Slide 1: An Australian Iron Ore Development Company
For personal use only An Australian Iron Ore Development Company June 2010
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information For personal use only This presentation has been prepared by Cazaly Resources Limited (“Cazaly”). It contains forecasts and forward looking statements which are no guarantee of future performance and which involve certain risks. Actual results and future outcomes
Slide 3: Iron Ore
For personal use only Iron Ore
Slide 4: Parker Range Iron Ore Project Value
Value PARKER RANGE IRON ORE PROJECT For personal use only 100% Australian owned and controlled NPV8 A$216m * Pre-tax IRR: 78% * Based upon conservative average Fe pricing Initial 5.5 year mine life * Payback less than one year Cazaly market capitalisation ~$60m * Note; PFS stage estimates. Final cos
Slide 5: Marketing - Reference Price Forecast (PFS stage)
Marketing - Reference Price Forecast (PFS stage) Forecast Benchmark Iron Ore Fines Price - UScents/dmtu FOB (Nominal Terms) For personal use only Forecasts as at 22nd October 2009 220.00 210.00 200.00 190.00 180.00 170.00 160.00 150.00 UScents/dmtu 140.00 130.00 120.00 110.00 100.00 90.00 80.00 Caza
Slide 6: Why the Yilgarn: Infrastructure Advantages
Parker Range Iron Ore Project WHY the Yilgarn… For personal use only Infrastructure Advantages DSO Growth RAIL PORT • Open access to road, rail & port facilities Resources potential access access • Infrastructure independently PILBARA X Access issues X Access issues owned by operators looking fo
Slide 7: Major under explored iron province
Parker Range Iron Ore Project For personal use only Major under explored iron province • Located in the Yilgarn Iron Ore Province situated ~400km east of Perth • No major infrastructure ‘bottlenecks’ compared to the Pilbara or Mid-West • Current production from just ONE mine; Koolyanobbing (Cliffs’
Slide 8: Mount Caudan Iron Ore Deposit
Parker Range Iron Ore Project For personal use only Mount Caudan Iron Ore Deposit Mount Caudan 100% owned by Cazaly Iron Ore Deposit 4km strike Mineable resource of 23.2 Mt targeting fines only product of 56.6% Fe (62.2% CaFe) Waste to Ore stripping ratio of 1.34 LOM Total current resource of 40.4mt
Slide 9: Indicative Product Specs
Parker Range Iron Ore Project Indicative Product Specs For personal use only Single Fines Only Product Targeted Option Fe% CaFe% SiO2% Al2O3% P% MnO% LOI% Fines 56 – 57.5 61.4 – 63.3 3.5 - 6.5 1 .4 - 2.5 0.016 – 0.029 1.3 - 2.2 8.8 – 9.2 Only Marketable product with acceptable levels of chemical imp
Slide 10: DFS Potential Upside
DFS Potential Upside For personal use only PFS Mine Open Pit Design: Fines only product N DFS Final Optimisations to be completed High grade ore lying below PFS pit shell Potential for further upgrades; • Tonnage increase • Mine life extension Initial Mining Area (Stage 1- Blue) Ramp Exit Plan View
Slide 11: Flowsheet
For personal use only Flowsheet
Slide 12: Scope and Capital Requirements
Parker Range Iron Ore Project Scope For personal use only • Open Pit Mining: Ramping from 2mtpa to 4mtpa • Plant: Crushing, screening & stockpiling • Road Haul: 63km on established roads to rail • Rail Haul: On public rail to port • Port: Preferred port option at Kwinana • Other: Grid power and acco
Slide 13: Strategic Partnerships
Strategic Partnerships COMPLETE MINE to MARKET SOLUTION For personal use only HWE MINING Asciano Fremantle Ports* EUROMIN/VITOL Mine to Rail Rail to Port Ship Loading Product marketing EPCOM contract. Provision of rail Still awaiting decision on ~$30m Port finance facility. Financing for constructio
Slide 14: Strategic Partnerships – Project to be fully funded
Strategic Partnerships – Project to be fully funded Cazaly leading highly experienced project team For personal use only Australia’s largest mining contractor, owned by Leighton Contractors (Mkt Cap. ~$11b). HWE MINING Currently mining over 110mt of iron ore per annum. Engineering, Procurement, Cons
Slide 15: Status
Status For personal use only DFS ongoing Full engineering and costings Relocate Workshop Facility being conducted with partners Cazaly Iron Ore Storage Awaiting decision on port allocation Sampling Station Infill drilling and metallurgical testwork ongoing Final resource and mine Train Unloader plan
Slide 16: Parker Range Project timeline
Parker Range Iron Ore Project For personal use only Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 3 11 Phase Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Pre-Feasibility Study Definitive Feasibility Study Board Approval Approvals - Environmental A
Slide 17: Summary
Parker Range Iron Ore Project For personal use only Summary • Major Tier 1 preferred partners selected • PFS shows robust project economics: NPV8 A$216M, IRR 78% • Preferred option: Contract operated, 4mtpa, Kwinana port • Excellent infrastructure available: roads, grid power, rail, port, etc… • Sal
Slide 18: Pilbara Iron Ore Further Pathways to Production
Pilbara Iron Ore Further Pathways to Production For personal use only • Numerous projects in world class province • Strategic land positions • Proven iron ore occurrences • Recent channel iron discovery at Hamersley • Further potential in nearby Earaheedy iron province
Slide 19: Pilbara Iron Ore – Winmar, Hamersley project
Pilbara Iron Ore – Winmar, Hamersley project HAMERSLEY CID SYSTEM For personal use only Winmar discovery: 2.8km target, only 1.5km tested to date Global maiden inferred resource of 140mt @ 52.6% Fe (55.6% CaFe) Beneficiation upgrading testwork underway Results include: 60m @ 55.6% Fe (60.3% CaFe) 40
Slide 20: Earaheedy Joint Venture
Earaheedy Joint Venture Potential Major New Iron Ore Province For personal use only Ham ersle y Parker Range •Tenement B •Target Area • Recently announced 50/50 JV with Vector Resources • Earaheedy basin comparable in age & size to the Hamersley Basin • Initially explored by BHP & Amax in the 1970’s
Slide 21: Summary
Cazaly Resources Limited Summary For personal use only Potential to deliver the 2nd mine in the Yilgarn of WA at PARKER RANGE Preferred option Contract operated, 4mtpa, Kwinana port Robust project economics NPV8 A$216M, IRR 78% for preferred option Excellent infrastructure Roads, grid power, rail, p
Slide 22: Cazaly Resources Limited
CAZALY RESOURCES LIMITED