australasian reources - latest_presentation.pdf

8/14/2019 Australasian Reources - latest_presentation.pdf

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Annual General MeetingPerth

27 November 2009


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RESOLUTION FOR AGAINST ABSTAIN CHAIRMANS

VOTE

1 Remuneration Report 298,839,405 409,200 15,510 166,656

2 (a) Re-elect C Mensink 299,164,496 97,809 1,810 166,656

2 (b) Re-elect V Sharma 299,158,496 101,559 4,060 166,656

2009 Annual General MeetingResolutions - summary


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Thispresentation ("Presentation") has been prepared by Australasian Resources Ltd("ARH") based on information available to it fromits own and third party sources and isnot adisclosuredocument nor anyotherformof offer to invest inARHsecurities.

This Presentation does not purport tocontain all the information that a prospective investor may require inconnection with any potential investment in ARH. Each Recipientmust makeits own independentassessment ofARHbeforeacquiringanysecuritiesinARH. Youshould not treat thecontentsof thisPresentation,orany informationprovidedin connectionwith it, as financial advice, financial product adviceor advicerelatingto legal, taxation or investment matters. Beforeacquiringany ARHsecurities, you shouldconsultyour ownprofessionaladvisersandconduct your own investigationandanalysisin relationtoARH.

ThisPresentationcontains referencetocertainintentions, expectations, futureplans, strategy and prospectsof ARH(ForwardLooking Statements), includingwith respect tofeasibility and development timetables, mineral grades and metallurgical recoveries, potential production rates and operating and capital costs for conceptual developmentplansandpotential investment returns. Those ForwardLookingStatementsarebasedoncertainassumptionswhichmayormaynot beachievedoronwhichviewsmaydifferand which maybeaffectedbymany known and unknown risks and factorsoutside thecontrol of ARH. As such, ARH's actual futureresults, performanceor achievementsmaybemateriallydifferent fromthoseexpected,plannedor intended.

No representation or warranty is made and no liability accepted by ARH or any of its advisers, agents or employees as to the accuracy, completeness, currency or

reasonablenessof theinformation in thisPresentationorprovidedin connectionwith it, includingtheaccuracy orattainability ofany estimates, forecastsorprojections set outin thisPresentation.

ARHdoesnot accept any responsibilityto informyouof anymatter arisingor coming toARH'snoticeafter thedateof thisPresentationwhichmayaffect anymatter referred toin thisPresentation.

Any liability of ARH, its advisers, agents and employees to you or to any other person or entity arising out of this Presentation including pursuant to common law, theCorporationsAct2001andtheTradePracticesAct 1974oranyotherapplicablelawis, to themaximumextent permittedby law, expresslydisclaimedandexcluded.

The distribution of this Presentation may be restricted by law in certain jurisdictions. Recipients, and any other persons who come intopossession of this Presentation mustinformthemselvesabout,andobserveanysuchrestrictions.

The Company advises that in accordance with the ASX Listing Rules, that the information in the Annual Report that relates to Mineral Resource is based on informationcompiled by Mr Michael Andrew, a full time employee with Snowden Mining Industry Consultants, a mining and resource consultancy firm. Mr Andrew is a Member of the

Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to theactivity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resourcesand ore Reserves. Mr Andrew consents to the inclusion of the matters based on his information in the form and context in which it appears in this report.

The information in the Annual Report that relates to Ore Reserve is based on information compiled by Mr Ross Cheyne, a full time employee with ORElogy(MiningConsultants). Mr Cheyneis a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the styleof mineralisation andtype of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code ofReporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cheyneconsents to the inclusion of the matters based on his information in the form and contextin which it appears in this report.

Disclaimer


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1. CORPORATE

1.1 Share capital1.2 Vision

1.3 2008/9 review

1.4 2009/10 priorities

1.5 Subsequent events

2. PROJECTS

2.1 Balmoral South Iron Ore Project Key objective

Shougang negotiations

New strategic investors

Project status

2.2 International Exploration Ltd (IEL) Project status

Presentation overview


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1. CORPORATE


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Australasian Resources Ltd (ASX Code:

ARH) will be a significant, sustainableand profitable producer of quality iron

ore products.

1.2 Vision


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ARH aimed to complete the following over the 12 month period to November 2009

PRIORITY COMMENT

Continued development of Health Safety

Environmental (HSE) policies and practices

HSE system in place with policies, procedures, standards developed

Prudent management o f cash reserves Nov 08 - $12M cash on hand (07/08 burn $27M

08/09 burn $ 8M)Nov 09 - $4M cash on hand

Advance Balmoral South Iron Ore Project

Obtain Finance Offer from Shougang

Obtain all necessary approvals

Finance Offer from Shougang not received and agreement lapsed July 2009

Discussions with other potential strategic investors commenced 2ndQuarter2009

Positive EPA Report received Sept 09 after Public Environmental Review(PER) process with Ministerial Approval expected by Dec 2009

Finalise Merger with RDI RDI Merger Agreement expired March 2009RDI listing did not occur

Continued project development Advanced discussions with vendors, suppliers for Balmoral South development Increases to Mineral Resource and Ore Reserve estimates (per ASXannouncement by ARH 2 April 2009

Exploration expenditure (IEL) continued

1.3 2008/2009 ReviewPriorities highlighted at 2008 AGM


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1.3 2008/2009 ReviewShare Price

December 2008 November 2009


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1.5 Subsequent eventsThe following material outcomes have occurred since the release of theAnnual Report (year ending 30 June 2009) on 1 October 2009:

Positive EPA Report released after the Balmoral South Iron Ore Projects PublicEnvironmental Review (PER) process1:

Report confirms project can be managed to meet the EPAs environmental objectives

and recommends Ministerial approval be given,

Office of State Revenue (OSR) completed Stamp Duty assessment for the 2007acquisition of International Minerals Pty Ltd from Mineralogy Pty Ltd2:

Advice received November 2009 no duty payable

$8.8M contingent liability to be removed from ARH balance sheet

Department of the Environment, Water, Heritage and the Arts (DEWHA) endorsed

environmental approval conditions for Balmoral South3

Aligned with state EPA report outcomes

1 per ASX announcement by ARH 5 October 20092 per ASX announcement by ARH - 16 November 2009

3 per ASX announcement by ARH - 19 November 2009


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2. PROJECTS

2 1 B l l S th I O


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2.1 Balmoral South Iron Ore

Key Objective

1. Obtain project finance (~A$3b) and off-takecommitment (12 Mtpa) for Balmoral South Iron OreProject (BSIOP)

Target and advance off-take agreements with new parties

Obtain Final Investment Decision (FID) from a strategicinvestor(s) by first half of 2010

Offer % equity in project company International Minerals PtyLtd (100% owned subsidiary of ARH) in exchange for projectfinancing proposal

Structure deal to meet ARHs project developmentrequirements to maximise value to shareholders

Project

2 1 B l l S th I O


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Shougang Negotiations

Jan 2007 Acquisition of International Minerals Pty Ltd and right tomine 1 billion tonnes at Balmoral South

Mar 2007 Project agreement signed with Shougang entities

A$56M share subscription into Australasian Resources Ltd

Jun 2008 Feasibility Study completed with Shougang

Sep 2008 Project agreement extended to March 2009 to provideShougang with exclusive ability to fund and develop project

Mar 2009 Project agreement extended to June 2009 on a non-exclusive basis

July 2009 Project agreement with Shougang entities lapses;negotiations between parties suspended

Project

2 1 B l l S th I O


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After the suspension of negotiations with Shougang in July2009, ARH has focused on the development and execution ofa project marketing plan which has included:

Identification of new potential strategic investors in China, Korea,India and the Middle East

Discussions with interested parties in relation to product off-takeand/or project financing

Interest remains high and discussions are continuing


New Strategic Investors

Project

2 1 B l l S th I O


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1 Per ASX Announcement by ARH 2 April 2009

1.6 billion MineralResource(35% Inferred & 65%Indicated)1

859 Mt Ore Reserve(Probable; 22 years@ 12 Mtpa)1

Resource andReserve upgradeswell advanced

Produce 300 Mtproduct over 25 years(12 Mtpa)

Project2.1 Balmoral South Iron Ore

Project Status

2 1 B l l S th I O


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Project Status

Project

Mining

40 Mtpa ore for 25 years

70 Mtpa total material movement

Processing

Crushing, grinding, wet magneticseparation, filtering

12 Mtpa concentrate or pellets (BF) 68% Fe

Port

New shared private port underconstruction


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Port under construction

Photos courtesy of Mineralogy Pty Ltd

2 1 Balmoral South Iron Ore


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Project Status

Project

Environmental Approval

Pre-implementation

/Finance Offer

Construction & Commissioning

Production

2009 2010 2011 2012 2013

Sept-Nov

Nov-Mar

Mar-Dec

Dec-

2 1 Balmoral South Iron Ore


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Project Status

Project

Low Sovereign risk

Stable political environment

Foreign investment welcome

Advanced, wor ld class pro ject

Feasibility Study completed in 2008

Strong projected demand for iron ore

Strategic, long term resource

High quality concentrate / iron ore pellets (+68% Fe)

Opportunity to secure off-take

Approvals well advanced

Favourable EPA report

Sino Project approved adjacent

Low risk

2 1 International Exploration Ltd


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2.1 International Exploration Ltd

Project Status

(IEL)

Sherlock Bay Project

Nickel, Base metals

Cat Camp Project

Nickel

Andover Project

Base metals

Copper Bore Well Project

Cu, Uranium

Mt Salt

Uranium

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