Slide 1: Company Presentation (ASX Release)
ASX: EQX | 16 November 2010 | ASX RELEASE COMPANY PRESENTATION Equatorial Resources Ltd (ASX:EQX) is pleased to release the attached company presentation that will be used this week in meetings with investors, fund managers, brokers, and analysts in the UK and Europe. For all enquiries please contac
Slide 2: Emerging Iron Projects in West Africa
Emerging Iron Projects in West Africa ASX: EQX Company Presentation November 2010
Slide 3: Disclaimer
DISCLAIMER • This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Equatorial Resources Limited. • This document has been prepared as a summary only, and does not contain all information about the Comp
Slide 4: 100% Ownership of Two Potentially Large-Scale Iron Ore Projects in Republic of Congo
100% OWNERSHIP OF TWO POTENTIALLY LARGE‐SCALE IRON ORE PROJECTS IN REPUBLIC OF CONGO World Class Location Projects located close to major industry players in the emerging g g gglobal iron ore province p of West Africa Mayoko‐Moussondji Iron Ore Project Large scale potential: Geophysical survey i
Slide 5: Central & West African Iron Ore: Production Pipeline
CENTRAL & WEST AFRICAN IRON ORE: PRODUCTION PIPELINE The World’s next major iron ore province? 1 Potential to supply up to 25% of global supply by 2020 (>500Mtpa)* Steel manufacturers keen to source alternative cost competitive supply Iron ore is the “new gold” for majors Iron ore has become
Slide 6: Central & West African Iron Ore: Existing Transport Infrastructure
CENTRAL & WEST AFRICAN IRON ORE: EXISTING TRANSPORT INFRASTRUCTURE? Transport infrastructure (rail & port) is key to unlocking the regional potential 2 4 project areas with potential to be serviced by existing transport infrastructure Massive capital p outlays y and time required q to build new
Slide 7: Republic of Congo (Congo Brazzaville)
REPUBLIC OF CONGO (“CONGO BRAZZAVILLE”) Stable country attracting multi‐billion dollar investment Former French colony that celebrated 50 years of independence in August 2010 Rated equivalent in political risk to Mozambique and Kenya (Control Risks Survey 2009) Stable, single party government
Slide 8: Mayoko Moussondji Iron Project: Large Scale Potential, Close to Rail
MAYOKO MOUSSONDJI IRON PROJECT LARGE SCALE POTENTIAL POTENTIAL, CLOSE TO RAIL Highly prospective geology Massif du Chaillu terrain hosts multiple large sedimentary iron ore deposits including Zanaga (Xstrata/MDP) Hematite rich weathered zones (“hematite caps”) sitting on top of large magnetite r
Slide 9: Mayoko-Moussondji Iron Project: Airborne Geophysics Identified 46km Strike
MAYOKO‐MOUSSONDJI IRON PROJECT AIRBORNE GEOPHYSICS IDENTIFIED 46KM STRIKE Airborne geophysics program In 2007 BRGM identified 9km of outcropping iron mineralisation prospective for iron rich hematite and itabirite mineralisation In August 2010, Equatorial conducted a high definition helicopter‐b
Slide 10: Mayoko-Moussondji Iron Project: Potential for High Grade DSO Product
MAYOKO‐MOUSSONDJI IRON PROJECT POTENTIAL FOR HIGH GRADE DSO PRODUCT High Grade Rock Chip Assays 17 non systematic rock chip samples collected in August and September 2010 Analysis completed by Intertek Genalysis in Perth, Western Australia during October Returned d assay grades d off up to 61.
Slide 11: Rock Chip Assays Confirm High Grade Hematite up to 61.6% Fe
ROCK CHIP ASSAYS CONFIRM HIGH GRADE HEMATITE UP TO 61.6% FE Sample # Fe SiO2 (%) Al2O3 (%) P (%) 1 60.5% 6.0 4.6 0.1 3 60.4% 2.5 2.5 0.2 4 60.5% 8.9 2.8 0.1 Sample 00007 (Leboulou) 61.6% Fe Sample 00003 (Makengui) 60.4% Fe 5 58.9% 8.9 3.4 0.1 6 58 3% 58.3% 47 4.7 30 3.0 02 0.2 7 61.6% 2.2 1.2 0.7 8
Slide 12: Mayoko-Moussondji: Logging Roads Provide Access to Target Areas
MAYOKO‐MOUSSONDJI LOGGING ROADS PROVIDE ACCESS TO TARGET AREAS Accessibility The Project can be accessed via road, rail and air from the Company’s head office in Pointe Noire A network of logging roads exists throughout the Project area Roads in excellent condition. Will facilitate access to t
Slide 13: Equatorial Resources Granted Access to Railway Line
EQUATORIAL RESOURCES GRANTED ACCESS TO RAILWAY LINE Access to heavy haulage rail line secured In September 2010, Company signed a conditional agreement with owner of the ROC railway system Le Chemin de Fer Congo Ocean (CFCO) Equatorial granted immediate access to the railway line Agreement com
Slide 14: Existing Port Infrastructure
EXISTING PORT INFRASTRUCTURE Pointe‐Noire Pointe Noire Deep‐Water Port The largest deep‐water deep water port in West Africa: o vital communication axis in equatorial Africa, serving the entire Congo basin including the Democratic Republic of Congo (DRC), Central African Republic and northern Ango
Slide 15: Mayoko Moussondji Accelerated Development Timeline
MAYOKO MOUSSONDJI Accelerated Development Timeline Airborne Drilling geophysics Detailed Targeted Geological mapping metallurgical work commencement of Surface sampling Commence capex mine development Rail & Port upgrades & commissioning assessment Complete ESIA Exploration Target Pre‐feasibility St
Slide 16: Badondo Iron Project: Emerging Cluster of High Grade Projects
BADONDO IRON PROJECT: EMERGING CLUSTER OF HIGH GRADE PROJECTS Prime location within an emerging cluster of large scale exploration projects Avima (Core Mining/Severstal): 50km North Belinga (CMEC): 50km South Nabeba (Sundance Resources): 80km NE Mbalam (Sundance Resources): 100km NE Recent e
Slide 17: Badondo Project: Large Scale Potential
BADONDO PROJECT: LARGE SCALE POTENTIAL Highly prospective geology Chemical analysis of rock samples collected by BRGM (1964‐1966) revealed iron grades as high as 60.75% Fe, with low phosphorus In 2007, BRGM revisited the prospect and confirmed a ridge line of more than 7km long of outcropping ir
Slide 18: Equatorial Resources 2010 Milestones
EQUATORIAL RESOURCES 2010 Milestones Acquired two 100% owned large scale iron ore projects in June 2010 Established representative head head‐office office in Pointe‐Noire Pointe Noire and a field office at Mayoko Assembled experienced management team Completed airborne geophysics at Mayoko‐M
Slide 19: Equatorial Resources Plans for 2011
EQUATORIAL RESOURCES Plans for 2011 Mayoko‐Moussondji Iron Project Commence aggressive drilling program in Q1 Maiden resource definition work Metallurgical test work Negotiate with autonomous port authority of Pointe‐Noire (PAPN) for port access Complete engineering study on railway line
Slide 20: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS Proven development experience in the resource sector • Highly respected resource company executive with significant experience in Ian Middlemas company building in emerging markets Non‐Executive Chairman • Currently Chairman of a number of ASX listed natural resource
Slide 21: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Proven operation and development skills; finance and operating experience within major mining houses • Geologist with 30 years exploration and mining experience across a wide range of Roger Staley commodities and mineralisation styles Country/Exploration Manager • Most
Slide 22: Drivers of Success
DRIVERS OF SUCCESS • Stable government, • Access to French majors Total operational railway and Eni active in ROC and port for decades infrastructure • Chinese and Russian • 100% owned projects manufacturers keen to located in the Massif source alternative cost du Chaillu in close competitive supply
Slide 23: Iron Ore – Ingredients for Success
IRON ORE – INGREDIENTS FOR SUCCESS Key ingredient i di ffor Equatorial i l currently: l success: • Large deposit • Geophysical survey identified 46km of anomalous strike length prospective iron mineralisation at Mayoko‐Moussondji • High grade/ • Rock chip assays have returned grades of up to 61.6% F
Slide 24: Corporate Structure
CORPORATE STRUCTURE ASX EQX ASX: EQUATORIAL RESOURCES LTD (ASX: EQX) @ November 2010 Fully Paid Ordinary Shares 74.9 million Market Capitalization Undiluted (@ A$1.54) A$115.3 million Cash A$9.4 $ million Unlisted Options (Various Expiry and Exercise Prices) 11.1 million Vendor Milestone Shares (100
Slide 25: Equatorial Resources
EQUATORIAL RESOURCES Two 100% owned d potentiall large l scale l iron ore projects Emerging global iron ore province of West Africa Potential for early cash flow DSO operation from high grade hematite cap at Mayoko‐Moussondji Access to railway line already secured Low sovereign g risk Ex
Slide 26: ASX: EQX
ASX: EQX www.equatorialresources.com.au AUSTRALIA: Level 9, BGC Centre 28 The Esplanade Perth WA 6000 Australia T l +61 8 9322 6322 Tel: Fax: +61 8 9322 6558 CONGO BRAZZAVILLE: 221 Route De La Frontiere Quarter Tchimbamba Pointe‐Noire Republic of Congo UNITED KINGDOM: 18 Pall Mall London SW1Y 5LU Un