Admiralty Resources NL · ASX:ADY
Admiralty Resources NL — Investor Presentation (December 2011)
44 slides from Admiralty Resources NL's investor presentation, December 2011
Slide 1: Admiralty Resources NL Investor Presentation
ADMIRALTY RESOURCES NL Seen i peeled Investor Presentation = eZ <7. ADMIRALTY RESOURCES om,
Slide 2: Forward Looking Statements
Forward Looking Statements www.ady.com.au The information in this presentation is published to provide information about Admiralty Resources NL (“Admiralty” or “ADY”) and its subsidiaries. All reasonable effort has been made to provide accurate information, but Admiralty makes no representations or
Slide 3: Agenda
Agenda Introduction to Admiralty Resources NL 1 2 3 4 Projects Business Case Appendix walkthrough
Slide 4: Strategy and Objectives
Strategy and Objectives STRATEGY: Explore and develop our iron ore project in Chile. In pursuit of this strategy, the Company's immediate objectives are to: establish structured and focussed exploration programmes targeting known anomalous areas, at Pampa Tololo (north of Vallenar) and Harper South
Slide 5: Projects Overview
Projects Overview Mineral interests in 2 countries: Australia and Chile Australia Bulman - Lead and zinc Pyke Hill - Cobalt and nickel
Slide 6: Projects Overview (Continued)
Projects Overview (Continued) Mineral interests in 2 countries: Australia and Chile Chile 3rd Region (Atacama) Harper South and Pampa Tololo – Iron Ore
Slide 7: Projects Overview (Continued) - Harper South
Projects Overview (Continued) Flagship project: Admiralty Minerals Chile Pty Ltd Agencia en Chile Harper South Mariposa, La Chulula, Soberana, Negrita, 6 targets: Mal Pelo and La Vaca Mariposa 168m tonnes of mainly indicated resources (JORC compliant) Engineering mine plan for an initial production
Slide 8: Projects Overview (Continued) - Pampa Tololo
Projects Overview (Continued) www.ady.com.au Flagship Admiralty Minerals Chile Pty Ltd project: Agencia en Chile Pampa Tololo 4 targets: Cochrane, O’Brien, Simpson, Tolita 3,455 hectares, neighbouring Los Colorados mine, owned by Compañía Minera del Pacífico, Chile’s largest iron ore producer (appro
Slide 9: Comparison with peers
Comparison with peers www.ady.com.au Main iron projects Land Mineral Stage Cash on Market resources1 hand2 cap3 Admiralty • Harper South 6,600 Ha 168 mt Exploration / $5m $29.1m Resources • Pampa Tololo Chile Scoping Study (ADY) Latin • Guadalupito 131,000 Ha Not defined Exploration $3.4m $17m Resou
Slide 10: Cash Position
Cash Position www.ady.com.au 30 June 30 June Percentage 30 September 2011 2011 2010 variance Cash on hand 4,300,000 5,033,000 1,261,000 ↑ by 299% Liabilities / Debt Nil Nil Nil - Cash inflows1 Nil 1,972,0002 2,882,0003 ↓ by 32% Quarterly cash 727,000 591,000 1,732,000 ↓ by 66% burn rate Exploration
Slide 11: Share Price
Share Price www.ady.com.au 9 8 7 AUD cents 6 5 15/12/2010 4 capital reconstruction 3 2 1 0
Slide 12: Agenda Business Case
Agenda Business Case 1 2 3 4 Introduction to Projects Appendix Admiralty Walkthrough Resources NL
Slide 13: Iron Oxide – Magnetite versus Hematite
Iron Oxide – Magnetite versus Hematite Iron is the fourth most abundant element on the Earth’s crust; It takes about 1.5 tonnes of iron and 0.5 tonne of coke to produce a tonne of pig iron, the raw material that comes out of a blast furnace; Hematite and Magnetite are the most important iron mineral
Slide 14: Magnetite – An Advantage Edge
Magnetite – An Advantage Edge www.ady.com.au Magnetite projects are capable of producing high grade concentrates up to 68-69% Fe, which: have a higher Fe grade than many hematite iron deposits; have lower impurities; and attract a price premium on the market. Hematite iron is globally declining in a
Slide 15: Iron Ore Pricing
Iron Ore Pricing www.ady.com.au Platts IODEX 62 Fe% CFR North China The World Steel Association (June 2, 2008 to November 4, 2011 forecasts: Steel use will grow by 6% in 2011 and 2012; and Consumption of iron will near a record of 1.5b tonnes in 2012. Date Commodity1 $/dmt2 Dec 07, 2011 IODEX 62% Fe
Slide 16: Agenda Project Walkthrough
Agenda Project Walkthrough 1 2 3 4 Introduction to Business Case Appendix Admiralty Resources NL
Slide 17: Structure of Operations - Chile
Structure of Operations - Chile Board of Directors Stephen C. Prior Claudio Ferrada Admiralty Resources NL Managing Director Agent of AMC* PROJECT DEVELOPMENT LEGAL AND ACCOUNTING • External Exploration Counsel: • Legal Counsel: Goldberg Resources Noguera, Larraín, Dulanto y Cia. • Drilling Campaign
Slide 18: Location: Chilean Iron Ore Belt
Location: Chilean Iron Ore Belt www.ady.com.au Note: Map is for illustration purposes and it is not to scale www.ady.com.au
Slide 19: Existing Infrastructure
Existing Infrastructure www.ady.com.au 6,800 hectares in the Chilean iron belt with internal roads network and no high mountain formations 46 km from the port of Huasco 7 km from the railway line owned by Ferronor S.A. and 3 km from the Pan American highway, with direct access 10 km within the town
Slide 20: Admiralty's Mineral Tenure in Chile
Admiralty’s Mineral It covers 6,600 Ha and Tenure in is composed of the following groups: Chile Pampa Tololo (3,455 Ha) Harper South (2,498 Ha) Leo Sur (647 Ha) www.ady.com.au
Slide 21: Harper South
Harper South www.ady.com.au Most of the geological work produced to date has been within the Harper South concessions A review of the geological information available to date by Goldberg Resources has identified six ore bodies: Mariposa, La Chulula, Negrita, Soberana, La Vaca and Mal Pelo Mariposa i
Slide 22: Mariposa (Harper South)
Mariposa (Harper South) www.ady.com.au Drilling data available consists of a total of 5,588 m of drillings, distributed in 33 drill holes OBJECTIVES: 1. Increase of mineral resources / upgrade of existing resources to reserves Investment required: US$2m US$600k for the engineering mine plan US$900k
Slide 23: Mariposa Deliveries (Harper South)
Mariposa Deliveries (Harper South) www.ady.com.au Review of available data gathered Figure 1: in the past 3D aerial view of High - Topography Mariposa’s topography. resolution - Lithology ground -Metallurgical magnetic testing surveys 3,000m diamond drilling programme Figure 2: Contour lines every 5
Slide 24: Mariposa High Resolution Ground Magnetic Survey
Mariposa High Resolution Ground Magnetic Survey (Harper South) www.ady.com.au 3D view of the identified targets A 37 lines high resolution ground magnetic survey was undertaken by Quantec Geoscience Chile in September 2011; Mariposa was identified as a complex oval shape with two branches, steeply d
Slide 25: Mariposa Drilling Programme Factsheet
Mariposa Drilling Programme Factsheet (Harper South) www.ady.com.au Commencement 19 November 2011, expected to be completed in February 2012. date: Drilling Superex S.A., a respected drilling contractor: company with experience working in projects in Chile for Anglo American and XSTRATA , among othe
Slide 26: Mariposa Drilling Programme Factsheet
Mariposa Drilling Programme Factsheet (Harper South) www.ady.com.au Area 12 hectares (120,000 m2), about extension: 200m in the East/West direction and 600m in the North/South direction. Number of holes: 10 drill holes with a depth 3D view of topography, distribution between 255/320m magnetic suscep
Slide 27: Harper South – Other Targets Deliveries
Harper South – Other Targets Deliveries High resolution ground magnetic surveys in La Chulula COMPLETED High resolution ground magnetic surveys Negrita, Soberana, Mal Pelo and La Vaca AWAITING RESULTS Construction of sample room and office camp UNDERWAY Reverse circulation drilling programme of 3,00
Slide 28: La Chulula High Resolution Ground Magnetic Survey
La Chulula High Resolution Ground Magnetic Survey (Harper South) www.ady.com.au This is the most important target in relation to size/susceptibility. 3D view of the identified targets A north/south vertical body, with dimensions of 250 x 750m, located near the surface, with depths up to 700m and exh
Slide 29: Chile - Pampa Tololo
Chile - Pampa Tololo www.ady.com.au Pampa Tololo lies 40 km north of Vallenar and it covers 3,455 hectares It is located at 200 metres from Los Colorados mine, owned by CMP, the main iron ore producer in Chile Chile ranks 16th iron ore producer country in the U.S. Geological Survey, producing about
Slide 30: 1960s United Nations anomalies
13 anomalies identified within the 1960s Atacama Fault United Nations Survey: 4 - Chile’s C o iron belt c h r a n e 5 – O’Brien Owned by Admiralty 2 - Simpson
Slide 31: Pampa Tololo – Deliveries
Pampa Tololo – Deliveries www.ady.com.au ACTION STATUS 1. High resolution ground COMPLETED BY Quantec magnetic survey Geoscience Chile Ltda. 2. Reverse circulation Proposals received drilling programme of 10 holes / 3,000 metres Commencement of drilling for for: Simpson SCHEDULED FOR FIRST • Simpson
Slide 32: Pampa Tololo High Resolution Ground Magnetic Survey
Pampa Tololo High Resolution Ground Magnetic Survey www.ady.com.au 3D view of the identified targets Simpson This is the most important target in relation to size/susceptibility. An oblate spheroid shape of 800m in diameter, located at a depth of 200-250m and exhibiting magnetic susceptibility of ab
Slide 33: Summary - Exploration Timetable
Summary - Exploration Timetable www.ady.com.au ALLOCATED PROJECT TASK COMPLETION BUDGET Pampa Tololo High resolution ground magnetic survey $60,000 Completed. Harper South High resolution ground magnetic survey $40,000 Completed. Harper South - Underway. 2,850 m diamond drilling campaign $900,000 Ma
Slide 34: Australia – Bulman
Australia – Bulman www.ady.com.au Lead and zinc project, 320 km from Katherine (NT) 2 granted mineral explorations licences and 2 mineral leases, covering 250 km2 Located in the McArthur Basin, well-known for hosting lead and zinc leading operations, namely McArthur River and Myrtle projects Work pe
Slide 35: Australia – Bulman (Continued)
Australia – Bulman (Continued) www.ady.com.au Recommendations for future exploration: Conduct an airborne aeromagnetic survey – commissioned to Fugro Airborne Surveys in August 2011. STATUS: COMPLETED – AWAITING RESULTS Aircore drilling programme of new anomalies and redrilling of some historical an
Slide 36: Australia – Pyke Hill
Australia – Pyke Hill www.ady.com.au The Pyke Hill Project is located approximately 40km from the Murrin Murrin nickel operations, near Leonora, Western Australia. Admiralty has a 50% interest in the mining lease. Cougar Metals NL (ASX:CGM) is the operator of the project. Prospective for a high-grad
Slide 37: Agenda Appendix
Agenda Appendix 1 2 3 4 Introduction to Business Projects Admiralty Case Walkthrough Resources NL
Slide 38: Cash Inflows – Royalty Stream from VIC
Cash Inflows – Royalty Stream from VIC www.ady.com.au SCM Vallenar Iron Company (“VIC”), a former subsidiary of Admiralty, was sold to Australis Mining Ltd (“Australis”) (formerly Icarus Derivatives Ltd) in a transaction approved by Admiralty shareholders and completed on 16 November 2010. TRANSACTI
Slide 39: Corporate Directory
Corporate Directory www.ady.com.au BOARD OF DIRECTORS CONTACT Professor J. Ross Harper, Chairman Level 16, 379 Collins Street, Stephen C. Prior, Managing Director Melbourne VIC 3000, Australia Michael S. Perry, Non-executive Director Dr Shaoqing Li, Non-executive Director Tel: +61 3 9620 7144 Email:
Slide 40: Product Quality Specification
Product Quality Specification Fe ............... 64.02 PCT Silica ............ 5.92 PCT Aluminium ... 1.35 PCT Phosphorus ... 0.05 PCT Sulphur .........0.04 PCT www.ady.com.au www.ady.com.au
Slide 41: Drilling at Mariposa
Drilling at Mariposa Drill rig placed at AD-04. Core samples from AD- 06 showing Fe grades of 35-45% from 68m deep onwards. Field workers delineating AD-06, the third hole of the campaign, currently at 196m.
Slide 42: Drilling at Mariposa
Intense Fe mineralisation being shown at frem $9.5m Drill rig working on platform at hole AD-06. to 95.75 m deep, with grades between 40-50% Fe. Veins with mineralization between 10-15% grade also shown between 95,75-100.25m deep. View of campsite and sample room. Drilling at Mariposa “GP, DMIRALTY
Slide 43: Drilling at Mariposa
Intense Fe mineralisation being shown at 145m-173m deep, These core samples belong to a 29m long fragment, showing an estimated 45-50% Fe grade. Drill rig and water truck. Each day, we are using 60 m° of water. :
Slide 44: Drilling at Mariposa
Drill rig in action. Data logging field workers. Drilling at Mariposa
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