Western Plains Resources Ltd Investor Presentation Iron Ore - - PowerPoint PPT Presentation

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Western Plains Resources Ltd Investor Presentation Iron Ore - - PowerPoint PPT Presentation

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Western Plains Resources Ltd Investor Presentation Iron Ore Projects 14 June 2007 IMPORTANT NOTICE This presentation contains forward looking statements concerning the projects owned by WPG. Statements concerning mineral reserves and

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SLIDE 1

Western Plains Resources Ltd

Investor Presentation – Iron Ore Projects

14 June 2007

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SLIDE 2

IMPORTANT NOTICE

  • This presentation contains forward looking statements concerning the projects
  • wned by WPG. Statements concerning mineral reserves and resources may

also be deemed to be forward looking statements in that they involve elements based on specific assumptions.

  • Forward looking statements are not statements of historical fact, and actual

events or results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other

  • factors. Forward looking statements are based on WPG’s beliefs, opinions and

estimates as of the date they are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or reflect other future developments.

  • Data and amounts shown in this presentation relating to capital costs, operating

costs and project timelines are internally generated best estimates only. All such information and data is currently under review as part of WPG’s ongoing developments and in particular the Peculiar Knob Bankable Feasibility Study (BFS). Accordingly, WPG cannot guarantee the accuracy and/or completeness

  • f the figures or data in this presentation and even when the BFS is completed

WPG will not be able to guarantee or warrant the accuracy of such information.

  • All dollar amounts shown in this presentation are in Australian dollars unless
  • therwise stated.
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SLIDE 3

Western Plains Resources Ltd

  • WPG listed on the on

the ASX in August

  • 2005. It is pre-

development iron ore producer with gold and copper exploration assets

  • WPG acquired its iron
  • re projects in

November 2006 when the Peculiar Knob and Hawks Nest tenements were acquired

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SLIDE 4

WPG’s Capital Structure

$71m (at $0.85/share) Market capitalisation (diluted for in-the-money options) 13,291,680

Total $0.25 3,750,000 26 October 2011 $0.35 3,475,000 28 September 2009 $0.25 3,287,500 28 September 2009 $0.30 2,500,000 16 September 2008 $0.25 279,180 23 August 2008 Exercise Price Number Expiry UNLISTED OPTIONS OVER ORDINARY SHARES

70,301,722

ORDINARY SHARES

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SLIDE 5

Project Locations

  • WPG’s copper-gold

exploration projects are in the Lachlan Fold Belt and in the Broken Hill Block

  • Our iron ore

tenements are in South Australia

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SLIDE 6

Iron Ore Projects

  • Peculiar Knob is 80 km S
  • f Coober Pedy, 30 km E
  • f the Stuart Highway, 20

km NW of the Prominent Hill mine and 85 km E of Adelaide-Darwin railway line

  • Hawks Nest is 115 km

SSE of Coober Pedy, straddles Stuart Highway and is 45 km from railway line

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SLIDE 7

Iron Ore Projects

Photos show (clockwise from top):

  • Peculiar Knob hill; the
  • rebody is under the

plain, not the hill

  • High grade specular

haematite in core from metallurgical hole at Peculiar Knob

  • Magnetite outcrop at

Hawks Nest

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SLIDE 8

Mineral Resource Estimates DSO Deposits

Category Million Tonnes Fe % P % SiO2 % Al2O3 % LOI % Measured resource Indicated resource Inferred resource 13.5 4.6 1.3 63.7 63.8 64.5 0.01 0.01 0.02 7.3 7.7 6.4 0.3 0.2 0.2 0.5 0.5 0.3 Total resource 19.4 63.7 0.01 7.3 0.3 0.5

  • Peculiar Knob
  • Buzzard
  • Total

Category Million Tonnes Fe % P % SiO2 % Al2O3 % LOI % Measured resource Indicated resource Inferred resource 1.8 3.1 1.8 62 60 59 0.03 0.04 0.06 9.3 10.9 8.7 1.2 1.7 2.9 0.8 1.4 2.5 Total resource 6.7 60 0.05 9.9 1.9 1.5 Category Million Tonnes Fe % P % SiO2 % Al2O3 % LOI % Measured resource Indicated resource Inferred resource 15.3 7.7 3.1 63.5 62.3 61.3 0.01 0.02 0.04 7.5 9.0 7.7 0.4 0.8 1.8 0.4 0.8 1.2 Total resource 26.1 62.9 0.02 8.0 0.7 0.6

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SLIDE 9

Mineral Resource Estimates Magnetite Deposits

Category Million Tonnes Fe % P % SiO2 % Al2O3 % LOI % Measured resource Indicated resource Inferred resource 100 60 60 37 36 36 0.06 0.06 0.06 37 38 39 0.8 1.0 1.1 0.6 0.8 0.8 Total resource 220 36 0.06 38 0.9 0.7

  • Kestrel
  • All magnetite

Category Million Tonnes Fe % P % SiO2 % Al2O3 % LOI % Kestrel – measured, indicated and inferred Goshawk – inferred resource Harrier – inferred resource Eagle – inferred resource Kite – inferred resource Falcon – inferred resource 220 148 54 92 30 25 36 35 35 31 51 32 0.06 38 0.9 0.7 Total resource 570 36

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SLIDE 10

Peculiar Knob BFS

  • Commenced late in 2006;

drilling started January 2007 and was completed in late March.

  • High quality independent

consultants engaged for BFS

  • Disciplines include resource

modelling and estimation, environment and hydrogeology, geotechnical engineering, ore reserves and mine design, metallurgical testwork, plant engineering and costing, site and offsite infrastructure, iron ore marketing analysis, production and cashflow modelling, and reporting

  • External budget $1.6m, all up

>$2m

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SLIDE 11

Peculiar Knob Drilling

  • 7,400m program

in 63 RC holes and 5 diamond core holes

  • Orebody

modelling virtually complete

  • Very high grade

Fe, low P, low Al2O3, low LOI

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SLIDE 12

DSO Mining Concept

  • Peculiar Knob mining lease application lodged 30 May; Buzzard MC

and ML applications to follow

  • Very simple open pit mine initially at 1.5mt ore pa growing to 3 mtpa

for 10 year minimum mine life for combined Peculiar Knob and Buzzard DSO; site works to commence Q1 2008

  • Possible eventual underground mining to extend life of project
  • Crushing and screening plant to produce lump and fines
  • Product to be trucked to Wirrida or Carne, railed probably to

Whyalla initially; later possibly to Port Bonython

  • Initial tug and barge operation to load Capesize vessels in Spencer

Gulf; possibly use Port Bonython if it is upgraded

  • Contractors to be used where possible in supply chain to minimise

capex

  • Manning – expect about 100 persons in camp
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Mine to Rail Logistics

  • After crushing and

screening, product will be trucked to Wirrida or Carne on special haul road using very large (300t payload) dual powered road trains

  • perating 24/7
  • Open air stockpiles to

be built at siding and trains loaded using FELs; ore to be blended st siding

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Rail to Port Logistics

  • Train size now being
  • ptimised for 2 mtpa

from Wirrida (Peculiar Knob alone)

  • r 3 mtpa from
  • Carne. Train

capacity 5,000 to 8,000 tonnes

  • Ore will be

stockpiled in shed at port for transhipment to Capesize vessels in Gulf; possibly later directly to ship at Port Bonython

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Exports – We prefer Whyalla

  • Upper Spencer

Gulf ports include Whyalla, Port Pirie and Port Bonython

  • DSO is already

being exported from Whyalla using tug and barge

  • peration
  • We are negotiating

for access to use

  • f Whyalla
  • Port Bonython can

handle Capes but needs major upgrading as there is no railway line for last 25 km

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Transhipment - Tug and Barge Operations

  • Used widely where near

shore waters are shallow

  • Very common in Indonesian

coal exports, oil and gas industry etc

  • This approach now used for

export of 3mtpa DSO from Whyalla

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SLIDE 17

Port Pirie is a Viable Alternative

  • Port Pirie exports

zinc concentrates, lead, silver, grain and

  • ther commodities
  • We are negotiating

for access to former grain loading site for construction of storage shed and barge loader

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SLIDE 18

Port Bonython

  • Port Bonython is used

for export of crude oil, LPG and gas; power and gas available on site

  • It can handle Capes,

but will need 25 km rail spur and ore loader. We will try to get Government support

  • We will use Port

Bonython for export of magnetite products from Hawks Nest – eliminates need for tug and barge

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SLIDE 19

Hawks Nest

  • Hawks Nest contains both high grade DSO deposits and large

magnetite deposits

  • DSO occurs at Buzzard and also at Kite prospects; realistic

expectation of about 15mt in total giving target >30mt DSO between Peculiar Knob and Hawks Nest

  • We have just finished 2,000m drilling program focussing on

DSO exploration; good hits at Kite and more drilling required

  • The magnetite deposits (Kestrel, Goshawk, Eagle, Falcon) are

suitable feed for production of concentrate, pellets or pig iron

  • Testwork suggests ultrafine grinding will not be required to

produce 68% Fe concentrate; metallurgist advises better characteristics than most WA BIFs

  • Hawks Nest could support a very large project with a long

mine life

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Hawks Nest Project

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Hawks Nest Project

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SUMMARY - TAKEAWAY

  • Export 3 mtpa high grade, low impurity DSO from

Peculiar Knob and Hawks Nest for 10 years beginning mid 2008

  • This is a low capex, low risk project which could

return initial investment in 2-3 years

  • Bring magnetite deposits at Hawks Nest into

production in 2011 at 8 mtpa of concentrate, pellets

  • r pig iron – 50 year project life