xx990CRN3036_SDL_Sundance_Resources_AnnReport2015_TEXT_V8 - Copy.indd
ANNUAL REPORT
2015
Corporate Directory
Directors: Wal King
(Independent Chairman and Non-Executive Director)
Giulio Casello
(Managing Director & Chief Executive Officer)
Barry Eldridge
(Independent Non-Executive Director)
Andrew (Robin) Marshall
(Independent Non-Executive Director)
David Southam
(Independent Non-Executive Director)
Oleg Sheyko
(Non-Executive Director)
Company Secretary: Alan Rule
ABN: 19 055 719 394
Registered Office: Level 3, 24 Outram Street,
West Perth WA 6005
Head Office: Level 3, 24 Outram Street, West Perth, WA 6005
T: +61 (8) 9220 2300
F: +61 (8) 9220 2309
Internet: http://www.sundanceresources.com.au
Auditors: Deloitte Touche Tohmatsu
Level 14, Woodside Plaza,
240 St George's Terrace, Perth WA 6000
PO Box A46
Perth WA 6837
T: +61 (8) 9365 7000
F: +61 (8) 9365 7001
Share Registry: Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace, Perth WA 6000
GPO Box D182
Perth, WA 6840
T: +61 1300 850 505 (within Australia)
+61 (3) 9415 4000 (outside Australia)
F: +61 (8) 9323 2033
About Sundance and the Mbalam-Nabeba Project
The development of the Mbalam-Nabeba Iron Ore project by Sundance Resources Limited ('Sundance' or 'Company) is at the heart of an emerging world class iron ore project based on a cluster of high grade Hematite and Itabirite iron ore deposits that straddle the border between the Republic of Cameroon and the republic of Congo in Central Africa.
The Mbalam-Nabeba Iron Ore Project:
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Consists of the Mbarga and Nabeba iron ore mines, processing plants and associated infrastructure
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Will produce at least 40Mtpa from the two mines for 30+ years in two stages:
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Will utilise:
The infrastructure in Cameroon will be funded by the Government of Cameroon and be jointly owned by Cam Iron (2%) and the Government of Cameroon (98%).
Douala
Yaoundé
Cameroon
Central African Republic
PortTransport
Corridor
Lolabe
Equatorial
Nkout
Avima
Mines
Mbarga Nabeba
Republic
Guinea
Gabon
Badondo
Belinga
of Congo
SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2015 1
Overview of Operations
Transition Agreement: Following extensive consultation with the Cameroon Government prior to and after Cameroon's Prime Minister, Philemon Yang's visit with China's Prime Minister Li Keqiang in China, a Transition Agreement was developed between Cam Iron and the Cameroon Government setting out the key steps, terms, conditions, rights and obligations by which the parties will restructure the Project.
The Cameroon Government will build, own and fund the mineral terminal and rail infrastructure for the Mbalam-Nabeba Project leaving Sundance to focus on funding, constructing and operating the mines. The Transition Agreement was signed on
30 June 2015 in Yaoundé, Cameroon and came into effect on 7 July 2015 when all conditions precedent were satisfied.
Assisting the Cameroon Government: Substantial work has also been undertaken throughout the second and third quarters of 2015 to assist the Cameroon Government in running a tender process to appoint a suitably qualified Chinese EPC contractor to build the mineral terminal and railway. Tenders were received July 2015 with a preferred tenderer being selected in September. Detailed contract negotiations are underway at the time of this annual report publication.
Increased Capacity: A new pit to port dynamic simulation model confirmed that the Project name plate capacity can be increased from 35Mtpa to 40Mtpa with the addition of one extra railway passing loop and a simple reconfiguration of the railway 'tail end' adjacent to the car dumper at the mineral terminal.
Increased reserves and resources: Sundance reviewed and upgraded both the high grade hematite and itabirite mineral resources contained within the
Mbalam deposits in Cameroon and the Nabeba deposits in the Republic of Congo. The Mbalam-Nabeba Project total high grade hematite mineral resources have increased to 805.7 Million tonnes ('Mt') at an Iron grade of 57.3% and the total itabirite hematite mineral resources have increased to 5.6 Billion tonnes ('Bt') at an Iron grade of 33.4%. The increases of the Mineral Resources are as a result of the refinement and finalisation of the geological interpretation and relaxation of chemistry 'cut-off' restraints for itabirite reporting.
Sundance also reviewed and upgraded the high grade ore reserves. The Mbalam-Nabeba Project total high grade hematite ore reserves have increased to
517Mt at an Iron grade of 62.2% with low impurities with Silica at 4.46%, Alumina at 2.80% and Phosphorus at 0.09%. The increases of ore reserves are a result of the increased high grade hematite mineral resources, introduction of 'wet plants' in year 1 of operations for processing of lower grade ores and maximising the blending of DSO with lower grade ores over the full Life of Mine for Stage 1.
Mineral resource and ore reserve estimates for the Project have been classified and reported in accordance with the JORC Code 2012 Edition.
Costs updated: The mining, processing and project implementation sections of the DFS and the DFS capital and operating cost estimates have been updated to reflect the new mining schedule and the increase in system throughput to 40Mtpa. These updates have demonstrated a reduction in the operating costs of the Project.
DUP Project: The main site activities during the year has been the implementation of the Railway Déclaration of Utility Publique (DUP). The DUP was declared in 2011 and in November 2014 Sundance, in collaboration with the Government
of Cameroon, embarked on a program of field works to implement the DUP. The program of works includes public consultations, cadastral surveys to physically demarcate the railway corridor on the ground; and the preparation of an inventory of populations, properties and cultural and heritage sites that may be affected by the works. The process is being undertaken in accordance with international standards including the Equator Principles III and the International Finance Corporation Performance Standards.
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