GUINEA IRON ORE LIMITED giolimited.com World class Iron Ore 1100 Avenue des Canadiens de In Guinea, West Africa. T 514 868 9635 Montreal, Suite 243 info@giolimited.com Montreal, QC H3B 2S2, Canada
- Forward Looking Statement Certain information contained herein regarding Guinea Iron Ore Limited (“GIO”) a private Canadian corporation, including management’s assessment of future plans and operations, may constitute forward looking statements under applicable securities law and necessarily involve risks, including but not limited to risks associated with mining exploration, operating costs, production costs, volatility of share prices, currency fluctuations, imprecision of resource and reserve estimates, environmental risks and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in any forward- looking statements. Plans, intentions or expectations disclosed in any forward looking statements or information should not be read as guarantees of future results or events, and will not necessarily be accurate indications of whether or when or by which such results or events will be achieved. Except as required by law, GIO expressly disclaims any intention and undertakes no obligation to update any forward looking statements or information as conditions change. The historical resource estimates and grades reported in this presentation were taken from reports prepared by Kumba Iron Ore (subsidiary of Anglo American), and GIO is not permitted to report the results as NI 43 -101 conformable. Therefore, GIO is required to make the following disclaimer: The resource results and grades reported by Kumba Iron Ore and subsequently referenced by GIO are to be treated as historical resources and grades and should not be relied upon. They have not been verified by GIO and are presented for general information purposes only.
- GIO at a Glance
- Projects Locations GAOUAL Project GLOBAL AMC Bauxite Bauxite ALCAN Bauxite RUSAL BELLZONE Fria RUSAL Kalia Kindia FARANAH BOROKORO Project Project KOUYAH BELLZONE AFRICAN Minerals RIO TINTO Application in Forecariah Tonkolili Simandou Process by GIO BEYLA GIO’s Properties Project VALE Zogota GIO’s ongoing Licence Applications BHP Nimba Other Companies Significant Projects
- Comments on Iron Ore Market • China is the marginal producer in almost every metal and bulk commodity Market • Chinese domestic output continues to be crucial to Iron Ore and flexes to balance the Market. 2013 will be another year of pulling this on in H1 and pushing it off in H2 according to a Macquarie Bank’s report of March 2013 • Cost inflation pressures and grade depletion are structural challenges for the industry • Execution risk around new projects means high-cost Chinese domestic ore is required to balance the Market for the next few years, setting a high floor to prices • CISA forecast imports of Iron Ore at 770Mt in 2013, up 3.5% • Metalytics forecast 142.51USD/tonne average in 2013, up from 129USD/tonne in 2012 • China’s steel industry is overly reliant on a huge chunk of high cost domestic supply that cannot be replaced readily in the short term
- Gaoual Project – DSO Iron Ore
- Gaoual Project - Geology • High grade FeT mineralization on surface in Ordovician structures • 37 drill holes made by previous licence holder, in small area of the permit • Geological mineralized layer dipping at a 15 degrees angle to the SW • Enriched hematite on surface • XRF handheld field study showing samples with 70+% Fe on several areas
- Gaoual Project – Drill Hole OR4-BH010
- Gaoual Project – Drill Hole OR4 Continuity
- Gaoual Project – Infrastructure
- Gaoual Project – Infrastructure
- Gaoual Project - Economical Positioning Market positioning of GIO’s product : • DSO product at 56$/tonne (in-house calculation*) • Product after process of Phosphorous removal *In-house calculation base on at 68$/tonne (in-house calculation*) - freight rate = 25$/t and other regular fees Note: All this material comes in above Macquarie’s Bank long term Iron price GIO after P removal GIO DSO Source: Macquarie Bank, March 2013
- Gaoual Project - Highlights • 867km2 Licence General • Open pit mining Characteristics • Low elevation changes • Large scale 40km by 4km in average potential mineralized area potential deposit • 3-5Bt potential • High grade potential of up to 59% DSO product available for • Deleterious material concentration of open pit mining 0.4% P; 5.8% Al2O3; 4.8% SiO2. Metallurgy tests with • Final product after processing : 68.1% Fe; 0.026% P; very promising results 0.98% Al2O3; 0.33% SiO2 for a commercial scale • Premium product after processing • 56$/tonne for DSO material CFR price • 68$/tonne for premium material Mining cost • 6 to 7$/tonne • 150km from available railway Infrastructure Advantages • 250km from Kamsar port (including 150km of existing railway)
- Faranah Project - Information • Licence area of 573km2 • South from Bellzone’s Kalia project (6.16 billion tonnes of magnetite averaging 21.8% FeT*) where the China Investment Fund (CIF) is contributing US$2.7 billion for a 286 km rail to Kalia • Assay results on grab samples show up to 37% FeT • 2012 exploration program includes an airborne magnetic survey and extensive bedrock sampling in areas of interest • Recent work on the Faranah property located magnetite Close up of a banded iron formation bearing schist. with visible hematite crystals.
- Beyla Project - Information • Licence area of 523km2 • Grab samples measure up to 55% FeT. • 2012 exploration program includes an airborne magnetic survey and extensive bedrock sampling in areas of interest • Only 25 km South of Rio Tinto and BSGR/Vale’s deposits (up to 8 billion tonnes) at Simandou. • Vale paid BSGR (Simandou licence holder) US$2.5 billion for 51% interest in BSGR in April 2010. Iron rich sediments exposed on the Beyla licence project.
- Borokoro Project - Information • Licence area of 271km2 • Previous information from the government stating of a 400Mt resource in the South part of the property • Assay results on grab samples show 42 to 52%Fe and 58 to 75%Fe2O3
- Comments on Iron Ore Market Mining Infrastructure projects: Ports and Railway (Dian-Dian, Transguineen, BHP, Conakry – Niger and other crossovers. Ports en projet (Dian-Dian, BHP, Rio Tinto Projet Transguineen Chemins de fer miniers en projet (Dian-Dian, BHP) Chemins de fer miniers a projeter Chemin de fer commercial du Niger Chemin de fer commercial a projeter Chemins de fer existants Ports existants
- Partnership with SOGUIPAMI http://soguipami-gn.com SOGUIPAMI 10% carried interest partner in GIO (BVI) Ltd. SOGUIPAMI ( So ciété Gui néenne du Pa trimoine Mi nier), Guinea’s state mining heritage fund, has been specifically created by a law to manage all of the shares held directly or indirectly by the state in mining companies, industrial and service companies active in mining related sectors, which includes mining infrastructure, transportation, commercialisation and marketing of minerals and by- products, loans and investments. How will GIO work together with SOGUIPAMI for our mutual benefit? SOGUIPAMI has stated that it considers GIO an ideal partner because the Guinea Government is confronted with a lot of questions about the future of the world-class Guinean projects which remain without precise solutions. Consequently, after hearing the news that GIO had solved the deleterious materials (phosphorous) issue associated with the iron ore to be mined at its Gaoual property, SOGUIPAMI immediately stated to GIO that they were encouraged and gratified by the news because to them this evidenced the hope that there will be iron ore production by junior miners, with iron ore deposits similar to those of Simandou, Nimba and Zogota, being exported from Guinea within a relatively short period of time. Therefore, SOGUIPAMI has engaged in partnering with an innovative junior mining companies, such as GIO, who demonstrated to them that they are worthy of being granted world-class licenses, which previously were the sole domain of the multinationals. It is clear that the share participation by SOGUIPAMI in GIO will strengthen its support for the company and the licences it holds and maximize its efficiency and potential to carry out projects in the Republic of Guinea.
- China steel demand – robust over long term • Significant urbanisation to continue • China’s cumulative steel consumption per capita remains well behind developed world • This is despite substantial growth over the last decade • Rio Tinto estimates 4% annualized growth in steel demand this decade • Crude steel production in China expected to peak towards 2030 Source: Rio Tinto • Cost Supply Curve fundamentals kick-in • Rapid recovery in Iron Ore price over Market history Source: Platts Price Analyzer
- Other Mining Interests in Guinea
- About Guinea
- Mining in Guinea
- Iron Ore
- Global Supply of Iron Ore
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