consolidated broken hill ltd revitalisation of central broken hill august 2001
TRANSCRIPT
![Page 1: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/1.jpg)
CONSOLIDATED BROKEN HILL LTD
REVITALISATION OF CENTRAL REVITALISATION OF CENTRAL BROKEN HILLBROKEN HILL
August 2001
![Page 2: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/2.jpg)
CBH August 2001
• Founded in 1989 and listed on ASX in 1992 as Redfire Resources N.L.
• Name change in 2001 to Consolidated Broken Hill Ltd
• Current shares on issue ~ 88.5 million
• Shareholders (approximately) ~ 2,400
• Recent share price range 8 - 20 cents
• Approximate cash position (June accounts 2001) $A1.1M
• Listed on the Australian Stock Exchange ASX code CBH
• Top 10 shareholders hold 30.16% of Issued Capital
The CompanyThe Company
![Page 3: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/3.jpg)
CBH August 2001
Directors and ManagementDirectors and Management
• Jim Wall – Executive Chairman
– Strong mining and management background– Previously Managing Director of base metal producers Savage
Resources Ltd & Nicron Resources Ltd
• Bob Besley – Managing Director– Extensive management and exploration experience.– Founded the company in 1989
• Ian Plimer – Director– Specialist on Broken Hill– Professor of Geology, University of Melbourne
![Page 4: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/4.jpg)
CBH August 2001
• Robert Willcocks – Director– Previously Senior Partner of Mallesons Stephen Jacques.– Resources & commercial specialist
• Peter Jollie – Director– Former CEO of P&O Containers and an ex President of the Institute of
Chartered Accountants in Australia– Member of Trade Policy Advisory Committee to Minister for Trade
• Mike Fischer – Project Manager– Managed mining operations in Africa, Australia & PNG
– Operated Woodcutters Zn-Pb Mine, Australia
Directors and ManagementDirectors and Management
![Page 5: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/5.jpg)
CBH August 2001
Project LocationProject Location
![Page 6: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/6.jpg)
CBH August 2001
History of Broken HillHistory of Broken Hill
Giant class deposit discovered 1883Giant class deposit discovered 1883
Funded industrialisation of AustraliaFunded industrialisation of Australia
Total zinc-lead-silver ore mined ~ Total zinc-lead-silver ore mined ~
200Mt with revenue worth $70b in 200Mt with revenue worth $70b in
today’s termstoday’s terms
CBH holds central 3.8kmCBH holds central 3.8km
![Page 7: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/7.jpg)
CBH August 2001
00m RL
-1000m RL
Kin
tore
Pit
Del
prat
s Sh
aft
Bla
ckw
ood
Pit
Bro
wne
& M
arsh
Sha
fts
Nor
th O
pen
Cut
Companies built from Broken HillCompanies built from Broken Hill
CML 7S W N E
2 Kilometres2 Kilometres
* after Morland & Webster 1998
PASMINCOPASMINCO
CRACRA
BROKEN HILL SOUTHBROKEN HILL SOUTHNORTHSNORTHS
BHPBHP
PASMINCOPASMINCO
Main Lode
No
7 Sh
aft
![Page 8: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/8.jpg)
CBH August 2001
00m RL
-1000m RL
Kin
tore
Pit
Del
prat
s Sh
aft
Bla
ckw
ood
Pit
Bro
wne
& M
arsh
Sha
fts
Nor
th O
pen
Cut
Companies built from Broken HillCompanies built from Broken Hill
CML 7S W N E
2 Kilometres2 Kilometres
* after Morland & Webster 1998
Main Lode
* ~34 Million tonnes* ~106 Million tonnes ~ 54 Million tonnes
No
7 Sh
aft
![Page 9: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/9.jpg)
CBH August 2001
Iberian Pyrite Belt35 Mt Zn13 Mt Pb
Irish Central Plain14 Mt Zn4 Mt Pb
Selwyn Basin18 Mt Zn9 Mt Pb
Tri-State District14 Mt Zn4 Mt Pb
AbitibiSubprovince
17 Mt Zn~1 Mt Pb
Aravalit-DelhiOrogenic Belt
16 Mt Zn5 Mt Pb
NW QueenslandMineral Province
45 Mt Zn24 Mt PbBroken Hill
24 Mt Zn20 Mt Pb
Base Metal ProvincesBase Metal Provinces
![Page 10: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/10.jpg)
CBH August 2001
Consolidated Mining Lease Consolidated Mining Lease 7 (CML7)7 (CML7)Historical production:~54Mt @ 6.5% Zn, 12.5% Pb, 280g/t Ag from Main Lode (in white)
NN
Western Mineralisation:2m-40m wide unmined western lode (in yellow) paralleling main lode
![Page 11: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/11.jpg)
CBH August 2001
Resource BaseResource Base
• 2.5mt @ 10% Pb+Zn – Western Mineralisation2.5mt @ 10% Pb+Zn – Western Mineralisation
Current
• >10 yr mining life @ 1mt p.a (>10% Pb+Zn)>10 yr mining life @ 1mt p.a (>10% Pb+Zn)
Target
Developed from:
Western Mineralisation Zinc lodes
Centenary Mineralisation Eastern lode
Remnant main lode
![Page 12: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/12.jpg)
CBH August 2001
General Cross SectionGeneral Cross Section
MainLode
SEA LEVEL
9,800m RL
9,600m RL
9,400m RL
9,200m RL
10,200m RL
Glo
be – V
auxh
all Sh
ear
WESTERNMINERALISATION
WESTERNMINERALISATION
CENTENARYMINERALISATION
CENTENARYMINERALISATION
500 Metres
Current Resource Outline
![Page 13: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/13.jpg)
CBH August 2001
Drill holes along drive
Resource OutlineResource OutlineNN
![Page 14: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/14.jpg)
CBH August 2001
CBH Western Mineralisation CBH Western Mineralisation DrillingDrilling
(May 2001)(May 2001)
HoleHole FromFrom(m)(m)
Interval Interval (m)(m)
ZnZn%%
PbPb%%
AgAgg/tg/t
40014001 298298 44 3.13.1 4.44.4 5050
40024002 297.3297.3 15.515.5 6.16.1 4.34.3 2727
(including) (including) .. 303.4303.4 44 15.915.9 9.59.5 5050
![Page 15: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/15.jpg)
CBH August 2001
Kin
tore
Pit
Del
prat
s Sh
aft
Bla
ckw
ood
Pit
Bro
wne
& M
arsh
Sha
fts
Nor
th O
pen
Cut
CML 7S W N E
00m RL
-1000m RL
2 Kilometres
Zinc lodes
Centenary Mineralisation
Lead lodes
Zinc and Lead LodesZinc and Lead Lodes
No
7 Sh
aft
Western Mineralisation
![Page 16: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/16.jpg)
CBH August 2001
200 Metres
No 4 LEVEL
No 8 LEVEL
No 12 LEVEL
No 16 LEVEL
No 20 LEVEL
Sea LevelRL 10,000m
Zinc LodesZinc Lodes
CLode
CLode
BLode
BLode
A LodeUpperA LodeUpper
A LodeLowerA LodeLower
Lead LodesLead Lodes((Main LodeMain Lode)) 2 Lens2 Lens
3 Lens3 Lens
Zinc and Lead Lodes, CML8
1 Lens1 Lens
![Page 17: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/17.jpg)
CBH August 2001
Zinc and Lead Lode Extensions Zinc and Lead Lode Extensions
NN
Approximately 1 Approximately 1 kmkm
![Page 18: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/18.jpg)
CBH August 2001
EOH270m
-300m RL
-200m RL
-100m RL
C lode horizon
B lode
100m W 00m 100m E
LZDD50
00
LZDD50
0
1
Unmined (Stoped)
Zinc Lodes
Lead Lodes100 Metres
EOH216.3m
Zinc and Lead Lodes, CML7Zinc and Lead Lodes, CML7Diagramatic Illustration of Drilling ResultsDiagramatic Illustration of Drilling Results
![Page 19: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/19.jpg)
CBH August 2001
CBH Zinc LodeCBH Zinc LodeProgrammeProgramme
(April-May 2001)(April-May 2001)
HoleHole FromFrom(m)(m)
Interval Interval (m)(m)
ZnZn%%
PbPb%%
AgAgg/tg/t
B LodeB Lode 50015001 133133 4.34.3 23.123.1 9.29.2 107107
C LodeC Lode 5002A5002A 73.273.2 4.14.1 10.710.7 1.71.7 2121
No. 2 LensNo. 2 Lens 50005000 249.1249.1 20.920.9 7.57.5 1313 8787
Drilling results confirm:Drilling results confirm:
Extension of B & C zinc lodes into CML7Extension of B & C zinc lodes into CML7
Presence of unmined lenses of high-grade main lodePresence of unmined lenses of high-grade main lode
![Page 20: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/20.jpg)
CBH August 2001
Exploration PotentialExploration Potential
NN
Eastern lode horizonEastern lode horizon Main lode at depthMain lode at depth
Main lode droppersMain lode droppers
![Page 21: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/21.jpg)
CBH August 2001
![Page 22: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/22.jpg)
CBH August 2001
1 Kilometre
Gneiss
Reference
MetasedimentsAmphibolite
Shear Zone
Lode Zone
No 7 Shaft
BrowneShaft
DelpratShaftKintore Pit
BHP Pit Blackwood Pit
NorthOpenCutBlock 14
Pit
![Page 23: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/23.jpg)
CBH August 2001
Proposed DeclineProposed Decline
1480’ Drive Level
KintorePit
Drive
Level1000’
NN
Proposed Decline
![Page 24: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/24.jpg)
CBH August 2001
Decline Access Decline Access
Conceptual, not to scaleConceptual, not to scale
![Page 25: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/25.jpg)
CBH August 2001
STAGE 1STAGE 1
Stage 1Stage 1 DevelopmentDevelopment2-Dimensional Diagramatic Representation2-Dimensional Diagramatic Representation
STAGE 1STAGE 1
![Page 26: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/26.jpg)
CBH August 2001
Kintore Open PitKintore Open Pit
![Page 27: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/27.jpg)
CBH August 2001
PortalPortal
Haul RoadHaul Road
HMS PlantHMS Plant
CrusherCrusher
Truck Truck RampRamp
Concept for Kintore PitConcept for Kintore PitNN
![Page 28: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/28.jpg)
CBH August 2001
Heavy Medium SeparationHeavy Medium Separation
Head Grade Sink Sink GradeMetal
Recovery
8% Pb+Zn 57.5% 13.4% Pb+Zn 91%
** Metcom LaboratoriesMetcom Laboratories
S.G. of heavy media: 2.96S.G. of heavy media: 2.96
Sample ¼ NQ core, diamond drill hole 3230Sample ¼ NQ core, diamond drill hole 3230
* Preliminary testwork on Western Mineralisation* Preliminary testwork on Western Mineralisation
• Tennessee – Savage ResourcesTennessee – Savage Resources
• Woodcutters – Nicron ResourcesWoodcutters – Nicron Resources
![Page 29: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/29.jpg)
CBH August 2001
• Acquisition & CorporateAcquisition & Corporate $ 4.9m$ 4.9m
• InfrastructureInfrastructure $ 5.9m$ 5.9m
• Mine DevelopmentMine Development $ 6.9m$ 6.9m
• Mine OperatingMine Operating $ 4.6m$ 4.6m
• Stage 2 Feasibility Stage 2 Feasibility $ 2.0m$ 2.0m
SubtotalSubtotal $ 24.3m$ 24.3m
• Stage 1 RevenueStage 1 Revenue $ 5.6m$ 5.6m
TotalTotal $ 18.7m$ 18.7m
Estimated Project Costs – Stage 1Estimated Project Costs – Stage 1
![Page 30: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/30.jpg)
CBH August 2001
CML7 Development PlanCML7 Development Plan
Stage 1 > Kintore decline to upper part of Western Mineralisation - Initial stope trial of 120,000t
> Infill drilling of Western Mineralisation, zinc lodes and remnant lead lodes
Stage 2 > Development for sustained 500,000 tpa production from Western Mineralisation - metal output of 23,000t zinc, 17,000t lead and 560,000oz silver
> Continued infill drilling of resource targets
Stage 3 > Expansion into lodes in southern and northern areas of CML7 via declines from Kintore and Blackwoods pits respectively
> Resource upgrade to support expansion to 1 million t.p.a.
![Page 31: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/31.jpg)
CBH August 2001
ExpectedExpected Project ScheduleProject Schedule
• Data Analysis, DrillingData Analysis, Drilling Feb 01 - June 01Feb 01 - June 01
• Initial Mining Approval, Equity FundingInitial Mining Approval, Equity Funding May 01 - Sept May 01 - Sept
0101
• Decline DevelopmentDecline Development Dec 01 - Jun 02Dec 01 - Jun 02
• Stage 1 Production (120,000t) Stage 1 Production (120,000t) Jun 02 - Dec 02Jun 02 - Dec 02
• Project Expansion Feasibility & FundingProject Expansion Feasibility & Funding Jul 02 - Sept 02Jul 02 - Sept 02
• Stage 2 Expansion (500,000tpa)Stage 2 Expansion (500,000tpa) Feb 03 - Oct 03Feb 03 - Oct 03
![Page 32: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/32.jpg)
CBH August 20015 Kilometres
City ofBroken Hill
CML7
Pasminco tenements
Pospect
Operating mill
Reference
Broken Hill orebody
Broken Hill TenureBroken Hill Tenure
![Page 33: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/33.jpg)
CBH August 2001
0
10
20
30
40
50
60
Jun-99 Jun-00 Jun-01 (est)
Ore (mt)
Production Reserves Resources
Pasminco Reserves / ResourcesPasminco Reserves / Resources
![Page 34: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/34.jpg)
CBH August 2001
0200400600800
1000120014001600
1999 2000 2001 (est)
('000 t)
Zinc Lead
Reserves by Metal ContentReserves by Metal Content
![Page 35: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/35.jpg)
CBH August 2001
0
1000
2000
3000
Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 Aug-01
A$/t
Zinc Lead
Zinc & Lead Prices12 Month Trend
![Page 36: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/36.jpg)
CBH August 2001
• Revisiting major orebodyRevisiting major orebody
• Existing drilled resourceExisting drilled resource
• Established infrastructureEstablished infrastructure
• Continuous mining leaseContinuous mining lease
• No land title issues likelyNo land title issues likely
• Low capital entry to productionLow capital entry to production
• Early cash flow projectedEarly cash flow projected
Summary - CML7Summary - CML7
![Page 37: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/37.jpg)
CBH August 2001
Expected TimetableExpected Timetable
• Marketing Marketing June - AugustJune - August
• Prospectus issuedProspectus issued SeptemberSeptember
• AIM listingAIM listing OctoberOctober
![Page 38: CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001](https://reader035.vdocuments.net/reader035/viewer/2022062511/5513d34e55034674748b4de8/html5/thumbnails/38.jpg)
CBH August 2001
CML7 PanoramaCML7 Panorama