Slide 1: Strike Resources: High-Quality Iron Ore in Peru
For personal use only STRIKE RESOURCES HIGH-QUALITY IRON ORE IN PERU ASX CODE: SRK September 2012
Slide 2: Disclaimer
For personal use only DISCLAIMER This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production levels or rates, prices, reserves and resources or potential growth of Strike Resources, industry growth or other t
Slide 3: Strike Resources: Australian-listed resources company
For personal use only STRIKE RESOURCES Australian-listed resources company • Large-scale iron ore projects in Apurimac and Cusco regions of southern Perú • Seeking to establish 15-20 Mtpa business • Apurimac Project in pre-feasibility study stage • Current iron ore mineral resources totalling 374Mt*
Slide 4: Corporate Information Summary
For personal use only C O R P O R AT E I N F O R M AT I O N S U M M A RY ASX CODE: SRK • Capital structure: 0.36 Average Strike Resources - Ordinary, fully paid shares 142M 62% Iron Ore Fines (Tianjin Port) 0.30 - Unlisted options 10.25M • Cash Position: (August 2012) A$19.5M 0.24 TOP SHAREHOLDERS 0
Slide 5: Foundations Established for Strong Sustainable Growth
For personal use only F O U N D AT I O N S E S TA B L I S H E D F O R S T R O N G S U S TA I N A B L E G R O W T H Outcomes 2011/12 Objectives Complete - resignation of 3 “aligned” directors and appointment of independent BUSINESS #5 Establish sound Strong technical and commercial team business
Slide 6: Peru - Apurimac Iron Ore Project
For personal use only PERU - APURIMAC IRON ORE PROJECT Peru – The Last Decade • Free-trade agreement with the USA • Competitive labor and tax rates Pictures here. • Stable investment environment • Greater than 6% p.a. GDP growth 2011 Elections • President Humala forms government - macro-economic set
Slide 7: Apurimac - Opaban Iron Ore Deposits
For personal use only A P U R I M A C – O PA B A N I R O N O R E D E P O S I T S Bouguer Gravity Opaban 1 Anomaly Current resources of 269Mt at 57.3% Fe* Target of 300 – 350Mt at 57 – 58% Fe+ Pictures here. Current resources: Opaban 3 • Continuous broad zones • Dominantly high-grade, coarse-grained
Slide 8: Opaban - Excellent Metallurgical Properties
For personal use only O PA B A N - E X C E L L E N T M E TA L L U R G I C A L P R O P E R T I E S DTR Mass Recovery • Coarse particle liberation size (250 microns vs 30 – 40 microns) 60 ‐70% 80% • 60 - 70% mass recovery (vs 35 Pictures – 50%) here. 60% Opaban 39% 25% 30% Project 1 • Excellent produc
Slide 9: Pre-Feasibility Indicates Attractive Project Economics
For personal use only 2 0 0 8 P R E - F E A S B I L I T Y I N D I C AT E D AT T R A C T I V E PROJECT ECONOMICS Initial Pre-feasibility key parameters and results • 27Mtpa mining operation at S/R of <2:1 for 20Mtpa product • High grade product >66% Fe with low impurities • Slurry pipeline to coast f
Slide 10: Excellent Iron and Copper/Gold Potential
EXCELLENT IRON & AND COPPER/GOLD POTENTIAL For personal use only • APURIMAC IRON ORE AF APURIMAC • 590 km2 of concessions PROJECT • Sillaccassa target drill ready CUERVO • Targets identified and exploration planned Las Bambas (Xstrata), • CUSCO IRON ORE AND Cu/Au 1.13Bt @ 0.77%Cu Pictures here. 1.13
Slide 11: Cuervo Transaction - An Option on Additional Fe Resources
For personal use only CUERVO TRANSACTION – AN OPTION ON ADDITIONAL Fe RESOURCES Option to acquire up to 49% of Cuervo* Stage 1: 32.5% (undiluted) for C$5.25M - program underway Stage 2: Further 16.7% (49.2% undiluted) for C$9.75M at SRK’s option Pictures here. Current Resources of 178Mt @ 48% Fe Orc
Slide 12: Cuervo - Bob1 Drilling
For personal use only CUERVO – BOB1 DRILLING Broad zones of magnetite in all holes to date Fe SiO2 S P Mn Cu Hole From Length (%) (%) (%) (%) (%) (%) BDH12-01 86.20m 133.00m 49.6 14.4 2.36 0.09 0.14 0.11 BDH12-02 12.35m 182.15m 39.6 23.2 2.30 0.08 0.16 0.10 Pictures here. BDH12-03 19.20m 156.00m 40.
Slide 13: Community Approvals - Positive & Improving
For personal use only C O M M U N I T Y A P P R O VA L S – P O S I T I V E & I M P R O V I N G Patience and trust building required, especially following previous AF “disappearance” Colcabamba “pilot” successful along with innovative Camposol visits and expertise Established “AF Information Of
Slide 14: Apurimac Ferrum - September 2012
APURIMAC FERRUM – For personal use only SEPTEMBER 2012 Status Quo pathway No D&C Top-up for AF or IAC 2009 JUNE 2011 JUNE 2012 D&C 25% SRK 75% D&C Top-up of AF 2009 Settlement or IAC Agreement After IAC Transaction IAC No D&C Top-up for AF 12% D&C D&C SRK 44% SRK 50% 50% D&C SRK 44% 56% 32% D&C SRK
Slide 15: Apurimac Ferrum - Shoot-out
APURIMAC FERRUM – “Shoot-out” For personal use only SRK gives Shoot- SRK prices bid Process out advice March 2012 May 2012 June 2012 August 2012 October 2012 D&C receives approx. US$3.3M SRK 100% Outcomes D&C pays SRK D&C 44% SRK 56% D&C SRK 50% 50% US $1.9m for 6% AF D&C 100% SRK receives * Strike
Slide 16: Highlights - SRK Value & Growth
HIGHLIGHTS – SRK VALUE & GROWTH For personal use only Board and management restructured Focused; Apurimac & Cusco Iron Ore Projects in Peru Consolidation strategy to secure >500Mt resources underway: • Moved to at least 50% of Apurimac Ferrum (AF) • “Shoot-out” of AF in October 2012 • Option t
Slide 17: Thank You
For personal use only STRIKE RESOURCES Limited THANK YOU ASX: SRK www.strikeresources.com.au 17
Slide 18: Overview of 'Shoot-out' Process
For personal use only O V E R V I E W O F ‘ S H O O T- O U T ’ P R O C E S S Background • In July 2009, Strike entered into a settlement agreement with the other shareholders of Apurimac Ferrum S.A. (AF) whereby Strike has the right to make an offer for all the shares in AF that it does not already
Slide 19: Appendix - JORC Code Information
Appendix – JORC Code Information For personal use only Resource Breakdown AF Projects Project Classification Tonnes (Mt) Head Fe (%) Inferred 127.2 56.7 Apurimac Indicated 142 58 Cusco Inferred 104.4 32.6 The 68Mt DSO component of the Apurimac resource is comprised of a 27Mt inferred resource at 61.
Slide 20: Appendix - JORC Code Information (cont'd)
For personal use only Appendix – JORC Code Information Resource Breakdown (cont’d) Cerro Ccopane Project (Cuervo Resources, Inc) The resource estimate for Cuervo’s Orcopura prospect stands at 19.7 Mt at 48.3% Fe (measured resource), 35.9 Mt at 45.9% Fe (indicated resource) and 50.8 Mt at 43.7% (infe