June 2013 Quaterly Report

July 31, 2013

Dubbo Zirconia Project (DZP)

  • The EIS was lodged with the NSW Department of Planning and Infrastructure on 28 June.
  • AZL signed a Joint Venture Framework Agreement with Treibacher Industrie AG for the production of ferro-niobium.
  • Recent market discussions in Japan, China and Europe have confirmed strong interest in DZP’s products.
  • Advanced zirconia samples for customer evaluation being produced.
  • The DZP financing program has commenced with detailed project review by the advising banks.

Tomingley Gold Project (TGP)

  • Construction of the CIL plant and associated infrastructure is well advanced with commissioning scheduled for early 2014.
  • Tenders have been prepared for mining pre-strip and mining contracts.
  • Scheduling optimisation in progress to reflect lower gold prices.
  • Final core drilling results from Caloma Two continue to confirm significant gold mineralisation:
    • PE 806D 7.8 metres grading 7.01g/t gold from 81 metres
    • PE 839D 9 metres grading 5.23g/t gold from 57 metres
    • PE 846D 2.5 metres grading 18.4g/t gold from 57.5 metres
    • and 23 metres grading 4.05g/t gold from 182 metres
    • incl 5 metres grading 5.50g/t gold from 184 metres
  • Caloma Two resource estimate anticipated by October.