for personal use only - asx · tdw – west 4.1mt tds – south 4.5mt ... for personal use only...

May 2012

Corporate Presentation

May 2012

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The information contained in this presentation has been prepared using the information available to TriAusMin at the time of preparation. This presentation contains forward-looking statements that were based on expectations, estimates and projections as of the date of this presentation. Any forward-looking statement is subject to known and unknown factors which may cause actual results and developments to materially differ from those expressed by, or implied by the forward-looking statements in this presentation.

External or other factors may have impacted on the business of TriAusMin and the content of this presentation since its preparation. TriAusMin does not undertake to update any forward-looking statements that are contained in this presentation, except in accordance with applicable securities laws. In addition, this presentation may not include all relevant information regarding TriAusMin. TriAusMin has taken all reasonable care in preparation of this presentation. However, the content of this presentation should not be relied upon in relation to any further action including investment in TriAusMin. Any person considering an investment in TriAusMin is advised to obtain independent financial advice prior to making an investment decision.

Nothing in this presentation should be construed as to constitute an offer, invitation or recommendation to subscribe for, sell or purchase any security in any jurisdiction.

Further information about TriAusMin is available at: www.triausmin.com

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Key Attributes

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Near term copper-zinc-lead-silver-gold

production potential

Active and successful exploration

program

Established Reserves & Resources

Location (prospectivity), Location

(infrastructure), Location (low risk)

Well positioned for zinc market tightening

supply

Australia

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Corporate Information

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ASX

TSXMajor Shareholder Registries

Board and management 8.0%75%

25%

Issued Capital 201 million sharesExchange Listings TSX:TOR ASX:TROMarket Capitalisation CDN$26 million AUD$21 million

Share Price CDN$0.13 AUD$0.105

Cash CDN$2.0 million AUD$2.0 million

Debt Nil

Options Outstanding 8.7 million (exercise price A$0.10-1.54 )

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Board of Directors

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Bob Valliant, BSc, PhD ‐ Director• Geologist 30+ years experience• Founder of TriAusMin• President of Tri Origin Exploration• Previously VP Exploration LAC Minerals

Highly Experienced Board of Directors

William Killinger AM, BE FIE(Aust) ‐ Chairman• 40+ years Civil Engineering experience• Previously Managing Director ‐Minproc• Responsible for major mineral, industrial,

infrastructure projects world wide

Alan Snowden ‐ Director• 30+ years in corporate finance• Previously Director & Senior Manager of

major financial institutions. • Founder of independent financial planning

group

Wayne Taylor, BE Mining, MBA - Managing Director & CEO• 20+ years mining engineering experience• Senior operational management O/P & U/G mines• Business development, project acquisition, project

funding with Glencore

James Gill, BSc, MSc, PhD - Director• Geologist 40+ years• Founder of Aur Resources,• President & CEO for 26 years

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Property Location Map

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In-situ Metal Inventory

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Projects – WRPTonnes Ounces Pounds

Zinc 250,000 550 million Lead 147,000 324 million Copper 55,000 121 million Gold 101,000 Silver 11.2 million

Projects – WRP, WUP, Lewis PondsTonnes Ounces Pounds

Zinc 1.45 million 3.2 billion Lead 0.66 million 1.5 billion Copper 0.25 million 0.6 billion Gold 0.6 million Silver 54 million

WRP – Woodlawn Retreatment Project WUP – Woodlawn Underground Project1 CIM and JORC compliant (as per the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’), 2004 Edition, JORC of AusIMM, AIG & MC, December 2004). Please refer to page 15 of the Company’s August 31, 2011 Annual Report for full JORC Compliance and Declarations regarding Resource and Reserve disclosure.

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Woodlawn Property

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3 Key Projects:‐

Woodlawn Tailings Retreatment

Woodlawn Underground

Woodlawn Regional Exploration

530 km2 land position

Resources and Reserves

Numerous base metal prospects

Woodlawn Strategy:‐

Develop Tailings Retreatment Project

Re‐open Woodlawn Underground Mine

Discover New Deposits

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Woodlawn Tailings Retreatment Project

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Key Attributes Near term production and cash flow

Feasibility Study & Front End Engineering Design complete

33% IRR on invested capital

Proven hydraulic mining method

Standard sulfide flotation processing

Established infrastructure – water, power, access

Community support

TDW - West 4.1Mt

TDN - North3.1Mt

TDS - South 4.5Mt

TDN – North3.1Mt

TDW – West4.1Mt

TDS – South4.5Mt

Tailings Dams

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Mineral Reserves: 11.2 Mt @ 2.2% Zn, 1.3% Pb, 0.5% Cu, 31 g/t Ag, 0.3 g/t AuMining: 4,300 tonnes per day (1.5 Mtpa)Mine Life: 7.5 yearsAv. Annual Production: Cu: 14,000tpa @ 22% Cu

Pb: 15,000tpa @ 35% PbZn: 49,000tpa @ 45% Zn

(tonnes of concentrate)

Development Capital: $92.8 million including a $5.6 million contingencySite Operating Costs: $22 per tonne processed

Total NSR Revenue: $586 millionPre- Tax Net Cash Flow: $199 millionPre-Tax NPV10: $81 millionC1 Unit Cost: $0.12/lb payable zinc (post by-product credits)Pre-Tax Project IRR: 33%Prices & FX: Forward curves 27-2-2012

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Project Overview(Business Case March 2012)

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CAPEX

Direct $64.8MIndirect $18.1MContingency $ 5.6MTSF4 + Mining $ 4.3M

$92.8M

Indirect: Engineering, P&G, Commissioning, First Fills

SITE OPEX

Mining 8%Reagents 46%Labour 15%Power 16%Other 15%

100%

CONSTRUCT58 weeks

COMMISSIONING15 weeks

RAMP-UP24 weeks

Development Schedule

818 66 105


Commercial Production

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EARLYORDERS8 weeks

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Hydraulic Mining

TriAusMin Drilling 2011

Woodlawn Tailings Retreatment ProjectF

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Front End Engineering Design Study

Engineering Cost Estimation Metallurgical Test Work

COMPLETED

Environmental Assessment

EA passed adequacy – early April Community sessions – 4th & 5th May EA on Exhibition (4 weeks) – 28th May

NEARING COMPLETION

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Project Status

Q1 2012 Development Decision ‐ COMPLETED

H2 2012 Project FinancingStatutory ApprovalsConstruction Commencement

Early 2014 Production Start‐upFor

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Woodlawn Underground Mining Project

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Historical Production:

1978 to 1998

13.8 Mt @ 9.1% Zn, 3.6% Pb, 1.6% Cu, 74 g/t Ag & 0.52 g/t Au

Closure 1998 – low metal prices & Denehurst corporate issues

Current Resource:

Measured + Indicated 8.6 Mt @ 10.3% Zn, 4.0% Pb, 1.8% Cu, 84 g/t Ag & 0.5 g/t Au

Inferred1.5 Mt @ 9.6% Zn, 4.1% Pb, 1.7% Cu, 87 g/t Ag & 0.6 g/t Au

In-Situ MetalZn Pb Cu Ag Au

1.03 Mt 0.41 Mt 0.18 Mt 27 Moz. 167 koz.2,270 Mlbs 890 Mlbs 400 Mlbs 27 Moz. 167 koz.

Evaluating mineability of current resources

Evaluation of high grade mineralisation below existing

resources in Q1 2012

Potential for SIGNIFICANT NEW MNE

C Lens

B Lens

630 mExtracted ore (yellow)

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Woodlawn Underground ProjectF

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“B” Lens – Hole:WLTD0114.0m @ 3.31% Cu, 13g/t Ag

&

12.1m @ 4.84% Cu, 15g/t Ag


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“I” LensHole: WLTD011W1

14.5m @ 3.66% Cu, 3.71% Pb,

11.72% Zn, 121g/t Ag, 1.92g/t Au


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Woodlawn Underground Project

I Lens

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Woodlawn Underground Longitudinal Section

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Woodlawn Property

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Established base for regional

exploration

Deposits with expansion potential

Untested base & precious metal

targets

Trucking distance of mine site

Excellent Regional Exploration Potential

539kt @ 1.8% Cu, 2.3% Pb, 13.8% Zn, 35g/t Ag

35kt @ 2.0% Cu, 2.6% Pb, 4.2% Zn, 95g/t Ag,1.8g/t Au

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Lewis Ponds Property

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Key Attributes

164 km2 property located 200 km west of

Sydney

Positive Q4 2011 drill results

Numerous untested exploration targets

Resources – Tom & Main Zones

Indicated + InferredCut-off grades (Mt) Zn

(%)Cu (%)

Pb(%)

Au (g/t)

Ag (g/t)

7% Zn eq. 2.4 4.0 0.2 2.6 2.7 121

3% Zn eq. 6.6 2.4 0.2 1.4 1.5 69

1% Zn eq. 14.3 1.6 0.1 0.9 0.9 44

Main & Tom Zones

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Lewis Ponds Deposits

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2011 drilling confirms open pit potential

Shallow mineralisation enhances economics of Tom & Main Zones

Mineralised zones remain open along strike & at depth (2012 IP review)

6.6 Mt ResourceIn-Situ Metal

349 Mlb Zn 0.32 Moz. Au203 Mlb Pb 14.6 Moz. Ag29 Mlb Cu

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1992 & 1993 IP data

Reprocessed 2012

Depth of penetration c. 80m

IP works well for shallow chargeable and conductive trends

Further work for > depth

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Lewis Ponds Deposits

200m

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Overflow Project

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Located in established regional mineral belt

Hosted small past producing base &

precious metal mine

Significant gold results to date

5.6m @ 7.3 g/t Au, 10.9% Zn, 5.5% Pb from 185m

3.5m @ 7.2 g/t Au from 18.5m

4.0m @ 2.5 g/t Au from 4m

Recent VTEM survey – identified new

exploration targetsOverflow Mine

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2012 Growth Plan

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Commence construction ‐Woodlawn Tailings Retreatment

New high grade mineralisation ‐Woodlawn Underground

Second phase work program – Woodlawn & Lewis Ponds

New regional targets – Woodlawn, Lewis Ponds & Overflow.

Enhance shareholder value and share price

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Zinc Market Observations

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Base metal markets remain structurally sound in the medium to long term Markets are typically overly optimistic on timing for new supplies and underestimate production

interruptions Zinc - particularly strong supply / demand fundamentals in the medium term

1.5 Mt of existing Zn production depleted in next 5 yrs Skorpion – 160 ktpa Century – 500 ktpa Brunswick – 200-250 ktpa Perseverance – 130 ktpa Lisheen – 170 ktpa Antamina – declining 350-400 ktpa c.<200 ktpa

Continued strong consumption growth for galvanising (54% of Zn demand) Negligible secondary market / supply (<10%)

New supply: Higher cost, higher sovereign risk, higher geographic risk Incentive price for new projects at:-

5% pre-tax IRR returns - $1.10/lb 10% pre-tax IRR returns - $1.20/lb 15% pre-tax IRR returns - $1.36/lb

Preferred average annual price estimate 2012 – 2025 $1.295/lbSource: Brook Hunt

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The TriAusMin Investment Case

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Undervalued Asset BaseWoodlawn Tailings Retreatment Project – strong business case, near term productionWoodlawn Underground Project – high grade ResourcesLewis Ponds – defined ResourcesExploration – numerous untested defined targets

Near Term Production Status & Cash FlowWoodlawn Tailings Retreatment Project

Development decision taken H1 2012 Construction H2 2012 Production 2014

High Value Production Growth PotentialWoodlawn Underground

Drilling intercepted high grade mineralisation Substantial Exploration Target Shared infrastructure with Tailings Retreatment Project

Lewis Ponds Potential to expand resources

Discovery PotentialTest known mineralisation on owned, highly rated propertiesEvaluate, acquire, test new properties

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Sydney, Australia (Registered office)

Tel: Fax:

Toronto, Canada

Tel: Fax:

www.triausmin.com

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Additional Slides

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Reserves & Resources

Project Quantity Grades

Mt Zn(%)

Cu(%)

Pb(%)

Au(g/t)

Ag(g/t)

Woodlawn Retreatment Project 9.4 2.3 0.5 1.4 0.3 32

Woodlawn Underground Project 8.6 10.3 1.8 4.0 0.5 84

Lewis Ponds 6.4 2.4 0.2 1.4 1.5 68

TOTAL 24.3 5.1 0.9 2.3 0.7 60


Mt Zn(%)

Cu(%)

Pb(%)

Au(g/t)

Ag(g/t)

Woodlawn Retreatment Project 2.3 2.1 0.4 1.3 0.3 31

Woodlawn Underground Project 1.5 9.6 1.7 4.1 0.6 87

Lewis Ponds 0.3 3.0 0.1 1.9 1.1 96

TOTAL 4.0 5.0 0.9 2.4 0.5 56

Measured + Indicated Mineral Resources1

Inferred Mineral Resources1

1 CIM and JORC compliant (as per the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’), 2004 Edition, JORC of AusIMM, AIG & MC, December 2004). Please refer to page 15 of the Company’s August 31, 2011 Annual Report for full JORC Compliance and Declarations regarding Resource and Reserve disclosure.

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Reserves & Resources


Mt Zn(%)

Cu(%)

Pb(%)

Au(g/t)

Ag(g/t)

South Dam Proven 2.43 2.52 0.47 1.15 0.21 23.9

Probable 1.86 2.32 0.47 1.15 0.21 22.9

Prov + Prob 4.29 2.43 0.47 1.15 0.21 23.4

West Dam Proven 2.05 1.94 0.59 1.42 0.36 34.6

Probable 1.88 1.85 0.59 1.46 0.36 35.1

Prov + Prob 3.93 1.90 0.59 1.44 0.36 34.9

North Dam Proven 0.83 2.28 0.42 1.39 0.27 34.9

Probable 2.20 2.36 0.39 1.37 0.26 37.7

Prov + Prob 3.02 2.34 0.40 1.38 0.26 36.9

TOTAL Proven 5.31 2.33 0.52 1.33 0.30 30.6

Probable 5.94 2.25 0.49 1.36 0.29 33.0

Prov + Prob 11.24 2.22 0.49 1.31 0.28 31.1

Woodlawn Retreatment Project Mineral Reserves1

1 CIM and JORC compliant (as per the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’), 2004 Edition, JORC of AusIMM, AIG & MC, December 2004). Please refer to page 15 of the Company’s August 31, 2011 Annual Report for full JORC Compliance and Declarations regarding Resource and Reserve disclosure.

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80% 85% 90% 95% 100% 105% 110% 115% 120%

Pre Tax IRR

Variance

FX

Price ‐ General

OPEX ‐ General

OPEX ‐ Labour

OPEX ‐ Power

Metallurgical Recovery

CAPEX

Woodlawn Tailings Retreatment ProjectF

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The TriAusMin Investment Case

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Low Share Price & Market Capitalisation

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

A$0.00

A$0.20

A$0.40

A$0.60

A$0.80

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A$1.20

A$1.40

A$1.60

A$1.80

A$2.00

Jan‐04 Jan‐05 Jan‐06 Jan‐07 Jan‐08 Jan‐09 Jan‐10 Jan‐11

Zn Pric

e US$/lb

TRO/TOR Share Price (A$)

TRO/TOR Price Zn Price

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