Project update April 2008 Eastern States Roadshow

Transcription

1 NiWest Nickel Laterite Project Project update April 2008 Eastern States Roadshow

2 An Emerging Australian Nickel Company Developing the NiWest Nickel Laterite Project, Western Australia (100%) World-class resource base over 1.0Mt contained Ni, 85kt Co BEST undeveloped Laterite Ni project in Australia Potential to become top-10 global nickel producer Pre-Feasibility completed in 2007 Feasibility Study underway on expanded A$1.1bn (approx) heap leach project Strong investment proposition underpinned by accepted leach technology Experienced Board Strengthened Management team

3 Our Vision Our Vision is to develop a profitable, long-term nickel business in Western Australia capable of sustaining production of +35,000tpa of contained nickel over a year mine life

4 Corporate Summary GME Resources Ltd ASX Code: GME Shares on issue: 253M Current share price: $0.40 Market capitalisation: ~$100M Cash reserves (at 05 May 2008): $7M Major Shareholders Retirewise Capital Pty Ltd 16.82% ANZ Nominees Limited 7.73% Mandalup Investments t Pty Ltd 6.29% Retford Resources NL 5.33% Top 20 (at 05 May 2008) 63.3% Directors and Management 15%

5 Board and Management Michael Perrott Chairman 39 years construction, contracting, mining and land development experience. Chairman of Port Bouvard Limited; Director of Portman Limited; and, Director of Schaffer Corporation Limited; David Varcoe Managing Director Mining engineer with 20 years experience Extensive senior managerial and technical positions at Sons of Gwalia, Centaur, WMC, and Goldfields St Ives and Rio Tinto Jamie Sullivan Executive Director 25 years experience in businesses operating in the Goldfields. Instrumental in Golden Cliffs Prospecting Syndicate -acquired by GME in Expertise in mining and exploration supply and logistics; tenement management; land access issues; and, native title.

6 Board and Management (cont..) Geoffrey Motteram Director Metallurgical l engineer with over 35 years experience. Experience in gold and base metals at WMC s Kwinana Nickel Refinery and Kalgoorlie Nickel Smelter; BHP, Metals Exploration and Minara Resources Limited. Peter Sullivan Director 20 years experience in engineering, i corporate finance and corporate development roles. Chief Executive Officer of Resolute Mining Limited since Mick Ryan Project Manager 30 years experience in the metallurgical field as a practitioner and consultant. Experience includes Port Kembla Steelworks, Telfer, Red Dome, Mt Morgans, Yakabindie and Annoconda. Consulted on heap leach, CIP, flotation ti and hydrometallurgy.

7 NiWest Nickel Laterite Project The best undeveloped nickel laterite project in Australia Located 280km NE of Kalgoorlie: Adjacent to Murrin Murrin Nickel Operations (Minara Resources) Excellent regional infrastructure Open access rail, roads, gas pipeline Combined resource 1.0 Mt contained Ni, 85kt contained Co (0.8%COG) Over 300km 2 of tenements 165,000 metres of exploration drilling to date Conducive environmental and climatic conditions for heap leaching Port Hedland Karratha Carnarvon Geraldton PERTH Broome NiWest Nickel Laterite Project Esperance Albany

8 Australia s Nickel Laterite Centre

9 Why Heap Leach? Lower capital-cost cost alternative to HPAL, Atmospheric leach. Technically proven A$300M Murrin Murrin preferred expansion option, underway. Successful column test results for NiWest ore - Recoveries of up to 80% in 120 days Potential to unlock large-scale nickel laterite resources European Nickel (AIM: ENK) 20,000 tpa Ni Aker Kvaerner BFS Under construction

10 Why Heap Leach? Security Administration MCC Crib Room Sulphur Storage Acid Plant Lab Warehouse Workshop Mixed Sulphide FIlter Power Station Neutralisation Sulphide Precipitation Acid Regeneration Heap Leach Pad Solution Bleed Reclaimer PLS Pond Heap Feed Pond Gypsum Residue Filter Sulphide Reagent ILS Pond 1 Calcrete ILS Pond 2 Water Treatment Flocculant Calcrete Stockpile Environmental (Storm) Pond Flare Tower Stacker Leach Ore Transfer

11 Resource Modelling/Major review Advanced d modelling techniques being employed

12 Geology Hepi is very high grade 5km of continuous ore zone

13 Hepi Grade Control 1.94 % Ni 2.1 % Ni 2.53 % Ni 2.51 % Ni 1.97% Ni 1.28 % Ni 1.16 % Ni 1.13 % Ni 1.15 % Ni 1.48 % Ni 2.08 % Ni 1.62 % Ni 2.37 % Ni 1.88 % Ni 2.34 % Ni 2.15 % Ni 1.67 % Ni 2.13 % Ni 2.28 % Ni 1.06 % Ni 1.3 % Ni 3.06 % Ni 3.08 % Ni 2.06 % Ni 2.41% Ni 2.65% Ni 3.04% Ni 2.24% Ni 2.42% Ni 2.18% Ni 2.63% Ni 2.34% Ni 2.6% Ni 1.06 % Ni 1.02 % Ni

14 Metallurgical Test work

15 10 Column tests to date 70 to 80 % Nickel recovery in 120 days

16 Hepi Trial Major equipment purchased from Heron Resources 4000 tonne trial envisaged Last quarter of 2008 Test geotechnical, scale up and downstream processing options.

17 2007 Robust Pre-Feasibility Study Engineer - Aker Kvaerner Base Operation Throughput h 1.5mtpa Mixed Sulphide Product Small scale higher grade Minimum 20 year Mine life Used as basis for Expansion to 30-35,000 tpa Ni.

18 Project Fundamentals & Key Advantages World-class resource base Over 300km 2 of tenements Adjacent to major existing infrastructure: t Open access railway line linked to ports (Esperance & Fremantle) Gas pipe line Established township Arterial bitumen road Nickel Refinery/Smelter Metallurgical testwork confirms 70 to 80% Ni recovery in 120 days

19 Expanded Development Case - Overview 21 April GME announced nced expanded nickel development elopment strategy for NiWest Nickel Laterite Project Identified d expanded d scope ,000tpa t nickel metal production Major resource review underway confirmed continuity of 0.8% Ni ore zones over a strike length of +5km Feasibility Study on expanded Mtpa heap leach project over 20 years Robust economics indicated with potential A$ billion NPV

20 Expanded case - Valuation

21 Development Timeline

22 Summary Investment Highlights 100% owned, world class resource base 1.0Mt nickel, 85kt cobalt (0.8%Ni COG) Positive results from metallurgical test work Adjacent to major infrastructure road, rail and gas MMJV heap leach in operation Financially robust pre-feasibility study completed 2007 Feasibility study underway on expanded A$1.1bn (approx) heap leach project, based on 30-35,000tpa

23 Summary Investment Highlights (cont...) Revised demonstration trial announced Environmental surveys are advanceda Ground water exploration underway Grade control drilling completed at Hepi Mine Major resource review underway Production target 2012 Potential to be top-10 global nickel producer A prosperous outlook, forecasted growth in nickel price

24 NiWest Nickel Laterite Project Thank you

25 Competent Persons Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Stephen Hyland, Mr Bill Hill and Mr Steve Goertz who are members of The Australasian Institute of Mining and Metallurgy. Mr Hyland is a Principal Consultant with Ravensgate Minerals Industry Consultants who consults to the Company. Mr Hill is self employed and consults to the Company as and when required, Mr Hill has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Hill, Mr Hyland and Mr Goertz consent to the inclusion in the report of the matters based on information provided in the form and context in which it appears.

26 Disclaimer This presentation has been prepared by the management of GME Resources Ltd (the Company) for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where an opinion is expressed in this document it is based on assumptions and limitations mentioned herein and are an expression of present opinions only. No warranties or representations can be made as to the accuracy, validity, completeness or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for loses, claims, damages, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where the Company expresses or implies an expectation or belief as to the success of future development and economic viability of the Niwest Nickel Laterite Project, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by forecasts made in this presentation. Such risks include, but are not limited i to, exploration success, nickel and cobalt price volatility, changes to current mineral resources estimates, changes to assumptions for capital and operating costs as well as political and operational risks and government regulation outcomes. This presentation does not take into account the investment objectives, financial situation or particular needs of any investor, potential ti investor or any other person. Such persons should consider seeking independent d professional advice depending on their specific investment objectives, financial situation or particular needs.