Haranga Resources Limited · ASX:HAR
Haranga Resources — Discover Mongolia 2011
20 slides from Haranga Resources's conference presentation, September 2011
Slide 1: Prospects for Mongolia's Iron Ore Industry
Prospects for Mongolia Mongolia’ss Iron Ore Industry y Robert Wrixon Managing Director Discover Mongolia Ul b t Sept Ulaanbaatar, S t 2011
Slide 2: Competent Person's Statement and Disclaimers
COMPETENT PERSON’S STATEMENT AND DISCLAIMERS Competent Person’s Statement The information in this presentation that relates to Exploration Results and Exploration Targets is based on information compiled and reviewed byy Mr Kell Nielsen,, who is a Member of the Australasian Institute of Mining g and
Slide 3: Presentation Structure
PRESENTATION STRUCTURE COMPANY BRIEFING MONGOLIAN IRON ORE INDUSTRY HARANGA S PROJECTS HARANGA’S SUMMARY 3
Slide 4: Overview
OVERVIEW Haranga Resources listed on ASX in Dec 2010 via a $25m IPO Five iron ore projects in Mongolia → Close to existing or planned infrastructure → Ability to access the massive market in northern China Mongolian iron ore exports growing rapidly due to healthy margins and the market outlook remai
Slide 5: Snapshot (5 Sept 2011)
SNAPSHOT (5 Sept 2011) Share price / volume history (A$; millions) Key statistics (A$) 52 week low 52 week high 30 day VWAP Ordinary shares on issue 5-Sep-11 186.75m Date 9-Aug-11 5-Jan-11 Unlisted options 5-Sep-11 36.0m Share price $0.16 $0.74 $0.22 Share price 5-Sep-11 $0.23 Market capitalisation
Slide 6: Board
BOARD 19 years experience in the resources sector with both major and junior resource companies Matthew Wood BSc (Hons - Geology), Grad Certificate (Mineral Economics) Ch i Chairman C Currently tl a Director Di t off Hunnu H Coal, C l Voyager V Resources, R Avanco A Resources, R Signature Si t Metal
Slide 7: Commodity Cycles - Copper Since 1885
COMMODITY CYCLES - COPPER SINCE 1885 Shorter term price fluctuations are inevitable but a true super cycle is underpinned by demand Source: JP Morgan, USGS, IMF, US Bureau of Economic Analysis 7
Slide 8: Record Iron Ore Prices
Haranga RESOURCES —a els high —— BHP By fir spot 122 bs berun auicto | chews 1 ly \ Prices and on oy aed ' <~ customers, 84 basis for ' be Tsing cost of ‘ } Mheluding coking ctw Materials, { Qtteensland i the ‘ 18 per cent | reinforcement cag, bomsted at i staples soaring posers } retnent (rohan we
Slide 9: Iron ore consumption/production forecast in China's northern provinces
Iron ore consumption/production forecast in China’s northern provinces (Million Tonnes at average ROM domestic Chinese equivalent grade: 20% Fe) Source: CRU Strategies 9
Slide 10: Mongolian Iron Ore Export Growth
MONGOLIAN IRON ORE EXPORT GROWTH Quarterly Mongolian Iron Ore Exports to China From practically zero in 2008, Mongolian iron ore exports are now at an annualised rate of almost 6Mtpa Source: China Customs 10
Slide 11: Iron Ore Spot Price at Qingdao
IRON ORE SPOT PRICE AT QINGDAO Iron ore fines price (RMB/t, Fe 64%) 1 800 1,800 1,600 1,400 1,200 RMB1,320/t 1,000 = US$204/t 800 600 400 200 0 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Spot prices remain high for iron ore in China Source: Bloomberg 11
Slide 12: Steel Mills in Northern China
STEEL MILLS IN NORTHERN CHINA Inland steel mills of northern China are fed by domestic low grade magnetite mines Mongolian magnetite concentrate is a perfect substitute for declining domestic supply Source: CRU Strategies 12
Slide 13: Location, Location, Location…
LOCATION, LOCATION, LOCATION… A sustainable long term advantage - Mongolian iron ore exports should continue to boom Looming constraints are A) Infrastructure and B) Discoveries – both can be overcome Source: CRU Strategies 13
Slide 14: Mongolian Iron Ore Project Locations
MONGOLIAN IRON ORE PROJECT LOCATIONS A primary driver of asset selection was proximity to transport & infrastructure The Selenge, Shavdal & Sumber p projects j are also close to existing iron ore mines T ti large, Targeting l hi h grade high d magnetite skarn deposits 14
Slide 15: Selenge Project (60%)
SELENGE PROJECT (60%) Large ground holding in Mongolia’s premier iron ore belt 200km north of UB Nearby Eruu Gol (304Mt), Tumurtei (230Mt) and Tumur Tolgoi iron ore deposits* Eruu Gol iron ore mine: – Currently exporting 2.5 Mtpa – Planned expansion to 6 Mtpa – CIC invested $$500m to obtain ~1/3 of
Slide 16: Four Primary Targets at Selenge Project
FOUR PRIMARY TARGETS AT SELENGE PROJECT Drilling underway at Bayantsogt and Huiten Gol; Dund Bulag to follow Aiming to determine a maiden resource at Bayantsogt in 2012 16
Slide 17: Historic Drilling and Trenching at Selenge
HISTORIC DRILLING AND TRENCHING AT SELENGE Huiten Gol Plan View Bayantsogt Drilling Cross Section Huiten Gol Exploration Target*: Bayantsogt Exploration Target*: 66-12Mt 12Mt per vertical 100m at 30 30-40% 40% Fe 55-9Mt 9Mt per vertical 100m at 25 25-30% 30% Fe * Exploration targets are conceptual i
Slide 18: Shavdal Project (75%)
SHAVDAL PROJECT (75%) Shavdal located next to the town of Baruun Urt, along the path of the proposed new East- West rail line Close to the iron ore export operations at Ervei Khushuu and Turmurtei Ovoo 18
Slide 19: Shavdal Magnetic Survey
SHAVDAL MAGNETIC SURVEY Main magnetic anomaly 2.5km in strike and open to the NE and SW 10 of 20 first pass drill holes encountered significant iron mineralisation Best intersection (hole 20): 24m at 26%Fe from 32m (incl 6m at 36% Fe from 34m) Full magnetic survey completed Follow up drilling later
Slide 20: Summary
SUMMARY Mongolian Iron Ore Industry: Right Commodity, Right Location → Record growth to continue → Infrastructure the main constraint in the short term → New discoveries required in the longer term → Selenge region set to become a major production centre Haranga Resources: Contributing to Industry G