WOLFRAM CAMP MINING Operations Status and Geology

WOLFRAM CAMP
MINING
Operations Status and Geology

Executive Summary

   Wolfram Camp – Long history of tungsten mining

   Deutsche Rohstoff AG (DRAG) is a German Mining
    Group (metals, oils & gas)

   DRAG acquired Wolfram Camp in 2011

   Processing plant was refurbished and open pit
    commenced within 6 months

   First test wolfram concentrate was produced in
    December 2011, first delivery made in March 2012

   Production ramp up to 350,000tpa completed January
    2013

   Currently producing 2 tonnes of WO3 concentrate per
    day

What is tungsten?

   A metal with very particular properties
    
 Highest   melting point of all metals (3422°C)
    
 Same specific gravity as gold (19.3g/cm³)
    
 Tungsten carbide is almost as hard as diamond


   Properties determine applications
    
 Filaments  in light bulbs
    
 Vibrator in mobile phones, armour-breaking
      weapons
    
 Alloy for speciality steel

    
 By far the most important; hard metal tools

Who uses tungsten                        Data from Dr. Fritsch Sondermaschinen
GmbH & USGS

                              2%
                         6%

                    6%
                                         26%

                                                             Western Europe
                                                             USA
                                                             Japan
                                                             China
                                                             Russia
                                                             India
              34%
                                                             Other
                                           16%

                                   10%

Site History

   1894
    
   First mining recorded & first WO3 mimed in the British Empire outside the
        British Isles
    
   Prior WW1 Nth QLD is worlds largest tungsten supplier

   1967-1971
    
   Metals Exploration – 560t WO3
    
   Mined from between the Leisner 2 and 4 levels
    
   10,161m of UG drilling!

   1971-1991
    
   Mount Arthur Molybdenum, no official records
    
   Development of new Forget Me Not and extension of Lane Decline

   1992-2004
    
   Great Northern Mining Corporation – Did very little
    
   1994-1995 Allegiance Mining NL drilled 37 RC holes

   2004
    
   Queensland Ores (later Planet Metals)
           Exploration & Constructed 150,000tpa processing plant

   2011
    
   Wolfram Camp Mining Pty Ltd
    
   April 2011
           DRAG acquires 85% of Wolfram Camp
    
   November 2011
           DRAG acquires remanning 15% of Wolfram Camp and Bamford Hill

Old Workings

Wolfram Camp and mineral
prospects

Bringing WCM back into
Production

   May 2011: Refurbishment
    commenced immediately after
    acquisition
    
   Several adjustments to plant layout
        and equipment purchase
    
   Set up of new tailings dam

   Oct 2011: Off-take agreement with
    Global Tungsten Powders (GTP),
    GTP also support project financing

   Dec 2011: First test production

   March 2012: First shipment of
    concentrate @ 65% WO3 and
    higher

   January 2013: Processing upgrade
    completed

Wolfram Camp Mining

   Martel 2011 indicated and inferred 1.89Mt @ 0.37%W & 0.07%Mo

   The current open pit has a four year mine life

   Ore is feed to the plant either directly to the mill crusher or after pre-
    concentration

   Molybdenum concentrate is produced by flotation

   Wolframite(tungsten) is produced by gravity processing including spirals,
    jigs and tabling

   Concentrate cleaning is required and includes magnetic and electrostatic
    separation

   Concentrate is bagged and transported by road to Brisbane before being
    shipped overseas to Global Tungsten Powders (GDP) in Pennsylvania,
    USA

Wolfram Camp Mine Site
Arial Photo taken January 2013 showing Pit stage 1 and supporting
infrastructure

Wolfram Camp Mine Site
Arial Photo taken January 2013 showing Pit stage 1 and supporting
infrastructure

Wolfram Camp Mine Site
Arial Photo taken January 2013 showing Pit stage 1 and supporting
infrastructure

Wolfram Camp Mine Site
Arial Photo taken January 2013 showing Pit stage 1 and supporting
infrastructure

Wolfram Camp Mine Site
Arial Photo taken January 2013 showing Pit stage 1 and supporting
infrastructure

Wolfram Camp Mine Site
Arial Photo taken January 2013 showing Pit stage 1 and supporting
infrastructure

Mine to Mill Flow Diagram
Mine from Pit
                High Grade to

Pre-concentrating

   Screening
    
   100mm 57% of tonnes and 7% of metal

   Ore Sorting
    
   Accepts 5-10% of tonnes and 80-85% of
        metal
    
   Rejects 90-95% of tonnes and 15-20% of
        metal

   Crushing
    
   < 15mm 66% of tonnes and 79% of metal
    
   15-50mm 34% of tonnes and 21% of
        metal

Operation

   Mine production constantly increasing
    
   Currently ~4,000 t/day
    
   ~50 people working onsite
    
   Majority are tablelands locals and all are QLD residents

   Screening ~2,500t/day

   Mill processing constantly increasing
    
   Currently ~35t/hr with the aim to achieve 45t/hr

   Forecast of 4-6 tonnes of concentrate production per day

Geology
Quartz rich wolframite-molybdenum-
bismuth pipes occur within the greisen
altered margin of a early Permian granite in
contact with Hodgkinson sediments

Regional Geology

   Situated in the Hodgkinson Basin which forms
    part of the Palaeozoic Tasman Geosyncline and
    comprises Middle to Upper Devonian flysch
    sequences intruded by a series of late
    Carboniferous to early Permian granitic rocks
    (Ootann Supersuite) and overlain by Permian
    Featherbed Volcanics (de Keyser and Wolff,
    1964)

   The Ootann Supersuite has a distinct W, Mo
    and Bi metallogenic association and the late
    stage siliceous (greisen) alteration at Wolfram
    Camp reflects this

Mine Geology

   Hodgkinson formation sediments
    to the north east are fine grained
    sandstones and siltstones which
    have undergone penetrative
    deformation and are low-grade
    regional metamorphic rocks.
    They have been folded and
    uplifted and contain very little to
    no mineralisation

   The James creek granite
    (formally the Elizabeth Cr.
    Granite) to the south west is a
    pale-to-medium grey, pinkish
    grey or pink, fine to coarse
    grained biotite granite and
    leucogranite which has been
    dated to 291 +/-6Ma

Mineralisation and Alteration
 
   Pipe-like deposit hosted in the greisen altered margin and roof zone of
     the James Cr. Granite
 
   Altered Granite/Greisen zone up to 50m wide and 3km long with
     variable dip
 
   Granite in Contact with Hodgkinson formation sediments

              Plimer, 1974

Quartz Pipes

   Range from 6m to a few centimetres

   Discontinuous, at times associated with jointing and
    follow the contact trend

   Dominated by quartz, clear-white-smoky with minor
    calcite

   Wolframite, molybdenite and bismuth often found
    but not always together and not all pipes are
    mineralised

   Also scheelite, pyrite, arsenopyrite, pyyrotite

   Minor siderite, chalcopyrite, sphalerite, galena and
    cassiterite

Quartz Greisen

   Forms a rim which can be several meters wide around quartz pipes

   Crystals are pyramidal

   Minor muscovite and common accessory pyrite

   Greyish colour with abundant vuggs

   Variable mineralisation

Mica Greisen

   Grades to quartz greisen

   Increasing amounts of Muscovite and decreasing
    Quartz

   Minor mineralisation and sometime siderite
    replacing Micas

Grade Control

   Blast Hole Sampling

   Blast Hole Collar logging

   Floor mapping

   Blast adjustment

   Blast monitoring

   Grade control block
    modelling

   Dig block mark out

   Visual spotting of high
    grade

   Oversize sorting

   Stockpile sampling

Resource Modelling Challenges

   “Clearly, unless the drilled area
    contains only one well-defined
    vein, one would need extremely
    good arguments to combine
    high-grade intersection in a
    “narrow vein- high grade
    scenario”
    
   From Steffen Schmidt, P.Geo.,
        Wolfram Bergbau & Hutten AG,
        March 2010