Hancocks Pilbara Projects Strengthening Australia Presented by - - PowerPoint PPT Presentation

Hancock Prospecting

Hancock’s Pilbara Projects Strengthening Australia

Presented by Bianca Rinehart Director Hancock Prospecting Pty Ltd

Metal Bulletin’s 1 4 th I nternational I ron Ore Sym posium

30 May – 1 June 2006, Hotel Grande Bretagne, Athens, Greece

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Rio Tinto’s New Shiploader, Parker Point – Dampier Port Upgrade Phase A

Photo courtesy Rio Tinto

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Lang Hancock, Gina Rinehart and Bianca Rinehart, Hong Kong

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The Hope Downs Project area

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HPPL I ron Ore Deposits. Existing Rail I nfrastructure and the Lang Hancock Railw ay

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Hope Downs will benefit from proximity to, and experience gained at the West Angelas Marra Mamba mine

Photo courtesy Rio Tinto

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The Lang Hancock Railway will connect to Rio Tinto Iron Ore’s rail line to West Angelas

Photo courtesy Rio Tinto

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Exploration/Construction camp in progress at Hope Downs 1

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Water Treatment Plant under construction

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In-fill drilling on site

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Signing of Letter of Intent with a leading Steel Mill, October 2005

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Rio Tinto’s Stockyard Extension – Parker Point, Dampier Port Upgrade Phase A Photo courtesy Rio Tinto

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Form al Project Approval for Hope Dow ns by the Prem ier of W est Australia, April 2 0 0 6

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Hancock’s Current Position Hope Downs Project under construction, estimated

commencement of production 1st Qtr 2008. Other tenements in the Iron Ore (Hope Downs) State Agreement are being jointly studied Additional Hancock tenements require further exploration and consequential development Two projects currently under way Roy Hill, advanced stage of pre-feasibility study, geographically suited for the existing rail and port at Port Hedland/ or new Port Facility at Harriet Point Mulga Downs areas, early stage of pre-feasibility study Hancock has other potential areas and areas under application

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Roy Hill Location and Proposed Infrastructure

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Roy Hill 1 Prefeasibility Study Update

Roy Hill currently has 850MT of identified mineralisation,

~550MT of which is a classified resource This significant resource has been identified in the Chichester Ranges, hosted by the Nammuldi Member of the Marra Mamba Iron Formation, and within this resource is a significant amount of Microplaty Hematite Grades vary from mid 50’s Fe for goethitic detrital material to 68% Fe for microplaty hematite mineralisation Phosphorous grades are good, ranging from 0.025 – 0.055% P Various steel mills up-dated on Roy Hill Project in 2005 and 2006

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Roy Hill 1 Prefeasibility Study Update ( cont.) Reverse Circulation Drilling on a 400x400m extensional grid has

been completed at Roy Hill. Based on the results from 400x400m grid, areas are currently being infilled to 200x200m for better definition, expected completion mid 2006 – subject to weather

Drilling Sum m ary – May 2 0 0 6 1 9 0 .0 km 2 2 2 1 .5 km 2 4 7 .5 km 2 4 7 .6 km 2 1 7 7 .5 km 2 Area Planning dependent

• n E4 6 / 5 9 2

E4 6 / 5 8 6 E4 7 / 1 3 2 6 9 holes 3 7 7 m etres

Used for lum p:fines and m etallurgical w ork

2 6 holes 7 9 0 m etres

Used for density w ork and ore classification

1 1 0 0 holes 5 2 9 6 0 m etres E4 6 / 3 3 4 E4 6 / 3 3 5 E4 6 / 5 9 2 W DC HQ RC Leases

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Current Roy Hill 1 Drill Coverage May 2 0 0 6 Extension areas drilled out to 400x400m drill spacing, completed November 2005. Infill to 200x200 in progress, now ~70% complete. Drill spacing at 200x200m

• ver initial exploration area

4 km

North

Scout lines testing for mineralisation up to 8km from outcrop

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Roy Hill 1 I nfill Drilling to 2 0 0 x2 0 0 m , Projected m id 2 0 0 6 Preliminary results from 400x400m scout drilling shows mineralisation continuing undercover from microplaty hematite outcrop at ‘Red Hill’ Both detrital and bedrock mineralisation found under Tertiary alluvial cover, warrants further investigation

4 km

North

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Roy Hill 2 – EL applications granted in August 2 0 0 5

Roy Hill 2 is located on the southern margin of the Fortescue Valley It is covered by three exploration leases – E47/1324 (221.9 km2), E47/1325 (221.6 km2), and E47/1327 (221.4 km2), giving a combined area of 664.9 km2 These areas have potential to host detrital and Channel Iron Deposit mineralisation, with material shed from the Brockman

• rebodies in the Hamersley Ranges

Hancock is organising to explore these, with aerial surveys and initial drilling prior to determining at its election further BFS and development plans.

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Roy Hill 1 Cross Section

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Roy Hill 1 Overview

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Roy Hill 1 Topography – Spinifex grassland with sparse mulga trees

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Roy Hill 1 Camp

Roy Hill 1 Exploration Camp – comprises office, accommodation, messing and ablution facilities

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Roy Hill 1 Ore Textures

Polished sections from CSIRO (Australia) study into Roy Hill ore types & textures

Microplaty Hematite

• Majority ore type
• Hard, high grade, high

density, low porosity, low LOI, low Phosphorous

• Rare, fine grained ‘blue-

dust’ hematite

100µm 100µm

Microplaty Hematite-goethite

• Common ore type
• Varying-sized hematite

plates cemented by goethite infill

400µm

Channel Iron Deposit

• Minor ore type
• Overlies bedrock mineralisation

within mixed cemented detritals

• Upgradeability under

investigation

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Roy Hill 1 High Grade Microplaty Hematite in HQ (63.5mm) Core

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200mm Wide Diameter Core Samples

• Microplaty hematite with goethitic

infill, hard, high lump ore.

• 61.0% Fe, 1.29% SiO2, 0.99% Al2O3,

0.06% P, 9.57% LOI

• Microplaty hematite with hematite

infill, moderately hard, moderate lump ore.

• 67.5% Fe, 1.09% SiO2, 0.46% Al2O3,

0.04% P, 1.40% LOI

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Roy Hill 1 Prefeasibility Surveys and Drilling ONGOING PROGRAM Hydrogeological field-work completed during 2005, groundwater

monitoring and modelling ongoing Initial flora and fauna baseline surveys completed during 2005, reports prepared and ongoing environmental surveys in progress Project referred to EPA and assessed as required PER Aboriginal Heritage Agreement in place, surveys are completed prior to each drilling campaign and discussions commencing on Native Title Agreement in 2006 Infill drilling, database compilation and resource modelling ongoing Up-date market during 2006 as work progresses Investigate infrastructure options

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Roy Hill 1 Mine Planning

• MINE PLANNING TASKS, 2007

Selectivity/Dilution and ore reserves estimation Ore blending and mining schedule Detailed pit design, overburden storage, and backfill options Mining method and equipment selection LOI’s 2007 Investigate financing options 2007

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Roy Hill Rail Terrain