
60
43
40 33 33 32 32

20

0
EL TENIENTE

ESCONDIDA

GRASBERG
OLYMPIC DAM

OYU TOLGOI
CHUQUICAMATA

ANDINA

NORILSK

LUBIN

COLLAHUASI
Sources: Company Annual Reports and press releases (as at September 2007). Compiled by Richard Schodde
Olympic Dam Expansion Project
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 World Uranium Deposits
Uranium Oxide (millions of tonnes) World Uranium Deposits

2.5 2.23

2.0

1.5

1.0

0.5 0.34
0.22 0.21 0.18 0.16 0.16 0.15 0.15 0.15
0.0

STRELTSOVSKOYE
ELKONSKY GORSK

MCARTHUR RIVER

MYNKUDUK

IMOURAREN
OLYMPIC DAM

CIGAR LAKE
JABILUKA
ROSSING

INKAI

Sources: Company Annual Reports and press releases (as at September 2007). Compiled by Richard Schodde
Olympic Dam Expansion Project
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 World Gold Deposits
World Gold Deposits
>1,100

Gold Metal (millions of ounces)

138
140 126
120

100
81 78
80
61
60 48
40
40 33 32

20

0
U

r)

A
r)
P

r)
r)

NT
G
LK
AM

pe
TA

pe

pe
pe

HI
O

O
IL

LI
op
op

p
op

TA
UN

M
C

Co
O

EW
(C
(C

(C
D

NA
UR

KH

I(
AN

E
RG

-N

O
M

SU
BL

DA
R

LG
BE
RS

N
B

TO
I
C
PE

RL
AS
E

PI
AT

YU
CA
M
R
G
W

LY

O
IT

O
W

Sources: Company Annual Reports and press releases (as at September 2007). Compiled by Richard Schodde
Olympic Dam Expansion Project
Page 9 30 November 2007
 Size and High Grade
160
6.26% Cu Equivalent

Copper Metal (millions of tonnes)

140
Cu Only
2.36%
120

100

80 0.71%
1.39% 0.64%
0.89%
60
2.6% 0.78%
40 0.79%
4.87%
20

0
Norilsk

Escondida

Andina / Los
Lubin

Fungurume
Grasberg

Collahuasi
Olympic Dam

El Teniente

Chuquicamata

Bronces

Tenke
Based on 2003 published resource figures, June 2007 Olympic Dam Resource, and Brook Hunt data

Commodity Price assumptions : (June 2004 US$ numbers) $0.85/lb Cu, $3.25/lb Ni, $7/lb Co, $3/lb Mo, $18/lb U3O8,
$300/oz Au, $400/oz PGE and $5/oz Ag, with adjustments for recoveries and treatment & refining charges

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 Reportable Resource vs Total Model

>90%

Total Within Pit

Mineralisation
Olympic Dam Expansion Project
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 Major ‘Rock Types’ within the Olympic Dam Breccia Complex
• Continuum of ‘rock types’: RD Granite → barren hm-qtz breccias
• increasing intensity of Fe-oxide alteration/mineralisation
• increasing number of brecciation events
• chemical basis for ‘rock type’ categories
• decr. ‘granitic’ component

GRN
(GRNB) GRNL
GRNH
HEMH
(HEM) HEMQ
Olympic Dam Expansion Project
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 Felsic, mafic, and ultramafic dikes and volcaniclastics

Olympic Dam Expansion Project

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 Major ‘Rock Types’, Density, and Iron Relationship
'Southern Mine Areas' (Mine Area E Drilling to Aug04)
70
HEM
60 >= 55% Fe

50
HEMH
Fe (wt%)

35-<55% Fe
40

30 GRNL
20-<35% Fe

20
GRNH
5-<20% Fe
10
GRNB
0 <5% Fe

2.5 3.0 3.5 4.0 4.5

Density (g/cm3)

Olympic Dam Expansion Project

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 Geometallurgy Program Update
• Mining and processing Olympic Dam ores has shown that simple,
and quantifiable, relationships exist between in situ ore chemistry,
mineralogy, and metallurgical properties.
chemistry ↔ mineralogy ↔ metallurgical properties

• The Olympic Dam Expansion Project Geometallurgy Program is

structured to define and quantify the links between chemistry,
mineralogy and metallurgical properties.
– Ore Characterisation Program
– Metallurgical Testing Program

Olympic Dam Expansion Project

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 Ore Characterisation Program
• chemistry ↔ mineralogy
• 6000 x 15m composites of ¼ cut NQ diamond core (QA/QC 2%).
• Samples selected from drill holes located on ~150x150m spaced
grid over the entire length of hole.
• Composites crushed to -1.7mm, rotary spilt into ~3kg charges,
‘head’ sample selected, another charge screened down to -38µm.
• ‘Head’ sample: measure all elements which may impact on metal
extraction.
• -600+425µm fraction: assay and quantitative mineralogy via MLA

Olympic Dam Expansion Project

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 Metallurgical Testing Program (GEOMET and Design)
• chemistry ↔ mineralogy ↔ metallurgical properties
• 20 HQ diamond drill holes for metallurgical testing which represent
all possible ‘ore types’.
• 500 x 15m drill core composites selected to represent likely ‘ore
types’ with Cu > 0.2wt% (inc. 50 QA/QC samples).
• Comminution: SMCC, BWI, Abrasion Index, and JKDW tests.
• Kinetic rougher and cleaner flotation and locked cycle tests.
• Uranium leach and acid consumption tests.
• Settling/Rheology Tests
• Quantitative mineralogy (via QEMSCAN) and detailed chemical
analysis on size fractions of flotation concentrates, flotation tailings,
tailings leach residues, and concentrate leach residues.

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 Geometallurgy Program Outcomes
• Validation of ‘prediction of mineralogy’ from routine drill core
assays.
• Recovery = ƒ(mineralogy, grade, ore texture, process conditions)
– Mill Throughput
– Cu-Flotation Recovery
– Uranium Recovery
– Acid Consumption
– Settling/Rheology Characteristics
– Smelter Feed (i.e. concentrate grade, tonnages, mineralogy)
• Each resource block (~8 million @ 30x30x15m) has detailed
chemistry, mineralogy, and predicted throughput/recovery.

Olympic Dam Expansion Project

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 Thoughts to Conclude
• Designing for ‘averages’ does not produce average results.
• Representative samples aren’t …, but representative distributions
are …
Density Distribution in 15 yr Pit
100
90

% Cumulative Frequency
80
70
60
50
Cu>0.15% Cu>0.5% Cu>1.0%
40 d10 2.81 2.91 3.02
d20 2.89 3.01 3.12
30 d25 2.92 3.05 3.15
20 d50 3.13 3.26 3.35
d75 3.40 3.50 3.58
10 d80 3.47 3.57 3.65
d90 3.67 3.73 3.79
0
2.5 3.0 3.5 4.0 4.5
3
Density (g/cm )
>0.15% Cu >0.5% Cu >1.0% Cu

Olympic Dam Expansion Project

Page 19 30 November 2007