Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Iron Ore Conference 2010
26 slides from Bci Minerals's conference presentation, Mar 23, 2010
Slide 1: BC Iron Limited Company Update
For personal use only BC Iron Limited Company Update March 2010 Mike Young
Slide 2: BC Iron Limited for Investors: An investment opportunity
BC IRON LIMITED FOR INVESTORS For personal use only An investment opportunity: Near-term, Pilbara iron ore exporter Quality pisolite - Direct Shipping Ore Simple mining and metallurgy – minimised performance risk Dynamic team with a record of delivery Experienced JV partner – access to exp
Slide 3: History of BC Iron – staying focussed
BC IRON LIMITED For personal use only History of BC Iron – staying focussed BC Iron lists on Australian Securities Exchange (ASX) in December 2006 Resource drilling identifies iron ore at Nullagine - May 2007 Memorandum of understanding with Fortescue Metals Group (“FMG”)- July 2007 Drilling
Slide 4: BC Iron Limited – Capital & Management
BC IRON LIMITED - CAPITAL & MANAGEMENT For personal use only Capital structure Number Board Shares 83.9M Tony Kiernan – Chairman Options 11.7M Mike Young – Managing Director Fully diluted total 95.6M Garth Higgo – Non-exec Director Market cap @ $1.30 (diluted) $125 M Terry Ransted – Non-exec Directo
Slide 5: Nullagine Iron Ore Project
NULLAGINE IRON ORE PROJECT For personal use only Nullagine Iron Ore Project Pilbara region of WA High quality, direct shipping iron ore deposit Low impurities, high CaFe First grade sinter blend 3 to 5 Mt annual production Rail haulage and port services via FMG/TPI US$50m prepayments f
Slide 6: Nullagine Iron Ore Joint Venture
NULLAGINE IRON ORE JOINT VENTURE For personal use only Project parameters – BCI 50% Ore Reserves 36Mt 57% Fe (65% CaFe) Bonnie Creek Simple mining with low waste to ore Shaw River Start-up 3 Mtpa with simple in-pit crushing and screening Ramp-up 5 Mtpa with fixed plant crushing and screening
Slide 7: Nullagine Joint Venture milestones
NULLAGINE JOINT VENTURE For personal use only Nullagine joint venture milestones Outcamp-Warrigal • Dec to May 2010 – Approval & contracts • March 2010 – Haulage contract awarded • April 2010 – Phase 1 camp construction Camp Location • June 2010 – Haul road – mine centre construction begins • August
Slide 8: Nullagine JV – Outcamp Mine
NULLAGINE JV – OUTCAMP MINE For personal use only 801,000E 802,000E 803,000E 804,000E 805,000E 7,562,000N 7,561,000N Scale 500 m Outcamp-Warrigal deposit Outcropping mesa –style Low waste to ore ratio – 1:1 life-of-mine Above water table No pit – mining off the top 8
Slide 9: Nullagine JV – Outcamp Mine
NULLAGINE JV – OUTCAMP MINE For personal use only Trial Mine Area Bottom of “pit” Water Table Shallow “pits” mainly above surrounding plains - mining ore from day 1 Above water table - lower environmental impact Low OpEx - low strip ratio, use of surface miners, efficient crushing and screening
Slide 10: Outcamp Mine – Trial Mining & Bulk Sample
OUTCAMP MINE – TRIAL MINING & BULK SAMPLE For personal use only Trial mine findings: Plant Site Surface miners are confirmed as suitable to mine Nullagine ore Pit 1 Production rates achieve better than Feasibility estimates Actual tonnes and grade 113% of the predicted model Pit 3 Simple cru
Slide 11: Trial Mining
TRIAL MINING For personal use only Wirtgen 2500 at Outcamp well 11
Slide 12: Trial Mining
TRIAL MINING For personal use only Vermeer terrain leveller Cut ore requires no primary crushing 12
Slide 13: Trial Mining
TRIAL MINING For personal use only Nullagine ore stockpile at Outcamp Trial mine – 66,000 tonnes of quality iron ore 13
Slide 14: Construction
CONSTRUCTION For personal use only Phase 1 camp units under construction 14
Slide 15: Construction
CONSTRUCTION For personal use only Chainage Chainage 40.00 20.00 0.00 Haul road route aerial survey 15
Slide 16: June 2009 – Reserves and Resources Statement
NULLAGINE JOINT VENTURE For personal use only June 2009 – Reserves and Resources Statement Probable Ore Reserves Pit Mt Fe% CaFe% SiO2% Al2O3% P% S% LOI1000 Outcamp 19.2 56.8 64.8 3.21 1.92 0.01 0.01 12.2 Warrigal 10.3 57.0 64.5 3.67 2.13 0.02 0.01 11.7 Coongan 6.0 57.0 65.1 2.52 1.82 0.01 0.01 12.4
Slide 17: Pilbara Iron Ore Fines
PILBARA IRON ORE FINES For personal use only Nullagine DSO Yandi/Robe Pilbara Fines Element Reserve DSO DSO Fe% 57 57 – 58.5 58 - 64 Calcined Fe% 65 64 63-65 SiO2% 3.2 3–6 3–4 Al2O3% 1.9 1.4 – 2.7 1.3 – 2.1 P% <0.02 ~0.04 0.05 – 0.09 LOI 12 9-11 3-8 Size -0.15mm <10% 5-20% 10-30% Direct Shipping Ore
Slide 18: Seaborne Fines Comparison
For personal use only 60 62 64 66 68 70 72 RRF Calcined Fe BHP Yandi FMG Rocket Fines BC Iron Nullagine Mt Newman Pilbara Blend HI Yandi MAC Sishen SSF Carajas LKAB KBF 18 SEABORNE FINES COMPARISON
Slide 19: Seaborne Fines Comparison
For personal use only 0 1 2 3 4 5 6 7 Carajas Calcined SiO2 LKAB KBF Sishen MAC SSF BC Iron Nullagine Pilbara Blend FMG Rocket Fines Mt Newman HI Yandi RRF BHP Yandi 19 SEABORNE FINES COMPARISON
Slide 20: Seaborne Fines Comparison
For personal use only 0.0 0.5 1.0 1.5 2.0 2.5 3.0 LKAB KBF Carajas Calcined Al2O3 SSF Sishen HI Yandi BHP Yandi FMG Rocket Fines MAC Mt Newman Pilbara Blend BC Iron Nullagine RRF 20 SEABORNE FINES COMPARISON
Slide 21: Seaborne Fines Comparison
For personal use only 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 BC Iron Nullagine Calcined P RRF Carajas BHP Yandi LKAB KBF HI Yandi Sishen FMG Rocket Fines SSF MAC Mt Newman Pilbara Blend 21 SEABORNE FINES COMPARISON
Slide 22: Blast Furnaces
BLAST FURNACES 101 For personal use only Blast furnace reduces iron ore to iron metal Coal and lump ore added at the top Burden travels down, hot gases travel up Hot metal and slag removed from the bottom Fines ore ‘sintered’ to make synthetic lump Effects of deleterious elements Al2O3 – a
Slide 23: Marketing
MARKETING For personal use only Excellent sinter blend ore Sintering changing fines to lump by heat agglomeration Low impurities, low ultrafines – improved performance Nullagine sinter blend improves sintering efficiency and productivity Marketing advantages of Nullagine DSO China prefers
Slide 24: Project Pipeline
PROJECT PIPELINE For personal use only Targeted M & A Experienced Pilbara iron ore junior Use in-house experience and IP Use developed relationships (FMG, Henghou) Commodity and geography Realistic targeting Quality and technical & commercial thresholds Bulks (Fe, coal, Mn, etc) Favour
Slide 25: BC Iron Limited – Catalysts
BC IRON LIMITED – CATALYSTS For personal use only BCI is poised for value re-rating: Infrastructure solution secured Approvals in process and on track Key contracts being finalised – long lead items locked in Mining commences Q3 2010 Iron ore exports commence Q4 2010 Data courtesy DJ Carmichael
Slide 26: Supporting Statement
SUPPORTING STATEMENT 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,