Boonanarring and Atlas Development Project

SUMMARY

The Boonanarring and Atlas deposits (situated near Gingin and inland from Cervantes respectively) form part of the Company’s North Perth Basin Mineral Sands Project, which represents one of the highest grade mineral sands Resources under evaluation worldwide. Boonanarring and Atlas represent a total Resource of 32.3 million tonnes @ 8.1% heavy minerals and the intention is to mine the deposits at a rate of 3.3Mtpa over a projected 10-year mine life. Annual production from the mine is expected to average 89,000t of ilmenite, 5,400t of leucoxene, 9,000t of rutile and 32,400t of zircon for a combined annual production of these heavy minerals of 135,900t. Conversion from Resources to Reserves has been carried out through open pit optimisation and economic modelling using realistic and achievable operating parameters, costs and widely publicised industry pricing forecasts (again, please refer to the ASX Release for more details).

Table 1: Reserves
Site Category Reserves
kt %HM Zircon in HM% VHM in HM% % Slimes
Boonanarring (Note 1) Probable 14,420 8.3% 24.5% 80.3% 17.0%
Atlas(Note 2) Probable 9,600 8.1% 11.0% 74.1% 15.5%
Total Probable 24,020 8.2% 19.1% 77.8% 16.4%
Excluded Resources
Boonanarring Inferred 2,800 5.8% 17.3% 84.4% 17.5%
Atlas Inferred 50 8.9% 9.1% 80.7% 8%

Note 1: Boonanarring Probable Reserves include 1.67Mt of ‘Unclassified’ material at 2.1%HM which is treated as planned dilution.

Note 2: 17kt of ‘Unclassified’ material at 0.7%HM is treated as planned dilution at Atlas