Sheffield Resources Limited · ASX:SFX

Sheffield Resources — Investor Presentation (November 2011)

28 slides from Sheffield Resources's investor presentation, Nov 8, 2011

  1. Slide 1: Delivering on Resources Growth

    For personal use only SHEFFIELD RESOURCES LTD ASX:SFX DELIVERING ON RESOURCES GROWTH Investor Presentation 8 November 2011

  2. Slide 2: Competent Persons & Forward Looking Statements

    COMPETENT PERSONS & FORWARD LOOKING STATEMENTS For personal use only COMPETENT PERSONS‟ STATEMENT – EXPLORATION RESULTS The information in this presentation that relates to exploration results has been compiled by Bruce McQuitty and David Archer. Each of Mr McQuitty and Mr Archer has consented to th

  3. Slide 3: Corporate Snapshot

    CORPORATE SNAPSHOT For personal use only Cash Position $3.3m (at 30/9/2011) Board & Management Will Burbury Chairman Capital Structure Bruce McQuitty Managing Director Market Cap $15.8m (undiluted, at 27cps) David Archer Technical Director Shares 58.7m David Boyd Exploration Manager Options 27.2m (2

  4. Slide 4: Summary

    SUMMARY For personal use only HEAVY • Resource inventory totals 4.1Mt HM1 MINERAL • Exploration Target2 of 1.5Bt-2.5Bt @ 1.1-1.3% HM (McCalls) SANDS • Exploration Target2 of 450-850Mt @ 5-10% HM (Dampier) (HMS) • Scoping work commenced, drilling continues IRON ORE • East Pilbara focus for exploratio

  5. Slide 5: Near-Term Strategy

    NEAR-TERM STRATEGY For personal use only HEAVY • Discover and develop a series of mineral sand deposits capable of MINERAL supporting 100,000-150,000tpa heavy mineral concentrate production SANDS • Discover a Tier 1 high TiO2 ilmenite deposit, e.g. McCalls (HMS) • Discover a Tier 1 zircon deposit, e

  6. Slide 6: Delivering on the Strategy

    DELIVERING ON THE STRATEGY For personal use only Sheffield’s contained Valuable HM (VHM)* Resource inventory (0.9% HM cutoff) Deposit Resource Zircon Rutile Leuc. Ilmenite Total VHM Category (‘000t) (‘000t) (‘000t) (‘000t) (‘000t) Yandanooka Indicated 201 117 168 1,072 1,558 Yandanooka Inferred 12 8

  7. Slide 7: Project Locations

    PROJECT LOCATIONS For personal use only  Over 6,000km2 of tenure in WA  Large consolidated tenement holdings  Focus on Mid West region due to infrastructure advantages 6

  8. Slide 8: Right Place… Competitive Advantages of Mid West Region

    RIGHT PLACE… For personal use only Competitive Advantages of Mid West Region  Mostly broadacre farmland  Proximity to roads & rail  “Open” ports  Close to Asian markets  Available energy sources  Abundant groundwater  Proximity to SR plants 7

  9. Slide 9: …Right Time

    …RIGHT TIME For personal use only First Resource at Yandanooka Acquisition of McCalls HMS Project Acquisition of West North Perth Basin Eneabba HMS HMS Tenement Projects from Iluka Applications ASX Listing Dampier Tenement Applications (Pricing data compiled by Sheffield from various open file sourc

  10. Slide 10: Mineral Sands Uses & Markets

    MINERAL SANDS USES & MARKETS For personal use only Two distinct product streams: Zircon ($2,400-$2,600/t)  Main use in the manufacture of ceramics and refractory linings  Global market 1.4Mtpa  Acute shortage of supply Titanium Minerals  Rutile: >95% TiO2 ($1,300-$1,400/t)  Leucoxene: 85-95% Ti

  11. Slide 11: Mineral Sands Project Status

    MINERAL SANDS PROJECT STATUS For personal use only Resources Yandanooka Ellengail West Mine North Resource Estimation Underway McCalls Assays Awaited Drummond Crossing Next Drilling Durack Irwin Stockyard Dampier 10

  12. Slide 12: Yandanooka

    YANDANOOKA For personal use only  Total resource of 71.75 million tonnes @ 2.6% HM1 for 1.84Mt contained HM comprising: 61Mt @ 2.8% HM (Indicated) 10.75Mt @ 1.1% HM (Inferred)  Includes High Grade core of 37.5Mt @ 3.8% HM (Indicated)  High value mineral assemblage: 11.5% zircon, 6.9% rutile, 10.2

  13. Slide 13: Durack

    DURACK For personal use only  Similar dimensions to Yandanooka deposit  25km south of Yandanooka  Limited prior drilling by Iluka  Mineralised at or near surface  Drilling planned Q1 2012 12

  14. Slide 14: Ellengail

    ELLENGAIL For personal use only  Inferred Resource1,2 of 46.45 million tonnes (Mt) @ 2.2% HM, containing 1.04Mt HM  High value assemblage: 8.9% zircon, 8.7% rutile, 63.5% ilmenite and 1.9% leucoxene  3km north of West Mine North 1Refer to Appendix 1 for Resource Tabulation and ASX release dated 2

  15. Slide 15: West Mine North

    WEST MINE NORTH For personal use only  Total Resource1,2 of 42.58Mt @ 2.8% HM for 1.2Mt contained HM comprising: 6.47Mt @ 5.6% HM (Measured) 36.11Mt @ 2.3% HM (Indicated)  Includes high-grade core of 10.09Mt @ 7.7% HM (Measured and Indicated)  High value mineral assemblage: 7.9% zircon, 10.1% rut

  16. Slide 16: McCalls

    MCCALLS For personal use only  Located 110km north of Perth  Drilled by BHP in early 1990s  Sheffield‟s drilling improved on BHP‟s results  Exploration Target1 of 1.5-2.5 billion tonnes @ 1.1-1.3% HM  High TiO2 ilmenite-dominated assemblage  Resource estimate due Q4 2011 1Sheffield Resources h

  17. Slide 17: Irwin

    IRWIN For personal use only  Located 80km south of Geraldton  Sheffield‟s initial drilling confirmed 5km long x 2-3km wide, av. 10m thick zone of mineralisation >1% HM1  Open for another 10km along strike  Mineralisation is dunal style – low slimes  Awaiting mineral assemblage results  Further

  18. Slide 18: Dampier

    DAMPIER For personal use only  60km west of Derby port  Ex Rio Tinto project, dropped during GFC  Exploration Target1 of 450-850Mt @ 5.0- 10.0% HM (Thunderbird prospect)  Potentially open along strike, supported by thorium anomaly  Argo prospect thinner and deeper but open in all directions  D

  19. Slide 19: Dampier

    DAMPIER For personal use only  High average in situ zircon content of In Situ % Zircon 0.63% from RIO drilling* 2  Mineralisation hosted by deeply 1.5 SFX weathered Cretaceous sediments 1  Fine grainsize of mineralisation and 0.5 iron cementation may present some recovery issues 0  However high

  20. Slide 20: High TiO2 Ilmenite

    HIGH TiO2 ILMENITE For personal use only  Preliminary metallurgical testwork shows ilmenite from Yandanooka, West Mine North and McCalls contains 60-66% TiO2  Higher value ilmenite, potentially suitable for chloride route / synthetic rutile processing  Sources of chloride ilmenite are relatively

  21. Slide 21: Mineral Sands Explorers & Miners

    MINERAL SANDS EXPLORERS & MINERS For personal use only Sheffield amongst leaders of the next wave of mineral sands players Active Explorers/PFS Mkt Cap Small-Medium Producers Mkt Cap Sheffield (SFX) $16m Matilda Zircon (MZI) $14m Image (IMA) $30m Mineral Commodities (MRC) $23m Diatreme (DRX) $27m Do

  22. Slide 22: Peer Comparison – Established Australian HMS Explorers

    MINERAL SANDS EXPLORERS & MINERS For personal use only Peer Comparison – Established Australian HMS Explorers Company Mkt Cap Total Resources Exploration targets2 Contained HM (Mt) Sheffield (SFX) $16m 4.11 McCalls: 1.5-2.5Bt @ 1.1-1.3% HM Dampier: 450-850Mt @ 5-10% HM Image $30m 9.53 (IMA) Diatreme

  23. Slide 23: Pilbara Iron Project

    PILBARA IRON PROJECT For personal use only  East Pilbara focus  Significant hematite mineralisation discovered at Three Pools and Panorama during 1H 20111  Exploration Target2 of 20-60Mt @ 58-64% Fe outlined at Three Pools  1st pass drilling completed, assays awaited 2Sheffield has not yet repor

  24. Slide 24: Talc

    TALC For personal use only  Simple “Dig and Deliver” commodity, e.g. Three Springs  Targeting premium grade talc to gain market penetration  Drilling has demonstrated high purity talc at 6 prospects  Definition drilling planned 2012 Luzenac‟s Three Springs mine and new talc beneficiation plant.

  25. Slide 25: Talc Uses & Market

    TALC USES & MARKET For personal use only (source: RTM, 2006) (source: RTM, 2006) 24

  26. Slide 26: Exploration Focus

    EXPLORATION FOCUS For personal use only TALC SCOPING WORK: EXPLORATION TARGET CONFIRM QUALITY OF NORTH PERTH BASIN DRILLING RESULTS TALC AT EXPLORATION PROJECTS PENDING TARGETS INCREASE GLOBAL RESOURCE: RESOURCE GROWTH: DEFINITION DRILLING DURACK THREE POOLS AT PRIORITY TARGETS IRWN PANORAMA SCALE A

  27. Slide 27: Conclusions

    CONCLUSIONS For personal use only  Small Company with successful track record  Rapidly emerging player in resurgent Mineral Sands sector  Creating a significant DSO presence in the Pilbara  “Dig and Deliver” opportunity in Moora Talc Belt  2012 to be a breakthrough year For further information

  28. Slide 28: Appendix: HMS Mineral Resources Tabulation

    APPENDIX 1 HMS MINERAL RESOURCES TABULATION For personal use only Sheffield Resources’ Mineral Resource1 inventory at a 0.9% HM cutoff as at 7 November 2011. Deposit Resource Material Bulk HM Slimes Osize In-situ Zircon Rutile Leuc. Ilmenite Category (Mt)* Density % % % HM % % % % (Mt)* Yandanooka I

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