Magnetite Mines Ltd. · ASX:MGT
Magnetite Mines — Investor Presentation (April 2017)
20 slides from Magnetite Mines's investor presentation, Apr 18, 2017
Slide 1: Olary Magnetite Project - Broker & Investor Presentation
For personal use only ASX Announcement 18 April 2017 Olary Magnetite Project - Broker & Investor Presentation Following recent ASX announcements1,2,3 detailing the proposed merger between Magnetite Mines Limited (ASX: MGT) (Company) and Lodestone Equities Limited , please find attached the broker an
Slide 2: Olary Magnetite Deposit Phase 1 - On the Fast Track to Production
For personal use only OLARY MAGNETITE DEPOSIT PHASE 1 - ON THE FAST TRACK TO PRODUCTION April 2017
Slide 3: Forward Statement
Forward Statement For personal use only This presentation has been prepared by Magnetite Mines Limited (ABN 34 108 102 432) (“MGT”) based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the inform
Slide 4: Phase 1 - Olary Deposit Fast Track to Production
For personal use only PHASE 1 - OLARY’S DEPOSIT FAST TRACK TO PRODUCTION • The merger of MGT and Lodestone Equities provides access to a new high-grade magnetite deposit at Olary, in the Mawson Iron Project, South Australia • Concentrates at ~ 70% Fe1, opening opportunity for Direct Reduction (DR) i
Slide 5: What Is Direct Reduction Iron Making?
For personal use only WHAT IS DIRECT REDUCTION IRON MAKING? • Direct Reduced Iron (DRI) is an alternative to Blast Furnaces (BF) iron making • With DRI, iron ore is reduced to metallic iron in the solid state which then has to be melted in an electric arc furnace, unlike the BF process where it redu
Slide 6: Opportunity for DR Concentrate at Red Dam
For personal use only OPPORTUNITY FOR DR CONCENTRATE AT RED DAM • DR Pellets are a niche, high value market, requiring high grade product > 68.5% Fe • Companies like BHP, RIO, FMG and Vale do not currently produce DR grade product • The Razorback Deposit product more suited for blast furnace market
Slide 7: Mawson Iron Project
For personal use only MAWSON IRON PROJECT • Existing infrastructure New map showing Infrastucture • Sheltered port site and projects / tenements • Available workforce • Supportive government • Large magnetite potential 6
Slide 8: Mawson Iron Project Land Holding
For personal use only MAWSON IRON PROJECT LAND HOLDING • Combined MGT and Lodestone landholding ~ 2947 km2 • > 200 km of strike length of magnetite–rich Braemar Iron Formation • Largest undeveloped magnetite province in the world • Major tenement holder in the region 7
Slide 9: Lodestone's Olary ~0.54 Billion Tonne JORC Resource
LODESTONE’S OLARY ~ 0.54 For personal use only BILLION TONNE JORC RESOURCE* • Red Dam is the area of focus, with high concentrate grades - 69 to 71% Fe and mass recovery at ~ 20% • Potential to extend Red Dam Resource to the west, with > 10 km strike length of Braemar Iron Formation in Lodestone Ten
Slide 10: Combined MGT / Lodestone JORC Resources - 4.5 Billion Tonnes
COMBINED MGT / For personal use only LODESTONE JORC RESOURCES - 4.5 BILLION TONNES • Razorback (MGT)1,3 • Ironback Hill (MGT)2,3 • OLARY + (~ 80 km NE of Razorback)4 1 ASX Announcement on 11th June, 2013, “ROYAL OPTIMISES RAZORBACK RESOURCE”. 2 ASX Announcement on 1st November, 2012, “RED DRAGON VEN
Slide 11: Olary (Red Dam) Mineralised Body
OLARY (RED DAM) MINERALISED BODY For personal use only • Mineralised body geometry suggests favourable mine to waste ratios, either as flat lying bodies or anticlinal hinge zones • Part of mineralisation close to surface, therefore possibly low mining pre-strip at early stage • High grade zones of ~
Slide 12: Olary Has High Quality Concentrates
For personal use only OLARY HAS HIGH QUALITY CONCENTRATES • Sighter metallurgical testwork confirms excellent DTR results, - high Fe and FeO, very low impurities • Discussions underway with DR steel makers in Middle East and North Africa • Further concentrate production, metallurgical studies and pe
Slide 13: Olary Will Test Many Concepts for Larger Scale Razorback Development
For personal use only OLARY WILL TEST MANY OF THE CONCEPTS ALREADY IN PLACE FOR THE LARGER SCALE RAZORBACK DEVELOPMENT Sustainable, low cost delivery chain configuration • Initial low to medium scale magnetite mining operation planned • Ultra high powder factor blasting • In-pit crushing and conveyi
Slide 14: Phase 1 - Olary Deposit Infrastructure
PHASE 1 - OLARY DEPOSIT INFRASTRUCTURE1 For personal use only • Uses a combination of existing rail and new slurry pipelines to transport magnetite • Development of low cost offshore port • Potential to connect to national power grid in NSW or self generation at Olary • Multiple water sources identi
Slide 15: How Does This Deposit Fit with the Mawson Iron Project Development?
For personal use only HOW DOES THIS DEPOSIT FIT WITH THE DEVELOPMENT OF THE MAWSON IRON PROJECT? 1. Phase 11 - Olary Project, low to medium scale magnetite operation, start-up option, using combination of rail and short distance slurry pipeline 2. Phase 22,3 – Razorback Project, large scale magnetit
Slide 16: Phase 1 - Path to Production
PHASE 1 - PATH TO PRODUCTION For personal use only • Olary - Planned next phase of work (next 6 months) 1. High resolution ground magnetic survey at Olary (Red Dam area) 2. Metallurgical drilling and testwork 3. Resource Upgrade 4. High level scoping work relating to processing, mining and infrastru
Slide 17: Target Markets for Olary Concentrate
For personal use only TARGET MARKETS FOR OLARY CONCENTRATE • Direct Reduction Pellet Feed – no real competition from big four – premium market • Blast Furnace Pellet Feed - Grade higher than average grade of pellet feed. Impurity levels much lower – replacement market • Sinter Blend component to ble
Slide 18: LOI / MOU Non-Binding Agreements for Sale and Purchase of Product
For personal use only MGT AND LODESTONE HAVE LOI / MOU NON BINDING AGREEMENTS FOR SALE AND PURCHASE OF PRODUCT 1. Sha Steel (Shagang) - 2 Mtpy (Announced to the ASX 27 March 2017) 2. Mitsubishi Corporation RtM Japan Ltd - 1 Mtpy (Announced to the ASX 16 March 2017) 3. Ningbo Iron and Steel Co Ltd –
Slide 19: Olary Fast Track
For personal use only OLARY FAST TRACK 1. Potential to produce Direct Reduction (DR) quality concentrate (~70% Fe), which commands significant price premium over 62% Fe Pilbara Fines 2. Previous studies / concepts derived by MGT applicable to Olary Project 3. Fast tracked - developed as a “curtain r
Slide 20: Magnetite Mines Limited
MAGNETITE MINES LIMITED Making Steel Stronger SOUTH