Bci Minerals Ltd · ASX:BCI

Bci Minerals — BC Iron — Diggers and Dealers 2009

25 slides from Bci Minerals's conference presentation, Aug 4, 2009

  1. Slide 1: Nullagine Iron Ore Project

    For personal use only Nullagine Iron Ore Project Diggers and Dealers August 2009 Mike Young Managing Director

  2. Slide 2: History of BC Iron

    BC IRON LIMITED For personal use only History of BC Iron  BC Iron lists on ASX in December 2006  Resource drilling identifies DSO at Outcamp - May 2007  MoU for rail and port access with Fortescue Metals Group - July 2007  Drilling to Ore Reserves - 2007 through 2009  HOA with FMG – JV and rail

  3. Slide 3: BC Iron - Capital & Management

    BC IRON - CAPITAL & MANAGEMENT For personal use only Capital Structure Number Board Shares 80.3M Tony Kiernan – Chairman Options 5.7M Mike Young – Managing Director Fully Diluted Total 86.0M Garth Higgo – Non-exec Director Market Cap @ $1.10 $88 M Terry Ransted – Non-exec Director Steven Chadwick –

  4. Slide 4: Nullagine Iron Ore Project

    NULLAGINE IRON ORE PROJECT For personal use only  Channel iron deposit – Yandi style pisolite  Direct Shipping, high-quality Sinter Blend Ore  Infrastructure – Rail and Port Haulage with TPI/FMG  Joint venture with Chichester Metals Pty Ltd (FMG)  Marketing – up to 50% offtake by Tennant Metals

  5. Slide 5: Nullagine Iron Ore Project

    NULLAGINE IRON ORE PROJECT For personal use only Bonnie Creek CID  Reserves of 36 Mt @ 57% Fe Bonnie Creek  Resources of 51 Mt DSO @ 57.0% Fe Shaw River  High CaFe, low Al2O3 & ultra-low P  Mesa-style mineralisation Nullagine River & Shaw River CID Nullagine  DSO & upgrade CID (~15 Mt) River FM

  6. Slide 6: Joint Venture & Infrastructure

    JOINT VENTURE & INFRASTRUCTURE For personal use only Nullagine Joint Venture  BC Iron & Chichester Metals - 50:50 unincorporated JV  Up to $10m contribution each – remainder project finance  BCI manages JV – mining, sales, marketing  TPI manages rail haulage and port services  Price participati

  7. Slide 7: Nullagine Iron Ore Project - Project Parameters

    NULLAGINE IRON ORE PROJECT For personal use only Project Parameters  36Mt 57.6% Fe (65% CaFe) Reserves Warrigal Well Bonnie East  Surface mining; in-pit crushing Bonnie Creek Coongan Well Outcamp  Startup 1.5 Mtpa, Ramp-up 3  5 Mtpa Coongan  CapEx A$43 to start of mining  OpEx ~$A43/tonne LOM

  8. Slide 8: June 2009 Reserves and Resources Statement

    NULLAGINE IRON ORE PROJECT For personal use only June 2009 – Reserves and Resources Statement (100% BC Iron) Probable Ore Reserves Pit Mt Fe CaFe SiO2 Al2O3 P S LOI1000 Outcamp 19.2 56.8 64.8 3.21 1.92 0.01 0.01 12.2 Warrigal 10.3 57.0 64.5 3.67 2.13 0.02 0.01 11.7 Coongan 6.0 57.0 65.1 2.52 1.82 0.

  9. Slide 9: Pilbara Iron Ore Fines

    PILBARA IRON ORE FINES For personal use only Nullagine DSO Yandi/Robe Pilbara Fines Element Reserve DSO DSO Fe 57 57 – 58.5 58 - 64 Calcined Fe* 65 64 63-65 SiO2 3.2 3–6 3–4 Al2O3 1.9 1.4 – 2.7 1.3 – 2.1 P <0.02 ~0.04 0.05 – 0.09 LOI 12 9-11 3-8 Size -0.15mm 14 5-20 10-30 Direct Shipping Ore – DSO 

  10. Slide 10: Seaborne Fines Comparison

    For personal use only 62 64 72 60 66 68 70 RRF Calcined Fe BHP Yandi FMG Rocket Fines BC Iron Nullagine Mt Newman Pilbara Blend HI Yandi MAC Sishen SSF Carajas LKAB KBF 10 SEABORNE FINES COMPARISON

  11. Slide 11: Seaborne Fines Comparison

    For personal use only 2 4 0 3 5 6 7 1 Carajas Calcined SiO2 LKAB KBF Sishen MAC SSF BC Iron Nullagine Pilbara Blend FMG Rocket Fines Mt Newman HI Yandi RRF BHP Yandi 11 SEABORNE FINES COMPARISON

  12. Slide 12: Seaborne Fines Comparison

    For personal use only 0.0 0.5 1.0 1.5 2.0 2.5 3.0 LKAB KBF Carajas Calcined Al2O3 SSF Sishen HI Yandi BHP Yandi FMG Rocket Fines MAC Mt Newman Pilbara Blend BC Iron Nullagine RRF 12 SEABORNE FINES COMPARISON

  13. Slide 13: Seaborne Fines Comparison

    For personal use only 0.02 0.04 0 0.03 0.05 0.06 0.07 0.08 0.09 0.01 BC Iron Nullagine Calcined P RRF Carajas BHP Yandi LKAB KBF HI Yandi Sishen FMG Rocket Fines SSF MAC Mt Newman Pilbara Blend 13 SEABORNE FINES COMPARISON

  14. Slide 14: Nullagine 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 14

  15. Slide 15: Nullagine Project - Outcamp Prospect

    NULLAGINE PROJECT – Outcamp Prospect For personal use only Bottom of mining 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 15

  16. Slide 16: Nullagine Project - Mining

    NULLAGINE PROJECT – Mining For personal use only VERMEER TL1255 Terrain Leveller  Drill & blast not required  Primary crushing not required VERMEER TL1255 operating at Cloud Break (FMG) – photo by BC Iron  In pit secondary crushing  Mine haul trucks not required 16

  17. Slide 17: The Blast Furnace

    THE BLAST FURNACE For personal use only Blast furnace • Iron ore & coal are added at the top in alternating layers – lump & coke only • Hot air added – creates CO reduces iron oxides • Descending burden melts to create iron metal and slag • CaO, Al2O3, SiO2 affect furnace efficiency • High P affects

  18. Slide 18: 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 the

  19. Slide 19: Sintering Quality

    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 Ignition hood on sinter strand  Low ultra-fines – improves sintering speed  Large fines product sizing (9-10 mm) – lower crushing cost

  20. Slide 20: 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 – High V

  21. Slide 21: China Marketing

    CHINA MARKETING For personal use only Marketing in China – July 2009  Market sentiment is positive  Visited 4 Steel mills and 2 stockists  Production of 2 Mtpa to 6 Mtpa and expanding  Will pay reference price (HI Fines Japanese settlement FY09 – USD0.97 dmtu)  Using or have used Yandi pisolite

  22. Slide 22: Conceptual Timetable

    CONCEPTUAL TIMETABLE For personal use only  Feasibility Study Complete June 2009 Outcamp-Warrigal  Mining Approvals & Agreements 4th Qtr 2009  Test Pit Bulk Sample 3rd Qtr 2009  Construction Commences 2nd Half 2009  Production Start-up 1.5 Mtpa 1st Half 2010 Coongan  Production Ramp-up 3.0 Mtp

  23. Slide 23: BC Iron Limited - path to success

    NULLAGINE IRON ORE PROJECT For personal use only BC Iron Limited – path to success  Mining Reserve High-quality sinter, low Al2O3 & ultralow P  Simple Mining Methods Surface miner, low strip ratio, ore at surface  Infrastructure JV with FMG provides infrastructure access  Market Offtake secure,

  24. Slide 24: 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

  25. Slide 25: For personal use only

    For personal use only Mike Young, Managing Director Blair Duncan, Operations Manager

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