Diatreme Resources Limited · ASX:DRX
Diatreme Resources — Mining 2011 Conference
21 slides from Diatreme Resources's conference presentation, Oct 27, 2011
Slide 1: Mining 2011 Conference Company Presentation
DIATREME RESOURCES LIMITED ABN: 33 061 267 061 Postal Address: PO Box 10288 Brisbane Adelaide Street QLD 4000 Registered Office: Level 2 87 Wickham Terrace Spring Hill QLD 4000 PH: +61 (0)7 3832 5666 FX: +61 (0)7 3832 5300 www.diatreme.com.au manager@diatreme.com.au For personal use only ASX : DRX C
Slide 2: Tony Fawdon, Executive Chairman/CEO
For personal use only Tony Fawdon Executive Chairman/CEO 27 October 2011
Slide 3: Disclaimer
DISCLAIMER For personal use only This presentation contains certain forward‐looking statements and forecasts which include without limitation, expectations regarding future performance, exploration, mineral resources, the financial position of Diatreme Resources Limited (the “Company”), industry gro
Slide 4: DRX Profile
DRX PROFILE For personal use only ¾ LARGE WORLD ORDER ZIRCON DEPOSIT AT CYCLONE, EUCLA BASIN WA ¾ CYCLONE DEPOSIT PREFEASIBILITY NEARING COMPLETION ¾ NEGOTIATING CYCLONE FARM IN PROVISIONS FOR BFS & DEVELOPMENT ¾ EXPLORING SATELLITE RESOURCES AT CYCLONE FOR FURTHER ZIRCON ¾ JOINT VENTURING DRX GOLD
Slide 5: Project Locations
PROJECT LOCATIONS For personal use only Cape Bedford (HM) Bellfield (BM) Tick Hill MLs(Au) Clermont(Cu‐Au Mo) CYCLONE DEPOSIT (Zr) Shark Bay (HM) Eucla Basin (HM) Anabama (Cu‐Au) Casterton (HM)
Slide 6: Cyclone Location
For personal use only CYCLONE LOCATION
Slide 7: Cyclone Deposit
For personal use only CYCLONE DEPOSIT
Slide 8: Mining Lease Application
MINING LEASE APPLICATION For personal use only
Slide 9: Cyclone Deposit – 3D
For personal use only CYCLONE DEPOSIT – 3D
Slide 10: Cyclone Proposed Mining Methods
CYCLONE PROPOSED MINING METHODS For personal use only
Slide 11: Cyclone PFS & Schedules
CYCLONE PFS & SCHEDULES For personal use only PRE FEASIBILITY STUDY •Geology, Resources & •Reserves •Hydrology •Mineralogy & Mine Planning •Metallurgy & Mineral Processing •Environmental Studies •Infrastructure & Operations •Site Access & Mineral Transport •Markets & Economics •Capital & Operating C
Slide 12: Products & Uses
PRODUCTS & USES For personal use only Titanium 93% of world titanium minerals used to produce TiO2 pigment. TiO2 is a white powder with high opacity and brilliant whiteness. Zircon Over 50% of the world's zircon is used as an opacifier in ceramic glazes. Australia produces 40% of the world’s zircon
Slide 13: Heavy Mineral Concentrate
HEAVY MINERAL CONCENTRATE For personal use only
Slide 14: Global Mineral Sands Deposits – Zr:Ti Ratio
GLOBAL MINERAL SANDS DEPOSITS – Zr:Ti Ratio For personal use only Cyclone – High Zircon assemblage
Slide 15: Mineral Sands Projects – Zircon Comparison
MINERAL SANDS PROJECTS – ZIRCON COMPARISON For personal use only
Slide 16: Cyclone – Planned zircon production vs current operations
CYCLONE – Planned zircon production vs current operations For personal use only
Slide 17: Scoping Study Forecasts
SCOPING STUDY FORECASTS For personal use only Capital Expenditure (including pre-development) $201.5 Million Average Annual Sales Revenue $187 Million Average Annual Cash Operating Cost $69 Million Average Annual Sustaining Capital Cost $2 Million Average Annual Tax Payable $28 Million Average Annua
Slide 18: Project Financials
PROJECT FINANCIALS For personal use only 10 Year Mine Life at 9.8 Mt ore mined per annum Average Annual Sales Zircon Product 66,000 t Average Annual Sales Titanium Product 69,000 t Payback Period 1.85 Years IRR 45% NPV (10%) Base Case $266 Million Sensitivity Range $208 Million to $463 Million Valua
Slide 19: Cyclone Project Dynamics & DRX Values
CYCLONE PROJECT DYNAMICS & DRX VALUES For personal use only • One million tonnes of zircon • Current zircon price of USD 2770 & escalating • Zircon constitutes >80% of revenue • Independent valuation of Cyclone Project $300 Million • DRX Market capitalisation $25 Million
Slide 20: Corporate Information
CORPORATE INFORMATION For personal use only CAPITAL Shares on Issue 355 Million Options on Issue (ex Sept 2013 @ 15 cents) 89 Million Share Price 7.1 cents Option Price 2.4 cents Market Capitalisation $25 Million Cash at hand (End Sept Quarter) $4.9 Million MAJOR SHAREHOLDERS HOLDING DIRECTORS Andre
Slide 21: Summary
SUMMARY For personal use only • Advanced project in strengthening Zircon market • Highly experienced & effective Geological & Engineering Team • Right project in the right sector with large upside • New prospective heavy mineral projects for testing in 2012