#nlc3 mr damien hicks scandinavian resources 20141126 olos lannavaara iron project
TRANSCRIPT
SCANDINAVIANRESOURCES AB
Ownership Structure
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Hannans Reward Ltd Est. 2002
Listed on the Australian Securities Exchange Based in Perth, Australiawww.hannansreward.com
Scandinavian Resources AB Org No. 556737-6263
Est. 2008Based in Malå, Sweden
100%
SCANDINAVIANRESOURCES AB
Olof ForslundNon-Executive Director
• Director of Hannans Reward Ltd (2012).• Geophysicist with extensive international
experience in the mineral exploration industry.
• Previously Regional Manager of SGU Mineral Resources Information Office.
Jonathan MurrayNon-Executive Director
• Director of Hannans Reward Ltd (2010).• Partner of Steinepreis Paganin• Principal legal practice areas include equity
capital markets, takeovers, project acquisitions and divestments, corporate governance, commercial law and strategy.
Directors & Management
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Damian HicksManaging Director
• Co-Founder of Hannans Reward Ltd (2002).
• Financial, legal and compliance qualifications
• Non-executive director of funds management company Growth Equities
Markus BachmannNon-Executive Director
• Director of Hannans Reward Ltd (2012).
• Corporate finance professional and founding partner of Craton Capital.
• Craton Capital awarded Fund Manager of the Year at the Mining Journal’s “Outstanding Achievement Awards” during December 2010.
Magnus ArnqvistNon-Executive Director, Kiruna Iron AB• MD of Bergteamet• Ex-MD of Europe’s largest zinc mine.• Mining engineer with Rapallo
(Australia) and Mine Manager of the Kristineberg, Storliden and Maurliden Mines (owned by Boliden).
Amanda ScottExploration Manager
• Geologist with 10 years experience.• Responsible for developing the Kiruna Iron
Project portfolio and the SCR gold and base metals portfolio since inception.
• Previously Exploration Manager for Hannans Reward Ltd (2008-2010) and Scandinavian Resources Ltd (2010–2012)
SCANDINAVIANRESOURCES AB
Main Iron Project, Rakkuri
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Potential open pit iron ore mine
Operating iron mine at 1,365m depth
Rakkurijoki Current JORC Inferred resource of 74.5Mt @
39.7% Fe (down to 350m) - mineralisationcurrently open at a depth of >400m - positivescoping study completed in February 2013
Rakkurijärvi Current JORC Inferred resource of 69.6Mt @
28.5% Fe (drill spacing to 150m) - mineralisationcurrently open at a depth of ~150-300m; additionalresource drilling required
Rakkuri (Combined) Ore upgrades to +68% Fe product (DTR-analysis)
& requires flotation of sulphides Excellent location for mining - 4km from Kiruna,
~1km from open access, heavy gauge rail, 250mfrom the road
Area of national interest for mining & reindeerherding
Potential for a 15 year open pit mining operation
SCANDINAVIANRESOURCES AB
Introduction to the Concept – Lannavaara
• Potential to be a large, long-life (+25 year) project.
• High iron content product (+69% Fe) in low sovereign risk jurisdictions.
• The Project comprises exploiting a large magnetite iron resource at Lannavaara, converting the ore into a high quality iron product, transporting the product 170km to an ice-free, deep-water port and shipping the product to market.
• The Project is at the Conceptual Stage: social, environmental, infrastructure, marketing, processing, mining and exploration related investigations are at early stages.
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SCANDINAVIANRESOURCES AB
Lannavaara Iron Project - A Lengthy Process
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Explore for Iron DepositsExplore for Iron Deposits
Mine Rock and Extract OreMine Rock and Extract Ore
Process Ore into Iron ProductProcess Ore into Iron Product
Transport Iron Product on New Rail with Finnish Gauge or Pipeline
Transport Iron Product on New Rail with Finnish Gauge or Pipeline
De-Ice, Unload & Store Product in the Mountain
De-Ice, Unload & Store Product in the Mountain
Reload the Ship at the Quay Reload the Ship at the Quay
Transport to MarketTransport to Market
SwedenSweden
FinlandFinland
NorwayNorway
Social & Cultural
Environmental
Stakeholders
Shareholders
SCANDINAVIANRESOURCES AB
Gas Pipeline – Skibotn to Lannavaara to Kiruna
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• Study completed by Ausenco (www.ausenco.com)
• Gas pipeline and slurry / water return pipeline technically feasible
• Pipeline:o buried beneath the surface (in
Sweden/Finland)o less impacted by severe
weather eventso less impact on the communityo highly reliable
• Skibotn to:o Kaaresuvanto – 160kmo Lannavaara – 204kmo Svappavaara – 303km
• Review of social and environmental permitting process
Skibotn
Kaaresuvanto
Lannavaara
Svappavaara
Kiruna
Malmberget
SCANDINAVIANRESOURCES AB
Rail Logistics Assumptions
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AssumptionsLocomotives Diesel / LNGPort Capacity 8Mt pa (with options for expansion)Vessel Capacity 250,000DWTRail Gauge Finnish standard (25 tonne axle-load and 8 t/m)Wagons 100t total weight, loading 80t of product, 12.5m long
and 46 wagons in totalTonnes of Ore Per Train 3,680t of oreStandard Train Length 675m (including locomotives)Trains Per Day 7 (planning caters for 8)Train Cycle 12 hoursMarshalling & Train Movements in the Port
Before entering the mountain
Ore Handling In the mountainQuay & Shiploader The center of the ship loader is the only real quay,
the vessel is moored and resting at 5 strong mooring points with fender system, adapted to tidal waters.
Power Requirements 3,700 kWRock Excavation 335,000m3
SCANDINAVIANRESOURCES AB
Rail / Pipeline – Unloading & Storage
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Underground (in-the-mountain) de-icing, unloading facility (or dewatering) and storage facility which limits dust, noise and impact on the nature
Rail or pipeline
Note: This image is for illustration purposes only and has not been the subject of analysis by SRAB
SCANDINAVIANRESOURCES AB
Gas Transmission into Lapland – An Opportunity
Lannavaara Iron Project may present catalyst for new business opportunities in Lapland (e.g. supply of LNG / NG)
What is the demand for LNG / NG in Lappland?• Industry
– Norway, Norrbotten & Finnish Lapland
Skibotn could provide LNG:• Storage & BunkeringLNG can be transported by:• Truck and RailNG could be transported by:• Pipeline
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SCANDINAVIANRESOURCES AB
Stakeholder Briefings
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Muonio Kommun
Tunturi-Lapin Kehitys TapaniHaapasaari
Kolari Kommun
County of Troms
City of Tromsø
Port of Tromsø
Troms Chamber of Commerce
Confederation of Norwegian Enterprise
Storfjord Kommun
Enontekiö Kommun
Kiruna Kommun
Luleå University of Technology
Regional Council of Lapland
Reindeer Herders' Association, Finland
Käsivarsi cooperative
Lapland Chamber of Commerce
Lannavaara and Övre SoperoCommunities
Norwegian Public Roads Administration
Joint Barents Transport Working Group
Finnish Transport Agency
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Competing Interests
Competing interests inVästerbotten and Norrbotten
Many competing interests in Sweden but high prospectivity
SCANDINAVIANRESOURCES AB
Next Steps
Communications• Stakeholders – Ongoing
Scoping Study• Unloading, Storage & Reloading – part-completed • Concentrate & Gas Pipeline – part-completed• Social License – tender process completed• Environmental Permitting – tender process completed• Rail – tender process completed • Exploration & Metallurgy – ongoing throughout 2015• Financial analysis – December 2015
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SCANDINAVIANRESOURCES AB
Contact
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For more information please contact:
Damian Hicks Managing Director Scandinavian Resources AB +46 703 220 226 (M)[email protected] (E)
Amanda ScottExploration DirectorScandinavian Resources AB +46 703 221 497 (M)[email protected] (E)