Tala Hamza - a world class zinc project
PresentationDecember 2006
Tala Hamza 238metres above sealevel
Tala Hamza history
Location : 270 kilometres east of Algiers
10 kilometres south of Bejaia
(deep water port, international airport
and city of 150,000 plus)
History : ORGM exploration 1980s extensive exploration
Centrale du massif discovered 1987
Deposit delineated 1990 - 1994 (40 holes)
Terramin first discussions with ENOF 2004
Western Mediterranean Zinc formed 2006
Tala Hazma summary
Existing resource
• 40 holes 17,000 metres
• Vulcan estimate 50 million tonnes 5.3%Zn 1.4%Pb
• Average thickness 98 metres
• High grade 8 million tonnes 10.1%Zn 3.4%Pb
Oued Amizour is a stratiform ore body, hosted within the lower volcanicand plutonic complex.
Tala Hamza orebody
Whole deposit50.1 million tonnes @ 5.3% Zn
& 1.4% Pb
includingHigh grade core7.8 million tonnes @ 10.1% Zn
& 3.4% Pb
Tala Hamza potential
S-63 stopped short in high grade mineralisation
to the south
XS24
100m
100m
6 High Grade Core
Hole Metres Zn% Pb%
5 5 2 4 7 . 6 0 . 7
6 4 4 8 12.1 2 . 1
6 6 1 8 12.0 1 . 8
6 8 7 8 10.3 3 . 5
7 9 3 6 13.8 3 . 5
9 5 4 1 9 . 5 1 . 3
1 0 0 2 9 9 . 4 3 . 4
1 0 2 1 1 9 11.2 4 . 1 … company estimate 7.8Mt at 10.1% Zn and 3.4% Pb
S-29
S-28
S-27 S-26
S-33
S-31
S-49S-48 S-45
S-50
S-42
S-56
S-51
S-43
S-47
S-52
S-69 S-64
S-63
S-53
S-79
S-68
S-76
S-78S-77
S-66
S-61
S-57
S-73
S-72
S-55
SH-1 S-71
S-74
S-70
S-75
S-47S-67
S-40
S-39
S-38
S-32
S-30
S-37
S-60S-65
S-46
S-41
S-44
S-36
S-35
S-18
S-9,16
1/93
2/93
2/93
3/93
1/93
4/93 5/936/93
7/93
3/93
Wider potential
These VHMS deposits generally come in clusters
EW structure:Part of a family creatinghorsts and grabens inthe region
NW-SEstructure
Nait Larbi FZBouzenan FZ
8 First five months
Objective: Confirm geology and investigate metallurgy
• ORGM Longyear drilling rig
• Drilled three holes
• Spektra rig on way to site
• Mobilize geological team (multi-lingual)
• Dispatched Hole 2 core to Australia
• Categorise mineralogy
• Mineral processing testwork at Optimet
• Commenced geotechnical review with Golders
• Scoping study with Worley Parsons Komax
Resource definition program
Regional exploration
End
10
Current Drilling - Hole 1
11Mineralisation
12 Mineral processingOre mined and treated tonne 1,200,000pa 3,000,000paHead GradeZinc %Zn 9.3 7.7
Lead %Pb 3.2 2.3Silver g/tAg 6 6
RecoveryZinc to Zn concentrate %Zn 85 80Lead to Pb concentrate %Pb 75 70Silver to Ag concentrate %Ag 70 70
Zinc concentrate produced tonne 193,000 368,000Concentrate grade %Zn 50 50
Lead concentrate produced tonne 44,000 74,000Concentrate grade %Pb 65 65Concentrate grade g/tAg 114 170
Smelter Returns (NSR)Zinc concentrate US$/t concentrate 703 703Lead concentrate US$/t concentrate 417 417
Annual Smelter Revenue US$M 154 290
Metal price forecast (2008) Zn $2204/t; Pb $882/t; Ag 7.00/oz Treatment Charges: Zn $110/t $0.14pp; Pb $140/t $0.10pp; Ag $10/kg
Bankable Feasibility PhasedProcess
2010EPC (M?)5
2008BFS +/- 10% to 15%4
2008Pre-Feasibility Study +/- 20%3
2007Conceptual Study +/- 30%2
2007Desk Top1
CompletionTitlePhase
14Project Feasibility CostUS$M
Confirmation
•Mobilisation, permits & 2 hole program 0.5
Scoping
•In-fill & expansion drilling 3
•Preliminary metallurgical testwork 0.15
•Engineering study 0.85
Pre-feasibilty
•Expansion & near mine drilling 6
•Orebody variability analysis 4
•Engineering study4
Feasibility
•Engineering, permitting, financing 6
15
Mining - Indicative Ore body
OreBody (indicitive)Tonnage Volume PbZn Zn Pb
Above -120RL 3,885,669 1,050,181 6.0 5.3 0.8Production From - 210L 21,205,331 5,731,171 8.0 6.3 1.6Production From - 300L 17,124,629 4,628,278 9.6 7.4 2.2Below -300RL 1,284,756 347,231 6.4 1.3 5.0
43,500,385 11,756,861 8.4 6.5 1.9
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