Slide 1: Marillana – A New Pilbara Landscape
For personal use only MARILLANA – A NEW PILBARA LANDSCAPE Australian Investor Presentation – March 2013 Russell Tipper, Chief Executive Officer, Brockman Mining Australia
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by and issued by Brockman Mining Limited (“Brockman” or “the Company”) to 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: Corporate Overview
Corporate Overview For personal use only • Resources company listed on the Hong Kong (Stock Code: 159) and Australian (Stock Code: BCK) Stock Exchanges • Focused on iron ore, copper and coking coal • Supported by a diverse shareholder base of international and Australian investors with Brockman dire
Slide 4: Capital Structure
Capital Structure For personal use only As at 5 March 2013 HK$:A$7.88 Shares on issue 7.89 billion Market capitalisation A$486 million 1 Cash on hand A$45 million 2 Enterprise value A$441 million Options on issue 0.36 billion 1. Share price HK $0.485 2. As at 31 December 2012 4
Slide 5: 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 in 2016 Mid term Advance the Australian exploration pipeline of hematite projects, from
Slide 6: Australian Iron Ore Portfolio
Australian Iron Ore Portfolio For personal use only 6
Slide 7: Iron Ore Development Pipeline
Iron Ore Development Pipeline For personal use only Pre Project Exploration Development Development West Pilbara Hub Ophthalmia Iron Ore Project Marillana Iron Ore Project (100%): (100%): (100%): • 21 granted or priority Total JORC compliant • JORC compliant Mineral applications covering over Minera
Slide 8: Resource Summary
Resource Summary (1) For personal use only RESOURCE SUMMARY Project Resource Grade Reserve Grade (tonnes) (%) (tonnes) (%) Marillana Detrital 1,528 42.6 1,001 42.4 CID 102 55.6 48 55.5 Ophthalmia (2) Coondiner DSO 108 58.3 - - Kalgan Creek DSO 52 59.1 - - Sirius 109 60.0 - - TOTAL 1,899 1,049 (1) Se
Slide 9: Marillana Iron Ore Project
Marillana Iron Ore Project For personal use only 9
Slide 10: Project Development
Project Development For personal use only KEY STATISTICS Mining 1.05 Bt Reserve (Proven: 133 Mt, (JORC) Probable: 916 Mt) Final 60.5–61.5% Fe product grade Mining • Conventional truck Operation and shovel • Free digging • Average Strip Ratio: 0.8 over life of mine Annual at least 18.5 Mtpa (wet) pro
Slide 11: Final Product and Sinter Performance
Final Product and Sinter Performance For personal use only FINAL PRODUCT GRADES 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 Pilbara iron
Slide 12: Funding Options
Funding Options For personal use only • Engaged with interested parties targeting a joint-venture funding arrangement to fund project equity and facilitate debt funding • 30–40% joint venture interest available and 30–100% project off-take available • Vendor financing considered for camp, power stat
Slide 13: Marillana Iron Ore Project – Mine
Marillana Iron Ore Project – Mine For personal use only MINE STATUS 2010 DFS confirmed Marillana Project is financially robust and long life 2011 FEED completed and including further engineering and optimisation studies 2012 Native Title agreements and key environmental approvals finalised and appro
Slide 14: 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 14
Slide 15: Marillana Infrastructure Development
Marillana Infrastructure Development For personal use only 15
Slide 16: Independent Rail Infrastructure
Independent Rail Infrastructure For personal use only INDEPENDENT RAIL OPTION STATUS 2012 Environmental studies underway and land access agreements in place 2012 Brockman confirms independent rail option with Aurizon and Atlas as the preferred option 2013 Aurizon State Agreement negotiations with WA
Slide 17: Port Infrastructure
Port Infrastructure For personal use only PORT INFRASTRUCTURE STATUS 2008 North West Infrastructure (NWI) established joint venture company : Brockman Mining Limited (37%); Atlas Iron Limited (39%); FerrAus Limited* (24%) * FerrAus Limited is a wholly-owned subsidiary of Atlas Iron 2009 NWI granted
Slide 18: Investment Scope
For personal use only Investment Scope 18
Slide 19: Strategic Advantages
Strategic Advantages For personal use only • Large scale, financially robust, long life project with a high quality final product • Foundation shareholder in NWI, securing port capacity allocation • Board and management team with strong depth of mining and iron ore experience • Future highly prospec
Slide 20: Significant Margin Potential
Significant Margin Potential Cost of production vs. J.P. Morgan long term iron ore price forecast For personal use only Source: JP Morgan 2012 20
Slide 21: 2013 Milestones
2013 Milestones For personal use only Secure infrastructure • Complete Prefeasibility Study for development of integrated rail and port in the East Pilbara • Secure Port Lease at South West Creek in Port Hedland Secure funding partners • Execute MOU with preferred Joint Venture partner • Commence De
Slide 22: Appendix: Resource and Reserve Summaries
For personal use only Appendix 1 Resource and Reserve Summaries 22
Slide 23: Marillana Mineral Resource Summary
Marillana Iron Ore Project Mineral Resource Summary For personal use only BENEFICIATION FEED (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 Total Measured 173 4
Slide 24: Marillana DSO Mineral Resource Summary
Marillana Iron Ore Project DSO 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
Slide 25: 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 Mt Fe CaFe* Sio2 AI2O3 P LOI classification (%) (%) (%) (%) (%) (%) Probable 48
Slide 26: Ophthalmia DSO Mineral Resource Summary
Ophthalmia Iron Ore Project DSO Mineral Resource Summary For personal use only OPHTHALMIA DSO (Cut-off grade: 54% Fe) Tonnes Fe CaFe* SiO2 Al2O3 S P LOI Deposit Class (Mt) (%) (%) (%) (%) (%) (%) (%) Coondiner Indicated 64.3 58.00 61.55 5.79 4.40 0.009 0.17 5.77 (Pallas and Castor) Inferred 43.7 58.
Slide 27: Competent Person’s Statement
Competent Person’s Statement For personal use only The information in this presentation that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr I Cooper, Mr J Farrell and Mr A Zhang. The Ore Reserves statement has been compiled in accordance with the guidelines defi
Slide 28: Appendix: Background Slides
For personal use only Appendix 2 Background Slides 28
Slide 29: Pre Development – Ophthalmia (100%)
Pre Development – Ophthalmia (100%) For personal use only • Potentially as significant as Marillana Project with bedded hematite mineralisation (DSO) discovered 15–30 km north of Newman • Deposits at Coondiner (Pallas and Castor), Kalgan Creek and Sirius • Mineralisation is hosted by the Boolgeeda I
Slide 30: Damajianshan Copper Mine
Damajianshan Copper Mine Brockman holds a 90% interest in For personal use only Luchun Xintai, which owns 100% of the Damajianshan Copper Mine, approximately 700 km from Kunming Mining rights cover 3.67 km2 Contains JORC Mineral Reserve of over 7.5 Mt of ore, grading 1.46% Cu Current mine li
Slide 31: Damajianshan Resources
Damajianshan Resources For personal use only Reserve Ore Tonnage (tonnes) Cu Grading (%) Cu Metal (tonnes) Classification Proved 4,404,000 1.49 65,600 Probable 3,150,000 1.42 44,700 Total 7,554,000 1.46 110,300 Resource Ore Tonnage (tonnes) Cu Grading (%) Cu Metal (tonnes) Classification Measured 4,
Slide 32: Competent Person’s Statement
Competent Person’s Statement For personal use only The information in the Report that relates to Exploration Results, Mineral Resources or Ore Reserves in relation to the Damajianshan Mine has been reviewed by Mr. Christopher Arndt who is a self employed consultant to the Company. Mr Arndt is a Fell
Slide 33: 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 33