Haranga Resources Limited · ASX:HAR
Haranga Resources — Investor Presentation (December 2012)
21 slides from Haranga Resources's investor presentation, Dec 18, 2012
Slide 1: Company Presentation: The Selenge Iron Ore Project, Mongolia
Company Presentation: The Selenge Iron Ore Project, Mongolia Robert Wrixon Managing Director Company Presentation 18 December 2012
Slide 2: Competent Person's Statements and Disclaimers
COMPETENT PERSON’S STATEMENTS AND DISCLAIMERS Competent Persons’ Statements The information in this presentation that relates to Exploration Results and Exploration Targets is based on information compiled and reviewed by Mr Kerry Griffin, who is a Member of the Australian Institute of Geoscientists
Slide 3: Overview
OVERVIEW Company Flagship Selenge Iron Ore Project located in Mongolia → Four primary targets located in the project area → 35,000m of drilling completed in 2012 → Substantial JORC resource upgrade expected April 2013 → 250-400Mt total Exploration Target for the Selenge Project area → Nearby rail an
Slide 4: Board
BOARD Matthew Wood 19 years experience in the resources sector with both major and junior resource companies Currently a Director of Voyager Resources, Avanco Resources, Lindian Resources and Copper Chairman Range, previously Chairman of Mongolia focused Hunnu Coal Limited 16 years commercial experi
Slide 5: CSR and Environmental Stewardship
CSR AND ENVIRONMENTAL STEWARDSHIP Selenge was Mongolia’s largest drill program in 2012 → A social licence to operate is a must HAR, VOR and Hunnu Coal jointly run one of Mongolia’s largest private student scholarship program → 15 students currently in the program, 6 are HAR students → 4 of the stude
Slide 6: Iron ore consumption/production forecast in China's northern provinces
Iron ore consumption/production forecast in China’s northern provinces In 2012 China will mine over 1Bt of raw iron ore at an average grade of around 17% Fe Provides only 1/3 of iron units required – China is fundamentally short of iron ore Source: CRU Strategies; Noble Group 6
Slide 7: Steel Mills in Northern China
STEEL MILLS IN NORTHERN CHINA Inland steel mills of northern China are fed by high cost domestic magnetite mines Mongolian magnetite concentrate is a perfect reinforcement for declining domestic supply Source: CRU Strategies 7
Slide 8: Mongolian Iron Ore Export Growth
MONGOLIAN IRON ORE EXPORT GROWTH Quarterly Mongolian Iron Ore Exports to China From practically zero in 2008, Mongolian iron ore exports are expected to exceed 7Mt in 2012 Source: National Statistics Office of Mongolia 8
Slide 9: Haranga Has Four Mongolian Iron Ore Projects
HARANGA HAS FOUR MONGOLIAN IRON ORE PROJECTS Proximity to transport & infrastructure is vital to access the northern Chinese market Selenge and Shavdal projects are close to existing iron ore export mines All projects are targeting large magnetite deposits Selenge is the Company’s most advanced proj
Slide 10: The Selenge Project Location (Haranga: 80%)
THE SELENGE PROJECT LOCATION (Haranga: 80%) Largest ground holding in Mongolia’s premier iron ore belt 200km north of UB Nearby to Eruu Gol mine & the Tumurtei and Tumur Tolgoi iron ore deposits* Eruu Gol iron ore mine: – Mongolia’s largest – Currently exporting 5 Mtpa – Building wet mag sep plant t
Slide 11: Eruu Gol Mine – A Model for Selenge
ERUU GOL MINE – A MODEL FOR SELENGE New rail spur to the Eruu Gol Mine Eruu Gol mine has a resource of approx 300Mt Located within a ‘magnetite hill’ hence low strip ratio, low mining cost Banded magnetite skarn deposit hence straightforward, low cost beneficiation Current upgrading process is dry m
Slide 12: Eruu Gol: A World Class Integrated Iron Ore Export Operation
ERUU GOL: A WORLD CLASS INTEGRATED IRON ORE EXPORT OPERATION Currently producing 5Mtpa of concentrate and plans Magnetic to increase to over 8Mtpa with new wet magnetic concentrators separation plant under construction. Rail loading facility 12
Slide 13: Targets Identified at Selenge Project
TARGETS IDENTIFIED AT SELENGE PROJECT All four primary targets now drilled and all contain significant intervals of iron ore A number of other promising new targets have been identified by recent Aeromag 13
Slide 14: Drill Plan Map at Bayantsogt (Over Magnetics)
DRILL PLAN MAP AT BAYANTSOGT (OVER MAGNETICS) 60 of 67 holes hit mineralisation along 750m of strike: • 103m at 44% Fe from 225m (BTDH 20) – includes 28m at 58% Fe • 97m at 44% Fe from 223m (BTDH 32) – includes 29m at 54% Fe • 71m at 37% Fe from 266m (BTDH 15) – includes 12m at 50% Fe • 20m at 47% F
Slide 15: Initial Resource and Cross Section at Bayantsogt
INITIAL RESOURCE AND CROSS SECTION AT BAYANTSOGT 2012 drilling has expanded the resource High grade zone has been extended Exploration Target is 40-60Mt Consistent iron lodes from surface of the hill mean simple mining conditions 15
Slide 16: Drill Plan Map at Dund Bulag (Over Magnetics)
DRILL PLAN MAP AT DUND BULAG (OVER MAGNETICS) Dund Bulag is the largest target, again coincident with a large ‘magnetite skarn hill’ Very wide iron lodes from surface: • 85m at 22% Fe from 121m (DBDH 1) • 20m at 24% Fe from 0m (DBDH 3) • 54m at 22% Fe from 98m (DBDH 5) - includes 6m at 31% Fe • 132m
Slide 17: Interpreted Cross Section at Dund Bulag
INTERPRETED CROSS SECTION AT DUND BULAG Over 100m of ore from surface Very low strip ratio Exploration Target: 200 – 300Mt of ore 17
Slide 18: Excellent Metallurgical Properties
EXCELLENT METALLURGICAL PROPERTIES Banded Magnetite Skarn mineralisation at Selenge: – Coarse grained with SiO2 primarily in separate bands – Far more easily beneficiated than typical Australian magnetites Summary of All DTR Tests from Every Metre of 2011 Mineralised Core Average Concentrate Quality
Slide 19: Inland China Prices Remain Strong
INLAND CHINA PRICES REMAIN STRONG Monthly Average Spot Prices for Seaborne Imports vs Inland Domestic Iron Ore US$130/t US$102/t* * Seaborne price has since recovered to $132/t (as of 18 Dec 2012) Magnetite concentrate now receives a premium over the seaborne benchmark due to quality differential an
Slide 20: Low End of the Cost Curve into Inland China
LOW END OF THE COST CURVE INTO INLAND CHINA This is a sustainable long term advantage into the inland northern Chinese steel mills reliant on domestic magnetite and poorly served by seaborne imports. Mongolia’s competition in this region is high cost domestic production Source: CRU Strategies, Macqu
Slide 21: Summary and Selenge Project Plan
SUMMARY AND SELENGE PROJECT PLAN China mines ~1Bt per year of iron ore, at ~17% Fe average → Primarily magnetite mines - forecast decline in grade and tonnes → Higher prices for magnetite concentrate in inland northern China than seaborne benchmark Bayantsogt and Dund Bulag are well advanced → High
Haranga Resources — Investor Presentation (December 2012) on 6ix