Company Overview

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Company
Company overview

Indian Pacific Resources

The Company is a public company limited by shares, incorporated in Australia and registered in Victoria under the provisions of the Corporations Act on 6 October 2009, with the name Indian Pacific Resources Limited and ACN 139 847 555. The Company is domiciled in Australia.

The Company is a mining company engaged in the exploration and development of the Bekisopa Project, the Tratramarina Project and the Ambodilafa Project, iron ore projects in Madagascar. In all we hold some 640 km2 of tenements across these three prospective exploration areas, with each project being covered by several separate tenements.  To date only one tenement section at each of the three project areas has been explored and there are numerous prospective tenement areas at each project location that also show distinct anomalies that warrant further exploration evaluation.

The Bekisopa Project is considered by the Directors to be of primary importance as it has the potential for significant high grade lump Direct Ship Ore (DSO).   Further the Bekisopa Project has a historic stated potential resource estimated at greater than 150Mt. This historic resource estimate was calculated by the United Nations Development Project (UNDP) based on their fieldwork and also the work of the French BRGM.  However, the Mineral Resource estimate does not confirm to a Recognised Standard, such as NI 43101 or JORC, and may not be used for economic purposes.  A focussed exploration and drilling work programme has been mapped out for the Bekisopa  project  and this is aimed at updating the geological information and performing deep drilling to determine the extent of the high grade lump ore already identified at surface.  Following this proposed work programs at Bekisopa tenement 10430 IPR then plans to undertake preliminary exploration at Bekisopa Bek C and Bek F as these target anomalies may add significantly to the known 5km iron ore strike length demonstrated at Bekisopa PR 10430.

Key events in the Company's History

Date

Event

October 2009

The Company is incorporated in Australia and registered in Victoria under the provisions of the Corporations Act as a public company limited by shares.

February 2011

Acquisition of 100 per cent of Malagasy Holdings (Tratramarina) Pty Ltd from NGM Resources Limited. Through Malagasy Holdings (Tratramarina) Pty Ltd and its controlled entities, IPR holds the Tratramarina Permits.

August 2012

The Company entered into a farm-in agreement with Jubilee to enable the Company to explore for commodities under the Ambodilafa Permits.

June 2014

Malagasy Holdings (Bekisopa) Limited acquired 75 percent of IOCM, the holder of the Bekisopa Permits from Cline.

March 2015 to Present

IPR restructured the company and placed the company on a care and maintenance footing while reviewing and translating all the available historical geological work results to prepare the company for a capital raising to progress its main project Bekisopa.

As seen in the Key Events table above Indian Pacific Resources acquired Tratramarina, the coastal upgradable iron ore project, in February 2011 and then in August 2012 agreed a farm in arrangement to acquire the Ambodilafa upgradable iron ore prospect. Then IPR went about doing geological evaluations and a drilling program at both sites that intersected banded iron formations.

As the commodity markets changed from the highs in 2011, which saw realized iron ore prices at around U$151/t and then progressively fall to see benchmark 62% iron ore prices in December 2015 at around U$38/t IPR had to take decisive steps to ensure it future. It became very clear to IPR in late 2013 that it needed a high quality direct ship iron ore (DSO) project if it was to advance its interests in Madagascar. In June 2014 IPR made arrangements with Cline Mining, predominately a coal mining company, to acquire its interest in the Bekisopa iron ore prospect.

Thus, our strategy from mid 2014, following the acquisition of Bekisopa, and into 2018 was to maintain and advance the concessions on a very limited budget, while ensuring our corporation survived financially. Over this period we have been able to translate the historical geological information for Bekisopa, confirm high grade iron ore at surface, +65%Fe, and prepare the company for improved times.

From 2017 to 2019 global steel output has cumulatively risen some 15% requiring up to 300 mmt more iron ore globally.  The recent rise in iron ore benchmark 62%Fe spot prices with 65%Fe premiums near U$15/t and importantly lump premiums near U$37/t suggest a dry, delivered value for Bekisopa lump ores potentially of U$150/t if sustained. Thus, the 2011 to 2014 prior experience of annual 62% benchmark prices of $168/t, $129/t, $135/t or $97/t no longer appears farfetched or impossible.

Consequently, Indian Pacific Resources now embarks to complete a JORC and NI 43-101 compliant mineral resource of some 100 million tonnes for the high grade Bekisopa Direct Shipping Ore target and complete an indicative prefeasibility study targeting about a 3 to 5 million tonnes per annum project concept.

At a later stage we may attempt to measure the large tonnage bulk magnetite potential at all three IPR mineral concessions, however, the bulk magnetite will not command a lump premium, requires crushing, grinding and magnetic separation which implies more capital and may offer a satisfactory return on investment but not as large or as immediate a return as the Bekisopa Direct Shipping Ores.  

For these reasons, Indian Pacific Resources prioritizes our energies and resources towards the initial Direct Shipping Ores found at Bekisopa and see this as our main opportunity.