Ionic Rare Earths Limited · ASX:IXR
Ionic Rare Earths — Investor Presentation (November 2020)
21 slides from Ionic Rare Earths's investor presentation, Nov 27, 2020
Slide 1: Investor Presentation: Makuutu Heavy Rare Earths Project
For personal use only Investor Presentation Makuutu – a Long Life, Low-Cost & High-Value, Critical Heavy Rare Earths Project 27 November 2020
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation should be considered in its entirety. If you do not understand the material contained in this presentation, you should consult your professional advisors. The sole purpose of this presentation is to provide shareholders with an
Slide 3: A Major, Low-Cost Rare Earths Development Opportunity
A Major, Low-Cost Rare Earths Development Opportunity For personal use only IonicRE developing the Makuutu Rare Earths Project • Makuutu is a strategically / geopolitically significant Rare Earth Elements (“REE”) project located in Uganda, at advanced exploration and development study stage • Confir
Slide 4: Development highlights since Acquisition (Aug 2019)
Development highlights since Acquisition (Aug 2019) For personal use only • Announced a Mineral Resource of 76.8 Mt @ 840 ppm Total Rare Earths Oxide (TREO) 1, at a cut-off grade of 300 ppm TREO-Ce2O3; while maintaining its Exploration Target at: 270 - 530 million tonnes grading 0.04 – 0.1% (400 – 1
Slide 5: Pending Mineral Resource Estimate Update
Pending Mineral Resource Estimate Update For personal use only Material update expected in Q1 2021 to support substantial increase in Project scale • Recently completed Phase 2 drill program included 3,745 metres of drilling from 222 holes • Exploration Target covers 21km2 in total • Drilling tested
Slide 6: Existing Mineral Resource Estimate (MRE)
Existing Mineral Resource Estimate (MRE) For personal use only • 903m of drilling in 2019 and 2020 defining MRE, with new drilling (+3,745m) set for material increase • Existing MRE covers less than 25% of Exploration Target area • Makuutu Mineral Resource Estimate1 reported above a 300 ppm TREO les
Slide 7: Makuutu Eastern Zone – Extending the trend
Makuutu Eastern Zone – Extending the trend For personal use only Makuutu Eastern Zone (EL 1766) showing elevated Heavy Rare Earth content following basin margin east • Radiometric anomaly and basin margin confirmed as limits of REE ionic clay mineralisation • REOs confirmed on boundary of EL 1766 ex
Slide 8: Beyond the Eastern Zone…
Beyond the Eastern Zone….. For personal use only Additional footprint applied for to further increase the scale of the Makuutu Rare Earths Project • Applications for new Exploration Licenses submitted to DGSM in Uganda in Oct 2020 • Radiometric anomaly demonstrated as very strong proxy for REE ionic
Slide 9: Metallurgy and Processing
Metallurgy and Processing For personal use only Simple Heap Leach process selected using dynamic heaps • Sequential / Counter-Current REE extraction via salt desorption using Ammonium Sulfate ((NH 4)2SO4) & Sulfuric Acid (H2SO4) • Heap leaching using H2SO4 analogous with Cu heap leaching with 5-10 g
Slide 10: Tier-One Infrastructure already there!
Tier-One Infrastructure already there! For personal use only Logistics • Approximately 10 km from Highway 109, connecting Makuutu to both capital city Kampala and Port of Mombasa, Kenya • Approximately 20 km from rail line connecting to Port of Mombasa Power • Large hydroelectric generation capacity
Slide 11: Advantage of Ionic Adsorption Clays (IAC)
Advantage of Ionic Adsorption Clays (IAC) For personal use only Significant project and cost advantages with ionic clay projects like Makuutu vs hard rock REE projects Comparison above of two baskets1; • Bastnaesite at Mountain Pass (USA) on left with nearly 80% made up of low value La,Ce product, b
Slide 12: Advantage of Ionic Adsorption Clays (IAC)
Advantage of Ionic Adsorption Clays (IAC) For personal use only Significant project and cost advantages with ionic clay projects like Makuutu vs hard rock REE projects MINING/PROCESSING STAGES MAKUUTU HARD ROCK-HOSTED REE IONIC ADSORPTION CLAY (IAC) ✓ Soft material, negligible (if any) blasting Ha
Slide 13: China’s REE Dominance – Key Role of IACs
China’s REE Dominance – Key Role of IACs For personal use only Handful of LREE mineral mines with numerous small scale HREE Ionic Adsorption Clay operations • China derives the bulk of the REE production for a handful of mineral REE mines that produce LREE mineral concentrates; • 3 LREE mines produc
Slide 14: China’s REE Dominance – Depletion of IACs
China’s REE Dominance – Depletion of IACs For personal use only Excessive and illegal mining of IACs depleted reserves and drove implementation of quotas → Not easily replaced • China implemented controls in 2006 – China began to exercise total amount control over REE exploitation & put a limit on t
Slide 15: Makuutu Basket – Strategic Alternative for CREO/HREO
Makuutu Basket – Strategic Alternative for CREO/HREO For personal use only Makuutu Preliminary Product Basket3 • Product generated from metallurgical optimisation testwork 1 infers basket price of approx. US$38.70/kg REO2 La; 13.0% • Ionic Adsorption Clay (IAC) products achieve payability of 70-80%,
Slide 16: Conceptual REO Production Profile
Conceptual REO Production Profile For personal use only Simple & Modular expansion of REO production Average ROM Plant Throughput (Mtpa) REO Production 2.5 Mtpa 5.0 Mtpa 7.5 Mtpa 10.0 Mtpa • Concept of one initial module rate for 2.5 million tonnes per annum would produce a 33 year Life of (t/a) (1
Slide 17: Activity Completed – The past months
Activity Completed – The past 12 months For personal use only COMPLETED Re-assay of selected historical samples confirms presence of Rare Earths First-pass metallurgy confirms presence of ionic-clay hosted REEs Initial Core Drilling Program Phase 1 Metallurgical Testing recovers up to 75% TREE-Ce JO
Slide 18: Target Pathway to Development – Next 12-24 months
Target Pathway to Development – Next 12-24 months For personal use only COMMENCE BY COMPLETE BY Receipt of Renewal of RL 1693, EL applications awarded In progress Q4 2020 Mineral Resource Update After final assays Q1 2021 Updated Scoping Study In progress Q1 2021 Environmental and Social Impact Asse
Slide 19: IonicRE Value Proposition
IonicRE Value Proposition For personal use only Makuutu – a Long Life Asset to Supply Low-Cost, High-Value Critical & Heavy Rare Earths • A unique opportunity – vastly different to the numerous REE hardrock projects looking for financing • Exploration Program has defined Mineral Resource Estimate wi
Slide 20: Ionic Rare Earths Limited Corporate Snapshot
Ionic Rare Earths Limited Corporate Snapshot For personal use only CAPITAL STRUCTURE (As At 18/11/2020) SHARE PRICE (ASX: IXR) (Last 12 months) Covid-19 $0.020 Shares Outstanding 2,751,628,086 $0.018 $0.016 425,800,000 $0.014 Total Options Outstanding $0.012 (exercisable at 0.75 to 1.8 cents) $0.010
Slide 21: Ionic Rare Earths Limited
For personal use only Ionic Rare Earths Limited Level 1, 34 Colin Street T +61 8 9481 2555 West Perth WA 6005 Australia F +61 8 9485 1290 www.ionicre.com.au
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