Developing Papua New Guinea s first diversified world-class resources platform. UK PNG Trade and Investment Conference London 16 June 2015

Transcription

1 Developing Papua New Guinea s first diversified world-class resources platform UK PNG Trade and Investment Conference London 16 June 2015

2 Mayur Resources Presentation CONTENTS 1. Mayur Resources Overview - Developing a diversified world-class resources platform in PNG 3 2. Copper / Gold portfolio 7 3. Iron & Heavy Mineral Sands portfolio Coal portfolio Domestic Vertical Integration Power and DRI/Steel Making 20 2

3 Introduction to Mayur Resources Developing a diversified world-class resources platform in PNG A unique portfolio of projects under development.. Established in 2011 Management Team with proven track record Highly experienced International Board 3 asset groups (Copper/Gold; Heavy Mineral Sands; Coal) 100% privately owned by small share holder base of Ultra High Net Worth + Vertical Integration (Iron/Steel & Power) Fully focused on PNG 3

4 Introduction to Mayur Resources Mayur s Mineral Development Platform 1 st Mover -Export of Iron & Heavy Mineral Sands Asia's New Low Cost Iron & Mineral Sands Precinct 1 Mtpa ironsands (magnetite and zircon) project scalability of 10 more projects in pipeline 1 ST Direct Reduced Iron (DRI) & Steel Making in PNG Copper & Gold Projects next to World Class Operations A Unique Diversified Mineral Development Platform in PNG 1 st Mover - Export of Low Ash Thermal Coal The Next Indonesian Export Model 1Mtpa Thermal coal (Asia s superior coal 3% Ash & <0.5% Sulphur 1 st Coal Fired Power in PNG lowest New Power Source 4

5 COPPER & GOLD IN PAPUA NEW GUINEA Leveraging PNG s status as one of the world s most prolific copper & gold provinces Port Moresby 5

6 Copper & Gold in PNG Introduction - Copper & Gold Assets 4 EL s granted Total area under exploration 1,193 km² Geological rationale based on finding and developing epithermal (volcanic arcs setting) and porphyry systems Lihir World s 4 th Largest Gold Mine Feni potential to be the next Lihir Volcanic Arcs & Calderas Projects Name EL # Status Km 2 1 Feni Island* 2096 Granted Rambutyo 2094 Granted 259 Porphyry Systems - Projects Name EL # Status Km 2 1 Sideia* 2095 Granted 2 Basilaki * 2095 Granted Sitipu 2040 Granted 249 *priority projects Sideia & Basilaki the forgotten mine workings of PNG 6

7 Copper & Gold in PNG Feni The Next Lihir Style Reosurce EL2096 Location - Adjacent to 4 th Largest Gold Mine in the World Port Moresby Maiden Gold Resource 650,000 Oz Au JORC (Inferred) Resource Best intercept 1.00 g/t Au with associated copper porphyry results best intercepts 0.4% copper over 80 metres Shallow drilling up to 200 metres (future target depth 600 metres) Ambitle Is. Over 200 drill holes (deepest hole < 300m) Babase Is. Over USD 30m spent exploring Ambitle by numerous exploration companies over to find Kabang Target 7

8 Copper & Gold in PNG Two projects - Basilaki Island & Sideia Island (one tenement) Two separate deposits on adjacent islands in Milne Bay Province 1 Basilaki Tunawada Cu-Au Project Multi-phase porphyry system 2 Sideia Is Sideia Cu -Au Project PNG s oldest copper workings dormant and forgotten for over 100 years Mayur rock chips up to 27.5% Cu, 3.92 g/t Au, 397ppm Mo Narrow vein copper mined 1800 s, Potential porphyry at depth. Sideia Is. Basilaki Is. EL Basilaki and Sideia Islands 2 1 Port Moresby EL2095 Rock Dating & Petrology Copper zone Sideia Island. Gold in bedrock Tunawada Prospect. The Tunawada rocks 12.9Ma (million years old). same date range as world-class deposits in PNG Wafi-Golpu 13-14Ma, Frieda 11-14Ma. 8

9 HEAVY MINERAL SANDS IN PNG Asia s new 'world-class low cost iron and mineral sands precinct Port Moresby 9

10 Iron & mineral sands in PNG Introduction Portfolio Highlights Multi Billion tonne mineralised province - potential to become the world s largest iron and mineral sands precinct 23,000 km² Flagship Orokolo Bay Project (EL2305) Maiden JORC Resource (2012 JORC) of 30%HM with a 150 Mt exploration target - being converted to JORC (drilling in progress) Pre Feasibility Study completed in January 2015 (entered DFS) Targeting production of multiple heavy mineral products : magnetite, zircon, garnet, leucoxene, More than 10 projects in the pipeline across wider portfolio offering long term future growth 450 km PAPUA NEW GUINEA Thousands of Km s of highly mineralised coastline under tenure 10

11 Iron & mineral sands in PNG Huge project pipeline across the Gulf of Papua portfolio for generations to come Target generation (from review of drilling and geomorph studies) has identified a pipeline of potential projects across the province that will provide long term development opportunity Paia Inlet Turama Delta Cape Blackwood Deception Bay Aivau The Bluff Kerema Uamai Summary of all historical exploration completed across the Gulf of Papua: Aburai / Amunda Is. Malalaua 1000 Auger holes 491 Wacker holes Kiwai Is. (onshore) Orimo Coast Parma Is. Kiwai (near shore Kiwai (off shore) Hisui 93 Vibracore holes 4 bulk samples 3,000+ grab samples Mayur Iron portfolio and project generation targets On shore Nearshore Offshore 11

12 Project Development Value Iron & mineral sands in PNG OROKOLO BAY PROJECT Timeline & Cost Curve Phased Timeline: OBP PRE PRODUCTION PHASE: 100,000 t OBP PHASE 1 (1 Mtpa) PHASE 2 (3 Mtpa) + future upside across wider portfolio Pre Production Phase Pilot Plant for market acceptance testing Phase 1 Initial Production Low prod. costs 1 Mtpa of Iron (Magnetite conc.) ktpa (40% zircon $50m capex Phase 2 Expand Production to 3 Mtpa (Magnetite) ktpa (40% zircon concentrate) Lowest Global quartile cost position: DMTU adjustment (-4%) TiO 2 adjustment (-15%) A B C Lowest cost iron units in the world + Zircon only (does not include benefit of other Valuable HM) A B C 12

13 COAL IN PAPUA NEW GUINEA Opening up a new frontier for coal in Asia the next Kalimantan Port Moresby 13

14 Coal in PNG PNG - A new frontier for Coal in Asia Coal exploration portfolio encompassing the entirety of PNG s coal province within the Papuan Basin 120km strike Coal exploration projects in PNG - consisting of: 4 granted tenements Secured exclusive Call Option to explore and acquire adjacent tenements Mayur s coal - Gulf province Together the licences make up the entirety of PNGs coal province closest to the coast Access to low-cost transport infrastructure barge coals on the Purari or Vailala Rivers that flow into the Gulf of Papua Overview of to Mayur s coal projects Exploration programs completed 4.1m and 3.2m coal seams outcropping at surface Develop international export of 1 Mtpa and domestic coal fired power with the PNG government Above 4.5m out-cropping coal seam and deep draft rivers in Gulf Province 14

15 Coal in PNG Tenure covering 120 km strike - only 1% explored so far Depot Creek only covers 1.2km of the known 120km strike N Mayur has 200+ million tonne provincial exploration target Coal quality (below) low ash, low sulphur sub bituminous coal Upcoming project development milestones: - Declaring JORC - Completing PFS Gulf of Papua Depot Creek (Coal) Purari River Orokolo Bay (Mineral Sands) Port Moresby total Strike length = 120 km Miha Creek (Coal) Vialala River - Market testing (bulk sampling) - International Offtake - Commence DFS *All results are on an air dried basis; samples from out-cropping coal seams PNG s coal region in Gulf Province- proximity to rivers and coast for access to the seaborne market. Below - camp / drilling at Depot Creek Depot Creek average analysis* TM % IM 12.5 % Ash 2.52 % VM 43.7 % TS 0.36 % GAR kcal/kg 5, km 15

16 DOMESTIC VERTICAL INTEGRATION Port Moresby COAL POWER GENERATION DRI & STEEL MAKING

17 Coal Power Generation in PNG Developing new coal fired power in PNG to deliver economic growth Providing access to cheaper energy to enable economic growth in PNG Reduce PNGs current reliance on high cost diesel power & open up Manufacturing sector Develop clean and efficient coal fired power stations (30-100MW) to serve PNGs major cities and industrial hubs (Port Moresby, Lae, Madang etc) 13% of PNG population have electricity (70% targeted) Proposed Economic corridors in PNG (blue shading) Source PNG Development Strategic Plan Mines - Owen Stanley Range(100MW) Madang (100MW) Lae (100MW) 40-50% OF PNG s POWER GENERATION^ Mayur s coal province Port Moresby (100MW) Potential locations for coal fired power plants Mayur Coal spec. range Kcal* 4,000 4,500 Ash 2.5% - 3.7% Sulphur <0.4% *Net as received basis PNG COAL SUPPLY PNG POWER GENERATION 100 MW power plant requires approx. 400,000 tonnes coal per year Provision of cheap and reliable power for PNGs growing population and economy Address PNGs energy demand shortfall forecast to be circa 700MW by 2030 due to 5 fold increase in power demand. 17

18 Potential for iron & steel making in PNG Coal based DRI Steel Making Opportunity in Gulf Province, PNG Coal and iron within the same region in PNG a unique opportunity to develop a steel industry in SE Asia Strategic first mover vertical integration (coal and iron) opportunity Unlocking low raw material input costs <US$60 per tonne of iron produced Cheap power source - captive coal (owned) and proximity to major gas projects Various technology options (proven and new DRI and steel processes) Preliminary studies complete with technology providers (China /India/Europe) Government support to value add via vertical integration Potential site for DRI plant Gas fields (Total Inter-Oil) Port / Anchorage Gulf of Papua 100 km (Iron ore) (Coal) Iron and Coal co-located on coast next to Asian market Low cost extraction suitable as stand alone export commodities Proposed LNG gas pipeline adjacent to tenure 18

19 VALUE Potential for iron & steel making in PNG DRI & Steel Making Value add in PNG via vertical integration Low captive commodity cost, raw materials co-located on coast, close to market, low energy cost, low labour cost Quartile 1 Global Cost Curve Iron Coal DRI EAF Bulk Commodity (export grade) & Domestic Iron/Steel Production Formed Steel = PNGs next iron making centre in Asia ADDITIONAL VALUE CAPTURE (Low cost labour and energy costs) 1 tonne of pig iron = USD100/t MAYUR CONTROLLED MAYUR FIRST MOVER Steel (export or domestic) Coal Ironsands DRI Plant - RHF Pig Iron 19

20 Domestic Vertical Integration - Summary Mayur Resources Group Structure - Domestic Vertical Integration Raw materials supplied for DRI/Steel and Power as follows: MR Energy PNG Pte Ltd MR Iron PNG Pte Ltd MR PNG DRI & Steel Making Pte Ltd Singapore Mayur Energy PNG Ltd Mayur Iron PNG Ltd Mayur PNG DRI & Steel Making Ltd PNG PNG COAL SUPPLY PNG IRON ORE SUPPLY Input costs <$100/t PNG DRI & STEEL MAKING IRON ORE (2t x $18.5/t) $37/t EXPORT COAL (Reductant) + COAL (Power) & MAINTENANCE $60/t PNG POWER GEN. 20

21 For further information please see our Team at the Mayur Exhibition Stand 10Q TRU