Slide 1: Acquisition of the Cleveland Tin-Copper and Tungsten Project
elementos.com.au For personal use only MAY 2013 ASX Code: ELT Acquisition of the Cleveland Tin- Copper and Tungsten Project
Slide 2: Acquisition of Cleveland Mine
Acquisition of Cleveland Mine elementos.com.au Merger to create a diversified metals company, For personal use only including an advanced stage tin-copper and tungsten project, together with a number of prospective gold and copper assets in South America and Australia Share price1 2.5 cents Cash2 $0
Slide 3: Reasons to Invest
Reasons to Invest elementos.com.au Share price appreciation potential – transitioning from explorer to developer through For personal use only the acquisition of the Cleveland project Strengths: Advanced development project - approaching PFS stage with a number of key competitive advantages: ► JOR
Slide 4: Undervalued Compared to Peers
Undervalued Compared to Peers elementos.com.au Australian Tin Peer Valuation For personal use only Enterprise Value per tonne of JORC contained tin Kasbah Resources Venture Minerals Consolidated Tin Elementos Stellar Resources 0 50 100 150 200 250 300 350 400 Average $225/tonne Share prices 9 May 20
Slide 5: Merger Overview
Merger Overview elementos.com.au ELT to merge with Rockwell Minerals Limited (“Rockwell”) to create diversified For personal use only company with assets including: ► Cleveland - an advanced stage project with tin-copper and tungsten JORC Mineral Resources and significant exploration potential ► M
Slide 6: Merger Strategic Rationale
Merger Strategic Rationale elementos.com.au Merger of ELT and Rockwell has a strong strategic rationale: For personal use only ► Positions ELT with a more advanced asset, reducing the Company’s exposure to greenfield exploration ► Secures a new advanced stage project with near term development pot
Slide 7: North-West Tasmanian Tin Province
North-West Tasmanian Tin Province elementos.com.au Cleveland is located in north-west For personal use only Tasmania, Australia, approximately 80 kilometres south of Burnie Established mining province since early 1900s District has a number of high-grade, long life, iron ore, base and precious
Slide 8: World Class Minerals Field
World Class Minerals Field elementos.com.au The Cleveland project area covers the For personal use only northern margins and metamorphic aureole of the Meredith Granite The Meredith Granite is part of a suite of Devonian granites which are associated with numerous world class tin deposits in the
Slide 9: Large Tenement Holding
Large Tenement Holding elementos.com.au 96 square kilometres of prospective exploration ground held in three exploration permits: For personal use only ► EL7/2005 – covers historic Cleveland project site ► EL9/2006 and EL15/2011 – areas adjoining EL7/2005 9
Slide 10: Excellent Support Infrastructure
Excellent Support Infrastructure elementos.com.au Port – Container, cargo and bulk handling port at Burnie, an export port 80 For personal use only kilometres by road to the north-east, providing access to Asian smelters Roads - Adjacent to an all weather sealed road with access to Burnie Labo
Slide 11: Geological Snapshot
Geological Snapshot elementos.com.au At Cleveland, tin and copper mineralisation For personal use only occurs in a series of sedimentary rocks belonging to Hall’s formation, underlain by sandstones and overlain by volcanics Mineralisation in the sedimentary rocks originated from the Meredith gra
Slide 12: Redeveloping a Historic Tin Mine
Redeveloping a Historic Tin Mine elementos.com.au Historic underground mine operated by For personal use only Aberfoyle from 1969 to 1986 5.6Mt of ore processed at 0.68% tin and 0.29% copper to produce in concentrate: ► 23,519 tonnes of tin ► 9,691 tonnes of copper Cleveland was among the firs
Slide 13: Cleveland Mine & Tailings JORC Resource
Cleveland Mine & Tailings JORC Resource elementos.com.au Cleveland Tin and Copper Mineral Resources 31 March 2013 For personal use only (0.35% Sn cut-off grade) Tin Metal Cu metal % Sn Tin Eq Metal Category Tonnage % Sn % Cu (tonnes) (tonnes) Eq (tonnes) Indicated 4,239,000 0.70 30,000 0.28 12,000 0
Slide 14: Cleveland Mine Resource Model
Cleveland Mine Resource Model elementos.com.au Resource model For personal use only ► Mineral Resources have been estimated for the tin and copper in the individual lenses ► The tin and copper lenses occur in three main structural domains, separated by two flatly dipping faults - Ratchet and Nadir E
Slide 15: JORC Resources Database
JORC Resources Database elementos.com.au Aberfoyle’s mining database includes: For personal use only ► 2,040 drill holes totalling 134,000 metres ► 75,000 assay points for tin, copper, tungsten, lead and zinc ► Core from 87 diamond drill holes stored in the Mineral Resources Tasmania core facility;
Slide 16: Precedent for Deposit to Extend to Depth
Precedent for Deposit to Extend to Depth elementos.com.au The granite contact is estimated For personal use only to be ~4km below Cleveland Current mine development extends down to approximately 500 metres below the surface There are precedents for the possibility that mineralisation will exte
Slide 17: Tungsten Deposit
Tungsten Deposit elementos.com.au Top located approximately Cleveland Tungsten Mineral Resource 31 March 2013 For personal use only 500 metres below surface (0.2% WO3 cut-off grade) Contained WO3 Inferred Mineral Resource of Category Tonnage % WO3 (tonnes) 3.98Mt at 0.30% WO3 for Inferred 3,980,
Slide 18: Tungsten Deposit
Tungsten Deposit elementos.com.au Resource model For personal use only ► Tungsten mineralisation occurs as wolframite ([Fe,Mn]WO3) hosted in a quartz stock-work ► Tungsten bearing stock-work is considered to dip vertically and has a known strike length of 300 metres, an across strike width of up to
Slide 19: Mining
Mining elementos.com.au Mine historically a low-cost, open stoping operation For personal use only Significant underground mine development in place: ► 4 km decline development down to 500m via a 5.0m X 5.0m drive expanded to 5.5m² on curves ► More than 11km of underground development in place (
Slide 20: Simple Metallurgy and Processing
Simple Metallurgy and Processing elementos.com.au Tin and copper For personal use only Known process route to produce tin and copper concentrates: ► Tin primarily occurs principally as cassiterite (tin oxide) Copper occurs as chalcopyrite ► Historical tin and copper recoveries averaged 60% - best ti
Slide 21: Tin Prices – Current Prices Sustainable
Tin Prices – Current Prices Sustainable elementos.com.au Supply constrained and global mine production declining: For personal use only ► Chinese and Indonesian production in long-term structural decline ► San Rafael mine closure in 2018 to reduce global production by ~10% ► Few new, sustainable p
Slide 22: Tin Uses – Lead Free Solder Key Driver
Tin Uses – Lead Free Solder Key Driver elementos.com.au 2012 Tin Consumption by Usage^ For personal use only Float Glass 2% Brass & Bronze Other 5% 9% Chemicals 14% Solder 53% Tinplate 17% Lead free solder has transformed the tin market Non toxic – replaces lead and other toxic metals Excellent
Slide 23: Tin Supply – Structural Changes Underway
Tin Supply – Structural Changes Underway elementos.com.au Indonesian Supply Declining1 Issues affecting global tin supply: For personal use only Tin grades are declining and mines are getting deeper Costs of production are rising Capital costs are too high - current prices do not justify inves
Slide 24: Tin Demand- Steady Growth
Tin Demand- Steady Growth elementos.com.au Sustainable growth New markets For personal use only ► China accounts for nearly half of ► New product development in the global demand modern consumer electronics ► Lead free solder demand growing market key driver – the electronics age plus ► Lithium ion
Slide 25: Next Steps
Next Steps elementos.com.au Complete Rockwell merger – expected in late June/early July 2013 For personal use only Cleveland development activities in progress and planned include: ► Environmental permitting and Mining Lease applications ► Plan a dewatering program to re-establish access to the
Slide 26: Summary
Summary elementos.com.au For personal use only Advanced tin-copper resource – approaching PFS stage Underground mine development already in place – significant future capital cost saving Potentially large scale tungsten resource Significant exploration potential in both tin and tungsten depo
Slide 27: Disclaimer
Disclaimer elementos.com.au COMPETENT PERSON STATEMENT For personal use only The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Michael V. McKeown of Mining One Consultants, a Fellow of the Australasian Institute
Slide 28: Contacts
Contacts elementos.com.au Elementos Limited For personal use only ACN 138 468 756 Level 8, 26 Wharf Street tel: +617 3221 7770 Brisbane, Queensland, Australia fax: +617 3221 7773 www.elementos.com.au For enquiries regarding this presentation please contact: Corey Nolan – Managing Director email: adm