WA Gold Limited · ASX:WAU
WA Gold — Brazilian Metals Group — Investor Presentation (June 2011)
43 slides from WA Gold's investor presentation, June 2011
Slide 1: Brazilian Metals Group Ltd Investor Presentation
BRAZILIAN METALS GROUP LTD An emerging mining house focussed on Brazil Investor Presentation June 2011 1
Slide 2: Disclaimers
Disclaimers The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Malcolm Castle, who is a Member of the Australasian Institute of Mining and Metallurgy (“AusIMM”). Mr Castle is a director of the Company and he
Slide 3: BMG at a Glance
BMG at a Glance Major Iron ore project in world class Iron province in Brazil Two advanced projects at drilling stage with encouraging down-hole intercepts • Gema Verde zone is the extension of Honbridge’s Block 8 Resource (2,615 mt) • Rio Pardo zone at Josilene – Scorpion extends over 13 km P
Slide 4: Corporate Strategy
Corporate Strategy To develop a substantial mining enterprise in northern Minas Gerais, Strategic Brazil by developing a mining/processing and transport operation with Vision the scale to export in excess of 25 million tonnes of premium iron product per annum Goals Status Identify areas which are
Slide 5: Corporate Strategy
Corporate Strategy To develop a substantial mining enterprise in northern Minas Gerais, Strategic Brazil by developing a mining/processing and transport operation with Vision the scale to export in excess of 25 million tonnes of premium iron product per annum Goals Status Progress to an estimate o
Slide 6: Recent Background
Recent Background Rio Pardo project acquired by BMG in November 2010 Successfully raised $7 million pre relisting Company relisted as Brazilian Metals Group Ltd (ASX:BMG) in December 2010 Established office in Belo Horizonte managed by expat COO. Established a strong and ongoing rapport with
Slide 7: Capital Structure
Capital Structure ASX Codes: BMG (shares); BMGO (options) Total Issued Shares: 147,716,864 Escrowed Shares*: 72,198,501 (included in above) Tradeable Options: 136,756,414 – ex. 20c until 31/03/2014 Escrowed Options: 1,244,344 – ex. 20c until 31/10/2011 750,000 – ex. 20c until 30/11/2012 Cash at 31 M
Slide 8: Directors and Management
Directors and Management Mr. Peter O'Connor – Chairman Mr. O'Connor has over 40 years experience in international investment management, and is chairman of a number of publicly quoted investment companies with particular exposure to Asia, Australia and Canada, including (held through Peter O'Connor
Slide 9: Directors and Management
Directors and Management Mr. Malcolm John Castle - Executive Technical Director Mr Castle has over 40 years experience in exploration geology and property evaluation, working for major companies for 20 years as an exploration geologist. He has wide experience in a number of commodities including iro
Slide 10: Directors and Management
Directors and Management Mr. Robert James Pett – Non-Executive Director Mr Robert Pett is a minerals economist with over 27 years experience in exploration and mining of gold and other metals. During that period he has overseen the successful exploration, development, operation and financing of more
Slide 11: Project Location
Project Location BRAZIL NORTH MINAS GERAIS IRON PROVINCE
Slide 12: Why Brazil?
Why Brazil? Emerging world class iron ore producing region Brazil has a very supportive economic environment with strong growth (currently 7.5% per annum) A stable political system, security of tenure on mineral licenses and low sovereign risk Brazil is in the top 5 producers in the world of
Slide 13: Regional Activity
Regional Activity Very substantial ore bodies have been discovered in northern Minais Gerais state and iron ore projects (at all levels of development) are commanding very high values. Vale do Rio Pardo project was sold to Honbridge (backed by Chinese State owned Xinwen and Shandong Iron & Steel
Slide 14: Project Structure
Project Structure Minas Norte Mineracao Ltda (wholly owned subsidiary of BMG) FOCUS - NORTH MINAS GERAIS IRON ORE PROVINCE GEMA VERDE PROJECT RIO PARDO PROJECT Overview: Overview: Contiguous with the Honbridge Block 8 Advanced exploration project resource 10 targets identified on extensions to
Slide 15: Technical Overview
wm BMG TECHNICAL OVERVIEW
Slide 16: Northern Minas Gerais Iron Ore Province
Northern Minas Gerais Iron Ore Province Neoproterozoic Rapitan type deposits associated with diamictites and hematitic quartzites. Current exploration and feasibility by Vale, Honbridge, Eurasian Resources (ENRC), Mtransminas and others has established a firm foundation for a large iron ore indu
Slide 17: Rapitan Iron Ore Deposits
Rapitan Iron Ore Deposits Formed in Neoproterozoic glacio-marine environments in diamictite host rocks Deposited formed under oxidising – reducing cycles from Fe+ and Si+ ions in solution Coarse grained and friable near surface Compact ores readily crushed (low bond work index) Hematite, m
Slide 18: Aeromagnetic Signature
Aeromagnetic Signature Rio Pardo Project Vale Deposit Honbridge Block 7 Mtansminas Deposit ENRC Jiboia Deposit Honbridge Block 8 Gema Verde Project 18
Slide 19: Gema Verde Project
wm BMG GEMA VERDE PROJECT
Slide 20: Gema Verde Project
Gema Verde Project The advanced Gema Verde Project adjoins, and is an extension of, the Block 8 resource in the Vale do Rio Pardo Project owned by Hong Kong listed Honbridge Holdings Ltd Honbridge is moving to definitive feasibility stage with port and pipeline studies Continuity of the minera
Slide 21: Gema Verde Aeromagnetics
Gema Verde Aeromagnetics Four Gema Verde tenements shown overlying aeromagnetic image Honbridge Block 8 orebody (2.6 billion tonnes) abuts the central tenement Further potential exists to the west and down dip from Block 8 21
Slide 22: Gema Verde Drill Locations
Gema Verde Drill Locations . 22
Slide 23: Drilling and Interpretation
Drilling and Interpretation . 23
Slide 24: Gema Verde Drill Results
Gema Verde Drill Results 8.73m at 30.7% Fe from 4.65m in FSD019 10m at 29.3% Fe from 24.76m in FSD031 15.06m at 21.0% Fe from 74.45m in FSD023 20m at 20.3% Fe from 62.62m in FSD012 17.4m at 24.8% Fe from 16.65m in FSD005 20m at 21.6% Fe from 68.7m in FSD014 20.4m at 21.5% Fe from 59.8m in FSD033 20m
Slide 25: Rio Pardo Project
wm BMG RIO PARDO PROJECT
Slide 26: Rio Pardo Project
Rio Pardo Project Northern extensions of strong magnetic trends associated with Vale, Honbridge, ENRC and Mtransminas ore bodies Includes a large number of Canga (oxidised iron rich zones) overlying diamictites Surface sampling of canga and diamictite averaged 28.3% Fe Scout RAB drilling con
Slide 27: Oxide Caps - Canga
Oxide Caps - Canga Oxidized caps readily identified in float and outcrop 27
Slide 28: Rio Pardo Project Map
Rio Pardo Project Map Rio Pardo Group of Tenements STRONG AEROMAGNETIC SIGNATURE Josilene Zone Scorpion Zone 28
Slide 29: Work Program
Work Program Five targets tested with the modest first phase of Reverse Circulation drilling. Six further targets remain to be tested when appropriate drill rigs can be sourced in this area of Brazil. The drill program has been successful in identifying a major mineralised zone An extensive zo
Slide 30: Rio Pardo - Prospects
Rio Pardo - Prospects VARGAM GRANDE 10 km to the north TOWER JORGE MARLI TEIU SEM TERRA CARBON HILL JOSILENE SCORPION Red Prospects have PIT BULL Had preliminary drill testing ALINE 30
Slide 31: Drill Results
Drill Results The Josilene – Scorpion mineralised zone is Josilene Prospect* continuous and extends for 13 kilometres 16 metres at 26.9% Fe from surface in JORC012 within the project* 20 metres at 18.7% Fe from 112m in JORC003 incl. 4m at 36.22% Fe from 128m 44 metres at 17.0% Fe from surface in J
Slide 32: Josilene – Scorpion Zone
Josilene – Scorpion Zone JOSILENE 13 kilometre strike length SCORPION 32
Slide 33: Beneficiation and Infrastructure Solutions
BENEFICIATION AND INFRASTRUCTURE SOLUTIONS 33
Slide 34: Beneficiation
Beneficiation The proposed process route will be similar to that used at the operating Alegria Mine owned by Samarco (a joint venture between BHPBilliton and Vale) in southern Minas Gerais The ore is screened, crushed and classified to feed the primary mills. This circuit assures sufficient redu
Slide 35: Mineralogy and Rock Types
Mineralogy and Rock Types Components include hematite, magnetite and silica with flattened rock fragments. Example taken from exposures at Jiboia 35
Slide 36: Process Route
Process Route Coarse grained hematite - magnetite - silica mineralization Siliceous rock fragments included in Diamictites Easily upgraded from 15 to 25% Fe to pellet feed at 65 - 68% Fe Crush and Grind to ~0.5 mm Magnetic separation to extract magnetite De-slime to remove ultra fines
Slide 37: Conceptual Beneficiation Flow Sheet
Conceptual Beneficiation Flow Sheet 37
Slide 38: Benefits of Pelletising
Benefits of Pelletising Market premium over lump and fines ores Standardization – uniform size range, generally within a range of 9 to 16 mm Purity – 63 to 68 % iron, mainly Fe²O³ Cost-effectiveness – virtually no loss on ignition while a high and uniform porosity of 25 to 30% allows fast re
Slide 39: Brazil Rail Infrastructure
Brazil Rail Infrastructure The Brazilian Government has commenced a program of rail infrastructure construction to extend across the country. The EF334 line from Ilheus to Caetite will be completed by mid 2012 39
Slide 40: Port Option - Ilheus
Port Option - Ilheus Fe Port is operational Draft: 10 m ALTERNATIVES: • Pipe Line Cargo Handling Capacity: Up to 45.000 t Panamax Vessels • F.C.A Rail Road Expansion to Cape size vessels 40
Slide 41: Opportunity Recap
Opportunity Recap Major Iron project in world class Iron province in Brazil - early mover advantage permitted BMG to secure substantial land holding with multiple large prospects with ground floor entry Potential multi billion tonnes at 17% to 30% Fe with regional infrastructure under constructi
Slide 42: Corporate Directory
Corporate Directory Directors Principal Places of Business Australia: Peter O’Connor (Chairman) Level 14, 191 St George’s Terrace Bruce McCracken (CEO) Perth, WA, 6000, Australia Email: bmccracken@bmgl.com.au Malcolm Castle (Exec.) Telephone: (08) 9424 9390, Fax: (08) 9321 5932 Email: mcastle@bmgl.c
Slide 43: Drill Intercept Criteria
Drill Intercept Criteria Rio Pardo Reverse Circulation intercepts Significant zones of mineralisation are based on a lower cut off of 15% Fe. All assay intercepts are down hole intervals in vertical holes and at this stage the structure of the host rocks is not known in sufficient detail to estimate
Brazilian Metals Group — Investor Presentation (June 2011) on 6ix