Nzuri Copper — Investor Presentation (October 2017)
31 slides from Nzuri Copper's investor presentation, October 2017
Slide 1: A rapid, low-cost pathway to production and cash-flow in a Tier-1 copper-cobalt belt
A rapid, low-cost pathway to production and cash-flow in a Tier-1 copper-cobalt belt • Positive Feasibility Study: Kalongwe Stage 1 • Regional exploration campaign in full swing October 2017 Investor Presentation Mark Arnesen, Chief Executive Officer Adam Smits, Chief Operating Officer
Slide 2: Forward-Looking Statements, Disclaimer and CP Statement
Forward-Looking Statements, Disclaimer and CP Statement Forward-Looking Statement: This document contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-look
Slide 3: Key Investment Highlights
Key Investment Highlights ● High-quality portfolio in world-class African Copper Belt ● Two-pronged strategy to deliver growth and value ● Kalongwe Stage 1 Feasibility Study outlines robust, low-cost copper-cobalt project: ● US$116M NPV10% and 71% IRR (pre-tax) ● Annual production of 19,360t Cu, 1,5
Slide 4: Corporate Summary
Corporate Summary Capital Structure* (A$) Board and management are shareholders and motivated to succeed Market Cap ~$34.5M @ 15c/share Dr Peter Ruxton – Non-Executive Chairman Cash $1.98M (at 30th September 2017) ● Co-founder of leading private equity mining fund Tembo Issued Shares 230.3M Capital
Slide 5: A Tier-1 Address
A Tier-1 Address ● World’s largest and most prolific sediment-hosted Central African Copper Belt copper province (estimated endowment >160Mt Cu) ● Produced ~50% of the world’s cobalt and ~10% of its copper in 2015 ● Generally high-grade copper deposits 2.5-5.0% Cu ● Several new world-class mines bei
Slide 6: Kalongwe Copper-Cobalt Project – Overview
Kalongwe Copper-Cobalt Project – Overview ● 85% interest held by Nzuri Copper with 10% held by Central African Copper Belt local partner GICC and 5% by the DRC Government ● GICC is a Congolese company, 90%-owned by Theo Mahuku, a respected Congolese businessman who works with multiple listed compani
Slide 7: Kalongwe Copper-Cobalt Project – Stage 1 Feasibility Study
Kalongwe Copper-Cobalt Project – Stage 1 Feasibility Study Robust, low-cost Stage 1 project with strong financial returns Annual Ave. Production ● Feasibility Study for Kalongwe Stage 1 (K1) confirms 19,360 tonnes Cu & 1,507 tonnes Co (Cu/Co-in-concentrate) project’s strong financial and technical m
Slide 8: Kalongwe DFS Outcomes – Key Physicals (Stage 1)
Kalongwe DFS Outcomes – Key Physicals (Stage 1) High quality Feasibility Study ( +15%) Embankment Mining method Open pit Diversion Channel Processing rate 1.0Mtpa 7-year mine life 2-stage crushing with Eastern scrubber to DMS plus a fines Ultimate Pit WRD Processing method stream processed via gravi
Slide 9: Simple Project Execution
Simple Project Execution Modular Plant Approach ● Two Principal Suppliers ● Due to packaged modular plant equipment Crushing selection, two suppliers will be responsible for entire crushing and processing plant ● Short Lead-time Intermediate Stockpile PowerStation Solar Arrays/s ● Quoted deliveries
Slide 10: Simple and Robust Processing Flowsheet
Simple and Robust Processing Flowsheet ● Good gravity recovery from DMS/ Spiral Circuit 1Mtpa ● Ability to produce saleable 10%, 15% & 20% DMS Cu concentrates and 4-8% Spiral Cu Concentrate Primary Crush to 80mm ● Average Overall Cu recovery of 64% for FS base case ● Contained Co grades in concentra
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Slide 12: Strong Community and Stakeholder Relations
Strong Community and Stakeholder Relations ● Kalongwe project has an approved Environmental and Social Permit in place (EIE) ● Excellent support and accessibility from DRC government, including Mining Ministry and office of the Lualaba Governor ● Strong support at all levels within the local communi
Slide 13: Conceptual Pathway to Production
Conceptual Pathway to Production Year 1 Year 2 Year 3 • Simple, robust, Description Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 proven process Complete Feasibility Study • Permitting in place Early works • 12-month build • Rapid pathway to DMS Design production and cash-flow Build Project Leach & lower grade DMS
Slide 14: The Opportunities: Growth and Optimisation
The Opportunities: Growth and Optimisation Significant opportunities to enhance project economics post-Feasibility Study ● 0.9* million tonnes of cobalt-only ore – cobalt-only ore to be mined/stockpiled containing @ 0.62% Co ● 5.2* million tonnes of mineralised rejects: 4.7Mt at 1.1% Cu/ 0.21% Co
Slide 15: Nzuri Cobalt Upside – Stage 2
Nzuri Cobalt Upside – Stage 2 ● Processing of the stockpiled Cobalt-only ore – $0.5B contained metal value ● Processing of the stockpiled mineralised rejects which have strong cobalt grades ● Improved payability through downstream upgrading of product/s ● Discovery of cobalt-only deposits on JV tene
Slide 16: Our Future: Exploration Upside in the Fold Thrust Belt Joint Venture
Our Future: Exploration Upside in the Fold Thrust Belt Joint Venture ● High-impact exploration programs underway 16
Slide 17: The Fold Thrust JV – Hunting for Elephants
The Fold Thrust JV – Hunting for Elephants ● JV with Ivanhoe Mines ● Nzuri can acquire a 98% interest ● Substantial relinquishment of ground by Ivanhoe has resulted in ~334km2 licence area with exceptional exploration potential ● Proximity to world-class mines and deposits with historic production ●
Slide 18: The Fold Thrust JV – Hunting for Elephants
The Fold Thrust JV – Hunting for Elephants KOV KANSUKI 726 Mt @ 4.48% Cu 217.1 Mt @ and 0.53% Co DEZIWA 0.82% CU and 518 Mt @ 1.31% 0.24% Co Cu and 0.15% Co KAMOA KINSAFU 937 Mt @ 2.55% Cu 108 Mt @ 2.62% Cu and 1.08% Co KAKULA MUTANDA 293 Mt @ 3.20% Cu TILWEZEMBE 299.5 Mt @ 23.3 Mt @ 1.8% 1.48% Cu a
Slide 19: Multi-Pronged Exploration Campaign Well Underway
Multi-Pronged Exploration Campaign Well Underway ● Significant progress achieved so far in 2017 with: ● 81km of access roads established to provide logistical access to key targets ● 7,100m of trenching complete ● ~5,600m of RC and diamond drilling completed to date ● ~1,400m of drilling remaining t
Slide 20: 2017 Drilling Summary by Target
2017 Drilling Summary by Target Drilling Completed (to 9/10/17) Large number of assays being generated Target RC (m) Diamond (m) Hydro (m) Total (m) from ongoing drilling – either in progress or being processed with: Kalongwe - 1 373 386 1 759 Feasibility work Monwezi 1 656 - - 1 656 ● 499 drill sam
Slide 21: Kasangasi – A High-Potential Opportunity
Kasangasi – A High-Potential Opportunity ● Target located 17km south-west of Ivanhoe Mines’ Kakula and newly discovered Kakula West deposits ● Shares strong similarities with the Kamoa-Kakula: ● Shared stratigraphic position: both are within rocks of the Grand Conglomerate Formation ● Stratigraphica
Slide 22: Katete – A Major Geochemical and Structural Target
Katete – A Major Geochemical and Structural Target ● Large multi-element geochemical anomaly ● Fieldwork has confirmed at least three distinct fault blocks which are thrust on top of each other along W-E oriented thrusts. Thrusts act as fluid conduits, with potential to precipitate copper mineralisa
Slide 23: Monwezi Cluster – Strategic Target Near Kalongwe
Monwezi Cluster – Strategic Target Near Kalongwe ● Directly along strike from Kalongwe ● Located on the Kamilongwe thrust trend: ● Associated with other major deposits such as Deziwa, Tilwezembe, Mutanda and Kansuki ● Initial drilling at Monwezi 3 and Kalongwe North targets completed in June 2017 ●
Slide 24: The Fold Thrust JV – Exploration Program
The Fold Thrust JV – Exploration Program Target June July August September October November December • Right metals – copper-cobalt Target Phase 1 RC Phase 2 RC Monwezi West Phase 1 Assay and Reporting- Definition on Diamond Diamond Drilling - Drilling • Right place – a Cluster Complete Complete the
Slide 25: Right metals ….. Right place…….Right time
Key Investment Takeaways ASX-listed copper-cobalt developer/explorer with a strong growth outlook Right metals ….. Right place…….Right time HIGH QUALITY PROJECTS – NEAR-TERM PRODUCTION STRONG DISCOVERY STRONG SHARE REGISTER, COPPER AND COBALT OPPORTUNITY POTENTIAL IN A TIER-1 BELT WELL-FUNDED Kalo
Slide 26: CONTACTS & APPENDICES
CONTACTS & APPENDICES www.nzuricopperlimited.com.au Investor Relations Contacts: Mark Arnesen Anthony Begovich Nicholas Read CEO/executive Director CFO/Company Secretary Investor Relations – Read Corporate T: +61 (0)8 6424 8100 T: +61 (0)8 6424 8100 T: +61 (0)8 9388 1474 E: info@nzuricopper.com.au E
Slide 27: Appendix – Nzuri Corporate Organisation
Appendix – Nzuri Corporate Organisation NZURI COPPER LIMITED (AUS) 100% REGAL EXPLORATION OTHERS SASU (DRC) KALONGWE RESOURCES PTY LTD (AUS) FTBJV (earn in) 85% KALONGWE MINING SA (DRC) Kalongwe Project 27
Slide 28: Appendix – Kalongwe Mining Ownership
Appendix – Kalongwe Mining Ownership Large push by Nzuri in 2016 to streamline ownership of the Kalongwe Mining Project to facilitate future development Ownership as at 31 December 2015 Current Ownership GICC Traxys GICC (10%) (28.5%) (38%) Nzuri Copper Nzuri Copper (28.5%) (85%) 28
Slide 29: Appendix – Company History
Appendix – Company History January 2017 28 June 2005 - Dec 2014 July 2016 October 2016 November 2013 ASX : Listed as RER Exploration, Acquired 30% interest in the Kalongwe Copper/ Capital raising to Exploration Name Change to:- 23 June 2005 development & Cobalt project. Completed positive Scoping St
Slide 30: Appendix – Kalongwe Mineral Resource Estimate
Appendix – Kalongwe Mineral Resource Estimate Total Weathering Ave. Cu Ave. Co Tonnes Tonnes Domain Measured Indicated Inferred Tonnage profile (%) (%) Cu Co (Mt) Cu Only1 1.24Mt @ 3.35% Cu 2.45Mt @ 2.27% Cu 1.24Mt @ 1.60% Cu 4.94 2.37 - 117,200 - Oxide Mixed3 2.07Mt @ 3.76% Cu 1.67Mt @ 2.72% Cu 0.3
Slide 31: Appendix – Kalongwe Mineral Reserve Estimate
Appendix – Kalongwe Mineral Reserve Estimate The initial Ore Reserve estimate for Kalongwe is set out below : Ore Reserve Total Category Mt Cu % Co % Proved 3.52 3.45 0.43 Probable 3.46 2.61 0.29 Proved and Probable 6.98 3.03 0.36 Waste (Mt) 12.57 Total (Mt) 19.55 31