Strike Resources Limited · ASX:SRK
Strike Resources — UBS Resources Iron Ore Seminar 2008
34 slides from Strike Resources's conference presentation, Apr 8, 2008
Slide 1: Presentation at UBS Resources Iron Ore Seminar
Tuesday, 8 April 2008 MARKET ANNOUNCEMENT For personal use only Presentation at UBS Resources Iron Ore Seminar The Company is pleased to enclose a copy of a presentation to be delivered by Managing Director, Shanker Madan, at the UBS Resources Iron Ore Seminar held in Sydney, Australia, later today.
Slide 2: Developing a World Class Iron Ore Project
For personal use only DEVELOPING A WORLD CLASS IRON ORE PROJECT UBS Iron Ore Conference 8th April A il 2008
Slide 3: Executive Summary
TITLE OF THE PRESENTATION 2 Executive Summary For personal use only z The global market for iron ore is Strike has secured rights to a potential forecast to remain strong. g g grade world class 1.2 billion tonne high g (62%+Fe) iron ore resource in Peru. z Strike is targeting up to 20 million tonnes
Slide 4: Strike is earning a 68% interest in two world class iron ore deposits in Peru
TITLE OF THE PRESENTATION 3 Strike is earning a 68% interest in two world class iron ore deposits For personal use only located in Peru South America
Slide 5: Peru is a World Class Mineral Belt
TITLE OF THE PRESENTATION 4 Peru is a World Class Mineral Belt For personal use only z Peru has 12% to 16 % the world’s known resources of silver, gold, zinc, copper and lead z Peru is among the top five producers in the world of silver, zinc, gold, copper and lead z Xstrata, Newmont, BHP, Shougang
Slide 6: Historical reports estimate 1.2 billion tonnes of high grade iron ore
TITLE OF THE PRESENTATION 5 Historical reports estimate 1.2 billion tonnes of high grade For personal use only iron ore across two deposits z Large untapped deposits of high grade iron ore are rare. z R Resource grade d is i a critical iti l ffactor t iin mine i profitability. fit bilit z Resource e
Slide 7: Strike's Resource is Significant by World Standards
TITLE OF THE PRESENTATION 6 Strike’s Resource is Significant by World Standards For personal use only Deposit Size Grade Fe% Company Carajas (Brazil) ~4,300Mt 65% CVRD Sishen (S Africa) ~2,500Mt 58% Kumbha Minas-Rio (Brazil) ~850Mt – 2,000Mt 40% MMX/Anglo Yandicoogina (Aus - Pilbara) ~1,200Mt 58% Ri
Slide 8: Highly Experienced Board
TITLE OF THE PRESENTATION 7 HIGHLY EXPERIENCED BOARD For personal use only John Stephenson – Chairman Exploration Director Rio Tinto Australasia. 35+ years managing exploration. Shanker Madan (MD) BHP, Rio Tinto, Hamersley Iron. 30+ years iron ore experience. Farooq Khan: Executive Director 20+ year
Slide 9: Strike's Production Growth
For personal use only TITLE OF THE PRESENTATION 8 STRIKES PRODUCTION GROWTH Strike proposes a three phase project development plan ¾ Stage 1 2 Mt pa of High Grade Lump production by 2009 ¾ Stage 2 20 Mt pa High Grade sinter/concentrate production by 2011 ¾ Stage 3 40 Mt pa of High Grade sinter/conce
Slide 10: Stage 1 Production Plan (2009) from surface outcrops at Cuzco
TITLE OF THE PRESENTATION 9 STAGE 1 PRODUCTION PLAN (2009) 2 MT PA FROM SURFACE OUTCROPS AND SCREE AT CUZCO For personal use only ¾ Estimated Capex US$15million ¾ Resource delineation has commenced ¾ Surface S f mining i i off high- hi h grade hematite to 10m depth ¾ Road transport ~70km to existing
Slide 11: Stage 2 Production (2011) from Apurimac
TITLE OF THE PRESENTATION 10 STAGE 2 PRODUCTION (2011) 20 MT PA FROM APURIMAC For personal use only ¾ Mined ore will be crushed, mixed with water and fed into a ~360km slurry pipeline ¾ On reaching the coast, the ore will be de-watered ¾ Product will be shipped to China/Asia in +150,000 tonne vessel
Slide 12: Stage 3 Production (2015) potential expansion from Cuzco
TITLE OF THE PRESENTATION 11 STAGE 3 PRODUCTION (2015) POTENTIAL EXPANSION TO 40 MT PA ADDING 20MT PA FROM CUZCO For personal use only ¾ Drilling to delineate resource to support a further 20Mtpa operation required ¾ Separate mine development at Cu co Cuzco. ¾ Second pipeline to join into the Apurim
Slide 13: Project Timetable
For personal use only TITLE OF THE PRESENTATION 12 STAGE 2 PROJECT TIMETABLE Pre-feasibility (Due to be completed in April 2008) Feasibility Stage 2 Production 22Mt pa Design Stage 2 (Jan 2011) Construction 2007 2008 2009 2010 2011 Drilling 65,000m
Slide 14: Pre-Feasibility Program
TITLE OF THE PRESENTATION 13 20 Mtpa Pre Pre--Feasibility Program Completion April 2008 For personal use only Ore Body Process Slurry Mine Plan Plant Design Pipeline Modelling Environment Water and Port and Marketing P Power S k il Stockpile
Slide 15: Schematic Flow Sheet
TITLE OF THE PRESENTATION 14 SCHEMATIC FLOW SHEET For personal use only
Slide 16: Preliminary Estimated Capital Expenditure
For personal use only TITLE OF THE PRESENTATION 15 PRELIMINARY ESTIMATED CAPITAL EXPENDITURE * Stage 1 * Stage 2 * Stage 3 (2009) (2010- 2011) (2010 (2013 – 2015) 2Mt pa 20Mt pa 40Mt pa US$Mil US $Mil US $Mil Mine, Plant and 20 650 550 Infrastructure Pipeline N/A * 500 * 400 Port 5* 350 150 Total 25
Slide 17: Preliminary Estimated Operating Costs
For personal use only TITLE OF THE PRESENTATION 16 PRELIMINARY ESTIMATED OPERATING COSTS 2Mt pa 20Mt pa 40Mt pa US$/tonne US$/tonne US$/tonne Mining & Processing 5 8 8 Transport 30 3 4 Port 5 2 2 Infrastructure 1 1 1 Admin & O/heads 1 1 1 Total 42 15 16 Prefeasibilty Studies underway to provide grea
Slide 18: Large bodies of water nearby support slurry pipeline transport
TITLE OF THE PRESENTATION 17 Large bodies of water located nearby support preferred transport by slurry pipeline For personal use only
Slide 19: Benefits of a Slurry Pipeline
TITLE OF THE PRESENTATION 18 Benefits of a Slurry Pipeline For personal use only z Relatively low capital expenditure and operating cost. z Downhill gradient is highly beneficial. z Water and gas available. z Targeted throughput: 20 Mt pa expanding to 40Mt pa. z Proven technology – numerous existing
Slide 20: Proposed Pipeline Routes
TITLE OF THE PRESENTATION 19 PROPOSED PIPELINE ROUTES For personal use only Deposit 1 - Apurimac Deposit 2 - Cuzco
Slide 21: Proposed Pipeline Route
TITLE OF THE PRESENTATION 20 PROPOSED PIPELINE For personal use only ROUTE The favourable topography crosses the Peruvian alto- plano before descending to the coastal plane
Slide 22: Proven Technology
TITLE OF THE PRESENTATION 21 Proven Technology For personal use only z PSI have selected a preferred pipeline i li route t to t transport t t iron ore from the mine to coast with a distance of 363km z Only 2 pumping stations will be required z Th pipeline The i li will ill be b buried b i d below th
Slide 23: Operating Conditions
TITLE OF THE PRESENTATION 22 OPERATING CONDITIONS For personal use only CLIMATE ¾ Apurimac 3500m ASL; Cuzco ~4000m ASL ¾ Similar elevations to many large mines in Peru LABOUR ¾ Apurimac Project 15km from Andahuaylas with 50,000 population ¾ Cuzco Project 80km from Cuzco: Peru’s second largest city P
Slide 24: Strike's Iron Ore Advantage
For personal use only TITLE OF THE PRESENTATION 23 STRIKES IRON ORE ADVANTAGE ¾ Superior grades compared to lower grade ores from Australia ¾ For every low grade tonne Australia exports, more South American high grade tonnes are likely to be required to balance the steel mills feed ¾ Expected operat
Slide 25: Initial Metallurgical Test Work
For personal use only TITLE OF THE PRESENTATION 24 INITIAL METALLURGICAL TEST WORK Test work on reverse circulation chip samples from Opaban I returns product grades at coarse crushing with particle sizes of 80% passing 125 and 250 microns as follows. Fe 68.02 % to 68.28% Al2O3 0.30% to 0.35% SiO2 1
Slide 26: Exploration Drilling 2008 – Resource Definition
TITLE OF THE PRESENTATION 25 EXPLORATION DRILLING 2008 – RESOURCE DEFINITION For personal use only ¾ 60,000 m drilling at Apurimac p ¾ 5,000m drilling at Cuzco ¾ Pre-feasibility studies (Due second quarter 2008) ¾ Budgeted expenditure 2007/2008 : US $7 million
Slide 27: Strike is Targeting an Iron Ore Province
TITLE OF THE PRESENTATION 26 STRIKE IS TARGETTING AN IRON ORE PROVINCE For personal use only Strikes methodology is province rather than deposit focused ¾ In Apurimac region, Strike has secured over 50 concessions covering majority of known regional iron ore occurrences ¾ Highly focused regional exp
Slide 28: 172Mt @ 62.28% Fe JORC Inferred Resource in Apurimac
TITLE OF THE PRESENTATION 27 172Mt @ 62.28% Fe JORC Inferred For personal use only Resource– Resource –and growing- growing-in Apurimac Opaban I and Opaban III : First 2 of 37 concessions drilled ¾ Detailed gravity and magnetic surveys followed by 31 diamond core holes and 45 RC holes have been dril
Slide 29: Resource Estimate Cuzco: 500-650Mt
TITLE OF THE PRESENTATION 28 RESOURCE ESTIMATE CUZCO: 500 500--650MT For personal use only ¾ Flat tabular radial bodies within a 4km diameter area around an intrusive core ¾ Work done to date ¾ Geophysical surveys ¾ Rock chip sampling of outcropping mineralisation ¾ 2,630m of drilling just completed
Slide 30: Resource Estimates at Cuzco Project
TITLE OF THE PRESENTATION 29 RESOURCE ESTIMATES AT CUZCO PROJECT For personal use only ¾ Mapped mineralisation in 3 of 6 concessions when projected to 5m will be sufficient to feed Stage 1 ¾ Based on 52 drill holes, mapping and detailed ground magnetic surveys the following have been outlined thus f
Slide 31: Flat Lying Orebodies
TITLE OF THE PRESENTATION 30 FLAT LYING OREBODIES For personal use only Cross sections drawn of geophysical modelling indicate iron ore bodies are likely to be horizontal or gently dipping commencing at or near the surface with potentially low waste to ore ratio for mining operations.
Slide 32: Capital Structure
TITLE OF THE PRESENTATION 31 CAPITAL STRUCTURE For personal use only ASX Codes: SRK, SRKO SOrdinary fully paid shares: 86.3 million Listed Options: 3.0 million Unlisted Options: 17.3 million Fully Diluted Issued Capital 106 million Market Capitalisation ( Fully Diluted): ~A$226 million (at $2.10/sha
Slide 33: Disclaimer
TITLE OF THE PRESENTATION 32 Disclaimer For personal use only This material contains certain forecasts and forward-looking information, including regarding possible or assumed d future f t performance, f costs, t production d ti levels l l or rates, t prices, i reserves and d resources or potential
Slide 34: Strike Resources
For personal use only TITLE OF THE PRESENTATION 33 Strike Resources A B N 94 088 488 724 A.B.N Level 14, 221 St Georges Terrace Perth WA 6000 Telephone +61 8 9214 9700 Facsimile +61 8 9322 1515 Email: info@strikeresources info@strikeresources.com.au com au Web: www.strikeresources.com.au
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