Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — South West WA Resources Development Conference 2011
23 slides from Australian Silica Quartz's conference presentation, May 25, 2011
Slide 1: Bauxite Resources Ltd ASX/Media Release
BAUXITE RESOURCES LIMITED ABN 72 119 699 982 ASX/MEDIA RELEASE DATE 25 MAY 2011 Bauxite Resources Ltd South West WA Resources Development Conference Presentation Please find attached a presentation to be delivered to the South West WA Resources Development Conference 25 - 26 May 2011. ENDS For furth
Slide 2: South West WA Resources Development Conference
BAUXITE RESOURCES LTD South West WA Resources Development Conference 25-26 May 2011
Slide 3: Disclaimer
Disclaimer Forward Looking Statements No representation or warranty, express or implied, is made by Bauxite Resources Ltd that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Bauxite Resources Ltd,
Slide 4: Company Profile
Company Profile Stock Code: BAU Ordinary 235m Options 25m Market Cap $55m (17/May/11) Bank Debt 0 Current cash $41m (17/May/11) ASX Listed Oct 2007 Scott CEO Donaldson
Slide 5: Bauxite Resources project map
Darwin e Northern Territory Project Kimberley Project @ Brisbane Geraldton « Darling Range Project Perth © Bunbury ¢ © Adelaide @Sydney ‘Albany Melbourne . BAUXITE RESOURCES LIMITED PP sovan
Slide 6: Darling Range tenements
Darling Range tenements (granted & under application) • ~24,000 km2 tenement area • 40 ELs granted, 71 Pending • 286 properties have signed agreements
Slide 7: Kimberley tenements
Kimberley tenements • Recent grant of 5 exploration licences with further 8 in application • Limited program of works for 2011/2012
Slide 8: History of bauxite & alumina in WA
History of bauxite & alumina in WA • Bauxite first identified in WA in 1905, first mined in 1955, with first exports going to Japan in 1960 • South west Western Australia acknowledged as largest producing alumina region in the world supplying over 20% world production (WA Government statistics) • Da
Slide 9: Current Joint Ventures
Current Joint Ventures • Yankuang Group (YK) • Shandong #1 Institute of Geology & Minerals Exploration (Shandong Bureau)
Slide 10: Shandong Joint Venture
Shandong Joint Venture Relationship timeline Nov 2008 - Initial MOU signed Feb 2009 - Shandong Bureau establishes offices in Perth in (HD Mining Pty Ltd) March 2009 - Key terms agreed for Farm-in and Joint Venture May 2009 - Formal signing and placement June 2009 - FIRB approval and Chinese regulato
Slide 11: BAUXITE
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Slide 12: Shandong Joint Venture
Shandong Joint Venture Shandong No 1 Institute of Geology and Minerals Exploration (Shandong Bureau) • 1,000km2 in Darling Range • Placement investment $10M (26 June 2009) • Bauxite rights only • Shandong earning 60% ownership by funding 100% of exploration costs to BFS
Slide 13: Yankuang Joint Ventures
Yankuang Joint Ventures Relationship timeline April 2008 - Bauxite Resources & YK initial contact June 2009 – MOU signed and placement monies received Aug 2009 - further MOU signed Nov 2009 - FIRB approval received Jan 2010 - HoA signed and 19.5M share placement received (~$10M) Feb 2010 - YK Direct
Slide 14: Slide 14
Slide 15: Bauxite Alumina Joint Ventures
Bauxite Alumina Joint Ventures Alumina Refinery Joint Venture Target (YK) • 1.1Mtpa Alumina refinery with a feed of 3-3.5Mtpa bauxite • YK will pay 90% of BFS 91% of the refinery construction cost and receive 70% of the alumina product • BRL will pay 9% of the refinery construction cost and will rec
Slide 16: Bauxite Alumina Joint Ventures
Bauxite Alumina Joint Ventures Alumina Refinery Joint Venture Proposal • Work towards site selection for the alumina refinery has commenced • Bauxite Resources Joint Venture Pty Ltd make consensus decisions under a joint management committee • Target refinery construction to be substantially commenc
Slide 17: What each party achieves
What each party achieves Bauxite Resources Ltd • Opportunity to build refinery as a junior • Opportunity to discover & realise full potential value of bauxite resources • Long life project to underpin future growth • Ability to benefit from alumina price upside not compromised • Project development
Slide 18: What each party achieves
What each party achieves Yankuang Corporation • Access to land holding and resources • Supply of ~ 733,000 tpa alumina from refinery • Alumina/Bauxite supplied at cost of production rather than market cost Shandong Bureau • Local Australian knowledge and decreased political risk • Access to land hol
Slide 19: Challenges & Issues
Challenges & Issues • Corporate structure differences • Each JV partner has a Director on the BRL board • Definitions of Roles– Secretary, CFO • Difference in expectations and regulatory approvals • Language barriers – meanings lost in translation, translation requirements requiring resources and ti
Slide 20: Challenges & Issues
Challenges & Issues • Cultural differences in business methods • Understanding Chinese/Australian Bureaucracy • Understanding the competitive nature of Chinese government departments • Tyranny of Distance
Slide 21: Positives
Positives • Willing Partners • Well Funded • Willingness to assist • Clear vision of target • Enthusiastic & driven towards result • Technically able • Understanding of Australian business & government drivers • Closely aligned business interests and desired outcomes
Slide 22: Remember
Remember • Successful Joint Ventures are ultimately about shared vision and mutual respect • Summarised as people, people, people
Slide 23: North Darling Range exploration drilling March 2011
North Darling Range exploration drilling March 2011
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