Iron Road Ltd · ASX:IRD
Iron Road — 5th Annual Mining South Australia Conference 2011
23 slides from Iron Road's conference presentation, Dec 7, 2011
Slide 1: 5th Annual Mining South Australia Conference
5th Annual Mining South Australia Conference 6-7 December 2011
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward looking statements concerning the projects owned by Iron Road Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific ass
Slide 3: Who is Iron Road?
Who is Iron Road? • A mid-tier iron ore project developer (~$100M market cap) • Focused on Central Eyre Iron Project (CEIP) – Prefeasibility Study indicates a robust 12.4Mtpa project is viable, with base case NPV $1.1 billion – Competitive capital and operating costs – Favourable export infrastructu
Slide 4: Central Eyre Iron Project Overview
Central Eyre Iron Project Overview • Centrally located on Eyre Peninsula, SA • Favourable geographic, climatic location • Supportive state and local governments • Good relationships with local communities • Large scalable magnetite project, with low variability • Growing resource – 1.3 billion tonne
Slide 5: Magnetite Iron Ore
Magnetite Iron Ore Globally, half of iron ore production from magnetite ores Iron Ore Prices • Global switch to spot / short term – Industry in Australia dominated by Pilbara pricing over annual benchmark haematite DSO operations • Prices have remained strong since 2010, dip seen in previous quarter
Slide 6: CEIP Prefeasibility Study Outcomes
CEIP Prefeasibility Study Outcomes Substantial 12.4Mtpa iron product operation outlined PFS Result by Numbers Significant competitive advantages • Coarse grind size (-106 micron) Capex – direct A$1,744M o reduced power use, lower operating costs Capex – indirect A$517M • Blast furnace feed (sinter)
Slide 7: Simple Processing
Simple Processing 67.6Mtpa MURPHY SOUTH DEPOSIT ROM Ore P80~ 30 mm Mass 100% Crushing Fe: 16.8% SiO2: 53.0% Cleaner W-LIMS HPGR Tails Mass 43% DRY WET Rougher W-LIMS P80~106 m P80~8 mm 61% Fe: 24% Concentrate SiO2: 47 % 12.4Mtpa Iron content increased Tails Mass 18% Mass 39% Fe: 67% from 16.8% to 6
Slide 8: Benchmarking Concentrate Grade
Benchmarking Concentrate Grade 72 GIR-Yerecoin EMG-Beyondie VMC-Yalgoo Concentrate Grade - % iron 70 ARH-Balmoral IRD-CEIP (40 micron) AGO-Ridley IRD-CEIP (53 micron) IRD-CEIP (75 micron) GRR-Southdown 68 GBG-Karara CXM-Bungalow CXM-Fusion IRD-CEIP (106 micron) ACS-Magnetite Range CXM-Carrow 66 CFE-
Slide 9: Adding Value Through Resource Growth
Adding Value Through Resource Growth 3,000 Near Term 2,756 2,811 2,687 Target 2,597 • Base case incorporates maiden 2,478 Murphy South Mineral Resource. 2,304 2,090 • NPV - $ millions Murphy South Mineral Resource is now 1.0Bt. 2,000 1,808 • Resource modelling underway on Base 1,399 Murphy South (we
Slide 10: Iron Road's Journey
Iron Road’s Journey ASX IPO First drilling at CEIP – First Met Test Work Stage II drilling Maiden Resource • June 2008 Stage I • January 2009 • February 2009 - June • Boo-Loo • $0.20 per share • September 2008 • High quality concentrate 2009 • 110Mt @ 19.4% Fe confirmed Global Exploration Stage III
Slide 11: Iron Road's Approach
Iron Road’s Approach Successful iron ore developers succeed in one of two ways: • BOTH methods require a consistent, • BUILD AND PRODUCE, potentially with partner quality driven approach – Atlas, Fortescue, Mt Gibson, Gindalbie (soon) • Substandard preparatory work will not • DEVELOP AND SELL attrac
Slide 12: Community Engagement
Community Engagement • We believe that being part of a community is an important part of business • Major Sponsor and supporter of local community events since 2009 • Toll free contact number and extensive community programme in place • Fulltime presence on the Eyre Peninsula. • Community will remai
Slide 13: Community Engagement
Community Engagement 13
Slide 14: Hambidge
Hambidge • Completed four widely spaced traverses –12 diamond holes and 5,388m of drilling. • The magnetic anomaly targeted at Hambidge is over 3km in length and over 1km wide. • Several drill holes intersected continuous magnetite gneiss of up to 200m apparent thickness. • An exploration target to
Slide 15: Gawler Iron Project
Gawler Iron Project • Stage I RC drilling completed 2010 • Current Stage II diamond drilling programme tests five known iron ore prospects and one new target. • Comprises 26 diamond drill holes for 3,000m with holes up to 200m depth. • Pilot metallurgical study completed 2010 indicates excellent ben
Slide 16: Gawler Iron Project
Gawler Iron Project 16
Slide 17: Summary
Summary • Near term value enhancing events: "In the case of iron ore, – Murphy South western resource modelling we expect that over the underway. next eight years, global – Project development partner discussions supply additions need to commenced, active engagement with a number be at the rate of a
Slide 18: On the Road to Production
On the Road to Production Subscribe to alerts online www.ironroadlimited.com.au
Slide 19: Appendices
lron Road limited Appendices
Slide 20: Appendix 2a – CEIP Resource Statement
Appendix 2a – CEIP Resource Statement Murphy South Mineral Resource Estimate Resource Tonnes Fe SiO2 Al2O3 P LOI Oxidation Material Type Classification (Mt) (%) (%) (%) (%) (%) Disseminated 272 17.7 52.5 12.0 0.09 0.3 Fresh Banded 79 13.3 54.7 14.1 0.07 0.5 Inferred Transitional Disseminated and 27
Slide 21: Appendix 2b – CEIP Resource Statement
Appendix 2b – CEIP Resource Statement Boo-Loo Mineral Resource Estimate Resource Tonnes Fe SiO2 Al2O3 P LOI Oxidation Classification (Mt) (%) (%) (%) (%) (%) Fresh 277 17.3 52.5 11.5 0.095 0.5 Inferred Transitional 13 17.0 52.4 11.6 0.094 10.7 Oxide 38 17.2 52.1 11.6 0.094 10.8 Total 328 17.3 52.4 1
Slide 22: Appendix 2c – CEIP Resource Statement
Appendix 2c – CEIP Resource Statement Central Eyre Iron Project Global Mineral Resource Estimate Tonnes Fe SiO2 Al2O3 P LOI Location Classification (Mt) (%) (%) (%) (%) (%) Murphy South Indicated 585 16.7 52.9 12.6 0.09 0.3 Inferred 421 16.6 52.6 12.7 0.08 1.2 Boo-Loo Inferred 328 17.3 52.4 11.5 0.0
Slide 23: Appendix 3 – Capital Cost Estimate
Appendix 3 – Capital Cost Estimate Estimated Estimated Estimated A$ Direct Costs Indirect Costs Contingency A$ Millions A$ Millions Millions Crushing circuit 244.1 Field indirect – 12.0% 209.3 Direct and indirect – 15% 337.8 Fine grind & mag sep 152.4 EPCM – 8.0% 139.5 Milling area & 294.1 Vendor re
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