The 76th Sydney Mining Club Meeting

With HSBC, AMC Consultants, Ausenco, Grange Securities, Outokumpu, and The Swann Group

June 3rd at 12.30pm

Presents:

Zinc and Oil Value Makers

Herald Resources CFO Terry Allen & InterOil CEO Phil Mulacek

The Lure of the North. Fundamentals Outweigh Risk

Download Presentation 'Promising Future in Base Metals' [3.5Mb]

Download Presentation 'Company Presentation' [2.85Mb]

It has been a long winter since the markets took an overtly bullish position on either PNG or Indonesia. This month we present two stories, Herald Resource's Dairi Zinc Project and Interoil's Port Moresby oil refinery project, that lay bare strong economic fundamentals about this 'politically unstable' region.

Exploration veteran Herald Resources has 6.3Mt at Dairi in Southern Sumatra running at 22% zinc equivalent, and another 9Mt of resources and is heading for a Bankable Feasibility Study in August. Is the region becoming more 'bankable'? Perhaps more so 'bankable' with banks than with the markets. But InterOil has found investor sentiment warming with a long-awaited revaluation of its stock germinating as its Port Moresby oil refinery prepares to 'go wet' next month. The refinery plant was shipped from Alaska to create a domestic downstream industry from the nation's plentiful Kutubu oil and Interoil's own discoveries.

It has hit oil in secondary targets in the first two of 16 wells it is drilling with lightweight rigs. Special market conditions have been offered to InterOil by PNG as an incentive to the project. It's a little harder to discriminate the causes of Herald's share price strength… Recently new life has been breathed into Herald's Coolgardie Gold Project with a reported intersection of 18.63m@46.71 g/t gold, and it has a strategic holding and JV with Troy Resources at Sandstone. These stories will be bellwethers for the region and their presentations should give credence to the possibility of more Oxiana-style success in these less-favoured Asia Pacific nations. Don't miss it!