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Located 10km southwest of Vallenar in the north of Chile and 40km from the coast, only 500 above
sea level and covering a total project area of 11,217 Ha of mining property
The project evaluation determined an optimal cut-off grade of 30% Fe, which gives 356.2 mm tonnes
of inferred resources with an average grade of 39.07% to be produce by a Sublevel Caving operation.
Preliminary economic assessment completed by NCL Ingeniería y Construcción Ltd. (“NCL”) shows:
Robust economics for the project under different pricing and production scenarios
LOM of 22 year for the underground operation.
Iman project will use a dry magnetite concentration process to produce sinter feed, which is sellable
at premium due to current environmental requirements of China and other countries.
Chile is widely regarded as one of the world’s friendliest mining jurisdictions and provides strategically
competitive shipping route to China relative to the majority of other iron ore development projects
Extensive infrastructure with access to existing roads, rail, power and water
IMAN Iron Ore-Scandium
Underground Project
March, 2018
Investment Highlights
World class magnetite iron ore resource with significant exploration upside
Located in Atacama region of Chile, one of the lowest risk mining jurisdictions globally
Relative cost advantage via direct shipping route to China
Optimized underground mine plan ensures long-term free cash flow generation
Significant presence of scandium represents future upside to underdeveloped market
Resource EstimationProject Location
Imán
Project
Location Copiapó
Vallenar
ARGENTINA
CHILE
Pacific
Ocean
Source: 43-101 resource estimation prepared by SRK Consulting (Oct, 2013)
Iman Project Highlights
Source: Company reports
Inferred (43-101)Inferred - Potential
(Non-43-101)
Cut-off Ore FeT Cut-off Ore FeT
(%) (mmt) (%) (%) (mmt) (%)
44 78.6 51.26 44 8.8 51.15
34 147.7 45.43 34 207.9 43.85
30 244.5 40.1 30 356.2 39.07
26 379.4 35.7 26 513.2 35.66
22 508.2 32.79 22 649.3 33.25
Mining Capex
Development Capex (US$ mm) 557
Port Capex (US$ mm) 150
Owner´s Cost (US$ mm) 10
Total Capex (US$ mm) 717
Annual Throughput (Mtpy) 15
LOM Operating Metrics
Product (type) Fines
LOM Average Annual Production (Mtpy) 7.1
Concentrate Grade (%) 62%
LOM Cash Cost (US$/t) 28,3
Economics
Iron Ore Price: 75 US$/tonne
NPV (US$ mm) 515.9
IRR (%) 15.3%
Payback Period (years) 5
Iron Ore Price: 90 US$/tonne
NPV (US$ mm) 1,050,2
IRR (%) 21.3%
Incentive Price (US$/t) 61
Geology and Exploration
High tonnage Iron-Scandium deposit in the Atacama fault, a mega structure that runs for more than
600 km parallel to the coastline of northern Chile
Magnetite mineralization reflects large magnetic anomaly of roughly 6 km2, similar to other iron
deposits in the region currently in production
Multiple iron-rich layers present that are stacked and dip towards the southwest
Magnetite-rich layers with strike lengths of 500m to 1,000m and extend to depths of more than
1,000m
Current exploration work suggests high Fe grades continue at depth (below 1,000m)
Exploration work to-date includes 13,582m of drilling commissioned by Mineria Iman and 5,771m
completed by previous operator
High Grade Ore Zones(Section View)
Magnetic Anomaly(Plant View)
Preliminary Economic Model
1. PEA resources and 2017 internal cost estimation for a long-term iron ore price forecast of US$ 75 / tonne (62% Concentrate) with premium
2. From start of production
3. PEA resources and 2017 internal cost estimation for a long-term iron ore price forecast of US$ 90 / tonne (62% Concentrate) with premium
4. Price to reach 8% IRR
8%
(1)
(2)
8%
(3)
(4)
>
0
-500
-1,000
Surface
N
Infrastructure and Supplies
Vallenar
Freirina
Huasco Port
Punta Alcalde
Peñablanca
Pacific
Ocean
Iman Project
C-46
C-46
5
Substation
Maitencillo
Substation
Pellet 5
C H I L E
0 5
kilometres
2.5
Proposed Water Pipeline
Port
Proposed Port
City
Mining Property - Infrastructure
Road
Railroad
Shipping Shipping 40km to port provided via Ferronor railway adjacent to the Iman Project property
Ports Feasible port alternatives include potential development at Punta Alcalde and Peñablanca, or use of existing
Huasco Port operated by CAP
Water Project considers dry process, mine water enough for requirements
Power Existing nearby substations with readily available and sufficient power and lines that run adjacent to the
northeast boundary of the Iman Project
Labour Nearby mining towns of Vallenar, Freirina and Huasco, gives capacity to support development due to
existing labour market with the required operating skills
Labrador Trough
Miles Shipped 15,000
Est. Shipping Costs 25 $/T
Chile
Miles Shipped 11,500
Est. Shipping Costs 18 $/T
Brazil
Miles Shipped 13,200
Est. Shipping Costs 22 $/T
West Africa
Miles Shipped 12,600
Est. Shipping Costs $20 $/T
Australia
Miles Shipped 4,500
Est. Shipping Costs 11 $/T
Lower Shipping Cost to China
Scandium
World biggest Scandium Resource (NI 43-101), within the Iron resources
The Scandium is a very important additive in aluminum production, enhancing its characteristics
Global production of 10-12 tonnes per year concentrated in Russia/Eastern Europe and China
Severe supply / demand imbalance, with significant unfulfilled demand from variety of potential clients
Total inferred resource of 503 mm tonnes at a grade of 83 g/t Sc following separation from iron ore
Can be developed as stand-alone operation by a third party or internally with incremental processing
costs
Iman
The resources shown before just includes what the drill holes reaches, but it is open in depth with
good perspectives to increase size of the deposit.
Upside (not included in the PEA)
Source: Company reports
Ignacio del Rio
CEO Minería Activa
+56 2 2964 2000
Ricardo de la Fuente
Analyst
+56 2 2964 3475
Contact Information
Additional confidential information concerning Iman Project is available to qualified parties who execute and deliver a confidentiality agreement to Minería Activa in the required form.
All inquiries or communications, including any requests for additional information, should be directed to one of the following individuals at Minería Activa.
Item Task US$Year 1 Year 2 Year 3
1 2 3 4 5 6 7 8 9 10 11 12
Drilling $ 9.800.000
Feasibility StudyMine Plan, Environmental Studies,
Port Engineering & Concession.$ 4.175.000
Permitting Property Rights & Access Ramp $ 1.100.000
Access Ramp
Development$ 12.300.000
Scandium Studies Market & Metallurgic Test $ 200.000
Total Investment $ 27.575.000
Next Steps
Mineria Iman is interested in moving forward to feasibility as an underground project, the plan for that
would require ~ US$ 28 mm:
Lower environmental impact can make permitting easier
Dry process plant and no stripping ratio implies a much more manageable Capex
Drilling shows an increase of the grade at depth
Early access ramp development will shorten time to production in ~1.5 years
