Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Mines & Money Hong Kong 2013
31 slides from Equatorial Resources's conference presentation, Mar 21, 2013
Slide 1: An Iron Ore Future in Africa
For personal use only AN IRON ORE FUTURE IN AFRICA Corporate Presentation, Mines & Money Hong Kong March 2013
Slide 2: Disclaimer
DISCLAIMER • This document should be read in conjunction with any public • The Company does not purport to give financial or investment the JORC Code. Mr Glassock consents to the inclusion in the For personal use only announcements and reports (including financial reports and advice. No account has
Slide 3: Large Scale Iron Projects in Republic of Congo
LARGE SCALE IRON PROJECTS IN REPUBLIC OF CONGO Exploring and developing two 100% For personal use only owned iron projects Large footprints in key iron clusters in Africa Staged development plan for Mayoko- Moussondji based on access to existing operational rail and port Massive regional pot
Slide 4: Years of Iron Ore Pricing (CFR China Equivalent)
30 YEARS OF IRON ORE PRICING (CFR CHINA EQUIVALENT) For personal use only 200 150 $/dmt 100 50 0 1980 1985 1990 1995 2000 2005 2010 2012 Iron ore $/dmt 62% Fe (CFR China) Source: Metal Bulletin, The Steel Index, Credit Suisse 4
Slide 5: The Republic of Congo
THE REPUBLIC OF CONGO BIENVENUE A BRAZZAVILLE! For personal use only Stable “Oil Country” actively growing its mining sector Former French colony recently celebrated 50 years of independence Oil majors including Total, Eni and Chevron operating uninterrupted for over 30 years and currently inv
Slide 6: Mining in the Republic of Congo
MINING IN THE REPUBLIC OF CONGO Major miners now invested in Republic of Congo For personal use only Mining sector is central to the government’s Economic Diversification Program (Chemin d’Avenir) New mining code adopted in 2005 Favourable fiscal terms for miners • 3% Royalty on Revenues • 1
Slide 7: Mayoko-Moussondji Iron Project
For personal use only MAYOKO-MOUSSONDJI IRON PROJECT
Slide 8: Mayoko-Moussondji Iron Project
For personal use only MAYOKO-MOUSSONDJI IRON PROJECT 8
Slide 9: Exploration
For personal use only EXPLORATION 54,000 metres of drilling Airborne geophysics and data modelling Extensive bulk sampling and met test work Addition of 2 new iron permits 9
Slide 10: Infrastructure Development
For personal use only INFRASTRUCTURE DEVELOPMENT World class camp facilities Major airstrip refurbishment On-site sample prep laboratory installed Road construction and upgrade program 10
Slide 11: Supporting Community & Environment
For personal use only SUPPORTING COMMUNITY & ENVIRONMENT Employment of over 200 staff Graduate training programs - geology & business ESIA Baseline & Scoping Work complete Congo Mining Community Relations Committee 11
Slide 12: Geological Model Confirmed
For personal use only GEOLOGICAL MODEL CONFIRMED 12
Slide 13: Maiden Mineral Resource Estimate
MAIDEN MINERAL RESOURCE ESTIMATE Initial JORC Hematite Resource of 102 MILLION TONNES at 40.6% Fe For personal use only Total JORC Mineral Resource Estimate (Hematite and Magnetite) of 767 Mt at 31.9% Fe Resource covers only 16km of more than 46km of identified mineralised strike Drilling co
Slide 14: Premium Iron Products
PREMIUM IRON PRODUCTS Metallurgical testing on near surface hematite For personal use only delivered a premium fines iron product of 64.1% Fe with low impurities and a mass recovery of 60.7% Standard processing techniques with low technical risk Samples crushed, screened and wet processed usin
Slide 15: Development Plan
DEVELOPMENT PLAN Development Plan submitted to ROC government For personal use only details a staged development approach: Stage 1: 300,000 tpa hematite (premium >63% Fe) operation utilising existing rail and port infrastructure Stage 2: Increase to 2 Mtpa with incremental investment in rail and
Slide 16: Railway Access and Development
RAILWAY ACCESS AND DEVELOPMENT Equatorial has signed two agreements (MOU’s) with For personal use only the rail authority (CFCO) Rail Access and 25-year User framework Agreement Railway Funding Agreement Plan to commence transport using existing rail infrastructure and invest over time to incr
Slide 17: Port of Pointe-Noire Access and Development
PORT OF POINTE-NOIRE ACCESS AND DEVELOPMENT Agreement signed with the port authority (PAPN) to cooperate on studies on the For personal use only infrastructure required to export iron ore from the existing port Port feasibility studies completed for Stage 1 and Stage 2 Stage 1 & 2 will utilise
Slide 18: Scoping Study
SCOPING STUDY Scoping Study expected to be completed by mid 2013 For personal use only Study will include estimates of operating and capital costs and timeline to production Maiden Resource being integrated into ongoing mine & processing engineering studies Rail & Port study components compl
Slide 19: Badondo Iron Project
For personal use only BADONDO IRON PROJECT
Slide 20: Badondo Iron Project
For personal use only BADONDO IRON PROJECT 20
Slide 21: Iron Mountains of the Congo Craton
For personal use only IRON MOUNTAINS OF THE CONGO CRATON 21
Slide 22: The New Pilbara in Africa
THE NEW PILBARA IN AFRICA Hamersley Basin - Pilbara Congo, Cameroon Craton For personal use only Pilbara Congo Craton • Embargo on iron ore exports lifted in 1960 • World class iron resources • 25 mines owned by 4 companies producing • Momentum building for development more than 500mtpa • 5 heavy du
Slide 23: Regional Project Potential
For personal use only REGIONAL PROJECT POTENTIAL PROJECT COMPANY INFERRED & INDICATED OTHER INFORMATION RESOURCE Revised takeover offer by Hanlong Mbalam 775Mt @ 57% Fe Mining for A$1.4 Billion Strategic investment by Glencore Avima 580Mt @ 60% Fe and Severstal Exploration Target* of 1,300 – Badondo
Slide 24: Exploration Program
EXPLORATION PROGRAM Over 22km of prospective iron strike For personal use only identified within three distinct target prospects Mapping program revealed a thick and extensive enriched hematite blanket Hematite cap in visible cliff exposures appearing to extend over full 10km strike length of the
Slide 25: Initial Drilling Program Completed
For personal use only INITIAL DRILLING PROGRAM COMPLETED Scout diamond drilling program completed in December 2012 Program designed to test the thickness, quality and extent of high grade hematite mineralisation along strike of the Badondo prospect 14 holes completed for a total of 1,092 metre
Slide 26: High Grade Iron Confirmed from Initial Drill Results
HIGH GRADE IRON CONFIRMED FROM INITIAL DRILL RESULTS For personal use only Excellent assay results including: over 42 meters at 63% Fe from Hole 1; and over 49m at 64% Fe from Hole 2 Low contaminant levels Hole ID From To Interval Fe SiO2 Al2O3 P S LOI Metres % % % % % 1,000°C BADDD00001 0 42 42
Slide 27: For personal use only
For personal use only CORPORATE UPDATE
Slide 28: Experienced Management Team
For personal use only EXPERIENCED MANAGEMENT TEAM Ian Middlemas Chartered Accountant with over 20 years mining industry experience; extensive corporate and Chairman management expertise John Welborn Extensive corporate experience as a senior executive in finance and the natural resources industry Ma
Slide 29: Capital Structure
For personal use only CAPITAL STRUCTURE EQUATORIAL RESOURCES LTD (ASX: EQX) As at 15 Mar 2013 Current Issued Capital 119.8 million shares Fully Diluted 130.2 million shares Market Capitalisation (Undiluted @ A$1.24) A$148.6 million Cash at 28 February 2013 A$58.1 million Top 20 Shareholders: 80.1% 1
Slide 30: The Equatorial Advantage
For personal use only THE EQUATORIAL ADVANTAGE Access to Existing Infrastructure Massive Scale Potential of Projects High Quality Product Potential Well Funded Strong Rationale for Regional Cooperation AFRICA’S NEXT MAJOR IRON COMPANY 30
Slide 31: For personal use only
For personal use only Perth: London: Pointe-Noire: Brazzaville: Level 2, BGC Centre, 28 The Esplanade 38 Jermyn Street London, 03 Avenue de Loango Rue Loth Perth, WA 6000, Australia SW1Y 6DN United Kingdom 2eme Etage, Ndjindji Quartier Télévision GPO Box 2519, Perth, WA 6831 Phone: +44 207 478 3900