fortune favours the bold ~ creating a mining company using proprietary mineral processing technology...

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  • Fortune Favours the Bold ~ Creating a mining company using proprietary mineral processing technology ~ FINEX 08 23-24 September 2008
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  • AGM Presentation June 2008 2 Disclaimer THIS DOCUMENT IS BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. This document is being communicated in the United Kingdom only to (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the Order) or (b) High Net Worth Entities within Article 49(2) of the Order (all such persons being referred to as relevant persons). This document is only directed at relevant persons, and any investment or investment activity to which this presentation relates is only available to relevant persons or will be engaged in only with relevant persons. Solicitations resulting from this document will only be responded to if the person concerned is a relevant person. Other persons should not act upon this document or any of its contents. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. The information in this document, is subject to updating, completion and revision, further verification and amendment. No representation is made by Alexander Mining plc or any of their principals, advisers, representatives, agents, officers, directors or employees as to, and no responsibility, warranty or liability is accepted for, the accuracy, reliability, or reasonableness or completeness of the contents in this document. No responsibility is accepted by any of them for any errors, mis-statements in, or omissions from, this document, nor for any direct or consequential loss howsoever arising from any use of, or reliance on, this document or otherwise in connection with it. The information in this document is confidential and must not be copied, reproduced or distributed to others at any time. This document does not constitute an invitation to buy shares in Alexander Mining plc. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration. Safe Harbour statement: this document may contain forward- looking statements that reflect the Company's current expectations regarding future events, including the development of the Company's projects, as well as the Company's working capital requirements and future capital raising activities. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the success of the Company's development strategies, and the successful and timely completion of clinical studies, the ability of the Company to obtain additional financing for its operations and the market conditions affecting the availability and terms of such financing.
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  • AGM Presentation June 2008 Introduction LSE-AIM quoted mining company Admitted to AIM 4 April 2005, AIM ticker: AXM Experienced board and senior management team Initial portfolio of copper, gold and silver properties in South America Fortuitous development of proprietary mineral processing technology New focus on growth by building a mining company using innovative and proprietary mineral processing technology 3
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  • AGM Presentation June 2008 Mining Companies Raison d'tre 1.Survival 2.Profitability: Stable earnings Earnings growth Disposals 3.Growth 4
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  • AGM Presentation June 2008 Mining Basics - Theory Turnings rock in the ground into profits! Or more eloquently The fundamental value of a mineral deposit ultimately depends entirely on its capacity to support an economically viable mining operation in the future 5
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  • AGM Presentation June 2008 The best route to create shareholder value? 1.Through exploration? 2.Mine development? 3.Project acquisition? 4.Corporate M&A? 6 A combination?
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  • AGM Presentation June 2008 A Risky Business in a Risky World Macro risks: Country, commodity price, global economics Micro risks: from exploration concept to mine production: Exploration tenement acquisition, target concept, reconnaissance, anomalies, targets, detailed exploration, discovery, resource delineation/definition Project scoping study, pre-feasibility, bankable feasibility study, permitting, financing, construction, commissioning Mining technical, geotechnical, economics 7
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  • AGM Presentation June 2008 Mining Industry Reality Statistically its a tough business and getting harder Out of thousands of grass roots exploration prospects only a few ever make it to become mines with a satisfactory return on capital Constant pressure on the industry to improve the odds of success and to lower costs Environmental obligations for higher standards Notwithstanding industrys inherent conservatism, technology has a significant role 8
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  • AGM Presentation June 2008 Mining Industry & Technology Buoyant international mining industry, plus upwards operating cost pressures, means desire to embrace new technologies will intensify. Major technology breakthroughs in the last few decades: Exploration (geophysics/remote sensing), Mineral processing (gold & copper heap leaching, smelting and HPAL) and Mining (explosives, underground mechanisation, open pit excavators and haulage trucks, and computer control). Deposits are becoming harder to find and mine more underground mines Arguably, most potential for technical innovation is in mineral processing. 9
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  • AGM Presentation June 2008 Leon Copper Project Salta Province, north-west Argentina Advanced copper oxide heap leach SX- EW open pit mine project Sediment hosted stratabound deposit resource of 6.66Mt @ 0.62% Cu & 18g/t Ag Mineralisation (malachite (~70%) & azurite) primarily in limestone to around 70m depth
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  • AGM Presentation June 2008 Leon Project The processing problem: Very high acid consumption (up to 1,000kg/t of ore) 11
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  • AGM Presentation June 2008 Leon Project Necessity is the mother of invention Socrates Necessity is the mother of taking chances - Mark Twain 12 Heath Robinsons view
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  • AGM Presentation June 2008 Leon Project The solution: Ammonia as the leachant and the development of the AmmLeach process. Successfully demonstrated in the Leon pilot plant. 13
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  • AGM Presentation June 2008 Leon AmmLeach pilot plant First 500t heap test leached ore on padSX-EW pilot plant
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  • 16 MetaLeach owns the intellectual property to two hydrometallurgical technologies where provisional patents have been filed, namely:
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  • 17 Key personnel Garry Johnston - Technical Director B.Sc. Chemistry, University of Western Australia M.Sc. (dist.), Mineral Economics, Curtin University and University Medal 11years with BHP/Newcrest as Manager 4 years as CEO and Director of Gold Mines of Sardinia 5 years as MD/Principal of junior explorer and innovative exploration project generator 3 years as a consultant 2 provisional patents
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  • 18 Key personnel Associate Professor Nicholas Welham - Principal Technological Consultant B.Eng. (Hons) in Minerals Engineering, University of Leeds, Ph.D. Royal School of Mines, Imperial College, London 8 years as researcher at Australian National University 6 years, Senior Lecturer in Hydrometallurgy at Murdoch University Currently, Xstrata Zinc Alliance Associate Professor at University of Ballarat Two edited proceedings, >70 journal papers, R. W. Raymond Award for best paper published by AIME in 2003 plenary conference Over 30 conference presentations and Editor-in-Chief of the journal Hydrometallurgy
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  • 19 Background Favourable environment to embrace new technologies. Focused on hydrometallurgical solutions that add value at the mine site. Cost effective ambient whole ore leaching process using either agitated tanks or heaps. Conventional and marketable intermediate products Purification and concentration using SX-EW.
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  • 20 Copper extractive metallurgy Global mined copper production is around 16.5Mtpa . .. Approx. a quarter produced using hydrometallurgy and rising. Main process is copper acid leaching and SX-EW of oxides and secondary sulphide ores but acid prices have risen sharply. Heap and dump leaching dominates as the leaching process. Chalcopyrite (CuFeS 2 ) concentrates are invariably smelted and account for around three-quarters of global copper produced
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  • 21 Copper heap leach, SX-EW Production using leaching recorded in 17/18 th century at Rio Tinto mine in southern Spain First commercial leach SX-EW plant started in late 1960 s in Arizona @ 6ktpa First large plant in 1973 in Zambia @ 100ktpa By 1980s major plants in USA, Mexico and Chile Now accounts for ~ 3.5Mtpa (~21%) of world copper production
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  • 22 Zinc extractive metallurgy Global mined zinc production is around 12.7Mtpa Most world zinc metal produ


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