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North Queensland Resource Development: Townsville August, 2010

North Queensland Resource Development: Townsville August, 2010. Developing new tin production from a historic tin field. Disclaimer.

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North Queensland Resource Development: Townsville August, 2010

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  1. North Queensland Resource Development: Townsville August, 2010 Developing new tin production from a historic tin field

  2. Disclaimer This presentation has been prepared by Consolidated Tin Mines Ltd (CSD) based on information from its own and third party sources and is not a disclosure document. By retaining this Presentation, you (the Recipient) acknowledge and represent to CSD that you have read, understood and accept the terms of this Important Notice. If you do not accept these terms, you should immediately destroy or delete this Presentation. This Presentation does not purport to contain all information that a prospective investor may require in connection with any potential investment in CSD. Each Recipient must make its own independent assessment of CSD before acquiring any securities in CSD (“Securities”). You should not treat the contents of this Presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. Before acquiring any Securities, you should ·consult your own advisers and conduct your own investigation and analysis in relation to CSD. No representation or warranty is made by CSD or any of its advisers, agents or employees as to the accuracy, completeness or reasonableness of the information in this Presentation or provided in connection with it. No information contained in this Presentation or any other written or oral communication in connection with it is, or shall be relied upon as, a promise or representation and no representation or warranty is made as to the accuracy or attainability of any estimates, forecasts or projections set out in this Presentation. No liability will attach to CSD or its advisers with respect to any such information, estimates, forecasts or projections. CSD does not accept responsibility or liability for any loss or damage suffered or incurred by you or any other person or entity however caused (including, without limitation, negligence) relating in any way to this Presentation including, without limitation, the information contained in or provided in connection with it, any errors or omissions from it however caused (including without limitation, where caused by third parties), lack of accuracy, completeness, currency or reliability or you, or any other person or entity, placing any reliance on this Presentation, its accuracy, completeness, currency or reliability.CSD does not accept any responsibility to inform you on any matter arising or coming to CSD’s notice after the date of this Presentation which may affect any matter referred to in this Presentation. Any liability of CSD, its advisers, agents and employees to you or to any other person or entity arising out of this Presentation including pursuant to the Australian Securities and Investments Commission Act, 2001, Corporations Act 2001 and the Trade Practices Act 1974 or any other applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded. The distribution of this Presentation may be restricted by law in certain jurisdictions. Recipients, and any other persons who come into possession of this Presentation must inform themselves about, and observe any such restrictions. Future Matters This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of CSD. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of CSD may be influenced by a number of factors, many of which are outside the control of CSD. No representation or warranty, express or implied, is made by CSD or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause CSD’s actual future results, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. CSD does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended.

  3. Tin Deposits in Far Nth QLD • Herberton Tinfield is equivalent to the Herberton Gold & Mineral field • Queensland Government divisions of area of mineral discovery • Atherton 1:250,000 sheet (SE55-5) and in particular central eastern portion of this 1:250,000 sheet • The subject of Commonwealth and State Government mapping through the 1960’s to the 1970’s – Particular emphasis on prospect location and prospect history

  4. Herberton Tin Field History • 1880 – Tin discovery at site where Herberton now stands • 1880s – 1920s – Continuing exploration establishes high grade lode tin mines • Support for capital expenditure for mills & towns which allowed for settled workforce • Alluvial tin recovered in current creeks and as Deep Lead • 1940s – 1980s – Large scale alluvial development – dredging of the four large creek systems in the southern section of the tin field • Dredging 1943 – 1984 saw 127.8 million cubic metres producing 22,330 tonne of tin metal

  5. Herberton Tin Field Historic Tin Mines in Herberton Tin Field:

  6. Herberton Tin Field History • 1970s-1980s – Startup of company scale mines: Loloma/Great Northern/Gold Copper – each with hardrock mills • Produced over 5,000 tonne of contained tin metal • Startup of large scale company exploration by large public companies – Tin was viewed as a large company target Renison Goldfields/Newmont/Western Mining/BHP/Shell/Getty/Comalco/Amax Drilling/ Geophysics/Large tonnage targets – 10,000,000 tonne targets – 0.2% - 0.5% • Approx 90,000 tonne of contained tin metal produced up to mid 1980’s • 1985 – Tin price collapse, tin cartel attempt fails • Huge stockpile starts to come back onto the market, depressing prices • None of the large company exploration targets came into production, leaving the tin field awaiting price/technology improvements Graph representing tin production from the Herberton tin field 1879 – 1970 * From Blake 1972

  7. Current Market Uses • Long term consumption trend – met by production • Early 1940s – Decline (WWII) • Mid 1980s – Drilling – stockpile manager crash but also application change • Late 1970s – ½ tin went to tinplate, and plastics/aluminum replaced tinplate tin • 1990s – Solder as principal application • Nominal/real price – inflation adjusted • Significant price increase through 1970s • Large companies went looking for tin • Replacement for tinplate • Crash in tin price in late 1985 * Graphs from ITRI

  8. Current Market Uses

  9. Current Tin Producers • Tin consumption returning strong in 2010 • China is now a net importer of tin • Indonesia production is expected to fall in coming years • Smelters are under capacity

  10. 2012 - Tin is a HOT metal Alan Trench – MiningNewsNet - ‘Climate Change’…Hot Spots CRU Metals Consulting Group – What’s hot to 2012? Tin, Uranium, Iron Ore,Met Coal/Coke, Tungsten, Copper, Palladium, Nickel Steel (Global Rebar Index), Urea Aluminium, Ammonia, Gold, Alumina, Platinum Lead, Molybdenum, Bauxite Vanadium, Phosphate, Silver, Sulphuric Acid, Cobalt, Zinc, Sulphur - “Hot” Prices rise in value exceeding 15%-20% - “Warm” Rise up to 15%-20% - “Cool” Decline up to 15%-20% - “Cold” Decline by more than 15%-20%

  11. Geology of Herberton • Major province division of Proterozoic Dargalong Province to west of Palmerville fault and mid Paleozoic Hodgkinson province to the east of the Fault • Tin mineralisation associated with Permo-Carboniferous acid granitoid intrusives • The granitoids have been subdivided into a number of geochemical coherent supersuites, and the tin mineralisation is associated with one of the supersuites • As well as the tin mineralisation, there is significant gold, copper, zinc and tungsten mineralisation associated with Permo Carboniferous intrusives

  12. Geology of key projects * From Taylor 1979 • Remnant Hodgkinson Province sediments including shallow water limestones, surrounded by acid intrusives and associated acid extrusives • In places, the sediments are small surface area roof pendants surrounded and underplated by granite • The carbonates in the roof pendants have been changed to marble and been subject to skarn alteration and tin mineralisation- the Company hardrock projects of Gillian, Pinnacles and Windermere

  13. Key Targets Total Mt Garnet Project JORC Tin Resource 5.3Mt @ 0.6% tin total JORC Resource 401,500t @ 0.49% Tin total JORC Resource 3Mt @ 0.80% Tin total JORC Resource 1.87Mt @ 0.41% (Ave) Tin

  14. Company focus • To develop a significant hardrock tin project, producing an annual 5000 tonne of tin metal in concentrate • Current JORC Resource total of 5.3 Mt@ 0.6%Sn, with iron oxide credit - Gillian – 3Mt @ 0.80% Tin - Pinnacles – 1.87Mt @ 0.41% (Ave) Tin - Windermere/Deadmans Gully – 401,500t @ 0.49% Tin • The project aim is to establish an initial minimum JORC resource of 8 Mt at 0.5%Sn as open pit mining • Initial mine life 8-10 years with major expansion potential from project portfolio • Continue the focus of skarn and greisen type tin occurrences - the large tonnage occurrences

  15. Gillian Project Deposit • Gillian 3D model showing mineralisation near surface • This is the end view facing grid north • Mineralisation at least1km long • Multi skarn tabular sheets in sediment zone • Open at dept, particularly in south grid • Open along strike too

  16. Gillian Drill Results 25 Tin intersections that exceed 10 metres in length with grades of better than 0.5% Sn For ALL Mt Garnet project drill results visit our website: www.csdtin.com.au

  17. Mt Garnet Geophysics MT Garnet Airborne Geophysical survey conducted July 2008 Image of FLIGHT PLAN for airborne geophysical study completed July 2008

  18. Mt Garnet Geophysics Image taken over Gillian Project - current JORC Resource 3Mt @ 0.80% Tin • Gillian is north east trending roof pendant of Hodgkinson Formation sediment, including skarn • Skarn outcrop over a strike length of 900 metres • Gillian occurrences within regional magnetic trend, with the 1VD processing highlighting outcrop and suggesting strike extensions

  19. Mt Garnet Geophysics RTP Image taken over Pinnacles Project - current JORC Resource 1.87Mt @ 0.41% Tin • The Pinnacles project is a Hodgkinson Formation roof pendant of 3km by 0.5km, with skarn and marble rock • One prospect along a 700 metre strike length of the eastern contact has been explored in detail and where most of the JORC resource has been estimated • Twenty three individual prospects named and the Company has completed limited exploration • Complex RTP positive and negative magnetic pattern, which is repeated close by; these repeats have not yet been followed up

  20. Pinnacles Drill Results Summary of the highlights from Pinnacles Project drilling program For ALL Mt Garnet project drill results visit our website: www.csdtin.com.au

  21. Mt Garnet Geophysics RTP Image taken over Windermere Project - current JORC Resource 401,500t @ 0.49% Tin • The Windermere project is a 3 km long Hodgkinson Formation lens with marble and skarn • It is not an obvious roof pendant • The Company resource drilling has been only directed to the most southern magnetic anomaly which is Deadmans Gully • The company awaits the grant of the MDL tenure to continue the exploration of this project

  22. Deadmans Gully/Windermere Drill Results Tin intersections that exceed 10 metres in length with grades For ALL Mt Garnet project drill results visit our website: www.csdtin.com.au

  23. Metallurgy Total kgs/hr of contained metal = 374.4kgs Total Recovery to saleable tin products = 68.02% Tin Fume product at 70% Sn grade = 935 tonnes of tin content/annum 1335 tonnes/annum = Gravity tin concentrate at 40% Sn grade = 1825 tonnes/annum = 730 tonnes of tin content/annum Flotation tin concentrate at 12.5% Sn grade = 11080 tonnes/annum = 1385 tonnes of tin content/annum 3049 tonnes of tin content/annum Content of all products = Total tonnage of roasted magnetite mineral products of >65% Fe content 236600 tonnes/annum Summary of circuit Crush/Grind – passing 75 micron Magnetic (LIMS)/ Gravity(Kelsey/Tables) Magnetic(WHIMS)/Tin Flotation Roast Magnetics/Tin Fume

  24. Metallurgy Highlights • Comprehensive metallurgical testwork supports recovery of saleable tin concentrates and iron oxide concentrates • Projected tin recovery, based on results to date, is 68%, with tin recovered into a gravity concentrate, a flotation concentrates and tin fume concentrate • High grade magnetite concentrates, of >65%Fe, are also recovered • Based on this flowsheet with initial throughput 700,000 tonnes per annum, with head grade of 0.6% Sn, projected production would be 3,049 tonne of contained tin metal in concentrate and 236,600 tonne of magnetite • Detailed bulk tonnage metallurgical testwork is planned to confirm recoveries

  25. Preliminary Scoping Study (Refer to ASX Release 6 July 2010) • Project to potentially deliver gross value of $500 million over initial 7.5yr mine life at A$18,000t tin price • Strong surplus of $245 million over initial 7.5yr mine life at A$18,000t tin price • Returns based on mine throughput of 700,000tpa of tin ore producing 22,868 tin metal in concentrate plus 1,774,500 magnetite concentrate grading >65% iron over initial 7.5yr mine life • Project has significant expansion potential to deliver additional financial returns over an extended mine life beyond the initial 7.5yrs • Consolidated Tin to continue with development plans to position it as a substantial tin mining company Table: Indicative project pre tax net cash flows across a range of tin ore prices Note: The Preliminary Scoping Study findings are not future revenue or operating forecasts. The Scoping Study is intended to give shareholders & investors an indication of the scope & magnitude of the Mt Garnet Tin Project.

  26. Preliminary Scoping Study (Refer to ASX Release 6 July 2010) The project cash flows in the table on the previous slide are based on the following key parameters: • Throughput of 700,000 tonnes per annum • Average feed grade 0.64% tin at a recovery of 68% producing 3,049 tonnes per annum of tin metal in concentrate • Production of 236,600 tonnes per annum of magnetite concentrate grading greater than 65% iron at a sales value of $50 per tonne • Operating cost estimates used $49 per tonne of ore processed being within the SEMF estimated operating cost range of $40 - $50 per tonne • Resources used are based on all current JORC classifications measured indicated and inferred resources at the project • Project life on throughput of 700,000tpa is estimated to be 7.5 years based on current Mt Garnet Project resources • A portion of the Company’s magnetite concentrate will go to coal washing sales, and a conservative average price of AUD$50/tonne has been estimated • Future modelling will optimise annual throughput/Capex

  27. Central Mill Concept

  28. Infrastructure Mt Garnet Project Infrastructure: • Power - 66KVA transmission line is located within 1km of the proposed mill site. Application lodged with local power supplier Ergon Energy to provide increased capacity to meet proposed use • Water - Provision to construct a large capacity storage dam. The project is located within a reliable rainfall area • Port - Nearest port is Mourilyan Harbour, 140km by good all weather sealed highway • Road - Project located adjacent National Highway 1 • Staff & Accommodation - Proposed project located 6km from Mt Garnet and 40km from Ravenshoe. The general locality is within a historic mining field with local mining expertise and staff available

  29. The information contained in this report that relates to assay results of rock samples and drill chips, to mineral resource estimates and to ore reserve estimates of mineralisation has been compiled by John Sainsbury (BSc, AusIMM). John Sainsbury is a geologist of 30 years experience and has sufficient experience in the type of mineralisation under consideration to qualify as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves - JORC Code, 2004 Edition. John Sainsbury is an executive director of Consolidated Tin Mines Limited. John Sainsbury has consented to the inclusion of this information in the form and context in which it appears.

  30. Contact Details Ralph De Lacey Managing Director Consolidated Tin Mines Limited 395 Lake Street CAIRNS NORTH, QLD, 4870 Ph: (07) 4032 3319 Fax: (07) 4027 9429 Email: admin@csdtin.com.au

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