WA Gold Limited · ASX:WAU
WA Gold — Lefroy Resources — Technical Presentation (November 2010)
23 slides from WA Gold's technical presentation, November 2010
Slide 1: Rio Pardo Iron Ore Project, Brazil Technical Presentation
RIO PARDO IRON ORE PROJECT, BRAZIL TECHNICAL PRESENTATION November 2010 1 MINAS NORTE MINERACAO LTDA
Slide 2: Project Location
PROJECT LOCATION BRAZIL RIO PARDO PROJECT NORTH MINAS GERAIS IRON ORE PROVINCE FERROUS RESOURCES US$600 Million 2007 MINAS RIO ANGLO AMERICAN US$5.5 Billion 2 MINAS NORTE MINERACAO LTDA
Slide 3: Why Brazil
WHY BRAZIL • Brazil has a very supportive economic environment. • A stable political system and security of tenure on mineral licences. • Brazil is in the top 5 producers in the world of primary products and commodities. Economy growing at 7.5% per annum. Real has appreciated some 14% against the US
Slide 4: Project History
PROJECT HISTORY MIBA Bid Process & Due Diligence leads to acquisition of adjacent tenements • Our group negotiated an Exclusivity Agreement on the MIBA project which adjoins the Rio Pardo tenement • Our group did extensive financial and technical due diligence on the MIBA Project (2009 - 2010) • Com
Slide 5: Project History 2
PROJECT HISTORY 2 • Iron ore projects at all levels are selling for very high prices in Brazil, usually with very large up front payments • Salinas project was sold to Honbridge (backed by Chinese State owned Xinwen and Shandong Iron & Steel Group Co (SDIS) for US$430 million in April 2010. (JORC 2.
Slide 6: Project Footprint
PROJECT FOOTPRINT • Potential for multi billion tonnes of mineralization 156km² • Grade up to 40% hematite / magnetite • Beneficiation to 68%Fe, low impurities 383km² • Adjacent to MIBA – sold 16th May 2010 sold cash 100% for US$250M • Salinas deal signed 26th April 2010 US$430M 6 MINAS NORTE MINERA
Slide 7: Corporate Summary
CORPORATE SUMMARY • Project sold to ASX listed Lefroy Resources Ltd for shares conditional on extensive due diligence and shareholder approval due on 4 November 2010 • Very extensive due diligence included successful scout drilling programme to verify iron ore mineralisation • Phase 1 Drilling and f
Slide 8: Ground Floor Entry and Acquisition Terms
GROUND FLOOR ENTRY AND ACQUISITION TERMS • Total acquisition price US$56M • Terms: US$1M paid, US$5M in July 2011, balance spread in yearly payments over 5 years. Royalty to the Vendors of $1 per ton of exportable Fe material and $3 per ton of exportable Mn product • Drilling and feasibility work is
Slide 9: Rio Pardo Current Status
RIO PARDO 1 CURRENT STATUS • Tenure 338.5Km2 – initial tenement block • Iron ore mineralization identified to the south traced into Rio Pardo tenure • Geological reconnaissance, sampling and drilling shows extensive outcropping of iron mineralization as oxidised caps (canga) • High grade Fe can be i
Slide 10: Regional Aeromagnetics
REGIONAL AEROMAGNETICS COMPLETED & IDENTIFIES MINERALISATION • Aeromagnetic interpretation completed RIO PARDO • Assists in PROJECT identifying mineralization • High trends identify ore bodies • Detailed interpretation shows subtle trends related to mineralization 10 MINAS NORTE MINERACAO LTDA
Slide 11: Subtle Trends in Aeromag
SUBTLE TRENDS in AEROMAG Recent detailed aeromagnetics interpreted over the project area showing structural and lithological iron ore targets 11 MINAS NORTE MINERACAO LTDA
Slide 12: Oxide Caps - Canga
OXIDE CAPS - CANGA Oxidized Caps readily identified in Float and outcrop 12 MINAS NORTE MINERACAO LTDA
Slide 13: Drilling Program
DRILLING PROGRAM • Recent reconnaissance RAB drilling and surface sampling confirmed iron ore mineralisation with a 1,000 metre, 22 hole program. 18 of the 22 holes returned significant assays up to 48%Fe • The magnetite-haematite diamictite ores in this area are different to Australian examples and
Slide 14: Scout RAB Rig
SCOUT RAB RIG RAB results are considered to be semiquantitative and undervalue Fe grade 14 MINAS NORTE MINERACAO LTDA
Slide 15: Mineralogy & Beneficiation Properties
MINERALOGY & BENEFICIATION PROPERTIES • Coarse grained Magnetite – Hematite mineralisation • Siliceous fragments included in Diamictites • Easily upgraded from 20 - 40% Fe to pellet feed at 65 - 68% Fe • Process route with crushing, light grind • Magnetic separation and flotation • Resulting low pro
Slide 16: Project Potential
PROJECT POTENTIAL Project assumptions based on other operators in the area • Exploration target of 1.5 to 2.0 billion tonnes (much larger potential) • Mining operation ( Stage 1) pellet feed 16mtpa at 68% Fe and low impurities over 25 years • OPEX < US$30/ tonne • CAPEX < US$2.8Billion (including 16
Slide 17: Rio Pardo Priority Targets
RIO PARDO 1 PRIORITY TARGETS 17 MINAS NORTE MINERACAO LTDA
Slide 18: Planned Brazil Rail Infrastructure
PLANNED BRAZIL RAIL INFRASTRUSTURE BELÉM EF 151 BOQUEIRÃO EF 334 DA ESPERANÇA •Implementation of west-east rail started FIGUEIRÓPOLIS •State owned open access or CAETITÉ shared usage ILHÉUS •Rail Ilheus to Caetité Rio Pardo finished July 2011 • Project spur line 160km to PORTO MURTINHO Caetité EF 26
Slide 19: Rio Pardo Project – Lefroy Resources Ltd
PROJECT LOCATION RIO PARDO PROJECT – LEFROY RESOURCES LTD RIO PARDO PROJECT Minas Gerais, BRAZIL 19 MINAS NORTE MINERACAO LTDA
Slide 20: Proforma Capital Structure & Use of Funds
PROFORMA CAPITAL STRUCTURE & ASSETS USE OF FUNDS Based on completion of Lefroy Resources transaction & capital raising Shares on Issue 72M ASSETS Post Consolidation 36M Cash 1.70 Shares issued for iron ore projects 72M Loan to vendor 1.15 Financial assets 1.50 Total $4.35M CAPITAL RAISING CAPITAL RA
Slide 21: Project Overview
PROJECT OVERVIEW • Major iron ore project in world class iron ore province in Brazil • Potential multi billion tonnes at 30 ‐ 40% Fe with regional infrastructure being developed • High acquisition prices paid recently for adjoining ground demonstrates value • Ground floor entry with opportunity to b
Slide 22: Lefroy Current Corporate Directory
LEFROY CURRENT CORPORATE DIRECTORY Directors Share Registry* Craig Bromley Computershare Investor Services Pty Ltd Thomas Kelly Level 2, Reserve Bank Building Carl Swensson 45 St Georges Terrace PERTH WA 6000 Company Secretary Telephone 1300 787 272 Jade Styants Facsimile (08) 9323 2033 Proposed Dir
Slide 23: Disclaimers
DISCLAIMERS While the Company remains optimistic that it will report resources and reserves in the future, any discussion in relation to exploration targets or resource potential is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if
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