Iron Road Ltd · ASX:IRD
Iron Road — RIU Explorers Conference 2012
25 slides from Iron Road's conference presentation, Feb 22, 2012
Slide 1: On The Road To Production
For personal use only On The Road To Production RIU Explorers Conference Fremantle 21-22 February 2012
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements For personal use only This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates
Slide 3: Who is Iron Road?
Who is Iron Road? For personal use only • A mid-tier iron ore project developer (~$75M market cap) • Focused on Central Eyre Iron Project (CEIP) – Prefeasibility Study indicates a robust 12.4Mtpa project is viable, with base case NPV $1.1 billion – Competitive capital and operating costs – Favourabl
Slide 4: Corporate Overview
Corporate Overview For personal use only Board $1.20 Julian Gosse Non-exec Chair Ian Hume Non-exec $1.00 Jerry Ellis Non-exec $0.80 Matthew Keegan Non-exec Andrew Stocks MD $0.60 $0.40 Major Shareholders The Sentient Group 32.2% $0.20 Management 10.4% Columbia University 6.6% $0.00 Sep 08 Sep 09 Sep
Slide 5: Central Eyre Iron Project Overview
Central Eyre Iron Project Overview For personal use only • Centrally located on Eyre Peninsula, South Australia • Favourable geographic, climatic location • Supportive state and local governments • Good relationships with local communities • Large scalable magnetite project, with low variability • G
Slide 6: Central Eyre Iron Project
Central Eyre Iron Project For personal use only 6
Slide 7: Central Eyre Iron Project
Central Eyre Iron Project For personal use only 7
Slide 8: Iron Road's Journey
Iron Road’s Journey For personal use only ASX IPO First drilling at CEIP – First Met Test Work Stage II drilling Maiden Resource • June 2008 Stage I • January 2009 • February 2009 - June • Boo-Loo • $0.20 per share • September 2008 • High quality concentrate 2009 • 110Mt @ 19.4% Fe confirmed Global
Slide 9: Iron Road's Approach
Iron Road’s Approach For personal use only Successful iron ore developers succeed in one of two ways: • BOTH methods require a consistent, • BUILD AND PRODUCE, potentially with partner quality driven approach – Fortescue, Mt Gibson, Atlas, Gindalbie • Substandard preparatory work will not • DEVELOP
Slide 10: CEIP Prefeasibility Study Outcomes
CEIP Prefeasibility Study Outcomes For personal use only Substantial 12.4Mtpa iron product operation outlined PFS Result by Numbers Significant competitive advantages • Coarse grind size (-106 micron) Capex – direct A$1,744M o reduced power use, lower operating costs Capex – indirect A$517M • Blast
Slide 11: Project Resources & Geology
Project Resources & Geology For personal use only • Project resource made up of coarse grained magnetite – Low variability, mineralisation is consistent through ore body – Excellent product characteristics offset lower head grade • Allows conventional open cut mining with a low strip ratio – Optimis
Slide 12: Simple Processing
Simple Processing 67.6Mtpa For personal use only MURPHY SOUTH DEPOSIT ROM Ore P80~ 30 mm Mass 100% Crushing Fe: 16.8% SiO2: 53.0% Cleaner W-LIMS HPGR Tails Mass 43% DRY WET Rougher W-LIMS P80~106 m P80~8 mm 61% Fe: 24% Concentrate SiO2: 47 % 12.4Mtpa Iron content increased Tails Mass 18% Mass 39% F
Slide 13: Benchmarking Concentrate Grade
Benchmarking Concentrate Grade For personal use only 72 GIR-Yerecoin EMG-Beyondie VMC-Yalgoo Concentrate Grade - % iron 70 ARH-Balmoral IRD-CEIP (40 micron) AGO-Ridley IRD-CEIP (53 micron) IRD-CEIP (75 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow CXM-Fusion IRD-CEIP (106 micron) ACS-Magnetite Ra
Slide 14: Premium Concentrate Product
Premium Concentrate Product For personal use only • Grind size of -106µm (p80) resulting in 67% Fe concentrate • Potential -125µm option under investigation • To be marketed as a high quality sinter feedstock • Blast Furnace product characteristics – no need for pellet plant • Expected to be suitabl
Slide 15: Export Solution
Export Solution For personal use only Base case PFS includes slurry pipeline to port PFS includes costs and charges to use a third-party port Potential upside, including rail options, have been considered at scoping level with encouraging results More detailed rail review underway Project scale suff
Slide 16: Adding Value Through Resource Growth
Adding Value Through Resource Growth 3,000 2,756 2,811 For personal use only Near Term 2,687 Target 2,597 • Base case incorporates 2,478 2,304 maiden Murphy South Mineral 2,090 NPV - $ millions Resource. 2,000 1,808 • Murphy South Mineral Resource is now 1.8Bt. Base 1,399 Case • Further drill progra
Slide 17: Hambidge
Hambidge For personal use only • Completed four widely spaced traverses –12 diamond holes and 5,388m of drilling. • The magnetic anomaly targeted at Hambidge is over 3km in length and over 1km wide. • Several drill holes intersected continuous magnetite gneiss of up to 200m apparent thickness. • An
Slide 18: Community Engagement
Community Engagement For personal use only Iron Road believes that being part of a community is an important part of doing business • Major Sponsor of a number of local community events since 2009 • Toll free contact number and extensive community program in place • Community stakeholder consultatio
Slide 19: Where to now
Where to now For personal use only Set to become South Australia's premier iron ore mine Focused on Central Eyre Iron Project (CEIP) • Strengthening the Iron Road team • Commencing definitive feasibility study • Wider government and communities consultation and involvement • Favourable infrastructur
Slide 20: A Note on Iron ore
A Note on Iron ore For personal use only • Global iron ore supply is dominated by Australia and West African Projects NPV (US$m) Brazil. Simandou -Rio 3,090.6 • Significant capital is being directed by China to the Kalia 502.5 development of a new province in West Africa. Western Range -Mt. 446.8 Ni
Slide 21: Summary
Summary For personal use only Near term value enhancing events "In the case of iron ore, • Murphy South eastern extension drilling. we expect that over the • Project development partner discussions next eight years, global commenced, active engagement with a number of supply additions need to groups
Slide 22: Geology Manager, Milo Res
Geology Manager, Milo Res For personal use only 22
Slide 23: On the Road to Production
For personal use only On the Road to Production www.ironroadlimited.com.au Andrew Stocks GPO Box 1164 admin@ironroadlimited.com.au Managing Director Adelaide SA 5001
Slide 24: Appendix
For personal use only Appendix
Slide 25: Appendix – CEIP Resource Statement
Appendix 1 – CEIP Resource Statement For personal use only Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Murphy South Indicated 1,108 16.0 53.2 12.9 0.08 0.4 Inferred 668 16.4 52.7 12.8 0.08 1.3 Boo-Loo Inferred