Pilbara Iron Ore Project - Sydney Investor

Pilbara Iron Ore Project
Prefeasibility on track
Kevin Wills
Managing Director
Right commodity
Right address
Right project
Right timing
* Please refer to Slide 21.
FLINDERS
MINES
Iron ore
Pilbara
Potential for 113Mt DSO ore and low-cost mining*
Option for fast track start 2012
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 1
Location of projects
0
BROOME
PORT HEDLAND
DAMPIER


PILBARA
IRON ORE REGION


MINES
Pilbara
400 km
200
FLINDERS
PILBARA HEMATITE PROJECT
•175km south of Dampier
•550Mt Indicated and
Inferred Resource*
•CID and BID hematite
•Prefeasibility in progress
Pilbara
Drilling

TOM PRICE
WESTERN
AUSTRALIA
MIDWEST
IRON ORE REGION
MOUNT MAGNET  
GERALDTON
CANEGRASS MAGNETITE PROJECT

 KALGOORLIE-BOULDER
PERTH


ESPERANCE
Canegrass
•370km E of Geraldton
•Exploration Target* of
1.7 to 3.0Bt of 20-40%
magnetite
•Soft gabbro host rock –
low energy costs
Canegrass
Drilling

ALBANY
* Please refer to Slide 21.
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 2
Development highlights
FLINDERS
MINES
• Two significant iron ore projects
– Pilbara (Blacksmith hematite) and
– Mid West (Canegrass magnetite)
Company making potential
• Non iron assets moving to Flinders Exploration Limited
(FEX) IPO
• $59.0M cash in bank at 22 March 2010
• WorleyParsons undertaking Prefeasibility Study (PFS)
– on track
• Bankable Feasibility (BFS) planned to start Q4 2010
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 3
Project highlights
FLINDERS
MINES
• Pilbara 550Mt iron ore Indicated and Inferred Resource*
at 55.6% iron
• Delta 113Mt Indicated and Inferred Resource* of lower CID
and BID at 58.5% iron – potential direct shipping ore
• Metallurgical and beneficiation testwork underway
• Mining studies underway suggesting low cost mining
• Several short and long-term infrastructure options due to
location and Pilbara developments eg WA Government
recently backed new multiuser port at Anketell
* Please refer to Slide 21.
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 4
Corporate
FLINDERS
MINES
Shares on issue
Shareholders
1,819 million
13,503
Now included in
S & P/ASX 300 Metals and Mining Index
ASX Emerging Companies Index
Recent trading 22.3.2010
Shares 13.0 cents
Share price and volume – past 6 months
Market capitalisation
$237 million
Cash in hand
$59 million
Top 20 shareholders 481M shares 26.5%
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 5
Executive team
FLINDERS
MINES
Kevin
Wills
Gary
Sutherland
Nick
Corlis
David
Godfrey
Mick
Anstey
Managing
Director
General
ManagerProjects
Exploration
Manager
Chief Financial
Officer
Manager
HSE & Risk
Appointed Appointment
in progress
Manager
Project
Services
Mining
Manager
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 6
Pilbara Iron Ore Project (PIOP)
To Dampier
185 km
Inferred Resource
ou
o
r do
bu
ara
-P
i er
ay
ilw
mp
Ra
Da
ab
Blacksmith
Delta
Champion
Anvil
• E47/882 – 108 sq km
• Five deposits 550Mt*
–– Ajax, Blackjack, Champion,
Delta, Eagle
• Scoping Study suggests focus
on Delta – highest grade/lowest
stripping ratios
• 19km from Dampier –
Paraburdoo railway
• Additional resource expected
Ajax
Blackjack
MINES
Blacksmith
Indicated Resource
m
9k
t1
FLINDERS
Eagle
Anvil
0
5 km
To Tom Price
40 km
* Please refer to Slide 21.
To Paraburdoo
130 km
• E47/1560 – 44 sq km
• Resources in new Global
resource – expected April 2010
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 7
Delta Valley perspective view to southwest
FLINDERS
MINES
Delta Valley resource area
N
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 8
Key rock types
FLINDERS
MINES
Overburden
Basement - BIF
CID
BID
50m
50m
Note: Section is diagrammatic
Overburden (OBD)
Waste
Channel iron deposit (CID)
Ore
Bedded iron deposit (BID)
Ore
Banded Iron Formation (BIF) – Basement
Waste
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 9
Outcropping Bedded Iron Deposits
FLINDERS
MINES
Delta Deposit
Outcropping BIF – basement
Area of outcropping BID
Cover overlying CID
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 10
Global Resource
MINES
Tonnage
Mt
Fe
%
SiO2
%
Al2O3
%
P
%
LOI
%
+50%
550.1
55.6
9.6
4.6
0.07
5.7
117º25'
Indicated and Inferred*
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• 1022 holes /
50,519m
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Champion
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E47/882
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518
Open
Blackjack
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Total drilling to date
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Ajax
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Open
Open
Delta
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Blacksmith Camp
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(BID intersection outside Inferred Resource)
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RC Drillhole
Exploration Tenement
0
1 km
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RC Drillhole
Open
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Open mineralisation
* Please refer to Slide 21.
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Indicated Resource (+50% Fe cutoff)
Inferred Resource (+50% Fe cutoff)
Resource estimates by
Golder Associates Pty Ltd
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• 721 RC holes /
35,480m
• 32 metallurgical
drill holes

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
2009 Drilling
117º30'
Iron Grade
Cut-off

JORC Classification
FLINDERS
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PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 11
-22º10'
Delta activities
FLINDERS
MINES
RC drilling
Diamond drilling
Geophysical logging
RC chip logging
Core logging
Blacksmith camp
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 12
Delta Indicated and Inferred Resource
Si
%
Al
%
P
%
LOI
%
50% cutoff – Indicated and Inferred*
0
Lower CID
54.7
59.7
6.2
4.4
0.06
2.9
BID
58.3
57.4
4.7
2.9
0.13
9.4
Total
113.0 58.5
5.4
117°30'
Fe
%
3.6 0.10
6.3
MINES
117°28'
Mt
FLINDERS
-22°08'
500 m
rm
A
rth
o
N
E47/882
57% cutoff – Indicated and Inferred*
50.5
59.9
6.1
4.3
0.06
2.9
BID
33.1
58.5
3.9
2.7
0.13
8.9
Total
83.6 59.3
5.2
3.7 0.09
5.3
Delta
Open 

Lower CID
ut
o
S
rm
A
h
Open
* Please refer to Slide 21.
•Inferred resource hole spacing 500 x 100m
•Indicated resource hole spacing 125 x 100m
•381 RC drillholes for 21,577m
Completed RC drillhole
Open mineralisation
Indicated Resource (+50% Fe cutoff)
Inferred Resource (+50% Fe cutoff)
Original Exploration Target
Exploration licence
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 13
Delta Orebody
FLINDERS
MINES
Cross sections
Plan view of block model
Distribution – Lower CID
Distribution – BID
Resource estimation
Block model has 44,576 mineralised blocks of
25 x 25m N & E, 2, 4 or 6m RL slices.
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 14
Metallurgical testwork
Unconfined
compressive
strength
(UCS)
Screen to lump
and fines
Crushing work
index
(CWI)
Size by size
analysis
Head assay
BOND abrasion
index (BAI)
Bulk density
Lump to fines
ratio
Heavy liquid
separation
• Logging completed
–– Photographic
Ore composition testwork
Individual ore type testwork
(PQ3 83mm)
Crush to
-33mm
MINES
Current Status
• Drilling completed, 32 holes
Diamond drill core
In situ specific
gravity
FLINDERS
–– Geophysical
–– Geotechnical
• Phase 1: results available
• Phase 2: assessment being
prepared
1. UCS = a measurement of the true rock strength.
2. CWI = measures the relative resistance of the rock to the impact of a crusher.
3. BAI = determines the abrasiveness of the ore
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 15
Delta – Mining benefits
FLINDERS
MINES
• Open cut low cost mining possible
• Majority of mining above water table ie dry
• Potential for low waste/ore ratios
• Early testwork indicates most of orebody is free dig
• Proximity to existing infrastructure
• Multiple infrastructure options available
• Additional high-grade DSO/BID expected
• Fast track option under consideration for production in 2012
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 16
Conceptual development timetable options
2009
Scoping study complete
2010
2011
2012
FLINDERS
MINES
2013
t
Prefeasibility study (PFS)
t
Potential fast track decision
Bankable feasibility study (BFS)
Design and construct
Operation
DSO (Direct shipping ore) path
Commence production late 2012
Beneficiation and infrastructure path
Commence production late 2013
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 17
0
INDIAN
20 km
Dampier
  Cape Lambert


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

Karratha
Karratha

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
Balla
Balla Balla
Balla
Roebourne
Roebourne

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




Whim
Whim Creek
Creek
API
IRON ORE TENURE
FMS Tenements
FMG Tenements
RIO Group Tenements
Aquila Tenements
Railway
Sino
Sino
p
Ca
b
am
eL
ert



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
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
ica
on
aw
n
n
Pa
Pannawonica
Pannawonica 




Da
Mesa JJ
Mesa
Robe
Robe Mesas
Mesas
API
BLACKSMITH
Kens
Kens Bore
Bore
Cardo
Cardo Bore
Bore North
North
Cardo
Cardo Bore
Bore East
East
Catho
Catho Well
Well
ANVIL
Upper
Upper Cane
Cane
Trinity
Trinity Bore
Bore
bu
r do
o
Caliwingina
Caliwingina
Bungarroo
Bungarroo Ck
Ck
Existing
FMG (Proposed)
Aquila/API (Proposed)
Railway
Cochrane/Jewel
Cochrane/Jewel
FMG
Homestead
Homestead
Silvergrass
Silvergrass
Major Iron Ore Deposits
Ports (Existing)
Ports (Proposed)
Localities
Roads
RAILWAYS
FMG
mp
ier
Pa
ra
-22°
MINES
Anketell
OCEAN
Cape Preston
FLINDERS
118°
116°
Infrastructure options
Serenity
Serenity
Solomon
Solomon Firetail
Firetail
East
East
• Well located with
respect to existing
infrastructure
• PFS considering seven
potential infrastructure
options
• Ideally located for
numerous long term
proposed infrastructure
development solutions,
both rail and port
Nammuldi
Nammuldi
Brockman
Brockman 22
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 18
Project milestones
Milestone
FLINDERS
MINES
Targeted
Commence exploration
November 2007
Orebody discovery
August 2008
First Inferred Resource
April 2009
Scoping study
August 2009
First Indicated Resource
February 2010
First mining plan
April 2010
Complete PFS
Q4 2010
Fast Track Option (FT)
Complete FT BFS
June 2011
FT Ministerial approval
June 2012
Complete FT design and construction
October 2012
FT operation
December 2012
Beneficiation and Infrastructure Option (B&I)
Complete B&I BFS
September 2011
B&I Ministerial Approval
September 2011
Complete B&I design and construction
September 2013
B&I operation
December 2013
Achieved





PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 19
Project standouts
FLINDERS
MINES
• Part of Pilbara Iron ore province
• WorleyParsons undertaking PFS – on track
– BFS to commence Q4 2010
• Large Global resource of 550Mt* part requires beneficiation
• 113Mt* of Potential DSO Resource at Delta
• Dry mining, free diggable ore and low waste leads to low
mining costs
• Infrastructure options available – WA Government recently
backed new multiuser port at Anketell
• Fast track option – potential production in 2012
* Please refer to Slide 21.
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 20
Compliance statements
Disclaimer
FLINDERS
MINES
Exploration Targets
This presentation is designed as a general overview of Flinders
Mines Limited’s (FMS) activities. You should not make an
investment decision with respect to FMS based solely on this
presentation.
The presentation contains forward looking statements that are
subject to risk factors associated with the exploration and mining
industry.
It is believed that the expectations reflected in these statements
are reasonable, but they may be affected by a variety of variables
which could cause actual results or trends to differ materially.
JORC Compliance
Exploration Targets are reported according to Clause 18 of the
JORC Code. This means that the potential quantity and grade is
conceptual in nature and that considerable further exploration,
particularly drilling, is necessary before any Identified Mineral
Resource can be reported. It is uncertain if further exploration will
lead to a larger, smaller or any Mineral Resource.
Resources
550Mt Global Resource comprises 157Mt Indicated @ 56.5% Fe
and 393Mt Inferred @ 55.1% Fe.
Delta Indicated and Inferred Resource
Mt
Fe
Si
%
%
Al
%
P
%
LOI
%
50% cutoff – Indicated and Inferred
Competent Person
The information in this report that relates to Exploration Results,
Mineral Resources and Ore Reserves is based on information
compiled by Dr K J A Wills (who is a Fellow of the Australasian
Institute of Mining and Metallurgy) and Mr N Corlis (who is a
member of the Australian Institute of Geoscientists). Dr Wills and
Mr Corlis are employees of Flinders Mines Limited. Both have
sufficient experience that is relevant to the style of mineralisation
and types of deposit under consideration and consent to inclusion
of the information in this report in the form and context in which it
appears. Dr Wills and Mr Corlis qualify as Competent Persons as
defined in the 2004 Edition of the “Australasian Code for reporting
of Exploration Results, Mineral Resources and Ore Reserves”.
Lower
CID
BID
Indicated
43.3
59.8
6.1
4.4
0.07
3.0
Inferred
11.4
59.2
6.7
4.5
0.05
2.8
Indicated
49.9
57.7
4.4
2.9
0.13
9.3
8.4
113.0
55.5
58.5
6.6
5.4
2.8
3.6
0.12
0.10
10.5
6.3
Inferred
Total
57% cutoff – Indicated and Inferred
Lower
CID
BID
Total
Indicated
40.6
60.0
6.0
4.2
0.07
2.9
9.9
59.6
6.4
4.3
0.05
2.7
Indicated
32.8
58.5
3.9
2.7
0.13
8.9
Inferred
0.3
83.6
57.8
59.3
5.5
5.2
2.4
3.7
0.12
0.09
8.7
5.3
Inferred
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 21
Finale
FLINDERS
MINES
Right commodity Iron ore
Right address
Pilbara
Right project
Potential for 113Mt DSO ore and
low-cost mining
Right timing
Option for fast track start 2012
For further information please visit our website
at www.flindersmines.com or contact:
Kevin Wills on 08 8132 7950 or 0419 850 997
Email: [email protected]
62 Beulah Road Norwood South Australia 5067
Telephone 08 8132 7950
Duncan Gordon - Investor relations on
08 8232 8800 or 0404 006 444
Email: [email protected]
PILBARA IRON ORE PROJECT - SYDNEY INVESTOR PRESENTATION 26 MARCH 2010 22