Reward Minerals Ltd · ASX:RWD
Reward Minerals — Investor Presentation (October 2012)
23 slides from Reward Minerals's investor presentation, Oct 11, 2012
Slide 1: Reward Minerals Limited Company Update
Reward Minerals Limited Company Update October 2012
Slide 2: Disclaimer
Disclaimer This Presentation is provided on the basis that neither the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers, make any representation or warranty (express or implied) as to the accuracy, reliability,
Slide 3: Snapshot
Snapshot Capital Structure 10 Oct 2012 ASX:RWD Board Mr Colin McCavana Non Executive Director, Chairman Ordinary Shares on Issue 73.8m 31+ years experience in the mining and earthmoving industries Options on Issue1 11.65m FAICD and member of Australasian Institute of Mining and Metallurgy Share
Slide 4: Investment Highlights
Investment Highlights Small cap company with a single focus – Potash. Significant Potash resources in surface brine deposits in Australia discovered by the Company. Resources of 24.4Mt of SOP in Lake Disappointment, WA + 20.5Mt SOP in Lake Mackay, WA – high sulfate brine sources. Numerous bu
Slide 5: Project Locations
Project Locations oO 500 kms \ SCALE G \dham, \ Lake Mackay \ NT Project \ ile & ZZ _| Adavale |Lake Disappointment ¢ Project Project . X \ a Karinga Project Eromanga Sub- Basin basin — Officer Basin Project RM REWARD MINERALS LTD {he/as" 4
Slide 6: Lake Disappointment
Lake Disappointment JORC compliant Indicated Resource of 24.4Mt of SOP (From 0-4m depth). Chemistry similar to Great Salt Lake – high sulphate brine. Mining and Indigenous Land Use Agreement signed December 2011. Heritage Surveys completed and signed off. Mining Lease granted 9 October 201
Slide 7: Lake Disappointment - Project Location
Lake Disappointment - Project Location The Lake Disappointment Project is 340km from Newman. Potash recovery operations are expected to be located on the northern perimeter of the Lake. 6
Slide 8: Lake Disappointment - Resource
Lake Disappointment – Resource JORC compliant Indicated Resource of 7,705 Bt at 3.17kg/t K2SO4 for 24.4 Mt contained K2SO4 Based on 30 holes drilled on a 5km x 5km grid Brine samples drawn from drill holes returned SOP values up to 20.0g/L (ave 12.2g/L) Heavy brine flow encountered in all ho
Slide 9: Lake Disappointment - Brine Parameters
Lake Disappointment – Brine Parameters Total dissolved solids 293 g/L Specific gravity 1.19 g/L NaCl 238 g/L K2SO4 12.19 g/L MgSO4 22.65 g/L MgCl2 5.51 g/L NaCl/K2SO4 19.5:1 Lakebed solids % brine 30.5% Lakebed solids specific gravity 1.95 tonne/m3 Brine composition 12.19 kg SOP/m3 Lakebed solids 3.
Slide 10: Laboratory Evaporation Trial
Laboratory Evaporation Trial April 2012 – Results Summary Feed Brine Composition – Elemental Percentages K 0.52 | Na 7.27 | Mg 0.63 | Cl 12.43 | SO4 2.47 – Total Dissolved Solids 276 grams per litre – K2SO4 Content 11.6 grams per litre Trial Duration 49 days Brine Mass – Day 1 23.37kg – Day 49
Slide 11: Pilot Brine Abstraction & Evaporation Trial
Pilot Brine Abstraction & Evaporation Trial 10
Slide 12: Lake Disappointment - Process Parameters
Lake Disappointment – Process Parameters Assumptions A. Initial K2SO4 output – refined product = 200,000 TPA B. Harvest Grade 8.0% K = 17.85% K2SO4 C. Plant Recovery from harvest = 80% D. Harvest K recovery from feed brine = 70% E. Evaporation rate 5.5mm per day (average) Process Parameter Calculati
Slide 13: Typical SOP Production Process
Typical SOP Production Process Typically, harvested SOP salt is put through a milling, flotation, filtration and crystallisation process before it is ready to be distributed. START Harvested SOP salts Schoenite solids Milling / SOP water conversion crystallisation pulp SOP pulp NaCl tailings Bittern
Slide 14: Typical SOP Production Process
Typical SOP Production Process Saline water is drawn into shallow solar evaporation ponds where the water is naturally evaporated by the sun and wind before the SOP salts are harvested. Note: Not all photographs are of Lake Disappointment. 13
Slide 15: Development Plan
Development Plan Activity Timing 1. Appoint Lake Disappointment Project Director Done 2. Finalise native title clearance survey with WDLAC/Martu and register Done ILUA 3. Register Mining and Indigenous Land Use Agreement October 2012 4. Lodge Applications for project Mining Lease and Miscellaneous M
Slide 16: Potash Overview
Potash Overview Potash is a generic term for various potassium (K) salts Used primarily as a fertiliser – One of three primary agricultural nutrients – Increases yields, water retention and disease resistance Two main forms – Muriate of Potash (MOP) – KCl – Sulphate of Potash (SOP) – K2SO4 G
Slide 17: Potash Pricing
Potash Pricing SOP generally trades at a premium to MOP, it is a niche product which is better suited to certain agricultural production. 1,400 Declining food prices during global financial crisis led 1,200 farmers to reassess the economics of fertilizer use Accelerated demand resulting in excess ca
Slide 18: SOP Production Methods
SOP Production Methods Production of SOP from salt lakes is proven technology and is generally a lower cost method of production. SOP global market size of approx. 7Mtpa (10% to 15% of total Potash market) Preferred over MOP for chloride sensitive crops (fruits, vegetables, tobacco and potatoes)
Slide 19: Mineral Production from Salt Lakes
Mineral Production from Salt Lakes Various other mineral products are also produced from salt lakes globally, using similar production concepts planned by Reward. Xinjiang Luobupo Potash Compass Minerals Lop Nur Qinghai Guoan Great Salt Lake, Big Quill Lake Dead Sea Works Potash (SOP, MOP) Dongtai
Slide 20: Potash Demand
Potash Demand Strong growth in demand is expected in key markets of China, India and Brazil. Demand and growth by Region Demand by region, 2011 10,000 8.00% Demand (LHS) 2011 - 2015 CAGR (RHS) East Europe Central Africa Compound annual growth rate 2011-2015 (%) 9,000 Oceania 7.00% and Central Europe
Slide 21: Potash Market - Regional Issues
Potash Market – Regional Issues Europe Declining reserves CIS Political uncertainty High operating costs Higher inflation forecast Distance to target market North America Isolated reserves Strength of incumbents Asia High capex Operating difficulties Distance to target markets
Slide 22: Proximity to Key Markets
Proximity to Key Markets Reward’s geographic location places it in close proximity to key Asian markets, which collectively accounted for over 50% of global Potash demand in 2011 East Asia 28.9% of West Asia Global Demand 11.6% of 2011 South Asia Global Demand 12.3% of 2011 Global Demand 2011 Reward
Slide 23: Competent Person Statement
Competent Person Statement Reward Minerals Ltd advise in accordance with ASX Listing Rule 5.6 that resource parameters provided in this presentation are based on information compiled by Mr Nigel Cranley who is a member of the Australian Institute of Geoscientists and a Member of the Australasian Ins
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