Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Investor Presentation (May 2006)
29 slides from Mgx Resources's investor presentation, May 29, 2006
Slide 1: Striking While Iron's Hot
Striking While Iron’s Hot Sydney & Melbourne - May. 2006
Slide 2: Disclaimer
Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, toe any other person, or published, in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited. This Document is not a Prospectus nor an Off
Slide 3: Existing Operations / Growth Potential
e Existing Operations ¢ Growth Potential 3 28/05/2006
Slide 4: Mount Gibson Iron Limited Operations Video
Mount Gibson Iron Limited Operations Video Mount Gibson Iron 4 28/05/2006
Slide 5: Existing Operations
e Existing Operations , fire Af J ar) sPONtTN Pocential 5 28/05/2006
Slide 6: Direct Shipping Grade Hematite
Direct Shipping Grade Hematite Wa Leceelon Tallering Peak wee ¢ First hematite “S ore shipped i Feb 2004 ¢ 2004/05 - 1.84 ; a million tonnes _ iy come produced oaths ; e Current production 2.0 Mtpa e 65% Lump & 35% fines ratio sae Md 6: 1 Life of Mine Tallering Peak Reserve (August 2005) strip ratio
Slide 7: Direct Shipping Grade Hematite
Direct Shipping Grade Hematite e« Excavator - truck - ae crush & screen operation ¢ Cut back of starter pits commenced January 2006 e 3 Mtpa rates achieved in second half of 2006 + Rail and port oe aaa ae , —a access secured ¢ Further exploration upside - 71 - 75 6892000 6329000 6885000 B886000 3560
Slide 8: Tallering Peak Site Layout
Tallering Peak Site Layout 4 Waste Dump
Slide 9: Growth Potential
eof ee riries ry cagtsis irvary: re ee a 2 ee Oe Oe « Growth Potential 9 28/05/2006
Slide 10: Growth Strategy
Growth Strategy ¢ Growth will be incremental and sensibly managed: Increase hematite production at Tallering Peak Develop hematite resource at Mount Gibson commencing with Extension Hill hematite Leverage from Chinese approval to construct a pellet plant at Longtan Maximise value of the extensive Mo
Slide 11: Extension Hill Hematite
Extension Hill Hematite “aie H T é WA Lodation } se", } 5 wh NS { oe MS . Tallering Peak poreome N Hematite & Magnetite é seme - Gbkesy . Yalgoo enone" Poe Meiland ‘, Ak Be tenga 7 ciel Existing : : Pp : WESTERN Sh iproac an lites. ‘Mujlows 40k 5 AVEERALLA — gs . Wolla Wola Y Yarn i : Magnetite : a
Slide 12: Extension Hill Hematite Desktop Study
Extension Hill Hematite Desktop Study e Resource upgrade e Operationally robust ¢ Operationally straightforward e Low capital cost e 3Mt production rate ¢ Low strip ratio - 1:1 or better ¢ Lower Lump / Fines ratio than Tallering Peak e« Immediate cash generator e Utilise knowledge and approvals from
Slide 13: Resource - Location
Resource - Location 13 28/05/2006
Slide 14: Mt Gibson Hematite Resource
Mt Gibson Hematite Resource 14 28/05/2006
Slide 15: 10on # J © ed cv) he a. i. Y ad £ =) =)
10on # J © ed cv) he a. i. Y ad £ 0 =) =) AN ill - H 10n . Extens ne 0 i sy i
Slide 16: EG Gee Us a
EG Gee Us a
Slide 17: Possible Timeline
Possible Timeline Jul-Sep 06 | Oct-Dec 06 | Jan-Mar 07 | Apr-Jun 07 | Jul-Sep 07 | Oct-Dec 07 Feasibility Study > MGM approval BEEBE BRB RE RERBRE ERE Rail build Magnetita PER/approval? ore Roads approval? swsfauveneecnessns + (ggg 17 28/05/2006
Slide 18: Opportunities
Opportunities e Increased production rate e Exploration upside, increase resource/life e Sub-grade: screen enhancement? (4.3Mt @ 55% Fe) e Reduced capital and operating costs e Private haul road, larger haul units e Blending with Tallering Peak to increase reserves at both deposits 18 28/05/2006
Slide 19: Resource - Internal Upside
Resource - Internal Upside A son PH Undrilled portions 150m wide Over 3 x 100m sections iii TTT ee a nh MAMAN 150m x 200m x 25m x 3.2 = 2.4 Mt 19 28/05/2006
Slide 20: Geraldton Port
Geraldton Port Bethe “Hain ees =f ater t Buk Vine an Fle Tunlag Pace, z i oD GERALDTON PORT LEASE AREA - ACCESS ROADS AND RAIL ae,
Slide 21: Stand Alone Hematite Facility - Berth
Stand Alone Hematite Facility - Berth 5 Gra AesIETIND pnepasee tei BERTH OPTIONS TONGPT LAYOUT - MOUNT GIBSON MINING LTO HAERATITE PLAR Paice aacinsen _[" pevamaas-aitno
Slide 22: Extension Hill Magnetite
Extension Hill Magnetite . Feasibility completed Produce 5 Mtpa magnetite concentrate (68% Fe) - 50% of concentrate sold to JV Ne partner for feed to their blast furnaces and 50% delivered to Asia iron’s (71% MGI and MGM) Q : ae crit isae teioee Talloring Peak Hoenn & Magnet en wesreas sarki pellet
Slide 23: Mount Gibson Locality
Mount Gibson Locality \ Sse x Siti: : i re + , Geology} ; 2, 60 \ Magnetic Signature X N ‘ 1459-609 mg-01-118.dge. 23 28/05/2006
Slide 24: Extension Hill Geological Section
Extension Hill Geological Section me Weathered Zone , rt Transition Zone i Recovery %! Conc Fe % Cone Si0L% 69.2% oo ae a Mount Gibson iron EXTENSION HILL maOt-t20.dan
Slide 25: Extension Hill Site Layout
Extension Hill Site Layout 4000m e Po z a j J ; ee Co-located Waste Dump/ Great Northern : Dry Taliings Storage Paciiity eS i i My Conveyor Extension Hit Pit
Slide 26: Nanjing Pellet Plant
Nanjing Pellet Plant e Capacity of 2.5 Mtpa itabira Fines versus Nibrasco Pellets for Japan blast furnace grade pellets ° Location advantages: Reduce shipping costs - Expanding steel making region - Located at a new port - Lower capex and opex than Australia - Skilled workforce available - Nanjing a
Slide 27: Extension Hill Magnetite Project & Longtan Pellet Plant
Extension Hill Magnetite Project & Longtan Pellet Plant e Projects provide significant option value e Costs, approvals, construction schedules and risks differ significantly 27 28/05/2006
Slide 28: Summary
Summary ¢ Mount Gibson is an established and expanding iron ore producer e Strong managerial and technical capability e Low debt ¢ Enjoys long term access agreements to services and infrastructure ¢ Positioned to springboard from current market conditions ¢ Project pipeline underwrites growth ¢ Abil
Slide 29: Competent Person
Competent Person The information in this report relating to the 2006 Extension Hill Hematite Mineral Resources is based on information compiled by Rolf Forster, who is a member of the Australasian Institute of Mining and Metallurgy and holds a B App Sc in Geology. Ralf Forster is a consultant to Mou