Strike Resources Limited

Strike Resources Limited trades on the Australian Securities Exchange (ASX) under ASX Code: SRK.

Strike is an Australian-based mineral development company with a diversified asset portfolio including a thermal coal project in Indonesia, hematite and magnetite iron ore projects in Peru and hematite and minerals sands projects in Australia:

Apurimac Iron Ore Project

Strike has completed a Pre-Feasibility Study (PFS) on its Apurimac Iron Ore Project, which focuses on the development of a 20 million tonnes per annum mining operation with iron ore concentrate transported by slurry pipeline to the coast.  The PFS has confirmed that the Apurimac Iron Ore Project has the potential to become a highly profitable world class iron ore operation, with:

• Average operating costs (OPEX) of approximately US$14.50 per tonne
• Total capital cost (CAPEX) of approximately US$2.3 billion
• High quality product grading +68% Fe, very low in alumina, phosphorous and other impurities

Berau Thermal Coal Project

Strike has completed a Feasibility Study which focussed on the development of an open-cut contract mining operation with production scaling up from 1.5 Mt per annum (Mtpa) to 3Mtpa, with transportation 30kms by road to a new port for barging approximately 90kms down the Segah River to the coast and on to an established coal trans-shipment location approximately 30km offshore.

The study has confirmed that the Berau Project has the potential to generate an annual operating surplus of approximately US$33m, with:

• total capital cost of approximately US$19m;
• average operating costs of approximately US$41 per tonne;
• a projected coal price of approximately US$52 per tonne, FOB ship;
•  a run of mine coal product of medium calorific value of 5,400-5,600 kcal/kg GAR with low sulphur - 0.66%, as received (AR); ash - 7.3%, AR and total moisture - 16.6%, AR;  and
• a development timetable of 8 months from receipt of development approvals to production.
 

JORC Resources and Reserves

1.         Apurimac Iron Ore Project

The resource estimate completed as part of the PFS has provided a significant re-rating of the resource on two Apurimac concessions, from a JORC Inferred Iron Ore Resource of 172 million tonnes at 62.28% Fe to a JORC Indicated Resource of 133.5 million tonnes at 59.40% Fe:

2.         Berau Thermal Coal Project

Strike has recently completed an estimate of the Coal Resource in the Nyapa West block to be 14 million tonnes (Mt), comprising 1.8 MT of Measure Resource, 8.6 Mt of Indicated Resource and 3.6Mt of Inferred Resource.  The Nyapa East block was assessed at 6.8 Mt Inferred Resource.  Coal Resources for both blocks are summarised below:

 Within the Nyapa West block and the above Coal Resources estimates, 7.7 Mt of Open Cut Coal Reserves were estimated in the Probable Reserves JORC category:

 Further details are contained in Strike's market announcement of 30 April 2009 entitled "Berau Coal Resource Upgraded to 20.8 MT"