Grange Resources Limited · ASX:GRR
Grange Resources — Investor Presentation (February 2005)
51 slides from Grange Resources's investor presentation, February 2005
Slide 1: Grange Resources Limited - February 2005
February 2005 Grange Resources Limited, Level 13, 221 St Georges Terrace, Perth, WA 6000, Australia Phone: +61 8 9321 1118 Fax: +61 8 9321 1523 Website: www.grangeresources.com.au
Slide 2: Corporate Profile
CORPORATE PROFILE Grange Resources Limited is a Western Australian based publicly listed mining company. It holds equity positions and royalty interests in mining, development and exploration projects throughout Australia. The Company’s principal objective is to grow through the acquisition, develop
Slide 3: Share Capital at 3rd February 2005
SHARE CAPITAL AT 3rd FEBRUARY 2005 Issued Securities Number Ordinary Fully Paid Shares 73,249,259 Options 50 cent expiring 28 Nov 2006 4,285,715 Options 12 cent expiring 30 Jun 2007 1,500,000 Options 50 cent expiring 30 Jun 2007 4,500,000
Slide 4: Financial Information
FINANCIAL INFORMATION Market Capitalisation ($1.40 per share) $102.5 million Cash Assets & Receivables at 31 Dec 2004 $9.3 million Debt at 31 December 2004 Nil Forecast Gross Revenue to 31 Dec 2005 $11.36 million Forecast Cash at Bank 30 June 2005 $13.0 million
Slide 5: Major Shareholders at 31 December 2004
MAJOR SHAREHOLDERS AT 31 DECEMBER 2004 ANZ Nominees Limited 24,651,226 National Nominees Limited 13,042,444 RBC Global Services Aust Nominees Pty Ltd 4,285,715 Dr Salim Cassim 2,675,712 HSBC Custody Nominees (Aust) Limited 2,043,349 Equitas Finance Pty Ltd 2,025,293 Zero Nominees Pty Ltd 1,850,000 B
Slide 6: Australia Project Locations
Australia PROJECT LOCATIONS
Slide 7: Southdown Magnetite Project Location
Southdown Magnetite Project PROJECT LOCATION
Slide 8: Southdown Magnetite Project Location
Southdown Magnetite Project PROJECT LOCATION
Slide 9: Southdown Tenement Location
Southdown Magnetite Project TENEMENT LOCATION
Slide 10: Southdown Magnetite Project Summary
Southdown Magnetite Project PROJECT SUMMARY Located 90km north east of Port of Albany on south coast of WA 3 granted mining leases, 1700 hectares, freehold farming property Mineralisation occurs within a banded quartz magnetite gneiss Thickness 50-100m, dipping 60 degrees south Weathered surface zon
Slide 11: BMR Aeromagnetic Survey - 1980
Southdown Magnetite Project BMR AEROMAGNETIC SURVEY - 1980
Slide 12: Ground Magnetics & Gravity Survey - 2004
Southdown Magnetite Project GROUND MAGNETICS & GRAVITY SURVEY – 2004
Slide 13: Drilling Cross Sections
Southdown Magnetite Project DRILLING CROSS SECTIONS
Slide 14: Drilling Cross Sections
Southdown Magnetite Project DRILLING CROSS SECTIONS
Slide 15: Open Pit Optimisation and Projection
Southdown Magnetite Project OPEN PIT OPTIMISATION AND PROJECTION GOLDER ASSOCIATES UNDERTOOK AN OPEN PIT OPTIMISATION BASED ON THE 2 KM OF DRILLED RESOURCES AT SOUTHDOWN, EXTENDED TO A DEPTH OF 300 METRES. RESULTS CASE WASTE ORE STRIP DEPTH DTR (%) (Mt) (Mt) (t/t) (m RL) BASE 112.0 66.8 1.68 -120 36
Slide 16: Open Pit Optimisation and Projection
Southdown Magnetite Project OPEN PIT OPTIMISATION AND PROJECTION PROJECTION TO THE ADDITIONAL 4KM OF MINERALISATION ON GRANGE’S MINING LEASES INDICATES THAT 400 MT OF MAGNETITE RESOURCE IS A SUITABLE TARGET FOR THE NEXT STAGE OF DRILLING PROGRAMME
Slide 17: Development Plan - Drilling
Southdown Magnetite Project DEVELOPMENT PLAN - DRILLING DRILLING OVER THE UNTESTED 4 KM ZONE COMMENCED IN NOVEMBER 2004. DURING 2005 GRANGE WILL HAVE 4 DRILL RIGS ON SITE.
Slide 18: Development Plan
Southdown Magnetite Project DEVELOPMENT PLAN MINING AND CONCENTRATION Production of 6.6 Mtpa of Magnetite Concentrate at 69%Fe TRANSPORT AND SHIPLOADING Concentrates transported by slurry pipeline to Port of Albany (90kms), dewatered, stockpiled and loaded onto Capesize vessels for transport to Sout
Slide 19: Infrastructure - Slurry Pipeline
Southdown Magnetite Project INFRASTRUCTURE – SLURRY PIPELINE
Slide 20: Infrastructure - Albany Port
Southdown Magnetite Project INFRASTRUCTURE – ALBANY PORT
Slide 21: Infrastructure - Pellet Plant
Southdown Magnetite Project INFRASTRUCTURE – PELLET PLANT CONCEPTUAL PELLET PLANT LAYOUT
Slide 22: Infrastructure - Pellet Plant
Southdown Magnetite Project INFRASTRUCTURE – PELLET PLANT Modern 6.2 Mtpa Pellet Plant at Sao Luis - Brazil
Slide 23: Cost Estimates
Southdown Magnetite Project COST ESTIMATES SOUTHDOWN 6.6 Mtpa IRON ORE CONCENTRATE ESTIMATED CAPITAL COSTS A$M Bankable Feasibility Study 13.0 Infrastructure (Land, Pipeline, Power 217.0 Supply, Port facilities and dredging) Concentrator Plant 185.0 415.0
Slide 24: Cost Estimates
Southdown Magnetite Project COST ESTIMATES SOUTHEAST ASIA 6.9 Mtpa PELLET PLANT ESTIMATED CAPITAL COSTS US$M Land 10.0 Port, shiploader, stockyards 43.0 Pellet Plant 260.5 313.5
Slide 25: Project Summary
Southdown Magnetite Project PROJECT SUMMARY SOUTHDOWN PLANT INPUTS Magnetite Ore 17.3 Mtpa Water 2.0 Glitres pa Electricity 263 Gwh Power Generation Requirement 42 Mwatts Slurry Pipeline Diameter 150-200mm Operational Workforce 200 Life of Mine +25 years SOUTHDOWN PLANT OUTPUTS Iron Ore Concentrate
Slide 26: Project Summary
Southdown Magnetite Project PROJECT SUMMARY SOUTHEAST ASIA PELLET PLANT INPUTS Iron Ore Concentrate Feed 6.6 Mtpa Water 0.21 Glitres pa Limestone 0.07 Mtpa Electricity 275 Gwh Natural Gas 2.75 Pj Operating Workforce 60-100 (excluding Maintenance and Port services) OUTPUTS Iron Ore Pellets Produced 6
Slide 27: Project Timetable
Southdown Magnetite Project PROJECT TIMETABLE INDICATIVE TIMETABLE Re-commence Diamond Drilling Jan 05 Commence Bankable Feasibility Study Feb 05 Complete Bankable Feasibility Study Dec 05 Southeast Asian Plant Approvals Mar 06 Southdown Mining Approvals Jun 06 Project Construction Commences Jul 06
Slide 28: Mt Windsor Joint Venture Location and Geology
Mt Windsor Joint Venture LOCATION AND GEOLOGY
Slide 29: Highway Open Pit Mine Panoramic Overview
Highway Open Pit Mine PANORAMIC OVERVIEW
Slide 30: Highway and Reward Open Pit Cross Section
Highway and Reward Open Pit CROSS SECTION
Slide 31: Reward Deeps Location of Ore Bodies
Reward Deeps Project LOCATION OF ORE BODIES
Slide 32: Mt Windsor Joint Venture Summary
Mt Windsor Joint Venture SUMMARY Underground Mining at Highway South Mining Scheduled to finish in May 2005 214,000t @ 4.1% copper to be produced in 2005 Grange share of production +12,000t concentrate Final Shipment of Copper concentrate - June 2005 Projected net cash surplus to Grange A$3.0 millio
Slide 33: Freshwater Project Regional Geology
Freshwater Project – Plutonic/Marymia District REGIONAL GEOLOGY
Slide 34: Freshwater Gold Project Location Plan
Freshwater Gold Project LOCATION PLAN
Slide 35: Freshwater Gold Project Summary
Freshwater Gold Project SUMMARY Owned and Operated by Barrick Gold of Australia Limited Sliding Scale Royalty on gold production from underground and open pit operations Over $3 million in royalties paid since 1996 on production of 276,000 ozs Over 600,000 ozs of gold in indicated and inferred resou
Slide 36: Production & Royalty Receipts - Open Pit Ore
Freshwater Project PRODUCTION & ROYALTY RECEIPTS - OPEN PIT ORE Grade Gold Royalty Year Tonnes g/t Au Payment $ oz’s $/oz 1996 132,669 2.03 54,699 8,171 6.69 1997 1,185,591 2.04 476,456 72,509 6.57 1998 763,398 1.93 454,780 45,145 10.07 1999 942,121 1.84 587,569 53,086 11.07 2000 242,227 2.78 430,13
Slide 37: Production & Royalty Receipts - Underground Ore
Freshwater Project PRODUCTION & ROYALTY RECEIPTS - UNDERGROUND ORE Grade Gold Royalty Year Tonnes g/t Au Payment $ oz’s $/oz 2001 800 5.00 960 120 8.02 2002 54,235 6.70 185,590 10,863 17.08 2003 46,117 6.08 128,645 8,388 15.34 2004 78,080 6.74 268,736 16,940 15.86 TOTAL 179,231 6.30 583,931 36,311 1
Slide 38: Ore Reserves as at 31 December 2003
Freshwater Project ORE RESERVES AS AT 31 DECEMBER 2003 Grade Contained Location Category Tonnes Au g/t Ounces Underground Plutonic East Probable 328,000 6.6 69,600 Open Pit Salmon Probable 419,000 3.0 40,200 Callop Probable 73,000 1.8 4,400 TOTAL RESERVES 820,000 4.3 114,200
Slide 39: Mineral Resources as at 31 December 2003
Freshwater Project MINERAL RESOURCES AS AT 31 DECEMBER 2003 Grade Contained Location Category Tonnes Au g/t Ounces Underground Plutonic East Indicated 578,000 5.3 98,000 Inferred 3,068,000 5.3 523,000 TOTAL U/GROUND 3,646,000 5.3 621,000 Open Pit Salmon Indicated 304,000 2.4 23,000 Inferred 5,000 3.
Slide 40: Red Hill Project Tenement Location Plan
Red Hill Project – TENEMENT LOCATION PLAN
Slide 41: Red Hill Project Summary
Red Hill Project SUMMARY Grange has 4% Gross Revenue Royalty after first 85,000oz’s of gold production from M27/57 Owned and operated by PLACER DOME ASIA PACIFIC 4km NE of Kanowna Belle Gold Mine, 20km NE of Kalgoorlie Continuous gold mineralisation from surface within porphyry Large tonnage low gra
Slide 42: Red Hill Estimated Royalty Income
Red Hill Project ESTIMATED ROYALTY INCOME Life of Mine Royalty $A 14,000,000 305,000ozs Au subject to royalty 12,000,000 405,000ozs Au subject to royalty 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 450 500 550 600 650 700 750 Gold Price $A
Slide 43: Wembley Gold Project Summary
Wembley Gold Project SUMMARY Located 14 km south of the Peak Hill Gold Mine, 120 km NNE of Meekatharra in the Peak Hill Mineral Field in WA Granted Mining Lease contains the Durack gold resource of 557,000 tonnes @ 2.18g/t gold (39,000 contained ounces gold) Potential to extend known resource and lo
Slide 44: Durack Prospect Drill Hole Locations
Wembley Gold Project DURACK PROSPECT DRILL HOLE LOCATIONS
Slide 45: Abercromby Well Project Summary
Abercromby Well Project SUMMARY Located approximately 30 km SE of Wiluna in the Agnew- Wiluna Greenstone Belt Grange holds a 10% free carried interest in M53/336 to a decision to mine or expenditure of $2 million The tenement forms part of the Honeymoon Well gold project being explored by Perilya Li
Slide 46: Abercromby Well Location and Geology
Abercromby Well Project LOCATION AND GEOLOGY
Slide 47: Horseshoe Lights Project Locality Plan
Horseshoe Lights Project LOCALITY PLAN
Slide 48: Mineral Resources as at 31 December 2004
Horseshoe Lights Project MINERAL RESOURCES AS AT 31 DECEMBER 2004 Grade Contained Location Category Tonnes % Cu Copper (t) NW Stringer Ore Indicated 1,606,000 0.86 13,800 Inferred 1,606,000 0.78 12,500 Main Zone Indicated 949,000 1.29 12,200 Inferred 233,000 1.08 2,500 Motters Zone Indicated 169,000
Slide 49: Mount Samuel Project Summary
Mount Samuel Project SUMMARY Grange 85%, Prospectors 15% 6km south of Tennant Creek Located along same structural trend as previous producing mines Juno (810,000oz Au), Nobles Nob (1,100,000oz Au) and Eldorado (100,000oz Au) Potential for high grade gold, copper, bismuth deposit Last drilling progra
Slide 50: Mount Samuel Project Location Plan
Mount Samuel Project LOCATION PLAN
Slide 51: Mount Samuel Geological Cross Section
Mount Samuel Project GEOLOGICAL CROSS SECTION
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