This document discusses potential mining and infrastructure investment opportunities related to the Braemar Iron Formation in Australia. It describes the Braemar as a major new iron ore province with an estimated 25-50 billion tonnes of magnetite resources. Development could include 5 large open pit mines each producing 50-100 million tonnes of iron ore concentrate annually over 100 years. Key infrastructure investments discussed include rail lines or slurry pipelines to transport concentrate to port, expanding an existing port to handle 50+ million tonnes per year of exports, and building a pellet plant. Total estimated capital costs for full development of mining and transport infrastructure are around $6.65 billion.

1. Mining
&
Infrastructure
Investment
opportuni4es
on
the
Braemar
Iron
Forma4on
Australia
China
Resources
Symposium,
Adelaide
11
July
2012
Andrew
WoskeG
Managing
Director,
Minotaur
Explora4on
Ltd
(ASX:
MEP)

2. Cautionary Statements
This
presenta,on
has
been
prepared
by
the
management
of
Minotaur
Explora,on
Limited
(MEP)
for
the
general
benefit
of
analysts
and
industry
and
does
not
cons,tute
specific
advice
to
any
par,cular
party
or
persons.
Informa,on
herein
is
based
on
publicly
available
informa,on,
internally
developed
data
and
other
sources.
Where
an
opinion,
projec,on
or
forward
looking
statement
is
expressed
in
this
presenta,on,
it
is
based
on
the
assump,ons
and
limita,ons
men,oned
herein
and
is
an
expression
of
present
opinion
only.
No
warran,es
or
representa,ons
are
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or
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validity,
accuracy,
completeness,
currency
or
reliability
of
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informa,on.
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specifically
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and
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extent
permiHed
by
law)
for
losses,
claims,
damages,
demands,
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expenses
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arising
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or
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on
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expresses
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implies
an
expecta,on
or
belief
as
to
the
success
of
future
explora,on
and
the
economic
viability
of
future
project
evalua,ons,
such
expecta,on
or
belief
is
expressed
in
good
faith
and
is
believed
to
have
a
reasonable
basis.
However,
such
projected
outcomes
are
subject
to
risks,
uncertain,es
and
other
factors
which
could
cause
actual
results
to
differ
materially
from
projected
future
results.
Such
risks
include,
but
are
not
limited
to,
explora,on
success,
metal
price
vola,lity,
changes
to
current
mineral
resource
es,mates
or
targets,
changes
to
assump,ons
for
capital
and
opera,ng
costs
as
well
as
poli,cal
and
opera,onal
risks
and
government
regulatory
outcomes.
MEP
disclaims
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obliga,on
to
advise
any
person
if
it
or
they
become
aware
of
any
inaccuracy
in
or
omission
from
any
forecast
or
to
update
such
forecast.
The following presentation is a visualisation of possible infrastructure solutions to
support potential future iron ore mine developments. Locations nominated for the
provision of infrastructure facilities are for illustration purposes only and should not be
considered viable technical, economic, environmental, social or State solutions for any
future requirements

3. Braemar Iron Formation: Location
2
new
maps
to
be
inserted
here

4. Braemar Iron Formation: The Investment background
1. The Braemar Iron Formation:
Australia’s next big Iron ore province
2. Mining development scenarios
3. Infrastructure investment opportunities:
§ Concentrate transfer – Rail and Slurry Pipeline
§ Port & Sea Freight
4. a Mining Investment opportunity
§ Muster Dam Magnetite Project

5. Braemar Iron: Australia’s next big Iron province
The Braemar Iron Formation is a regionally extensive sequence of magnetised sedimentary siltstones, with pervasive beds of magnetite
mineralisation, often up to 300m thick, stretching over 200km, as shown in red on the Total Magnetic Image below.
400km
The
Braemar
Iron
Forma4on
has
poten4al
for
an
"Explora(on
Target”
of
25
–
50
billion
tonnes
of
the
magne4te
form
of
iron
The
term
"Explora(on
Target”
should
not
be
misconstrued
as
an
es4mate
of
Mineral
Resources
and
Reserves
as
defined
by
the
JORC
Code
(2004),
and
the
term
has
not
been
used
in
that
context.
It
is
uncertain
if
further
explora4on
will
result
in
the
determina4on
of
a
Mineral
Resource.
Refer
Cl
18
of
the
JORC
Code
(2004).

6. Braemar Iron: the potential mining scale
² around 5 large open cut mines
² each mining 50 – 100 million tonnes of ore p.a.
and each beneficiating 10 – 20 Mtpa of iron
concentrate, exceptionally low in impurities
² for total annualised output of ~50 - 100 Mtpa of
blast furnace quality concentrates grading 65% -
70% Fe
² and with a foreseeable 100 year life of mining
across the Braemar Iron Formation

7. Braemar Iron: Transporting iron products to Port
๏ Rail:
• Main continental E-W standard gauge rail line
runs right through the Braemar Iron Formation
• Deposits are a 150km - 300km rail trip to Port
Pirie where a Pellet Plant could be established
• existing spare rail line capacity of 10Mtpa
• For 25Mtpa haul capacity, need;
• line duplication to provide sufficient train
paths beyond 10Mtpa
• 9 train sets each comprising 5 x 4,000hp
Traction locomotives & 162 wagons
• 1990 train trips per year
• 5 hour load/unload turnaround time (max)

8. Braemar Iron: Concentrate transfer to Port
๏ Slurry Pipeline:
• Slurry transfer is a cost effective alternative
to rail haulage for a long-term mining
project
• Slurry transfer can be used for concentrate
movements from mine to port
• we envisage a 300km long buried pipeline
to a Pellet plant near Port Pirie or 380km to
a deep water port location
• 25Mtpa requires a 600mm diameter
Concentrate delivery pipe + Return Water
Line
• Example:
✴ Minas Rio iron project, Brazil; 600mm
diameter pipeline is 522km long, to
transport 24.5Mtpa of concentrate
• 2-3 intermediate Pump Stations
• Port Dewatering station & Concentrate
Slurry
loading
via
a
floa4ng
Stockpile
vessel
storage
Photo
courtesy
Royal
Resources
Ltd
• both rail and slurry line solutions could be
used to transport >25Mtpa of concentrate

9. Braemar Iron: Port for bulk loading of iron products
Biggest
challenge
to
development
of
new
mines
is
lack
of
bulk
handling
port
infrastructure:
• Port
Adelaide:
capacity
is
only
1.7Mtpa
• Port
Pirie:
capacity
expanding
to
8Mtpa,
but
has
very
shallow
dra^
• Port
Bonython
(proposed):
sub-­‐op4mal;
extra
rail
distance
incurs
addi4onal
haulage
charges
Mines on the Braemar need to berth 200,000 DWT Cape Size’ vessels to export iron
concentrates & Pellets:
ª Minimum 50Mtpa port capacity
ª up to 250 ships loaded per year
ª 6,000tph loading rate
ª 320m long, double sided berth
ª 20m draft accessible in Spencer Gulf
ª Need new deep water port in
Spencer Gulf, south of Port Pirie
ª jetty length ~3km
ª Capital cost around $750 million

10. Braemar Iron: Sea Freight 5,300 nautical miles

11. Braemar Iron: Infrastructure Investment scenarios
Item
Scale
Capital
Cost
A$
million
Power
&
Transmission
500MW
$2,250
Desalina4on
Water
50Gl/year
$500
Slurry
Pipelines
25Mtpa
$650
Rail
expansion
to
25Mtpa
380km
$750
Locomo4ves
&
Wagons
9
train
sets
$550
hauling
25Mtpa
Port
for
200,000
DWT
50Mt
$750
Pellet
Plant
10Mt
$1,250
Total
Capital
Investments
±$6,650

12. Mining
Investment
opportunity
at
Muster
Dam
on
the
Braemar
Iron
Forma4on
1,500,000,000
tonne
JORC
resource
contains
225
Mt
of
70%
Fe
in
concentrate

13. Muster Dam, South Australia
Mutooroo
Pastoral
Sta4on
is
500km
from
Adelaide

14. Muster Dam – 6.2km Strike length

15. Open Pit for 10Mtpa Concentrate over 20+ years
Final
Pit
dimensions:
Length
=
5,700m
Width
=
730m
–
975m
Depth
=
320m

16. Muster Dam Section schematic
!

17. Muster Dam Development Schedule
Ac(vity
2011
2012
2013
2014
2015
2016
Resource
Defini(on
Scoping
Study
PermiIng
Feasibility
Financing
Construc(on
Commissioning

18. Muster Dam Magnetite
1.5
billion
tonne
JORC
resource
contains
225
Mt
of
70%
Fe
in
concentrate,
not
including
Hema4te
component
which
is
35%
of
the
Fe
mineralisa4on
JORC Estimate Concentrate Properties
JORC Billion Magnetite Fe% Al2O3 % P2O5 % S% SiO2 % LOI %
Category tonnes§ DTR %
Inferred 1.5 15.2 69.8 0.4 0.002 0.002 2.8 -3.3
Target
for
Blast
Furnace
Pellet
fines
>60
1.0
-­‐
1.5
<0.03%
P
<0.01
<5.5
-­‐2
to
-­‐4
§
Average
Density
2.96t/m3
 "DTR%
(Mass
Recovery)
=
Wt
Magne4te
(g)
/
Wt
Head
(g)
EXPLORATION
TARGET⌘:
addi,onal
2.2
–
4.2
billion
tonnes
@
15%
–
18%
DTR
⌘Refer
earlier
Cau4onary
Statement

19. Muster Dam

20. Mining
Investment
opportunity
at
Muster
Dam
Interested?
Please
see
me
at
the
Minotaur
Explora4on
Trading
Table
Andrew
WoskeG
Managing
Director,
Minotaur
Explora4on
Ltd
(ASX:
MEP)