anglo american group exploration - association of...

ANGLO AMERICAN

GROUP EXPLORATION

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constitute a recommendation by Anglo American or any other party to sell or buy shares in Anglo American or any other securit ies. All written or oral forward-looking

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those regarding Anglo American’s financial position, business and acquisition strategy, plans and objectives of management for future operations (including development

plans and objectives relating to Anglo American’s products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-

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Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and future business strateg ies and the environment in which

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in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral

resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to

produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the

effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as

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release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or

any change in events, conditions or circumstances on which any such statement is based.

Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published

earnings per share.

Certain statistical and other information about Anglo American included in this presentation is sourced from publicly available third party sources. As such it presents the

views of those third parties, but may not necessarily correspond to the views held by Anglo American.

No Investment Advice This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important

that you view this presentation in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant,

taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa,

under the Financial Advisory and Intermediary Services Act 37 of 2002).

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ANGLO AMERICAN A GLOBAL PLAYER

Platinum

Diamonds

Copper

Nickel

Iron Ore and Manganese

Thermal Coal

Corporate &

representative offices

Key

Headquarters

Metallurgical Coal

Other Mining and Industrial

Headquartered in London with 12 corporate and representative offices

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EXPLORATION FOOTPRINT

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PROJECT PIPELINE – LEVERAGING EXPLORATION

SUCCESS

Exploration has been an effective value model…

• Significant value creation since 2000

– Added Resources from discoveries1 - 30Mt Cu, 4Mt

Ni, 3Mt Zn

• Discoveries over the past decade highlight industry-

leading Exploration capability

– Discovery of potential Tier 1 assets (Los Bronces

District)

– Greenfield discoveries in established and emerging

mineral districts (West Wall, Sakatti)

– Leveraging Base Metals experience into new

commodities

• More work to be done on converting promising

discoveries into cash generating assets

Notes:

1. JORC compliant Copper and Nickel Resources multiply by the average industry average acquisition costs from MEG (2010).

2. Industry discovery and acquisition costs from MEG (2010)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mantoverde

Sulphide

Boyongan

West Wall

Lagunillas

El

Soldado

Norte

Bayugo

West Wall

Norte Sakatti Gergarub

San

Enrique

Monolito

Jacaré

Los

Sulfatos

Gamsberg

East

0

2

4

6

Industry

acquisition cost2

Copper Discovery and Acquisition Costs

(US$ c/lb)

0.4

Industry

discovery

cost2

Anglo

American

2.7

5.5

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Estimate of Value Creation

(2000-2012 US$m)

Value of

retained

assets 1

Sale of non-core assets

Sale of copper

assets

Exploration

Spend

Discovery

Value2

SAKATTI PROJECT- FINLAND

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• High geological prospectivity

• Stable government and transparent regulatory regimes. 2013 Fraser Institute ratings as

follows:

•Number 1 for policy environment for mining and Number 2 in their mineral potential index.

• Fair and stable fiscal / tax systems

• Skilled workforce (world-class mining service providers such as Outotec and Metso)

• Access to infrastructure

• Support by local government and community for responsible mineral development.

AA’s KEY DRIVERS FOR EXPLORATION IN FINLAND

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LOCATION OF THE SAKATTI PROJECT, FINLAND

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SAKATTI DISCOVERY HISTORY

•2004 - Anglo American commenced fieldwork for Ni-Cu sulphides in Lapland

•Central Lapland Greenstone Belt – Pechenga-Imandra Varzuga Greenstone Belt analogy

•Excellent base geological and geophysical data from the Geological Survey of Finland

•Sakatti highlighted from initial targeting – target number 8

•Discovered using conventional exploration methods - Geochemistry (B.O.T) – coherent Cu-

Ni, PGE anomaly, Geophysics (airborne and ground systems)

•2009 - Discovery DDH (09MOS8013) at Sakatti - first drilled 2006

•>75,000 m drilled to date – OY Kati AB rigs with Closed System

•Considered mature area – new approach confirms Lapland potential

•One of a number of mineralised intrusions discovered by Anglo American team in the region.

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GEOLOGY - SAKATTI

• Sakatti is magmatic Cu-Ni-PGE deposit hosted predominantly by a

serpentinised ultramafic olivine cumulate

• Ultramafic body trends roughly east-west and plunges to the west

• It is overlain in the west by a multi-textured breccia and fine-grained mafic unit

• The ultramafic body has a sidewall (and footwall) contact with an aphanitic

mafic unit.

• Hosting interstitial/disseminated, vein related (at least three generations) and

semi- to massive sulphides

• Evidence of hydrothermal alteration seen in the rock units and mineralisation.

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MINERALISATION

Massive, semi massive, vein and disseminated style sulphide mineralisation

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ESTIMATION OF GRADES (ESTIMATED ACCORDING TO THE GUIDELINES AS SET OUT IN THE JORC CODE)

• 0.20 %Cu mineralised intersections are calculated in the following manner:

The first and last sample of the mineralised intersection must be ≥0.20 %Cu

An intersection of ≥30m that does not include a sample of ≥0.20 %Cu is excluded as waste

If the overall Cu grade of the intersection is <0.20 %Cu, the intersection is excluded as it is not deemed mineralised

The minimum mineralised intersection length is 5.00m

• 1.00 %Cu significant intersections are calculated in the following manner:

The first and last sample of the significant intersection must be ≥0.20 %Cu

An intersection of ≥15m that does not include a sample of ≥1.00 %Cu is excluded from the 1.00 %Cu significant

intersection

If the overall Cu grade of the intersection is <1.00 %Cu, the intersection is excluded as it is not deemed significant

The minimum significant intersection length is 5.00m

The 1.00 %Cu significant intersections are included within the 0.20 %Cu mineralised intersections.

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SECTION 3489500E

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0 200m

SECTION 3489800E

0 200m

SAKATTI DRILLING RESULTS – SURFACE EXPRESSION

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INTERCEPTS – SECTION 3489500E (SOUTH TO NORTH)

09MOS8019: 3489502E 7495497N Dip: -64º AZ 183 EOH: 644.50

from 523.60m: 5.50m @ 0.48 % Cu, 0.16 % Ni, 1.40 g/t Pt, 0.80 g/t Pd, 0.21 g/t Au

10MOS8038: 3489502E 7495651N Dip: -75º AZ: 172º EOH: 745.90m


from 560.00m: 121.95m @ 1.37% Cu, 0.22% Ni, 0.24g/t Pt, 0.16g/t Pd, 0.23g/t Au

incl. 560.00m: 48.10m @ 3.13% Cu, 0.47% Ni, 0.18g/t Pt, 0.12g/t Pd, 0.47g/t Au


from 573.50m: 225.70m @ 1.11 % Cu, 0.94 % Ni, 0.37 g/t Pt, 0.42 g/t Pd,0.09 g/t Au








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from 679.00m: 141.20m @ 0.98% Cu, 1.06% Ni, 0.05% Co, 0.30g/t Pt, 0.32g/t Pd, 0.08g/t Au







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09MOS8023: no significant intercept














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PROJECT STATUS

• Better understanding of geological model through selected in-fill drilling

• Preliminary Business Case (using standard Finnish capital and operating costs) being

worked on at present.

• Project to be advanced responsibly and respectfully within the host community

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THANK YOU ANY QUESTIONS ?

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