Mining  &  Infrastructure  Investment  opportuni4es  on  the  Braemar  Iron  Forma4on  

Australia  China  Resources  Symposium,    Adelaide  11  July  2012  

Andrew  WoskeG  Managing  Director,  Minotaur  Explora4on  Ltd  (ASX:  MEP)  

This  presenta,on  has  been  prepared  by  the  management  of  Minotaur  Explora,on  Limited  (MEP)  for  the  general  benefit  of  analysts  and  industry  and  does  not  cons,tute  specific  advice  to  any  par,cular  party  or  persons.  Informa,on  herein  is  based  on  publicly  available  informa,on,  internally  developed  data  and  other  sources.  Where  an  opinion,  projec,on  or  forward  looking  statement  is  expressed  in  this  presenta,on,  it  is  based  on  the  assump,ons   and   limita,ons  men,oned   herein   and   is   an   expression   of   present   opinion   only.   No   warran,es   or   representa,ons   are  made   or  implied  as  to  origin,  validity,  accuracy,  completeness,  currency  or  reliability  of  the  informa,on.  MEP  specifically  disclaims  and  excludes  all  liability  (to  the  extent  permiHed  by   law)  for   losses,  claims,  damages,  demands,  costs  and  expenses  of  whatever  nature  arising   in  any  way  out  of  or   in  connec,on  with  the  informa,on,  its  accuracy,  completeness  or  by  reason  of  reliance  by  any  person  on  any  of  it.  Where  MEP  expresses  or  implies  an  expecta,on  or  belief  as  to  the  success  of  future  explora,on  and  the  economic  viability  of  future  project  evalua,ons,  such  expecta,on  or  belief  is  expressed  in  good  faith  and  is  believed  to  have  a  reasonable  basis.  However,  such  projected  outcomes  are  subject  to  risks,  uncertain,es  and  other   factors   which   could   cause   actual   results   to   differ   materially   from   projected   future   results.   Such   risks   include,   but   are   not   limited   to,  explora,on   success,  metal   price   vola,lity,   changes   to   current  mineral   resource   es,mates   or   targets,   changes   to   assump,ons   for   capital   and  opera,ng   costs   as  well   as   poli,cal   and   opera,onal   risks   and   government   regulatory   outcomes.  MEP   disclaims   any   obliga,on   to   advise   any  person  if  it  or  they  become  aware  of  any  inaccuracy  in  or  omission  from  any  forecast  or  to  update  such  forecast.  

The following presentation is a visualisation of possible infrastructure solutions to support potential future iron ore mine developments. Locations nominated for the

provision of infrastructure facilities are for illustration purposes only and should not be considered viable technical, economic, environmental, social or State solutions for any

future requirements  

Cautionary Statements

Braemar Iron Formation: Location

2  new  maps  to  be  inserted  here  

1.  The Braemar Iron Formation: Australia’s next big Iron ore province  2.  Mining development scenarios  3.  Infrastructure investment opportunities:  

§  Concentrate transfer – Rail and Slurry Pipeline §  Port & Sea Freight

4.  a Mining Investment opportunity §  Muster Dam Magnetite Project

Braemar Iron Formation: The Investment background

Braemar Iron: Australia’s next big Iron province

The Braemar Iron Formation is a regionally extensive sequence of magnetised sedimentary siltstones, with pervasive beds of magnetite mineralisation, often up to 300m thick, stretching over 200km, as shown in red on the Total Magnetic Image below.

400km  

The  Braemar  Iron  Forma4on  has  poten4al  for  an    "Explora(on  Target”  of  25  –  50  billion  tonnes  of  the  magne4te  form  of  iron  The  term  "Explora(on  Target”  should  not  be  misconstrued  as  an  es4mate  of  Mineral  Resources  and  Reserves  as  defined  by  the  JORC  Code  (2004),  and  the  term  

has  not  been  used  in  that  context.  It  is  uncertain  if  further  explora4on  will  result  in  the  determina4on  of  a  Mineral  Resource.  Refer  Cl  18  of  the  JORC  Code  (2004).  

Braemar Iron: the potential mining scale

² around 5 large open cut mines

² each mining 50 – 100 million tonnes of ore p.a. and each beneficiating 10 – 20 Mtpa of iron concentrate, exceptionally low in impurities

² for total annualised output of ~50 - 100 Mtpa of blast furnace quality concentrates grading 65% - 70% Fe

² and with a foreseeable 100 year life of mining across the Braemar Iron Formation

Braemar Iron: Transporting iron products to Port

๏ Rail:

•  Main continental E-W standard gauge rail line runs right through the Braemar Iron Formation

•  Deposits are a 150km - 300km rail trip to Port Pirie where a Pellet Plant could be established

•  existing spare rail line capacity of 10Mtpa

•  For 25Mtpa haul capacity, need;

•  line duplication to provide sufficient train paths beyond 10Mtpa

•  9 train sets each comprising 5 x 4,000hp Traction locomotives & 162 wagons

•  1990 train trips per year

•  5 hour load/unload turnaround time (max)

Braemar Iron: Concentrate transfer to Port

๏ Slurry Pipeline: •  Slurry transfer is a cost effective alternative

to rail haulage for a long-term mining project

•  Slurry transfer can be used for concentrate movements from mine to port

•  we envisage a 300km long buried pipeline to a Pellet plant near Port Pirie or 380km to a deep water port location

•  25Mtpa requires a 600mm diameter Concentrate delivery pipe + Return Water Line

•  Example: ✴ Minas Rio iron project, Brazil; 600mm

diameter pipeline is 522km long, to transport 24.5Mtpa of concentrate

•  2-3 intermediate Pump Stations •  Port Dewatering station & Concentrate

storage •  both rail and slurry line solutions could be

used to transport >25Mtpa of concentrate

Slurry  loading  via  a  floa4ng  Stockpile  vessel  Photo  courtesy  Royal  Resources  Ltd  

Braemar Iron: Port for bulk loading of iron products

ª  Minimum 50Mtpa port capacity

ª  up to 250 ships loaded per year

ª  6,000tph loading rate

ª  320m long, double sided berth

ª  20m draft accessible in Spencer Gulf

ª  Need new deep water port in Spencer Gulf, south of Port Pirie

ª  jetty length ~3km

ª  Capital cost around $750 million

Biggest  challenge  to  development  of  new  mines  is  lack  of  bulk  handling  port  infrastructure:  •  Port  Adelaide:  capacity  is  only  1.7Mtpa  •  Port  Pirie:  capacity  expanding  to  8Mtpa,  but  has  very  shallow  dra^  •  Port  Bonython  (proposed):  sub-­‐op4mal;  extra  rail  distance  incurs  addi4onal  haulage  charges  

Mines on the Braemar need to berth 200,000 DWT ‘Cape Size’ vessels to export iron concentrates & Pellets:

Braemar Iron: Sea Freight 5,300 nautical miles

Braemar Iron: Infrastructure Investment scenarios

Item   Scale   Capital  Cost  A$  million  

Power  &  Transmission   500MW   $2,250  

Desalina4on  Water   50Gl/year   $500  

Slurry  Pipelines   25Mtpa   $650  

Rail  expansion  to  25Mtpa   380km   $750  

Locomo4ves  &  Wagons   9  train  sets  hauling  25Mtpa  

$550  

Port  for  200,000  DWT   50Mt   $750  

Pellet  Plant   10Mt   $1,250  

Total  Capital  Investments   ±$6,650  

Mining  Investment  opportunity  at  Muster  Dam  

on  the  Braemar  Iron  Forma4on  

1,500,000,000  tonne  JORC  resource  contains  225  Mt  of  70%  Fe  in  concentrate  

Muster Dam, South Australia  

Mutooroo  Pastoral  Sta4on  is  500km  from  Adelaide  

Muster Dam – 6.2km Strike length  

Open Pit for 10Mtpa Concentrate over 20+ years  Final  Pit  dimensions:  

Length  =  5,700m  Width  =  730m  –  975m  Depth  =  320m  

Muster Dam Section schematic  

   

!

Muster Dam Development Schedule  Ac(vity   2011   2012   2013   2014   2015   2016  

Resource  Defini(on                                                  

                                               

Scoping  Study                                                          

                                               

PermiIng                                                                  

Feasibility                                                          

                                               

Financing  

Construc(on                                                                          

                                               

Commissioning                                                      

Muster Dam Magnetite  1.5  billion  tonne  JORC  resource  contains  225  Mt  of  70%  Fe  in  concentrate,  

not  including  Hema4te  component  which  is  35%  of  the  Fe  mineralisa4on  

JORC Estimate Concentrate Properties JORC

Category Billion

tonnes§ Magnetite DTR %

Fe% Al2O3 % P2O5 % S % SiO2 % LOI %

Inferred 1.5 15.2 69.8 0.4 0.002 0.002 2.8 -3.3

Target  for  Blast  Furnace  Pellet  fines   >60   1.0  -­‐  1.5   <0.03%  P   <0.01   <5.5   -­‐2  to  -­‐4  

§  Average  Density  2.96t/m3   "DTR%  (Mass  Recovery)  

=  Wt  Magne4te  (g)  /  Wt  Head  (g)  

EXPLORATION  TARGET⌘:  addi,onal  2.2  –  4.2  billion  tonnes  @  15%  –  18%  DTR    ⌘Refer  earlier  Cau4onary  Statement  

Muster Dam  

   

Mining  Investment  opportunity  at  Muster  Dam  

Andrew  WoskeG  Managing  Director,  Minotaur  Explora4on  Ltd  (ASX:  MEP)  

Interested?  Please  see  me  at  the  Minotaur  Explora4on  Trading  Table