Eastern Resources Limited · ASX:EFE
Eastern Resources — Eastern Iron — Shareholder Meeting (November 2014)
21 slides from Eastern Resources's shareholder meeting presentation, Nov 19, 2014
Slide 1: AGM Presentation November 2014
For personal use only AGM Presentation November 2014
Slide 2: Disclaimer
Disclaimer 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, many of wh
Slide 3: Corporate Overview
Corporate Overview For personal use only Capital Structure Experienced Board and Management • 147.7 million shares on issue Chairman: Steve Gemell • Share price: 3.3c (18 Nov 14) CEO: Greg De Ross • Ev $4.5M NED’s : Greg Jones, Wendy Corbett, Ivo Polovineo, Adrian Critchlow, Michael Giles Shareholde
Slide 4: Overview
Overview For personal use only • Nowa Nowa Iron DFS results released September 2014 • DFS completed without final transport plan • Capital cost A$33.6M • Producing 780,000 tpa 58%Fe beneficiated iron product at A$26.1/t ex-minegate • Details of an Alternative Transport Plan released in November 2014
Slide 5: Project
Nowa Nowa Iron Project For personal use only • Eastern Victoria – good local power, roads, labor and port infrastructure • Granted Mining Lease • Native Title agreement in place • Environmental assessment process well advanced • DFS completed • 100% owned by Eastern Iron • Existing global resource 9
Slide 6: Five Mile Deposit – DFS Results: Project Layout
Five Mile Deposit – DFS Results For personal use only Project Layout
Slide 7: DFS results – Mining
Nowa Nowa Iron – DFS results For personal use only • Total Resource 9.05Mt @ 50.8%Fe at 40%Fe lower cutoff • Mining – mine design optimised from scoping study to include: • Box cut access to allow mining of northern and southern pit and in-pit waste disposal. • The use of surface miners for waste re
Slide 8: DFS results – Processing
Nowa Nowa Iron – DFS results For personal use only • Processing • Two stage crushing to -6mm and dry LIMS to 780,000 tpa 58%Fe finished product. • Pilot plant dry LIMS testwork showed excellent upgrade and yield factors Sample ID Head Fe Yield Conc Fe Rec Conc Conc Upgrade % % Fe % % SiO2% S% factor
Slide 9: DFS results – Transport
Nowa Nowa Iron – DFS results For personal use only • Transport • DFS completed on the basis of trucking to Eden and using SEFE wharf and shiploader, but adverse SEFE decision requires an alternative transport solution. • Using SEFE required 234km road transport and loading onto 55,000t vessels. • Al
Slide 10: Nowa Nowa DFS – Capex/Opex
Nowa Nowa DFS– Capex/Opex For personal use only Capital Cost $M AUD • Capital Cost: Total $33.6M inc Mine $3.0 contingency (minesite only) Process Plant $10.6 • Study emphasis on minimising Site Works $9.8 capex at the expense of opex Indirect, owners, $10.2 Contingency • Operating Cost: Total mine
Slide 11: Project – Transport: Slurry Pipeline
Nowa Nowa Iron Project – Transport For personal use only • Slurry Pipeline – self decanting vessels • Scoping level study completed by independent consultants (Nov 2014) • Proven technologies employed by BlueScope steel at Taharoa iron sand operation in New Zealand. • Concept • Truck iron concentrat
Slide 12: Project – Environmental and Social Impacts
Nowa Nowa Iron Project – Environmental and Social Impacts For personal use only • EES process has addressed site based environmental issues which are seen to be minor. • Adoption of slurry pipeline concept will require scoping requirements of EES to be reviewed. 20km • Victoria has 8 offshore to ons
Slide 13: Copper Exploration
Copper Exploration For personal use only • Previously unrecognised prospective Upper Silurian rock sequence identified as host to magnetite and base metal mineralisation in Buchan Rift Zone • Upper Silurian hosts to all major VMS base metal mineralisation in SE Aust. inc • Woodlawn (18Mt Cu/Pb/Zn/Au
Slide 14: Copper Exploration
Copper Exploration For personal use only • VTEM survey has generated several high priority targets, inc Blue Spur, Three Mile, Five Mile and Quarry. • Follow-up ground EM and preliminary drilling on high priority targets recommended • Previous exploration in Nowa Nowa area suggests excellent copper/
Slide 15: Previous Exploration
For personal use only Previous Exploration: • Hampered by younger Tertiary cover and poor outcrop • Some scout drilling of airborne magnetic targets • Prospective host sequence unrecognised meant there was little systematic exploration • Nevertheless some good first pass results Drill Hole No Compan
Slide 16: Three Mile
For personal use only Three Mile: • Previous exploration by WMC and others in 1985-1992, tested airborne mag anomaly below 50m Tertiary sands. • Several drillholes on single line, inc 22.3m @ 1.73%Zn, 0.4%Pb from 135m in Hard1 and 13.6m@3.8%Cu from 195.5m in Hard2 • VTEM anomaly possibly offset and
Slide 17: 2015 Work Programme
2015 Work Programme For personal use only • Nowa Nowa Iron Project • Completed: • Native Title Agreement • Mining License Granted • Definitive Feasibility Study • Next steps • Bring slurry pipeline concept up to DFS standard of assessment • Re=initiate EES process • Copper Exploration • Complete fie
Slide 18: Iron Ore market
Iron Ore market For personal use only • Table below is from 2013 AGM Q1 Q2 Q3 Q4 Source Forecast indicator 2012 2013 2014 2015 Long-term 2013 Iron ore fines Consensus (62% Fe, CFR 130 133 136 130 122 129 125 115 97 forecast China) Iron ore fines Max- forecast (62% Fe, CFR 130 145 183 183 140 157 158
Slide 19: Iron Ore market
Iron Ore market For personal use only • Reason: supply in short term is outstripping demand - as reflected in iron ore stocks in Chinese ports and increased (tonnes to China) shipping activity. Source: BHP Billiton • This is despite forecast continued growth in the Chinese and world steel and iron o
Slide 20: Iron Ore market
Iron Ore market For personal use only • New supply growth is almost exclusively from Australia and is forecast to outstrip demand growth until 2016 • Conclusion: Prices are likely to stay low until 2016 but should reset once supply : demand come back to balance. • Eastern Iron targeting 2nd quartile
Slide 21: Eastern Iron Limited
Eastern Iron Limited Level 1, 80 Chandos Street For personal use only St Leonards, NSW 2065 T: +61 2 9906 7751 www.easterniron.com.au Twitter: @EasternIronEFE