Skylark Minerals Limited · ASX:SKM
Skylark Minerals — Ironbark Gold — Investor Presentation (June 2009)
35 slides from Skylark Minerals's investor presentation, June 2009
Slide 1: Developing a Major Zinc Mine
Discovery zone: Ironbark Chief Geologist at mineralised sulphide outcrop Developing a Major Zinc Mine June 2009 ASX:IBG An Interactive Version of this Presentation is available at www.ironbark.gl
Slide 2: Disclaimer
Disclaimer • The following information is for shareholders and not intended to guide any investment decisions in Ironbark Gold Limited (Ironbark). • This material contains certain forecasts and forward-looking information, including regarding possible or assumed future performance, costs, production
Slide 3: Director’s and Management
Director’s and Management • Peter Duncombe Bennetto - Chairman Banking & Finance • Jonathan Charles Downes - Managing Director Geology and Corporate • Adrian Paul Byass - Technical Director Geology • Gregory Clyde Campbell – Engineering Director Process Engineering • David Kelly - Non Executive Dire
Slide 4: Major Shareholders
Major Shareholders Holder Name Number Held Percentage Singpac Investment Holding PTE 1 42,110,593 19.80 (Glencore International AG) 2 Bedford Resources Holdings 21,787,340 10.24 3 Cangu Pty Ltd 8,000,000 3.76 4 Kale Capital Corp 7,654,954 3.69 5 Ms Megan Roberts 7,500,000 3.53 6 Ms Katrina Downes 7,
Slide 5: Supportive Government & Secure Tenure
Supportive Government & Secure Tenure • Geologically Prospective • Home Rule – Danish/Greenland Government – negligible sovereign risk • Exploration Licence to Exploitation Licence • BMP exceptionally supportive – looking to minerals and petroleum to support move to Independence • Adjacent to deep,
Slide 6: Supportive Government & Secure Tenure
Supportive Government & Secure Tenure • Geologically Prospective • Home Rule – Danish/Greenland Government – negligible sovereign risk • Exploration Licence to Exploitation Licence • BMP exceptionally supportive – looking to Nanisivik 1.3B lbs Zn produced Black Angel minerals and petroleum to Polari
Slide 7: Spring 2008
Spring 2008 mS)
Slide 8: Summer 2008
Summer 2008
Slide 9: New camp – Fully owned camp, drill rigs and equipment
New camp – Fully owned camp, drill rigs and equipment
Slide 10: Crew from: Greenland, Canada, Denmark, Australia – 2008 Drilling
Crew from: Greenland, Canada, Denmark, Australia – 2008 Drilling
Slide 11: Citronen JORC Compliant Resource
Citronen JORC Compliant Resource* +10 Billion pounds of zinc (Zn) and lead (Pb) Medium Grade - 56.0Mt @ 6.1% Zn + Pb at a 3.5% Zn cut-off Including High-grade - 22.6Mt @ 8.2% Zn + Pb at a 5% Zn cut-off (greater than 50% indicated) Within a: Global Resource - 101.7Mt @ 4.7% Zn + Pb at a 2% Zn cut-off
Slide 12: Citronen Drilling
Extent of 2008 resource estimate area Drill Hole Tt rs kilometres RESOURCES using 3.5% Zn cutoff Esrum 20Mt @ 6.0% Zn+Pb Beach Level 2 17Mt @ 7.1% Zn+Pb Beach Level 3 | 10Mt @ 5.5% Zn+Pb Discovery 9Mt @ 5.5% Zn+Pb Global Resource 2008 Resource (Indicated & Inferred) 56Mt @ 6.1% Zn+Pb (using 3.5% Zn
Slide 13: Citronen Drilling
Citronen Drilling RESOURCES using 3.5% Zn cutoff | Esrum 20Mt @ 6.0% Zn+Pb | Beach Level 2 17Mt @ 7.1% Zn+Pb ‘Beach Level 3 10Mt @ 5.5% Zn+Pb Discovery | 9Mt @ 5.5% Zn+Pb Bm Extent of 2008 resource estimate area : = 2 | Global Resource Drill Hole Be, ira 2008 Resource (Indicated & a . Inferred) tt ;
Slide 14: Citronen Drilling techniques
Citronen Drilling • High grade and continuous ore zones allow low cost mining techniques
Slide 15: Indicative Mine Plan
Indicative Mine Plan Mineable Resource L2: 17Mt @ 7.1% Zn/Pb & L3: 10Mt @ 5.5% Zn/Pb scheduled for +10% Zn/Pb mine feed first 3 years pre- DMS treatment (20% Zu_Pb post DMS) Mineable Resource L3: 20Mt @ 6% Zn/Pb pre-DMS treatment Beach Zone South not in current mine plan, potential for ongoing explo
Slide 16: Citronen Drilling - 2009
Citronen Drilling - 2009 • Drill rigs are turning • Development work fully funded for 2009
Slide 17: Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS)
Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS) • Massive Resource Inventory - hosts high grade, shallow and continuous zones • Mine planning underway • Combination open cut and underground mining methods • 1, 2 and 3Mtpa mining scenarios under evaluation
Slide 18: Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS)
Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS) • Massive Resource Inventory - hosts high grade, shallow and continuous zones • Mine planning underway • Combination open cut and underground mining methods • 1, 2 and 3Mtpa mining scenarios under evaluation
Slide 19: Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS)
Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS) • Massive Resource Inventory - hosts high grade, shallow and continuous zones • Mine planning underway • Combination open cut and underground mining methods • 1, 2 and 3Mtpa mining scenarios under evaluation
Slide 20: Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS)
Targeting 20Mt @ 12% Zn+Pb Mill Feed (post DMS) • Massive Resource Inventory - hosts high grade, shallow and continuous zones • Mine planning underway • Combination open cut and underground mining methods • 1, 2 and 3Mtpa mining scenarios under evaluation
Slide 21: Processing Breakthrough ~ 100% ore upgrade
Processing Breakthrough ~ 100% ore upgrade • Simple gravity sorting (DMS) removes barren material (2.7 t/m³) from heavy ore (~5 t/m³)
Slide 22: Mining Process
Mining Process
Slide 23: Mining Process
ing Process Underground and open pit mining 3 million tonnes per annum mine feed Dense Media Separation (DMS) plant
Slide 24: Mining Process
Underground and open pit mining 3 million tonnes per ana mine feed Dense Media Separation (DMS) plant 1.5 million tones per annum process plant feed 16% Zn+Pb }
Slide 25: Production Advantages
Production Advantages • Ore can be upgraded 100% cost effectively using gravity sorting (DMS) • DMS allows half the required processing plant, tailings dam, power supply etc reducing capital costs to produce the same amount of metal • Potential 20Mt @ +12% Zn+Pb mill feed post DMS from 56Mt @ 6.1% Z
Slide 26: Industry Proven & Simply Process Flow Sheet
Industry Proven & Simply Process Flow Sheet
Slide 27: Logistics
Logistics • Proximity to numerous smelters in Europe and North America • Benign environment – warmer than Yellowknife (mining centre in Canada) • Permanent rock with minimal precipitation (0.4m per annum) • Protected deep water fjord – 0.5m tidal variation • Conceptual barge to ship loading high val
Slide 28: Excellent Metallurgical Characteristics
Excellent Metallurgical Characteristics • 50% Zn concentrate with +85% recovery after first pass work • Saleable to wide range of smelters with target concentrate grade of 60%
Slide 29: Production Rate Options
Production Rate Options 1, 2, 3 mtpa Mine 0.5, 1, 1.5 mtpa mill feed targeting open pit / underground mining scenario’s
Slide 30: Life of Mine – Financial Statistics ($US)
Life of Mine – Financial Statistics ($US) Annual Mining Rate 1Mtpa 2Mtpa 3Mtpa Ore Mining $0.19 $0.21 $0.22 DMS $0.01 $0.01 $0.01 Power (surface) $0.04 $0.04 $0.04 Processing Costs $0.06 $0.07 $0.07 Admin & Other $0.01 $0.01 $0.01 Concentrate Transport $0.03 $0.03 $0.03 Pb Credits -$0.07 -$0.07 -$0.
Slide 31: Zinc Industry Estimated ‘C1’ Costs Net of By-products - 2008
Zinc Industry Estimated ‘C1’ Costs Net of By-products - 2008 120 100 Net C1 Cash Cost (c/lb) 80 60 40 20 0 0 10 20 30 40 50 60 70 80 90 100 Cumulative Production (%) (Source: Anglo American Presentation, 20/01/09) *Excluding pre-strip mine scheduled for 2014 closure Ironbark treatment charges estima
Slide 32: Market Cap (A$c/lb) Zinc Equivalent Resources
Market Cap (A$c/lb) Zinc Equivalent Resources 4 3.5 3 2.5 A$c/lb 2 1.5 1 0.5 0 KZL JML PEM TZN BTR PDZ CBH OVR CSE TRO IBG
Slide 33: Exploration Targets
Exploration Targets • First mover advantage • Numerous large exploration targets – almost every drill hole is mineralised • Defined ore bodies are open ended • SEDEX deposits typically occur in district scale camps of multiple clusters • 100% owned exploration licenses’ over 2,500 km2 of prospective
Slide 34: Ironbark Drilling 2008
Ironbark Drilling 2008 • The current JORC compliant resource for Citronen (Nov 2008) is detailed as follows: 55.8 million tonnes at 6.1% zinc (Zn) + lead (Pb) Indicated resource of 29.9Mt @ 5.8% Zn and 0.6% Pb Inferred resource of 25.9Mt @ 5.0% Zn and 0.7% Pb Using inverse distance squared (ID²) int
Slide 35: Becoming a Major Base Metal Miner
Becoming a Major Base Metal Miner Citronen camp 2008 The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr A Byass, B.Sc Hons(Geol), B.Econ, FSEG, MAIG an employee of Ironbark Gold Limited. Mr Byass has suff