Northern Minerals Limited · ASX:NTU
Northern Minerals — Shareholder Meeting (November 2012)
31 slides from Northern Minerals's shareholder meeting presentation, Nov 28, 2012
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 28 November 2012 George Bauk Managing Director/CEO
Slide 2: Important Notice
Important Notice For personal use only This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or inv
Slide 3: Investment Highlights
Investment Highlights For personal use only High Value Heavy Rare Earths • Distribution of Rare Earths – 86% • Dominance of Dysprosium and Yttrium • Exploration potential at Browns Range – 2,000km2 Low Capital Costs • Xenotime – amenable to processing • Production of a 30% mineral concentrate REE fo
Slide 4: Capital Structure
Capital Structure For personal use only ASX Code NTU Ordinary Shares 236.2M* Unlisted Options and Performance Rights Various prices and expiry dates 18.0M# Trading Summary Market Capitalisation (in AUD) $45M (as at 27 November 2012 @ $0.19) 52 week trading range (in AUD) $0.18-$0.57 Major Shareholde
Slide 5: Board & Management
Board & Management For personal use only George Bauk Adrian Griffin Kevin Schultz Dudley Kingsnorth Colin McCavana Managing Director / CEO Non Executive Director Non Executive Chairman Non Executive Director Non Executive Director - 20+ years mining operation - Specialising in mine - Formerly Managi
Slide 6: Value Proposition
Value Proposition For personal use only Vision To become the global benchmark in the production of heavy rare earth elements for the benefit of all our stakeholders Strategy • $90M concentrator built at Browns Range Project by end of 2014 • To produce and deliver sufficient supplies of HRE for a div
Slide 7: The NTU Sustainable Competitive Advantage
The NTU Sustainable Competitive Advantage For personal use only Point of difference “Heavies” Exploration Success Coupled with a low capital/ operating cost Browns Range Project Wolverine* Distribution of Rare Earths at Browns Range. Wolverine (March 2012) Mt Weld Project Gambit: 38m @ 4.15% TREO (4
Slide 8: Essential for a Sustainable Future
Essential for a Sustainable Future For personal use only 66 Critical element for increasing the Dy performance of NdFeB magnets, the driving force behind hybrid electric vehicles and reduction of automobile carbon emissions. Reducing automobile pollution Dysprosium 39 Critical for the production of
Slide 9: RE Supply Critical for World Governments
RE Supply Critical for World Governments For personal use only Dysprosium and Yttrium • Security of supply is becoming as critical for development as oil supply. Short-Term (0–5 years) Criticality Matrix • OEM’s in Japan and USA establishing security of supply to continue production/R&D programs. •
Slide 10: 2012 Industry Assessment
2012 Industry Assessment For personal use only Sustained Demand, Limited Supply • 2012 a turbulent year for the RE industry • Many RE projects “fallen off the radar” – no longer viable with lower LRE prices • NTU going from strength to strength with geology and metallurgy • Fundamentals remain – no
Slide 11: Demand for Heavy Rare Earths
Demand for Heavy Rare Earths For personal use only Supply Rare Earths 2012 20161 Group China ROW China ROW2 Lights (La, Ce, Pr and Nd) 87% 13% 76% 24% Mediums (Sm, Eu and Gd) 94% 6% 86% 14% Heavies (Tb, Dy, Er and Y) 99% 1% 96% 4% (Ho, Tm, Yb & Lu not included) • Lynas and Molycorp have little impac
Slide 12: Browns Range Dome
Browns Range Dome For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV) • Entered into JV with Toro Energy on 7 tenements in NT to earn up to 80% by completed FS • Total Land Holding – 2,000km2 • Significant new HRE discoveries in 2009 - 2012 • Focus to da
Slide 13: Browns Range – Wolverine
Browns Range – Wolverine For personal use only TO BE UPDATED • East-west trending quartz breccia fault zone - HRE mineralisation identified over a strike length of 200m, widths of 2-25m and to 250m vertical depth • Best drill intercepts to date: • 24m @ 2.18% TREO (2,072ppm Dy2O3) from 96m (to EOH)
Slide 14: JORC Resource – Wolverine
JORC Resource – Wolverine For personal use only • JORC resource scheduled for end of 2012, estimate underway by AMC • Diamond drilling indicates mineralisation down to 250m vertical and open at depth • Further deep diamond drilling planned below 150m vertical targeting increase in resource • Metallu
Slide 15: Browns Range – Gambit
Browns Range – Gambit For personal use only • Highest grade HRE intersections recorded at Browns Range – 38m @ 4.15% TREO from 45m including 8m @ 9.58% TREO • Mineralisation associated with an east-west trending siliceous breccia zone within an arkosic sandstone • Series of mineralised plunging shoo
Slide 16: Browns Range - Gambit West
Browns Range - Gambit West For personal use only • New discovery located approximately 200m west of central Gambit prospect • Results include 32m @ 1.73%, 20m @ 2.36% and 13m @ 1.72% TREO • High-grade HRE mineralisation with true widths of up to 20m and open along strike and at depth • Follow-up dri
Slide 17: Browns Range – Area 5
Browns Range – Area 5 For personal use only • 2012 Drilling has extended area of mineralisation • Assay results of up to 11m @ 1.15% from 11m and 7m @ 3.83% TREO from 119m in 2012 drilling • New results have indicated mineralisation over downhole widths of up to 19m including high-grade mineralisati
Slide 18: Browns Range – New Discoveries
Browns Range – New Discoveries For personal use only Banshee: • 14m @ 0.52% TREO (414ppm Dy2O3) from 64m, 10m @ 0.71 TREO (650ppm Dy2O3) from 68m • Broad zone of shallow low-grade mineralisation intersected with results of 12m @ 0.25% TREO from surface Mystique: • 10m@ 0.73% TREO (707ppm Dy2O3) from
Slide 19: Pipeline of Prospects
Pipeline of Prospects For personal use only Production Reserves Resources Wolverine Gambit Area 5 Significant Drilling Gambit West Cyclops Intersections Banshee Mystique Area 5 North Gambit West Cyclops Banshee Mystique Geochemical or Wolverine East Wolverine West Nightcrawler Rogue Geophysical Dril
Slide 20: Browns Range HRE Project
Browns Range HRE Project For personal use only Feed Distribution - HG Circuit Test* Fundamental for REE project success U3O8 Other TREO Fe2O3 P2O5 LOI ThO2 • Robust metallurgical processing K2O Al2O3 • Ability to consistently supply a product to customers specification SiO2 Mineralogy • Browns Range
Slide 21: Simplified Process Flowsheet
Simplified Process Flowsheet For personal use only Rare Earth Browns Upstream Range and Mid– Stream HRE Project Supply Simplified Chain Process and Flowsheet Process MINING BENEFICIATION Pathway to HYDROMETALLURGY REFINING Production Mixed Chemical Concentrate Separated RE Oxides 2015 Mineral Concen
Slide 22: Flowsheet Development
Flowsheet Development For personal use only Beneficiation Process Hydrometallurgical Process • Successful test work at Nagrom returned • Preliminary test work completed by ANSTO similar recoveries for rougher magnetic and Nagrom separation and flotation across head • Tested sulphuric acid followed b
Slide 23: Metallurgical Flowsheet Development
Metallurgical Flowsheet Development For personal use only Beneficiation Process Stage 1 - Flotation Optimisation Confirm and optimise Variability test other Produce bulk sample for & Magnetic test work flowsheet on Wolverine prospects against base Stage 1 Hydrometallurgical Separation underway PQ co
Slide 24: Pathway to Production
Pathway to Production For personal use only Mineral Construction Concentrate Production Feasibility studies Metallurgical Testwork Wolverine Resource 2013 2014 2015 24
Slide 25: Stakeholder Engagement
Stakeholder Engagement For personal use only Stakeholder Engagement • Local community Kundat Djaru (Ringer Soak) • Employed 6 people from Ringer Soak/Halls Creek • 2 Cultural Awareness Workshops completed, on-site workshop scheduled in Q2 2013 • Meetings held with: • Various ministers at Federal & S
Slide 26: Environmental Studies and EIS
Environmental Studies and EIS For personal use only • Baseline flora and fauna studies • Groundwater and surface water studies • Baseline soil survey and waste rock geochemical characterisation • Baseline air quality and meteorological characterisation • Baseline radiation survey to commence • 20 Pe
Slide 27: John Galt HRE Project
John Galt HRE Project For personal use only • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock sour
Slide 28: Gardiner-Tanami Project – Gold
Gardiner-Tanami Project – Gold For personal use only • Process underway to seek potential investors for the Gardiner-Tanami Project • Initial divestment flyer distributed in early October • Project located within Tanami Arunta region – a world-class gold province, with several plus million ounce dep
Slide 29: Achievements 2011/12
Achievements 2011/12 For personal use only Operational Corporate Browns Range HRE • Successful completion of RE mineral rights to entire Browns Range Dome through Toro Energy JV • Drilling identifies a number of potential prospects including the successful delineation of Wolverine • Successful grant
Slide 30: Achievements July 2012 – Nov 2012
Achievements July 2012 – Nov 2012 For personal use only • Defined Wolverine mineralisation - JORC compliant resource by end 2012 (17 months after first drill hole) • Mineralisation at Gambit and Area 5 extended and in the process of review to determine resource estimate • Identified 4 new HRE discov
Slide 31: Plan December 2012 - June 2013
Plan December 2012 - June 2013 For personal use only Operational Corporate Browns Range HRE • Continued review of non-REE assets and consideration of divestment options including the • Definition of a maiden JORC compliant resource at proposed divestment of non-REE assets at Wolverine, December 2012
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