ASX CODE : WFE
PILBARA IRON ORE EXPLORATION
1
Board of Directors
Mr Albert Yue-Ling Wong BComm (UNSW), F Fin, MSDIA, FAICD
Chairman
Formerly a stockbroker for 21 years, Mr Wong is a corporate adviser and investment banker with over 30 years experience in the finance
industry. He was admitted a Member of the Australian Stock Exchange in 1988 and was the principal of Intersuisse Limited until 1995 when he
established and listed on ASX the Barton Capital group of companies including eStar Online. Mr Wong was also a founding Director of both
Pluton Resources Limited and Gujarat NRE Resources NL. Mr Wong is currently Chairman of Cabral Resources Limited and Deputy Chairman of
Prima Biomed Limited.
Mr Wong has been widely involved in philanthropic activities including current directorships on UNSW Foundation Limited, Ian Thorpe’s
Fountain for Youth Foundation, and Honorary Life Governor and Deputy President of the Science Foundation for Physics at the University of
Sydney. Mr Wong remains a Fellow of Financial Services Institute of Australasia, he is a Member (Master Stockbroking) of the Stockbrokers
Association of Australia and a Fellow of the Australian Institute of Company Directors.
Mr Alex Alexander
Non-Executive Director
Mr Alexander is the founder and Managing Director of Summit Equities Limited, a boutique financial advisory firm with particular focus on
resources and commodities. Prior to this role, Mr Alexander was the director and Head of Equities at Cube Financial Group in Sydney, and
Associate Director, Equities Division at ABN AMRO. Mr Alexander is a Certified Practicing Account (CPA) and holds a Masters Degree in
Management from Moscow State Academy of Management, as well and Graduate Diplomas in Accounting (Macquarie University) and Applied
Finance & Investments (Securities Institute of Australia).
Mr Neville Kenneth Wran AC CNZM QC (Hon.) LLD FRSA
Non-Executive Director
Mr Wran graduated from the University of Sydney Law School in 1948. He was admitted to the Bar in 1957, appointed Queens’s Counsel in 1968
and received his Honorary Doctorate of Laws from the University of Sydney in May 1995 and Honorary Doctorate of Laws from the University
of New South Wales in May 2006.
Mr Wran was the Premier of New South Wales from May 1976 until his resignation in July 1986. He also held various other portfolios including
Minister for Mineral Resources.
Mr Wran is a non-executive director of a number of companies including Brazilian Iron Ore company Cabral Resources Limited. He was the
Chairman of CSIRO from 1986 until 1991. Mr Wran represented Australia as Member on the Eminent Persons Group (EPG) Of A.P.E.C (Asia
Pacific Economic Cooperation) 1993-95.
He is a Governor of the Australia-Israel Chamber of Commerce and past Honorary Chairman of the Trans-Tasman Business Circle. He initiated
the Sister State relationship between Guangdong, The People’s Republic of China and New South Wales
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Board of Directors, continued
Mr David Matthew Coad BSc Hon, MBT
Executive Director
Mr Coad graduated from the Australian National University with a Bachelor of Science
(Honours) degree (Geology) and a Masters Degree in Business and Technology from
the University of New South Wales. Mr Coad is a Director of Tradelands Pty Ltd, a
private consulting company and former Director of Mawson Metal Group Limited. He
has held senior executive positions in commodity and industrial chemical industries .
Mr Coad worked for Minchem Pty Ltd (member of Metallgesellschaft AG Group) and
was a founding member of the team that built Farmoz Pty Ltd to a $100m company
prior to its buyout by Makhteshim-Agan. Previous employment included Chief
Operations Officer, Australia and New Zealand of Ospray Pty Ltd (a Cheminova A/S
company). Mr Coad has considerable experience in Management and Business
development. Mr Coad has worked extensively throughout Australia and China and
with experience in the mining, agriculture and finance industries.
Capital Structure as of 30
June 2011
Market Cap
A$ 10.84M
Ordinary
Shares
69,931,616
Unlisted
options
10,000,000
Cash at Bank
A $931,000
Carolyn Patman
Company Secretary
Carolyn Patman is a Director of Business Services at HLB Mann Judd in Sydney and has been a Chartered Accountant for over 17 years. Carolyn
has built an enviable reputation for work within and across a wide variety of small businesses from various industry sectors including prior
company secretarial experience for small ASX listed companies.
Mr Philip Kirchlechner
Marketing Consultant
Philip has 20 years experience in marketing and business development in the iron ore and steel industry, gained through positions with
Hamersley Iron, Rio Tinto Iron Ore, Voest-Alphine (VAI) and J.P. Morgan.
Prior to taking on this role with Cazaly, Philip worked for Australian iron ore company Aurox Resources, where he successfully identified,
negotiated with and ultimately secured off-take agreements with Chinese partners for its Balla Balla Iron Ore Project in Western Australia.
3
Top 20 Shareholders (30 June 2011)
% Cuml
Units
Total Units
%Issue
Capital
2,500,000
3.575
2,500,000
3.575
3.391
4,871,117
6.966
2,371,117
3.391
1,825,426
2.61
6,696,543
9.576
1,825,426
2.61
BARTON PLACE PTY LIMITED
1,240,803
1.774
7,937,346
11.35
1,240,803
1.774
5
MR ALEX ALEXANDER & MRS LIANG XIE
1,231,105
1.76
9,168,451
13.11
1,231,105
1.76
6
BOOM SECURITIES (HK) LTD
1,201,010
1.717
10,369,461
14.827
1,201,010
1.717
7
RINGSFORD PTY LTD
1,100,000
1.573
11,469,461
16.4
1,100,000
1.573
8
MEGATOP NOMINEES PTY LTD
900,000
1.287
12,369,461
17.687
900,000
1.287
9
ISIWOOD PTY LIMITED
877,958
1.255
13,247,419
18.942
877,958
1.255
10
KINGSREEF PTY LTD
790,760
1.131
14,038,179
20.073
877,958
1.131
11
MR SAM ROBERTSON ESPIE
670,000
0.958
14,708,179
21.031
790,760
0.958
12
ESPERANZA RESOURCES PTY LTD
658,045
0.941
15,366,224
21.972
670,000
0.941
13
MR BRETT GRAHAM WALKER
650,000
0.929
16,016,224
22.901
658,045
0.929
14
CITCON AUSTRALIA PTY LTD
650,000
0.929
16,666,224
23.83
650,000
0.929
15
STATE ONE NOMINESS
624,055
0.892
17,290,279
24.722
650,000
0.892
16
MS SOPHIA WONG
610,996
0.874
17,901,275
25.596
624,055
0.874
17
RJD INVESTMENTS
600,000
0.858
18,501,275
26.454
610,996
0.858
18
MR GRAHAM JOHNSON
600,000
0.858
19,098,537
27.312
600,000
0.858
19
MR MARK UNG
597,262
0.854
19,693,837
28.166
597,262
0.854
20
JACOBS CORPORATION PTY LTD
595,300
0.851
19,693,837
29.017
595,300
0.851
RANK
% Issue
Cumulative Units
Capital
SHAREHOLDER
Total Units
1
CAZALY RESOURCES LTD
2,500,000
3.575
2
MR CORNEL UNG & MRS YOLANDA UNG
2,371,117
3
C N M A AUSTRALIA PTY LTD
4
4
WINMAR’S HAMERSLEY DEPOSIT
ADVANCED PROJECT
• JORC inferred resource 241Mt @ 54.3% Fe (57.6% CaFe)
• CID zone comprises 169Mt @ 55.6% Fe (59% CaFe)
INFRASTRUCTURE ADVANTAGES
• Adjacent to FMG’s massive Solomon Project – 2.85Bt resource
• FMG and RIO rail within 40 kilometres
• Near Tom Price – good logistics and infrastructure
EXPLORATION UPSIDE
• Exploration Target 350Mt -400Mt @ 56-60%CaFe
• Northern target not drilled – rock chips over 60%Fe
PATHWAY TO 100% OWNERSHIP
• An agreement for the right to acquire 51% of the Hamersley
Project from Cazaly Iron Pty Ltd (Cazaly Iron) has been
consummated by Winmar through an initial payment of $A4
million and the issue of 2.5 million Winmar Shares
Winmar Hamersley Project WA
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WINMAR HAMERSLEY DEPOSIT
Winmar Resources Ltd is firmly focused on developing
its Hamersley Deposit which contains:
• Inferred Resource of 241.6Mt @ 54.3% Fe
• Main CID zone comprises 169.1Mt@ 55.6% Fe
• Anticipated resource of 350Mt - 400Mt Fe
The Hamersley Project comprises of:
• Exploration License (E47/1617)–58km2
• Mining Lease (M47/1450)–10km2
Rail Infrastructure – Pilbara
The Project is located approximately 50 km northeast
of the Tom Price township in the Pilbara Region of
Western Australia and lies immediately south of
Fortescue Metals Group's (FMG) Solomon project.
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WINMAR’S HAMERSLEY DEPOSIT – IN THE HEART OF THE PILBARA
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WINMAR’S HAMERSLEY DEPOSIT – Proximity to FMG Solomon Project
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HAMERSLEY Mineralisation Styles
Three styles are present in the inferred deposit, an upper
detrital zone (DID), a mid level channel iron deposits
(CID), and a basement bedded iron deposits (BID). Of
these the CID mineralisation is the most pervasive and
important.
Detrital Iron Deposits
Detrital Iron Deposits (DIDs) are accumulated in colluvial
fans directly flanking Banded Iron Formations.
Channel Iron Deposits
Channel Iron Deposits (CIDs) are prominent in the Pilbara
Region of Western Australia. Examples include the
Marillana and Robe Formations (Mesa J) and deposition
took place during the Tertiary in incised, meandering,
mature river channels draining the Hamersley Ranges.
Bedded Iron Deposits
In-situ bedded iron deposits (BIDs) have formed by a
process of enrichment of BIF in both the Brockman Iron
Formation and the Marra Mamba Iron Formation.
(Vicinity of Hamersley Project WA)
Hamersley Ore body. WINMAR’s Hematite-Goethitic mineralisation found in its CIDs is in demand from Japan
and now China, as they focus on high ‘Value in use’ ores such as WINMAR’s ore
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Winmar Resources Ltd displays incredible
potential for market capitalisation growth
considering its current iron ore JORC of 240Mt.
Fortescue
Mining
Group Ltd
ASX
Code
*Market
Capital
AUD
~EV/t Tenement
Pilbara total
Solomon Hub
FMG
20,110M $ 0.95
Indicated
Inferred
Serenity/Sheila
Solomon East
Mt
10,000
3118
56.2
552
56.4
1672
56.1
1204
56.0
1746
56.3
1528
173
Indicated
1154
Inferred
201
$ 0.29
Total
101.9
CID Indicated
84.2
CID Inferred
17.7
TOTAL
1630
TOTAL
748
Indicated
$ 0.34
475.1
Inferred
272.5
TOTAL
347
Measured
32.9
$ 0.59
Indicated
248
Inferred
66.2
Total
1019
Iron Valley indicated
259
Central
Satellites
$ 0.23
208
Bungaroo South
242
Maitland River
310
(Vicinity
of Hamersley
WA)
TOTAL
Inferred Project241
$ 0.04
Inferred CID
169.1
TOTAL Benefication
BC Iron (BCI) and Rico Resources (RRI) are the
closest competitors, albeit more mature, but
with an EV/t many times that of Winmar.
Opportunity for Winmar to progress to an
anticipated 350Mt - 400Mt resource, on the back
of current drilling program.
Peer comparison on 240Mt of iron ore resource
@ 53%-56% Fe, to position market cap for Winmar
at ~ AUD 200M.
Measured
Brockman
Resources
BRM
478M
Flinders
Mines Ltd
FMS
254.9M
FerrAus
Limited
FRS
206.7M
Iron Ore
Holdings Ltd
IOH
230M
WINMAR
Resources
WFE
10.1M
Nullagine JV
(BCI 50% )
BC Iron
BCI
257.3M
$ 1.86
Measured
Indicated
Inferred
Rico
Resources
RRI
55.1M
$ 0.70
Wonmunna
DSO
Fe %
HAMERSLEY IRON ORE PEDIGREE
Company
138
2.2
68.8
30.6
78.3
10
42.6
41.6
43.0
40.7
55.6
55.8
54.4
44.2
55.4
54.9
56.2
56.6
58.7
58.8
55.0
56.0%
58.3
56.9
57.2
34.7
54.3
55.6
55.0
54.5
54.0
54.4
58.2
61.3
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IRON ORE MARKET
Demand continues to grow across Asia for iron
ore, particularly China
Global Iron Ore Imports in Mt/a
• China is the largest market for iron ore and the only
growth market
• New iron ore suppliers to focus on China steel mills
• Shortages of iron ore supplies = Chinese mills welcoming
new suppliers
Global Pig Iron production trends
Global Pig Iron Production in Mt/a
• 1.6t iron ore = 1t Pig Iron
• China the dominate and growing market for pig iron
production
• Steel production intrinsic to China’s continuing urbanisation
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Australian Competitiveness
Market Share
Distribution Costs into China per tonne
China
Japan
Korea
Taiwan
Origin
Australia
Brazil
South Africa
India
40%
60%
69%
65%
Landed cost
$130
$138
$140
$118
Freight cost
$9
$18.50
$12.50
$10
Australian Shipments Mt/a
Rio
BHPB
FMG
Atlas
MG
Sino
MMX
Cliffs
222
138
40
2.2
6.3
0.7
1.7
9.3
Total
421
Brazilian competitiveness improving through:
- fleet of extra large carriers
- pellet plant JVs (Zhuhai, Oman)
Freight to China US$/tonne, from Brazil, Australia
World Shipments Mt/a
Vale
308
Kumba
33.4
ArcelorMittal 49
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IRON ORE GROWTH
Supply Response
Reduced capital expenditure due to GFC
Skills and capital shortage makes expansions difficult
China
Per capita GDP expected to increase 3-5 fold by 2030
“Go West” policy – developing western China – will
drive continued urbanization, infrastructure
construction and steel consumption
Market Potential
2015
530-580Mt
2020
650–750Mt
Development Aspirations
2015
940 Mt
- Vale
- Rio
- BHPB
470 Mt
330 Mt
220 Mt
2020
1160 Mt
Growth Projects
9 producers with expansions
10-12 at various Feasibility Study stages
60 exploration stage
BHP plans to increase to 350 Mt but not confirmed
FMG has ambitious expansion plans but faces barriers
Mid-West is in a mess and magnetite projects face prohibitive capital costs
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THE WINNING PLAN
1) Metallurgy Work Program Year 1 and Year 2
Focus will be given to improving recoveries and maximising
grade, the following techniques will be investigated:
• Cyclosing of fines
• Desliming
• Magnetic and gravity separation
• Drilling diamond holes to acquire samples for
Metallurgical test work on extensions of the Winmar
Resource.
2) Resource Growth, Validation and Exploration Year 1 and Year 2
The RC Drilling program is complete, and results are indicating a350Mt - 400Mt @ 54–56% Fe, 57-60% CaFe
Exploration Potential Target in Winmar’S Hamersley Deposit. This will be followed by targeted exploration in the
underlying Brockman Iron Formation and other Regional targets.
• PQ Drilling is underway, with the Metallurgy program continuing
• Additional analysis of drilling results to upgrade resource to Indicated and then Measured JORC Category
Exploration Potential - Winmar Deposit Based upon the results to date and the geometric extent of the
target, there is an exploration target for the deposit of 350Mt to 400Mt @ 54-56% Fe (57-60% CaFe) of iron
ore, including direct shipping ore (DSO).
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Results are in – Highlights
2011 RC Drill program now completed with a total of 93 holes drilled for 12,805metres:
• Assays continue to confirm high grade intersections of high quality bedded and channel iron
mineralisation
• Results from outside current resource area as well as infill
New Global Inferred Resource Estimate for Winmar
• 241.6mt @ 54.3% Fe (57.6% CaFe)
• CID Zone comprises 169.3mt @ 55.6% Fe (59.0% CaFe)
• Revised Project Exploration Target of 350 – 400mt @ 54 – 56% Fe
Metallurgical PQ Diamond drilling commenced.
Winmar enters MOU to place 10 million shares at 30c per share with Santosh Lad of
the VS Lad Group to raise $3million
Winmar appoints Summit Equities as Corporate Advisor
Details of Order of Magnitude Study expected by August 2011
Appointment of Iron Ore Expert – Philip Kirchlechner
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