Sunstone Metals Ltd · ASX:STM
Sunstone Metals — Avalon Minerals — Shareholder Meeting (November 2008)
35 slides from Sunstone Metals's shareholder meeting presentation, November 2008
Slide 1: AGM
AGM David McSweeney – November 2008
Slide 2: Disclaimer
2 Disclaimer Certain statements contained in this presentation, including information as to the future financial or operating performance of Avalon Minerals and its projects, are forward-looking statements. Such forward-looking statements: • are necessarily based upon a number of estimates and assum
Slide 3: Avalon Minerals Ltd – Corporate
3 Avalon Minerals Ltd – Corporate Directors David McSweeney – Managing Director 20 years resource sector experience, founding Managing Director of Gindalbie Metals Ltd, non-executive Director – Bauxite Resources Ltd Stephen Stone – Director 28 years experience, former Executive Chairman – Apex Miner
Slide 4: Top Shareholders
4 Top Shareholders Ordinary Shares Held David McSweeney 8,350,000 (8.5M Options) Greg Down, Don Boyer, Baracus, Brooks 9,930,000 Overseas Institutional Investors 6,600,000 Base Asia Pacific Limited 1,500,000 Derek Steinepreis 1,330,000 Craig Ian Burton 1,250,000 Kimbriki Nominees 1,000,000 Gary Stei
Slide 5: Avalon Minerals Ltd Project Overview
5 AVALON MINERALS LTD PROJECT OVERVIEW
Slide 6: Avalon Copper Projects
Avalon Copper Projects 6a" 16 Narvik - - : De Kiruna Viscaria Project J Al Norwegian Sea iN. nt Adak Project f sae / Umed* Ostersund = / © Kokkola ° Ha Falun Karistad Mariestad Nykoping aon Jonképing Halmstad Kalmar. Ralic Kristianstad fjavotta Pori melter A. AVALON minerals Ita
Slide 7: Sweden – Low Sovereign Risk
7 Sweden – Low Sovereign Risk Constitutional monarchy & parliamentary democracy Skilled mining labour force, 99% literacy, English as 2nd language Copper concentrators and smelters Legislation ― Framework similar to Australia Environment ― Primary liability rests with previous operators in old minin
Slide 8: Sweden – Exploration Hot-Spot
8 Sweden – Exploration Hot-Spot Anglo American | Blackstone Ventures Inc | Boliden | Dragon Resources Ltd | Drake Resources Ltd | Aura Energy | Energy Ventures | Eagle Mining | International Gold Exploration | Kopparberg Mineral | Lappland Goldminers AB | Lundin Mining Corporation | Mawson Resources
Slide 9: Viscaria Project Summary
9 Viscaria Project Summary 67km2 tenements Operated by Outokumpu from 1982 to 1997 Mined 12.5 Mt grading 2.3% Cu and 0.3g/t Au Produced 280,000t of Cu in concentrate @ 25% Cu
Slide 10: Photos – Ronnskar Smelter
10 Photos – Ronnskar Smelter
Slide 11: Viscaria
11 Viscaria History 12.3mt @ 2.3% Cu production from 1982-1997 ($1.5B at today’s copper price) Phelps Dodge – 2003-2008 (no activity) Avalon purchase - March 2008 May 2008 – JORC 24.1mt @ .8% Cu – B Zone May 2008 – JORC 2.5mt @ 1.6% Cu D Zone July 2008 – JORC 5.3mt @ 1.3% Cu - A North Zone Sept 2008
Slide 12: Viscaria Showing Surface Mineral Resources
12 Viscaria Showing Surface Mineral Resources 3 Parallel zones Viscaria Resources A, B & D Zones Zones Existing Cu % D 2.5mt 1.6% B 24mt .8% A Zone North 5.3mt 1.2% A Zone South 8.2mt 2.7%
Slide 13: Viscaria Showing Underground Mineral Resources
13 Viscaria Showing Underground Mineral Resources
Slide 14: A Zone South - Targets
one South - Targets 18 200mN 18 400mN 18.600mN 18 800mN 19 000mN 19 200mN Surface 600m 19 400mN 49 600mN 10.511. 4,612.00 — 1781289 ©4423 5.0133 0 11.0130 7 2613.2 05.0.7 > 3.714,3 3.1/5.5 ~24 eke Canes / 5.31104 9 as 10.55.45. 8.190.39//12.6/4.74--0 1.91.49 ae fond feat 11.218.49 En — crn, ZZ roe o
Slide 15: Viscaria A Zone North Long Section
15 Viscaria A Zone North Long Section
Slide 16: Viscaria Sections (A & B - Zone)
16 Viscaria Sections ( A & B - Zone)
Slide 17: Viscaria Sections (D - Zone)
17 Viscaria Sections ( D - Zone)
Slide 18: A Zone South Long Section Block Model facing West
A Zone South Long Section Block Model facing West Grades; Magenta: >5.5% Cu, Red >3.0% Cu
Slide 19: A Zone South Long Section Block Model facing East
A Zone South Long Section Block Model facing East Showing decline and stope development in footwall Grades; Magenta: >5.5% Cu, Red >3.0% Cu
Slide 20: D Zone Block Model - Open
20 D Zone Block Model- Open
Slide 21: B Zone Block Model - Access from A Zone
21 B Zone Block Model- Access from A Zone
Slide 22: Mining
22 Mining Studies Underway ― Resource Models – CSA. ― Geological Models – CSA. ― Dewatering A Zone studies commenced. ― Mine design consultants, Rapallo - received resource models in mid September. These will form the basis of mining cost estimates, scoping level production and development schedules
Slide 23: Production scenario - Viscaria
23 Production scenario - Viscaria STAGE 1 - 2011 Plant Capacity - 300,000 tpa @3.0% Cu Concentrate - 36000 t @ 25% Cu Copper - 9000tpa Copper price - US $6000/t ( $2.7/lb) NSR - US$45.3M/annum (US $1258.3/t concentrate) Opex - US $900.0/t concentrate Capex - US $30.0M NOTE historical A Zone South sh
Slide 24: Infrastructure at Viscaria
24 Infrastructure at Viscaria Viscaria benefits from existing infrastructure– • 10km Decline and 20km of development drives – ($50m replacement cost) • Accommodation in Kiruna Town – (population 20,000) • House & office established at Kiruna • Hydro-grid power • Rail & road • Experienced workforce •
Slide 25: Viscaria – Stage 1 Scenario
25 Viscaria – Stage 1 Scenario Mining ― Initial production (first 2 years) sourced from D Zone open cut and A Zone open cuts. ― Continuation of A Zone Mining was cut short by Outokumpu in 1997 due to copper price and Outokumpu corporate strategy. ― Undeveloped u/g ore positions identified with minim
Slide 26: Mining and Geology
26 Mining and Geology Personnel & Infrastructure ― Previous Viscaria Mine Foreman has been retained. ― Project Geologist Sweden – Nigel Baker. ― Project Mining Engineer to be appointed. ― CSA - Resources ― Infill and extensional diamond drilling tenders underway. ― Rapallo – Mining. ― Swedish enviro
Slide 27: Viscaria Milestones
27 Viscaria Milestones Scoping Studies 08 BFS 09 Diamond drilling – Feb 09 Assaying and metallurgical testwork to follow - Optimise the crushing and grinding circuits to establish – - Flotation testwork to establish the optimum grind size and reagent regime to maximise flotation recovery. Dewatering
Slide 28: Photos
Photos vy minerals Itd
Slide 29: Viscaria Regional Target > 100Mt
29 Viscaria Regional Target > 100Mt Flown by Redmond Ventures Corp & Billiton Resources Targeting IOCG mineral deposits (Roxby Downs) Billiton target size +300Mt Avalon will target Viscaria sized targets from data Avalon purchased 600 line kms of data
Slide 30: A Zone North Target- generated by Avalon
A Zone NorthTarget- generated by Avalon
Slide 31: 110 km2 tenements with Conductors
110 km 2 tenements with Conductors
Slide 32: Viscaria Properties
Viscaria Properties T T Navit. 1,690,000 mE 1,700,000 mE Viscaria Project} ve ee eS °Kolioa 7,560,000 mN tok ( 7,550,000 mN | 7,550,000 mN —— = Pa Viscaria No 3 i | | J / (Viscaria No 105 ) 7,540,000 mN wooo 40km 7,540,000 mN Tr —~— Viscaria No 101 ) . : Viscaria No 106 ~ Viscaria No 103 ) Avalon Gr
Slide 33: Viscaria Strengths
33 VISCARIA STRENGTHS High Grade A Zone > 3% Cu Large system (4km) + multiple zones (x3) Open at depth and along strike Existing decline and unmined stopes Copper smelters in country- Ronskarr Early cash flow and growth opportunities Regional producer benefits- area of influence Regional exploration
Slide 34: Photos
Photos AVALON minerals Itd
Slide 35: Detailed Airmagnetic TMI Data with Geotem targets
Detailed Airmagnetic TMI Data with Geotem targets
Avalon Minerals — Shareholder Meeting (November 2008) on 6ix