Bonython Metals Group Mining, Exploration and Investment Private - - PowerPoint PPT Presentation

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Bonython Metals Group

Mining, Exploration and Investment

Bonython Metals Group

Investor Presentation

June 2010

John Hillam

CEO +61 424 441 086 johnh@cfmmedia.com www.bonythonmetals.com

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Bonython Metals Group (BMG) is currently developing a number of attractive iron-ore tenements across New South Wales and South Australia

Background

• Founded in 2009 by John Hillam to become a major Australian iron-ore producer by 2015
• Seeks to develop a number of attractive iron-ore tenements through joint venture arrangements
• Currently proving resources in a number of tenements across New South Wales and South Australia
• Forecast demand for iron-ore remains high due to China and Indian demand for infrastructure

development

Situation

• First major project is Hawsons Iron in western New South Wales

– Estimated to have greater than 1bn tonnes iron ore and potentially exceed 6bn tonne – Project located close to major infrastructure (rail & port) – Superior ore body

• Significant pipeline of additional projects with joint venture partners

– Majority located in South Australia – Highly attractive in terms of estimated resource size, ore quality and infrastructure proximity

Investment Opportunity

• Up to AUD$81 million required to take the Hawsons Iron project through the proven resource and

bankable feasibility study stages prior to commence mine operations

– Estimated four year feasibility project – Attractiveness is in securing direct supply for China based steel mills

• ASI investment will secure total of 50% equity in BMG (before dilution). Current ASI equity is 25%

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Contents

• BMG ‘s strategic direction, partners & projects
• Hawsons Iron project
• Capital / investment requirements
• Collaboration and investment opportunities

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BMG has an ambitious strategy based on attractive tenements and joint venture partners

Strategy

• BMG aims to become a major Australian iron-ore

producing company by 2015

• It will achieve this objective by consolidating existing

tenements and develop new iron-ore deposits into the largest magnetite project in Australia

• Potential to exceed 10 billion tonnes of high grade iron-
• re from NSW and SA sites
• CEO John Hillam is a qualified geologist with

considerable experience in developing magnetite deposits Joint venture partners

• Carpentaria Exploration Limited
• Giralia Resources NL
• Pacmag Metals Limited
• Helix Resources Limited
• Mega Hindmarsh Pty Limited
• Wentworth Metal Group Pty Limited

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Through the JVs, BMG has an attractive pipeline with the initial project estimated to consist of 1billion tonnes of JORC standard high grade iron ore

Increased Confidence

JORC Resource Resource Drilling Target Advanced Drilling Intensive Aeromagnetic Survey & Interpretation Hawsons (EL7208)

CAP- Fold CAP-South Limb CAP-Wonga

Tenement EL4516 Tenement EL3426 Tenement 3848 Tenement EL3956 Tenement 4022 Tenement ELA05/10 Tenement EL4395 Green -- Farm in

Project Progression Up or Out

Tenement ELA24/10

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Contents

• BMG ‘s strategic direction, partners & projects
• Hawsons Iron project
• Capital / investment requirements
• Collaboration and investment opportunities

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Burta-BMG JV Hawsons Iron project

Burta-BMG

• JV exploration and farm in agreement with Carpentaria

Exploration (80% BMG, 20% CAP)

• One of the largest magnetite exploration targets in

Australia with identified target of 2.2 – 4.8 billion tonnes

• 330 km2 tenement consisting of outcrop and shallow

magnetic anomalies extending for at least 50 km total strike length Attractive project features

• Close to infrastructure

– 60km SW of Broken Hill

• Mining workforce
• Mining services

– 40km to rail line leading to Port Pirie – 30km to NSW electricity grid – 30km to main road / interstate highway – No native title claims

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Hawsons Iron project timeline and funding requirements up to commencement of mining operations

24 months 24 months

Bankable Feasibility Study JORC Exploration A B C D B C D

Stage Equity investment (cash to CAP) Exploration funding (cash to JV) BMG JV equity position February 2010 Stage 1 AUD$5m AUD$8m (exploration to JORC standard) 40% February 2012 Stage 2 AUD$25m 51% February 2014 Stage 3 AUD$20m (Prove resource to bankable feasibility study) February 2014 AUD$23m (Delivery of bankable feasibility study) 80% TBC Commence mining

• perations

A

Indicates funds to be paid

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Contents

• BMG ‘s strategic direction, partners & projects
• Hawsons Iron project
• Capital / investment requirements
• Collaboration and investment opportunities

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BMG / Hawsons Iron JV – corporate and project and financial structure to date

Key Transaction Source of funds Recipient of Funds Equity consideration Amount of Funds Equity – Cash Transactions ASI invested for 25% share in BMG

*Includes option to acquire additional 25%

ASI BMG 25% Confidential BMG invests AUD$5m for 40% JV BMG CAP 40% AUD$5m BMG invests AUD$8m in JV BMG HI JV SPV n/a AUD$8m

C A B Hawsons Iron JV SPV CAP BMG ASI B A

ASI invested for 25% share in BMG $5m for 40%

C

$8m

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BMG corporate and project and financial structure for Hawsons Iron stages 2 - 3

Key Transaction Source of funds Recipient of Funds Equity consideration Amount of Funds Equity – Cash Transactions ASI exercises option ASI BMG 25% Confidential BMG pays CAP BMG CAP 80% $48m BMG funds exploration expenditures BMG JV SPV N/A $20m Option Transactions Option for 25% equity in Stage 2 ASI BMG 25% Confidential

F D E Hawsons Iron JV SPV CAP BMG

Option balance for OPEX

ASI E D

ASI exercises option for additional 25% $48m

F

$20m

G

Option for 25% equity

G

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Contents

• BMG ‘s strategic direction, partners & projects
• Hawsons Iron project
• Capital / investment requirements
• Collaboration and investment opportunities

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There are a number of different ways in which potential investors and partners can collaborate with BMG

FOR DISCUSSION

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