Slide 1: Northern Territory's Lithium Valley – Finniss Lithium Project
For personal use only NORTHERN TERRITORY’S LITHIUM VALLEY FINNISS LITHIUM PROJECT MINING THE TERRITORY CONFERENCE Darwin September 2018 ASX:CXO
Slide 2: Disclaimer
DISCLAIMER For personal use only The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd who is a member of the Australasian Institute of Mining and
Slide 3: Important and Cautionary Notes
Important and Cautionary Notes Cautionary Statement: The PFS results are based upon the updated Grants Mineral Resource of 8 May 2018 (ASX announcement 8 May 2018). The Mineral Resource contains Indicated and Inferred material (see Table 5 in section 3.1 below – 37% Inferred material and 63% Indicat
Slide 4: Background
BACKGROUND For personal use only • Core Exploration Ltd (ASX: CXO) is an Australian resources company. • The Finniss Lithium Project includes one of Australia’s highest grade lithium resources. • Project Process: • Mine spodumene pegmatite (“lithium rich granite”) • Processing of the mined material
Slide 5: Finniss Lithium Project
FINNISS LITHIUM PROJECT For personal use only Potentially best logistics chain to Asia of any Australian lithium project • One of Australia's highest grade lithiumresources • Grants is close to grid power, gas and rail infrastructure • 88km haul route to Darwin Port is on all NT Government roads lic
Slide 6: Proposed Site Layout
PROPOSED SITE LAYOUT For personal use only Conventional Open Pit Mining • Drill & Blast • Excavate, Load & Haul Waste Rock Dump • 1,000m x 600m x 25m Crushing Circuit • 3-Stage Crush DMS (Gravity Separation) Plant • 5.5 % Li2O Concentrate Truck to Darwin Port • 1hr by sealed road CORE EXPLORATION AS
Slide 7: Proposed Transport Route
PROPOSED TRANSPORT ROUTE For personal use only • Along Cox Peninsula Road to the Stuart Highway. • Along the Stuart Highway to Tiger Brennan Drive. • Onto Berrimah Road to Darwin Port. • Total of 88.4km. • A maximum of 10 trucks per day completing the return trip during operations. CORE EXPLORATION
Slide 8: Land Tenure and Services
LAND TENURE AND SERVICES For personal use only Land • Vacant Crown land. Power • On site diesel-powered generators. Water • The primary source of processing water will be from an historic process water dam onsite - Observation Hill Dam. • Water will be pumped via pipeline approximately 5km to the mi
Slide 9: Capital Costs
CAPITAL COSTS For personal use only Capital Estimate – A$’000 Mobilisation $ 1,943 Site Establishment $ 562 Groundwater Management $ 55 Mine Development (Clear & grub) $ 997 Demobilisation $ 948 Rehabilitation $ 584 DMS Plant $ 20,046 TSF $ 1,725 Sustaining Capital $ 2,300 Pre-production Capital $ 2
Slide 10: Operating Costs
OPERATING COSTS For personal use only Operating Unit Costs Mining Costs Mining Costs – Contractor $ 186.17 Mining Costs – Owner $ 22.53 Sub-total $ 208.70 Processing $ 71.19 Hauling $ 11.47 General & Administration $ 8.00 Port Costs $ 7.50 A$ 306.86 / t conc. Total Unit Operating Cost US$ 230.15 / t
Slide 11: Employment and Local Participation
EMPLOYMENT AND LOCAL PARTICIPATION For personal use only • The project is expected to create 50 – 100 jobs. • Workers predominantly sourced locally. Minimal or no Fly-In-Fly-Out (FIFO) workforce. • Workers travel to site daily from Darwin suburbs • Workforce: • Tradespeople • Operators/technicians •
Slide 12: For personal use only
2017 2018 2019 Beyond Grants For personal use only March 2017 May 2018 Q2 2019 - Maiden Resourceat ✔ - NOI decision, EIS ✔ - Approvals EPA+ Grants required MMP for Grants January 2019 - BP33 baseline studies begin October 2017 Q3 2019 June 2018 - NOI +ML ✔ - PFScompleted ✔ - Operations anticipated t
Slide 13: Binding Lithium Offtake and US$20M Pre-Payment
BINDING LITHIUM OFFTAKE AND US$20M PRE-PAYMENT For personal use only Core has signed a binding offtake and US$20 million pre-payment agreement with Yahua • Binding offtake and pre-payment agreements signed with Yahua ($2B market cap) • Yahua is one of China’s largest lithium producers • Offtake agre
Slide 14: US$35 Million Pre-Payment and Concentrate Offtake
US$35 MILLION PRE-PAYMENT For personal use only AND CONCENTRATE OFFTAKE Core has signed a non-binding Term Sheet with Shandong Ruifu Lithium Co Ltd • Up to 150,000 tonnes lithium concentrate offtake per year from Core’s Finniss Lithium Project • Ruifu is one of China’s largest lithium hydroxide and
Slide 15: Darwin Port Agreement
DARWIN PORT AGREEMENT CORE HAS AGREEMENT For personal use only WITH DARWIN PORT TO SHIP 1MTPA OF SPODUMENE • Heads of Agreement signed with Darwin Port in respect of potential export of lithium products from Grants • Agreement provides Core with capacity to export up to 1Mtpa of spodumene direct shi
Slide 16: 2018 Drilling Targeting Substantial Resource Growth
2018 DRILLING TARGETING SUBSTANTIAL For personal use only RESOURCE GROWTH • Upcoming exploration and aggressive drill programs in 2018 to target growth in the resource base to support a long-life lithium production hub at Finniss Project • Numerous high grade lithium pegmatite targets already identi
Slide 17: Northern Territory's Lithium Valley
NORTHERN TERRITORY’S LITHIUM VALLEY For personal use only Existing Infrastructure for “Lithium Valley” in NT • High Quality Lithium Resources • Gas • Power • Skills • Heavy Industry • Port • Pro-active Government Ideal for further down-stream processing of lithium and other battery mineral products
Slide 18: Finniss Lithium Project on Pathway to Production
Finniss Lithium Project on Pathway to Production For personal use only • Core’s development of the Finniss Project is unlocking a new lithium rich province in the Bynoe Pegmatite Field, near Darwin, NT • Preliminary Feasibility Study (PFS) now completed, and Definitive Feasibility Study (DFS) schedu
Slide 19: Thank You
THANK YOU For personal use only For more information: Stephen Biggins Managing Director +61 8 7324 2987 For broker and media enquiries: Warrick Hazeldine +61 417 944 616 Andrew Rowell +61 400 466 226 Cannings Purple