Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (September 2012)
27 slides from Northern Minerals's investor presentation, Sep 10, 2012
Slide 1: Investor Presentation - Asian Roadshow
For personal use only Investor Presentation - Asian Roadshow 10 September – 21 September 2012 George Bauk Managing Director/CEO
Slide 2: Important Notice
Important Notice For personal use only This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or inv
Slide 3: Agenda
Agenda For personal use only Company Overview Value Proposition Rare Earths • Market • Browns Range - Pathway to Production • John Galt Gardiner-Tanami Project In Summary 3
Slide 4: Capital Structure
Capital Structure For personal use only ASX Codes NTU Ordinary Shares 213.5M* Listed Options NTUOA $0.20 expires 30 Sept 2012 7.6M Unlisted Options and Performance Rights Various prices and expiry dates 18.0M# Trading Summary Market Capitalisation (in AUD) $63M (as at 6 September 2012 @ $0.295) Majo
Slide 5: Board & Management
Board & Management For personal use only George Bauk Adrian Griffin Kevin Schultz Dudley Kingsnorth Colin McCavana Managing Director / CEO Non Executive Director Non Executive Chairman Non Executive Director Non Executive Director - 20+ years mining operation - Specialising in mine - Formerly Managi
Slide 6: Value Proposition
Value Proposition For personal use only Vision To become the global benchmark in the production of heavy rare earth elements for the benefit of all our stakeholders Strategy • $90M concentrator built at Browns Range Project by end of 2014 • To produce and deliver sufficient supplies of HRE for a div
Slide 7: High Value Heavy Rare Earths
High Value Heavy Rare Earths For personal use only Point of difference “Heavies” Outstanding Drill Results Coupled with a low capital/ operating cost Browns Range Project Wolverine: 24m @ 2.18% TREO (2,072ppm Dy2O3) from 96m (to EOH) including 7m @ 5.35% TREO (5,151ppm Dy2O3) from 112m (to EOH), 33m
Slide 8: Two key heavy rare earths
Two key heavy rare earths For personal use only 66 Additive for NdFeB magnets to increase Dy performance at high temperatures ie. hybrid vehicles and wind turbines Dysprosium Hybrid Vehicle Motor 39 Possesses high melting point and Y ideal for energy efficient lighting in the substitution of traditi
Slide 9: HRE – Global Critical Status
HRE – Global Critical Status For personal use only Dysprosium Short-Term (0–5 years) Criticality Matrix • Dysprosium identified as “critical” by the US Energy Department, triggering US action. • Confirmed as significant component of China strategic stockpile, commencing July 2012. • Substitutes give
Slide 10: Global policy driving demand
Global policy driving demand For personal use only Kyoto Protocol CO2 = Emission reduction 10
Slide 11: HRE supply shortfall
HRE supply shortfall For personal use only Strong Demand, Limited Supply • Strong demand but where’s the supply? • China to eliminate inefficient and “dirty” processing by eliminating 20% domestic capacity (China Min of Com August 7 2012). • LREO:HREO split in China export quotas exacerbating HREE s
Slide 12: Browns Range Project
Browns Range Project For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV) • Entered into Joint Venture with Toro Energy on 7 tenements in NT to earn up to 80% by completed FS • Significant new HRE discoveries in 2009 - 2011 • Focus to date on the Western
Slide 13: Stakeholder Engagement / Environment
Stakeholder Engagement / Environment For personal use only Stakeholders Engagement • Heritage Survey completed in July approving the balance of our 2012 Browns Range program • 2 Cultural Awareness Workshops completed, on- site workshop planned for October • Employed 7 people from Ringer Soak/Halls C
Slide 14: Flowsheet Development
Flowsheet Development For personal use only Beneficiation Process • Successful testwork by Nagrom indicates excellent recovery (>80%) across head grades ranging from ~0.25% to ~1.0% • High-grade mineral concentrate containing 30% TREO produced • Optimisation testwork underway Hydrometallurgical Proc
Slide 15: Simplified Process Flowsheet
Simplified Process Flowsheet For personal use only Rare Earth Browns Upstream Range and Mid– Stream HRE Project Supply Simplified Chain Process and Flowsheet Process MINING BENEFICIATION Pathway to HYDROMETALLURGY REFINING Production Mixed Chemical Concentrate Separated RE Oxides 2015 Mineral Concen
Slide 16: Pathway to Production
Pathway to Production For personal use only 16
Slide 17: Browns Range Landsat
Browns Range Landsat For personal use only 17
Slide 18: Browns Range – Wolverine
Browns Range – Wolverine For personal use only • East-west trending quartz breccia fault zone - HRE mineralisation identified over a strike length of 200m and widths of 2-25m. • Best drill intercepts to date: • 24m @ 2.18% TREO (2,072ppm Dy2O3) from 96m (to EOH) • 33m @ 1.53% TREO (1,470ppm Dy2O3) f
Slide 19: JORC Resource Drilling – Wolverine
JORC Resource Drilling – Wolverine For personal use only • Drilling re-commenced at Wolverine in June 2012 (RC and Diamond) – results pending • Diamond drilling testing for mineralisation at depth and RC drilling to test for east and west strike extensions • Visual indications and field portable XRF
Slide 20: Browns Range – Gambit
Browns Range – Gambit For personal use only • 57 RC Drill holes completed in 2011 and 3 Diamond drill holes in 2012 - within area 600m x 200m of 2km long soil geochemical target • Multiple mineralised zones with complex geometries – pipelike plunging shoots (38m (45-83m) @ 4.15% TREO) • Further RC a
Slide 21: Browns Range – New Targets
Browns Range – New Targets For personal use only • Area 5 – Diamond and RC drilling completed – assays pending • Mystique – First-pass RC Drilling completed (assays pending) – 1km long soil geochemical target • Banshee – RC Drilling currently underway – high grade HREE (up to 14% TREO in rock chips)
Slide 22: Pipeline of Prospects
Pipeline of Prospects For personal use only Production Reserves Resources Wolverine Gambit Significant Drilling Area 5 Area 5 North Intersections Banshee Mystique Geochemical or Wolverine East Wolverine West Nightcrawler Rogue Geophysical Drill Targets Cyclops Sabretooth Wolverine North Conceptual B
Slide 23: Regional HRE
Regional HRE For personal use only • Granting of NT tenements in August 2012 in the eastern portion of the HREE prospective region of Browns Range Dome. • Reconnaissance HREE exploration program planned to commence on new NT Browns Range tenements in late 2012 - airborne geophysics and reconnaissanc
Slide 24: John Galt HRE Project
John Galt HRE Project For personal use only • Northern Minerals has option to acquire 100% of the project • Similar mineralisation to Browns Range – high value HRE in xenotime • Xenotime-hosted mineralisation identified at three different zones by previous explorers • Historical drilling results at
Slide 25: John Galt HRE Project
John Galt HRE Project For personal use only • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock sour
Slide 26: Gardiner-Tanami Project – Gold
Gardiner-Tanami Project – Gold For personal use only • Process underway to seek potential investors for the Gardiner-Tanami Project • Initial divestment flyer due to be distributed in September • Project located within Tanami Arunta region – a world-class gold province, with several plus million oun
Slide 27: In Summary
In Summary For personal use only Strategy Browns Range Project To produce and deliver HREO concentrate in 2015 2012 “Pathway to Production” • Deliver JORC resource at Browns Range • Ongoing exploration to build mineral inventory • Complete Pre-Feasibility Study • Advance HREO strategic off-take part
Northern Minerals — Investor Presentation (September 2012) on 6ix