Strike Resources Limited · ASX:SRK
Strike Resources — Global Iron Ore & Steel Forecast Conference 2009
31 slides from Strike Resources's conference presentation, Mar 27, 2009
Slide 1: Replacement Presentation at Global Iron Ore & Steel Conference
Friday, 27 March 2009 MARKET ANNOUNCEMENT Replacement Presentation at Global Iron Ore & Steel Conference The Company encloses a replacement presentation to that released on ASX on 25 March 2009 entitled “Presentation at Global Iron Ore & Steel Forecast Conference”. For further information: Shanker M
Slide 2: Developing a World Class Iron Ore Project: Executive Summary
Amended Presentation 27 March 2009 DEVELOPING A WORLD CLASS IRON ORE PROJECT Strike Resources –March 2009 Summary EXECUTIVE SUMMARY STRIKE IS DEVELOPING A 20 – 40 MTPA HIGH GRADE (+67% FE) IRON ORE OPERATION IN PERU, WITH A CURRENT JORC INDICATED RESOURCE OF 133MT AND A TARGET POTENTIAL OF ~1 – 1.2
Slide 3: Presentation Schedule
PRESENTATION SCHEDULE STRIKE RESOURCES LIMITED – WHO WE ARE OVERVIEW OF THE APURIMAC AND CUZCO PROJECTS THE APURIMAC PROJECT – EXISTING RESOURCE – TARGET POTENTIAL – METALLURGY – PIPELINE – PREFEASIBILITY STUDY RESULTS THE CUZCO PROJECT SUMMARY 3 4
Slide 4: Structure and Strike Board
Structure STRIKE RESOURCES LIMITED IS A PUBLIC COMPANY LISTED ON THE AUSTRALIAN STOCK EXCHANGE (ASX) ASX Code: SRK Ordinary fully paid shares: 130 million Unlisted Options: 18.3 million Fully Diluted Issued Capital 148.3 million Cash : A$71.5 million Major shareholders include: Gallagher Holdings Li
Slide 5: Peru Assets - Structure
Peru Assets - Structure STRIKE HOLDS ITS INTERESTS IN PERU DIRECTLY AND THROUGH A JOINT VENTURE COMPANY, APURIMAC FERRUM S.A. (AF) Strike Resources Limited 51% 70% 30% MAPSA 100% (Peru) Iron Associates Corporation (Panama) 24.5% D&C Group 24.5% (Peru) Strike Resources Peru Apurimac Ferrum S.A. (Peru
Slide 6: Location and Peru Minerals
Location STRIKE HOLDS A MAJORITY CONTROLLING INTEREST IN TWO WORLD CLASS IRON ORE DEPOSITS LOCATED IN PERU, SOUTH AMERICA. 9 Peru Minerals PERU IS A WORLD CLASS MINERAL BELT Peru has 12% to 16 % of the world’s known resources of silver, gold, zinc, copper and lead Peru is among the top five prod
Slide 7: The Apurimac Project: Resource and Target Potential
RESOURCE AND TARGET POTENTIAL HISTORICAL REPORTS ESTIMATE A LARGE HIGH GRADE RESOURCE IN THE TWO AREAS Large untapped deposits of high grade iron ore are rare. Potential target potential from published estimates for Apurimac and Cuzco project areas by the Peruvian Ministry of Energy and Mines (1
Slide 8: Apurimac deposits and concessions
Apurimac APURIMAC DEPOSITS ARE HIGH GRADE AND EASILY ACCESSIBLE. Apurimac deposits are located near a regional airport servicing the major town of Andahuaylas (15km away, population 50,000). 13 Apurimac Concessions THE APURIMAC DEPOSITS ARE AT THE HEART OF A NEW IRON ORE PROVINCE The Apurímac -13.6
Slide 9: Drilling and JORC Indicated Resource at Apurimac
Concessions DRILLING HAS TO DATE ONLY SCRATCHED THE SURFACE AT APURIMAC Airport Airport Numerous +60% Fe rock chip samples on the majority of concessions indicate significant potential for a large target. 15 Resource APURIMAC HAS A JORC INDICATED RESOURCE 133MT @ 59.40% FE AND GROWING. Resource dr
Slide 10: Drilling at Opaban 1 and Opaban 3
Resource DRILLING AT OPABAN 1 INCLUDES A 154M INTERCEPT OPEN AT DEPTH. Detailed gravity and magnetic surveys followed by 31 diamond core holes and 45 RC holes have been drilled to date High grade intercepts including 154 metres at 62.8% Fe. Drilling at (located north and contiguous to Opaban I
Slide 11: Target Potential at Apurimac
Target Potential SIGNIFICANT POTENTIAL EXISTS FOR RESOURCE EXPANSION. Airport Airport CONCESSION COMMENTS Opaban 1 & 3 One third of drill holes in Opaban 1 are open at depth. Further resources are expected at depth, to the north ,west and east in both concessions. Ferrum + MAPSA 2001 Large magnetic
Slide 12: Drilling Campaign and Exploration Methodology
Target Potential AN AGGRESSIVE DRILLING CAMPAIGN SHOULD DELINIATE ~600 - 700MT by 2011 MT “It is noted however that the non-JORC compliant potential quantities referred to above are conceptual in nature due to insufficient exploration and it remains to be ascertained if exploration will confirm the
Slide 13: Exploration Suspended; Community Relations
Exploration RESOURCE DEFINITION HAS BEEN TEMPORARILY SUSPENDED. Reasons: Market uncertainties. Partner funding constraints. 23 Community Relations STRIKE IS BUILDING STRONG GOOD COMMUNITY RELATIONS IN PERU. Local community approvals are required for land access and mining. Company has appoin
Slide 14: Apurimac Mine Development: Pre-feasibility Studies
Apurimac THE APURIMAC PROJECT MINE DEVELOPMENT 25 Prefeasibility Studies A SIGNIFICANT COMPANY MILESTONE WAS ACHIEVED WITH THE COMPLETION OF THE APURIMAC PRE- PRE-FEASIBILITY STUDY IN JULY 2008 STUDY PRIME RESPONSIBILITY Geology, Mining and Resource Snowden Group Mineralogy, Petrology and Characte
Slide 15: Apurimac Production and Mineralogy
Apurimac Production PRODUCTION OF 20 MILLION TONNES PER YEAR IS PLANNED FROM APURIMAC. Mining will be open pit with a low stripping ratio of 1.7:1. Mined ore will be beneficiated and fed into a ~360km slurry. Product mix will be 50:50 Principal Mag/Hem concentrate. Ore Body Product grades of
Slide 16: Mineralogy
Mineralogy L code | LTYPE Core Depth (m) | Summary of macroscopic characteristics Grade est. greyish/dull, cracked to microporous w. distinct, fine blue-green infill, MGOX 5 OP1-00181 | 43.75-50.6 rel. friable & lower end of medium hardness. moderate Macro/micro-porous, earthy w. brown goethitic inf
Slide 17: Mineralogy
Mineralogy Typical crushed ore <1 mm with liberated sulphide particles [white], grey particles are iron minerals, darker gangue difficult to see against epoxy background, OP1- 0028 MGSUL 31 Mineralogy Ultrafine cyclosized crushed ore with liberated sulphide particles [white], grey particles are iron
Slide 18: Beneficiation and Product Specifications
Mineralogy Beneficiation achieved in cyclosizer from CS1 to CS3 compared to screened product –53+38 microns. 33 Product Specifications/Metallurgical TEST WORK HAS CONFIRMED EXECLENT METALLURGICAL PROPERTIES. Test work on reverse circulation chip samples from Opaban I returns product grades at coarse
Slide 19: Flowsheet and Slurry Pipeline
Flowsheet 35 Pipeline TOPOGRAPHY FAVOURS A SLURRY PIPELINE, OFFERING LOW COST TRANSPORTATION TO THE COAST. Pipeline offers relatively low capital expenditure and operating cost. The route allows for a mostly flat to gentle downhill gradient, allowing gravity to do most of the work thereby minimi
Slide 20: Pipeline Route and Water
Pipeline Route 37 Water LARGE BODIES OF WATER ARE LOCATED NEARBY TO SUPPORT TRANSPORT BY SLURRY PIPELINE. 38
Slide 21: PSI Slurry Pipelines; Operating Conditions
PSI SLURRY PIPELINES UTILISE PROVEN TECHNOLOGY. PSI have selected a preferred pipeline route to transport iron ore from the mine to coast over a distance of 363km Only 2 pumping stations will be required The pipeline will be buried The route does not pass through any sensitive areas 39 Condi
Slide 22: Tres Hermanas Port and Opex
Port TRES HERMANAS IS AN ATTRACTIVE PORT SITE. 20 Metres depth at 300 metres from shore. Good protection from prevailing southern winds and currents. Considerable land available for stockpile etc. 41 Opex APURIMAC ESTIMATED PFS OPERATING COSTS (20 Mtpa) Mtpa) Cost US$/T dry Description Concent
Slide 23: Opex Comparison and Capex
Opex Comparison APURIMAC OPERATING COSTS WILL BE MUCH LOWER THAN AUSTRALIAN MINES Company Cash costs before royalties A$/t FOB (US$/t where indicated) Strike Resources (US$/t) – BFO (16) Fortescue Metals (FMG) – DSO 24 BHP (US$/t) (29) Rio Tinto (US$/t) (30) Midwest Corporation – DSO 38* Murchison M
Slide 24: Earnings and Valuation; Competitive Advantage
Earnings and Valuation FORECAST EARNINGS AND NET PRESENT VALUE FOR APURIMAC (20 MTPA) ARE VERY ATTRACTIVE. Description Units Estimate Price per tonne FOB 2013 US$/T 60 Cash Operating Costs per tonne 2013 US$/T 18 Tonnes per annum MT 20 Capex US$M 2,500 EBITDA (first year full production) US$M 880 Ne
Slide 25: Summary of Project
Summary of Project THE APURIMAC PROJECT HAS THE POTENTIAL TO BE A TRULY WORLD CLASS, HIGHLY PROFITABLE IRON ORE MINE Strike is confident of delineating sufficient resource to support a 20Mtpa operation at Apurimac. Capex of $125 per annual tonne of production is comparable with other major iron
Slide 26: Cuzco Offers Potential to Expand Production
Cuzco CUZCO OFFERS THE POTENTIAL TO EXPAND PRODUCTION TO 40 MT PA Drilling to delineate resource to support a further 20Mtpa Separate mine development at Cuzco Second pipeline to join into the Apurimac pipeline corridor Utilise same port infrastructure as for Stage 1 Apurimac project 49 Cuzc
Slide 27: Cuzco Concessions and Target Potential
Cuzco Concessions THE CUZCO PROJECT COMPRISES A TOTAL OF 15 CONCESSIONS WITH AN AREA OF 12,363 HECTARES -72.2 °E -71.8 °E FERRUM 17 FERRUM 15 -14.2 °N APURIMAC -14.2 °N JULIA EL PAC IFICO CLAR II A DELIA ESPERA NZA FLOR DE MARIA EL PAC IFICO I FERRUM 14 LEGEND FERRUM 19 APURIMAC FERRUM CLAIMS FERRUM
Slide 28: 125 Drill Holes Completed at Cuzco
Drilling 125 DRILL HOLES HAVE BEEN COMPLETED AT CUZCO Two types of iron ores occur in the Cuzco concessions: • High grade exo-skarn mineralisation in limestone is generally high grade (+60% Fe) 1 hematitic and low in impurities. k • Endo-skarn mineralisation in m the intrusive rocks is widespread
Slide 29: Second Pipeline and The Way Forward
Pipeline Route A SECOND PIPLEINE FROM CUZCO WILL JOIN WITH THE APURIMAC PIPELINE Stage 1- Apurimac Stage 2 - Cuzco 55 The Way Forward STRIKE WOULD WELCOME A PARTNERSHIP TO DEVELOP ITS PROJECTS IN PERU. The Strike Board wishes to proceed along a path of continued development for the Apurimac Project
Slide 30: Project Timeline and Summary
Project Timeline 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 Resource Definition Detailed Engineering Environmental/Approvals Decision to Proceed Construction 57 Summary STRIKE IS DEVELOPING A 20 – 40 MTPA HIGH GRADE (67% FE) IRON ORE OPERATION IN PERU, WITH A TARGET POTENTIAL OF ~1 – 1.2 BILL
Slide 31: Disclaimer
Disclaimer DISCLAIMER This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Strike Resources, industry growth or other trend projec
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