Eastern Resources Limited · ASX:EFE
Eastern Resources — Eastern Iron — Shareholder Meeting (November 2013)
24 slides from Eastern Resources's shareholder meeting presentation, Nov 26, 2013
Slide 1: AGM Presentation November 2013
For personal use only AGM Presentation November 2013
Slide 2: Disclaimer
Disclaimer For personal use only This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of wh
Slide 3: Project Portfolio
Project Portfolio For personal use only Nowa Nowa Project (100%) • High grade Five Mile Deposit: 9.5Mt @ 50% Fe (magnetite/hematite) • Completed scoping study in 2012 for mining development producing 0.8 Mtpa +58%Fe Fines product • Low Capex ($32 million est. from scoping study) • Eastern Victoria,
Slide 4: Overview
WC1 Overview For personal use only • Eastern Iron Limited (ASX:EFE) is an advanced exploration company with three significant iron projects on the East Coast of Australia • Targeting low capex, high margin iron ore developments, close to bulk transport/export infrastructure • Focused on developing t
Slide 5: Recent Activity
Recent Activity For personal use only • Nov 2013 – Approx $1 mill from R&D rebate and sale of NSW tenements • Oct 2013 – Vic Govt infrastructure Grant • Sept 2013 – Mining Licence application for 5 Mile • Jun 2013 - Updated resource at 5 Mile deposit; 9.5Mt @ 50% Fe • Feb 2013 – Engenium appointed t
Slide 6: Iron Project
Nowa Nowa Iron Project For personal use only • Eastern Victoria – good local power, roads, labor, port infrastructure • 50km2 under exploration license • 100% owned by Eastern Iron • Existing global resource 10 Mt @ 50% Fe at a lower cutoff of 40% Fe • Multiple deposits; further resource and explora
Slide 7: Prospects
Nowa Nowa – Prospects For personal use only Six Mile Deposit • Exploration upside – yet to be drilled Five Mile Deposit • Drilled in 1950’s by Vic Govt. Seven Mile Deposit • Massive • High grade high silica hematite at surface magnetite/hematite body • Potential small open cut at start of developmen
Slide 8: Five Mile Prospect
Five Mile Prospect For personal use only • Massive replacement magnetite mineralisation • Ore body horizontal approx 70m thick NND014 62.9m from 67.7m @ 57.6% Fe, 9.78% SiO2, 1.77% Al2O3, 0.03% P • Recent drilling results confirm historical drilling
Slide 9: Five Mile Deposit – Resource Drilling and magnetics
Five Mile Deposit – Resource Drilling and magnetics For personal use only Measured Indicated Inferred Total Prospect Mt Fe% Mt Fe % Mt Fe % Mt Fe % Five Mile 2.1 52 3.7 50 3.9 50 9.6 50
Slide 10: Five Mile Prospect
Five Mile Prospect For personal use only 7 Mile: 0.55Mt1 DSO hematite • Multiple bodies of massive magnetite • Exploration and resource 6 Mile: undrilled upside potential: • Extensions to Five Mile • Undrilled Six Mile 5 Mile: 9.6Mt 50%Fe mag/hem
Slide 11: Scoping Study - Key outcomes
Scoping Study- Key outcomes For personal use only Item Outcome Mining rate Max 4.8Mtpa (ore and waste) Life of Mine (LoM) 8 years Average production (Over LoM) 0.8Mtpa LoM waste:ore ratio 2.3:1 Average grade 58%Fe (fines) product Capex $32 million FOB Cost/tonne $70 LOM revenues $800 million+ Mass r
Slide 12: Project Update
Nowa Nowa - Project Update For personal use only • Feasibility Study on schedule for completion in December 2013. • Project description based on Scoping study results. • Environmental and related studies completed in parallel with Feas. study to reduce the predevelopment timeframe. • Mining Licence
Slide 13: Project Description – Mining
Nowa Nowa – Project Description For personal use only Mining • Open Cut mining 1Mt ore pa. • At 40% Fe lower cut, 8.6Mt ore mined over 10 yr mine life (potential for resource extensions) • LOM strip ratio, 2.3:1; 19.8Mt waste rock. • The expected open pit excavation will be approximately 700-800 m l
Slide 14: Metallurgical Results
Nowa Nowa - Metallurgical Results For personal use only Processing • Simple beneficiation process : Crushing (no grinding), dry LIMS, loading for export • Several beneficiation options examined: DSO, Dry LIMS, Wet LIMS, WHIMS at various sizings. • Dry LIMS selected to maximise grade of product, mini
Slide 15: Five Mile Deposit – Project Layout
Five Mile Deposit – Project Layout For personal use only Features: • 1km from process plant to sealed road • No site accommodation. • Project footprint confined to small catchment area simplifying control of runoff. • Zero discharge from mining area during operations • Degraded forest land • No enda
Slide 16: Project Description – Transport
Nowa Nowa – Project Description For personal use only Transport • Product trucked 220km along sealed (Princes) highway to Eden (std. B doubles – 42t) • Trucking route bypasses built up areas. • Low traffic volumes, well within design capacity of Highway • 800ktpa equals 60 one way truck movements pe
Slide 17: Project Description – Transport
Nowa Nowa – Project Description For personal use only Transport • Product trucked to SEFE port and wharf facility at Two Fold Bay (Eden) • Only bulk loader on Aust east coast between Port Kembla and Geelong • MOU with SEFE (HOA in preparation) • Currently low (<20%) utilisation • Capacity upto 60,00
Slide 18: Scoping Study – Capex/Opex
Nowa Nowa Scoping Study – Capex/Opex For personal use only • Capital Cost: Total $32M inc contingency • Study emphasis on Capital Cost $M AUD minimising capex at the Mine 3.6 expense of opex Process Plant 5.0 • Operating Cost: Total FOB Transport 2.8 $70/t inc $35 transport and port costs Port 4.8 s
Slide 19: Next Steps
Nowa Nowa: Next Steps For personal use only • Grant of Mining Licence – targeting March 2014 • Execute Native Title agreement (PC Deed) with Gunai Kunai people. – December 2013 • Complete Feasibility Study – Dec 2013 • Victorian Government decision on permitting – Jan 2014 (project referral submitte
Slide 20: Summary
Nowa Nowa - Summary For personal use only • High grade resource defined by drilling • Scoping Study indicates robust economics • High grade “fines” product • Excellent infrastructure with access to bulk port • Low impact development in degraded crown land • All the elements for a development in plac
Slide 21: Eastern Iron – Value Proposition
Eastern Iron – Value Proposition For personal use only Eastern Iron poised for a valuation re-rating as the Nowa Nowa Project moves to completion of Feasibility Study, to Production. $EV/Ann Tonne Prodn EFE 5.7 WDR 104.3 BCI 121.3 Northern Iron 53.8 FMG 347.5 0.0 50.0 100.0 150.0 200.0 250.0 300.0 3
Slide 22: Iron Ore Price Forecasts
Iron Ore Price Forecasts For personal use only Most generally forecasting a long term decline in price Global Iron Ore Forecasts of Industry and Financial Companies $/t Forecast Q1 Q2 Q3 Q4 Long- Source 2012 2013 2014 2015 indicator 2013 term Iron ore fines Consensus (62% Fe, CFR 130 133 136 130 122
Slide 23: Iron Ore Pricing
Iron Ore Pricing For personal use only US$ Iron Price over last 12 mths But prices continue to surprise on the upside 2013 and are becoming more stable 2012 A$ Iron Ore price since April 2013
Slide 24: Eastern Iron Limited
Eastern Iron Limited For personal use only Level 1, 80 Chandos Street St Leonards, NSW 2065 T: +61 2 9906 7751 www.easterniron.com.au Twitter: @EasternIronEFE