Strike Resources Limited · ASX:SRK
Strike Resources — Latin America Down Under (LADU) 2018 Conference
32 slides from Strike Resources's conference presentation, May 16, 2018
Slide 1: Peru Iron Ore Presentation at Latin America Down Under Conference
Wednesday, 16 May 2018 ASX Code : SRK For personal use only ASX MARKET ANNOUNCEMENT Peru Iron Ore Presentation at Latin America Down Under Conference Strike Resources Limited (ASX:SRK) (Strike) is pleased to attach a copy of its “Peru Iron On Track” presentation made by the Managing Director at the
Slide 2: Peru Iron On Track
For personal use only Peru Iron On Track May 2018
Slide 3: Government sponsored multi-user railway is the catalyst to advance Strike's 20Mtpa iron ore project
Peru Government sponsored multi-user railway is the catalyst to advance Strike’s 20Mtpa iron ore project For personal use only Apurimac Project (SRK: 100%) • Peru Government plans a multi-user railway connecting Strike’s Apurimac Project to Port. • Apurimac is one of the world’s highest grade large
Slide 4: The catalyst to ramp-up project activity
For personal use only THE CATALYST TO RAMP-UP PROJECT ACTIVITY Peru Government plans a multi-user railway connecting Strike’s project mine to port Peru Iron On Track
Slide 5: The Government sponsored multi-user Andahuaylas Railway is a game changer for Strike
For personal use only The Government sponsored multi-user Andahuaylas Railway is a game changer for Strike in Peru. The proposed Andahuaylas Railway route: Governor of Apurimac, CADE. 30 November 2017 • The Government of Peru is planning a multi-user railway from Andahuaylas – located 20km from Stri
Slide 6: Prefeasibility Study confirms potential for a world class iron ore project
Strike completed a Prefeasability Study in 20081 (updated in 20102) on the Apurimac Project, which confirmed clear potential for development of a world class iron ore project For personal use only Planned Production Capacity of 20 million tonnes per year of iron-ore lump and fines • Base case of 20M
Slide 7: MOU with DHHI (China) provides affirmation of international interest
MOU with DHHI (China) provides For personal use only affirmation of international interest in Strike’s Project • Dalian Huarui Heavy Industry Group (DHHI) is a major supplier to mining industry (e.g. bulk handling machinery for Roy Hill, Australia). • MOU signed with Strike in February 2018 to work
Slide 8: What is the Value Potential for Strike now?
What is the Value Potential for Strike now? 2008 2018 For personal use only Pictures here. Peru Iron Ore Asset US$650M1 ? Valuation May 2008 Mkt. Cap: $270M Strike share of Peru Iron 69%: 100% Ore Assets (US$450M) SRK Market Capitalisation A$260M A$9M (May) Iron Ore Price (62% fines US$62/t ~US$70/t
Slide 9: The Apurimac & Cusco Iron Ore Projects
For personal use only THE CATALYST TO RAMP-UP PROJECT ACTIVITY Peru Government plans a multi-user railway connecting Strike’s Project mine to port The Apurimac & Cusco Iron Ore Projects
Slide 10: The Andahuaylas Railway is the trigger for Strike to restart development
…the Andahuaylas Railway is the trigger for Strike to restart development. Strike is already well For personal use only established in Peru • Strike has been operating in Peru for thirteen years, since 2005. • During this time, Strike has invested over $50 million in developing its iron ore assets i
Slide 11: Strike's Projects are in the highly prospective Apurimac and Cusco Regions
Strike’s Projects are in the highly prospective Apurimac and Cusco Regions in southern Peru, with other world class mineral projects nearby which will also benefit from the proposed railway For personal use only Concessions Apurimac Ferrum S.A Strike Resources Peru S.A.C Cu Resource (MT) N/A 1-100 1
Slide 12: The Andahuaylas Railway will allow Strike's projects to form the hub of a 40Mtpa iron ore industry
The Andahuaylas Railway will allow Strike’s projects to form the hub of a new potential 40Mtpa iron ore industry in Peru For personal use only Peru Iron Apurimac Iron 20 Mtpa Cusco Iron 20 Mtpa = Total Iron 40 Mtpa Strike’s Iron Ore Projects and Transport Routes 11
Slide 13: Apurimac Iron Ore Deposit has sufficient defined resources and exploration upside
Strike’s Apurimac Iron Ore Deposit has sufficient defined resources and exploration upside for at least 10 - 20 years of Iron Production (@ 10 – 20 Mtpa) For personal use only Bouguer Opaban 1 Pictures here. Gravity Anomaly Current JORC Resources of 269Mt at 57.3% Fe • Continuous broad zones Opaban
Slide 14: The Apurimac Deposit is easily accessible and has a low strip ratio
The Apurimac Deposit is easily accessible For personal use only and has a low strip ratio 13
Slide 15: View from the south of the Apurimac Project
For personal use only View from the south of the Apurimac Project 14
Slide 16: View from the north of the Apurimac Project
For personal use only View from the north of the Apurimac Project 15
Slide 17: Apurimac Project has a favourable location and existing infrastructure
The Apurimac Project has a favourable location in an area with a benign climate and is well served by existing infrastructure For personal use only Location • Iron deposit is directly adjacent to regional airport of Andahuaylas • 3,500m altitude, similar elevation to other mines in Peru • Climate is
Slide 18: Strike has previously demonstrated potential to commence near-term production
Strike has previously demonstrated potential to commence near-term For personal use only production to generate early cashflows Strike has already created a stockpile of high grade DSO material and sold to local steel mill • 10,000 tonnes has been mined by local ‘community miners’ • 65% Fe, 0.04% P,
Slide 19: Iron ore stockpiles
For personal use only Iron ore stockpiles 18
Slide 20: Cusco Project offers expansion potential for an additional 20 Mtpa
Strike’s Cusco Project offers expansion potential for an additional 20 Mtpa For personal use only (40MTpa total between Apurimac and Cusco) Current JORC Resource of 104Mt at 32.6% Fe with exploration upside • Mineralisation remains open along strike and at depth • Predominantly coarse-grained magnet
Slide 21: Community Relations are important in Peru
Community Relations are important in Peru: For personal use only Strike has funded many community education and development programmes with local communities 20 20
Slide 22: Next Steps for Strike
For personal use only THE CATALYST TO RAMP-UP PROJECT ACTIVITY Peru Government plans a multi-user railway connecting Strike’s Project mine to port Next Steps for Strike
Slide 23: Strike will advance its Apurimac mine and plant in parallel with railway development
Strike will advance its Apurimac mine and plant in parallel with proposed For personal use only Andahuaylas Railway development Railway will likely take ~5 – 7 years to complete, during which time Strike plans to: • Re-commence exploration to expand and upgrade JORC Mineral Resources (2018 – 2020) •
Slide 24: Strike is now on track for a significant value re-rating
Strike is now ‘on track’ for a significant value re-rating For personal use only SUMMARY • Government sponsored Andahuaylas Railway will facilitate development of Strike’s 20 Mtpa Apurimac High Grade Iron Ore Deposit • Relationship with Chinese DHHI first step in building strategic partnerships with
Slide 25: Appendices
For personal use only THE CATALYST TO RAMP-UP PROJECT ACTIVITY Peru Government plans a multi-user railway connecting Strike’s Project mine to port Appendices
Slide 26: SRK Capital Structure and trading history
SRK Capital Structure and 12 months trading history For personal use only Issued Capital 145 million 52 week trading range 3.8 – 8.5 cents Market Capitalisation (@ 6 cents) $9 Million Cash + Liquid Investments Balance $5 Million Shares Top Shareholders % Issued Capital (Million) Bentley Capital Limi
Slide 27: Board of Directors
Strike Resources Limited (ASX:SRK) Board of Directors For personal use only Chairman - Farooq Khan Director - Malcolm Richmond LLB, BJuris (UWA) BSc Hons (Metallurgy) and B. Comm. Merit (Econs) (UNSW) Mr Khan is a qualified lawyer and has extensive experience Mr Richmond has 30+ years’ experience in
Slide 28: Drilling and Studies undertaken to date
Drilling and Studies undertaken to date For personal use only Schedule of Significant Studies Undertaken Schedule of Drilling Year Study Conducted By Year Location Region Metres 2008 Pre-Feasibility Study SRK Mining Industry Consultants Drilled Opaban I and I Resource Estimates Snowden 2005 Opaban 1
Slide 29: JORC Mineral Resources (Peru)
JORC Mineral Resources (Peru) For personal use only Apurimac: Combined Mineral Resources for Opaban 1 and Opaban 3 Concessions Category Project Density t/m3 Mt Fe% SiO2% Al2O3% P% S% Indicated Opaban 1 4 133.71 57.57 9.46 2.54 0.04 0.12 Indicated Opaban 3 4 8.53 62.08 4.58 1.37 0.07 0.25 Inferred Op
Slide 30: JORC Code Competent Person's Statements
JORC CODE COMPETENT PERSON’S STATEMENTS JORC Code (2012) Competent Person Statement - Apurimac Project Mineral Resources For personal use only The information in this document that relates to Mineral Resources in relation to the Apurimac Iron Ore Project (Peru) is extracted from the following ASX ma
Slide 31: Forward Looking Statements
For personal use only FORWARD LOOKING STATEMENTS This document contains “forward-looking statements” and “forward-looking information”, including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves
Slide 32: For personal use only
For personal use only Australia William Johnson Managing Director Strike Resources Limited (ASX:SRK) Tel: +61 8 9214 9700 wjohnson@strikeresources.com.au 2 31 31
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