Slide 1: Growing a Great Company by Mineral Discoveries & Mine Development
For personal use only INDEPENDENCE GROUP GROWING G O G A GREAT G CO COMPANY BY MINERAL DISCOVERIES & MINE DEVELOPMENT INVESTOR UPDATE June 2010 Chris Bonwick – Managing Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS For personal use only Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward‐looking statements. t t t Al
Slide 3: Independence Overview - Corporate
INDEPENDENCE OVERVIEW ‐ CORPORATE For personal use only Capital Structure: ASX 200 Code: IGO 113.7M shares & 1.2M staff options Market Cap. (10/6/10): A$516M $ Daily turnover (6 month average) – 406,323 Substantial shareholders: JP Morgan 11.3M shares Orion 7.1M shares NAB 6 8M shares 6.8M Aus Inst
Slide 4: Board & Senior Management
INDEPENDENCE GROUP BOARD & SENIOR MANAGEMENT For personal use only BOARD Non Executive Chairman Oscar Aamodt (63) Finance Managing Director Chris Bonwick (50) Geologist Executive Director & CFO Kelly Ross (48) Accountant Non Executive Director Rod Marston (66) Geologist Non Executive Director John C
Slide 5: Independence Overview - Assets
INDEPENDENCE OVERVIEW ‐ ASSETS For personal use only LONG NICKEL Jul 09‐Mar 10 Cash Costs (C1+C2 payable): A$4.44/lb Ni MINE Jul 09‐Mar 10 Revenue: A$9.74/lb Ni Jun 09 Resources: 93,900t Ni @ 5.6% Ni Jun 09 Reserves: 51,800t Ni @ 3.9% Ni 9Production Extending d mine life l f – New Moran discovery d
Slide 6: IGO History and Share Price
IGO HISTORY AND SHARE PRICE For personal use only Monthly Average Share Price to 10.06.10
Slide 7: Long Nickel Mine
LONG NICKEL MINE For personal use only IGO’S CURRENT CASH PRODUCING ASSET 2002 Purchase price = A$15M IGO Profit to date = A$268M Australia’s lowest cost nickel sulphide mine 1979‐1999 1979 1999 WMC Production: 203 184t Ni 203,184t 2002‐2010 IGO Production: 61,762t Ni
Slide 8: Long Nickel Mine - IGO 100%
LONG NICKEL MINE – IGO 100% For personal use only HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to date = 61,762 Ni t • June 2009 Resource = 93,900 Ni t • June 2009 Reserves = 51,800 Ni t GOALS • Sustainable 9,000t Ni pa in bottom 3rd of world‐wide world wide nickel production cash c
Slide 9: Production Forecast & Hedging
PRODUCTION FORECAST & HEDGING For personal use only 2009/10 2009/10 Budget Jul 09 – Mar 10 • Production 8,000‐8,400 Ni t 6,268 Ni t • Grade 4.0% Ni 4.21% Ni • Cash Costs (payable) A$4.20‐4.40/lb Ni* A$4.44/lb Ni* * Includes nickel royalty • Hedging 3,000 Ni t @ A$19,013/t Delivered @ 200Ni t/month f
Slide 10: Quarterly Cash Costs & Revenue
QUARTERLY CASH COSTS & REVENUE For personal use only High operating margins Revenue A$/lb Ni R (includes hedging) Payable Cash Costs A$/lb Ni Relatively consistent cash costs
Slide 11: Mine Geophysics - TEM Equipment
MINE GEOPHYSICS ‐ TEM EQUIPMENT For personal use only High Hi h powered d TEM Underground transmitter Down hole TEM surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM p probe targeting, reduced detection up to 200m. di discovery and d ore
Slide 12: Long Mine Nickel Deposits & Targets
LONG MINE NICKEL DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only June 2009 Mineral Resource*: 1,685,000t @ 5.6% Ni (93,900t Ni) June 2009 Ore Reserve: 1,327,000t @ 3.9% Ni (51,800t Ni) * Resources are inclusive of Reserves
Slide 13: McLeay Nickel Deposit
McLEAY NICKEL DEPOSIT For personal use only June 2009 Mineral Resource*: 496,000t @ 5.8% Ni (28,900t Ni) June 2009 Ore Reserve: 346,000t @ 3.8% Ni (13,100t Ni) * Resources R are iinclusive l i off R Reserves McLeay deposit is open to the south‐east.
Slide 14: Moran Nickel Deposit
MORAN NICKEL DEPOSIT For personal use only June 2009 Mineral Resource*: 456,000t @ 7.1% Ni (32,400t Ni) June 2009 Ore Reserve: 640,000t @ 4.1% Ni (26,300t Ni) * Resources R are iinclusive l i off R Reserves Moran deposit is open to the south‐east.
Slide 15: Moran Development
MORAN DEVELOPMENT For personal use only Pre‐existing development has enabled Moran to be developed rapidly
Slide 16: Long North Long-Section
LONG NORTH LONG‐SECTION For personal use only
Slide 17: Long Mine Resources & Reserves
LONG MINE RESOURCES & RESERVES For personal use only JUNE 2009 MINE LIFE EXTENDED LARGEST EVER RESOURCE TO 2015 @ 9,000 9 000 Ni t/pa / Continuing to Grow Resources & Reserves
Slide 18: Long Mine Complex Production / Ore Reserve Comparison
LONG MINE COMPLEX PRODUCTION / ORE RESERVE COMPARISON For personal use only 2002‐9 PRODUCTION SUMMARY Initial Ore Reserve Estimate: 33,894 Ni t Mi d ffrom Ore Mined O Reserve: R 46 176 Ni t 46,176 Mined outside Ore Reserve: 9,319 Ni t TOTAL: 55,495 Ni t
Slide 19: Tropicana JV - New Gold Province
TROPICANA JV ‐ NEW GOLD PROVINCE IGO’S SECOND POTENTIAL CASH GENERATOR For personal use only AngloGold Ashanti – 70% (Manager) I d Independence d G Group – 30% Tropicana JV “New Gold Province under sand” 1000kms
Slide 20: Tropicana JV Tenements
TROPICANA JV TENEMENTS For personal use only
Slide 21: Tropicana JV Significant Discoveries to Date
TROPICANA JV SIGNIFICANT DISCOVERIES TO DATE For personal use only JV tenure – 330km strike length & 13,000km 2 area
Slide 22: Tropicana JV Pre-Feasibility Resource & Reserve
TROPICANA JV PRE‐FEASIBILITY RESOURCE & RESERVE For personal use only
Slide 23: Tropicana JV - New Intercepts
TROPICANA JV ‐ NEW INTERCEPTS OUTSIDE JUN 09 OPEN CUT DESIGN For personal use only Tropicana gold system still growing along‐strike and down‐ dip.
Slide 24: Tropicana JV Boston Shaker Cross-Section
TROPICANA JV BOSTON SHAKER CROSS‐SECTION For personal use only
Slide 25: Tropicana JV Underground Potential
TROPICANA JV UNDERGROUND POTENTIAL For personal use only High‐grade, true width in‐pit gold intercepts suggest underground potential
Slide 26: Tropicana JV - Havana Deeps
TROPICANA JV ‐ HAVANA DEEPS For personal use only Havana Deeps high‐grade shoots open down plunge.
Slide 27: Tropicana JV Havana Deeps Cross-Section
TROPICANA JV HAVANA DEEPS CROSS‐SECTION For personal use only
Slide 28: Tropicana JV Pre-Feasibility Outcome
TROPICANA JV PRE‐FEASIBILITY OUTCOME For personal use only Open‐cut Resource: 75.3 Mt @ 2.07g/t Au (5.01 M oz Au) at June 2009 Mining Reserve: 45 Mt @ 2.3g/t Au (3.3 M oz Au) (US$900/oz Au, AUD: USD 0.85 US$103/barrel oil & 15% discount rate assumptions) Mill: 6 Mt p/a (plant & infrastructure capita
Slide 29: Regional Exploration Strategy
REGIONAL EXPLORATION STRATEGY For personal use only Discovering new, high profit mines by ‐ Technical Innovation Geophysical tools to see “under cover” New targeting techniques Exclusive access to new data bases Unlocking value in established and emerging belts First mover advantage in “
Slide 30: IGO Gold & Base Metal Exploration Projects
IGO GOLD & BASE METAL EXPLORATION PROJECTS For personal use only
Slide 31: Duketon JV - C2 Prospect
DUKETON JV – C2 PROSPECT (IGO earning 70%) For personal use only C2 Prospect cross‐section showing disseminated nickel sulphide p system y
Slide 32: Duketon JV - Rosie Prospect Drill Core
DUKETON JV – ROSIE PROSPECT DRILL CORE (IGO earning 70%) For personal use only Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.13% Ni, 1.09% Cu, 0.21% Co, 7.09g/t PGE’s (2.20g/t Pt, 1.74g/t Pd, 1.79g/t Ru & 0.82g/t Rh)
Slide 33: Duketon JV - Rosie Prospect Longitudinal Projection
DUKETON JV ‐ ROSIE PROSPECT LONGITUDINAL PROJECTION (IGO earning 70%) For personal use only
Slide 34: Holleton Gold Project (IGO 100%)
HOLLETON GOLD PROJECT (IGO 100%) NEW GOLD SYSTEMS DISCOVERED For personal use only REGIONAL GEOLOGY GOLD GEOCHEMISTRY
Slide 35: Karlawinda - Francopan Prospect Cross-Section
KARLAWINDA ‐ FRANCOPAN PROSPECT CROSS‐SECTION For personal use only Very large gold system
Slide 36: Project Generation - De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) For personal use only 100% IGO – NO BUY‐BACK OR ROYALTIES 103,000 analysed geochemical samples. 189,000 189 000 unanalysed geochemical samples. 2,278 samples reporting visible gold. 2,025 , ggeophysical p y surveys. y IGO analysing samples fo
Slide 37: Project Generation - De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) For personal use only IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA)
Slide 38: 2010 Group Development & Exploration Focus
2010 GROUP DEVELOPMENT & EXPLORATION FOCUS For personal use only Complete Moran Development LONG NICKEL MINE Moran, McLeay and Long North extension drilling Budget: A$18M A$18M* Strategic study aiming to increase nickel production Finalise feasibilityy studyy and fundingg TROPICANA JV Boston Shaker
Slide 39: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS For personal use only To improve shareholder returns by growing a highly profitable, multi commodity Australian mining company Focus on: Low cash costs Mine longevity Innovative exploration Strong g balance sheet
Slide 40: IGO Contact Details
IGO CONTACT DETAILS For personal use only Perth Office Managing Director – Chris Bonwick Ground Floor, Floor Suite 1 183 Great Eastern Highway, Belmont, Western Australia Postal: PO Box 496, 496 South Perth, Perth Western Australia 6951 Telephone: +61 8 9479 1777 Facsimile: +61 8 9479 1877 Email: co
Slide 41: Competent Person Statement
COMPETENT PERSON STATEMENT For personal use only Note: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Christopher M Bonwick who is a full‐time employee of the Company and is a member of the Australasi
Slide 42: Long Nickel Mine 2009 Resources and Reserves
LONG NICKEL MINE 2009 RESOURCES AND RESERVES For personal use only Reserves are included in resources Notes: 1 The cut‐off grade used for the Victor South resource is 0.6% Ni. 2 Ore tonnes have been rounded to the nearest thousand tonnes and nickel tonnes have been rounded to the nearest hundred ton
Slide 43: Tropicana JV Resources and Reserves
TROPICANA JV RESOURCES AND RESERVES For personal use only June 2009 December 2009 Open Pit Resources Open Pit Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 24.2 2.3 1.79 Proved 22 2.4 1.7 Indicated 39.8 2.0 2.58 Probable 23 2.1 1.