Day 2- Session 5: Global Hotspots Mining the Deep Ocean Objective Capital Global Mining Investment Conference 2010 Stationers' Hall, City of London 28-29 September 2010 Speaker: Ian Ransome - International Council on Mining & Metals

1. Investment Conferences
GLOBAL MINING
INVESTMENT CONFERENCE 2010
DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2)
Mining the deep ocean
Ian Ransome – CEO, Diamond Fields International Ltd
STATIONERS’ HALL CITY OF LONDON TUESDAY-WEDNESDAY, 28-29 SEP 2010
www.ObjectiveCapitalConferences.com

2. GLOBAL MINING
INVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners:
Other sponsors & participating organisations:

3. Meeting The Technical Challenges
To Develop New Resources
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4. NEXT FRONTIER – MARINE RESOURCES
• Increased Global Demand for mineral resources
• >80% of Global mineral resources beneath the Oceans
• Rise in Metal prices combined with development in deep water
technology now make Marine mining feasible
• Land Resources becoming scarcer 4

5. NEXT FRONTIER – MARINE RESOURCES
• Transition to Marine Resource Exploration and Mining happening at
depth up to 5 000 metres NOW….
• Marine Mineral Resources reserved by major countries such as China,
Russia, Germany, France etc…….
• Witnessing the birth of a NEW industry……. 5

6. NEXT FRONTIER – SMS AND SEDEX DEPOSITS
Marine Seafloor Massive Sulphides and Sedimentary Exhalative Suphide
Deposits formed at Ocean Ridge Spreading Ridges at depths between 1 500
– 3 000 metres
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7. Jiddah
Atlantis II
POLYMETALLIC (Zn, Cu, Ag, Au, Co) SEDEX
Red Sea Commission Mining Licence 30 Years
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8. Atlantis II Deeps
Mining Depths:
1900 – 2200 metres
Brine Pool:
200 metres thick
62°C – 45°C
LIMIT OF BRINES
2km
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9. NEXT FRONTIER
HISTORY
•Atlantis II Deposit Explored since
1969
• 1974 Red Sea Commission Formed to
jointly Explore Atlantis II
• 1977 – 1982 Preussag AG German MV VALDIVIA
Exploration Company contracted to
undertake Feasibility Study of Atlantis
II Deeps
• Resource, Processing, Metallurgical,
Pre-Pilot Mining and Environmental
Studies Successfully Completed
(US$28 Million)
FLOATATION PLANT
• Largest known marine SEDEX MV SEDCO 445 ABOARD SEDCO 45
Deposit in the World
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10. Preussag A.G. Coring Programs
North Basin
West Basin
•Total 628 core samples
East Basin
•Sampling Density 0.091km²
•Average Sampling depth
1 metre 8.5m
Southwest Basin
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11. HISTORIC RESOURCE ESTIMATE
North Basin Bulk Resources Based on
9.4% top 8.5 metres Average
•91 700 000 tonnes DSF
• 1 890 000 tonnes Zn
• 425 000 tonnes Cu
• 3 750 tonnes Ag
East Basin • 47 tonnes Au
Zinc
• 5 368 tonnes Co
Minimum Resource
West Basin
0.2% Southwest Basin
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12. TECHNICAL CHALLENGES
The Atlantis II Project Is A Technical Challenge
• Deposit is located in 2000 meters of water
• 70km from nearest shore
• New processing and mining technology required
• No existing infrastructure
• Elevated Brine Pool temperatures 45 C – 62 C
• Fine Particle Size Distribution (PSD) of Ore 80% < 2
microns
A Commercial risk
• Worlds Deepest mining operation and First deep sea mud
deposit to be mined
But:
Largest known and only tested Marine SEDEX in the World. It
has the potential to focus expertise and innovation on a new
frontier -- deep sea mineral resources
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13. MINING SYSTEM
REQUIREMENTS:
• Mine muds in hostile environment
• Transport material 2000 metres to
surface
• Geodynamic Positioning
CONVENTIONAL DRILL
SHIP
• Integrated Design
• Capital Intensive
• Operating Costs
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14. STAND ALONE MINING RISER
SUBSEA PLATFORM
Offshore Oil Industry FPSO
BUOYANCY CANS
Offshore Oil Industry
RISER PIPES
Offshore Oil Industry
RISER BUOYANCY
Offshore Oil Industry
RISER LIFT PUMP (RLP)
Offshore Oil Industry
SYSTEM MINING TOOL (SMT)
Dredging Industry
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15. Offshore Processing Challenges
• Ore is fine grained sulphide muds
• Pre-Pilot Mining Operations undertaken by
Preussag (1980’s) successively concentrated
offshore using floatation to 30% Zn @ 70%
Recoveries
• New processing techniques using sea
water are being developed to achieve
recoveries up to 85%
• Filtration using Rotary Vacuum Filters or
Disc Nozzle Filters – Slurry Transport
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16. SYSTEM FLOW DESIGN
Offshore Processing
Support Vessel
Offloading and Stockpiling
Concentrate Transport
Integrated Mining Tool
Hydrometallurgy
Product
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17. • Early studies by the Red Sea
Commission show that neither
sensitive coral reefs or fauna
within surface layers affected
• The Atlantis II Project can be
developed with minimal
environmental impact
• The environment at Atlantis II is
naturally variable
• Possibility of Pumping Tailings
under brine layer by return riser
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18. FISCAL
FINANCIAL VIABILITY
• Project Currently in Engineering Feasibility Stage
• Project Costings Dependent on final Design
Selection
• Initial Financial Viability Assessment undertaken
using updated Preussag A.G. Feasibility Study (1981)
• Variable IRR returns calculated ranging from 16.1% -
22% Production Model Dependent
• Expected IRRs to range from 25%-35% from new
Feasibility study using improved technologies,
improved resource base and recoveries
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19. • Minimal Infrastructure
• Limited Social Disturbance
• Minimal Overburden or Stripping
• Minimal Waste
• Increased Worker Safety – Remote Controlled
at the “Mine Face”
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20. BUSINESS STRATEGY
• 26 Other Deeps Known in Red Sea
• Vast Areas of Ridge Complex
Unexplored
• Major Potential for Massive
SEDEX , SMS Deposits
• Technology developed from
Atlantis II Project will be applied
to developing these further
prospects
• Operational Cost Advantages
working from Saudi Arabia
• Diamond Fields set to
Be at forefront in Deep Water
Marine Resources – the Next
Frontier
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21. GLOBAL MINING
INVESTMENT CONFERENCE 2010
Lead sponsors:
Media partners:
Other sponsors & participating organisations: