Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Sydney Mining Club lunch (March 2012)
38 slides from Equatorial Resources's conference presentation, Mar 1, 2012
Slide 1: Sydney Mining Club Presentation (ASX Release)
For personal use only ASX: EQX | 1 March 2012 | ASX RELEASE SYDNEY MINING CLUB PRESENTATION Equatorial Resources Limited (“Equatorial”) (ASX:EQX) is pleased to release the attached presentation to be given by Equatorial Resources Limited's Managing Director and CEO, Mr John Welborn, at the Sydney Mi
Slide 2: Africa's next major iron ore company
Africa’s ca s next e t major ajo iron o co company pa y For personal use only IRON AWE ASX: EQX Sydney Mining Club - 1 March 2012
Slide 3: Disclaimer
For personal use only DISCLAIMER IMPORTANT NOTICE • This document should be read in conjunction with any public the Company or disclosed in the Company’s published material. announcements and reports (including financial reports and disclosure • The Company does not purport to give financial or inve
Slide 4: Iron Ore!
For personal use only IRON ORE! 3
Slide 5: Iron Ore
For personal use only IRON ORE “Without Without iron ore there is no modern civilisation. Without iron ore there's no China boom, no housing boom, and no global boom ” boom. The Daily Reckoning Australia 4
Slide 6: Chinese Industrial Revolution
For personal use only CHINESE INDUSTRIAL REVOLUTION Port Hedland Shanghai 5
Slide 7: Global Iron Ore Production
For personal use only GLOBAL IRON ORE PRODUCTION U.S. Geological Survey, Mineral Commodity Summaries, January 2012 6
Slide 8: China & India Steel Production
For personal use only CHINA & INDIA STEEL PRODUCTION Insert graph RMG 7
Slide 9: Global Iron Ore Demand
For personal use only GLOBAL IRON ORE DEMAND 8
Slide 10: If world demand doubles by 2030, where could the extra production come from?
For personal use only IF WORLD DEMAND DOUBLES BY 2030, WHERE COULD THE EXTRA PRODUCTION COME FROM? U.S. Geological Survey, Mineral Commodity Summaries, January 2012 9
Slide 11: China's Domestic Production Challenges
For personal use only CHINA’S DOMESTIC PRODUCTION CHALLENGES Many small mines Low grades High proportion underground High costs 10
Slide 12: China's Solution
For personal use only CHINA’S SOLUTION “By By 2015 2015, China wants to import 50% of its iron ore from Chinese owned mines elsewhere in the world.” Wu Xichun, China Iron & Steel Association 11
Slide 13: Africa Is a Prime Target
For personal use only AFRICA IS A PRIME TARGET “An iron ore boom in West Africa, which may have deposits to rival Australia’s ore-rich Pilb region, Pilbara i iis motivating ti ti Af African i Mi Minerals, l as wellll as miners i Ri Rio Ti Tinto t andd Arcelor Mittal, to spend $25 billion on 3,170 mi
Slide 14: Global Market Conclusions
For personal use only GLOBAL MARKET CONCLUSIONS Urbanisation driving long term demand, demand still a way to go go… Supply constraints increasing Focus on resources in Africa 13
Slide 15: Rock > Rail > Port
For personal use only ROCK > RAIL > PORT
Slide 16: Our Mission: To Be Africa's Next Major Iron Ore Producer
For personal use only OUR MISSION: TO BE AFRICA’S NEXT MAJOR IRON ORE PRODUCER 15
Slide 17: Real Estate 101: Location, Location, Location
For personal use only REAL ESTATE 101: LOCATION LOCATION, LOCATION, LOCATION LOCATION! 16
Slide 18: Location Rule 1: Choose the Right African Country
For personal use only LOCATION RULE 1: CHOOSE THE RIGHT AFRICAN COUNTRY REPUBLIC OF CONGO Congo Brazzaville now on the investor radar and is attractingg significant g inward investment Economic diversification away from dependence on oil New mining code adopted in 2005 Nomination: Country Aw
Slide 19: Location Rule 2: Choose the Right Tenements
For personal use only LOCATION RULE 2: BE RESOURCEFUL CHOOSE THE RIGHT TENEMENTS 3.6 – 6.1 billion tonne iron exploration target* at 30-65% Fe across two 100% owned projects *Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued
Slide 20: Location Rule 3: It's the Infrastructure
For personal use only LOCATION RULE 3: IN AFRICA, AFRICA IT’S THE INFRASTRUCTURE, INFRASTRUCTURE STUPID! EQX has direct access to an operational railway that runs through the Mayoko-Moussondji Iron Project direct to the deepwater port of Pointe Noire. 19
Slide 21: Central & West African Iron Ore: The Race to Production
For personal use only CENTRAL & WEST AFRICAN IRON ORE THE RACE TO PRODUCTION Massive Scale High Quality resources Coarse Grained Ore Bodies Low cost of production 20
Slide 22: The Infrastructure Reality
For personal use only THE INFRASTRUCTURE REALITY New iron production in Africa is coming on stream where two conditions exist: 1 Ore 1. O bbodies di iin proximity i it tto existing i ti railway lines; and 2. Presence of high grade oxide/hematite caps overlaying large magnetite ore bodies Existin
Slide 23: Mayoko-Moussondji Iron Project
For personal use only MAYOKO-MOUSSONDJI IRON PROJECT 22
Slide 24: Pathway to Resource Definition
For personal use only PATHWAY TO RESOURCE DEFINITION Drill program focused on the delineation of high grade, near-surface hematite Two drilling contractors currently operating three rigs for a total contracted program of 33,000m (extendable to 70,000m) Sample prep lab being commissioned on sit
Slide 25: Robust Geological Model
For personal use only ROBUST GEOLOGICAL MODEL Geological model based on existence of enriched hematite caps overlaying extensive zones of magnetite BIF The following potential ore types are now recognised at Makengui: DSO: Enriched hematite, +50% Fe pDSO: Enriched hematite 40% - 50% Fe that
Slide 26: Drilling Progress
For personal use only DRILLING PROGRESS • 3 drill rigs currently operating 24/7 • > 14,000m completed at 28/2/2012 • 33 000 under 33,000m d contract t t • th 4 drill rig arriving April 2012 25
Slide 27: Metallurgical Testing Program
For personal use only METALLURGICAL TESTING PROGRAM Professor John Clout engaged as metallurgical consultant ((ex Fortescue Head of Resource Strategy) Met program underway Initial results in March 2012 26
Slide 28: Railway Access and Development
For personal use only RAILWAY ACCESS AND DEVELOPMENT Equatorial has a current, valid agreement with rail authorityy ((CFCO)) allowingg access to the railway line Framework in place for 25 year User Agreement Rail Engineering & Investment Study completed Railway Funding Agreement signed with
Slide 29: Port of Pointe-Noire Access and Development
For personal use only PORT OF POINTE-NOIRE ACCESS AND DEVELOPMENT One of the largest ports in Central & West Africa Agreement signed with PAPN to cooperate on studies on the infrastructure required to export iron ore from the existing port Pre-Feasibility study completed by Murray & Roberts Ma
Slide 30: Badondo Iron Project
For personal use only BADONDO IRON PROJECT *Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficien
Slide 31: Badondo Iron Project: Exploration Target
For personal use only BADONDO IRON PROJECT 1.3 – 2.2 BILLION TONNES* exploration target of iron mineralisation (grade 30% -65% Fe) *Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The esti
Slide 32: Emerging Iron Ore Region
For personal use only EMERGING IRON ORE REGION Sundance Resources under a$1.65bn takeover by Hanlong Mining Glencore invests undisclosed amount in Core Mining Bloomberg reports BHP Billiton in talks with Gabon over an interest in Belinga project BADONDO HIGHLY LEVERAGED TO IMMINENT REGIONAL DE
Slide 33: Drill Program Commencing Early 2012
For personal use only DRILL PROGRAM COMMENCING EARLY 2012 Strategy: Low cost cost, highly efficient scout drill program completed within short time frame Diamond drill rig being mobilised to site Drill program based on detailed SRK field program Drilling to commence in early 2012 *Exploratio
Slide 34: Rapid Development: What We Have Achieved in Months
For personal use only RAPID DEVELOPMENT WHAT WE HAVE ACHIEVED IN 18 MONTHS Acquired two iron projects Completed extensive geophysics programs Modelled multi-billion tonne exploration targets* Drilled > 14,000m at Mayoko-Moussondji Signed detailed rail and port agreements Increased I d ca
Slide 35: Proven Board & Management
PROVEN BOARD & MANAGEMENT For personal use only John Welborn Managing Director & CEO Henri De Sean Halpin p Dinechin GM Geology Country Manager, ROC Ian Middlemas Ian Cooper Hugo Schumann Non Executive Executive – Head Exploration Manager, M M Mayoko- k Chairman of Business Moussondji Development Ka
Slide 36: Capital Structure
For personal use only CAPITAL STRUCTURE EQUATORIAL RESOURCES LTD (ASX: EQX) 29 February 2012 Fully Paid Ordinary Shares 114.3 million Unlisted Options (Various Expiry and Exercise Prices) 9.9 million Employee & Contractor Rights Plan Shares (Various Expiry) 4.4 million V d Milestone Vendor Mil t Sha
Slide 37: The Equatorial Advantage
For personal use only THE EQUATORIAL ADVANTAGE Access to Existing Infrastructure Massive Scale of Projects High Quality Ore Well Funded Rapid Development AFRICA’S NEXT MAJOR IRON COMPANY 36
Slide 38: Contact details
ASX: EQX www.equatorialresources.com.au For personal use only AUSTRALIA: REPUBLIC OF CONGO: UNITED KINGDOM: Level 2, BGC Centre 03 Avenue de Loango, 2eme. 6th Floor, 56 Haymarket 28 The Esplanade Etage, Ndjindji, Arrondissement 1 London SW1Y 4RN e t WA 6000 Australia Perth ust a a u u ba, Pointe-Noi
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