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Oscar Resources Limited

Iron Ore company utilising breakthrough technology 

Business Highlights

Mt Oscar Iron Ore Project Highlights for Exploration Project 

  • Excellent location, close to the coast and existing and proposed infrastructure and services
  • Tenement E47/1379 with 105 Km2, in the hub of the Pilbara
  • New Processing Technology breakthrough:
    • Elutriated Magnetic Separation (EMS) – has seen successful application in the nearby CITIC’s Sino Iron Project, upgrading 62.5%Fe to +67%Fe, which is likely to be applicable to the Mt Oscar Project
    • Ore Sorting Technology – machine vision and x-ray technology rather than DMS. Proved to be more efficient, disposing of waste while recovering as much of iron ore as possible
  • Large exploration target* >300mt of magnetite resources at 31-37%Fe, haematite also present and possibly with DSO
  • Higher iron ore grade than other nearby magnetite projects
    • Producing iron concentrates >61%Fe with conventional technology
    • Producing iron concentrates >65%Fe potentially with Elutriated Magnetic Separation (EMS), a new technology successfully applied in Australia
  • The company intends to seek an ASX listing in 2023.

New Processing Technologies

1. Elutriated Magnetic Separation (EMS)

EMS technology is especially suitable for dealing with finely disseminated gangue (silicate) magnetite ores and capturing liberated fine magnetite particles, by grinding ores to P60 75µm and/or finer

The EMS equipment size in operation has increased from 600 mm more than ten years ago to 2,200 mm nowadays and has been applied in many magnetite mines to upgrade concentrate grades to 65-67%Fe or replace flotation processes

EMS technology has seen successful application in the nearby CITIC’s Sino Iron Project, upgrading 62.5%Fe to +67%Fe, which is likely to be applicable to the Mt Oscar Project

Merits of Elutriated Magnetic Separation

  • Effective capture of tiny magnetic iron particles of high Fe grades, minimizing losses of high-grade iron particles into tailings
  • Functioning as a flocculator
  • Effective removal of nonmagnetic silica and light intergrowths
  • Effectively replacing the flotation process
  • Functioning as a thicker as the concentration of iron concentrates generated >60%
  • Precisely controlling of Fe grade and silica level of the final iron concentrates
  • The larger size of the separation tank tends to achieve a stable performance
  • Coarsening grinding sizes on the premise of generating satisfied quality iron concentrates, and improving production output

2. Ore Sorting Technology 

Ore Sorting technology introduces a brand new process of waste disposal and pre-concentrating iron ore with three stages of crushing and two stages of waste disposal, to recover both magnetite and haematite.

Based on machine vision and X-ray technology rather than DMS, pre-concentrating iron ore of 30-37%Fe to nearly DSO grade, disposing of a large number of waste rocks, recovering two styles of iron ore as much as possible, and preparing for the next subsequent respective processes to improve the quality and generate marketable products.

This is the first time that such waste disposal and the pre-concentrating process have been proposed in the industry, and it has great economic value and makes it possible for the development of hematite which was previously thought to be disposable. This process is also suitable for other minerals.

Current Project Status – Two-stage drilling programs completed

  1. Average Fe grade at 35.2%. Metallurgical test results – Up to 64.0%Fe with an average of 58.0%Fe, Mass recovery peaked at 87.7% with an average of 42.4%
  2. Average Fe grade 33.6%Fe
  3. 11km strike length perspective for both magnetite and haematite mineralisation

TMI image shaded from the north showing the location of the highly magnetic BIFs of the Main Target and the East Target Unit

Project Location Detail

Project Location
a) 30 km from Karratha town
b) 40 km from existing ports (significant benefit)
c) 20 km from gas pipelines
d) 15 km from the power grid
e) 15 km from water
f) 15 km from sealed road
g) 40 km from Karratha airport

Transaction Overview

Oscar Resources is looking to raise a further ~A$1M at $0.18 cents per share, with a pre-money valuation of ~$51M.

The company intends to seek an ASX listing in 2023.

Capital Structure
Shares on issue 283,570,600
Pre-money valuation $51,042,708
Amount to be raised pre-IPO $1,080,000
The market cap post pre-IPO $52,122,708
Number of shares post IPO 289,570,600

 

 

Use of Funds
Infill drilling $530,000
Metallurgical $150,000
IPO $400,000
Total $1,080,000

 

Company Overview

Oscar Resources is a Sydney-based mineral exploration and mining development company that centres on base and precious metals in the Pilbara, West Australia.

The Company’s current projects are the Mt Oscar Iron Ore Project and the Mt Oscar Gold Project. The Company is holding iron ore assets at Mt Oscar Main tenement E47/1379 and all minerals at Mt Oscar North tenement E47/1378. These two tenements cover a total area of ~163Km2. Both tenements have and/or are close to necessary infrastructure which makes the project more competitive compared with others in the region.

Oscar Resources uses cutting-edge technologies for ore processing, by working with technology and equipment providers to develop the project aimed at reducing mine operating costs and increasing product Fe grades and mass recovery, benefiting their shareholders.

Prime Location in the Hub of the Pilbara

Utilising new technologies

Metallurgical

Pre-IPO Opportunity

Financials

Oscar Resources Annual Report 2021

Scoping Study – MinRizon Projects Pty Ltd

The scoping study has focused on the application of the techniques examined in the earlier trials on the Mt Oscar ore samples and the data obtained from that laboratory test work. The application of new technology, including Elutriated Magnetic Separation (EMS) which is a promising technology to deal with finely disseminated gangue (silicate) magnetite ores and capture liberated fine magnetite particles, is favoured by Oscar Resources and has favourable experience from the recent application at the Citic Pacific operation at Cape Preston, some 120 kilometres southwest of Mt Oscar, may significantly improve the financial outcome of the project.

Base-case Project at 5 Mtpa of product of the concentrate Fe content of 61.6% with a mass recovery of 26.9% previously achieved are as shown below.

Financial Outputs – Life of Mine

IRR 20.72%
5% NPV (5) AU$1,985m
8% NPV (8) AU$1,208m

Team

Dr Edward Lee (BE,ME,Ph.D)

Managing Director & Chief Executive Officer

Guy Robertson (B.Com,CA)

Chief Financial Officer & Company Secretary

Dr Francis Xiao (BE,ME,Ph.D)

Director and Chief Technology Officer

Andrew Stoner (AM,B.Bus,MBA)

Non-Executive Director

Previous member of NSW Parliament

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