Iron Road Ltd · ASX:IRD
Iron Road — 11th SA Exploration and Mining Conference (December 2014)
18 slides from Iron Road's conference presentation, Dec 5, 2014
Slide 1: Central Eyre Iron Project: Beyond the Definitive Feasibility Study
Central Eyre Iron Project Beyond the Definitive Feasibility Study www.ironroadlimited.com.au Larry Ingle, General Manager 11th SA Exploration and Mining Conference 5th December 2014
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, r
Slide 3: Cautionary Statements
Cautionary Statements Modelling based upon 25 year mine life, consisting of: • Initial 17 years using Proven and Probable Mining Reserve of 2,071Mt @ 15.5% iron (200x100m, 100x50m diamond drill spacing). • Further eight years using 28% Measured, 24% Indicated and 48% Inferred Resources of 1,303Mt @
Slide 4: CEIP Snapshot
CEIP Snapshot • Magnetite project with three components – mine and integrated logistics chain comprising rail & port development. • Production of 21.5Mtpa premium iron concentrate ~67% Fe & ~ -125µm (p80). • Coarse-grained iron concentrate to be marketed as high quality sinter blend stock. • Mineral
Slide 5: CEIP Components
CEIP Components Mine • Two pits, largest 6.5km long, 1.2km wide. • Includes beneficiation plant, integrated waste landform & rail loadout. Infrastructure Corridor • Single corridor- 148km heavy rail, service road, power line & water pipeline. • Multi-user. Port • Twin capesize berths, no dredging, 7
Slide 6: DFS Project Metrics
DFS Project Metrics Mine Life 25+ years Project IRR Capital Cost Capital Intensity Operating Cost (per Annual Tonne) (FOB) /t 21% US$3.98B US$185 US$44.33 Ungeared, post-tax 6 * see Appendix 3 for key financial assumptions
Slide 7: Innovation using Proven Technologies
Innovation using Proven Technologies In-Pit Crushing & Conveying (IPCC) • Mine purpose designed for IPCC, semi-mobile crushers in pit. • Trucks deliver both ore & waste to crushers, conveyed to surface. High Density Modularisation (Beneficiation Plant) • Modules wet commissioned in construction yard
Slide 8: Post-DFS Work
Post-DFS Work Mining • IPCC with mobile crushers- shovel / loader direct tip into crusher- from diesel surplus electrical energy, long term contract. • Thiess-RWE JV pit re-optimisation taking into account expanded Mineral Resource Estimate & Mineral Reserve. Beneficiation • Inclusion of regrind
Slide 9: Transition to Optimised Mining Method
Transition to Optimised Mining Method Traditional load & haul IPCC IPCC Semi-mobile crushers Mobile crushers 93 x 350t trucks 32 x 350t trucks 12 x 350t trucks (est.) 800kL diesel (pd) 150kL diesel (pd) 50kL diesel (pd) 1150 employees 350 employees 250 employees (est.) CAPEX US$1350 CAPEX US$480 CAP
Slide 10: Beneficiation Comparison
Beneficiation Comparison Scenario 1 Scenario 2 DFS Current Optimisation Study 21.5Mtpa pellet feed 21.5Mtpa Pellet Feed 21.5Mtpa Sinter Feed 24Mtpa Sinter Feed Fine grind Fine grind Coarse grind Coarse grind p80 < -40µm p80 < -40µm p80 < -125µm p80 < -120µm with gravity circuit with gravity circuit
Slide 11: Stage IX Drilling
Stage IX Drilling Section 11 560540E
Slide 12: Stage IX Drilling
Stage IX Drilling 200m Lso0m Lsoom Scale 200m 200 Metres [Gi Mineral Resource (OFS) Mineralised Envelope (Stage IX Driling) Significant intersection (240m and >8% Fe) DFS Pit Shell with Stage IX Driling (November 2014) Cross - Section 560540E Looking West Stage IX Drilling IRD526 /IRD523 A 762m @ 14
Slide 13: Collaborative Research – PhD Project
Collaborative Research – PhD Project Influence of crustal architecture and reworking on iron formations of the southern Gawler Craton - Kathleen Lane PRICE METASEDIMENTS Current understanding of ~730Ma geological age Previous understanding of geological age 13
Slide 14: Collaborative Research
Collaborative Research “Age constraints on the timing of iron ore mineralisation in the southeastern Gawler Craton” Warramboo K. Lane, L. Jagodzinski, R. Dutch, A. Reid, M. Hand. Magnetite Gneiss Australian Journal of Earth Sciences (in prep.) Price Metasediments 14
Slide 15: Thank-you
Visit us at Table 17 in the Expo Area Thank-you • Geology is driving the approach to mining • Mineralogy is driving the approach to metallurgy 15 • Opportunity is driving the approach to engineering the project
Slide 16: Appendix 1 – CEIP Resource Statement & Indicative Concentrate Specifications
Appendix 1 – CEIP Resource Statement & Indicative Concentrate Specifications CEIP Global Mineral Resource Tonnes Fe SiO2 Al2O3 P Location Classification (Mt) (%) (%) (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 Murphy South/Rob Roy Indicated 474 15.6 53.7 12.8 0.08 Inferred 667 16 53 12 0.08 Boo Lo
Slide 17: Appendix 2 – CEIP Reserve Statement
Appendix 2 – CEIP Reserve Statement CEIP Global Mineral Reserve Tonnes Fe Location Classification (Mt) (%) Proved 1,871 15.6 Murphy South/Rob Roy Probable 200 15.1 Total 2,071 15.5 The information in this report that relates to Reserves estimated for Murphy South / Rob Roy (MSRR) is based on and fai
Slide 18: Appendix 3 – Key DFS Financial Assumptions
Appendix 3 – Key DFS Financial Assumptions Key Financial Assumptions (real 2013 terms) Capital cost estimate (incl. contingencies) US$3.98 billion Pre-stripping and preparatory mining works US$0.48 billion Capital intensity US$185 per annual tonne FOB operating cost (ex state royalty) US$44.33/dmt (
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