Miner, Developer, Explorer

Transcription

1 Miner, Developer, Explorer July 2013 ASX:CAS

2 2 Disclaimer The information provided in this presentation is of a general nature only. Although it has been prepared in good faith with all due care there can be no guarantee that it will continue to be accurate in the future. No one should act or rely upon the information but should undertake their own independent due diligence or seek appropriate professional advice. To the extent permitted by law Crusader Resources Limited ( Crusader ) excludes all liability from any statement in, or omission from, this presentation. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Crusader securities in any jurisdiction. Forward Looking Statements This presentation may contain certain forward looking statements and projections regarding: estimated resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Crusader. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved. Crusader does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims any obligation to update or revise any forward looking statements/projections based on new information, future events or otherwise except to the extent required by applicable laws. Competent Person Statement The information in this report that relates to Exploration Results is based on information compiled or reviewed by Mr. Robert Smakman, who is a Fellow of The Australasian Institute of Mining and Metallurgy and is a full-time employee of the company. Mr. Smakman has sufficient experience in the type of deposits under consideration and the activities being undertaken to qualify as a Competent Person as defined in the December 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The information in this report that relates to Posse Fe Mineral Resources is based on and accurately reflects, information compiled by Mr. Bernardo Viana who is a full time employee of Coffey Mining Pty Ltd and Member of the Australian Institute of Mining and Metallurgy. Mr. Viana has sufficient experience that 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. Viana consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The information in this report that relates to Borborema Gold Mineral Resources is based on information compiled by Mr. Lauritz Barnes and Mr. Brett Gossage who are both Members of The Australasian Institute of Mining and Metallurgy. Messrs Barnes and Gossage are both independent consultants to Crusader Resources Limited. Both Messrs Barnes and Gossage have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which is being undertaken, 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. Messrs Barnes and Gossage consent to the inclusion in the report of the matters based on the information in the form and context in which they appear. The information in this report that relates to Ore Reserves is based on information compiled by Mr. Linton Kirk who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr. Kirk is an independent consultant to Crusader Resources Limited. Mr. Kirk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken 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. Kirk consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

3 3 Corporate Snapshot Borborema Gold Project Resource 2.43Moz Au Reserve 1.61Moz 4,500km 2 regional tenements Posse Iron Ore Mine Resource 43.5% Fe Commissioned March 2013 Expansion 2 nd half 2013 Achievements Iron Ore Licences - Dec 12 LOP; May 13 LP/LI Mar 13 First iron ore sales Posse Jul 13 Nameplate production achieved Achievements - Gold Nov 12 Maiden Ore Reserve Borborema Mar 13 Funding - $20 M Macquarie Bank Achievements Corporate May 13 - Board restructure & overheads reduction complete Capital Structure* Ordinary Shares (ASX:CAS) Options 1 Market Capitalisation 2 Cash at Bank (30 Jun 2013) * As at 11/07/13 1 exercise prices: $0.35 to $ share price $0.25 Significant Shareholders Dundee Corporation 13 % Northcape Capital 10 % M 13.5 M ~ $32 M ~ $2.8 M Directors 15 % Top 20 Shareholders own 63 % of Share Register

4 4 Crusader s Investment Case Cashflow Generation Posse Iron Leverage to Gold Price Borborema Gold Pipeline / Opportunity Brazilian Exploration & Project Generation

5 5 Crusader Share Price Re-Rating Since commissioning Posse, Crusader has outperformed the S & P / ASX Small Resources Index 115% CAS.ASX S&P/ASX SMALL RESOURCES 105% 95% 85% 75% 65% 55% First Iron Ore Sale 45% Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Broker Coverage:

6 Posse Iron Ore Mine Cash Flow Delivering Shareholder Value 6 Exploration Development Production Posse Iron 100% Crusader Opex ~ A$12/t Sales contracted with domestic smelters In heart of Brazilian iron industry Expansion planned Q3 of 2013 Explored, developed, commissioned

7 ADD PHOTO BELO CITY 7

8 8 Infrastructure & Customers Close to Belo Horizonte, Brazil s mining heart The Iron Quadrilateral Highway network to the mine gate Smelters surround the project Product demand is strengthening driven by domestic growth Alterosa Gerdau Arcelor Multiple sales contracts in place

9 9 Our Customers BRAZIL 3 rd largest iron ore producer (~370 Mtpa) and 5 th largest pig iron producer (~32 Mtpa) globally Siderúrgica Alterosa S.A Major player in iron making industry Minas Gerais and Brazil Production capacity 288,000 tpa of pig iron Products sold to domestic Brazilian market, North & South America, Europe and Asia Employs approximately 400 direct, and 1,000 indirect personnel Gerdau Leading producer of long steel in the Americas one of the largest suppliers of special steel globally > 25 million tonnes p/a produced > 45,000 employees Operations in 14 countries Largest recycler in Latin America and around the world Listed on stock exchanges of São Paulo, New York, Madrid ArcelorMittal World s leading steel & mining company 130 million tonne annual production capacity 245,000 employees over 60 countries

10 Posse Iron Ore Mine Resource + Growth 10 Well understood geology Both itabirite and haematite ore JORC Indicated and Inferred Resource of % Fe Stripping ratio initial 0.15:1 moving to 0.21:1 Lump high grade haematite of >64% Fe with very low phosphorus will be the focus of early production Mineralised Zones Tonnes (Mt) Posse Mineral Resource Indicated & Inferred January 2009 (Coffey Mining) Fe (%) SiO 2 (%) Al 2 O 3 (%) Mn (%) P (%) LOI (%)* IPC IPF IRC IRF Total * Loss on Ignition

11 11 Drilling Results 45.23% Fe from 0m in PORC-003 including: 66.43% Fe from 8m; and % Fe from 0m in PORC-004, including: % Fe from 0m % Fe from surface in PORC-003, including: % Fe from surface which includes: % Fe from 8 m and % Fe from 34 m; and % Fe from surface in PORC-004, including: % Fe from surface, which includes: % Fe from 0 m and % Fe from 12 m

12 Drilling Results Cross Section A A 12

13 13 Posse Flow Diagram Primary Crusher Secondary Crusher + 32mm + 6,35mm - 6,35mm + 32mm + 19mm + 6,35mm - 6,35mm -6,35mm FINES -32mm +19mm -19mm +6,35mm Haematite

14 14 Current Operations DSO products are coarse lump (14.5%), fine lump (18%), an d fines (67.5%) Currently licensed for 300,000 tpa ROM- moving to 1.0 Mtpa with expanded licence Full Environmental licence (LI/LP) granted in May 2013 final step towards full mining right Licence for full mining right pending Contract mining (very low-cost option in Brazil) Evaluation of magnetic circuit for introduction in 2014

15 Posse Iron Ore Delivering Value 15 Expected positive developments from Posse Iron Ore alone Consolidate production ramp up and cashflow generation Full mining licence Expand production at Posse Iron Study into low capital cost of processing fines

16 PRODUCTION 16 TRANSPORT& LOGISTICS

17 Borborema Gold Project 1.61 Moz Reserve 17 Exploration Development Production Borborema Gold Project 100% Crusader owned Development Project Strategy is, be ready to build Hard work complete - > 80,000m drilled Completed PFS. Final Feasibility work underway 1.6 Moz Au in Reserve

18 18 Borborema Gold Project 1.61 Moz Au Proven and Probable Ore Reserve ( g/t) 1.87 Moz Au in Measured & Indicated Resources 1.14 g/t) Total Resources g/t (Measured, Indicated & Inferred) Brazil s first heap leach operation late 1980 s. Production of approximately 250,000 oz of gold recorded

19 19 Project Advantages Excellent Location 25km from mining town of Currais Novos (pop 42,000) Region has rich mining history Excellent Infrastructure Low Cost Bitumen Highway BR226, 140km from city (and port) of Natal to mine gate Power lines traverse Crusader's tenements Multiple water options available Low mining costs - owner operated, cheap diesel and labour Mineralisation amenable to bulk mining Low processing costs- moderate consumables, low power costs Government Incentives Sudene tax concessions 1 may be available overall tax rate of 15.25% Low government mineral royalties 2 - currently 1% 1 A federal government economic stimulus scheme, called Sudene, provides significant benefits for businesses operation in the north east of Brazil, including Rio Grande do Norte. The scheme was introduced to boost economic activity in a relatively impoverished area of Brazil. Company tax rates are reduced from 34% to 15.25% for a period of 10 years. Other benefits include reduction in the rates of taxes such as goods and services taxes, sales taxes and import duties. 2 The current rate of government royalty is 1% of sales revenue. There is also a 0.5% royalty payable to the landowners. Note that Crusader owns a number of farms in the immediate area including the one that covers the central part of the ore body.

20 20 Resource Growth Resource / Reserve Definition Moz Au 2.5 Resource Update Resource Update Resource Update Maiden Reserve CAS purchases Borborema Maiden Resource Proven & Probable 0 Aug-10 Nov-10 Jun-11 Nov-11 Jul-12 Nov-12 Measured Resource Indicated Resource Inferred Resource Maiden Ore Reserve Unconverted Proven Probable Borborema Gold Project - Maiden Ore Reserve Category Tonnes (Mt) Grade (Au g/t) Mineable Gold (koz) Oxide Fresh Oxide Fresh ,260 Total ,610 (1.61 Moz) Ore Reserve estimate for the Borborema Gold Project. Reported at a 0.4 g/t cut-off for oxide and 0.5g/t cut-off for fresh material. The cut-off grades have been based on the latest throughput costs, gold price of US$1350/oz, metallurgical recovery of 95% and then rounded up. Note, appropriate rounding has been applied, subtotals may not equal total figures.

21 21 Drilling Highlights January g/t Au from 142m in CRDD g/t Au from 245m in CRDD Including g/t Au from 252m 7.87 g/t Au from 74m in CRRC Including g/t Au from 81m 2.04 g/t Au from 0m in CRRC g/t Au from 59m in CRRC Including g/t Au from 62m February g/t Au from 64m in CRRC Including g/t Au 4.91 g/t Au from 190m in CRDD Including g/t Au 3.15 g/t Au from 104m in CRRC-215 April g/t Au from 278m in CRDD including g/t Au 3.17 g/t Au from 301m in CRDD including g/t Au from 308m 2.73 g/t Au from 294m in CRDD-136 June g/t Au from 287m in CRDD g/t Au from 194m in CRDD-151 August g/t Au from 304m and 3.61 g/t Au from 327m in CRDD-134, a combined interval of 2.6 g/t Au from 304m g/t Au from 161m and 6.48 g/t Au from 173m and 2.16 g/t Au from 207m in CRDD g/t Au from 167m and 2.93 g/t Au from 182m in CRDD g/t Au from 304m and 1.08 g/t Au from 317m in CRDD g/t Au from 239m in CRDD-159

22 Long Section 22

23 23 Staged Development Stage g/t, Strip 3.3 : koz Lowest cost, higher grade pit Selective mining may allow for further improved early ounces

24 24 Staged Development Stage g/t, Strip 7.5 : koz Commences well before Stage 1 complete Project is viable on Stage 2 (or similar design) only

25 25 Staged Development Stage g/t, Strip 8.0 : koz May be deferred for future upside All 3 stages formed the basis for BFS Stage g/t, Strip 3.3 : koz Stage g/t, Strip 8.0 : koz Stage g/t, Strip 7.5 : koz

26 26 Staged Development Initial pit stages lower strip ratio Two stages will be mined concurrently to even out fleet requirements Total Ore Reserve of 1.18 g/t, Strip ratio 6.5 1,630 koz Stage g/t, Strip 3.3 : koz Stage g/t, Strip 8.0 : koz Stage g/t, Strip 7.5 : koz

27 27 Gold Price Source: Commonwealth Bank of Australia

28 Cross Section P P 28

29 Borborema Exploration Upside 29

30 30 New Projects Where to Look? Sirius Resources - Nova (Nickel)

31 31 Regional Exploration Underway Project area >4,500km 2 - Expanding 100% owned by Crusaderfirst mover New Gold Belt? ~200km of strike Never explored for gold

32 Board & Management Excellent Track Record 32 Board Of Directors Chairman Stephen Copulos + 30 years experience in business & investments in a wide range of industries, and over 14 years experience as a company Director for both listed and unlisted companies. Major shareholder of CAS for many years. Aligned to improving shareholder returns. Managing Director Robert Smakman Highly experienced Geologist & Manager with over 20 years Australian & international experience. Founding member of Crusader & has played integral part in moulding company into its present shape. Rob is based in Brazil (+ 8 yrs) and fluent in Portuguese. Fellow - AusIMM. Executive Director Paul Stephen +20 years experience in Financial services & Australian equity markets, specialising in Capital Management & Corporate Structuring. Paul is a founder of Crusader Resources Ltd. and holds a number of non-executive roles in the finance and resources sectors. Non-Executive Director David Netherway Australian Mining Engineer with over 35 years experience in mining industry & has held senior management positions at a number of mining companies. David is also Chairman, as well as non-executive Director of several listed mining companies. Non-Executive Director Mauricio Ferreira More than 35 years in resources/ energy sectors. Highly educated and experienced manager. Ex Vale executive. Has been involved in the exploration and development of three Brazilian gold projects. Mauricio is a Brazilian national. Non Executive Director John Evans Experienced Director & Chartered Accountant. Over 15 years in private sector finance executive roles, including listed Companies. Currently Principal of a Business Broking & Corporate Advisory Practice. Chairman of Crusader s Audit & Remuneration Committees.

33 Board & Management Excellent Track Record 33 Management COO Michael Schmulian + 40 years of experience as Geologist, Manager & Executive. Developed several South American Gold Projects. In-depth knowledge of Brazilian mining legislation and culture. Mike is a Fellow of the AusIMM, is based in Brazil (+ 20 yrs) and fluent in Portuguese. Exploration Manager Aidan Platel Aidan is an experienced Australian geologist. (Ex Mirabela), with over 10 years experience in gold & base metal exploration. He is based in Brazil (10 years), and is fluent in Portuguese. Project Manager Wayne Foote Wayne is a Mining Engineer with +26 years gold mining experience in Australia, West Africa, and Asia. He has extensive experience in Start Up and major expansion projects. Posse Mine Manager Mauro Calado Brazilian Mining Engineer with over 25 years experience in mining, project development, mineral processing and accident analysis. Mauro has completed an MBA Business Management and a post graduate qualification in Systems Analysis. CFO & Company Secretary Andrew Beigel Andrew has over 15 years corporate accounting & management experience across a range of industries and has held executive positions with other ASX listed companies in the resources sector. He has a Bachelor of Commerce degree & is a member of CPA Aus. Nick Harch Financial Analyst Former Executive Director with Macquarie Bank. Extensive resource financing experience. Consultants Linton Kirk Kirk Mining Consultants Ltd. Linton is a Mining Engineer with +30 years experience in mining, earthmoving & management in several commodities, over five countries. He is a Fellow and Chartered Professional of the AusIMM.

34 34

35 Delivering Projects in Brazil 35

36 36 CAS Investment Case Cash Generation from Posse DSO Mine Cash flow from sales of high grade Posse iron ore. Commissioned March 2013 Low Opex and mine gate sales = high margins Borborema Gold Developing into Major Project Maiden 1.6M ounce gold Reserve Brownfields and greenfields exploration underway on >4,500km² Compelling Combined Investment Proposition Strong DSO iron ore cash flows Moz Au Reserve AUD $32 M Market Cap.

37 37 Contact Information Head Office Suite 1, Level 1 35 Havelock Street West Perth WA 6005 Australia Tel: Fax: Web: paul@crusaderresources.com carey@crusaderresources.com