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Icon Resources Mt Carbine Tungsten Mine Far North Queensland August 2010

Icon Resources

Scheelite fluoresces under ultraviolet light. ‘Iron Duke’ lode, Mt Carbine

Disclaimer The information in this presentation is published to provide information about Icon Resources Ltd (Icon) and its subsidiaries. All reasonable effort has been made to provide accurate information, but we do not warrant or represent its accuracy and reserve the right to make changes to it at any time without notice. To the extent permitted by law, Icon accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation

Competent Person’s Statement Information in this presentation that relates to Exploration Results is based on information compiled by Dr John Bishop, who is a member of the Australian Institute of Geoscientists. John is a full-time employee of Icon and has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activity 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”. Dr Bishop consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Icon Resources Ltd (ASX: III)

Emerging Tungsten Producer ASX-listed - code III Near-term tungsten producer and diversified mineral explorer Key focus: re-opening of the Mt Carbine tungsten mine Experienced, technical board and management Dr Leon Pretorius, Chairman Dr John Bishop, Managing Director Dr Andy White, Non-exec. Director Steve Bartrop, Non-exec. Director Ian Sheffield-Parker, Project Manager Darcy Milburn, Exploration Manager Icon Resources Ltd (ASX: III)

What is Tungsten? A metal with several unusual properties (chemical symbol W) High melting point (3,400oC) Very heavy (


Hardness (as tungsten carbide) second only to diamonds

No known substitute for many uses Applications include: ‘Hard metal’ cutting/drilling tools High-speed steels, alloys Light globe filaments Mobile phones, smart windows, new

technologies, aviation & military

Icon Resources Ltd (ASX: III)

Tungsten: A Strategic Metal China has declared tungsten a ‘strategic metal’ with export quotas European Commission declared tungsten a ‘critical raw material’ “High supply risk” “Global demand pressures due to developing economies & emerging technologies”

China dominates global tungsten production, has ~65% of global reserves (with current forecast to last just 20 years) China is a net importer with tungsten demand expected to grow by 8% in 2010

Icon Resources Ltd (ASX: III)

Supply & Demand Issues Essential to modern manufacturing, demand is predicted to increase as developing nations increase their manufacturing capabilities Roskill predicts >12% supply shortage in 2015 No current Australian producers

Supply less Demand (tonnes)

Supply & Demand (tonnes)

Tungsten remains under the radar of most Australian analysts

Icon Resources Ltd (ASX: III)

Tungsten Pricing Tungsten currently traded by contracts Tungsten pricing referenced by ammonium paratungstate (APT) $

Raw concentrates 70-75% APT price


Current prices already at preGFC levels (on the way up) *100 metric tonne units (mtu) = 1 tonne

London Metal Exchange has indicated it will soon trade tungsten

5 yr APT Price Chart

Icon Resources Ltd (ASX: III)

Mt Carbine History Historically one of the world’s largest tungsten mines Produced premium wolframite and scheelite concentrates Responsible for 40% of annual Australian tungsten production Closed mid-eighties as China flooded the market and price collapsed Open cut mine with underground operation partially developed at mine closure

Icon Resources Ltd (ASX: III)

Mt Carbine Today Granted Mining Leases Mine site is ~45 minutes drive to Port Douglas, 1.5 hours to Port of Cairns Sealed roads and mains power pass through mine leases Several options for water Environmental approvals in place Existing tailings storage facilities with several years capacity

Icon Resources Ltd (ASX: III)

Mt Carbine Current Works Positive Scoping Study 2009 confirmed project viability (NPV = 33¢ per share) Increased, JORC-compliant Resource due Sept Qtr 2010 Testing of ore-sorters and metallurgical processing underway Parallel investigation into production from dumps and tailings dam materials Hard-rock pre-feasibility due March Qtr 2011

Icon Resources Ltd (ASX: III)

Understated Opportunity Model grade comparison with historical records suggest in situ grade is 20% higher than estimated Mining, ore-sorting, processing technology much improved in last 25 years Achievable 50% increase in tonnage Utilisation of existing dumps and tailings dams for early and increased output with low capex

Icon Resources Ltd (ASX: III)

Mt Carbine Prospects Scoping Study modelled: 1.5Mtpa open cut with strip ratio of 1.7:1 Resource of 7.2Mt @ 0.21% WO3 Producing ~2350t WO3 /yr

Excellent potential to increase life of mine Access to adjacent mineralisation Existing decline partially developed for underground operation

Model of diamond drilling completed July. All holes intersected mineralisation. Legacy drilling in black, Icon drilling in purple.

Icon Resources Ltd (ASX: III)

Increasing the Resource ~5km diamond drilling (HQ core) completed July 2010, awaiting assays Results will be used to upgrade resource and produce revised mining model Sept 2010 Visible mineralisation intersected in all drill holes

Icon Resources Ltd (ASX: III)

More Sources of Ore Untested resource potential within Carbine Hill, beneath old workings Waste dump of ~12Mt with reported grade of 0.07% WO3. Bulk ore-sorter tests starting Sept 2010 Reject dump of ~6Mt. Bulk ore-sorter tests Sept 2010 Tailings dams of ~2Mt @ 0.11% WO3 (JORC-compliant)

Icon Resources Ltd (ASX: III)

Tailings Dams & Dumps

Above, looking across the tailings dam to mine operations circa 1986. Below, #4 Tailings dam (plan view) ~1.8Mt @~0.1% WO3, pseudocoloured grade & thickness

Recent metallurgical advances have opened up a market for low-grade concentrates Opportunity to produce mixed concentrates from waste dump fines and tailings dams Low capex, fast start - Dec 2010

Icon Resources Ltd (ASX: III)

Further Potential Recently acquired 2 EPMs surrounding and adjacent to Mt Carbine EPMs contain old tungsten workings with no modern exploration Anomalous tungsten in soils identified in recent initial field surveys Acquisition facilitates potential extension to mining


Icon Resources Ltd (ASX: III)


Icon Resources Ltd (ASX: III)

Tungsten Outlook “Western world future supply ‘desperately thin’ & limited number of projects” (PDAC, March 2009) “Tungsten - the next sexy metal?” (Strictly Boardroom, August 2009) “Increasing deficit in tungsten from 2013” (Roskill, September 2009) “In 2012, it will be tin, tungsten & molybdenum” (CRU, October 2009) “Tungsten a ‘critical’ raw material” (European Commission, June 2010)

Supply Risk

“China’s demand to increase 8% in 2010” (Investing in Tungsten, July 2010)

Economic Importance


Source: European Commission, June 2010.

Icon Resources Ltd (ASX: III)

Immediate Opportunity Mt Carbine was a world-class tungsten mine, with excellent potential to be so again Tailings/dumps production scheduled to be operational December 2010/Jan 2011 Hard-rock resource upgrade scheduled Sept Qtr 2010 with start-up planned early 2013 Tungsten supply forecast to be in deficit from 2013 Icon share price does not reflect the value of the project

Icon Resources Ltd (ASX: III)

Corporate Details

Mt Carbine open cut, 1986

•Shares ~104M shares on issue 23M unlisted options Current share price ~7¢ Market cap ~$7M

Icon Resources Ltd (ASX: III)

Icon Resources Presentation to China-Australia Resources Summit 10.8.10  

Dr John Bishop presented to the China-Australia Resources Summit on progress at the Mt Carbine tungsten mine in Qld, Australia.

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