Western Plains Resources Ltd An Emerging South An Emerging South Australian Australian Bulk Bulk Commodities Producer Commodities Producer Commodities Producer Commodities Producer Bob Duffin Bob Duffin Bob Duffin Bob Duffin Executive Chairman, Western Plains Resources Ltd Executive Chairman, Western Plains Resources Ltd SA Resources and Energy Investment Conference SA Resources and Energy Investment Conference Adelaide, 4 May 2010 Adelaide, 4 May 2010
Key Corporate Information y p Directors: – Bob Duffin (executive chairman) – Heath Roberts (executive) ( ) – Gary Jones (executive) – Bob Richardson (non executive) – Len Dean (non executive) – Lim See Yong (non executive) g ( ) – Greg Jones (alternate for Bob Richardson) Executives – Martin Jacobsen (COO) Martin Jacobsen (COO) – Greg Harding (CFO) Issued shares 121.7m – Myles Fang (iron ore marketing) – Larissa Brown (company secretary) Unlisted options 5.8m Cash: $15.3m (30 April 2010) plus $0.5m WISCO deposit (conditionally refundable if Commonwealth torpedoes WISCO p Fully diluted Fully diluted 127.5m 127 5m deal) Directors control 32m voting shares (26%) Good core group of top 50 shareholders Market $102m both retail and professional p capitalisation capitalisation ( t $0 80/ h (at $0.80/share) ) South Australian Resources and Investment Conference 4 May 2010 2
Our Key Project Assets y j IRON ORE IRON ORE • DSO (haematite): Peculiar Knob ML 6314 and Buzzard and Tui (MC 3810) deposits at Hawks Nest deposits at Hawks Nest • Magnetite BIF (taconite): Kestrel (MC 3809) and Goshawk, Harrier, Eagle, Kite and Falcon (EL 4248) at Hawks Kite and Falcon (EL 4248) at Hawks Nest • Haematite BIF (itabirite): Buzzard and Tui footwall deposits COAL • Option to acquire the Penrhyn deposit + 3ELs GENERAL • All granted tenements lie within the WPA • Road/rail haulage from PK to Port Pirie virtually identical to Portman’s Koolyanobbing - Esperance road/rail haulage distances haulage distances South Australian Resources and Investment Conference 4 May 2010 3
Our Vision • Bring Peculiar Knob into production at ~3 mtpa in H2 2011 • Bring Buzzard into production later so total DSO sales are ~3 mtpa for minimum 10 Bring Buzzard into production later so total DSO sales are 3 mtpa for minimum 10 year DSO project life • Continue exploration at Hawks Nest to discover more DSO deposits to extend life beyond 10 years beyond 10 years • Commence BFS on Hawks Nest magnetite (taconite) in 2010 and commit to project development in 2014 so that magnetite sales are 6-10 mtpa for 30 years from 2015-6 • More testwork on Hawks Nest haematite BIF (itabirite) to supplement magnetite concentrates with haematite concentrates and add value • Define measured/indicated/inferred coal resource at Penrhyn of not less than 200 mt by 2013 • • Commit to clean coal technology project at Penrhyn producing ~10 mtpa by 2016 Commit to clean coal technology project at Penrhyn producing ~10 mtpa by 2016 • Divert part of magnetite/haematite concentrates and Penrhyn coal to production of 1-2 mtpa merchant pig iron by 2017 South Australian Resources and Investment Conference 4 May 2010 4
Mineral Resource Estimates Totals – DSO Deposits Totals DSO Deposits Category Million Fe P SiO 2 Al 2 O 3 LOl Tonnes % % % % % Measured resource 25.5 62.9 0.03 7.7 0.8 0.7 Indicated resource 9.3 61.6 0.05 9.5 0.7 0.8 Inferred resource 2.6 63.0 0.04 7.8 0.5 0.5 Total resource 37.4 62.6 0.03 8.2 0.8 0.7 NB: Peculiar Knob total resource 19.0 mt @ 63.7% Fe; Buzzard and Tui at Hawks Nest total resource 18.4 mt @ 61.6% Fe @ South Australian Resources and Investment Conference 4 May 2010 5
Peculiar Knob DSO • BFS completed September 2007 • Simple specular haematite Si l l h tit deposit; high grade Fe with virtually no impurities virtually no impurities • Geotech, metallurgy completed • Pit schedules now being re- • Pit schedules now being re optimised to match train capacity • Sinter testwork planned for July Sinter testwork planned for July • Lies beneath 15 to 30 m cover • Effectively all resource reports to • Effectively all resource reports to reserves • LOM W:O strip ratio 3.6:1 LOM W:O strip ratio 3.6:1 South Australian Resources and Investment Conference 4 May 2010 6
Peculiar Knob - Permitting • Mining Lease - GRANTED • Native title mining agreement - SIGNED • Defence mining access agreement - SIGNED • MPLs (infrastructure corridor) – LODGED and being review by PIRSA • P Pastoral leaseholder access and compensation agreements – SIGNED t l l h ld d ti t SIGNED • Third party EL holders access agreements - SIGNED • MARP – DRAFTED and ready to be lodged when PIRSA is ready to MARP DRAFTED and ready to be lodged when PIRSA is ready to accept and process it • Licence to connect Wirrida rail loading loop to main line – DRAFTED Licence to connect Wirrida rail loading loop to main line DRAFTED • Borefield – LICENSED by DWLBC and PERMITTED by Defence • Train paths – RESERVED p • Port Pirie port access and cargo handling agreement – UNDER NEGOTIATION • Transshipment point in Spencer Gulf – UNDER NEGOTIATION South Australian Resources and Investment Conference 4 May 2010 7
Peculiar Knob - Contracts • Rail operator – SHORT LIST PREPARED AND DETAILED NEGOTIATIONS COMMENCED • Transshipment operator – SHORT LIST PREPARED AND DETAILED NEGOTIATIONS COMMENCED NEGOTIATIONS COMMENCED • Mining contractor – IN DISCUSSIONS – will be finalised when rail haulage capacity settled • Road haulage contractor – IN DISCUSSIONS - will be finalised when rail haulage capacity settled • Haul road highway underpass constructors – IN DISCUSSIONS Haul road, highway underpass constructors IN DISCUSSIONS • Rail loop constructor – IN DISCUSSIONS • Sales contracts – MOUs UNDER NEGOTIATION – expect to be in place by end July and to become binding offtake agreements when project development confirmed. Diverse customer base, market clearing prices, mix of FOB and CFR South Australian Resources and Investment Conference 4 May 2010 8
Peculiar Knob – the Importance of Grade • PK is Australia’s highest grade undeveloped Fe grade undeveloped Fe deposit • Al O • Al 2 O 3 , P, S and LOI are P S and LOI are extremely low – a bespoke product, ideal for blending p , g • Will replace Brazilian fines in sinter blend • Premium for 62% Fe fines now about US$35/t delivered Average price for March quarter for Average price for March quarter for compared with 58% Fe fines 8% f 62% Fe fines was US$174/t CFRFO – more than makes up for at Tianjin port, China cost of transport isolation cost of transport isolation South Australian Resources and Investment Conference 4 May 2010 9
DSO - Local Infrastructure We have Defence’s approvals for PK mine and infrastructure d development l t (including haul road, accommodation village, rail siding and village rail siding and Stafford borefield) but we still need to obtain Defence’s approval for Defence s approval for Buzzard mine development and its haul road haul road South Australian Resources and Investment Conference 4 May 2010 10
Mineral Resource Estimates Magnetite Deposits Magnetite Deposits Category Million Fe P SiO 2 Al 2 O 3 LOl Tonnes % % % % % • Kestrel • Kestrel Measured resource 100 37 0.06 37 0.8 0.6 Indicated resource 60 36 0.06 38 1.0 0.8 Inferred resource 60 36 0.06 39 1.1 0.8 Total resource 220 36 0.06 38 0.9 0.7 Category Million Fe P SiO 2 Al 2 O 3 LOl Tonnes % % % % % • All magnetite • All magnetite Kestrel Kestrel – measured, meas red 220 220 36 36 0 06 0.06 38 38 0 9 0.9 0 7 0.7 indicated and inferred Goshawk - inferred 148 35 - - - - resource Cl Clear potential t ti l Harrier - inferred 54 35 - - - - resource to increase total Eagle - inferred 92 31 - - - - resource to >1 resource billion tonnes billion tonnes Ki Kite - inferred i f d 30 30 51 1 - - - - resource with further Falcon - inferred 25 32 - - - - drilling resource Total resource Total resource 570 570 36 36 - - - - South Australian Resources and Investment Conference 4 May 2010 11
Mineral Resources Hawks Nest Haematite BIF – EL 4248 and MC 3810 Hawks Nest Haematite BIF EL 4248 and MC 3810 Category Million Fe P SiO 2 Al 2 O 3 LOl Tonnes Tonnes % % % % % % % % % % Tui - indicated resource 23.9 38.2 0.03 43.5 0.72 0.51 Tui - inferred resource 2.8 36.7 0.02 45.2 0.92 0.61 Buzzard footwall inferred resource Buzzard footwall – inferred resource 29.9 29.9 38.9 38.9 0.03 0.03 41.2 41.2 0.97 0.97 0.73 0.73 Buzzard SE – inferred resource 16.1 35.2 0.11 45.9 1.65 0.73 Buzzard West – inferred resource 29.8 36.6 0.03 45.4 0.86 0.66 Total resource 102.5 37.4 0.04 43.8 0.99 0.66 South Australian Resources and Investment Conference 4 May 2010 12
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