Slide 1: Presentation – Mining 2007 Resources Convention Brisbane
2 November 2007 For personal use only Manager Announcements Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000 By ASX Online Dear Sir/Madam Presentation – Mining 2007 Resources Convention Brisbane Please find attached the presentation to be given
Slide 2: A Vital Metal for the Future
A VITAL Wane 7. FOR THE FUTURE. Used in everything from manufacturing steel to electronics, the future for tungsten is bright. www.vitalmetals.com.au
Slide 3: Vital Metals Ltd - Structure
Vital Metals Ltd - Structure For personal use only • Issued capital ¾ 104.9 million shares ¾ 5.5 million unlisted options ($0.20 - $0.80) ¾ 5.8m listed options ($0.80) • Raised $8m (40m shares) at IPO (October 2005) and completed 10.5m share placement for $4.4m (Nov 2006) • Raised $13.5m (July/Aug 2
Slide 4: Vital Metals Ltd - Directors
Vital Metals Ltd - Directors For personal use only • Directors • William J (Bill) Ryan - Chairman and CEO • D R (Ross) Kennedy - Geology • A S (Andrew) Simpson – Metals Marketing • C J (Colin) Hunter – Metallurgy • Andrew Haslam - Incoming MD/CEO (January 2008) - Mining Engineer, 25 years experience
Slide 5: Watershed Site
For personal use only Watershed Site
Slide 6: Changes in Tungsten Market since 2004
Changes in Tungsten Market since 2004 For personal use only • Global consumption increasing by at least 4% per annum (China rising at above 20% per annum) • Chinese reserves and average grade declining • Russian and American strategic stockpiles exhausted • Chinese moving further downstream and incr
Slide 7: Tungsten Prices 2004-2007
Tungsten Prices 2004-2007 For personal use only
Slide 8: Potential Non-Chinese Tungsten Mines
Potential Non-Chinese Tungsten Mines For personal use only • Chinese mine grades declining • Need for new, non-Chinese, supply sources • Potentially three major new tungsten mines scheduled for production within 3 years - outside of the Eastern Block • Watershed (Australia) – 21.79mt at 0.26% WO3 (t
Slide 9: Project Location Map
For personal use only Project Location Map
Slide 10: Location Map
Watershed – Location Map For personal use only
Slide 11: View East
Watershed – View East For personal use only
Slide 12: Geology
Watershed – Geology For personal use only Located 25km NE of Mt Carbine wolframite mine worked through the 1980’s Widespread tungsten targets with defined ore body in N part of area Strong evidence of northern and southern extensions
Slide 13: Development Plans
Watershed – Development Plans For personal use only • Development study based on output of 4,000 tpa of contained WO3 in concentrates (6.5% of world market) • Value of production at current price ~ A$100m pa • Deposit outcrops atop 180 metre high ridge • Excellent logistics • Located 100km from regi
Slide 14: Project - Resources
Watershed Project - Resources For personal use only • Primary objective to prove 10 years ore at 4,000 tpa WO3 (recovered) ~ 50,000 tonnes WO3 • RSG Global new global resource estimate (Indicated/Inferred) completed June 07 21.79mt at 0.26% WO3 for 56,300 tonnes WO3 contained • Selective mining can
Slide 15: Model – Plan View
Watershed Model – Plan View For personal use only
Slide 16: Model – N/S Cross Section
Watershed Model – N/S Cross Section For personal use only
Slide 17: Depth and Lateral Potential
Watershed - Depth and Lateral Potential For personal use only • In-fill drilling continues to expand global resource along strike • High potential for major expansion of current resource numbers in six targets, including: ¾ Central section between east and west zones ¾ Deep high-grade SW area ¾ Nort
Slide 18: Targets
For personal use only Targets
Slide 19: Watershed ML Applications
For personal use only Watershed ML Applications
Slide 20: Project - Metallurgy
Watershed Project - Metallurgy For personal use only • Metallurgical route will use ore sorting followed by gravity recovery and flotation • Lab scale X-Ray Ore Sorting tests completed – Bulk tests in progress • Ore sorting showed very high recovery (+ 90%) with rejection of about 50% of tonnage • T
Slide 21: Bulk Sampling
Watershed – Bulk Sampling For personal use only
Slide 22: Project - Environmental
Watershed Project - Environmental For personal use only • Vital has elected to complete a formal EIS • EPBC clearance with Canberra completed • Draft Terms of Reference for EIS finalised • Completed flora/fauna surveys form basis of EIS • EIS due for lodgement early November 2007 • EIS approval will
Slide 23: Infrastructure
Watershed Infrastructure For personal use only • Current access track will upgrade to all-weather road – design complete • Grid power at 132kV available 23km away on Highway • Accommodation village will be built 3km north of mine • Personnel will drive in/out from Mareeba or fly in/out from elsewher
Slide 24: View South
Watershed – View South For personal use only
Slide 25: Timing
Watershed Timing For personal use only • Marketing strategy to be complete by late 2007 • Finalise ILUA negotiations – January 2008 • Preliminary Mining study complete - March 2008 • Metallurgical Flow Sheet – March 2008 • Feasibility Study complete – June 2008 • EIS Clearance – October 2008 • Produ
Slide 26: View East
Watershed – View East For personal use only
Slide 27: Mt Mulgine – WA (VML earning 70%)
Mt Mulgine – WA (VML earning 70%) For personal use only • Vital earning 70% from GBG for spending $0.75m by Oct 2008 • Currently spent ~ $0.64m • Extensive, low-grade tungsten and molybdenum mineralisation • May be stand-alone Mo mine • Warrants new look
Slide 28: Mt Mulgine - WA
Mt Mulgine - WA For personal use only • Extensively drilled by multiple explorers (1965/85) • Very large target • Resources (non-JORC Compliant) • Hill deposit: 5.09mt @ 0.24% WO3 • Trench deposit: 84mt @ 0.14% WO3, 0.045% Mo from surface – open to SW, NE and at depth • Vital seeking extensions, new
Slide 29: A Vital Metal for the Future
A VITAL Wane 7. FOR THE FUTURE. Used in everything from manufacturing steel to electronics, the future for tungsten is bright. www.vitalmetals.com.au