Presentation - International Base Metals Ltd

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INTERNATIONAL BASE METALS LIMITED
EXPLORATION FOCUS
ON NAMIBIA
December 2012
PRESENTED BY
FRANK BETHUNE AND KEN MAIDEN
Disclaimer
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This document contains certain "forward–looking statements", including, but not limited to, statements concerning current and
future drilling programmes, estimation of mineral resources, the continuing development plan, the type of mineralisation present
and expected results. Information inferred from the interpretation of drilling results may be deemed to be a forward looking
statement, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Statements and estimates concerning mineral resources may also be deemed to be forward looking statements in that they
involve estimates, based on certain assumptions, regarding the mineralisation that would be encountered if and when a mineral
deposit is actually developed and mined. Forward looking statements are not historical facts, and are subject to a number of risks
and uncertainties beyond management‟s control. There can be no assurance that such statements will prove to be accurate.
Actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that
could cause results or future events to differ materially from current expectations expressed or implied by the forward–looking
statements include, among other things, but without limitation, those set forth in the 2012 Annual Report and the website
(www.interbasemetals.com) of International Base Metals Limited (IBML).
The technical information contained in this document was compiled by Dr Ken Maiden (MAIG, FAusIMM), a Director of
International Base Metals Limited. Dr Maiden is a Member of the Australian Institute of Geoscientists and a Fellow of the
Australasian Institute of Mining and Metallurgy. He has sufficient experience to qualify as a Competent Person as defined in the
September 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Dr Maiden consents to the inclusion of the matters in the form and context in which they appear.
Corporate Structure
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Capital Structure & Shareholder Register
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Shares on Issue - 15 November 2012
Options
–
–
–
394,158,540
20 cents exp 20/12/2012
30 cents exp 03/10/2013
25 cents exp 30/11/2013
MAJOR SHAREHOLDERS
22,000,000
2,500,000
7,500,000
NUMBER OF SHARES
%
West Minerals Pty Ltd
118,326,491
30.0
Heilongjiang Heilong Resources Investment Co Ltd
25,022,723
6.4
Kings Resources Group Co Ltd
22,500,000
5.7
China Kings Industry Pty Ltd
20,000,000
5.1
Manica Minerals Ltd
15,000,000
3.8
Blackmans & Associates Pty Ltd
14,470,558
3.7
Pearl Global Investment Ltd
13,333,333
3.4
Maiden Family Super Fund
10,521,751
2.7
Great Sea Wave Investment Pty Ltd
9,167,333
2.3
Macquarie Bank Ltd
8,333,333
2.1
Perpetual Corporate Trust Ltd
8,333,333
2.1
Supportive cornerstone investor : WEST MINERALS PTY LTD
Board of Directors
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Dr James Macdonald - Chairman
Geologist; ex Chief Geoscientist for BHP Billiton; ex Exploration Manager, Homestake Chile
Mr Frank Bethune - Managing Director
Mining Engineer; ex Mine Manager, Sunrise Dam, Western Australia; ex General Manager, Navachab gold mine, Namibia
Dr Ken Maiden - Executive Director
Founding director of IBML; successful exploration geologist; ex CSR, MIM
Mr Luo Zhehong
Chairman of Qinghai West Resources Co; Chairman of Qinghai West Rare and Precious Metals Co
Mr Chen Qiang
Mining Engineer; international commodities trader & investor (Alternate to Mr Luo)
Mr Alan Humphris
Corporate Advisor; ex Head of Hambros Australia; ex Director of JP Morgan Australia
Mr Wang Jinhua
Mining & Industrial Engineer; MD of Kings Resources Group Co
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Namibia at a Glance
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Area 824,269 km2
Population 2.1 million
Languages English (official), 10
ethnic languages
Independence 1990
Government Democratically elected
Currency U$ 1 = N$ 9
Linked to South African Rand
Economy Dependent on mining diamonds, uranium, gold, base metals.
Also fishing, agriculture, tourism
Infrastructure Well-developed
physical infrastructure
Namibia
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Low political risk
Well-developed mining industry
Under-explored base metal trends
Good infrastructure
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well-maintained sealed & gravel roads
established rail system
deep water port at Walvis Bay
power stations & supply network
good water supply network
extensive mobile phone coverage
Effective mining & taxation legislation
Transparent mining & exploration
tenure system
Effective bureaucracy
Full convertibility for foreign investment
Good exploration & mining support
Craton Mining and Exploration (Pty) Ltd
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IBML‟s wholly-owned Namibian-registered subsidiary
Successful exploration team based in Windhoek
Exclusive Prospecting Licences (EPLs)
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Mineral rights are vested in the state
EPLs provide exclusive rights to explore
an area
They also provide exclusive rights for
Mining Licence applications
Maximum area 1000 km2
Grant of application requires approval of
proposed work programme & budget
Tenements are valid for three years. They
can be renewed twice for two years each.
Additional renewals require ministerial
approval
Reductions in area are required with each
application for renewal
Annual reports on progress & expenditure
are required. These become open-file
reports after relinquishment of tenure
Map shows IBML’s projects in Namibia
IBML’s Namibian Exploration Projects
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Omitiomire
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1 EPL 988 km²
JORC Resource: 123 million tonnes („Mt‟) at 0.53% copper (0.25% Cu cut-off)
1.2 million tonnes contained copper in resource plus identified potential resource
Plan for initial development of a small-scale operation based on oxide copper resource, to be
followed by a larger operation based on sulphide copper resource
Steinhausen
Kamanjab
4 EPLs 3,689 km²
4 EPLs 2,623 km²
Kalahari Copperbelt
Epembe
3 EPLs 2,333 km²
Option to earn a majority interest
OMITIOMIRE - IBML’s FLAGSHIP PROJECT
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Omitiomire Project – Infrastructure
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Omitiomire Deposit
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The deposit extends 3,500m north-south
It dips east at a shallow angle and plunges to
the NNE
It remains “open” to north & northeast
Potential for additional copper zones below
central part of deposit (see drill sections)
Note wide drill hole spacing in the deeper
northern & north-eastern portions of the deposit
Three clusters of closely-spaced holes show
near-surface zones of oxide copper proposed
for early mine development
Outline of Omitiomire resource
showing drill hole locations
West to East Section
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Drill section showing resource blocks and potential resource
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The deposit consists of three main lenses (A, B & C) and several smaller ones
Note potential for additional copper zones below the existing drill holes
West to East Section
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The recently-discovered C Lens lies beneath the previously-defined resource and may extend
further to the west
The deposit extends to the east at depth indicating underground mining potential
South to North Section
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The deposit extends over 3,500m north-south, and plunges to the north.
The C Lens extends south beneath the previously-defined A & B Lens resource
The deposit remains “open” to the northeast
Omitiomire Geological Model
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Isometric view of the 2012 resource wireframes
The geological model identifies eight lenses: A Lens (yellow); B Lens (orange); C Lens (red); Central
Lens (green); Kaya Lens (grey); Mamba Lens (blue); Bruce Lens (pink) and Bruce Terrace Lens (purple).
Almost half the resource tonnage is within the B Lens
Omitiomire Resource
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Indicated + Inferred Resource
Resource + Potential
Cut-off
grade
Resource
Grade
Metal
Resource +
Potential
Grade
Metal
(% Cu)
(Mt)
(% Cu)
(tonnes)
(Mt)
(% Cu)
(tonnes)
0.1
193
0.43
825,000
301
0.45
1,367,000
0.2
168
0.47
784,000
269
0.49
1,315,000
0.25
136
0.53
712,000
230
0.53
1,228,000
0.3
117
0.57
661,000
203
0.57
1,155,000
Approx 70% JORC Indicated Status
Resource estimate by Bloy Resource Evaluation, Aug 2012
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Wide drill hole spacing in deeper drill intersections in the northern part of the deposit
Hence, much of the northern part of the deposit remains in the “Potential Resource” category
With infill drilling, much of this is expected to fall into the JORC-compliant resource
Host Rocks
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The Omitiomire deposit is hosted by banded schist
Copper is preferentially concentrated in dark (mafic) bands of amphibole-biotite-epidote schist
The interlayered pale (felsic) bands of quartz-feldspar gneiss are barren
Development Proposal
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The Omitiomire primary sulphide copper deposit is oxidised to 20m depth and partly oxidised to 40m depth
IBML is considering a two-stage approach to bring Omitiomire into production:
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Phase 1 - a small project based on the near-surface oxide copper resource
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Phase 2 - a larger project based on the deeper sulphide copper resource
Oxide copper (blue-green) exposed in the bulk sample pit
Phase 1 Development: Oxide Copper
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Resource
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1.9 million tonnes (Mt) at 0.87% Cu
80% oxide, 20% sulphide
Mining
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Three small pits, stripping ratio 1:1.8
Initial annual production: 0.34 Mt at 1.2% Cu
Beneficiation
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Crush – screen – dense medium separation (DMS) – mill
– sulphide float – solvent extraction – electrowinning
Expected oxide copper recovery 80%
Scoping study in progress
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Pit design
Collection of a 50 tonne bulk sample for pilot plant testing
Financial evaluation
Oxide copper in drill core
Phase 1 Development: Oxide Copper
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Excavating the oxide copper bulk sample pit, November 2012
Proposed Sulphide Copper Pre-Concentration
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Coarse-grained chalcocite (steel grey) in bands of mafic schist
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Bands of copper-bearing mafic schist are soft (< 150 MPa) & heavy (> 2.8 g/cm3)
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Barren felsic bands are hard (> 200 MPa) & light (< 2.7 g/cm3)
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This difference in physical characteristics permits cheap & effective pre-concentration by dense medium
separation („DMS‟)
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Testwork at Mintek Laboratories in Johannesburg has shown that this process doubles the grade of mill
feed to +1% Cu
Sulphide Copper - Mineralogy & Mineral Processing
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Primary copper mineralogy
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Mainly coarse chalcocite (Cu2S – 79% Cu)
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Minor bornite (Cu5FeS4)
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Trace chalcopyrite (CuFeS2)
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No pyrite (FeS2)
Mineral processing
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DMS pre-concentration followed by grinding &
sulphide flotation
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Tests show +50% Cu concentrate
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No deleterious elements (As Bi etc)
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Very minor Ag Au Pd Pt by-products
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Overall 90% sulphide copper recovery
Microscopic view of chalcocite
(pale blue) in mafic schist
Proposed Flow Sheet
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Social & Environmental Impact Assessment
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Specialist field studies
Ongoing work
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Biodiversity/ecology
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Soils & land capability
Routine monitoring of groundwater, dust &
weather station
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Air quality
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Public participation meetings
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Surface water run-off & water balance
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Hydrogeological modelling
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Visual impact, noise, dust, traffic
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Socio-economic considerations
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Closure costing
Omitiomire project area
Omitiomire - Geological Setting
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Omitiomire & other copper prospects are hosted by the Ekuja basement dome
Omitiomire - Discovery Potential
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Craton‟s exploration priority is to expand the
copper resource at, and within trucking
distance of, the Omitiomire deposit
Detailed soil geochemistry of the Ekuja
Dome, shows extensive copper anomalies
close to Omitiomire
Shallow rotary air blast (RAB) drilling
showed copper associated with many of the
anomalies
These targets are being progressively
followed up by more detailed reverse
circulation (RC) drilling
Detailed soil geochemistry of the
Ekuja Dome. The “warm” colours
show geochemical anomalies
REGIONAL DISCOVERY POTENTIAL
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Namibian Exploration Projects
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Omitiomire
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Steinhausen
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Kamanjab
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Kalahari Copperbelt
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Epembe
Omitiomire & Steinhausen Projects
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Extensive soil geochemical
surveys, supported by
geological mapping, have
identified priority targets
These are being followed up
by detailed exploration
including RC drilling
Soil geochemistry of the
Omitiomire & northern
Steinhausen tenements.
The “warm” colours show
geochemical anomalies
Field Work
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Steinhausen Project
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Two new tenements granted EPLs 4150 & 4151
Both have known copper occurrences,
not explored since the 1970s
Potential for primary & oxide copper
Review of previous exploration in
progress
Simplified geological map of the
Steinhausen project area,
showing main geological
elements & copper prospects
Copperbelts of Southern Africa
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In addition to the important Central
African Copperbelt of Zambia and the
DRC, there are two other significant
copper belts in southern Africa •
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the Kalahari Copperbelt in
Botswana & Namibia
the Kaoko Copperbelt in northern
Namibia
In both belts, deposits are of the same
age & same style as in the Central
African Copperbelt
Craton has exploration licences in both
these belts
Kalahari Copperbelt Project
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Craton holds three EPLs with known copper occurrences
Kalahari Copperbelt - Geological Setting
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Copper in four geological situations • As copper-gold veins in Rehoboth Inlier basement rocks
• Regionally-developed (over 60 km strike) in slate of the Kagas Member
• In sandstone of the Tsumis Group above the Kagas Member (e.g. Noams prospect)
• In sandstone of the Nosib Group (e.g. Sib deposit)
Kalahari Copperbelt Project
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Rehoboth Inlier - copper-gold in veins
Sib deposit – small resource identified
Noams prospect – copper in sandstone
Kagas prospects - copper in carbonate
Kamanjab Project (Kaoko Copperbelt)
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Craton‟s EPLs & applications cover +100 km strike of the target zone in the basal Damara Sequence
Kamanjab Project (Kaoko Copperbelt)
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Kopermyn open-cut mine (1970s operation)
- high grade copper up to 18m thick
The Kopermyn deposit (see photo) is similar to the
sandstone-hosted “footwall” deposits in Zambia
Craton has identified copper occurrences over 10 km
along strike from the old mine
These are partly in sandstone, as at Kopermyn, and
partly in overlying siltstone & carbonate strata
Craton‟s tenements & applications cover over 100 km
of prospective strata
Copper occurrence along strike from Kopermyn
Epembe Project
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The recent investment in African Mining Capital
Pty Ltd („AMC‟) secures IBML the option to earn
a 51% stake in the Epembe tantalum-niobium
(Ta-Nb) project in northern Namibia.
Looking northwest along the carbonatite ridge
IBML is conducting a due diligence assessment
of the prospect over a period of six months, prior
to making a decision on whether to proceed with
an exploration joint venture on the project.
The deposit is hosted in a body of carbonatite which
forms a prominent ridge. The mineral pyrochlore
contains concentrations of tantalum, niobium and
uranium. Mineralised zones range up to 25m in width
but are generally narrower. Three main strikeextensive zones have been recognised
Exploration of the prospect is at an early stage and no
resource estimations have been carried out
Pyrochlore crystals
in carbonatite
AUSTRALIAN PROJECTS
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Maranoa Resources Pty Ltd
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South-central Queensland
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Exploration for nickel-copper in a maficultramafic igneous complex
AuriCula Mines Pty Ltd
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Cobar district, Central New South Wales
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Historic copper mines & other targets for “Cobartype” copper-gold
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JV with Glencore subsidiaries
Endolithic Resources Pty Ltd
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Mount Isa district, northwest Queensland
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Exploration for “Isa-type” copper
Magnetic image, Darkwater igneous
complex, Maranoa Project
COMPANY STRATEGY to end-2013
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Priority 1: Omitiomire oxide copper resource
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Complete a feasibility study for mining & processing based on the oxide copper resource
If the study is positive, apply for a Mining Licence and raise funds to develop the project
Priority 2: Omitiomire sulphide copper resource
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Focus exploration on increasing the resource at, and within trucking distance of, Omitiomire
Postpone the previously-planned definitive feasibility study
Priority 3: Epembe Project
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Assess the potential for development of a tantalum-niobium operation
If the assessment is positive, exercise the option to earn into the project
Priority 4: Other Namibian projects
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Conduct a scoping study for a small oxide copper mining & processing operation at Sib
Continue exploration as planned on other projects
Priority 5: Australian projects
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Continue exploration on existing projects
IBML Contact Details
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Address
Suite 60, 47 Neridah Street
Chatswood, NSW 2057, Australia
Telephone
Fax
+61 (0) 2 8223 3777
+61 (0) 2 8223 3799
Email
Address
Website
[email protected]
Suite 60, 47 Neridah Street
http://www.ibml.com.au
Chatswood, NSW 2057, Australia
Telephone
Fax
Email
Website
+61 (0) 2 8223 3777
+61 (0) 2 8223 3799
[email protected]
www.ibml.com.au
http://www.ibml.com.au