Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (May 2011)
62 slides from Igo's investor presentation, May 2011
Slide 1: Growing a Great Australian Mining Company – Investor Update
INDEPENDENCE GROUP GROWING A GREAT AUSTRALIAN MINING COMPANY INVESTOR UPDATE MAY 2011 Chris Bonwick – Managing Director 1
Slide 2: Disclaimer
DISCLAIMER Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward‐looking statements. All statement, other than statements of histor
Slide 3: Quality Metal Miner: Key Ingredients
Independence Group NL Quality Metal Miner : Key Ingredients Low Cash Costs – Long/Jaguar. Long Mine Life. Prospective Mineral Provinces. Diverse Metals ‐ Base: Nickel, Copper and Zinc. ‐ Precious: Gold, Silver, PGE’s. Significant Cashflow. Extensive Exploration/Project Development Growth
Slide 4: Project Portfolio
Independence Group NL Project Portfolio Project Mine Life Metal Quantities Resources • Tropicana ‐ development 10+ years 5.28 M oz Au – IGO 30% • Long ‐ production 5+ years 91,500 Ni T • Jaguar ‐ production 2+ years 34,500 Cu T 72,400 Zn T 3.3M oz Ag • Bentley ‐ development 8+ years 60,900 Cu T 298,
Slide 5: Other Assets
Independence Group NL Other Assets People Infrastructure ‐ Strong mining teams ‐ Operating plant synergies ‐ Strong metallurgical team ‐ Geraldton Port concentrate ‐ Strong exploration team storage shed ‐ Strong development team Technology De Beers Data Base ‐ High powered TEM ‐ Very large s
Slide 6: Independence History and Share Price
Independence History and Share Price Five ore bodies discovered to date Monthly Average Share Price to 28.04.11 6
Slide 7: Development and Exploration Projects
Independence Group NL Development and Exploration Projects 7
Slide 8: Tropicana Project
Independence Group NL TROPICANA PROJECT 8
Slide 9: Tropicana JV Gold Production 2013
Tropicana JV (IGO 30%) Gold Production 2013 DEVELOPMENT APPROVED NOVEMBER 2010 A New Australian Gold Province AngloGold Ashanti – 70% (Manager) Independence Group NL – 30% Tropicana JV 1000kms “New Gold Province under sand” 9
Slide 10: Tropicana Overview
Tropicana Overview Development approved November 2010 Estimated construction cost A$725‐775M BFS Reserve including Tropicana, Havana and Havana South ‐ 48M tonnes @ 2.2g/t Au = 3.4M oz Au Newly Added Resources ‐ Boston Shaker 480,000 oz ‐ Havana Deeps 630,000 oz New Discoveries ‐ Hatrick ‐
Slide 11: Tropicana JV Significant Discoveries To Date
Tropicana JV Significant Discoveries To Date Numerous gold anomalies and potential for other gold discoveries 11
Slide 12: Tropicana JV BFS Reserve and Mining Inventory
Tropicana JV BFS Reserve and Mining Inventory 100% Project: Nov 2010 Open Pit Reserve: 48Mt @ 2.2g/t Au – 3.4Moz (A$1,100/oz) Nov 2010 Mining Inventory: 59Mt @ 2.0g/t Au – 3.8Moz (A$1,100/oz) 12
Slide 13: Tropicana JV New Boston Shaker Discovery
Tropicana JV New Boston Shaker Discovery Boston Shaker is not included in BFS Tropicana gold system still growing along‐strike and down‐dip. 13
Slide 14: Tropicana JV BFS Reserve and Mining Inventory
Tropicana JV (AngloGold Ashanti 70% / IGO 30%) BFS Reserve and Mining Inventory Havana Deeps is not included in BFS Tropicana gold system still growing along‐strike and down‐dip. 14
Slide 15: Tropicana JV Havana Deeps Intercepts
Tropicana JV Havana Deeps Intercepts Havana Deeps is not included in BFS Tropicana gold system still growing along‐strike and down‐dip. 15
Slide 16: Tropicana JV Havana Deeps Cross-section
Tropicana JV Havana Deeps Cross‐section Tropicana JV Havana Deeps Step Out Hole 16
Slide 17: Tropicana Fly Through
nN, ANGLOGOLD ASHANTI AUSTRALIA Tropicana JV ' y | INDEPENDENCE GROUP NL
Slide 18: Long Mine
Independence Group NL LONG MINE 18
Slide 19: Long Nickel Mine (IGO 100%) Update
Long Nickel Mine (IGO – 100%) 2002 Purchase price = A$15M Update Recent Moran Discovery now in production. Continued exploration and production development. Recent exploration success at Long North and Moran North showing potential new discovery. 1979‐1999 WMC Production: 203,184t Ni 2002‐Mar
Slide 20: Long Nickel Mine (IGO 100%)
Long Nickel Mine (IGO 100%) Moran, McLeay and Long nickel ore bodies yet to be closed off HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to Mar 11 = 71,089 Ni t • June 2010 Resource = 91,500 Ni t • June 2010 Reserves = 53,400 Ni t GOALS • Sustainable 9,000t Ni pa in bottom 3rd of worl
Slide 21: Mine Geophysics - TEM Equipment
Mine Geophysics ‐ TEM Equipment Innovative research and development High powered TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM probe targeting, reduced detection up to 20
Slide 22: Long Mine Nickel Deposits and Targets Longitudinal Projection
Long Mine Nickel Deposits and Targets Longitudinal Projection Largest Reserve since IGO reopened the mine (mine life extended to at least 2016) 22
Slide 23: Moran North New Extension
Moran North New Extension Drill hole intercept © Porphyry @ NiS Ore >1% Ni \ Drill hole trace & TEM conductor 9.0m @ 12.2% Ni Moran 2010 Resource Limit mp Open. ane : — 3.9m @ 11.4% Ni eX NS 1.3m @ 4.9% Ni} N opar 4-8m @ 10.7% Ni} 2.7m @ 10.5% Ni| =" 547825mN ~ 547925mN -— 548025mN
Slide 24: Long North
Long North Long ore body remains open to the north 24
Slide 25: Quarterly Cash Costs and Revenue
Quarterly Cash Costs and Revenue High operating margins and consistent low cash costs over 6 years Revenue A$/lb Ni (includes hedging) Payable Cash Costs A$/lb Ni 25
Slide 26: Production Forecast and Hedging
Production Forecast and Hedging History of exceeding production guidance 2009/10 2009/10 Guidance Actual • Production 8,000‐8,400 Ni t 8,615 Ni t • Grade 4.0% Ni 4.25% Ni • Cash Costs (payable) ‐ with royalty A$4.20‐4.40/lb Ni A$4.44/lb Ni ‐ without royalty A$3.90‐4.10/lb Ni A$4.01/lb Ni 2010/11 Jul
Slide 27: Long Mine Complex Production / Ore Reserve Comparison
Long Mine Complex Production / Ore Reserve Comparison Consistently mining more nickel than Reserve estimate Oct 2002 – Jun 2010 PRODUCTION SUMMARY Initial Ore Reserve Estimate: 40,373 Ni t Mined from Ore Reserve: 52,665 Ni t (+30%) Mined outside Ore Reserve: 11,444 Ni t (+28%) TOTAL: 64,109 Ni t (+5
Slide 28: Long Mine Fly Through
Long Mine Fly Through Sg) INDEPENDENGE GROUP'NL %
Slide 29: Jaguar Project
Independence Group NL JAGUAR PROJECT 29
Slide 30: Jaguar/Bentley Potential
Jaguar/ Bentley Potential Volcanic Massive Sulphide (VMS) Discovery History & Mineralisation Scale Bentley Resource Golden Grove Gossan Hill discovery history Outline ? ? ? 30
Slide 31: Jaguar Project - Bentley Deposit
Jaguar Project ‐ Bentley Deposit November 2010 Resource: 3.0M t @ 2.0% Cu, 9.8% Zn, 0.6% Pb, 139g/t Ag, 0.7g/t Au (60,900t Cu, 298,500t Zn, 18,300t Pb, 13.6M oz Ag, 68.5K oz Au) Open down‐plunge 31
Slide 32: Jaguar Project – Jaguar Deposit
Jaguar Project – Jaguar Deposit September 2010 Reserves: 3.25M t @ 1.8% Cu, 7.9% Zn, 99g/t Ag, 0.4g/t Au (58,200t Cu, 255,500t Zn, 10.3M oz Ag, 4.2K oz Au) Open down‐plunge 32
Slide 33: Teutonic Bore
Teutonic Bore VMS Corridor Walk‐up Geophysical and Drilling Targets Aeromagnetic Image Jaguar September 2010 Reserves: 3.23M t @ 1.8% Cu, 7.9% Zn, 99g/t Ag, 0.4g/t Au (58,200t Cu, 255,500t Zn, 10.3M oz Ag, 4.2K oz Au) Reference: JML ASX release dated 9 September 2010 Bentley November 2010 Resource:
Slide 34: Jaguar Project Bentley Fly Through
Jaguar Project Bentley Fly Through 34
Slide 35: Exploration Portfolio
Independence Group NL EXPLORATION PORTFOLIO 35
Slide 36: Duketon JV – Rosie Prospect Massive Nickel Sulphides
DUKETON JV – ROSIE PROSPECT MASSIVE NICKEL SULPHIDES (IGO earning 70%) Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.1% Ni, 1.1% Cu, 0.2% Co, 7.1g/t PGE’s (2.2g/t Pt, 1.7g/t Pd, 1.8g/t Ru & 0.8g/t Rh) 36
Slide 37: Karlawinda Gold Project Bibra Prospect
KARLAWINDA GOLD PROJECT BIBRA PROSPECT (IGO 100%) Maiden Resource 220,000 oz Au
Slide 38: Stockman Project Mines and Prospects
Stockman Project Mines and Prospects Aeromagnetic Image Total Indicated + Inferred Resources: 12.5M t @ 2.1% Cu, 4.4% Zn, 38g/t Ag, (262,500t Cu, 550,000t Zn, 15.3M oz Ag) Both Currawong and Wilga VMS Deposits open down‐plunge. 38
Slide 39: Stockman Project Currawong Deposit
Stockman Project Currawong Deposit July 2010 Resource: 9.17M t @ 2.0% Cu, 4.2% Zn, 0.8% Pb, 41g/t Ag, 1.1g/t Au (183,500t Cu, 385,300t Zn, 73,400t Pb, 1.25M oz Ag, 0.32M oz Au) Open down‐plunge 39
Slide 40: Stockman Project Wilga Deposit
Stockman Project Wilga Deposit July 2010 Resource: 3.33M t @ 2.4% Cu, 4.9% Zn, 0.4% Pb, 30g/t Ag (80,000t Cu, 163,000t Zn, 13,300t Pb, 3.2M oz Ag) Open down‐plunge 40
Slide 41: Stockman Project Mines and Prospects
Stockman Project Mines and Prospects Aeromagnetic Image Total Indicated + Inferred Resources: 12.5M t @ 2.1% Cu, 4.4% Zn, 38g/t Ag, (262,500t Cu, 550,000t Zn, 15.3M oz Ag) Both Currawong and Wilga VMS Deposits open down‐plunge. 41
Slide 42: Stockman Fly Through
Jaguar Project Stockman Fly Through 42
Slide 43: Orrbacken Nickel Project - Sweden
ORRBACKEN NICKEL PROJECT ‐ SWEDEN (JV: IGO earning up to 73%) Numerous concealed TEM anomalies NiS rich gabbro boulder 43
Slide 44: Project Generation: De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) No buy‐back or royalties on future mineral discoveries Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected. 2,278 samples reporting visible gold. 2,025 geophysical surveys. IGO analysing sam
Slide 45: De Beers Database Storage Warehouse
DE BEERS DATABASE STORAGE WAREHOUSE Preparing geochemical samples for analysis 45
Slide 46: Example: Potential to Find New Mines
EXAMPLE: POTENTIAL TO FIND NEW MINES DE BEERS DATABASE (IGO 100%) IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA) 46
Slide 47: Birrindudu Tin Project Northern Territory
BIRRINDUDU TIN PROJECT NORTHERN TERRITORY (IGO 100%) New Australian tin discovery Cassiterite rich heavy mineral concentrate 47
Slide 48: Corporate
Independence Group NL CORPORATE 48
Slide 49: Independence Overview - Corporate
INDEPENDENCE OVERVIEW ‐ CORPORATE Capital Structure: ASX 200 Code: IGO Shares on Issue at 29 April 2011: 198.8M and 0.8M unlisted options Market Capitalisation: (27/04/11): A$1,200M Assumed Post transaction completion: 202M shares Assumed Market Capitalisation: A$1,355M based on $6.71 Substantial sh
Slide 50: Complementary Asset Pipeline and Expertise
Complementary Asset Pipeline and Expertise 50
Slide 51: Market Capitalisation of ASX Listed Base Metals Companies
Independence Group NL Growing a Great Australian Mining Company ASX listed base metals companies >A$250m – Market capitalisation (A$m) 6,000 6,895 4,744 2,500 2,342 Market capitalisation (A$m) Subject to Takeover 2,000 1,500 1,355 1,246 1,000 1,084 998 500 570 436 420 324 248 0 Mincor Resources PanA
Slide 52: Independence Contact Details
INDEPENDENCE CONTACT DETAILS Perth Office Managing Director – Chris Bonwick Ground Floor, Suite 1 183 Great Eastern Highway, Belmont, Western Australia Postal: PO Box 496, South Perth, Western Australia 6951 Telephone: +61 8 9479 1777 Facsimile: +61 8 9479 1877 Email: contact@igo.com.au Website: www
Slide 53: Appendix Resource Statements
Independence Group NL APPENDIX RESOURCE STATEMENTS 53
Slide 54: Long Nickel Mine June 2010 Resources and Reserves
Long Nickel Mine (IGO 100%) June 2010 Resources and Reserves RESOURCES MINING RESERVE Undiluted at 1% Ni Cut-off 1, 2 as at 30 June 2010 as at 30 June 2010 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26,000 5.6 1,500 LONG Proven 15,000 2.8 400 Indicated 215,000 4.8 10,300 Probable 98,0
Slide 55: Tropicana JV 2011 Resources and 2010 BFS Reserves
Tropicana JV (AngloGold Ashanti 70% / IGO 30%) 2011 Resources and 2010 BFS Reserves Contract Open Cut Mining Contract Mining Costs January 2011 November 2010 Open Pit Resources Open Pit Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measure
Slide 56: Karlawinda Gold Project – Bibra Deposit
Karlawinda Gold Project – Bibra Deposit Maiden Resource March 2011 Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 1.9 1.2 73,300 Upper Saprolite 0.8 1.1 28,300 Lower Saprolite 1.6 1.1 56,600 Sub‐total Oxide Inferred 4.3 1.1 158,200 Transition Inferred 1.6 1.2 61,700 Grand
Slide 57: Jaguar Project Bentley Mineral Resource - November 2010
Jaguar Project Bentley Mineral Resource ‐ November 2010 Cu Zn Pb Au Ag Mineralisation Type Classification Tonnes % % % g/t g/t Massive Sulphide Indicated 1,342,000 1.9 15.4 1.0 0.8 184 Stringer Sulphide Indicated 961,600 1.7 2.3 0.1 0.3 34 Total Indicated 2,303,600 1.8 9.9 0.6 0.6 122 Massive Sulphi
Slide 58: Jaguar Project Reserve & Additional Resource
Jaguar Project Reserve & Additional Resource ‐ 1 September 2010 Classification Tonnes Cu % Zn % Ag g/t Au g/t Bentley Underground Reserve (Sept 2010) – Stage 1 & 2 Reserve Probable (Stringer) 560,000 1.46 1.72 23 0.24 Probable (Massive) 1,890,000 1.46 10.7 130 0.62 Total Probable Reserve - Bentley 2
Slide 59: Jaguar Project Resource Summary - July 2010
Jaguar Project Resource Summary ‐ 1 July 2010 Cu Zn Pb Ag Au Classification Tonnes % % % g/t g/t Measured 511,000 4.7 10.4 0.7 141 - Indicated 3,555,000 1.9 7.8 - 104 - Inferred 614,000 1.4 0.8 - 26 - Sub Total Measured & Indicated 4,066,000 2.2 8.2 - 109 - Jaguar Project Summary 4,680,000 2.1 7.2 -
Slide 60: Teutonic Bore Resource - August 2009
Teutonic Bore Resource ‐ August 2009 Teutonic Bore Resource (August 2009) Massive Indicated (transitional) 20,000 4.3 11.7 1.1 200 - Massive Indicated (fresh) 132,000 1.7 16.7 1.5 223 - Sub Total Massive Indicated 152,000 2.1 16.0 1.4 220 - Stringer Indicated 719,000 1.5 0.7 - 23 - Stringer Inferred
Slide 61: Stockman Resource Estimate - September 2009
Stockman Resource Estimate ‐ September 2009 Stockman Classification Tonnes Cu % Zn % Pb % Ag g/t Au g/t Currawong Indicated 8,552,000 2.0 4.2 0.8 41 1.1 Currawong Inferred 621,000 1.9 3.9 0.8 37 1.2 Total Indicated + Inferred 9,173,000 2.0 4.2 0.8 41 1.1 Wilga Indicated 2,831,000 2.5 5.6 0.5 33 - Wi
Slide 62: Competent Person Statements
COMPETENT PERSON STATEMENTS Note: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Christopher M Bonwick who is a full‐time employee of the Company and is a member of the Australasian Institute of Minin
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