Slide 1: Crown Mountain Bankable Feasibility Study
Jameson Resources CROWN MOUNTAIN BANKABLE FEASIBILITY STUDY JULY 2020
Slide 2: Corporate Snapshot
Jameson Resources Corporate Snapshot Share Capital JAL Share Price ASX ticker JAL 0.30 Recent Share Price A$0.15 0.25 Shares Outstanding 264m 0.20 Market Capitalisation A$40m 0.15 A$0.115 to Trading Range (6 month) 0.10 A$0.185 0.05 Cash Reserves* 0.00 Cash on Hand (31 March 2020) A$4.5m Options Opt
Slide 3: Strategic Overview
Jameson Resources Strategic Overview • Jameson is a pure coking coal Company with its flagship project, Crown Mountain PURE METALLURGICAL COAL PLAY WITH SUSTAINABLE its primary focus GROWTH FOCUS • Will proactively look for other metallurgical coal opportunities in developed countries with low polit
Slide 4: Crown Mountain Location
Jameson Resources Crown Mountain Location CROWN MOUTAIN LOCATION IS POSITIONED WELL • Tenements in one of the world class metallurgical coal mining jurisdictions, southeast British Columbia • Project is located between Teck’s Line Creek (12km North) and Elk View (8km Southwest) mining operations • T
Slide 5: Crown Mountain Overview
Jameson Resources Crown Mountain Overview The BFS was undertaken by Stantec Consulting’s (Vancouver Office) as Study Manager, with key contributors Sedgman Canada Limited (a member of CIMIC Group) and SRK Consulting, assessing: BANKABLE FEASIBILITY STUDY (BFS) • Geology and resource development JULY
Slide 6: BFS Project Scope and Design
Jameson Resources BFS Project Scope and Design • Three development areas – North, East and South pits with current life of mine (LOM) being 15 years, producing approximately 86% HCC and 14% PCI • LOM average 1.7 mtpa production clean coal at 10.3:1 clean coal strip ratio • Up to 2.3mtpa clean coal i
Slide 7: BFS Economic Outcomes
Jameson Resources BFS Economic Outcomes HIGH QUALITY • Average Clean coal product mix 86% LV HCC and 14% PCI METALLURGICAL COAL • High quality LV HCC, with a high relative CSR • Average LOM FOB cash cost US$93.17/tonne (CA$124/t) COMPETITVE COST STRUCTURE • 2020 BFS All-in sustaining operating costs
Slide 8: BFS Economic Inputs
Jameson Resources BFS Economic Inputs Economic Inputs Unit LT Low Vol, Premium Hard Coking Coal US$/t 164 Revenue Assumptions LT PCI Price US$/t 115 Exchange Rate CAD:USD 0.75 • Long term benchmark price for Low Volatile (LV), Discount rate Nominal 10% Premium Hard Coking Coal of US$164/t FOB Vancou
Slide 9: BFS Mining Parameters
Jameson Resources BFS Mining Parameters • 15 year LOM with potential increased reserves through Key Mining Parameters Unit conversion of inferred resource* and/or exploration Mtpa ROM Nameplate mining & processing capacity 3.7 upside BFS life of mine Years 15 • Annual average LOM clean coal of 1.7mt
Slide 10: BFS Operating Costs
Jameson Resources Crown Mountain BFS Operating Costs • Crown Mountain All In Sustaining Cash Cost per Tonne (FOB) compares are competitive with exisiting South BFS Operating Costs Unit Years 1-4 LOM East British Columbia Hard Coking Coal Operations Waste US/t 22.12 31.94 • Mountain top mining with r
Slide 11: Pre-production Capital Expenditure
Jameson Resources Crown Mountain Pre-production Capital Expenditure Purchased Equipment Leased Total pre-production capital is US$351m Pre-production Capital Expenditure* Unit Scenario Scenario (CA$468m) including mobile equipment fleet Mine Infrastructure US$m 75 75 (estimated accuracy of +/-15%) P
Slide 12: Expected to produce high quality low volatile premium hard coking coal
Jameson Resources Crown Mountain North & East Block Quality Factors Comparable to Peak Downs • North and East Block Crown Mountain Coal Strength after • CSR is an important parameter in pricing of coking coals: Reaction (CSR) and Volatile Matter are comparable to Peak coals with high CSR values rece
Slide 13: Potential BFS Optimisation Scenarios
Jameson Resources Potential BFS Optimisation Scenarios Potential Optimisation Description Areas Increased • Increased utilisation of CHPP hours (BFS assumed parameters of 6,400 annual production run hours Product Coal whilst plant availability, after planned outages is 8,060 hours). Industry experie
Slide 14: Potential BFS Optimisation Scenarios
Jameson Resources Potential BFS Optimisation Scenarios Potential Optimisation Description Areas Lower Capital • Build Own Operate Transfer for the CHPP and associated infrastructure, similar to the contract Costs miner scenario, whereby capital would be reduced at the expense of operating costs howe
Slide 15: Strategic Partner
Jameson Resources Crown Mountain - Strategic Partner • In July 2018 ASX Listed coal miner Bathurst Resources Ltd (BRL) became a strategic partner, via investment in a previously wholly owned Jameson Resources subsidiary, NWP Coal Canada Ltd (‘NWP’) • Initial investment CA$4m towards exploration comp
Slide 16: Competent Persons Statements
Jameson Resources Competent Persons Statements Competent Person Statements Mineral Resource Estimate, Mineral Reserve Estimate and Bankable Feasibility Study Results The information in this presentation relating to the Mineral Resource Estimate, Mineral Reserve Estimate and Bankable Feasibility Stud
Slide 17: Disclaimer
Jameson Resources Disclaimer This document has been prepared as a summary only, and does not contain all information about the Jameson Resources Limited’s (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attachin
Slide 18: Appendices Crown Mountain BFS
APPENDICES CROWN MOUNTAIN BFS 18
Slide 19: Resources and Reserves
Jameson Resources Crown Mountain Resources and Reserves • The BFS confirmed a total Measured Indicated Measured & Inferred Measured, (Mt) (Mt) Indicated (Mt) Indicated & reserve base at Crown RESOURCE AREA (Mt) Inferred (Mt) Mountain of 57.5 million tonnes North Block 10.1 3.0 13.1 0 13.1 South Bloc
Slide 20: Geology
Jameson Resources Crown Mountain Geology Section A-A Section B-B 20
Slide 21: Geology
Jameson Resources Crown Mountain Geology Drill Hole Location Map Section C-C Section D-D 21
Slide 22: Coal Quality
Jameson Resources Crown Mountain Coal Quality Crown Mountain Coking Coal1 Canadian Canadian Central NEBC SEBC North and South Alberta2 HCC2 HCC2 East blocks Block Total Moisture (% as received) 8-9 8-9 8-9 8-9 9 – 9.5 Volatile Matter (% dry) 20 - 20.5 18 – 18.5 21 - 24 21 - 27 18 - 27 Ash Content (%
Slide 23: Coal Quality Comparison
Jameson Resources Crown Mountain Coal Quality Comparison Source: Stantec Stantec Consulting Services Inc. using publicly available information and standard industry definitions. Refer https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/metcoalme
Slide 24: Pit Design and Sequencing
Jameson Resources Crown Mountain Pit Design and Sequencing Crown Mountain project will commence in higher quality and lower strip ratio areas of North and East pits, before progressing to South Pit 24
Slide 25: Mine Scheduling
Jameson Resources Crown Mountain Mine Scheduling Waste ROM Strip Ratio Product Strip Ratio • Mine scheduling sees mining start in the Pit MBcm Coal Mt Bcm/t ROM Coal Mt Bcm/t Saleable low strip ratio North and East pits for North & East 73.6 18.0 4.1 10.0 7.4 South 196.5 39.5 5.0 16.3 12.1 years 1-4
Slide 26: CHPP Flowsheet
Jameson Resources Crown Mountain CHPP Flowsheet • Sedgman Canada Limited completed the processing design and associated capital and operating estimates • Capital estimates were to an accuracy level of +/- 5.6% while operating costs estimates were to a level of accuracy of +/-15% • The CHPP will be l
Slide 27: Selenium Mitigation Strategy
Jameson Resources Crown Mountain Selenium Mitigation Strategy • NWP has undertaken a novel approach to selenium mitigation that has involved conceptual studies undertaken by Enviromin and modelled by SRK • Phase I involving mathematical modelling has been successfully completed, demonstrating potent
Slide 28: BFS Operating Costs
Jameson Resources Crown Mountain BFS Operating Costs • BFS operating costs have increased from the 2017 BFS Operating Costs* Unit Years 1-4 LOM PFS Update that was completed near a cycle low for Operating Costs – clean coal Metallurgical Coal Waste US/t 22.12 31.94 • Since that time the average All
Slide 29: Rail and Port Capacity
Jameson Resources Crown Mountain Rail and Port Capacity Canada - West Coast Port Capacity (Mt) RAIL Current Capacity Planned Growth • Common user railway linking South East BC to deep 60 water ports in Vancouver 50 • Rail is located 16km from the proposed washplant • Canadian Pacific currently servi
Slide 30: Progressing toward EA Application submission
Jameson Resources Progressing toward EA Application submission • A proactive approach to the regulatory process has and continues to be undertaken since 2014, with the lodging of the Project Description, with all levels of government (which include First Nations, Provincial, and Federal regulators)
Slide 31: Timeline
Jameson Resources Crown Mountain Timeline ACTIVITY 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Baseline ✓ ✓ ✓ ✓ ✓ ✓ EA Application Preparation and Submittal ✓ ✓ ✓ ✓ ✓ ✓ EA Regulatory Review and Approval Mine Permit Preparation, Submittal & Appro
Slide 32: Crown Mountain Financial Outcomes
CROWN MOUNTAIN FINANCIAL OUTCOMES 32
Slide 33: Key Economic Outcomes
Jameson Resources Crown Mountain Key Economic Outcomes Purchased • The Crown Mountain BFS delivered a Equipment NPV(10) pre-tax of US$376m Economic Outcome* Unit Scenario Exchange Rate CAD:USD 0.75 (CA$502M) and post-tax of US$217m HCC Low Vol, Premium Benchmark (FOB Vancouver) US/t 164 (CA$289M) Ke
Slide 34: Australian Office
For further information, please contact AUSTRALIAN OFFICE (Corporate) CANADIAN OFFICE Joel Nicholls Suite 5, 62 Ord Street, Suite 810, 789 West Executive Director West Perth Western Australia 6005 Pender Street joel.nicholls@jamesonresources.com.au T: +61 (8) 9200 4473 Vancouver, BC V6C 1H2 www.jame