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EMETALS LIMITED Investor Presentation 2011
64850_rns_2011-10-09_200b0009-c95c-441a-a479-1c3385a819d6.pdf
Investor Presentation
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WEST PEAK IRON LTD
Exploring Iron Ore Frontiers
Investor Presentation October 2011
Disclaimer
All currency amounts are in AUD$ unless stated otherwise.
This presentation has been prepared by West Peak Iron Limited ("West Peak" or the "Company").
This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by West Peak Iron Limited.
This document has been prepared as a summary only, and does not contain all information about the Company's assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company's securities.
The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future.
Further details on risk factors associated with the Company's operations Company's and its securities are contained in the Company's prospectus dated 13 August 2010 and subsequent announcements to the Australian Securities Exchange.
This presentation or the Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.
Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded.
Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company.
FUTURE MATTERS
This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company.
Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. Given the risks and uncertainties that may cause the Company's actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended.
COMPETENT PERSONS' STATEMENT
Scientific or technical information in this news release has been prepared under the supervision of Mr Shane Tomlinson, an employee of the Company and a Member of the Australian Institute of Geoscientists (AIG). Mr Tomlinson has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Mr Tomlinson consents to the inclusion in this report of the Information, in the form and context in which it appears.
FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS
Some statements in this announcement regarding estimates or future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include, but are not limited to, statements concerning the Company's exploration program, outlook, target sizes and mineralised material estimates. They include statements preceded by words such as "expected", "planned", "target", "scheduled", "intends", "potential", "prospective", "seek" and similar expressions.
US DISCLOSURE
This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any "US person" as defined in Regulation S under the US Securities Act of 1993 ("Securities Act"). The Company's shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.
Investment Highlights
- Five granted licences for a total of 1,007 km² in a historic iron ore producing province, including current known resources: Sesa Goa's Bomi Hills JV (50Mt @ 68% Fe) and China Union's Bong Range (1Bt+ @ 35% Fe)
- Licenses 100% owned West Peak Iron Ltd
- Licences located proximal to existing or currently being upgraded infrastructure including rail, road and port to meet mining industry requirements
- Maiden field trip identifies iron enrichment with rock chip grades up to 64.6% Fe demonstrating the potential for direct shipping ore ("DSO") iron mineralisation
- Bomi South – intermittent outcropping iron formations over a strike length of 40 km with potential for high grade hematite "DSO" mineralisation
- Grand Bassa – 4 km of outcropping iron formations with potential for hematite mineralisation, located 3 km from operating rail line.
- Liberia has favourable and supportive mining policies, the mining investment is driving the economic rebirth of the country
- Liberia has had seven years of political stability which has translated into significant foreign investment with major mining houses like BHP Billiton and AccelorMital leading the way
- Significant Liberian corporate activity underway, i.e. Sesa Goa paid US$90m for 51% of the Western Cluster
- 13 other Australian companies currently exploring in Liberia
- Significant land holding in the emerging Mid West and Yilgarn Iron provinces of Western Australia
Corporate Snapshot
| Shares | Options | Market Cap (@14c) | Cash | Enterprise Value | |
|---|---|---|---|---|---|
| Current Capital Structure | 24,000,001 | 12,500,000 | $3.36m | $1.18m* | $2.20m |
| Proposed Placement** | 3,500,000 | 1,750,000 | - | $0.49m | - |
| Pro-forma Capital Structure*** | 27,500,000 | 14,250,000 | $3.85m | $1.65m | $2.20m |
- Cash circa at end of September 2011
** Mandate with Alto Capital to raise $490,000 (pre costs) through issue of 3,500,000 shares at $0.14 including a free 1,750,000 options (on a best endeavours basis) to sophisticated investors
*** Assuming placement is completed in full
WPI Share price graph (Daily line chart) and volume, source: ASX.com.au
Major shareholders
| Directors | 15.8% |
|---|---|
| Top 20% | 57.3% |
Listed on the ASX
ASX Code: WPI
ASX
AUSTRALIAN SECURITIES EXCHANGE
Board and Management
David Parker, Executive Chairman
- Over 10 years experience in investment and corporate advise, including advising on ASX corporate listings, capital raisings and management of resource exploration companies.
- Has served has Director or Corporate Advisor of listed resource companies with mineral interests in Australia, North America, South America, Central Asia, Mongolia and China.
Graham Marshall, Non-Executive Director
- Over 20 years of project development in the resources industry (Certified Practicing Project Director and a member of the Australian Institute of Project Management). Key experience in the development of large mines and mineral processing facilities.
John Royle, Non-Executive Director
- Mr Royle has over 15 years international business experience including approximately 5 years management consultancy experience at Accenture, UK. Mr Royle has a strong focus on economic development at local regional levels which will assist in the development and incorporation of local businesses in mineral activities.
Shane Tomlinson, Exploration Manager
- Mr Tomlinson over 15 years of mine and exploration geology experience across a broad range of commodities and geographical locations, including Western Australia (a senior exploration geologist at a leading Western Australian DSO Iron Ore explorer / producer for two and a half years) and West Africa (Senior Geologist in Guinea for three and a half years).
- Mr Tomlinson has extensive experience in identification, development and exploitation of mineral resources and is deemed a competent person under JORC.
Liberia is the re-emerging as a global producer of iron ore
Liberia is pro-mining!
- Liberia was in the top 5 global exporters of iron ore in the 1960's and 1970's
- Liberia is seeking international mining investment to help rebuild the economy, infrastructure, provide state royalties, create jobs and social outcomes
- Politically stable for seven years, democratic elections being held in October and November 2011
- Collective foreign investment since 2005 in excess of US$10 Billion from multinationals.
- Arcelor Mittal announced first shipment of iron ore produced from Yekepa Project and exported through the port of Buchannan during October 2011
Liberia, West Peak licenses, major iron occurrences and infrastructure
Bomi South Project
Location:
- Within 60km NNE from the capital Monrovia
- Accessed by sealed roads to east and west tenement boundaries
- Proximal to historic iron ore mines
Geology:
- Intermittently outcropping iron formations over 40 km
- Hematite and magnetite iron mineralisation identified
New Rail:
- Bong railway line runs through license, China Union plans to refurbish the line to Monrovia
- Sesa Goa JV plans to refurbish the railway from Western Cluster to Monrovia
Monrovia Port:
- Monrovia Port currently operational with upgrades pending, previously exported circa +6Mtpa Iron Ore
Bomi South – potential for high grade DSO product
High grade rock chip assays
- 115 non systematic rock chips taken during June 2011 over a 40km strike
- Returned assay grades range 30.4% to 64.6% Fe, with over half returning grades greater than 50% Fe
- XRF analysis was completed by SGS in Johannesburg, South Africa during August 2011
- Iron mineralisation is typical West African style where metamorphosed BIF's have recrystallised to itabirite. These units have been subjected to supergene processes to form a hematite rich iron cap.
- Assay results demonstrate presence of hematite rich iron capping with DSO potential
- Canga mineralisation identified down slope
| Sample ID | Fe % | SiO_{2} % | Al_{2}O_{3} % | P % | LOI % |
|---|---|---|---|---|---|
| WPL004 | 57.5 | 8.68 | 4.06 | 0.08 | 3.85 |
| WPL024 | 64.0 | 6.38 | 0.94 | 0.02 | 0.71 |
| WPL055 | 58.2 | 7.99 | 2.75 | 0.05 | 6.35 |
| WPL064 | 62.8 | 3.66 | 3.79 | 0.04 | 2.87 |
| WPL096 | 58.7 | 2.47 | 1.93 | 0.02 | 10.06 |
| WPL103 | 57.7 | 3.5 | 1.6 | 0.17 | 12.45 |
| WPL111 | 60.9 | 6.4 | 1.39 | 0.17 | 4.31 |
| WPL115 | 64.6 | 3.34 | 1.5 | 0.03 | 2.01 |
Selected Rock chip assays from Bomi South
Supergene enriched hematite cap, WPL096, 58.7% Fe
Bomi South – potential for high grade DSO product
- Reprocessed historic aeromagnetic data shows magnetic anomalies coincident to identified iron formations from US Geological Survey data
- Units outcrop intermittently over the tenement as ridges with strike lengths up to 4 km and elevations up to 100 m, but generally averaging 30-50 m.
- Geological structures present which could present zones of focused enrichment i.e. folding
Reprocessed historic aeromagnetic data with overlain rock chip assays, showing high grade iron results coincide with magnetic anomalies
Grand Bassa
Location:
- 35km from NE of Buchanan
- Accessed by roads from the eastern tenement boundary
Geology:
- 4km of outcropping iron formation
- Assay grades range from 48.1% to 53.1 % Fe
- Hematite / Goethite capping and canga style mineralisation identified
Rail:
- Iron prospect 3km from operating railway line
Port:
- Located 40km from Buchanan Port which is currently exporting iron ore
Grand Bassa license geology and proximity to infrastructure
Company Project Timeline
| Liberia Projects | |
|---|---|
| Listed on the ASX and completed WA projects acquisition | Oct 2010 |
| Bomi South and Grand Bassa Exploration Licenses granted | April 2011 |
| Maiden Field visit | June 2011 |
| Monrovia project office opened | July 2011 |
| Rock Chip results received | August 2011 |
| Field visit to Mt Koklun, Dig Creek and Bobo Creek Projects | November 2011 |
| Detailed Geophysics to be flown | Nov/Dec 2011 |
| Maiden Drill Program | 2012 |
Left: Monrovia Project office and team; Middle: On location with map and surveyor; Right: Canga – WPL108, 52.5% Fe.
Liberian Reconnaissance Licenses
West Peak holds additional Reconnaissance Licenses in Liberia
- Reconnaissance licenses last for six months and can be extended for an additional six months, then can be converted to Exploration Licenses following initial exploration activities
- Bobo Creek: River Cess county
- Located approximately 70 km east of the port of Buchanan and covers an area of 200 km²
- The license consists predominantly of a gneiss unit and a composite unit, which includes iron formations, over a strike length of approximately 20 km and is considered prospective for iron ore mineralisation
- Sable Mining Africa Timbo prospect lies approximately 20 km to the east
- Mt Koklun: River Cess county
- Located approximately 100 km inland from the port of Buchanan and covers an area of 129 km²
- Contains identified iron bearing formations, including 4 km of outcropping itabirite, which is considered prospective for iron ore mineralisation.
- BHP Billiton's Saint John River South project lies approximately 20 km northeast
- Dig Creek: Bong county
- Located approximately 90 km north of the port of Buchanan and covers 108 km²
- Consists of folded and faulted gneiss and iron-bearing formation which is considered prospective for iron ore mineralisation
Bobo Creek license area showing regional geology and identified iron occurrences.
Mt Koklun license area showing regional geology and identified iron occurrences.
Environmental responsibilities and Community Development
- Committed to environmentally sound strategies
- Community works program initiated
- Use of local workers where possible and maintaining a focus on local content
- Project Brief was completed in July/August 2011. This included environmental consultants visiting the project site to conduct assessment, interviews and take photos of activities within the area
- Following the Project Brief, West Peak has identified the following community works as part of it's ongoing social responsibilities, with work due to be initiated over the coming months
- Installation of water hand pumps
- Installation of toilet facilities
- School supplies
Executive Chairman David Parker playing soccer with students at the Geven Fahnsee town/school soccer pitch, Bomi South license
Comparison to other West Africa Iron Ore explorers
| Company | Market Cap (A$M) | Enterprise Value (A$M) | Asset(s) | Country | Resource | Exploration Target |
|---|---|---|---|---|---|---|
| West Peak Iron (ASX: WPI) | 3.4 (@ $0.14) | 2.2 | Bomi South, Grand Bassa | Liberia | n/a | n/a |
| African Iron (ASX: AKI) | 95 | 56 | Mayoko (92%) | Republic of Congo | 33Mt @ 56% Fe (DSO) | Exploration Target: 1.6-2.6Bt @ 30-65% Fe (Hematite and Magnetite) |
| Afferro (TSV: AFF) | 134 | 91 | Putu Range (38.5%) | |||
| Nkout (100%) | Liberia | |||||
| Cameroon | Putu: 2.4Bt @ 34% Fe (Magnetite) | |||||
| Nkout: 1.4Bt @ 34% Fe (Magnetite) | n/a | |||||
| Equatorial (ASX: EQX) | 275 | 219 | Badondo | |||
| Mayoko-Moussondji | Republic of Congo | n/a | Badondo: 200-300Mt @ 40-65% Fe (bDSO) & 1.1-1.9 Bt @ 30-45% Fe (Itabirite); Mayoko-Moussondji: 500-900Mt @ 40-65% Fe (bDSO) & 1.8-3.0Bt 30-45% Fe (Itabirite) | |||
| Waratah (ASX: WGO) | 36 | 30.7 | Youkou (90%) | Republic of Congo | n/a | 1.0-2.0Bt @ 60-62% Fe (DSO) |
| Cape Lambert (ASX:CFE) | 238 | 195 | Marampa | Sierra Leone | 680Mt @ 28.2% Fe | n/a |
| Western Cluster | 176 (*based on Sesa Goa paying $90mUS for 51%) | n/a | Bomi Hills | |||
| Bea Mountain | ||||||
| Manno River | Liberia | Bomi Hills – 50mt @ 68% Fe | ||||
| Bea Mountain – 923Mt @ 27% Fe | ||||||
| Manno River – 80Mt @ 51.4% Fe | n/a |
Sources: Company announcements, IRESS.
Iron Ore – key factors
| Key factors | West Peak factors |
|---|---|
| Located in an iron ore region | Liberia was previously a top 5 global iron ore producing country, within the emerging iron ore province of West Africa |
| Potential for deposit | Bomi South – intermittent outcropping iron formations over a strike length of 40 km, along strike from Bong Mines Grand Bassa - 4 km of outcropping iron formations |
| Potential for high grade | Rock chip results of up to 64.6% Fe show potential for high grade hematite “DSO” mineralisation |
| Close to port | Bomi South - Within 60km NNE from the port at Monrovia Grand Bassa - Located 35km NE from the Buchanan Port which is currently exporting iron ore |
| Close to rail/roads | Bomi South - within 5km of two railway lines, both with planned upgrades to meet iron ore industry requirements Grand Bassa - within 3km of an operating railway line |
| Access to infrastructure | Liberian government has indicated a position to allow third party access to rail and port infrastructure |
Western Australian Projects
- Significant land holding in the emerging Mid West and Yilgarn Iron Provinces
- Identified DSO and Beneficiated Feed Ore (BFO) potential at Pinyalling Project
- Identified BFO iron potential at Dandaraga Project
- Gold and Base Metal Project at Santy Well
Regional location of the WA tenements
Western Australian Projects
Pinyalling Project
- Rock chip and field mapping have confirmed DSO iron mineralisation prospectivity at Warriedar project over a strike of 1.8km.
- Returned rock chip assay ranging from 40.91% to 61.17% Fe, with an average of 55.14% Fe, including:
- 61.17% Fe
- 60.43% Fe
- 59.38% Fe
- Magnetite prospect at Thundalarra with multiple outcropping BIF's grading 30% to 35% Fe over a strike length of 3 km, which is coincident to a 7.5 km magnetic anomaly.
Dandaraga Project
- Dandaraga project has identified magnetite BIF outcropping for 2 km with widths up to 160m.
- Outcropping BIF is coincident with a 7 km long aeromagnetic anomaly. This anomaly forms part of a broader, 27 km long magnetic feature extending the length of the tenement.
- Initial rock chip sampling has returned assay results ranging from 32.56% to 58.34% Fe, which includes traverse samples of:
- 163 metres at 38.87% Fe
- 136 metres at 37.11% Fe
- 119 metres at 35.84% Fe
- Currently working through approvals process for future work
Outcrop mapping and rock chip point samples; Warriedar project
Outcropping BIF and rock chip traverse sampling lines; Dandaraga Project
Summary
- Tenements 100% owned and located in emerging world class iron ore regions
- Licenses located proximal to existing or currently being upgraded infrastructure including rail, road and port to meet mining industry requirements
- Maiden Liberian field trip identifies iron enrichment with rock chip grades up to 64.6% Fe demonstrating the potential for direct shipping ore (“DSO”) iron mineralisation
- Strong and experienced corporate, geological and development team
- Listed on the Australian Stock Exchange
- Focus on investment in Liberia, West Africa, a previous top five global producer of iron ore
- WA projects have potential for magnetite and hematite mineralisation
- Looking to add to current assets through additional corporate activity in the Iron Ore sector
- Farm out non iron rights on low priority tenements, i.e. Santy Well JV
Left: Coarse grained liability – WPL003, 31.2% Fe; Right: outcropping liability, Bomi South
Contact Details
WEST PEAK IRON
West Peak Iron Ltd
ASX Code: WPI
Australian Company Number: 142 411 390
Registered Address
Suite 9, 1200 Hay Street
WEST PERTH WA 6005
Postal Address
PO Box 281
WEST PERTH WA 6872
Phone: +61 8 6460 4960
Fax: +61 8 9324 3045
Website: www.westpeakiron.com.au
Email: [email protected]
Contact: David Parker for more information on [email protected]
WEST PEAK IRON
West Peak Iron Ltd (Liberia)
100% owned
Head Office Address
Corner 15th Street and Paynes Avenue, Sinkor, Monrovia, Liberia
Registered Address
C/O Jones & Jones
P.O. Box 10-1891
Randall Street, Monrovia, Liberia
Phone: +231 (0) 6511549
Fax: +61 8 9324 3045
Website: www.westpeakiron.com.au
Email: [email protected]