Australian Mines Limited · ASX:AUZ
Australian Mines — Low Emission and Technology Minerals Conference 2016
32 slides from Australian Mines's conference presentation, Nov 15, 2016
Slide 1: Emerging Global Leader in Scandium Supply
For personal use only Emerging Global Leader in Scandium Supply Low Emission and Technology Minerals Conference November 2016
Slide 2: Disclaimer
Disclaimer For personal use only Australian Mines Limited (ASX: AUZ) has prepared this announcement based on information available to it at the time. No representation or warranty, express or implied, is made as to the fairness, accuracy completeness or correctness of the information, opinions and c
Slide 3: Australian Mines' strategy
Australian Mines’ strategy For personal use only “… to become the world’s largest producer of scandium from primary scandium deposits” – Michael Ramsden Non-Executive Chairman www.australianmines.com.au
Slide 4: Scandium: the technology metal
Scandium: the technology metal For personal use only “… automotive is a huge potential use of scandium, perhaps the greatest one on the horizon …” Resource Investor article, May 2015 1 “The world wants scandium - there just isn't enough of it available today in sufficient quantities …” Richard Karn,
Slide 5: The Commodity
For personal use only The Commodity
Slide 6: What is Scandium?
What is Scandium ? For personal use only • Scandium, or Scandium Oxide (Sc2O3) as it is commonly marketed, is a relatively scarce, high-value mineral used to produce aluminium alloys • Scandium-reinforced alloys suitable for the manufacture of weldable aluminium products such as: Car chassis and b
Slide 7: Who are the current users of Scandium?
Who are the currently users of Scandium? For personal use only • Existing demand across multiple civilian and military applications, including: automotive & aircraft (such as Airbus) solid oxide fuel cells (e.g., Bloom Energy in California) sporting equipment (including Easton) • Current scand
Slide 8: What is the growth potential for scandium?
What is the growth potential for scandium ? For personal use only • Annual demand of scandium is anticipated to increase by 800% over the next decade 4 • The largest and most likely future growth market for scandium will be the automotive manufacturing sector • Aluminium alloys are already used by l
Slide 9: Scandium: Making cars greener
Scandium: Making cars greener … For personal use only Aluminium scandium alloys enable manufacturers to build: lighter vehicles, using smaller engines to generate the same power-to-weight performance resulting in reduced fuel consumption and lower carbon emissions www.australianmines.com.au
Slide 10: … and boosting their performance
… and boosting their performance For personal use only • The suitable aluminium alloy for automotive manufacturing requires only 0.2 - 0.4% scandium content or about 1 kilogram per vehicle but: 6 delivers a weight saving of 200 kilograms in a passenger vehicle and provides a 50% improvement in c
Slide 11: That's million potential customers each year
That’s 68 million potential customers each year For personal use only • In 2015 alone, more than 68 million new vehicles rolled off production lines around the world9 • Australian Mines sees a huge future for scandium in automotive manufacturing, due to economic and environmental benefits of weight
Slide 12: The Projects
For personal use only The Projects
Slide 13: How will Aust. Mines satisfy this growing demand?
How will Aust. Mines satisfy this growing demand? For personal use only • Acquiring 100% interest in the Flemington Scandium-Cobalt Project in New South Wales one of the highest-grade scandium deposits in the world 10 continuation of Clean TeQ’s Syerston ore body • Acquiring 75% interest in the
Slide 14: Flemington Scandium-Cobalt Project
Flemington Scandium-Cobalt Project For personal use only • Located near the town of Fifield in central New South Wales, 450 kilometres west of Sydney • Australia’s premier scandium-cobalt province, being the Northern continuation of Clean TeQ’s (ASX: CLQ) Syerston ore body • Favourable metallurgy13
Slide 15: Flemington: High-grade resource with upside
Flemington: High-grade resource with upside For personal use only • One of the highest-grade scandium deposits in the world and 15,16 mineralisation remains open 17 potential to significantly increase the current Mineral Resource • Flemington tenement also covers western section of Owendale Ultram
Slide 16: Sconi Scandium-Cobalt Project
Sconi Scandium-Cobalt Project For personal use only The Sconi Project is “uniquely positioned to deliver unprecedented tonnages of scandium and to be instrumental in the growth of a whole new market for this remarkable metal” Richard Karn, Streetwise Report, August 201118 • Located near the mining c
Slide 17: Sconi: Almost ready to go
Sconi: Almost ready to go For personal use only • Sconi already ticks a lot of boxes: Mining Lease granted Plant design identified Electricity source confirmed Proposed water supply on site Commonwealth environmental assessment completed * Total contained scandium metal tonnage multiplied
Slide 18: Plus potential to expand into battery market
Plus potential to expand into battery market For personal use only • Cobalt and Nickel are co-products of the scandium mineralisation at both Flemington and Sconi • Sconi has 54,500 tonnes of contained Cobalt metal in Resource + 514,000 tonnes of contained Nickel metal in Resource 20 • Cobalt and Ni
Slide 19: Your Potential Opportunity
The YourPotential Opportunity For personal use only
Slide 20: What's possible for shareholders…
What’s possible for shareholders… For personal use only • Clean TeQ’s share price has increased 440% over the past 6 months on the back of its Syerston scandium-cobalt project www.australianmines.com.au
Slide 21: Scandium operations: Peer comparison
Scandium operations: Peer comparison For personal use only Flemington Sconi Syerston Company Australian Mines Australian Mines Clean TeQ (ASX: AUZ) (ASX: AUZ) (ASX: CLQ) Market cap $10 million - $189 million (as at 3 Nov. 2016) Resource Measured + Indicated22 Measured + Indicated23 Proved + Probable
Slide 22: The Next Steps
For personal use only The Next Steps
Slide 23: Sconi: DFS and approval process started
Sconi: DFS and approval process started For personal use only • Definitive (or Bankable) Feasibility Study being conducted by SRK Consulting and expected to be completed within 2 years • Off-take Heads of Agreements for scandium oxide from Sconi operations previously in place • Commencing discussion
Slide 24: Flemington: Scoping Study also in progress
Flemington: Scoping Study also in progress For personal use only • Economic and Technical Scoping Study commenced by SRK Consulting and expected to be completed by March 2017 • Mineral Resource estimate for Cobalt and Nickel mineralisation at Flemington similarly anticipated to be reported in the fi
Slide 25: Proposed Timeline
Proposed Timeline For personal use only • Australian Mines’ strategy: develop the Sconi Scandium-Cobalt Project to generate revenue in 2020 to be followed by production at Flemington Scandium-Cobalt Project by 2022 www.australianmines.com.au
Slide 26: Key Take-Away Points
Key Take-Away Points For personal use only • Commercial scale, mineable deposits of scandium are rare globally • Worldwide demand for scandium expected to increase by 800% over the next 10 years – primarily driven by the automotive industry • Scandium resources and grades recorded at Sconi and Flemi
Slide 27: Thank You
For personal use only Thank You Level 1,83 Havelock St West Perth WA 6005 +61 8 9481 5811 +61 4 6777 0016 bbell@australianmines.com.au www.australianmines.com.au
Slide 28: Mineral Resource Estimate: Sconi Project
Mineral Resource Estimate: Sconi Project For personal use only Measured Resource: 17 million tonnes 0.80% Nickel 0.07% Cobalt Indicated Resource: 48 million tonnes 0.58% Nickel 0.07% Cobalt Inferred Resource: 24 million tonnes: 0.41% Nickel 0.04% Cobalt Total Resource: 89 million tonnes 0.58% Nickel
Slide 29: Competent Persons Statements
Competent Persons Statements For personal use only Flemington Scandium-Cobalt Project The Mineral Resource for the Flemington Scandium-Cobalt Project contained within this document is reported under JORC 2012 Guidelines. This Mineral Resource was first reported by Jervois Mining Limited on 20 August
Slide 30: Footnotes
Footnotes For personal use only 1 Resource Investor, Why is everyone talking about scandium, published 4 May 2015 (http://www.resourceinvestor.com/2015/05/04/why-everyone-talking-about-scandium?page=1) 2 Richard Karn, Australian Scandium Could Create New Market, published 8 August 2011, https://www.
Slide 31: Footnotes
Footnotes For personal use only 12 Metallica Minerals Limited, Very Successful Scandium Pilot Plant Test Work Produces High Purity Scandium Oxide, released 25 July 2012 13 Jervois Mining Limited, Quarterly Activities Report to 30 June 2016, released 28 July 2016 14 Jervois Mining Limited, Quarterly
Slide 32: Footnotes
Footnotes For personal use only 24 Clean TeQ Holdings, Completion of Syerston Scandium Project Feasibility Study, released 30 August 2016 25 Metallica Minerals Limited, Sconi Project – Nickel-Cobalt and Scandium Resource Upgrade, released 21 October 2013 26 Clean TeQ Holdings, Syerston Nickel and Co
Australian Mines — Low Emission and Technology Minerals Conference 2016 on 6ix