Equatorial Resources Limited · ASX:EQX
Equatorial Resources — Africa Downunder Conference 2011
23 slides from Equatorial Resources's conference presentation, Sep 1, 2011
Slide 1: Africa's next major iron company
Africa’s next major iron company For personal use only Large Scale Iron Projects in the Republic of Congo ASX: EQX Af i Downunder Africa D d Conference C f – August/September A t/S t b 2011
Slide 2: Disclaimer Important Notice
DISCLAIMER Important Notice For personal use only • This document should be read in conjunction with any public announcements and • 3D and 2D modelling of new aeromagnetic survey data over the Company’s Mayoko‐ reports (including financial reports and disclosure documents) released by Equatorial Mou
Slide 3: Large Scale Iron Projects in the Republic of Congo
For personal use only LARGE SCALE IRON PROJECTS IN THE REPUBLIC OF CONGO 3.6 – 6.1 BILLION tonne Iron Exploration Target* across two 100% owned projects Access to existing operational rail and port A$82M¹ in cash and securities Extensive drilling campaign commenced Board and management g w
Slide 4: Rapid Progress Since Last Year
For personal use only RAPID PROGRESS SINCE LAST YEAR LAST YEAR’S ADU CONFERENCE TODAY Acquired 100% of two projects in June 2010 Multi‐billion tonne iron exploration targets* across both projects Limited geological information More than 120 staff globally and office No corporate presence in ROC loca
Slide 5: Central & West African Iron Ore: Globally Significant Undeveloped Iron Ore Region
For personal use only CENTRAL & WEST AFRICAN IRON ORE: Globally Significant Undeveloped Iron Ore Region Massive Scale High Quality resources Coarse C G Grained i d Ore O BBodies di Low cost of production 5
Slide 6: The Race to Production
For personal use only THE RACE TO PRODUCTION… Potential supply pipeline of >500mtpa by 2020 (up to 25% of global supply)* Alternative source of supply for global steel manufactures Transport infrastructure the key to unlocking value *“Iron Ore Supply Outlook, Macquarie Bank, 5 May 2011 6
Slide 7: Mining in the Republic of Congo
For personal use only MINING IN THE REPUBLIC OF CONGO Active development of strong mining industry Economic E i diversification di ifi ti away from f dependence on oil New mining code adopted in 2005 Favourable fiscal terms for miners • 3% Royalty on Revenues • 10% government participation on
Slide 8: Mayoko-Moussondji Iron Project
For personal use only MAYOKO‐MOUSSONDJI IRON PROJECT 8
Slide 9: 2.3-3.9 Billion Tonnes Exploration Target at 30-65% Fe
For personal use only 2.3–3.9 BILLION TONNES EXPLORATION TARGET* at 30 30‐65% 65% Fe 46km STRIKE LENGTH of magnetic anomalies prospective for iron mineralisation Hematite Rock sample assays returned iron grades as high as 61.7% Fe at surface with low contaminants 2.3 ‐ 3.9 BILLION TONNES* expl
Slide 10: Hematite Cap: Potential for Direct Shipping Ore
HEMATITE CAP: POTENTIAL FOR DIRECT For personal use only SHIPPING ORE 10
Slide 11: Hematite Cap: Potential for Direct Shipping Ore
HEMATITE CAP: POTENTIAL FOR DIRECT For personal use only SHIPPING ORE Drill program designed to delineate high grade direct shipping ore (“DSO”) Drilling currently focused at Makengui anomaly l Makengui is 12km long, up to 2km wide and is located only 500m from bulk commodity railway line Make
Slide 12: Drill Program Underway
For personal use only DRILL PROGRAM UNDERWAY Two drilling contractors currently operating three rigs for a total contracted program of ~ 70,000m Focus of drilling is the hematite cap at Makengui Initial drilling results expected late September 2011 Aimingg for maiden JORC‐compliant p hematit
Slide 13: Initial Drilling Has Confirmed Our Geological Model
For personal use only INITIAL DRILLING HAS CONFIRMED OUR GEOLOGICAL G O OG C MODELO Oxidised hematite cap at M k Makengui i up to t 80m 80 thi thickk overlaying fresh BIF Oxide cap extends at least 800m along Makengui and is open to the northeast and southwest along strike 13
Slide 14: Assay Results Due Late September 2011
For personal use only ASSAY RESULTS DUE LATE SEPTEMBER 2011 Oxide Hematite Cap p at Makengui g Magnetite BIF at Makengui First batch of diamond drill core samples p is beingg processed p at SGS Mineral Services (“SGS”) laboratory in Johannesburg, South Africa SGS to procure and run an onsite sam
Slide 15: Project Development
For personal use only PROJECT DEVELOPMENT More than 100 workers currently on site: ‐ Drilling Contractors & Support Staff ‐ Construction Crew ‐ Infrastructure Project Team ‐ Geological Staff Fully developed camp capable of supporting 30 expatriate staff Fl Fleet off heavy h equipment i current
Slide 16: Railway Access and Development
For personal use only RAILWAY ACCESS AND DEVELOPMENT Heavy Haulage Railway capable of 10Mtpa currently being used only for a weekly passenger service Agreement signed with Le Chemin de Fer Congo Ocean (CFCO) granting Equatorial immediate access to the railway line Rail Engineering & Investment
Slide 17: Port Infrastructure
For personal use only PORT INFRASTRUCTURE Port of Pointe‐Noire is one of the largest ports in Central & West Africa Currently capable of handling Panamax sized vessels Equatorial has signed an agreement with the Port of Pointe‐Noire to cooperate on studies and implement the infrastructure requ
Slide 18: Pathway to Production
For personal use only PATHWAY TO PRODUCTION Airborne Scoping Study geophysics Drilling Targeted Geological mapping Detailed commencement of Surface sampling p g metallurgical g work mine development p Rail & Port Commence capex & commissioning assessment upgrades Exploration Target Complete ESIA Dri
Slide 19: Badondo Iron Project
BADONDO IRON PROJECT For personal use only Keyy position p in emerging g g iron region g 1.3 – 2.2 BILLION TONNES* exploration target of iron mineralisation (grade 30% ‐ 65% Fe), of which: • 200 to 300 MILLION TONNES* of enriched “hematite cap” potential estimated at a ggrade of 40% ‐ 65% Fe *Expl
Slide 20: Badondo Iron Project: Project Development Plans
For personal use only BADONDO IRON PROJECT PROJECT DEVELOPMENT PLANS Current Work Program • Geological g mapping pp g and sampling p g • Preparation of helicopter landing zones • Preparation for drill program Drill Program g 2011 • Drill rig under construction for initial helicopter‐supported dr
Slide 21: EQX: Unique Development Potential and Value Drivers
For personal use only EQX: UNIQUE DEVELOPMENT POTENTIAL AND VALUE DRIVERS SHORT TERM POTENTIAL LONG TERM POTENTIAL High value DSO production based on High volume, low cost globally existing infrastructure significant supply Significant cash generation generation, low capex Xstrata, Sundance Xstrata
Slide 22: Africa's Next Major Iron Company
Africa’s Next Major Iron Company For personal use only EQUATORIAL RESOURCES LTD (ASX: EQX) 31 August 2011 Fully Paid Ordinary Shares 113.0 million Unlisted Options (Various Expiry and Exercise Prices) 11.2 million Vendor Milestone Shares (100Mt JORC Mineral Resource) 2.0 million Market Capitalizatio
Slide 23: For personal use only
For personal use only ASX: EQX www.equatorialresources.com.au AUSTRALIA: Level 9, BGC Centre 28 The Esplanade Perth WA 6000 Australia Tel: +61 8 9322 6322 Fax: +61 8 9322 6558 REPUBLIC OF CONGO 03 Avenue de Loango, 2eme. Etage, Ndjindji, Arrondissement 1 EP Lumumba,, Pointe‐Noire Republic of Congo U
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