Cazaly Resources Limited · ASX:CAZ
Cazaly Resources — Investor Presentation (April 2010)
27 slides from Cazaly Resources's investor presentation, Apr 27, 2010
Slide 1: An Australian Gold & Iron Ore Minerals Company
For personal use only An Australian Gold & Iron Ore Minerals Company April 2010
Slide 2: Disclaimer and Important Information
Disclaimer and Important Information This presentation has been prepared by Cazaly Resources Limited (“Cazaly”). It contains forecasts and forward looking statements which are no guarantee of For personal use only future performance and which involve certain risks. Actual results and future outcomes
Slide 3: Capital Structure and Company Value
Capital Structure and Company Value Undervaluation of a diversity of assets For personal use only Fully Paid Shares 101.9M Options ($0.20 - $0.86) 19.5M Market Cap @ $0.55 ~$56M Cash/Investments ~$3.0M Iron Ore Peer average; $x/t Kalgoorlie Gold >600,000 ozs.; $x/oz.
Slide 4: Key Management
Key Management Nathan McMahon: Joint Managing Director (Corporate & Commercial) For personal use only • Specialised knowledge in corporate management, mining legislation & negotiations • Experienced in project acquisitions, stakeholder relations & government approvals • Also Director of ASX listed H
Slide 5: Fundamentals
Fundamentals Key commodities in Key locations For personal use only IRON ORE (Yilgarn Region) • Expanding High Quality Resource • Easily mineable • Great Infrastructure • Development planning underway • Project pipeline Delivering GOLD (Kalgoorlie Goldfields) • Large regional holding around Kalgoorl
Slide 6: Iron Ore
For personal use only Iron Ore
Slide 7: Iron Ore Pathways to Production
Iron Ore Pathways to Production YILGARN For personal use only • Expanding High Quality Resource Parker Range, >100Mt Exploration Target* • Easily mineable Granted mining license, outcropping ore • Great existing infrastructure Road, rail and port facilities • Community Support Active mining region •
Slide 8: WHY the Yilgarn…
Parker Range Iron Ore Project WHY the Yilgarn… For personal use only Infrastructure Advantages DSO Growth RAIL PORT • Open access to road, rail & port facilities Resources potential access access • Infrastructure independently PILBARA X Access issues X Access issues owned by operators looking fo
Slide 9: Major under explored iron province
Parker Range Iron Ore Project For personal use only Major under explored iron province • Located in the Yilgarn Iron Ore Province situated ~400km east of Perth • No major infrastructure ‘bottlenecks’ compared to the Pilbara or Mid-West • Current production from just ONE mine; Koolyanobbing (Cliffs’
Slide 10: Mount Caudan Iron Ore Deposit
Parker Range Iron Ore Project Mount Caudan Iron Ore Deposit For personal use only 100% owned by Cazaly Mineable resource of 23.2 Mt targeting fines only product of 56.6% Fe (62.2% CaFe) Waste to Ore stripping ratio of 1.34 LOM Total current resource of 40.4mt @ 53.8% Fe (59.1% CaFe) Goethite-Hematit
Slide 11: Indicative Product Specs
Parker Range Iron Ore Project Indicative Product Specs For personal use only Single Fines Only Product Targeted Option Fe% CaFe% SiO2% Al2O3% P% MnO% LOI% Fines 56 – 57.5 61.4 – 63.3 3.5 - 6.5 1 .4 - 2.5 0.016 – 0.029 1.3 - 2.2 8.8 – 9.2 Only Marketable product with acceptable levels of chemical imp
Slide 12: Pre-Feasibility Study Highlights
Parker Range Iron Ore Project Pre-Feasibility Study For personal use only Highlights IRR/NPV Pre-tax IRR: 78%, NPV8: A$216m (preferred contract operations option). Payback less than one year Costs Up front Capital costs of A$78m plus A$26m deferred until year 3 Operating costs of A$45/t of shipped p
Slide 13: Marketing - Reference Price Forecast
Marketing - Reference Price Forecast Forecast Benchmark Iron Ore Fines Price - UScents/dmtu FOB (Nominal Terms) Forecasts as at 22nd October 2009 For personal use only 220.00 210.00 200.00 190.00 180.00 170.00 160.00 150.00 UScents/dmtu 140.00 130.00 120.00 110.00 100.00 90.00 80.00 Cazaly’s Revenue
Slide 14: Scope and Capital Requirements
Parker Range Iron Ore Project Scope For personal use only • Open Pit Mining: Ramping from 2mtpa to 4mtpa • Plant: Crushing, screening & stockpiling • Road Haul: 63km on established roads to rail • Rail Haul: On public rail to port • Port: Preferred port option at Kwinana • Other: Grid power and acco
Slide 15: Kwinana Port Investment – Preferred Case
Parker Range Iron Ore Project KWINANA PORT Investment – Preferred Case For personal use only Preferred option includes Berth Contract operated utilising Proposed Kwinana Port stockpile Mine, process, road haul and area 3rd party operated rail/port Operating Cost of ~A$45/t Train Unloader Capital Inv
Slide 16: Status
Parker Range Iron Ore Project Status For personal use only • Cazaly leading highly experienced project team • DefinitiveFeasibility Study underway • Resource upgrade drilling programmes • Marketing / Strategic partner discussions Optimised Pit Shell • Metallurgical work – potential to upgrade - HG m
Slide 17: Next Steps
Parker Range Iron Ore Project Next Steps Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 3 11 Phase For personal use only Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul • Further metallurgical testwork Pre-Feasibility Study Definitive Feasibility Stud
Slide 18: Summary
Parker Range Iron Ore Project Summary For personal use only • Several go forward options: Owner v Contract operated, ports, production rates • Robust project economics: NPV8 A$216M, IRR 78% • Preferred option: Contract operated, 4mtpa, Kwinana port • Excellent infrastructure available: roads, grid p
Slide 19: Pilbara Iron Ore
Pilbara Iron Ore For personal use only • Numerous projects in world class province • Strategic land positions • Proven iron ore occurrences • Recent channel iron discovery at Hamersley • Further potential in nearby Earaheedy iron province
Slide 20: Pilbara Iron Ore – Winmar, Hamersley project
Pilbara Iron Ore – Winmar, Hamersley project HAMERSLEY CID SYSTEM For personal use only Adjacent to FMG’s Solomon CID system (2.7Bt) Potential for both CID and Bedded Iron Deposits Winmar discovery: 2.8km target, only 1km tested to date Results include: 60m @ 55.6% Fe (60.3% CaFe) 40m @ 56.6% Fe (60
Slide 21: Earaheedy Joint Venture
Earaheedy Joint Venture Potential Major New Iron Ore Province For personal use only Ham ersle y Parker Range •Tenement B •Target Area • Recently announced 50/50 JV with Vector Resources • Earaheedy basin comparable in age & size to the Hamersley Basin • Initially explored by BHP & Amax in the 1970’s
Slide 22: Cazaly Resources Limited
AN JL, NE CAZ RESOURCES LIMITED
Slide 23: West Kalgoorlie Gold Project
West Kalgoorlie Gold Project For personal use only Surrounded by multimillion ounce goldfields • Major position in region • Global JORC compliant Resources of ~600,000oz • Recent high grade discovery in the Grants Patch area at Backflip • Great infrastructure near Kalgoorlie & Coolgardie, haul roads
Slide 24: Gold Resources
Gold Resources Development options being WEST KALGOORLIE GOLD RESOURCES For personal use only studied Deposit Tonnes g/t Au Oz. Au • Numerous resources providing several Mick Adam* 4,510,000 1.27 184,200 development options Broads Dam** 1,273,000 3.10 126,900 • Mining deal with Waratah Gold Ltd. for
Slide 25: Gold Exploration
Gold Exploration Looking for a new multi-million ounce For personal use only gold camp 9m @ 16.0g/t • Multiple targets over a wide region 4m @ 15.0g/t 9m @ 6.5g/t 19m @ 13.2g/t • Conceptual million ounce+ targets 1m @ 7.97g/t highlighted from technical studies • ‘State of the art’ exploration utilis
Slide 26: Cazaly Resources Limited Summary
Cazaly Resources Limited Summary For personal use only Potential to deliver the 2nd mine in the Yilgarn of WA at PARKER RANGE Preferred option Contract operated, 4mtpa, Kwinana port Robust project economics NPV8 A$216M, IRR 78% for preferred option Excellent infrastructure Roads, grid power, rail, p
Slide 27: Cazaly Resources Limited
a CAZALY RESOURCES LIMITED
Cazaly Resources — Investor Presentation (April 2010) on 6ix