Brockman Mining Ltd. · HKEX:159
Brockman Mining — Investor Presentation (February 2014)
37 slides from Brockman Mining's investor presentation, Feb 24, 2014
Slide 1: Pilbara Infrastructure – A New Landscape
For personal use only PILBARA INFRASTRUCTURE PILBARA INFRASTRUCTURE––AANEW NEWLANDSCAPE LANDSCAPE Investor Presentation – November 2013 Investor Presentation – February 2014 Russell Tipper, Chief Executive Officer, Brockman Mining Australia Russell Tipper, Chief Executive Officer, Brockman Mining Au
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by and issued by Brockman Mining Limited (“Brockman” or “the Company”) to For personal use only assist it in informing interested parties about the Company. It should not be considered an invitation or offer to subscribe for or purchase any securities i
Slide 3: Capital Structure
Capital Structure As at 17 February 2014 For personal use only Shares on issue 8.4 billion Market capitalisation A$502.8 million Cash on hand* A$ 37.5 million Debt* NIL Enterprise value A$ 465.3 million Options on issue 435 million * Estimated excluding Transport Services discontinued operation 3
Slide 4: Brockman Pilbara Assets
Brockman Pilbara Assets For personal use only 4
Slide 5: Mineral Resources/Ore Reserves Summary
Mineral Resources/Ore Reserves Summary* Project Resource Grade Reserve Grade For personal use only (Mt) (% Fe) (Mt) (% Fe) Marillana Detrital 1,528 42.6 1,001 42.4 CID 102 55.6 48 55.5 Ophthalmia Coondiner DSO 129 58.3 - - Kalgan Creek DSO 52 59.1 - - Sirius DSO 109 60.0 - - West Pilbara Duck Creek
Slide 6: Marillana Iron Ore Project Summary
Marillana Iron Ore Project Summary KEY STATISTICS For personal use only Mining 1.05 Bt Reserve (Proven: 133 Mt (JORC) * Probable: 916 Mt) Final product 419 million tonnes at and grade 60.5–61.5% Fe Mining - Conventional truck Operations and shovel - Free digging - Average Strip Ratio: 0.8:1 over lif
Slide 7: Marillana Project Funding Summary
Marillana Project Funding Summary DEVELOPMENT FUNDING For personal use only Definition Status Potential Source Status MINE Marillana Definitive Engineering Joint venture Awaiting rail Study (DES) partner definition completed (up to 40 %) New Proposing Pre- Aurizon Awaiting independent rail Feasibili
Slide 8: Assembling Mtpa – 2014
Assembling 35 Mtpa – 2014 • Growing acceptance that the Marillana Project is a crucial part of ANY new For personal use only Pilbara infrastructure initiative, due to its significant tonnage throughput and long mine life (‘20/20’) • Ophthalmia Project – becoming a strategic and significant future pr
Slide 9: Potential users of Infrastructure
Potential users of Infrastructure Product Production Life Project Owner Status For personal use only Mt Mtpa years Marillana BCK 419 20 20 Major approvals Iron Valley IOH/MIN 135 5 27 Most approvals Phil’s Creek MIN 15 3 5 In production Pilbara iron Ore Project FMS 229 15 15 PFS Mt Webber AGO 64 6 1
Slide 10: Marillana – Rail Infrastructure
Marillana – Rail Infrastructure For personal use only 10
Slide 11: Base Case: East Pilbara Independent Railway
Base Case: East Pilbara Independent Railway Completed first stage of East Pilbara For personal use only • Independent Rail Study • Aurizon and NWI (Brockman and Atlas) continue to consider integrated rail and port studies • Other potential users of the infrastructure to be invited to participate in
Slide 12: Access Case – TPI Railway
Access Case – TPI Railway • Brockman submitted an application to For personal use only access the TPI railway on 15 May 2013 under the WA Rail Access Code (2000) • Independent assessment indicates that TPI has available rail capacity within its current configuration • TPI is obliged under the Rail A
Slide 13: Rail Access Regime – Status
Rail Access Regime – Status • Brockman requires access to only part of the TPI network (196 km) For personal use only • In May 2013, TPI made an application to the ERA under section 10 (1) of the Code requiring its approval for negotiations to proceed. In August 2013, ERA approved negotiations to pr
Slide 14: Rail Access Regime – Status
Rail Access Regime – Status Validity Proceeding In this proceeding TPI seeks to challenge the validity of Brockman’s access proposal For personal use only • Orders for direction (i.e. defined discovery with strict confidentiality provisions) have been agreed. • TPI lawyers have inspected Brockman’s
Slide 15: Supreme Court Action seeking Judicial Review
For personal use only Supreme Court Action seeking Judicial Review of ERA’s Section 10 and Floor and Ceiling determinations and a Declaration that Brockman’s Access proposal does not enliven the Code 15
Slide 16: Marillana – Port Infrastructure
Marillana – Port Infrastructure For personal use only 16
Slide 17: Port Infrastructure
Port Infrastructure PORT INFRASTRUCTURE STATUS 2008 North West Infrastructure (NWI) For personal use only established joint venture company (Brockman Mining Limited (37%); Atlas Iron Limited (63%); 2009 NWI granted a 50 Mtpa allocation by the Western Australian State Government to develop two berths
Slide 18: Ophthalmia – Next Phase
Ophthalmia – Next Phase For personal use only 18
Slide 19: Next Phase: Ophthalmia Iron Ore Project
Next Phase: Ophthalmia Iron Ore Project • 100% owned Deposits at Sirius, Coondiner (Pallas and Castor), For personal use only Kalgan Creek • Potentially as significant as the Marillana Project with bedded hematite mineralisation (DSO) discovered 15 – 30 km north of Newman • Mineralisation is hosted
Slide 20: Ophthalmia Exploration Success
Ophthalmia Exploration Success Sirius Deposit For personal use only • Significant intersections* at predominantly infill drilling at Sirius 176 m at 60.7% Fe from 22 m in hole SRC0137 160 m at 61.7% Fe from 8 m in hole SRC0140 164 m at 61.2% Fe from 28 m in hole SRC0139 and 116 m at 62.0% Fe
Slide 21: Recent Exploration Success
Recent Exploration Success For personal use only Coondiner Deposits • Significant intersections at extension drilling at Coondiner 121 m at 59.5% Fe from 24 m in hole CNRC0216 86 m at 59.4% Fe from 24 m in hole CNRC0222 Holes located 200 m and 400 m respectively south-east of the existing Mine
Slide 22: Ophthalmia Exploration Upside
Ophthalmia Exploration Upside • Further exploration will focus on Exploration Targets* at Coondiner, For personal use only for a possible expansion of the Mineral Resource inventory • ‘Three Pools’ area (including the Top Forge and Crucible prospects) represents one of the main Exploration Targets*
Slide 23: Why Brockman?
Why Brockman? • Most active in driving an infrastructure outcome For personal use only • Largest approved junior owned project in Pilbara • Core to anything Aurizon does in East Pilbara • Significant exploration upside (Ophthalmia) • Strong shareholder support and connections into South East Asia •
Slide 24: Appendix – Background slides
For personal use only Appendix 1 Background slides 24
Slide 25: Corporate Strategy
Corporate Strategy For personal use only Short term Expedite development of the Marillana hematite project located in the eastern Pilbara and associated rail and port infrastructure to full commercial production, the timing of which is subject to confirmation of an infrastructure solution Mid term A
Slide 26: Marillana Iron Ore Project – Mine
Marillana Iron Ore Project – Mine MINE STATUS 2010 DES confirmed that Marillana Project is financially robust and long life For personal use only 2011 FEED completed, including further engineering and optimisation studies 2011 Native Title agreements and key environmental approvals finalised and app
Slide 27: Marillana Iron Ore Project – Metallurgy and Processing
Marillana Iron Ore Project – Metallurgy and Processing For personal use only Simple mining & processing • Shallow, large scale mining • Simple robust process flow sheet • Positive sintering performance • - 8 mm +1 mm product size – no ultra fines • Additional yield possible from -1mm material 27
Slide 28: Marillana – Final Product and Sinter Performance
Marillana – Final Product and Sinter Performance FINAL PRODUCT GRADES For personal use only Fe SiO2 AI2O3 S P LOI 1000°C (%) (%) (%) (%) (%) (%) 60.5 – 61.5 6.0 – 6.5 2.5 – 3.0 <0.02 <0.08 2.0 – 3.0 • Hematite concentrate with a - 8 mm +1 mm size specification • Final Fe grades equivalent to major P
Slide 29: Appendix – Resource and Reserve Summaries
For personal use only Appendix 2 Resource and Reserve Summaries 29
Slide 30: Marillana Mineral Resource Summary
Marillana Iron Ore Project Mineral Resource Summary BENEFICIATION FEED For personal use only (Cut-off grade: 38% Fe) Mineralisation Resource Tonnes Grade type classification (Mt) (% Fe) Detrital Measured 173 41.6 Indicated 1,036 42.5 Inferred 201 40.7 Pisolite Indicated 117 47.4 Subtotal Measured 17
Slide 31: Marillana CID Mineral Resource Summary
Marillana Iron Ore Project Mineral Resource Summary For personal use only MARILLANA CID (Cut-off grade: 52% Fe) Resource Tonnes Fe CaFe AI2O3 SiO2 P LOI classification (Mt) (%) (%) (%) (%) (%) (%) Indicated 84.2 55.8 61.9 3.6 5.0 0.097 9.8 Inferred 17.7 54.4 60.0 4.3 6.6 0.080 9.3 TOTAL 101.9 55.6 6
Slide 32: Marillana Ore Reserve Summary
Marillana Iron Ore Project Ore Reserve Summary For personal use only MARILLANA DETRITAL ORE RESERVES Reserve classification Mt Fe (%) Proven 133 41.6 Probable 868 42.5 TOTAL 1,001 42.4 MARILLANA CID ORE RESERVES* Reserve classification Mt Fe CaFe* Sio2 AI2O3 P LOI (%) (%) (%) (%) (%) (%) Probable 48
Slide 33: Ophthalmia Mineral Resource Summary
Ophthalmia Iron Ore Project Mineral Resource Summary For personal use only OPHTHALMIA DSO Mineral Resources (Cut-off grade: 54% Fe) Deposit Class Tonnes Fe CaFe* SiO2 Al2O3 S P LOI (Mt) (%) (%) (%) (%) (%) (%) (%) Kalgan Creek Indicated 12.5 59.3 62.6 4.02 4.79 0.007 0.20 5.41 Inferred 39.7 59.1 62.
Slide 34: Exploration Targets Summary East Pilbara
Exploration Targets1 Summary East Pilbara For personal use only Deposit/Area Tonnes (Mt) Fe Grade (%) Kalgan Creek 8 – 14 56 -61 Sirius 14 – 19 56 – 61 Three Pools 20 – 60 56 – 60 Total 42 - 93 56 - 61 1 Exploration Targets: Any discussion in relation to the potential quantity and grade of Explorati
Slide 35: West Pilbara Mineral Resource Summary
West Pilbara Iron Ore Project Mineral Resource Summary For personal use only WEST PILBARA DSO Mineral Resources (Cut-off grade: 54% Fe) Deposit Class Tonnes Fe CaFe* SiO2 Al2O3 S P LOI (Mt) (%) (%) (%) (%) (%) (%) (%) Duck Inferred 18.3 56.5 62.8 4.91 3.22 0.037 0.06 10.0 Creek Total 18.3 56.5 62.8
Slide 36: Competent Person’s Statement
Competent Person’s Statement The information in this presentation that relates to Mineral Resources and Ore Reserves at Marillana and Ophthalmia is based on information compiled by Mr I Cooper, Mr J Farrell and Mr A Zhang. The information in this presentation that relates to Mineral Resources at Duc
Slide 37: Contact
CONTACT For personal use only Michelle Manook General Manager External Affairs michellemanook@brockman.com.au Mobile: +61 417 954 474 117 Stirling Highway NEDLANDS WA 6009 Australia www.brockmanmining.com 37
Brockman Mining — Investor Presentation (February 2014) on 6ix