TERRAMIN AUSTRALIA LIMITED

TERRAMIN AUSTRALIA LIMITED

ABN 67 062 576 238

ANGAS ZINC MINECommunity Newsletter

APRIL 2008

IN THIS ISSUE

What’s happening at Angas 1Meet the team 2Community update 3An interesting statistic 3Glossary of mining terms 4Fast facts 4Development timetable 4

What’s happening at Angas?

14 angas zinc mine cOmmUniTY neWsLeTTeR aPRiL 2008angas zinc mine cOmmUniTY neWsLeTTeR aPRiL 2008

ANGAS ZINC MINE

Callington Road, Strathalbyn, SA 5255 PO Box 125, Strathalbyn, SA 5255

ANGAS ZINC MINE OFFICET (08) 8536 5950

COMPLAINTS LINET (08) 8536 8010

Fast facts• Theundergroundboggerholds

15tonnesofrockperbucket.

• Thedumptruckholds40tonnesperload.

• TheJumbo(developmentdrill)drills200metrespercut(3.5m)priortochargingthefacewithexplosives.

• Theambientairtemperatureundergroundis25-28degrees.

FOCUS ON ZINC

SUSTAINABLE

DID YOU KNOW?

Zinc can be recycled indefinitely, without

loss of its physical or chemical properties

Development timetable April 2008 First development ore

mined

July 2008 First ore to the ROM pad

June 2008 Earthworks contractor, Exact Mining, due to leave site

July 2008 Plant commissioning

August 2008 First load of concentrate scheduled to leave site

HEAD OFFICE

Terramin Australia Limited Level 22 Westpac House, 91 King William Street Adelaide, South Australia 5000T (08) 8213 1415 F (08) 8213 1416 E info@terramin.com.auW www.terramin.com.au

John Burgess – General Manager , Jared Molloy – Atlas Copco presenting Jol Jardine – Mine Manager with a new bogger (underground loader).

The Angas Zinc Mine (AZM) has progressed markedly over the last couple of months. Today there are 30 Terramin employees working at the mine, plus another 80-100 contractors involved in the initial construction phase.

The main underground tunnel known as the decline advanced to 300m from the mine entrance and is about 100 vertical metres below the surface. Two other tunnels are being mined from the decline, one heading towards the orebody itself, whilst the second is for the ventilation fan which is located at the bottom of the box- cut near the mine entrance (portal). The next stage is to finish the ventilation wall and install the primary ventilation fan under- ground. At this stage all underground work has occurred south of the Callington Road.

Civil engineering work has commenced on the Armco tunnel which will extend 50 metres in front of the existing portal. The foundations have been poured ready for the steel work to be put into place. Armco tunnels are commonly used underground to form new roads. They look like extremely strong galvanised tanks placed on their side, hollow at either end. Work on the tunnel is visible from the general public viewing area located at the main entrance to the mine. People are welcome to visit this area seven days a week.

Significant progress has been made on the process plant this month and it is now 80 percent complete, the bulk of the concrete work having been completed in February. The steel work for the crusher and fine ore bin are being erected and foundations for the conveyor footings are complete. The SAG mill has been refurbished and is currently being rubber lined. Electrical work has started on the flotation circuit and the cladding is being installed now the heat wave is over. The steel work for the concentrate storage shed is complete and the weighbridge has been installed inside. This is where the concentrate will be loaded into haulage trucks and taken to Adelaide via Callington, thus keeping the trucks away from the centre of our town.

The buildings on the mine site are painted green to blend into the surrounding environment. In the months ahead other existing sheds on the mine site will be painted green to match.

The advancement of the Tailings Storage Facility (TSF) has ramped up with the construction being overseen by Australian Tailings Consultants. The main embankment walls have been completed and the TSF is now at its final height. The main wall is over eighteen metres high, sixty metres wide at the base and six metres wide at the top. The inside walls were lined with clay and rolled to form a smooth surface. After this preparation was completed, Fabtech started laying down the heavy duty plastic liner before each sheet was double welded together. The recent hot temperatures have caused some delays, however work increased when three shifts were implemented around the clock. Fabtech are due to finish the plastic lining at the end of March, whilst Exact Mining continue to overlay sand followed by rock fill inside the main embankment of the TSF.

Prin

ted

on r

ecyc

led

pape

r

To receive this Newsletter electronically email: newsletter@terramin.com.au

Construction of the footings for the Armco tunnel has commenced.

An interesting statisticTerramin AZM has a zero tolerance to alcohol, drugs and smoking. All personnel entering the mine site undergo breath testing and random drug testing prior to work. During the construction stage as many as 150 tests were conducted daily in line with the number of personnel entering the site. Security officers breath tested over 3000 people during the month of February and detected only two failures. Both workers were stood aside until they could provide a zero sample.

New contractors or workers are provided with either surface or underground inductions and training regarding mine site protocol to achieve a high level of safety performance.

Terramin has implemented a number of policies including health & safety, environment, quality, code of conduct and equal opportunity.

It is Terramin’s intention to:

• Provideasafe,positiveandenjoyable working environment.

• Workharmoniouslywithinthe Strathalbyn community.

• Achieveahighstandardofcare for the environment and continuously seek improvement in environmental performance.

Pozi Cotter breath testing before starting work – he is a contractor working for P Cotter & Sons – concrete and stone masonry.

32 TeRRamin australia limited aPRiL 2008angas zinc mine cOmmUniTY neWsLeTTeR

Community updateDuring February the local CFS brigades conducted a tour of the AZM and learnt how the mine will operate. It is important for CFS crew members to be familiar with the mine site, if there is a fire on the surface the CFS will respond.

Angas Zinc Mine employees have the opportunity to participate in Emergency Response Training. It is voluntary and so far 100 % of the workforce has participated, including the General and Mine managers. Some of the components covered by training officers from Fire & Rescue Australia are breathing apparatus (BA), search & rescue, vertical rescue and fire training. The training will continue for the life of the mine. Other mines around Australia organise mine rescue competitions which attract teams of people from different mines. It is a good way to improve skill levels under pressure, work as part of a team and have some fun.

Terramin has purchased a Drager air compressor and donated it to the Strathalbyn CFS, it will be located at the fire station and allow the crews to fill their own breathing apparatus instead of travelling to Mt Barker. Terramin will share the use of the compressor for refilling their BA cylinders. That way when the mining operation has finished, the CFS will have an asset they can continue to use.

Above: Strathalbyn CFS official tour of the Angas Zinc Mine.

Right: John Burgess, General Manager AZM, presenting Don Maddern, Captain of Strathalbyn CFS with the station’s new air compressor. The CFS will no longer need to travel to other stations to refill their breathing apparatus cylinders.

Loading shed

(locals) and 16 expats. He really enjoyed working in such a different environment, but working away from his family for extended periods of time was the hardest part of the job.

The opportunity to work at home then brought him to the Angas Zinc Mine where he started off as a shift supervisor, before being promoted to mining engineer. Dale studied engineering at Ballarat via distance education and he now has the opportunity to put his study into practice. Dale said “the benefit of working for the AZM is being at home with my family and the opportunity to expand my skill base and knowledge. I also enjoy developing new crew members and getting them to work as part of a self managing team”.

Dale met his wife Carolyn at Henty gold mine in 1999, they now have three children Ryan (13), Georgia (8) and Dominic (6). Carolyn is a geologist and has worked at the same mines as Dale, including in Cobar, Stawell and Tasmania. Carolyn currently works part time for the AZM and is studying to be a high school teacher specialising in maths and science. Carolyn was raised in South Australia, her family is historically from Strathalbyn, being related to the Scotts, Stones, McLeans and Chaplins from Langhorne Creek and Milang districts.

Dale worked for Beaconsfield gold mine from 2003 to 2006 and he was heavily involved in the emergency response team who successfully rescued trapped miners in 2006. Dale said “being part of the rescue team was challenging at times, but was a good experience”. After working at Beaconsfield he moved to McLaren Vale to be closer to Carolyn’s family.

Working for the Porgera Joint Venture gold mine in Papua New Guinea became Dale’s next adventure, as the mine foreman looking after 200 people. The mine produced up to 1 million ounces of gold per year, employed 4000 nationals

Dale Burgess - Mining is in his blood

Dale Burgess grew up in the mining town of Rosebery on the west coast of Tasmania. His dad was a miner for 40 years, so you could say mining is in Dale’s blood. He attended school in Tasmania and after completing school he travelled, mainly backpacking around Europe, the Greek Isles and Switzerland being among his favourite places. At the age of 21, Dale started working as a jumbo operator for the Anchor Mine, a small tin mine on the east coast of Tasmania, which employed just 18 people in total, with six blokes underground. Dale then worked for Renison Bell, the second largest underground tin mine in the world, which produced 4% of the worlds tin. The mine opened in 1965 and at its closure had a vertical depth of 800 metres and 100km of decline. Dale worked in all aspects of production mining including truck driving, bogging, charge up and jumbo operator.

Dale is always looking for a new challenge so after 5 years he transferred to another Renison Bell mine, the Henty Gold Mine, where he became a mine foreman, training and safety officer.

Meet the team

Dale Burgess, ‘Burge’

Saturday 15 March was the world’s greatest shave. There were a large number of people who lined up to have their heads shaved or dyed all in the name of charity. Money raised from the event went to the Leukaemia Foundation $120,443 have been raised so far by South Australians.

Two Terramin employees Andrew Robertson – General Manager Operations and Warren Wilson – Shift Supervisor participated in the public section of the Tour Down Under that finished in Strathalbyn. Well done to both riders.

Flotation circuitGrinding circuit

Mine water pond

Above: Last area to be double lined with plastic.Below: Ventilation shaft construction – note excavator at bottom.

Above: Lining inside of the SAG mill.Below: Overview of the Processing Plant.

Glossary of mining termsOrebody A solid mass of rock that is geologically distinct

from the rocks that surround it, and which is commercially extractable. At Angas, the orebody comprises the zinc and lead sulphide minerals, sphalerite and galena, with minor amounts of chalcopyrite.

ROM Pad ROM is an acronym for Run of Mine. The ROM Pad is where freshly mined ore used to feed the mill and process plant is stockpiled.

ANFO Ammonium Nitrate Fuel Oil used as an explosive

Tailings The material rejected after the valuable minerals have been recovered from the orebody.

SAG Mill SAG is an acronym for Semi-Autogenous Grinding, and applies to mills that utilise steel balls and the rock itself for grinding. The inside of the mill is lined with lifting plates to lift the material around the inside of the mill, where it then falls off the plates and falls back down. These mills are primarily used in the gold, copper, platinum, lead, zinc, silver, alumina and nickel industries to grind the mined ore.

Jol Jardine, Mine Manager, shaved his head and beard for a good cause.

32 TeRRamin australia limited aPRiL 2008angas zinc mine cOmmUniTY neWsLeTTeR

Community updateDuring February the local CFS brigades conducted a tour of the AZM and learnt how the mine will operate. It is important for CFS crew members to be familiar with the mine site, if there is a fire on the surface the CFS will respond.

Angas Zinc Mine employees have the opportunity to participate in Emergency Response Training. It is voluntary and so far 100 % of the workforce has participated, including the General and Mine managers. Some of the components covered by training officers from Fire & Rescue Australia are breathing apparatus (BA), search & rescue, vertical rescue and fire training. The training will continue for the life of the mine. Other mines around Australia organise mine rescue competitions which attract teams of people from different mines. It is a good way to improve skill levels under pressure, work as part of a team and have some fun.

Terramin has purchased a Drager air compressor and donated it to the Strathalbyn CFS, it will be located at the fire station and allow the crews to fill their own breathing apparatus instead of travelling to Mt Barker. Terramin will share the use of the compressor for refilling their BA cylinders. That way when the mining operation has finished, the CFS will have an asset they can continue to use.

Above: Strathalbyn CFS official tour of the Angas Zinc Mine.

Right: John Burgess, General Manager AZM, presenting Don Maddern, Captain of Strathalbyn CFS with the station’s new air compressor. The CFS will no longer need to travel to other stations to refill their breathing apparatus cylinders.

Loading shed

(locals) and 16 expats. He really enjoyed working in such a different environment, but working away from his family for extended periods of time was the hardest part of the job.

The opportunity to work at home then brought him to the Angas Zinc Mine where he started off as a shift supervisor, before being promoted to mining engineer. Dale studied engineering at Ballarat via distance education and he now has the opportunity to put his study into practice. Dale said “the benefit of working for the AZM is being at home with my family and the opportunity to expand my skill base and knowledge. I also enjoy developing new crew members and getting them to work as part of a self managing team”.

Dale met his wife Carolyn at Henty gold mine in 1999, they now have three children Ryan (13), Georgia (8) and Dominic (6). Carolyn is a geologist and has worked at the same mines as Dale, including in Cobar, Stawell and Tasmania. Carolyn currently works part time for the AZM and is studying to be a high school teacher specialising in maths and science. Carolyn was raised in South Australia, her family is historically from Strathalbyn, being related to the Scotts, Stones, McLeans and Chaplins from Langhorne Creek and Milang districts.

Dale worked for Beaconsfield gold mine from 2003 to 2006 and he was heavily involved in the emergency response team who successfully rescued trapped miners in 2006. Dale said “being part of the rescue team was challenging at times, but was a good experience”. After working at Beaconsfield he moved to McLaren Vale to be closer to Carolyn’s family.

Working for the Porgera Joint Venture gold mine in Papua New Guinea became Dale’s next adventure, as the mine foreman looking after 200 people. The mine produced up to 1 million ounces of gold per year, employed 4000 nationals

Dale Burgess - Mining is in his blood

Dale Burgess grew up in the mining town of Rosebery on the west coast of Tasmania. His dad was a miner for 40 years, so you could say mining is in Dale’s blood. He attended school in Tasmania and after completing school he travelled, mainly backpacking around Europe, the Greek Isles and Switzerland being among his favourite places. At the age of 21, Dale started working as a jumbo operator for the Anchor Mine, a small tin mine on the east coast of Tasmania, which employed just 18 people in total, with six blokes underground. Dale then worked for Renison Bell, the second largest underground tin mine in the world, which produced 4% of the worlds tin. The mine opened in 1965 and at its closure had a vertical depth of 800 metres and 100km of decline. Dale worked in all aspects of production mining including truck driving, bogging, charge up and jumbo operator.

Dale is always looking for a new challenge so after 5 years he transferred to another Renison Bell mine, the Henty Gold Mine, where he became a mine foreman, training and safety officer.

Meet the team

Dale Burgess, ‘Burge’

Saturday 15 March was the world’s greatest shave. There were a large number of people who lined up to have their heads shaved or dyed all in the name of charity. Money raised from the event went to the Leukaemia Foundation $120,443 have been raised so far by South Australians.

Two Terramin employees Andrew Robertson – General Manager Operations and Warren Wilson – Shift Supervisor participated in the public section of the Tour Down Under that finished in Strathalbyn. Well done to both riders.

Flotation circuitGrinding circuit

Mine water pond

Above: Last area to be double lined with plastic.Below: Ventilation shaft construction – note excavator at bottom.

Above: Lining inside of the SAG mill.Below: Overview of the Processing Plant.

Glossary of mining termsOrebody A solid mass of rock that is geologically distinct

from the rocks that surround it, and which is commercially extractable. At Angas, the orebody comprises the zinc and lead sulphide minerals, sphalerite and galena, with minor amounts of chalcopyrite.

ROM Pad ROM is an acronym for Run of Mine. The ROM Pad is where freshly mined ore used to feed the mill and process plant is stockpiled.

ANFO Ammonium Nitrate Fuel Oil used as an explosive

Tailings The material rejected after the valuable minerals have been recovered from the orebody.

SAG Mill SAG is an acronym for Semi-Autogenous Grinding, and applies to mills that utilise steel balls and the rock itself for grinding. The inside of the mill is lined with lifting plates to lift the material around the inside of the mill, where it then falls off the plates and falls back down. These mills are primarily used in the gold, copper, platinum, lead, zinc, silver, alumina and nickel industries to grind the mined ore.

Jol Jardine, Mine Manager, shaved his head and beard for a good cause.

TERRAMIN AUSTRALIA LIMITED

TERRAMIN AUSTRALIA LIMITED

ABN 67 062 576 238

ANGAS ZINC MINECommunity Newsletter

APRIL 2008

IN THIS ISSUE

What’s happening at Angas 1Meet the team 2Community update 3An interesting statistic 3Glossary of mining terms 4Fast facts 4Development timetable 4

What’s happening at Angas?

14 angas zinc mine cOmmUniTY neWsLeTTeR aPRiL 2008angas zinc mine cOmmUniTY neWsLeTTeR aPRiL 2008

ANGAS ZINC MINE

Callington Road, Strathalbyn, SA 5255 PO Box 125, Strathalbyn, SA 5255

ANGAS ZINC MINE OFFICET (08) 8536 5950

COMPLAINTS LINET (08) 8536 8010

Fast facts• Theundergroundboggerholds

15tonnesofrockperbucket.

• Thedumptruckholds40tonnesperload.

• TheJumbo(developmentdrill)drills200metrespercut(3.5m)priortochargingthefacewithexplosives.

• Theambientairtemperatureundergroundis25-28degrees.

FOCUS ON ZINC

SUSTAINABLE

DID YOU KNOW?

Zinc can be recycled indefinitely, without

loss of its physical or chemical properties

Development timetable April 2008 First development ore

mined

July 2008 First ore to the ROM pad

June 2008 Earthworks contractor, Exact Mining, due to leave site

July 2008 Plant commissioning

August 2008 First load of concentrate scheduled to leave site

HEAD OFFICE

Terramin Australia Limited Level 22 Westpac House, 91 King William Street Adelaide, South Australia 5000T (08) 8213 1415 F (08) 8213 1416 E info@terramin.com.auW www.terramin.com.au

John Burgess – General Manager , Jared Molloy – Atlas Copco presenting Jol Jardine – Mine Manager with a new bogger (underground loader).

The Angas Zinc Mine (AZM) has progressed markedly over the last couple of months. Today there are 30 Terramin employees working at the mine, plus another 80-100 contractors involved in the initial construction phase.

The main underground tunnel known as the decline advanced to 300m from the mine entrance and is about 100 vertical metres below the surface. Two other tunnels are being mined from the decline, one heading towards the orebody itself, whilst the second is for the ventilation fan which is located at the bottom of the box- cut near the mine entrance (portal). The next stage is to finish the ventilation wall and install the primary ventilation fan under- ground. At this stage all underground work has occurred south of the Callington Road.

Civil engineering work has commenced on the Armco tunnel which will extend 50 metres in front of the existing portal. The foundations have been poured ready for the steel work to be put into place. Armco tunnels are commonly used underground to form new roads. They look like extremely strong galvanised tanks placed on their side, hollow at either end. Work on the tunnel is visible from the general public viewing area located at the main entrance to the mine. People are welcome to visit this area seven days a week.

Significant progress has been made on the process plant this month and it is now 80 percent complete, the bulk of the concrete work having been completed in February. The steel work for the crusher and fine ore bin are being erected and foundations for the conveyor footings are complete. The SAG mill has been refurbished and is currently being rubber lined. Electrical work has started on the flotation circuit and the cladding is being installed now the heat wave is over. The steel work for the concentrate storage shed is complete and the weighbridge has been installed inside. This is where the concentrate will be loaded into haulage trucks and taken to Adelaide via Callington, thus keeping the trucks away from the centre of our town.

The buildings on the mine site are painted green to blend into the surrounding environment. In the months ahead other existing sheds on the mine site will be painted green to match.

The advancement of the Tailings Storage Facility (TSF) has ramped up with the construction being overseen by Australian Tailings Consultants. The main embankment walls have been completed and the TSF is now at its final height. The main wall is over eighteen metres high, sixty metres wide at the base and six metres wide at the top. The inside walls were lined with clay and rolled to form a smooth surface. After this preparation was completed, Fabtech started laying down the heavy duty plastic liner before each sheet was double welded together. The recent hot temperatures have caused some delays, however work increased when three shifts were implemented around the clock. Fabtech are due to finish the plastic lining at the end of March, whilst Exact Mining continue to overlay sand followed by rock fill inside the main embankment of the TSF.

Prin

ted

on r

ecyc

led

pape

r

To receive this Newsletter electronically email: newsletter@terramin.com.au

Construction of the footings for the Armco tunnel has commenced.

An interesting statisticTerramin AZM has a zero tolerance to alcohol, drugs and smoking. All personnel entering the mine site undergo breath testing and random drug testing prior to work. During the construction stage as many as 150 tests were conducted daily in line with the number of personnel entering the site. Security officers breath tested over 3000 people during the month of February and detected only two failures. Both workers were stood aside until they could provide a zero sample.

New contractors or workers are provided with either surface or underground inductions and training regarding mine site protocol to achieve a high level of safety performance.

Terramin has implemented a number of policies including health & safety, environment, quality, code of conduct and equal opportunity.

It is Terramin’s intention to:

• Provideasafe,positiveandenjoyable working environment.

• Workharmoniouslywithinthe Strathalbyn community.

• Achieveahighstandardofcare for the environment and continuously seek improvement in environmental performance.

Pozi Cotter breath testing before starting work – he is a contractor working for P Cotter & Sons – concrete and stone masonry.