Western Plains Resources Ltd Investor Presentation – Iron Ore Projects 14 June 2007
IMPORTANT NOTICE • This presentation contains forward looking statements concerning the projects owned by WPG. Statements concerning mineral reserves and resources 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 or 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 internally generated best estimates only. All such information and data is currently under review as part of WPG’s ongoing developments and in particular the Peculiar Knob Bankable Feasibility Study (BFS). Accordingly, WPG cannot guarantee the accuracy and/or completeness of the figures or data in this presentation and even when the BFS is completed WPG will not be able to guarantee or warrant the accuracy of such information. • All dollar amounts shown in this presentation are in Australian dollars unless otherwise stated.
Western Plains Resources Ltd • WPG listed on the on the ASX in August 2005. It is pre- development iron ore producer with gold and copper exploration assets • WPG acquired its iron ore projects in November 2006 when the Peculiar Knob and Hawks Nest tenements were acquired
WPG’s Capital Structure 70,301,722 ORDINARY SHARES UNLISTED OPTIONS OVER ORDINARY SHARES Expiry Number Exercise Price 23 August 2008 279,180 $0.25 16 September 2008 2,500,000 $0.30 28 September 2009 3,287,500 $0.25 28 September 2009 3,475,000 $0.35 26 October 2011 3,750,000 $0.25 13,291,680 Total Market capitalisation (diluted for in-the-money options) $71m (at $0.85/share)
Project Locations • WPG’s copper-gold exploration projects are in the Lachlan Fold Belt and in the Broken Hill Block • Our iron ore tenements are in South Australia
Iron Ore Projects • Peculiar Knob is 80 km S of Coober Pedy, 30 km E of the Stuart Highway, 20 km NW of the Prominent Hill mine and 85 km E of Adelaide-Darwin railway line • Hawks Nest is 115 km SSE of Coober Pedy, straddles Stuart Highway and is 45 km from railway line
Iron Ore Projects Photos show (clockwise from top): • Peculiar Knob hill; the orebody is under the plain, not the hill • High grade specular haematite in core from metallurgical hole at Peculiar Knob • Magnetite outcrop at Hawks Nest
Mineral Resource Estimates DSO Deposits Category Million Fe P SiO 2 Al 2 O 3 LOI Tonnes % % % % % Measured resource 13.5 63.7 0.01 7.3 0.3 0.5 Indicated resource 4.6 63.8 0.01 7.7 0.2 0.5 • Peculiar Knob Inferred resource 1.3 64.5 0.02 6.4 0.2 0.3 Total resource 19.4 63.7 0.01 7.3 0.3 0.5 Category Million Fe P SiO 2 Al 2 O 3 LOI Tonnes • Buzzard % % % % % Measured resource 1.8 62 0.03 9.3 1.2 0.8 Indicated resource 3.1 60 0.04 10.9 1.7 1.4 Inferred resource 1.8 59 0.06 8.7 2.9 2.5 Total resource 6.7 60 0.05 9.9 1.9 1.5 • Total Category Million Fe P SiO 2 Al 2 O 3 LOI Tonnes % % % % % Measured resource 15.3 63.5 0.01 7.5 0.4 0.4 Indicated resource 7.7 62.3 0.02 9.0 0.8 0.8 Inferred resource 3.1 61.3 0.04 7.7 1.8 1.2 Total resource 26.1 62.9 0.02 8.0 0.7 0.6
Mineral Resource Estimates Magnetite Deposits Category Million Fe P SiO 2 Al 2 O 3 LOI Tonnes % % % % % Measured resource 100 37 0.06 37 0.8 0.6 • Kestrel 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 LOI • All magnetite Tonnes % % % % % Kestrel – measured, indicated and inferred 220 36 0.06 38 0.9 0.7 Goshawk – inferred resource 148 35 Harrier – inferred resource 54 35 Eagle – inferred resource 92 31 Kite – inferred resource 30 51 Falcon – inferred resource 25 32 Total resource 570 36 - - - -
Peculiar Knob BFS • Commenced late in 2006; drilling started January 2007 and was completed in late March. • High quality independent consultants engaged for BFS • Disciplines include resource modelling and estimation, environment and hydrogeology, geotechnical engineering, ore reserves and mine design, metallurgical testwork, plant engineering and costing, site and offsite infrastructure, iron ore marketing analysis, production and cashflow modelling, and reporting • External budget $1.6m, all up >$2m
Peculiar Knob Drilling • 7,400m program in 63 RC holes and 5 diamond core holes • Orebody modelling virtually complete • Very high grade Fe, low P, low Al 2 O 3, low LOI
DSO Mining Concept • Peculiar Knob mining lease application lodged 30 May; Buzzard MC and ML applications to follow • Very simple open pit mine initially at 1.5mt ore pa growing to 3 mtpa for 10 year minimum mine life for combined Peculiar Knob and Buzzard DSO; site works to commence Q1 2008 • Possible eventual underground mining to extend life of project • Crushing and screening plant to produce lump and fines • Product to be trucked to Wirrida or Carne, railed probably to Whyalla initially; later possibly to Port Bonython • Initial tug and barge operation to load Capesize vessels in Spencer Gulf; possibly use Port Bonython if it is upgraded • Contractors to be used where possible in supply chain to minimise capex • Manning – expect about 100 persons in camp
Mine to Rail Logistics • After crushing and screening, product will be trucked to Wirrida or Carne on special haul road using very large (300t payload) dual powered road trains operating 24/7 • Open air stockpiles to be built at siding and trains loaded using FELs; ore to be blended st siding
Rail to Port Logistics • Train size now being optimised for 2 mtpa from Wirrida (Peculiar Knob alone) or 3 mtpa from Carne. Train capacity 5,000 to 8,000 tonnes • Ore will be stockpiled in shed at port for transhipment to Capesize vessels in Gulf; possibly later directly to ship at Port Bonython
Exports – We prefer Whyalla • Upper Spencer Gulf ports include Whyalla, Port Pirie and Port Bonython • DSO is already being exported from Whyalla using tug and barge operation • We are negotiating for access to use of Whyalla • Port Bonython can handle Capes but needs major upgrading as there is no railway line for last 25 km
Transhipment - Tug and Barge Operations • Used widely where near shore waters are shallow • Very common in Indonesian coal exports, oil and gas industry etc • This approach now used for export of 3mtpa DSO from Whyalla
Port Pirie is a Viable Alternative • Port Pirie exports zinc concentrates, lead, silver, grain and other commodities • We are negotiating for access to former grain loading site for construction of storage shed and barge loader
Port Bonython • Port Bonython is used for export of crude oil, LPG and gas; power and gas available on site • It can handle Capes, but will need 25 km rail spur and ore loader. We will try to get Government support • We will use Port Bonython for export of magnetite products from Hawks Nest – eliminates need for tug and barge
Hawks Nest • Hawks Nest contains both high grade DSO deposits and large magnetite deposits • DSO occurs at Buzzard and also at Kite prospects; realistic expectation of about 15mt in total giving target >30mt DSO between Peculiar Knob and Hawks Nest • We have just finished 2,000m drilling program focussing on DSO exploration; good hits at Kite and more drilling required • The magnetite deposits (Kestrel, Goshawk, Eagle, Falcon) are suitable feed for production of concentrate, pellets or pig iron • Testwork suggests ultrafine grinding will not be required to produce 68% Fe concentrate; metallurgist advises better characteristics than most WA BIFs • Hawks Nest could support a very large project with a long mine life
Hawks Nest Project
Hawks Nest Project
SUMMARY - TAKEAWAY • Export 3 mtpa high grade, low impurity DSO from Peculiar Knob and Hawks Nest for 10 years beginning mid 2008 • This is a low capex, low risk project which could return initial investment in 2-3 years • Bring magnetite deposits at Hawks Nest into production in 2011 at 8 mtpa of concentrate, pellets or pig iron – 50 year project life
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