Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (February 2016)
30 slides from Northern Minerals's investor presentation, Feb 4, 2016
Slide 1: Northern Minerals February 2016
For personal use only FEBRUARY | 2016 | ASX:NTU
Slide 2: Important notice
Important notice 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 invitation with respect to
Slide 3: Browns Range Project: first significant dysprosium producer outside China
Das best in class Northern Minerals’ ~ 100% owned Browns Range Project - is positioned to be the first significant ~ world producer of dysprosium alae =S . . NORTHERN @ outside of China. ‘ eee TERRITORY Cc = Halls Broome Creek ¢ - The Project will deliver dysprosium and other @ heavy rare earths tha
Slide 4: For personal use only
For personal use only High $0.235 Low $0.062
Slide 5: For personal use only
For personal use only • • • • • • • • • •
Slide 6: Over the past six years
Over the past six years - Drilling confirms HRE at Wolverine, Gambit and Area 5 - Beneficiation flowsheet developed - Funds raised $2.0M - Secured cornerstone investor ACIIG - JORC resource upgrade 28,084,000kg - Funds raised $38.9M - Upgrade of JORC resource 56,663,000kg and Ore Reserve 26,375,000k
Slide 7: Positioned for success
For personal use only Positioned for success Browns Range Project competitive advantage Exploration potential @ Large landholding 1,500km? 12% explored Current mineral Tesource 4,759,000kg dysprosium within 56,663,000kg TREO Mineralogy & production High grade Xenotime mineralisation Ease of processi
Slide 8: Browns Range: pathway to full scale production
Browns Range: pathway to full scale production Stage 1 TEST PILOT PLANT Stage 2 DEVELOP PROJECT Stage 3 BUILD FULL SCALE @ 60,000tpa capacity @ 52% TREO mixed RE carbonate @ 590,000kg pa TREO for 3 years, including 49,000kg Dy ®@ Initial operation excludes yttrium rejection Powering Technology. Redu
Slide 9: Mine and ore bodies process
For personal use only mine and ore bodies process
Slide 10: Pilot plant: Browns Range
Pilot plant: Browns Range ® 172,000t @ 119% TREO, campaign mined from multiple open pits ® 3 year operation producing 49,000kg dysprosium in 590,000kg TREO contained in a mixed RE carbonate (REC) per annum ® Two stages of processing on site: beneficiation 60,000tpa and hydrometallurgical 3,200tpa ®
Slide 11: Mining and production process flowsheet
For personal use only Mining and production RE [ Precipitation (Sodium Carbonate) Filtration lon —— MINING M : ; z I l [—— BENEFICIATION process flowsheet Sr =i Wet Magnetic fo) i) Separation Flotation roMon ‘at | po: Crushing ae Ub Milling Tails Fiitration (I) | | (TTT ON re Mineral Tailings Storag
Slide 12: For personal use only
For personal use only Figures may not add due to rounding TREO = Total Rare Earth Oxides- Total of Dy2O3,La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
Slide 13: Pilot plant: key testwork
Pilot plant: key testwork Beneficiation ®@ Flotation reagent selection ®@ Grind size ®@ Site water quality ®@ Flotation temperature ®@ Magnetic separation variables ®@ Ability of equipment to operate at extreme temperature ®@ Gangue depressant reagent regime ® Deposit variability @ X-ray sorting via
Slide 14: Pilot plant: approvals and stakeholders
Pilot plant: approvals and stakeholders Department of Mines and Petroleum ®@ Advised of trial mine and pilot plant @ Project Management Plan ®@ Mining Proposal including closure plan Environmental Protection Authority @ Advised of trial mine and pilot plant ®@ Fauna clearance prior to vegetation cle
Slide 15: Stage 2: develop Browns Range to BFS
Stage 2: develop Browns Range to BFS mining costs production CREATE == premium product INCREASE reserve Through modification of mining method Through increase in ore head grade Through removal of yttrium Through drilling Distribution of mixed rare earth carbonate following yttrium removal 15 NORTHER
Slide 16: DFS data
DFS data: 585,000tpa @ 0.66% TREO, open pit and underground mining 11 year operation producing 279,000kg dysprosium in 3,098,000kg TREO contained in a mixed RE carbonate Two stages of processing on site: beneficiation and hydrometallurgical plants TREO recovery: 87% beneficiation and 93% hydrometall
Slide 17: Dysprosium demand growth drivers
15-20% annual growth in Dy demand to 2020° Transportation l 12-14% share of global NdFeB demand in 2020° Renewable Energy l 6-10% annual growth in Dy demand for energy storage systems to 2020* Technology J Dysprosium Nd Neodymium Pr Praseodymium 5 million China's target of hybrid & electric vehicles
Slide 18: Dy delivers optimal performance
Dy delivers optimal performance The addition of Dy allows these magnets to work at higher temperatures, this aa is essential in the NdDyFeB operation of high magnets performance applications “s = Nd | Pr Neodymium §[Praseodymium| Powering Technology. ga “~L
Slide 19: Global magnet market
Global magnet market ~“\ares r | market to | | | | | grow ata CAGR of 7.1% Nd, Pr 2.5% Magnets SOesS Dysprosium —Terbium Neodymium —Praseodymium Breakdown of value contribution - NdFeB magnet market Browns Range Project consumption by region 2014 et . NORTHERN Powering Technology. 19 MINERALS
Slide 20: Browns Range Dome: under explored
Browns Range Dome: under explored ae : ae The dome is a massive geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t been effectively explored [Inting Lease mm Minerale Tenement Appicaton «© ‘Nother Merle RE Mineral Resource rergyNothetn Minerals WV Terements © Nother
Slide 21: Five-fold increase in Mineral Resource
F ive-fo l d 56,663,000kg contained TREO 7 5 Mi Wolverine | n Cc rea S e I n MM Gambit West 47,997,000kg 60,000,000k3 Mi Area 5 contained TREO = 91,000 . Gambit $494,000 Mineral I eonshee ‘oo 4.347.000 MBI) @ Cyclops 4,177,000 40,000,000kg Resource 72084 600K6 woe contained TREO 30,000,000kg TREO 4,
Slide 22: Six years is only the beginning
11 years is only the beginning A Production 5.054 00K Wolverine 294, g Gambit West Curren eee Reserves 26,375,000kg TREO ca Resource Area 5 2 Wolverine » Current Resource ize AASBOOOKS ACS 56,663,000kg TREO Resources! Ss y) | ] Cyclops \ - = t Nightcrawler Significant Drilling fu i Mystique @ Polari
Slide 23: Extend mine life by increasing resources
Extend mine life by increasing resources OPEN.... Gambit, Gambit West and Area 5 pen near surface and open at depth, ho drilling below 200m NORTHERN MINERALS Br Powering Technology. NORTHERN MINERALS Browns Range Project OPEN... Wolverine deposit open at depth and along strike, no drilling below 550
Slide 24: Stage 1: key next steps
Stage 1: key next steps Approvals Utilise existing approvals on a smaller scale Costings Finalise capital and operating cost estimates Offtake Engage partner, discussions underway . . Modelling underway, data room under Financing development, engaged Argonaut Powering Technology.
Slide 25: Appendices
For personal use only APPENDICES N NORTHERN MINER. ALS
Slide 26: Probable Ore Reserve (March 2015)
Probable Ore Reserve (March 2015) REO Dy,O Se) fe) Depo atio Ore g g g g g g g g O ontained O ed O ed ontained OPEN PIT Wolverine Probable 833,000 615 5124,000 | 055 460,000 | 0.08 66,000) 3.59 2,989,000 Gambit West Probable 219,000 | 10.10 2,212,000 | 0.83 182,000 ol 25,000 | 552 1,209,000 Gambit P
Slide 27: The Mineral Resource is inclusive of the Ore Reserves
For personal use only The Mineral Resource is inclusive of the Ore Reserves
Slide 28: Full scale: Beneficiation plant
eee Full scale: Beneficiation plant ) 0.66% TREO, open pit and underground /” ml a mining Fs, a a Hydrometallurgical plant ‘4 279,000kg o/ Dy within 6 ~— 3,098,000kg TREO, ina q mixed RE ‘aiff ; / carbonate 28 NORTHERN MINERALS Powering Technology.
Slide 29: Product offerings
} Upstream 1 Beneficiation Hydrometallurgy Alloy and magnet manufacture Mixed carbonate HK Product offerings ——————————
Slide 30: Notes
For personal use only Figures may not add due to rounding Based on implementing all initiatives from optimisation of DFS TREO = Total Rare Earth Oxides- Total of Dy2O3,La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
Northern Minerals — Investor Presentation (February 2016) on 6ix