AustSino Resources Group Limited
AustSino Resources — Padbury Mining — Tonkin's Mining the Mid West (September 2011)
21 slides from AustSino Resources's conference presentation, September 2011
Slide 1: Tonkin's Mining the Mid West
Building value in Western Australia’s Mid West Tonkin’s Mining the Mid West
Slide 2: Disclaimer and Competent Person Statement
Disclaimer and Competent Person Statement This document contains general information about the activities of Padbury Mining Ltd (‘Padbury” or the “Company”) current as at the date of this presentation. It is information in a summary form only and does not contain all the information necessary to ful
Slide 3: Corporate Structure
Corporate Structure Shares: 2.4B Issued Capital: Options: 665M Market Cap $45M Cash in Bank $ +10M Debt: Nil ASX code: PDY Top 20 shareholders 40.4% Stakes in ASX Aurium Resources (AGU) 35M shares listed Companies: *As at 30 August 2011 padburymining.com.au
Slide 4: Board and Management
Board and Management Dr John Saunders Chairman Gary Stokes Managing Director Garret Dixon Non-Executive Director David Southam Non-Executive Director Luke Innes Non-Executive Director Colin Stirling Non-Executive Director padburymining.com.au
Slide 5: The Current Economic Cycle
The Current Economic Cycle Don’t believe the doom merchants… Big economies underpinned by resources ~ 4% growth – (Canada, Russia, Australia; Brazil; South Africa ~ 440M people, 10% of world GDP) Third Wave of SE Asian economies ~ 6% growth – (First wave, China; Second wave India – Malaysia, Indones
Slide 6: China's 12th Five Year Plan
China’s 12th Five Year Plan China plans to: – Build up to 10 million low income housing units in 2011, up 72.4% – Invest around $106 billion in railroad construction projects in 2011 – Build 20 million new motor vehicles Urbanisation will continue to grow especially in the west Relatively high cost
Slide 7: Global Iron Ore Demand
Global Iron Ore Demand Iron ore demand over next four years to “equal volumes provided by Australian suppliers to date” (Albanese, RioTinto CEO) Key Australian markets China, India and Brazil expected to increase from 53% to 60% of global steel consumption by 2016 – increase of 8% a year World steel
Slide 8: Iron Ore – Hematite vs Magnetite
Iron Ore – Hematite vs Magnetite Hematite 96% of Australia’s iron ore production Historic base for Australian iron ore industry Mined and beneficiated using a relatively simple crushing, screening and blending before export for use in steel mills. Magnetite Lower iron content and must be upgraded to
Slide 9: Padbury Mining Location
Padbury Mining Location Mid West – Australia’s next major iron ore region Near other major operating and prospective mine projects, including Weld Range (Sinosteel Midwest Corp), Jack Hills (Crosslands Resources), Mt Gould (Atlas Iron) Proximity to Oakajee port and rail development and energy infras
Slide 10: Peak Hill Iron JV - Project Overview
Peak Hill Iron JV - Project Overview Flagship project in Western Australia’s Mid West, 450km north east of Geraldton 2500sqkm area - targeting hematite and magnetite Significant maiden resource (magnetite) and exploration target (DSO) Strong project vision – targeting early cashflow from DSO to supp
Slide 11: Peak Hill Iron JV - Magnetite
Peak Hill Iron JV - Magnetite 850Mt Maiden Inferred JORC resource @ 27.3% Fe from 4km of potential 10km strike length Davis Tube Recovery (DTR) test work demonstrates potential high-grade concentrate production Heritage survey completed and approved by local Indigenous community Extended drill progr
Slide 12: Peak Hill Iron JV - DSO
Peak Hill Iron JV - DSO Hematite (DSO) exploration target of 10- 55Mt at 55-58% Fe Additional DSO pods discovered – rock chip samples show grades of 60-65% Fe Awaiting DEC approval for new drilling at Mt Padbury padburymining.com.au
Slide 13: Regional Projects
Regional Projects padburymining.com.au
Slide 14: Magnetite Project Comparison
Magnetite Project Comparison Company Project Market Resource Target Capitalisation Atlas Ridley $1,712M 2.5Bt@36.5% Crosslands Jack Hills n/a 991Mt@34.1% 3Bt Resources Sinosteel Midwest Koolanooka n/a 430Mt @ 35% Corporation Gindalbie Karara $1,037M 2.5Bt@35.9% Grange Southdown $853M 650Mt@36.5% Res
Slide 15: Strengths of WA's Mid West
Strengths of WA’s Mid West Large, diverse mineral resource base with iron ore focus - Some 14 billion tonnes of JORC compliant resources defined to date Mix of hematite and magnetite ore – projects with both have opportunity for early cashflow to underpin development Strong iron ore demand from Asia
Slide 16: Why are we waiting?.....
Why are we waiting?..... Geraldton Port, used by existing Mid West producers, has limited capacity, cannot cater for emerging mines Without access to a deepwater port and rail network, most of the Mid West’s proposed mining projects cannot be developed to production padburymining.com.au
Slide 17: Infrastructure – a port in a storm
Infrastructure – a port in a storm $700M committed by State/Federal governments for the Oakajee Port and Rail Project Proponent OPR six months late with BFS, Murchison Metals admits to funding difficulties No customer agreements negotiated Foundation customer Sinosteel Midwest halted work on crucial
Slide 18: Program of Work – Y1 Milestones Achieved
Program of Work – Y1 Milestones Achieved Review of project Geology and potential Confirmation of iron ore resource potential Delineate maiden JORC resource of >500Mt (850Mt defined) Commence baseline studies (heritage, environment, hydrogeology) Conceptual mining study in progress. A successful conc
Slide 19: Project Targets 2011-2013
Project Targets 2011-2013 H 2 - 2011 Review of project Geology and potential 2011 Strengthen management team Extended drill program Start approvals process and EIA 2012 – 2013 negotiate project construction funding; detailed evaluation for DFS; Mine permitting process June start PFS Complete PFS pad
Slide 20: Conclusion
Conclusion Emerging iron ore junior with 850Mt JORC compliant resource in the mid-west region of Western Australia Compelling valuation vs. peers over medium term Flagship Peak Hill JV project has the potential to rival the significant deposits of the region Strong vision for the project - regionall
Slide 21: Thank You
CGN Chara Thank You
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