June 2019 High grade DSO iron ore with near-term re-evaluation - - PowerPoint PPT Presentation

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June 2019 High grade DSO iron ore with near-term re-evaluation - - PowerPoint PPT Presentation

Investor Presentation September 2017 June 2019 High grade DSO iron ore with near-term re-evaluation potential O V E R V I E W O V E R V I E W Disclaimer T his corporate presentation contains forward looking statements which constitute


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Investor Presentation September 2017

High grade DSO iron ore with near-term re-evaluation potential

June 2019

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Disclaimer

Corporate Presentation • June 2019

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This corporate presentation contains forward looking statements which constitute “forward looking information” within the meaning of securities legislation and “Forward Looking Statements”. All statements included herein, other than statements of historical fact, are Forward Looking Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward Looking Statements. The Forward Looking Statements in this corporate presentation may include, without limitation, statements about the company’s plans for its exploration projects and future exploration, evaluation and development including drilling activities, quantification of mineral resources, feasibility studies, the construction and development of the Bekisopa Project, the company’s business strategy, plans and outlook; the merit of the company’s mineral properties; mineral exploration potential, timelines; the future financial or operating performance of the company and cost guidance; expenditures; approvals and other matters. Often, but not always, these Forward Looking Statements can be identified by the use of words such as “estimate”, “estimated”, “potential”, “planned”, “open”, “future”, “assumed”, “projected”, “calculated”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “expected”, “offset”, “limited”, “contained”,“reflecting”,“containing”,“conduct”,“increasing”,“remaining”,“to be”, “periodically”, or statements that events, “could” or“ should” occur or be achieved and similar expressions, including negative variations. Forward Looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any results, performance or achievements expressed or implied by the Forward Looking

  • Statements. Such uncertainties and factors include, among others, changes in general economic conditions and financial markets; changes in commodity prices;

technological and operational hazards in mine development activities; risks inherent in mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal recoveries; construction delays, the timing and availability of financing; governmental and other approvals; political unrest or instability in countries where IPR is active; labour relations issues; as well as those factors discussed under “Risk Factors” in the Company's Subscription Deed. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward Looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward Looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to estimates of future exploration success; expectations on economic viability of any mineral resource identified; expectations regarding future construction costs; expected trends in mineral prices and currency exchange rates; that the company’s activities will be in accordance with the company’s public statements and stated goals; that there will be no material adverse change affecting the company or its properties; that all required approvals will be obtained; that there will be no significant disruptions affecting operations, including the development and construction of the Bekisopa Project or any other project the Company seeks to advance, and such other assumptions as set out herein. Forward Looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward Looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that Forward Looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward Looking Statements. This corporate presentation also refers to non-IFRS financial measures, such as future guesstimate of cash cost per tonne of processed ore and guesstimates of operating cash flow. These measures do not have a standardized meaning or method of calculation,

even though the descriptions of such measures may be similar.

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Overview

Multi asset iron ore portfolio with Short term resource target of +100Mt DSO at Bekisopa

Corporate Presentation • June 2019

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STRONG ASSET BASE SUBSTANTIAL HISTORICAL WORK SUPPORTIVE LOCATION HIGHLY EXPERIENCED TEAM RAISING TO EXECUTE STRATEGY IRON ORE MARKET RECOVERY

  • Multi asset high quality iron ore portfolio in Madagascar
  • Flagship Project – Bekisopa - high grade Lump Direct Ship Ore (DSO)
  • Targeting +100Mt initial resource
  • ~US$15M spent to date, by French BRGM (1959-62) and UNDP (1976-78)
  • 2004-10 airborne and ground geophysical surveys confirmed iron ore targets
  • At surface drill results; 19m@65%Fe, 12m@66%Fe, 18m@65%Fe
  • Price rebounded strongly with clear trends supporting demand
  • Iron ore mine capacity reductions in China supports iron ore price stability
  • Demand for high grade lump DSO creating larger premium
  • Proximity to major iron ore markets in India, Middle East and China
  • Madagascar placed in MineHuttes top ten mining jurisdictions
  • Operating neighbours include Rio Tinto and Sherritt International
  • Boasts a wealth of experience across natural resource and financial sectors
  • 43 years ex-Rio Tinto with proven project execution ability
  • Focussed exploration programme to demonstrate viability for large tonnages
  • Raising U$5 million to fund exploration program to define both NI 43-101

and Australian JORC Resource

  • Supportive shareholder base including Baker Steel
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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Team

Strong incentivised team focussed on delivery

Corporate Presentation • June 2019

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Douglas Wu - Non-Executive Chairman

  • Founder and CEO of Whitwell Partners, a merchant banking firm
  • Previously CEO of G2 Natural Resources & Managing Director of Rothschild Emerging Markets LLC/

Croesus Capital Management, where he managed a natural resources portfolio

Paul Bibby - Chief Executive Officer

  • 35+ years experience. 24 years across Rio Tinto organisations including Kaltim Prima Coal

(Indonesia) and Hamersley Iron (as Mineral Processing Manager), Zinifex, Nyrstar (Chief Development Officer), OceanGold (CEO) and as CEO to smaller ASX listed Companies John Madden - Chief Financial Officer

  • 35+ years experience. 22 years across Rio Tinto Finance and Business Analysis including

Freeport (Irian Jaya), Morobe Consolidation Goldfields, Indophil Resources NL, Ok Tedi Mining. Founding Director of Indian Pacific Resources. Stephen Fabian - Non-Executive Director

  • 25+ years of experience. Previous roles with County Natwest, Ferrous Resources, South American

Ferro Metals

  • NED with Aquilla Resources, Chairman of Brazil Tungsten and adviser to Baker Steel Resources Trust
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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Indian Pacific Resources

640 km2 iron ore tenements across three projects in Madagascar

Corporate Presentation • June 2018

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Flagship Project

Bekisopa

High Grade Lump Iron Ore prospect Tratramarina and Ambodilafa are upgradable magnetite iron

  • re prospects
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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Corporate Presentation • June 2019

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General Bekisopa landscape showing

  • utcropping

high grade +65% iron ore

  • n gentle

undulating land. Lump high grade +65% Iron Ore on surface and identified in pits and trenches down to +5 meters. .

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Madagascar

Mineral rich and a World Class mining jurisdiction

  • World Bank sponsored mining code

revised in 1999

  • Operators include Rio Tinto, Sherritt,

Bass Metals and Wuhan Iron & Steel

  • Stable operating environment with

supportive government, at both national and local levels

  • 400km
  • ff

the east coast

  • f

Mozambique in the Indian Ocean

  • Deep water ports to major iron ore

markets in India, Middle East, Asia and China

Corporate Presentation • June 2018

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Company Listing Project Mineral Market Capital Rio Tinto LSE/ASX: RIO Fort Dauphin Mineral Sands U$67b Sherritt

International

TSX:S Anbatovy Nickel, Cobalt U$74m Bass Metals ASX:BSM Graphmada Graphite U$15m Bushveld Minerals AIM:BMN Imaloto Coal U$404m Wuhan Iron & Steel Co

SHA:600005

Soalala Iron Ore U$5.3b

The world bank and IMF comment on the industry trend: “Should this trend be

maintained, Madagascar will soon become a resource-rich country as defined by the IMF .”

Corporate Presentation • June 2019

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Iron Ore Price

Strengthening and increased premiums creates opportunity

Corporate Presentation • June 2019

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High Grade 65% fines at ~U$123 plus Lump premium

adds U$37 for

High Grade ore as seen at Bekisopa.

High Grade price increased since mid 2016 as China demands HG

  • re for lower steel

making costs and improved environmental

  • utcomes.

https://www.businessinsider.com.au/iron-ore-price-china-inventories-global-steel-production-2019-5/amp

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Iron Ore

  • Demand is predicated on China’s economy and

steel production as China is the main importer.

China’s steel production up 10.3% YTD, China’s iron ore stockpiles down 21% YTD.

  • Demand for quality high grade iron ore

increasing as China looks to maximise efficiency and reduce emissions.

  • Premium for Australian iron ore lump above the

benchmark has soared by 12.1% to U$37/tonne

  • Looking forward - “In an oversupplied

market, you’ll see that flight to quality” – Julian Kettle, Wood Mackenzie Ltd.

Corporate Presentation • June 2018

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Iron Ore - Steel production drives demand for iron ore.

Increased price and premium for lump DSO provides opportunity

Corporate Presentation • June 2019

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https://www.businessinsider.com.au/iron-ore-price-china- smog-alert-2019-3/amp March 5, 2019

600 800 1000

2014 2015 2016 2017 2018 2019 2020

Consumption Production China’s Steel Consumption and Production

Million tonnes

500 1000 1500

2013 2014 2015 2016 2017 2018 2019 2020 Imports Production Million tonnes

China’s iron ore imports and production

Sources: World Steel Association (2018) and Bloomberg (2018)

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Indian Pacific Resources Project Summary

Multi asset portfolio with rapid development path

Corporate Presentation • June 2019

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Bekisopa

  • Area: 425km2
  • Licence: 6 permits
  • Ownership: 75%
  • Location: 220km from coast
  • Quality historical work
  • ~65% DSO iron ore
  • >5km strike
  • Potential for significant high

grade tonnage

Tratramarina

  • Area: 162.5km2
  • Licence: 5 permits
  • Ownership: 100%
  • Location: 16km from coast
  • ~35% upgradable iron ore
  • 2.5km strike
  • Low CAPEX and OPEX
  • Potential for high margin long

term operation

Ambodilafa

  • Area: 52.3km2
  • Licence: 3 permits
  • Ownership: 90%
  • Location: 45km from coast

~35% upgradable iron ore

  • 5km strike
  • Future project opportunity

Madagascan Iron ore

Total 640km2 of prospective iron ore tenements

FLAGSHIP PROJECT Future Opportunity Future Opportunity

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Bekisopa Business Case

Targeting +100Mt of high-grade DSO in 12 months

Corporate Presentation • June 2019

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HISTORICAL WORK EXTENSIVE MINERALISATION HIGH GRADE DSO MINERAL RESOURCE DEFINED DEVELOPMENT FAVOURABLE STRIP RATIO

  • Trenching ~4000m, Pits ~564m, >2600 samples analysed, 24 drill holes for ~600m.

At surface drill results; 19m@65%Fe, 12m@66%Fe, 18m@65%Fe Confirmed prospectively of high-grade iron ore resource

  • At least 5km strike identified in main tenement and 15km strike in adjacent

tenements not yet explored – excellent tonnage upside

  • Surface outcrops and likely free dig mining operation
  • Processed by shovel, truck then crush and screen producing a -38 to +6mm

lump DSO product, results in low operating and capital costs

  • Expansion potential through planned exploration program with upside

funding scenario directed to further drilling and additional resource definition

  • Short term high-grade DSO potential being quantified through development

work targeting +100Mt NI43101 and JORC compliant Resource

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Original French geological site map

with trench and drill results shown

Corporate Presentation • June 2018

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Massive coarse Magnetite mineralisation Massive Hematite mineralisation Massive Hematite outcrop

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Bekisopa: 5 Kilometre strike length

showing clearly defined structures

Corporate Presentation • June 2019

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IPR 2014 verification rock chip sampling program. 118 rocks taken from near historical pits and trenches resulted in average grade of

66.7% Iron and low impurities – 1.5% SiO₂ , 1.0% Al₂O₃ , 0.075% P and 0.06% S

Schematic showing some historical work, iron mineralisation (grey areas) and location of IPR sampling program (red dots)

North tenement boundary South tenement boundary

Bekisopa Tenement - 10430

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Bekisopa – Aero magnetic

High grade lump DSO potential along 5 km strike

Corporate Presentation • June 2019

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The southern high grade iron ore area is a drill target to identify ~100 Mt resource

Historical Drilling results Historical Trenching results

The high grade drill intercepts occur in a ~1km2 magnetic low zone in the south Legend Magnetic Intensity: Red is magnetic high = Magnetite and Blue is magnetic low = Hematite

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Tratramarina

Low capex and opex potential – DSO potential

  • Discovered following World Bank funded airborne

geophysical survey in 2004-06

  • IPR acquired tenements in 2009
  • 2009-2011 - rock chip sampling programmes –

305 samples averaging 40.05% Fe

  • 2011-2012 - seven drill holes totalling 1,360m

intersected potentially economically significant BIF magnetite iron ore - ~35 to 40% Fe

  • Mineralisation intersected includes; 11m at 34.5% Fe;

28m at 34.6% Fe; and 35m at 35.7% Fe. With near surface intersection of 6m at 42.5% Fe

  • Strike length ~2.5km, 1km width, thickness 80m, WAI

competent person estimates ~50Mt resource at 35% Fe

  • Competitive capital costs being 16km from the

coast and accessible by river

Corporate Presentation • June 2019

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Coastal locations provide transportation advantage Significant drilling intercepts

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Ambodilafa

Upgradable iron - Future project after Tratramarina

  • Large

magnetic anomaly, a north-south trending 5km strike length and interpreted as extending to a depth of +500m

  • 421 rock chip samples collected averaged

44% Fe

  • 7 drill holes completed which intersected

narrow BIF horizons

  • Mineralisation

intersected included; 42m @ 30.8% Fe and 12m @ 37.18% Fe, with several near surface intersections of 54m @ 35.39%Fe and 28m @ 33.39%Fe

  • Readily upgradeable to a high grade, low

impurity iron concentrate

Corporate Presentation • June 2019

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Magnetic Anomaly The strong red magnetic anomaly almost certainly represents a magnetite BIF

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Use of Proceeds  define a Resource at Bekisopa

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Base Case Fundraise (US$3m) Estimate (USD) Bekisopa  Acquisition of topographical satellite imagery and airborne geophysics survey  Geological mapping  Resource drilling and assay programme to define +100mt JORC Resource  Trenching and sampling of surface material  Indicative Pre Feasibility Study $2,200,000 G&A  Tenement Renewals  Management  Initial Public Offer Listing $600,000 Sub-Total $2,800,000

Upsized Fundraise (US$5.0m)

Estimate (USD)

Bekisopa

 Additional discretionary exploration activities, including additional drilling and trenching $1,300,000

G&A

 Tenement Renewals, Management  Acquisitions  North American Dual Listing $400,000 Small Scale Project  Evaluate requirements for a small scale start-up project study at Bekisopa $300,000 Sub-Total - additional

$2,000,000

Remaining net proceeds to be employed for working capital and general corporate purposes Corporate Presentation • September 2017 Corporate Presentation • June 2019

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Bekisopa work programme

Focussed geological and drilling programme to define a resource

Corporate Presentation • June 2019

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2019 September Quarter December Quarter March ’20 Quarter June ‘20 Quarter

Data interpretation Airborne surveys Geological mapping Trench sampling

  • Met. testwork

Drilling & analysis Mapping Logging Interpretation MRE report

Bekisopa

Significant current data set Highly active development plan Confirmatory analysis Resource quantification +100Mt Significant value uplift

Rapid de-risking process

Trench sampling

  • Met. testwork

Increased funds will be directed to additional drilling to further expand the resource

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Investment Case

Exposure to the transforming iron ore market

Corporate Presentation • June 2019

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High grade iron

  • re project

Excellent historic data ~65% Iron DSO Lump Ore Focussed development programme 12-month 100Mt resource target Short-term revaluation potential Excellent location Proven delivery team Shareholder support

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Contacts

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Management

Paul Bibby Chief Executive Officer paul.bibby@indpacific.com John Madden Chief Financial Officer john.madden@indpacific.com Stephen Fabian Non-Executive Director stephen@slfabian.com Indian Pacific Resources 211 McIllwraith Street Carlton North Melbourne Victoria 3054 Australia

Corporate Presentation • September 2017 Corporate Presentation • June 2019

Bekisopa Trench 5 – massive lump iron ore

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O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X O V E R V I E W M A D A G A S C A R C O R P O R A T E P R O J E C T S A P P E N D I X

Corporate Presentation • June 2018

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Bekisopa - photos of iron ore at surface and in a pit.