asx code “abz” - welcome to australian bauxite (abx) … (mid jul'12) $3.2 million = 1yr...

AUSTRALIAN BAUXITE LIMITED1

AUSTRALIAN BAUXITE LIMITEDSymposium Resources Road Show 24‐25 July 2012

Developing Three East CoastBauxite Projects

Bauxite is the ore for aluminium and alumina

ASX Code “ABZ”

Level 2 Hudson House 131 Macquarie StSydney NSW 2000 Australia

Phone: +61 2 9251 7177Facsimile: +61 2 9251 7500E: [email protected]

Ian Levy, CEOMob: 0407 189 122E: [email protected]


Market Fundamentals: New Industry StructureChina, India

Russia, China, India, Middle East, Iceland

Australia, Indonesia

1 tonne

Figure: Alumina Limited

Stronger bauxite demand

Seaborne trade to China

Aluminium hi productionnew, giant modern smelters

Especially China, Middle East


South America

Asia

ABx bauxite deposits Other bauxite depositsAlumina Refineries

West Pacific Dominance

Australia will supply China’s 38 huge refineriesIndonesia will supply less from 2014

EuropeAmerica

NorthEurope

Africa

Russia

Australia

Australia will start replacing Indonesian bauxite in 2014

AUSTRALIAN BAUXITE LIMITED

Alumina Refineries are huge investments China has largest, newest refineries – won’t slow down. China becoming increasingly reliant upon imported bauxite.

4Photo from Hydro presentation

Bauxite


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China Bauxite Import Panic Over Indonesian Bans

Sources: C&M, MBC & China Customs

China’s Imports Rising Strongly to + 50Mtpa. Indonesian supply is “doubtful” after 2014 AUSTRALIA’S OPPORTUNITY IS NOW !

Australian

(Weipa)

bauxite pri

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uxite prices

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nesia

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Alumina Refineries (8)

Australia Will Increase Bauxite SuppliesForecast

World’s largestalumina refineries

Aluminium Smelters (6 or less)

World’s largest bauxite &alumina production

Gove

Rio Investing $1.5 Billion to Export Hi‐Temp Bauxite to Chinese Hi‐Temp Refineries

DarlingRanges

MitchellPlateau(Dormant)

Others’ Bauxite Projects (6)ABx bauxite deposits (36)

Eastern AustralianBauxite Province

Binjour Project: Big Province

Goulburn ProjectTaralga etc FIRST PROJECT

Marubeni 35% of JV

Mainly too low grade to export.

Rio will export high temperature bauxite to China. ABx will supply sweetener, low temperature bauxite

30Mtpa

5Mtpa from ABx Lo‐Temp Bauxite to Lo‐Temp Refineries

??

Tasmanian ProjectsOfftake partner being approached


ABZ’s JORC Resources are Growing Strongly 1

MORE COMING: Target is 200 to 300 Million Tonnes. 1All deposits drilled to date produce premium quality DSO export bauxite

1. See JORC Statement Slides

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illion Tonnes)

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Inverell maiden

Inverell update

Taralga maiden

Taralga update

Taralga update

Guyra maiden

Binjour maiden Inverell update

Taralga update

Binjour update

106Mt @ $60/t = $6.4 billion gross in‐ground


Corporate Details

12 mths ABZ shares A$ Board of DirectorsJohn Dawkins Non-executive ChairmanPeter Meers Exec & Vice ChairmanIan Levy CEO & Managing DirectorJacob Rebek ** Executive DirectorWei Huang Non-executive DirectorHenry Kinstlinger Company Secretary

** Chief Geologist Jacob Rebek is ex CRA (Rio) Chief Geologist, Led discovery team Century Zinc '93 & Eastern Australian Bauxite '06-09

ASX Code : ABZ Listed 24 Dec'09 at $0.20 Major Shareholders Shares %Shares 106.1 million Hudson Resources 45.6 million 43.0%Options 10.3 million State One Capital 7.4 million 7.0%Market Cap ($0.40) $42.4 million Soul Pattinson 3.7 million 3.5%Cash (mid Jul'12) $3.2 million = 1yr budget Top 20 Holders 76.4 million 72.0%Share range $0.30 to $0.84Avg Daily Volume 132,000 Shareholders 900


• Reach 100 million tonnes JORC Resources DONE106Mt already 1

GOULBURN BAUXITE PROJECT• Announce Pre Feasibility Study results End Aug 2012

• Mining Lease Application Process Commenced Feb‐Apr 2012

• Decision to Proceed to Bankable Feasibility? 3rd Qtr 2012

BINJOUR• Binjour Resource Upgrade DONE 29Jun’12

• Commence Pre Feasibility Studies 2013 ?

TASMANIA – NEW FOCUS

• Resource drilling & estimation Aug‐Dec 2012

• Scoping Study & ML Application Dec 2012 onward

Indicative Milestones Ahead

1. See JORC Statement & Exploration Target Statement Slides


• 135km rail to Port

• Goulburn Bauxite ProjectPrefeasibility StudyCompleted: positive

DSO Hi Grade: + 40% Al2O3

‐ 2.5% SiO2

Taralga Resources Increase 50% to 38m tonnes 1

Near Port Kembla

Wingello

TaralgaGoulburn

• Goulburn Bauxite JV with Marubeni: PFS Completed• New +30m thick bauxite zones discovered



BAUXITES OF SOUTHERN NSW

2 to 3 m layer of “PDM‐DSO Bx” or emery‐bearing pisolithic bauxite.

Comprises 15% to 30% of 5 to 50mm pisoliths of “PDM” which are nodules of dense fused alumina & maghemite‐hematite dust in low‐density, high quality DSO bauxite.

2 to 4 m layer of DSO bauxite.

Gibbsite plus moderate levels of iron minerals, mainly hematite and limonite (little or no goethite).

Needs no processing – direct shipping bauxite (“DSO”) – see Definitions.

1 to 3m layer of white bauxite in places.

Gibbsite plus low iron (3% to 8% Fe2O3). May be refractory grade bauxite.

TERTIARY QUARTZ SAND OR CLAY BELOWPenrose NSW – old quarry. 14 December 201111


Australia’s Thickest Bauxite Ever Found38 metres thick & still in bauxite

ABx discovered exceptionally thick bauxite at Mt Rae near Taralga in southern NSW in February 2012. The bottom of the bauxite has not yet been reached – the drill rig ran out of drill rods and a new, more powerful drill rig will be needed.

This thick zone has been carefully drilled and interpreted by ABx’s senior geologists. Potential extensions of this material have been identified and will be drilled, after intensive mapping.

12

>36metres


Steel works

CoalTerminal

Pt Kembla Gateway

Car Jetty

Old Copper Smelter

Old Coal Terminal

Outer Harbour

GrainTerminal

13

Port Kembla: major port capacity

Car Port

Coal Loader

Steel Works

Steel processing

Several Ports are competing for bauxite business


Tellebang

Binjour ResourceUpgrade

Binjour project

Binjour South

14

Excellent bauxite results at Binjour24.5 Million Tonnes 1

JORC Resource

High Grade 44% Al2O3Gibbsite 3% Rx SiO2

Easy production

Government‐industry study of rail & port upgrade

Leach conditions to measure available Al2O3 avl & reactive Rx SiO2 were 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 mins. "Avl/Rx" ratio is (Available Al203)/(Reactive SiO2). "A/S" ratio is (Total Al203)/(Total SiO2). Values above 10 are excellent


DSO Bauxite ResourcesResource category

Tonnes millions

Bauxite Thick-ness

Al2O3

Avl % 143o

Rx SiO2

%

Avl/Rx

RatioAl2O3

%SiO2

%A/S

RatioFe2O3

%TiO2

%LOI %

Yield %

Over-burden

m

Internal Waste

m

Inferred 9.0 3.9 m 38.0 3.8 10.0 43.7 4.5 9.7 22.4 3.6 24.2 59% 8.2 m 0.3 mIndicated 15.5 5.3 m 39.5 2.6 15.1 44.2 3.1 14.5 23.4 3.7 24.9 62% 9.4 m 0.3 mTOTAL 24.5 4.8 m 39.0 3.0 12.8 44.1 3.6 12.3 23.1 3.7 24.6 61% 8.9 m 0.3 m

Sieved at 0.26mm


Large bauxite plateau at Binjour QLD

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Layer

Bauxite

South Binjour Bauxite Plateau


Large bauxiteplateau at Binjour QLD44 sq km ofbauxite layer is 15 times largerthan the 3 sq kmof JORC Resourceof 24.5Mt

Potential is massive

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7172000

7173000

7174000

7175000

7176000

7177000

7178000

7179000

7180000

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00

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3490

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Red = Indicated ResourcesOrange = Inferred ResourceMauve hatch = insufficient holes

Extent of bauxite layer over Binjour Plateau

Silica gel in the bauxite layer

Silica gel in the bauxite layer


Large bauxite plateau at South Binjour QLD

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Layer


0 50

km

Exploration Licences

Rail lines

Major export port

Aluminium smelter

Coal mines

Port Latta

BurnieDevonport

Bell Bay

Launceston

Hobart

Legend

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Tasmania – the New Frontier.

• Cleared land – mainly plantation & grazing

• Landholder & localcommunity support

• New leases secure all viable deposits

• Heavy road & rail transport nearby

• Deepwater mineralexport ports at BellBay & Burnie


Tasmania – Good Resource Potential

50m

TASMANIAN BAUXITES Typical Cross‐sections From Small Part of Deposit Drilled

DSO Bauxite

DSO Bauxite

Clay‐Bauxite MixClay‐Bauxite Mix

? ? ?

DSO Bauxite

DSO Bauxite

Clay‐Bauxite

Mix

Clay‐Bauxite MixClay‐Bauxi

te Mix

Bauxite

? ?

10m

350m apart


JORC Code Compliant Public ReportsThe Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. These references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it.

Direct Shipping OreIn this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation. The potential quantity and grade of exploration targets is conce ptual in nature, there has been insufficient exploration to defi ne a Mineral Resource and it is uncertain if further exploration will result in the de termination of a Mineral Resource.

Reference Issue Date Title of Notice as lodged with ASX

1 12/10/2011 Binjour Maiden JORC Resource

2 15/08/2011 Guyra Maiden JORC Resource

3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes

4 06/12/2010 Taralga JORC Resource Update

5 02/09/2010 Inverell JORC Resource Update

Reference Issue Date Title of Notice as lodged with ASX

1 12/10/2011 Binjour Maiden JORC Resource

2 15/08/2011 Guyra Maiden JORC Resource

3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes

4 06/12/2010 Taralga JORC Resource Update

5 02/09/2010 Inverell JORC Resource Update

Forward Looking StatementWhilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx), its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which may affect any of the information contained in this document and presentation.

JORC and Competent Person StatementInformation herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer.Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertakingto qualify as a Competent Person as defined in the 2004 Edition of the ‘ Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.

Exploration Target StatementABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at Inverell 4,5 from 15% to 20% of the known bauxite deposits on Exploration Lea se EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga 1,2,3 from approximately 50% of the bauxite targets on Exploration Lease EL7357 in southern NSW . In accordance with the JORC Code, readers are advised that “the potential quality and grade is conceptual in nature, that there has been insufficient exploration to define full Mineral Resources and that it is uncertain if further exploration will result in the determination of a Mineral Resource”. As first‐ pass drilling has proceeded across most of its tenements, ABx has seen no reason to vary its exploration target.


Landholder Relations – the key task


Why Mine Australian Bauxite? We do it better

A mined area at Huntly prior to rehabilitation

The same mine pit after rehabilitation

Alumina‐Alcoa’s Rehabilitation in WA

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it.

We only operate where welcomed.

asx code “abz” - welcome to australian bauxite (abx) … (mid jul'12) $3.2 million = 1yr...

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