Projects

PERKOA - ZINC MINE

• High-grade Volcanogenic Massive Sulphide (VMS) zinc deposit in Burkina Faso;
• Ore reserve of 6.3 million tonnes at a mine head grade of 14.5% zinc;
• Proposed plant throughput of 525,000 tpa to produce 132,000 tpa clean zinc concentrate with 53% grade over a 12.5 year mine life;
• Contained zinc value >US$2.7 billion at zinc price of US$3,000/t;
• Exploitation Licence covering all mining activities granted in March 2007;
• DRA Mineral projects appointed EPC manager;
• Optimise mine design to enhance mining efficiencies, reduce overall costs and expedite mine schedule to access first ore;
• Key site contractors appointed including:
  • Byrnecut Mining - Managing contractor for the construction and mining of the underground mine;
  • DRA Mineral projects - Engineering, Procurement and Construction Manager for plant and infrastructure;
  • Xstrata Zinc, Votarantim Metais and Boliden - Concentrate off-take partners;
  • Letters of intent signed by offtake partners, Xstrata Zinc and Boliden;
  • Banlaw Africa – Construction and surface civil infrastructure;
  • Bollore – Transport logistics of ore from site to Port of Adidjan;
  • Outotec (formerly Outokumpu) – Manufacture and supply of Perkoa mill, flotation cells and thickener units;
  • Sandvik – Manufacture and supply of Axera 7 drilling ‘jumbo’ used for the development of the underground mine workings;
  • SHELL – Supply and management of fuel facility;
  • Caterpillar – Supply of diesel generated power station;
  • Caterpillar – Manufacture of underground mining equipment;
  • Sandvik – Supply of crushing and grinding;
  • African Explosives Limited – Supply and management of explosivesNational and Overseas Modular Buildings – Supply of offices, accommodation and changeroom facilities;
  • Allterrain Services Group – Catering and camp management;
  • SOS International – Medical, Emergency and Evacuation;
  • West African Drilling Services/Boart Longyear – Exploration drilling contractors;
  • TOYOTA – Supply of site vehicles.
• Box cut construction completed in June 2007;
• Advanced negotiation with potential offtake partners - Votorantim Metais, Xstrata Zinc and Boliden.

mumbwa - GOLD/COPPER PROJECT

• Interpretation of BHPB’s Falcon™ data with 3D inversions and the application of BHPB’s Solid Earth™ proprietary technology identified anomalous zones over the Kitumba Hills, Worm and Mutoya prospects;
• Initial 8 hole core drilling program totalling 4,105.17m was completed in February 2007;
• A major drilling will commence late January 2008. The Company has engaged three drilling rigs to complete 20 cored holes for a total of approximately 10,200 metres.
• Hole, S36-001, was drilled to a total depth of 697.4m, and intersected mineralisation yielding 655m at 0.46% copper, including:
  • 317m @ 0.79% Cu,
  • 18m @ 0.20g/t Au,
  • 42m @ 2.01% Cu, including
  • 4m @ 5.56% Cu.
  • Soil geochemical survey over drilled anomalies displayed elevated gold response over S36;

MOKOPANE - NICKEL/PLATINUM PROJECT

• Nickel-Platinum project located on the Northern limb of the Bushveld Complex;
• Granted new order rightsover 3,000 hectares for exploration purposes;
• Appointment of Black Economic Empowerment (BEE) party;
• JORC compliant Inferred Resource of 39.7 million tonnes at 0.146% nickel, 0.085% copper, 0.22 g/t platinum and 0.33g/t palladium;
• Near surface mineralisation is amenable to low cost, large scale, open pit mining with low strip ratio;
• Significant potential to increase current resource by additional drilling from all 5 prospects within the licence area;
• Considering a percussion drilling program to further define the resource status from all 5 prospects.