Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Corporate Update (June 2008)
35 slides from Mgx Resources's corporate update, Jun 30, 2008
Slide 1: ASX announcement: Koolan Main Pit extensional drill program and presentation
Mount Gibson Iron Limited ABN 87 008 670 817 First Floor, 7 Havelock Street West Perth 6005, Western Australia PO Box 55, West Perth WA 6872 Telephone: 61-8-9426-7500 VIA: WWW.ASX.ONLINE.COM Facsimile: 61-8-9485 2305 For personal use only E-mail: admin@mtgibsoniron.com.au 27 June 2008 Pages = 35 The
Slide 2: KIDD001 and KIDD003 drill hole intersections
For personal use only Figure 1 – KIDD001 diamond drill hole intersections of the Main and Acacia mineralized hematite surfaces Figure 2 – KIDD003 diamond drill hole intersections of the Main and Acacia mineralized hematite surfaces Attached please find a copy of a presentation to be given at a site
Slide 3: Koolan Island – Analyst & Shareholder Site Visit
Koolan Island – Analyst & Shareholder Site visit For personal use only June 2008 1 30 June 2008
Slide 4: Disclaimer
For personal use only Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited. This Document is not a
Slide 5: Agenda
For personal use only Agenda • Koolan update Operations overview Exploration • Tallering Peak update Operations overview Exploration • Extension Hill update • Tour of Koolan Operations 3 30 June 2008
Slide 6: Locations
For personal use only Locations Koolan Island - production Tallering Peak - production Extension Hill - near-term production 4 30 June 2008
Slide 7: Koolan Island provides significant upside potential
Koolan Island provides significant upside potential … For personal use only 5 30 June 2008
Slide 8: Koolan - Overview
Koolan - Overview • Ex BHP mine – closed 1992 For personal use only • Mine, crush and shipload • First hematite ore shipped June 2007 • Production ramping up to 4 Mtpa by Sept qtr 2010 • Currently mining from satellite orebodies • Premium Main Pit orebody Currently mining western extension through
Slide 9: Koolan - Operations
For personal use only Koolan - Operations • Mount Gibson owns all equipment on site apart from Some ancillary mining equipment Power station • Workforce Fly-in-fly out on rosters of 14:7 and 9:5 46 Mount Gibson employees 399 Contractors • Logistics Barge from Derby 3-4 times per week wit
Slide 10: Koolan – Schedule for 2008-09
For personal use only Koolan – Schedule for 2008-09 • Mining 17 million BCM 3.9 Mt ore • Crushing 3.5 Mt ore • Sales 1.8 Mt Lump 1.6 Mt Fines 8 30 June 2008
Slide 11: Koolan – Capex projects for 2008-09
For personal use only Koolan – Capex projects for 2008-09 • Main Pit access Seawall Footwall rehabilitation Dewatering • Heavy vehicle workshop • Centralised warehouse facility • New centrally managed logistics and supply system 9 30 June 2008
Slide 12: Koolan – Main Pit just before BHP flooded
Koolan – Main Pit just before BHP flooded World class grade and quality – 66.5% Fe, 3.48% SiO2, 0.69% Al2O3, 0.019% P, 0.3 LOI For personal use only - 205,000 tpvm 10 30 June 2008
Slide 13: Koolan – Main Pit
For personal use only Koolan – Main Pit • Access requires: Construct seawall Crusher Hill De-water Footwall rehab Main Pit Seawall construction • Commenced Jan 2008 • Complete by Mid 2009 Original channel location • Low technical risk Main Pit - March 2008 11 30 June 2008
Slide 14: Koolan – Main Pit rehabilitation and dewatering
Koolan – Main Pit rehabilitation and dewatering • Rehabilitation For personal use only Drape reinforcing mesh over the footwall commencing at the 39mRL Install rock anchors as required Drill dewatering and depressurisation boreholes Install rock catch fences • Dewatering Planned 5 metres p
Slide 15: Koolan – Main Pit seawall
For personal use only Koolan – Main Pit seawall • Across mouth of Arbitration Cove • BHP tidal channel successfully dammed, terminating tidal water recharge of Main Pit • Rock fill embankment structure progressing as planned • 300 metres long and 15 metres high buttress • Low permeability clay core
Slide 16: Koolan – Material movement
For personal use only Koolan – Material movement Life to May 2008 Revised total Original date LOM LOM LOM Total BCM’s million 10.6 81.8 92.4 78.0 Total waste tonnes million 26.3 178.8 205.1 176.3 Total ore tonnes million 3.6 33.1 36.7 29.3 Strip ratio t:t 7.30 5.40 5.59 6.02 14 30 June 2008
Slide 17: Koolan – Ore sources
Koolan – Ore sources Millions For personal use only 5.0 • Satellite pits 4.5 Lower grades and 4.0 higher contaminants 3.5 in first 3 years 3.0 Barramundi West 2.5 • Ramp up to 2.0 Eastern / Barramundi Mullet / Acacia Main 4Mtpa in 1.5 FY2010 1.0 0.5 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 •
Slide 18: Koolan - Main Pit mining sequence
Koolan - Main Pit mining sequence Main Pit stage 1 incorporates Main West cut back … For personal use only Main Pit stage 2 at ultimate pit limit 2017 … 16 30 June 2008
Slide 19: Koolan – Environmental and Indigenous agreements
For personal use only Koolan – Environmental and Indigenous agreements • All State mining approvals received • All project environmental approvals received for Main Pit dewatering, seawall and mining to sea level • No environmental issues • Quoll relocation and monitoring program successful • Dambim
Slide 20: Koolan – Crusher and Shiploading facilities
For personal use only Koolan – Crusher and Shiploading facilities 18 30 June 2008
Slide 21: Koolan - Organic Growth Opportunities
For personal use only Koolan - Organic Growth Opportunities • Island highly prospective with identified untested hematite outcrops • Main Pit ore surface extensions along strike and down dip – outstanding synclinal and anticlinal structural targets • Koolan ramp up to 4Mtpa – installed capacity 6Mtp
Slide 22: Koolan – Full strike length of Island highly prospective
Koolan – Full strike length of Island highly prospective Untested hematite surfaces identified … For personal use only 20 30 June 2008
Slide 23: Koolan – Geological interpretation
Koolan – Geological interpretation Initial planned drill program targeting down dip modelled synclinal structure For personal use only 21 30 June 2008
Slide 24: Koolan - March drilling
Koolan - March drilling March Qtr 2008 drilling in Acacia & Barramundi – apparent increase in grade and width at depth For personal use only Section 2900E, Acacia East Section 3900E, Barramundi West 22 30 June 2008
Slide 25: Koolan – location of extensional drill holes
For personal use only Koolan – location of extensional drill holes KIDD003 KIDD001 23 30 June 2008
Slide 26: Koolan - extensional drilling results
Koolan - extensional drilling results KIDD01 – Intersected 30.6m of typical Main Pit high grade hematite with core recovery of 22% For personal use only Recovered core - 67.42% Fe, 1.16% SiO2, 0.79% Al2O3, 0.007% P and 0.014% S 24 30 June 2008
Slide 27: Koolan - extensional drilling results
Koolan - extensional drilling results For personal use only 25 30 June 2008
Slide 28: Koolan surfaces to be tested
For personal use only Koolan surfaces to be tested • Acacia limb - approx 1.4 km up dip • Barramundi limb down dip & along strike • Main pit limb – 300 +m below design pit floor untested along strike and down dip • Hinge point untested • Mullet limb untested down dip and along strike • Limited down
Slide 29: Tallering Peak - Operations
For personal use only Tallering Peak - Operations • June quarter Strong ore production Approx 700k tonnes sold Berth 5 shiploader operating at expectations Rail capacity improvements in 2008/09 Large stockpile of 1.8 Mt available for increased sales in 2008-09 • Rail capacity increase will
Slide 30: Tallering Peak - Organic Growth Opportunities
For personal use only Tallering Peak - Organic Growth Opportunities • T1 & North Ridge • T1 access subject to indigenous agreement • Exploration program in next 12 months 28 30 June 2008
Slide 31: Tallering Peak - Exploration
Tallering Peak - Exploration Tallering Peak – North Ridge and T1 gravity survey For personal use only North Ridge gravity anomaly T1 gravity Anomaly & known hematite mineralisation T5 Pit Main Pit 29 30 June 2008
Slide 32: Extension Hill Development
For personal use only Extension Hill Development • EMP’s finalised and awaiting Ministers approval • Geraldton storage facility construction commenced • Rail agreements signed • Crusher tender awarded and procurement commenced • Great Northern Highway re-alignment tendered • Haul road tendered • Cam
Slide 33: Operations - Key Statistics
Operations - Key Statistics KEY STATISTICS For personal use only Tallering Peak Koolan Island Extension Hill Combined Reserves and Resources1 Reserves (Mt) 18.3 29.9 12.8 62.0 Proven & Probable Mineral Resources (Mt) 21.0 62.8 19.5 103.3 Measured, Indicated & Inferred Reserve Specifications Fe % 61.
Slide 34: Operations - Key Statistics
Operations - Key Statistics KEY STATISTICS For personal use only Tallering Peak Koolan Island Extension Hill Combined Operations Data Annual production (Mtpa) 3 4 (target) 3 (target) 10 Expected minimum mine life 6 8 6 Lump : Fines ratio 65% : 35% 30% : 70% 50% : 50% Truck (km) 65 - 85 Rail (km) 107
Slide 35: Attribution
For personal use only Attribution • The information in this report relating to Mineral Resources at Tallering Peak and Extension Hill is based on information compiled by Rolf Forster, who is a member of the Australasian Institute of Mining and Metallurgy. • The information in this report relating to