BRR - Straight from the source

PRESENTATION BY RICK VALENTA, MANAGING DIRECTOR OF BONDI MINING LIMITED (BOM)

“Bondi Mining talks about Uranium Projects”

http://www.brr.com.au/event/52313

WEDNESDAY, OCTOBER 15, 2008, 10:00 AM.

            BRR    Hello and welcome to Boardroom Radio’s Uranium eConference. Today, we’re joined by Dr. Rick Valenta, Managing Director of Bondi Mining. Today,

10                    Rick will be presenting on current uranium mining activities and future prospects for Bondi Mining. Thanks for joining us today, Rick.

            BOM    Thanks very much, Eddie. Well, first of all, I’d just like to say, it’s a pleasure to be presenting at this Uranium eConference. I’m going to be talking about

15                    Bondi Mining’s uranium project and focusing particularly on our most advanced project, the Murphy Project in the Northern Territory.

                        The next slide is a disclaimer and you can read that at your own leisure. It’s on the website in all of our presentations, so I won’t dwell on it anymore in

20                    this case.

                        One of the first things that is important to think about whenever you’re thinking about investing in the junior sectors is what are the criteria that you would use to invest in a uranium exploration company. This is my attempt to

25                    list some of those criteria and obviously, I’m listing them because I think we performed very well and Bondi performs very well on all of those counts. First of all, management track record of uranium exploration success and value creation. In the case of the people involved in Bondi Mining, we’ve been involved in the discovery of over 135 million pounds of uranium in the last

30                    three or four years, and so we certainly know what successful exploration looks like. You also look for strong land positions in known mineralised belts with economically desirable targets. Our main project, the Murphy Project, is really going after the most economically desirable type of uranium that’s out there. That’s a non-conformity uranium deposit. We also have a strong land

35                    position in at belt which we suspected to have mineralisation. Now we’re absolutely convinced that it’s got potential to be a world class belt. You also look for evidence that a company has an aggressive program to move to discovery and delineation as quickly as possible, and we’ve certainly been very aggressive. We’ve carried out over the last year three drill programs and

40                    are planning the next ones even as we speak. Also, you’d look for strong and constantly developing pipeline of high quality projects and we certainly have a strong emphasis on continuing to develop our portfolio, and really all of that, runs into a company that shows evidence that it can deliver on its planned programs and actually move their projects forward. I’m going to try to show

45                    you today that that’s exactly what we’ve done.

                        Before talking in detail about the Murphy Project, I thought I would take this opportunity just to talk a little bit about our portfolio uranium projects. So we have four main uranium projects in Queensland and the Northern Territory. I’m not going to talk about the other ones to any great extent, but the North Maureen Project which is labelled, the upper right there, is the covered extension of the Townsville-Georgetown Uranium Province. It’s got multiple targets that are similar in geological characteristics to the Maureen deposit

5                      which is a nice grade uranium-molybdenum deposit with a reasonable and moderately-sized resource but certainly potential for expansion. We’ve completed one drill program on that project and are in the planning stages for the next. To the south of there, we also have the Mt. Hogan Project. This is also a project where we drilled this year and actually demonstrated the

10                    extension of a known high grade mineralised zone. It’s open a long strike and down dip and we demonstrated that through drilling, and we’re also planning the next phase of work in that project. In addition, we have an earlier stage project which is very prospective, the Juntala Project, and we’re in the process of advancing up towards the drill stage, also in Queensland.

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                        But now what I want to do is focus on the Murphy Project, which you’ll see in a second is the strike extension of the Westmoreland uranium deposits which are large, bulk tonnage, near-surface, open-pittable uranium deposit held by Laramide Resources. We’re working on the undercoverage extent of that but

20                    also in the same geological environment as the East Alligator uranium deposits which are really the marquee deposits of uranium-only style in Australia. We’ve completed a couple of drill programs on that project just recently and we’re in the planning stages for the next one.

25                    So now let’s talk a little bit about the Murphy Project. Again, as I said, what we’re after here is unconformity-style uranium which is characterised by the largest tonnage and the highest grades of all of the uranium-only deposits, so it’s a very economically desirable target. We’re working in an area in the north central eastern side of the Northern Territory, quite close to the Queensland

30                    border and actually a long strike, if you like along the same belt of rocks that hosts the Westmoreland uranium deposits across the border in Queensland, (inaudible) (00:05:19) 50 million pounds at around 0.1% U3O8 which is a good size and grade. But we’re also as I said, in a mirror image of the Alligator Rivers Uranium Field and when we look at the diagram in this slide,

35                    what you can see is a series of brown rocks which are the basin rocks. The Australian equivalent of the Athabasca Basin, if you like, and then the red rocks which are the basement and you can see that the yellow dots which are the uranium deposits are clustered around the contact between the basement and the covered rocks, and what you can see is a completely blank area in

40                    our tenement area. The reason it’s completely blank is that it’s under shallow cover, the significance of that being that it’s never had the wave of exploration that came through this area in the 60’s and 70’s where most of the discoveries were actually associated with airborne, gamma-ray surveys followed up by ground prospecting, and that wouldn’t have been effective in

45                    our area even though all the geology is right.

                        The other thing I put on this diagram in the coloured inset is just for demonstration purposes just to get your mind around the scale of our tenement holding. If you take our tenement holding, rotate it, and superimposed it on the Alligator Rivers Uranium Field, our tenement holding is similar in size to that entire uranium field that has 750 million pounds of uranium in it. So we hold a large enough area to really… to contain an entire district in that Murphy tenement area.

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                        So as I said, one of the things that I really like about the Murphy area when we started working here was that it’s actually... it’s under thin cover. So, what that means is that it’s an area where everything is right, the geology is right. All of the elements were there for this to be a very prospective area but the

10                    previous exploration was completely ineffective because of the cover. All the approaches that were used to find uranium deposits during our time wouldn’t have been effective in this area. So we’ve basically got a district-size coverage on a highly prospective area that’s had no previous exploration and what this diagram shows that the coloured areas are the outcrops and you

15                    can see that in our tenement area there’s really only one outcrop and the rest of it is all covered by relatively shallow Georgina Basin sediments.

                        The other thing to point out about this exploration setting is that this is the style of setting that led to discoveries in a whole series of different regions in

20                    Australia over the last twenty to twenty years. I’m thinking now of areas undercover in New South Wales and the Parkes District, the uranium-copper-gold mineralisation of Olympic Dam in South Australia, the Ernest Henry District in the Mt. Isa region in Queensland, all of these areas are areas with the right geology under shallow cover. The first thing that you have to do and

25                    we’re on the slide now called Murphy-Exploration Approach...the first thing that you have to do in this sort of setting is to use whatever tools you have to fill in the geology. We have no exposure so we had fill in the geology and we did that with an interpretation of the magnetic data sets that were available and define the first pass set of targets. So, what this slide shows is, our

30                    interpreted geology showing that we got about a 100 km of the right sort of geological environment to host the uranium that we’re after and we have define the series of target zones based on a sensible set of geological criteria.

35                    What this diagram shows...it’s a cartoon really of the sort of orebody that we expect to see in this area and the approach that we’re going to be taking to get it. So what we can see is that in the area that we’re working we have a thin cover of the Georgina Basin up to 60 m but sometimes between 10 m or 20 m. Under that we then we have Westmoreland Sandstone which hosts the

40                    mineralisation at the Westmoreland deposit, and then we have contact with the basement that actually is the geological environment that hosts uranium mineralisation in east Alligator deposits. Because we’re undercover, what we’ve done is carry out a type of exploration called track etch sampling where you bury cups that detect radon gas emitted by a uranium orebody of the type

45                    that is shown in green in this diagram. What you can see is that the red curve shows that what you’d expect is that the radon gas emitted by the orebody gives you a track etch anomaly that you can then use to like guide your exploration undercover.

                        So what I’ve got here now is the summary of our results to date of track etch sampling over our different areas where the red and purple and to a certain extent yellow, but mainly red and purple dots, show strong anomalies, so areas where there’s more radon gas being emitted possibly related to a

5                      buried uranium orebody. What you can see is that with the amount of sampling that we’ve done so far over our target areas, we’ve had multiple strong track etch anomalies and the one area that we’ve drilled, which is in the top left of this diagram, the UC19 area, what we’ve discovered is that the track etch anomalies are actually associated with areas that also have

10                    anomalous uranium in the scout drilling that we’ve been doing. So we’re getting a lot of confidence that this sort of approach is working. So we initially define one major anomaly in the UC19 area. After we’ve expanded our sampling, we now have at least four strong anomalies, only one of which has been drilled tested. So what we’re finding is that, like those other areas I

15                    mentioned that led to world class discoveries in Australia....what we’re finding is that, now that we have an approach to explore undercover, we’re identifying multiple anomalies that have never been tested before and we’re at this stage where we can go out and drill test them.

20                    So this is just a diagram showing our regional coverage of track etch sampling. That map on the left shows the areas where we have those results now, but we’ve even then expanded our coverage to cover a lot of the major structures that we think have potential to host mineralisation in the district. We’re very confident that the initial one anomaly, which has become four

25                    anomalies, will probably double again with this expanded coverage. So it’s a very exciting time in terms of getting results back, identifying anomalies for the first time in this geological environment which is so amenable to this sort of thing.

30                    So having identified all of these track etch anomalies that are potentially related to the sort of buried orebody that we’re showing in this district or in this diagram, what we then have to do is come up with a drill program to carry our scout drilling to work out which of those anomalies were actually related to mineralisation undercover. An important thing to point out is that at the

35                    scout drilling stage, because these orebodies tend to be relatively small but they often have a big broad area of Illite alteration and weak uranium enrichment, what we’re planning to do at this stage is not to drill straight into the orebody, but to use a cheap style of drilling, so in this case, RAB/aircore drilling to cover a lot of territories and to hopefully intersect that halo where

40                    success in this sort of program would be to identify the right sort of clay alteration and to detect a uranium enrichment of the type that we see associated with this style of mineralisation. What I’m going to show you is that we were successful in doing that on the UC19 target area which was the main track etch anomaly that we’ve drilled.

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                        So looking at the UC19 area, again, it’s a zone where we had a very strong track etch anomaly. The red contours show where the strongest anomaly was and it’s sitting on a bend in a very nicely detectable fault in the magnetics. What I’ve also put in this diagram is a diagram that shows the footprints of some of the other styles of mineralisation that we expect to or that occur in this style of mineralisation, just showing that we actually did.... the sort of coverage that we have is appropriate to detect something like that.

5                      What this diagram shows is that UC19 area and actually all of other scout drilling, and what it shows is that that UC19 target area that had a very strong track etch anomaly, also has a 10-km long zone of sporadically very anomalous uranium. So it shows that the track etch has worked and also that we appear to have at least.... the Borehole gamma logging suggests that

10                    we’ve intersected that sort of halo that we’re after to guide us to then do a deeper drill program. As I said before, this is part of the process of identifying an enriched halo. The other thing that we wanted to do is to try to identify the right sort of clay alteration.

15                    So now, moving on to the next slide, what we also did was analysed all the drilling for clay content and what I’m showing here is a couple of different displays of the characteristics of illite, and that sounds a little bit esoteric but it’s not, because in this case this style of mineralisation has a strong association with illite-rich alteration. So changes in illite (inaudible) (00:16:02)

20                    in illite ratio, and also distinctive illite alteration is one of the characteristic things associated with this style of mineralisation, and what we find is that UC19 area that had anomalous track etch sampling followed by anomalous uranium in our scout drilling. We also have the diagram on the left shows the same area has an anomalous illite crystallinity that’s likely to be related to a

25                    distinctive zone of hydrothermal illite. It’s distinctive relative to all the other drilling that we’ve done. So again, it gives us more confidence that we’re on to the halo of a uranium mineralised system in that area.

                        So the next step in our exploration approach is having identified a track etch

30                    anomaly then gone into scout drilling and shown that it had anomalous uranium and the right sort of illite alteration is to go in and do a deeper RC or diamond drilling test of that same target interval. At the UC19 area, our next drill program is planning to go back, take that most anomalous area, and do a deeper RC drilling test of that same target.

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                        This is a close up of the geology. If you stripped away the cover, this is what the geology of the UC19 area would look like. So we can see that that fault in the upper left hand of the slide goes along and marks a contact between some different units of the Westmoreland Sandstone and that the anomalous

40                    uranium is in the Westmoreland Sandstone, in and around that fault, and what we’ve done is -- done a cross section across there. So if you look at the lower right of this diagram, what you can see is an interpretation of where our existing drilling is, those shallow holes with the red spikes on them that show the kicks within the gamma related to anomalous uranium in the

45                    Westmoreland Sandstone, the halo I’ve talked about before, and then we have a series of proposed holes in bolder lines that we intend to do to actually test for the deeper target near the contact between the Westmoreland Sandstone and the underlying basement rocks. So we had as part of the planning for this, we put in an application for funding for the Northern Territory Geological Survey. They provide matching and funding for drill programs. We were one of a small number of companies who were successful in obtaining that funding. So that’s going to defray some of the costs of the plant drill program. We’re still trying to...we don’t have an exact date for the start of that

5                      drilling program. It’s going to depend on the weather and rig availability, but it’ll worth be it. Hopefully, it’s begun  this calendar year, if not early next calendar year.

                        So this is an example of the first target in this area that has got to the stage

10                    where we have a direct drill target drilling for the actual mineralisation. As I said, we now have a number of pipeline of other targets that we’re developing in the Murphy area. So overall, it’s a very exciting development.

                        So let’s just look at the summary of the results on the Murphy Project to date.

15                    One of the main things is that when we started work in this project, we thought it was conceptually the right sort of place to be, but didn’t really have because it was undercover. We didn’t have any direct evidence that it had the right stuff if you like to become a mineralised district. The work that we’ve done to date has really confirmed that prospectivity and we’ve actually

20                    discovered a large anomalously mineralised and altered system at UC19 at hydrothermally altered system that we’re now ready to drill. So up the targets we tested up until about September, UC19 had the strongest track etch signature. It had the best uranium results and they were certainly significant in this setting and very distinctive alteration. The fact that the track etch

25                    actually detected the uranium indicates that it works as a reconnaissance tool and what we’ve done as a result of that is increase our coverage and actually identify a series of other anomalies. The other implication is that UC19 is now at the stage. As I said, we’re ready to do deeper drilling on that target and having gained a lot confidence this is the right sort of system.

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                        So just a couple of new results that have come out recently. We’ve got additional anomalous results, we’ve got two different zones at UC19, and as I said before, new track etch data have highlighted this UC22 extended area but a number of other areas as well such that we now have four large target

35                    zones with results that are, you know, comparable to or better than UC19. Also, the Hychip data, the spectral data for clays continue to support the idea that that the unconformity uranium model is really working in this area and as I said, our application was also successful for matching drill funding for our proposed drill program at the Murphy Project. So that was a quick look at the

40                    Murphy Project, really our flagship project. It’s worth it to point out as well that we have a number of other projects that we’re still advancing.

                        So if we move on to the next slide now, page 18, what I’m going to do is just give a little bit of a summary of our outlook going forward. The first thing I’d

45                    say is that I’ve tried to demonstrate to you that the Murphy Uranium project, our highest priority one, is advancing strongly and is going to continue to be a real focus for us. Our exploration there is turning out multiple targets and we’re at a stage now where we’re talking to a number of potential partners about coming in to participate in the project. We’ve certainly had significant interest on that front. As I always said, we’ve successfully obtained NTGS funding to defray some of the costs for our planned programs as well. In a broader sense, it’s worth it to point out in the current climate that the fundamentals remain strong for uranium. Nobody stopped building any

5                      reactors. Reactor construction is continuing. The demand is predicted to remain strong for uranium so we remain convinced that uranium is a good space to be in and we’re going to maintain our focus on uranium. The current climate means that there are increasing number of high quality and, importantly, low cost opportunities becoming available as people lower their

10                    activities, and we’re making a lot of effort to take advantage of that situation. We continue to have a strong Board and management and I really want to point out that we, at this stage, are confident that we have sufficient funding to continue our planned programs in calendar  2009 and continue to advance our existing projects and seek new project.

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                        As always, you can have a look at more details on the website about our projects. You can contact us at the email address, but the telephone number, I won’t go through the details and all the directors. But on the website, there is information on the background of all those people. So I just want to thank you

20                    very much for your attention and pleased to ask you again, if you have any questions or interested in the company, please get in touch with us. Thanks very much.

            BRR    Rick, thank you for sharing those insights about your company today.

25                    Listeners, that was Dr. Rick Valenta, Managing Director at Bondi Mining presenting as part of Boardroom Radio’s Uranium eConference.

                        Thank you for your time.

PRESENTATION CONCLUDED

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