Strike Resources Limited · ASX:SRK
Strike Resources — Non-Deal Roadshow (October 2007)
27 slides from Strike Resources's roadshow presentation, Oct 4, 2007
Slide 1: Roadshow Presentation
Thursday, 4 October 2007 MARKET ANNOUNCEMENT For personal use only Roadshow Presentation The Company is pleased to enclose a copy of a presentation made to fund managers and institutional investors in Hong Kong and Singapore this week. For further information: Shanker Madan Managing Director T | (08
Slide 2: Developing a World Class Iron Ore Project
For personal use only TITLE OF THE PRESENTATION DEVELOPING A WORLD CLASS IRON ORE PROJECT September 2007
Slide 3: Executive Summary
TITLE OF THE PRESENTATION 2 For personal use only Executive Summary z The global market for iron ore is Strike has secured rights to a potential forecast to remain strong. world class 1.2 billion tonne high grade (62%+Fe) iron ore resource in Peru. z Strike is targeting up to 20 million tonnes per y
Slide 4: Strike is earning a 68% interest in two world class iron ore deposits in Peru
TITLE OF THE PRESENTATION 3 For personal use only Strike is earning a 68% interest in two world class iron ore deposits located in Peru South America
Slide 5: Peru is a World Class Mineral Belt
TITLE OF THE PRESENTATION 4 For personal use only Peru is a World Class Mineral Belt z Peru has 12% to 16 % the world’s known resources of silver, gold, zinc, copper and lead z Peru is among the top five producers in the world of silver, zinc, gold, copper and lead z Xstrata, Newmont, BHP, Shougang
Slide 6: Historical reports estimate 1.2 billion tonnes of high grade iron ore across two deposits
TITLE OF THE PRESENTATION 5 For personal use only Historical reports estimate 1.2 billion tonnes of high grade iron ore across two deposits z Large untapped deposits of high grade iron ore are rare. z Resource grade is a critical factor in mine profitability. z Resource estimates from surface mappin
Slide 7: Strike's Resource is Significant by World Standards
TITLE OF THE PRESENTATION 6 For personal use only Strike’s Resource is Significant by World Standards Deposit Size Grade Fe% Company Carajas (Brazil) ~4,300Mt 65% CVRD Sishen (S Africa) ~2,500Mt 58% Kumbha Minas-Rio (Brazil) ~850Mt – 2,000Mt 40% MMX/Anglo Yandicoogina (Aus - Pilbara) ~1,200Mt 58% Ri
Slide 8: Highly Experienced Board
TITLE OF THE PRESENTATION 7 For personal use only HIGHLY EXPERIENCED BOARD John Stephenson – Chairman Exploration Director Rio Tinto Australasia. 35+ years managing exploration. Shanker Madan (MD) BHP, Rio Tinto, Hamersley Iron. 30+ years iron ore experience. Farooq Khan: Executive Director 20+ year
Slide 9: Strike's Production Growth
TITLE OF THE PRESENTATION 8 For personal use only STRIKES PRODUCTION GROWTH Strike proposes a three phase project development plan ¾ Stage 1 2 Mt pa of High Grade Lump production by 2009 ¾ Stage 2 20 Mt pa High Grade sinter/concentrate production by 2011 ¾ Stage 3 40 Mt pa of High Grade sinter/conce
Slide 10: Stage 1 Production Plan (2009) from Surface Outcrops and Scree at Cuzco
TITLE OF THE PRESENTATION 9 For personal use only STAGE 1 PRODUCTION PLAN (2009) 2 MT PA FROM SURFACE OUTCROPS AND SCREE AT CUZCO ¾ Estimated Capex US$15million ¾ Resource delineation has commenced ¾ Surface mining of high- grade hematite to 10m depth ¾ Road transport ~70km to existing railhead ¾ Tr
Slide 11: Project Timetable
TITLE OF THE PRESENTATION 10 For personal use only STAGE 2 PROJECT TIMETABLE Pre-feasibility Feasibility Stage 2 Production 22Mt pa Design Stage 2 (Jan 2011) Construction 2007 2008 2009 2010 2011 Drilling 30,000m
Slide 12: Pre-Feasibility Program
TITLE OF THE PRESENTATION 11 For personal use only 20 Mtpa Pre-Feasibility Program Completion March 2008 Ore Body Process Slurry Mine Plan Plant Design Pipeline Modelling Environment Water and Port and Marketing Power Stockpile
Slide 13: Stage 2 Production (2011) from Apurimac
TITLE OF THE PRESENTATION 12 For personal use only STAGE 2 PRODUCTION (2011) 20 MT PA FROM APURIMAC ¾ Mined ore will be crushed, mixed with water and fed into a ~360km slurry pipeline ¾ On reaching the coast, the ore will be de-watered ¾ Product will be shipped to China/Asia in +150,000 tonne vessel
Slide 14: Stage 3 Production (2015) Potential Expansion
TITLE OF THE PRESENTATION 13 For personal use only STAGE 3 PRODUCTION (2015) POTENTIAL EXPANSION TO 40 MT PA ADDING 20MT PA FROM CUZCO ¾ Drilling to delineate resource to support a further 20Mtpa operation required ¾ Separate mine development at Cuzco. ¾ Second pipeline to join into the Apurimac pip
Slide 15: Preliminary Estimated Capital Expenditure
TITLE OF THE PRESENTATION 14 For personal use only PRELIMINARY ESTIMATED CAPITAL EXPENDITURE Stage 1 Stage 2 Stage 3 (2009) (2010- 2011) (2013 – 2015) 2Mt pa 20Mt pa 40Mt pa US$Mil US $Mil US $Mil Mine and 14 650 550 Infrastructure Pipeline N/A 500 400 Port 1 350 150 Total 15 1,500 1,100 Prefeasibil
Slide 16: Preliminary Estimated Operating Costs
TITLE OF THE PRESENTATION 15 For personal use only PRELIMINARY ESTIMATED OPERATING COSTS 2Mt pa 20Mt pa 40Mt pa US$/tonne US$/tonne US$/tonne Mining & Processing 5 8 8 Transport 30 3 4 Port 5 2 2 Infrastructure 1 1 1 Admin & O/heads 1 1 1 Total 42 15 16 Prefeasibilty Studies underway to provide grea
Slide 17: Large bodies of water nearby support preferred transport by slurry pipeline
TITLE OF THE PRESENTATION 16 For personal use only Large bodies of water located nearby support preferred transport by slurry pipeline
Slide 18: Benefits of a Slurry Pipeline
TITLE OF THE PRESENTATION 17 For personal use only Benefits of a Slurry Pipeline z Relatively low capital expenditure and operating cost. z Downhill gradient is highly beneficial. z Water and gas available. z Targeted throughput: 20 Mt pa expanding to 40Mt pa. z Proven technology – numerous existing
Slide 19: Proposed Pipeline Routes
TITLE OF THE PRESENTATION 18 For personal use only PROPOSED PIPELINE ROUTES Deposit Deposit 11 -- Apurimac Apurimac Deposit Deposit 22 -- Cuzco Cuzco
Slide 20: Operating Conditions
TITLE OF THE PRESENTATION 19 For personal use only OPERATING CONDITIONS CLIMATE ¾ Apurimac 3500m ASL; Cuzco ~4000m ASL ¾ Similar elevations to many large mines in Peru LABOUR ¾ Apurimac Project 15km from Andahuaylas with 50,000 population ¾ Cuzco Project 80km from Cuzco: Peru’s second largest city P
Slide 21: Strike's Iron Ore Advantage
TITLE OF THE PRESENTATION 20 For personal use only STRIKES IRON ORE ADVANTAGE ¾ Superior grades compared to lower grade ores from Australia ¾ For every low grade tonne Australia exports, more South American high grade tonnes are likely to be required to balance the steel mills feed ¾ Expected operat
Slide 22: Exploration Drilling 2008 – Resource Definition
TITLE OF THE PRESENTATION 21 For personal use only EXPLORATION DRILLING 2008 – RESOURCE DEFINITION ¾ 30,000 m drilling at Apurimac ¾ 5,000m drilling at Cuzco ¾ Pre-feasibility studies (Due second quarter 2008) ¾ Budgeted expenditure 2007/2008 : US $7 million
Slide 23: 172Mt @ 62.28% Fe JORC Inferred Resource in Apurimac
TITLE OF THE PRESENTATION 22 For personal use only 172Mt @ 62.28% Fe JORC Inferred Resource–and growing-in Apurimac Opaban I and Opaban III : First 2 of 21 concessions drilled ¾ Detailed gravity and magnetic surveys followed by 31 diamond core holes and 45 RC holes have been drilled to date ¾ A reso
Slide 24: Resource Estimate Cuzco: 500-650Mt
TITLE OF THE PRESENTATION 23 For personal use only RESOURCE ESTIMATE CUZCO: 500-650MT ¾ Flat tabular radial bodies within a 4km diameter area around an intrusive core ¾ Work done to date ¾ Geophysical surveys ¾ Rock chip sampling of outcropping mineralisation ¾ 2,630m of drilling just completed. Res
Slide 25: Capital Structure
TITLE OF THE PRESENTATION 24 For personal use only CAPITAL STRUCTURE ASX Codes: SRK, SRKO SOrdinary fully paid shares: 75 million Listed Options: 14.5 million Unlisted Options: 12.5 million Fully Diluted Issued Capital 102 million Market Capitalisation ( Fully Diluted): ~A$224 million (at $2.20/shar
Slide 26: Disclaimer
TITLE OF THE PRESENTATION 25 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 Resource
Slide 27: Strike Resources
TITLE OF THE PRESENTATION 26 For personal use only Strike Resources A.B.N 94 088 488 724 Level 14, 221 St Georges Terrace Perth WA 6000 Telephone +61 8 9214 9700 Facsimile +61 8 9322 1515 Email: info@strikeresources.com.au Web: www.strikeresources.com.au