Sunstone Metals Ltd · ASX:STM

Sunstone Metals — Avalon Minerals — Investor Presentation (November 2011)

18 slides from Sunstone Metals's investor presentation, November 2011

  1. Slide 1: A New Era in Northern Sweden

    ASX Code: AVI A New Era in Northern Sweden November 2011 Andrew Munckton, CEO 1

  2. Slide 2: Disclaimer

    Disclaimer Forward Looking Statement This Presentation contains general information about Avalon Minerals Limited (Avalon). It does not purport to contain all the information that a prospective investor may require. The Presentation should not be considered as an offer or invitation to subscribe for

  3. Slide 3: Avalon – A Snapshot

    Avalon – A Snapshot  Developing the 100%-owned Viscaria Copper- Iron Project, Northern Sweden  Large resource base  44.7Mt grading 1.2% Cu (518,000t Cu metal)  9.0Mt grading 0.6% Cu and 27% Fe (49,000t Cu metal, 3.1Mt Iron Ore concentrate)  Pre-Feasibility Study completed  5 year LOM at 3.0Mtp

  4. Slide 4: Viscaria – In a world-class mining province

    Viscaria – In a world-class mining province  Discovered in the 1970’s  4km from mining centre of Kiruna (pop 20,000)  world-class Iron Oxide Copper Gold (IOCG) province  15 years historical production to 1997 – 100,000tpa @ 26% Cu concentrate, (57Mlb pa) Cu metal  Purchased 100% by Avalon  Acq

  5. Slide 5: Viscaria – Pre-Feasibility Study

    Viscaria – Pre-Feasibility Study 5

  6. Slide 6: Mining – Copper and Iron Products

    Mining– Copper and Iron Products Section 19000N  D Zone Pit – Stage 1 Iron Ore Concentrate  Open pit design @ US$3.00/lb Cu 69.5% Fe grade – BF and DR quality  Mass_Rec @ 35% and US$1.38/dmtu Fe 1.5% SiO2, low alumina and phos  Cu-rich and Fe-rich lodes High MgO, CaO  Deeper drilling assess

  7. Slide 7: Exploration

    Exploration  Northern Sweden is a major IOCG district  World Class Deposits  Kiruna. 2Bn tonnes high grade magnetite  Aitik. 1Bn tonnes @ 0.4% Cu  Malmberget. 1bn tonnes high grade magnetite  Proterozoic age intrusions drive mineralisation  Crustal depth shear zones tap metals, heat, fluid 

  8. Slide 8: Regional Exploration

    Regional Exploration  Outstanding exploration ground  625km² tenure  100km of strike  Focus on Deposit Types:  IOCG deposits of +200Mt  VMS deposits of + 20Mt @ 2% Cu  Skarn deposits of +100Mt Fe +/- Cu  Close to infrastructure  Key targets identified:  5 Project areas identified  Combina

  9. Slide 9: Exploration – Gordon Kitchener

    Exploration – Gordon Kitchener  Historical drilling shows IOCG mineralisation style  39m @ 38.4% Fe and 0.12% Cu  34m @ 39.2% Fe and 0.17% Cu  Features  Adjacent to large granite intrusion  Clear magnetite alteration halo  Proximal to NDZ  Historical boulder and samples rich Cu and Zn 9

  10. Slide 10: Exploration - Karkejaure

    Exploration - Karkejaure  Large magnetite rich intrusion in KNDZ  Very large magnetic and gravity anomaly  Largest in the region  8km x 9km  Multiple phases of deformation and fault reactivation  AVI is first explorer 10

  11. Slide 11: Exploration – KKV Area

    Exploration – KKV Area  Multiple prospects with IOCG features  Shear Zones  Granite intrusions  Magnetite alteration Halo  Limited drilling shows  30% Fe  0.1% to 0.4% Cu  Only targeted for Cu  Kurravarra  Same stratigraphic position as D Zone  Geochemistry shows Cu, Au and Ag in till sam

  12. Slide 12: Investment Case

    Investment Case Avalon Offers  Mid Sized Viscaria Project  Resources Upgrade  Cu and Fe Concentrate  Low Cash Cost  Approvals well progressed  First World Logistics  Established markets  Established Infrastructure  Low Risk  Sweden  Potential Customers next door  Outstanding Exploration

  13. Slide 13: For further information

    For further information: Andrew Munckton Phone: +61 (0) 435 635 598 13

  14. Slide 14: Appendix

    Appendix • Concentrate Product Comparison • D Zone • A Zone deeps • Project Comparison 14

  15. Slide 15: Concentrate Product – Comparison

    Concentrate Product – Comparison Fe SiO2 P Al2O3 CaO+MgO CaO+MgO / SiO2+Al2O3 Concentrate Product % % % % % % Kiruna SWE/ KAB 70.5 1.5 0.022 0.4 0.5 0.26 Samarco BRA/BHP,Vale 67.2 1.8 0.033 0.7 0.1 0.06 Marcona PER/Shougang 69.8 1.6 0.015 0.4 1.0 0.50 Viscaria SWE/Avalon 69.5 1.5 0.012 0.1 0.9 0.56

  16. Slide 16: Exploration Viscaria

    Exploration Viscaria  D Zone  Cu-Fe IOCG in carbonate rocks and alteration zone  1.1km of strike  Characteristic magnetic signature  Other mineralisation  Smoke but no fire yet 16

  17. Slide 17: Viscaria – A Zone - Deep Potential

    Viscaria – A Zone - Deep Potential  A Zone Open Pit  A Zone Deeps  Above historical Viscaria Copper Mine  Historical production of 12.5Mt @  2.5mt @ 1.4% Cu Reserve 2.7% Cu  Quality concentrate – 25% Cu, 2.5%  30km of decline and development Zn, 45g/t Ag, 3g/t Au  Drilled to >600m below surf

  18. Slide 18: Project Comparison

    Project Comparison  Projects with similar ore processing Project, Location, Owner Copper Iron Ore Ernest Henry - Australia 72Mt @ 1.0% Cu 22% mag Fe (Xstrata) 50ktpa Cu metal output 1.2mtpa @ 67% Fe (A$500M Investment) Concentrate Palabora – South Africa 80Mt @ 0.6%Cu 20% Fe (Rio Tinto, Anglo Ameri

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