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TIGER RESOURCES LIMITED October 2012 Brad Marwood, Managing Director
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Forward Looking Statements
This presentation contains forward looking information, which is based on assumptions and judgments of management regarding future
events and results. Such forward looking information, including but not limited to information with respect to the potential expansion of
resources at Kipoi, production and expected recoveries from the Stage 1 mining, HMS and spiral system operation, and development of
a Stage 2 SX-EW plant at Kipoi, involves known and unknown risks, uncertainties, and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any anticipated future results, performance or
achievements expressed or implied by such forward looking information. Such factors include, among others, the actual market prices
of copper and cobalt, the actual results of current exploration, the availability of equity and debt financing, the volatility currently being
experienced in global financial markets, the actual results of future mining, processing and development activities, changes in project
parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's filings, is available under the
Company’s profile on SEDAR at www.sedar.com.
Competent Person Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled
by Mr. Brad Marwood, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Marwood is a Director and full-time
employee of the Company. Mr Marwood has sufficient experience which is relevant to the style of mineralisation and type of deposits
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 Marwood consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
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Disclaimer
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Corporate Snapshot
Corporate Snapshot
ASX / TSX Code TGS
Shares on Issue 673.5 million
Share Price A$0.36
Market Capitalisation A$239 million
Options / Performance Rights on Issue 43 million (Exp. Dec 12 – May 15)
Cash, Receivables & Conc. Inventory (30-Sep-12) US$36.7 million
Debt (Trafigura facility) US$9.0 million
Major Shareholders Undiluted Fully Diluted
Contango 6% 6%
Macquarie Bank 5% 5%
JP Morgan 4% 4%
Fidelity Group 3% 3%
Acorn Capital 3% 3%
Directors 1% 2%
ASX Share Price Performance
Board of Directors
Neil Fearis Non Executive Chairman
Brad Marwood Managing Director
Rhett Brans Non Executive Director
David Constable Non Executive Director
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Volume('000)
Share Price
Major Projects Equity
Kipoi Copper / Cobalt, DRC (Mining Rights) 60%
Lupoto Copper, DRC (Prospecting Rights) 100%
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Democratic Republic of Congo (DRC)
First democratically elected Government in 2007
Joseph Kabila re-elected President in November 2011
Stable government following recent Presidential elections
Multilateral presence – UN, World Bank and IMF.
Mining reviews completed in 2009.
OHADA legal system.
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Source: CIBC Global Mining Group May 2011
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Katanga Copper Belt – Key Deposits
M&A activity within last 4 years Kipoi Project location
1 Kamoa - Ivanplats
2 KOV Complex - Katanga
3 Kulu – MMG
4 Kolwezi Tailings – ENRC
5 Kalukundi – Africo
6 Tenke Fungurume – Freeport/Lundin
7 Mukondo – ENRC
8 Shituru – Shanghai Pengxin
9 Dikulushi & Kapulo – Mawson West
10 Kipoi – Tiger
11 Kinsevere – MMG
12 Kalumines – ARM/Vale
13 Ruashi & Etoile – Jinchuan
14 Sentinel – FQM
15 Lumwana – Barrick Gold
16 Kansanshi – FQM
17 Mutoshi & Kinsenda – Jinchuan
18 Konkola North – ARM/Vale
19 Nama – Caledonia
20 KCM – Vedanta
21 Nchanga – KCM
22 Chambishi – ENRC
23 Mufulira – Mopani
24 Nkana – Mopani
25 Frontier – ENRC
26 Chibuluma – Jinchuan
27 Baluba – Luanshya Copper Mines plc
28 Luanshya – CNMC
29 Lonshi – FQM
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Tiger Strategy
STRATEGY
1 Kipoi Stage 1 – low capital, high margin 35ktpa Cu HMS Plant – IN PRODUCTION
2 Kipoi Stage 2 – 50ktpa Cu SX-EW – DFS DUE Q4 2012
3 Phased Stage 2 development – funded through Stage 1 free cash flow
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Resources Estimate
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Historic Timetable to Production
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Kipoi Stage 1 – HMS Ramp Up
HMS plant consistently exceeding nameplate production of 35,000tpa.
Record production of 3,853t in June, production in excess of 3,000t from March 2012 onwards
Concentrate grade exceeding target of 25% Cu.
Export sales commenced in June 2012
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Copper (t) Ore Processed (t)
Ore Processed Cu Produced Nameplate
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Self-funded Growth Profile
1. Stage 2 SX-EW operating and capital costs are based on management forecasts and subject to a DFS 2. Free cashflow excludes interest and tax payments 3. Forecast cash operating cost (US$/lb) includes mining, processing and G&A, and excludes royalties/copper cathode selling
costs
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Kipoi Stage 2 DFS
KIPOI STAGE 2 SX-EW DFS UPDATE
Development proposed to commence Q4 2012
Acid consumption confirmed bottom 25%, LOM average 12.9kt/t ore
Total copper recovery increased from 82.5% to 88%
Operating costs forecast less than $1.00/lb, start-up less than $0.70/lb (no mining)
SX-EW Phase 1 capital cost $154 million, LOM capital cost less than $400m
Mine life in excess of 9 years
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SX-EW Flowsheet
$154m
$70m
$93m
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Kipoi Capex Schedule
Stage Capex Status
HMS Plant – 35ktpa in concentrate $34m In production
SXEW Phase 1 – 25ktpa HL $154m Commence Q4 2012 In production Q2 2014
SXEW Phase 2 – 50ktpa HL $70m Commence Q3 2014 In production Q2 2015
SXEW Phase 3 – Tank leach $93m Commence Q4 2014 In production Q1 2016
Sustaining capex $49m LOM
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Kipoi Mining Licence (55km2)
12km main structure in Blue Flagship Kipoi Project extremely well positioned on the Katanga Copper Belt, DRC.
Stage 1 mining focused on the higher grade reserve at Kipoi Central producing 35ktpa Cu until 2014.
Stage 2 SX-EW operation to source ore from Kipoi Central, Kipoi North and Kileba to produce 50ktpa Cu, DFS due late 2012.
Resource of 49.0Mt at 1.7% Cu for 834kt contained Cu (mining depleted)
Reserve of 2.7Mt at 7.0% Cu for 188kt contained Cu.
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2012 Exploration Program
$13m exploration budget
4 diamond and 1 RC rigs on site
Priority 1 & 2 resource upgrade programmes completed at Kipoi Central, Kipoi North and Kileba
Kipoi Central and Kileba resource extension drill programmes completed in 3Q 2012
Judeira, Kaminafitwe and Sase South drilling programmes completed in 3Q 2012
Sase Central resource upgrade programme commenced in 3Q 2012
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World Class Exploration Potential
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Kipoi Central Structural Understanding
TIL SLT DOL
SLT COZ DOL
SLT SLT DOL
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Judeira South
Judeira South Cross Section Judeira South Collar Plan
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Located 10km south of Kipoi and accessed via a direct road.
2012 drilling program focusing on Sase South and Sase Central with 3,000m of RC and 2,000m of DD
Mwana, Mwana East and Kapampala are primary ore targets.
Sase South oxide and primary ore target.
Resource of 14.7Mt at 1.4% Cu for 200kt contained Cu.
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Lupoto Prospecting Licence (140km2)
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Tiger to acquire a 19.9% interest
1 representative on the board
Joint technical committee
First right to acquire assets, subject to maintaining 19.9% interest
Shikila and Kabwima projects strategically located in the Zambian Copperbelt
Within 200km radius of Tiger’s exploration base at Lubumbashi
Mwongo project is 5km from the recent Blackthorn Resources discovery at Kitumba (187Mt at 1.14% Cu)
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Chrysalis Strategic Alliance (ASX: CYS)
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Ongoing news flow
Q4 2012 Exploration results for 83 DD and 30 RC holes for 14,248m
Q4 2012 Stage 2 DFS
Q4 2012 Board approval to proceed with Stage 2, Phase 1 25ktpa HL-SXEW
Ongoing Production reports from HMS operations
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Recent M&A featuring African focussed copper producers has highlighted the compelling valuation proposition of Tiger Resources: Current +A$800m bid for Botswana copper producer and ASX-listed
Discovery Metals by Cathay Fortune and CAD Fund.
Completed US$1.4b takeover of DRC copper producer and JSE-listed Metorex by Jinchuan in Dec ‘11.
Completed US$1.3b takeover of DRC copper producer and TSX/ASX-listed Anvil Mining by MMG in Feb ’12.
Completed C$7.3b takeover of Zambia copper producer and ASX-listed Equinox Minerals by Barrick Gold in April ‘11.
African Copper Transactions
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Peer Chart
Nb: 1. Size of bubbles represents contained copper resource 2. Stage 2b production dependent upon exploration success 3. Per Stage 1 HMS DFS payability will be 42% 4. Stage 1 HMS C1 cost is exclusive of payability factor Source: Foster Stockbroking
OZL – OZ Minerals TGS – Tiger Resources PNA – PanAust SFR – Sandfire Resources RXM – Rex Minerals
DML– Discovery Metals FND – Finders Resources AOH – Altona Mining HGO – Hillgrove Resources MMG – Minmetals, previously Anvil Mining SRQ – Straits Resources
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Forecast C1 Cash Costs (US$/lb)
OZL
PNARXM
MMG(Kinsevere)
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TGSSt 2 (HL)
TGSSt 1 (HMS)
SRQHGOFND
TGSSt 2 (SXEW)
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Corporate Responsibility
RIMHOP – Women & Children Health initiative, ECU programme
Hospital fit out assisted by NGO’s
Two Schools, power, internet, university supported programmes
Commercial farming lots 500Ha staples for 5,000 people
Co-ordinated focus with community, elders and leaders
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Further Information
Brad Marwood
Managing Director
Tel: (+61 8) 6188 2000
Email: [email protected]
Stephen Hills
Chief Financial Officer
Tel: (+61 8) 6188 2000
Email: [email protected]
Nathan Ryan
Investor Relations
Tel: (+61 0)420 582 887
Email: [email protected]
Company website: www.tigerresources.com.au
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Kipoi resources represent 847kt of contained Cu (depleted to 31 March 2012)
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Appendix 1: Detailed Kipoi Resource
Kipoi Resource Type Mt Cu Grade Co Grade Cu (kt) Co (kt)
Kipoi Central Measured 5.4 3.9% 0.1% 211 7.6
Kipoi Central Indicated 20.5 1.6% 0.1% 327 14.5
Kileba Indicated 8.6 1.5% 0.05% 128 4.6
Total Measured and Indicated 34.5 1.9% 0.1% 666 27
Kipoi Central Inferred 7.9 1.0% 0.1% 82 9
Kipoi North Inferred 5.3 1.4% 0.05% 72 3
Kileba Inferred 2.2 1.2% 0.04% 27 1
Total Inferred 15.4 1.2% 0.04% 181 13
Kipoi High Grade Zone (included in Kipoi Central above) Type Mt Cu Grade Co Grade Cu (kt) Co (kt)
Kipoi Central Measured 1.84 7.3% 0.2% 134 3
Kipoi Central Indicated 0.47 5.1% 0.2% 24 1
TOTAL 2.31 6.8% 0.2% 158 4
Notes: 1. Mineral Resource depleted to 31 March 2012 2. Kipoi Central High Grade Zone (Mineral Reserve) depleted to 31 December 2011
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Classification Category Tonnes (mt) Copper (%) Cobalt (%) Copper (000't) Cobalt (000't)
Indicated Oxide 2.1 1.7 0.1 35 2
Transitional 0.6 1.5 0.0 9 0
Fresh 0.4 1.2 0.0 5 0
Total- Indicated 3.1 1.6 0.1 49 2
Inferred Oxide 1.7 1.4 0.1 23 1
Transitional 2.4 1.3 0.0 32 1
Fresh 7.5 1.3 0.0 96 3
Total- Inferred 11.6 1.3 0.0 151 5
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Appendix 2: Detailed Sase Resource
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