Investment Conferences


RARE EARTHS, SPECIALITY
& MINOR METALS
INVESTMENT SUMMIT
                 4.10 – 4.35
           ...
EPC: TSX-V




      Overview of the Chromite Market:
             building European supply

                            D...
DISCLAIMER




This presentation contains forward-looking information and statements, as defined by law including without
...
MANAGEMENT
                                                                                          Directors and Officer...
MANAGEMENT
                                                                     Management and Specialist Advisors

John P...
CONTENTS




   What is chromite? Why is it essential?

   Outlook for chromite.

   Empire’s Albanian chromite project...
CHROMITE
                         The essential ingredient of stainless steel



Fe + Cr essential
to make stainless
steel...
CHROMITE ESSENTIALS
                                                Metallurgical counts for most

      Metallurgical qua...
CHROMITE ESSENTIALS




•   Primary source of chromium

•   FeCr3O4 (referred to as chrome spinel).

•   Grades reported a...
CONTENTS




   What is chromite? Why is it essential?

   Outlook for chromite.

   Empire’s Albanian chromite project...
FERROCHROME PRICE TRENDS MID-2005 TO MARCH 2010
                       Source: Allegheny Ludlum updates Dow Jones Newswire...
WORLD PRODUCTION 2005-END 2009
                  Source: ICDA




                   South Africa



                     ...
WORLD STEEL OUTLOOK (ALL USES)
Rio Tinto presentation November 2009




                                       13
STAINLESS STEEL CONSUMPTION: THE RISE OF CHINA
                Acknowledgement to ENRC Nov 2009




                      ...
A REVIVED EUROPEAN SUPPLY?




   What is chromite? Why is it essential?

   Outlook for chromite.

   Empire’s Albania...
HISTORIC CHROMITE PRODUCTION IN ALBANIA*
                                           Dominance of Bulqiza district in produ...
BULQIZA DISTRICT OPPORTUNITY
                      The essential ingredient for high quality stainless steel



•   Empire...
INTRODUCTION
                                                                   Albania



 Albania political and fiscal r...
INFRASTRUCTURE
                                                      Implications for Development


Current road access fr...
ALBANIA
                                                            Geological Map




                    Bulqiza town an...
BULQIZA MASSIF



  BULQIZA MASSIF: the most prolific chromite producer in Albania

 Historic Bulqiza Massif Production
 ...
EMPIRE’S LICENCES



                           Bulqiza-Batra (38.8 km2)
                            Direct extension of ...
EMPIRE LICENCE PERIMETERS
                          Main project areas



                  Bulqiza Mine

Bulqiza Town

  ...
WORK ACCOMPLISHED




 January 2009: Exploration Licences
  awarded.
 Economic scoping studies carried out by
  SRK (to ...
REINTERPRETATION OF THE BULQIZA-BATRA SYSTEM
                                                    Generalised Schematic



...
BULQIZA-BATRA OREBODY REINTERPRETATION
                                             Recognition of Conformable Chromite Bo...
BULQIZA-BATRA OREBODY
Recognition of Thrust Tectonics Within a Homocline



           Photos: Low-angle thrust faults map...
BULQIZA-BATRA OREBODY
                     East-West Extension Model - present drilling plans


                          ...
BULQIZA-BATRA OREBODY SOUTH END (BATRA)
East Limb exploration and development; NW of ‘Neli’ open
                         ...
BULQIZA EAST LIMB
Planned drilling at North (shallow) end of limb



                 Subcropping chromite
               ...
THEKNA DEPOSIT
                                                             Isometric view from southeast.




           ...
EMPIRE’S MINIMUM AND UPSIDE OBJECTIVE




Development objectives:

• Minimum 3-5M tonnes mineable ore at c40% Cr2O3 for a
...
OVERALL DEVELOPMENT AIMS




• Aim for mining in 12 months from initial development
  investment. Drilling and underground...
Empire Mining Corporation
    910 - 475 Howe Street
   Vancouver, BC V6C 2B3
           CANADA




www.EmpireMiningCorp.com
Indicative numbers only. Sources ICDA/World Industrial Minerals




    Layered complexes:                          ‘Podif...
CHROMITE IN WORLD STEEL PRODUCTION
The role of China (Acknowledgements to ENRC)




                                      ...
WHAT IS CHROMITE?




                    39
CHROMITE
                                          Sources of ore – very different types



    Layered                   ...
Share of world production
Turkey   Finland     Albania




                                     41
STEEL USE WITH INDUSTRIAL DEVELOPMENT
            Source: BHP Billiton March 2010




                                    ...
CHINESE SHARE OF WORLD STEEL PRODUCTION
               Source: BHP Billiton March 2010




                               ...
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Objective Capital Rare Earth and Minor Metals Investment Summit: Overview of the chromite market – building European supply - David Cliff

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Objective Capital Rare Earths, Speciality and Minor Metals Investment Summit
Overview of the chromite market – building
European supply
18 March 2010
by David Cliff, Empire Mining

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Objective Capital Rare Earth and Minor Metals Investment Summit: Overview of the chromite market – building European supply - David Cliff

  1. 1. Investment Conferences RARE EARTHS, SPECIALITY & MINOR METALS INVESTMENT SUMMIT 4.10 – 4.35 Overview of the chromite market – building European supply David Cliff – CEO, Empire Mining THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010 www.ObjectiveCapitalConferences.com
  2. 2. EPC: TSX-V Overview of the Chromite Market: building European supply David Cliff President and CEO Empire Mining Corp ( EPC: TSX-V) Empire Mining Corporation 910 - 475 Howe Street Vancouver, BC V6C 2B3 CANADA March 2010 www.empireminingcorp.com
  3. 3. DISCLAIMER This presentation contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements”), respecting the Company’s future plans respecting its mineral projects. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the availability of qualified workers; risks associated with exploration projects; dependence on third parties for services; non-performance by contractual counterparties; title risks; financial ability of the company to proceed as planned; force majeure; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: general business and economic conditions; the timing and receipt of required approvals; ability to procure equipment and supplies; continued availability of licences; political stability; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law. John Prochnau is a Certified Professional Geologist (CPG) and is the Qualified Person under National Instrument 43-101 for the projects discussed in this presentation, however the historic figures presented herein are not NI 43- 101 compliant. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves, the Company is not treating the historical estimates as current mineral resources or mineral reserves as defined by National Instrument 43-101, and the historical estimates should not be relied upon. 3
  4. 4. MANAGEMENT Directors and Officers David Cliff - President & CEO, Director  26 years with Rio Tinto; former Exploration Manager, Europe of Rio Tinto Exploration;  Involved in the discovery of three gold and one copper deposit;  Extensive experience in the evaluation of mineral projects and in the negotiation of all forms of mining industry agreements. Robert Giustra - Director  Engaged in creating, financing, developing and managing publicly traded companies since 1992;  Formerly an institutional sales broker with an international investment dealer;  President & CEO of Columbus Gold Corporation and Columbus Silver Corporation. Michael Johnson – Director  Former Chairman of Glebe Mines Ltd., the principal fluorspar-barytes mining company in Western Europe;  Holds (or has held) advisory positions with professional institutes, national governments, international agencies and funding organizations, including the World Bank and the UN (Environment Program);  External advisor on environmental matters to several international mining companies, including Rio Tinto and New Boliden-Outokumpu. 4
  5. 5. MANAGEMENT Management and Specialist Advisors John Prochnau - Special Advisor  Mining engineer and geologist;  Formerly held management positions with Selection Trust and Billiton;  Founder of Brancote Holdings: Discovery of the approx. 3.8M oz. Esquel gold deposit in Argentina. Yassen Khrischev – Exploration Vice-President  Exploration geologist with 15 years experience, especially within the SE Europe porphyry region;  International multi-commodity experience over 11 years with Rio Tinto;  Most recent experience with Newmont exploration for gold in Armenia. Professor Lirim Hohxa - Country Manager Albania  Over 50 years experience in ore deposit geology in Albania; 30 years at a senior level;  Former Director Department of Ore Deposits & Metallogeny, Geological Research Institute;  Former Deputy Director of the Albanian Geological Survey;  Specialist in the interpretation of thrust tectonics applied to ore geology. Mark Pepkola  Former Chief Geologist at the Bulqiza Mine;  Former Director and specialist at the Enterprise for Homogenisation and Processing of Chromite Ores  Former Vice-Director of the former state chromite mining company, Albkrom;  Extensive experience in the Albanian chromite industry. Bashkim Vata  Former exploration geologist, northern Bulqiza Area; 5  Director of the Burrel Branch of the Albanian Geological Survey.
  6. 6. CONTENTS  What is chromite? Why is it essential?  Outlook for chromite.  Empire’s Albanian chromite project. 6
  7. 7. CHROMITE The essential ingredient of stainless steel Fe + Cr essential to make stainless steel Add Ni to make it less But chromium brittle and non- magnetic. is essential to Mn can substitute Ni. make stainless Mo adds resistance to steel Cl. Carbon for hardness and strength (also + V and or Ti for strength and/or lightness). 7
  8. 8. CHROMITE ESSENTIALS Metallurgical counts for most Metallurgical quality chromite for ferrochrome utilises 90% of annual world production. Chromium is essential to the production of Austenitic stainless steel – typically 16% Cr +10%Ni + 1.5%C - which makes up 70% of production, as well as Ferritic and Martsenitic varieties. Albanian (or Kazakh or Turkish mainly) are blended with low Cr:Fe ratio chromites in the ferrochrome stage to produce the highest quality stainless steels. 8
  9. 9. CHROMITE ESSENTIALS • Primary source of chromium • FeCr3O4 (referred to as chrome spinel). • Grades reported as Cr2O3. • Occurs dominantly as layers in stratiform ultramafic complexes . Also as ‘podiform’ bodies in ophiolite complexes. Cr:Fe typically +/-3:1. Kazakhstan, Turkey, Albania. • Stratiform type accounts for 98% of global resources. Cr:Fe typically +/-2:1. 9
  10. 10. CONTENTS  What is chromite? Why is it essential?  Outlook for chromite.  Empire’s Albanian chromite project. 10
  11. 11. FERROCHROME PRICE TRENDS MID-2005 TO MARCH 2010 Source: Allegheny Ludlum updates Dow Jones Newswire Ferrochrome is the intermediate stage from ore to stainless . About 2.5 tonnes of ore to 1 tonne ferrochrome $ per lb Ferrochrome Albanian FOB chromite price reached $650 per tonnes for lump 40% Cr2O3 in 2008, dropped to $165/tonne in Q1 2009, but is coming back strongly. FOB ex Durres Port now $250/t. 11
  12. 12. WORLD PRODUCTION 2005-END 2009 Source: ICDA South Africa 12
  13. 13. WORLD STEEL OUTLOOK (ALL USES) Rio Tinto presentation November 2009 13
  14. 14. STAINLESS STEEL CONSUMPTION: THE RISE OF CHINA Acknowledgement to ENRC Nov 2009 14
  15. 15. A REVIVED EUROPEAN SUPPLY?  What is chromite? Why is it essential?  Outlook for chromite.  Empire’s Albanian chromite project. 15
  16. 16. HISTORIC CHROMITE PRODUCTION IN ALBANIA* Dominance of Bulqiza district in production (est >80%) Chromite Production in Albania, 1983 – 2009[t] Chromite [t] 1,200,000 Collapse of regime 1990 1,000,000 Response to chromite demand 800,000 600,000 400,000 Sources : USBM and BGS 200,000 2008/9 Estimated 0 1980s production of +/-800 000 tonnes from Bulqiza-Batra * Data compiled by ECTerra except 2008/9 (Figures in tonnes) 16
  17. 17. BULQIZA DISTRICT OPPORTUNITY The essential ingredient for high quality stainless steel • Empire holds exclusive exploration rights with consanguineous mining rights over the most historically productive chromite terrain in Albania. • Licence area held since January 2009. Five years to run, but mining rights can be applied for any time within that period over all or part of the licence. • Exhaustive data acquisition and review resulted in new target area for exploration development and mining. Empire Mining aims for >10Mt of high grade lump (+$200/t) chromite through a phased exploration/mining plan. • Aiming for start-up operation within 12-18 months at interim 150 000 tonnes per year. Added value potential in integrating mine-to-steel mill operation. 17
  18. 18. INTRODUCTION Albania Albania political and fiscal regime  Candidate EU country and NATO member. Acceptance of acquis communitaire by government in interests of greater transparency.  Improving political risk perception with stable parliamentary democratic institutions.  No restrictions on foreign ownership or capital/dividend restrictions.  Competitive corporate tax regime at 10% flat rate.  Investor-friendly mining code with consanguineous rights to apply for mining licence.  Duty free regime for importation of mining equipment. 18
  19. 19. INFRASTRUCTURE Implications for Development Current road access from Bulqiza to port of Durres is 150 km. Current transport time is 12 hours and costs at US$13 per tonne of ore. The current road is shown in blue. A new road (red/green dash) is under construction and due for completion in 2011/2. This will cut the average journey time to some 2 hours from chromite collection Tirana point to port. Durres Port Durres Port 19
  20. 20. ALBANIA Geological Map Bulqiza town and the head frame (operated by DCM-Terwingo JV), looking East. Eastern Ophiolite Belt DCM-Terwingo JV tailings recovery plant, Bulqiza. View to NW. 20
  21. 21. BULQIZA MASSIF BULQIZA MASSIF: the most prolific chromite producer in Albania  Historic Bulqiza Massif Production (1948-2007) of 20M tonnes (+35% Cr2O3).  Bulqiza ores are characterized by high grades (+40% Cr2O3) and (Cr:Fe ratios of 3:1).  The Bulqiza Massif contains some 65 identified chromite deposits and over 370 occurrences and Batra area: private mining operation adjoining Empire licence. 70,000 tonnes at >42% Cr2O3 extracted (October 2009). 17,000 showings; many are within tonnes high grade stockpile in centre of picture. Empire’s licence areas. 21
  22. 22. EMPIRE’S LICENCES Bulqiza-Batra (38.8 km2)  Direct extension of the Bulqiza and Batra chromite deposits (large red area). Bulqiza Veriore (6.9 km2)  Projected extension or repetition of Bulqiza ore body. Qafe Burreli (6.1 km2)  Partially explored deposits, near high grade Shkalla Mine, northwest Bulqiza. Liqeni i Dhive (12.7 km2)  Partially developed mines Empire Mining’s licences * Not all in Empire’s licensed area 22
  23. 23. EMPIRE LICENCE PERIMETERS Main project areas Bulqiza Mine Bulqiza Town Batra Thekna deposit 23
  24. 24. WORK ACCOMPLISHED  January 2009: Exploration Licences awarded.  Economic scoping studies carried out by SRK (to obtain view of the potential business objective).  2009: Review and digitisation of all available data including field measurements and completion of a NI 43-101 compliant Technical Report and an independent audit.  New understanding of structural setting of the Bulqiza-Batra deposit. Confirmed by Outcropping massive chromite on Empire licence at Batra (45% Cr2O3) field work and extraction by independent miners. Drilling to commence April 2010 at Batra and Bulqiza East Limb 24
  25. 25. REINTERPRETATION OF THE BULQIZA-BATRA SYSTEM Generalised Schematic The fold cusp areas are generally characterised by thicker and higher grade ores. 26
  26. 26. BULQIZA-BATRA OREBODY REINTERPRETATION Recognition of Conformable Chromite Bodies Left: Banded and massive chromite mineralization, Batra area. The original structural interpretation involved an anticline with thickening at the cusp. Past drilling by the state failed to find the presumed deep eastern limb. Right: Outcrop of layered chromite mineralization in harzburgite, with well developed axial plane lineation (azimuth 110º, plunge 10º). Batra Mine area. 27
  27. 27. BULQIZA-BATRA OREBODY Recognition of Thrust Tectonics Within a Homocline Photos: Low-angle thrust faults mapped on surface at Bulqiza (top, developed in brecciated harzburgite) and Batra (below, with surfaces in harzburgite and prominent sub-vertical joints striking 265º. The current interpretation, supported by field evidence indicates that the Bulqiza- Batra deposits are cut by major thrusts that divide the main orebody into at least three segments, of which only the central one has been mined. This not only fits the drilling and structural evidence, but also explains the lack of success experienced by the state in the search for the eastern limb. The eastern limb, in particular is shallow and accessible from available infrastructure. It is also entirely within Empire’s licence. 28
  28. 28. BULQIZA-BATRA OREBODY East-West Extension Model - present drilling plans Important Implications Arising From the New Interpretation:  Only the central block has been mined.  The ‘eastern limb’ potentially extends to some 2 km2 and plunges Bulqiza drilling southwards. area  The northern end of the eastern limb subcrops and is accessible from a short adit at the 1738 elevation.  The eastern limb is accessed for exploration and production from the existing 1440 adit (on Empire ground). Batra drilling  The western limb can be accessed area from the 1050 adit at the Bulqiza Mine. 29
  29. 29. BULQIZA-BATRA OREBODY SOUTH END (BATRA) East Limb exploration and development; NW of ‘Neli’ open pit April drilling programme 30
  30. 30. BULQIZA EAST LIMB Planned drilling at North (shallow) end of limb Subcropping chromite Mineralisation. 31
  31. 31. THEKNA DEPOSIT Isometric view from southeast. State drilling result; 3.6m at 37% Cr2O3 plus 22m at 43% Cr2O3 (with 3m parting). Exploited area Thekna ‘Main’ deposit Not in model extension High grade ‘cylinder’- shaped zone accessible by new 250m decline from 27 level. 32
  32. 32. EMPIRE’S MINIMUM AND UPSIDE OBJECTIVE Development objectives: • Minimum 3-5M tonnes mineable ore at c40% Cr2O3 for a minimum 10 year mine life (baseline business). • IF the Bulqiza-Batra east and west limbs are fully confirmed including the thicker cusp mineralisation, then the objective could be increased to a mine life of >20 years at 500kt/y. • Actual optimum output can only be determined with mining. Both Batra and Bulqiza produced as much as 800kt/y in the 1980s. We need to know what is sustainable with modern mining methods for optimum economic performance. 33
  33. 33. OVERALL DEVELOPMENT AIMS • Aim for mining in 12 months from initial development investment. Drilling and underground exploration to achieve initial NI43-101 resource. • Stepped approach from drilling programme (Feb 2010). • Initial 150kty output of c40% Cr2O3 from Thekna, Bulqiza-Batra east limb (priority areas) and others if feasibility confirms. • Aim for expansion over next two to three years to optimal output of (?) 400-500kty by additional exploration and development work. • Initial cost outlay: $6M over the first year. Total $15-20M to fund expanded project over three years, plus staged feasibility. 34
  34. 34. Empire Mining Corporation 910 - 475 Howe Street Vancouver, BC V6C 2B3 CANADA www.EmpireMiningCorp.com
  35. 35. Indicative numbers only. Sources ICDA/World Industrial Minerals Layered complexes: ‘Podiform’:‘Reserves’ ‘Reserves’ • Bushveld Complex (South • Kazakhstan 320Mt. Africa) 1 050Mt. • Albania 37Mt. • India 27Mt (90% from Orissa). • Russia 11Mt. • Great Dyke (Zimbabwe) 140Mt. • Turkey 5Mt. • Kemi (Finland) 94Mt. • TOTALS: +90Mt • Brazil 14Mt. • + Others • TOTAL 1 600Mt. 36
  36. 36. CHROMITE IN WORLD STEEL PRODUCTION The role of China (Acknowledgements to ENRC) 38
  37. 37. WHAT IS CHROMITE? 39
  38. 38. CHROMITE Sources of ore – very different types Layered ‘Podiform’: complexes: • Co-products important (PGE, • Chromite only commercially- Fe) important product. • Low Cr: high Fe (typically 2:1) • High Cr:Fe (typically 3:1). • Variable Fe2:Mg • Constant Fe2:Mg • Extensive layers, little • Generally deformed and lack deformation. continuity. • Uniform repetitive layers in • Dunite envelope and body with ultramafic harzburgite host in ophiolites composition at the base, felsic related to at the top. subduction/obduction. 40
  39. 39. Share of world production Turkey Finland Albania 41
  40. 40. STEEL USE WITH INDUSTRIAL DEVELOPMENT Source: BHP Billiton March 2010 42
  41. 41. CHINESE SHARE OF WORLD STEEL PRODUCTION Source: BHP Billiton March 2010 43

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