Name of the Project
Sconi scandium/cobalt/nickel project – Phase 1.

Location
The project is located 250 km west of Townsville, in Queensland, Australia.

Client
Metallica Minerals.

Australian Mines can earn a 75% interest in the project. The first 50% interest will be subject to the completion of a definitive feasibility study (DFS), or a A$10-million spend within a four-year period, with a further 25% to be acquired after Australian Mines arranges suitable finance or the development of the project within 18 months of completing the Stage 1 earn-in.

Project Description
The Sconi project encompasses two scandium/cobalt-rich, and three nickel/cobalt deposits.

The total scandium resource at Sconi is 12-million tonnes, at 162 parts per million of scandium for 2 989 t of scandium oxide.

The combined nickel and cobalt mineral resource for the project is 89-million tonnes at 0.58% nickel and 0.06 % cobalt for 514 000 t of contained nickel metal and 54 000 t of contained cobalt metal.

The project is based on throughput estimated to deliver a yearly average production of 3 010 t of cobalt sulphate, 24 420 t of nickel sulphate and 77 t of scandium oxide for at least the first 20 years, with average feed grades being 0.11% cobalt, 0.81% nickel and 109 g/t scandium.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
The Northern Australia Infrastructure Facility (NAIF) board has indicated that it will investigate the potential to provide support for the Sconi project.

The NAIF provides access for up to A$5-billion of finance, which could be on concessional terms to support infrastructure development that generates public benefit for northern Australia.

Australian Mines has appealed to the NAIF for financial assistance to develop Sconi; it has progressed through the enquiry, preliminary assessment and strategic assessment stages and is now in the due diligence phase.

The next step for Australian Mines is to provide detailed due diligence materials for the NAIF for review and to submit its formal investment proposal.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metallica Minerals, tel +61 7 3249 3000 or fax +61 7 3249 3001.
Australian Mines, tel +61 8 9481 5811 or email office@australianmines.com.au.