Mgx Resources Limited · ASX:MGX
Mgx Resources — Aztec Resources — Metal Bulletin Iron Ore Conference 2005
27 slides from Mgx Resources's conference presentation, Nov 22, 2005
Slide 1: Metal Bulletin Iron Ore Conference: Koolan Island Iron Ore Project
Metal Bulletin Iron Ore Conference 22 November 2005 Koolan Island Iron Ore Project
Slide 2: Contents
Contents • Location • Project Outline • Project Schedule • Corporate Overview • History • Equipment • Geology • Resource • Development Data
Slide 3: Location
Location Koolan Island Project • Western Kimberley Region WA WA Map • 2,000km NNE of Perth • Nearest towns: Derby 150km S and Broome 320km SW
Slide 4: Koolan Island
Koolan Island qT 580000 mE 570000 mE A'" opencutmine Cockatoo Island Koolan Island A — ~~ (Portman Ltd) (Aztec Resources Ltd) . N I 8220000 mE ea Mullet N Ore Body Cockatoo . Ore Body XN : Tarrant Island Roberts Idand NS , Usborne Island 655 Easter leon ia. som Ore Body n ms Ore Horizon’ ~ "+= =e Ac
Slide 5: Project Outline
Project Outline • Brownfields development • Based on Main orebody, supplemented by four satellites, Mullet, Acacia, Eastern and Barramundi • Deepwater port able to accommodate panamax vessels to 75,000 dwt • Resource sufficient to support 4Mta operation for 10+ years
Slide 6: Project Schedule
Project Schedule (As Anticipated 14/11/2005) • BFS completed August 2005 • Environmental Recommendations in Approval stage • Land Access Agreement with Traditional Owners being completed • Mining Lease Grant expected early 2006 • Construction Commencement Q1, 2006 • Plant Commissioning Q2, 2006 • Wh
Slide 7: BFS Highlights
BFS Highlights • Bankable Feasibility Study (BFS) completed, with positive results, encouraging the Company to proceed with mine development, subject to Government approvals, formalisation of off-take contracts and Board approval of funding arrangements • Initial capital costs of A$108 million, incl
Slide 8: Corporate Overview
Corporate Overview • Aztec Resources Limited is a public company listed on ASX and the London Stock Exchange’s AIM market • Market Capitalisation: A$85,000,000 • 497,700,000 + shares • Major Shareholders: Cambrian Mining plc…………………………………...18.7% National Nominees Limited…………………………….6.3% ANZ Nominees
Slide 9: History – Pre BHP
History – Pre BHP • Ore deposits on Koolan and Cockatoo Islands discovered in 1880 • First mining leases granted, small scale mining commenced 1907 • First attempt at large scale mining in 1936 when Yampi Sound Mining Company (a consortium including Nippon Mining Co) announced intention to export to
Slide 10: The BHP Years 1965 - 1993
The BHP Years 1965 - 1993 • By the conclusion of mining in 1993, 68Mt ore had been produced • Shipment grade declined from >67%Fe for the early Main pit production to 65% - 65.3%Fe for the final blend • On closure, all infrastructure removed or buried, stockpiles and roads ‘moonscaped’ and the Main
Slide 11: The Aztec Era
The Aztec Era • Aztec granted tenements in 2003 • Notice of Intent approved January 2004, drilling commenced February 2004 • Camp established on Koolan Island August 2004 • Data collection for BFS completed February 2005 • Land Access Agreement negotiations commence with Traditional Owner’s March 20
Slide 12: Koolan Island Mine & Infrastructure Layout
Koolan Island Mine & Infrastructure Layout
Slide 13: Mining Operations
Mining Operations • Contractor-based operation • Conventional open-pit operation, rotary drills, 200t hydraulic backhoes, FEL’s, rear dump trucks and ancillary plant
Slide 14: Transportation System
Transportation System • Truck haulage to ROM pad, primary crusher and stockpiles • Conveyor to shipping stockpile • FEL reclaim from shipping stockpile • Conveyor to sampling station, wharf and shiploader
Slide 15: Port Facilities
Port Facilities • Steel-pile wharf able to accept Panamax vessels up to 75,000 dwt • Berth pocket 16m draft • Fixed, luffing shiploader, capacity 3,000tph • 20m minimum draft in departure channel - no dredging required • Vessel berthing/departure assisted by tugs
Slide 16: Regional Geology
Regional Geology • Kimberley Basin is a large structural basin occupying most of the Kimberley region with sediments of Lower- Mid Proterozoic age dominant • The Yampi ore bodies lie at the western end of the NW – SE trending King Leopold Mobile Zone which forms the south western border of the Kimbe
Slide 17: Local Stratigraphy
Local Stratigraphy Pentecost Sandstone White well sorted quartz sandstone, grey siltstone • The Kimberley Group comprises essentially a succession of Yampi Member sandstones, quartzite's and Pink-brown arkose and feldspathic sandstone; minor siltstone, hematitic quartz sandstone, glauconitic siltsto
Slide 18: Local Structure
Local Structure RESOURCES LIMITED z TIMIE TORRE TRE THRE SERTRE TERE § z eine ent i 2 ~ : = a errr SM NC QW i (ti(“‘éw g ® Kimberley Group Yampi Formation — - Bedding Dip and Strike a Thrust Hematite Rich Zone i st Bedding Trace i || ll ——=— Synformal Axis |__| Elgee Siltstone c= Fait Warton Quartzi
Slide 19: Main Ore Body
Main Ore Body r ne be em e on o st M st d pi lt n Si Sa m Ya e on ge t ar El W
Slide 20: Main Ore Body
Main Ore Body yaiie 28 65.3) 5.6) 0.47| 38 669 13 06 24.2, 66.4 2.2) 0.71 3668.3. 1.1, 0.74] 5869.5) 04 0.1 244.9 68.2 1.1 0.7.
Slide 21: Eastern-Barramundi Ore Body
Eastern-Barramundi Ore Body
Slide 22: Eastern-Barramundi Ore Body
Eastern-Barramundi Ore Body
Slide 23: Mullet-Acacia Ore Body
Mullet-Acacia Ore Body RESOURCES LIMITED
Slide 24: Mullet-Acacia Ore Body
Mullet-Acacia Ore Body RESOURCES LIMITED Gti fiom | ole_id Fe_pct|Si0z_plA203 ori Hole (HP) i i i Fe i 18) 20] 64.6 6.6|_—0.25] ETT] open Pit outnes |7200n Mule Local Gid Boag 0 depres ie * MOB4 6 50, 65.1) 5.3) 0.83) ioe id ot eeeg| MUB15 4 28 65.5) 3.4) 1.31] MUB16 26 42) 62.0| 6.5) 2.16) eric wo
Slide 25: Resource Drilling
Resource Drilling “'8215000N © Aztec Drillhole m ‘ % 3. BHP Drillhole . : \ & Open Cut Pit <= Hematite Unit KIMBERLEY COAST =a $80000E SBSOOOE
Slide 26: Resource Estimates
Resource Estimates 55% Fe cut off grade (as at 14 Oct 2005) Orebody Tonnes Fe SiO2 Al2O3 ('000) % % % Main 35 600 66.3 3.3 0.7 Eastern-Barramundi 7 900 60.9 7.6 2.9 Mullet-Acacia 6 200 61.2 10.3 1.0 Acacia-East 3,700 58.5 15.5 0.6 Total 53,400 64.6 5.6 1.1
Slide 27: Koolan Island Key Mine Development Dates
Koolan Island KEY MINE DEVELOPMENT DATES (As Anticipated 14/11/2005) Date Activity January 2006 Mobilise first mining fleet Feb - May 2006 Establish mining facilities and roads, initial clearing Mobilise remaining fleet Commence mining Mullet/Eastern June 2006 Waste stripping at Main Commence seawal
Aztec Resources — Metal Bulletin Iron Ore Conference 2005 on 6ix