Strike Resources Limited · ASX:SRK
Strike Resources — Investor Presentation (February 2012)
24 slides from Strike Resources's investor presentation, Feb 13, 2012
Slide 1: Company Update
For personal use only Company Update February, 2012
Slide 2: Disclaimer
For personal use only 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 t
Slide 3: Highlights
For personal use only Highlights • Board and management restructuring undertaken • Key focus is Apurimac and Cusco Iron Ore Projects in Peru • Consolidation strategy to secure >500Mt resources underway: • Moved to at least 50% of AF • Recapitalisation of AF in September 2012 • Option to acquire 49%
Slide 4: Australian Securities Exchange (ASX)
For personal use only Australian Securities Exchange (ASX) • ASX Code: SRK • Capital structure: • Ordinary, fully paid shares 142 M • Unlisted options 13.9 M • Cash Position: (Jan 2012) A$25M Top Shareholders • Gallagher Holdings Limited 18.2% • Orion Equities Limited (OEQ) 11.7% • Database Systems
Slide 5: Peru, a Major Resources Precinct
GDP GROWTH 2000-2009 For personal use only (Real % change) Peru, a Major Resources Precinct Peru Peru - the last decade: Colombia Bolivia • Free-trade agreement with the USA Chile World • Competitive labour rates Brazil • Competitive corporate tax rates and royalties LatAm Mexico • Stable investment
Slide 6: Apurimac Ferrum (AF) – Strike's Pathway to Control
For personal use only Apurimac Ferrum (AF) – Strike’s Pathway to Control Sept 2012 June 2012 D&C 25% SRK June 2011 75% No D&C Top-up 2009 for AF or IAC 2009 Settlement After IAC Agreement Transaction No D&C Top- D&C up for AF SRK 32% SRK IAC D&C D&C 68% 12% SRK SRK 50% 50% 44% D&C 44% 56% 44% US$1.9
Slide 7: Apurimac Iron Ore Project - Highlights
For personal use only Apurimac Iron Ore Project - Highlights • JORC resource of 269Mt @ 57.3% Fe* • High-grade with potential DSO and coarse, friable magnetite Pictures here. • At least 50% direct interest in concession owner (AF) with control likely during 2012 • Positive initial Pre-feasibility St
Slide 8: Apurimac – Opaban Iron Ore Deposits
For personal use only Apurimac – Opaban Iron Ore Deposits Bouguer Gravity Current Resources of 269Mt at 57.3% Fe* Anomaly Opaban 1 Target of 300 – 350Mt at 57 – 58% Fe+ Current resources: Pictures here. • Continuous broad zones Opaban 3 • Predominantly high-grade, coarse-grained magnetite • High-gra
Slide 9: Opaban has Excellent Metallurgical Properties
For personal use only Opaban has Excellent Metallurgical Properties DTR Mass Recovery • Coarse particle liberation size (250 microns vs 30 – 40 microns) 60 ‐70% 80% • 60 - 70% mass recovery (vs 35 – 50%) Pictures here. 60% 39% Opaban Project 1 • Excellent product grades with low impurities 25% 30% 4
Slide 10: 2008 Pre-feasibility Delivered Attractive Project Economics
For personal use only 2008 Pre-feasibility Delivered Attractive Project Economics Initial Pre-feasibility key parameters and results • 27Mtpa mining operation for 20Mtpa product • High-grade product >68% Fe with low impurities • Slurry pipeline to coast for dewatering and export • Average operating
Slide 11: Further Upside Potential – Transport Options and Products
For personal use only Further Upside Potential – Transport Options and Products Rope Conveyor study completed • Up to 2km between supports • Capacity of >20Mtpa • Up to 20km per conveyor section • European design with high availabilities (>98%) • Facilitates ore, lump/fines and coarse concentrate op
Slide 12: Apurimac Project Status and Forward Plan
Apurimac Project Status and Forward Plan For personal use only Current Status • >15Mtpa operation required to deliver robust financial returns • 15 – 20 year operational life necessary to justify infrastructure • Using 65% mass recovery, >500Mt required Opaban 1 resource Forward Plan • Increasing re
Slide 13: Excellent Iron Ore Exploration Potential
For personal use only Excellent Iron Ore Exploration Potential Programs designed to outline total iron ore resources of >500Mt* Substantial exploration OPABAN IRON ORE upside outside Opaban: PROJECT Pictures here. • 590km2 held under Mapsa /Ferrum concessions in Apurimac • Drilling targets at Colcab
Slide 14: Resource Status – Cusco Santo Tomas Project
Resource Status – Cusco Santo Tomas Project For personal use only • SRK Inferred: 104.3 Mt @ 32.6% Fe & 0.5% S (June 2011) • SRK Potential: 23 ‐ 26Mt @ 30 ‐ 35% Fe (June 2011)+ • Lower mass recovery than Opaban and Pictures here. floatation circuit and/or fine grinding will be required • Good potent
Slide 15: Cuervo and Copper/Gold – Options on Additional Resources
Cuervo and Copper/Gold – Options on Additional Resources For personal use only • Option to acquire 49% of Cuervo • Stage 1 • C$5.25M for 32.5% (undiluted) CUERVO • Min $4.15M direct project costs Las Bambas (Xstrata), • Security over project concessions 1.13Bt @ 0.77%Cu Pictures here. 1.132Mt @ 0.77
Slide 16: Cuervo Transaction – An Option on Additional Fe Resources
Cuervo Transaction – An Option on Additional Fe Resources For personal use only Orcopura: • Resource of 106.4Mt @ 45.3%Fe* • Open along strike and at depth • Strong magnetic and gravity association Huillque and Aurora: Pictures here. 1.132Mt @ 0.77% Cu • 46 DDH, best results of 79m @ 62%Fe (63m) and
Slide 17: Building Strong Community Relations in Peru
For personal use only Building Strong Community Relations in Peru • Community approvals required for all programs • Successful resource companies implement pro- active and sustainable programs to establish long- term relationships based on mutual respect • Community support fostered through both sho
Slide 18: Approvals Outlook is Positive and Improving
For personal use only Approvals Outlook is Positive and Improving • Colcabamba “pilot” very successful and approval granted for further 12 months’ exploration • Established “AF Information Offices” in 2 main communities – Huinchos and Huinquiri Pictures here. • President Humala visit and positive mi
Slide 19: Timeline for Detailed Pre-Feasibility Study Completion
Timeline for Detailed Pre-Feasibility Study Completion For personal use only Environ Studies + EIS Opaban I & III Resource Estimate and Workshops (EIS) Approval Drilling Mining Studies 6 months 2 months 5 months 5 months Environ Exploration Environ Exploration Resource Approval drilling Approval Dri
Slide 20: Iron Ore Project Summary
For personal use only Iron Ore Project Summary • 374 Mt 50.4% Fe JORC resources + Cuervo (106Mt @ 45%Fe) * • Targeting 15 – 20Mtpa business over >15 years • Expect further exploration will substantially increase resources • Consolidation steps commenced ‐ ≥50% AF and 32.5% Cuervo • Further consolida
Slide 21: Berau Thermal Coal Project – Partner Status
For personal use only Berau Thermal Coal Project – Partner Status • Dialogue and negotiations over last 2 years on restructure of Co-operation Agreement Pictures here. • Numerous (generous) proposals offered to partner – all rejected • Dialogue recommenced in 2012 • Door remains open for constructiv
Slide 22: Summary – SRK Well Positioned to Deliver Value Growth
For personal use only Summary – SRK Well Positioned to Deliver Value Growth • Board and management restructuring undertaken • Key focus is Apurimac and Cusco Iron Ore Projects in Peru • Consolidation strategy to secure >500Mt+ resources underway: • Moved to at least 50% of AF • Recapitalisation of A
Slide 23: Strike Resources Limited
For personal use only Strike Resources Limited ASX: SRK www.strikeresources.com.au
Slide 24: Appendix – JORC Code Information
For personal use only Appendix – JORC Code Information Resource Breakdown AF Projects Project Classification Mt Fe % Cusco Inferred 104.4Mt 32.6% Apurimac Indicated 142.2 57.84% Inferred 127.2 56.7% The (68Mt) DSO component of the Apurimac resource is comprised of 27Mt Inferred Resource at 61.35% Fe
Strike Resources — Investor Presentation (February 2012) on 6ix