MATRIX METALS LIMITED - ASX: MRX

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Description

Matrix Metals vision is to grow into a mid tier, long term, copper producer based on the development and exploitation of its copper assets located in the world class Mt Isa base metals province. This plan will be achieved by exploitation of the company’s existing resource and reserve inventory and also through the achievement of ongoing exploration success on the largely unexplored, tenement portfolio. The various phases of the plan will be implemented in accordance with Health and Safety, Environmental and Corporate Governance standards and with ongoing due respect to all interested parties particularly employees, native title claimants and landholders.

Total Company Resouces

Matrix has Ore resources totalling 25.2 million tonnes grading 1.0% Cu (for 252,000 of copper metal), split between the following resource categories:

Measured 6.1 Mt @ 1.1% Cu
Indicated 11.5 Mt @ 1.0% Cu
Inferred 7.6 Mt @ 0.9% Cu

Leichhardt Copper Processing Plant

“Matrix is in production”! Just a few words, but they epitomise why Matrix was formed and why mining companies exist. To achieve production and provide returns to shareholders. There are 550 mining companies listed on the ASX and less than 10%of them are in production. Your company is one of those producers.

The Leichhardt plant is producing copper cathode, utilising the proven heap-leach - solvent extraction - electrowinning process ("SX/EW"). From July 2008, production from Leichhardt will produce copper cathode at a rate of 9,000 tonnes per annum copper cathode, by treating ore mined from the nearby Mt Watson orebody.

Expansion of the Leichhardt Copper Cathode Production Plant

The company commenced production at the Leichhardt plant in June 2007 at the rate of 5,500 tonnes per annum of copper cathode. In December 2007, the company decided to upgrade the production facility by increasing throughput to 9,000 tonnes per annum. Commissioning of the expanded plant will occur in July 2008 and it is expected that the expanded production rate will be achieved during the September quarter 2008. Mining will be staged, with Stage One mining from two areas of the greater resource, creating two smaller pits in the East and West of the potentially larger Stage Two pit. Stage One is represented in blue colour, while Stage Two is represented in brown colour. In addition, there are previously identified prospects at the Hidden Treasure, Mt Earl, Mt Wonder, Tewinga and Boomerang (all within the vicinity of Mt Watson) and Mighty Atom and Prospector (within the vicinity of the Leichhardt Processing Plant) which may provide the opportunity for further life extensions.

Leichhardt Tenement Area

The Leichhardt Tenement Area is centred approximately 100 kilometres North East of Mt.Isa and includes Mt Watson, Mt Cuthbert, Mt Earl, Hidden Treasure, Mighty Atom and Prospector. The Prospector Area located as shown on the previous map and in the figure below, is located about 35 km south of the Leichhardt processing plant. Exploration has resulted in the discovery of a number of Iron Oxide Copper – Gold (“IOCG”) occurrences. This style of deposit includes Olympic Dam and Ernest Henry (among the larger representatives) and many other smaller deposits, including a number in the Mt Isa Inlier. The prospects in the Prospector Area are within or peripheral to, a large and strong airborne magnetic anomaly indicated by the red shaded areas on the accompanying map. Mineralisation is associated with the hydrothermal magnetite which is the source of this anomaly. Exploration has advanced to the drilling stage with a drilling program commencing on 1 June 2008. Results will be received in the September quarter 2008 and reported via announcements to the Australian Stock Exchange.

Cloncurry Tenement Area

The Cloncurry Tenement Area is centred approximately 40 kilometres South of Cloncurry and includes Kuridala, McCabe, Vulcan, Greenmount and Stuart, which aggregated together contain 14.8 million tonnes of copper resource at 1.1% copper for 163,000 tonnes of contained copper metal.

North West Uranium Joint Venture

The Mt Isa region has a significant history for discovery and mining of uranium. The most notable uranium discovery in the Mt Isa region was the Mary Kathleen mine. A total of 9.2 million tonnes grading 0.13% U308 was treated at the mine. Other major uranium occurrences that have been identified in the region, include the Skal and Valhalla deposits owned by Summit Resources Limited. These deposits are located approximately 40 kilometres south west of the Matrix’s Mt Cuthbert and Ewen tenement blocks. During 2005, Matrix undertook an evaluation of past uranium exploration and mining that had been carried out in the region. This research identified 15 occurrences of uranium mineralisation or anomalism and an assessment of the uranium potential of the area. Subsequent to the results of this research being analysed, Matrix formed the NorthWest Uranium Joint Venture (“NWUJV”) with Deep Yellow Limited. Below is a summary of the major terms of the joint venture:

* Deep Yellow must spend $3,000,000 in total by February 2009 to earn its 51% position in the joint venture.
* After earning the 51% position, Deep Yellow can acquire an additional 29% at any time up until the commencement of a bankable feasibility study (“BFS”) on any specific resource, for an additional $3,000,000.
* After completion of any individual BFS on any particular resource, Deep Yellow may buy out Matrix’s residual 20 position (assuming Deep Yellow had already acquired the 29% referred to immediately above) in that specific resource for a value equal to 15% of the inground value of Matrix’s 20% holding in the resource. Each separate resource subject to a BFS, is subject to this buyout provision.
* The greater NWUJV continues at the respective ownership positions as may dictated at any point in time, with Matrix maintaining a minimum 20% holding, subject to it meeting expenditure calls from the NWUJA.

McCabe Joint Venture

The McCabe Joint Venture was signed in October 2006, providing for Xstrata Copper to earn an interest in the McCabe Deposit and the surrounding exploration permit (EPM). The structure of the Joint Venture Agreement (JV) is as follows:

* Xstrata Copper has the right to earn a 55% JV interest by spending not less than A$5m within a three year period.
* Xstrata Copper then has the right to earn a further 20% JV interest during a sole funding period, by spending a further A$10m within a further five year period or by completing a feasibility study during the sole funding period.
* Matrix maintains 100% ownership of the tenements to a depth of 100 metres until a decision to mine is made at which time the JV has the right to buy that part of the tenements at fair market value.

Mine For

copper, gold, iron, uranium

Location of operation(s)

Queensland

Address

1131 Hay Street
WEST PERTH, WA, AUSTRALIA

Phone

(08) 9486 7100

Email

Website

http://www.matrixmetals.com.au/

Last Updated

18/03/2011