Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Investor Presentation (November 2015)
20 slides from Sheffield Resources's investor presentation, Nov 27, 2015
Slide 1: Thunderbird Pre-Feasibility Study
PRE FEASIBILITY STUDY For personal use only THUNDERBIRD World’s Best Undeveloped Mineral Sands Project ASX : SFX | NOVEMBER | 2015 www.sheffieldresources.com.au
Slide 2: Disclaimer
DISCLAIMER PREVIOUSLY REPORTED INFORMATION This report includes information that relates to Exploration Results which were prepared and first disclosed For personal use only under the JORC Code 2012. The information was extracted from the Company’s previous ASX announcements as follows: “PRE-FEASIBI
Slide 3: Key Points - Thunderbird
WORLD’S BEST UNDEVELOPED MINERAL SANDS PROJECT KEY POINTS - THUNDERBIRD For personal use only • PFS confirms low risk, high margin, long life mining project • Pre-production capital reduced by 26% to A$271 million1 • Capital payback period reduced to 3.4 years • Mine life extended to 40 years, with
Slide 4: Corporate Summary
CORPORATE SUMMARY CORPORATE SNAPSHOT DIRECTORS & MANAGEMENT For personal use only ASX Code SFX Will Burbury Non-executive Chairman Issued Shares1 150.3M Bruce McFadzean Managing Director Employee Options (Ave. Ex Price 68c) 7.4M David Archer Technical Director Share Price (24 Nov 2015) A$0.46 Bruce
Slide 5: Sheffield Resources
SHEFFIELD RESOURCES • Listed on ASX December 2010 For personal use only • Flagship: Thunderbird Mineral Sands – a Tier 1 project • From initial drill hole to PFS in 3 Years • Targeting first production from Thunderbird early 2019 • First mover status in Canning Basin mineral sands province • Drill-r
Slide 6: Thunderbird – Tier 1 Project
THUNDERBIRD – TIER 1 PROJECT For personal use only • Amongst the world’s largest and highest grade deposits • Thunderbird’s high zircon and titanium mineral grades set it apart from others globally Thunderbird Mineral Resource ranked against current mineral sands operations and projects under invest
Slide 7: Thunderbird Mineral Sands Deposit
THUNDERBIRD MINERAL SANDS DEPOSIT For personal use only • Key to Thunderbird is the thick, continuous High Grade Zone Total Resource at 3% HM cut-off • This zone occurs at surface in the northern part of the deposit • Deposit geometry favours large scale mining N S LEGEND b Block Model Grade >3% HM
Slide 8: Thunderbird Resource
THUNDERBIRD RESOURCE Thunderbird High Grade Mineral Resource at 7.5% HM cut-off 31 July 2015 For personal use only Mineral Resources 1 Valuable HM Grade (in situ) 2 • Globally Significant Material HM Zircon HiTi Leuc Leucoxene Ilmenite Resource >1Bt at 11.9% HM Mt % % % % % Measured 110 14.9 1.09 0.
Slide 9: Mining Inventory and Physicals
MINING INVENTORY AND PHYSICALS • Mining Inventory used for the PFS Update comprises 685Mt at 11.3% HM1 For personal use only • With in-situ grades of 0.87% zircon, 0.27% HiTi leucoxene, 0.28% leucoxene and 3.13% ilmenite1 • This equates to 40 years of scheduled production with initial production at
Slide 10: Conventional Processing
CONVENTIONAL PROCESSING • Thunderbird mineralisation will be processed through a conventional heavy mineral sands processing For personal use only circuit to deliver a suite of zircon, ilmenite, and HiTi88 products1 • The process includes an ilmenite upgrade step using a low temperature (450o for 15
Slide 11: Infrastructure and Logistics
INFRASTRUCTURE AND LOGISTICS Mining & Site Infrastructure For personal use only • Dry mining rate of 12mtpa, ramping up to 18Mtpa by Year 8 • Conventional dozer trap mining • Mining commences in shallow northern sector of deposit • WCP, MSP, & initial tailings dam adjacent to deposit • Only 2 WCP mo
Slide 12: Capital Costs
CAPITAL COSTS • Total pre-production capital required to COST AREA A$M For personal use only develop the project is estimated to be Pre-production owners cost A$296.6 million Sub-total pre-production owners cost 19.7 Project direct costs Mining1 6.8 Process Water System 9.0 Wet Concentrator Plant 42
Slide 13: Revenues
REVENUES For personal use only Primary Ilmenite LTR PRODUCT LOM TONNES LOM REVENUE (A$M) 1% Ilmenite Zircon 4,006,000 6,910 32% HiTi88 1,052,000 995 LTR Ilmenite 15,283,000 3,821 Zircon Primary Ilmenite 559,000 103 59% TOTAL PRODUCTS 20,900,000 11,829 HiTi 88 Production and Revenue Totals LOM 8% LOM
Slide 14: Key Financial Outcomes and Assumptions
KEY FINANCIAL OUTCOMES AND ASSUMPTIONS For personal use only FINANCIALS Key Item A$M LOM Revenue (LOM total) A$M 11,829 Operating Cash Flow (LOM Average) A$M pa 149 EBITDA (LOM Average) A$M pa 135 EBIT (LOM Average) A$M pa 122 Key Item A$/tonne of LOM Unit Revenue product 566 Unit Revenue MUP feed 1
Slide 15: Marketing Study – Product Assessment by TZMI
MARKETING STUDY – PRODUCT ASSESSMENT BY TZMI Zircon (59% of revenue) For personal use only • Primary zircon product meets the requirements for premium classification for use in the ceramic sector LTR Ilmenite (32% of revenue) • LTR ilmenite (56.1% TiO2) is suitable feedstock for sulphate pigment man
Slide 16: Thunderbird Analogy
THUNDERBIRD ANALOGY TRONOX’S NAMAKWA PROJECT1 THUNDERBIRD PFS METRICS For personal use only Commenced mining in 1994 (+30 year life) +40 year mine life Reserves (2012) 432Mt @ 8.8% HM Mining Inventory2 685Mt @ 11.3% HM In situ grades: 0.80% zircon, 0.22% rutile, In situ grades: 0.87% zir
Slide 17: Key Points – Next Steps and Upside Potential
KEY POINTS – THUNDERBIRD MINERAL SANDS PROJECT NEXT STEPS UPSIDE POTENTIAL For personal use only • Secure exclusive port access - completed • Potential CAPEX and OPEX savings in lower cost environment • Appointment of BFS Study Manager - completed • Optimisation of process design, increasing efficie
Slide 18: Fraser Range - Red Bull: High Priority Target
FRASER RANGE - RED BULL : HIGH PRIORITY TARGET TO BE DRILLED IN COMING MONTHS • Red Bull project is within 20km of the Nova Ni-Cu deposit For personal use only • Coincident bedrock conductor and nickel geochemical target identified at Stud prospect • Modelled bedrock conductor of 500m x 500m, depth
Slide 19: Appendix 1: Thunderbird Deposit Mineral Resource
Appendix 1: Thunderbird Deposit Mineral Resource 31 July 2015 Thunderbird Deposit Mineral Resource1 For personal use only HiTi Leucox Ilmenit Resource Cut off Zircon Leucox Total VHM ene e Category (HM%) (kt) ene (kt) (kt) (kt) (kt) Measured 3.0 1,700 500 500 5,800 8,400 Indicated 3.0 14,000 4,500 5
Slide 20: Appendix 2: Thunderbird – Zircon and Titanium Product Stream
Appendix 2: THUNDERBIRD – ZIRCON AND TITANIUM PRODUCT STREAM Thunderbird HMS For personal use only Deposit HiTi 88 LTR Ilmenite Zircon Chloride Slag Sulphate Slag Sulphate Pigment Process LTR Ilmenite 32% Zircon 59% HiTi 88 8%
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