Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Investor Presentation (May 2018)
34 slides from Apc Minerals's investor presentation, May 14, 2018
Slide 1: Australian Potash Limited Investor Presentation May 2018
For personal use only Australian Potash Limited (ASX:APC) Investor Presentation May 2018 Australian Potash Limited (ASX:APC) 1
Slide 2: Important Statements & Disclaimers
Important Statements & Disclaimers For personal use only Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and econom
Slide 3: Australian Potash Limited (ASX: APC)
Australian Potash Limited (ASX: APC) For personal use only APC is focused on the production of the premium specialty fertiliser potassium sulphate ("SOP") from Australia’s largest indicated SOP resource at the Lake Wells SOP Project in the Eastern Goldfields of Western Australia. ❖ Project LOM NPV10
Slide 4: Corporate Overview
Corporate Overview For personal use only Capital structure Board of Directors Matt Shackleton, Executive Chairman ASX code APC Matt joined APC as Executive Chairman in July 2014. He is a Chartered Accountant, and has more than 20 years experience in senior management and board roles. Previously the
Slide 5: Yamarna Gold Project
Australian Potash Limited (ASX: APC) For personal use only Yamarna Gold Project APC also controls approximately 65 kilometres of strike of the northern Yamarna greenstone shear zone. ❖ 1,400km2 of tenure contiguous to and north of Gold Road Resources Ltd’s Yamarna project areas ❖ Structural and lith
Slide 6: Investment Highlights
Investment Highlights For personal use only ❖ Lake Wells SOP Project (100%) ❖ Advanced feasibility study program underway, targeting delivery of DFS Q4 2018 ❖ Australia’s largest Indicated JORC Compliant SOP Resource that is still open at its extents ❖ Scoping Study returned strong fundamental proje
Slide 7: Key Catalysts for Next 12 Months
Key Catalysts for Next 6 -12 Months For personal use only Delivering the DFS on the 100% owned Lake Wells Sulphate of Potash Project ❖ First trade samples of SOP from site pilot evaporation pond program Q2 – Q3 2018 ❖ Pre-development of c.20% of Stage 1 bore field Q2 – Q3 2018 ❖ Estimate of JORC SOP
Slide 8: Key Catalysts for Next 12 Months
Key Catalysts for Next 6 -12 Months For personal use only Drilling the 100% owned Yamarna Gold Project ❖ Assays from first 6,000m Air-Core drilling program Q2 2018 ❖ Commencement of 2nd phase of 6,000m – 8,000m Air-Core program Q2 – Q3 2018 ❖ Development of RC drill program across 1st phase drill ta
Slide 9: Lake Wells Sulphate of Potash Project
For personal use only Lake Wells Sulphate of Potash Project Western Australia, 100% owned Definitive Feasibility Study Update Australian Potash Limited (ASX:APC) 9
Slide 10: Definitive Feasibility Study: Objectives and Scope
Definitive Feasibility Study: Objectives and Scope For personal use only SOP production at Lake Wells will be a three-stage process SOP process DFS outcomes • Hypersaline brine is pumped from Establishment of definitive flow rates, Abstraction of brine underground aquifers into evaporation ponds pum
Slide 11: DFS Work Streams: Brine Abstraction
Definitive Feasibility Study Work Streams For personal use only Brine Abstraction Production Wells Comment ❖ Long term pump testing returned flow rates > 15l/s which more than supports Scoping Study modelling ❖ On completion of the production well DFS work stream, 20% of the Stage 1 bore-field will
Slide 12: DFS Work Streams: Brine Evaporation
Definitive Feasibility Study Work Streams For personal use only Brine Evaporation Continued Geotechnical Survey Program Comment ❖ The Geotechnical Survey DFS work stream will inform final evaporation pond design and optimal brine pumping flow rates ❖ Potassium recoveries > Scoping Study modelling, l
Slide 13: DFS Work Streams: Process
Definitive Feasibility Study Work Streams For personal use only Process SOP Trade Sample Production Program Comment ❖ New work stream informed by existing test-work and pilot evaporation pond program ❖ Will inform MOU – Offtake discussions ❖ It will comprise harvesting salts, freighting to process f
Slide 14: DFS Work Streams: Approvals
Definitive Feasibility Study Work Streams For personal use only Approvals EPA Program Comment ❖ Final stage baseline environmental survey programs will inform the Environmental Review Document ❖ Bore field and evaporation pond design will inform Mining Proposal, Mine Closure Plan and Works Approval
Slide 15: Yamarna Gold Project
For personal use only Yamarna Gold Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 15
Slide 16: Yamarna Gold Project
Yamarna Gold Project For personal use only • Location - proven gold mineralised system south of and contiguous with Yamarna Gold project tenure • Structural review and targeting conducted with 18 targets identified • Pathfinder geochemistry & alteration mapping review conducted with 16 Area 1 target
Slide 17: Yamarna Shear – Structural Dilationary Zone
Yamarna Shear – Structural Dilationary Zone For personal use only Outstanding regional success • June 2017 adjoining neighbour Gold Road Resources (ASX: GOR) 3 released outstanding gold results 2kms south-east of APC’s tenement holding at Ibanez prospect including Area 1 – 10m @ 28.76g/t Au – 9m @ 4
Slide 18: Structural Analogues: Archean greenstone
Structural Analogues: Archean greenstone For personal use only Australian Potash Limited (ASX:APC) 18
Slide 19: Geochemical targeting
Geochemical targeting For personal use only Area 1 Area 1 Geochemical analysis by Dr Scott Halley indicates intrusion related mineralization, where analogues include; Kanowna Belle (+6Moz WA), Wallaby (+8Moz WA), Jupiter (+1.3Moz WA), Hemlo (+20Moz Canada) Australian Potash Limited (ASX:APC) 19
Slide 20: 23,000m Air-Core Drilling Program
23,000m Air-Core Drilling Program For personal use only APC drill program lines Area 1 APC will execute 23,000m AC drilling program to explore continuation of structural and geochemical anomalies shown to host +8m oz. gold to date Australian Potash Limited (ASX:APC) 20
Slide 21: Appendices
For personal use only Appendices Australian Potash Limited (ASX:APC) 21
Slide 22: Sulphate of Potash – the Next Commodity Boom?
Sulphate of Potash – the Next Commodity Boom? For personal use only Capturing the Demographic-Agricultural-Dietary global mega-trends Global population (billion people) Global arable land per capita (Ha) Global and regional per capita food consumption (kcal/person/day) 3,450 3.2 1970 0.15 2,950 1970
Slide 23: Sulphate of Potash (SOP): the Premium Potash
Sulphate of Potash (SOP): the Premium Potash For personal use only SOP does not contain chloride making it ideal for application to higher-value chloride cotton sensitive crops Citrus fruit, deciduous - Integer Research fruits, tree nuts, strawberries and melons coffee And … avocados cashews hops cu
Slide 24: Global Trade in Potash
Global Trade in Potash For personal use only $US Sales Price per tonne Main Varieties of Potash Sulphate of Potash: SOP 8 700 600 Muriate of Potash: MOP 60 SOP, 580 Global annual traded tonnes (approx. mT) 500 400 SOP commands a price premium over MOP of up to approx. $US300 per tonne 300 MOP, 300 •
Slide 25: Production of SOP
Production of SOP For personal use only Global SOP production by method Average cost of SOP production 2o production 1o production 550 Brine evaporation 20% 500 Mannheim, Hard rock extraction 5% $450 Mannheim 450 50% $US per metric tonne 400 KCl reaction Hard rock 25% 350 extraction, $350 Brine evap
Slide 26: China is the World's Largest SOP Market
China is the World’s Largest SOP Market For personal use only SOP Global Production 2004 - 2015 SOP Global Demand 2015 – 2026 12 World with China World without China 12 World with China World without China 9.3 9.6 9.6 10 10 8.9 8.3 8.6 7.7 7.8 7.9 8.0 7.5 7.5 7.6 Million metric tonnes Million metric
Slide 27: The Lake Wells SOP Project
The Lake Wells SOP Project For personal use only SOP production at Lake Wells will be a three-stage process Abstraction of • Hypersaline brine is pumped from underground aquifers into evaporation ponds brine • Bore-field development to depths of 175m • Water is evaporated off the brine, leaving Evap
Slide 28: The Lake Wells SOP Project: Brine Abstraction
The Lake Wells SOP Project For personal use only Abstraction of brine is the ‘mining’ part of an SOP operation Short-term pump tests 90 yielded up to 34l/s 40 Required Flow Rate per Production Bore (l/s) Lake Wells will use a 80 35 bore-field brine Number of Production Bores 70 abstraction method 30
Slide 29: The Lake Wells SOP Project: Evaporation
The Lake Wells SOP Project For personal use only Evaporation of water is the ‘beneficiation’ part of an SOP operation Development of evaporation pond network on the lake Hypersaline brine is surface at Lake Wells confirmed through geotechnical pumped into the pond network from field program comprisi
Slide 30: The Lake Wells SOP Project: Processing and CAPEX
The Lake Wells SOP Project For personal use only Lake Wells will process SOP from brine evaporation and KCl reaction CAPEX WITHOUT AND WITH KCL REACTION Indicative Prices for SOP Brine bore field Evaporation ponds Grade and Type Process plant Non-process infrastructure $650 Indirects Contingency $63
Slide 31: The Lake Wells SOP Project: Marketing
The Lake Wells SOP Project For personal use only Marketing Lake Wells SOP project development will be SOP Demand underpinned by off-take agreements supplying 4,000 initially into the Chinese market 3,500 Two MOUs in place for up to 100,000tpa with 3,000 ❖ Sino-Agri, China’s largest agricultural comp
Slide 32: The Lake Wells SOP Project: Logistics
The Lake Wells SOP Project For personal use only Logistics ❖ Quad-combination road haulage Lake Wells to Leonora ❖ Rail haulage Leonora rail siding to Esperance Port ❖ APC’s Lake Wells SOP project is the closest Australian SOP project to bulk rail infrastructure Australian Potash Limited (ASX:APC) 3
Slide 33: JORC Compliant Resource Estimate
JORC Compliant Resource Estimate For personal use only Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surficial Aquif
Slide 34: Registered Office and Contact Details
For personal use only Registered Office Address 31 Ord Street, West Perth WA 6005 PO Box 1941, West Perth WA 6872 Reception: +61 8 9322 1003 Email: m.shackleton@australianpotash.com.au Website: www.australianpotash.com.au ABN 58 149 390 394 Australian Potash Limited (ASX:APC) 34