Slide 1: Nova Site Visit and Presentation
13/03/2017 For personal use only NOVA SITE VISIT AND PRESENTATION Attached is a presentation to be given today, by Peter Bradford, Managing Director and CEO, together with key IGO management, the Nova team and senior representatives of Barminco, to attendees of a site visit at the Company’s Nova ope
Slide 2: Nova Site Visit Presentation
INDEPENDENCE GROUP NL For personal use only NOVA SITE VISIT PRESENTATION 13 March 2017
Slide 3: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer For personal use only • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 4: Independence Group Overview
Independence Group Overview Value focused strategy and transformational growth of EBITDA For personal use only A$M Macquarie Research EBITDA Profile A$M Diversified mining company 600 600 500 500 Quality 400 400 Scale 300 300 200 200 Longevity Western Australia 100 100 Geographical focus 0 0 FY08 FY
Slide 5: Nova Overview
Nova Overview World class, low cost magmatic nickel-copper project For personal use only Underground nickel-copper project in ramp up • Located in highly prospective Fraser Range • 350km SE of Kalgoorlie and 350km from port of Esperance in WA • Acquired by IGO in 2015(1) Project timeline is a testam
Slide 6: Nova Partnerships
For personal use only Nova Partnerships 5
Slide 7: Leadership
Nova Leadership Strong and experienced team For personal use only Ross Jennings OHS Manager Rhona Wardman Environmental Reece Margetts Commercial Manager Keith Ashby Sustainability Manager Rob Brougham Processing Manager Scott Steinkrug Chief Financial Officer Brett Hartmann Graham Arvidson Nova Gen
Slide 8: Sustainability and Safety
Sustainability and Safety Focus on health, safety, the environment and local communities For personal use only Nova Lost Time Injury Frequency Rate (LTIFR)(1) 3 2 1.5 1.7 1.3 1.1 1.1 1.3 1.2 1 LTIFR 12 MMA 0.0 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2016 2016 2016 2016 2016 2016 2016 2016
Slide 9: Project summary on a page
Nova Project Project summary on a page For personal use only Deposit Style and Resource Processing (cont.) • Chonolith style magmatic Ni, Cu, Co deposit • LOM design recoveries of 87% Ni and 89% Cu • Ore Reserve of 13.6Mt grading 2.0% Ni, 0.8% • Real time onstream mineral analysis Cu, 0.07% Co(1) •
Slide 10: Significant value unlocked through optimisation
Nova Project Significant value unlocked through optimisation For personal use only Optimisation study in December 2015 • Improved mining schedule and sequencing to prioritise higher-value ore early in the mine life • Accelerated ramp up to fill the processing plant earlier • Captured current contrac
Slide 11: Project significantly de-risked
Nova Project Project significantly de-risked For personal use only Far better progress than envisaged in Feasibility Study Process plant construction completed 4 weeks ahead of schedule First nickel and copper concentrates announced 6 weeks ahead of schedule First nickel concentrate delivered
Slide 12: 12km of mine development completed to date
Nova Project 12km of mine development completed to date For personal use only Nova Mining Schedule C5 Nova Bollinger 11
Slide 13: Mining ramp up slower than planned in recent months
Nova Project Mining ramp up slower than planned in recent months For personal use only Issue and impact Equipment replacement • Recent development slower than planned • 1 x new Sandvik 665 60t truck • Current shortfall of 2.2km relative to design • 1 x new Sandvik 517 Loader • Delays access to high
Slide 14: Reviewing mine design and schedule
Nova Project Reviewing mine design and schedule For personal use only Objective Current development design • What can be done to reduce development shortfall? • What can be done to bring some ore forward? Potential to reduce development required • Optimise extent of lateral development • Potentially
Slide 15: Mining infrastructure and services on schedule
Nova Project Mining infrastructure and services on schedule For personal use only Mine infrastructure • Primary Ventilation system – complete • Return Air Raise (RAR) upgrade – April 2017 • Main mine pumping and piping system – complete • HV electric power ring main system complete • Long term water
Slide 16: Process Plant commissioning and ramp up
Nova Project Process Plant commissioning and ramp up For personal use only Process Plant built by GR Engineering Services • Completed ahead of schedule and on budget • Process plant performance testing in November 2016 and practical completion in December 2016 • First shipment of concentrates to BHP
Slide 17: Metallurgical commissioning and performance
Nova Project Metallurgical commissioning and performance For personal use only Smooth commissioning with no material issues • Minor issues with TETA reagent control • Some replacement of pumps and motors Commissioning hamstrung by lack of ore • Low grade Upper Nova Ore used for commissioning • More
Slide 18: Metallurgical commissioning on low grade ore positive
Nova Project Metallurgical commissioning on low grade ore positive For personal use only kt Nova Mill Feed Last Milling Campaign 60 200 Design rate Average Daily Milling Rate (tph) 50 169 tph 160 40 120 tph 120 30 40% increase in milling rates 20 80 as a result of matching mill media to ore type 10
Slide 19: Grade control drilling
Nova Project Grade control drilling For personal use only • Excellent ground conditions = Good penetration rates : 100m/day/rig • Penetration rates exceeded original plan • 100% of Nova and Bollinger expected to be grade control drilled by December 2017 • 40% complete to date with five drill rigs on
Slide 20: Resource extension drilling outside known resources
Nova Project Resource extension drilling outside known resources For personal use only As development advances we will take early opportunities to drill • C5 currently being drilled • Bollinger East planned As development advance allows potential resource extensions will be tested Bollinger East C5
Slide 21: Exploration around Nova to accelerate in CY17
Nova Project Exploration around Nova to accelerate in CY17 For personal use only People • Dedicated Exploration Manager appointed for IGO’s Fraser Range interests • Strengthened technical staff CY17 work programs • Drill testing of potential resource extensions underway • 2D seismic data collection
Slide 22: R&D and Innovation
R&D and Innovation Data driven exploration For personal use only • Unique Core Scanner • Completed NW-SE • Internal Stratigraphy of Technology – first mover oriented line across lease Intrusions • XRF, RQD, Hi Res Photography, • Sonic and VSP logging of • Metamorphic Petrology SG, Structural holes p
Slide 23: Fraser Range Exploration: Unlocking the search space
Fraser Range Exploration Unlocking the search space For personal use only • Conventional and historic exploration tools have limited depth penetration • New and alternate technologies exist to unlock exploration search space • Examples being undertaken or tested at Nova include: • Seismic – depth pe
Slide 24: Fraser Range Exploration: Consolidation of prospective areas
Fraser Range Exploration Consolidation of prospective areas For personal use only 12,000km2 tenure on Fraser Range Highly prospective belt • Hosts two of Australia’s best gold and base metals discoveries in last 12 years • Underexplored Early consolidation by IGO • Creation of belt scale exploration
Slide 25: Fraser Range Exploration: Regional drilling around Nova
Fraser Range Exploration Regional drilling around Nova For personal use only • New frontier with exploration focus only after Nova discovery in 2012 • Exploration has been limited given prospectivity of the belt, primarily as discontinuous land positions held by underfunded juniors at bottom of comm
Slide 26: Fraser Range Exploration: Deposit analogues
Fraser Range Exploration Deposit analogues For personal use only Nova is a typical chonolith deposit Cross sections of the host intrusion of world class deposits • Over 115km drilling completed to define Nova resource • Nova - Bollinger mineralisation within 1km zone • Discovered July 2012 • Maiden
Slide 27: Exploration
Exploration IGO committed to delivering growth through exploration For personal use only A$33M exploration budgeted across portfolio • Targeting provinces that can deliver multiple gold and base metals projects • Increasing focus on generative and greenfields projects • Expect to grow exploration sp
Slide 28: Concluding Comments
Concluding Comments Diversified mining company delivering cash flow and growth For personal use only Focus on quality, scale and longevity Nova ramping up to name plate in 2017 Significant exploration upside at Nova & on Fraser Range Solid operational and financial performance for 1H17 Value enhance
Slide 29: For personal use only
AS WE GO FROM STRENGTH TO STRENGTH igoO.com.au