Strike Resources Limited · ASX:SRK
Strike Resources — Investor Presentation (September 2010)
22 slides from Strike Resources's investor presentation, Sep 21, 2010
Slide 1: Building a World-Class Iron Ore Project in Peru
For personal use only Building a World-Class Iron Ore Project in Peru
Slide 2: Disclaimer
Disclaimer For personal use only This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Strike Resources, industry growth or other t
Slide 3: Company Highlights
Company Highlights For personal use only • Apurimac Iron Ore Project in Peru • 269 Mt at 57.3% Fe JORC Resource* • Further exploration expected to substantially increase Resource • Near-term plans to develop 3Mtpa Berau thermal coal project in Indonesia • Strong cash position with A$42.8 million in
Slide 4: Australian Securities Exchange (ASX)
Australian Securities Exchange (ASX) For personal use only • ASX Code: SRK • Capital structure: • Ordinary, fully-paid shares 130 million • Unlisted options 20.1 million • Cash Position: A$ 42.8M Top Shareholders • Gallagher Holdings Limited 19.9% • Orion Equities Limited (OEQ) 10.1% • Database Syst
Slide 5: Peru, a Major Resources Precinct
GDP GROWTH 2000-2009 Peru, a Major Resources Precinct (Real % change) For personal use only Peru Colombia Peru offers Bolivia Chile • Free-trade agreement with the USA World Brazil • Competitive labour rates LatAm Mexico • Competitive corporate tax rates and 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 ro
Slide 6: Apurimac Project - Highlights
Apurimac Project - Highlights For personal use only • 44% direct interest in concession owner (AF) • JORC resource of 269Mt @ Pictures here. 57.3% Fe* • Strong working relationship with major JV partner • High grade haematite with coarse, friable magnetite • Positive Pre-feasibility Study • Substant
Slide 7: Apurimac Concessions: Opaban & 3 target of 300–350Mt at 57–58% Fe
Apurimac Concessions: For personal use only Opaban 1 & 3: target of 300 – 350Mt at 57 – 58% Fe* Bouguer Gravity Opaban 1 Anomaly Target mineralisation is based on • Undrilled gravity and magnetic anomalies Pictures here. • Both deposits open at depth Opaban 3 • High-grade intercepts e.g. 62.8% Fe fr
Slide 8: Pre-feasibility confirms attractive project economics
Pre-feasibility confirms attractive project economics For personal use only Pre-feasibility confirms • 27Mtpa mining operation for 20Mtpa product • High grade product >68% Fe with low impurities • Slurry pipeline to coast for dewatering and export • Average operating costs of approximately US$17-$20
Slide 9: Up-side Potential - Rope Conveyor System
Up-side Potential - Rope Conveyor System For personal use only • Option study in progress • Up to 2km between support towers • Indicative price structure • Capacity up to 75Mtpa • Up to 20km per conveyor section • German designed and engineered • Facilitates lump/fines and coarse concentrate options
Slide 10: Opaban has Excellent Metallurgical Properties
Opaban has Excellent Metallurgical Properties For personal use only DTR Mass Recovery • Coarse particle liberation size (250 microns vs 30 – 40 microns) 60 -70% 80% • Greater than 70% mass recovery (vs 35 – 60% 39% Opaban 50%) Pictures here. 25% 30% Project 1 40% Project 2 • Excellent product grades
Slide 11: Up-side Opportunities – Cobber LIMS Potential
Up-side Opportunities – Cobber LIMS Potential For personal use only • Initial testwork on magnetite sample • Excellent mass recovery of 68% with product grade of 67% Fe • Low impurities and potential premium “sinter fines” product LIMS Mass Recovery - Opaban Composite Opaban LIMS Impurity Rejection
Slide 12: Cuzco – Potential Next Stage
Cuzco – Potential Next Stage For personal use only • Previous work indicates potential for 500 – 650Mt* of target mineralisation • Concessions covering approx 18,000 ha • High grade haematite • The Cuzco deposits occur within a 4km diameter area around an intrusive core • Current drilling on only 30
Slide 13: Building Strong Community Relations in Peru
Building Strong Community Relations in For personal use only Peru • Community support is being fostered through long-term programs & building sustainable relationships of mutual trust Pictures here. and respect • Strong, experienced Community Relations team in place • Ongoing negotiations with commu
Slide 14: Berau Thermal Coal Project – highlights
Berau Thermal Coal Project – highlights For personal use only • Fast-tracked project with significant near-term cash flow • Low $20M Capex Pictures here. • Rights to 100% of coal and mineral resources (subject to royalty to local partner) • Feasibility studies complete • Project waiting on final neg
Slide 15: For personal use only
• Measured and Indicated Resource of 22.1Mt* For personal use only • Reserves of 7.7Mt based on 10.4Mt of Measured and Indicated Resource* • Haulage 30km to barge port • Capital Cost <US$20M (plus working capital) Pictures here. • Potential free cash flow of US$40M in the first year of full producti
Slide 16: Executive Summary
Executive Summary For personal use only • Apurimac Iron Ore Project in Peru • 270 Mt at 57.3% Fe JORC Resource* • Further exploration expected to substantially increase Resource potential • Near-term plans to develop 3Mtpa Berau thermal coal project in Indonesia • Strong cash position with A$42.8 mi
Slide 17: Strike Resources Limited
For personal use only Strike Resources Limited ASX: SRK www.strikeresources.com.au
Slide 18: Appendix – Apurimac Project JORC Code Information
Appendix 1 – Apurimac Project JORC Code Information For personal use only The total Mineral Resource at the Opaban 1 and 3 concessions is 269.4 Mt, consisting of a 127.19 Mt Inferred Resource at Opaban 1 at 56.7% Fe (using a cut-off grade of 40% Fe) a 133.71 Mt Indicated Resource at Opaban 1 at 57.5
Slide 19: Appendix – Berau Project JORC Code Information
Appendix 2 – Berau Project JORC Code Information For personal use only The Coal Resource at the Berau Coal Project in East Kalimantan is 27.7 million tonnes (Mt). Of the 27.7 Mt JORC Resources, 11 Mt is in the Measured category, 11.1 Mt is in the Indicated category and 5.6 Mt is in the Inferred cate
Slide 20: Appendix (cont’d) – Berau Project JORC Code Information
Appendix 2 (cont’d) – Berau Project JORC Code Information For personal use only The Coal Resource in the Nyapa West block is estimated to be 14 Mt, comprising 1.8 Mt of Measured Resource, 8.6 Mt of Indicated Resource and 3.6 Mt of Inferred Resource. The Coal Resource in the Nyapa East block is estim
Slide 21: Appendix (cont’d) – Berau Project JORC Code Information
Appendix 2 (cont’d) – Berau Project JORC Code Information For personal use only Within the 10.4Mt Coal Resource (1.8Mt Measured Resource and 8.6 Mt Indicated Resource) in the Nyapa West block described above, 7.7 Mt of Probable Reserves have been estimated. Probable Calorific Value kcal/kg Total Sul
Slide 22: Appendix (cont’d) – Berau Project JORC Code Information
Appendix 2 (cont’d) – Berau Project JORC Code Information For personal use only The information in this document which relates to the Nyapa East Resource estimate is based on data compiled and supplied to SRK by an employee of Strike Resources Limited who is a Member of The Australasian Institute of
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