November 2010 Annual General Meeting – Exploration Update Forward Looking Statement
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This document or presentation may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Legacy Iron Ore Limited‟s planned exploration program and other statements that are not historical facts. When used in this document, the words such as “could,” “target,” “plan,” “estimate,” “intend,” “may,” “potential,” “should,” and similar expressions reflected in these forward-looking statements are reasonable, such as statements involving risks and uncertainties and no assurance can be given that actual results be consistent with these forward-looking statements. Executive Summary
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A diversified Australian exploration company with an exploration focus on iron ore, manganese, base metals and gold
Recent farm – in to the Mt Bevan hematite – magnetite project in the Yilgarn. Major funded project with extensive drilling in 2011
Tenements highly prospective for iron and manganese mineralisation in the Pilbara - Hamersley Iron province of Western Australia
Extensive tenements in the South Laverton and East Kimberley regions of Western Australia that are highly prospective for gold mineralisation
Highly prospective base metal project at Koongie Park, East Kimberley
Aim of delivering major mineral resources within a 24 month period
Generating new projects through focused exploration, low cost acquisition and joint ventures Legacy Project Locations
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Iron Ore Projects
Mt Bevan
Robertson Range
Hamersley Manganese Projects
Robertson Range
Gold Projects Mt Bevan
South Laverton
East Kimberley Base metal Projects
East Kimberley – Koongie Park Mt Bevan Iron Ore Project
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A joint venture between Legacy and Hawthorn Resources Ltd – Legacy can earn 60% by expending $3.5m to develop the project to prefeasibility.
The project covers the northern parts of the Mt Ida Archaean greenstone belt.
Holds excellent potential for definition of substantial DSO hematite, and magnetite iron resources located close to existing road, rail and port facilities
Location of Mt Bevan Iron Ore Project Mt Bevan Iron Ore Project
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Located within the Yilgarn Iron Ore Province – a potential world class source of iron ore
Numerous major projects under drilling/pre feasibility:
Mt Mason/Mt Ida/Mt Alfred - Jupiter Mines
Cashmere Downs - Cashmere Iron
Mt Richardson – Cliffs Asia Pacific
Mt Forrest – Mindax Limited
Mt Elvire – Fe Limited
A potential world class iron ore province Mt Bevan Iron Ore Project
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The Mt Bevan Project is located approximately 100km west of the Leonora township in the Yilgarn Iron Ore Province of Western Australia
The project area lies immediately north and along strike of the iron ore resources defined by Jupiter Mining.
Jupiter Mining Resources to date (currently drilling):
5.75Mt @ 59.9% Fe DSO hematite at Mt Mason.
Mineral target estimate of 1.1–1.3 billion tonnes of magnetite ore grading between 30-40% Fe Mt Bevan Iron Ore Project in the Yilgarn Iron Ore Province Mt Bevan Iron Ore Project
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Aeromagnetics and field mapping shows the presence of at least two extensive BIF horizons.
These BIF units host shallow hematite and underlying magnetite iron mineralisation
The BIF horizons are interrupted in the middle of the tenement by a granitoid stock, with the northern and southern horizons extending for some 10-12km each.
Aeromagnetic image of Mt Bevan Project – showing BIF horizons as highly magnetic features Mt Bevan Iron Ore Project
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Iron mineralisation noted to date in outcrop or subcrop includes pods of hematite of up to 20m in width and several hundred metres in strike length.
Most work has been directed to the southern portion of the tenement where it abuts the Mt Mason hematite prospect defined by Jupiter Mines Limited.
Mt Bevan Project – TM image showing BIF horizons and main target areas to date Mt Bevan Iron Ore Project
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3 types of iron mineralisation have been intersected in early drilling:
Hematite – shallow, small pods defined to date
Magnetite – limited drilling has shown large thicknesses of magnetite bearing BIF of ore grade and quality. This is the major target
Surficial Hematite – Goethite - DID style - as a blanket over hematite and magnetite mineralisation Mt Bevan Iron Ore Project
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Cross section showing the three types of iron mineralisation Mt Bevan Iron Ore Project
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RC drilling and Drilling chip trays showing hematite and magnetite mineralisation Mt Bevan Iron Ore Project
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Exploration has only tackled a fraction of the prospective BIF horizons to date.
Substantial potential for hematite DSO iron ore, but there is major potential for a very large tonnage of magnetite iron ore.
Last phase of drilling by Hawthorn encountered shallow dipping coarse grained magnetite bearing units. Mt Bevan Iron Ore Project
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Footwall of magnetite units not reached in most instances – thicknesses of circa 100m evident in limited drilling
Similar thicknesses and geometry seen along strike to south by Jupiter Mines in recent drilling
Davis Tube Recovery testing returned very good results comprising over 69% Fe with low deleterious impurities of Si, Al and P, from the sampled weathered near surface portions of the magnetite units. Mt Bevan Iron Ore Project
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Excellent potential for the project to contain very large tonnages of high grade, impurity free magnetite with potentially low strip ratios.
On present knowledge, we consider the project area to hold an exploration target for magnetite mineralisation in the order of 1 – 1.5 billion tonnes grading between 30 – 40% Fe*
Shallow hematite DSO ore is present, and could provide an early cash flow as at the Koolanooka iron ore mine east of Geraldton operated by Sinosteel Midwest.
* The exploration target should be considered in line with clause 18 of the JORC code. The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource. Mt Bevan Iron Ore Project
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FROM MINE TO SMELTER
WATER SUPPLY Potable water is required for magnetite processing. One option is to use dry extraction, and/or to produce a concentrate that can be finally processed overseas (China).
POWER Potential sources for power include the Goldfields Gas Pipeline that runs from the WA Pilbara coast south to Kambalda. This supplies many mining operations in the Goldfields.
TRANSPORT A rail link to Menzies is the most favoured method at present. There is a rail line through Menzies south to the major port of Esperance.
PORT This is largest port in the southern hemisphere and is the major export port for WA nickel concentrates, and a major port for iron ore – iron ore exports account for 70% of the throughput. Mt Bevan Iron Ore Project
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Potential Transportation Scenario Esperance Port Facilities Mt Bevan Iron Ore Project
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Initial 5000m RC drilling programmed for early 2011. Flora survey completed, awaiting final government approval
Drilling to test to depths of approx. 200m over a 5km strike
Program objective to provide an initial JORC compliant resource for this part of the project area. Pilbara Iron Ore and Manganese
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Projects are close to significant iron ore and manganese resources
Both projects located within 60km of existing railway infrastructure
Significant mineralisation already defined in both project areas – drilling targets identified
Most areas now have government approval for drilling. Robertson Range Project
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Exploration licences in the eastern Pilbara region, covering an area of 800km2. The 2 major licences granted recently.
FerrAus Ltd and Atlas Iron Ltd have defined approximately 460Mt of high grade hematite iron ore in adjoining ground. (e.g. FerrAus: 454Mt at circa 59% Fe*)
* JORC resource and reserve FerrAus Ltd November 2010 Robertson Range Project
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*FerrAus November 2010
Legacy Regional Ground Position Robertson Range Project
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High resolution satellite imagery has identified:
fourteen iron ore targets
four manganese targets
four fault controlled alteration targets
Reconnaissance sampling has returned results to 55.7% Fe
Reconnaissance RC drilling planned over Jim Jim targets
Satellite Image of tenement E45/3395, Iron Ore targets in magenta, Manganese targets in red/white, Fault-controlled alteration targets in blue/white Robertson Range Project
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Jim Jim 1 Base of hill showing iron Jim Jim 3 Outcropping hematite rich iron mineralisation scree and local dune cover mineralisation Robertson Range Project
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Magnetic anomalies in the northeast sector of E45/3395, potentially representing extensive Channel Iron Deposit (CID) mineralisation.
Magnetic features extend for at least 7km, in a southwest to northeast direction
If CIDs, these are likely to extend much further to the southwest - the potential source area being the eastern part of the Hamersley Basin.
Aeromagnetics image of E45/3395 showing magnetic anomalies potentially representing CID mineralisation Robertson Range Project
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NE area overlain by widespread alluvial and dune cover.
Reconnaissance Aircore drilling program recently completed
Northeast sector of CID target area on E45/3395. Alluvium and sand dune covered terrain Robertson Range Project
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Transported ferruginous deposits intersected up to 5m thick and 200m width.
Iron assays to 42%, most in range 25 – 35% Fe.
Further drilling and beneficiation assessment recommended
Air core drilling of CID targets in NE sector Robertson Range - Manganese
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Location of manganese tenements – E46/818
Local Geology Robertson Range - Manganese
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Legacy ground close along strike from Nicholson Downs manganese mine (previously known as Balfour Downs deposit)
Nicholson Downs has expected mine life of 10 years with target of 600,000 tpa of lump ore
High grade ore, low contaminants
Trucked by road to Port Hedland
Recently commissioned Nicholson Downs manganese mine – 30 km to north along strike from Legacy tenement Robertson Range - Manganese
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E46/818 is underlain by rocks of the Bangemall Basin - Manganese Subgroup.
The Manganese Subgroup is an important suite of dominantly shales and dolomites which hosts several major manganese mines to the north (Nicholson Downs, and Woodie Woodie).
Manganiferous shales of the Balfour Formation, host to manganese mineralisation in the district Robertson Range - Manganese
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E46/818 FIRST EXPLORATION JULY 2010
Early exploration shows very thin alluvium over sequence containing manganese mineralisation.
370 square kilometres of untested, highly prospective ground
Manganiferous shales under very shallow alluvium Robertson Range - Manganese
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E46/818 FIRST EXPLORATION JULY 2010
Geological mapping and regolith geochemistry in 2011.
Airborne EM survey planned, followed by RC drilling of significant EM conductors
Narmana Prospect – large low hill with outcropping manganiferous shales and cherts – prime exploration sequence Pilbara Iron Ore and Manganese
IRON ORE LIMITED 32 Hamersley Project
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Located within 60km of regional railway infrastructure
Two granted exploration licences, 50km west of Tom Price and covering an area of 52.3km2
Surrounds part of the Beasley River Channel Iron Deposit (“CID”) ~ 400Mt at 56.6% Fe*
* This resource is not on the Legacy tenements Hamersley Project
IRON ORE LIMITED 34 Hamersley Project
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Quickbird Satellite Imagery showing „high iron‟ targets in purple, central Beasley River CID deposit and Beasley River East Prospect on an eastern tributary to Beasley River Hamersley Project
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First helicopter reconnaissance discovers high grade CID mineralisation at Beasley River East prospect. Hamersley Project
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Beasley River East prospect (view to south) Hamersley Iron Beasley River CID to far right Hamersley Project
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Beasley River East prospect – CID mineralisation Hamersley Project
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15 samples average over outcropping 300m strike length: 54.7% Fe or 61.1% CaFe Low silica-alumina and phosphorus
Potential for further mineralisation along tributary channel, and at other CID target areas.
RC drilling planned to determine thickness and extensions. Gold Projects
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Legacy has two key regions of interest within the gold portfolio: the South Laverton and East Kimberley regions
Mineral Resource inventory of 90,900oz
Both projects in mineralised corridors with a long history of discovery and production.
Full suite of prospects containing early stage structural targets, RAB and soil anomaly defined positions and open bed- rock intersections. South Laverton
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Located 120km to 180km north- east of Kalgoorlie
In the Norseman-Wiluna greenstone belt, Eastern Goldfields of Western Australia South Laverton
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The extensive project area contains numerous major gold resources and mines including Granny Smith, Wallaby, Sunrise Dam, Carosue Dam, Porphyry, Safari and Red October
Past exploration fragmented, hindered by cover, deep weathering etc
The Project contains three open pit gold resources of 90,900oz at Golden Rainbow, Bull Terrier and Kangaroo Bore.
South Laverton Project tenements on regional geology, showing major mines South Laverton - Mount Celia
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Mount Celia Along strike to south of world class Sunrise Dam and Wallaby gold mines (8 Moz gold each) South Laverton - Mount Celia
IRON ORE LIMITED 44 South Laverton - Mount Celia
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Mount Celia The two key prospects:
Kangaroo Bore (46,000oz Indicated Resource) and
Blue Peter lightly tested, extensive historic workings
Kangaroo Bore historic gold workings – view along strike South Laverton - Mount Celia
IRON ORE LIMITED 46 South Laverton - Mount Celia
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Above: Blue Peter historic gold workings – view along part of 2km strike South Laverton - Mount Celia
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Blue Peter
Focus by previous explorers on Kangaroo Bore – extensive Blue Peter system only lightly drill tested.
Several sub parallel lines of workings plus extensive dryblowings – point to large bulk tonnage potential.
Sparse drilling had several excellent intersections including 2 holes intersecting 5 g/t gold over 5 metres.
Priority is RC drilling program over whole Blue Peter – Coronation system.
First Legacy RC drilling program completed in August 2010 (1790m – 35 holes). South Laverton - Mount Celia
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Blue Peter Excellent first pass drilling results include:
DRILLHOLE FROM – TO INTERSECTIONS BPC 01 28-31m 3m @ 21.71 g/t gold including 1m @ 62.75 g/t gold BPC 011 56-60m 4m @ 12.11 g/t gold including 2m @ 19.67 g/t gold BPC 010 33-38m 5m @ 8.26 g/t gold BPC 026 25-28m 3m @ 11.1 g/t gold BPC 027 47-49m 2m @ 17.12 g/t gold BPC 029 47-51m 4m @ 7.01 g/t gold BPC 002 23-30m 7m @ 3.46 g/t gold South Laverton - Mount Celia
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Blue Peter
Significant gold mineralisation in four zones along shear system
Combined strike length of 740m South Laverton - Mount Celia
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Blue Peter
Good widths/grade
Visible coarse gold
All zones open at depth, and in most cases along strike South Laverton - Mount Celia
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Blue Peter
A second RC drilling program just completed
Total of 3100m, 50 drill holes.
Objective to test/extend gold zones along strike and at depth
Drilling should enable JORC resource to be calculated for most of the zones. South Laverton
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Stophanis Well
Highly prospective structural position
Historic gold workings – with recent Patricia open cut gold mine
South Laverton Project tenements on regional geology, showing major mines South Laverton
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Stophanis Well
Nine priority gold in soil anomalies
To date, reconnaissance RAB drilling has been completed over 4 of the anomalies.
Patricia North is best gold prospect to date
Tenements over geology and grey-scale aeromagnetics South Laverton - Stophanis Well
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Patricia gold mine (abandoned) view to south South Laverton - Stophanis Well
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Stophanis Well
Recent drilling successful in defining a northerly extension of the Patricia gold mine into Legacy ground
3 mineralised zones outlined by RAB drilling to date
Western zone: gold anomalism over 800m strike
Best intersection: SWR 150 8m @ 2.72 g/t gold (including 4m @ 3.77 g/t gold)
Excellent early results
Follow up RC drilling planned Patricia North reconnaissance RAB results – gold mineralised corridor East Kimberley Project
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7 recently granted exploration licences in the East Kimberley
Located 347km south of Kununurra and covering an area of 370km2
Highly prospective for gold and base metal mineralisation
Three key projects:
Ruby Plains - gold
Koongie Park – base metals
Antrim Plateau – basemetals and manganese Koongie Park Project
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Located 25km southwest of Halls Creek and adjacent to Anglo Australian Resources‟ (AAR) Koongie Park major base metal deposit
AAR‟s Koongie Park deposit is a Volcanogenic Hosted Massive Sulphide Deposit (VHMS) – Sandfire‟s Doolgunna discovery, and Jabiru‟s Jaguar and Bentley discoveries are VHMS deposits
Koongie Park Project – astride Northern Highway Koongie Park Project
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AAR‟s Koongie Park in feasibility stage.
Current Resource of 4.46 million tonnes at 3.2% zinc, 0.9% lead, 0.8% copper, 26 g/t silver and 0.31g/t gold.
Main base metal deposits at Onedin and Sandiego
Recent drilling at Sandiego hit high grade Cu – Zn mineralisation e.g. 71m@ 5.04% Cu, 7.7% Zn, 68 g/t Ag and 0.43 g/t Au. Recent drilling at Sandiego Deposit – AAR‟s Koongie Park Project Koongie Park Project
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Legacy ground has southern extensions of mineralised host stratigraphy plus lightly explored prospects e.g. Earth Dam
Full analysis of past exploration data underway
Geochemical and ground EM planned
Geophysical techniques much improved since early exploration (example of Jabiru Metals Ltd‟s Jaguar/Bentley discovery)
Total Magnetic Intensity Image – showing prospective stratigraphy into Legacy ground Legacy – A Snapshot
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Well funded and managed WA explorer
Highly prospective iron ore, manganese, base metal and gold projects – most discovered this year
All projects close to infrastructure
Several projects at drill ready stage to define reserves
Strong potential to develop to mining stage in a short time frame
Continued strong interest from strategic partners in all assets 2011 Major Exploration
Objectives IRON ORE LIMITED 62
Mt Bevan Iron Ore – successive major drill campaigns to prove up DSO hematite and magnetite resources
Robertson Range and Hamersley Iron Ore – drill test iron ore discoveries at Jim Jim, and Beasley River East
Robertson Range Manganese – EM survey and drill test targets. Potential for early stage mine
Laverton South – Successive drilling to increase resource at Mt Celia, and drill test Patricia North gold target
Koongie Park base metal – first exploration and drilling. Supporting Statement
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Legacy Iron Ore Limited 2010 Legacy Iron Ore Limited does not make any representations or warranties of any kind, whether expressed or implied, regarding this presentation, including without limitation, any warranty regarding the accuracy, reliability and completeness, merchantability or fitness for a particular purpose of information contained in this presentation. This presentation may contain prospective and speculative information concerning, amongst other things, Legacy‟s plans, operations, financial and economic forecasts and projections. This information involves uncertainties and unknown risks and may differ significantly from the actual results. The Exploration information in this report is based on information compiled by Stephen Shelton who is a member of The Australasian Institute of Geoscientists and a full time employee of Legacy Iron Ore Ltd. Mr Shelton has sufficient experience which 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 Shelton consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears. You should not act and refrain from acting in reliance on this presentation material. This overview of Legacy Iron Ore Ltd does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company‟s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision. The information contained herein is general in nature and does not constitute financial product advice. If necessary, you should seek specific financial advice of your stockbroker prior to making any investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any investor. Hyatt Centre Suite 32, 23 Plain Street, East Perth, WA 6004 Tel: +61 8 9421 2005 Fax: +61 8 9421 2001 Web: www.legacyiron.com.au