Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (October 2012)
30 slides from Northern Minerals's investor presentation, Oct 29, 2012
Slide 1: Investor Presentation October 2012
For personal use only Investor Presentation October 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 221.2M* Unlisted Options and Performance Rights Various prices and expiry dates 18.0M# Trading Summary Market Capitalisation (in AUD) $54M (as at 26 October 2012 @ $0.245) 52 week trading range (in AUD) $0.21-$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: High Value Heavy Rare Earths
High Value Heavy Rare Earths 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 (4,161ppm Dy2O3
Slide 8: Essential Elements for Modern Life
Essential Elements for Modern Life For personal use only 66 Critical element for increasing the Dy performance of NdFeB magnets at high temperatures and the driving force behind the growth of hybrid electric vehicles and wind turbine industries. Dysprosium Hybrid Vehicle Motor 39 Essential for the p
Slide 9: Critical Status Recognised by Governments
Critical Status Recognised by Governments For personal use only Dysprosium and Yttrium • Security of supply essential for national government’s to achieve greater energy efficiency required by Kyoto Protocol. Short-Term (0–5 years) Criticality Matrix • OEM’s in Japan and USA seeking security of supp
Slide 10: HRE supply shortfall
HRE supply shortfall For personal use only Strong Demand, Limited Supply • Molycorp and Lynas will solve LRE supply issues. • HRE supply issues remain unresolved. • No significant HRE contribution, supply actually “retreating.” • China eliminating inefficient and “dirty” processing by eliminating 20
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) Notes: 1. 2016 Supply based on current
Slide 12: Browns Range Dome
Browns Range Dome For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV) • Entered into Joint Venture with Toro Energy on 7 tenements in NT to earn up to 80% by completed FS • Significant new HRE discoveries in 2009 - 2012 • Focus to date on the Western Aus
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 230m vertical depth. • Best drill intercepts to date: • 24m @ 2.18% TREO (2,072ppm Dy2O3) from 96m (to EOH)
Slide 14: JORC Resource Drilling – Wolverine
JORC Resource Drilling – Wolverine For personal use only • JORC resource scheduled for completion before the end of 2012, AMC engaged • Diamond drilling testing for mineralisation at depth completed and assays pending • Visual indications and field portable XRF measurements indicates mineralisation
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 • Newly drilled area at Gambit West d
Slide 16: 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 mineralisat
Slide 17: 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) fro
Slide 18: Pipeline of Prospects
Pipeline of Prospects For personal use only Production Reserves Resources Wolverine Gambit Significant Drilling Area 5 Intersections Banshee Mystique Area 5 North Banshee Mystique Geochemical or Wolverine East Wolverine West Nightcrawler Rogue Geophysical Drill Targets Cyclops Sabretooth Wolverine N
Slide 19: 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 20: 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 21: 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 22: 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 23: Pathway to Production
Pathway to Production For personal use only Mineral Construction Concentrate Production Feasibility studies Metallurgical Testwork Wolverine Resource 2013 2014 2015 23
Slide 24: Stakeholder Engagement
Stakeholder Engagement For personal use only Stakeholder Engagement • Local community Kundat Djaru (Ringer Soak) • Heritage Survey completed in July approving the balance of our 2012 Browns Range program • 2 Cultural Awareness Workshops completed, on-site workshop underway for October • Employed 6 p
Slide 25: Environmental Studies
Environmental Studies For personal use only Environmental Studies and EIS • 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 surv
Slide 26: Regional HRE
Regional HRE For personal use only • Granting of NT tenements in August 2012 in the eastern portion of the HRE prospective region of Browns Range Dome. • HRE exploration program commenced on new NT Browns Range tenements in October 2012 - airborne geophysics; reconnaissance mapping and sampling plan
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 de
Slide 29: 2012 Achievements
2012 Achievements For personal use only • 25,000 metres of drilling across Browns Range – outstanding high grade results. • Defined Wolverine mineralisation - JORC Resource by end 2012 (18 months after first drill hole). • Identified new HRE discoveries and a pipeline of potential new projects. • Co
Slide 30: Next Months
Next 9 Months For personal use only 2012 December Quarter Mineral Concentrate TREO Distribution • Complete metallurgical holes at Wolverine • Complete geotechnical holes at Wolverine • Complete maiden resource at Wolverine • Further results from 2012 drilling program Wolverine Gambit West Gamb
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