Letter from the Chairman
Dear Investor
Matilda Minerals Limited ("Matilda") was incorporated by a group of experienced resource professionals to identify and exploit zircon and rutile rich mineral sands deposits.
Matilda plans to create wealth for its shareholders by exploiting these high-value zircon and rutile deposits. Initially these deposits may not be large by world standards but because of the zircon and rutile-dominated mineral assemblage, low development and operating costs, they can be financially very attractive.
Zircon will be the principal commodity of interest because of its excellent long-term growth prospects, strong price projections, limited supply and ease of marketing. Traditionally mineral sands companies have concentrated on large scale relatively low unit value ilmenite rich deposits (ilmenite currently sells for approximately A$100 per tonne) with by-product of zircon and rutile. By comparison, both zircon and rutile command significantly higher prices (both presently being marketed at approximately A$650 per tonne).
Included in this Prospectus is an Independent Marketing Report by world recognised experts TZ Minerals International ("TZMI"). TZMI predict that the upward pressure evident for zircon prices throughout 2003 is expected to continue throughout this year and into 2005, driven predominantly by tight supply side fundamentals, particularly for premium grade zircon.
Matilda has set a rigorous selection criteria for its projects to enhance the prospect of financial success. Project selection criteria include:
- rich in zircon and rutile
- low environmental impact
- high-grade, coarse-grained products
- simple mining with low waste to ore ratio
- good access and services
- strong community support
Matilda's project areas comprise Bathurst and Melville Islands ( Tiwi Islands ) located 50km from Darwin and Ann Bay on the northwest coast of Tasmania . Both of these project areas have known occurrences of zircon and rutile and meet Matilda's selection criteria.
The Tiwi Islands have been highlighted as a zircon-rich province with identified resources and excellent prospects for a strong resource inventory along their 250km northern and western coastline. Importantly, Matilda has executed a formal exploration Agreement with the Tiwi Land Council, representing traditional aboriginal landowners, to take these deposits through to development.
The Ann Bay project in Tasmania has zircon-rich resources which were identified some twenty years ago but were not developed due to low commodity prices prevailing at that time. Current and projected zircon prices make Ann Bay a quality prospect. Matilda will continue to review other prospects in Australia and is confident of adding substantially to its projects portfolio.
Both the Tiwi Islands and Ann Bay are advanced prospects with identified resources and it is planned to move rapidly to production in 2005 by enhancing the projects with further exploration to support the completion of feasibility studies.
Matilda has assembled a well-balanced board with wide experience in the resource sector and a proven track record in exploration success, production and corporate matters. The Board believes that Matilda's dynamic approach of targeting high-value mineral sands deposits and utilising modern exploration and development techniques will substantially enhance shareholder value in the short term and transform Matilda into a profitable exploration and mining company.
The Board joins me in extending this offer to you and we look forward to welcoming you as a shareholder of Matilda.
Yours faithfullyJohn Hopkins
Chairman
