Iluka Resources Limited Mineral Sands Exploration & Project Development in NSW. August 2011

Transcription

1 Iluka Resources Limited Mineral Sands Exploration & Project Development in NSW Rohan Cobcroft August 2011 Manager Geology Eastern States

2 Iluka Overview Market capitalisation of ~$7 billion (418 million shares) Largest global producer of zircon 35% market share Second largest producer of high grade titanium dioxide minerals largest producer of highest value products of rutile and synthetic rutile Australian operations in Victoria, South Australia and Western Australia Virginia mining and processing operations Corporate office in Perth, offices in Adelaide, Melbourne, Stoney Creek Va., Jacksonville Fl, Shanghai 900 employees and 900 contractors 2

3 Iluka s Australian Operations Darwin Murray Basin, Victoria/NSW/SA Major rutile and zircon production province Mineral separation plant - Hamilton Economic life to ~21,500 sq kms of exploration tenements Northern Territory Eucla Basin, South Australia Largest global zircon production source Queensland Mine life 10 years+ Mid West Western Australia South Australia Brisbane ~42,400 sq kms of exploration tenements Western Australia Perth New South Wales Mineral separation plant at Geraldton South West Eucla Basin Adelaide Sydney Canberra Victoria Melbourne 4 synthetic rutile kilns (2 idled) Mining activities in South West ~1,000 sq kms of exploration tenements Murray Basin Hobart Virginia, United States Zircon and ilmenite production 3

4 Zircon: End Use Applications OPACIFIER IN CERAMICS floor & wall tiles sanitary ware table ware REFRACTORY & FOUNDRY steel / glass production casting of jet turbine engines ZIRCONIUM METAL nuclear reactor cores / rods heat exchangers ZIRCONIA & ZIRCONIUM BASED CHEMICALS refractories pigments abrasives electronics catalysts fibre optics 4

5 Titanium Dioxide: End Use Applications PIGMENT paints & coatings plastics paper TITANIUM METAL aircraft engines & airframes military chemical processing & desalination plants medical sporting equipment WELDING FLUX AGENT ship building fabrication NANO MATERIALS dye-sensitised solar cells arsenic removal in water treatment cancer treatments noise absorption 5

6 Project Development in NSW Pre-feasibility study currently underway on Balranald project Major potential source of rutile production Important component of continuation of Iluka s Murray basin operations Project comprises two deposits: West Balranald and Nepean Regulatory approvals timeframe critical to development approvals Key project milestones: Target PFS completion 1 st quarter 2013 Subject to successful PFS and DFS, and regulatory approvals process, submit to Iluka Board st production 2015 dependant on above and market conditions 6

7 Balranald Resource Location 7

8 Balranald Project Deposit Overview West Balranald Resource km long, m wide, 50-70m deep, 5-6m thick Water table 20m beneath surface Average grade 28% HMC Average HM mineral resource Assemblage 10% Zircon, 12% Rutile, 63% Ilmenite (ASX release West Balranald Deposit 4 th September 2007) Nepean Smaller Deposit ~40km north of West Balranald Resource 6.5 km long, m wide, 40-80m deep, 5-7m thick Majority of Deposit above water table Average mineral resource grade 28.4% HMC Average HM mineral resource Assemblage 13% Zircon, 15% Rutile, 59% Ilmenite (ASX release Nepean Deposit 14 th February 2008) 8

9 Key Balranald Project Challenges Overburden / soils management Dewatering and disposal of hyper-saline water Acid generating sulphides Flora, fauna, biodiversity, endangered species Transportation of HMC to Hamilton Land access 9

10 Iluka s Exploration Focus in NSW Iluka s NSW exploration activities have focused on: Securing tenure over prospective regions in Murray Basin Discovery of high value, long life HM deposits Active exploration of current tenure and turn over of non prospective ground Progression of technical development of deposits as part of feasibility studies 10

11 Iluka s NSW presence 11

12 Iluka s Exploration in NSW Iluka (and it s predecessors) commenced exploration for heavy mineral sands deposits in NSW in 1998 Currently under tenure there are 12 licences covering in excess of 13,000km 2 Iluka s exploration expenditure to date in NSW is in excess of $23 million and more than $2 million forecast for 2011 Proportion of drilling assigned to brown fields and green fields activities 12

13 Iluka s Heavy Mineral Resources NSW 13

14 Exploration Methods Established geological model built from >16,000 drill holes and >745,000m sampled and logged Model is maintained by regular updates incorporating results from recent drilling campaigns Continually testing and challenging the current model and concepts Monitoring of competitor activity Iluka seeks to apply new technology and revised uses for existing technologies 14

15 Iluka Exploration Activity by Location 250 Total m's other regions Murray Basin Total Metres NSW 200 m's drilled (k) Year 15

16 Iluka s NSW Mineral Resources This table is an extract of the Iluka Mineral Resource Breakdown by Country, Region and JORC Category at 31 December 2010, published in the Iluka Annual Report 2010, pp75. 16

17 Enhancement of Geology Processes Use of sonic drilling to validate conventional air core drilling results Sample quality issues resulting from water saturation and deep burial HM / slimes content of the strand interval not accurately represented Method required to provide undisturbed samples for comparison of HM, slimes and oversize grades Conventional diamond core drilling has not achieved consistent sample recovery 17

18 Sonic Drilling Drill head containing oscillators Outer string Inner string Sonic drilling principles: - Uses twin pipe drill string - Core barrel inner string advanced through the formation using slow rotation and vibration (the vibration is generated by hydraulic oscillators in the drill head) - Once core barrel passes through target sequence outer drill string is advanced over outside of barrel - Inner core barrel withdrawn to surface while the outer sting remains in ground to provide hole stability 18

19 Sonic Drilling Results from sonic drilling at West Balranald: Successfully recovered core with high recovery rates (~90%) Confirmation of stand and geological interpretations Good correlation of overall assayed HM, slimes and OS grades for strand interval Sonic drilling has been adopted as standard for use in project evaluation studies Also used for Mining By Products and Geotechnical test work 19

20 Example of Sonic Core from West Balranald Deposit Top of strandline interpreted from air core drilling Base of strandline interpreted from air core drilling 20

21 Typical Cross Section - West Balranald 62m Water table Shepparton Formation, clays, silts, sands 40m 20m Upper beach foreshore sequence, also has fluvial sediments, lignite clays etc (southern end) Width of strand ~290m Upper beach surf zone and lower shore Upper marine seq. 10m 0m Lower beach foreshore Lower beach surf zone and lower shore Lower marine seq. Slide 21 example of core recovered High grade heavy mineral strand at HM>3% - 21

22 Enhancement of Geology Processes Ground Magnetic surveying Use of magnetic surveys to identify buried HM stands Optimal elevation for detection of weak magnetic anomalies at surface Iluka recognised the additional use ground magnetic survey data to confirm assumed strand continuity Detailed ground magnetic data aids in the definition of the geometry of different generations of mineralisation deposition 22

23 Ground Magnetic Surveying Results from ground magnetic surveying of HM deposits Surveying was conducted over several Victorian and NSW deposits Results provided information on which characteristics produce detectible magnetic anomaly Results can be used for the placement of grade control drill holes The application techniques to be continued for strands which produce an anomaly Increased confidence in the continuity of modelled resources by detection of discontinuities May result in reduced drilling requirements 23

24 Insert WB picture Survey Results Resource outline HM>3% Reported HM resource outline (HM>3%) Drill hole locations - coloured by Max Heavy Mineral grade down hole (section location ) Ground Magnetic survey TMI Illustrates margins of mineralised HM strand Magnetic peaks correlate with highest grade HM thicknesses 24

25 Challenges in NSW Maturing search space >20 years exploration Continue to secure new ground via new tenements, JV/farm ins Geology challenges: depth to target stratigraphy, ground water management, Potential to develop new marketing opportunities for HM products Changing regulatory landscape Availability of resources Sourcing and application of new technology 25

26 Conclusions Iluka commitment to continuing greenfield and brownfield exploration Iluka will continue to seek new opportunities Commitment to pursuit of technology advances both for exploration and mining Commitment and track record of compliance with regulatory requirements - active engagement with relevant regulatory authorities Efficient regulatory approvals the key to Iluka s willingness to deploy both exploration and project development dollars to NSW, relative to global opportunities 26

27 Closing Slide Closing Statement