Anthony Molybdenum Project Zamia Metals Limited March 2011 ASX:ZGM - PowerPoint PPT Presentation

Anthony Molybdenum Project Zamia Metals Limited March 2011 ASX:ZGM

Forward-Looking Statements Disclaimer This document contains certain "forward – looking statements", including, but not limited to, statements concerning current and future drilling programmes, estimation of mineral resources, the continuing development plan, the type of mineralisation present and expected results. Information inferred from the interpretation of drilling results may be deemed to be a forward looking statement, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Statements and estimates concerning mineral resources may also be deemed to be forward looking statements in that they involve estimates, based on certain assumptions, regarding the mineralisation that would be encountered if and when a mineral deposit is actually developed and mined. Forward looking statements are not historical facts, and are subject to a number of risks and uncertainties beyond management’s control. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward – looking statements include, among other things, but without limitation, those set forth in the Annual Report and the website (www.zamia.com.au) of Zamia Metals Limited (‘Zamia’). For more information about the Company’s properties and projects, please refer to the Annual Report. The technical information contained in this document was compiled by Dr Ken Maiden, Executive Chairman of Zamia Metals Limited. Dr Maiden is a Member of the Australian Institute of Geoscientists and a Fellow of the Australasian Institute of Mining and Metallurgy. He has sufficient experience to qualify as a Competent Person as defined in the September 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Maiden consents to the inclusion of the matters in the form and context in which they appear. ASX:ZGM 2

Directors  Ken Maiden Executive Chairman Geologist with 38 years professional experience  Chen Qiang Non Executive Director International commodities trader and investor, Mining Engineer  Andrew Skinner Non Executive Director Chartered accountant  Alan Humphris Non Executive Director Investment Banker  John Stone Company Secretary ASX:ZGM 3

Management Team Dr Ken Maiden - Executive Chairman 35 years in geology/exploration with major resource companies (CSR and MIM) and as a mineral exploration consultant in Australia, southern and central Africa, and Southeast Asia. John Stone – Company Secretary 30 years in Australian and international corporate markets; Director and Company Secretary for a diverse range of private and public listed companies. Barry Neal – Chief Financial Officer 15 years with Australian Trade Commission in Europe and Asia; 20 years accounting and company secretarial roles in range of industries including exploration. Dr Colin Seaborn – General Manager Project Development 20 years with CRA (Rio) in metallurgy, business analysis and general management then 15 years industry consulting. Sam Garrett - Manager Exploration 20 years in gold and base metal exploration programmes, including porphyry copper, in India, Asia, South America, New Zealand and Australia including copper/gold projects in Queensland. Penny Daven – Senior Geologist/Tenement Management 10 years experience as a base metal and coal exploration geologist; 10 years with the NSW Department of Primary Industries, Geological Survey Division. Graeme Deegan – Manager Business Services 10 years in technical roles in overseas oil & gas industry; 24 years in commercial and business management roles in the Australian and international mining industry. Geologists and Field Staff are also based at Clermont, Central Queensland ASX:ZGM 4

Capital Structure - as at 25 January 2011 Shares 187,245,109 Options 20,800,000 # Shareholders 950 Holder Name % Brownstone International Pty Ltd 12.2 Hangzhou Kings Industry Co Limited 10.5 West Minerals Pty Ltd 9.3 International Base Metals Limited 7.3 Dr Deng Jiniu 4.6 Great Sea Wave Investment Pty Ltd 3.5 Mr Geng Haitao 3.4 Mrs Li Zhou 3.1 Mr Salvatore Di Vincenzo 2.2 Qinghai Genlid Mining Investment & Management Co Limited 2.1 Citi Resources Co Limited 2.1 ASX:ZGM 5

Zamia Capital Raising History Share issue date Share value Share price Share based payment to IBML 28/01/2009 $ 92,535 5.0c Share based payment to IBML 11/06/2009 $ 105,958 2.5c Share placement 30/09/2009 $ 341,250 3.0c Share purchase plan 23/11/2009 $ 780,000 3.0c Share based payment to John Burnett 18/01/2010 $ 6,700 5.5c Share placement 4/02/2010 $ 1,300,000 5.5c Share placement 25/06/2010 $ 1,400,000 7.0c Share placement 7/09/2010 $ 1,000,000 7.0c Share placement 30/11/2010 $ 1,600,000 10.0c ASX:ZGM 6

Zamia Share Price ASX:ZGM 7

Molybdenum - Chemical Symbol Mo Attributes:  Heavy metal  Very high melting point + 2,600°C  Steel, alloyed with Mo, is stronger & more resistant to heat & corrosion Major uses:  Construction steel  Stainless steel Emerging uses:  Thin film solar panels  Clean, efficient production of hydrogen ASX:ZGM Source: Mineral Information Institute Source: International Molybdenum Association 8

Molybdenum Price ASX:ZGM 9

Molybdenum Price Supply:  25 years of low Mo prices until 2005: – Little exploration – Last new large Mo mine – 1982 – New mines delayed by financial crisis  Existing mines require expansion Demand:  By- product producers can’t  Consumption grew by 6%p.a. easily expand production between 2002 – 2010  Supply deficit requires new  Demand increase 4 – 6%p.a. producers next 20 years  Chinese continuing to stockpile  Source: Roskill Market Outlook to 2014 Supply deficit anticipated by 2014 ASX:ZGM 10

Anthony Mo Project Location ASX:ZGM 11

Advantages of Queensland  Good infrastructure  Plenty of power  Plenty of water  Good tenement management system  Queensland welcomes mining ASX:ZGM 12

Project Area Belyando gold mine Anthony Mo deposit ASX:ZGM 13

Geological Setting 400 million years ago … Central Queensland was an active volcanic area -  igneous intrusions  volcanic eruptions  hydrothermal activity ASX:ZGM 14

Geological Setting Hydrothermal activity  rock alteration  deposits Mo Au Cu ASX:ZGM 15

Geological Setting Molybdenite Eroded & oxidised oxidised to Mo-Fe (weathered) to 60 – oxide 80m depth Base of weathering Primary molybdenite ASX:ZGM 16

Discovery: Mo-in-Soil ASX:ZGM 17

Style of Mineralisation Mo-quartz infill in micro-breccia Vein stockwork in altered porphyry ASX:ZGM 18

Anthony Drill Plan ASX:ZGM 19

West-East Section The section shows the preliminary pit design at different Mo prices ASX:ZGM 20

North-South Section The section shows the preliminary pit design at different Mo prices ASX:ZGM 21

Australian Molybdenum Projects Anthony Zamia Metals Limited Location: 240KM SW of Mackay Resource: 173Mt inferred resource with 430ppm Mo Status: • Scoping Study underway • Further resource upgrades within a few months • Excellent location • Pre-concentration gives 1000ppm Mo process throughput • Based on US$17.30/lb price and Merlin Spinifex Ridge 100% recovery, the value of the Ivanhoe Australia Limited Moly Mines Limited ore is US$38.12/tonne Location: Sth of Cloncurry Location: 140km E of Port Hedland Resource: 6.7Mt resource with Resource: 652Mt measured and Whitewash 1.34% Mo, indicated resources grading Aussie Q Resources Limited Status: 0.05%Mo, 0.08%Cu and 1.3g/tAg Location: 130Km W of Bundaberg • Average life-of-mine costs of Status: Resource: 71Mt inferred resource with US$115/tonne due to underground • Proposed to have open cut starting 300ppm Mo, 0.1%Cu and 1.2g/t Ag steeply dipping narrow ore body; with 10mtpa production increasing Status: driving decline to underground to 20mtpa in year 7. • Raised capital for scoping study to resource (Feb 2011); • Capex for 10mtpa case is $674m commence in Q1, 2011; • PFS planned to be completed Q1, ($76m already spent). • Resource update planned for April 2011; 2011. • Financing dependent on better Mo • No clear geological model. • Still looking at roasting options to prices above US17.30/lb and/or • Low Mo and Cu grade so one will maximise Rhenium value as better exchange rate (ASX 18 Jan contaminate the other. Rhenium provides 40% value in ore 2011). • At 300 ppm (0.66 lb/tonne) Mo US$17.30/lb • Decision by end of 2011 price value of ore is US$11.40/tonne at 100% recovery; at 0.1% (2.2lb) Cu and US$4.30/lb value of Cu at 100% recovery is US$9.50/tonne of ore. • However, Mo recoveries are likely to be lower than Zamia because of cross contamination of Cu and Mo in concentrates ASX:ZGM