Iron Mountain Project Iron County, Utah PIGS CAN FLY - PowerPoint PPT Presentation

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Iron Mountain Project Iron County, Utah PIGS CAN FLY

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Iron Mountain Project Iron County, Utah PIGS CAN FLY – PowerPoint PPT presentation

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Title: Iron Mountain Project Iron County, Utah PIGS CAN FLY


1
Iron Mountain ProjectIron County,
UtahPIGS CAN FLY
  • Presented
  • by
  • Donald G. Foot Jr.
  • President and CEO
  • Palladon Ventures, Ltd.
  • Palladon Iron Corporation

2
A Brief History
  • Purchased the Mine from Bankruptcy in 2005
  • Historic Resource that Dates Back to 1852
  • Operated by Columbia Mining, US Steel, USX and
    Most Recently Geneva Steel
  • Purchase price was 10M
  • 6000 Acres of Property and 2100 Acre Feet of
    Water Rights

3
Comstock/Mountain Lion Pit
4
The Other Pits
5
What We Really Got
  • A Historic Iron Ore Mine
  • Facilities that had to be Demolished
  • Historic Drilling Records that were not 43-101
    Compliant
  • A 50 Hedge-Fund Partner
  • Challenge To Put the Mine into Production Rapidly

6
What We Didnt Get
  • Iron Ore Sales Contract
  • A Port to Ship the Ore From
  • A Rail Contract
  • Capital to Move Quickly
  • An Ounce of Credibility

7
The Other Hurdles
  • We Were Told We Would
  • Never Get an Iron Ore Sales Agreement
  • Never find a Port to Handle Our Material
  • Never get the Union Pacific to Work with Us
  • Never Get Back into Production

8
Catch-22
  • We Have a Joint Venture Partner who Wants
    Everything in Place Before Providing Funding
  • Port and Railroad Are Concerned About the
    Long-Term Viability of Both the Mine and the
    Company to Move the Project Forward
  • We had to Service Debt and Make Payroll

9
Building Credibility with the Union Pacific
  • Listen to Them
  • Meet Regularly in Omaha
  • Keep Them Informed
  • Do What They Ask
  • It Doesnt Hurt to Build Two 1-Mile Interchange
    Tracks

10
Building Credibility with the Port
  • Listen to Them
  • Understand Their Operation
  • Understand the Regulations and Constraints
  • Keep the Project Moving
  • Communicate
  • Get the UP to Allow you to go There
  • Sign a Nice Contract with a Buyer

11
Building Credibility with the Buyer
  • Visits to the Site
  • Keep the Project Moving
  • Be Honest
  • Patience is a Virtue
  • Remember The End is Never the End
  • Be Very Cautious

12
Building Credibility with the JV Partner
  • IMPOSSIBLE!!!!

13
So What Do You Do With Them?
  • BUY THEM OUT FOR 65M

14
Key Milestones
  • April 10, 2005 Closed on Mine Purchase
  • April 1, 2008 Signed 5-year Sales Agreement
    with China Kingdom International
  • June 25, 2008 Bought Out JV Partner

15
Iron Sales Agreement
  • China Kingdom Minerals Metals with Offices in
    China and Australia
  • 5 year contract
  • Run-of-Mine Ore (55) to Start and then Build
    Processing Plant to Move to Concentrate
  • Start at 2M tpy and Increase to 4M tpy Based on
    Rail Availability

16
What It Looked Like When We Bought It
17
Progress At The Mine
18
Substation
19
New Stacker
20
New Crusher
21
Shortline Tracks
22
Railcars
23
Tipple
24
Schedule
  • Complete Port Logistics
  • Receive Temporary Railcars August 16th
  • Start Moving Ore to Port September
  • First Ship to China - October

25
Impact on the State of Utah
  • Rural Development Away from the Wasatch Front
  • Bring Iron Back to Iron County
  • Satellite Industry Development
  • Net Exporter - Improves Balance of Trade
  • One of the Largest Shippers in the West
  • One of the Largest Exporters at the Port of Long
    Beach

26
What Has This Taught Us
  • Believe In Yourself, Your Team, Your Company
  • Dont Take No for an Answer
  • It Doesnt Matter How Small You Are You Can
    Achieve Big Goals
  • Never Give Up
  • Yes, Pigs Can Fly
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