Joyce Lake update, the new DSO zones at Lac Le Fer to Iron Arm Range

Transcription

1 Joyce Lake update, the new DSO zones at Lac Le Fer to Iron Arm Range Allan Gan Mineral Resources Review 2015 St John s, NL TSX: FER

2 Forward Looking Statement Except for statements of historical fact, this presentation contains certain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as plan, project ; intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Corporation on terms acceptable to it or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, the ability to obtain required permits, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally, potential environmental issues and liabilities associated with exploration and development and mining activities. The Corporation is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. The Corporation undertakes no obligation to update forward-looking information if circumstances or management s estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities by the Corporation. 2

3 Ferrous & Non-ferrous Strategy with Strong Chinese SOE Strategic Partnerships WISCO International Resources Development & Investment Ltd (PRC) 40% + 60% offtake 23.5% JV Cash: $17M 100% Attikamagen Project 60% Century Iron Mines Corporation (TSX: FER) 100% 65% (Note 1) Sunny Lake Project 100% 100% 4.7% Strong balance sheet ($40M) for strategic M&As Century Food (trading) Duncan Lake Project Minmetals Exploration & Development (Luxembourg) Limited S.à.r.l Raising additional funds to expand scope of investments Non-ferrous M & A: Down-cycle value creation Ferrous Organic growth : Projects are self- funded to FS & EIS with ~$10B NPV on 20Bt Value Acquisition in Undervalued Markets Development of Century s Iron Assets Commodity cycle upside Lower cost curve Self-funding potential Attraction to strategic partners Joyce Lake : highgrade low capex / opex- 1 st Priority Full Moon taconite: high-volume LT supply

4 DSO Projects: Progress and Momentum Acquired Attikamagen Property and Sunny Lake Property Airborne geophysical survey, ground gravity survey; surface mapping; Formation of Jointed Venture of Century and Wisco, as owner and operator for Attikamagen ad Sunny Lake Property; Exploratory drilling at Joyce and Lac Le Fer area, confirming Joyce HG mineralization; Systematic drilling at Joyce, discovered Joyce DSO deposit; with first resources estimates and PEA; completed baseline study; Ground gravity, magnetic survey at selected targets at Lac Le Fer area; Data compilation, Geophysical interpretation/modeling and DSO Study; Detailed drilling at Blackbird, and discovered Blackbird DSO deposit, first resources estimates; BFS and EIS for Joyce Lake DSO project; 4

5 DSO Beyond Joyce Lake A number of DSO targets under exploration Lac Le Fer Iron Arm Range: A New Iron Ore Zone Helluva DSO Target Blackbird 58% Fe 130 km long Lac Le Fer Iron Arm Range is comparable to the Knob Lake Range at west at Schefferville Newly discovered DSO deposits, dominated with Hard DSO and soft DSO, comparable in terms of grade and processing features; BFS on Joyce highlighted the base for development of DSO along the range; optimization of resources base and potential increase in total production for proposed infrastructures; Geophysical survey and drilling identified other major targets/anomalies, leading to major resources; Joyce % Fe Prudhomme DSO Target 5

6 Positioning Our World Class Iron Ore Assets for Success When the Market Recovers DSO Taconite Magnetite Total NI Joyce Black Bird Full Moon Hayot Duncan Ownership 60% 81.4% 81.4% 60% 65% Stage BFS Deposit PEA Deposit PEA P & P (1,2) Reserves 17.7 Mt (59.7%) 17.7 Mt M & I (1,2) resources 24.3 Mt (3) (58.6%) 1.6 Mt (59.9%) 7.3 Bt (30.2%) Bt (24.2%) 8.4 Bt Inferred (1,2) Resources 0.8 Mt (62.5%) 8.6 Mt (57.0%) 8.7 Bt (29.9%) 1.7 Bt 0.6 Bt (24.7%) 11.0 Bt IRR (1,2) (pre-tax) 18.7% 15.2% 20.1% NPV (C$) (1,2) 8% $130M $5.7B $4.1 B Payback (1,2) (pre-tax) 4.4 yrs 5.7 yrs 4.2 yrs Production Mtpa (1,2) : represents 100% basis at the project level 2: as per NI technical reports filed on Sedar 3:inclusive of Proven & Probable resources of 17.7 Mt 7

7 JOYCE LAKE GEOLOGY MINERAL RESOURCES S2 Longitudinal Section 2 MAIN CHANGES FROM PREVIOUS RESOURCE MODEL (2013) 43% INCREASE IN TOTAL RESOURCE AT 50% FE CUT-OFF 108% INCREASE IN MEASURED AND INDICATED RESOURCE AT 50% FE CUT-OFF 68% INCREASE IN POTENTIAL IN-PIT RESOURCE AT 56% FE CUT-OFF 64% INCREASE IN POTENTIAL IN-PIT M+I RESOURCE AT 56% FE CUT-OFF 72

8 Joyce Lake DSO Project 17.7Mt High Grade Reserves Reserves Tonnage Grade Grade (t) (%Fe) (%SiO 2 ) High Grade Proven (above 55% Fe) M Low Grade Proven (52% - 55% Fe) 2.89 M Proven Reserves (above 52% Fe) M High Grade Probable (above 55% Fe) 2.45 M Low Grade Probable (52%-55% Fe) 0.75 M Probable Reserves (above 52% Fe) 3.20 M Total Reserves (above 52% Fe) M Oblique View of Joyce Lake Mineralized Envelopes for Block Modeling, Looking North 8

9 Joyce Lake Feasibility Study (March 2, 2015) Pre-Tax IRR of 18.7% NPV at 8% discount of $130.9 Million Payback period of 4.4 years FOB Operating Cost (Note 1) C$/ tonne Mining Processing 2.25 Product Hauling 3.52 Rail Load-Out 1.11 Rail Transportation, Port & Ship Loading Site Administration 4.17 General and Administration 1.04 Total Opex FOB, Sept-Îles $58.25 Total Opex FOB, Sept-Îles US$ $46.61 Production up to 2.5 M tonnes annually of DSO products 7 year mine life with first 5.6 years at average 61.4% Fe and remaining mine life from low grade stockpiles averaging 53.3% Fe. Joyce Lake Feasibility Study Capital Cost C$M Mining (Capitalized Pre-Stripping) 15.3 Mining Equipment (Owner Fleet) 23.3 Infrastructure Railcars 42.0 Other Mobile Equipment 25.9 Indirect 28.7 Sub-Total Contingency 13.9 Total Project Cost Open pit mine followed by dry crushing and screening to generate 65% as sinter fines and 35% as lump Target to be pre-construction ready in 1-2 years. FOB price assumption Sinter fines $95/t Note 1: Opex is estimated on FOB Sept-Îles basis Note 2: Based on 100% ownership of the project 21

10 JOYCE LAKE MINE AREA WASTE DUMP OVERBURDEN STOCKPILE JOYCE LAKE OPEN PIT DRY PLANT AREA MOBILE CRUSHING-SCREENING PLANT 3.0MTPY MAXIMUM CAPACITY 2.5MTPY NOMINAL CAPACITY TWO PRODUCTS LUMP (+6.3MM 31.5MM) SINTER FINES (-6.3MM) OFFICES, SHOP WAREHOUSE MINE AREA STRIP RATIO 4.09 DRY PLANT MINERAL RESERVES 14.08MT FE ~ 62%, SIO2 ~ 8% 3.64MT FE %, SIO2 ~ 20.5% TOTAL MINERAL RESERVES MT LOM OVER 7 YEARS LOW GRADE STOCKPILES MAGAZINE CAMP FUEL STORAGE POWER PLANT HAUL ROAD BRIDGE ROCK CAUSEWAY BRIDGE Labec Century Iron Ore Ltd. 10 2

11 Joyce Lake Southern Extension Enriched rocks identified in gravity anomalies 11

12 Geophysical data Interpretation/Modeling Ground Gravity Data + Magnetic Survey Data and Geological, Drilling Compilation Preliminary Data Interpretation Potential Resources Modeling Joyce Area Hayot Area Lac Le Fer East (Blackbird) Composed Section for LLF-12 12

13 Geophysical data interpretation of Joyce South Section JYL-3 N2.0) Section JYL-7 Section JYL-6 Section JYL-13

14 Signatures for DSO Mineralization Stratigraphic: Sokoman Formation Structure: NW and cross-cut striking fault system; widely spaced reverse faults; Hinges of open-tightly folds; Topography: Hard DSO: could be on higher ground Soft DSO: mostly in depression area Geophysical: De-magnetization High gravity Geochemical: Trace Element, REE Oxygen - Isotope 14

15 Geophysical data interpretation of Blackbird Targets

16 Blackbird DSO Deposit Resources Estimates Completed 30 HQ3 diamond drill holes totalling 3,083 metres in Assay results announced Nov 12 and Dec 11, 2014 representing 30 holes drilled. Section S106 A B Mineral Resource Statement*, Blackbird Deposit, Sunny Lake Property, Quebec, SRK Consulting (Canada) Inc., February 27, 2015 Lithotype SG + Tonnes Fe # SiO 2 Mn # P # 000 (%) (%) (%) (%) Indicated Mineral Resources Hard DSO Soft DSO Total Indicated 3.8 1, Inferred Mineral Resources Hard DSO Soft DSO , Total Inferred , B Section S112 A 13

17 Contact Information Century Iron Mines Corporation Allan Gan Senior Exploration Manager (416) Ext