Slide 1: Strike Resources: High-Quality Iron Ore in Peru
For personal use only STRIKE RESOURCES HIGH-QUALITY IRON ORE IN PERU ASX CODE: SRK May 2012
Slide 2: Disclaimer
DISCLAIMER For personal use only 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: Strike Resources: Australian-listed resources company
STRIKE RESOURCES For personal use only Australian-listed resources company • Large-scale iron ore projects in Apurimac and Cusco regions of southern Perú • Seeking to establish 15-20 Mtpa business • Apurimac Project in pre-feasibility study stage • Current iron ore mineral resources totalling 374Mt*
Slide 4: Corporate Information Summary
C O R P O R AT E I N F O R M AT I O N S U M M A RY For personal use only ASX CODE: SRK • Capital structure: - Ordinary, fully paid shares 142M - Unlisted options 10.25M • Cash Position: (March 2012) A$23M TOP SHAREHOLDERS • Gallagher Holdings Limited 18.2% • Orion Equities Limited 11.7% • Database S
Slide 5: Foundations Established for Strong Sustainable Growth
For personal use only F O U N D AT I O N S E S TA B L I S H E D F O R S T R O N G S U S TA I N A B L E G R O W T H Outcomes 2011 Objectives Complete - resignation of 3 “aligned” directors and appointment of independent BUSINESS #5 Establish sound Appointed Tom Kelly (CEO) and strong business app
Slide 6: Peru - Apurimac Iron Ore Project
For personal use only PERU - APURIMAC IRON ORE PROJECT Peru – The Last Decade • Free-trade agreement with the USA • Competitive labor and tax rates Pictures here. • Stable investment environment • Greater than 6% p.a. GDP growth 2011 Elections • President Humala forms government - macro-economic set
Slide 7: Apurimac - Opaban Iron Ore Deposits
A P U R I M A C – O PA B A N I R O N O R E D E P O S I T S For personal use only Bouguer Gravity Opaban 1 Anomaly Current resources of 269Mt at 57.3% Fe* Target of 300 – 350Mt at 57 – 58% Fe+ Pictures here. Current resources: Opaban 3 • Continuous broad zones • Dominantly high-grade, coarse-grained
Slide 8: Opaban - Excellent Metallurgical Properties
For personal use only O PA B A N - E X C E L L E N T M E TA L L U R G I C A L P R O P E R T I E S DTR Mass Recovery • Coarse particle liberation size (250 microns vs 30 – 40 microns) 60 -70% 80% • 60 - 70% mass recovery (vs 35 Pictures – 50%) here. Opaban 60% 39% 25% 30% Project 1 • Excellent produc
Slide 9: Pre-Feasibility Indicated Attractive Project Economics
2 0 0 8 P R E - F E A S B I L I T Y I N D I C AT E D AT T R A C T I V E For personal use only PROJECT ECONOMICS Initial Pre-feasibility key parameters and results • 27Mtpa mining operation at S/R of <2:1 for 20Mtpa product • High grade product >68% Fe with low impurities • Slurry pipeline to coast f
Slide 10: Excellent Iron and Copper/Gold Potential
EXCELLENT IRON & AND COPPER/GOLD POTENTIAL For personal use only • APURIMAC IRON ORE AF APURIMAC • 590 km2 of concessions PROJECT • Drilling at Colcabamba from June Qtr CUERVO • Sillaccassa target drill ready Las Bambas (Xstrata), • Exploration underway or planned 1.13Bt @ 0.77%Cu Pictures here. 1.1
Slide 11: Cuervo Transaction - An Option on Additional Fe Resources
CUERVO TRANSACTION – AN OPTION ON For personal use only ADDITIONAL Fe RESOURCES Option to acquire up to 49% of Cuervo* Stage 1: 32.5% (undiluted) for C$5.25M - program underway Stage 2: Further 16.7% (49.2% undiluted) for C$9.75M at SRK’s option Pictures here. Current Resources of 178Mt @ 48% Fe Orc
Slide 12: Community Approvals - Positive & Improving
C O M M U N I T Y A P P R O VA L S – P O S I T I V E & I M P R O V I N G For personal use only Patience and trust building required, especially following previous AF “disappearance” Colcabamba “pilot” very successful and approval granted for further 12 months’ exploration Established “AF Infor
Slide 13: Apurimac Ferrum - September 2012
APURIMAC FERRUM – SEPTEMBER 2012 For personal use only Status Quo pathway No D&C Top-up for AF or IAC 2009 JUNE 2011 JUNE 2012 D&C 25% SRK 75% D&C Top-up of AF 2009 Settlement or IAC After IAC Transaction Agreement IAC No D&C Top-up for AF 12% D&C D&C SRK 44% SRK 50% 50% D&C SRK 44% 56% 32% D&C SRK
Slide 14: Apurimac Ferrum - Shoot-out
APURIMAC FERRUM – “Shoot-out” only SRK gives Shoot- SRK prices bid Process out advice March 2012 May 2012 June 2012 August 2012 October 2012 personal use D&C receives US$3M + bid price SRK 100% ForOutcomes D&C pays SRK D&C 44% SRK 56% D&C SRK 50% 50% US $1.9m for 6% AF D&C 100% SRK receives * Strike
Slide 15: Highlights - SRK Value & Growth
HIGHLIGHTS – SRK VALUE & GROWTH For personal use only Board and management restructured Focused; Apurimac & Cusco Iron Ore Projects in Peru Consolidation strategy to secure >500Mt resources underway: • Moved to at least 50% of Apurimac Ferrum (AF) • “Shoot-out” of AF in September 2012 • Option
Slide 16: Thank You
For personal use only STRIKE RESOURCES Limited THANK YOU ASX: SRK www.strikeresources.com.au 16
Slide 17: Appendix - JORC Code Information
Appendix – JORC Code Information For personal use only Resource Breakdown AF Projects Project Classification Tonnes (Mt) Head Fe (%) Inferred 127.2 56.7 Apurimac Indicated 142 58 Cusco Inferred 104.4 32.6 The 68Mt DSO component of the Apurimac resource is comprised of a 27Mt inferred resource at 61.
Slide 18: Appendix - JORC Code Information (cont'd)
Appendix – JORC Code Information For personal use only Resource Breakdown (cont’d) Cerro Ccopane Project (Cuervo Resources, Inc) The resource estimate for Cuervo’s Orcopura prospect stands at 19.7 Mt at 48.3% Fe (measured resource), 35.9 Mt at 45.9% Fe (indicated resource) and 50.8 Mt at 43.7% (infe