“AIMR”)QUARTERLY ACTIVITIES REVIEWfor the period ended 30 June...

“AIMR”)
QUARTERLY ACTIVITIES REVIEW
for the period ended 30 June 2007
► HIGHLIGHTS
• New Directors appointed, including Victor Bradley as
Non-Executive Chairman, William D. Cash as Non-
Executive Director and Denise Lindfield as Company
Secretary.
• Fund raising program was initiated through the
proposed allocation of 75,067,000 units and
166,933,000 escrow receipts, each at A$0.31, for
anticipated gross proceeds of A$75,020,000.
PERKOA, (AIM Resources)
• Development of the Perkoa Zinc Project continued with
key approval contracts now established including:
o Mill, flotation cells and thickeners – Outotec
(formerly Outokumpu Technology);
o Ore Crushers - Sandvik;
o 6MW Power Station - AG Delmas, subsidiary of
Caterpillar;
o Perkoa fuel facility - Shell Oil;
o Site offices and accommodation - National and
Overseas.
o Letters of Intent have been signed by Votorantim,
Xstrata and Boliden
• Banlaw Africa completed the box cut and construction
of the underground access portal is underway together
with the site preparation for the processing plant
infrastructure.
• Also under construction by Banlaw Africa, is a 7km
road link, for the transport of zinc concentrates which
includes bush clearing for laying 20km of water pipeline
from the Sebuon Dam.
MUMBWA, (AIM Resources / BHP Billiton Joint Venture)
• Drill intersections from Mumbwa Copper-Gold Project
in Zambia, yielding 655.4m @ 0.46 Copper including:
o 317m @ 0.79% copper,
o 18m @ 0.20g/t gold,
o 42m @ 2.01% copper, including
o 4m @ 5.56% copper.
• Phase 1 drilling results were interpreted and integrated
with previous geophysical data to implement Phase 2
follow up core drilling program.
► CORPORATE
Additional Directors were appointed to the Board during the quarter, providing corporate strength
through a wide spectrum of knowledge and experience, which complement the Companies
objectives. This reflects the Company’s move towards becoming a metal producing mining
company. Individual qualities will provide valuable input to assist into the growth of the Company.
The Board of Directors now consist of:
Victor Bradley, CA, Non Executive Chairman, - Chairman, Yamana Gold (founder
Yamana Resources Inc.), Director/Officer of several TSX listed companies for over 35
years; Controller, Cominco Ltd. and CFO, McIntyre Mines. Vic has held a variety of
financial and executive positions in mining and exploration companies.
Marc Flory, Managing Director - Graduate and Post Graduate Degree in Geology and
Economics. With over 30 years experience in mining and finance, Marc has held senior
positions at Goldfields, JCI, CIBC, Citibank and AMP. At the AMP, Marc managed
Australia's largest Resources Private Capital Fund.
Louis Mnguni, Non Executive Director - Graduate and Post Graduate in Philosophy. With
degrees in Sociology, Philosophy and Politics and extensive experience in diplomacy and
government, Louis brings extensive experience of African affairs at a senior level, as a
member of South Africa’s diplomatic corp. with current responsibilities across Africa.
William D. Cash, Non Executive Director - With over 20 years experience and
qualifications in banking, commercial and marketing, Bill has vast experience in base
metals and concentrates. His experience encompasses sales, marketing, shipping and
logistics, product handling, sales contract administration, feasibilities and marketing
strategies for new mine projects. He has previously worked for MIM and Lisheen Zinc
mine.
Cash & Investments
As at 30 June 2007, AIM Resources had A$11.8 million in cash, at call deposits and share market
investments.
Issued Capital
As at 30 June 2007 the Company had:
• 766,657,985 ordinary shares on issue;
• Plus 75,067,000 ordinary shares pending issue;
• 133,766,073 listed options at a strike price of 10 cents, expiring 30 June 2009;
• 18,000,000 performance rights expiring 30 November 2008;
• 37,533,500 unlisted options pending issue at a strike price of 45 cents, expiring 28
September 2010; and
• 215,318,000 Escrow Receipts pending issue.
A capital fund raising program was initiated throughout the quarter, with the proposed allocation of
75,067,000 units and 166,933,000 escrow receipts, each at A$0.31. It is anticipated that gross
proceeds of A$75,020,000 would be raised.
Each Unit is comprised of one ordinary share and one half of an ordinary share purchase warrant.
Each Warrant will entitle the holder thereof to acquire one ordinary share for an exercise price of
A$0.45 expiring 28 September 2010. Each Escrow Receipt will be exercisable for no additional
consideration into a Unit upon satisfaction of the specified Escrow Release Conditions (which
includes obtaining approval of shareholders in accordance with ASX Listing Rules and meeting
other regulatory requirements).
Westwind Partners Inc. acted as lead agent for a syndicate including Cormark Securities Inc., and
was granted an option to sell an additional A$15,000,000 of Escrow Receipts at the Offering Price,
exercisable at any time prior to 30 days after closing of the Offering. The first part of the Offering
closed on 5 July 2007.
AIM RESOURCES REPORT FOR JUNE 2007 QUARTER
► PERKOA ZINC PROJECT, BURKINA FASO (AIM Resources Limited100%)
The Perkoa Zinc Project progressed significantly during the quarter, with the project plan being
refined and approval of key contracts being finalised.
The construction of the box cut was completed at a target depth of 35 metres, by Banlaw Africa,
allowing construction of the underground access portal into hard rock to commence. Also, site
preparation is underway for construction of the processing plant and facilities which includes:
• The Perkoa Mill, Floatation Cells and Thickener units sourced from Outotec (formerly
Outokumpu Technology). Delivery is expected late in 2007 well ahead of schedule thus
reducing lead times and avoiding any steel price increases;
• The Crushing and grinding units sourced from Sandvik;
• A 6MW Power Station was sourced from Caterpillar subsidiary, AG Delmas, and will power
the camp, mine and process plant;
Shell Oil was contracted to build, operate and manage the Perkoa fuel facility, which will provide
fuel for the underground mining operations, process plant and power station
The construction of site offices, accommodation and change room amenities commenced during
the quarter by National and Overseas, a modular housing construction company. These facilities
will provide for approximately 100 personnel that will be on site. Additional accommodation was
contracted from the nearby town of Reo, to house contractors whilst the camp is being built.
The Company’s on site project team continued the following activities:
• Review of mine plan and schedule;
• Recruitment of project staff;
• Preparation an allocation of project budget; and
• Ongoing exploration proximal to the Perkoa deposit, with the current programme targeting a
total of 11 holes for 3600m.
Perkoa Zinc – Finance & Concentrate Off-take Arrangements
During the quarter, the Company executed a fund raising of A$75,020,000 through the allocation of
75,067,000 units and 166,933,000 escrow receipts. It is proposed the net proceeds of the private
placement will be used for funding the ongoing exploration and development of the Perkoa Zinc
Mine as well as other exploration purposes and general corporate purposes.
Through out the quarter, the Company considered various concentrate off-take proposals, and
letter of intent have been signed by three off-take partners including by Votorantim, Xstrata and
Boliden. This marks a significant role in the development of the Perkoa Zinc Project, and first zinc
delivery of concentrate is anticipated to be in late 2008.
Perkoa Zinc - Project Background
The Perkoa Zinc Project is located in the Sanguie Province of Burkina Faso, 120km west of the
capital Ouagadougou. The project is 35km by road from the country's third largest town,
Koudougou, which is linked to neighbouring states of Cote d’Ivoire, Ghana and Togo by bitumen
sealed roads and by rail to Abidjan, capital of Cote d’Ivoire.
Snowden Mining Consultants completed a Bankable Feasibility Study (“BFS”) on the Perkoa Zinc
Project in December 2005.
Perkoa has a JORC-compliant Ore Reserve of 6.3 million tonnes at a mine head grade of 14.5%
zinc, equating to 907,679 tonnes of contained zinc metal.
The BFS incorporates a mine design consisting of a shaft and decline to access the ore body,
ramping up to deliver 0.5 million tonnes per annum of ore. A simple processing facility comprises a
crushing circuit followed by dense media separation, milling and flotation, resulting in the
production of 116,000 tonnes per annum of relatively clean concentrate, grading 53% Zinc over a
14 year mine life.
AIM RESOURCES REPORT FOR JUNE 2007 QUARTER
In the BFS, the processing plant infrastructure includes a tailings dam facility incorporating a
return/storm water dam for capture and re-use in the processing plant. The main source of
process water will be from the Sebuon dam that was recently constructed by the Burkina Faso
Government, close to the Perkoa Zinc Project. Power will be provided by on-site 6MW, diesel
generators sourced from AG Delmas, a subsidiary of Caterpillar.
The BFS addressed the project’s transportation requirements by recommending two of the
alternatives available. The first route uses the rail line situated 30km from the Perkoa Zinc Project
and passing through the neighbouring country of Cote D’Ivoire to the Port of Abidjan. The second
route uses road transport alternatives passing through Ghana to the Port of Tema.
Perkoa Zinc Project – Financial Analysis Summary
Notes:
1. The current (25 July 2007) spot zinc price is approximately US$3,610/tonne.
2. Smelting charges and deductions have been estimated based on recent benchmark
transactions, but in the opinion of the Company’s Board and management are likely to be
improved upon given the continued strong demand for zinc concentrates from smelters.
3. Revenues and costs have been calculated on an unescalated basis.
4. NPV and IRR estimates are on an ungeared basis.
► MUMBWA COPPER-GOLD PROJECT (AIM Resources / BHP Billiton Joint Venture)
The Company completed Phase 1 of the 2006/2007 drilling campaign on the Mumbwa Iron Oxide-
Copper-Gold (IOCG) property in Zambia. Eight holes were drilled to test a number of geophysical
targets outlined in the integrated datasets.
The results from 7 of these holes are in line with historical results from previous drilling in the area.
Results from the eighth hole, drillhole S36, intersected a considerable thickness of mineralisation,
over most of its length, with discrete intervals of higher grade mineralisation. The intercepts of this
hole yielded 655.4m @ 0.46 copper including:
• 317m @ 0.79% copper,
• 18m @ 0.20g/t gold,
• 42m @ 2.01% copper, including
• 4m @ 5.56% copper.
Drilled to a total depth of 697.4 metres, Drillhole S36 was inclined at 70 degrees and targeted a
geophysical feature with a strike length of 2.4km, as outlined on gravity and radiometric datasets.
The hole intersected variably altered syenite, quartz porphry and hematitic breccias. Green
copper-phosphate was observed from 172m to 305m depth and some thin veins and blebs of
pyrite/chalcopyrite occur from 280m depth. Massive hematite replacement with abundant pyrite
and trace amounts of chalcopyrite were intersected from 640m to the end of hole.
BFS Zinc Price at
16 December 2005
Zinc Price at
30 June 2007
Zinc price - London Metals Exchange US$1815/tonne US$3561/tonne
In-ground Zinc Metal Value US$1.5bn US$3.0bn
Total Revenue US$1.3bn US$2.5bn
Total Net Operating Pre-Tax Cash Flow US$529.4m US$570m
Net Present Value (NPV)
@ 10% discount rate (post tax) US$148m US$318m
NPV per AIM Resources ordinary share A$0.32/share A$0.41/share
Internal Rate of Return (IRR) (post tax) 43% 38%
Establishment Capital Cost US$72.5m US$135
Average Cash Operating Costs
(including transport to port):
US$ per ROM tonne
US$ per pound zinc in concentrate
US$53.5/ tonne
US$0.18/ pound
US$99.6/tonne
US$0.53/pound
AIM RESOURCES REPORT FOR JUNE 2007 QUARTER
A second phase of the drilling campaign is planned, with MSA Geoservices being consulted by the
Company to supervise drilling of additional cored holes. It is expected that over 10,000m of drilling
planned from 15 holes and includes the collection of approximately 4000 samples.
Project Background
The Mumbwa Copper-Gold Project lies within a known mineralised iron oxide copper-gold (“IOCG”)
terrain in west central Zambia and covers nearly 5,200 km2 and containing numerous prospects.
The project area is prospective for iron oxide copper-gold (“IOCG”) deposits similar to the world
class examples of Olympic Dam (South Australia) and Ernest Henry (Queensland).
IOCG deposits can be described as comprising a broad clan of mineralization styles which, as the
name implies, are grouped together chiefly because they contain hydrothermal magnetite and/or
hematite as major accompaniments to copper and gold mineralisation. These deposits are known
to host significant mineralisation and, apart from copper and by-product gold, appreciable amounts
of cobalt, uranium, rare earth elements, molybdenum, zinc and silver may also be present. They
can also be very large and the iron-rich zones, breccias and alteration halos associated with IOCG
systems can reach hundreds of metres in width and many kilometres in length.
Drilling will focus initially on the Kitumba region, where drilling by BHP Billiton in the mid to late
1990s encountered significant mineralisation in eight of nine drillholes over a strike length of
approximately 6km. However, this historical drilling tested areas peripheral to the targets indicated
by the recent interpretation of new FalconTM data. A key drill target is a major feature (800m wide
with a 2.4km long, north-south strike) which corresponds with a strong uranium anomaly along an
exposed ridge at the Kitumba region. This feature has not been drill tested previously, except by
drillhole KD3 in the extreme north, which intersected 60m at 0.6% copper and 0.11 g/t gold.
AIM Resources is earning a 70% interest the Mumbwa Copper-Gold Project from BHP Billiton and
is budgeting to spend US$1.2 million on the project during 2006/07.
3D Geophysical Interpretation of FalconTM Data
The FalconTM survey over the Mumbwa Copper-Gold Project, covering an area of roughly 50km x
40km, offers a high resolution dataset for which it is appropriate to undertake detailed analysis. It
has been demonstrated from BHP Billiton’s internal interpretation work carried out on Olympic Dam
(South Australia) that it may be possible to discriminate the major mineralised systems in an IOCG
province using 3D inversion of regional gravity and magnetic data.
AIM Resources has been able to draw on the expertise of BHP Billiton and their proprietary SolidEarthTM
software to undertake direct 3D inversion of this FalconTM gravity gradient, magnetic and radiometric data.
The result is improved 3D inversion models, which are then analysed using SolidEarthTM neural network
techniques to highlight zones of anomalism. The data was inverted on a 100m lateral and 25m vertical
resolution, with models extending to approximately 2km below surface. With this approach, dense
bodies that lie adjacent to or even proximal to magnetic zones are also considered to be valid IOCG
targets.
This work generated eleven high-priority targets which eight were tested by the current drilling
campaign. The remaining 3 holes were drilled however, 2 holes were abandoned after the first
hole on that anomaly yielded disappointing results, and poor drilling progress precluded drilling of
the final drill hole before heavy seasonal rains started and drilling was suspended.
AIM RESOURCES REPORT FOR JUNE 2007 QUARTER
► MOKOPANE NICKEL-PLATINUM PROJECT (AIM Resources Limited 100%)
New order mining rights were implemented for the 100% owned Mokopane Nickel-Platinum
Project, however the Company’s was focussed on progressing the Perkoa and Mumbwa Projects as
a priority. A proposed drilling program to extend the existing resource at Mokopane was planned,
however given the Company’s focus on progressing the Perkoa and Mumbwa Projects, AIM
Resources is considering various alternatives to create value from the project at a time of historically
high platinum and nickel prices.
The Mokopane Nickel-Platinum Project area comprises 960 hectares on the northern limb of the
Bushveld Igneous Complex. Mokopane comprises five known mineralised areas with 15,330
metres of exploration drilling having been concentrated primarily on southern portion of projects.
Infrastructure is excellent and the project is well located being immediately south of Robert
Friedland’s African Minerals Platreef Project and along strike from Anglo Platinum’s producing
Potgietersrust Platinum (PP Rust) operation.
ATTRIBUTION
The information in the Perkoa BFS report as it relates to Exploration Results and Mineral Resources is based on information
compiled by Mr Graham Greenway who is a Member of the South African Council for Natural Scientific Professions. Mr
Greenway is employed by Snowden Mining Consultants. Mr Greenway has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves”.
The information in the Perkoa BFS report as it relates to Ore Reserves is based on information compiled by Mr Dag Kullmann
who is a Member of the South African Institute of Mining and Metallurgy. Mr Kullmann is employed by Snowden Mining
Consultants. Mr Kullmann has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Kullmann consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
www.aimresources.com.au