Slide 1: ASX release: Africa Down Under 2012 presentation
For personal use only ASX: EQX E | 299 August 20012 | ASX X RELEAS SE AFR RICA DO OWNUND DER 20112 PRES SENTATIION Equattorial Resourrces Limited (“Equatoriaal”) (ASX:EQ QX) is please ed to release e the attacheed presentattion to be givven by Equattorial Resourrces Limited''s Managing Director and
Slide 2: Developing Large Scale Iron Projects in the Republic of Congo
For personal use only DEVELOPING LARGE SCALE IRON PROJECTS IN THE REPUBLIC OF CONGO Africa Down Under Conference, Perth 29 August 2012
Slide 3: Disclaimer
DISCLAIMER For personal use only • This document should be read in conjunction with any public published material. compiled by Mr Mathew Cooper (B.App.Sc (Geophysics) announcements and reports (including financial reports and • The Company does not purport to give financial or investment Hons.) of R
Slide 4: Large Scale Iron Projects in Republic of Congo
LARGE SCALE IRON PROJECTS IN REPUBLIC OF CONGO For personal use only Exploring and developing two 100% owned iron projects Large footprints in key iron clusters in Africa Access to existing operational rail and port for Mayoko-Moussondji Massive regional potential at Badondo Experienced bo
Slide 5: Africa – An Iron Ore Future
AFRICA – AN IRON ORE FUTURE… For personal use only China is by far the dominant buyer of seaborne iron ore, importing over 650 million tonnes in 2011* (63% of total seaborne demand) More than 75% of China’s seaborne iron ore supply comes from Australia, Brazil and India* where it relies heavily o
Slide 6: Global Iron Ore Demand Could Triple by 2030
GLOBAL IRON ORE DEMAND COULD TRIPLE BY 2030 For personal use only Forecast Global Iron Ore Demand Source: Raw Materials Group 5
Slide 7: If World Demand Doubles by 2030, Where Could Extra Production Come From?
IF WORLD DEMAND DOUBLES BY 2030, WHERE COULD THE EXTRA PRODUCTION COME FROM? For personal use only Global Iron Ore Production U.S. Geological Survey, Mineral Commodity Summaries, January 2012 6
Slide 8: Central & West African Iron Ore: The Race to Production
CENTRAL & WEST AFRICAN IRON ORE THE RACE TO PRODUCTION For personal use only Massive Scale High Quality resources Coarse Grained Ore Bodies Low cost of production 7
Slide 9: The Infrastructure Reality
THE INFRASTRUCTURE REALITY For personal use only Currently only 5 producing iron ore mines amongst the many regional opportunities New iron production is only coming on stream where 2 conditions exist: • Ore bodies in close proximity to existing rail infrastructure; and • Presence of high grade, n
Slide 10: The Republic of Congo
THE REPUBLIC OF CONGO For personal use only BIENVENUE A BRAZZAVILLE! Stable “Oil Country” actively growing its mining sector Former French colony recently celebrated 50 years of independence Oil majors including Total, Eni and Chevron operating uninterrupted for over 30 years and currently inv
Slide 11: Mining in the Republic of Congo
MINING IN THE REPUBLIC OF CONGO For personal use only Major miners now invested in Republic of Congo Mining sector is central to the government’s Economic Diversification Program (Chemin d’Avenir) New mining code adopted in 2005 Favourable fiscal terms for miners • 3% Royalty on Revenues • 1
Slide 12: Mayoko-Moussondji Iron Project
MAYOKO-MOUSSONDJI IRON PROJECT For personal use only 11
Slide 13: Exploration
EXPLORATION For personal use only 35,000 metres of drilling Airborne geophysics and data modelling Extensive bulk sampling and met test work Addition of 2 new iron permits 12
Slide 14: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT For personal use only World class camp facilities Major airstrip refurbishment On-site sample prep laboratory installed Road construction and upgrade program 13
Slide 15: Supporting Community & Environment
SUPPORTING COMMUNITY & ENVIRONMENT For personal use only Employment of over 200 staff Graduate training programs - geology & business ESIA Baseline & Scoping Work complete Congo Mining Community Relations Committee 14
Slide 16: Equatorial and Exxaro
EQUATORIAL AND EXXARO For personal use only EQUATORIAL EXXARO MAYOKO- MAYOKO- PROJECT MOUSSONDJI LEKOUMOU Ownership 100% 92% Magnetic strike – 12km 6.5km main prospect Distance from rail 500m 2km Current JORC 121Mt at 45% Fe incl. Targeting H2 2012 resource 44Mt at 55% Exxaro Resources acquired Afri
Slide 17: Large Scale Project
LARGE SCALE PROJECT For personal use only Airborne geophysics identified over 46km of magnetic anomalies on 5 prospects Main prospect “Makengui” is 12km long, up to 2km wide and lies 500m from the railway line Geological model of enriched hematite caps overlaying extensive zones of magnetite BIF
Slide 18: Drilling Program
DRILLING PROGRAM For personal use only Ongoing 70,000m drilling program targeting high grade DSO and pDSO hematite 3 drill rigs on site with more than 35,000m of RC and diamond drilling completed on more than 300 holes DSO potential confirmed along 2.5km of strike with iron grades up to 61.7%
Slide 19: Geological Model Confirmed
GEOLOGICAL MODEL CONFIRMED For personal use only 18
Slide 20: Metallurgical Testing Program
METALLURGICAL TESTING PROGRAM For personal use only ORE TYPE TEST WORK PROGRESS DSO (Zone 1) Bulk samples and core Bulk samples collected, testing commenced pDSO (Zone 2) Bulk samples and core Bulk samples collected, testing commenced Bulk samples collected, initial tests completed Colluvium (Zone 3
Slide 21: Focus on Premium Iron Products
FOCUS ON PREMIUM IRON PRODUCTS For personal use only Metallurgical test program being managed by leading industry expert Dr John Clout Results to date are extremely encouraging and demonstrate potential for high quality premium iron products Promising metallurgical properties of Mayoko ore: •
Slide 22: Excellent Davis Tube Recovery Results
EXCELLENT DAVIS TUBE RECOVERY RESULTS For personal use only DTR testing carried out on samples of fresh Magnetite BIF from Makengui High quality magnetite concentrate produced with a very high mass recovery (50%) and coarse grind size (63 microns) DTR results superior to other regional and int
Slide 23: Colluvial Iron Mineralisation Test Work
COLLUVIAL IRON MINERALISATION TEST WORK For personal use only Colluvial material (DSO and pDSO) deposited over time on hill sides Samples collected from central part of Makengui Prospect for met testing Initial tests used wet screens and simple wet gravity separation Final flow sheet represe
Slide 24: Colluvial Iron Mineralisation Summary Bulk Sample Testing Results
COLLUVIAL IRON MINERALISATION SUMMARY BULK SAMPLE TESTING RESULTS For personal use only 23
Slide 25: Railway Access and Development
RAILWAY ACCESS AND DEVELOPMENT For personal use only Equatorial has a current agreement with rail authority (CFCO) allowing access to the railway line Framework in place for 25 year User Agreement Rail Engineering & Investment Study completed by R&H Railway Consultants for the operating parameter
Slide 26: Port of Pointe-Noire Access and Development
PORT OF POINTE-NOIRE ACCESS AND DEVELOPMENT For personal use only One of the largest ports in Central & West Africa Agreement signed with PAPN to cooperate on studies on the infrastructure required to export iron ore from the existing port Developing options at both Pointe-Indienne and the exi
Slide 27: Existing Port of Pointe-Noire
EXISTING PORT OF POINTE-NOIRE For personal use only 26
Slide 28: The Race to Production
THE RACE TO PRODUCTION For personal use only Near term DSO and pDSO production potential using existing rail and port infrastructure Metallurgical test results and maiden JORC resource expected H2 2012 Feasibility studies progressing under world class project management team Strong rationale
Slide 29: Badondo Iron Project
BADONDO IRON PROJECT For personal use only 28
Slide 30: Iron Mountains of the Northern Congo
IRON MOUNTAINS OF THE NORTHERN CONGO For personal use only 29
Slide 31: Regional Project Potential
REGIONAL PROJECT POTENTIAL For personal use only PROJECT COMPANY INFERRED & INDICATED OTHER INFORMATION RESOURCE Revised takeover offer by Hanlong Mbalam 775Mt @ 57% Fe Mining for A$1.4 Billion Strategic investment by Glencore Avima 580Mt @ 60% Fe and Severstal Exploration Target* of 1,300 – Badondo
Slide 32: Exploration
EXPLORATION For personal use only Historical field reconnaissance by BRGM led to the discovery of the Badondo deposit Airborne geophysics program completed over entire project area Over 22km of prospective iron strike identified within three distinct target prospects: • Badondo Prospect: 10km str
Slide 33: Drill Program
DRILL PROGRAM For personal use only Strategy: Low cost, highly efficient scout drill program completed within short time frame 30 diamond drill holes for approximately 5,000m Targeting high grade DSO iron mineralisation within hematite cap Hematite cap at least 50m thick in visible cliff exposu
Slide 34: High Grade Iron Confirmed from Initial Drill Results
HIGH GRADE IRON COFIRMED FROM INITIAL DRILL RESULTS For personal use only Initial drilling confirmed presence of high grade hematite cap Assay results from initial holes include 63% Fe over 42 metres from Hole 1 and 65% Fe over 40 meters from Hole 2 Low contaminant levels including 0.06% phosphor
Slide 35: Community and the Environment
COMMUNITY AND THE ENVIRONMENT For personal use only Environment • Mayoko-Moussondji ESIA being undertaken by combined team from SRK and Genivar team in accordance with Equator Principles • Scoping phase complete and Terms of Reference for full ESIA have been submitted to government • Permanent envi
Slide 36: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM For personal use only Ian Middlemas Chartered Accountant with over 20 years mining industry experience; extensive corporate and Chairman management expertise John Welborn Extensive corporate experience as a senior executive in finance and the natural resources industry Ma
Slide 37: Capital Structure
CAPITAL STRUCTURE For personal use only EQUATORIAL RESOURCES LTD (ASX: EQX) As at 24 August 2012 Current Issued Capital 117.2 million shares Fully Diluted 128.7 million shares Market Capitalisation (Undiluted @ A$2.01) A$235.6 million Cash A$75.0 million Top 20 Shareholders: 80.2% 16.1% 10.2% 6.7% D
Slide 38: The Equatorial Advantage
THE EQUATORIAL ADVANTAGE For personal use only Access to Existing Infrastructure Massive Scale of Projects High Quality Product Potential Well Funded Strong Rationale for Regional Cooperation AFRICA’S NEXT MAJOR IRON COMPANY 37
Slide 39: Contact details
For personal use only ASX: EQX www.equatorialresources.com.au AUSTRALIA: Level 2, BGC Centre 28 The Esplanade Perth WA 6000 Australia Tel: +61 8 9466 5030 Fax: +61 8 9466 5029 REPUBLIC OF CONGO: 03 Avenue de Loango, 2eme. Etage, Ndjindji, Arrondissement 1 EP Lumumba, Pointe-Noire Republic of Congo U