Hastings Technology Metals Limited · ASX:HAS
Hastings Technology Metals — Hastings Rare Metals — Investor Presentation (March 2015)
48 slides from Hastings Technology Metals's investor presentation, March 2015
Slide 1: Yangibana Neodymium-Praseodymium Project Western Australia
Yangibana Neodymium-Praseodymium Project Western Australia Project Presentation | March 2015 May 13 Hastings Rare Metals (ASX: HAS) 1
Slide 2: Disclaimer
Disclaimer All currency amounts are in AUD$ unless stated otherwise. Disclaimer This presentation has been prepared by Hastings Rare Metals Limited (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in t
Slide 3: Strong board and management
Strong board and management Charles Lew Chairman • Founder of Equator Capital • Director of RHB Investment Bank • Over 25 years experience in investment banking Tony Ho Malcolm Mason Non Executive Director & Non Executive Director Chair of Audit Committee • Director of Bioxyne, • +45 years experienc
Slide 4: HAS shareholder base
HAS shareholder base Existing shareholders* Shareholders Shares on issue 384 million Singapore Top 20 = 75% Unlisted options 27 million Other = 25% 29.8% Market capitalisation (at 7.5c) $20 million Cash (December 2014)* $7.5 million 58.5% UK *Additional $2 million raised January 2015 Australia 6.5%
Slide 5: Introduction to Hastings' Yangibana Project
Introduction to Hastings’ Yangibana Project Leading Australian • Hastings Rare Metals Limited (ASX: HAS) manages and Rare Earths Company owns 70-100% of the Yangibana Project in the Gascoyne Region of Western Australia Established JORC • Yangibana contains predominance of rare earths Resources Neody
Slide 6: Hastings Rare Metals Limited - Year 2014
Hastings Rare Metals Limited - Year 2014 Feb 14: Strategic Plan: 1. To seek out and put an Australian Rare Earths deposit into production. 2. First investigate Yangibana Project. Apr-Nov 14: Continuing Exploration Successes: Drilling, JORC Resources, Metallurgy Nov 14: Positive Scoping Study results
Slide 7: Brief Introduction to Rare Earths
Brief Introduction to Rare Earths May 13 Hastings Rare Metals (ASX: HAS) 7
Slide 8: Uses of Rare Earths
Uses of Rare Earths HAS target is a niche supply market outside of China for Neodymium, Praseodymium, Dysprosium and Europium “The list of things that contain Rare Earths is endless” Benefits of using Rare Earths The use of Rare Earths reduces: Weight Emissions Energy consumption The use of Rare Ear
Slide 9: Neo Magnet Production — past and potential
Hastings Rare Metals Limited Neo Magnet Production — past and potential Neo Magnets, tonnes - 120,000 REO, includes off-record 100,000 250,000 | REO, tonnes 200,000 [ 150,000 100,000 50,000 1995 2000 —=—REO Production, Tonnes —=—REO Prod + off-record, tonnes +—-==NdFeB Magnet output “+ 20,000 2020 C
Slide 10: Yangibana will supply Magnetic End-Use Rare Earths
Yangibana will supply Magnetic End-Use Rare Earths Yangibana project contain significant quantities of magnetic end-use rare earths • Yangibana contains significant quantities of Neodymium, Praseodymium and Dysprosium • Each are essential components in the production of NdFeB (neodymium-iron-boron)
Slide 11: Current prices of Yangibana Rare Earths
Current prices of Yangibana Rare Earths Current commodity prices: 31st January 2015 – (Source “HEFA Rare Earth”) • Neodymium – US$59/kg • Praseodymium – US$105/kg • Dysprosium – US$340/kg • Europium – US$680/kg • The value of the Yangibana mineralisation is predominantly derived from neodymium (Nd),
Slide 12: Yangibana Project
Yangibana Project May 13 Hastings Rare Metals (ASX: HAS) 12
Slide 13: Location and Accessibility from Carnarvon
Yangibana Project Location Accessibility from Carnarvon 13
Slide 14: Title and Ownership
Yangibana Project Title and Ownership Yangibana Project comprises:- 1. Ten Exploration Licences, three Exploration Licence Applications, four Prospecting Licences and two Mining Lease Application that are 100% owned by Hastings, and 2. Six Exploration Licences, and one Mining Lease Application withi
Slide 15: Yangibana Rare Earth Project
Yangibana Rare Earth Project 15
Slide 16: Tenements and Geology
Yangibana Project Tenements and Geology The project controls all areas considered to have potential for Yangibana- style Rare Earths mineralisation: including potential for large scale carbonatite- hosted Rare Earths mineralisation at depth. 16
Slide 17: Geography: Flat, Open Country, Excellent Outcrop
Yangibana Project – Geography Flat, Open Country, Excellent Outcrop. 17
Slide 18: 2014 Drilling
Yangibana Project 2014 Drilling Stage 1 drilling: Determine if significant rare earths present at best prospect • tested Yangibana North prospect only: • 44 RC holes totalled 1,010m • First JORC resources estimate 3.36mt @ 1.34%TREO Confirmed a high grade neodymium/praseodymium deposit Stage 2 drill
Slide 19: Locality Plan of Yangibana Rare Earth Prospects
Locality Plan of Yangibana Rare Earth Prospects 19
Slide 20: JORC Resource Estimates
Yangibana Project JORC Resource Estimates JORC Resources Total of all Eight Prospects Drilled Resource Tonnes % ppm ppm ppm ppm Classification (mt) TREO Nd2O3 Pr2O3 Dy2O3 Eu2O3 Indicated 3.96 1.59 3737 1015 58 100 Inferred 2.83 1.43 3189 916 47 81 6.79 1.52 3509 974 53 92 20
Slide 21: Yangibana North Deposit – 2014 Drilling Locality Plan
Yangibana North Deposit – 2014 Drilling Locality Plan of Infill and Deep Holes 21
Slide 22: Yangibana North Deposit - Cross-section with Drill Intersections
Yangibana North Deposit - 2014 Drilling Cross-section with Drill Intersections 22
Slide 23: JORC Resource Estimates – Yangibana North
Yangibana Project JORC Resource Estimates – Yangibana North 23
Slide 24: JORC Resource Estimates – Yangibana North
Yangibana Project JORC Resource Estimates – Yangibana North May 13 Hastings Rare Metals (ASX: HAS) 24
Slide 25: JORC Resource Estimates – Yangibana North
Yangibana Project JORC Resource Estimates – Yangibana North 25
Slide 26: Yangibana North Prospect JORC Compliant Resource Estimate
Yangibana Project JORC Resource Estimates Yangibana North Prospect JORC Compliant Resource Estimate 26
Slide 27: Yangibana North Prospect - Core Intersection Mineralised Zone
Yangibana North Prospect - Core Intersection Mineralised Zone 27
Slide 28: JORC Resource Estimates – Bald Hill South
Yangibana Project JORC Resource Estimates – Bald Hill South 28
Slide 29: JORC Resource Estimates – Bald Hill South
Yangibana Project JORC Resource Estimates – Bald Hill South 29
Slide 30: JORC Resource Estimates Continued
Yangibana Project JORC Resource Estimates Continued Bald Hill South JORC compliant Resource Estimate Resource Tonnes % ppm Ppm ppm ppm Classification (mt) TREO Nd2O3 Pr2O3 Dy2O3 Eu2O3 Indicated 1.23 1.22 4162 905 83 100 Other Prospects JORC compliant Resource Estimates 30
Slide 31: Yangibana Deposits - Summary & Conclusions
Yangibana Deposits - Summary & Conclusions Summary All Eight Yangibana Deposits drilled to date : • Have significant high grade Neodymium, Praseodymium, Dysprosium and Europium Resources • Have mineralisation that is open-ended along strike and to depth • Have significant Resources that are amenable
Slide 32: Prospects and Geology
Yangibana Project Prospects and Geology May 13 Hastings Rare Metals (ASX: HAS) 32
Slide 33: Metallurgical Investigations
Yangibana Metallurgical Investigations Two types of Rare Earth Monazite mineralisation are present at Yangibana. 1. Western mineralisation carrying relatively high grades of Nd2O3 and comprising an average of 20% of TREO 2. Eastern mineralisation carrying much higher grades of Nd2O3 and comprising a
Slide 34: Metallurgical Investigations: Beneficiation by Flotation
Yangibana Metallurgical Investigations: Beneficiation by Flotation Yangibana North Deposit: bench scale testing of composite drill samples reduced to 80% passing -75micron grainsize has shown we may expect a beneficiated concentrate with a 13 times increase in rare earths grade to 4.25%Nd2O3 (8.3%Nd
Slide 35: Beneficiation Test Results: Bald Hill South mineralogy
Yangibana – Beneficiation Test Results Bald Hill South mineralogy Bald Hill South Ironstone Ore Monazite 2% Other REE minerals clay 1% 16% Bald Hill South Ironstone Concentrate clay 2% silicates 2% silicates 15% Monazite Iron Oxides phyllosilicates 41% 50% 24% phyllosilicates 13% phosphate sulphates
Slide 36: Yangibana - Scoping Study
Yangibana - Scoping Study Scoping Study undertaken by Snowden Mining Consultants • based on mining 1.0 mtpa by conventional open pit methods • Crush, grind, float to produce RE concentrate • Hydrometallurgical processing to extract REs from concentrate • Separation/refining to produce separate REOs
Slide 37: Yangibana - Proposed Open Pits
Yangibana - Proposed Open Pits Yangibana North (800m by 300m) and Bald Hill South (650m by 150m) proposed initial pits based on only current Indicated Resources 37
Slide 38: Yangibana – Proposed Site Infrastructure
Yangibana – Proposed Site Infrastructure 38
Slide 39: Scoping Study: Conceptual Processing Route
Yangibana Scoping Study YANGIBANA RARE EARTHS PROJECT CONCEPTUAL PROCESSING ROUTE Operating Section Operation Function OPEN PIT Mining Extract ore from ground Ore CRUSHER/MILL Size reduction Liberate target minerals Ore BENEFICIATION PLANT Flotation/Gravity/Magnetics Reduce waste content Concentrate
Slide 40: Scoping Study
Yangibana Scoping Study Item Units Base Case Expanded Case Plant Throughput Million tonnes per 1.0 1.0 annum Project Life Years 3.7 15 Nd2O3-Eq production Tonnes per annum 5,450 5,450 Nd2O3-Eq price assumption* US$/kg 60 60 Annual Gross Revenue US$m 327 327 Annual Operating costs A$m 117 117 Exchang
Slide 41: Scoping Study – Capital Costs
Scoping Study – Capital Costs Category Cost A$m Mill and Beneficiation Plant 88 Hydrometallurgical and Separation Plant 250 Total Direct Capital Costs 338 Construction facilities/EPCM 52 Total Indirect Capital Costs 52 Total Capital Costs 390 41
Slide 42: Scoping Study – Operating Costs
Scoping Study – Operating Costs Category Cost A$/t ore mined Contract Mining ($3.50/t rock at 33 Stripping/Ratio 8.46) Contract Crushing 10 Milling and Beneficiation 40 Hydrometallurgical and Separation 27 General/Administration 7 Total Operating Costs 117 42
Slide 43: Scoping Study – Financial Analysis
Scoping Study – Financial Analysis Financial Evaluation returns:- • High Confidence Case Capital Payback 1.6 years into production Discount Rate 10% NPV $295-$360 million • Expanded Case – Capital Payback 1.6 years into production Discount Rate 12% NPV $900-$1,200 million IRR 62.5% 43
Slide 44: Yangibana Pre-Feasibility Study
Yangibana Pre-Feasibility Study Fundraising Following successful definition of significant Neodymium/Praseodymium Resources equity funds were successfully sought from shareholders and interested parties. Over A$8.5m was raised; considered sufficient to support a Pre- Feasibility Study. Consultants C
Slide 45: Pre-Feasibility Study Consultants
Yangibana Pre-Feasibility Study Consultants • Study Management Tetra Tech Proteus • Tenements Austwide • Native Title Issues Austwide/Ecoscape • Geology /Resources CoxRocks, Snowden • Geotech Snowden • Hydrology ATC Williams • Mine Design/Reserves Snowden • Mine Scheduling Snowden • Topographical Su
Slide 46: Project development timeline
Project development timeline 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PFS etc Approvals Mining Leases DFS Financing Construction Commissioning Production 46
Slide 47: Yangibana Project - Summary
Yangibana Project - Summary Yangibana is likely to be an important source to the world of neodymium, praseodymium, dysprosium and europium since it: 1. contains Resources of neodymium, praseodymium, dysprosium and europium sufficient to be a significant long term and stable supplier into the world m
Slide 48: Yangibana Project - Future
Yangibana Project - Future • Hastings plans to complete Pre-Feasibility Study by the end of October 2015 • Assuming positive results it plans to move immediately to the Final (Bankable) Feasibility Study • To achieve this Hastings will require assistance with Financing of the Bankable Feasibility St
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