Galileo Resources Plc · LSE:GLR
Galileo Resources — Investor Presentation (September 2011)
23 slides from Galileo Resources's investor presentation, September 2011
Slide 1: Presentation September 2011
We know Rare Earths are there How much? Presentation September 2011 Shooting for the stars 1
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS
Slide 3: Galileo is Focused: Mission Statement
Galileo is Focused Mission Statement • To process the Glenover Rare Earth & Niobium stock piles • To explore, increase & exploit Glenover Primary source for Rare Earths & Niobium • Develop strategically placed North Eastern Cape quarry • To prospect & explore properties around South Africa in Mangan
Slide 4: Location Of Project
We are diverse with one big project: Glenover Phosphate Location Of Project Glenover Phosphate Project Calais 470 Santoy 230 Portion 1: Waldeck West Matesang 492 Gamasep 485 Kapok 733 Portion 1: Gamaliets 659 Leinster 222 Brightwater Quarry Project Projects Exploration sites 4
Slide 5: Why Rare Earth?
Who knew much about Rare Earths two years ago. Chinese changed that! Why Rare Earth? • Possess numerous unique properties, making them indispensable to modern technology required to sustain the needs of today’s society • “Green” technologies such as fuel cells, hybrid vehicles, wind turbines • China
Slide 6: Rare Earth Supply & Demand
There’s a big market to be supplied against real constraints Rare Earth Supply & Demand Source: Technology Minerals The Rare Earths race is on! Ernst & Young April 2011 6
Slide 7: Rare Earths Quotas
Chinese have really put the brakes on! Rare Earths Quotas 2010 2011 Feb 2011 China’s State Council says it will Nov 2010 China resumes Strengthen oversight of the shipments of rare earths to Japan Rare earths industry Jul 2011 Beijing brings 2011 export Jul 2010 Beijing slashes export Quotas to the
Slide 8: Applications
It is all about today’s life Applications More energy efficient through lower consumption Hybrid Vehicles Compact Fluorescent Lights Fluid Cracking Catalysts Improve Environmental protection – reduce greenhouse gas emissions Diesel Additives Auto Catalysts Wind Turbines Enabling digital
Slide 9: Glenover Rare Earth & Niobium Project
Early production opportunities, huge medium term potential Glenover Rare Earth & Niobium Project • Short time to market and to realize investment returns: existing stockpiles of REE-rich minerals have already been mined and are ready for processing • Highly accessible REE: stockpile material has low
Slide 10: Glenover Rare Earth & Niobium Project: Stockpile Resource
We have a big Stockpile already. No mining risk there! Glenover Rare Earth & Niobium Project PHOSPHATE/REE INDICATED/INFERRED RESOURCE Resource Above Surface Below Surface Mineralization (indicated/inferred) (indicated/inferred) P2O5 +33% 280,000 Breccia TREO 1,75% Apatite, Monazite, Nb2O5 0.25% Cer
Slide 11: Good spread of much sought after elements
Good spread of much sought after elements Glenover Rare Earth & Niobium Project SAMPLE & ANALYSIS (SUMMARY) • A sample of the above ground stockpile was found to contain around 1.6% Total Rare Earth Oxides (“TREO”) • Approximately 80% of the REE value in Nd and Pr • The remaining material also conta
Slide 12: Good values in stockpiled material
Good values in stockpiled material Glenover Rare Earth & Niobium Project SAMPLE & ANALYSIS (DETAIL) Grade (%) Mass Size Fraction (%) La Nd Eu Ce Er Total REO discrete Mg Al Si Ca Ti Mn Fe2O3 P2O5 Nb Y [ppm] Pr [ppm] [ppm] [ppm] [ppm] [ppm] [ppm] [ppm] -20+1.7mm 49.7 0.56 0.64 3.18 21.10 1.23 0.28 25
Slide 13: Lots of action before we got there!
Lots of action before we got there! Glenover Rare Earth & Niobium Project Glenover Open Cast Mine Developed by Goldfields – mining stopped in 1990’s Glenover Dumps 13
Slide 14: Glenover Rare Earth & Niobium Project
Glenover Rare Earth & Niobium Project 14
Slide 15: Proposed Costing & Timeline
Moving fast to supply the market demand Glenover Rare Earth & Niobium Project PROPOSED COSTING & TIMELINE Milestone Stage Detail Development Project Duration (mo) Cumulative Costs (USD) CAPEX (USD) Duration (mo) Milestone 1 Conceptual Mineralogy 90,000 4 Accuracy to Scoping 15% Study 12 Resource A/S
Slide 16: Brightwater Quarry
Good position and complements main Glenover mission, aim is to minimise equity dilution to shareholders Brightwater Quarry • Primarily a hard dolerite/norite reserve covering an area of 14 hectares • Entire deposit is well exposed • Quarry has been previously worked for the supply of road aggregates
Slide 17: Prospecting/Mining Rights
Good rights in highly prospective environments Prospecting/Mining Rights Exploration Site Location Rights details and status Remainder portion 1 110km from Upington, Prospecting right granted for Manganese and Iron Ore Waldeck West no 254 Northern Cape, RSA Remainder portion 1 30km from Prospecting
Slide 18: Programme
Mission clear. Direction clear. Getting on with it Programme • Mineralogical & Metallurgical testwork • Design flowsheet for Rare Earths • Develop Feasibility Study • Explore primary deposit to increase Rare Earth Ore Resource • Develop Rare Earth large Extract Facility • Concurrently develop Roadst
Slide 19: Board Of Directors
Lots of experience, commitment and achievement Board Of Directors Colin Bird is a chartered mining engineer with multi commodity mine management experience in Africa, Spain, Latin America and the Middle East. He has been the prime Colin Bird Executive mover in a number of public listings in the UK,
Slide 20: Advisory Group
Sound Advisory Team Advisory Group Registered Office Company Secretary 4th floor, 2 Cromwell Place Anthony Shakesby London SW7 2JE Nominated Adviser (and Solicitors to the Nominated Reporting Accountants Broker) Adviser Saffery Champness Lion House, Red Lion Street Beaumont Cornish Limited Fladgates
Slide 21: Share Price Structure
Reverse Takeover Aim listed and realistic entry market capitalisation Share Price Structure • Issue new shares to Great Eastern Trading for the acquisition of Skiptons Global Investments • Issue new shares for cash • Total number of shares in issue following transaction: • Market Capitalisation: 21
Slide 22: Compelling Investment Case
Well balanced with above average Rare Earth Project Compelling Investment Case • Quality, near cashflow, strategic position • Glenover Rare Earth above average, since ready for production build & a major Rare Earth Resource • Strong Partners • Dilution minimized by cash flow from Quarry Operations •
Slide 23: Contact Details
We are easy to reach Contact Details United Kingdom: South Africa: Colin Bird Unit 8, Block B, 1st Floor, 4th Floor Stoney Ridge Office Park, 2 Cromwell Place Cnr Witkoppen and Waterford Place Kleve Hill Park, Paulshof, 2068 South Kensington SW7 2JE Tel: +27 (0)11 465 1913 Tel: +44 (0)207 581 4477 F
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