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Australia China Resources Symposium Adelaide


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Australia China Resources Symposium Adelaide

  1. 1. Mining  &  Infrastructure  Investment  opportuni4es  on  the   Braemar  Iron  Forma4on   Australia  China  Resources  Symposium,    Adelaide     11  July  2012 Andrew  WoskeG   Managing  Director,  Minotaur  Explora4on  Ltd  (ASX:  MEP)  
  2. 2. Cautionary StatementsThis   presenta,on   has   been   prepared   by   the   management   of   Minotaur   Explora,on   Limited   (MEP)   for   the   general   benefit   of   analysts   and   industry  and  does  not  cons,tute  specific  advice  to  any  par,cular  party  or  persons.  Informa,on  herein  is  based  on  publicly  available  informa,on,  internally  developed  data  and  other  sources.  Where  an  opinion,  projec,on  or  forward  looking  statement  is  expressed  in  this  presenta,on,  it  is  based  on  the  assump,ons   and   limita,ons   men,oned   herein   and   is   an   expression   of   present   opinion   only.   No   warran,es   or   representa,ons   are   made   or  implied  as  to  origin,  validity,  accuracy,  completeness,  currency  or  reliability  of  the  informa,on.  MEP  specifically  disclaims  and  excludes  all  liability  (to  the  extent  permiHed  by  law)  for  losses,  claims,  damages,  demands,  costs  and  expenses  of  whatever  nature  arising  in  any  way  out  of  or  in  connec,on  with  the  informa,on,  its  accuracy,  completeness  or  by  reason  of  reliance  by  any  person  on  any  of  it.  Where  MEP  expresses  or  implies  an  expecta,on  or  belief  as  to  the  success  of  future  explora,on  and  the  economic  viability  of  future  project  evalua,ons,  such  expecta,on  or  belief  is  expressed  in  good  faith  and  is  believed  to  have  a  reasonable  basis.  However,  such  projected  outcomes  are  subject  to  risks,  uncertain,es  and  other   factors   which   could   cause   actual   results   to   differ   materially   from   projected   future   results.   Such   risks   include,   but   are   not   limited   to,  explora,on   success,   metal   price   vola,lity,   changes   to   current   mineral   resource   es,mates   or   targets,   changes   to   assump,ons   for   capital   and  opera,ng   costs   as   well   as   poli,cal   and   opera,onal   risks   and   government   regulatory   outcomes.   MEP   disclaims   any   obliga,on   to   advise   any  person  if  it  or  they  become  aware  of  any  inaccuracy  in  or  omission  from  any  forecast  or  to  update  such  forecast.   The following presentation is a visualisation of possible infrastructure solutions to support potential future iron ore mine developments. Locations nominated for the provision of infrastructure facilities are for illustration purposes only and should not be considered viable technical, economic, environmental, social or State solutions for any future requirements  
  3. 3. Braemar Iron Formation: Location 2  new  maps  to  be  inserted  here  
  4. 4. Braemar Iron Formation: The Investment background1.  The Braemar Iron Formation: Australia’s next big Iron ore province  2.  Mining development scenarios  3.  Infrastructure investment opportunities:   §  Concentrate transfer – Rail and Slurry Pipeline §  Port & Sea Freight4.  a Mining Investment opportunity §  Muster Dam Magnetite Project
  5. 5. Braemar Iron: Australia’s next big Iron provinceThe Braemar Iron Formation is a regionally extensive sequence of magnetised sedimentary siltstones, with pervasive beds of magnetite mineralisation, often up to 300m thick, stretching over 200km, as shown in red on the Total Magnetic Image below. 400km  The  Braemar  Iron  Forma4on  has  poten4al  for  an    "Explora(on  Target”  of  25  –  50  billion  tonnes  of  the  magne4te  form  of  iron  The  term  "Explora(on  Target”  should  not  be  misconstrued  as  an  es4mate  of  Mineral  Resources  and  Reserves  as  defined  by  the  JORC  Code  (2004),  and  the  term   has  not  been  used  in  that  context.  It  is  uncertain  if  further  explora4on  will  result  in  the  determina4on  of  a  Mineral  Resource.   Refer  Cl  18  of  the  JORC  Code  (2004).  
  6. 6. Braemar Iron: the potential mining scale ² around 5 large open cut mines ² each mining 50 – 100 million tonnes of ore p.a. and each beneficiating 10 – 20 Mtpa of iron concentrate, exceptionally low in impurities ² for total annualised output of ~50 - 100 Mtpa of blast furnace quality concentrates grading 65% - 70% Fe ² and with a foreseeable 100 year life of mining across the Braemar Iron Formation
  7. 7. Braemar Iron: Transporting iron products to Port ๏ Rail: •  Main continental E-W standard gauge rail line runs right through the Braemar Iron Formation •  Deposits are a 150km - 300km rail trip to Port Pirie where a Pellet Plant could be established •  existing spare rail line capacity of 10Mtpa •  For 25Mtpa haul capacity, need; •  line duplication to provide sufficient train paths beyond 10Mtpa •  9 train sets each comprising 5 x 4,000hp Traction locomotives & 162 wagons •  1990 train trips per year •  5 hour load/unload turnaround time (max)
  8. 8. Braemar Iron: Concentrate transfer to Port ๏ Slurry Pipeline: •  Slurry transfer is a cost effective alternative to rail haulage for a long-term mining project •  Slurry transfer can be used for concentrate movements from mine to port •  we envisage a 300km long buried pipeline to a Pellet plant near Port Pirie or 380km to a deep water port location •  25Mtpa requires a 600mm diameter Concentrate delivery pipe + Return Water Line •  Example: ✴  Minas Rio iron project, Brazil; 600mm diameter pipeline is 522km long, to transport 24.5Mtpa of concentrate •  2-3 intermediate Pump Stations •  Port Dewatering station & Concentrate Slurry  loading  via  a  floa4ng  Stockpile  vessel   storage Photo  courtesy  Royal  Resources  Ltd   •  both rail and slurry line solutions could be used to transport >25Mtpa of concentrate
  9. 9. Braemar Iron: Port for bulk loading of iron productsBiggest  challenge  to  development  of  new  mines  is  lack  of  bulk  handling  port  infrastructure:  •  Port  Adelaide:  capacity  is  only  1.7Mtpa  •  Port  Pirie:  capacity  expanding  to  8Mtpa,  but  has  very  shallow  dra^  •  Port  Bonython  (proposed):  sub-­‐op4mal;  extra  rail  distance  incurs  addi4onal  haulage  charges  Mines on the Braemar need to berth 200,000 DWT Cape Size’ vessels to export ironconcentrates & Pellets: ª  Minimum 50Mtpa port capacity ª  up to 250 ships loaded per year ª  6,000tph loading rate ª  320m long, double sided berth ª  20m draft accessible in Spencer Gulf ª  Need new deep water port in Spencer Gulf, south of Port Pirie ª  jetty length ~3km ª  Capital cost around $750 million
  10. 10. Braemar Iron: Sea Freight 5,300 nautical miles
  11. 11. Braemar Iron: Infrastructure Investment scenarios Item   Scale   Capital  Cost  A$  million   Power  &  Transmission   500MW   $2,250   Desalina4on  Water   50Gl/year   $500   Slurry  Pipelines   25Mtpa   $650   Rail  expansion  to  25Mtpa   380km   $750   Locomo4ves  &  Wagons   9  train  sets   $550   hauling  25Mtpa   Port  for  200,000  DWT   50Mt   $750   Pellet  Plant   10Mt   $1,250   Total  Capital  Investments   ±$6,650  
  12. 12. Mining  Investment  opportunity  at   Muster  Dam   on  the  Braemar  Iron  Forma4on   1,500,000,000  tonne  JORC  resource   contains  225  Mt  of  70%  Fe  in  concentrate  
  13. 13. Muster Dam, South Australia   Mutooroo  Pastoral  Sta4on  is  500km  from  Adelaide  
  14. 14. Muster Dam – 6.2km Strike length  
  15. 15. Open Pit for 10Mtpa Concentrate over 20+ years   Final  Pit  dimensions:   Length  =  5,700m  Width  =  730m  –  975m  Depth  =  320m  
  16. 16. Muster Dam Section schematic       !
  17. 17. Muster Dam Development Schedule  Ac(vity   2011   2012   2013   2014   2015   2016  Resource  Defini(on                                                                                                  Scoping  Study                                                                                                          PermiIng                                                                  Feasibility                                                                                                          Financing  Construc(on                                                                                                                          Commissioning                                                      
  18. 18. Muster Dam Magnetite   1.5  billion  tonne  JORC  resource  contains  225  Mt  of  70%  Fe  in  concentrate,   not  including  Hema4te  component  which  is  35%  of  the  Fe  mineralisa4on   JORC Estimate Concentrate Properties JORC Billion Magnetite Fe% Al2O3 % P2O5 % S% SiO2 % LOI % Category tonnes§ DTR % Inferred 1.5 15.2 69.8 0.4 0.002 0.002 2.8 -3.3 Target  for  Blast  Furnace  Pellet  fines   >60   1.0  -­‐  1.5   <0.03%  P   <0.01   <5.5   -­‐2  to  -­‐4   §  Average  Density  2.96t/m3    "DTR%  (Mass  Recovery)   =  Wt  Magne4te  (g)  /  Wt  Head  (g)  EXPLORATION  TARGET⌘:  addi,onal  2.2  –  4.2  billion  tonnes  @  15%  –  18%  DTR    ⌘Refer  earlier  Cau4onary  Statement  
  19. 19. Muster Dam      
  20. 20. Mining  Investment  opportunity  at  Muster  Dam   Interested?   Please  see  me  at  the  Minotaur  Explora4on  Trading  Table   Andrew  WoskeG   Managing  Director,  Minotaur  Explora4on  Ltd  (ASX:  MEP)