Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Africa Iron Ore Conference 2012
37 slides from Equatorial Resources's conference presentation, Jun 7, 2012
Slide 1: Africa's Next Major Iron Company
Africa’s Next Major Iron Company For personal use only Developing Large Scale Iron Projects in the Republic of Congo ASX: EQX Africa Iron Ore Conference – June 2012
Slide 2: Disclaimer
DISCLAIMER For personal use only IMPORTANT NOTICE • This document should be read in conjunction with any public needs of any recipient of this document. Recipients of this document Australian Institute of Geoscientists and has sufficient experience announcements and reports (including financial repo
Slide 3: Unlocking Africa's Iron Ore Resources
For personal use only UNLOCKING AFRICA’S IRON ORE RESOURCES 3.6 – 6.1 BILLION tonne Iron Exploration Target* across two 100% owned projects Two large footprints in the Congo craton Access to existing operational rail and port Over A$85M in cash Near term production potential at Mayoko-Moussondji Mas
Slide 4: Global Iron Ore Demand
For personal use only GLOBAL IRON ORE DEMAND Source: Raw Materials Group 4
Slide 5: If World Demand Doubles by 2030, Where Could the Extra Production Come From?
For personal use only IF WORLD DEMAND DOUBLES BY 2030, WHERE COULD THE EXTRA PRODUCTION COME FROM? U.S. Geological Survey, Mineral Commodity Summaries, January 2012, Expected Iron Ore Production Brazil, South Africa, India, Australia 2011 5
Slide 6: Central & West African Iron Ore: The Race to Production
For personal use only CENTRAL & WEST AFRICAN IRON ORE THE RACE TO PRODUCTION Massive Scale High Quality resources Coarse Grained Ore Bodies Low cost of production 6
Slide 7: The Infrastructure Reality
For personal use only THE INFRASTRUCTURE REALITY Currently only 4 producing iron ore mines amongst the many regional opportunities New iron production is only coming on stream where 2 conditions exist: • Ore bodies in close proximity to existing rail infrastructure; and • Presence of high grade, nea
Slide 8: Bienvenue a Brazzaville!
For personal use only BIENVENUE A BRAZZAVILLE! STABLE “OIL COUNTRY” ACTIVELY GROWING ITS MINING SECTOR Former French colony recently celebrated 50 years of independence Oil majors including Total, Eni and Chevron operating uninterrupted for over 30 years and currently investing over US$2.5Bn per ann
Slide 9: Mining in the Republic of Congo
For personal use only MINING IN THE REPUBLIC OF CONGO Congo Brazzaville now on the investor radar, attracting significant inward investment Economic diversification away from dependence on oil New mining code adopted in 2005 Favourable fiscal terms for miners • 3% Royalty on Revenues • 10% governmen
Slide 10: Mayoko-Moussondji Iron Project
For personal use only MAYOKO-MOUSSONDJI IRON PROJECT 10
Slide 11: What We Have Achieved So Far: Project Development
For personal use only WHAT WE HAVE ACHIEVED SO FAR… PROJECT DEVELOPMENT 23,809 metres of drilling Airborne geophysics and data modelling Extensive bulk sampling and met test work Addition of 2 new iron permits 11
Slide 12: What We Have Achieved So Far: Supporting Infrastructure
For personal use only WHAT WE HAVE ACHIEVED SO FAR… SUPPORTING INFRASTRUCTURE World class camp facilities Major airstrip refurbishment On-site sample prep laboratory installed Road construction and upgrade program 12
Slide 13: What We Have Achieved So Far: Community & Environment
For personal use only WHAT WE HAVE ACHIEVED SO FAR… COMMUNITY & ENVIRONMENT Employment of over 200 staff Graduate training programs - geology & business ESIA Baseline & Scoping Work complete Major community development initiatives 13
Slide 14: Equatorial & Exxaro
EQUATORIAL & EXXARO For personal use only EQUATORIAL EXXARO MAYOKO- MAYOKO- PROJECT MOUSSONDJI LEKOUMOU Ownership 100% 92% Magnetic strike – 12km 6.5km main prospect Distance from rail 500m 2km Exploration Target * 2.3 – 3.9Bnt at 1.6 – 2.6Bnt at – Total for project 30-65% Fe 30-65% Fe Exploration T
Slide 15: Exploration Target & Airborne Geophysics
For personal use only EXPLORATION TARGET & AIRBORNE GEOPHYSICS Airborne geophysics identified over 46km of magnetic anomalies on 5 prospects 2.3 - 3.9 BILLION TONNES* exploration target of iron mineralisation (grade 30% - 65% Fe), of which: • 500 to 900 MILLION TONNES* of enriched “hematite cap” pot
Slide 16: Drilling Program Aimed at Hematite Cap
For personal use only DRILLING PROGRAM AIMED AT HEMATITE CAP Geological model of enriched hematite caps overlaying extensive zones of magnetite BIF Ongoing 70,000m drilling program targeting high grade DSO and pDSO hematite 3 drill rigs on site with 23,809m of RC and diamond drilling completed on 21
Slide 17: Geological Model Confirmed
For personal use only GEOLOGICAL MODEL CONFIRMED 17
Slide 18: Metallurgical Testing Program
For personal use only METALLURGICAL TESTING PROGRAM ORE TYPE TEST WORK PROGRESS DSO (Zone 1) Bulk samples and core Bulk samples collected, testing commenced pDSO (Zone 2) Bulk samples and core Bulk samples collected, testing commenced Bulk samples collected, initial tests completed Colluvium (Zone 3
Slide 19: Focus on Premium Iron Products
For personal use only FOCUS ON PREMIUM IRON PRODUCTS Metallurgical test program being managed by leading industry expert Dr John Clout Results to date are extremely encouraging and demonstrate potential for high quality premium iron products Promising metallurgical properties of Mayoko ore: • Hemati
Slide 20: Excellent Davis Tube Recovery Results
For personal use only EXCELLENT DAVIS TUBE RECOVERY RESULTS DTR testing carried out on samples of fresh Magnetite BIF from Makengui High quality magnetite concentrate produced with a very high mass recovery (50%) and coarse grind size (63 microns) DTR results superior to other regional and internati
Slide 21: Colluvial Iron Mineralisation Test Work
For personal use only COLLUVIAL IRON MINERALISATION TEST WORK Colluvial material (DSO and pDSO) deposited over time on hill sides Samples collected from central part of Makengui Prospect for met testing Initial tests used wet screens and simple wet gravity separation Final flow sheet represents a ty
Slide 22: Colluvial Iron Mineralisation
For personal use only COLLUVIAL IRON MINERALISATION Summary bulk sample testing results 22
Slide 23: Railway Access and Development
For personal use only RAILWAY ACCESS AND DEVELOPMENT Equatorial has a current agreement with rail authority (CFCO) allowing access to the railway line Framework in place for 25 year User Agreement Rail Engineering & Investment Study completed by R&H Railway Consultants for the operating parameters o
Slide 24: Port of Pointe-Noire Access and Development
For personal use only PORT OF POINTE-NOIRE ACCESS AND DEVELOPMENT One of the largest ports in Central & West Africa Agreement signed with PAPN to cooperate on studies on the infrastructure required to export iron ore from the existing port Developing options at both Pointe-Indienne and the existing
Slide 25: Existing Port of Pointe-Noire
For personal use only EXISTING PORT OF POINTE-NOIRE 25
Slide 26: Proposed Port at Pointe-Indienne
For personal use only PROPOSED PORT AT POINTE-INDIENNE 26
Slide 27: The Race to Production
For personal use only THE RACE TO PRODUCTION Near term DSO production potential using existing rail and port infrastructure Maiden resource expected Q3 2012 Feasibility studies progressing Strong rationale for regional cooperation 27
Slide 28: Community and the Environment
For personal use only COMMUNITY AND THE ENVIRONMENT Environment • Mayoko ESIA terms of reference completed by SRK and Genivar and submitted to government in early 2012 • Permanent consultants on site at Mayoko and Badondo Employment • Over 200 staff employed • Graduate training programs for geology
Slide 29: Badondo Iron Project
For personal use only BADONDO IRON PROJECT 29
Slide 30: Regional Project Potential
For personal use only REGIONAL PROJECT POTENTIAL PROJECT COMPANY INFERRED & INDICATED OTHER INFORMATION RESOURCE Takeover by Hanlong Mining for Mbalam 521Mt @ 61% Fe A$1.7 Billion Strategic investment by Glencore Avima 580Mt @ 60% Fe and Severstal Exploration Target* of 1,300 – Badondo Drill program
Slide 31: Iron Mountains of the Northern Congo
For personal use only IRON MOUNTAINS OF THE NORTHERN CONGO 31
Slide 32: Exploration to Date
For personal use only EXPLORATION TO DATE Historical field reconnaissance by BRGM lead to the discovery of the Badondo deposit Airborne geophysics program over entire project area Over 22km of prospective iron strike identified within three distinct target prospects: • Badondo Prospect: 9km strike •
Slide 33: Drill Program Commencing
For personal use only DRILL PROGRAM COMMENCING Strategy: Low cost, highly efficient scout drill program completed within short time frame Diamond drill rig currently being mobilised to site Initial results expected H2 2012 33
Slide 34: Management Team
MANAGEMENT TEAM For personal use only Ian Middlemas Chairman Henri De Andrew Steers Dinechin Chief Financial Country Manager, Officer ROC John Welborn Ian Cooper Hugo Schumann Exploration Managing Executive – Head Manager, Director & CEO of Business Mayoko- Development Moussondji Kate Harcourt Sean
Slide 35: Capital Structure
For personal use only CAPITAL STRUCTURE EQUATORIAL RESOURCES LTD (ASX: EQX) As at 5 June 2012 Current Issued Capital 117.2 million shares Fully Diluted 130.7 million shares Market Capitalisation (Undiluted @ A$2.01) A$235.6 million Cash A$85.0 million Top 20 Shareholders: 79.6% 16.1% 10.2% 6.7% Dire
Slide 36: The Equatorial Advantage
For personal use only THE EQUATORIAL ADVANTAGE Access to Existing Infrastructure Massive Scale of Projects High Quality Product Potential Well Funded Rapid Development Progress AFRICA’S NEXT MAJOR IRON COMPANY 36
Slide 37: For personal use only
ASX: EQX www.equatorialresources.com.au For personal use only AUSTRALIA: REPUBLIC OF CONGO: UNITED KINGDOM: Level 2, BGC Centre 03 Avenue de Loango, 2eme. 6th Floor, 56 Haymarket 28 The Esplanade Etage, Ndjindji, Arrondissement 1 London SW1Y 4RN Perth WA 6000 Australia EP Lumumba, Pointe-Noire Unite
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