Broula Magnetite Mine – Karawara Minerals

Projects

Broula DMS Mine

Overview

Broula is an existing fully-permitted mining operation with a proven production and sales record of over 7 years. It has a JORC resource of 1.13Mt Magnetite and 1.6Mt Limestone with permitted production of up to 170,000t per annum. It has significant infrastructure, skilled labour and is located close to buyers.

Environment and Community

Community Complaints Hotline

Management Plans and Reports

Environmental Monitoring

Broula Mine DMS is estimated to yield material cashflow within 12 months and for years to come.
Our strategy is to use this cashflow to fund portfolio growth and exploration activity.
No need to raise equity to explore, Issued Capital to remain tight and give superior leverage to equity holders.
Regional focus on critical minerals in Central NSW, particularly Lachlan Orogen

Summary

Existing mining operation near Cowra, NSW on ML1616.
High purity magnetite ore to sell as high value DMS for coal washeries.
Permitted production up to 170,000t per annum.
Granted Mining Lease and Development Applications.
JORC resource of 1.13Mt Magnetite and 1.6Mt Limestone.
Significant infrastructure, highway access, skilled labour.
Environmental and access approvals in place, no further native title approvals required.

JORC Resource

The Iron mineralisation at Broula is primarily massive magnetite skarn. Limestone is present and sits nearly immediately adjacent to the magnetite. The Deposit is a WNW striking steeply ENE dipping semi-teardrop lens.

JORC Resource, almost all in M&I category:

1.13Mt Magnetite @ 71.3% iron recovery.
96% in Measured & Indicated category.
Underpins current 19-year mine plan.
1.6Mt Limestone.

Lack of drilling at depth and along strike yields potential to increase resource with further exploration. Mineralisation is open in all directions.

Broula mine in operation (2013)

The existing mine and resource.

Pit dimensions

Broula pit looking NNW

The Broula Mine Project is only 19km from Cowra.

Transport route from Broula Mine to Port Kembla

Transport route from Broula Mine to Ulan Coal

Straightforward Commercialisation

Commodities produced: High purity iron ore DMS (85%) & Aglime (15%).

Stable long-term demand: 300,000t per annum DMS demand on east coast for
DMS used in coal washeries. Formerly satisfied by supply from Tallawang mine which closed in 2016, now NSW imports all requirements from Tasmania and offshore.

Opex: Simple DMS operation yields estimated Opex of $84/t.

Pricing: Normally sold via multi year contracts. DMS price long term consistency.

Proximity to buyers maximises ‘Mine Gate’ price and competitiveness compared to imports:

Gunnedah Basin collieries: 277km.
Port Kembla Steelworks: 376km.

Context

NSW is enjoying a mining renaissance. Metals mining direct spending has doubled in the last 5 years to $2.4bn in the last FY1. New recent project approvals include:

History

The Broula mine first entered production in 2008, producing 255Kt of iron ore and 93Kt of limestone for approximately $30m in revenue.

It closed in 2014 by then-owner Abterra due to internal management issues and market.

Karawara now owns 100% & its subsidiary Australian Magnetite Mines Pty Ltd (AMM) has worked with regulatory bodies & other stakeholders for the last 2 years to recommence production at Broula.

Karawara plans to have it back in production within 6 months of the Karawara IPO.

Broula DMS Mine Products

Magnetite

Magnetite is a critical resource in fuelling clean energy – it can be used to separate contaminants from coal and lithium from rocks.

Aglime

Agricultural Lime or Aglime is used throughout NSW for soil improvement and is in consistent demand.