Slide 1: DeGrussa: Approved for Development – From concept to cash
For personal use only DeGrussa: Approved for Development From concept to cash Global Investor Presentation March 2011
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements Forward-Looking Statements For personal use only This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the date of this presentation. The presentation is in summary
Slide 3: DeGrussa Project: Approved for Development
DeGrussa Project: Approved for Development… For personal use only 3
Slide 4: From Concept to Cash
From Concept to Cash… For personal use only Discovered: April 2009 Maiden resource: February 2010 Pre-Feasibility Study: March 2011 Maiden Ore Reserve: March 2011 Production: 60-70,000tpa payable copper 40-45,000oz pa payable gold C1 cash costs: US$0.90c-$1.00/lb Pre-tax operating cash flow: A$330-3
Slide 5: Our Vision
Our Vision For personal use only To develop and operate a premier high-grade copper- gold mine at DeGrussa To deliver outstanding returns to our shareholders To discover the next generation of VMS copper-gold deposits within the Doolgunna Project To unlock the value of our other gold, base metal, ma
Slide 6: Corporate Summary
Corporate Summary Issued Capital: 148.167M ordinary shares Board For personal use only 8.9M options DEREK LA FERLA – Non-executive Chairman Cash (March 2011): A$114 million KARL SIMICH – Managing Director/CEO Major Shareholders W. JOHN EVANS – Executive Technical Director JONGHUN JONG – Non-executiv
Slide 7: Company Summary
Company Summary Fast-tracking development of the DeGrussa Copper-Gold Project (WA): For personal use only March 2011: PFS completed, conditional development approval Q2 2011: DFS and project funding, award of key contracts Q2 2011: Commencement of open pit mining and construction Mineral Resource –
Slide 8: Project – Location
DeGrussa Project – Location Located within 400km2 Doolgunna For personal use only Project, 900km NE of Perth Established WA mining district Discovered April 2009 $70M invested to date in resource development Construction and development commencing mid-2011 On track to move from discovery to producti
Slide 9: Project – Current Status
DeGrussa Project – Current Status Pre-Feasibility Study and maiden For personal use only Ore Reserve complete DFS due Q2 2011 Indigenous access agreements signed Approvals well advanced including grant of Mining Lease Award of key contracts imminent Key project development and operational personnel
Slide 10: Four Deposits, +200,000m of Drilling, Months…
Four Deposits, +200,000m of Drilling, 24 Months… For personal use only 10
Slide 11: Key PFS Outcomes
DeGrussa – Key PFS Outcomes Life-of-mine extraction of a total of 10.68Mt of material grading For personal use only 5.0% Cu, 1.7g/t Au – 531,000t* of copper and 579,000oz* of gold: Item PFS Fundamentals LOM Mining method: Open pit (2 years), underground (7+ years) Construction time: 14months (commen
Slide 12: Maiden Ore Reserves
DeGrussa – Maiden Ore Reserves DeGrussa Copper-Gold Project – March 2011 PFS Ore Reserve Statement* For personal use only Contained Contained Reserve Gold Deposit Tonnes (Mt) Copper (%) Copper Gold Category (g/t) (tonnes) (ounces) DeGrussa Probable 1.50 6.6 1.9 99,000 90,000 Conductor 1 Probable 5.7
Slide 13: Updated Resources and Reserve Conversion
DeGrussa – Updated Resources and Reserve Conversion Table 2: DeGrussa Copper-Gold Project – March 2011 JORC Resource Statement For personal use only Zone Resource Category Tonnes (Mt) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Gold Laterite Measured 0.14 - 1.5 - 7,000 Measured 2.
Slide 14: Project – Open Pit Resources
DeGrussa Project – Open Pit Resources Laterite gold – 140,000t @ For personal use only 1.5g/t Au for 7,000oz gold Oxide copper – 3.6Mt @ 1.23% Cu, 0.5g/t Au (44,000t copper, 56,000oz gold) Supergene chalcocite – 250,000t @ 17.6% Cu, 2.6g/t Au (43,000t copper, 20,000oz gold) Includes DSO – 151,000t @
Slide 15: Project – Open Pit Operation
DeGrussa Project – Open Pit Operation For personal use only Early extraction of Direct Shipping Ore (DSO): 151,000t @ 25.6% Cu, 2.6g/t Au, 21g/t Ag (~39,000t of copper) Open pit will also extract initial sulphide copper ore for early production ramp-up to complement underground ore feed Oxide copper
Slide 16: Project – Development
DeGrussa Project – Development For personal use only 16
Slide 17: Major Exploration Push
Major Exploration Push For personal use only Intensive exploration campaign underway on 6km long priority mine corridor – $20-30M budget Deep diamond drilling program currently underway: 6-8 holes targeting potential down-dip extensions of the Conductor 4 and 5 deposits Testing of near-mine and regi
Slide 18: Mineral Field – Regional Exploration
DeGrussa Mineral Field – Regional Exploration For personal use only 400km2 tenement package in emerging VMS field Multiple conductive features identified from ground-based EM surveys to follow up airborne VTEM targets completed in 2009 Priorities include coincident TEM and IP targets Work programs s
Slide 19: Copper Market Outlook
Copper Market Outlook Strong increase in copper prices over For personal use only past 12 months driven by strong Chinese demand and tight supply Market deficit of ~600,000t forecast for 2011 and ~380,000t for 2012 as supply falls short of demand Declining mine head grades and long lead-times on new
Slide 20: Copper Market Outlook
Copper Market Outlook For personal use only 20
Slide 21: McArthur Basin – A World-Class Mineral Province
McArthur Basin – A World-Class Mineral Province For personal use only 21
Slide 22: Borroloola Project
Borroloola Project For personal use only +10,000sq km tenement position in world-class NT mineral province Prospective for zinc-lead-silver deposits (McArthur River-style), manganese (Groote Eylandt-style), iron ore and uranium Visible oxide copper mineralisation intersected at Tawallah 1 prospect –
Slide 23: Summary and Outlook
Summary and Outlook DeGrussa Project approved for development For personal use only On track to produce first copper next year: First ore from open pit due early 2012 First underground ore expected mid-2012 High-margin production profile – positioned to take advantage of strong copper market Regiona
Slide 24: Competent Person’s Statements
Competent Person’s Statements Competent Person’s Statement – Mineral Resources For personal use only The information in this report that relates to Mineral Resources (except the Indicated Resource of Supergene Chalcocite) is based on information compiled by Diederik Speijers who is a Fellow of the A
Slide 25: DeGrussa: Approved for Development – From concept to cash
For personal use only DeGrussa: Approved for Development From concept to cash Global Investor Presentation March 2011 25