WA Gold Limited · ASX:WAU
WA Gold — Technical Presentation (January 2011)
21 slides from WA Gold's technical presentation, January 2011
Slide 1: Rio Pardo Iron Ore Project, Brazil – Technical Presentation
RIO PARDO IRON ORE PROJECT, BRAZIL TECHNICAL PRESENTATION January 2011 1 MINAS NORTE MINERACAO LTDA
Slide 2: Project Location
PROJECT LOCATION BRAZIL RIO PARDO PROJECT NORTH MINAS GERAIS IRON ORE PROVINCE FERROUS RESOURCES US$600 Million 2007 MINAS RIO ANGLO AMERICAN US$5.5 Billion 2 MINAS NORTE MINERACAO LTDA
Slide 3: Why Brazil
WHY BRAZIL • Brazil has a very supportive economic environment. • A stable political system and security of tenure on mineral licences. • Brazil is in the top 5 producers in the world of primary products and commodities. Economy growing at 7.5% per annum. Real has appreciated some 14% against the US
Slide 4: Project History
PROJECT HISTORY MIBA Bid Process & Due Diligence leads to acquisition of adjacent tenements • Negotiated an Exclusivity Agreement on the MIBA project which adjoins the Rio Pardo tenement • Did extensive financial and technical due diligence on the MIBA Project (2009 - 2010) • Commissioned independen
Slide 5: Project History 2
PROJECT HISTORY 2 • Iron ore projects at all levels are selling for very high prices in Brazil, usually with very large up front payments • Salinas project was sold to Honbridge (backed by Chinese State owned Xinwen and Shandong Iron & Steel Group Co (SDIS) for US$430 million in April 2010. (JORC 2.
Slide 6: Project Footprint
PROJECT FOOTPRINT • Potential for multi billion tonnes of mineralization 156km² • Grade up to 40% hematite / magnetite • Beneficiation to 68%Fe, low impurities 383km² • Adjacent to MIBA – sold for US$304M in November 2010 • Salinas deal signed 26th April 2010 US$430M 6 MINAS NORTE MINERACAO LTDA
Slide 7: Corporate Summary
CORPORATE SUMMARY • Very extensive due diligence included successful scout drilling programme to verify iron ore mineralisation • Phase 1 Drilling and feasibility programme has commenced to define JORC compliant resource • Company relisted on 11 December 2010 on ASX. 7 MINAS NORTE MINERACAO LTDA
Slide 8: Ground Floor Entry and Acquisition Terms
GROUND FLOOR ENTRY AND ACQUISITION TERMS • Acquisition price for Rio Pardo US$56M • Terms: US$1M paid, US$5M not before October 2011, balance spread in yearly payments over 5 years. Royalty to the Vendors of $1 per ton of exportable Fe material and $3 per ton of exportable Mn product • Acquisition p
Slide 9: Land Holding Current Status
LAND HOLDING CURRENT STATUS • Rio Pardo Tenure 338.5Km2 – initial tenement block • Granduvale 383Km2 • New Peggings 156Km2 • Total landholding 877Km2 • Iron ore mineralization identified to the south traced into Rio Pardo tenure • Geological reconnaissance, sampling and drilling shows extensive outc
Slide 10: Regional Aeromagnetics
REGIONAL AEROMAGNETICS COMPLETED & IDENTIFIES MINERALISATION • Aeromagnetic interpretation completed RIO PARDO • Assists in PROJECT identifying mineralization • High trends identify ore bodies • Detailed interpretation shows subtle trends related to mineralization 10 MINAS NORTE MINERACAO LTDA
Slide 11: Subtle Trends in Aeromag
SUBTLE TRENDS in AEROMAG Recent detailed aeromagnetics interpreted over the project area showing structural and lithological iron ore targets 11 MINAS NORTE MINERACAO LTDA
Slide 12: Oxide Caps - Canga
OXIDE CAPS - CANGA Oxidized caps readily identified in float and outcrop 12 MINAS NORTE MINERACAO LTDA
Slide 13: Drilling Program
DRILLING PROGRAM • Recent reconnaissance RAB drilling and surface sampling confirmed iron ore mineralisation with a 1,000 metre, 22 hole program, 18 of the 22 holes returned significant assays up to 48%Fe • The magnetite-haematite diamictite ores in this area are different to Australian examples and
Slide 14: Mineralogy & Beneficiation Properties
MINERALOGY & BENEFICIATION PROPERTIES • Coarse grained Magnetite – Hematite mineralisation • Siliceous fragments included in Diamictites • Easily upgraded from 20 - 40% Fe to pellet feed at 65 - 68% Fe • Process route with crushing, light grind • Magnetic separation and flotation • Resulting low pro
Slide 15: Project Potential
PROJECT POTENTIAL Project assumptions based on other operators in the area • Exploration target of 1.5 to 2.0 billion tonnes with 20-40% Fe • Mining operation ( Stage 1) pellet feed 16mtpa at 68% Fe and low impurities over 25 years • OPEX < US$30/ tonne • CAPEX < US$2.8Billion (including 160km rail
Slide 16: Ground Position
GROUND POSITION 16 MINAS NORTE MINERACAO LTDA
Slide 17: Planned Brazil Rail Infrastructure
PLANNED BRAZIL RAIL INFRASTRUSTURE BELÉM EF 151 BOQUEIRÃO EF 334 DA ESPERANÇA •Implementation of west-east rail started FIGUEIRÓPOLIS •State owned open access or CAETITÉ shared usage ILHÉUS •Rail Ilheus to Caetité Rio Pardo finished July 2011 • Project spur line 160km to PORTO MURTINHO Caetité EF 26
Slide 18: Rio Pardo Project – Lefroy Resources Ltd
PROJECT LOCATION RIO PARDO PROJECT – LEFROY RESOURCES LTD RIO PARDO PROJECT Minas Gerais, BRAZIL 18 MINAS NORTE MINERACAO LTDA
Slide 19: Project Overview
PROJECT OVERVIEW • Major iron ore project in world class iron ore province in Brazil • Potential multi billion tonnes at 30 ‐ 40% Fe with regional infrastructure being developed • High acquisition prices paid recently for adjoining ground demonstrates value • Ground floor entry with opportunity to b
Slide 20: BMG Current Corporate Directory
BMG CURRENT CORPORATE DIRECTORY Directors Share Registry Robert Pett Computershare Investor Services Pty Ltd Malcolm Castle Level 2, Reserve Bank Building Anthony Trevisan 45 St Georges Terrace Craig Bromley PERTH WA 6000 Thomas Kelly Telephone 1300 787 272 Facsimile (08) 9323 2033 Company Secretary
Slide 21: Disclaimers
DISCLAIMERS While the Company remains optimistic that it will report resources and reserves in the future, any discussion in relation to exploration targets or resource potential is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if