The REKO DIQ project

REKO DIQ - LANDSAT IMAGE

 THE REKO DIQ PROJECT

Drill tested to Resource status

Bukit Pashir
3 1-7 drillholes each - more work
required
Camp New targets - not yet drill tested
Western
Porphyries H4 Resource
33 Drill Holes
North Koh I Dalil
1 Drill Hole 1 Drill Hole Possible second supergene resource)
Inferred Resource
2
730Mt @ 0.6% Cu
and 0.4g/t Au 35
4 Drill Holes
at 0.5% Cu cut-off 10
Koh I Dalil
Sam Koh
46 Drill Holes
8 1 Drill Hole
7 Drill Holes 3 Drill Holes
7 1 Drill Hole
27 Parrah Koh
9 3
0 1km 2 Drill Holes 36
5 Drill Holes
H4 PROJECT - LEACHED CAP

The light-coloured material in the

middle ground is the H4 Leached Cap
H4 - DRILL HOLE LOCATION PLAN
H4 - CROSS SECTION
H4 - LONG SECTION
 H4 pre-feasibility study

Indicated Resource: 94mt @ 0.73% Cu, cut-off 0.3% Cu

Mining, Metallurgy, Capital and Operating Costs

Probable Reserve: 78 mt @ 0.7% Cu, cut-off 0.3% Cu

SX-EW bacterial heap leach operation:
– 5-8m tonnes ore pa for 40,000 t copper metal pa
– Strip ratio LOM - 1:1
– Cash cost of production - 48c per pound copper
– NPV(10) = US$73 million
– Internal Rate of Return = 21% (ungeared)
– Average annual after tax cashflow (ungeared) = US$30m
– Copper price assumption: 90c per pound, LOM

Upside: capital costs, recoveries, grade, ore extensions
 THE REKO DIQ PROJECT

Western Drill tested to Resource status

1-7 drillholes each - more work

Porphyries3 required

New targets - not yet drill tested

Camp
33 Drill Holes
North Koh I Dalil
1 Drill Hole 1 Drill Hole Possible second supergene resource)
Inferred Resource
2
730Mt @ 0.6% Cu
and 0.4g/t Au 35
4 Drill Holes
at 0.5% Cu cut-off 10
Koh I Dalil
Sam Koh
H446(Supergene)
Drill Holes
8 1 Drill Hole
7 Drill Holes 3 Drill Holes
7 1 Drill Hole
27 Parrah Koh
9 3
0 1km 2 Drill Holes 36
5 Drill Holes
WESTERN PORPHYRIES - plan view
WESTERN PORPHYRIES - cross SECTION
WESTERN PORPHYRIES
 WESTERN PORPHYRIES
• Inferred Resource: 730 million tonnes @ 0.6%
copper and 0.4g/t gold

• Metal Contained in Inferred Resource: 4.4 million

tonnes copper and 9 million ounces gold

• Estimated Global Resource for Reko Diq System:

more than Three Billion Tonnes of mineralised
material, containing possibly 18 million tonnes
copper metal and 35 million ounces of gold
(based only on known mineralised porphyry
systems)
 FINANCING OFFSHORE PROJECTS

WHY DO IT?

WHY IS IT SO HARD?

SOURCES OF FINANCE

THE ETHICAL DIMENSION

THE REWARDS
 The kalgoorlie formula

Share Price = f[1/(distance from

Kalgoorlie)2]
YILGARN
CRATON

Gold - in lots
of small
deposits

Nickel - in lots
of small
deposits

The Classic Australian Junior is a gold or
nickel play in Western Australia

Australian investors have made money in
Australia - and seen it lost outside Australia

Australia is a great mining country - local
punters want their speculative funds spent in
country

For a brief period in the 90’s the ASX funded
global exploration - that is now over.

There is still money available for
Australian mining exploration and
development (Mincor raised $29m in 3
months to buy the Miitel Nickel Mine)

But significant capital is not available,

from the Australian Market, for offshore
mining development.
“I wasn’t going to touch Mincor - I
thought you were just going to put all
your money into Pakistan”

“I think you really need to make people

realise you are not going to fund Pakistan
out of your Miitel cashflows”

Actual quotes: two Australian

stockbrokers
“You should keep Reko Diq in Mincor, add
the copper development to your
existing nickel production, size is so
important these days, look to becoming
a mid-cap international base metal
company”
Actual quote: London Stockbroker
“Just get out there and drill the f…..
thing!”
Actual quote: Shareholder
 early reko diq financing

Modest seed capital raising, Oct 2000 (A$1.6
million, A$400,000 from Mincor, the rest from
Australian, English and Pakistani investors, and
Mincor directors)

Spent A$700,000 turning vaguely defined copper

zone at H4 into a Probable Reserve.

TCC - 52 million issued shares, 24 million options,

14 shareholders

Next step - Offshore Listing to raise US$7 million

 FINANCING OFFSHORE PROJECTS

WHY DO IT?

WHY IS IT SO HARD?

SOURCES OF FINANCE

THE ETHICAL DIMENSION

THE REWARDS
 Sources of capital

World Bank (Mining Division of the
International Finance Corporation)

Asian Development Bank

Japanese metal houses

Commonwealth Development Corporation

Major Mining Companies

Private Equity - niche markets (Pakistani
capital)

Pre-feasibility = Equity
FINANCING OFFSHORE PROJECTS

WHY DO IT?

WHY IS IT SO HARD?

SOURCES OF FINANCE

THE ETHICAL DIMENSION

THE REWARDS
 The ethical dimension

THE NATURAL
ENVIRONMENT POVERTY
ALLEVIATION
 FINANCING OFFSHORE PROJECTS

WHY DO IT?

WHY IS IT SO HARD?

SOURCES OF FINANCE

THE ETHICAL DIMENSION

THE REWARDS
 THE REWARDS

The Witwatersrand
The Tethyan Belt

Broken Hill & Mount Isa
The Zambian Copper

The Andean Copper Belt Belt

The Sudbury Nickel District
The East and West

African Goldfields

The Yilgarn Craton

The Bushveld Complex
 H4 Value Curve

Indicated Resource
List on AIM of LSE
Completed Bankable
Value Feasibility Study Risk
Pre-Resource List on Main Board
Seed Financing of LSE

Discovery

Exploration Stages - Discovery to Production

 Western porphyries Value Curve

Western Porphyries Project

H4 Project Value
 Total Reko Diq Value Curve
Total Reko Diq Resource

Western Porphyries Project

H4 Project
 Mincor shareholders
IF TCC SUCCESSFULLY LISTS ON AN OFFSHORE MARKET:

Distribution of Mincor’s shares in TCC, to

Mincor’s shareholders

Mincor will not create a ‘pyramid’ holding

structure

Shareholders retain exposure through

their TCC shares to on-going development
of a major base metal play.