Project Brief Pasir Besi_yogya

8/14/2019 Project Brief Pasir Besi_yogya

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Project Information Brief May 2006

Yogyakarta

Ironsands- Pig IronProject


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IntroductionIndo Mines Ltd emerged from the former company Australian Kimberley Diamonds ( AK D ). AKD has be en listed on the Australian Stock Exchangesince December 1993 and has been involved in the exploration anddevelopment of mineral projects, in particular diamonds, sinceincorporation.

AK D has a por tfolio of high qua lity exploration pro spects both in Australiaand Peru.

In Australia, AKD's assets include the King George and Seppelt Rangediamond projects located in the North Kimberley of Western Australia, theBird in Hand gold project located in the South Australia and the W onarahphosph ate project located in the Northern Ter ritory.In Peru , AKD has 100% of the Chinguela gold project and 30% of the Nangaligold project. It also retains a 0.5% NSR in the El Molino coppe r gold project.

Following a change of direction towards the development of mineralresource projects in Indonesia, in part icular the development of the Yogyakarta Ironsands / Pig Iron Project, AKD Ltd was renamed IndoMines Limited in March 2006.


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Project BriefRecently Indo Mines Ltd acquired the rights to earn a 70% interest in the Yogyakarta Ironsands - Pig Iron pr oject in Indonesia, following the relevantappr ovals and due diligence.The Iron sands depo sit was initially drilled by PT Aneka Tamb ang in the 1970'sand early 1980's. On the basis of this drilling and subsequent test-work,feasibility studies com pleted by Lurgi and Davy McK ee in 1985 repor ted a largeironsand deposit containing titano-ferrous magnetite over a 22 km by 1.5 km wide strip o f coastal plain.The ironsands deposit at Yogyakarta will be used as the basis for theestablishment of a pig iron making facility at Yogyakarta to provide feedstock for regional steel producers.The location of the beneficiation and pig iron plant at Kulon Progo will be inthe Yogyakarta Province. This location is nominated due to its strategicposition - close to raw material sources, the availabili ty of infrastructure andother required util it ies power, water, rail and harbourProposed initial capacity is 300,000 Tonne / year of Pig Iron. During thefeasibil ity study options will be evaluated to increase pig iron production

capacity produce and to produce additional ironsand concentrate for directexpor t sale. Apart from ironsand as i ts raw material , the project requires other supportingma terials such as coal and lime stone, all of which are available within closeproximity in Indonesia.


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Historical and Potential Ironsand Deposit DataDeposit: Titaniferrous magnetite sand deposit over22km x 1.8km area; Historical data indicates an average

10m depth from surface; grading up to13 % Fe

Exploration Target: + 300 Mt ironsand based ongeological due diligence completed by McKay &Schnellman(a substantial non JORC Compliant resource was defined by Lurgi/ DavyMcKee in 1985 based on +13,000 drill holes by Aneka Tambang in 1970s)

Potential Mine Life: The potential size of the deposit isexpected to be well in excess of a 15 year mine lifeproducing 300,000 tpa pig iron


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Resource Definition Program

CurrentlyCompleted geological due diligenceTopogaphical Survey using Differential GPS beingcompleted by Gajah Mada UniversityManagement of exploration program by expatriatesMackay & SchnellmannDrilling using 2 track mounted air core rigs is being

completed by PT RB Drilling JakartaLaboratory XRF analysis underway with ALS in Perth


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Resource Definition Program ( cont )April to June 2006

Resource definition drilling programTopographical SurveyUp to 16,000m of air core drilling

Up to 1000 holes at 16 m average depthInitial drilling on a wide spaced 800m x 100m grid

Infill drilling to follow in order to define deposit to a measured / indicated JORC standard

July to August 2006

Complete JORC compliant Resource for minimumproject life ( + 15 years )Ore Resource calculationGeostatiscal analysisMine Plan and Costing


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Current as of May 20 5,000 m drilled


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Anticipated Product Grades

Ore % Concentrate % Pig Iron %

Fe up to13 58 to 60 C 1.5 to 2.5TiO2 7 to 9 Si 0.5 max

V2O5 0.5 to 0.6 P 0.1 maxSiO2 1.2 to 1.4 S 0.05 maxAl2O3 3.3 to 3.5 Ti 0.05 maxS 0.03 to 0.05 V 0.02 maxP2O5 0.24 to 0.26 Fe 94 min


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Proposed Schedule* 2006 *

MarchCommence resource definition drilling program including Topographical

Survey and up to 16,000 m of air core drillingInitial drilling on a w ide spaced 800m x 100m gr id with Infill drilling to follow to define deposit to a m easur ed/indicated JORC standa rd Appro x. 10,000 sam ples for ana lysis

July

Complete JORC compliant Resource for minimum project life (+ 15 years )including Ore Resource Calculation and Geostatistical AnalysisMine Plan and CostingConcentration, reduction and smelting testwork based on representativedrilling sample by Outokumpu

AugustCommence Bankable Feasibility

SeptemberFinalisation of Offtake arrangements


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Proposed Schedule ( cont ) 2007

January Continue Bankable Feasibility Study

Commence project finance arrangementsPerformance Guarantee Testwork

JuneCompletion Bankable Feasibility Study

If BFS is positive the follow ing schedu le is anticipated for pr oject executionJuly

Commence Project Design 2008

AugustCommence Concentrate Production

2009 December

Commence Pig Iron Production


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Proposed Study Development Schedule

1 2 3 4 5 6 7 8 9 10 11 12

Technical Study

Exploration Program

Testwork

Drilling

Resource Estimate

Mine Plan

DesignEstimation

Infrastructure

Report

Design

Performance

Month

XRF Analysis


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Feasibility Study - Managed by Outokumpu

Technical StudyResource DefinitionMining DevelopmentTestworkProcess Plant including Beneficiation / Multiple Hearth Furnace / KilnReduction and Ti & V slag removalLocal infrastructure / fabrication / constructionEnvironmental

CommercialProject Capital and Operating CostsDevelop financial model and project debt / equity arrangement

Offtake ArrangementsNegotiate product offtake with Indonesian Steel Producers and Others


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Project Development Alternatives Subject toStudy

Current base project 300,000 tpa pig iron

AlternativesIncrease total pig iron production up to 0.5 to 1 MtpaIncrease Concentrator Size ~ 1.5 Mtpa plus 300 to 500,000 tpa pigiron for pig iron and concentrate saleDownstream expansion to Specialty Steels from liquid pig iron


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Testwork Program - Managed by Outokumpu

CurrentlyPreliminary concentration testwork on winnowed surfacesample completed by Outokumpu Technology Florida

Confirms historical mineralogy and metallurgical propertiesConcentrate can be produced by Gravity and Low IntensityMagnetic Separation

July 2006Testwork based on representative drilling sample

Concentration, reduction and smelting

January 2007Bulk sample testing for performance guarantees


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Anticipated Process Flowsheet

Mining

5.5 Mtpa

Beneficiation0.7 Mtpa

MHF / SLRNReduction 0.51 MtpaIronmaking

0.3 Mtpa

0.33 Mtpa of Coal

131 GwHPower

The technology proposed is

similar to that successfullyemployed for 20 + years on anironsands to steel operation inNew Zealand

~3.0 Mtpa

Project Brief Pasir Besi_yogya

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