Trans-Tasman Resources 2014 The Company (1) Trans-Tasman - PowerPoint PPT Presentation

Trans-Tasman Resources 2014

The Company (1)  Trans-Tasman Resources Limited (TTR) was established in September 2007 to: • explore, • assess, and • develop the rich iron ore deposits (iron sands) off the North Island’s West Coast.  TTR is a New Zealand company headquartered in Wellington. We have an internationally experienced board and management team. This is our single project and sole focus. 2

The Company (2)  TTR is committed to build offshore iron ore extraction into a vibrant new resource industry for New Zealand.  This industry will help communities to thrive, keep skilled New Zealanders in the country and bring back others from overseas.  New Zealand has already benefited greatly from the TTR project - more than $50 M has been spent on the project using direct employment, local contractors, and research to advance the understanding of our oceans and beaches. 3

The Company (3)  We are well placed to develop this business. We have the best international expertise local skilled engineers and environmental experts. We will ensure that iron ore is extracted in an environmentally sensitive way.  TTR is not a small company. However even though some of our competitors may be much larger, we punch well above our weight!  We are their equal in expertise as TTR has a team of recognised global experts in the field of shallow water marine mining. TTR is already recognised for its knowledge. 4

The Environment  TTR is committed to conduct all its activities safely, in an environmentally sustainable manner and to proactively engage with local communities on economic, environmental and social issues. To that end TTR has robust Environment and Community, and Health and Safety policies, which will be later tabled in evidence.  TTR has spent over $8 M on research, focused on the environment and identifying the effects on the environment.  From this past and current work, TTR believes no marine project in New Zealand has involved more intensive scientific investigation other than perhaps studies in the late 1970s and 1980s associated with the Maui Gas field development. 5

Why Iron Sands?  NZ black sand onshore deposits are one of the world’s most extensive and most concentrated in Fe. They have been a known resource and were first used in 1869.  Iron sands are a feedstock at Bluescope’s Glenbrook steel works.  Taharoa has exported iron sand as iron ore since 1972 - very similar sand to what TTR will mine.  Sino Steel is well advanced on their Aotea onshore project which covers 3,400 hectares. 6

Markets for Iron Sand  The scale of iron sand deposits in TTR’s permits and our ability to harvest iron ore at low cost, provide a viable cost competitive supply for the world’s steel industries, with a natural freight advantage over Brazilian and West African ores.  In addition, Asian steel mills seek additional sources of iron ore to reduce reliance on a few major suppliers.  NZ iron sand offers steel mills enhanced financial returns through capturing the vanadium and titanium content. 7

TTR Value Pillars An emerging iron ore and marine mining technology company with large resource potential and competitive advantage resulting in potential to realise greater value over the medium to long term.  Early mover advantage  Technology solution has  Large scale, under- on bulk, scale -able cross commodity explored resource (7,880 km 2 , c.22% explored) marine mining IP application in alluvial marine deposits  Offshore JORC compliant drilling IP  Low sovereign risk, low-  JORC determined royalty regime, near to Resource by Golders market  Low capital intensity and  Experienced world-class infrastructure advantage board and management over land based deposits  Market appetite for low  Located close to Asian  Low site operating costs. cost Fe units, potential markets (freight No drill and blast, for Ti and V credits advantage) trucking or rail costs 8

TTR Project Highlights (1)  The TTR project is a sea based dredge mining operation focussed on extracting vanadium titano-magnetite ore (magnetite) from a 65.76 km 2 area of the South Taranaki Bight.  TTR is committed to deploy Mining permit technologies that are mature area 65.76 km 2 technologies. TTR’s technical solution now delivers this. 9

TTR Project Highlights (2)  TTR has a process of continual improvement. This is consistent with adaptively managing project design to improve project efficiency while, where practicable, avoiding, remedying and mitigating adverse effects on the environment.  TTR now presents a project which is optimised, soundly researched, and well planned.  Continual development remains our core focus. There are still opportunities for improvement in efficiencies and continuing to adopt best international practice. These are now on the fringes - the project is mature and ready to go. 10

Simple Production Process 11

Simple Single Pass Mining  A winching system locates the FPSO relative to the dredge which will be working 300 m × 300 m blocks in a predetermined sequence.  Moorings are moved at the completion of every second 300 m x 300 m block.  De-ored sediment is deposited as backfill as the FPSO follows the Crawler, usually in pre-extracted areas. The FPSO is aligned to minimise deposition of the de-ored sediment onto un-extracted areas.  This innovative system allows single pass mining, and hence once mined and backfilled the natural process of rehabilitation can occur. 12

Simple Low Cost Mining Traditional TTR Drill & Blast  Unconsolidated alluvial type deposit allows for low cost dredge Drill mining techniques. Blast  Proven crawler dredge mining. Transport  One TTR process replaces four Dredge Crush processes in a conventional hard rock mining operation. Screen Screen Mag Sep Mag Sep Grind Grind Mag Sep Mag Sep 13

Development Plan 2008-2012  Prospecting permit granted Q1 2008  First shallow drilling program undertaken Jan 2010 Q1 2010  First aeromagnetic survey completed March 2010 Q1 2010  Denham Share Purchase Agreement signed Q1 2010  Maiden JORC Resource Statement Q4 2010  Rockcheck investment signed Q1 2011  Executive appointments and establishment of Q4 2011 Wellington Head Office  Pre-Feasibility Study completed Q1 2012  Pilot beneficiation plant commissioned Q2 2012  Appointed world class NEDs and industry experienced Q2 2012 CEO  First exploration permit granted Q4 2012 14

Development Plan 2013-2016  Mining permit lodged and environmental studies Q3 2013 completed  EPA marine consent application lodged Q4 2013  DFS, strategic partnering, approvals granted and 2013/14 financing  Engineering, procurement and contract management 2013/14  Commercial production 2016 15

Internationally Recognised Advisors Recognised industry experts Engineering Exploration and Geological 16

Response to submissions (1)  TTR welcomes submissions and has been challenged by and learnt from them.  TTR has made full detailed responses to key points raised by submitters. These demonstrate the depth of research and knowledge TTR has of its project and its effects. The detail of these is presented in the documents filed and the evidence to follow.  TTR wishes to make some general points at this time. 17

Response to Submissions (2)  This is not deep sea mining and is not drilling for oil.  Submissions raising concerns about deep sea mining and deep sea drilling are not relevant to TTR’s application. TTR is not proposing to mine deep waters. TTR’s iron sand mine has no relevance to drilling for oil in deep waters. TTR is applying known and proven technologies in shallow sea areas. 18

Response to submissions (3)  TTR will not be removing “overburden”. This is seabed surface mining - taking the full face of mineralisation from the seabed floor down to the economic base of mineralisation.  Some submitters have suggested that extraction of the iron ore content from the mined material should occur on shore, TTR believes from its years of research that the optimal solution taking into consideration economic matters but especially environmental effects and foot print is the solution described in our application. 19

Conclusions  TTR is proud of its achievements to date.  TTR fully understands why some have anxieties around its project. TTR acknowledges that it is our task to provide the evidence which has already convinced TTR, to engage with people to ensure full information sharing and understanding.  TTR is confident that its science and its economic analysis is robust and will meet detailed scrutiny.  TTR believes that it will only be through investment in new business that the local economies of the Taranaki region will grow and be more prosperous. TTR will spend in the order of $150 M annually of which a large part will be in wages and purchases using both regional and national service providers. 20