Slide 1: Developing A World-Class Iron Ore Project – Peru
For personal use only Developing A World-Class Iron Ore Project – Peru and potential early cash flow from Thermal Coal - Indonesia Strike Resources Limited, July 2010
Slide 2: Executive Summary
Executive Summary For personal use only • Strong cash position with A$42.8 million in cash and investments • Flagship project is up to 20 Mtpa, high-quality Iron Ore Project in Peru • Current Resources of 269Mt @ 57.3% Fe (>50% Indicated)* • Potential to substantially increase resources • Pre feasib
Slide 3: Australian Securities Exchange (ASX)
Australian Securities Exchange (ASX) For personal use only • ASX Code: SRK • Capital structure: • Ordinary, fully-paid shares 130 million • Unlisted options 20.1 million • Fully-diluted issued capital 150.1 million • Major shareholders include: • Gallagher Holdings Limited 19.9% • Orion Equities Lim
Slide 4: Peru is a world class resources jurisdiction
Peru is a world class resources jurisdiction For personal use only • Peru is among the top five producers in the world of silver, zinc, gold, copper and lead • Rio Tinto, Xstrata, Newmont, BHP-Billiton, Shougang and Teck Cominco, amongst many others, have a large stake in Peru’s mining industry • Pe
Slide 5: Interests in Peru held via Apurimac Ferrum S.A. (AF) shares
Interests in Peru held via Apurimac Ferrum S.A. (AF) shares For personal use only Strike Resources Limited Pictures here. 12% 44%* Iron Associates Corporation D&C Group 44% Apurimac Ferrum S.A. Pictures here. Apurimac Concessions Cuzco Concessions * Strike can potentially move to 100% of AF within 2
Slide 6: AF is building strong community relations in Peru
AF is building strong community relations in For personal use only Peru • Local community approvals are required for land access and mining • Strong, experienced Community Relations Pictures here. team in place • Exploration requires negotiations with many communities • Opaban development requires a
Slide 7: Apurimac Project Location and History
Apurimac Project Location and History For personal use only • Undulating topography on Andean plateau • 3500m elevation with Pictures here. relatively benign climate • Within 25km of major regional centre of 50,000 • 350km to port of San Juan • Dispute with partners and GFC led to work program halt
Slide 8: Opaban 1 & 3: 2010/11 target of 300–350Mt at 57–58% Fe
Opaban 1 & 3: 2010/11 target of For personal use only Bouguer Gravity Opaban 1 300 – 350Mt at 57 – 58% Fe* Anomaly • Target mineralisation is based on: • Undrilled gravity and magnetic anomalies • Both deposits open at depth and to the west Opaban 3 Pictures here. • High-grade intercepts, e.g 0 to 1
Slide 9: Drilling to date has only scratched the surface at Apurimac
Drilling to date has only scratched the surface at Apurimac For personal use only • 72 concessions totalling 59,000 hectares • Exploration restarted in 2010 with focus on defining drill targets for additional high PicturesInferred here. 127Mt @ 56.7% Fe grade mineralisation Indicated 142Mt @ 57.8%Fe
Slide 10: Opaban has excellent metallurgical properties
Opaban has excellent metallurgical properties For personal use only • Coarse particle liberation size (250 microns vs 30 – 40 microns) • Greater than 70% mass recovery (vs 35 – 50%) • Excellent product grades with low impurities Pictures here. Fe 68.02% to 68.28% Al2O3 0.30% to 0.35% SiO2 1.51% to 1
Slide 11: Pre-feasibility study points to attractive project economics
Pre-feasibility study points to attractive project economics For personal use only • Pre-feasibility study completed in June 2008 • 27Mtpa mining operation for 20Mtpa product • coarse beneficiation producing >68%Fe product with low impurities • slurry pipeline to coast for dewatering and export Pict
Slide 12: Operating costs will be lower than most Australian mines
Operating costs will be lower than most Australian mines For personal use only Cash costs at target production rate(US$/tonne Fe) $50 $45 $40 $35 $30 $25 $20 BHPB, Rio and Vale $15 $10 $5 $0 ATLAS IRON LTD FORTESCUE METALS BC IRON LTD FERRAUS LTD BROCKMAN RESOURC GIRALIA RESOURCE STRIKE/APURIMAC GIN
Slide 13: Recent study results provide support and further opportunities
Recent study results provide support and further opportunities For personal use only • Mining Study • Low strip ratio (1.2 – 1.7:1) with >80% conversion ratio • Optimised pit insensitive to mining costs, mining recoveries and pit slopes • Current resources adequate for 9 years at 20Mtpa production •
Slide 14: Rope Conveyors
Rope Conveyors For personal use only • Ideal for steep topography • Up to 2km between support towers • Suitable for range of solid materials • Capacity up to 75Mtpa • Up to 20km per conveyor section 14
Slide 15: Cuzco iron ore project
Cuzco iron ore project For personal use only 15
Slide 16: Cuzco has a mineralisation target of 650Mt at 45 to 60% Fe
Cuzco has a mineralisation target of 500 - For personal use only 650Mt at 45 to 60% Fe* • Concessions covering approx 18,000 ha • The Cuzco deposits occur within a 4km diameter area around an intrusive core • Previous work indicates potential for 500 – 650Mt of target mineralisation • Current drilli
Slide 17: Berau Coal, Indonesia
For personal use only Berau Coal, Indonesia 17
Slide 18: Berau Thermal Coal Project – Key Points
Berau Thermal Coal Project – Key Points For personal use only • 5,000ha concession in Berau Regency of East Kalimantan • Rights to 100% of coal and mineral resources (subject to Pictures here. royalty to local partner) • Feasibility Studies complete in early 2010 based on western resources only (~50
Slide 19: Current JORC Resource in Berau of 27.7Mt
Current JORC Resource in Berau of 27.7Mt* For personal use only • Measured and Indicated 22.1Mt* • 50% of prospective sequence untested • Reserves of 7.7Mt based only on western half of resource Pictures here. • Mining followed by crushing, haulage 30km to barge port and transport to ship • Developm
Slide 20: Low cost, short term cash flow opportunity
Low cost, short term cash flow opportunity For personal use only • Production of 1.5 – 3Mtpa with strip ratio of 9.2:1 • Capital cost of <US$20M plus working Pictures here. capital • Operating costs of US$41/t fob • Annual free cash flow of US$39M based on 3Mtpa and US$54/t (current price US$64 – 68
Slide 21: Peer Group Comparison (June 2010)
For personal use only Peer Group Comparison (June 2010) Apurimac Project Iron-ore Resource Pictures here. of 269 Mt @ 57.3% Fe. (SRK 44%)* SRK excluding Berau Coal1 1 Berau Coal value stripped out based on EV/Resource coal metric Pictures here. of A$0.75/t. EV = Enterprise Value *See Appendix 1 to t
Slide 22: Executive Summary
Executive Summary For personal use only • Strong cash position with A$42.8 million in cash and investments • Flagship Apurimac iron ore project; • 20 Mtpa, high-quality Iron Ore Project in Peru • Current Peru Resources of 269Mt @ 57.3% Fe (>50% Indicated)* • Potential to substantially increase resou
Slide 23: 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 24: Strike Resources Limited
For personal use only Strike Resources Limited A.B.N 94 088 488 724 Level 8 The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 Telephone +61 8 9324 7100 Facsimile +61 8 9324 7199 Email: info@strikeresources.com.au Web: www.strikeresources.com.au 24
Slide 25: Appendix – Apurimac Project JORC Code Information
Appendix 1 – Apurimac Project JORC Code Information For personal use only The total mineral Resource at the Opaban 1 and 3 concessions is 269.4 Mt, consisting of a 127.19 Mt Inferred Resource at Opaban 1 at 56.7% Fe (using a cut-off grade of 40% Fe) a 133.71 Mt Indicated Resource at Opaban 1 at 57.5
Slide 26: Appendix – Berau Project JORC Code Information
Appendix 2 – Berau Project JORC Code Information For personal use only The Coal Resource at the Berau Coal Project in East Kalimantan is 27.7 million tonnes (Mt). Of the 27.7 Mt JORC Resources, 11 Mt is in the Measured category, 11.1 Mt is in the Indicated category and 5.6 Mt is in the Inferred cate
Slide 27: Appendix (cont'd) – Berau Project JORC Code Information
Appendix 2 (cont’d) – Berau Project JORC Code Information For personal use only The Coal Resource in the Nyapa West block is estimated to be 14 Mt, comprising 1.8 Mt of Measured Resource, 8.6 Mt of Indicated Resource and 3.6 Mt of Inferred Resource. The Coal Resource in the Nyapa East block is estim
Slide 28: Appendix (cont'd) – Berau Project JORC Code Information
Appendix 2 (cont’d) – Berau Project JORC Code Information For personal use only Within the 14Mt Coal Resources in the Nyapa West block described above, 7.7 Mt of Probable Reserves have been estimated. Probable Calorific Value kcal/kg Total Sulphur (as Ash Total Reserves(Mt) (gross as received) recei