WA Gold Limited · ASX:WAU
WA Gold — Brazilian Metals Group — Investor Presentation (July 2011)
38 slides from WA Gold's investor presentation, July 2011
Slide 1: Brazilian Metals Group Ltd Investor Update
BRAZILIAN METALS GROUP LTD An emerging Australian Iron Ore company focussed on Brazil ASX: BMG Investor Update July 2011 1
Slide 2: Disclaimers
Disclaimers The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Malcolm Castle, who is a Member of the Australasian Institute of Mining and Metallurgy (“AusIMM”). Mr Castle is a director of the Company and he
Slide 3: Why Brazil?
Why Brazil? Project situated in emerging world class iron ore region in Northern Minas Gerais, Brazil Minas Gerais Strong economic environment – growth currently c. 7.7% per annum Stable political system, security of tenure on mineral licenses and low Northern Minas Gerais sovereign risk Sig
Slide 4: BMG at a Glance
BMG at a Glance Company re-listed in December 2010 after successful $7 million capital raising Focused on Iron Ore in world class Iron province in Brazil Experienced management group with commercial, corporate and technical expertise to deliver shareholder value Potential multi-billion tonne
Slide 5: Corporate Strategy
Corporate Strategy Develop a substantial mining enterprise in northern Minas Gerais, Brazil Strategic by developing a mining/processing and transport operation with the scale Vision to export in excess of 25Mt of premium iron product per annum Identify and acquire areas prospective for large iron
Slide 6: Project Structure
Project Structure Minas Norte Mineracao Ltda (wholly owned subsidiary of BMG) FOCUS - NORTH MINAS GERAIS IRON ORE PROVINCE GEMA VERDE PROJECT RIO PARDO PROJECT Overview: Overview: Contiguous with the Honbridge Advanced exploration project Block 8. 2.65Bt resource 10 targets identified on exten
Slide 7: BMG's Projects
BMG’s Projects Rio Pardo Project Vale Deposit Honbridge Block 7 Mtansminas Deposit ENRC Jiboia Deposit Honbridge Block 8 Gema Verde Project 7
Slide 8: Gema Verde Drill Locations
Gema Verde Drill Locations Honbridge Block 8 orebody (2.6 billion tonnes) abuts the central tenement Further potential exists to the west and down dip from Block 8 Exploration Target of 370 to 680 million tonnes at 16.6% Fe to 19.9% Fe Block 8 . Gema Verde 8
Slide 9: Gema Verde Drill Results
Gema Verde Drill Results Project drilled with diamond coring in 35 holes for a total of 5,514 metres in 2008 • 27.35m at 24.0% Fe from 3.2m in FSD011 • 25.7m at 23.4% Fe from 103.7m in FSD032 • 28.3m at 20.2% Fe from 152.85m in FSD024 • 16.8m at 27.8% Fe from 2.9m in FSD013 • 20m at 22.0% Fe from
Slide 10: Comparison With Honbridge
Comparison With Honbridge Honbridge’s Block 8 Resource represents the same mineralised zone as the adjacent Gema Verde mineralisation. Gema Verde abuts to the south separated by a tenement boundary and mineralisation has been delineated in BMG’s tenement. Block 8 resource totals 2.6 billion to
Slide 11: Rio Pardo Project
Rio Pardo Project VARGAM GRANDE Red Prospects have 10 km to the north Had preliminary TOWER JORGE drill testing MARLI TEIU SEM TERRA CARBON HILL JOSILENE – SCORPION PROSPECT PIT BULL ALINE 11
Slide 12: Rio Pardo Drill Results
Rio Pardo Drill Results Highlights of the Josilene - Scorpion Drilling Strike length of 13km with 26 of the 28 holes drilled returning results over 15% Fe with weighted average of 17% Fe, including: • 76 metres at 17.0% Fe from surface in JORC006 • 64 metres at 16.8% Fe from surface in JORC005 • 4
Slide 13: Work Program
Work Program Gema Verde Project June 2011 – Mid Oct. 2011 Comments 5,000 metres RC drilling BMG’s drilling focus from June-August 1,200 metres DD Drilling Resource definition drilling will be completed by Metallurgical Test work mid September Metallurgical Testwork will be completed by
Slide 14: Beneficiation
Beneficiation The proposed process design will be similar to that used at the operating Alegria Mine owned by Samarco (BHPBilliton and Vale JV) in southern Minas Gerais Conceptual Process Design Pellet Feed Product Coarse grained hematite - silica Market premium over lump and fines ores minera
Slide 15: Australian Comparison: Braemar Iron Formation
Australian Comparison: Braemar Iron Formation • BMG’s Brazilian iron ore projects at Gema Verde and Rio Pardo are very similar in mode of formation to the Braemar Iron Formation in SA-NSW • Both are Neoproterozoic diamictites with magnetite – hematite minerals • Both regions have target expectations
Slide 16: Australian Comparison: Iron Road's SA Iron Project
Australian Comparison: Iron Road’s SA Iron Project Iron road (ASX: IRD) has a Magnetite gneiss host, coarse grained moderate hardness iron deposit north of Port Lincoln, South Australian Nothing like WA magnetite deposits which are microcrystaline and very hard Current resource of 1.2 billion
Slide 17: Australian Comparison: BMG's Advantage
Australian Comparison: BMG’s Advantage Iron Road, SA Typical BIF, WA North Minas Gerais Age Archean Magnetite gneiss Lower Proterozoic BIF NeoProterozoic diamictite Geological High Grade Metamorphism Low Grade Structural disruption History Metamorphism Mineralogy Granular magnetite – low Microcrysta
Slide 18: Brazil Rail Infrastructure
Brazil Rail Infrastructure The Brazilian Government has commenced a program of rail infrastructure construction to extend across the country. The EF334 line from Ilheus to Caetite will be completed by mid 2012 18
Slide 19: Regional Activity
Regional Activity Very substantial ore bodies have been discovered in northern Minas Gerais state and iron ore projects (at all levels of development) are commanding very high values. Vale do Rio Pardo project was sold to Honbridge (backed by Chinese State owned Xinwen and Shandong Iron & Steel
Slide 20: BMG Opportunity Recap
BMG Opportunity Recap Major Iron project in world class Iron province in Brazil - early mover advantage permitted BMG to secure substantial land holding with multiple large prospects with ground floor entry Potential multi billion tonnes at 17% to 30% Fe with regional infrastructure under constr
Slide 21: Appendix
APPENDIX Diamictite ore 21
Slide 22: Appendix
Appendix Corporate Directory Director and Management Profiles Capital Structure Drill Intercept Criteria Geological Notes: Iron Ore in Brazil Style and Concept Model The Northern Minas Gerais iron Ore Province Geological Setting Background to the Project Beneficiation and Pelletizing Josilene Drilli
Slide 23: Corporate Directory
Corporate Directory DIRECTORS PRINCIPAL PLACES OF BUSINESS Australia: Peter O’Connor (Chairman) Level 14, 191 St George’s Terrace Bruce McCracken (CEO) Perth, WA, 6000, Australia Email: bmccracken@bmgl.com.au Malcolm Castle (Exec.) Telephone: (08) 9424 9390, Fax: (08) 9321 5932 Email: mcastle@bmgl.c
Slide 24: Directors and Management
Directors and Management Mr. Peter O'Connor – Chairman MA Economics and Political Science, Trinity College, Dublin; called to the Irish Bar, King’s Inns, Dublin (1964) Mr O'Connor has over 40 years experience in international investment management, and is chairman of a number of publicly quoted inve
Slide 25: Directors and Management
Directors and Management Mr. Anthony Augustine Trevisan – Non-Executive Director Mr Trevisan has over 30 years corporate experience in the establishment and management of companies, equity and debt financings, mergers and acquisitions and the restructuring of mineral resources, petroleum and propert
Slide 26: Capital Structure
Capital Structure ASX Codes: BMG/ BMGO Total Issued Shares: c.147.7 million Escrowed Shares*: c.72.2 million Tradeable Options: c.136.8 million (ex. 20c until 31/03/2014) Escrowed Options: c.1.24m (ex. 20c until 31/10/2011) 0.75m (ex. 20c until 30/11/2012) Net cash at 30 June 2011: A$4.3 million * S
Slide 27: Drill Intercept Criteria
Drill Intercept Criteria Rio Pardo Reverse Circulation intercepts Significant zones of mineralisation are based on a lower cut off of 15% Fe. All assay intercepts are down hole intervals in vertical holes and at this stage the structure of the host rocks is not known in sufficient detail to estimate
Slide 28: Iron Ore in Brazil
Iron Ore in Brazil The geology of Brazil’s land mass is not well known when compared with the large quantity and high quality of the geological studies of other countries with mining traditions, such as Canada, Australia and the United States. Despite this shortage of basic information, Brazil is kn
Slide 29: Iron Ore in Brazil (Cont'd)
Iron Ore in Brazil (Cont’d) In addition to these two provinces, other important reserves exist in Brazil, such as Corumbá in the state of Mato Grosso do Sul, and Rio do Peixe Bravo, Guanhães and Morro do Pilar in the state of Minas Gerais. In Corumbá, the most important reserves are concentrated in
Slide 30: Style and Concept Model
Style and Concept Model There is a clear distinction between older Banded Iron Formation iron ore deposits and the younger Rapitan type deposits which has an important bearing on their exploration approach and beneficiation characteristics. The North Minas Gerais (Rio do Peixe Bravo) deposits are of
Slide 31: Northern Minas Gerais Iron Ore Province
Northern Minas Gerais Iron Ore Province The geological structure in mid-eastern Brazil is largely derived from the Brazilian orogenesis which created a network of fold belts separated by cratons. The São Francisco Craton stretches over an area of approximately 680,000 Km2, comprising areas of the st
Slide 32: Geological Setting
Geological Setting The Macaúbas Group, a major stratigraphic unit in the Araçuaí Belt, which was deposited under glacial influence, is composed of metadiamictites, quartzites, phyllites and quartz schists. Local metadiamictites were initially interpreted, during the 1950s and 1960s, as being tillite
Slide 33: Background to the Project
Background to the Project The area was first explored in 1964 - 78 by Vale and more recent work by Codemig, Miba, Vototantim, Mtransminas and Gema Verde has established a firm foundation for a large iron ore industry in the area with extensive surface indications of iron mineralization. The Rio Pard
Slide 34: Deposit Locations
Deposit Locations Known Ore bodies in the North Minas Gerais Province RIO PARDO VALE Nova Aurora HONBRIDGE Block 7 MTRANSMINAS ENRC Jiboia HONBRIDGE Block 8 GEMA VERDE 34
Slide 35: Beneficiation and Pelletizing
Beneficiation and Pelletizing Lower grade Iron ore cannot be used directly in metallurgical plants and needs to be upgraded to increase the iron content and reduce the impurity content. A process adopted to upgrade ore is called Beneficiation. Iron ore is being beneficiated all round the world to me
Slide 36: Gema Verde Drilling Results
Gema Verde Drilling Results Hole ID Easting Northing RL Azi Decl Depth Hole ID From To Int. Fe,% SiO2, % Al2O3,% P,% FSD 08-001 741,668 8,196,214 924 0 - 90.00 169.15 FSD 08-001 42.95 52.95 10.00 20.90 65.20 2.92 0.086 FSD 08-002 741,177 8,196,252 921 330 - 75.00 102.00 FSD 08-002 No significant Res
Slide 37: Josilene Drilling Results
Josilene Drilling Results Hole ID Easting Northing RL Azi Decl Depth Hole ID From To Int. Fe,% SiO2, % Al2O3,% P,% LOI,% 792,756 0/360 - 90.00 JORC 001 8,261,935 143.00 JORC001 104 128 24 14.97 62.28 9.46 0.128 792,785 0/360 - 90.00 JORC 002 8,262,250 118.00 JORC002 36 60 24 15.76 64.90 7.91 0.056 3
Slide 38: Scorpion Drilling Results
Scorpion Drilling Results Hole ID Easting Northing RL Azi Decl Depth Hole ID From To Int. Fe,% SiO2, % Al2O3,% P,% LOI,% 0/360 - 90.00 SCRC 001 781,910 8,255,826 164.00 SCRC001 20 124 104 15.03 61.90 9.83 0.143 2.75 0/360 - 90.00 SCRC 002 782,347 8,256,381 109.00 SCRC002 20 36 16 17.75 57.63 10.43 0
Brazilian Metals Group — Investor Presentation (July 2011) on 6ix