Eastern Resources Limited · ASX:EFE
Eastern Resources — Eastern Iron — Shareholder Meeting (November 2012)
26 slides from Eastern Resources's shareholder meeting presentation, Nov 23, 2012
Slide 1: Annual General Meeting - 2012
For personal use only Annual General Meeting - 2012
Slide 2: Disclaimer
Disclaimer 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, many of wh
Slide 3: Overview
Overview For personal use only • Eastern Iron Limited has three significant iron projects on the East Coast of Australia • Strategic focus on low capex, high margin iron ore developments, close to bulk transport/export infrastructure in Australia and overseas • Present focus on high grade Nowa Nowa
Slide 4: Project Portfolio
Project Portfolio For personal use only Nowa Nowa Project (100%) • High grade resource: Inferred 11.5Mt @ 49% Fe (magnetite/hematite) • Scoping near-term mining development producing 0.5 - 1 Mtpa +61%Fe LIMS Fines product • Low Capex ($30 million est.) • Eastern Victoria, good project infrastructure
Slide 5: Recent Activity
Recent Activity For personal use only Rapid progress on priority Nowa Nowa Project in 2012 • Nov 2012 – Completion of Scoping Study • Sept 2012 – Updated resource for Nowa Nowa of 11.5Mt @ 49.8% Fe • July 2012 – Completion of drilling program at Nowa Nowa and initial drilling results • July 2012 – C
Slide 6: Corporate Overview
Corporate Overview For personal use only Capital Structure Experienced Board and Management • 114.6 million shares on issue Chairman: Steve Gemell • $3.0 million cash MD: Greg De Ross • PlatSearch NL (ASX:PTS) NED’s : Greg Jones, Wendy Corbett, Ivo major shareholder (46%) Polovineo, Adrian Critchlow
Slide 7: Nowa Nowa Iron Project
Nowa Nowa Iron Project For personal use only • Eastern Victoria – good local power, roads, labor, port infrastructure • 50km2 under exploration license • 100% owned by Eastern Iron • Existing global inferred resource 11.5Mt @ 49% Fe at a lower cutoff of 40% Fe • Multiple deposits; further resource a
Slide 8: Nowa Nowa – Primary Prospects
Nowa Nowa – Primary Prospects For personal use only Six Mile Deposit • Exploration upside – yet to be drilled Five Mile Deposit • Drilled in 1950’s by Seven Mile Deposit Vic Govt. • Massive • High grade high silica hematite at surface magnetite/hematite • Potential small open cut at start of body de
Slide 9: Recent drilling results confirm historical drilling
For personal use only Recent drilling results confirm historical drilling NND014 62.9m from 67.7m @ 57.6% Fe, 9.78% SiO2, 1.77% Al2O3, 0.03% P
Slide 10: Five Mile Deposit - Metallurgy
Five Mile Deposit - Metallurgy For personal use only • Preliminary results from sampling of old drill core • Crushing and Dry LIMS gives low cost high quality magnetite product similar to Pilbara fines Dry LIMS -6.3mm Wt% Fe% SiO2% Al2O3% P% S% Upper Composite 99.7 61.9 6.7 0.9 <0.01 0.62 Intermedia
Slide 11: Nowa Nowa – Development Concept
Nowa Nowa – Development Concept For personal use only • Open Pit Mine producing up to 1Mtpa iron product. • Mine DSO hematite from 7 Mile first then magnetite/hematite from 5 Mile • Explore other ore sources (6 Mile and extensions to 5 Mile) • Road transport 220km to Eden Port (other transport optio
Slide 12: Nowa Nowa – Activity Outlook
Nowa Nowa – Activity Outlook For personal use only Jul – Sept 12 Oct – Dec 12 Jan – Mar 13 Apr – Jun 13 Jul – Sept 13 Oct – Dec 13 Scoping Study Upgrade Five and Seven Mile resource Large diameter core drilling for metallurgical and market testing Firm transport arrangements Investigate off
Slide 13: Nowa Nowa – Additional Resource Potential
Nowa Nowa – Additional Resource Potential For personal use only 7 Mile: 0.55Mt1 DSO hematite • Multiple bodies of massive magnetite • Exploration and resource 6 Mile: undrilled upside potential: • Extensions to Five Mile • Undrilled Six Mile 5 Mile: 8.92Mt1 50%Fe mag/hem 1 Details included in resour
Slide 14: Five Mile Deposit
For personal use only Five Mile Deposit • Original 1950’s drilling left parts of the magnetic anomaly untested. • Next drilling program will test northern part of the main anomaly and apparently faulted block to the north. • Both areas have thinner overburden 15-30m and could be an ideal location fo
Slide 15: Central Queensland Iron Project
Central Queensland Iron Project For personal use only A unique combination of large iron resources in an area of established infrastructure • Hawkwood Project (50% earning 80%) • Eulogie Project (100%) • Auburn exploration permit (100%)
Slide 16: Eulogie Iron – Vanadium Project
Eulogie Iron – Vanadium Project For personal use only • Completed concept development study. • Close proximity of existing infrastructure incl. Port and rail (80km west of Gladstone) • JORC Resource: 465 Mt @ 14.2% Fe, 3.0% TiO2, 0.097% V • Vanadiferous Magnetite concentrate product • Exploration Ta
Slide 17: Eulogie Project – Concept Development Study
Eulogie Project – Concept Development Study For personal use only • Open Pit mine, 20Mtpa ROM ore • Low waste to ore ratio (0.3) • 3.2 Mtpa magnetite concentrate • 80km road or rail transport to Gladstone Port • Loading through multi-user wharf at Gladstone to +100 DWT vessels • Total Capital Cost e
Slide 18: Hawkwood Iron – Vanadium Project
Hawkwood Iron – Vanadium Project For personal use only • Eastern Iron earning 80% (JV with Rugby Mining Ltd, RUG:TVX) • 4 Exploration licenses totalling 345 km2 • Work completed includes: • High resolution airborne magnetic survey • RC drilling program (2010, 11) • Diamond drilling (2011) • Metallur
Slide 19: Eulogie/Hawkwood Projects - Infrastructure
Eulogie/Hawkwood Projects - Infrastructure For personal use only Access to Local Infrastructure Supports Potential Development Eulogie Project: Transport options include: • Option 1 - 50km road to Blackwater rail line 140km to Port. • Option 2 – 50km road to Moura rail line 100km to Port • Option 3
Slide 20: Central Queensland Transport Infrastructure
Central Queensland Transport Infrastructure For personal use only Blackwater rail line Moura rail line Gladstone Port RG Tanna coal loader Barney Point
Slide 21: NSW Pisolite Iron JV
NSW Pisolite Iron JV For personal use only • NSW tenements farmed out to 3E Steel, a private local company with Chinese financial backing. • Completed further drilling to expand current resource and define additional area for possible mine development. • Extensive beneficiation testwork at Chinese U
Slide 22: Recent downturn due to destocking in China
Recent downturn due to destocking in China For personal use only Recent prices below $90/t were temporary due to Chinese destocking and have rebounded as buyers returned to the market (currently Pilbara Fines $120-125/t CNF China). Source Macquarie Research July Sept 2012
Slide 23: Iron Ore Pricing – look for value
Iron Ore Pricing – look for value For personal use only • Medium term pricing will be determined by pace of new supply additions (over-estimated?) and the capital and operating costs of new capacity • Successful new projects will be those with low capital intensity (low capex/tonne of annual product
Slide 24: Eastern Iron – Value Proposition
Eastern Iron – Value Proposition For personal use only Eastern Iron poised for a valuation re-rating as the Nowa Nowa Project moves to completion of Scoping Study, to Feasibility Study, to Production. Enterprise Value – Iron producers Eastern Iron A$1.4/t - 1Mtpa BC Iron A$93.9/t - 1.5Mtpa Mount Gib
Slide 25: Investment Summary
Investment Summary For personal use only • Eastern Iron is focused on: • Potential for near-term development of Nowa Nowa • Realising value from its large scale Queensland magnetite projects • Recent capital raising – well funded to complete scoping study at Nowa Nowa. • Potential to complete feasib
Slide 26: Eastern Iron Limited
Eastern Iron Limited Level 1, 80 Chandos Street For personal use only St Leonards, NSW 2065 T: +61 2 9906 7751 www.easterniron.com.au Twitter: @EasternIronEFE