Nordic Iron Ore Ab · OMXSTO:NIO

Nordic Iron Ore Ab — Technical Presentation (November 2019)

16 slides from Nordic Iron Ore Ab's technical presentation, Nov 12, 2019

  1. Slide 1: Väsman project Conceptual study results

    1 Väsman project Conceptual study results Presenter: SRK UK – 12 November 2019 Location: Virtual © SRK Consulting (UK) Ltd 2019. All rights reserved.

  2. Slide 2: Introduction to the Väsman project

    Introduction to the Väsman project 2 • The Väsman project is located 220 km west-northwest of Stockholm, close to the town of Ludvika. • The project is part of the Ludvika Iron Ore Project, which also comprises the historic iron mines and deposits of Blötberget (situated approximately 3km south – we

  3. Slide 3: Geotechnical evaluation - Level Spacing

    Geotechnical evaluation - Level Spacing 3 • Pillar requirements are for stability in top-down Long Väsman South Lyviksberget Hole Open stoping which is the proposed method of From To Level spacing From To Level spacing Comments extraction below the Väsman Lake. mRL m mRL m • Transverse stoping is pr

  4. Slide 4: Transverse Stopes and Mining Method Assumptions

    Transverse Stopes and Mining Method Assumptions 4 • The proposed mining method is Sub Level Open Stoping (SLOS) without backfill. • Transverse stopes dimensions are: 20/25/30m high by 28m wide and between 15m to 60m long (Hanging wall to Footwall) • The pillars for the Väsman zone are the same dimen

  5. Slide 5: Longitudinal Stope and Pillar Design (Lyviksberget and Finnaset)

    Longitudinal Stope and Pillar Design ( Lyviksberget and Finnaset) 5 • Longitudinal stopes are 30m high x 30m Väsman Mining Sequence Schematics long and between 3 and 15m wide Sill Pillar • Rib pillars are 10m wide Rib Pillar Rib Pillar • Sill pillars are 7.5m high 37.5 Development Sill Pillar Rib Pi

  6. Slide 6: Access Option – Base case – Option 1

    Access Option – Base case – Option 1 6 Base case – Single conveyor decline access from Blötberget to Väsman Plan view • Vent raises every 1,100 m at the conveyor decline • Early production (year 2 – 0.6Mt) • Higher truck haulage distance from the bottom of Väsman to crusher station compared with Opt

  7. Slide 7: Access Option – Option 2

    Access Option – Option 2 7 Option 2 – Single conveyor decline access from Blötberget to Väsman and second parallel access (pilot drive) from Häksberg Plan view • Pilot drive to be used as exploration development for Väsman North • Additional ventilation and secondary egress which allows location of

  8. Slide 8: Production Rate Assessment and Modifying factors

    Production Rate Assessment 8 Based on a production rate assessment the Väsman production rate is around 3.4 Mt per year: • Longitudinal stoping - Normally up to 1.0 Mtpa from (peaking at 1.8 Mtpa at the beginning when no transverse stoping is taking place) • Transverse stoping - Up to 2.4 Mtpa Appli

  9. Slide 9: COG calculation and TEM input parameters

    COG calculation and TEM input parameters 9 • Iron ore price – 104.05 USD/t product – Magnetite (Blötberget (BB) report) • Mining cost – 12.00 USD/t RoM (BB report reference without backfill) • Beneficiation Plant + Tailings – 4.81 USD/t RoM (from BB report plus additional 30%) • G&A – 4.67 USD/t RoM

  10. Slide 10: Schedules summary graph

    Schedules summary graph 10 © SRK Consulting (UK) Ltd 2019. All rights reserved.

  11. Slide 11: Financial results – Operational and Capital Costs

    Financial results – Operational and Capital Costs 11 RoM Concentrate Capital Expenditure Base case Option 2 Base case Option 2 Base case Option 2 (USDm) (USDm) (USD/t RoM) (USD/t RoM) (USD/t Conc) (USD/t Conc) Capital Development 58 66 3.1 3.5 7.2 8.2 Undergound infrastructure 28 28 1.5 1.5 3.4 3.4

  12. Slide 12: Financial results – NPV and Ramp-up capital

    Financial results – NPV and Ramp-up capital 12 NPV Base case Option 2 Capital Expenditure – First 2 years Base case Option 2 Discount (USDm) (USDm) (USDm) (USDm) 0% 136.8 129.4 Capital Development 16.2 31.2 4% 99.0 91.8 Capital Lateral Development 15.0 29.0 8% 70.9 63.7 Capital Vertical Development

  13. Slide 13: Conclusions and Recommendations

    Conclusions and Recommendations 13 SRK has undertaken a conceptual study on the Väsman project with the following main outcomes: • Two options have been evaluated: • Base case – Single access from the Blötberget decline • Option 2 – As per Base Case and additional access via pilot drive from Håksber

  14. Slide 14: Recommendations - Drilling

    Recommendations - Drilling 14 The following drilling metres have been proposed: Land 8,975 m Barge 4,375 m Total 13,350 m The holes are to be properly surveyed and cemented to reduce the risk of water inflow into any future underground workings. © SRK Consulting (UK) Ltd 2019. All rights reserved.

  15. Slide 15: SRK Office Locations and Project Countries

    SRK Office Locations and Project Countries 15 >1,400 Professionals, 45 offices, 20 countries, 6 continents © SRK Consulting (UK) Ltd 2019. All rights reserved.

  16. Slide 16: Copyright and Disclaimer

    16 Copyright and Disclaimer Copyright (and any other applicable intellectual property rights) in this document and any accompanying data or models which are created by SRK Consulting (UK) Limited ("SRK") is reserved by SRK and is protected by international copyright and other laws. Copyright in any

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