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Diggers and Dealers, Kalgoorlie Owen L Hegarty Managing Director and CEOAUGUST 2007F
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2Oxiana - value, growth, performance orientation
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL
Shares: 1,529 MillionUnlisted options: 23 MillionTurnover: 15m Shares/dayMarket Cap: A$5.5 Billion
DEVELOPMENTSMARTABE
Nth America
7%
UK/Europe22%
Asia 2% Other
1%
Australia68%
Management3%
Retail47%
Institutions50%
Ownership
0
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1,500
2,000
2,500
3,000
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4,000
4,500
5,000
5,500
6,000
Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07
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$M
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$0.50
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Mkt Cap Price
First gold at Sepon
Acquired Prominent Hill
First copper at Sepon
Acquired Golden Grove
Construction start Prominent Hill
Acquired Agincourt
Listed: ASXCode & Index: OXR, S&P ASX 100ADR Listing USA: OXFLYShare Price 02/08/07: A$3.69
‘Digger of the Year’
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3Quality assets, quality people, Australia - Asia - Pacific focus
VISIONTo build a major mining company
STRATEGYAsia, Australia, PacificBase and Precious metals High margin, long life, upside Organic growthAcquisition
PERFORMANCE MISSIONQuadruple bottom line excellence
VALUESRespect and OpennessAction and Performance
Sepon Gold and Copper Operations, Laos
Prominent Hill Copper-Gold Mine Development Australia
Yunnan & Sichuan JVs, China MinMetals MOU
Operation
Development
Exploration
Shin Ha JV, Cambodia
Golden GroveZinc, Copper, Precious Metals
Operation, Australia
Exploration JVs, QLD & SA
Kalimantan, Indonesia
Lake Way – 57%
Thai Goldfields JV, Thailand
Martabe – Indonesia
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
17% of Royalco ResourcesPhilippines
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4Commodities the winners
Average Annual GDP Growth Forecasts 2012-2016Source: Access Economics, Consensus Economics
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8%
German
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Italy
Eurozo
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Japa
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New
Zeala
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Korea
India
China
World economic expansion
Source: Macquarie Research, April 2007
1950-1960 1960-1970 1970-1980 1980-1990 1990 - 2000 2000 - 2010 2010 - 2020-1000
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Other
West
Total
Copper demand growth by decade
Driven by China
Source: © Brook Hunt 2005, UBS estimates
Head grade - existing copper mines
Forecast
1990 1994 1998 2002 2006 2010 2014 2018
0.80
1.00
1.20
1.40
1.60 Trend in decline in head grade for existing global copper mine production
Supply constrained
% Change in industry cash costs: June '03 to June '06
0%10%20%30%40%50%60%70%80%
Copper Gold Aluminium Nickel
Source Global Mining Research
Cost increases
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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5Growth to increase via 6 Development Headings
Sepon – copper and gold expansions
Golden Grove underground and open pit expansions
Prominent Hill – underground extensions
Exploration – competitive advantage
Business and corporate developments
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Martabe – gold mine
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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6Sepon gold and copper plants overview
Oxygen plant CCD Train
Copper ROM Pad
Leach Area
Electro-winningSolvent Extraction
Khanong copper open pitDiscovery East Gold pit
Crush and Grind
Gold Plant
• Resources: 3.3Moz
• Production: 174,000oz (2006)
• Expansion feasibility study
Copper Plant• Resources: 1.7Mt
• Production: 60,800t cathodes (2006)
• Expansion feasibility study
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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7Sepon: a new mineral field
CURRENT MINING AREANakachan
11.8m @ 9.8g/t Au10.7m @ 6.3g/t Au
Ban Mai9m @ 4.3g/t Au14m @ 4.7g/t Au
Phu Xo3m @ 2.9g/t Au1.3m @ 9.12g/t Au
Houay Yeng43.8m @ 8.7g/t Au23m @ 15.9g/t AuResources pending
Dankoy32.3m @ 2.5g/t Au17m @ 5.2g/t AuResources pending
2.5km
N
Houay Bang13m @ 3.0g/t4m @ 6.44g/t
Pha Vat North Resource 165,000 oz AuLatest Results:34m @ 2.8g/t Au31m @ 2.98g/t Au
Thengkham North167,000oz
Pha Bing15m @ 5.51% Cu7m @ 7.98% CuResources pending
Thengkham South West9m @ 20.5g/t Au18m @ 2.6g/t Au
Sepon Copper Expansion• Incremental addition to production• From Thengkham first• Plant expansion underway• ~ 100,000 t/a• Commencing 2009
Sepon Primary Gold Expansion• Resources 2.2 million ounces and growing• Flotation / pressure oxidation• Feasibility Study due end 07• Commencing 2009
Phavat18m @ 2.8g/t Au28m @ 1.7% Cu
Thengkham SouthResource 327,000t Cu
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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8Golden Grove – high grade VHMS, significant upside Mine: Underground
Processing: 1.3Mt/a
Product: Zinc concentrateCopper concentrateHigh Precious Metals concentrate
Forecast Production 2007:(contained)140,000 to 150,000t zinc12,000 to 15,000t copper50,000 to 55,000oz gold3,000,000 to 3,500,000oz silver10,000 to 13,000t lead
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
Concentrates exported to
Asian smelters
GOLDEN GROVEMINE
Zinc Copper
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Zinc Milled Copper Milled TPH Throughput Rate
Mill Throughput
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9Golden Grove – major extensions unfolding
Gossan Hill South
Untested
Georgette
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51.1m @ 1.82% Zn, 6.48% Cu
8.2m @ 18.7% Zn 45.7m @ 2.4% Cu6.5m @ 26.6% Zn
6.0m @ 12.2% Zn3.4m @ 18.7% Zn
9m @ 3.3% Cu 16.6m @ 3.2% Cu11.1m @ 11.7% Zn
29.4m @ 19.5% Zn, 1.6% Cu, 32.5m @ 8.4% Cu
9.6m @ 15.2% Zn, 52.2m @ 3.2% Cu
65.3m @ 7.4% Cu, 5.8m @ 25% Zn
44.5m @ 4.8% Cu, 6.5m @ 5.3% Zn
24m @ 24.9% Zn
Drill holes
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10Significant near surface copper resource
Gold oxide pit900kt @ 3.2g/t Au, 91g/t Ag
Copper open pit3Mt @ 2% copper oxide8Mt @ 2% copper sulphideProduction from 2009
Gold oxide pit
Copper oxide pitCopper sulphide pit
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11Golden Grove Current Scenario
Gossan Hill Budget
Scuddles Budget
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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12Golden Grove – New underground ore sources add to production
Gossan Hill Budget
Gossan Hill Exploration
Scuddles Budget
Scuddles Extensions
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CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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13Open pit production extends life
Gossan Hill Budget
Gossan Hill Extension
Scuddles Budget
Scuddles Extensions
Cu Oxide Pit
Primary Pit Cu
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CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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14Mill improvements bring production forward
Gossan Hill BudgetGossan Hill Extension
Scuddles
Scuddles Extensions
Cu Oxide Pit
Primary Cu Pit
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CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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15Significant upside – regional potential
35km of Golden Grove volcanic stratigraphy
126 sq kms of tenements
Most prospective Archaean VHMS province in Australia
Limited regional exploration
Regional exploration JV with Legend Mining
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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16Prominent Hill - world’s next significant copper-gold mine now under construction
Competitive Fundamentals• 100% ownership• Attractive jurisdiction• Nearby infrastructure• Suitable scale
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
Status: Construction
Mine: Open pit
Plant: 8Mt/a crush, grind, flotation plant
Forecast production:90,000t/a Cu LOM average 115,000oz/a Au
First shipment: September 2008
• High grade• Excellent metallurgy • Significant upsideF
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17Prominent Hill – a major new mine
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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18Prominent Hill – a major long life copper-gold mine
POTENTIAL
Underground
Sub-level open stoping
Potential 1-2Mt/a
CURRENT
10year planned pit
8Mt/a
UntestedPOTENTIAL
High tonnage
Bulk cave mining operation
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19Prominent Hill Strategic Plan - Project Schedule
Open Pit Construction
Open Pit Production
Upper Level Concurrent Underground
Feasibility Studies
Construction
Production
Lower Level Caving Operation
Prefeasibility Study
Feasibility Studies and Construction
Production
2007 2018 2019 20202014 2015 20162008 2009 2010 20172011 2012 2013
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20Excellent potential for more ‘Prominent Hills’
4,175km2 of highly prospective tenements.
Remains under explored.
Detailed gravity surveys undertaken
Multiple Prominent Hill style targets
20 targets for drill testing.
Gravity (1st vertical derivative)
Neptune
Joes Dam
Manxman
Manxman B
Peculiar Knob North
Blaze
Danae Danae HillHillTorchTorch
Quaoar
Pluto
Venus
Mt WoodsMt Woods
Armstrong
Scorch
Taurus
Yellow Dog
EL 3079EL 3079
EL 3056EL 3056
EL EL 29012901
EL 3162EL 3162
EL 3229EL 3229
Wildfire
0 20
kilometres
Mount Woods Inlier1VD Gravity
Prospect to be drilled
20km
N PROMINENT HILLPROMINENT HILL
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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21Indonesia - Martabe: on track to be a major gold producer
Resource base 6Moz gold, 60Moz silver
Feasibility study
CIL processing
First production 2009
Potential for +250,000oz/a
INDONESIA
Lake Toba
Contract of Work
MEDAN
TEBING TINGGI
KABANJAHE
PEMATANGSIANTAR
PARAPAT
TARUTUNG
SIBOLGA
PADANGSIDEMPUAN
KOTANOPANNATAL
MARTABE
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
NORTH SUMATRA
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1000 Kilometres
Regional advantage in under - explored Asia
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
Woolgar
Warroo
Kalimantan Gold Corporation JV
Philippines
YJLM JV
Sichuan JangtzeJiang Minerals
Golden GroveSouth Australia
Martabe
Thai Goldfields JV
Cambodia Sepon
Rexing JV
Wiluna
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23Development project pipeline
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Prominent Hill Open Pit
Golden Grove Copper Oxide Pit
Sepon Copper
Expansion Martabe Gold Open Pit
Prominent Hill UG
Xantho Extended & Cervantes UG at
Golden Grove
Golden Grove Copper
Sulphide Pit
Prominent Hill Bulk
Mining
Sepon Primary
Gold
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24Oxiana - growth and performance oriented
Oxiana has:• High quality operations• Full development pipeline• Regional competitive advantage• Major exploration commitment• Financial strength• Skilled and committed workforce
Continued growth through:• Improving operations• Expanding operations• Discovering new resources• Developing new resources• Business development
MAJORMININGCOMPANY.
CORPORATE SEPON REGIONAL EXPLORATION GOLDEN GROVE PROMINENT HILL DEVELOPMENTSMARTABE
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www.oxiana.com.auTHANK YOU
Disclaimer: This Corporate Update is not a disclosure document nor does it constitute the provision of financial product advice. None of Oxiana Limited (“Oxiana”), its related bodies corporate, officers, employees and advisors makes or gives any representation, warranty or guarantee in relation to this Corporate Update (whether orally, in document form or in any form whatsoever) (“Information”) to the recipient of this Corporate Update (“Recipient”) or any of its related bodies corporate, officers, employees and advisors. The Information is provided expressly on the basis that the Recipient will carry out its own independent inquiries into the Information and make its own independent decisions about the affairs, financial position or prospects of Oxiana. Oxiana reserves the right to update, amend or supplement the Information at any time in its absolute discretion (without incurring any obligation to do so).
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