Sandfire Resources Ltd · ASX:SFR
Sandfire Resources — Shareholder Meeting (November 2010)
24 slides from Sandfire Resources's shareholder meeting presentation, Nov 29, 2010
Slide 1: Moving Towards Production: Building a Premier Australian Copper-Gold Producer
For personal use only Moving Towards Production: Building a Premier Australian Copper-Gold Producer Annual General Meeting 29 November 2010
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Competent Person’s Statement The information in this public presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Mr John For personal use only Evans who is a Fellow of the Australasian Institute of Mining and
Slide 3: Snapshot
Snapshot World-class DeGrussa Copper-Gold Project, Western Australia For personal use only JORC resource inventory: 644,000t copper, 724,000oz gold Discovery cost ~$0.02/lb Project development commencing 2011: PFS Q4 2010, DFS Q1 2011, Open pit pre-strip Q2 2011 Initial open cut to extract high-grad
Slide 4: Copper-Gold Project
DeGrussa Copper-Gold Project For personal use only One of Australia’s most significant new mineral discoveries Located 900km NE of Perth in a well- established mining area Dominant 400km2 tenement package in emerging Bryah Basin copper district 4
Slide 5: Project – Location & Infrastructure
DeGrussa Project – Location & Infrastructure Established mining For personal use only district with excellent infrastructure: Great Northern Highway transects the tenement package Goldfields Gas Transmission Pipeline nearby Abundant fresh groundwater 5
Slide 6: Project – Overview
DeGrussa Project – Overview Substantial high-grade For personal use only copper-gold resource inventory established within 18 months Development studies well advanced in parallel with resource development Pre-Feasibility Study nearing completion – seamless transition to Feasibility Study Grant of Mi
Slide 7: Four Deposits, 150,000m of Drilling, Months…
Four Deposits, 150,000m of Drilling, 18 Months… For personal use only 7
Slide 8: Project – Phase III Mineral Resource
DeGrussa Project – Phase III Mineral Resource JORC compliant Mineral Resource estimate for DeGrussa, Conductor 1, Conductor 4 and Conductor 5 deposits: 10.67Mt at 5.6% copper, 1.9g/t gold and 15g/t silver For personal use only Reported above 1.0% Cu lower cut-off grade Tonnes Cu Au Ag Cu Au Ag (Mt)
Slide 9: Project – Open Pit Resources
DeGrussa Project – Open Pit Resources For personal use only Lateritic gold – 140,000t @ 1.5g/tAu for 7,000oz gold Oxide copper – Resource of 3.6Mt @ 1.2%Cu, 0.5g/tAu (44,000t copper, 57,000oz gold) – Measured 2.18mt @ 1.1%Cu, 0.6g/tAu, Indicated 1.42mt @ 1.4%Cu, 0.4g/t Au High grade DSO – 151,000t @
Slide 10: Project – Open Pit Operation
DeGrussa Project – Open Pit Operation Metallurgical test work underway to determine For personal use only optimum treatment option for oxide copper Oxide copper to be extracted within the first year of mining together with direct shipping chalcocite material: 151,000t @ 25.6% Cu, 2.6g/t Au, 21g/t Ag
Slide 11: Project – Development Overview
DeGrussa Project – Development Overview Open pit and underground mining operation For personal use only On-site 1.5Mtpa concentrator: Expected to support annual production in the order of 60-70,000tpa of copper metal and 50-60,000oz of gold in concentrate Concentrate to be trucked to either Port Hed
Slide 12: Pre-Feasibility Study – Key Highlights
Pre-Feasibility Study – Key Highlights Targeted throughput rate for processing plant increased from 1.0Mtpa to For personal use only 1.5Mtpa following Phase III resource update (September 2010): Plant upgrade expected to achieve: Increased annual copper and gold production for sale into strong coppe
Slide 13: Pre-Feasibility Study – Key Highlights
Pre-Feasibility Study – Key Highlights Favourable geotechnical and hydrological results For personal use only Excellent results from ongoing metallurgical testwork: demonstrating good recoveries and the ability to produce concentrate grades of up to 27% Cu Recruitment of experienced personnel to fil
Slide 14: Project – Development
DeGrussa Project – Development For personal use only
Slide 15: An Unprecedented Exploration Push
An Unprecedented Exploration Push Intensive exploration For personal use only campaign underway on 6km long priority mine corridor – $20-30M budget Programs include Systematic deep drilling Down-hole EM 30amp surface EM in-fill survey Extensive 200amp surface EM survey over 10km strike length Deep d
Slide 16: Mineral Field – Regional Exploration
DeGrussa Mineral Field – Regional Exploration For personal use only Dominant 400km2 tenement package in emerging VMS field Multiple conductive features identified from ground-based EM surveys to follow up airborne VTEM targets completed in 2009 Priorities include coincident TEM and gravity targets W
Slide 17: Copper Market Outlook
Copper Market Outlook 34% increase in copper prices over For personal use only past 12 months driven by strong Chinese demand and tight supply Market deficit of up to 400,000 tonnes forecast for 2011 as supply falls short of demand Declining mine head grades and long lead-times on new projects const
Slide 18: Copper Market Outlook
Copper Market Outlook For personal use only Source: Rio Tinto 18
Slide 19: Copper Companies – Market Capitalisation
Copper Companies – Market Capitalisation For personal use only 19
Slide 20: McArthur Basin – A World-Class Mineral Province
McArthur Basin – A World-Class Mineral Province For personal use only 20
Slide 21: Borroloola Project
Borroloola Project +14,000sq km tenement position in For personal use only world-class NT mineral province Prospective for zinc-lead-silver deposits (McArthur River), manganese (Groote Eylandt), iron ore and uranium Agreement with Mineral Resources (ASX: MIN) to fund exploration and development of m
Slide 22: Corporate Summary
Corporate Summary Post Retail Current For personal use only Entitlement Offer Board Issued Capital 142.5 M Ord shares 148.2 M DEREK LA FERLA – Non-executive Chairman 8.9 M options 8.9 M KARL SIMICH – Managing Director/CEO Cash A$98.2 M A$135.3 M W. JOHN EVANS – Executive Technical Director Major Sha
Slide 23: Summary and Outlook
Summary and Outlook S&P ASX 200 Australian mining company For personal use only Rapidly growing VMS copper-gold project in WA Development activities well advanced On track to produce first copper next year: Open cut operations commencing 2011 Underground operations commencing 2012 Unprecedented expl
Slide 24: Moving Towards Production: Building a Premier Australian Copper-Gold Producer
For personal use only Moving Towards Production: Building a Premier Australian Copper-Gold Producer Annual General Meeting 29 November 2010
Sandfire Resources — Shareholder Meeting (November 2010) on 6ix