Slide 1: ASX Market Announcement: Noosa Mining Presentation – July 2020
Friday, 17 June 2020 ASX Code: SRK ASX MARKET ANNOUNCEMENT Noosa Mining Presentation – July 2020 Strike Resources Limited (ASX:SRK) (Strike) is pleased to attach a copy of a presentation given at the Noosa Mining Virtual Conference. AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION: William Johnson T
Slide 2: Strike Resources Limited – Noosa Mining Virtual Conference July 2020
STRIKE RESOURCES LIMITED NOOSA MINING VIRTUAL CONFERENCE JULY 2020 ASX:SRK
Slide 3: Strike Resources – Overview
Strike Resources – Overview § Strike Resources Limited (ASX:SRK. Market capitalisa4on $10.3 Million @ 5c per share) holds a diversified por/olio of quality Iron Ore and Ba5ery Minerals projects in Australia and South America § Current focus is development of Paulsens East Iron Ore Project in Pilbar
Slide 4: Strike has the leadership, technical resources and experience to deliver
Strike has the leadership, technical resources and experience to deliver Managing Director -‐ William Johnson Director -‐ Professor Malcolm Richmond MA (Oxon), MBA,MAICD BSc Hons (Metallurgy) and B. Comm. Merit (Econs) (UNSW) Mr Johnson holds a Masters degree in Engineering Science Prof. Richmond
Slide 5: Paulsens East Iron Ore
PAULSENS EAST IRON ORE 4
Slide 6: Paulsens East – Overview
Paulsens East – Overview § Strike is advancing its 100% owned Paulsens East Iron Ore Project (Paulsens East) located in the Pilbara Region of WA, circa 140kms west of Tom Price and 8kms from the Paulsens Gold Mine (owned by Northern Star:NST) § Paulsens East has a high grade JORC 2012 Indicated Mi
Slide 7: Paulsens East consists of a 3km outcropping ridge of high-grade hematite
Paulsens East consists of a 3km outcropping ridge of high-grade hematite iron ore mineralisation rising to 60 metres, located in the West Pilbara Paulsens East Ridge, facing North East Paulsens East Ridge, facing East 6
Slide 8: A JORC Indicated Resource of 9.6 Million tonnes @ 61% Fe has been defined
A JORC Indicated Resource of 9.6 Million tonnes @ 61% Fe has been defined, with further exploration upside § HemaOte Iron ore mineralisaOon § Of the 9.6Mt Resource, 3Mt @ 61% Fe occur as an outcropping ridge rising circa 60m above surface, meaning: o Minimal overburden in first two years mining o R
Slide 9: The proposed mine has a very small physical footprint
The proposed mine has a very small physical footprint and the deposit will be simple to mine and process Conceptual image of pit 8
Slide 10: Proposed Production Schedule takes advantage of low strip-ratio in first two years
The proposed Production Schedule is designed to take maximum advantage of low strip-ratio within the first two years Mining Schedule Total / Avg. Pre-‐Prod Year 1 Year 2 Year 3 Year 4 Material Moved (tonnes) 21,481,416 148,409 3,930,321 4,385,065 7,825,198 5,192,422 Waste (tonnes) 15,337,798 40,491
Slide 11: Mined ore will be crushed and screened before loading as DSO
Mined ore will be simply crushed and screened before being loaded as Direct Shipping Ore (DSO) onto 4–trailer (Quad) roadtrains 1 2 3 Iron ore collected from the mine.. ..crushed and screened… ..loaded into roadtrains. 10
Slide 12: Lump and Fines ore will be transported to Port Hedland
Lump and Fines ore will be transported from the mine direct to Port Hedland (Utah Point) - predominantly on good quality sealed roads Haulage route to Port Hedland 11
Slide 13: Scoping Study Results (shipping out of Utah Point)
Scoping Study demonstrates that with current A$/US$ exchange rate and iron ore price, Paulsens East will generate significant cashflows Financial Metrics Unit Scoping Study Outcome Low Base High Life of Mine Revenue A$M 724 803 904 Scoping Study Results (shipping out of Utah Point) Operacng Net Cash
Slide 14: Project economics are most sensitive to iron ore prices and A$/US$
Project economics are most sensitive to iron ore prices and A$/US$ NPV A$ Paulsens East Sensicvity Analysis Shipping from Utah Point: US$85/T benchmark Price: 0.63 A$/US$ 13
Slide 15: Breakeven for first two years forecast below US$65/t
Breakeven for the first two years of production is forecast to be below US$65/t – which provides good margin protection considering recent iron ore pricing Current Benchmark Price 62%Fe fines. Scoping Study forecast US$87/t average price received across Lump and Fines. Scoping Study forecast breakeve
Slide 16: Capex Overview
Capex Overview A$ Million Mining Camp 2.0 Haul and Access Roads 2.4 Other mine infrastructure 0.5 Pre-‐ Strip 0.8 MobilisaOon 1.1 ConOngency 1.4 Total 8.2 15
Slide 17: Strike has made rapid progress to date
Strike has made rapid progress to date Milestones/Achievements to Date Mining Lease ApplicaOon lodged ✓ Environmental Study – Level 1 Fauna and Flora Assessment completed ✓ Resource Upgraded from JORC Indicated to Inferred category ✓ Contract discussions underway with Pilbara Port Authority (Utah Po
Slide 18: Strike is now focusing on completing Feasibility Study, approvals and permits
Strike is now focusing on completing Feasibility Study, securing all approvals and permits, negotiating with contractors, finalising marketing plans and transport options § Feasibility Study underway, targeOng compleOon in September § NaOve Title negoOaOons with TradiOonal Owners advancing posiOve
Slide 19: Strike – Corporate Profile and Recent Share Price Performance
Strike – Corporate Profile and Recent Share Price Performance Capital Structure Issued Capital : 207.1 Million Recent Share Price Performance Market CapitalisaOon (@5c) $10.4 Million Cash and listed securiOes: $3.1 Million Directors Farooq Khan -‐ Chairman William Johnson – Managing Director Malcol
Slide 20: Paulsens East - Summary
Paulsens East - Summary Paulsens East has the potencal to be a Low Capex, high return project – a hard to find combinacon! § Strong $150 Million cashflow over iniOal 4-‐year LOM, with plenty of upside potenOal § Low $8.2 Million capex with 3 month payback § Simple mining and dry processing – minim
Slide 21: Iron Ore - Peru, Lithium Brine - Argentina, Graphite - Queensland
Lithium Brine - Iron Ore - Peru Argentina Graphite - Queensland 20
Slide 22: Apurimac and Cusco Iron Ore Projects, Peru
Apurimac and Apurimac andCusco CuscoIron OreOre Iron Projects, PeruPeru Projects, §§ Apurimac JJORC Apurimac ORC RResource esource ooff 2269.4Mt 69.4Mt @ 57.3% FFe 57.3% Magnetite e M agneOte oore with re w ith exploration uupside exploraOon pside §§ Peru G Peru Government overnment plans plans a
Slide 23: Prefeasibility Studies confirmed potential for development of Apurimac
Prefeasibility Studies in 2008 /2010 confirmed clear potential for development of Apurimac as a world class iron ore project6 § A[racOve life-‐of-‐mine operaOng expenses6 § Open cut mine, low strip raOo (1.2 to 1.8) Principal deposit at Apurimac delivers low mining costs § Ore is high grade, co
Slide 24: Solaroz Lithium Brine, Argentina
Solaroz Lithium Brine, Argentina § Solaroz (SRK 90%7) is located in a highly prospecOve LocaOon § 12,000 Hectares of concessions adjacent to Orocobre (ASX:ORE, Mkt.Cap. ~ A$730 Million) and Lithium Americas (TSX:LAC, Mkt.Cap ~ C$600 Million)8 § ORE (Salar de Jujuy JV with Toyota) is already a low
Slide 25: Conceptual Geological Model for Solaroz
Conceptual Geological Model for Solaroz Horizontal axes not to scale. The poten4al quan4ty and grade of the Explora4on Target is conceptual in nature, there has been insufficient explora4on to es4mate a Mineral Resource and it is uncertain if further explora4on will result in the es4ma4on of a Mineral
Slide 26: Burke Graphite, Queensland
Burke Graphite, Queensland § JORC Resource 6.3 million tonnes @ 16.0% Total GraphiOc Carbon (TGC) for 1,000,000 tonnes of contained graphite9 § Includes 2.3 million tonnes @ 20.6% TGC (with a TGC cut-‐off grade of 18%) for 464,000 tonnes of contained graphite § MineralisaOon is wide and begins at
Slide 27: Strike Resources – Summary
Strike Resources – Summary § Strike has a quality por/olio of assets with differing Ome horizons § Strike’s immediate focus is to bring the Paulsens East iron Ore project into producOon in early 2021 § Paulsens East has the potenOal to significantly change the valuaOon of Strike given the near term
Slide 28: JORC Code Competent Person's Statements
JORC CODE COMPETENT PERSON’S STATEMENTS JORC Code (2012) Competent Person Statement -‐ Paulsens East Mineral Resources The informaOon in this document that relates to Mineral Resources and related ExploraOon Results/ExploraOon Targets (as the case may be, as applicable) in relaOon to the Paulsens E
Slide 29: JORC Code (2012) Competent Person Statement - Apurimac Project Mineral Resources
JORC Code (2012) Competent Person Statement -‐ Apurimac Project Mineral Resources The informaOon in this document that relates to Mineral Resources in relaOon to the Apurimac Iron Ore Project (Peru) is extracted from the following ASX market announcement made by the Strike Resources Limited on: • 2
Slide 30: This document has been prepared by Strike Resources Limited
This document has been prepared by Strike Resources Limited (the "Company” or “STRIKE”). No representaOon, expressed or implied, or warranty as to the accuracy or completeness of the informaOon contained herein is made by any party and nothing contained herein shall be relied upon as a promise or re