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SCIDEV LTD Investor Presentation 2008

May 15, 2008

65761_rns_2008-05-15_b42bef90-f816-443f-8d7c-c7a37e5ef71f.pdf

Investor Presentation

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ABN 25 001 150 849

Gordon Chiu Building J01 Phone: 02-9351-6741 Department of Chemical Engineering Fax: 02-9351-7180 Maze Crescent Email: [email protected] University of Sydney NSW 2006 Website: www.intec.com.au Australia ASX code: INL

Companies Announcements Office 16 May 2008 Australian Securities Exchange

2008 Exploration Group Forum

Attached is the presentation that I will be delivering today to the “2008 Exploration Group Forum” in Launceston, Tasmania entitled "Intec’s Mineral Processing Activities in Tasmania”.

Also attached is the presentation entitled “Hellyer Zinc Concentration Joint Venture” delivered by Andrew Lawry, Projects Manager, Polymetals Group on behalf of the joint venture.

Yours faithfully Intec Ltd

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Philip R Wood

Managing Director and Chief Executive Officer

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ASX code: INL

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Intec[Ltd]

Intec’s Mineral Processing Activities in Tasmania

Presentation to the 2008 Exploration Group Forum Philip Wood, Managing Director & CEO, Intec Ltd Launceston Friday, 16 May, 2008

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Intec’s Interests in Northwestern Tasmania

  • Hellyer Zinc Concentrate Project

  • (See separate presentation by Andrew Lawry of Polymetals Group)

  • 50/50 joint venture with Polymetals

  • Producing 60,000 tpa bulk zinc/lead concentrate from Hellyer tailings

  • Bass Metals Ltd

  • (See separate presentation by Mike Rosenstreich of Bass Metals)

  • 23.5% owned by Intec

  • Exploration on the Hellyer lease, including the nearby Fossey Zone

  • High-grade mining operation at Que River

  • Intec Research Facility (Burnie)

  • Office, Demonstration Plant & Laboratory

  • Intec Metals Recycling Project (Hellyer)

  • Stage 1: recycling electric arc furnace dust

    • Stage 2: processing intermediate lead concentrate from Hellyer tailings
  • Future Resources for Treatment (Northwestern Tasmania)

  • Intec Zeehan Residues and others

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Intec’s Interests in Northwestern Tasmania
80km road and Burnie deepwater port and
rail access from concentrate storage bays
project to port
Burnie Research Facility
Hellyer Zinc Concentrate
Project
&
Proposed Intec Metals
Recycling Project
Bass Metals’ operations at
Hellyer/Que River
Intec Zeehan
Residues
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Intec Hellyer Metals Pty Ltd – Research Facility at Burnie
Demonstration Plant Administrative Office
Ammtec’s Research Laboratory
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Demonstration Plant (within Intec’s Research Facility in Burnie)
-
A$10 million total capital cost
-
Officially opened in September 2005
-
Extensive hydrometallurgical processing campaign on Hellyer tailings in 2006
-
Campaign operations on EAF dust September 2007-March 2008
-
Further campaign operations proposed during 2008 for Stage 2 of Intec’s
Metals Recycling Project
-
Available in the future for further testing and strategic project opportunities
with third parties
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Intec Metals Recycling Project
Moist EAF dust from OneSteel’s Laverton Mill, stored in drums on-site at Intec’s Burnie Demonstration Plant
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Aerial view of Hellyer
Tailings Dam Road & Rail
50 hectares Access
BSM’s
Fossey Zone Mine Adit (plugged)
Electricity Grid 1.5 Mtpa Hellyer Mill
& proposed Intec
Metals Recycling Plant
Que River
(off map)
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BSM’s Que River
Mining Area
BSM’s
Fossey Zone
Intec Hellyer
Mill and future
Intec Metals Recycling
Project Site
Closed Hellyer Mine
Portal
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Intec Metals Recycling Project
Road & Rail
Access
EAF dust storage
Intec Metals Recycling
Project Plant
Electricity grid Existing 1.5 Mtpa Hellyer Mill
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Intec Metals Recycling Project: Stage 1

EAF Dust

  • -Residue from steel recycling

  • -Ongoing production

  • -~28, 000tpa in Australia & NZ, average >35% zinc

  • -~6Mtpa globally

  • -Supply Agreement with OneSteel has secured 65,000 tonnes for Intec at no cost

Products

  • -Zinc oxide, lead/silver sulphide, calcium sulphate

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EAF Dust Storage at Footscray

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EAF Dust Storage Bunker at Hellyer
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EAF Dust Being Delivered at Hellyer

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Intec Metals Recycling Project: Stage 2 Intermediate Lead Concentrate from Hellyer tailings

  • -Fine lead to be separated from the cleaner tails of the Intec Hellyer Mill

  • -56,000tpa Intermediate Lead Concentrate stream containing ~15% Pb, 5% Zn, 200g/t Ag and est. 2.5g/t Au

  • -This would be fed into the Intec Metals Recycling Project for increased metals recovery of lead and other metals

Products

  • -Lead/silver sulphide, zinc oxide, gold, calcium sulphate

Synergies with Stage 1

  • -Pyrite roasting eliminates sulphuric acid requirement -Economies of scale -Common site and workforce -Recycles existing residue stream

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Unlocking lead value from tailings
High recoveries
>60%
Significant lead
value unlocked
<15% Low recoveries
15% 60%
Pb Grade
Acceptable grade Minimum saleable
for Intec Process grade for smelters
Pb Recovery
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Intec Metals Recycling Project

Project Milestones

-July 2007: OneSteel (formerly Smorgon Steel) EAF dust supply agreement -Aug 2007: Commenced receiving EAF dust at Footscray -Sept 2007: Burnie Demonstration Plant operations started on schedule

  • -Aug 2007:

  • -Sept 2007:

Preliminary economics released (Stage 1 only) Development Approval (Stages 1 & 2) received Commenced receiving EAF dust at Hellyer Independent GHD Stage 1 study received

  • -Nov 2007:

  • -Dec 2007:

  • -Feb 2008:

  • -April 2008:

Board decision to investigate advancing Stage 2 due to synergies with Stage 1

  • -May 2008:

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Intec’s Environmental Advantages

  • -Highest zinc recovery (95+%) of competing technologies

  • -Full lead and silver recoveries

  • -Low energy consumption

  • -Environmentally stable residue

  • -Potential for ‘zero waste’ solution through sale of haematite residue

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Future Tasmanian Resources for Treatment

Intec Zeehan Residues Pty Ltd

  • -450,000 above-ground tonnes at 19% zinc equivalent

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Other Regional Zn/Pb Explorers
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  • -Fossey Zone/Hellyer Resource (Bass Metals) -Tasman Crown, Mt Lyell (Copper Mines of Tasmania) -Comstock and Oceana deposits (Zeehan Zinc) -Professor Zinc Project (Icon Resources) -Stonehenge Base Metals Project (Stonehenge Metals Ltd) -Wilson River, Temma projects (Jaguar Minerals) -Regional exploration tenements (ASF, China)

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Future Tasmanian Resources Treatment

Government Participation - Rail

  • -Federal Government has announced an $11.7m upgrade of the Western Rail Line, for the Hellyer spur line and extension from Melba Flats to Zeehan

  • -Potential to remove over 175,000tpa of feedstock, reagent and product transport from the road for the Hellyer Projects

  • -Future benefit for transport of 460,000t stockpile of Intec’s Zeehan Residues and other northwestern Tasmanian resources

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The Future

Intec's future is to generate positive cashflow as an integrated mining and minerals processing company at Hellyer, while also becoming a technology provider worldwide.

Intec will participate in base and precious metals projects wherever our existing assets, corporate capabilities and the Intec Process enhance economic and environmental outcomes.

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Philip R Wood Managing Director & CEO Email: [email protected]

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Intec Ltd Gordon Chiu Building, J01 Department of Chemical Engineering Maze Crescent, University of Sydney NSW 2006 AUSTRALIA Tel: +61-2-9351-6741 Fax: +61-2-9351-7180 Web: www.intec.com.au

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Brian Banister Intec Ltd Chief Operating Officer, Intec Ltd 10-12 River Rd Managing Director, Intec Hellyer Metals Pty Ltd Burnie Email: [email protected] TAS 7320 AUSTRALIA Tel: +61-3-6431-9867 Fax: +61-3-6431-3629 Web: www.intec.com.au

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Polymetals Group Hellyer Zinc Concentrate Joint Venture Polymetals / Intec JV

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By Andrew Lawry, Andrew Platts, Andrew Bott

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Polymetals Group Hellyer Zinc Concentrate Joint Venture Tasmania Mineral Council 2008 Exploration Group Forum

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Polymetals ‐ Who we are Our projects – current and developing Hellyer Project Joint Venture details Past history Resource and mineralogy Site plan Flowsheet HZCJV Project – major works Commissioning and forecasts Operating strategies Innovations since commencement Performance – initial and current Photos Acknowledgements

Polymetals Group Hellyer Zinc Concentrate Joint Venture Who we are

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  • Polymetals is a privately owned mining company with a 22 year history which has created a niche in the Australian mining industry

  • small, dynamic company with low management overheads

  • experienced senior management team

  • track record of exploiting projects that larger companies are unable to develop

  • hands on ability to design, construct and operate

  • Polymetals is a growing business and is actively seeking additional projects including JV opportunities

Polymetals Group Hellyer Zinc Concentrate Joint Venture Our projects

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  • Hellyer JV (50%); Northwestern Tasmania

  • White Dam Gold Mine (50%); near Mingary SA

  • Mt Boppy Gold Mine (100%); Canbelego NSW

  • Nimbus Silver Mine (100%); Kalgoorlie WA

  • Head office; Brisbane Qld

Polymetals Group Hellyer Zinc Concentrate Joint Venture Joint venture details

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  • Hellyer Zinc Concentrate Joint Venture (HZCJV)

  • 50:50 unincorporated JV with Intec

  • 4‐year (or 6Mt) term expiring December 2010

  • Intec have the option to extend

  • Pre‐production costs funded by Polymetals ($6M)

  • 1.2 Mtpa with 6‐8 Mt resource remaining

  • JV producing 60,000tpa zinc‐lead‐silver cons

  • JV annual sales: $63m

  • JV project profit before tax: $10m pa

  • Possible expansion treating external ores

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Polymetals Group Hellyer Zinc Concentrate Joint Venture Hellyer – past history

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  • Polymetallic Volcanic Massive Sulphide orebody discovered in 1983 by Aberfoyle Ltd

  • Mine development commenced in 1985

  • Concentrate production (4 products) commenced in 1989

  • Aberfoyle taken over by Western Metals Ltd in 1998

  • The orebody was exhausted and the last ore processed in June 2000

  • Processing facilities on care & maintenance from 2000 to 2006

  • Intec Ltd purchased Hellyer Mining Lease resource assets and mill facilities from receiver of Western Metals Ltd in 2003

  • Original metallurgy was complex with significant quantities of metal remaining unrecovered in the tailings

  • Numerous studies conducted by Aberfoyle and Western Metals to exploit the tailings resources; including hydrometallurgical and flotation

  • Tailings dam drilled in 1998 and 2000. Flotation pilot plant in 99/2000

Polymetals Group Hellyer Zinc Concentrate Joint Venture Tails Resource & Mineralogy

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  • 10.88 Mt, Zn 2.80 %, Pb 3.00 %, Ag 88 g/t, Cu 0.16 %, Au 2.58g/t

  • Chalcopyrite 0.46 %, Galena 3.46 %, Sphalerite 4.17 %, Arsenopyrite 2.69 %, Pyrite 51.00 %, Non – sulphide gangue 38.20 %

  • Tails dam area of 50 hectares with tails depth ranging from 2 m to 18 m

  • Particle size p80 of 45 microns

  • 70% of sphalerite is 38 to 7 microns and only 50% liberated – main association with pyrite

  • Galena fine grained with 50% less than 7 microns and also heavily oxidised (hence predominantly un‐flotable)

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Polymetals Group
Hellyer Zinc Concentrate Joint Venture
Site plan
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Road & Rail
Tailings Dam Access
50 hectares
Mine Adit
( plugged )
1.5 Mtpa Hellyer
Mill
Electricity Grid
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Polymetals Group Hellyer Zinc Concentrate Joint Venture Flowsheet – for Geologists

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Polymetals Group Hellyer Zinc Concentrate Joint Venture Flowsheet – for the rest POLYMETALS / INTEC JOINT VENTURE 2006

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POLYMETALS / INTEC JOINT VENTURE 2006
HELLYER TAILS RETREATMENT - FLOWSHEET
Shore Tank
and pump station TAILS DAM SHALE QUARRY - NEW TAILS STORAGE
Dredge/s
Final tails pumped to shale quarry
Tails water Water return pumps
overflow Return water to plant Southwell river
to wetlands fresh water pumps
and Que River
cyclopac Process water tank
ROUGHER FLOTATION CIRCUIT Water to plant as flotation wash/make-up/gland sealing
Tails thickener 8 Maxwell 50m3 cells
O/F TOWER MILL
U/F BALL MILL REGRIND
BULK CLEANER CIRCUIT
1st Cleaner - 6 Maxwell 50m3 cells
Surge tanks Thickener O/F water 2nd cleaner - 6 Maxwell 38 m3 cells
to grinding cyclone feed sump 3rd cleaner - 4 Maxwell 38 m3 cells
CONC STOCKTANK
Bulk
Con
cvr 08 or 09
LASTA PRESSURE FILTER
BULK PB/ZN CONC
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Polymetals Group Hellyer Zinc Concentrate Joint Venture HZCJV Project – major works

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Established on site in June 06

Major works included:

  • Existing plant refurbishment (mechanical and electrical),

  • Construction of 2 x 1200 m3 storage tanks (“fine ore bins”),

  • Dredge to plant pumping station (3kms),

  • New tails storage dams;

  • Mobilisation of the dredge to Hellyer

  • Cost to Polymetals ‐ $6 million

  • Issues:

  • Maintaining construction schedule / bad weather months

  • Dredge delivery across 4 states

  • Work completed in Nov 06 (thanks to highly motivated Tasmanians)

Polymetals Group Hellyer Zinc Concentrate Joint Venture Commissioning & forecasts

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Commenced 15[th] Nov 2006

Issues:

  • Dredge availability initially very low at 60%

  • Spares supply from dredge contractor

  • Logistics of moving / anchoring dredge

  • Operator training of local “green” dredge operators

  • Low dredge availability affected plant stability hence metallurgy

  • Low feed grades due to upper level dredging

Budgeted 60,000t concentrate production at 46% Zn + Pb 55% zinc recovery

Polymetals Group Hellyer Zinc Concentrate Joint Venture Operating strategies

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Dredging/Mine Planning

  • Higher grade tails at depth (9 – 16m) and predominantly along original river valley

  • Sequential mining along (down) river valley

  • Aim to mine highest grades in first 2 years

  • Mine in 30 m wide strips, 0‐9m followed by 9‐16m sections

  • Use block model and Micromine

  • Tailings management plan co‐deposition with dredging

Polymetals Group Hellyer Zinc Concentrate Joint Venture Operating strategies – continued

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Metallurgical and plant

  • Liberation and recovery of zinc (and lead) from (50%) pyrite

  • Sequential mining results in; low grade feed (2% Zn) and low zinc recovery followed by high grade feeds (3.5% Zn) with high zinc recoveries

  • Feed rate to mill adjusted on zinc unit basis i.e. high feed rate on low grade feed to maximises concentrate output

  • Large flotation residence times to maximise recovery and improve selectivity (ore is fine, oxidised and slow to float)

  • Multiple cleaning stages to ensure concentrate quality for smelter customers – minimum 32‐37% Zn and 46% Pb + Zn

Polymetals Group Hellyer Zinc Concentrate Joint Venture Operating strategies – continued

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Tails Management

  • Tails management planning intimately linked to dredge planning

  • Co‐deposition of new tailings with dredging

  • Shale quarry (mined for backfill in 90’s) used for first year’s tails storage

  • 4 new “internal” dam walls constructed within the footprint of the existing dam (2 walls to be completed)

  • Construction of internal bunds within tails dam to ensure new tails does not flow to dredge suction

Polymetals Group Hellyer Zinc Concentrate Joint Venture Operating strategies – continued

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Environmental

  • Tailings stored underwater to prevent oxidation of high pyrite tailings

  • Rehabilitation planning includes limestone cover on tails surface (post mine)

  • The key licence condition is that water quality discharging site meets defined targets (enters the Que and Pieman River systems)

  • Environmental lime is added to plant tails to assist in removing small quantity of dissolved metals

  • Remnant ARD sources relocated and buried in new tails (e.g. original ROM ore pad)

Polymetals Group Hellyer Zinc Concentrate Joint Venture Innovations since commencement

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High Intensity Conditioning (HIC’s)

  • Developed by Aberfoyle in mid 1990’s originally for cleaning oxidised lead particles and improving recovery

  • 3 x 32m3 agitated tanks with an 800kW motor agitating slurry with sand (attrition grinding)

  • Polymetals testwork in early 2007 indicated HIC’s could improve zinc flotation (7% in lab, 3‐5% budgeted)

  • Units refurbished and re‐commissioned on flotation cleaner feed in Nov 2007

  • Zinc recovery improvement of 10%

Polymetals Group Hellyer Zinc Concentrate Joint Venture Innovations since commencement – cont.

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ZINC RECOVERY VS HEAD GRADE
POLYMETALS HELLYER MILL (BEFORE AND AFTER
HIC)
90
80
70
60
50
40 BEFORE HIC
30 AFTER HIC
20
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
FEED GRADE % ZN
ZN RECOVERY %
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Polymetals Group Hellyer Zinc Concentrate Joint Venture Innovations since commencement - cont

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Other improvements

  • Dredge and contract purchased by JV in July 2007. Dredge availability improved from 60% to 90% over 3 months

  • Replaced operator interface system (improved operations)

  • Increased rougher flotation capacity (3% recovery increase)

  • De‐bottle‐necked regrind circuit (increase throughput)

  • Reagent optimisation (lead recovery up from <10 to 15%)

  • Replaced primary cyclones (improved throughput and recovery)

  • Magnetic flotation; Proflote (improved recovery)

Polymetals Group Hellyer Zinc Concentrate Joint Venture Initial performance

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Start‐up to Feb 07:
Target: Actual:
% Dredge availability 85 80
% Mill availability 82 83
Tonnes treated 328,900 351,116
Tonnes concentrate 13,337 9372
Cons grade
% Zn 40 39
% Pb 10 8
g/t Ag 180 222
% Zn recovery 55 45

Polymetals Group Hellyer Zinc Concentrate Joint Venture Current performance

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Q1 2008 results Target: Actual: % Dredge availability 85 89 % Mill availability 92 91 Tonnes treated 261,601 343,144 Tonnes concentrate 14,652 14,691 Cons grade % Zn 35 37 % Pb 12 12 g/t Ag 134 222 % Zn recovery 63 66 (budget forecast) 55‐75

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Polymetals Group Hellyer Zinc Concentrate Joint Venture Photos

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New tanks Shore tanks (relocated)

Polymetals Group Hellyer Zinc Concentrate Joint Venture Photos

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Dredge mobilisation and launch

Polymetals Group Hellyer Zinc Concentrate Joint Venture Photos

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First Concentrate Production – Nov 06

Polymetals Group Hellyer Zinc Concentrate Joint Venture Photos

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Dredge at Hellyer - 2007

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Polymetals Group Hellyer Zinc Concentrate Joint Venture Photos

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Dredge shutdown – July 07

Polymetals Group Hellyer Zinc Concentrate Joint Venture Photos

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Our crew
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Polymetals Group Hellyer Zinc Concentrate Joint Venture Acknowledgments

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Intec Hellyer staff MES

BRL

Solly Constructions DeBruins Groves Caloundra Environmental