WPG Resources Ltd Chairmans Presentation November 2012 Key - - PowerPoint PPT Presentation

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WPG Resources Ltd Chairmans Presentation November 2012 Key - - PowerPoint PPT Presentation

Apr 09, 2023 113 likes •268 views

WPG Resources Ltd Chairmans Presentation November 2012 Key Corporate Information Directors: Bob Duffin (Executive Chairman) Heath Roberts (Executive) Gary Jones (Executive) Len Dean (Independent Non Executive)

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WPG Resources Ltd

Chairman’s Presentation November 2012

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Chairman’s Presentation November 2012

Key Corporate Information

Directors:

– Bob Duffin (Executive Chairman) – Heath Roberts (Executive) – Gary Jones (Executive) – Len Dean (Independent Non Executive) – Dennis Mutton (Independent Non Executive) – Lim See Yong (Independent Non Executive)

Executives

– Martin Jacobsen (Chief Executive) – Greg Harding (CFO) – Myles Fang (Iron Ore Marketing) – Larissa Brown (Company Secretary) – Wayne Rossiter (GM Coal)

Cash: $14.7m (30 September 2012) Substantial shareholders: – Bob Duffin 9.3% – Jalinsons Pty Ltd 8.6% Issued shares 260.9m Unlisted share rights (vest in July 2015 if certain conditions met) 3.5m Fully diluted 264.4m Market cap (@ $0.073) $19m

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Chairman’s Presentation November 2012

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To Recap: Sale of Iron Ore Assets in 2011

WPG sold its iron ore assets (Peculiar Knob and Hawks Nest and exploration tenements) to OneSteel (now Arrium) for ~$320 million in October 2011 Net earnings of $171 million for FY 2011 Paid fully franked dividend of $0.63/share and return

  • f capital of $0.42 per share (total $1.05 per share) in

November 2011 WPG has raised total of $129 million from shareholders since incorporation in 2004, and has paid back more than twice this amount WPG shareholders retained their WPG shares post sale We did not sell our other project assets nor our Port Pirie land with its development approval WPG has delivered outstanding investment return to shareholders, and remains committed to this

  • bjective going forward

Peculiar Knob mine in production November 2012

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Chairman’s Presentation November 2012

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Our Key Project Assets

IRON ORE

  • Giffen Well

COAL

  • Penrhyn, Perfection Well,

Lochiel North EXPLORATION

  • Lake Woorong, Mirikata,

Muckanippie PORT PIRIE

  • Large industrial land

holding (freehold), Development Approval, valid leases over third party land

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Chairman’s Presentation November 2012

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Giffen Well Iron Ore Project

  • WPG’s subsidiary Giffen Iron Pty Ltd

farmed into Giffen Well this year

  • GIPL will complete a $3m PFS in March

2013

  • GIPL’s interest will be 25% after PFS by

paying $5m to vendor if WPG decides to go forward, and will earn an additional 20% for each $5m spent to maximum of 82%

  • If a decision to develop a mine is taken

GIPL will pay a further $10m to the vendor, at which time vendor has the right to decide whether to retain its equity interest in the project or exchange it for a royalty of $0.70/t of ore mined

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Chairman’s Presentation November 2012

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Giffen Well Geology

  • Three simple lenticular

lodes or zones of BIF

  • Main Zone is ~4 km long by

350m wide in the centre and

  • pen at depth
  • Dips steeply to east
  • Thin oxidised zone (may be

Eromanga Basin sediments in part)

  • Fe grades are consistent

within each zone

  • Resource estimates used

data from 42 drill holes totalling 3,949 metres

  • Cut off grade of 15% Fe
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Chairman’s Presentation November 2012

Category Million Tonnes Fe% SiO2% P% Al2O3% S% Oxide Indicated 65.8 33.0 33.6 0.04 2.5 0.05 Inferred 41.4 34.5 35.4 0.04 2.7 0.03 Total 107.2 33.6 34.3 0.04 2.5 0.04 BIF Indicated 361.9 31.6 38.4 0.07 1.7 0.64 Inferred 220.0 30.0 41.4 0.07 2.0 0.55 Total 581.9 31.0 39.5 0.07 1.8 0.61 Total Resource Estimate Indicated 427.7 31.8 37.6 0.06 1.8 0.54 Inferred 261.4 30.7 40.4 0.07 2.1 0.47 Total 689.1 31.4 38.7 0.07 1.9 0.52

Giffen Well Resource Estimate

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Giffen Well Metallurgical Characteristics

Magnetite Concentrate % Fe 68.5 SiO2 3.87 Al2O3 0.20 P 0.008 S 0.061

  • Davis Tube Recovery

testwork done on chips and core from WPG’s drilling program

  • 5m composite samples

prepared following grinding to P80 of 25 microns

  • Primary ore in Main Zone

gave average concentrate grade of 68.5% Fe with mass pull to concentrate of 42% using a 15% Fe mass recovery cut off grade

  • Metallurgical testwork on
  • xide material is continuing

NB: Primary material in Main Zone only

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Development Concept

  • Rail spur (22km) and

loading loop from Central Australian Rail Line

  • Power for plant and site

services to be obtained from mine mouth power station at Penrhyn coal mine

  • Accommodation villages at

Giffen Well and Penrhyn

  • Water from dewatering

Penrhyn pit

  • Rail haulage to Port Pirie
  • Transhipment to Capesize

ships in deep water in Upper Spencer Gulf

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Chairman’s Presentation November 2012

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Giffen Well Mine

  • Main lode will be mined at

~13mtpa ore to produce 5mtpa of high grade Fe concentrate

  • LOM to be ~30 years on

current resource estimates

  • Treatment plant to be of

conventional design

  • Waste and tailings storage

to be integrated

  • Water from Penrhyn pit
  • Power from mine mouth

power station at Penrhyn

  • Rail haulage to Port Pirie
  • Other lodes and oxide

zones in all 3 lodes are upside potential

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Chairman’s Presentation November 2012

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Penrhyn Mine and Power Station

  • Penrhyn resource total

352.4 mt thermal coal

  • Open pit mine to be

developed to produce ~400,000 tpa ROM coal

  • ~85 MW mine mouth power

station to be located near starter pit with lowest strip ratio and fed with ROM coal

  • Pit will be dewatered and

water fed to RO plant

  • High tension power line and

water pipeline to link Penrhyn and Giffen Well (105 km)

3X25MW unit coal fired power station in China

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Chairman’s Presentation November 2012

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Port Pirie

  • Publicly accessible port operated by

Flinders Ports Pty Ltd who manage shipping, maintain port, channel, wharfs etc

  • We own ~5 ha parcel of freehold land

suitable for construction of rail unloading, storage and shipping facilities

  • We have 30 year agreement with

Flinders Ports for access and pricing

  • We continue to pay lease rentals on
  • ther land in Port Pirie
  • We have development approval

(renewal in progress) for 3.5mtpa iron

  • re but facilities can handle 7mtpa
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Chairman’s Presentation November 2012

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Giffen Well – Points of Differentiation

WHAT MAKES A GOOD MAGNETITE PROJECT?

Giffen Well High head grade  High tonnage  Low strip ratio  Manageable development scale  Good metallurgical characteristics – ore and concentrate  Access to transport infrastructure  Adequate power and water at affordable cost  Long life project  No reliance on other parties to develop shared infrastructure  Affordable capex ? Competitive opex ? Management with track record and commitment to shareholder value 

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Competent Person

The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information complied by Mr Gary Jones, a Fellow of the Australasian Institute of Mining and Metallurgy. He is Technical Director of WPG Resources Limited and a full time employee of Geonz Associates Limited. The information is extracted from the following reports:

  • For the Penrhyn coal project: Maiden 352.4 million tonne coal resource estimate for Penrhyn deposit. WPG’s ASX announcement of 7 July

2011

  • For the Giffen Well iron ore project: Maiden resource estimate makes Giffen Well one of the highest grade BIF iron ore deposits in Australia.

689 million tonnes at average grade 30.9% Fe. WPG’s ASX announcement of 4 October 2012 In addition, the metallurgical testwork reported herein is based on the following reports:

  • Encouraging metallurgical testwork raises WPG’s sights towards iron ore mine development at Giffen Well. WPG’s ASX announcement of 29

October 2012 WPG is not aware of any new information or data that materially affects the information included in the relevant market announcements set out above and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

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Important Notice

  • This presentation contains forward looking statements concerning the projects
  • wned by WPG. Statements concerning mineral resources and ore reserves 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
  • r 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 based on consultant reports, contractor quotes and internally generated estimates

  • WPG cannot guarantee the accuracy and/or completeness of the figures or data in

this presentation

  • All dollar amounts indicated in this presentation are in Australian dollars unless
  • therwise stated.