Slide 1: Mining 2008 Resources Convention Brisbane 2008
For personal use only The Time The Place The Metal Mining 2008 Resources Convention Brisbane 2008 Mike Young, Managing Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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 fac
Slide 3: Executive Summary
EXECUTIVE SUMMARY For personal use only ASX Listed ¾ Listing on ASX December 2006 to maiden resource March 2008 – 15 months ¾ Major shareholders Æ Consolidated Minerals (Palmary) and Alkane Resources ¾ Cash on hand – circa $6.0M Nullagine ¾ Direct Shipping Ore in a series of Channel Iron Deposits (C
Slide 4: Executive Summary - Corporate
EXECUTIVE SUMMARY - Corporate For personal use only Capital Structure Top Shareholders Number % Total Escrow Shares on issue Trading 35.4 Consolidated Minerals 15.6 26% Dec 2008 Restricted 24.0 Alkane Resources 9.0 15% Dec 2008 TOTAL 59.4 UBS Wealth Management 3.1 5.2% Options 5.7 1.75 65.1 TOTAL 27
Slide 5: Executive Summary - Location
EXECUTIVE SUMMARY - Location For personal use only Project Locations ¾ Pilbara Region Nullagine Project ¾ Close to emerging infrastructure ¾ 35 km north of Fortescue’s Christmas Creek Operation Bungaroo Creek Project ¾ Adjacent to Rio’s Bungaroo CID ¾ Greenfields project ¾ Applications 5
Slide 6: Executive Summary – Nullagine Project
EXECUTIVE SUMMARY – Nullagine Project For personal use only Bonnie Creek Channel Iron Deposit (CID) ¾ 28 Mt DSO 57.4% Fe (65% CaFe) ¾ +30 Mt CID at >56%Fe targeted ¾ 5 DSO prospects - only two at JORC status ¾ High quality sinter blend ¾ Project is adjacent to Fortescue Metal’s Operations at Christm
Slide 7: Bonnie Creek CID – Mineral Resource
BONNIE CREEK CID – Mineral Resource For personal use only Inferred Mineral Resource Estimate – March 2008 DSO Resource Estimate Prospect COG1 Zone Mt Fe CaFe SiO2 Al2O3 P S LOI1000 Outcamp 55.0 DSO 20.6 57.3 64.9 3.18 1.70 0.016 0.017 11.8 Coongan 55.0 DSO 7.4 57.8 65.5 2.39 1.86 0.013 0.017 11.8 TO
Slide 8: Iron & Steel Making: Iron Smelting
IRON & STEEL MAKING For personal use only Iron Smelting • A reaction where iron ore (Fe2O3) is reduced to iron oxide (FeO) then melted to form iron metal • Reduction is carried out at very high temperatures in a blast furnace (~1400o C) • The fully reduced iron is then heated to its melting temperat
Slide 9: Iron & Steel Making: Iron Smelting
IRON & STEEL MAKING For personal use only Iron Smelting • Iron-bearing materials, coke, and lime are charged at the top in alternating layers • Hot air, at around 12500C is blasted into the bottom of the furnace • Coke combustion creates hot CO which travels up, countercurrent to the descending burd
Slide 10: Iron & Steel Making: Sintering
IRON & STEEL MAKING For personal use only Sintering ¾ All iron ore mines produce a lump and a fines product ¾ Fines (and some lump) cannot be charged directly to furnace Æ breaks down when heated ¾ Fines must be agglomerated or sintered ¾ Mechanical characteristics of ores are as important as the gr
Slide 11: Channel Iron Deposits: Sintering Qualities of BCI Ore
CHANNEL IRON DEPOSITS For personal use only Sintering Qualities of BCI Ore Sintering Upgrades BCI Ore ¾ Independantly tested in China Original Assay ¾ Blended with a typical fines sinter 57% Fe feed including Carajas Fines 10% LOI ¾ Sample from composited RC samples at 55.9% Fe - ROM > 57% ¾ Using 1
Slide 12: Channel Iron Deposits – Peer Comparison
CHANNEL IRON DEPOSITS – Peer Comparison For personal use only Other DSO Element/ Typical BCI CID BHP CID RIO CID Deposits Compound Spec Bonnie Ck Yandi Robe R Fe >57 57.4 58.0 57.0 CaFe 65.1 64.2 62.8 SiO2 3–5 3.0 5.0 5.7 Al2O3 < 2.0 1.7 1.3 2.7 P < 0.10 0.02 0.04 0.04 S < 0.03 0.02 0.01 0.01 LOI 11
Slide 13: Bonnie Creek CID Mining Options
BONNIE CREEK CID For personal use only Mining Options Option 1 – Scoping Study ¾ Startup Production 3 Mtpa ¾ CapEx A$85 -100 M ¾ OpEx ~$40/tonne Option 2 – Capex Minimisation ¾ Startup Production 1.5 Mtpa ¾ CapEx A$20 -25 M ¾ OpEx ~$40/tonne ¾ In-pit secondary crushing ¾ Road haul to Christmas Creek
Slide 14: Bonnie Creek CID – Outcamp Prospect
BONNIE CREEK CID – 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 Well ¾ 21 Mt at 57.3% Fe DSO ¾ Low strip ratio 0.8:1 ¾ Outcropping mineralisation 15
Slide 15: Bonnie Creek CID – Outcamp Prospect
BONNIE CREEK CID – Outcamp Prospect For personal use only Conceptual ‘pit’ outline Regional surface ¾ Shallow “pits” mainly above surrounding plains - mining ore from day 1 ¾Above water table - lower impact on subterranean aquatic fauna ¾Low OpEx - low strip ratio, use of surface miners 16
Slide 16: Bonnie Creek CID – Surface Miner
BONNIE CREEK CID – Surface Miner For personal use only VERMEER TL1255 Terrain Leveler ¾ Drill & Blast not required ¾ Primary Crushing not required ¾ Mine Haul Trucks not required VERMEER TL1255 operating at Cloud Break (FMG) – photo by BC Iron 17
Slide 17: Bonnie Creek CID – Warrigal Well Prospect
BONNIE CREEK CID – Warrigal Well Prospect For personal use only 807,000E 808,000E Warrigal Well CID ALL INTERSECTIONS ¾ Directly east of Outcamp Well FROM SURFACE ¾ Target 10 – 15 Mt DSO 7,563,000N 11m @ 58.3% Fe ¾ Up to 27 m intersection CID 13m @ 58.3% Fe ¾ 7.2 km combined length 11m @ 58.4% Fe ¾
Slide 18: Shaw River CID Project
SHAW RIVER CID PROJECT For personal use only Shaw River CID ¾ Med grade CID 763,000E • High CaFe ¾ Detrital deposits Detrital • Low cost mining ¾ Potential source of upgradeable ore CID ¾ Simple to upgrade 764,000E 7,553,000N 7,554,000N 7,555,000N 19
Slide 19: Bonnie Creek CID Project – Infrastructure Solutions
BONNIE CREEK CID PROJECT – Infrastructure Solutions For personal use only Short Term Strategy ¾ Rail Haulage and Port Access Agreement with Fortescue to be negotiated via existing MOU and “at market rates” utilizes available capacity during Fortescue’s production ramp up phase ¾ Rail Haulage Agr
Slide 20: Bonnie Creek CID Project – Development Plan
BONNIE CREEK CID PROJECT – Development Plan For personal use only Timing ¾ Scoping Study Bonnie Creek CID Completed ¾ Baseline Environmental Surveys Completed ¾ Infill drilling Completed ¾ Resource Estimate Second Half 2008 ¾ Feasibility Study First Half 2009 ¾ Mining Approvals Second Half 2009 ¾ Co
Slide 21: Summary
SUMMARY For personal use only So far.... 9 BCI is a Pilbara iron ore developer 100% project ownership 9 Maiden JORC Resource – 28 Mt at 57.4% Fe 9 Exploration targeting an additional 30 Mt DSO 9 Feasibility Study on 3 - 5Mtpa operation – underway 9 “First Grade” Sinter Blend Product – high value in
Slide 22: Iron Ore Investors Checklist
IRON ORE INVESTORS CHECKLIST For personal use only “Fill in the blanks . . . . .” Iron Ore Investor’s Checklist COMPANY BC Iron Hematite – Limonite Yes Simple ore body Yes Direct Shipping Ore Yes Sinter Blend Yes Simple infrastructure Yes Low CapEx Yes Transport 1 Yes Market for ore Yes 1 – see ‘Inf
Slide 23: Mike Young, Managing Director
For personal use only Mike Young, Managing Director