Eastern Resources Limited · ASX:EFE
Eastern Resources — Eastern Iron — Investor Presentation (March 2008)
24 slides from Eastern Resources's investor presentation, March 2008
Slide 1: Iron Ore Comes to NSW
Iron Ore Comes to NSW For Energy, Scrap Availability and Product Markets. What if there was a bulk source of iron ore in eastern Australia? …iron’s new horizon
Slide 2: The right metal, location, infrastructure
• The right metal • “Low Cap” location • Existing infrastructure • Innovative thinking • Rapid development • New horizons March 2008 Peter Buckley, Managing Director …iron’s new horizon
Slide 3: Executive Summary
Eastern Iron - Snapshot EXECUTIVE SUMMARY • ASX Listing - June Quarter 2008 • PlatSearch NL spin-out of iron ore assets • Minimum subscription $2.5 million • Maximum Subscription $5.0 million • 80% interest in 15 Exploration Licences • Can earn 100% (PTS retains a 2.0% NSR) Cobar Project • Potential
Slide 4: Eastern Australia's 1st Bulk Tonnage Iron Ore Project
Eastern Australia’s 1st Bulk Tonnage Iron Ore Project • Early stage sampling and assay results indicate that an ex-mine product of >50% Fe is feasible • Ore characterisation studies by the University of Western Sydney and limited crush and grind tests suggest there is scope for further low cost bene
Slide 5: Because maghemite is magnetic it can be upgraded on-site
BECAUSE MAGHEMITE IS MAGNETIC IT CAN BE UPGRADED ON- SITE USING MAGNETIC BENEFICIATION
Slide 6: Fifteen granted exploration licences in the Lachlan Fold Belt
FIFTEEN GRANTED EXPLORATION LICENCES LOCATED IN THE LACHLAN FOLD BELT NEAR SIX OPERATING MINES …iron’s new horizon
Slide 7: Maghemite Chemistry = Hematite Chemistry
Maghemite Chemistry = Hematite Chemistry Fe2O3=Fe2O3 …iron’s new horizon
Slide 8: Work Program Completed
Work Program Completed • Specialist processing of aeromagnetic data • Aircore drilling of selected targets • Simple barrel magnet separation tests • Further crush and reseparation Tests (Metcon Laboratories, Sydney, NSW) • Bulk oxide and trace element analysis (Genalysis Laboratories, Perth WA) • In
Slide 9: Maghemite is Magnetic
Moomba - Sydney Maghemite is Magnetic Gas Pipeline • Easy targeting (channels can be precisely located using NSW government, high-quality aero-magnetic data) • Magnetic nature enables onsite upgrade using simple magnetic beneficiation Specialised processing of available aeromagnetic data makes Easte
Slide 10: Typical aircore drill section across a palaeochannel
TYPICAL AIRCORE DRILL SECTION ACROSS A PALAEOCHANNEL Material is poorly consolidated iron rich pisolite …iron’s new horizon
Slide 11: Typical aircore drill section across a palaeochannel
TYPICAL TYPICAL AIRCORE AIRCORE DRILL DRILL SECTION SECTION ACROSS ACROSS AA PALAEOCHANNEL PALAEOCHANNEL Iron occurs as maghemite Fe2O3 pisolite rich gravel in shallow (<20m) channels 200 - 500m wide. Easy and cheap to extract. …iron’s new horizon
Slide 12: Magnetic separation concentrate
Concentrate launder ‘Outlet Magnetic Outlet Concentrate Tailings
Slide 13: Maghemite
Maghemite + Voids Pure Maghemite overgrowth * ~ AAs ..iron’s new horizon Iron Limited Ex e
Slide 14: Ex mine lump grades approaching DSO
“Ex mine” lump grades approaching DSO Prospect Fe% CaFe% Fe2O3% Al2O3% SiO2% P% S% LOI% Powerline 42.86 44.59 61.28 10.74 20.24 0.029 0.079 3.89 Belah 47.79 49.53 68.33 10.41 14.73 0.034 0.032 3.51 Carpenters 44.12 45.90 63.08 11.77 17.86 0.03 0.03 3.90 Gadsby 50.78 52.48 72.6 8.2 12.77 0.028 0.03 3
Slide 15: Large size potential
0 5 10km Large size potential Wendoline EL 6959 contains a palaeochannel target some 25 km x 400m x ~10m deep. Previous explorer BP Minerals reported surface magnetic iron lag samples to 56% The Wendoline licence is one of 15 granted licences and Eastern Iron has identified over 1,000 linear kilomet
Slide 16: Over 1,000 km of iron rich palaeochannels
Location of Wendoline Palaeochannel Target There are over 1,000 km of iron rich paleochannels in the Cobar and Mainline Project areas. Some may carry alluvial metals eg tin, gold and platinum …iron’s new horizon
Slide 17: Projects are in infrastructure-rich NSW
EASTERN IRON Projects are in infrastructure-rich NSW •Extensive road network •Rail to Newcastle and Main Line to Port Kembla •Multiple branch lines and others easily refurbished •Flat topography, no drill and blast, no stripping •Supportive, mining economy and workforce •Existing port facilities and
Slide 18: Cobar and Main Line NSW versus projects further west
• Drill and blast • Overburden Some projects further west = • No roads • No rail • No loader • No Port • Free digging • Surficial Cobar and Main Line NSW = • Roads • Rail • Loader • Two port options …iron’s new horizon
Slide 19: Cobar Project sustainable solutions
Cobar Project …sustainable solutions • Invasive woody weed • Pasture degradation • Drought • Rural unemployment • Mines vulnerable to metal price fluctuations • Native plant regeneration • Pasture improvement • Drought proofing • Rural employment • Long term mining operation with stable workforce “…
Slide 20: Project Type and Market Cap comparison
Project Type Market Cap* Maghemite CID and DID $9.2 Million Onsite beneficiation (assuming full subscription) “ex-mine” grade = 45% - 53% Fe Hematite CID and DID Onsite beneficiation $142 Million “ex-mine” grade = 45% - 55% Fe Magnetite Iron sands Onsite beneficiation and Pig Fe $81 Million “ex-mine
Slide 21: Executive Summary - Management
EXECUTIVE SUMMARY - Management Glenn Goodacre, BA (Macquarie) – Non-Executive Chairman of the Board Investor in resources and private equities A team of corporate and exploration achievers with Extensive boardroom experience Glenn brings broad business strategy and commercial boots, hammer (and magn
Slide 22: The right metal, premium location, existing infrastructure
• The right metal • Premium location • Existing infrastructure • Innovative thinking • Rapid development • New horizons Peter Buckley - Managing Director Suite 3, Level 1, 80 Chandos Street, St Leonards NSW 2065 Telephone: +61 2 9906 7551 Facsimile: +61 2 9906 5233 E: [email protected] W: www.
Slide 23: Disclaimer
DISCLAIMER This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the co
Slide 24: …iron’s new horizon
…iron’s new horizon