Admiralty Resources NL · ASX:ADY
Admiralty Resources NL — Corporate Update (May 2007)
26 slides from Admiralty Resources NL's corporate update, May 22, 2007
Slide 1: ASX Company Announcement: Rincon Salar Update
ASX Company Announcement ADMIRALTY RESOURCES 22 May 2007 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000 RINCON SALAR UPDATE Admiralty Resources NL ACN 010 195 972 Level 14, 200 Queen Street Melbourne VIC 3000 (] +61-3-96701838 ff] +61-3-9670 1898 [we]
Slide 2: Salar del Rincon Update
SEP AD Y RESOURCES Salar del Rincon Update
Slide 3: Agenda
AGENDA Exploration Hydraulic Parameters Chemistry Current Exploration tasks Lithium Source Civil Works and Infrastructure Buildings Brine Pipeline Metallurgy Li Process Description Salar Pilot Plant SS2P DY RESOURCES
Slide 4: Exploration
Exploration e Exploration of the Salar del Rincén is essentially completed. e A final geological report has been issued and is being translated into English. e A JORC report will be prepared after the mathematical model and data from the Salar is completed. “SSE? 'ADY RESOURCES
Slide 5: Exploration Results - Porosity increases from 6.4% to 36.8%
Exploration Results - Porosity increases from 6.4% to 36.8%, will positively impact the size of the resource Exploration results to date indicate that: e The effective porosity, m., increases towards the centre of the Salar. At the edges of the Salar (Boreholes WR 6000 and WR 7000) the m, value is 6
Slide 6: as8n000 3.400000
3 as8n000 3.400000 an TT Pl | He | | | | | | Po Po g] T P| | | | | | | | | 2 TO t= Der = | Rinednl a | | | _| z4-—-———— +4 eR A e | | | | | | | | | I | | | g | | | | | a a! T r C8 Pocitos | a, _ oe 4 6 10 KM @ WR pozos de explotacién = Roads * Observation and —— Roads to be porosity wells constructe
Slide 7: Hydraulic Parameters - Above Expectation
Hydraulic Parameters — Above Expectation e This homogeneity is also evident in the results of the pumping tests performed in these boreholes: - Specific flow q = 3890 m3/h/m — Transmissivity T= 1.12 x105 m?/d - Storage coefficient S= 3.7 x 107! —- Permeability K= 2.53 x 103 m/d SS2P DY RESOURCES
Slide 8: Brine chemistry is remarkably constant
Similarly, the brine chemistry is remarkably constant in the ana ysis: Analyte Mean, mg/L Relative dispersion from the mean Li+ 394 £11% K+ 7,972 £9% Na+ 113,903 £5% Ca++ 712 465% Mg++ 3,667 +14% Cl- 195,067 £3% S0,= 12,334 +£66% B,05= 1,762 +44% CO3H- 386 +£17%
Slide 9: Current exploration tasks - clearer understanding of lithium origin
Current exploration tasks — clearer understanding of lithium origin e The surface halite body averages about 40 meters. At this depth, the halite body is bounded by a layer of unconsolidated pyroclastic sands. The structures and geology between this depositional event and the bottom of the Salar rem
Slide 10: Source of the Lithium - Possible Access to Higher Concentrations
Source of the Lithium —- Possible Access to Higher Concentrations Recently, sampling of surficial waters from ancient geysers on the perimeter of the salar showed a very high lithium content (2,400 mg/L) Previous work suggests these geysers are one of the possible sources of lithium in Rincon ADY se
Slide 11: Civil Works and Infrastructure - Pond Lining to Commence
Civil Works and Infrastructure - Pond Lining to Commence e To date, 24 km of access and mining roads has been completed inside and around the Salar. These roads include those required to service the borefield, the pipeline from the borefield to the evaporation ponds and the project’s main access roa
Slide 12: Mining Camp, Plant Building, Workshop Building
Mining Camp, Plant Building, Workshop Building Government approval has been obtained for the construction of: eMining Camp capable of accommodating 17 persons, ePilot Plant Building (600 square meters), and eWorkshop (180 square meters). Three tenders for these civil works have been obtained and con
Slide 13: Brine Pipeline
Brine Pipeline A detailed design for the brine pipeline from the production wells to the Pilot Evaporation Ponds is complete The brine pipeline will pump 30 m? hour to the ponds, located 14 km away from the production wells A service road connects the production borefield with the Evaporation Ponds
Slide 14: Metallurgy
Metallurgy The metallurgical program objectives are to parameterise the production of lithium-enriched brine and potassium chloride The work completed includes: ~ Conceptualisation of the process to produce enriched lithium brine. ~ Determine of the engineering parameters to allow detailed engineeri
Slide 15: Li Process description
Li Process description The process to produce a Li-enriched brine requires several stages: e Brine Pre-treatment e Solar Evaporation (four stages) e Lithium salts purification RESOURCES
Slide 16: Brine Pre-treatment
Brine Pre-treatment The brines contain high concentrations of calcium and magnesium that should be reduced to prevent losses of lithium. Furthermore, these cations can be impurities in the final product. The pre-treatment will be carried out in three stages: e Treatment of the brine with calcium hyd
Slide 17: Solar Evaporation Ponds
Solar Evaporation Ponds The brines will be evaporated in a sequence of four solar evaporation ponds: Evaporation Ponds A: In the first solar ponds, the magnesium and calcium will be precipitated. Also in this pond occurs the first crystallisation of sodium chloride. Each pond will have a surface of
Slide 18: Evaporation Ponds B
Evaporation Ponds B: The supernatant solution from Ponds A will enter a second set of solar evaporation ponds where most of the sodium chloride will be crystallised. The area of these will be 44% of the area of A Ponds. During evaporation cycles of approx. 98 days, 36% of the initial water contained
Slide 19: Evaporation Ponds C and D
Evaporation Ponds C: The solution from Ponds B enters a third solar evaporation pond where the brine has the correct ionic strength to separate potassium chloride by fractional crystallization. The area required is 30% of the surface of Evaporation Ponds A. The cycle time in these ponds will be 91 d
Slide 20: Process yield, Li+ Balance
Process yield, Lit Balance Assuming an initial Lit mass of 100 t: Volume of brine: 263,157 m3 Mass of Li+ contained 100.0¢t Li+ losses during process 23.8t Mass of Li+ recovered 76.2¢ Li+ concentration in Li-enriched brine e Expressed as Li+ 9.65 mg/L e Expressed as LIC] 62 g/L SS2P DY RESOURCES
Slide 21: Salar Pilot Plant
Salar Pilot Plant Currently, we are building a 1:100 Pilot Plant in the Salar del Rincén including a Brine Pre-Treatment Plant and Evaporation Ponds, to simulate the whole process of production of a lithium enriched brine in the Salar del Rincon. Gas terminals beside Plant site, with railway in back
Slide 22: Pilot Plant Production Target
Pilot Plant Production Target e The experience that will be gained from this Pilot Plant will form the basis for the final design of a plant capable of yielding 17,000 t/y of lithium Salts. e This plant should yield 150t of LiCl not later than March 2008+/- 25 days: a risk analysis indicates that th
Slide 23: Field Communications
Field Communications The communications with the Salar del Rincon have been challenging, however a satellite station solution offered by EasyMail will be implemented It provides voice, internet and data transmission. This station will be located in the mining camp with a micro or laser link to the m
Slide 24: Meteorological Station
Meteorological Station A meteorological Station compliant with the standards of the International Meteorological Organization and with the requirements of the Servicio Meteoroldégico Nacional Argentino was commissioned on 14 Dec 2006. This is the first such station in the Andes and one of the highes
Slide 25: Environmental Impact Statement
Environmental Impact Statement We are preparing a new EIS that will be submitted to the Provincial Government as soon as it is complete. To facilitate this and to prepare for future requirements, we have appointed an Environmental Officer, who holds the equivalent to a Bachelor of Science with a maj
Slide 26: Prices Continue to be Strong for 99.5%-99.99% Purity Li2CO3
Prices Continue to be Strong for 99.5%-99.99% Purity Li,CO, Imports of Lithium Compounds by country into Japan Lithium JAN.2007 FEB.2007 carbonate QUANTITY(KG) VALUE PRICE US$ / TONNE] QUANTITY(KG) VALUE PRICE CHINA 95,514 88,725 7,806 60,000 52,160 7,305 GERMANY 2,550) 8,008 26,390 2,000 5,718 24,0