The document provides information about Xstrata's Levack Mine and Morrison Deposit, as well as FNX Mining's Victoria Project.
At the Levack Mine, the Morrison Deposit contains high grade copper and nickel mineralization. Plans are outlined to continue expanding reserves through ongoing drilling and ramp development. Detailed mine plans and sections are shown for current and planned mining areas at the Morrison Deposit.
The Victoria Project contains four zones of nickel and copper mineralization. Drilling results are presented showing significant intercepts in Zones 1, 2 and 4. An inferred resource estimate is provided totaling 12.5 million tonnes for the four zones.
2. SAFETY PLAN
OBJECTIVE
“ Everyone Going Home Safe and Healthy Every Day ”
“ i f d lh ”
• Supervisory development – every supervisor to actively participate in the
presentation and facilitation of the next stage of Courageous Leadership
presentation and facilitation of the next stage of Courageous Leadership
• 5 pts Safety Card – track the effectiveness of the 5pt card boards by
monitoring the response time, completion time for worker concern.
Compliance data to be displayed at the board
• All Mine Standards and procedures – review one AMS or procedure weekly
with dayshift crews
• Monthly Safety Theme – Promote one primary safety topic each month
amongst all employees and monitor compliance during the month
• First Aid Training – 100% of employees to be trained by the end of 2011
2
3. SUDBURY: REGIONAL GEOLOGY
Archean Gneissic &
Migmatitic Rocks
• Levack Gneiss Complex
Gneiss Complex Podolsky Mine
y
N
Levack Mine (Morrison
Sudbury Igneous Deposit)
Complex
• Ni‐Sulphide McCreedy West
Deposits are Mine
located at the
base of the SIC
Huronian
Supergroup
10 km Victoria Project
3
5. LEVACK MINE & OREBODIES
West No. 2 East
Main Orebody No. 1
Shaft
0 1000
No. 2
Feet
1300
No. 7 No. 4
1600 Level
To McCreedy 1900
West Mine
2650 Level
2650 Level
No. 3
Morrison
No. 3
Deposit Shaft
3600 Level
3600 Level
Undefined Resource
Development
Footwall Deposits
Contact Deposits 5
6. LEVACK MINE: SCHEMATIC
#2 Shaft Xstrata Ni
N Craig Shaft
draFNX Mining Ltd.
Keel Zone Main
Orebody
Sudbury
No. 7 Igneous
1600 Level Orebody Complex
Sudbury
Quad
Breccia
2650 Level
3600 Level
3600 Level
Morrison
Deposit
10000N
0 1000
5000N
Feet
6
7. MORRISON DEPOSIT: LONGITUDINAL
N
MD1
3270L
MD2
3570L
MD3
4210L
9.3 ft @
18.32% Cu, 1.72% Ni, 10.89 g/t TPM
18 32% Cu 1 72% Ni 10 89 g/t TPM
500 Ft
4620L
13.1 ft @
10.74% Cu, 10.26%
Drillhole intercept > $100 Value
intercept > $100 Value
Ni, 26.07 g/t TPM
i /
Morrison ‐ 2nd Order Wireframe
Morrison ‐ 1st Order Wireframe 13.9 ft @
Morrison ‐ Infrastructure 23.00% Cu, 1.99% Ni, 46.44 g/t TPM 7
8. OVERVIEW: SHAFT LOCATIONS
Craig Shaft Levack #2 Shaft
(opened in 1995) (sunk in 1933)
2650 L
3600 L
4300 L
ore/waste
passes Current reserve
Current reserve
Current mineral envelope
4900 L
Shaft proposed
Bottom down ramp
development
Looking West
Looking West 8
9. DRILL ACCESS: RESERVE/RESOURCE GROWTH
Current ramp face and
Limit of current reserves
MD3 4210 L
4210 L
22.6 ft @ 26.0% Cu, 3.0% Ni,
38.9 g/t TPM
11.8 ft @ 20.0% Cu, 3.3% Ni,
Intercept > $300 value 60.2 g/t TPM
& minimum 6 ft. width
& minimum 6 ft width
Current reserve
5000 L
Current mineral envelope
19.6 ft @ 12.7% Cu, 1.0% Ni,
25.6 g/t TPM 9
20. MORRISON DEPOSIT – 3810L C1 –
9310 ELEVATION
3810
Access N
2nd Order
Cut and Fill
Wireframe
Captive Cut
and Fill Stope Drillhole
1st O d
Order intercept > $100
intercept > $100
Shrink Stope Wireframe
100 ft
20
21. CAPTIVE CUT & FILL MINING METHOD
TUGGER
OVERCUT
MANWAY GEAR SLIDE WITH BUCKET
ORE LENSE
42” STEEL RING
SLUSHER MILLHOLES
DRILLING
UPPERS
CEMENTED SANDFILL BOXHOLE
FILL
ALIMAK RAISE
BULKHEAD
NEST
SILL PILLAR TO BE RECOVERED
AFTER STOPE COMPLETION BOXHOLE
CAPTIVE CUT AND FILL
CUTOUT TOP ACCESS STOPE
ALIMAK DRIVEN ON ORE VEIN AND
TIMBERED MANWAY INSTALLED POST
BREAKTHROUGH
UNDERCUT 21
36. SUDBURY: REGIONAL GEOLOGY
Archean Gneissic &
Migmatitic Rocks
•Levack Gneiss Complex Podolsky Mine
y
N
Levack Mine (Morrison
Sudbury Igneous Deposit)
Complex
•Ni‐Sulphide McCreedy West
Deposits are Mine
located at the
base of the SIC
Huronian
Supergroup
Victoria Project
10 km
36
37. VICTORIA: SURFACE GEOLOGY
Zone 2
Zone 4
Olivine Diabase
Powerline Zone
Powerline Zone
Norite
Quartz Diorite
Sudbury Breccia
Metabasaltic Rocks
Metagabbroic Rocks
bb i k
W E
Felsic Metavolcanic Rocks
Metasedimentary Rocks
0 500
Meters 37
38. VICTORIA IN 2008: ZONES 1 & 2
Surface Looking North
FNX1172 (Zone 1 Discovery)
•24.0 ft @ 1.3% Cu, 1.0% Ni, 1.6 g/t TPMs
24.0 ft @ 1.3% Cu, 1.0% Ni, 1.6 g/t TPMs
•75.0 ft @ 0.5% Cu, 1.8% Ni, 0.7 g/t TPMs
‐2000 ft
‐600 m
FNX1178 Ethel Lake
Quartz Diorite
‐4000 ft
‐1200 m
BH‐UTEM Plate
(Zone 2)
FNX1172B 1000 ft
Worthington •54.8 ft @ 0.5% Cu, 2.2% Ni, 0.7 g/t TPMs
Quartz Diorite 300 m
38
39. VICTORIA 2009/2010: ZONES 2 TO 4
FNX1178 Extension (Zone 2 Discovery) Looking North
•57.9 ft @ 1.5% Cu, 1.6% Ni, 5.4 g/t TPMs Ethel Lake ‐4000 ft
Quartz Diorite
Q Di i ‐1200 m
BH‐UTEM Plates
BH UTEM Plates
(Zone 4)
Zone 2
FNX1190 (Zone 4 Discovery)
( y)
Worthington •1367.4 ft @ 1.3% Cu, 0.6% Ni, 2.2 g/t TPMs
Quartz Diorite 1000 ft/300m 39
40. Section 53
LOOKING NE
Production Shaft
P
345E
Vent Sh
Zone 1
haft
Olivine Diabase
Norite
Quartz Diorite
Q Di i
Zone 2 1400 L Sudbury Breccia
Metabasaltic Rocks
Zone 4 1600 L Metagabbroic Rocks
Metagabbroic Rocks
Felsic Metavolcanic Rocks
Metasedimentary Rocks
Mini 1800 L
Open at depth & to the West
O t d th & t th W t
• BH‐UTEM responses
40
41. VICTORIA: INFERRED RESOURCE
Inferred Tonnes Cu Ni Pt Pd Au TPMs
(M)
(M) (%) (%) (g/t)
(g/t) (g/t) (g/t) (g/t)
Zone 4 12.0 2.3 2.3 3.2 4.4 1.0 8.7
Zone 2
Zone 2 0.3
03 1.4
14 0.9
09 1.4
14 2.2
22 0.6
06 4.3
43
Mini 0.1 1.2 0.6 0.9 0.5 0.2 1.5
Total 12.5 2.3 2.2 3.2 4.3 1.0 8.5
The Mineral Resource estimate was prepared in accordance with the “CIM Definition Standards On Mineral Resources and Mineral Reserves”, adopted by
CIM Council on December 11, 2005, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on
November 23, 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to each operation. Definitions and
guidelines can be found at www.cim.org.
Source: Technical Report on the Victoria Project Deposit, Sudbury, Ontario, Canada by Farrow, Everest, Gibbins & Jolette; Filed on Sedar June 3, 2011
S T h i lR t th Vi t i P j t D it S db O t i C d b F E t Gibbi & J l tt Fil d S d J 3 2011
41
42. INCLINED SECTION (LOOKING NNE)
‐900L
FNX1198
Zone 4 FNX1186H FNX1190
Zone 4 Resource Pierce Points ‐1200L
1200L
FNX1186G
Zone 4 Non‐Resource Pierce Points FNX1186F
Quartz Diorite
Quartz Diorite Hosted Zone 4
Quartz Diorite Hosted Zone 4
Sudbury Breccia Hosted Zone 4
‐1500L
FNX1195C
FNX1195A
0 500/150 FNX1200
‐1800L FNX1200E
Feet/Meters
F t/M t FNX1200D
FNX1210 42
Open at depth
43. 1200 LEVEL MINERALIZATION
‐2500N
FNX1186H:
•27.1 ft @ 1.1% Cu, 0.5% Ni & 2.7 g/t TPM
•83.5 ft @ 1.1% Cu, 1.3% Ni & 2.2 g/t TPM
FNX1198:
‐3000N •26.0 ft @ 1.1% Cu, 0.6% Ni & 1.1 g/t TPM
FNX1190:
•1367.4 ft @ 1.3% Cu, 0.6% Ni & 2.2 g/t TPM
‐3500N
3500N
FNX1186F:
•98.7 ft @ 1.3% Cu, 0.4% Ni & 1.3 g/t TPM
98 7 ft @ 1 3% C 0 4% Ni & 1 3 /t TPM
‐4000N •15.5 ft @ 1.7% Cu, 0.2% Ni & 0.4 g/t TPM
•108.1 ft @ 1.5% Cu, 2.2% Ni & 5.1 g/t TPM
FNX1186G: 0 500/150
•623.6 ft @ 1.9% Cu, 1.7% Ni & 4.1 g/t TPM
‐6500E
Ft/m 43
43 ~500 ft/150 m clipping
44. 1600 LEVEL MINERALIZATION
‐2500NDisseminated Sulphide
0 500/150
Masu‐Smas Sulphide
Ft/m
Quartz Diabase
Quartz Diorite
Q t Di it
Sudbury Breccia
‐3000N FNX1195C:
Metabasaltic Rocks •308.4 ft @ 2.1% Cu, 3.1% Ni & 5.1 g/t TPM
Metagabbroic Rocks
Metagabbroic Rocks
Felsic Metavolcanic Rocks
Metasedimentary Rocks
‐3500N
3500N
‐4000N
~500 ft/150 m clipping
FNX1195A:
•11.1 ft @ 14.5% Cu, 1.9% Ni & 21.5 g/t TPM
•16.1 ft @ 2.0% Cu, 2.1% Ni & 10.3 g/t TPM
‐6500E
‐7500E
44 •4.3 ft @ 6.2% Cu, 2.9% Ni & 0.6 g/t TPM 44
45. FNX1195C (MASSIVES SULPHIDE)
• Pyrrhotite‐rich massive sulphide with pentlandite (Ni‐
mineral) & chalcopyrite (Cu‐mineral)
A – B: 15.4 ft @ 2.5% Cu, 6.3% Ni & 2.6 g/t Pt‐Pd‐Au
A
B
C
B – C: 14.0 ft @ 4.1% Cu, 8.4% Ni & 3.6 g/t Pt‐Pd‐Au
45
46. 1800 LEVEL MINERALIZATION
‐2500NDisseminated Sulphide
~500 ft/150 m clipping
Massive‐SM Sulphide
Quartz Diabase
Quartz Diorite
Q t Di it FNX1200:
FNX1200
Sudbury Breccia •71.0 ft @ 4.1% Cu, 2.0% Ni & 60.1 g/t TPM
‐3000NMetabasaltic Rocks
Metagabbroic Rocks
Metagabbroic Rocks
Felsic Metavolcanic Rocks
Metasedimentary Rocks
‐3500N
3500N
‐4000N
FNX1195A:
•49.3 ft @ 0.8% Cu, 0.8% Ni & 6.9 g/t TPM
•49 3 ft @ 0 8% Cu 0 8% Ni & 6 9 g/t TPM
0 500/150
‐6500E
‐7500E
Ft/m 46
47. VICTORIA: PLATINUM GROUP MINERALS
• Pyrrhotite‐rich massive
sulphide veins with:
veins with:
‒ pentlandite (Ni)
‒ chalcopyrite (Cu)
Sperrylite, PtAs2 • Minor quartz‐filled
fractures
• Stockwork and minor
veining in Sudbury
i i i S db
Breccia/metabasalt
• PGM hosted by both
sulphides &&
silicate/carbonate
groundmass (shown here)
47
49. SIZE & IN SITU VALUE
Relative Gross In‐Situ Value
14.0
Victoria
i i
Nickel
• ~ 3 4 BN lb f
3.4 BN lbs of
Grade (%)
12.0
Rim South Cu Equiv.
10.0
Onaping
Depth
Cu Equivalent G
8.0
Totten
Victor
• 1.2 BN lbs of
~
Ni Equiv.
6.0
60 Kelly Lake
y
Fraser Morgan
4.0
2.0
4.0 9.0 14.0 19.0 24.0
In‐situ Tonnes (M)
Note: Cu Equivalent and in‐situ value calculation assumes three‐month trailing average commodity prices at time of Sedar technical report filing; Cu at US$4.34/lb, Ni at
US$12.27/lb, Pt at US$1784oz, Pd at US$778/oz & Au at US$1426/oz. Onaping Depth & Fraser Morgan resource are as of June 30 2010. Nickel Rim South, Totten, Kelly Lake
& Victor resources are as of December 31, 2005.
49
50. VICTORIA: GRADE COMPARISON
In‐situ $ Value/Tonne
$0 $500 $1,000 $1,500 $2,000 $2,500
3,400
Sudbury Basin Projects
3,900
w Surface (ft)
4,400
4,900
4 900
Victoria: Avg. of
g
Depth Below
US$1,172/Tonne of ore
5,400
D
Cu Ni TPM
5,900
6,400
Note: Cu Equivalent and in‐situ value calculation assumes three‐month trailing average commodity prices as at Sedar filing; Cu at US$4.34/lb, Ni at US$12.27/lb, Pt at
US$1784/oz, Pd at US$778/oz and Au at US$1426/oz. Other Sudbury projects include Onaping Depth, Fraser Morgan, Nickel Rim South, Totten, Kelly Lake and Victor.
50
51. oduction
ent Shaft
Shaft
Pro
Ve
1200L
Conceptual Mine Plan
p
• Definition drilling from
ventilation shaft
1400L
• Bulk scale mining methods
‒ Longhole stoping
‒ Numerical geotechnical
modelling underway
Zone 4 1600L
• Preliminary Capex :
‒ ~$3/4 B
~$3/4 B over 7 years
7
1800L
Schematic looking ENE
51
52. VICTORIA: SHORT‐TERM PRIORITIES
• First Nations consultations
• Environmental permitting
Q4 2011 • Discussions with stakeholders & Vale
• Completion of PEA engineering
• Continue step‐out diamond drilling
Continue step out diamond drilling
‒ Impact system scale & infrastructure
Targeting commencement of
T ti t f
development in 2012
52
53. VICTORIA: KEY HIGHLIGHTS
• Significant inferred resource, remains open
Significant inferred resource, remains open
• Impressive grades increasing with depth
• Victoria appears amenable to low cost, bulk underground
mining methods
• Pursuing an aggressive development timeline
‒ Expertise in house (QUX/DMC)
Expertise in‐house (QUX/DMC)
• Relatively low development risk profile
53
55. Q3 2011 HIGHLIGHTS & MILESTONES
Production: Significant improvements at Robinson & consistency in
y
Sudbury
C1 Costs decline to $2.13/lb Cu: Higher Cu volumes
Profitability: Reported EPS impacted by one time & non cash items
Profitability: Reported EPS impacted by one time & non cash items
• 44% increase in CFPS vs. Q3/10
Completed Sierra Gorda JV & commenced construction
Balance sheet: Over $1 BN in cash
Safety Record: Zero Harm remains our focus
Safety Record: Zero Harm remains our focus
• Sudbury at 701 days without a Lost Time Accident (LTA)
• Carlota at 484 days without a LTA
• Podolsky has over 900 days without a Lost Time Injury
55
56. ASSET CONTRIBUTION
YTD Operating income
YTD Operating income* Core Assets provide 90% of our
Core Assets provide ~ 90% of our
operating income
9% • Robinson /Morrison contribute ~85%
91%
Balance must:
• Have upside potential
• Provide optionality
Core Assets Other Assets
* Excluding the impact of inventory write downs 56
57. ROBINSON: CURRENT STATUS & OUTLOOK
Ruth Pit Q3 2011
ROBINSON
• Higher grades in the bottom of
the pit
• Higher mining & milling – new
records
• Re‐sequencing due to slope
stability
Outlook
Robinson • Operating flexibility & grades
continue to improve
East Ramp • Positive momentum has continued
into November
MORRISON
57
58. ROBINSON: CURRENT PLAN
• Operating flexibility
Ope at g e b ty • Slope stability
S ope stab ty
• 1 Mt in stockpiles • Slope angles
• Wider benches • Dewatering
• 3 dig faces
• Additional ramp access • Haulage optimization
• Larger benches
• Additional haulage &
loading capacity
loading capacity
• Mine Star
58
59. ROBINSON: HISTORICAL
MINERALIZATION
Keystone
Dump
Pilot‐Taylor
Ruth
Ruth
East
Tripp‐Veteran
Liberty Yellow ‐ 0.20% TCu
Yellow 0 20% TCu
Ruth
Red ‐ 0.35% TCu
~5.3 BN lbs of Cu & 3.8 M oz Au produced
5 3 BN lb f C & 3 8 M A d d
59
61. MORRISON: ACCESS ARRANGEMENT
Key benefits:
Immediate cost savings
Immediate cost savings
• Cessation of ongoing rehabilitation work on Levack #2 shaft
Operating flexibility & efficiencies
• Shorter haulage distance
• Operating efficiencies of Craig infrastructure
Drill access ‐ reserve/resource growth
D ill / th
• Significant improvement in drill access below current reserves
• Alternative diamond drill platforms to test other targets
Alternative diamond drill platforms to test other targets
61
62. MORRISON: CURRENT STATUS & OUTLOOK
Craig Shaft Levack
#2 Shaft
Q3 2011
Q3 2011
ROBINSON • Continuing strong
2650 L operating performance
Haulage route up to
~ 11 k ft of +18%
4300 L Outlook
• Strong Q4 due to high grades
Robinson • Finalizing Craig agreement
Finalizing Craig agreement.
Lateral Haulage Expected transition in Q1 2012
Route to Craig Ore
MORRISON Pass
~ 5 k ft to Craig laterally
Looking North West 62
63. MORRISON: RESERVE/RESOURCE GROWTH
Current ramp face &
reserve limit
MD3 4210 L
4210 L
22.6 ft @ 26.0% Cu, 3.0% Ni,
38.9 g/t TPM 11.8 ft @ 20.0% Cu,
3.3% Ni, 60.2 g/t TPM
Intercept > $300 value 5000 L
& minimum 6 ft. width
Current reserve
C
Current mineral envelope 19.6 ft @ 12.7% Cu, 1.0% Ni,
25.6 g/t TPM 63
Note: Assumes $2.75/lb Cu, $8/lb Ni,$1600/oz pt, $500/oz Pd & $1000/oz Au
64. GROWTH PROJECT: SIERRA GORDA
ROBINSON Outlook
• On time & budget
‒ Shovel parts on site
‒ Pre‐strip on track for March
2012
‒ Negotiating key contacts
‒ First construction camp
complete
‒ Site activity building rapidly
MORRISON
64
65. GROWTH PROJECTS: VICTORIA
ROBINSON Outlook
• Ongoing drilling confirming &
expanding footprint
• Permitting & stakeholder
k h ld
discussions ongoing
• Engineering studies completed by
g ee g s ud es co p e ed by
year‐end
MORRISON
65
66. OTHER OPERATIONS
Franke
Outlook
Q3 2011
Q3 2011
• Adjusting cut off to minimize acid
ROBINSON • Continuing impact of high consumption & reduce costs
acid consumption • Planning transition to China ,
which has less acid consumption
which has less acid consumption
in H2/12
McCreedy West
Q3 2011 Outlook
• Mining contact Ni ores
Mining contact Ni ores • Planned re‐start of Ni production
Planned re‐start of Ni production,
• Continuing discussion with dependent on payability terms &
Xstrata on treatment terms Ni prices
MORRISON
66
67. OTHER OPERATIONS
Podolsky Status Outlook
• Continuing its stable • Temporary closure
ROBINSON operating performance • Reviewing remaining exploration
until late 2012 (end of options
2000 Deposit reserves)
Carlota Status Outlook
• Conveyor stacking has • Base case: mining remaining
had a positive impact on oxides & residual leach
oxides: ~ 2 years of feed • Secondary sulphies are more
MORRISON challenging (higher fines)
• Eder deposit provides potential
Eder deposit provides potential
upside & has less fines
67
68. OPERATINGS COSTS (US$/lb Cu)
Q2 vs. Q3/11
2011 C1 costs C1 costs positively impacted:
$3.00
‐ 23%
• Higher production volumes
Higher production volumes
$2.50 ‐9%
(Robinson)
/lb Cu)
$2.00
• Lower by product credits
Lower by product credits
C1 costs (US$/
$1.50
(Morrison)
$1.00
+157%
$0.50
$0.00
Robinson Morrison Total
Q2 2011 Q3 2011
Q4 2011 Outlook:
• Continuing positive impact of higher Cu production
MORRISON gp p g p
68
69. FINANCIAL SUMMARY
Q2 VS. Q3/11 (US$ M)
$350 + 10%
• Despite a 12% decline in the
$300
realized Cu price, there were
$250 significant improvements in all of
llions
$200 QUX’s financial metrics in Q3 vs.
US$ Mil
$150 +124% Q2/11
$100 + 10%
$50
$0
Q2 2011 Q3 2011
Revenue Cash Flows Earnings
Strong balance sheet: Positioned to deliver our growth projects
• Cash balance totaling $1,067 M
69