Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Rising Stars Conference 2009
28 slides from Bci Minerals's conference presentation, Sep 25, 2009
Slide 1: Nullagine Iron Ore Project - Rising Stars Conference
For personal use only Nullagine Iron Ore Project Rising Stars Conference September 2009 Mike Young Managing Director
Slide 2: BC Iron Limited overview
BC IRON LIMITED For personal use only !! A junior iron ore developer – near production !! Direct Shipping, high-quality Sinter Blend Ore !! Channel iron deposit – Yandi-style pisolite !! 50:50 Joint venture between BC Iron Nullagine Pty Ltd (BCIN) and Chichester Metals Pty Ltd (FMG) !! Infrastructur
Slide 3: History of BC Iron – staying focussed
BC IRON LIMITED For personal use only History of BC Iron – staying focussed !! BC Iron lists on ASX in December 2006 !! Resource drilling identifies DSO at Outcamp - May 2007 !! MoU for rail and port access with Fortescue Metals Group - July 2007 !! Drilling to Ore Reserves - 2007 through 2009 !! Fe
Slide 4: BC Iron - Capital & Management
BC IRON - CAPITAL & MANAGEMENT For personal use only Capital Structure Number Board Shares 80.3M Tony Kiernan – Chairman Options 5.7M Mike Young – Managing Director Garth Higgo – Non-exec Director Fully Diluted Total 86.0M Market Cap @ $1.20 $96 M Terry Ransted – Non-exec Director Steven Chadwick –
Slide 5: Nullagine Iron Ore Project
NULLAGINE IRON ORE PROJECT For personal use only Bonnie Creek CID !! Reserves of 36 Mt @ 57% Fe Bonnie Creek !! Resources of 51 Mt DSO @ 57.0% Fe Shaw River !! High CaFe, low Al2O3 & ultra-low P !! Mesa-style mineralisation Nullagine Nullagine River & Shaw River CID River FMG Chichester !! DSO & upg
Slide 6: Joint Venture & Infrastructure
JOINT VENTURE & INFRASTRUCTURE For personal use only Nullagine Joint Venture !! BC Iron & Chichester Metals - 50:50 Coongan Well Warrigal Well unincorporated JV !! Up to $10m contribution each – remainder Bonnie Creek Outcamp project finance Coongan !! BCI manages JV – mining, sales, marketing !! TP
Slide 7: June 2009 – Reserves and Resources Statement
NULLAGINE IRON ORE PROJECT For personal use only June 2009 – Reserves and Resources Statement Probable Ore Reserves Pit Mt Fe CaFe SiO2 Al2O3 P S LOI1000 Outcamp 19.2 56.8 64.8 3.21 1.92 0.01 0.01 12.2 Warrigal 10.3 57.0 64.5 3.67 2.13 0.02 0.01 11.7 Coongan 6.0 57.0 65.1 2.52 1.82 0.01 0.01 12.4 TO
Slide 8: Pilbara Iron Ore Fines
PILBARA IRON ORE FINES For personal use only Nullagine DSO Yandi/Robe Pilbara Fines Element Reserve DSO DSO Fe 57 57 – 58.5 58 - 64 Calcined Fe* 65 64 63-65 SiO2 3.2 3–6 3–4 Al2O3 1.9 1.4 – 2.7 1.3 – 2.1 P <0.02 ~0.04 0.05 – 0.09 LOI 12 9-11 3-8 Size -0.15mm 14 5-20 10-30 Direct Shipping Ore (DSO) !
Slide 9: Seaborne Fines Comparison
For personal use only 62 64 72 60 66 68 70 RRF Calcined Fe BHP Yandi FMG Rocket Fines BC Iron Nullagine Mt Newman Pilbara Blend HI Yandi MAC Sishen SSF Carajas LKAB KBF 9 SEABORNE FINES COMPARISON
Slide 10: Seaborne Fines Comparison
For personal use only 2 4 0 3 5 6 7 1 Carajas Calcined SiO2 LKAB KBF Sishen MAC SSF BC Iron Nullagine Pilbara Blend FMG Rocket Fines Mt Newman HI Yandi RRF BHP Yandi 10 SEABORNE FINES COMPARISON
Slide 11: Seaborne Fines Comparison
For personal use only 0.0 0.5 1.0 1.5 2.0 2.5 3.0 LKAB KBF Carajas Calcined Al2O3 SSF Sishen HI Yandi BHP Yandi FMG Rocket Fines MAC Mt Newman Pilbara Blend BC Iron Nullagine RRF 11 SEABORNE FINES COMPARISON
Slide 12: Seaborne Fines Comparison
For personal use only 0.02 0.04 0 0.03 0.05 0.06 0.07 0.08 0.09 0.01 BC Iron Nullagine Calcined P RRF Carajas BHP Yandi LKAB KBF HI Yandi Sishen FMG Rocket Fines SSF MAC Mt Newman Pilbara Blend 12 SEABORNE FINES COMPARISON
Slide 13: Nullagine Project – Outcamp Prospect
NULLAGINE PROJECT – Outcamp Prospect For personal use only 801,000E 802,000E 803,000E 804,000E 805,000E 7,562,000N 7,561,000N Scale 500 m Outcamp Deposit !! Outcropping mesa –style !! Low waste to ore ratio !! Above water table !! No pit – mining off the top 13
Slide 14: Nullagine Project – Outcamp Prospect
NULLAGINE PROJECT – Outcamp Prospect For personal use only Trial mining Bottom of “pit” Water Table !! Shallow “pits” mainly above surrounding plains - mining ore from day 1 !!Above water table - lower environmental impact !!Low OpEx - low strip ratio, use of surface miners 14
Slide 15: Outcamp Mine – Trial mining and bulk sample
OUTCAMP MINE – Trial mining and bulk sample For personal use only 803,000E 804,000E 805,000E Trial mine and bulk sample !! Testing performance of two types of surface miners 7,562,000N !! Assess geology, reconciliation and metallurgy !! Assessing mill throughput and product sizing Contractors Trial
Slide 16: Surface Miners
SURFACE MINERS For personal use only Environmental benefits !! Improved and safer mesa edge control !! Drainage management – siltation minimised !! Reduced vibration and ecosystem disturbance VERMEER TL1255 commences at Outcamp Well - NIOJV Engineering benefits !! Selective mining – higher recovery
Slide 17: Nullagine Project – Mining
NULLAGINE PROJECT – Mining For personal use only 18
Slide 18: Trial Mining April 2008
TRIAL MINING For personal use only April 2008 19
Slide 19: Trial Mining April 2008
TRIAL MINING For personal use only April 2008 20
Slide 20: Trial Mining April 2008
TRIAL MINING For personal use only April 2008 21
Slide 21: The Blast Furnace
THE BLAST FURNACE For personal use only Blast furnace •! Iron ore & coal are added at the top in alternating layers – lump & coke only •! Hot air added – creates CO reduces iron oxides •! Descending burden melts to create iron metal and slag •! CaO, Al2O3, SiO2 affect furnace efficiency •! High P af
Slide 22: Sinter Feed
SINTER FEED For personal use only Sintering !! All iron ore mines produce a lump and fines but only lump can be used in the blast furnace !! Synthetic lump is made by from fines by high temperature agglomeration - sintering !! Sintering creates “Made to order lump” !! Optimal physical properties of
Slide 23: Sintering Quality
SINTERING QUALITY For personal use only Why is NIOP ore so good? Chemical advantages !! Ultra-low Phosphorous (<0.02%) !! High Calcined Fe (>64%) Physical advantages Ignition hood on sinter strand !! Low ultra-fines – improves sintering speed !! Large fines product sizing (9-10 mm) – lower crushing
Slide 24: China Marketing
CHINA MARKETING For personal use only Marketing trip to China – July 2009 !! Visited 4 Steel mills and 2 stockists !! Use and understand pisolite fines !! Will pay reference price (HI Fines Japanese settlement FY09 – USD0.97 dmtu) Marketing Strategy !! Customised sinter blend – High Value in Use !!
Slide 25: Conceptual Timetable
CONCEPTUAL TIMETABLE For personal use only !! Feasibility Study Complete June 2009 Outcamp-Warrigal !! Test Pit Bulk Sample Underway !! Construction Commences 2nd Half 2009 !! Mining Approvals 1st Half 2010 !! Production Start-up 1.5 Mtpa 1st Half 2010 Coongan !! Production Ramp-up 3.0 Mtpa 2nd Half
Slide 26: Iron Ore Investors' Checklist
For personal use only “Filling in the blanks….” Iron Ore Investors’ Checklist COMPANY BC Iron High quality DSO Yes Simple mining method Yes Low Ore:Waste ratio Yes Low CapEx/OpEx Yes Simple infrastructure Yes Access to railway Yes Access to port Yes Customers Yes 27
Slide 27: For personal use only
For personal use only This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, some of which are out
Slide 28: For personal use only
For personal use only Mike Young, Managing Director Blair Duncan, Operations Manager