mineral sands a goer

Courtesy of Euroz Rottnest Conference, as presented by Nic Limb (Exec Chairman)

"The presentation was split 50:50 between Sabodala and Grand Cote Mineral Sand
project the first time for over 18 months Grand Cote has been discussed in detail.
􀀗 The Grand Cote (GC) mineral sand asset is a Tier 1 asset with the BFS to be completed
by the end of April10. The project is looking at producing ~ 75-80kt of zircon pa and
550-600kt pa of ilmenite pa. The global resource is 3.2bt @ 1.8 % HM the HM is 10.7%
Zircon, 74.5% ilmenite, 2.5% rutile and 3.2% leucoxene.
􀀗 Infi ll drilling coverting some of the resource to reserve and design of initial 15 yr mine
path is nearing completion.
􀀗 The orebody has many favourable characteristics including, no overburden, free fl owing
sands (no clay), minor vegetation, minimal slimes, no hard lenses and shallow water
table.
􀀗 Project development has recommenced now that Sabodala is running and is well
advanced. A 25yr mining concession has been granted, engineering design is almost
complete and environmental approval received.
􀀗 The zircon is very high quality and is actively sought after, whilst ilmenite marketing is
underway.
􀀗 Market entry in 2013 is predicted to coincide with supply defi cits .

􀀗 Based on a zircon price of US$1,000-1,200/t and ilmenite of $80-100/t GC can produce
pre-royalties of US$70-105m pa for 25yrs.
􀀗 Capex will be +US$300m and MDL re-iterated it will not raise equity in MDL to fund
GC. It is targeting 50:50 debt to equity ratio with debt from development banks, ECAs
and commercial banks. MDL discussed various equity fi nancing options including IPO,
strategic partner etc. This should become clearer in the 2nd H CY10."