IGO Limited · ASX:IGO
IGO — Independence Group NL — Investor Presentation (April 2012)
62 slides from IGO's investor presentation, April 2012
Slide 1: Independence Group Analyst Update April 2012
INDEPENDENCE GROUP VALUE THROUGH DISCOVERY AND DEVELOPMENT Analyst Update April 2012 Chris Bonwick – Managing Director 1
Slide 2: Disclaimer
Disclaimer Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward‐looking statements. All statement, other than statements of histor
Slide 3: Independence Group Overview - Corporate
Independence Group Overview ‐ Corporate Capital Structure: ASX 200 Code : IGO 232.9M shares Market Cap. (29/03/2012) : A$920M Substantial shareholders: JCP : 12.5% (Feb 2012) Fidelity: 5.2% Australian Institutions: 63.7% Off Shore Institutions: 10.1% 58 Institutions in top 100 Financials: Cash: (31/
Slide 4: IGO History and Share Price
IGO History and Share Price Six ore bodies discovered to date Weekly Average Share Price to 29.03.12 4
Slide 5: Independence Group – 2012 Focus
Independence Group – 2012 Focus Tropicana Gold Project (IGO 30%) Continued development of the 6.4Moz Au Project Update reserves, mining schedule and economics Discover new gold ore bodies Long Nickel Operation (IGO 100%) Implement improved Moran long hole mining method Discover new nickel sulphide p
Slide 6: Independence Group – 2012 Focus
Independence Group – 2012 Focus Jaguar / Bentley Cu‐Zn‐Ag Operation (IGO 100%) Increase mining rate from 420,000 tpa to 600,000 tpa Ramp up HMS plant to 300,000 tpa Mill 450,000 tpa and increase concentrate production Discover new VMS ore bodies Stockman Cu‐Zn‐Ag Project (IGO 100%) Complete Feasibil
Slide 7: Mines, Development and Advanced Exploration Projects
Independence Group NL – Mines, Development and Advanced Exploration Projects 7
Slide 8: Tropicana JV Gold Production 2013
Tropicana JV (IGO 30%) Gold Production 2013 PROJECT UNDER CONSTRUCTION A New Australian Gold Province AngloGold Ashanti – 70% (Manager) Independence Group NL – 30% Tropicana JV 1000kms “New Gold Province under sand” 8
Slide 9: Tropicana JV 2011 Resources & Reserves
Tropicana JV (IGO 30%) 2011 Resources & Reserves 100% PROJECT November 2011 Mineral Resource: 88.3Mt @ 2.3g/t Au = 6.41Moz (A$1,400/oz) June 2011 Open Pit Reserve: 56.4Mt @ 2.2g/t Au = 3.91Moz (A$1,210/oz) Reference – AGA 27/7/11 and 29/11/11 ASX Releases for Resource and Reserve Estimates 9
Slide 10: Tropicana JV Bankable Feasibility Study & June 2011 Reserve Update
Tropicana JV – Bankable Feasibility Study & June 2011 Reserve Update (100% Project) BFS Open Pit Reserves: Tropicana, Havana, Havana South Reference – IGO 11/11/10 ASX Release 48Mt at 2.2 g/t Au – 3.4M oz* for BFS Open Pit Reserve Estimate *A$1,100 oz Au, A$106/bbl oil, 0.7 g/t Au fresh ore cut off)
Slide 11: Tropicana JV Proposed Site Layout
Tropicana JV (IGO 30%) Proposed Site Layout 11
Slide 12: Tropicana JV Construction Progress March 2012
Tropicana JV (IGO 30%) Construction Progress March 2012 Plant site – aerial view Airstrip construction Village construction Plant site clearing 12
Slide 13: Tropicana JV Proposed Plant Layout
Tropicana JV (IGO 30%) Proposed Plant Layout 13
Slide 14: Tropicana JV BFS Outcome - 100% Project
Tropicana JV (IGO 30%) BFS Outcome ‐ 100% Project Plant & Equipment A$590‐A$620M Real Capital: Working Capital A$100‐A$120M Real A$690‐A$740M Payback: 2.2 years (A$1,300/oz Au, A$106/bbl oil, AUD:USD 1:00) Anticipated First Gold: October 2013 Additional Upside: Havana underground Boston Shaker and o
Slide 15: Havana Deeps Underground Scoping Study
Tropicana JV (IGO 30%) Havana Deeps Underground Scoping Study Havana Deeps is not included in current Reserves or BFS Drill widths approximate true widths Reference – IGO 31/12/10 ASX Quarterly Report for Havana Deeps Underground Resource Estimate 15
Slide 16: Tropicana JV Havana Deeps Intercepts
Tropicana JV (IGO 30%) Havana Deeps Intercepts Drill widths approximate true width Reference – IGO 30/09/11 ASX Quarterly Report 16
Slide 17: Havana Deeps Cross-section
Tropicana JV (IGO 30%) Havana Deeps Cross‐section Drill widths approximate true widths Reference – IGO 30/09/11 ASX Quarterly Report 17
Slide 18: Havana Open Pit and Underground Potential
Tropicana JV (IGO 30%) ‐ Havana Open Pit and Underground Potential Havana Deeps Underground Havana Potential Open Pit Resource Location Cut‐back Reference – AGA 27/7/11 ASX Release for Reserve Estimate and IGO 29/11/11 ASX Release for Havana Deeps Underground Resource Estimate 18
Slide 19: Boston Shaker and Swizzler Significant Intercepts
Tropicana JV (IGO 30%) ‐ Boston Shaker and Swizzler Significant Intercepts Proposed Boston Shaker, Tropicana and Havana Open Pit Outlines, g/t Au x Thickness (m) Contours, Significant Drill Intercepts and Location of the Swizzler and Swizzler Deeps Prospects Drill widths approximate true widths 19
Slide 20: Tropicana JV Significant Discoveries To Date
Tropicana JV (IGO 30%) Significant Discoveries To Date Numerous gold anomalies and potential for other gold discoveries Reference – AGA 27/7/11 and 29/11/11 ASX Releases for Resource and Reserve Estimates 20
Slide 21: Tropicana JV Fly Through
Tropicana JV (IGO 30%) Fly Through 21
Slide 22: Long Nickel Operation (IGO 100%)
Long Nickel Operation (IGO 100%) 2002 Purchase price = A$15M Update 27% Ore Reserve increase to 58,100 Ni t. Continued exploration and production development. Exploration success at Long North and Moran. 1979‐1999 WMC Production: 203,184t Ni 2002‐Dec Qtr 2011 IGO Production: 78,359t Ni Reference – I
Slide 23: Long Nickel Operation (IGO 100%)
Long Nickel Operation (IGO 100%) Moran, McLeay and Long nickel ore bodies yet to be closed off HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to Dec 11 = 78,359 Ni t • June 2011 Resource = 83,000 Ni t • June 2011 Reserves = 58,100 Ni t GOALS • Sustainable 9,000t Ni pa production profi
Slide 24: Long Nickel Quarterly Cash Costs and Revenue
Long Nickel Operation (IGO 100%) Quarterly Cash Costs and Revenue History of high operating margins and consistent low cash costs Revenue A$/lb Ni (includes hedging) Payable Cash Costs A$/lb Ni 24
Slide 25: Long Nickel Production Forecast and Hedging
Long Nickel Operation (IGO 100%) Production Forecast and Hedging History of exceeding production guidance 2011/12 Actual Guidance Jul – Dec 2011 • Production 8,800 ‐ 9,200 Ni t 4,497 Ni t • Grade 3.8% Ni 3.6% Ni • Cash Costs (payable) + royalty A$4.80 ‐ 5.00/lb Ni A$4.96/lb Ni • Hedging July 2011 ‐
Slide 26: Long Nickel Mine Geophysics - TEM Equipment
Long Nickel Operation (IGO 100%) Mine Geophysics ‐ TEM Equipment Innovative research and development High powered TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM probe targ
Slide 27: Long Nickel Deposits and Targets - Longitudinal Projection
Long Nickel Operation (IGO 100%) Deposits and Targets ‐ Longitudinal Projection Largest Reserve since IGO reopened the mine (mine life extended to at least 2017) Reference – IGO 20/10/11 Annual Report ASX Release for Resource and Reserve Estimates 27
Slide 28: Long Nickel Moran South Nickel Target
Long Nickel Operation (IGO 100%) Moran South Nickel Target New zone of nickel sulphides intersected east of Moran More DHTEM conductors south‐east of Moran Drilling in progress 28
Slide 29: Long Nickel Operation Fly Through
Long Nickel Operation (IGO 100%) Fly Through 29
Slide 30: Jaguar / Bentley Operation (IGO 100%)
Jaguar / Bentley Operation (IGO 100%) VMS Corridor Walk‐up Geophysical and Drilling Targets Aeromagnetic Image Jaguar / Bentley June 2011 Reserves: Bentley – 2.45Mt @ 1.5% Cu, 8.6% Zn, 106g/t Ag, 0.5g/t Au (Expected mine life to 2017) Jaguar – 0.83Mt @ 2.4% Cu, 3.9% Zn, 56g/t Ag (Expected mine life
Slide 31: Jaguar / Bentley Production Guidance and Target
Jaguar / Bentley Operation (IGO 100%) Production Guidance and Target 2011/12 Production Guidance Metal in concentrate: 7,500 ‐ 8,500t Cu, 15,500 ‐ 16,500t Zn, 0.4 – 0.5M oz Ag 2012/13 Production target Mining 600,000t ore: Jaguar – 120,000t, Bentley – 480,000t HMS feed: 300,000t producing ~200,000t
Slide 32: Jaguar Deposit 3D Model
Jaguar / Bentley Operation (IGO 100%) Jaguar Deposit 3D Model June 2011 Resource: 0.86M t @ 2.7% Cu, 4.6% Zn, 66g/t Ag Reserve: 0.82M t @ 2.4% Cu, 3.9% Zn, 56g/t Ag Reference – IGO 20/10/11 Annual Report ASX Release for Resource & Reserve Estimate 32
Slide 33: Jaguar Revised Sub-level Cave Mining Sequence
Jaguar / Bentley Operation (IGO 100%) Jaguar Revised Sub‐level Cave Mining Sequence 33
Slide 34: Jaguar and Far Side Deposits
Jaguar / Bentley Operation (IGO 100%) Jaguar and Far Side Deposits Jaguar – Far Side Deposits cross‐section Potential to increase reserves Far Side Deposit drill hole Cu grade longitudinal projection 34
Slide 35: Bentley Deposit 3D Model
Jaguar / Bentley Operation (IGO 100%) Bentley Deposit 3D Model June 2011 Resource: 3.0M t @ 2.0% Cu, 9.8% Zn, 139g/t Ag, 0.7g/t Au June 2011 Reserve: 2.45M t @ 1.5% Cu, 8.6% Zn, 106g/t Ag, 0.5g/t Au Reference – IGO 20/10/11 Annual Report ASX Release for Resource & Reserve Estimate 35
Slide 36: Jaguar/Bentley Exploration Model and Potential
Jaguar/Bentley Operation (IGO 100%) Exploration Model and Potential Volcanic Massive Sulphide (VMS) Discovery History & Mineralisation Scale Bentley Resource Golden Grove Gossan Hill discovery history Outline ? ? ? 36
Slide 37: Jaguar/Bentley VMS Corridor and Targets
Jaguar / Bentley Operation (IGO 100%) VMS Corridor and Targets Under explored 50km long prospective Cu‐Zn‐Ag VMS corridor. Prospectivity around existing 3 mines. 8 Cu‐Zn‐Ag alteration anomalies under cover being tested systematically. Gold and Nickel potential. Visible gold in Bentley drill core 37
Slide 38: Bentley Ore Body and Bentley South Prospect
Jaguar / Bentley Operation (IGO 100%) Bentley Ore Body and Bentley South Prospect 38
Slide 39: Pumping Station VMS Prospect
Jaguar / Bentley Operation (IGO 100%) Pumping Station VMS Prospect Strong VMS geochemistry intersected by IGO air core drilling under thick cover. Very limited previous exploration. Unexplained TEM anomalies in the vicinity of bed rock geochemical anomaly 39
Slide 40: Stockman Project Mines and Prospects
Stockman Project (IGO 100%) Mines and Prospects Wilga and Currawong Cu‐Zn‐Ag Deposits discovered by WMC in 1978/9. June 2011 Total Indicated + Inferred Resources: 12.7M t @ 2.1% Cu, 4.4% Zn, 39g/t Ag, 1.0g/t Au Reference – IGO 20/10/11 Annual Report ASX Release for Resource Estimate 40
Slide 41: Stockman Currawong Deposit Planned Development
Stockman Project (IGO 100%) Currawong Deposit Planned Development June 2011 Resource: 9.43M t @ 2.0% Cu, 4.2% Zn, 0.8% Pb, 42g/t Ag, 1.2g/t Au Open down‐plunge 41 Reference – IGO 20/10/11 Annual Report ASX Release for Resource Estimate
Slide 42: Stockman Wilga Deposit Planned Development
Stockman Project (IGO 100%) Wilga Deposit Planned Development June 2011 Resource: 3.26M t @ 2.4% Cu, 4.8% Zn, 0.4% Pb, 30g/t Ag, 0.4g/t Au Open down‐plunge Reference – IGO 20/10/11 Annual Report ASX Release for Resource Estimate 42
Slide 43: Karlawinda Gold Project Regional Location
Karlawinda Gold Project (IGO 100%) Regional Location Large new gold system close to gas pipeline and existing Newman infrastructure 43
Slide 44: Karlawinda Bibra Prospect Gram x Metre Contours
Karlawinda Gold Project (IGO 100%) Bibra Prospect Gram x Metre Contours Drill intercepts are quoted as down hole widths, and not true widths Reference – IGO 31/3/11 ASX Quarterly Report for Resource Estimate 44
Slide 45: Karlawinda Bibra Prospect Cross-section
Karlawinda Gold Project (IGO 100%) Bibra Prospect Cross‐section Maiden Resource 219,900 oz Au B B’ Drill intercepts are quoted as down hole widths, and not true widths Reference – IGO 31/3/11 ASX Quarterly Report for Resource estimate 45
Slide 46: Karlawinda Francopan Prospect Cross-section
Karlawinda Gold Project (IGO 100%) Francopan Prospect Cross‐section Very large gold system Drill intercepts are quoted as down hole widths, and not true widths 46
Slide 47: Duketon JV Rosie Prospect Massive Nickel Sulphides
Duketon JV (IGO earning 70%) Rosie Prospect Massive Nickel Sulphides Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.1% Ni, 1.1% Cu, 0.2% Co, 7.1g/t PGE’s (2.2g/t Pt, 1.7g/t Pd, 1.8g/t Ru & 0.8g/t Rh) Drill intercepts are quoted as down hole width, not true width 47
Slide 48: Duketon JV Rosie Prospect Maiden Resource
Duketon JV (IGO earning 70%) Rosie Prospect Maiden Resource Reference – IGO 25/1/12 ASX Release for Resource Estimate 48
Slide 49: Duketon JV C2 Prospect Disseminated Nickel Sulphides
Duketon JV (IGO earning 70%) C2 Prospect Disseminated Nickel Sulphides C2 Prospect cross‐section C2 Prospect disseminated NiS C2 Prospect stringer NiS 49
Slide 50: Project Generation De Beers Database
Project Generation De Beers Database (IGO 100%) No buy‐back or royalties on future mineral discoveries Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected. 2,278 samples reporting visible gold. 2,025 geophysical surveys. IGO analysing samples for 5
Slide 51: De Beers Database (IGO 100%)
De Beers Database (IGO 100%) IGO Team Preparing geochemical samples for analysis in sample storage shed IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA) Potential of the 100% owned proprietary data base for identifying undiscovered deposits 51
Slide 52: Asset Pipeline and Organic Growth Profile
Asset Pipeline and Organic Growth Profile Combination of low cost cash flows from current operating mines with significant long‐life development projects and highly prospective exploration Highly complimentary management and technical capabilities, with proven successful track records of exploration
Slide 53: Independence Group Contact Details
Independence Group Contact Details Perth Office Managing Director – Chris Bonwick Suite 4, Level 5 South Shore Centre 85 South Perth Esplanade South Perth, Western Australia 6151 Postal: PO Box 496, South Perth Western Australia 6951 Telephone: +61 8 9238 8300 Facsimile: +61 8 9238 8399 Email: conta
Slide 54: Appendix: Resource and Reserve Statements
Independence Group NL APPENDIX RESOURCE and RESERVE STATEMENTS 54
Slide 55: Long Nickel Mine June 2011 Resources and Reserves
Long Nickel Mine (IGO 100%) June 2011 Resources and Reserves RESOURCES MINING RESERVE Undiluted at 1% Ni Cut‐off 1, 2 as at 30 June 2011 as at 30 June 2011 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26,000 5.6 1,500 LONG Proven Indicated 210,000 4.8 10,100 Probable 127,000 3.0 3,800 I
Slide 56: Tropicana JV Resources and Reserves
Tropicana JV (AGA 70% / IGO 30%) Nov 2011 Resources and Jun 2011 Interim Reserves November 2011 June 2011 Project Resources Project Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 28.2 2.1 1.95 Proved 25.8 2.3 1.90 Indicated 49.4 2.
Slide 57: Jaguar/Bentley Mineral Resource – June 2011
Jaguar Project Jaguar/Bentley Mineral Resource – June 2011 2.0 ‐ Reference – IGO 20/10/11 Annual Report ASX Release for Resource Estimates 57
Slide 58: Jaguar/Bentley Project Reserve – June 2011
Jaguar/Bentley Project Reserve– 30 June 2011 ‐ Reference – IGO 20/10/11 Annual Report ASX Release for Reserve Estimates 58
Slide 59: Stockman Resource Estimate – June 2011
Stockman Resource Estimate – June 2011 Stockman Classification Tonnes Cu % Zn % Pb % Ag g/t Au g/t Currawong Indicated 9,130,000 2.0 4.2 0.8 42 1.2 Currawong Inferred 305,000 1.4 4.1 0.6 34 0.5 Total Indicated + Inferred 9,435,000 2.0 4.2 0.8 42 1.2 Wilga Indicated 2,368,000 2.1 5.5 0.5 32 0.5* Wilg
Slide 60: Karlawinda Bibra Deposit Maiden Resource March 2011
Karlawinda Gold Project – Bibra Deposit Maiden Resource March 2011 Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 1.9 1.2 73,300 Upper Saprolite 0.8 1.1 28,300 Lower Saprolite 1.6 1.1 56,600 Sub‐total Oxide Inferred 4.3 1.1 158,200 Transition Inferred 1.6 1.2 61,700 Grand
Slide 61: Duketon Nickel JV Maiden Resource Dec 2011
Duketon Nickel JV– IGO Earning 70% Maiden Resource Dec 2011 Reference – IGO 25/01/2012 ASX Announcement for Resource Estimate 61
Slide 62: Competent Person Statements
Competent Person Statements Notes: The information in this summary presentation that relates to Exploration Results is based on information compiled by Mr Christopher M Bonwick who is a full‐time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Mr Bonwi
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