Reward Minerals Ltd · ASX:RWD
Reward Minerals — Investor Presentation (January 2014)
30 slides from Reward Minerals's investor presentation, Jan 24, 2014
Slide 1: Reward Minerals Limited Presentation January 2014
REWARD MINERALS LIMITED Presentation January 2014
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Our Vision
OUR VISION Reward Minerals Limited (ASX:RWD) Our Company is a Perth based Company focussed on developing projects to provide essential nutrients to help meet the world's growing food demand Sulphate of Potash (SOP) – K2SO4 Commodity - Potash is a specialty product that is strategic and geologically
Slide 4: Corporate Overview
CORPORATE OVERVIEW Capital Structure 20 Jan 2014 ASX:RWD Board Mr Colin McCavana Non Executive Director, Chairman Ordinary Shares on Issue 98.4m Options on Issue1 26.5m – 31+ years experience in the mining and earthmoving industries – Director of Northern Minerals Share Price $0.53 Dr Michael Ruane
Slide 5: Sulphate of Potash (SOP)
SULPHATE OF POTASH (SOP) SOP is a high value, strategic and geologically scarce specialty Potash product SOP makes up ~10% of global potassium fertiliser production: – MOP: ~55Mtpa – SOP: ~6Mtpa 90% of SOP used on specialty crops 40% of SOP demand from China (largest producer of fruits and vegetable
Slide 6: Projects Overview
PROJECTS OVERVIEW Reward holds a dominant highly prospective land position of over 9,000km2
Slide 7: Karly Project: Palaeovalley Potential
KARLY PROJECT PALAEOVALLEY POTENTIAL Source: Geoscience Australia – 2010/12 Record Paterson Province AEM Survey, Reward Minerals
Slide 8: Lake Disappointment (LD)
LAKE DISAPPOINTMENT (LD) Project Overview Project Overview (cont.) Little Sandy Desert (W.Australia) Solar Evaporation (>4m/yr), Location ~340km east of Newman Production Process Mechancial Harvesting & Simple Leach/Crystallisation Process SOP Resource 24.4Mt (K2SO4) (SOP in Brine, to only 4m depth)
Slide 9: LD Project: Resources & Growth
LD PROJECT RESOURCES & GROWTH SOP Resource Estimate Volume of Sediments – to 4 metres only 3.96 x 109 m3 Tonnage Estimate: SG 1.95 7.7 x 109 Mt 3.17kg / t Weighted Average (soluble) SOP content 6.17kg / m3 SOP Resource Estimate 24.4Mt Resource Growth Step-out drilling (in progress) Deeper drilling F
Slide 10: LD Project: Proposed Production Process
LD PROJECT PROPOSED PRODUCTION PROCESS Simple process whereby harvested SOP salt is put through a milling, conversion, filtration and crystallisation process before it is ready to be distributed. START Water Raw Brine Evaporation Harvested Leaching & Ponds SOP salts Crystallisation Waste Brine SOP R
Slide 11: LD Project: Site Preliminary Works
LD PROJECT SITE PRELIMINARY WORKS Access road sheeted Access road near LD Exploration base camp Exploration base camp
Slide 12: Karly Project: Project Overview
KARLY PROJECT Project Overview Great Sandy Desert Location Western Australia SOP Resource Conceptual (K2SO4) High K in surface samples In-situ playa brine Type of Deposit Surface to 100+ meters1 Level of Access Exploration Licences LD testwork results and flowsheet design Production Process applicab
Slide 13: Karly Project: Geoscience AEM Survey Data
KARLY PROJECT GEOSCIENCE AEM SURVEY DATA Retrieved from the 2008 Paterson Province AEM Part of the Australian Government’s Onshore Energy Security Program Over $2.7M spent on the EM Program – 28,200 line kilometers flown Source: Geoscience Australia – 2010/12 Record Paterson Province AEM Survey
Slide 14: Karly Project: The Embayment
KARLY PROJECT THE EMBAYMENT Waukarlycarly Basin Seismic Cross-sections Source: Geoscience Australia – Not representative of actual LW embayment 80km by 40km embayment area held Depth to basement 3,000m Top of Grant Group 500 to 600m
Slide 15: Karly Project: Geoscience AEM Survey
KARLY PROJECT GEOSCIENCE AEM SURVEY - 200m RL - 0m RL Lake Waukarlycarly Location - 300m RL - 100m RL LW5 – 8.12kg SOP/m3 brine LW6 – 13.21kg SOP/m3 brine Playas conductive from surface to 100m+ depth Gently dipping under cover to the north Source: Geoscience Australia – 2010/12 Record Paterson Prov
Slide 16: Karly Project: Lake Survey Results
KARLY PROJECT LAKE SURVEY RESULTS First pass samples suggest high Potash prospectivity for follow-up work Sample Results1 BRINE ANALYSIS - LAKE SURVEY - NOVEMBER 2013 Sample Northing Easting Ca (2) K (2) SOP (3) Mg (2) Na (2) Cl (2) SO4 (2) SG (4) TDS (5) LAKE WAUKARLYCARLY LW1 7645460 384538 0.55 4
Slide 17: Karly Project: Historical Exploration
KARLY PROJECT HISTORICAL EXPLORATION Hole ANK266: “Heaps and heaps of water salty (sic)” Hole ANK267: “Heaps of water at 8.5m. RC rock-roller from 12.5m (lost circulation in broken ground).” BHP Minerals Pty Ltd – Paterson JV CR8775 Open File, sourced from WAMEX Hole AND381:“High water flows of 8L/s
Slide 18: Karly Province: Sample Results
KARLY PROVINCE SAMPLE RESULTS Karly Project Lake Dora Lake Auld Lake Winifred Connolly LD Project
Slide 19: LD Project: Palaeovalley Potential - AEM
LD PROJECT PALAEOVALLEY POTENTIAL - AEM 20870 20910 20870 20910 LDED – 8.37kg SOP/m3 brine LDEA – 8.25kg SOP/m3 brine LD Avg. – 12.37kg SOP/m3 brine Source: Geoscience Australia – 2010/12 Record Paterson Province AEM Survey, Reward Minerals
Slide 20: Growth: Achieving Our Exploration Target
GROWTH ACHIEVING OUR EXPLORATION TARGET Achieving our Exploration Target of ~500Mt to ~1Bt SOP @ 6kg/m3 to 7.5kg/m3 The potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result
Slide 21: Why Reward?
WHY REWARD? Reward’s favorable project economics support low capital and operating cost potential Key Project Parameters Proximity to Key Markets Extensive landholdings - +9,000km2 Reward’s geographic location places it in close Substantial resource potential proximity to key Asian markets High valu
Slide 22: Board & Senior Management
BOARD & SENIOR MANAGEMENT Board Senior Management Mr Colin McCavana Non Executive Director, Chairman Mr Daniel Tenardi Projects Director – 31+ years experience in the mining and earthmoving – Over 24 years experience in mining operations from start-up industries to completion phases – Director of No
Slide 23: Competent Person Statement
COMPETENT PERSON STATEMENT Reward Minerals Ltd advise that resource parameters provided in this presentation relating to the Lake Disappointment Project are based on information compiled by Mr Simon Coxhell of CoxsRocks who is a Member of the Australasian Institute of Mining and Metallurgy and is a
Slide 24: Appendices
APPENDICES
Slide 25: Potash Market
POTASH MARKET Muriate of Potash (MOP, KCl) Sulphate of Potash (SOP, K2SO4) Accounts for over 86% of total potassium Accounts for around 10% of total potassium fertilisers produced globally fertilisers produced globally Contains 46% chloride Contains 17.5% sulphur Chloride may be harmful to crops Sul
Slide 26: SOP – Premium Potash
SOP – PREMIUM POTASH SOP is 17.5% sulphur and contains no chloride (MOP contains 46% chloride) Superior to MOP because chloride has a toxic impact on many food plants, especially leafy plants Used on specialty crops which generate ten times the revenue of commodity crops Increases yields Boosts plan
Slide 27: SOP - Production
SOP - PRODUCTION % of SOP Global Production Primary Processing Brine salts with potassium are pumped into ponds, Brine (Reward) solar evaporated, harvested and processed – lowest cost of production method 29% Processing highly dependent on evaporation potential at the project Examples: Great Salt La
Slide 28: SOP – Global Production
SOP – GLOBAL PRODUCTION Major SOP Producers Company Prod’n Process Location (ktpa) SDIC Loubupo 1,300 Brine China Based on Reward’s K+S Kali 1,200 Mannheim/Salts Germany preliminary studies the Company would be one Tessenderlo Chemie 750 Mannheim France / Belgium of the five largest SOP Qingshang 59
Slide 29: Mineral Production from Salt Lakes
MINERAL PRODUCTION FROM SALT LAKES Various other mineral products are also produced from salt lakes globally, using similar production concepts planned by Reward Xinjiang Luobupo Potash Compass Minerals Lop Nur Qinghai Guoan Great Salt Lake, Big Quill Lake Dead Sea Works Potash (SOP, MOP) Dongtai
Slide 30: Premium Potash = Premium Price
PREMIUM POTASH = PREMIUM PRICE SOP attracts a premium price (historically c.30%) Premium has widened due to supply instability in the MOP market (split of Uralkali from BPC) SOP price remains stable SOP Price underpinned by: – Limited supply (~10% of market) with increasing demand – Mannheim product
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