Matrix Metals | Copper Production and Exploration

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• Mt Cuthbert Copper Project Rainfall Event

  Dec 19th 2000

  The North West Region of Queensland has experienced a rainfall event over the past few days with in excess 250mm of rain being recorded. The band of storms has extended from the Southern Gulf of Carpentaria to Central West Queensland with the Mt Cuthbert project area being affected. Due to effects on mining, crushing, stacking and general operations, copper cathode production will be affected. Further, although fuel and acid stocks were at near maximum capacity prior to the rain, it is possible shortages of fuel, acid and other consumables may occur. The ultimate effect on copper cathode production for the remainder of December and into January is not quantifiable at this stage. Operating staff have implemented actions to ensure the effects on production are minimised. Yours sincerely, Andrew Chapman Chief Executive Officer

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• Chairman's Address at Matrix Metals AGM 2000

  Nov 15th 2000

  Prior to the formal part of the meeting, I would like to take the opportunity to present this Chairman's Address, which was announced to the Australian Stock Exchange earlier this morning. The last public statement of affairs of your Company was the Quarterly Report for the period ending 30th September 2000. This event of the Annual General Meeting provides a timely opportunity to further update shareholders on recent events. Accordingly, I will overview the Company's operation, the copper market and our foreseeable future as of today. I am pleased to report continuing progress on the production build-up at the Mt Cuthbert operation. I visited the operation last week and was impressed with the achievements made under the direction of the Operations Manager, Bob Dennis during the short period since the listing. Our Quarterly Report showed that, after a delayed start due to the late listing, the production build-up proceeded well during this initial period with copper cathode output being on target for the month of September and costs being on budget for the quarter. Since that date production from the open pit has exceeded budget, as has crushing and stacking of ore on to the leach pad. This has resulted in an inventory build-up of approximately 1,500 tonnes of recoverable copper being stacked by the end of October, which is in excess of the budget. Leaching performance of the new leach pad for September was effectively on budget with copper cathode production achieving a peak rate of 12 tonnes per day. Unfortunately during the early part of October the daily output slowed and copper cathode output stabilised at a rate of between 10 and 11 tonnes per day. We considered this unsatisfactory and a technical review was commissioned which identified the probable cause as an insufficient acid dosing rate. The acid rate was therefore increased with early results indicating a solution to the problem. Due to a shortage of acid resultant from strike action by the Queensland Rail employees in early November the higher dosage rate could not be maintained. I am pleased to report the strike action is over and we have been successful in sourcing a second supplier of acid to accelerate the re-stocking of our supplies. Copper cathode output has been affected but we are confident the production build-up has been re-established and will continue towards the maximum production rate. Turning to finances, the falling Australian Dollar has been in our favour as it allowed an average conversion rate of 55 cents for the September quarter sales with October sales converted at 53.5 cents. This compares very favourably to the exchange rate of 61 cents used for the Prospectus Forecast. We are currently assessing the opportunity to further hedge revenues at these favourable rates. Copper prices during the period have been approximately US 85 cents, which is in line with the Prospectus Forecast and market analysts are continuing to project this price increasing in the year ahead. Unfortunately the other side of the coin has shown a significant increase in world oil prices which impacts on the costs of operation. Your Board met on the 13 November and critically appraised the performance of its operations and considered the medium term future of the Company in line with the favourable exchange rate and high demand for copper. Copper is in high demand worldwide and for the first time in many years warehouse inventories are falling. Against this scenario there are compelling reasons to accelerate output, not only from Mt Cuthbert, but also to complete the feasibility study at White Range and bring a new mine into production. As our working capital is tight, exacerbated to some degree by the lowered copper cathode sales. We are reviewing our development and working capital requirements to accommodate not only our present needs but our accelerated intentions. It is hoped to complete this review in the short-term and naturally we will keep our shareholders informed of progress and take appropriate action. In conclusion, I consider we have achieved much since the listing of the Company. Hard work and thought has been put into building up the mine and we have been very gratified with the attitude and dedication of our workforce. Naturally, as with any new company, we have had successes and problems and we remain confident of the future. We have the assets, we have the team, we have a first class Board of Directors and I trust we have your support. I commend our Managing Director Andrew Chapman and his team to you, without their dedication and drive Matrix would not be in the situation it is in today. Gordon Freeman Chairman

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• Acquisition of Strategic Tenement - MLA 90135 Mt Cuthbert Operation

  Oct 16th 2000

  Matrix Metals Limited (Matrix) is pleased to announce the acquisition of 100% of Mining Lease Application (MLA) 90135 known as "Mt Watson". The MLA was purchased for a total cost of $12,500. The MLA is located within hauling distance of the Mt Cuthbert SX-EW processing facility and fills a strategic gap that existed in a larger exploration permit owned by Matrix. Geological interpretations of the MLA have revealed a potentially large high grade copper oxide deposit which is expected to be well suited to heap leach processing. Surface geological work by third parties has identified the copper oxide body outcropping at intervals through soil cover over a strike length in excess of 1 km. Exposed width of mineralisation range upwards to 20 metres. The MLA is located within the Kalkadoon / Leichardt belt of the Mt Isa Inlier. The mineralised zone occurs along a strongly developed east west trending shallow zone which is intersected by a number of oblique (north east trending) mineralised faults. Preliminary mapping has predicted the possibility of parallel mineralised structures. Matrix will proceed immediately with a geological evaluation of the MLA with an initial drilling program scheduled within the next 3 months. Yours faithfully Andrew Chapman Chief Executive Officer

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