Vital Metals Ltd · ASX:VML
Vital Metals — Investor Presentation (September 2011)
30 slides from Vital Metals's investor presentation, Sep 28, 2011
Slide 1: ASX Announcement: Company Presentation
Vital Metals Ltd ACN 112 032 596 Suite 44c, Cottesloe Central 460 Stirling Highway, Peppermint Grove WA 6011 PO Box 188, Cottesloe WA 6911 For personal use only Telephone: +61 8 9436 9644 Fax: +61 8 9385 5782 ASX / Media Announcement 28 September 2011 Dear Sir / Madam COMPANY PRESENTATION Vital Meta
Slide 2: Vital Metals Limited
VITAL METALS LIMITED For personal use only Explore Develop Deliver Mark Strizek CEO September 2011 ASX:VML ASX:VML www.vitalmetals.com.au www.vitalmetals.com.au 1
Slide 3: Forward-looking Statement
Forward-looking Statement For personal use only Disclaimer: Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statement
Slide 4: Corporate Overview
Corporate Overview For personal use only Capital Structure Major Shareholders Citicorp Nominees – 9.16% ASX: VML Rex Harbour – 7.66% Shares on Issue JP Morgan Nominees – 6.01% 228.40 million shares Consolidated Minerals – 5.5% 2 million unlisted options HSBC Custody Nominees – 4.73% National Nom
Slide 5: Experienced Board and Management
Experienced Board and Management David Macoboy (Non Executive Chairman) For personal use only Senior finance executive with over 40 years of experience in the areas of corporate strategy, finance, treasury, risk management and international fund raising. Mark Strizek (CEO) Geologist with over 15 yea
Slide 6: Clear Strategy
Clear Strategy For personal use only Vital Metals Ltd (ASX:VML) is a high-value metal explorer and developer, focused on progressing two highly prospective mineral projects: the advanced Watershed Tungsten Project in far north Queensland, Australia and the Doulnia Gold Project in southern Burkin
Slide 7: A Watershed Year
A Watershed Year For personal use only Advanced Watershed Doulnia Gold Project - Tungsten Project – Qld Burkina Faso • Early exploration success • Secured Strategic Partner in • 60% Ownership secured JOGMEC • Starting BFS ASX:VML www.vitalmetals.com.au 6
Slide 8: Two Strong Commodities
Two Strong Commodities For personal use only 600 2000 Tungsten APT (EU) $/mtu price 500 1700 Spot Gold US$/oz price 400 1400 $/mtu $/oz 300 1100 200 800 100 500 0 200 2001 2003 2006 2009 2011 Source: YEAR APT prices Metal-Pages Gold prices Perth Mint ASX:VML www.vitalmetals.com.au 7
Slide 9: Explore - Burkina Faso
Explore - Burkina Faso For personal use only Strategic tenement package with potential for further gold discoveries 60% ownership attained on JV ground – in partnership with Ampella Early exploration success including exciting gold intersections: – 44m at 6.39 g/t gold from 8m 1; and – 32m at 2.
Slide 10: Burkina Faso – Open for Business
Burkina Faso – Open for Business For personal use only Presidential Democracy since 1990 Rule of Law, rising standard of living. Transparent mining code based on WA Mines Act 70,000 sq km of Birimian Greenstone Belts 87% of Au resource discovered since 2003 All support services available
Slide 11: Burkina Faso – Location, Location, Location
Burkina Faso – Location, Location, Location For personal use only Vital Tenements ASX:VML www.vitalmetals.com.au 10
Slide 12: Burkina Faso – Vital Metals Tenements
Burkina Faso – Vital Metals Tenements For personal use only Joint Venture Tenements (Vital 60%, Ampella 40%) – Doulnia (247 km2) Koubongo Zinc Kollo Gold Prospect Prospect Nabenia Zinc Prospect Loubel Zinc Louble Zinc Prospect Prospect AVV Zinc Koubongo Zinc Prospect Prospect – Kampala (21
Slide 13: Burkina Faso – Kollo Gold Prospect
Burkina Faso – Kollo Gold Prospect For personal use only Over 3km of strike length at Kollo, active artisanal mining along trend First round of RC drilling completed, project best intercept of 4m at 58.03 g/t gold from 24m (KRC210) Significant areas remain untested along strike – more drilling
Slide 14: Burkina Faso – Kollo Gold Prospect
Burkina Faso – Kollo Gold Prospect For personal use only 44m at 6.39 g/t gold from 8m (KRC210) – including 4m at 58.03 g/t gold from 24m 12m at 1.03 g/t gold from 64m (KRC210) 18m at 2.95 g/t gold from 37m (KRC001) 32m at 2.44 g/t gold from 36m (KRC001R) 5m at 3.55g/t gold from 60m (KRC001) 4m at 6.
Slide 15: Burkina Faso – Exploration Continues…
Burkina Faso – Exploration Continues… For personal use only Doulnia (JV) Kollo Gold Prospect – Geological mapping over outcrop and workings - now – Update geological model to focus drill targeting – Secure RC drill rig, planning to start November 2011. Assay results should become available Q1 2012
Slide 16: Tungsten – Unique Properties and Products
Tungsten – Unique Properties and Products For personal use only Properties Hardness Heat Resistance Density Environmentally Benign Products Concentrates Ammonium Paratungstate Oxides and Acid Tungsten Metal Powder Tungsten Carbide Powder Ferrotungsten and Melting Base Chemicals
Slide 17: Tungsten – The Dragon is Hungry
Tungsten – The Dragon is Hungry World tungsten supply is dominated by Chinese production and exports. For personal use only Chinese government imposed constraints on mining and processing tungsten ores Move towards value-added downstream tungsten materials and products, by increasing export duti
Slide 18: Tungsten - A Metal in Demand
Tungsten - A Metal in Demand For personal use only Future Outlook Global supply of tungsten is expected to grow 6% per year – or slower. Recycling has filled shortfall in mined supply, but this has now reached maximum capacity By 2012 China’s demand will exceed its supply on current demand for
Slide 19: Develop – Watershed Advanced Tungsten Project
Develop – Watershed Advanced Tungsten Project For personal use only World class scale - Indicated JORC Compliant Resource - 15.1mt @ 0.46% WO3 (0.1% WO3 cut-off undiluted). Simple flow sheet uses X-Ray sorting: Innovative + cost effective Open cut operation - 610,000 tpa of ore producing 196,8
Slide 20: Watershed Location Map – Project Location
Wastershed Location Map – Project Location For personal use only Exploration tenements cover more than 40km from south to north ~ 600km2 7 Mining Lease applications cover the area proposed for mining and infrastructure ~ 1,900 Ha. ASX:VML www.vitalmetals.com.au 19
Slide 21: Watershed – Project Geology
Watershed – Project Geology For personal use only Project area dominated by arenaceous and argillaceous metamorphosed sediments of Hodgkinson Formation Rocks form a prominent ridge that hosts the known tungsten mineralisation Watershed deposit is part of a large structural system that is large
Slide 22: Watershed – Scheelite hosted in…
Watershed – Scheelite hosted in… For personal use only Vein Swarms Disseminated mineralisation Coarse scheelite in veins ASX:VML www.vitalmetals.com.au 21
Slide 23: Watershed – World Class Tungsten Resource
Watershed – World Class Tungsten Resource For personal use only Majority of drilling in resources is diamond core A total of 47,180m drilled at Watershed. Drill spacing over the main resource area is good with the grid spacing approaching 50m by 50m. Mineralisation open along strike and at d
Slide 24: Watershed – Western World Tungsten Deposits
Watershed – Western World Tungsten Deposits For personal use only * In production ** Approaching Production ASX:VML www.vitalmetals.com.au 23
Slide 25: Watershed – Potential Exists at Depth
Watershed – Potential Exists at Depth For personal use only Vital geological team confident in significant scope for extending mineralisation at depth. Trend observed for mineralisation to increase with depth as in hole MWD119 - intersected 20m @ 1.27 % WO3 from 302m Vital developed the Waters
Slide 26: Watershed – Project at an Advanced Stage
Watershed – Project at an Advanced Stage For personal use only EIS phase completed, currently developing EM plan required for Environmental Authority. EPBC Referral – “not a controlled action” Native Title negotiation agreed. ILUA signed by Western Yalanji People. Infrastructure requirements
Slide 27: Watershed – Simple Flowsheet
Watershed – Simple Flowsheet For personal use only Simple flowsheet – exploits scheelite fluorescence and density: – Ore crushed from ore stockpiles fed to – X-Ray ore sorter which removes around ~50% of waste. – Retained feed will be split in spirals and then cleaned using tables, magnetic separa
Slide 28: Watershed – Positive Feasibility Study
Watershed – Positive Feasibility Study For personal use only Results from previous feasibility study indicate Watershed would be economic and robust at current and forecast prices Annual throughput expected to be ~610,000 tpa of ore producing 196,800 mtu WO3 with initial 6 year mine life Capit
Slide 29: Watershed – Potential for Production by 2014
Watershed – Potential for Production by 2014 The BFS at Watershed will: For personal use only – Complete Metallurgical Testwork – Firm up Flow Sheet, Recoveries and Costs – Firm up Opex and Capex – Review the Geology and Resource Modelling – Firm up pricing then do pit optimisation and schedule –
Slide 30: Deliver – A Compelling Investment Case
Deliver – A Compelling Investment Case Explore: For personal use only Doulnia Gold Project (Burkina Faso): Early exploration opportunity Follow up drilling program planned to start late 2011 Excellent joint venture partner in Ampella Mining Ltd Develop: Watershed Tungsten Project (Australia)
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