Zanaga Iron Ore Co. Ltd. · LSE:ZIOC
Zanaga Iron Ore — Investor Presentation (February 2011)
27 slides from Zanaga Iron Ore's investor presentation, February 2011
Slide 1: Investor Presentation: Announcement of Xstrata Option Exercise
Investor Presentation Corporate November 2010 Presentation - Announcement of Xstrata Option Exercise February 2011
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE This document, which is personal to the recipient, has been issued by Zanaga Iron Ore Company Limited (the “Company”). This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for
Slide 3: Introduction to the Zanaga Project
Introduction to the Zanaga Project 9.7km 47km 5.4km 25 Km Zanaga 5.7km Itabirite Mafic amphibolites Base Location Zanaga orebody footprint Drill zones Zanaga MPD CAMP Comilog Mn Railway Railway Zanaga Heavy Haul Railway 1930's Narrow Access Jetty Gauge Railway Brazzaville Channel Loading Platfor
Slide 4: ZIOC Investment Highlights
• JORC 3.3 bnt at 33% Fe over 25km of 47km • Target 45mtpa for 30+ yr LOM • Top 40-60 meters free digable • Experienced project team (ex. Rio • LOM strip ratio of <1 • Targeting 65% Fe sinter product Tinto Simandou) & Board of Directors from hematite • Leading consultants used Large • Targeting High
Slide 5: Exploration Corporate Milestones
Corporate History PFS Order of Magnitude Study • Drilling Initial Exploration • Drilling (12,800 meters) • Rail, port and mine engineering and • Aeromag • Resistivity geotech studies • Pitting • Initial Metallurgy testwork • Resistivity Exploration • Trenching • Exploration target • JORC Resource •
Slide 6: Strategic Partnership with Xstrata: Call Option
Strategic Partnership with Xstrata: Call Option Xstrata Option over Jumelles Limited • Oct 2009 : Xstrata pays $50mm to acquire option Xstrata Call Option - US$50mm used to fund Phase 1 of PFS - Option to acquire 50%+1 share interest in Jumelles in return for financing Feasibility Study Zanaga Iron
Slide 7: Strategic Partnership with Xstrata: JVA
Strategic Partnership with Xstrata: JVA • Xstrata to fund Feasibility Study to internal standards and international best practice Xstrata/ZIOC JV - Agreed min US$100mm spend (ZIOC estimated >US$200mm spend) Xstrata JVA Zanaga Iron Ore - Xstrata will manage the Feasibility Study with Projects Pty Ltd
Slide 8: What does the Xstrata option exercise mean for Zanaga?
What does the Xstrata option exercise mean for Zanaga? • Xstrata will acquire a 50% + 1 share interest in Jumelles Limited • JVA fully effective upon the completion of the exercise of the Call Option (expected 11 Feb 2011) • Feasibility Study will then be fully funded and deliverable • Must be compl
Slide 9: Significant Resource as at 30th June 2010
Significant Resource as at 30th June 2010 • JORC Resource of 3.4bn tonnes @32.8% Fe Area Category Tonnage Qualities - COL / ITG / ITF / ITC: 843Mt @ 38.5% Fe (Mt) (%FeT) (%SiO2) (%P) (%AL2O3) (%MnO) (%LOI) Indicated 538 38.94% 36.50% 0.044% 3.37% 0.11% 2.19% - ITT / BIF: 2.49Bt @ 30.8% Fe Area 1 - N
Slide 10: …With Significant Upside Potential
…With Significant Upside Potential • 25km of the identified 47km 47km of magnetic anomaly drilled so far • Additional 31,441m drilled (since 30 June 25km with a potential >10km not drilled (south) >10km not drilled (north) 2010), not yet included additional resource at depth in JORC Resource 9 ,6 8
Slide 11: PFS: Phase 2 finalisation remains on track for Q1 2011
PFS: Phase 2 finalisation remains on track for Q1 2011 • Further drilling conducted since 30 June 2010 cut off date for IPO Drill holes to 30 June 2010 Drill holes since TOTAL metres metres metres (IPO JORC resource base) 30 June 2010 26 January 2011 DD Total 80 11,224 31 9,412 111 20,636 RC Total T
Slide 12: Experienced Board & Project Team
Experienced Board & Project Team Board of Directors Clifford Elphick Mike Haworth Clinton Dines Dave Elzas Colin Harris (NE Chairman) (NED) (Independent NED) (NED) (Project Director) CEO of Gem Diamonds MP Strata Capital Former President of BHP Billiton CEO of the Geneva Ex Project Director of Rio E
Slide 13: Appendices
Appendices • Republic of Congo Overview • Iron Ore Market Overview • Preliminary Project Design • Board and Project Team • Gallery
Slide 14: Republic of Congo Overview
Republic of Congo Overview • Congo (Brazzaville), NOT TO be confused with Democratic Republic of Congo - Population of c.4m with low density (12 people/km2) • Rated equivalent security and political risk to Mozambique 1 • Politically stable since end of civil war in 1999 - President Denis Sassou-Ngu
Slide 15: Iron Ore Hotspot
Iron Ore Hotspot Palinspastic reconstruction of Africa Iron ore occurrences associated – South America at 180ma. with the exposed West Congo Craton Showing the world’s largest high grade iron ore province World’s largest Fe Resources +40Bt at +60% Fe Source: Company Source: Company 14
Slide 16: High quality sinter and concentrate products
High quality sinter and concentrate products Targeting 2 products Concentrate production provides significant • Sinter Fines product grading +60%Fe marketing optionality • High ferrous Concentrate product • Sinter Fines Blend grading +65% Fe • Pellet Feed / Pellets Zanaga Target Products & Comparabl
Slide 17: Long term demand for sinter product / concentrate
Long term demand for sinter product / concentrate • Ongoing urbanisation in China continues to drive Global Imports (mt) 2010 - 2015 demand 1600 - the largest consumer of sinter/DRI fines (977.6mt in 1400 • Rest of Asia 2009)1 • Middle East and Africa 1200 • China • South America - Increased its con
Slide 18: PFS Phase 1 Mining Results
PFS Phase 1 Mining Results • Targeting 30 year mine life • Life of mine strip ratio of 0.9 (t waste / t ore) • Excavation assumes conventional truck and shovel operation • Series of conveyors will transport ore to a central plant • Geotechnical work to continue assumed pit slope etc ongoing as part
Slide 19: Infrastructure: Railway
Infrastructure: Railway • Approx. 350km new railway dedicated to iron ore export • 8 Rail options over 4 routes evaluated • Capacity of 51m wet tonnes • Maximum gradient from Zanaga to Pointe Noire – 1.0% (1.5% return gradient) • 8 trains per day with 136 wagons hauled by 4x 4300hp diesel locomotive
Slide 20: Infrastructure: Railway - Alignment/Profile
Infrastructure: Railway - Alignment/Profile Zanaga Project Zanaga MPD Camp MPD CAMP 1960s COMILOG Comilog Mn Railway Manganese Railway Zanaga Planned Zanaga Heavy Heavy Haul Haul Railway Railway 1930sNarrow 1930's Narrow Gauge Railway Gauge to Brazzaville Railway Brazzaville M ay om be Hi lls 00
Slide 21: Infrastructure: Port Site
Infrastructure: Port Site • Port site identified 9km north of Pointe Noire • Expected trestle length of <2.0km with limited dredging (1.72million m3) to 20 meter water depth • Target 45 mtpa of dry export ore • 700 hectares for dedicated iron ore port being evaluated • Significant room to expand and
Slide 22: Materials & Power
Materials & Power Materials Handling Power • Mine site equipment includes belt conveyors, • Project power requirement of c. 300 MW stackers, bucket wheel reclaimers and train loading station • Availability of stranded natural gas and new 150MW power plant built by Eni at Pointe Noire provides low •
Slide 23: Experienced Board of Directors
Experienced Board of Directors Colin Harris Clifford Elphick Project Director Non-Executive Chairman • Current Project Director for Zanaga • Founder & CEO of Gem Diamonds • Former Project Director for Rio Tinto’s Simandou iron ore project • Managing Director of E Oppenheimer and Son for 14 years, fo
Slide 24: Expert Project Management Team – Integration with Xstrata
Expert Project Management Team – Integration with Xstrata Colin Harris Gary Vallerius Project Director CFO • Colin has managed the Zanaga Iron Ore Project since October 2008 • Over the past 19 years managed all aspects of the financial controls • Previously managed the major iron ore evaluation of R
Slide 25: Gallery
Gallery Dedicated laterite airstrip Road from airstrip to site Exploration camp 180° view of proposed mine site 24
Slide 26: Gallery
Gallery Surface evidence of iron content 7 drill rigs operating 24 hrs a day Removal of core sample Drill rig at work on Mount Lebayi Core sample Logistics base in Pointe Noire 25
Slide 27: Gallery
Gallery Sample analysis Dedicated on-site clinic Administering polio vaccinations Environmental team School improvement programme School improvement programme 26
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