Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Corporate Update (June 2009)
22 slides from Bci Minerals's corporate update, Jun 12, 2009
Slide 1: Nullagine Iron Ore Project Company Update
For personal use only Nullagine Iron Ore Project Company Update June 2009 Mike Young Managing Director
Slide 2: A brief history in time
NULLAGINE IRON ORE PROJECT For personal use only A brief history in time !! BC Iron lists – December 2006 from combined assets of Alkane and ConsMin !! Resource drilling identifies DSO at Outcamp May 2007 !! MoU with Fortescue Metals Group July 2007 !! Drilling/resource estimates 2007 through 2009 !
Slide 3: Project Key Points
NULLAGINE PROJECT KEY POINTS For personal use only !! Joint venture with Chichester Pty Ltd (FMG) !! Resource 51Mt @ 57% Fe and low Al2O3 and ultra low P !! Direct Shipping, high-quality Sinter Blend Ore !! Mining – simple geometry, surface miners, low capital intensity !! Feasibility Study nearing
Slide 4: JV Key Points
NULLAGINE JV KEY POINTS For personal use only Joint venture with Chichester Metals (FMG) – Rail & Port haulage with TPI !! 50 : 50 unincorporated Joint Venture !! Capital contribution of $10m each !! BC Iron manage mining, trucking, marketing and ore sales !! The Pilbara Infrastructure (FMG) manage
Slide 5: BC Iron - Capital & Management
BC IRON - CAPITAL & MANAGEMENT For personal use only Capital Structure Number Board Shares 60.3M Tony Kiernan – Chairman Options 6.1M Mike Young – Managing Director Fully Diluted Total 65.5M Garth Higgo – Non-exec Director Market Cap @ $1.20 $72M Terry Ransted – Non-exec Director Steven Chadwick – N
Slide 6: Iron Ore Project
NULLAGINE IRON ORE PROJECT For personal use only Bonnie Creek CID !! 51 Mt DSO @ 57.0% Fe (65% CaFe) Bonnie Creek !! ~65 Mt @ 56.0% Fe present Shaw River !! Low Al2O3 & Ultra-low P !! Ore at surface, low strip ratio Nullagine River CID Nullagine !! DSO & upgrade CID (~5 Mt) Shaw River CID FMG Chiche
Slide 7: Joint Venture Total Mineral Resource Estimate – March 09
NULLAGINE JOINT VENTURE For personal use only Total Mineral Resource Estimate – March 2009 DSO Resource Estimate Class Mt Fe CaFe SiO2 Al2O3 P S LOI1000 Measured 1.7 57.0 64.8 3.49 2.15 0.018 0.016 12.0 Indicated 38.6 57.0 64.7 3.15 2.09 0.016 0.011 12.0 Inferred 10.4 57.0 64.8 3.27 2.00 0.013 0.010
Slide 8: Pilbara Iron Ore Fines
PILBARA IRON ORE FINES For personal use only Channel Iron Element Nullagine CID Fine ores Deposits (CID) Fe 57 57 – 58.5 58 - 64 Calcined Fe* 65 64 63-65 SiO2 3.4 3–6 3–4 Al2O3 2.0 1.4 – 2.7 1.3 – 2.1 P 0.013 ~0.04 0.05 – 0.09 LOI 12 9-11 3-8 -0.15mm 14 5-20 10-30 Direct Shipping Ore – DSO !! Little
Slide 9: Seaborne Fines Comparison
SEABORNE FINES COMPARISON For personal use only 9
Slide 10: Project – Outcamp Prospect
NULLAGINE PROJECT – Outcamp Prospect For personal use only 801,000E 802,000E 803,000E 804,000E 805,000E 7,562,000N 7,561,000N Scale 500 m Outcamp-Warrigal !! 38 Mt at 57.0% Fe (64.7% CaFe) !! Low strip ratio !! Outcropping mineralisation 10
Slide 11: Project – Outcamp Prospect
NULLAGINE PROJECT – Outcamp Prospect For personal use only Bottom of conceptual ‘pit’ Water Table !! Shallow “pits” mainly above surrounding plains - mining ore from day 1 !!Above water table - lower environmental impact !!Low OpEx - low strip ratio, use of surface miners 11
Slide 12: Project Parameters
NULLAGINE PROJECT For personal use only Project Parameters !! 51Mt DSO 57.0% Fe (65% CaFe) !! Surface mining; in-pit crushing Outcamp !! Startup 1.5 Mtpa, Ramp-up 3 " 5 Mtpa Coongan !! CapEx A$35-50M !! OpEx ~$40/tonne LOM !! Mine to ship via TPI rail and port !! Ultra-low P, high-quality sinter ble
Slide 13: Project – Mining
NULLAGINE PROJECT – Mining For personal use only VERMEER TL1255 Terrain Leveller !! Drill & blast not required !! Primary crushing not required !! In pit secondary crushing VERMEER TL1255 operating at Cloud Break (FMG) – photo by BC Iron !! Mine haul trucks not required 13
Slide 14: The Right Mill - Blast Furnace
THE RIGHT MILL - BLAST FURNACE For personal use only Blast furnace •! Iron ore & coal are added at the top in alternating layers – lump & coke only •! Hot air is blasted into the bottom of the furnace •! Rising gases provide environment for reducing the iron oxides – Fe2O3 # FeO •! Descending burden
Slide 15: Sinter Feed
SINTER FEED For personal use only Sintering !! All iron ore mines produce a lump and fines but only lump can be used in the blast furnace !! Synthetic lump is made by from fines by high temperature agglomeration - sintering !! Sintering creates “Made to order lump” !! Optimal physical properties of
Slide 16: Sintering Quality: Why is NIOP ore so good?
SINTERING QUALITY For personal use only Why is NIOP ore so good? Chemical advantages !! “Ultra-low” Phosphorous (<0.02%) !! High Calcined Fe (>64%) Physical advantages !! Low ultra-fines – improves sintering speed !! Large fines product sizing (9-10 mm) – lower crushing costs Sintering advantages (R
Slide 17: Joint Venture & Infrastructure
JOINT VENTURE & INFRASTRUCTURE For personal use only Nullagine Joint Venture (NJV) !! BC Iron Nullagine & Chichester Metals - 50:50 !! Up to $10m contribution each – then project finance !! BCI manages JV – mining, sales, marketing !! Price participation on sales over US$60/t up to 3 Mtpa !! Logisti
Slide 18: Marketing
MARKETING For personal use only Marketing Offtake !! Offtake agreement with Tennant Metals $! 25% Offtake as Principal or Agent at BC’s option $! Mechanisms for increased offtake to 50% $! Australian company – reduced counter party risk !! BC Iron Ore Marketing Strategy $! Customised sinter blend –
Slide 19: Conceptual Timetable
CONCEPTUAL TIMETABLE For personal use only !! Tenders major works Completed !! Feasibility Study to BCI & FMG June 2009 !! Mining Approvals & Agreements 4th Qtr 2009 !! Construction Commences 2nd Half 2009 !! Production Start-up 1.5 Mtpa 1st Half 2010 !! Production Ramp-up 3.0 Mtpa 2nd Half 2010 1H
Slide 20: Simple Path to Mining
NULLAGINE IRON ORE PROJECT For personal use only Simple Path to Mining !! Mineable Resource High-quality sinter, low Al2O3 & ultralow P !! Statutory Approvals Aboriginal Agreement, low environmental impact !! Simple Mining Methods Surface miner, low strip ratio, ore at surface !! Infrastructure TPI
Slide 21: For personal use only
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, some of which are out
Slide 22: For personal use only
For personal use only Mike Young, Managing Director Blair Duncan, Operations Manager