Tom ReddicliffeTom ReddicliffeExecutive DirectorExecutive Director
20:20 Diamond Day20:20 Diamond DayTuesday 29Tuesday 29thth January 2008January 2008
•• Incorporated:Incorporated: 19911991•• Shares Listed: Shares Listed: ASX ASX •• Code: Code: NAD NAD
•• Issued Capital: Issued Capital: 1,070 million1,070 million
•• Unlisted Options: Unlisted Options: 17.45 million17.45 million
•• Market CapitalisationMarket Capitalisation: : A$20 millionA$20 million
CORPORATE INFORMATIONCORPORATE INFORMATION
SHAREHOLDINGSSHAREHOLDINGS (as at 1st January 2008)
•• Top 5 = 28.20% Top 5 = 28.20% (1 to 5)
•• Top 40 = 44.26% Top 40 = 44.26% (1 to 40)
•• Top 100 = 52.51% Top 100 = 52.51% (1 to 100)
•• Total holders = 7,400Total holders = 7,400
ShareholdingDistribution
Top 5
Top 100Top 40
Remainder
North Australian CratonCOMPANY FOCUSCOMPANY FOCUS
Diamond/kimberlite occurrence
500 km
North AustralianCraton
Significant diamondoccurrence
Operating diamond mine
NADL tenement
Brisbane
Perth
Darwin
CairnsBroome
♦ Wide spread occurrence of diamonds and kimberlites
♦ Discoveries in Canada precipitated a rapid decline in exploration activity in the early 1990’s
North Kimberley1991-20041.57 Mcts
Yambarra2007-ongoing
Arnhem Land2005-ongoing
Merlin2004-ongoing
3.5 Mcts
ArgyleMerlin
Ellendale
500 km
IS CANADA MORE PROSPECTIVE?IS CANADA MORE PROSPECTIVE?
Australia7,700,000 km²
Canada9,900,000 km²
North Australian Craton1,990,000 km² Slave Craton
300,000 km²
MerlinD flawless
White gems
ArgylePinks
19 Mcts
EllendaleFancy yellows
350,000 cts
Diamond mineSignificant diamondoccurrence
Superior Craton1.4 Mkm²
14.5 M ctsJericho : 375,000 cts
Ekati : 3 MctsDiavik : 9.8 Mcts
Snap Lake : 1.4 Mcts
Gem Diamonds Rio Tinto NADL
Acquired by NADL in late 2004
VictorFort a la Corne
AUSTRALIA
♦ Low political risk
♦ Good infrastructure
♦ Low operating costs
♦ Under explored / not unprospective
♦ Deep weathering poses significant challenges for the use of geophysical techniques
Perceval
Kaye
Excalibur
Bedevere
Gareth
YwainGawain
Tristram
PalomidesSacramore
Launfal
Ector
Admin Office& Camp
ProcessingPlant
Mining Lease
Pipe LocationsMERLIN DIAMOND PROJECTMERLIN DIAMOND PROJECT
2 km
PalSac
♦ 12 diamond bearing pipes
♦ Open pit trial mining commenced 1998
♦ Grades between 6cpht to 81cpht
♦ 19.45 Mt for 3.5 Mcts
PAST PRODUCTION HISTORYPAST PRODUCTION HISTORY
♦♦ 2.4 Million tonnes 2.4 Million tonnes
♦♦ 507,000 carats recovered 507,000 carats recovered ♦♦ Av. Value US$108/ctAv. Value US$108/ct
♦♦ 5 year operation5 year operation♦♦ Closed 2003Closed 2003
♦ Pits optimised & mined♦ No JORC mining reserve ♦ Limited resource drilling
10.54ct stone valued atUS$48,961 (US$4,645/ct)
GradeGrade
Diamond ValueDiamond Value
Size of ResourceSize of Resource
Diamond Size Range Diamond Size Range
and Quality Knownand Quality Known
PAST PRODUCTION HISTORYPAST PRODUCTION HISTORYAfter 5 years of trial mining;
NADL evaluation commenced 2005
No primary crushingEVALUATION EVALUATION –– Diamond LiberationDiamond Liberation
Average 15cpht
HPGR == High Pressure Grinding Roll
Sizer rejects: mined but not processedGawain Pipe
Gra
de (
Ct/b
cm)
Diamond Size Category (carats)
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
+10 +5 +2 +0.66 +0.2 +0.07 -0.07
NADL HPGR Test
Previous operations
Application of HPGR technology leads to 41% average increase in grade
Gawain Pit80
60
40
20
0 0.17 0.21 0.25 0.29
26.02cpht
0.33 0.410.37
NADL Bulk Sample
Grade (carats/tonnes)
Dep
th (m
)
Surface Enrichment
39.71cpht
Previous mining Grade Increase
EVALUATION EVALUATION –– Diamond RecoveryDiamond Recovery
X-ray rejects: submerged in pit
19% Merlin diamonds low/non fluorescing
Optical sorter : 13,000cts recovered ‘Yellow’ gem diamonds in x-ray rejects
Average priceachieved for
yellowsUS$1,454/ct
Large diamondsrecovered:
17.19cts14.21cts10.91ctc10.27cts
Application of optical sorting & magnetic separation technology
0
20
40
60
80
100
120
140
160
Jun-99 Nov-99 Jun-00 Feb-01 Apr-Dec 02
Date of Sale
PPC
Ach
ieve
d (U
S$)
EVALUATION EVALUATION –– Diamond ValueDiamond Value
Av. US$128/ct
History of Sales
180
2003 2007
NADL Sales : US$150-180/ct(2006 / 2007 Sales)
Average US$108/ct
‘Specials’ removed prior to sale
US$146/ct
20% increase since 2003(within market increase)
Evaluation results achieved to date demonstrated:Evaluation results achieved to date demonstrated:♦♦ Improved gradesImproved grades♦♦ Improved recoveriesImproved recoveries♦♦ Improved diamond valuesImproved diamond values
POTENTIAL MINING PROJECTPOTENTIAL MINING PROJECT
0mSacramore
PalSac Pipe
Potentialopen pit dual
cut back
160mRequirement:Requirement:♦♦ Resources to underpin Resources to underpin
1.4 M tonne operation 1.4 M tonne operation producing 400,000 carats producing 400,000 carats annuallyannually
Palomides
Potential Revenue (gross) US$60-70 M per annum
Operating costs ~ US$100/ct
A large scale, long term mining project is potentially viable
Underground to 600m
Gawain Pipe
PalSac Pipe
0mEVALUATIONEVALUATION
0m
Resource Definition
Current Indicated and Inferred Resource6.7 M tonnes for 1,346,000 carats
Inferred
Current Indicated Resource1 M tonne for 420,000 carats
RESOURCE
360m
Open pit
Deepest drill depthwith kimberlite
contact
Open pits
250m
60m
590m
Indicated
440m
Deepest drill depthwith kimberlite
contact
600m
28cpht(further testing required)
80m
38cphtTargeting :12 Mt for 3.5 Mcts
2,400m drilled in late 2007, drilling to recommence in February
MLN1154
Gawain
PalSac
Targeting :2.5 Mt for 1 Mcts
Evaluation Work
Trial Production
Resource Drilling
Feasibility Study
Decision to Mine
2004
2006
2007
2009?
WAY FORWARDWAY FORWARD
HA
RR
Y W
INST
ON
Dia
vik
(40%
)
MERLIN FUTURE POTENTIALMERLIN FUTURE POTENTIAL
Diamond Producers / Operation
Tot
al P
rodu
ctio
n in
Car
ats /
Yea
r
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,00051,000,000
38,3
60,8
10
26,3
00,0
00
7,24
0,00
0
3,92
0,00
0
3,50
0,00
0
3,00
0,00
0
620,
000
175,
000
116,
200
30,0
00
23,9
60
10,2
78
DE
BEE
RSva
rious
ALR
OSA
vario
us
RIO
TIN
TOA
rgyl
e &
Dia
vik
(60%
)M
IBA
Mbu
jiM
ayi
BH
P va
rious
OD
EBR
ECH
Luza
mba
375,
000
TAH
ERA
Jeric
ho
350,
518
GG
DM
A
312,
341
SIER
RA
LEO
NE
artis
inal
min
ing
KO
PAN
E D
IAM
ON
DS
Liqh
obon
gPE
TRA
DIA
MO
ND
SH
elam
, Sed
ibeg
, Sta
r
TRA
NS
HEX
NA
MA
KW
A D
IAM
ON
DS
VA
ALD
IAM
RES
OU
RC
ES
IND
IAPa
nna
Merlin has the potential to be a significant producer of top
quality high value gem diamonds
GEM
DIA
MO
ND
SEl
lend
ale,
Let
šeng
& C
empa
ka44
1,00
0
250,
000
END
IAM
AC
atoc
a+
vario
us
MerlinUS$150-180/ct
ROUGHROUGHDIAMONDDIAMONDVALUEVALUE
US$/carat
Min
e
0 100 200 300
Gem quality,large diamondsdrives Merlin
diamond value
400 500 600 700 800
44ct : Palomides
Similar to Canadian Similar to Canadian product but product but
enhanced by good enhanced by good quality large stonesquality large stones
♦♦ High value white diamondsHigh value white diamonds•• Producer of high value D flawless gemsProducer of high value D flawless gems
•• Producer of large diamonds Producer of large diamonds -- llargestargeststone recovered 104.73ctsstone recovered 104.73cts
♦♦ Merlin evaluation remains on trackMerlin evaluation remains on track•• Targeting 14.5 Mt for 4.5 Targeting 14.5 Mt for 4.5 MctsMcts
•• Resource drilling to recommence Resource drilling to recommence February, completed 2008February, completed 2008
•• Feasibility studies 2008/2009Feasibility studies 2008/2009
♦♦ Prospective orbit tenementsProspective orbit tenements•• Evidence of additional pipesEvidence of additional pipes
MERLIN PROJECTMERLIN PROJECTMerlin evaluation remains on track
10.60ct stone sold forUS$153,170 (US$14,450/ct)
20 km
MERLIN EXPLORATIONMERLIN EXPLORATIONNADL tenement
Major drainage
Glyde R
iver
McA
rthur
Rive
r
75 diamonds5.3 carats
15 diamonds4.78 carats
Bulk sample
Merlin mining lease
Tintagel: unsourced alluvial diamonds alludes to primary source
Borroloola: diamond bearing alluvials
Lancelot: significant diamond and indicator mineral anomaly
7 diamonds0.225 carats
75 diamonds5.3 carats
7 diamonds0.225carats
Focus on the North Australian CratonEXPLORATION AREASEXPLORATION AREAS
NADL Tenement Interest = 36,600 km²
NADL tenement
200 km
Aboriginal Land: limited previous
exploration
North Kimberley ProjectNorth Kimberley Project4.8Mt contained 1.57Mcts
Yambarra Project
Reconnaissance sampling
Arnhem Land ProjectReconnaissance sampling
Aboriginal Land
Merlin
♦♦ 5 million carats resource 5 million carats resource Merlin/KimberleyMerlin/Kimberley
♦♦ Potential revenues from the Potential revenues from the 100% owned Merlin 100% owned Merlin Diamond MineDiamond Mine
♦♦ Experienced technical team Experienced technical team with long term presence on with long term presence on the North Australian the North Australian CratonCraton
♦♦ Large prospective land Large prospective land package in excess of 36,000 package in excess of 36,000 kmkm²²
♦♦ Holds 25% of ASX listed Holds 25% of ASX listed Top End Uranium LtdTop End Uranium Ltd
POSITIONED FOR GROWTHPOSITIONED FOR GROWTH
Australia’s Largest Diamond104.73cts
Recovered from Merlin Valued at US$525,000 (2002)
Jungiila Bunajina
NADL vs. PEERSNADL vs. PEERS
Diamond Company / Operation
Mar
ket C
apita
l US$
Market Cap v Resource Value
Resource V
alue US$
Producer
ExplorerResource value
Evaluation
Petra
Dia
mon
ds4
min
es
Afr
ican
Dia
mon
ds
Pang
eaD
iam
ondf
ield
s
Wes
t Afr
ican
Dia
mon
ds
Kop
ane
Dia
mon
ds D
evel
opm
ents
Liqh
obon
g
Dia
mon
ExLe
rala
Lonr
hoM
inin
gSc
hmid
tsdr
ift
Nor
th A
ustra
lian
Dia
mon
dsM
erlin
Taw
ana
Res
ourc
es
Res
ourc
e an
d In
vest
men
t NL
Para
mou
nt M
inin
g C
orpo
ratio
n$-
$100 M
$200 M
$300 M
$400 M
$500 M
$600 M
$-
$400 M
$800 M
$1,200 M
$1,600 M
$2,000 M
Merlin : targeting 4.5 Mcts
Africa
3.5 Mcts
NADL vs. PEERSNADL vs. PEERSMarket Cap v Resource Value
Producer
ExplorerResource value
Evaluation
$-
$50 M
$100 M
$150 M
$200 M
$250 M
$300 MM
ount
ain
Prov
ince
Dia
mon
dsG
ahch
oK
ue
Stor
now
ayD
iam
ond
Cor
pora
tion
Ren
ard
Dia
mon
ds N
orth
Res
ourc
es
Dia
mon
dex
Res
ourc
es
Pele
Mou
ntai
n R
esou
rces
Shea
r Min
eral
s
Tahe
raD
iam
ond
Cor
pora
tion
Jeric
ho
Met
alle
xV
entu
res
Arc
tic S
tar D
iam
ond
Nor
th A
ustra
lian
Dia
mon
dsM
erlin
Maj
esco
rRes
ourc
es
$-
$200 M
$400 M
$600 M
$800 M
$1,000 M
$1,200 M
$1,400 M
$1,600 M
$1,800 M
Diamond Company / Operation
Mar
ket C
apita
l US$
Resource V
alue US$
Merlin : targeting 4.5 Mcts
3.5 Mcts
Canada
This presentation contains “forward looking statements”. Such “forward looking statements” may include without limitation (1) estimates of future earnings, the sensitivity of such earnings to diamond values and foreign exchange rate movements (2) estimates of future diamond production (3) estimates of future cash costs (4) estimates of future cash flow, the sensitivity of such flows to diamond values and foreign exchange rate movements (5) statements regarding, future debt payments (6) estimates of future capital expenditure (7) estimates of reserves, resources and statements regarding future exploration results.
Where the Company expresses or implies an expectation or belief as to future events or results such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, “forward looking statements” are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such “forward looking statements”. Such risks include but are not limited to diamond values, currency fluctuations, increased production costs and variances in grades or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which the Company operates or sells product and governmental regulation and judicial outcomes.
The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, expect as may be required under applicable securities laws.
THANK YOUTHANK YOU
Forward Looking Statement
Questions ?