mamba minerals (asx:mab) potential large scale hematite
TRANSCRIPT
Mamba Minerals (ASX:MAB)
Potential large scale hematite iron ore
project in Canada’s Labrador Trough
Snelgrove Lake advantages
Location One of the world’s safest most politically stable regions for mining
Investment
High level of regional investment by Asian steel mills demonstrates
market interest
Infrastructure
Access to common user rail and port with available capacity reduces
capex
Power Low cost hydro electricity reduces opex
Resource
33km strike of Sokoman Formation represents a massive iron range
for a potentially large resource with 5-8km of hematite
Results Drilling results confirm significant width and depth of ore body
Product Low impurity product (Phosphorus, Aluminium) increases sales price
Potential Results to date suggest potential for a substantial hematite resource
and a large magnetite resource providing exploration upside
Progress
Airborne surveys, detailed ground gravity surveys and a targeted 8
hole 800m drilling program are complete
Location
Labrador Trough, Canada
One of the world’s safest
most politically stable
regions for mining
Excellent global trade
relationships, no
resource nationalism,
clear and sound policy
for mining
Canada is the 5th
largest iron ore exporter
in the world
Schefferville
Labrador City
Snelgrove
Activity within the Labrador Trough
Numerous projects underway including Tata
Steel, Rio Tinto, Cliffs Natural Resources and
ArcelorMittal
Iron ore production in 2013 forecast at 55Mtpa
from 94Bt of resource
The trough is known for a low impurity
product (Phosphorus, Aluminium)
2013 – Tata paid C$30million for 51% of
Labrador Iron Mines, 28 million tonne 58% DSO
deposit ($2.10 per tonne for a non-compliant
resource)
2013 - Posco and China Steel paid C$1.1billion
for 15% of ArcelorMittal Canada ($524m per
annual magnetite production million tonne)
2012/2013 - Hebei paid C$119million for 25%
Alderon’s Kami project ($60m per forecast
annual magnetite production million tonne)
CIP Research
Labrador Trough mix of hematite and magnetite
78% of the iron ore resources in the Labrador Trough are magnetite, 20% are a blend of
magnetite and Hematite with 2% being hematite only
Production By Company 2013
ArcelorMittal
Cliffs NaturalResources
IOC
Labradore IronMines
New Millenium
Company Deposit Type Forecast Production 2013 (Mtpa) ArcelorMittal / Posco and China Steel Magnetite/Hematite 18
Cliffs Natural Resources / Wuhan Magnetite/Hematite 15
IOC (RIO) Magnetite/Hematite 18
Labrador Iron Mines Hematite 2
New Millennium / Tata Hematite 2
Total 55
Production By Product 2013
Magnetite/Hematite
Hematite
CIP Research
By Resource
Magnetite
Magnetite/Hematite
Hematite
55km southeast of Schefferville and
200km north of Labrador City, towns
with significant mining services
available
50km east of the Menihek
Hydroelectric Plant which provides
low cost electricity at C$0.05/kwh
50km east of the common carrier
railway with available capacity,
connecting to the Port of Sept-Iles
600km to the Port of Sept-Iles, where
a C$220m 50Mtpa expansion is
underway to construct a multi-user
deep-water dock with two ship
loaders and two conveyor lines.
Infrastructure access for Snelgrove
Menihek Hydro Power Station
Schefferville
Railway to the Port
50Mtpa Port expansion
New port development
New state of the art multi-user berth
to provide 50Mtpa for an estimated
$220m to be completed March 2014
Funding from Canadian Government
25%, Port of Sept-Iles 25% and mining
companies 50%
Dredging completed
Ship-Loader contract awarded
Major civil / structural contract awarded
Mobilisation for pile driving completed
Construction on time and budget
Exploration
Huge iron formation with hematite targets
33km strike of Sokoman Formation represents a
massive iron range hosting hematite and
magnetite type ore deposits
Geological mapping, aeromagnetic and gravity
surveys and preliminary metallurgical testing
are complete
Potential for hematite direct-shipping ore
deposits similar to the Sawyer Lake deposit just
500m from the Snelgrove boundary (historic non-
compliant resource of 12Mt @ 62% Fe)
Ground gravity and magnetic data has been used
to identify target areas with 5-8km of hematite
outlined
Drill hole plan with target deposit types
Phase 1 drilling program complete:
8 holes, 4 targeting hematite in the
south and 4 targeting magnetite in
the northern section of the property
Drill hole MM-13-05 was the
hematite discovery hole in the CLC
deposit.
MM-13-06 & MM-13-08 better
defined the true width of the CLC
deposit now estimated to be 170m
MM-13-07 tested the Blaire deposit
MM-13-01 to MM-13-04 tested
magnetite targets in the north
Mamba discovers massive hematite project
Discovery drill hole (MM-13-05) targeting
hematite intersected 303m of massive
hematite and remained open in mineralisation
at 235m below surface
The second hole (MM-13-06) to test this
target had the azimuth reversed perpendicular
to mineralisation dip to better test the true
width
The second hole hit hematite after only 8m of
ground cover and has returned a 92m
intersection of mineralisation
The true width of the ore body is now
estimated to be 170m
Hematite target is ~5-8km long
CLC Deposit
Vertical cross section of CLC deposit drilling
Target for Summer program
Assay results on hematite discovery hole
First assays from the discovery hole (announced
May 3rd
) returned 101m averaging 52% Fe
hematite with high grade intervals of 63% and
65%
Assays confirm the deposit contains very low
aluminium (0.50% Al2O3) and low phosphorus
(0.053% P), providing the potential to attract a
premium price with the balance, after Fe, being
mostly silica
Silica content is expected to be economically
removed using a conventional mechanical
upgrading process of crushing, screening and
de-sanding, generating a target 62% Fe saleable
iron ore fines product (high level metallurgical
test work underway)
Length Grade Vertical depth
33m 52% 59m
9m 55% 92m
9m 54% 101m
9m 50% 122m
16m 52% 160m
7m 53% 181m
18m 52% 216m
Total 101m 52%
World class partners with Labrador Trough experience
Exploration manager Project originator and exploration advisor
King & Bay has managed the exploration programs
for a number of the Labrador trough explorers and
developers
Altius is a project generator and royalty business
with a focus on Canada and a history of success
Alderon Iron Ore – Kami project Alderon Iron Ore – Kami project
Cap-Ex Iron Ore – Various projects
Century’s Iron – Astray, Grenville, Menihek and
Schefferville projects
Ridgemont Iron Ore – Lac Virot Rio Tinto – Geotite Bay
Massive specular hematite-rich sample from Snelgrove
Exploration and test work program
Detailed ground gravity survey work underway on hematite
targets
Ground gravity will use 100m spacing to provide more accurate
targets for the drilling program
Metallurgical test work program analysing grindability and silica
removal underway
A targeted 8 hole 800m drilling program focused on high grade
hematite targets is now complete
Mamba Minerals (ASX:MAB) capital structure
Item Number
Shares on Issue 70,550,086
Options to Altius
(Exercisable at A$0.25, expiring 31/8/15)
17,000,000
Options on Issue to Hilton Nathanson
(Exercisable at A$0.50, expiring 15/12/15)
500,000
Performance Shares (based equally on 100m tonnes,
200m tonnes, 600m tonnes, 1 billion tonnes &
positive feasibility study).
32,000,000
Current Market Capitalisation (at A$0.50) – non diluted A$35 million
Major Shareholders:
GAB superfund
Pershing Nominees (Blackswan Equities ) Hilton Nathanson
Michael O’Keeffe
12.71%
6.99%
6.08%
5.85%
Mamba board
Michael O’Keeffe (Non-Executive Chairman) was on the Board of Riversdale Mining at the time of
its inception in 2004 and was appointed Chief Executive and Executive Chairman in 2006. He
held these positions at the time Rio Tinto completed its acquisition of Riversdale Mining for
approximately $4 billion in 2011. Prior to his involvement with Riversdale Mining, Mr O’Keeffe
was Managing Director of Glencore Australia. He is currently Chairman of Riversdale Resources,
an emerging coal development company in North America.
Mr Richard (Dick) Wright (Non-Executive Director) has held various executive and director level
roles for both private and publicly listed companies in Australia, Europe and the United States.
This includes being Project Director of Roy Hill at Hancock Prospecting, Managing Director of
Fluor Daniel and Executive Chairman of Adrail and Paladio Ltd. Mr Wright has significant
expertise in the development of strategy, implementation and delivery of multi-billion dollar
resource projects including iron ore processing.
Niall Lenahan (Non-Executive Director) has extensive experience in the mining industry across a
number of commodities, including gold, base metals, minerals sands and coal. He has served as
a CFO and Company Secretary of Riversdale Mining Ltd from 2006 -2011, including a period as
Finance Director.
Appendix
Fines product
High grade hematite ore is referred to as direct
shipping ore (DSO) because it is mined and processed
using a relatively simple crushing, screening and
de-sanding process
Can be blended with other products to ensure the
desired concentration of contaminant materials
The Pilbara fines to lump ratio is about 70:30
Rio Tinto's Yandicoogina mine produce more than 95
per cent fines
Fortescue metals group producers only fines
Australian Production Lump vs Fines
Rio Tinto, BHPB Lumps Rio Tinto, BHPB, FMG Fines
Pellets: 8 – 20mm Lump: 6.3 – 30mm Fines: 0 – 6.3mm
Concentrate: <0.15mm
Pellet Feed: <0.05mm
Seaborne trade of Iron Ore dominated by fines
Target for Summer program
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Millio
n w
et to
nn
es
Calendar Year
Global Seaborne Trade
Pellets
Concentrates
Fines
Lumps
Pilbara Seaborne Trade
0
50
100
150
200
250
300
350
400
450
2005 2006 2007 2008 2009 2010 2011 2012
Millio
n w
et to
nn
es
Calendar Year
Rio Tinto, BHPB Pellets
Rio Tinto, BHPB, FMG Fines
Rio Tinto, BHPB Lumps
CIP Research
Fines and lump prices relatively close
Target for Summer program
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
US$/t @
6
2%
Fe
Australian Reference Fines
Australian Reference Lumps
Brazil – Vale BF Pellets
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2004 2005 2006 2007 2008 2009 2010 2011 2012
$ premium for Australian Lump
US$
/t @
6
2%
Fe
CIP Research
Iron ore market share
Target for Summer program
Rio Tinto
BHP Billiton
FMG
Other Australia
Vale
Samarco CSN MMX
Anglo American Other Brazil Other South
America
India
Mauritania
South Africa
Other Africa
China (62.5% Fe equivalent)
C.I.S.
North America
Europe
Other
World Production 2012
Seaborne trade dominated by Big 3 with FMG closing
CIP Research
Vale
Rio Tinto BHP Billiton
Kumba
FMG
CSN
LKAB
SNIM
Indian Exporters
Others
Seaborne Exporters 2012
ASX is currently the best exchange for iron ore exploration companies
considering that:
Australia is the world’s largest iron ore exporter accounting for half of
global seaborne supply
There are 5 times as many “pure play” ASX-listed iron ore exploration stocks
than on the TSX with a combined market capitalisation 12 times the TSX(i)
EV/Resource average of A$0.89/t for iron ore exploration companies(ii)
even
though many projects are stranded without infrastructure
Better coverage of the companies due to the existence of well regarded
mining analysts
Monitored by global institutional and strategic mining investors
ASX: The Main Market for Global Iron Ore
Source: (i) Bloomberg 11 Sep 2013; (ii) Bloomberg 11 Sep 2013 and CIP research
Private and Confidential 24
“Pure Play” Iron Ore Exploration Companies
There are 5 times as many “pure play” ASX-listed iron ore exploration stocks than on the TSX
with a combined market capitalisation 12 times the TSX (excludes FMG, RIO and BHP) and 7
times the TSX in terms of EV/Resources multiples
Source: Bloomberg (10 Sep 2013)
Note: (i) Excludes ASX & TSX listed companies with market cap. less than $A10m or greater than $1b; (ii) Based on A$/C$ of 0.95
Private and Confidential 25
8.81
4.21
3.19
0.57 0.54 0.41 0.32 0.25 0.21 0.14 0.13 0.11 0.11 0.08 0.08 0.07 0.07 0.06 0.05 0.04 0.03 0.02 -
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
MGX BCI IFE AGO RHI WDR NFE SDL BCK AQA GWR CTM GRR FMS IXR JMS IRD HAR CFE GBG IOH EQX
(A$
/t)
ASX EV/Resource Multiples
ASX Average 0.89X
ASX Iron Ore Exploration Companies Valuation
Examination of iron ore exploration trading multiples on the ASX indicates comparable valuation
of 8.81x to 0.02x of JORC Resource multiples
Sources: Bloomberg (13 Sep 2013), Company filings
Notes: Excludes ASX iron ore exploration companies with market cap less than A$20 million
Private and Confidential 26
TSX Iron Ore Exploration Companies Valuation
Examination of iron ore exploration trading multiples in the TSX indicates 7 times lower
EV/Resource multiples when compared to those of ASX companies
Sources: Bloomberg (13 Sep 2013), Company filings
Notes: Excludes TSX iron ore exploration companies with market cap less than C$10million
A$/C$ = 0.95
0.72
0.10
0.01 0.00 0.00 0.00 - -
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
LIM ADV FEO CHM NML FER ADI
(A$
/t)
TSX EV/Resource Multiples
TSX Average 0.12X
ASX Average 0.89X
Private and Confidential 27
China still forecast for long term growth
Lower growth rates currently but still very significant in absolute volumes
Strong economy
Stimulus packages for US$157Billion in infrastructure projects
FMG
Global urban population and GDP growth
China steel production to grow to 1Bt
Close to Europe
94 Billion tonnes of resource
Labrador Trough companies and resources
Company Project Deposit Type
M+I+I
Resources (Mt) Fe Grade (%)
Resource
Ownership (Mt)
Attributable
Fe
Adriana / Wisco Lac Otelnuk Magnetite 23,740 29.7% 9,496 2,821
Alderon / Hebei Rose Central Magnetite 705 29.0% 529 153
North Rose Magnetite 836 30.2% 627 189
Mills Lake Magnetite 256 29.6% 192 57
ArcelorMittal / Posco &
China Steel Canada ex Baffin Magnetite/Hematite 7,893 29.8% 6,709 1,996
Cap-ex Ventures Block 103 Magnetite 7,200 29.2% 7,200 2,102
Century Iron Mines/
Wuhan Rainy Lake Magnetite 15,954 30.0% 9,572 2,872
Hayot Lake Magnetite 1,723 31.3% 579 181
Duncan Lake Magnetite 1,614 24.5% 484 121
Champion Iron Mines Fire Lake North Hematite 1,456 30.0% 1,456 437
Bellechase Magnetite/Hematite 215 29.0% 215 62
Harvey Tuttle Magnetite/Hematite 947 25.0% 717 179
Moire Lake Magnetite/Hematite 581 29.7% 581 173
Oil Can Magnetite/Hematite 1,896 29.7% 1,896 563
Attikamagen Magnetite 1,723 31.3% 758 237
Cliffs / Wuhan Bloom Lake Magnetite/Hematite 1,051 29.8% 366 110
Cliffs Wabush Hematite 69 37.5% 69 26
IOC / Rio Carol Lake Magnetite/Hematite 3,042 43.2% 1,786 772
Labradore Iron Mines Houston Project Hematite 26 57.2% 26 15
Redmond Hematite 3 56.3% 3 2
Knob Lake Hematite 6 56.7% 6 3
James Hematite 7 57.4% 7 4
Denault Hematite 7 54.8% 7 4
New Millenium / Tata DSO Project Hematite 95 59.1% 19 11
New Millenium KeMag Magnetite 3,463 31.3% 1,247 390
LabMag Magnetite 5,741 29.5% 2,067 609
Howell’s Magnetite 7,600
Iac Ritchie Magnetite 4,767 30.5% 4,767 1,454
Oceanic Iron Ore Hopes Advanc Magnetite/Hematite 1,610 32.2% 1,610 518
Total 94,226 CIP Research
CIP DISCLAIMER
Presentation of General Background
This document contains general background information about the activities of Mamba Minerals Limited (“Mamba” or “the
Company”) current as at the date of this presentation. It is information in a summary form only and does not contain all the
information necessary to fully evaluate any transaction or investment. It should be read in conjunction with Mamba’s other
periodic and continuous disclosure requirements to the ASX available at www.asx.com.au.
This presentation may include forward-looking statements. These forward-looking statements are based on management’s
expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Mamba that could cause actual results to differ materially from such
statements. Mamba makes no undertaking to subsequently update or revise the forward-looking statements made in this release
to reflect events or circumstances after the date of this release.
Capital Investment Partners (CIP) believes to the best of its knowledge information and general advice contained in this
presentation is accurate as at the date of issue. To the fullest extent permitted by law, each of CIP and its directors, officers,
employees and advisers excludes and disclaims all liability for any direct or indirect expenses, losses, costs or damages
whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any
person by reason of negligence). Except for any liability that cannot be excluded by law, CIP does not accept any responsibility in
relation to the Information or the general advice. This presentation has been prepared using publically available information and
we do not make any representation or warranty that it is accurate, complete or up to date. Opinions expressed are subject to
change without notice. CIP and its employees own shares and performance shares in MAB. Gavin Argyle is a significant
shareholder of MAB.
There are a number of risks, both specific to Mamba and of a general nature which may affect the future operating and financial
performance of Mamba and the value of an investment in Mamba including and not limited to economic conditions, stock market
fluctuations, iron ore demand and price movements, timing of access to infrastructure, timing of environmental approvals,
regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign
currency fluctuations, and mining development, construction and commissioning risk
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Greg Burns and Mr Barry
Knight who are members of the Australian Institute of Mining and Metallurgy. Mr Burns is a director of the company and an
employee of CIP. Mr Burns and Mr Knight have sufficient experience which is relevant to the style of mineralisation and type of
deposit 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”. Mr Burns and Mr
Knight consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
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T +852 3978 2811
Mamba Minerals
www.mamba.com.au
Canada
Suite 800
1199 West Hastings Street
Vancouver, British Columbia
V6E 3T5
T +1 604 687 2038
F +1 604 687 3141
Australia
Level 7, BGC Centre
28 The Esplanade
Perth, Western Australia
6000
T +61 8 9421 2111
F +61 8 9421 2100
Australia
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91 Evans Street
Rozelle, Melbourne, NSW
2039
T +61 8 9421 2111
F +61 8 9421 2100
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