Chris Gale, Latin Resources: Latin Resources Project Update

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Chris Gale, Managing Director, Latin Resources Limited delivered this presentation at the 2013 Americas Iron Ore conference. Americas Iron Ore is one of the most respected annual gatherings for North and South American iron ore markets. The agenda features iron ore industry and market developments; new project developments and expansions in North and South America; overview of steel demand; iron ore spot market price; infrastructure and transport challenges and investment opportunities.
After five successful editions, the Americas Iron Ore Conference consolidates as the largest meeting place for executives and professionals of the steel and iron ore industry in the region. For more information, please visit the conference website: https://www.immevents.com/mining-conference/americas-iron-ore-conference

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Chris Gale, Latin Resources: Latin Resources Project Update

  1. 1. Americas Iron Ore Conference Brazil November, 2013
  2. 2. Disclaimer This presentation and any oral presentation accompanying it has been prepared by Latin Resources Ltd (“LRS “ or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. LRS has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, LRS makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of LRS does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.
  3. 3. Forecast – LATAM – Real GDP (USD) 2012 -2014 700 million people in Latin America 7 6 6 4.8 5 4.7 3.7 4 3.4 3 3 2.3 2 1 0 Peru *Source ;Credit Suisse Columbia Chile Brazil Argentina Mexico Venezuela
  4. 4. Latin America – Mining Investment • Latin America is the preferred destination for global exploration • In 2012 ,25% of all global exploration dollars were spent in Latin America • By 2020 there will be 6 countries in Latam that will capture 50% of global mining investments • Chile - $100 billion , Brazil - $ 68b, Peru - $56b , Colombia $22b , Mexico $13b and Argentina - $10b (a total of $269 Billion )
  5. 5. Latin America – Mining Investment • Australia has 80 junior exploration miners in Latin America up from 20 in 2008 • There were 3 junior Australian miners in Brazil in 2008 there are now 12 • Chinese companies will spend $100b in Latin America by 2020
  6. 6. Latin Resources Limited (ASX Code: LRS) Mineral exploration and development company based in mineral rich Peru with a focus on Iron & Mineral Sands Over 4 years of exploration work and $14m spent to date Listed on ASX September 2010 Over 130,000 hectares of mining concessions in Peru Strong Management team
  7. 7. Completed Initial JORC Resource at Guadalupito (Snowdens) September 2012 Acquired a major and potential world class mineral sands project at Guadalupito December 2011 February 2011 Latin Resources Limited Achievements since listing on ASX Completed Scoping Study Guadalupito Completed exploratory drilling program at Ilo March 2012 August 2011 September 2010 Signed $52m investment deal with Junefield Group February 2013 ASX Completed JORC Resource of 1.3 B T
  8. 8. Peru - Project Portfolio & Strategy Guadalupito Iron & Mineral Sands Close to Port & Infrastructure Ilo Projects Iron, Copper, Gold Iron, Zircon, Rutile , Ilmenite , Gold, Andalusite Focus on Flagship Project Guadalupito Develop strong community relationships Identify Iron Ore Project in Brazil
  9. 9. Guadalupito Iron & Mineral Sands Project - Peru Total holding of over 24,000 hectares The port town of Chimbote is Guadalupito Project 25kms South SiderPeru Steel works (Gerdau Group) is located in Chimbote Close to infrastructure - Port & Hwy Chimbote Port
  10. 10. Guadalupito Iron & Mineral Sands Project 1.3 Billion tonne JORC Inferred Resource @ 5.7 HM Conceptual exploration target of over 4 Billion tonnes of mineralized sediments* Two Major Minerals Magnetite 25% of HM and Andalusite 26% of HM Discrete liberated mineral grains of recoverable size of Zircon, Rutile and Ilmenite have been identified. The global Conceptual Exploration Target for Guadalupito has been estimated at between 3.9 and 5.1 Billion tonnes with between 3.2% and 8.4% HM (weighted average 4.5 Bt @ 6.1% HM). The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The Los Conchales conceptual exploration target of 690Mt @ 6.8% HM is the weighted average figure within the range of 620Mt – 770Mt and 3.6% - 10.1% HM. The target was estimated from 15 contiguous polygons each delineated to provide an approximately representative area for each of 15 drill holes which had results to date drilled within a 1,100 hectare area and displaying continuity of geology. Volumes for the polygons were estimated based on the thickness of >1%HM intersections, and the average measured S.G. of recovered samples assigned to estimate tonnage. Grade variation was estimated using 1 standard deviation variation from the average grade of each drill intersection. The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
  11. 11. Stage 1 Concept – 15 mtpa Dredging Mining Operation SPIRAL CIRCUIT SCREENING Dredging SAND TAILS WCP HMC STOCKPILE MINING VOID REJECTS REJECTS COMBINED TAILINGS NON-MAGETIC TIO2 PRODUCT MAGNETIC TIO2 PRODUCT ANDALUSITE PRODUCT ZIRCON CONCENTRATE NON-MAGNETIC NON-CONDUCTORS MAGNETIC SEPARATION NON-MAGNETIC SPIRAL CIRCUIT SUPER-CON “GOLD CON” WET TABLE MAGNETITE STOCKPILE GOLD CONCENTRATE PORT Pig Iron Plant LIMS MAGNETIC SEPARATION REJECTS WET ZIRCON SPIRAL CIRCUIT NONCONDUCTORS LIMS NON-MAGS HT SEPARATION FLOTATION NON-MAGNETICS CONCENTRATE CONDUCTORS NON-MAG CONDUCTOR MAGNETIC SEPARATION MAGNETICS NON-MAGNETICS MSP
  12. 12. Ilo District 2008 Cuajone – 2,300mt @ 0.48% Cu Quellaveco - 1007 Mt @ 0.44% Toquepala – 3,300mt @ 0.47%Cu Latin Resources Southern Copper Ilo Port Latin Resources Chile
  13. 13. Ilo 2013 – Latin Resources controls 130,000 HA Tia Maria 640mt @ .39% Cu Cuajone – 2,300mt @ 0.48% Cu Quellaveco - 1007 Mt @ 0.44% Toquepala – 3,300mt @ 0.47%Cu Southern Copper BHP Ilo Norte Anaconda (Antofagasta) Ilo Port Ilo Sur Chile
  14. 14. Latin Resources Concessions – 131,000 Ha • 10 new target areas located in the Iron Oxide Copper Gold (IOCG) district of the Ilo region of southern Peru • Excellent infrastructure – roads, power, ports • Known deposits in the region; • Porphyry Cu-Au IOCG – Cerro Verde, Tia Maria, Toquepala • Marcona Iron Ore
  15. 15. Latin Resources Brazil Exploration
  16. 16. Latin Resources – New Exploration Brazil • Board Strategy to explore for Iron Deposits in Brazil • Must be close to Port and Infrastructure • Ability to host 1 billion tonne plus • Ability to move into production quickly
  17. 17. Excellent Opportunities • Board Strategy to explore for Iron Deposits in Brazil • Must be close to Port and Infrastructure • Ability to host 1 billion tonne plus • Ability to move into production quickly
  18. 18. New Iron Ore Areas in Brazil A- Bahia State: B – C A – Friable to compact itabirite, ROM require concentration, Public railroad and port projects under development. B - Amapa State: – – – Friable itabirite (ROM Fe >40%), Unexplored region – Amazon Forest Existent railroad and port C- Rio Grande do Norte, Piauí and Ceará: – – – Unexplored area Potential for itabirite Good Infrastructure
  19. 19. Rio Grande Excellent Infrastructure Current and planned railroads Transnordestina Logistica – Existent railroad (black lines) 100 Km Transnordestina Logistica – Planned extension and upgrade (yellow line)
  20. 20. Typical Iron Deposits Rio Grande de Norte Itabirite is formed dominantly by martite and quartz. It is friable to semi-compact near the topographic surface, where it may contain more goethite. Average Fe grade of fresh itabirite is ~28% Fe. Semi-compact to friable itabirite vary from 30 – 45% Fe Ore requires beneficiation and concentration – – – Crushing, grinding, magnetic separation, flotation Mass recovery: 45% Pellet feed product with very low level of contaminants
  21. 21. Excellent Opportunities Iron belt is >350 km long by 40 km wide – several iron ore deposits occur in the area Two iron mines in production Bonito and Susa The new Brazilian Mining Code may present new opportunities for exploration licenses to become available
  22. 22. Port Suape
  23. 23. Port Suape facilities Sept 2013 23
  24. 24. Other Iron Ore Producers in the Region SUSA Project SUSA Project 40 Km 250 Mt of iron ore resources @ 37 Fe% The ongoing shipments of Direct Shipping Ore have an average grade of 62% Fe (70% fines and 30% lumps). A 5 Mtpa production asset is being planned for, with very low infrastructure investment The mine is fully serviced by existing utilities and infrastructure; the Port of Natal is about 250 km from the mine by road.
  25. 25. Strategy and Goals for 2014 JORC inferred resource at Guadalupito upgraded to 1.3 Billion tonnes – search for J/V partner Commence mining planning and production at Guadalupito Commence detailed exploration and drilling program at Ilo Norte and Latin Resources 100% owned Ilo Concessions Identify Iron Ore projects in Brazil
  26. 26. LRS:ASX Capital Structure Shareholding Shares Options Total Shares 210million 44 million Market Cap @10c $21 million November 2014 exercisable @20c Junefield Group major Shareholder with 22.3% Listed on Top 30 Shareholders Australian Stock Exchange (ASX) 70% represent of shareholding
  27. 27. Thank you and Questions Competent Person Statement The information in this report that relates to Geological and Geochemical Data, Exploration Results, Conceptual Exploration Target, Mineral Resources, or Ore Reserves is based on information compiled by Mr Andrew Bristow, a full time employee of Latin Resources Limited’s Peruvian subsidiary. Mr. Bristow is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr. Bristow consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. The global Conceptual Exploration Target for Guadalupito has been estimated at between 3.9 and 5.1 Billion tonnes with between 3.2% and 8.4% HM (weighted average 4.5 Bt @ 6.1% HM). The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The Los Conchales conceptual exploration target of 690Mt @ 6.8% HM is the weighted average figure within the range of 620Mt – 770Mt and 3.6% - 10.1% HM. The target was estimated from 15 contiguous polygons each delineated to provide an approximately representative area for each of 15 drill holes which had results to date drilled within a 1,100 hectare area and displaying continuity of geology. Volumes for the polygons were estimated based on the thickness of >1%HM intersections, and the average measured S.G. of recovered samples assigned to estimate tonnage. Grade variation was estimated using 1 standard deviation variation from the average grade of each drill intersection. The potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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