ASX Announcement 21 March 2012 Investor Presentation The attached presentation outlines the Company’s activities in: Iron ore exploration in South Africa, and Metallurgical coal in Swaziland, It has been prepared for formal release at the Mines and Money conference in Hong Kong on 21 March 2012. Investors seeking more information on Midwinter should contact: Adrian Griffin Managing Director T: +618 9322 6451 The information contained in the report relates to Exploration Results of projects owned by Midwinter Resources NL and is based on information compiled or reviewed by Mr Adrian Griffin, an employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Mr Griffin has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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. Griffin has given consent to the inclusion in the report of the matters based on his information in the form and context in which it appears. For personal use only
Transcript
ASX Announcement 21 March 2012
Investor Presentation
The attached presentation outlines the Company’s activities in:
Iron ore exploration in South Africa, and
Metallurgical coal in Swaziland, It has been prepared for formal release at the Mines and Money conference in Hong Kong on 21 March 2012.
Investors seeking more information on Midwinter should contact: Adrian Griffin Managing Director T: +618 9322 6451 The information contained in the report relates to Exploration Results of projects owned by Midwinter Resources NL and is based on information compiled or reviewed by Mr Adrian Griffin, an employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Mr Griffin has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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. Griffin has given consent 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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DEVELOPING RAW MATERIALS IN AFRICA FOR THE FERROUS METALS INDUSTRY
This presentation has been prepared by Midwinter Resources NL (‘Midwinter’ or ‘the Company’) in connection with providing general and background information on the Company.
This presentation should not be relied upon as a representation of any matter that an advisor or potential investor should consider in evaluating Midwinter. The Company and its related bodies corporate or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to endorsement of the Company, or the accuracy or completeness of any information, statements or representations contained in this presentation, and they do not accept any liability whatsoever (including in negligence) for any information, representation or statement made in or omitted from this presentation.
This document may contain certain forward-looking statements that involve known and unknown risks, delays and uncertainties not under the Company’s control, which may cause actual results, performance or the achievements of Midwinter to be materially different from the results, performance or expectations implied by these forward-looking statements. The Company makes no representation or warranty, express or implied, as to or endorsing the accuracy or completeness of any information, statements or representations contained in this presentation with respect to Midwinter. Actual results, actions and developments may differ materially from those expressed or implied by the statements in this presentation.
This presentation does not constitute an offer of securities in the Company; nor should this presentation be relied upon by any advisor or potential investor in making an investment decision in Midwinter. Any decision to purchase or subscribe for any shares in Midwinter should only be made after making independent enquiries and seeking appropriate financial advice.
The information in this presentation that relates to the iron projects is based on information compiled by Mr Adrian Griffin, a Member of the Geological Society of Australia and of the Australasian Institute of Mining and Metallurgy. Mr Griffin has sufficient experience that is relevant to the styles of mineralisation, types of deposits and exploration activities undertaken to qualify as a Competent Person, as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Griffin consents to inclusion in the report of the information in the form and context in which it appears. The information relating to the coal project is extracted from Midwinter’s ASX releases and from information in the public domain.
Subject to any continuing obligations under applicable law and the Listing Rules of the ASX Limited, Midwinter does not undertake any obligation to publicly update or revise any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such statements are based.
MIDWINTER RESOURCES NLMidwinter Resources NL (ASX:MWN) (‘Midwinter’ or ‘the Company’) is a dedicated developer of ferrous metal feed materials with a focus on iron deposits in Africa.
Company struCture Shares on issue 30,000,042Market capitalization $4,500,000 Cash available $1,600,000Controlled land position 3,000 km2
Enterprise value $2,900,000
Company planMidwinter plans to capitalize on the development of raw materials for the iron and steel industry in areas in which there is:• developingdomesticsteelproductionoranexportopportunity;• establishedorplannedinfrastructure;• anabundanceofnaturalresourceinputs,including:
– coal – gas – limestone – water, and• theabilitytotakeadominantsupplyposition.
The Company has progressed its aims by establishing a dominant position in the Limpopo Iron Province (comparable in area to Australia’s Hamersley Basin). Those aims have been further progressed by an agreement to acquire coal assets in Swaziland and the discovery of limestone deposits in South Africa. The Swaziland coal deposits, which have a long production history, already have established markets, having been used in the production of ferrochrome and ferromanganese.
Initial exploration by Midwinter in Limpopo has resulted in the successful location of buried magnetite deposits in the form of high metamorphic-grade banded iron formations (BIF), from which it is possible to produce high-grade iron concentrates at a coarse grind size.
There are significant benefits associated with iron deposits from which concentrates low in impurities and with a coarse grain size can be extracted. These include:• reducedplantfootprint;• reducedcapitalandoperatingcosts;• improvedenergyefficiency;• improvedmarketability,and• abroadercustomerbase.
These benefits can be further enhanced by the production of value-added products (pellets, pig iron or steel) and by reducing input costs via control of other major raw material inputs; in particular, limestone and coal.
Proof-of-concept investigations on the first of the available deposits at Northern Lights (Figure 1) clearly confirm what past operators have concluded – that iron concentrates of high quality can be produced from the Limpopo Iron Province deposits, those concentrates being characterized by:• liberationwithcoarsegrind;• ironrecovery85-90%;• Fe69.9%,and• SiO2<2.5%,Al2O3<1.5%,P<0.01%.
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Krugersdorp
Orkney
Kenhardt
De Aar
Upington
Kenhardt
Hotazel
SishenVryheid
Ladysmith
Kroonstad
Orkney
Bethlehem
Bohlokong NewcastleMadadeniWelkom
Pietermaritzburg
Barberton
Piet Retief
Richards Bay - 90 Mtpa
River View
Mkuze
Ulundi
Stanger
Xai-Xai
Amanzimtoti
Musina(Messina)
Kimberley
Johannesburg
Klerksdorp
(Pietersburg)
MafikengMaputo - 10 Mtpa
Gaborone
Bloemfontein
e r g
Ra n g e
B O T S W A N A
ZIMBABWE
SWAZILAND
LESOTHO
MOZAMBIQUE
I N
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Delagoa Bay
Orange
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Caled
onHarts
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Limpopo
Limpopo
Save
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25°
30°S O U T H A F R I C ADurban - 70 Mtpa
Volksrust
Vereeniging
Witbank
S O U T H A F R I C A
SOUTH AFRICA
Orkney
CarnarvonWilliston
Kenhardt
Strand
Umtata
Beaufort West
Victoria West
Worcester
Heidelberg
CalviniaKlawer
CarnarvonWilliston
De AarAliwal North
Middelburg
Queenstown
StellenboschStrand
Grahamstown
Bitterfontein
SpringbokNababeep
Port Nolloth
Graaff- Reinet
Port Elizabeth
Upington
Kenhardt
Hotazel
SishenVryheid
Ladysmith
Kroonstad
Orkney
Bethlehem
Bohlokong
George
Knysna
NewcastleMadadeni
Paarl
SaldanhaVredenburg
Welkom
Pietermaritzburg
Germiston WitbankBarberton
Piet RetiefVolksrust
Krugersdorp
Richards Bay - 90 Mtpa
River View
Mkuze
Ulundi
Stanger
Vereeniging
Oudtshoorn
Oranjemund
Keetmanshoop
Karasburg
Lüderitz
Mossel bay
Xai-Xai
Alesander Bay
East London
Port Alfred
Port St Johns
Port Shepstone
Amanzimtoti
Musina(Messina)
Kimberley
Johannesburg
Klerksdorp
Nelspruit
Polokwane(Pietersburg)
Bisho
Mafikeng
Cape Town
Maputo - 10 Mtpa
Gaborone
Maseru
Mbabane
Bloemfontein
Pretoria
Cape of Good Hope
D r a k e n s b e r g
Ra n g e
Cape Agulhas
Cape St. Francis
N A M I B I A
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LESOTHO
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Saldanha Bay
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Orange
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S O U T H A F R I C ADurban - 70 Mtpa
Uitenhage
National capitalProvincial capitalTown, villageMajor airport
International boundary
Power stationsand power grid
Project area
Potential Banded Iron Formations
Ports
Coal fields
Main roadRailroad
LEGEND
Iron-ore occurrences
PretoriaNelspruit
Polokwane
Maseru
AREA OF NEW APPLICATIONS3000 km2 over 600 km of
interpreted BIF strike
NORTHERN LIGHTS
MPAKA COAL PROJECT MbabaneGermiston
Figure 1 – location of Midwinter’s Northern Lights Project, Limpopo Iron Province and the Mpaka Metallurgical Coal Project.
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Northern Lights Project
100%
Capricorn Iron (Pty) Ltd (South Africa) 30%
Capricorn Iron Pty Ltd(Guernsey)
70%
Midwinter Resources NL(Australia)
49% expanding to 100%
Nkgapu Investments (Pty) Ltd (South Africa)
experIenCeD management team
adrian griffin – managing DirectorEarlyinhiscareer(1970stoearly’80s),AdrianworkedinironwithBHP.Apioneerinthelateriticnickel industry in Western Australia, he has from the 1990s held board positions with a number of public companies. Adrian’s management experience encompasses exploration, financing, development,commissioningandtheproductionofawiderangeofmineralcommodities.Hewas a founding director of Washington Resources Ltd, Empire Resources Ltd, Reedy Lagoon Corporation,NorthernMineralsLtd,HodgesResourcesLtd,PotashWestNLandFerrumCrescentLtd,thelatteralsoaniron-oredeveloperintheRSA.Adrian,whowasinadditionCEOofSouthAfricandiamondproducerDwykaResourcesLtdseveralyearsago,wasappointedCEOofMidwinter in 2011.
martin pyle – non-executive ChairmanMartin has been involved in the resources industry in Australia for 23 years. Working as a corporate finance executive with a number of prominent broking firms, he has been responsible for the generation and execution of equity raisings, mergers and acquisitions, as well as operating in corporate advisory and research capacities. Currently, Martin is chairman of Syndicated Metals Ltd, managing director of Aurora Minerals Ltd, an executive director of Desert Energy Ltd and a non-executive director of Eleckra Mines Ltd.
Bryan Dixon – non-executive DirectorAcharteredaccountant,Bryanhasextensiveexperienceintheminingsector,includingthemanagementoflistedcompanies.Hisfinancingandcorporateexpertiseencompassesprojectacquisition and development. Previously employed by KPMG, Resolute Ltd, Société Générale and ArchipelagoResourcesPlc,BryaniscurrentlymanagingdirectorofASX-listedBlackhamResourcesLtdandanon-executivedirectorofHodgesResourcesLtd.
philip miolin – non-executive DirectorPhilip,whoholdsaBachelorofArtsdegreeandaGraduateDiplomainEducation,isasessionallectureratCurtinUniversityandactivelyengagedinthearts.Hishistoryofinvolvementintheresources sector is extensive, as is his history of investment in Australian mining stocks.
David seymour – non-executive DirectorDavid has more than 25 years’ experience, at an executive level, in investment banking and equities.Hespent10yearsasadirectorofcapitalmarketswithUBSandhasalsoheldpositionsas treasurer and general manager with other financial institutions. David’s expertise includes equity/capital raisings, due diligence, risk management and ASX regulatory requirements.
Corporate struCture
MidwinterisaB.E.E.compliantSouthAfricanexplorer.Ithasbeneficialownershipof70%ofCapricorn Iron (South Africa) through the structure detailed in Figure 2.
Figure 2 – Midwinter corporate structure and ownership of South African assets.
Since Midwinter entered into the agreement to acquire the Northern Lights Project by way of purchasing equity in Capricorn Iron P/L (Guernsey), there have been significant advances in relation to expanding the Company’s South African iron-ore portfolio. These have been achieved by way of tenement applications by Capricorn Iron (Pty) Ltd (South Africa), designed to secure a dominant position in the Limpopo Iron Province. Midwinter is also pursuing opportunities elsewhere in Africa.
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MIDWINTER’S NORTHERN LIGHTS PROJECT, SOUTH AFRICAgeologICal ConCeptThe Northern Lights Project was acquired on the basis that:• itislocatedwithinanextensiveiron-oreprovince;• low-resolutionmagneticsurveysindicatedextensivemagnetichighs;• thosemagnetichighswereinterpretedasburiedBIF,and• explorationonlocalburieddepositshasbeensuccessful.
In 2010 Midwinter was granted Prospecting Rights and pending applications over some of the prospective ground. The Company undertook a high-resolution magnetic survey over that ground to improve upon the magnetic data then available, as well as developing test targets and determining whetherthemagneticresponseresultedfromburiedBIF.ResultsareshowninFigure3.
Figure 3 shows Midwinter’s aeromagnetic survey over currently granted tenure, plus the location of some of the drilled cross-sections (at right).
Areas the subject of granted tenure and with prospective magnetic signatures were developed as drill targets to confirm the presence of magnetite as a source of the anomalism. Unfortunately, theareaofavailableaccessshowedmagneticanomalism,whichsuggestedrelativelythinBIF with complex and discontinuous structures. Nevertheless, drilling commenced in 2010 to prove the model while further applications were being processed. The areas drilled, which were characterized by continuous sand cover, had little or no outcrop.
10NLR027
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-100 mHAA 2
CROSS SECTION LOOKING WESTALONG 606675mE
Base of moderate oxidation
90m
77m
54m
42m
KRANSVALLEI PROSPECTSECTION LOOKING ENE
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-50 m
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616507mE7450035mN
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616478mE7450075mN
616458mE7450116mN
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BIF
Colluvium
BIF (interpreted)
Base of total oxidation
MIDWINTER’S NORTHERN LIGHTS PROJECT, SOUTH AFRICA
12NLR 044
102m
150m
HALLA PROSPECT
CROSS SECTION 631100mE
LOOKING WEST
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proof-of-ConCept exploratIon Proof-of-concept exploration at Northern Lights has identified the potential to expand Midwinter’s exploration to the widespread iron occurrences throughout Limpopo Province. These occurrences, although noted by government geological surveys, have undergone little exploration to date, the exceptions being:• Moonlight–Iscor/FerrumCrescent;• DeLoskop–Iscor,and• Zandrivierspoort–Iscor/Kumba/Arcelor.
Midwinter reviewed open-file magnetic data, regional geological map sheets and remote-sensing imagery to identify priority areas for new Prospecting Right applications and, where appropriate, the target areas were ground-checked to verify the presence of magnetite mineralization. This work led to a series of priority applications being lodged with the South African DMR in the first half of 2011. Accepted applications are shown in yellow in Figure 4. It is of particular interest that, in general terms, the amount of cover decreases from west to east as topographic relief increases.ThisresultsinBIFoutcroppinginmanyareas,enhancingMidwinter’sabilitytodefinedrill targets without the prerequisite of aeromagnetic surveys. Examining the iron formations in outcrops has the distinct advantage of allowing the Company to determine the geometry of the target zones prior to drilling. Indeed, in many locations within the eastern half of the areas under application, the iron formation is configured as dip slopes, which have little overburden (see Figure 5).
Thus, not only does the geometry of the iron formations in the eastern half of Midwinter’s Northern Lights Project enhance the potential of the area but access to infrastructure is also improved, since railways traverse some of the deposits.
It is likely that the number of occurrences already identified within the Midwinter application areas in Limpopo Province, together with occurrences yet to be discovered, will provide a range of deposits optimal in terms of the principal parameters for commercialization of iron ore there. Those parameters include:• minimizationofbulk-haulagecosts;• reducedstrippingratios,whichreduce
Midwinter is confident that, with the application of sound geological principles, the outcome will be significant not only for the Company but for its stakeholders, including Nkgapu Investments and local communities, as well as local governments and the government of the RSA.
Figure 5 – banded iron formation with little overburden forming dip slope.
MIDWINTER’S NORTHERN LIGHTS PROJECT, SOUTH AFRICA
MIDWINTER’S NORTHERN LIGHTS PROJECT, SOUTH AFRICA
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Figure 4 – Midwinter has applied for areas of prospective magnetite mineralization in BIF covering 270 km of the trend of the Limpopo Iron Province (applications shown in yellow).
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MIDWINTER’S NORTHERN LIGHTS PROJECT, SOUTH AFRICAlImpopo Iron provInCe vIeweD on a gloBal sCaleThe Limpopo Iron Province, which is bounded by the Limpopo River to the north and north-west, extends from about 60 km south-west of Northern Lights along a north-easterly trend to Musina, adistanceofmorethan270km.ZandrivierspoortandDeLoskopareclosetothesouthernextremities.
Midwinter believes the Limpopo Iron Province offers some of the best potential in Africa, due to:• itssize(thetargetareaismorethan270kminlength);• thesuperiorqualityoftheconcentrate(allowsforcustomerflexibility);• availableinfrastructure(well-developedroad,railandpower);• theproximityofmarkets(itisclosetotheheartlandofadevelopingsteelindustry);• exportopportunities(thereareraillinkstodeep-waterports),and• theavailabilityofrawmaterials(localcoal,gas,limestoneandwater).
These factors are conducive to the production of a value-added product (pellets, pig iron or steel) or to marketing a concentrate comparable in quality to any currently commercially available.
The potential for the area to become a major supplier to the expanding steel markets is put in perspective when it is compared with the principal producing areas of Australia’s Hamersley Basin (Figure 6), the world’s largest source of globally traded iron ore.
With iron deposits within Limpopo Province already recognized by the South African government, Midwinter’s reconnaissance surveys have identified them as iron ore with characteristics similar to that found at Northern Lights. Midwinter will thus emerge as the dominant participant in the region.
Figure 6 – Limpopo Iron Province, bounded to the north by the Limpopo River and extending south to De Loskop and Zandrivierspoort. This area compares favourably with Australia’s Hamersley Basin (insert on same scale).
MIDWINTER’S NORTHERN LIGHTS PROJECT, SOUTH AFRICA
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MIDWINTER’S MPAKA METALLURGICAL COAL PROJECT, SWAZILANDovervIewMidwinter has identified an opportunity to expand its interests in the ferrous metals industry via the potential acquisition of a high-quality metallurgical coal project in Swaziland (Figure 7), close to its current iron exploration assets.
Midwinter has an agreement to acquire 100%oftheissuedcapital of Teeman Investments (Pty) Ltd (‘Teeman’), a company incorporated in Swaziland. Teeman’sprincipal asset is a prospecting right application over an area of approximately 20 km2 of ground, with thepresently dormant MpakaCoal Mine (also knownas the Emaswati Colliery)located in its north-west corner(Figure8).
Mpaka Coal Mine was operational from 1964 to 1992. During that time, it produced approximately 5 Mt of good-quality coal (see Table 1), which was used in the production of ferrochrome, ferromanganese and cement.
Figure 8 – geology of Mpaka application area and location of boreholes.
geologyWithin the application area – comprising 20.5 km2 – 19.3 km2 lies over the sedimentary Middle Ecca Series of the Karro Group. This contains the high-quality anthracite seams of the Lower Coal Zone.WithinthatcoalzonetheMainCoalSeamisofprimeinterest,inthatitboastsanaveragethickness of 3.7 m in the Mpaka area (of one set of 25 bore-holes, 23 intersected thicknesses of the Main Coal Seam between 3.2 and 4.5 m; the other two intersection thicknesses were 2.2 m and 1.6 m). Within the project area, the seam dips at a shallow angle of the order of 3 degrees to the east and its depths below surface vary from around 50 m in the west of the project area to 300 m in the east.
Control of raw materIalsTheSwazilandcoaldeposits,whichhaveanexplorationtargetof55-85Mt,canberapidlyupgradedtoJORC-compliantresources.Moreover,Midwintercanutilizetheexistingmineopenings and established infrastructure.
In the event that the Swaziland coal acquisition proceeds as planned, the Company can expand its strategy of controlling input cost to value-added materials by diversifying its potential product rangetoincludethecoalfromMpaka.Also,limestone(usedasafluxforthemanufactureofironand steel) can be derived from the iron-ore pits in Limpopo.
The advantages to the Company of such control of raw materials is that it can utilize reductants and fuel acquired at cost from its own sources, thereby reducing the cost inputs of value-added iron products and increasing profit margins accordingly.
These potential advantages will be incorporated into the Company’s scoping study, planned for 2012.
specification unit mpaka areaYield % 75.00Moisture % 1.30Ash % 14.00Fixedcarbon % 72.00Sulphur % 0.35Phosphorous % 0.01Volatiles % 12.50Ash fusion temperature °C 1250Calorific value 30.00
Table 1 – coal quality at Mpaka.
Figure 7 – Swaziland is close to Midwinter’s iron exploration assets.
Mpaka Prospecting Licence Application 229/2011, lodged on 26/04/2011 by Teeman,is situated just to the south of the main highway that links Mbabne, the capital, and the large town of Manzini, to the west, and the provincial capital of Siteki and the Mozambique port of Muputo, to the east. To date, the area has been testedbywayofatleast48boreholes,thelocationsofwhichareshowninFigure8below.
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MIDWINTER – CONCLUSIONregIonal strategyWithin southern Africa especially, Midwinter aims to identify areas of potential ferrous metal industry feed stocks that may be enhanced in value via reassessment of the commercial attributes of those areas.
In Limpopo in South Africa, systematic exploration of iron occurrences that were identified long ago is the strategy most likely to confirm the area’s potential. Existing well-developed infrastructure, plus the availability of abundant raw materials, will add value to successful exploration results.
If Midwinter’s Swaziland project proceeds, meanwhile, the Company will have the opportunity to export through nearby ports and/or supply reductants and fuel into its own integrated production chain.
Elsewhere in Africa, opportunities will arise as infrastructure develops. With that in mind, Midwinter is targeting, in particular, opportunities for the commercialisation of other land-locked iron-ore deposits.
value proposItIon Midwinter is well-placed for success in that it:• hasestablishedasignificantpositioninamajorironprovince,withthepotentialtoadd
value through:– control of its own coal deposits– access its own limestone deposits;
tHe year aHeaD It is expected that the Midwinter program for 2012 will include:•receiptofSouthAfricangovernmentapprovalforequitycontrol;•grantofafurther2,600km2 of tenure over the Limpopo Iron Province;•regionalreconnaissanceandgroundtruthinLimpopo;•drillingofselectediron-oretargetsovera270-kmtrendinLimpopo;•announcementofmaideniron-oreResource;•grantoftheMpakacoalprospectingrightandtakeoverofTeemanInvestments,and•commencementofscopingstudiesforthedevelopmentofbothitscoalandironassets.
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Midwinter Resources Nllevel 2, 38 Richardson Street
